New
York
|
14-0689340
|
|||
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|||
3135
Easton Turnpike, Fairfield, CT
|
06828-0001
|
203/373-2211
|
||
(Address
of principal executive offices)
|
(Zip
Code)
|
(Telephone
No.)
|
||
Securities
Registered Pursuant to Section 12(b) of the Act:
|
||||
Title
of each class
|
Name
of each exchange on which registered
|
|||
Common
stock, par value $0.06 per share
|
New
York Stock Exchange
|
Securities
Registered Pursuant to Section 12(g) of the Act:
|
(Title
of class)
|
Large
accelerated filer
þ
|
Accelerated
filer
¨
|
Non-accelerated
filer
¨
|
Smaller
reporting company
¨
|
Page
|
||
Part I
|
||
Business
|
3
|
|
Risk
Factors
|
12
|
|
Unresolved
Staff Comments
|
16
|
|
Properties
|
17
|
|
Legal
Proceedings
|
17
|
|
Submission
of Matters to a Vote of Security Holders
|
19
|
|
Part II
|
||
Market
for Registrant’s Common Equity, Related Stockholder Matters and
Issuer
|
||
Purchases
of Equity Securities
|
19
|
|
Selected
Financial Data
|
21
|
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
22
|
|
Quantitative
and Qualitative Disclosures About Market Risk
|
67
|
|
Financial
Statements and Supplementary Data
|
67
|
|
Changes
in and Disagreements With Accountants on Accounting
|
||
and
Financial Disclosure
|
141
|
|
Controls
and Procedures
|
141
|
|
Other
Information
|
142
|
|
Part III
|
||
Directors,
Executive Officers and Corporate Governance
|
142
|
|
Executive
Compensation
|
143
|
|
Security
Ownership of Certain Beneficial Owners and Management and
|
||
Related
Stockholder Matters
|
143
|
|
Certain
Relationships and Related Transactions, and Director
Independence
|
143
|
|
Principal
Accounting Fees and Services
|
143
|
|
Part IV
|
||
Exhibits,
Financial Statement Schedules
|
143
|
|
148
|
%
of Consolidated Revenues
|
%
of GE Revenues
|
||||||||||||||||
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
||||||||||||
Total
sales to U.S. Government Agencies
|
3
|
%
|
2
|
%
|
2
|
%
|
4
|
%
|
3
|
%
|
4
|
%
|
|||||
Technology
Infrastructure segment
|
|||||||||||||||||
defense-related
sales
|
2
|
2
|
2
|
3
|
3
|
3
|
Common
stock market price
|
Dividends
|
||||
(In
dollars)
|
High
|
Low
|
declared
|
||
2008
|
|||||
Fourth
quarter
|
$25.75
|
$12.58
|
$0.31
|
||
Third
quarter
|
30.39
|
22.16
|
0.31
|
||
Second
quarter
|
38.52
|
26.15
|
0.31
|
||
First
quarter
|
37.74
|
31.65
|
0.31
|
||
2007
|
|||||
Fourth
quarter
|
$42.15
|
$36.07
|
$0.31
|
||
Third
quarter
|
42.07
|
36.20
|
0.28
|
||
Second
quarter
|
39.77
|
34.55
|
0.28
|
||
First
quarter
|
38.28
|
33.90
|
0.28
|
Period
(a)
|
Total
number
of
shares
purchased
(a)(b)
|
Average
price
paid
per
share
|
Total
number of
shares
purchased
as
part of our
share
repurchase
programs
(a)(c)(d)
|
Approximate
dollar
value
of shares that
may
yet be purchased
under
our share
repurchase program
(d)
|
||||||||||||||
(Shares
in thousands)
|
||||||||||||||||||
2008
|
||||||||||||||||||
October
|
651
|
$20.45
|
567
|
|||||||||||||||
November
|
704
|
$16.96
|
509
|
|||||||||||||||
December
|
1,855
|
$16.59
|
527
|
|||||||||||||||
Total
|
3,210
|
$17.45
|
1,603
|
$
|
11.8
billion
|
|||||||||||||
(a)
|
Information
is presented on a fiscal calendar basis, consistent with our quarterly
financial reporting.
|
(b)
|
This
category includes 1,607 thousand shares repurchased from our various
benefit plans, primarily the GE Savings and Security Program (the
S&SP). Through the S&SP, a defined contribution plan with Internal
Revenue Service Code 401(k) features, we repurchase shares resulting from
changes in investment options by plan participants.
|
(c)
|
This
balance represents the number of shares that were repurchased through the
2007 GE Share Repurchase Program (the Program) under which we are
authorized to repurchase up to $15 billion of our common stock through
2010. The Program is flexible and shares are acquired with a combination
of borrowings and free cash flow from the public markets and other
sources, including GE Stock Direct, a stock purchase plan that is
available to the public. As major acquisitions or other circumstances
warrant, we modify the frequency and amount of share repurchases under the
Program.
|
(d)
|
Effective
September 25, 2008, we suspended our share repurchase program for
purchases other than for the GE Stock Direct
Plan.
|
2003
|
2004
|
2005
|
2006
|
2007
|
2008
|
|||||||||||||
GE
|
$
|
100
|
$
|
121
|
$
|
119
|
$
|
130
|
$
|
134
|
$
|
61
|
||||||
S&P
500
|
100
|
111
|
116
|
135
|
142
|
89
|
||||||||||||
DJIA
|
100
|
106
|
107
|
128
|
139
|
95
|
(Dollars
in millions; per-share amounts in dollars)
|
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||
|
|
|
|
||||||||||||
General
Electric Company and Consolidated Affiliates
|
|||||||||||||||
Revenues
|
$
|
182,515
|
$
|
172,488
|
$
|
151,568
|
$
|
136,262
|
$
|
123,814
|
|||||
Earnings
from continuing operations
|
18,089
|
22,457
|
19,344
|
17,279
|
15,591
|
||||||||||
Earnings
(loss) from discontinued operations, net of taxes
|
(679
|
)
|
(249
|
)
|
1,398
|
(559
|
)
|
1,631
|
|||||||
Net
earnings
|
17,410
|
22,208
|
20,742
|
16,720
|
17,222
|
||||||||||
Dividends
declared
(a)
|
12,649
|
11,713
|
10,675
|
9,647
|
8,594
|
||||||||||
Return
on average shareowners’ equity
(b)
|
15.9
|
%
|
20.4
|
%
|
19.8
|
%
|
18.1
|
%
|
18.8
|
%
|
|||||
Per
common share
|
|||||||||||||||
Earnings
from continuing operations – diluted
|
$
|
1.78
|
$
|
2.20
|
$
|
1.86
|
$
|
1.63
|
$
|
1.49
|
|||||
Earnings
(loss) from discontinued operations – diluted
|
(0.07
|
)
|
(0.02
|
)
|
0.13
|
(0.05
|
)
|
0.16
|
|||||||
Net
earnings – diluted
|
1.72
|
2.17
|
2.00
|
1.57
|
1.65
|
||||||||||
Earnings
from continuing operations – basic
|
1.79
|
2.21
|
1.87
|
1.63
|
1.50
|
||||||||||
Earnings
(loss) from discontinued operations – basic
|
(0.07
|
)
|
(0.02
|
)
|
0.14
|
(0.05
|
)
|
0.16
|
|||||||
Net
earnings – basic
|
1.72
|
2.18
|
2.00
|
1.58
|
1.66
|
||||||||||
Dividends
declared
|
1.24
|
1.15
|
1.03
|
0.91
|
0.82
|
||||||||||
Stock
price range
|
38.52-12.58
|
42.15-33.90
|
38.49-32.06
|
37.34-32.67
|
37.75-28.88
|
||||||||||
Year-end
closing stock price
|
16.20
|
37.07
|
37.21
|
35.05
|
36.50
|
||||||||||
Cash
and equivalents
|
48,187
|
15,731
|
14,086
|
8,608
|
11,833
|
||||||||||
Total
assets of continuing operations
|
796,046
|
786,794
|
674,966
|
588,821
|
578,560
|
||||||||||
Total
assets
|
797,769
|
795,683
|
697,273
|
673,210
|
750,252
|
||||||||||
Long-term
borrowings
|
330,067
|
319,013
|
260,749
|
212,167
|
207,784
|
||||||||||
Common
shares outstanding – average (in thousands)
|
10,079,923
|
10,182,083
|
10,359,320
|
10,569,805
|
10,399,629
|
||||||||||
Common
shareowner accounts – average
|
604,000
|
608,000
|
624,000
|
634,000
|
658,000
|
||||||||||
Employees
at year end
|
|||||||||||||||
United
States
|
152,000
|
155,000
|
155,000
|
161,000
|
165,000
|
||||||||||
Other
countries
|
171,000
|
172,000
|
164,000
|
155,000
|
142,000
|
||||||||||
Total
employees
|
323,000
|
327,000
|
319,000
|
316,000
|
307,000
|
(c)
|
|||||||||
GE
data
|
|||||||||||||||
Short-term
borrowings
|
$
|
2,375
|
$
|
4,106
|
$
|
2,076
|
$
|
972
|
$
|
3,252
|
|||||
Long-term
borrowings
|
9,827
|
11,656
|
9,043
|
8,986
|
7,561
|
||||||||||
Minority
interest
|
6,678
|
6,503
|
5,544
|
5,308
|
7,236
|
||||||||||
Shareowners’
equity
|
104,665
|
115,559
|
111,509
|
108,633
|
110,181
|
||||||||||
Total
capital invested
|
$
|
123,545
|
$
|
137,824
|
$
|
128,172
|
$
|
123,899
|
$
|
128,230
|
|||||
Return
on average total capital invested
(b)
|
14.8
|
%
|
18.9
|
%
|
18.5
|
%
|
16.7
|
%
|
16.9
|
%
|
|||||
Borrowings
as a percentage of total capital invested
(b)
|
9.9
|
%
|
11.4
|
%
|
8.7
|
%
|
8.0
|
%
|
9.0
|
%
|
|||||
Working
capital
(b)
|
$
|
3,904
|
$
|
6,433
|
$
|
7,527
|
$
|
7,853
|
$
|
7,788
|
|||||
GECS
data
|
|||||||||||||||
Revenues
|
$
|
71,287
|
$
|
71,936
|
$
|
61,351
|
$
|
54,889
|
$
|
50,320
|
|||||
Earnings
from continuing operations
|
7,774
|
12,417
|
10,219
|
8,929
|
7,614
|
||||||||||
Earnings
(loss) from discontinued operations, net of taxes
|
(719
|
)
|
(2,116
|
)
|
439
|
(1,352
|
)
|
1,114
|
|||||||
Net
earnings
|
7,055
|
10,301
|
10,658
|
7,577
|
8,728
|
||||||||||
Shareowner’s
equity
|
53,279
|
57,676
|
54,097
|
50,812
|
54,379
|
||||||||||
Total
borrowings
|
514,601
|
500,922
|
426,262
|
362,042
|
355,463
|
||||||||||
Ratio
of debt to equity at GE Capital
|
8.76:1
|
(d)
|
8.10:1
|
7.52:1
|
7.09:1
|
6.45:1
|
|||||||||
Total
assets
|
$
|
660,902
|
$
|
646,485
|
$
|
565,258
|
$
|
540,584
|
$
|
618,614
|
|||||
Transactions
between GE and GECS have been eliminated from the consolidated
information.
|
|
(a)
|
Includes
$75 million of preferred stock dividends in 2008.
|
(b)
|
Indicates
terms are defined in the Glossary.
|
(c)
|
Includes
employees of Genworth, which was subsequently deconsolidated in
2005.
|
(d)
|
7.07:1
net of cash and equivalents and with classification of hybrid debt as
equity.
|
Audit
resolutions –
effect
on GE excluding GECS tax rate
|
|||||||||
2008
|
2007
|
2006
|
|||||||
Tax
on global activities including exports
|
–
|
%
|
(2.7
|
)%
|
(0.8
|
)%
|
|||
All
other – net
|
(0.6
|
)
|
(2.4
|
)
|
(0.8
|
)
|
|||
(0.6
|
)%
|
(5.1
|
)%
|
(1.6
|
)%
|
·
|
Liquidity
risk is the risk of being unable to accommodate liability maturities, fund
asset growth and meet contractual obligations through access to funding at
reasonable market rates. Additional information about our liquidity and
how we manage this risk can be found in the Financial Resources and
Liquidity section of this Item and in Notes 18 and 29 to the consolidated
financial statements in Part II, Item 8. “Financial Statements and
Supplementary Data” of this Form 10-K
Report.
|
·
|
Credit
risk is the risk of financial loss arising from a customer or counterparty
failure to meet its contractual obligations. We face credit risk in our
investing, lending and leasing activities and derivative financial
instruments activities (see the Financial Resources and Liquidity and
Critical Accounting Estimates sections of this Item and Notes 1, 9, 12,
13, 29 and 31 to the consolidated financial statements in Part II, Item 8.
“Financial Statements and Supplementary Data” of this Form 10-K
Report).
|
·
|
Market
risk is the potential loss in value of investment and other asset and
liability portfolios, including financial instruments and residual values
of leased assets. This risk is caused by changes in market variables, such
as interest and currency exchange rates and equity and commodity prices.
We are exposed to market risk in the normal course of our business
operations as a result of our ongoing investing and funding activities.
Additional information can be found in the Financial Resources and
Liquidity section of this Item and in Notes 6, 9, 12, 14, 28 and 29 to the
consolidated financial statements in Part II, Item 8. “Financial
Statements and Supplementary Data” of this Form 10-K
Report.
|
·
|
Government
and regulatory risk is the risk that the government or regulatory
authorities will implement new laws or rules, amend existing laws or
rules, or interpret or enforce them in ways that would cause us to have to
change our business models or practices. We manage these risks through the
GECS Board, our Policy Compliance Review Board and our Corporate Risk
Committee.
|
·
|
Our
real estate investment portfolio includes approximately 3,200 properties
located in 900 cities and 22 countries, with 71% of this portfolio outside
the U.S., primarily located in Europe, the U.K., Asia, Canada and Mexico,
across a wide variety of property types including office,
industrial/warehouse, and
multifamily.
|
·
|
Our
real estate lending portfolio is secured by approximately 4,800 properties
in 1,900 cities and 25 countries, with 44% of the assets securing this
portfolio located outside the U.S., across a wide variety of property
types including office, multifamily and
hotel.
|
·
|
The
single tenant financing portfolio has approximately 4,200 properties in
1,360 cities in the U.S. and Canada, and an average loan size under $3
million.
|
General
Electric Company and consolidated affiliates
|
|||||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||
Revenues
|
|||||||||||||||
Energy
Infrastructure
|
$
|
38,571
|
$
|
30,698
|
$
|
25,221
|
$
|
21,921
|
$
|
19,841
|
|||||
Technology
Infrastructure
|
46,316
|
42,801
|
37,687
|
33,873
|
30,142
|
||||||||||
NBC
Universal
|
16,969
|
15,416
|
16,188
|
14,689
|
12,886
|
||||||||||
Capital
Finance
|
67,008
|
66,301
|
56,378
|
49,071
|
43,750
|
||||||||||
Consumer
& Industrial
|
11,737
|
12,663
|
13,202
|
13,040
|
12,408
|
||||||||||
Total
segment revenues
|
180,601
|
167,879
|
148,676
|
132,594
|
119,027
|
||||||||||
Corporate
items and eliminations
|
1,914
|
4,609
|
2,892
|
3,668
|
4,787
|
||||||||||
Consolidated
revenues
|
$
|
182,515
|
$
|
172,488
|
$
|
151,568
|
$
|
136,262
|
$
|
123,814
|
|||||
Segment
profit
|
|||||||||||||||
Energy
Infrastructure
|
$
|
6,080
|
$
|
4,817
|
$
|
3,518
|
$
|
3,222
|
$
|
3,100
|
|||||
Technology
Infrastructure
|
8,152
|
7,883
|
7,308
|
6,188
|
5,412
|
||||||||||
NBC
Universal
|
3,131
|
3,107
|
2,919
|
3,092
|
2,558
|
||||||||||
Capital
Finance
|
8,632
|
12,243
|
10,397
|
8,414
|
6,593
|
||||||||||
Consumer
& Industrial
|
365
|
1,034
|
970
|
732
|
601
|
||||||||||
Total
segment profit
|
26,360
|
29,084
|
25,112
|
21,648
|
18,264
|
||||||||||
Corporate
items and eliminations
|
(2,691
|
)
|
(1,840
|
)
|
(1,548
|
)
|
(372
|
)
|
165
|
||||||
GE
interest and other financial charges
|
(2,153
|
)
|
(1,993
|
)
|
(1,668
|
)
|
(1,319
|
)
|
(901
|
)
|
|||||
GE
provision for income taxes
|
(3,427
|
)
|
(2,794
|
)
|
(2,552
|
)
|
(2,678
|
)
|
(1,937
|
)
|
|||||
Earnings
from continuing operations
|
18,089
|
22,457
|
19,344
|
17,279
|
15,591
|
||||||||||
Earnings
(loss) from discontinued
|
|||||||||||||||
operations,
net of taxes
|
(679
|
)
|
(249
|
)
|
1,398
|
(559
|
)
|
1,631
|
|||||||
Consolidated net
earnings
|
$
|
17,410
|
$
|
22,208
|
$
|
20,742
|
$
|
16,720
|
$
|
17,222
|
See
accompanying notes to consolidated financial
statements.
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Revenues
|
$
|
38,571
|
$
|
30,698
|
$
|
25,221
|
|||
Segment
profit
|
$
|
6,080
|
$
|
4,817
|
$
|
3,518
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Revenues
|
|||||||||
Energy
|
$
|
29,309
|
$
|
22,456
|
$
|
19,406
|
|||
Oil
& Gas
|
7,417
|
6,849
|
4,340
|
||||||
Segment
profit
|
|||||||||
Energy
|
$
|
4,880
|
$
|
3,835
|
$
|
2,918
|
|||
Oil
& Gas
|
1,127
|
860
|
548
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Revenues
|
$
|
46,316
|
$
|
42,801
|
$
|
37,687
|
|||
Segment
profit
|
$
|
8,152
|
$
|
7,883
|
$
|
7,308
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Revenues
|
|||||||||
Aviation
|
$
|
19,239
|
$
|
16,819
|
$
|
13,017
|
|||
Enterprise
Solutions
|
4,710
|
4,462
|
3,951
|
||||||
Healthcare
|
17,392
|
16,997
|
16,560
|
||||||
Transportation
|
5,016
|
4,523
|
4,159
|
||||||
Segment
profit
|
|||||||||
Aviation
|
$
|
3,684
|
$
|
3,222
|
$
|
2,802
|
|||
Enterprise
Solutions
|
691
|
697
|
620
|
||||||
Healthcare
|
2,851
|
3,056
|
3,142
|
||||||
Transportation
|
962
|
936
|
774
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Revenues
|
$
|
67,008
|
$
|
66,301
|
$
|
56,378
|
|||
Segment
profit
|
$
|
8,632
|
$
|
12,243
|
$
|
10,397
|
December
31 (In millions)
|
2008
|
2007
|
|||||||
Total
assets
|
$
|
572,903
|
$
|
583,965
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Revenues
|
|||||||||
Commercial
Lending and Leasing (CLL)
|
$
|
26,742
|
$
|
27,267
|
$
|
25,833
|
|||
GE
Money
|
25,012
|
24,769
|
19,508
|
||||||
Real
Estate
|
6,646
|
7,021
|
5,020
|
||||||
Energy
Financial Services
|
3,707
|
2,405
|
1,664
|
||||||
GE
Commercial Aviation Services (GECAS)
|
4,901
|
4,839
|
4,353
|
||||||
Segment
profit
|
|||||||||
CLL
|
$
|
1,805
|
$
|
3,801
|
$
|
3,503
|
|||
GE
Money
|
3,664
|
4,269
|
3,231
|
||||||
Real
Estate
|
1,144
|
2,285
|
1,841
|
||||||
Energy
Financial Services
|
825
|
677
|
648
|
||||||
GECAS
|
1,194
|
1,211
|
1,174
|
December
31 (In millions)
|
2008
|
2007
|
|||||||
Total
assets
|
|||||||||
CLL
|
$
|
232,486
|
$
|
229,608
|
|||||
GE
Money
|
183,617
|
209,178
|
|||||||
Real
Estate
|
85,266
|
79,285
|
|||||||
Energy
Financial Services
|
22,079
|
18,705
|
|||||||
GECAS
|
49,455
|
47,189
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Revenues
|
|||||||||
Insurance
activities
|
$
|
3,335
|
$
|
3,962
|
$
|
3,692
|
|||
Eliminations
and other
|
(1,421
|
)
|
647
|
(800
|
)
|
||||
Total
|
$
|
1,914
|
$
|
4,609
|
$
|
2,892
|
|||
Operating
profit (cost)
|
|||||||||
Insurance
activities
|
$
|
(202
|
)
|
$
|
145
|
$
|
57
|
||
Principal
pension plans
|
(244
|
)
|
(755
|
)
|
(877
|
)
|
|||
Underabsorbed
corporate overhead
|
(341
|
)
|
(437
|
)
|
(266
|
)
|
|||
Other
|
(1,904
|
)
|
(793
|
)
|
(462
|
)
|
|||
Total
|
$
|
(2,691
|
)
|
$
|
(1,840
|
)
|
$
|
(1,548
|
)
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Earnings
(loss) from discontinued
|
|||||||||
operations,
net of taxes
|
$
|
(679
|
)
|
$
|
(249
|
)
|
$
|
1,398
|
(In
billions)
|
2008
|
2007
|
2006
|
||||||
U.S.
|
$
|
85.3
|
$
|
86.2
|
$
|
81.1
|
|||
Europe
|
44.0
|
39.9
|
32.6
|
||||||
Pacific
Basin
|
23.6
|
21.8
|
17.7
|
||||||
Americas
|
14.8
|
12.6
|
11.5
|
||||||
Middle
East and Africa
|
10.1
|
8.0
|
5.5
|
||||||
Other
Global
|
4.7
|
4.0
|
3.2
|
||||||
Total
|
$
|
182.5
|
$
|
172.5
|
$
|
151.6
|
December
31 (In billions)
|
2008
|
2007
|
||||
U.S.
|
$
|
395.6
|
$
|
364.5
|
||
Europe
|
228.0
|
236.5
|
||||
Pacific
Basin
|
75.0
|
87.8
|
||||
Americas
|
40.9
|
42.6
|
||||
Other
Global
|
56.5
|
55.4
|
||||
Total
|
$
|
796.0
|
$
|
786.8
|
Financing
receivables
|
Nonearning
receivables
|
Allowance
for
losses
|
||||||||||||||||
December
31 (In millions)
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
CLL
|
||||||||||||||||||
Equipment
and
|
||||||||||||||||||
leasing
and other
|
$
|
99,769
|
$
|
96,817
|
$
|
1,526
|
$
|
939
|
$
|
894
|
$
|
661
|
||||||
Commercial
and
|
||||||||||||||||||
industrial
|
64,332
|
58,863
|
1,128
|
757
|
415
|
276
|
||||||||||||
GE
Money
|
||||||||||||||||||
Non-U.S.
residential
|
||||||||||||||||||
mortgages
|
59,595
|
73,042
|
3,317
|
2,465
|
382
|
246
|
||||||||||||
Non-U.S.
installment
|
||||||||||||||||||
and
revolving credit
|
24,441
|
34,669
|
413
|
533
|
1,051
|
1,371
|
||||||||||||
U.S.
installment and
|
||||||||||||||||||
revolving
credit
|
27,645
|
27,914
|
758
|
515
|
1,700
|
985
|
||||||||||||
Non-U.S.
auto
|
18,168
|
27,368
|
83
|
75
|
222
|
324
|
||||||||||||
Other
|
9,244
|
10,198
|
152
|
91
|
214
|
162
|
||||||||||||
Real
Estate
(a)
|
46,735
|
32,228
|
194
|
25
|
301
|
168
|
||||||||||||
Energy
Financial
|
||||||||||||||||||
Services
|
8,392
|
7,898
|
241
|
–
|
58
|
19
|
||||||||||||
GECAS
|
15,429
|
14,197
|
146
|
–
|
60
|
8
|
||||||||||||
Other
|
4,031
|
5,111
|
38
|
71
|
28
|
18
|
||||||||||||
Total
|
$
|
377,781
|
$
|
388,305
|
$
|
7,996
|
$
|
5,471
|
$
|
5,325
|
$
|
4,238
|
||||||
(a)
|
Financing
receivables included $731 million and $452 million of construction loans
at December 31, 2008 and 2007,
respectively.
|
Nonearning
receivables
as
a
percent of financing
receivables
|
Allowance
for losses
as
a percent of
nonearning
receivables
|
Allowance
for losses
as
a percent of total
financing
receivables
|
||||||||||||||||
December
31
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
CLL
|
||||||||||||||||||
Equipment
and
|
||||||||||||||||||
leasing
and other
|
1.5
|
%
|
1.0
|
%
|
58.6
|
%
|
70.4
|
%
|
0.9
|
%
|
0.7
|
%
|
||||||
Commercial
and
|
||||||||||||||||||
industrial
|
1.8
|
1.3
|
36.8
|
36.5
|
0.6
|
0.5
|
||||||||||||
GE
Money
|
||||||||||||||||||
Non-U.S.
residential
|
||||||||||||||||||
mortgages
|
5.6
|
3.4
|
11.5
|
10.0
|
0.6
|
0.3
|
||||||||||||
Non-U.S.
installment
|
||||||||||||||||||
and
revolving credit
|
1.7
|
1.5
|
254.5
|
257.2
|
4.3
|
4.0
|
||||||||||||
U.S.
installment and
|
||||||||||||||||||
revolving
credit
|
2.7
|
1.8
|
224.3
|
191.3
|
6.1
|
3.5
|
||||||||||||
Non-U.S.
auto
|
0.5
|
0.3
|
267.5
|
432.0
|
1.2
|
1.2
|
||||||||||||
Other
|
1.6
|
0.9
|
140.8
|
178.0
|
2.3
|
1.6
|
||||||||||||
Real
Estate
|
0.4
|
0.1
|
155.2
|
672.0
|
0.6
|
0.5
|
||||||||||||
Energy
Financial
|
||||||||||||||||||
Services
|
2.9
|
–
|
24.1
|
–
|
0.7
|
0.2
|
||||||||||||
GECAS
|
0.9
|
–
|
41.1
|
–
|
0.4
|
0.1
|
||||||||||||
Other
|
0.9
|
1.4
|
73.7
|
25.4
|
0.7
|
0.4
|
||||||||||||
Total
|
2.1
|
1.4
|
66.6
|
77.5
|
1.4
|
1.1
|
December
31 (In millions)
|
2008
|
2007
|
||||
Loans
requiring allowance for losses
|
$
|
2,712
|
$
|
986
|
||
Loans
expected to be fully recoverable
|
871
|
391
|
||||
Total
impaired loans
|
$
|
3,583
|
$
|
1,377
|
||
Allowance
for losses
|
$
|
635
|
$
|
361
|
||
Average
investment during year
|
2,064
|
1,576
|
||||
Interest
income earned while impaired
(a)
|
27
|
19
|
||||
(a)
|
Recognized
principally on cash basis.
|
December
31
|
2008
|
2007
|
2006
|
||||||
Equipment
financing
|
2.17
|
%
|
1.21
|
%
|
1.22
|
%
|
|||
Consumer
|
7.47
|
5.38
|
5.22
|
||||||
U.S.
|
7.14
|
5.52
|
4.93
|
||||||
Non-U.S.
|
7.64
|
5.32
|
5.34
|
·
|
Reduced
the GECS dividend to GE from 40% to 10% of GECS earnings and suspended our
stock repurchase program.
|
·
|
Raised
$15 billion in cash through common and preferred stock offerings in
October 2008 and contributed $5.5 billion to GE Capital. In February 2009,
the GE Board authorized a capital contribution of up to $9.5 billion to GE
Capital, which is expected to be made in the first quarter of
2009.
|
·
|
Reduced
our commercial paper borrowings at GECS to $72 billion at December 31,
2008.
|
·
|
Targeted
to further reduce GECS commercial paper borrowings to $50 billion by the
end of 2009 and to target committed credit lines equal to GECS commercial
paper borrowings going forward.
|
·
|
Grown
our alternative funding to $54 billion at December 31, 2008, including $36
billion of bank deposits.
|
·
|
Registered
to use the Federal Reserve’s Commercial Paper Funding Facility (CPFF) for
up to $98 billion, which is available through October 31,
2009.
|
·
|
Registered
to use the Federal Deposit Insurance Corporation’s (FDIC) Temporary
Liquidity Guarantee Program (TLGP) for approximately $126
billion.
|
·
|
At
GECS, we are managing collections versus originations to help support
liquidity needs and are estimating $25 billion of excess collections in
2009.
|
·
|
It
is our policy to minimize exposure to interest rate changes. We fund our
financial investments using debt or a combination of debt and hedging
instruments so that the interest rates of our borrowings match the
expected yields on our assets. To test the effectiveness of our positions,
we assumed that, on January 1, 2009, interest rates increased by 100 basis
points across the yield curve (a “parallel shift” in that curve) and
further assumed that the increase remained in place for 2009. We
estimated, based on the year-end 2008 portfolio and holding everything
else constant, that our 2009 consolidated net earnings would decline by
$0.1 billion.
|
·
|
It
is our policy to minimize currency exposures and to conduct operations
either within functional currencies or using the protection of hedge
strategies. We analyzed year-end 2008 consolidated currency exposures,
including derivatives designated and effective as hedges, to identify
assets and liabilities denominated in other than their relevant functional
currencies. For such assets and liabilities, we then evaluated the effects
of a 10% shift in exchange rates between those currencies and the U.S.
dollar. This analysis indicated that there would be an inconsequential
effect on 2009 earnings of such a shift in exchange
rates.
|
·
|
Changes
in benefit plans reduced shareowners’ equity by $13.3 billion in 2008,
reflecting declines in the fair value of plan assets as a result of market
conditions and adverse changes in the economic environment. This compared
with increases of $2.6 billion and $0.3 billion in 2007 and 2006,
respectively. In addition, adoption of SFAS 158,
Employers’ Accounting for
Defined Benefit Pension and Other Postretirement Plans
, at December
31, 2006, reduced shareowners’ equity by $3.8 billion. Further information
about changes in benefit plans is provided in Note 6 to the consolidated
financial statements in Part II, Item 8. “Financial Statements and
Supplementary Data” of this Form 10-K
Report.
|
·
|
Currency
translation adjustments decreased shareowners’ equity by $11.0 billion in
2008 and increased equity by $4.5 billion and $3.6 billion in 2007 and
2006, respectively. Changes in currency translation adjustments reflect
the effects of changes in currency exchange rates on our net investment in
non-U.S. subsidiaries that have functional currencies other than the U.S.
dollar. At the end of 2008, the U.S. dollar was stronger against most
major currencies, including the pound sterling, the Australian dollar and
the euro, compared with a weaker dollar against those currencies at the
end of 2007 and 2006. The dollar was weaker against the Japanese yen in
2008 and 2007.
|
·
|
Net
unrealized losses on investment securities reduced shareowners’ equity by
$3.2 billion in 2008, reflecting adverse market conditions on the fair
value of securities classified as available for sale, primarily corporate
debt and mortgage-backed securities. The change in fair value of
investment securities decreased shareowners’ equity by $1.5 billion and
$0.2 billion in 2007 and 2006, respectively. Further information about
investment securities is provided in Note 9 to the consolidated financial
statements in Part II, Item 8. “Financial Statements and Supplementary
Data” of this Form 10-K Report.
|
·
|
Changes
in the fair value of derivatives designated as cash flow hedges decreased
shareowners’ equity by $2.7 billion in 2008, primarily reflecting the
effect of lower interest rates on interest rate and currency swaps. The
change in the fair value of derivatives designated as cash flow hedges
decreased equity by $0.5 billion in 2007 and increased equity by $0.2
billion in 2006. Further information about the fair value of derivatives
is provided in Note 29 to the consolidated financial statements in Part
II, Item 8. “Financial Statements and Supplementary Data” of this Form
10-K Report.
|
·
|
We
raised $12.0 billion from the issuance of 547.8 million shares of common
stock at an issuance price of $22.25 per
share.
|
·
|
We
issued 30,000 shares of preferred stock and related warrants for $3.0
billion in proceeds.
|
·
|
We
suspended our share repurchase
program.
|
December
31 (In billions)
|
2008
|
2007
|
2006
|
||||||
Operating
cash collections
|
$
|
115.5
|
$
|
102.8
|
$
|
90.6
|
|||
Operating
cash payments
|
(98.8
|
)
|
(86.8
|
)
|
(76.6
|
)
|
|||
Cash
dividends from GECS
|
2.4
|
7.3
|
9.8
|
||||||
GE
cash from operating activities (GE CFOA)
|
$
|
19.1
|
$
|
23.3
|
$
|
23.8
|
Payments
due by period
|
|||||||||||||||
(In
billions)
|
Total
|
2009
|
2010-
2011
|
2012-
2013
|
2014
and
thereafter
|
||||||||||
Borrowings
(Note 18)
|
$
|
523.8
|
$
|
193.7
|
$
|
115.6
|
$
|
79.8
|
$
|
134.7
|
|||||
Interest
on borrowings
|
142.0
|
20.0
|
29.0
|
18.0
|
75.0
|
||||||||||
Operating
lease obligations (Note 5)
|
6.6
|
1.3
|
2.2
|
1.6
|
1.5
|
||||||||||
Purchase
obligations
(a)(b)
|
63.0
|
40.0
|
16.0
|
6.0
|
1.0
|
||||||||||
Insurance
liabilities (Note 19)
(c)
|
22.0
|
3.0
|
5.0
|
3.0
|
11.0
|
||||||||||
Other
liabilities
(d)
|
97.0
|
33.0
|
8.0
|
4.0
|
52.0
|
||||||||||
Contractual
obligations of
|
|||||||||||||||
discontinued
operations
(e)
|
1.0
|
1.0
|
–
|
–
|
–
|
(a)
|
Included
all take-or-pay arrangements, capital expenditures, contractual
commitments to purchase equipment that will be leased to others, software
acquisition/license commitments, contractual minimum programming
commitments and any contractually required cash payments for
acquisitions.
|
(b)
|
Excluded
funding commitments entered into in the ordinary course of business by our
financial services businesses. Further information on these commitments
and other guarantees is provided in Note 31 to the consolidated financial
statements in Part II, Item 8. “Financial Statements and Supplementary
Data” of this Form 10-K Report.
|
(c)
|
Included
guaranteed investment contracts, structured settlements and single premium
immediate annuities based on scheduled payouts, as well as those contracts
with reasonably determinable cash flows such as deferred annuities,
universal life, term life, long-term care, whole life and other life
insurance contracts.
|
(d)
|
Included
an estimate of future expected funding requirements related to our pension
and postretirement benefit plans and included liabilities for unrecognized
tax benefits. Because their future cash outflows are uncertain, the
following non-current liabilities are excluded from the table above:
deferred taxes, derivatives, deferred revenue and other sundry items. See
Notes 21 and 29 to the consolidated financial statements in Part II, Item
8. “Financial Statements and Supplementary Data” of this Form 10-K Report
for further information on certain of these items.
|
(e)
|
Included
payments for other liabilities.
|
·
|
Earnings
and profitability, revenue growth, the breadth and diversity of sources of
income and return on assets
|
·
|
Asset
quality, including delinquency and write-off ratios and reserve
coverage
|
·
|
Funding
and liquidity, including cash generated from operating activities,
leverage ratios such as debt-to-capital, retained cash flow to debt,
market access, back-up liquidity from banks and other sources, composition
of total debt and interest coverage
|
·
|
Capital
adequacy, including required capital and tangible leverage
ratios
|
·
|
Franchise
strength, including competitive advantage and market conditions and
position
|
·
|
Strength
of management, including experience, corporate governance and strategic
thinking
|
·
|
Financial
reporting quality, including clarity, completeness and transparency of all
financial performance
communications
|
·
|
Swap,
forward and option contracts are required to be executed under standard
master agreements containing mutual downgrade provisions that provide the
ability of the counterparty to require assignment or termination if the
long-term credit rating of the applicable GE entity were to fall below
A–/A3. In certain of these master netting agreements, the counterparty
also has the ability to require assignment or termination if the
short-term rating of the applicable GE entity were to fall below A-1/P-1.
The fair value of our exposure after consideration of netting arrangements
and collateral under the agreements was estimated to be $4.0 billion at
December 31, 2008.
|
·
|
If
GE Capital’s ratio of earnings to fixed charges, which was 1.24:1 at the
end of 2008, were to deteriorate to 1.10:1, GE has committed to contribute
capital to GE Capital. GE also guaranteed certain issuances of GECS
subordinated debt having a face amount of $0.8 billion at
December 31, 2008 and 2007.
|
·
|
In
connection with certain subordinated debentures for which GECC receives
equity credit by rating agencies, GE has agreed to promptly return to GECC
dividends, distributions or other payments it receives from GECC during
events of default or interest deferral periods under such subordinated
debentures. There were $7.3 billion of such debentures outstanding at
December 31, 2008.
|
·
|
If
the short-term credit rating of GE Capital or certain consolidated
entities discussed further in Note 30 to the consolidated financial
statements in Part II, Item 8. “Financial Statements and Supplementary
Data” of this Form 10-K Report were to be reduced below A–1/P–1, GE
Capital would be required to provide substitute liquidity for those
entities or provide funds to retire the outstanding commercial paper. The
maximum net amount that GE Capital would be required to provide in the
event of such a downgrade is determined by contract, and amounted to $3.8
billion at December 31, 2008.
|
·
|
One
group of consolidated entities holds investment securities funded by the
issuance of GICs. If the long-term credit rating of GE Capital were to
fall below AA-/Aa3 or its short-term credit rating were to fall below
A-1+/P-1, GE Capital would be required to provide approximately $3.5
billion of capital to such entities as of December 31, 2008, pursuant to
letters of credit issued by GECC. To the extent that the entities’
liabilities exceed the ultimate value of the proceeds from the sale of
their assets and the amount drawn under the letters of credit, GE Capital
could be required to provide such excess amount. As of December 31, 2008,
the value of these entities’ liabilities was $10.7 billion and the fair
value of their assets was $9.2 billion (which included unrealized losses
on investment securities of $2.1 billion). With respect to these
investment securities, we intend to hold them at least until such time as
their individual fair values exceed their amortized cost and we have the
ability to hold all such debt securities until
maturity.
|
·
|
Another
consolidated entity also issues GICs where proceeds are loaned to GE
Capital. If the long-term credit rating of GE Capital were to fall below
AA-/Aa3 or its short-term credit rating were to fall below A-1+/P-1, GE
Capital could be required to provide up to approximately $4.7 billion as
of December 31, 2008 to repay holders of
GICs.
|
·
|
Discount
rate – A 25 basis point increase in discount rate would decrease pension
cost in the following year by $0.2
billion.
|
·
|
Expected
return on assets – A 50 basis point decrease in the expected return on
assets would increase pension cost in the following year by $0.3
billion.
|
·
|
In-process
research and development (IPR&D) will be accounted for as an asset,
with the cost recognized as the research and development is realized or
abandoned. IPR&D is presently expensed at the time of the
acquisition.
|
·
|
Contingent
consideration will generally be recorded at fair value with subsequent
adjustments recognized in operations. Contingent consideration is
presently accounted for as an adjustment of purchase
price.
|
·
|
Decreases
in valuation allowances on acquired deferred tax assets will be recognized
in operations. Such changes previously were considered to be subsequent
changes in consideration and were recorded as decreases in
goodwill.
|
·
|
Transaction
costs will generally be expensed. Certain such costs are presently treated
as costs of the acquisition.
|
·
|
Average
organic revenue growth for the three years ended December 31,
2008
|
·
|
Average
total shareowners’ equity, excluding effects of discontinued
operations
|
·
|
Ratio
of debt to equity at GE Capital, net of cash and equivalents and with
classification of hybrid debt as
equity
|
·
|
GE
pre-tax earnings from continuing operations before income taxes, excluding
GECS earnings from continuing operations, the corresponding effective tax
rates and the reconciliation of the U.S. federal statutory rate to those
effective tax rates for the three years ended December 31,
2008
|
·
|
Delinquency
rates on managed equipment financing loans and leases and managed consumer
financing receivables for 2008, 2007 and
2006
|
(In
millions)
|
2008
|
2007
|
%
change
|
||||||
GE
consolidated revenues as reported
|
$
|
182,515
|
$
|
172,488
|
|||||
Less
the effects of
|
|||||||||
Acquisitions,
business dispositions (other than dispositions
|
|||||||||
of
businesses acquired for investment) and currency
|
|||||||||
exchange
rates
|
10,139
|
2,992
|
|||||||
The
2008 Olympics broadcasts
|
1,020
|
–
|
|||||||
GE
consolidated revenues excluding the effects of
|
|||||||||
acquisitions,
business dispositions (other than dispositions
|
|||||||||
of
businesses acquired for investment), currency exchange
|
|||||||||
rates
and the 2008 Olympics broadcasts (organic revenues)
|
$
|
171,356
|
$
|
169,496
|
1
|
%
|
(In
millions)
|
2007
|
2006
|
%
change
|
||||||
GE
consolidated revenues as reported
|
$
|
172,488
|
$
|
151,568
|
|||||
Less
the effects of
|
|||||||||
Acquisitions,
business dispositions (other than dispositions
|
|||||||||
of
businesses acquired for investment) and currency
|
|||||||||
exchange
rates
|
12,803
|
4,992
|
|||||||
The
2006 Olympics broadcasts
|
–
|
684
|
|||||||
Reclassification
of discontinued operations
|
(250
|
)
|
(275
|
)
|
|||||
GE
consolidated revenues excluding the effects of
|
|||||||||
acquisitions,
business dispositions (other than dispositions
|
|||||||||
of
businesses acquired for investment), currency exchange
|
|||||||||
rates,
the 2006 Olympics broadcasts and reclassifications
|
|||||||||
of
discontinued operations (organic revenues)
|
$
|
159,935
|
$
|
146,167
|
9
|
%
|
(In
millions)
|
2006
|
2005
|
%
change
|
||||||
GE
consolidated revenues as reported
|
$
|
151,568
|
$
|
136,262
|
|||||
Less
the effects of
|
|||||||||
Acquisitions,
business dispositions (other than dispositions
|
|||||||||
of
businesses acquired for investment) and currency
|
|||||||||
exchange
rates
|
5,213
|
2,750
|
|||||||
The
2006 Olympics broadcasts
|
684
|
–
|
|||||||
Restatement
and immaterial adjustments
|
(219
|
)
|
398
|
||||||
Reclassifications
of discontinued operations
|
(11,407
|
)
|
(11,552
|
)
|
|||||
GE
consolidated revenues excluding the effects of
acquisitions,
|
|||||||||
business
dispositions (other than dispositions of businesses
|
|||||||||
acquired
for investment), currency exchange rates,
|
|||||||||
the
2006 Olympics broadcasts, restatement and immaterial
|
|||||||||
adjustments
and reclassifications of discontinued operations
|
|||||||||
(organic
revenues)
|
$
|
157,297
|
$
|
144,666
|
9
|
%
|
|||
Three-year
average
|
6
|
%
|
December
31 (In millions)
|
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||
Average total shareowners’
equity
(b)
|
$
|
113,387
|
$
|
113,842
|
$
|
109,174
|
$
|
110,998
|
$
|
94,521
|
|||||
Less
the effects of
|
|||||||||||||||
Cumulative
earnings from discontinued operations
|
–
|
–
|
–
|
2,094
|
2,985
|
||||||||||
Average
net investment in discontinued operations
|
(590
|
)
|
3,640
|
11,658
|
13,298
|
8,743
|
|||||||||
Average
total shareowners’ equity, excluding effects of
|
|||||||||||||||
discontinued
operations
(a)
|
$
|
113,977
|
$
|
110,202
|
$
|
97,516
|
$
|
95,606
|
$
|
82,793
|
|||||
(a)
|
Used
for computing return on average shareowners’ equity and return on average
total capital invested shown in the Selected Financial Data section in
Part II, Item 6. “Selected Financial Data.”
|
(b)
|
On
an annual basis, calculated using a five-point
average.
|
December
31 (Dollars in millions)
|
2008
|
|||||
GE
Capital debt
|
$
|
510,356
|
||||
Less
cash and equivalents
|
(36,430
|
)
|
||||
Less
hybrid debt
|
(7,725
|
)
|
||||
$
|
466,201
|
|||||
GE
Capital equity
|
$
|
58,229
|
||||
Plus
hybrid debt
|
7,725
|
|||||
$
|
65,954
|
|||||
Ratio
|
7.07:1
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
GE
earnings from continuing operations before income taxes
|
$
|
21,516
|
$
|
25,251
|
$
|
21,896
|
|||
Less
GECS earnings from continuing operations
|
7,774
|
12,417
|
10,219
|
||||||
Total
|
$
|
13,742
|
$
|
12,834
|
$
|
11,677
|
|||
GE
provision for income taxes
|
$
|
3,427
|
$
|
2,794
|
$
|
2,552
|
|||
GE
effective tax rate, excluding GECS earnings
|
24.9
|
%
|
21.8
|
%
|
21.9
|
%
|
2008
|
2007
|
2006
|
|||||||
U.S.
federal statutory income tax rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
|||
Reduction
in rate resulting from
|
|||||||||
Tax
on global activities including exports
|
(8.2
|
)
|
(9.9
|
)
|
(12.2
|
)
|
|||
U.S.
business credits
|
(0.6
|
)
|
(0.6
|
)
|
(0.7
|
)
|
|||
All
other – net
|
(1.3
|
)
|
(2.7
|
)
|
(0.2
|
)
|
|||
(10.1
|
)
|
(13.2
|
)
|
(13.1
|
)
|
||||
GE
income tax rate, excluding GECS earnings
|
24.9
|
%
|
21.8
|
%
|
21.9
|
%
|
December
31
|
2008
|
2007
|
2006
|
||||||
Managed
|
2.17
|
%
|
1.21
|
%
|
1.22
|
%
|
|||
Off-book
|
1.20
|
0.71
|
0.52
|
||||||
On-book
|
2.34
|
1.33
|
1.42
|
December
31
|
2008
|
2007
|
2006
|
||||||
Managed
|
7.47
|
%
|
5.38
|
%
|
5.22
|
%
|
|||
U.S.
|
7.14
|
5.52
|
4.93
|
||||||
Non-U.S.
|
7.64
|
5.32
|
5.34
|
||||||
Off-book
|
8.24
|
6.64
|
5.49
|
||||||
U.S.
|
8.24
|
6.64
|
5.49
|
||||||
Non-U.S.
|
(a)
|
(a)
|
(a)
|
||||||
On-book
|
7.35
|
5.22
|
5.20
|
||||||
U.S.
|
6.39
|
4.78
|
4.70
|
||||||
Non-U.S.
|
7.64
|
5.32
|
5.34
|
||||||
(a)
|
Not
applicable.
|
/s/
Jeffrey R. Immelt
|
/s/
Keith S. Sherin
|
|
Jeffrey
R. Immelt
|
Keith
S. Sherin
|
|
Chairman
of the Board and
Chief
Executive Officer
February
6, 2009
|
Vice
Chairman and
Chief
Financial Officer
|
/s/
KPMG LLP
|
|
KPMG
LLP
|
|
Stamford,
Connecticut
|
|
February
6, 2009
|
General
Electric Company
and
consolidated affiliates
|
|||||||||
For
the years ended December 31 (In millions; per-share amounts in
dollars)
|
2008
|
2007
|
2006
|
||||||
Revenues
|
|||||||||
Sales
of goods
|
$
|
69,100
|
$
|
60,670
|
$
|
55,181
|
|||
Sales
of services
|
43,669
|
38,856
|
36,329
|
||||||
Other
income (Note 3)
|
1,586
|
3,019
|
2,154
|
||||||
GECS
earnings from continuing operations
|
–
|
–
|
–
|
||||||
GECS
revenues from services (Note 4)
|
68,160
|
69,943
|
57,904
|
||||||
Total
revenues
|
182,515
|
172,488
|
151,568
|
||||||
Costs and expenses
(Note
5)
|
|||||||||
Cost
of goods sold
|
54,602
|
47,309
|
43,279
|
||||||
Cost
of services sold
|
29,170
|
25,816
|
23,494
|
||||||
Interest
and other financial charges
|
26,209
|
23,762
|
18,879
|
||||||
Investment
contracts, insurance losses and insurance
|
|||||||||
annuity
benefits
|
3,213
|
3,469
|
3,213
|
||||||
Provision
for losses on financing receivables (Note 13)
|
7,518
|
4,431
|
3,062
|
||||||
Other
costs and expenses
|
42,021
|
40,173
|
35,491
|
||||||
Minority
interest in net earnings of consolidated affiliates
|
641
|
916
|
862
|
||||||
Total
costs and expenses
|
163,374
|
145,876
|
128,280
|
||||||
Earnings
from continuing operations
|
|||||||||
before
income taxes
|
19,141
|
26,612
|
23,288
|
||||||
Provision
for income taxes (Note 7)
|
(1,052
|
)
|
(4,155
|
)
|
(3,944
|
)
|
|||
Earnings
from continuing operations
|
18,089
|
22,457
|
19,344
|
||||||
Earnings
(loss) from discontinued operations, net of taxes (Note 2)
|
(679
|
)
|
(249
|
)
|
1,398
|
||||
Net
earnings
|
17,410
|
22,208
|
20,742
|
||||||
Preferred
stock dividends declared
|
(75
|
)
|
–
|
–
|
|||||
Net
earnings attributable to common shareowners
|
$
|
17,335
|
$
|
22,208
|
$
|
20,742
|
|||
Per-share
amounts (Note 8)
|
|||||||||
Earnings
from continuing operations
|
|||||||||
Diluted
earnings per share
|
$
|
1.78
|
$
|
2.20
|
$
|
1.86
|
|||
Basic
earnings per share
|
$
|
1.79
|
$
|
2.21
|
$
|
1.87
|
|||
Net
earnings
|
|||||||||
Diluted
earnings per share
|
$
|
1.72
|
$
|
2.17
|
$
|
2.00
|
|||
Basic
earnings per share
|
$
|
1.72
|
$
|
2.18
|
$
|
2.00
|
|||
Dividends
declared per common share
|
$
|
1.24
|
$
|
1.15
|
$
|
1.03
|
|||
GE
|
GECS
|
|||||||||||||||||
For
the years ended December 31
(In
millions; per-share amounts in dollars)
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
||||||||||||
Revenues
|
||||||||||||||||||
Sales
of goods
|
$
|
67,637
|
$
|
60,374
|
$
|
53,221
|
$
|
1,773
|
$
|
718
|
$
|
2,384
|
||||||
Sales
of services
|
44,377
|
39,422
|
36,698
|
–
|
–
|
–
|
||||||||||||
Other
income (Note 3)
|
1,965
|
3,371
|
2,307
|
–
|
–
|
–
|
||||||||||||
GECS
earnings from continuing operations
|
7,774
|
12,417
|
10,219
|
–
|
–
|
–
|
||||||||||||
GECS
revenues from services (Note 4)
|
–
|
–
|
–
|
69,514
|
71,218
|
58,967
|
||||||||||||
Total
revenues
|
121,753
|
115,584
|
102,445
|
71,287
|
71,936
|
61,351
|
||||||||||||
Costs and expenses
(Note
5)
|
||||||||||||||||||
Cost
of goods sold
|
53,395
|
47,103
|
41,501
|
1,517
|
628
|
2,204
|
||||||||||||
Cost
of services sold
|
29,878
|
26,382
|
23,863
|
–
|
–
|
–
|
||||||||||||
Interest
and other financial charges
|
2,153
|
1,993
|
1,668
|
25,116
|
22,706
|
17,840
|
||||||||||||
Investment
contracts, insurance losses and insurance
|
||||||||||||||||||
annuity
benefits
|
–
|
–
|
–
|
3,421
|
3,647
|
3,419
|
||||||||||||
Provision
for losses on financing receivables (Note 13)
|
–
|
–
|
–
|
7,518
|
4,431
|
3,062
|
||||||||||||
Other
costs and expenses
|
14,401
|
14,148
|
12,893
|
28,085
|
26,537
|
22,977
|
||||||||||||
Minority
interest in net earnings of consolidated
|
||||||||||||||||||
affiliates
|
410
|
707
|
624
|
231
|
209
|
238
|
||||||||||||
Total
costs and expenses
|
100,237
|
90,333
|
80,549
|
65,888
|
58,158
|
49,740
|
||||||||||||
Earnings
from continuing operations
|
||||||||||||||||||
before
income taxes
|
21,516
|
25,251
|
21,896
|
5,399
|
13,778
|
11,611
|
||||||||||||
Provision
for income taxes (Note 7)
|
(3,427
|
)
|
(2,794
|
)
|
(2,552
|
)
|
2,375
|
(1,361
|
)
|
(1,392
|
)
|
|||||||
Earnings
from continuing operations
|
18,089
|
22,457
|
19,344
|
7,774
|
12,417
|
10,219
|
||||||||||||
Earnings
(loss) from discontinued operations,
|
||||||||||||||||||
net
of taxes (Note 2)
|
(679
|
)
|
(249
|
)
|
1,398
|
(719
|
)
|
(2,116
|
)
|
439
|
||||||||
Net
earnings
|
17,410
|
22,208
|
20,742
|
7,055
|
10,301
|
10,658
|
||||||||||||
Preferred
stock dividends declared
|
(75
|
)
|
–
|
–
|
–
|
–
|
–
|
|||||||||||
Net
earnings attributable to common shareowners
|
$
|
17,335
|
$
|
22,208
|
$
|
20,742
|
$
|
7,055
|
$
|
10,301
|
$
|
10,658
|
||||||
In
the consolidating data on this page, “GE” means the basis of consolidation
as described in Note 1 to the consolidated financial statements; “GECS”
means General Electric Capital Services, Inc. and all of its affiliates
and associated companies. Separate information is shown for “GE” and
“Financial Services (GECS).” Transactions between GE and GECS have been
eliminated from the “General Electric Company and consolidated affiliates”
columns on the prior page.
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Changes in shareowners’
equity
(Note 23)
|
|||||||||
Balance
at January 1
|
$
|
115,559
|
$
|
111,509
|
$
|
108,633
|
|||
Dividends
and other transactions with shareowners
|
1,873
|
(23,102
|
)
|
(17,983
|
)
|
||||
Other
comprehensive income
|
|||||||||
Investment
securities – net
|
(3,218
|
)
|
(1,484
|
)
|
(223
|
)
|
|||
Currency
translation adjustments – net
|
(11,007
|
)
|
4,527
|
3,649
|
|||||
Cash
flow hedges – net
|
(2,664
|
)
|
(539
|
)
|
223
|
||||
Benefit
plans – net
|
(13,288
|
)
|
2,566
|
287
|
|||||
Total
other comprehensive income
|
(30,177
|
)
|
5,070
|
3,936
|
|||||
Increases
attributable to net earnings
|
17,410
|
22,208
|
20,742
|
||||||
Comprehensive
income
|
(12,767
|
)
|
27,278
|
24,678
|
|||||
Cumulative
effect of changes in accounting principles
|
–
|
(126
|
)
|
(3,819
|
)
|
||||
Balance
at December 31
|
$
|
104,665
|
$
|
115,559
|
$
|
111,509
|
|||
General
Electric Company
and
consolidated affiliates
|
||||||
At
December 31 (In millions, except share amounts)
|
2008
|
2007
|
||||
Assets
|
||||||
Cash
and equivalents
|
$
|
48,187
|
$
|
15,731
|
||
Investment
securities (Note 9)
|
41,446
|
45,276
|
||||
Current
receivables (Note 10)
|
21,411
|
22,259
|
||||
Inventories
(Note 11)
|
13,674
|
12,897
|
||||
Financing
receivables – net (Notes 12 and 13)
|
365,168
|
376,123
|
||||
Other
GECS receivables
|
13,439
|
16,514
|
||||
Property,
plant and equipment – net (Note 14)
|
78,530
|
77,888
|
||||
Investment
in GECS
|
–
|
–
|
||||
Goodwill
(Note 15)
|
81,759
|
81,116
|
||||
Other
intangible assets – net (Note 15)
|
14,977
|
16,142
|
||||
All
other assets (Note 16)
|
106,899
|
122,848
|
||||
Assets
of businesses held for sale (Note 17)
|
10,556
|
–
|
||||
Assets
of discontinued operations (Note 2)
|
1,723
|
8,889
|
||||
Total
assets
|
$
|
797,769
|
$
|
795,683
|
||
Liabilities
and equity
|
||||||
Short-term
borrowings (Note 18)
|
$
|
193,695
|
$
|
195,100
|
||
Accounts
payable, principally trade accounts
|
20,819
|
21,338
|
||||
Progress
collections and price adjustments accrued
|
12,536
|
9,885
|
||||
Dividends
payable
|
3,340
|
3,100
|
||||
Other
GE current liabilities
|
18,220
|
15,816
|
||||
Long-term
borrowings (Note 18)
|
330,067
|
319,013
|
||||
Investment
contracts, insurance liabilities and insurance
|
||||||
annuity
benefits (Note 19)
|
34,032
|
34,068
|
||||
All
other liabilities (Note 20)
|
64,796
|
59,316
|
||||
Deferred
income taxes (Note 21)
|
4,584
|
12,490
|
||||
Liabilities
of businesses held for sale (Note 17)
|
636
|
–
|
||||
Liabilities
of discontinued operations (Note 2)
|
1,432
|
1,994
|
||||
Total
liabilities
|
684,157
|
672,120
|
||||
Minority
interest in equity of consolidated affiliates (Note 22)
|
8,947
|
8,004
|
||||
Preferred
stock (30,000 and 0 shares outstanding at
|
||||||
year-end
2008 and 2007, respectively)
|
–
|
–
|
||||
Common
stock (10,536,897,000 and 9,987,599,000 shares
|
||||||
outstanding
at year-end 2008 and 2007, respectively)
|
702
|
669
|
||||
Accumulated
gains (losses) – net
|
||||||
Investment
securities
|
(3,094
|
)
|
124
|
|||
Currency
translation adjustments
|
(299
|
)
|
10,708
|
|||
Cash
flow hedges
|
(3,332
|
)
|
(668
|
)
|
||
Benefit
plans
|
(15,128
|
)
|
(1,840
|
)
|
||
Other
capital
|
40,390
|
26,100
|
||||
Retained
earnings
|
122,123
|
117,362
|
||||
Less
common stock held in treasury
|
(36,697
|
)
|
(36,896
|
)
|
||
Total
shareowners’ equity (Notes 23 and 24)
|
104,665
|
115,559
|
||||
Total
liabilities and equity
|
$
|
797,769
|
$
|
795,683
|
||
The
sum of accumulated gains (losses) on investment securities, currency
translation adjustments, cash flow hedges and benefit plans constitutes
“Accumulated other comprehensive income,” as shown in Note 23, and was
$(21,853) million and $8,324 million at December 31, 2008 and 2007,
respectively.
|
See
accompanying notes.
|
GE
|
GECS
|
|||||||||||
At
December 31 (In millions, except share amounts)
|
2008
|
2007
|
2008
|
2007
|
||||||||
Assets
|
||||||||||||
Cash
and equivalents
|
$
|
12,090
|
$
|
6,702
|
$
|
37,486
|
$
|
9,439
|
||||
Investment
securities (Note 9)
|
213
|
343
|
41,236
|
44,941
|
||||||||
Current
receivables (Note 10)
|
15,064
|
15,093
|
–
|
–
|
||||||||
Inventories
(Note 11)
|
13,597
|
12,834
|
77
|
63
|
||||||||
Financing
receivables – net (Notes 12 and 13)
|
–
|
–
|
372,456
|
384,067
|
||||||||
Other
GECS receivables
|
–
|
–
|
18,636
|
22,078
|
||||||||
Property,
plant and equipment – net (Note 14)
|
14,433
|
14,142
|
64,097
|
63,746
|
||||||||
Investment
in GECS
|
53,279
|
57,676
|
–
|
–
|
||||||||
Goodwill
(Note 15)
|
56,394
|
55,689
|
25,365
|
25,427
|
||||||||
Other
intangible assets – net (Note 15)
|
11,364
|
11,633
|
3,613
|
4,509
|
||||||||
All
other assets (Note 16)
|
22,435
|
40,608
|
85,721
|
83,392
|
||||||||
Assets
of businesses held for sale (Note 17)
|
–
|
–
|
10,556
|
–
|
||||||||
Assets
of discontinued operations (Note 2)
|
64
|
66
|
1,659
|
8,823
|
||||||||
Total
assets
|
$
|
198,933
|
$
|
214,786
|
$
|
660,902
|
$
|
646,485
|
||||
Liabilities
and equity
|
||||||||||||
Short-term
borrowings (Note 18)
|
$
|
2,375
|
$
|
4,106
|
$
|
193,533
|
$
|
192,420
|
||||
Accounts
payable, principally trade accounts
|
11,699
|
11,120
|
13,882
|
14,714
|
||||||||
Progress
collections and price adjustments accrued
|
13,058
|
10,374
|
–
|
–
|
||||||||
Dividends
payable
|
3,340
|
3,100
|
–
|
–
|
||||||||
Other
GE current liabilities
|
18,284
|
15,816
|
–
|
–
|
||||||||
Long-term
borrowings (Note 18)
|
9,827
|
11,656
|
321,068
|
308,502
|
||||||||
Investment
contracts, insurance liabilities and insurance
|
||||||||||||
annuity
benefits (Note 19)
|
–
|
–
|
34,369
|
34,359
|
||||||||
All
other liabilities (Note 20)
|
32,767
|
32,859
|
32,090
|
26,522
|
||||||||
Deferred
income taxes (Note 21)
|
(3,949
|
)
|
3,391
|
8,533
|
9,099
|
|||||||
Liabilities
of businesses held for sale (Note 17)
|
–
|
–
|
636
|
–
|
||||||||
Liabilities
of discontinued operations (Note 2)
|
189
|
302
|
1,243
|
1,692
|
||||||||
Total
liabilities
|
87,590
|
92,724
|
605,354
|
587,308
|
||||||||
Minority
interest in equity of consolidated affiliates (Note 22)
|
6,678
|
6,503
|
2,269
|
1,501
|
||||||||
Preferred
stock (30,000 and 0 shares outstanding at
|
||||||||||||
year-end
2008 and 2007, respectively)
|
–
|
–
|
–
|
–
|
||||||||
Common
stock (10,536,897,000 and 9,987,599,000 shares
|
||||||||||||
outstanding
at year-end 2008 and 2007, respectively)
|
702
|
669
|
1
|
1
|
||||||||
Accumulated
gains (losses) – net
|
||||||||||||
Investment
securities
|
(3,094
|
)
|
124
|
(3,097
|
)
|
110
|
||||||
Currency
translation adjustments
|
(299
|
)
|
10,708
|
(1,258
|
)
|
7,472
|
||||||
Cash
flow hedges
|
(3,332
|
)
|
(668
|
)
|
(3,134
|
)
|
(727
|
)
|
||||
Benefit
plans
|
(15,128
|
)
|
(1,840
|
)
|
(367
|
)
|
(105
|
)
|
||||
Other
capital
|
40,390
|
26,100
|
18,079
|
12,574
|
||||||||
Retained
earnings
|
122,123
|
117,362
|
43,055
|
38,351
|
||||||||
Less
common stock held in treasury
|
(36,697
|
)
|
(36,896
|
)
|
–
|
–
|
||||||
Total
shareowners’ equity (Notes 23 and 24)
|
104,665
|
115,559
|
53,279
|
57,676
|
||||||||
Total
liabilities and equity
|
$
|
198,933
|
$
|
214,786
|
$
|
660,902
|
$
|
646,485
|
||||
In
the consolidating data on this page, “GE” means the basis of consolidation
as described in Note 1 to the consolidated financial statements; “GECS”
means General Electric Capital Services, Inc. and all of its affiliates
and associated companies. Separate information is shown for “GE” and
“Financial Services (GECS).” Transactions between GE and GECS have been
eliminated from the “General Electric Company and consolidated affiliates”
columns on the prior page.
|
General
Electric Company
and
consolidated affiliates
|
|||||||||
For
the years ended December 31 (In millions)
|
2008
|
2007
|
2006
|
||||||
Cash
flows – operating activities
|
|||||||||
Net
earnings
|
$
|
17,410
|
$
|
22,208
|
$
|
20,742
|
|||
Loss
(earnings) from discontinued operations
|
679
|
249
|
(1,398
|
)
|
|||||
Adjustments
to reconcile net earnings to cash provided
|
|||||||||
from
operating activities
|
|||||||||
Depreciation
and amortization of property, plant and equipment
|
11,492
|
10,275
|
8,457
|
||||||
Earnings
from continuing operations retained by GECS
|
–
|
–
|
–
|
||||||
Deferred
income taxes
|
(1,284
|
)
|
657
|
1,639
|
|||||
Decrease
(increase) in GE current receivables
|
(24
|
)
|
(868
|
)
|
(2,194
|
)
|
|||
Decrease
(increase) in inventories
|
(719
|
)
|
(1,562
|
)
|
(1,514
|
)
|
|||
Increase
(decrease) in accounts payable
|
(1,078
|
)
|
(997
|
)
|
(276
|
)
|
|||
Increase
in GE progress collections
|
2,827
|
4,622
|
642
|
||||||
Provision
for losses on GECS financing receivables
|
7,518
|
4,431
|
3,062
|
||||||
All
other operating activities
|
11,020
|
927
|
3,352
|
||||||
Cash
from operating activities – continuing operations
|
47,841
|
39,942
|
32,512
|
||||||
Cash
from (used for) operating activities – discontinued
operations
|
760
|
3,380
|
(1,057
|
)
|
|||||
Cash
from operating activities
|
48,601
|
43,322
|
31,455
|
||||||
Cash
flows – investing activities
|
|||||||||
Additions
to property, plant and equipment
|
(16,010
|
)
|
(17,803
|
)
|
(15,788
|
)
|
|||
Dispositions
of property, plant and equipment
|
10,975
|
8,457
|
6,795
|
||||||
Net
increase in GECS financing receivables
|
(17,484
|
)
|
(44,237
|
)
|
(37,146
|
)
|
|||
Proceeds
from sales of discontinued operations
|
5,423
|
11,574
|
11,009
|
||||||
Proceeds
from principal business dispositions
|
4,986
|
2,746
|
1,883
|
||||||
Payments
for principal businesses purchased
|
(28,110
|
)
|
(17,215
|
)
|
(11,573
|
)
|
|||
All
other investing activities
|
195
|
(9,910
|
)
|
(6,053
|
)
|
||||
Cash
used for investing activities – continuing operations
|
(40,025
|
)
|
(66,388
|
)
|
(50,873
|
)
|
|||
Cash
from (used for) investing activities – discontinued
operations
|
(876
|
)
|
(3,116
|
)
|
(1,774
|
)
|
|||
Cash
used for investing activities
|
(40,901
|
)
|
(69,504
|
)
|
(52,647
|
)
|
|||
Cash
flows – financing activities
|
|||||||||
Net
increase (decrease) in borrowings (maturities of 90 days or
less)
|
(34,221
|
)
|
2,063
|
4,969
|
|||||
Newly
issued debt (maturities longer than 90 days)
|
122,959
|
100,869
|
88,364
|
||||||
Repayments
and other reductions (maturities longer than 90 days)
|
(69,050
|
)
|
(49,826
|
)
|
(49,346
|
)
|
|||
Proceeds
from issuance of preferred stock and warrants
|
2,965
|
–
|
–
|
||||||
Proceeds
from issuance of common stock
|
12,006
|
–
|
–
|
||||||
Net
purchases of GE shares for treasury
|
(1,249
|
)
|
(12,319
|
)
|
(8,554
|
)
|
|||
Dividends
paid to shareowners
|
(12,408
|
)
|
(11,492
|
)
|
(10,420
|
)
|
|||
All
other financing activities
|
3,638
|
(1,204
|
)
|
(1,174
|
)
|
||||
Cash
from (used for) financing activities – continuing
operations
|
24,640
|
28,091
|
23,839
|
||||||
Cash
from (used for) financing activities – discontinued
operations
|
(4
|
)
|
(154
|
)
|
(172
|
)
|
|||
Cash
from (used for) financing activities
|
24,636
|
27,937
|
23,667
|
||||||
Increase
(decrease) in cash and equivalents during year
|
32,336
|
1,755
|
2,475
|
||||||
Cash
and equivalents at beginning of year
|
16,031
|
14,276
|
11,801
|
||||||
Cash
and equivalents at end of year
|
48,367
|
16,031
|
14,276
|
||||||
Less
cash and equivalents of discontinued operations at end of
year
|
180
|
300
|
190
|
||||||
Cash
and equivalents of continuing operations at end of year
|
$
|
48,187
|
$
|
15,731
|
$
|
14,086
|
|||
Supplemental
disclosure of cash flows information
|
|||||||||
Cash
paid during the year for interest
|
$
|
(25,853
|
)
|
$
|
(23,340
|
)
|
$
|
(18,438
|
)
|
Cash
recovered (paid) during the year for income taxes
|
(3,237
|
)
|
(2,912
|
)
|
(2,869
|
)
|
|||
GE
|
GECS
|
|||||||||||||||||
For
the years ended December 31 (In millions)
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
||||||||||||
|
|
|
|
|
||||||||||||||
Cash
flows – operating activities
|
||||||||||||||||||
Net
earnings
|
$
|
17,410
|
$
|
22,208
|
$
|
20,742
|
$
|
7,055
|
$
|
10,301
|
$
|
10,658
|
||||||
Loss
(earnings) from discontinued operations
|
679
|
249
|
(1,398
|
)
|
719
|
2,116
|
(439
|
)
|
||||||||||
Adjustments
to reconcile net earnings to cash
|
||||||||||||||||||
provided
from operating activities
|
||||||||||||||||||
Depreciation
and amortization of property,
|
||||||||||||||||||
plant
and equipment
|
2,162
|
2,149
|
1,953
|
9,330
|
8,126
|
6,504
|
||||||||||||
Earnings
from continuing operations retained by GECS
|
(5,423
|
)
|
(5,126
|
)
|
(372
|
)
|
–
|
–
|
–
|
|||||||||
Deferred
income taxes
|
(417
|
)
|
564
|
703
|
(867
|
)
|
93
|
936
|
||||||||||
Decrease
(increase) in GE current receivables
|
(168
|
)
|
14
|
760
|
–
|
–
|
–
|
|||||||||||
Decrease
(increase) in inventories
|
(524
|
)
|
(1,496
|
)
|
(1,458
|
)
|
(14
|
)
|
2
|
(23
|
)
|
|||||||
Increase
(decrease) in accounts payable
|
233
|
(1,073
|
)
|
289
|
(1,045
|
)
|
485
|
(154
|
)
|
|||||||||
Increase
in GE progress collections
|
2,896
|
4,620
|
927
|
–
|
–
|
–
|
||||||||||||
Provision
for losses on GECS financing receivables
|
–
|
–
|
–
|
7,518
|
4,431
|
3,062
|
||||||||||||
All
other operating activities
|
2,238
|
1,192
|
1,626
|
8,508
|
(539
|
)
|
1,035
|
|||||||||||
Cash
from operating activities – continuing operations
|
19,086
|
23,301
|
23,772
|
31,204
|
25,015
|
21,579
|
||||||||||||
Cash
from (used for) operating activities – discontinued
operations
|
(5
|
)
|
(857
|
)
|
855
|
765
|
4,039
|
(2,041
|
)
|
|||||||||
Cash
from operating activities
|
19,081
|
22,444
|
24,627
|
31,969
|
29,054
|
19,538
|
||||||||||||
Cash
flows – investing activities
|
||||||||||||||||||
Additions
to property, plant and equipment
|
(2,996
|
)
|
(2,968
|
)
|
(2,913
|
)
|
(13,321
|
)
|
(15,217
|
)
|
(13,168
|
)
|
||||||
Dispositions
of property, plant and equipment
|
–
|
–
|
–
|
10,975
|
8,457
|
6,795
|
||||||||||||
Net
increase in GECS financing receivables
|
–
|
–
|
–
|
(17,375
|
)
|
(44,164
|
)
|
(40,270
|
)
|
|||||||||
Proceeds
from sales of discontinued operations
|
203
|
10,826
|
1,987
|
5,220
|
117
|
9,022
|
||||||||||||
Proceeds
from principal business dispositions
|
58
|
1,047
|
1,497
|
4,928
|
1,699
|
386
|
||||||||||||
Payments
for principal businesses purchased
|
(3,149
|
)
|
(9,645
|
)
|
(4,274
|
)
|
(24,961
|
)
|
(7,570
|
)
|
(7,299
|
)
|
||||||
All
other investing activities
|
(5,176
|
)
|
(1,697
|
)
|
100
|
5,979
|
(8,730
|
)
|
(5,995
|
)
|
||||||||
Cash
used for investing activities – continuing operations
|
(11,060
|
)
|
(2,437
|
)
|
(3,603
|
)
|
(28,555
|
)
|
(65,408
|
)
|
(50,529
|
)
|
||||||
Cash
from (used for) investing activities – discontinued
operations
|
5
|
1,003
|
(914
|
)
|
(881
|
)
|
(3,921
|
)
|
(731
|
)
|
||||||||
Cash
used for investing activities
|
(11,055
|
)
|
(1,434
|
)
|
(4,517
|
)
|
(29,436
|
)
|
(69,329
|
)
|
(51,260
|
)
|
||||||
Cash
flows – financing activities
|
||||||||||||||||||
Net
increase (decrease) in borrowings (maturities of
|
||||||||||||||||||
90
days or less)
|
(2,152
|
)
|
(3,284
|
)
|
1,233
|
(31,282
|
)
|
3,397
|
6,470
|
|||||||||
Newly
issued debt (maturities longer than 90 days)
|
136
|
8,751
|
130
|
122,507
|
92,019
|
88,280
|
||||||||||||
Repayments
and other reductions (maturities longer
|
||||||||||||||||||
than
90 days)
|
(1,936
|
)
|
(298
|
)
|
(93
|
)
|
(67,114
|
)
|
(49,528
|
)
|
(49,253
|
)
|
||||||
Proceeds
from issuance of preferred stock and warrants
|
2,965
|
–
|
–
|
–
|
–
|
–
|
||||||||||||
Proceeds
from issuance of common stock
|
12,006
|
–
|
–
|
–
|
–
|
–
|
||||||||||||
Net
purchases of GE shares for treasury
|
(1,249
|
)
|
(12,319
|
)
|
(8,554
|
)
|
–
|
–
|
–
|
|||||||||
Dividends
paid to shareowners
|
(12,408
|
)
|
(11,492
|
)
|
(10,420
|
)
|
(2,351
|
)
|
(7,291
|
)
|
(9,847
|
)
|
||||||
All
other financing activities
|
–
|
–
|
–
|
3,638
|
(1,204
|
)
|
(1,174
|
)
|
||||||||||
Cash
from (used for) financing activities – continuing
operations
|
(2,638
|
)
|
(18,642
|
)
|
(17,704
|
)
|
25,398
|
37,393
|
34,476
|
|||||||||
Cash
from (used for) financing activities – discontinued
operations
|
–
|
(146
|
)
|
59
|
(4
|
)
|
(8
|
)
|
(231
|
)
|
||||||||
Cash
from (used for) financing activities
|
(2,638
|
)
|
(18,788
|
)
|
(17,645
|
)
|
25,394
|
37,385
|
34,245
|
|||||||||
Increase
(decrease) in cash and
|
||||||||||||||||||
equivalents
during year
|
5,388
|
2,222
|
2,465
|
27,927
|
(2,890
|
)
|
2,523
|
|||||||||||
Cash
and equivalents at beginning of year
|
6,702
|
4,480
|
2,015
|
9,739
|
12,629
|
10,106
|
||||||||||||
Cash
and equivalents at end of year
|
12,090
|
6,702
|
4,480
|
37,666
|
9,739
|
12,629
|
||||||||||||
Less
cash and equivalents of discontinued operations
|
||||||||||||||||||
at
end of year
|
–
|
–
|
–
|
180
|
300
|
190
|
||||||||||||
Cash
and equivalents of continuing operations at end of year
|
$
|
12,090
|
$
|
6,702
|
$
|
4,480
|
$
|
37,486
|
$
|
9,439
|
$
|
12,439
|
||||||
Supplemental
disclosure of cash
|
||||||||||||||||||
flows
information
|
||||||||||||||||||
Cash
paid during the year for interest
|
$
|
(1,190
|
)
|
$
|
(1,466
|
)
|
$
|
(1,343
|
)
|
$
|
(24,663
|
)
|
$
|
(21,874
|
)
|
$
|
(17,095
|
)
|
Cash
recovered (paid) during the year for income taxes
|
(2,627
|
)
|
(4,036
|
)
|
(2,203
|
)
|
(610
|
)
|
1,124
|
(666
|
)
|
|||||||
·
|
GE
– This represents the
adding together of all affiliates other than General Electric Capital
Services, Inc. (GECS), whose operations are presented on a one-line
basis.
|
·
|
GECS
– This affiliate
owns all of the common stock of General Electric Capital Corporation (GE
Capital). GE Capital and its respective affiliates are consolidated in the
accompanying GECS columns and constitute the majority of its
business.
|
·
|
Consolidated
– This
represents the adding together of GE and GECS, giving effect to the
elimination of transactions between GE and
GECS.
|
·
|
Operating Segments
–
These comprise our five businesses, focused on the broad markets they
serve: Energy Infrastructure, Technology Infrastructure, NBC Universal,
Capital Finance and Consumer & Industrial. Prior period information
has been reclassified to be consistent with the current
organization.
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Operations
|
|||||||||
Total
revenues
|
$
|
–
|
$
|
4,286
|
$
|
8,795
|
|||
Earnings
from discontinued operations before income taxes
|
$
|
–
|
$
|
233
|
$
|
577
|
|||
Income
tax benefit (expense)
|
19
|
56
|
(59
|
)
|
|||||
Earnings
from discontinued operations before disposal, net of taxes
|
$
|
19
|
$
|
289
|
$
|
518
|
|||
Disposal
|
|||||||||
Gain
on disposal before income taxes
|
$
|
21
|
$
|
2,362
|
$
|
357
|
|||
Income
tax benefit (expense)
|
–
|
(784
|
)
|
84
|
|||||
Gain
on disposal, net of taxes
|
$
|
21
|
$
|
1,578
|
$
|
441
|
|||
Earnings from
discontinued
operations, net of taxes
(a)
|
$
|
40
|
$
|
1,867
|
$
|
959
|
|||
(a)
|
The
sum of GE industrial earnings from discontinued operations, net of taxes,
and GECS earnings (loss) from discontinued operations, net of taxes, below
are reported as GE industrial earnings (loss) from discontinued
operations, net of taxes, on the Statement of
Earnings.
|
December
31 (In millions)
|
2008
|
2007
|
||||
Assets
|
||||||
Property,
plant and equipment – net
|
$
|
–
|
$
|
9
|
||
Current
receivables
|
64
|
57
|
||||
Assets
of discontinued operations
|
$
|
64
|
$
|
66
|
||
Liabilities
|
||||||
Other
GE current liabilities
|
$
|
36
|
$
|
146
|
||
Other
|
153
|
156
|
||||
Liabilities
of discontinued operations
|
$
|
189
|
$
|
302
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Operations
|
|||||||||
Total
revenues
|
$
|
692
|
$
|
(117
|
)
|
$
|
7,167
|
||
Earnings
(loss) from discontinued operations before income taxes
|
$
|
(571
|
)
|
$
|
(2,225
|
)
|
$
|
641
|
|
Income
tax benefit (expense)
|
212
|
981
|
(21
|
)
|
|||||
Earnings
(loss) from discontinued operations before disposal,
|
|||||||||
net
of taxes
|
$
|
(359
|
)
|
$
|
(1,244
|
)
|
$
|
620
|
|
Disposal
|
|||||||||
Loss
on disposal before income taxes
|
$
|
(1,479
|
)
|
$
|
(1,510
|
)
|
$
|
(75
|
)
|
Income
tax benefit (expense)
|
1,119
|
638
|
(106
|
)
|
|||||
Loss
on disposal, net of taxes
|
$
|
(360
|
)
|
$
|
(872
|
)
|
$
|
(181
|
)
|
Earnings
(loss) from discontinued operations, net of taxes
|
$
|
(719
|
)
|
$
|
(2,116
|
)
|
$
|
439
|
December
31 (In millions)
|
2008
|
2007
|
||||
Assets
|
||||||
Cash
and equivalents
|
$
|
180
|
$
|
300
|
||
Financing
receivables – net
|
–
|
6,675
|
||||
All
other assets
|
19
|
129
|
||||
Other
|
1,460
|
1,719
|
||||
Assets
of discontinued operations
|
$
|
1,659
|
$
|
8,823
|
||
Liabilities
|
||||||
Liabilities
of discontinued operations
|
$
|
1,243
|
$
|
1,692
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
GE
|
|||||||||
Sales
of business interests
(a)
|
$
|
891
|
$
|
1,541
|
$
|
878
|
|||
Interest
income from GECS
|
371
|
329
|
145
|
||||||
Associated
companies
|
332
|
671
|
437
|
||||||
Licensing
and royalty income
|
291
|
255
|
220
|
||||||
Marketable
securities and bank deposits
|
196
|
282
|
272
|
||||||
Other
items
|
(116
|
)
|
293
|
355
|
|||||
1,965
|
3,371
|
2,307
|
|||||||
Eliminations
|
(379
|
)
|
(352
|
)
|
(153
|
)
|
|||
Total
|
$
|
1,586
|
$
|
3,019
|
$
|
2,154
|
|||
(a)
|
Included
gain on sale of a business interest to Hitachi of $900 million in
2007.
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Interest
on loans
|
$
|
27,109
|
$
|
23,599
|
$
|
20,358
|
|||
Equipment
leased to others
|
15,568
|
15,260
|
12,940
|
||||||
Fees
|
6,126
|
6,533
|
5,358
|
||||||
Financing
leases
|
4,374
|
4,699
|
4,298
|
||||||
Real
estate investments
|
3,505
|
4,669
|
3,138
|
||||||
Premiums
earned by insurance activities
|
2,255
|
2,232
|
2,084
|
||||||
Associated
companies
|
2,217
|
2,172
|
2,079
|
||||||
Investment
income
(a)
|
2,191
|
4,724
|
3,115
|
||||||
Net
securitization gains
|
1,133
|
1,804
|
1,187
|
||||||
Other
items
|
5,036
|
5,526
|
4,410
|
||||||
Total
|
$
|
69,514
|
$
|
71,218
|
$
|
58,967
|
|||
(a)
|
Included gain
on sale of Swiss Re common stock of $566 million in 2007 and
other-than-temporary impairments on investment securities of $1,420
million, $127 million and $139 million in 2008, 2007 and 2006,
respectively.
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
GE
|
$
|
912
|
$
|
929
|
$
|
854
|
|||
GECS
|
992
|
955
|
863
|
(In
millions)
|
2009
|
2010
|
2011
|
2012
|
2013
|
||||||||||
GE
|
$
|
550
|
$
|
548
|
$
|
496
|
$
|
429
|
$
|
390
|
|||||
GECS
|
774
|
621
|
508
|
435
|
303
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Expected
return on plan assets
|
$
|
(131
|
)
|
$
|
(125
|
)
|
$
|
(127
|
)
|
Service
cost for benefits earned
|
326
|
286
|
229
|
||||||
Interest
cost on benefit obligation
|
750
|
577
|
455
|
||||||
Prior
service cost amortization
|
673
|
603
|
363
|
||||||
Net
actuarial loss (gain) amortization
|
(49
|
)
|
(17
|
)
|
64
|
||||
Retiree
benefit plans cost
|
$
|
1,569
|
$
|
1,324
|
$
|
984
|
December
31
|
2008
|
2007
|
2006
|
2005
|
||||||||
Discount
rate
|
6.15
|
%
|
6.31
|
%
(a)
|
5.75
|
%
|
5.25
|
%
|
||||
Compensation
increases
|
4.20
|
5.00
|
5.00
|
5.00
|
||||||||
Expected
return on assets
|
8.50
|
8.50
|
8.50
|
8.50
|
||||||||
Initial
healthcare trend rate
(c)
|
7.00
|
(b)
|
9.10
|
9.20
|
10.00
|
|||||||
(a)
|
Weighted
average discount rate of 6.34% was used for determination of costs in
2008.
|
(b)
|
Includes
benefits from new healthcare supplier contracts.
|
(c)
|
For
2008, ultimately declining to 6% for 2025 and
thereafter.
|
(In
millions)
|
2008
|
2007
|
||||
Balance
at January 1
|
$
|
12,983
|
$
|
8,262
|
||
Service
cost for benefits earned
|
326
|
286
|
||||
Interest
cost on benefit obligation
|
750
|
577
|
||||
Participant
contributions
|
51
|
47
|
||||
Plan
amendments
(a)
|
–
|
4,257
|
||||
Actuarial
loss (gain)
(b)
|
(1,351
|
)
|
320
|
|||
Benefits
paid
(c)
|
(811
|
)
|
(796
|
)
|
||
Other
|
1
|
30
|
||||
Balance
at December 31
(d)
|
$
|
11,949
|
$
|
12,983
|
||
(a)
|
For
2007, related to labor agreements negotiated with U.S.
unions.
|
(b)
|
For
2008, primarily related to benefits from new healthcare supplier
contracts.
|
(c)
|
Net
of Medicare Part D subsidy of $83 million and $73 million in 2008 and
2007, respectively.
|
(d)
|
The
APBO for the retiree health plans was $9,749 million and $10,847 million
at year-end 2008 and 2007,
respectively.
|
(In
millions)
|
1%
increase
|
1%
decrease
|
||||
APBO
at December 31, 2008
|
$
|
990
|
$
|
(848
|
)
|
|
Service
and interest cost in 2008
|
95
|
(80
|
)
|
(In
millions)
|
2008
|
2007
|
||||
Balance
at January 1
|
$
|
1,804
|
$
|
1,710
|
||
Actual
gain (loss) on plan assets
|
(486
|
)
|
221
|
|||
Employer
contributions
|
617
|
622
|
||||
Participant
contributions
|
51
|
47
|
||||
Benefits
paid
(a)
|
(811
|
)
|
(796
|
)
|
||
Balance
at December 31
|
$
|
1,175
|
$
|
1,804
|
||
(a)
|
Net
of Medicare Part D subsidy.
|
2008
|
2007
|
||||||||
December
31
|
Target
allocation
|
Actual
allocation
|
Actual
allocation
|
||||||
U.S.
equity securities
|
19-39
|
%
|
25
|
%
|
33
|
%
|
|||
Non-U.S.
equity securities
|
18-38
|
15
|
20
|
||||||
Debt
securities (including cash equivalents)
|
11-41
|
39
|
31
|
||||||
Real
estate
|
2-12
|
7
|
6
|
||||||
Private
equities
|
3-13
|
8
|
5
|
||||||
Other
|
0-10
|
6
|
5
|
December
31 (In millions)
|
2008
|
2007
|
||||
Funded
status
(a)
|
$
|
(10,774
|
)
|
$
|
(11,179
|
)
|
Liability
recorded in the Statement of Financial Position
|
||||||
Retiree
health plans
|
||||||
Due
within one year
|
$
|
(644
|
)
|
$
|
(675
|
)
|
Due
after one year
|
(9,105
|
)
|
(10,172
|
)
|
||
Retiree
life plans
|
(1,025
|
)
|
(332
|
)
|
||
Net
liability recognized
|
$
|
(10,774
|
)
|
$
|
(11,179
|
)
|
Amounts
recorded in shareowners’ equity (unamortized)
|
||||||
Prior
service cost
|
$
|
5,027
|
$
|
5,700
|
||
Net
actuarial loss (gain)
|
(475
|
)
|
210
|
|||
Total
|
$
|
4,552
|
$
|
5,910
|
||
(a)
|
Fair
value of assets less APBO, as shown in the preceding
tables.
|
(In
millions)
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014-
2018
|
||||||||||||
Gross
|
$
|
910
|
$
|
930
|
$
|
965
|
$
|
980
|
$
|
1,000
|
$
|
5,200
|
||||||
Expected
Medicare
|
||||||||||||||||||
Part
D subsidy
|
75
|
80
|
85
|
90
|
95
|
550
|
||||||||||||
Net
|
$
|
835
|
$
|
850
|
$
|
880
|
$
|
890
|
$
|
905
|
$
|
4,650
|
December
31, 2008
|
Total
|
Principal
pension
plans
|
Other
pension
plans
|
||||||
Active
employees
|
188,000
|
140,000
|
48,000
|
||||||
Vested
former employees
|
231,000
|
190,000
|
41,000
|
||||||
Retirees
and beneficiaries
|
246,000
|
220,000
|
26,000
|
||||||
Total
|
665,000
|
550,000
|
115,000
|
Total
|
Principal
pension plans
|
Other
pension plans
|
|||||||||||||||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Expected
return on plan assets
|
$
|
(4,850
|
)
|
$
|
(4,459
|
)
|
$
|
(4,211
|
)
|
$
|
(4,298
|
)
|
$
|
(3,950
|
)
|
$
|
(3,811
|
)
|
$
|
(552
|
)
|
$
|
(509
|
)
|
$
|
(400
|
)
|
Service
cost for benefits earned
|
1,663
|
1,727
|
1,719
|
1,331
|
1,355
|
1,402
|
332
|
372
|
317
|
||||||||||||||||||
Interest
cost on benefit obligation
|
3,152
|
2,885
|
2,685
|
2,653
|
2,416
|
2,304
|
499
|
469
|
381
|
||||||||||||||||||
Prior
service cost amortization
|
332
|
247
|
258
|
321
|
241
|
253
|
11
|
6
|
5
|
||||||||||||||||||
Net
actuarial loss amortization
|
316
|
856
|
893
|
237
|
693
|
729
|
79
|
163
|
164
|
||||||||||||||||||
Pension
plans cost
|
$
|
613
|
$
|
1,256
|
$
|
1,344
|
$
|
244
|
$
|
755
|
$
|
877
|
$
|
369
|
$
|
501
|
$
|
467
|
Principal
pension plans
|
Other
pension plans (weighted average)
|
|||||||||||||||||||||||
December
31
|
2008
|
2007
|
2006
|
2005
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Discount
rate
|
6.11
|
%
|
6.34
|
%
|
5.75
|
%
|
5.50
|
%
|
6.03
|
%
|
5.65
|
%
|
4.97
|
%
|
4.74
|
%
|
||||||||
Compensation
increases
|
4.20
|
5.00
|
5.00
|
5.00
|
4.47
|
4.50
|
4.26
|
4.20
|
||||||||||||||||
Expected
return on assets
|
8.50
|
8.50
|
8.50
|
8.50
|
7.41
|
7.51
|
7.44
|
7.47
|
Principal
pension
plans
|
Other
pension
plans
|
|||||||||||
(In
millions)
|
2008
|
2007
|
2008
|
2007
|
||||||||
Balance
at January 1
|
$
|
42,947
|
$
|
43,293
|
$
|
9,014
|
$
|
9,034
|
||||
Service
cost for benefits earned
|
1,331
|
1,355
|
332
|
372
|
||||||||
Interest
cost on benefit obligations
|
2,653
|
2,416
|
499
|
469
|
||||||||
Participant
contributions
|
169
|
173
|
40
|
43
|
||||||||
Plan
amendments
|
–
|
1,470
|
16
|
26
|
||||||||
Actuarial
loss (gain)
(a)
|
791
|
(3,205
|
)
|
(923
|
)
|
(665
|
)
|
|||||
Benefits
paid
|
(2,723
|
)
|
(2,555
|
)
|
(383
|
)
|
(370
|
)
|
||||
Acquisitions
(dispositions) – net
|
–
|
–
|
545
|
(311
|
)
|
|||||||
Exchange
rate adjustments
|
–
|
–
|
(1,392
|
)
|
416
|
|||||||
Balance
at December 31
(b)
|
$
|
45,168
|
$
|
42,947
|
$
|
7,748
|
$
|
9,014
|
||||
(a)
|
Principally
associated with discount rate changes.
|
(b)
|
The
PBO for the GE Supplementary Pension Plan, which is an unfunded plan, was
$3,505 million and $3,437 million at year-end 2008 and 2007,
respectively.
|
December
31 (In millions)
|
2008
|
2007
|
||||
GE
Pension Plan
|
$
|
40,313
|
$
|
38,155
|
||
GE
Supplementary Pension Plan
|
2,582
|
2,292
|
||||
Other
pension plans
|
7,075
|
8,175
|
December
31 (In millions)
|
2008
|
2007
|
||||
Funded
plans with assets less than ABO
|
||||||
Plan
assets
|
$
|
4,914
|
$
|
3,639
|
||
Accumulated
benefit obligations
|
5,888
|
3,974
|
||||
Projected
benefit obligations
|
6,468
|
4,595
|
||||
Unfunded
plans
(a)
|
||||||
Accumulated
benefit obligations
|
3,352
|
3,111
|
||||
Projected
benefit obligations
|
4,303
|
4,283
|
||||
(a)
|
Primarily
related to the GE Supplementary Pension
Plan.
|
Principal
pension
plans
|
Other
pension
plans
|
|||||||||||
(In
millions)
|
2008
|
2007
|
2008
|
2007
|
||||||||
Balance
at January 1
|
$
|
59,700
|
$
|
54,758
|
$
|
7,411
|
$
|
6,435
|
||||
Actual
gain (loss) on plan assets
|
(16,569
|
)
|
7,188
|
(1,743
|
)
|
614
|
||||||
Employer
contributions
|
153
|
136
|
627
|
730
|
||||||||
Participant
contributions
|
169
|
173
|
40
|
43
|
||||||||
Benefits
paid
|
(2,723
|
)
|
(2,555
|
)
|
(383
|
)
|
(370
|
)
|
||||
Acquisitions
(dispositions) – net
|
–
|
–
|
565
|
(372
|
)
|
|||||||
Exchange
rate adjustments
|
–
|
–
|
(1,143
|
)
|
331
|
|||||||
Balance
at December 31
|
$
|
40,730
|
$
|
59,700
|
$
|
5,374
|
$
|
7,411
|
Principal
pension plans
|
|||||||||
2008
|
2007
|
||||||||
December
31
|
Target
allocation
|
Actual
allocation
|
Actual
allocation
|
||||||
U.S.
equity securities
|
17-37
|
%
|
25
|
%
|
32
|
%
|
|||
Non-U.S.
equity securities
|
17-37
|
14
|
20
|
||||||
Debt
securities (including cash equivalents)
|
10-40
|
31
|
24
|
||||||
Real
estate
|
4-14
|
12
|
9
|
||||||
Private
equities
|
5-15
|
12
|
9
|
||||||
Other
|
1-14
|
6
|
6
|
·
|
Short-term
securities must generally be rated A1/P1 or better, except for 15% of such
securities that may be rated A2/P2.
|
·
|
Real
estate investments may not exceed 25% of total
assets.
|
·
|
Investments
in restricted securities that are not freely tradable may not exceed 30%
of total assets (actual was 16% of trust assets at December 31,
2008).
|
Other
pension plans
(weighted
average)
|
|||||||||
2008
|
2007
|
||||||||
December
31
|
Target
allocation
|
Actual
allocation
|
Actual
allocation
|
||||||
Equity
securities
|
60
|
%
|
57
|
%
|
67
|
%
|
|||
Debt
securities
|
30
|
32
|
25
|
||||||
Real
estate
|
4
|
4
|
4
|
||||||
Other
|
6
|
7
|
4
|
Principal
pension
plans
|
Other
pension
plans
|
|||||||||||
December
31 (In millions)
|
2008
|
2007
|
2008
|
2007
|
||||||||
Funded
status
(a)
|
$
|
(4,438
|
)
|
$
|
16,753
|
$
|
(2,374
|
)
|
$
|
(1,603
|
)
|
|
Pension
asset (liability) recorded in the
|
||||||||||||
Statement
of Financial Position
|
||||||||||||
Pension
asset
|
$
|
–
|
$
|
20,190
|
$
|
9
|
$
|
258
|
||||
Pension
liabilities
|
||||||||||||
Due
within one year
(b)
|
(117
|
)
|
(111
|
)
|
(51
|
)
|
(54
|
)
|
||||
Due
after one year
(b)
|
(4,321
|
)
|
(3,326
|
)
|
(2,332
|
)
|
(1,807
|
)
|
||||
Net
amount recognized
|
$
|
(4,438
|
)
|
$
|
16,753
|
$
|
(2,374
|
)
|
$
|
(1,603
|
)
|
|
Amounts
recorded in shareowners’
|
||||||||||||
equity
(unamortized)
|
||||||||||||
Prior
service cost
|
$
|
1,739
|
$
|
2,060
|
$
|
62
|
$
|
65
|
||||
Net
actuarial loss (gain)
|
16,447
|
(4,974
|
)
|
1,753
|
654
|
|||||||
Total
|
$
|
18,186
|
$
|
(2,914
|
)
|
$
|
1,815
|
$
|
719
|
|||
(a)
|
Fair
value of assets less PBO, as shown in the preceding
tables.
|
(b)
|
For
principal pension plans, primarily represents the GE Supplementary Pension
Plan liability.
|
(In
millions)
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014-
2018
|
||||||||||||
Principal
pension
|
||||||||||||||||||
plans
|
$
|
2,725
|
$
|
2,800
|
$
|
2,850
|
$
|
2,925
|
$
|
2,950
|
$
|
16,050
|
||||||
Other
pension
|
||||||||||||||||||
plans
|
345
|
350
|
360
|
370
|
375
|
2,105
|
(In
millions)
|
Total
post-
retirement
benefit
plans
|
Retiree
benefit
plans
|
Principal
pension
plans
|
Other
pension
plans
|
||||||||
Cost
of postretirement benefit plans
|
$
|
2,182
|
$
|
1,569
|
$
|
244
|
$
|
369
|
||||
Changes
in equity other than transactions
|
||||||||||||
with
shareowners
|
||||||||||||
Net
actuarial loss (gain) – current year
|
$
|
22,094
|
$
|
(734
|
)
|
$
|
21,658
|
$
|
1,170
|
|||
Prior
service cost – current year
|
16
|
–
|
–
|
16
|
||||||||
Prior
service cost amortization
|
(1,005
|
)
|
(673
|
)
|
(321
|
)
|
(11
|
)
|
||||
Net
actuarial gain (loss) amortization
|
(267
|
)
|
49
|
(237
|
)
|
(79
|
)
|
|||||
Total
changes in equity other than transactions
|
||||||||||||
with
shareowners
|
20,838
|
(1,358
|
)
|
21,100
|
1,096
|
|||||||
Cost
of postretirement benefit plans and changes in
|
||||||||||||
equity
other than transactions with shareowners
|
$
|
23,020
|
$
|
211
|
$
|
21,344
|
$
|
1,465
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
GE
|
|||||||||
Current
tax expense
|
$
|
3,844
|
$
|
2,230
|
$
|
1,849
|
|||
Deferred
tax expense (benefit) from temporary differences
|
(417
|
)
|
564
|
703
|
|||||
3,427
|
2,794
|
2,552
|
|||||||
GECS
|
|||||||||
Current
tax expense (benefit)
|
(1,508
|
)
|
1,268
|
456
|
|||||
Deferred
tax expense (benefit) from temporary differences
|
(867
|
)
|
93
|
936
|
|||||
(2,375
|
)
|
1,361
|
1,392
|
||||||
Consolidated
|
|||||||||
Current
tax expense
|
2,336
|
3,498
|
2,305
|
||||||
Deferred
tax expense (benefit) from temporary differences
|
(1,284
|
)
|
657
|
1,639
|
|||||
Total
|
$
|
1,052
|
$
|
4,155
|
$
|
3,944
|
December
31 (In millions)
|
2008
|
2007
|
||||
Unrecognized
tax benefits
|
$
|
6,692
|
$
|
6,331
|
||
Portion
that, if recognized, would reduce tax expense and effective tax rate
(a)
|
4,453
|
4,268
|
||||
Accrued
interest on unrecognized tax benefits
|
1,204
|
923
|
||||
Accrued
penalties on unrecognized tax benefits
|
96
|
77
|
||||
Reasonably
possible reduction to the balance of
unrecognized
tax benefits
|
||||||
in
succeeding 12 months
|
0-1,500
|
0-1,500
|
||||
Portion
that, if recognized, would reduce tax expense and effective tax rate
(a)
|
0-1,100
|
0-1,250
|
||||
(a)
|
Some
portion of such reduction might be reported as discontinued
operations.
|
(In
millions)
|
2008
|
2007
|
||||
Balance
at January 1
|
$
|
6,331
|
$
|
6,806
|
||
Additions
for tax positions of the current year
|
553
|
434
|
||||
Additions
for tax positions of prior years
|
516
|
1,439
|
||||
Reductions
for tax positions of prior years
|
(489
|
)
|
(1,939
|
)
|
||
Settlements
with tax authorities
|
(173
|
)
|
(330
|
)
|
||
Expiration
of the statute of limitations
|
(46
|
)
|
(79
|
)
|
||
Balance
at December 31
|
$
|
6,692
|
$
|
6,331
|
Consolidated
|
GE
|
GECS
|
|||||||||||||||||||||||||
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
|||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||
U.S.
federal statutory income tax rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
|||||||||
Increase
(reduction) in rate resulting from
|
|||||||||||||||||||||||||||
Inclusion
of after-tax earnings of GECS
|
|||||||||||||||||||||||||||
in
before-tax earnings of GE
|
–
|
–
|
–
|
(12.6
|
)
|
(17.2
|
)
|
(16.3
|
)
|
–
|
–
|
–
|
|||||||||||||||
Tax on global activities including
exports
(a)
|
(26.9
|
)
|
(15.6
|
)
|
(16.7
|
)
|
(5.3
|
)
|
(5.0
|
)
|
(6.5
|
)
|
(74.4
|
)
|
(21.0
|
)
|
(21.1
|
)
|
|||||||||
U.S.
business credits
|
(1.5
|
)
|
(1.1
|
)
|
(1.4
|
)
|
(0.4
|
)
|
(0.3
|
)
|
(0.4
|
)
|
(3.8
|
)
|
(1.5
|
)
|
(2.2
|
)
|
|||||||||
SES
transaction
|
–
|
(2.1
|
)
|
–
|
–
|
–
|
–
|
–
|
(4.0
|
)
|
–
|
||||||||||||||||
All
other – net
|
(1.1
|
)
|
(0.6
|
)
|
–
|
(0.8
|
)
|
(1.4
|
)
|
(0.1
|
)
|
(0.8
|
)
|
1.4
|
0.3
|
||||||||||||
(29.5
|
)
|
(19.4
|
)
|
(18.1
|
)
|
(19.1
|
)
|
(23.9
|
)
|
(23.3
|
)
|
(79.0
|
)
|
(25.1
|
)
|
(23.0
|
)
|
||||||||||
Actual
income tax rate
|
5.5
|
%
|
15.6
|
%
|
16.9
|
%
|
15.9
|
%
|
11.1
|
%
|
11.7
|
%
|
(44.0
|
)%
|
9.9
|
%
|
12.0
|
%
|
|||||||||
(a)
|
2008
included (1.8)% and (6.5)% from indefinite reinvestment of prior-year
earnings for consolidated and GECS,
respectively.
|
2008
|
2007
|
2006
|
||||||||||||||||
(In
millions; per-share amounts in dollars)
|
Diluted
|
Basic
|
Diluted
|
Basic
|
Diluted
|
Basic
|
||||||||||||
Consolidated
|
||||||||||||||||||
Earnings
from continuing operations for per-share calculation
(a)
|
$
|
18,091
|
$
|
18,089
|
$
|
22,457
|
$
|
22,457
|
$
|
19,345
|
$
|
19,344
|
||||||
Preferred
stock dividends declared
|
(75
|
)
|
(75
|
)
|
–
|
–
|
–
|
–
|
||||||||||
Earnings
from continuing operations attributable to
|
||||||||||||||||||
common
shareowners for per-share calculation
|
$
|
18,016
|
$
|
18,014
|
$
|
22,457
|
$
|
22,457
|
$
|
19,345
|
$
|
19,344
|
||||||
Earnings
(loss) from discontinued operations for
|
||||||||||||||||||
per-share
calculation
|
(679
|
)
|
(679
|
)
|
(249
|
)
|
(249
|
)
|
1,399
|
1,398
|
||||||||
Net
earnings attributable to common shareowners
|
||||||||||||||||||
for
per-share calculation
|
17,336
|
17,335
|
22,208
|
22,208
|
20,744
|
20,742
|
||||||||||||
Average
equivalent shares
|
||||||||||||||||||
Shares
of GE common stock outstanding
|
10,080
|
10,080
|
10,182
|
10,182
|
10,359
|
10,359
|
||||||||||||
Employee
compensation-related shares, including stock options
|
18
|
–
|
36
|
–
|
35
|
–
|
||||||||||||
Total
average equivalent shares
|
10,098
|
10,080
|
10,218
|
10,182
|
10,394
|
10,359
|
||||||||||||
Per-share
amounts
|
||||||||||||||||||
Earnings
from continuing operations
|
$
|
1.78
|
$
|
1.79
|
$
|
2.20
|
$
|
2.21
|
$
|
1.86
|
$
|
1.87
|
||||||
Earnings
(loss) from discontinued operations
|
(0.07
|
)
|
(0.07
|
)
|
(0.02
|
)
|
(0.02
|
)
|
0.13
|
0.14
|
||||||||
Net
earnings per share
|
1.72
|
1.72
|
2.17
|
2.18
|
2.00
|
2.00
|
||||||||||||
(a)
|
Included
an insignificant amount of dividend equivalents in each of the three years
ended December 31, 2008.
|
2008
|
2007
|
|||||||||||||||||||||||
December
31 (In millions)
|
Amortized
cost
|
Gross
unrealized
gains
|
Gross
unrealized
losses
|
Estimated
fair
value
|
Amortized
cost
|
Gross
unrealized
gains
|
Gross
unrealized
losses
|
Estimated
fair
value
|
||||||||||||||||
GE
|
||||||||||||||||||||||||
Debt
– U.S. corporate
|
$
|
182
|
$
|
–
|
$
|
–
|
$
|
182
|
$
|
301
|
$
|
23
|
$
|
–
|
$
|
324
|
||||||||
Equity
– available-for-sale
|
32
|
–
|
(1
|
)
|
31
|
21
|
3
|
(5
|
)
|
19
|
||||||||||||||
214
|
–
|
(1
|
)
|
213
|
322
|
26
|
(5
|
)
|
343
|
|||||||||||||||
GECS
|
||||||||||||||||||||||||
Debt
|
||||||||||||||||||||||||
U.S.
corporate
|
22,183
|
512
|
(2,477
|
)
|
20,218
|
21,896
|
725
|
(669
|
)
|
21,952
|
||||||||||||||
State
and municipal
|
1,556
|
19
|
(94
|
)
|
1,481
|
1,106
|
28
|
(8
|
)
|
1,126
|
||||||||||||||
Residential
mortgage-
|
||||||||||||||||||||||||
backed
(a)
|
5,326
|
70
|
(1,052
|
)
|
4,344
|
5,677
|
22
|
(225
|
)
|
5,474
|
||||||||||||||
Commercial
mortgage-backed
|
2,910
|
14
|
(788
|
)
|
2,136
|
2,930
|
15
|
(49
|
)
|
2,896
|
||||||||||||||
Asset-backed
|
2,881
|
1
|
(691
|
)
|
2,191
|
2,307
|
3
|
(89
|
)
|
2,221
|
||||||||||||||
Corporate
– non-U.S.
|
1,441
|
14
|
(166
|
)
|
1,289
|
1,489
|
47
|
(11
|
)
|
1,525
|
||||||||||||||
Government
– non-U.S.
|
1,300
|
61
|
(19
|
)
|
1,342
|
1,082
|
70
|
(10
|
)
|
1,142
|
||||||||||||||
U.S.
government and federal
|
||||||||||||||||||||||||
agency
|
739
|
65
|
(100
|
)
|
704
|
832
|
55
|
(37
|
)
|
850
|
||||||||||||||
Retained interests
(b)(c)
|
6,395
|
113
|
(152
|
)
|
6,356
|
5,579
|
178
|
(57
|
)
|
5,700
|
||||||||||||||
Equity
|
||||||||||||||||||||||||
Available-for-sale
|
921
|
26
|
(160
|
)
|
787
|
1,524
|
265
|
(120
|
)
|
1,669
|
||||||||||||||
Trading
|
388
|
–
|
–
|
388
|
386
|
–
|
–
|
386
|
||||||||||||||||
46,040
|
895
|
(5,699
|
)
|
41,236
|
44,808
|
1,408
|
(1,275
|
)
|
44,941
|
|||||||||||||||
Eliminations
|
(7
|
)
|
–
|
4
|
(3
|
)
|
(7
|
)
|
(1
|
)
|
–
|
(8
|
)
|
|||||||||||
Total
|
$
|
46,247
|
$
|
895
|
$
|
(5,696
|
)
|
$
|
41,446
|
$
|
45,123
|
$
|
1,433
|
$
|
(1,280
|
)
|
$
|
45,276
|
||||||
(a)
|
Substantially
collateralized by U.S. mortgages.
|
(b)
|
Included
$1,752 million and $2,227 million of retained interests at December 31,
2008 and 2007, respectively, accounted for in accordance with SFAS 155,
Accounting for Certain
Hybrid Financial Instruments
. See Note 30.
|
(c)
|
Amortized
cost and estimated fair value included $20 million and $25 million of
trading securities at December 31, 2008 and 2007,
respectively.
|
In
loss position for
|
||||||||||||
Less
than 12 months
|
12
months or more
|
|||||||||||
December
31 (In millions)
|
Estimated
fair
value
|
Gross
unrealized
losses
|
Estimated
fair
value
|
Gross
unrealized
losses
|
||||||||
2008
|
||||||||||||
Debt
|
||||||||||||
U.S.
corporate
|
$
|
6,602
|
$
|
(1,108
|
)
|
$
|
5,629
|
$
|
(1,369
|
)
|
||
State
and municipal
|
570
|
(44
|
)
|
278
|
(50
|
)
|
||||||
Residential
mortgage-backed
|
1,355
|
(107
|
)
|
1,614
|
(945
|
)
|
||||||
Commercial
mortgage-backed
|
774
|
(184
|
)
|
1,218
|
(604
|
)
|
||||||
Asset-backed
|
1,064
|
(419
|
)
|
1,063
|
(272
|
)
|
||||||
Corporate
– non-U.S.
|
454
|
(106
|
)
|
335
|
(60
|
)
|
||||||
Government
– non-U.S.
|
88
|
(4
|
)
|
275
|
(15
|
)
|
||||||
U.S.
government and federal agency
|
–
|
–
|
150
|
(100
|
)
|
|||||||
Retained
interests
|
1,403
|
(71
|
)
|
274
|
(81
|
)
|
||||||
Equity
|
268
|
(153
|
)
|
9
|
(4
|
)
|
||||||
Total
|
$
|
12,578
|
$
|
(2,196
|
)
|
$
|
10,845
|
$
|
(3,500
|
)
|
||
2007
|
||||||||||||
Debt
|
||||||||||||
U.S.
corporate
|
$
|
5,766
|
$
|
(274
|
)
|
$
|
4,341
|
$
|
(395
|
)
|
||
State
and municipal
|
198
|
(3
|
)
|
131
|
(5
|
)
|
||||||
Residential
mortgage-backed
|
3,268
|
(160
|
)
|
1,223
|
(65
|
)
|
||||||
Commercial
mortgage-backed
|
1,483
|
(33
|
)
|
848
|
(16
|
)
|
||||||
Asset-backed
|
1,417
|
(62
|
)
|
478
|
(27
|
)
|
||||||
Corporate
– non-U.S.
|
505
|
(8
|
)
|
124
|
(3
|
)
|
||||||
Government
– non-U.S.
|
29
|
(1
|
)
|
311
|
(9
|
)
|
||||||
U.S.
government and federal agency
|
255
|
(37
|
)
|
–
|
–
|
|||||||
Retained
interests
|
548
|
(50
|
)
|
10
|
(7
|
)
|
||||||
Equity
|
443
|
(105
|
)
|
18
|
(20
|
)
|
||||||
Total
|
$
|
13,912
|
$
|
(733
|
)
|
$
|
7,484
|
$
|
(547
|
)
|
(In
millions)
|
Amortized
cost
|
Estimated
fair
value
|
||||
Due
in
|
||||||
2009
|
$
|
1,820
|
$
|
1,777
|
||
2010–2013
|
4,999
|
4,634
|
||||
2014–2018
|
3,841
|
3,366
|
||||
2019
and later
|
16,559
|
15,257
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
GE
|
|||||||||
Gains
|
$
|
–
|
$
|
5
|
$
|
125
|
|||
Losses,
including impairments
|
(148
|
)
|
–
|
(1
|
)
|
||||
Net
|
(148
|
)
|
5
|
124
|
|||||
GECS
|
|||||||||
Gains
(a)
|
212
|
1,026
|
313
|
||||||
Losses,
including impairments
|
(1,472
|
)
|
(141
|
)
|
(181
|
)
|
|||
Net
|
(1,260
|
)
|
885
|
132
|
|||||
Total
|
$
|
(1,408
|
)
|
$
|
890
|
$
|
256
|
||
(a)
|
Included
gain on sale of Swiss Re common stock of $566 million in
2007.
|
Consolidated
(a)
|
GE
|
|||||||||||
December
31 (In millions)
|
2008
|
2007
|
2008
|
2007
|
||||||||
Energy
Infrastructure
|
$
|
7,403
|
$
|
7,065
|
$
|
6,409
|
$
|
5,934
|
||||
Technology
Infrastructure
|
9,214
|
9,149
|
5,687
|
5,443
|
||||||||
NBC
Universal
|
3,659
|
3,800
|
2,701
|
2,927
|
||||||||
Consumer
& Industrial
|
1,498
|
2,238
|
513
|
630
|
||||||||
Corporate
items and eliminations
|
296
|
526
|
381
|
642
|
||||||||
22,070
|
22,778
|
15,691
|
15,576
|
|||||||||
Less
allowance for losses
|
(659
|
)
|
(519
|
)
|
(627
|
)
|
(483
|
)
|
||||
Total
|
$
|
21,411
|
$
|
22,259
|
$
|
15,064
|
$
|
15,093
|
||||
(a)
|
Included
GE industrial customer receivables factored through a GECS affiliate and
reported as financing receivables by GECS. See Note
26.
|
December
31 (In millions)
|
2008
|
2007
|
||||
GE
|
||||||
Raw
materials and work in process
|
$
|
8,710
|
$
|
7,893
|
||
Finished
goods
|
5,032
|
5,025
|
||||
Unbilled
shipments
|
561
|
539
|
||||
14,303
|
13,457
|
|||||
Less
revaluation to LIFO
|
(706
|
)
|
(623
|
)
|
||
13,597
|
12,834
|
|||||
GECS
|
||||||
Finished
goods
|
77
|
63
|
||||
Total
|
$
|
13,674
|
$
|
12,897
|
December
31 (In millions)
|
2008
|
2007
|
||||
Loans,
net of deferred income
|
$
|
310,203
|
$
|
313,290
|
||
Investment
in financing leases, net of deferred income
|
67,578
|
75,015
|
||||
377,781
|
388,305
|
|||||
Less
allowance for losses (Note 13)
|
(5,325
|
)
|
(4,238
|
)
|
||
Financing
receivables – net
|
$
|
372,456
|
$
|
384,067
|
December
31 (In millions)
|
2008
|
2007
|
||||
Commercial
Lending and Leasing (CLL)
|
||||||
Equipment
and leasing and other
|
$
|
99,769
|
$
|
96,817
|
||
Commercial
and industrial
|
64,332
|
58,863
|
||||
164,101
|
155,680
|
|||||
GE
Money
|
||||||
Non-U.S.
residential mortgages
(a)
|
59,595
|
73,042
|
||||
Non-U.S.
installment and revolving credit
|
24,441
|
34,669
|
||||
U.S.
installment and revolving credit
|
27,645
|
27,914
|
||||
Non-U.S.
auto
|
18,168
|
27,368
|
||||
Other
|
9,244
|
10,198
|
||||
139,093
|
173,191
|
|||||
Real
Estate
|
46,735
|
32,228
|
||||
Energy
Financial Services
|
8,392
|
7,898
|
||||
GE Commercial Aviation Services
(GECAS)
(b)
|
15,429
|
14,197
|
||||
Other
(c)
|
4,031
|
5,111
|
||||
377,781
|
388,305
|
|||||
Less
allowance for losses
|
(5,325
|
)
|
(4,238
|
)
|
||
Total
|
$
|
372,456
|
$
|
384,067
|
||
(a)
|
At
December 31, 2008, net of credit insurance, approximately 26% of this
portfolio comprised loans with introductory, below market rates that are
scheduled to adjust at future dates; with high loan-to-value ratios at
inception; whose terms permitted interest-only payments; or whose terms
resulted in negative amortization. At the origination date,
loans with an adjustable rate were underwritten to the reset
value.
|
(b)
|
Included
loans and financing leases of $13,078 million and $11,685 million at
December 31, 2008 and 2007, respectively, related to commercial aircraft
at Aviation Financial Services.
|
(c)
|
Included
loans and financing leases of $4,031 million and $5,106 million at
December 31, 2008 and 2007, respectively, related to certain consolidated,
liquidating securitization
entities.
|
Total
financing
leases
|
Direct
financing
leases
(a)
|
Leveraged
leases
(b)
|
||||||||||||||||
December
31 (In millions)
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Total
minimum lease payments
|
||||||||||||||||||
receivable
|
$
|
81,115
|
$
|
92,137
|
$
|
63,309
|
$
|
72,399
|
$
|
17,806
|
$
|
19,738
|
||||||
Less
principal and interest on
|
||||||||||||||||||
third-party
nonrecourse debt
|
(12,720
|
)
|
(14,102
|
)
|
–
|
–
|
(12,720
|
)
|
(14,102
|
)
|
||||||||
Net
rentals receivable
|
68,395
|
78,035
|
63,309
|
72,399
|
5,086
|
5,636
|
||||||||||||
Estimated
unguaranteed residual
|
||||||||||||||||||
value
of leased assets
|
10,255
|
10,306
|
7,425
|
7,500
|
2,830
|
2,806
|
||||||||||||
Less
deferred income
|
(11,072
|
)
|
(13,326
|
)
|
(8,733
|
)
|
(10,650
|
)
|
(2,339
|
)
|
(2,676
|
)
|
||||||
Investment
in financing leases,
|
||||||||||||||||||
net
of deferred income
|
67,578
|
75,015
|
62,001
|
69,249
|
5,577
|
5,766
|
||||||||||||
Less
amounts to arrive at net
|
||||||||||||||||||
investment
|
||||||||||||||||||
Allowance
for losses
|
(498
|
)
|
(571
|
)
|
(440
|
)
|
(559
|
)
|
(58
|
)
|
(12
|
)
|
||||||
Deferred
taxes
|
(7,317
|
)
|
(7,089
|
)
|
(3,082
|
)
|
(2,654
|
)
|
(4,235
|
)
|
(4,435
|
)
|
||||||
Net
investment in financing leases
|
$
|
59,763
|
$
|
67,355
|
$
|
58,479
|
$
|
66,036
|
$
|
1,284
|
$
|
1,319
|
||||||
(a)
|
Included
$824 million and $802 million of initial direct costs on direct financing
leases at December 31, 2008 and 2007, respectively.
|
(b)
|
Included
pre-tax income of $268 million and $412 million and income tax of $106
million and $156 million during 2008 and 2007, respectively. Net
investment credits recognized on leveraged leases during 2008 and 2007
were inconsequential.
|
(In
millions)
|
Total
loans
|
Net
rentals
receivable
|
||||
Due
in
|
||||||
2009
|
$
|
86,957
|
$
|
19,819
|
||
2010
|
36,970
|
13,725
|
||||
2011
|
30,902
|
10,624
|
||||
2012
|
26,421
|
7,150
|
||||
2013
|
21,624
|
4,752
|
||||
2014
and later
|
107,329
|
12,325
|
||||
Total
|
$
|
310,203
|
$
|
68,395
|
December
31 (In millions)
|
2008
|
2007
|
||||
Loans
requiring allowance for losses
|
$
|
2,712
|
$
|
986
|
||
Loans
expected to be fully recoverable
|
871
|
391
|
||||
Total
impaired loans
|
$
|
3,583
|
$
|
1,377
|
||
Allowance
for losses
|
$
|
635
|
$
|
361
|
||
Average
investment during year
|
2,064
|
1,576
|
||||
Interest
income earned while impaired
(a)
|
27
|
19
|
||||
(a)
|
Recognized
principally on cash basis.
|
(In
millions)
|
Balance
January
1,
2008
|
Provision
charged
to
operations
|
Currency
exchange
|
Other
(a)
|
Gross
write-offs
|
Recoveries
|
Balance
December
31,
2008
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||
CLL
|
|||||||||||||||||||||||||||||
Equipment
and
|
|||||||||||||||||||||||||||||
leasing
and other
|
$
|
661
|
$
|
838
|
$
|
24
|
$
|
91
|
$
|
(815
|
)
|
$
|
95
|
$
|
894
|
||||||||||||||
Commercial
and
|
|||||||||||||||||||||||||||||
industrial
|
276
|
544
|
(12
|
)
|
4
|
(416
|
)
|
19
|
415
|
||||||||||||||||||||
GE
Money
|
|||||||||||||||||||||||||||||
Non-U.S.
residential
|
|||||||||||||||||||||||||||||
mortgages
|
246
|
323
|
(40
|
)
|
2
|
(218
|
)
|
69
|
382
|
||||||||||||||||||||
Non-U.S.
installment
|
|||||||||||||||||||||||||||||
and
revolving credit
|
1,371
|
1,748
|
(194
|
)
|
(223
|
)
|
(2,551
|
)
|
900
|
1,051
|
|||||||||||||||||||
U.S.
installment and
|
|||||||||||||||||||||||||||||
revolving
credit
|
985
|
3,217
|
–
|
(624
|
)
|
(2,173
|
)
|
295
|
1,700
|
||||||||||||||||||||
Non-U.S.
auto
|
324
|
376
|
(48
|
)
|
(76
|
)
|
(637
|
)
|
283
|
222
|
|||||||||||||||||||
Other
|
162
|
220
|
(17
|
)
|
28
|
(248
|
)
|
69
|
214
|
||||||||||||||||||||
Real
Estate
|
168
|
135
|
(7
|
)
|
16
|
(12
|
)
|
1
|
301
|
||||||||||||||||||||
Energy
Financial
|
|||||||||||||||||||||||||||||
Services
|
19
|
36
|
–
|
3
|
–
|
–
|
58
|
||||||||||||||||||||||
GECAS
|
8
|
53
|
–
|
–
|
(1
|
)
|
–
|
60
|
|||||||||||||||||||||
Other
|
18
|
28
|
–
|
–
|
(18
|
)
|
–
|
28
|
|||||||||||||||||||||
Total
|
$
|
4,238
|
$
|
7,518
|
$
|
(294
|
)
|
$
|
(779
|
)
|
$
|
(7,089
|
)
|
$
|
1,731
|
$
|
5,325
|
||||||||||||
(a)
|
Other
primarily included the effects of acquisitions, dispositions,
reclassifications to held for sale and securitization
activity.
|
(In
millions)
|
Balance
January
1,
2007
|
Provision
charged
to
operations
|
Currency
exchange
|
Other
(a)
|
Gross
write-offs
|
Recoveries
|
Balance
December
31,
2007
|
|||||||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||||||||
CLL
|
||||||||||||||||||||||||||||||||
Equipment
and
|
||||||||||||||||||||||||||||||||
leasing
and other
|
$
|
427
|
$
|
309
|
$
|
25
|
$
|
207
|
$
|
(422
|
)
|
$
|
115
|
$
|
661
|
|||||||||||||||||
Commercial
and
|
||||||||||||||||||||||||||||||||
industrial
|
314
|
192
|
10
|
(36
|
)
|
(230
|
)
|
26
|
276
|
|||||||||||||||||||||||
GE
Money
|
||||||||||||||||||||||||||||||||
Non-U.S.
residential
|
||||||||||||||||||||||||||||||||
mortgages
|
415
|
(139
|
)
|
10
|
(3
|
)
|
(129
|
)
|
92
|
246
|
||||||||||||||||||||||
Non-U.S.
installment
|
||||||||||||||||||||||||||||||||
and
revolving credit
|
1,253
|
1,669
|
92
|
(115
|
)
|
(2,324
|
)
|
796
|
1,371
|
|||||||||||||||||||||||
U.S.
installment and
|
||||||||||||||||||||||||||||||||
revolving
credit
|
876
|
1,960
|
−
|
(703
|
)
|
(1,505
|
)
|
357
|
985
|
|||||||||||||||||||||||
Non-U.S.
auto
|
279
|
279
|
23
|
34
|
(653
|
)
|
362
|
324
|
||||||||||||||||||||||||
Other
|
158
|
122
|
4
|
6
|
(198
|
)
|
70
|
162
|
||||||||||||||||||||||||
Real
Estate
|
155
|
24
|
3
|
3
|
(25
|
)
|
8
|
168
|
||||||||||||||||||||||||
Energy
Financial
|
||||||||||||||||||||||||||||||||
Services
|
29
|
(10
|
)
|
−
|
−
|
−
|
−
|
19
|
||||||||||||||||||||||||
GECAS
|
15
|
16
|
−
|
–
|
(23
|
)
|
–
|
8
|
||||||||||||||||||||||||
Other
|
24
|
9
|
−
|
−
|
(17
|
)
|
2
|
18
|
||||||||||||||||||||||||
Total
|
$
|
3,945
|
$
|
4,431
|
$
|
167
|
$
|
(607
|
)
|
$
|
(5,526
|
)
|
$
|
1,828
|
$
|
4,238
|
||||||||||||||||
(a)
|
Other
primarily included the effects of acquisitions and securitization
activity.
|
(In
millions)
|
Balance
January
1,
2006
|
Provision
charged
to
operations
|
Currency
exchange
|
Other
(a)
|
Gross
write-offs
|
Recoveries
|
Balance
December
31,
2006
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||
CLL
|
|||||||||||||||||||||||||||||||
Equipment
and
|
|||||||||||||||||||||||||||||||
leasing
and other
|
$
|
590
|
$
|
67
|
$
|
9
|
$
|
(8
|
)
|
$
|
(369
|
)
|
$
|
138
|
$
|
427
|
|||||||||||||||
Commercial
and
|
|||||||||||||||||||||||||||||||
industrial
|
338
|
57
|
10
|
13
|
(155
|
)
|
51
|
314
|
|||||||||||||||||||||||
GE
Money
|
|||||||||||||||||||||||||||||||
Non-U.S.
residential
|
|||||||||||||||||||||||||||||||
mortgages
|
397
|
69
|
34
|
(8
|
)
|
(177
|
)
|
100
|
415
|
||||||||||||||||||||||
Non-U.S.
installment
|
|||||||||||||||||||||||||||||||
and
revolving credit
|
1,060
|
1,382
|
60
|
36
|
(2,010
|
)
|
725
|
1,253
|
|||||||||||||||||||||||
U.S.
installment and
|
|||||||||||||||||||||||||||||||
revolving
credit
|
701
|
1,175
|
−
|
(217
|
)
|
(1,045
|
)
|
262
|
876
|
||||||||||||||||||||||
Non-U.S.
auto
|
238
|
284
|
24
|
12
|
(591
|
)
|
312
|
279
|
|||||||||||||||||||||||
Other
|
165
|
80
|
18
|
8
|
(184
|
)
|
71
|
158
|
|||||||||||||||||||||||
Real
Estate
|
189
|
(5
|
)
|
1
|
4
|
(39
|
)
|
5
|
155
|
||||||||||||||||||||||
Energy
Financial
|
|||||||||||||||||||||||||||||||
Services
|
41
|
(12
|
)
|
−
|
−
|
−
|
−
|
29
|
|||||||||||||||||||||||
GECAS
|
179
|
(52
|
)
|
−
|
−
|
(112
|
)
|
−
|
15
|
||||||||||||||||||||||
Other
|
22
|
17
|
−
|
12
|
(29
|
)
|
2
|
24
|
|||||||||||||||||||||||
Total
|
$
|
3,920
|
$
|
3,062
|
$
|
156
|
$
|
(148
|
)
|
$
|
(4,711
|
)
|
$
|
1,666
|
$
|
3,945
|
|||||||||||||||
(a)
|
Other
primarily included the effects of acquisitions and securitization
activity.
|
December
31 (Dollars in millions)
|
Depreciable
lives-new
(in
years)
|
2008
|
2007
|
||||||
Original
cost
|
|||||||||
GE
|
|||||||||
Land
and improvements
|
8
|
(a)
|
$
|
738
|
$
|
698
|
|||
Buildings,
structures and related equipment
|
8-40
|
7,354
|
7,700
|
||||||
Machinery
and equipment
|
4-20
|
22,114
|
20,569
|
||||||
Leasehold
costs and manufacturing plant
|
|||||||||
under
construction
|
1-10
|
2,305
|
2,121
|
||||||
32,511
|
31,088
|
||||||||
GECS
(b)
|
|||||||||
Land
and improvements, buildings, structures
|
|||||||||
and
related equipment
|
2-40
|
(a)
|
7,076
|
6,051
|
|||||
Equipment
leased to others
|
|||||||||
Aircraft
|
20
|
40,478
|
37,271
|
||||||
Vehicles
|
1-14
|
32,098
|
32,079
|
||||||
Railroad
rolling stock
|
5-36
|
4,402
|
3,866
|
||||||
Construction
and manufacturing
|
2-25
|
3,363
|
3,031
|
||||||
Mobile
equipment
|
12-25
|
2,954
|
2,964
|
||||||
All
other
|
2-40
|
2,789
|
2,961
|
||||||
93,160
|
88,223
|
||||||||
Total
|
$
|
125,671
|
$
|
119,311
|
|||||
Net
carrying value
|
|||||||||
GE
|
|||||||||
Land
and improvements
|
$
|
705
|
$
|
612
|
|||||
Buildings,
structures and related equipment
|
3,768
|
4,101
|
|||||||
Machinery
and equipment
|
7,999
|
7,634
|
|||||||
Leasehold
costs and manufacturing plant
|
|||||||||
under
construction
|
1,961
|
1,795
|
|||||||
14,433
|
14,142
|
||||||||
GECS
(b)
|
|||||||||
Land
and improvements, buildings, structures
|
|||||||||
and
related equipment
|
4,527
|
3,703
|
|||||||
Equipment
leased to others
|
|||||||||
Aircraft
(c)
|
32,288
|
30,414
|
|||||||
Vehicles
|
18,149
|
20,701
|
|||||||
Railroad
rolling stock
|
2,915
|
2,789
|
|||||||
Construction
and manufacturing
|
2,333
|
2,055
|
|||||||
Mobile
equipment
|
2,022
|
1,976
|
|||||||
All
other
|
1,863
|
2,108
|
|||||||
64,097
|
63,746
|
||||||||
Total
|
$
|
78,530
|
$
|
77,888
|
|||||
(a)
|
Depreciable
lives exclude land.
|
(b)
|
Included
$1,748 million and $1,513 million of original cost of assets leased to GE
with accumulated amortization of $491 million and $315 million at December
31, 2008 and 2007, respectively.
|
(c)
|
The
GECAS business of Capital Finance recognized impairment losses of $72
million in 2008 and $110 million in 2007 recorded in the caption “Other
costs and expenses” in the Statement of Earnings to reflect adjustments to
fair value based on current market values from independent
appraisers.
|
(In
millions)
|
||||||
Due
in
|
||||||
2009
|
$
|
9,103
|
||||
2010
|
7,396
|
|||||
2011
|
5,542
|
|||||
2012
|
4,157
|
|||||
2013
|
3,109
|
|||||
2014
and later
|
8,714
|
|||||
Total
|
$
|
38,021
|
December
31 (In millions)
|
2008
|
2007
|
||||
Goodwill
|
||||||
GE
|
$
|
56,394
|
$
|
55,689
|
||
GECS
|
25,365
|
25,427
|
||||
Total
|
$
|
81,759
|
$
|
81,116
|
December
31 (In millions)
|
2008
|
2007
|
||||
Other
intangible assets
|
||||||
GE
|
||||||
Intangible
assets subject to amortization
|
$
|
9,010
|
$
|
9,278
|
||
Indefinite-lived
intangible assets
(a)
|
2,354
|
2,355
|
||||
11,364
|
11,633
|
|||||
GECS
|
||||||
Intangible
assets subject to amortization
|
3,613
|
4,509
|
||||
Total
|
$
|
14,977
|
$
|
16,142
|
||
(a)
|
Indefinite-lived
intangible assets principally comprised trademarks, tradenames and U.S.
Federal Communications Commission
licenses.
|
2008
|
2007
|
|||||||||||||||||||||||
(In
millions)
|
Balance
January
1
|
Acquisitions/
purchase
accounting
adjustments
|
Dispositions,
currency
exchange
and
other
|
Balance
December
31
|
Balance
January
1
(a)
|
Acquisitions/
purchase
accounting
adjustments
|
Dispositions,
currency
exchange
and
other
|
Balance
December
31
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Energy
Infrastructure
|
$
|
9,960
|
$
|
750
|
$
|
(767
|
)
|
$
|
9,943
|
$
|
7,956
|
$
|
1,818
|
$
|
186
|
$
|
9,960
|
|||||||
Technology
Infrastructure
|
26,130
|
1,116
|
(562
|
)
|
26,684
|
22,043
|
4,292
|
(205
|
)
|
26,130
|
||||||||||||||
NBC
Universal
|
18,733
|
403
|
(163
|
)
|
18,973
|
18,000
|
733
|
–
|
18,733
|
|||||||||||||||
Capital
Finance
|
25,427
|
2,024
|
(2,086
|
)
|
25,365
|
22,754
|
1,938
|
735
|
25,427
|
|||||||||||||||
Consumer
& Industrial
|
866
|
–
|
(72
|
)
|
794
|
557
|
(22
|
)
|
331
|
866
|
||||||||||||||
Total
|
$
|
81,116
|
$
|
4,293
|
$
|
(3,650
|
)
|
$
|
81,759
|
$
|
71,310
|
$
|
8,759
|
$
|
1,047
|
$
|
81,116
|
|||||||
(a)
|
January
1, 2007, balance decreased by $89 million related to new accounting
standards. See Note 1.
|
December
31 (In millions)
|
Gross
carrying
amount
|
Accumulated
amortization
|
Net
|
|||||||
GE
|
||||||||||
2008
|
||||||||||
Customer-related
|
$
|
4,551
|
$
|
(900
|
)
|
$
|
3,651
|
|||
Patents,
licenses and trademarks
|
4,751
|
(1,690
|
)
|
3,061
|
||||||
Capitalized
software
|
4,706
|
(2,723
|
)
|
1,983
|
||||||
All
other
|
470
|
(155
|
)
|
315
|
||||||
Total
|
$
|
14,478
|
$
|
(5,468
|
)
|
$
|
9,010
|
|||
2007
|
||||||||||
Customer-related
|
$
|
4,526
|
$
|
(698
|
)
|
$
|
3,828
|
|||
Patents,
licenses and trademarks
|
4,561
|
(1,369
|
)
|
3,192
|
||||||
Capitalized
software
|
4,573
|
(2,589
|
)
|
1,984
|
||||||
All
other
|
436
|
(162
|
)
|
274
|
||||||
Total
|
$
|
14,096
|
$
|
(4,818
|
)
|
$
|
9,278
|
|||
GECS
|
||||||||||
2008
|
||||||||||
Customer-related
|
$
|
1,746
|
$
|
(613
|
)
|
$
|
1,133
|
|||
Patents,
licenses and trademarks
|
589
|
(460
|
)
|
129
|
||||||
Capitalized
software
|
2,170
|
(1,476
|
)
|
694
|
||||||
Lease
valuations
|
1,805
|
(594
|
)
|
1,211
|
||||||
Present
value of future profits
|
831
|
(401
|
)
|
430
|
||||||
All
other
|
181
|
(165
|
)
|
16
|
||||||
Total
|
$
|
7,322
|
$
|
(3,709
|
)
|
$
|
3,613
|
|||
2007
|
||||||||||
Customer-related
|
$
|
2,395
|
$
|
(869
|
)
|
$
|
1,526
|
|||
Patents,
licenses and trademarks
|
428
|
(309
|
)
|
119
|
||||||
Capitalized
software
|
1,832
|
(1,095
|
)
|
737
|
||||||
Lease
valuations
|
1,841
|
(360
|
)
|
1,481
|
||||||
Present
value of future profits
|
818
|
(364
|
)
|
454
|
||||||
All
other
|
347
|
(155
|
)
|
192
|
||||||
Total
|
$
|
7,661
|
$
|
(3,152
|
)
|
$
|
4,509
|
December
31 (In millions)
|
2008
|
2007
|
||||
GE
|
||||||
Investments
|
||||||
Associated
companies
|
$
|
2,785
|
$
|
1,871
|
||
Other
|
608
|
633
|
||||
3,393
|
2,504
|
|||||
Contract
costs and estimated earnings
|
5,999
|
5,983
|
||||
Film
and television costs
|
4,667
|
4,143
|
||||
Long-term
receivables, including notes
(a)
|
2,613
|
2,331
|
||||
Derivative
instruments
|
527
|
889
|
||||
Pension
asset – principal plans
|
–
|
20,190
|
||||
Other
(b)
|
5,236
|
4,568
|
||||
22,435
|
40,608
|
|||||
GECS
|
||||||
Investments
|
||||||
Real
estate
(c)(d)
|
36,679
|
40,488
|
||||
Associated
companies
|
18,694
|
17,025
|
||||
Assets
held for sale
(e)
|
5,038
|
10,690
|
||||
Cost
method
(d)
|
2,482
|
2,742
|
||||
Other
|
1,854
|
1,018
|
||||
64,747
|
71,963
|
|||||
Derivative
instruments
|
12,115
|
3,271
|
||||
Advances
to suppliers
|
2,187
|
2,046
|
||||
Deferred
acquisition costs
|
1,230
|
1,282
|
||||
Other
(b)
|
5,442
|
4,830
|
||||
85,721
|
83,392
|
|||||
Eliminations
|
(1,257
|
)
|
(1,152
|
)
|
||
Total
|
$
|
106,899
|
$
|
122,848
|
||
(a)
|
Included
loans to GECS of $1,038 million and $1,132 million at December 31, 2008
and 2007, respectively.
|
(b)
|
Included $494
million at December 31, 2008, of unamortized fees related to our
participation in the Temporary Liquidity Guarantee Program and the
Commercial Paper Funding Facility.
|
(c)
|
GECS
investment in real estate consisted principally of two categories: real
estate held for investment and equity method investments. Both categories
contained a wide range of properties including the following at December
31, 2008: office buildings (45%), apartment buildings (17%), industrial
properties (11%), retail facilities (9%), franchise properties (7%),
parking facilities (2%) and other (9%). At December 31, 2008, investments
were located in the Americas (47%), Europe (31%) and Asia
(22%).
|
(d)
|
The
fair value of and unrealized loss on cost method investments in a
continuous loss position for less than 12 months at December 31, 2008,
were $565 million and $98 million, respectively. The fair value of and
unrealized loss on cost method investments in a continuous loss position
for 12 months or more at December 31, 2008, were $64 million and $4
million, respectively. The fair value of and unrealized loss on cost
method investments in a continuous loss position for less than 12 months
at December 31, 2007, were $546 million and $93 million, respectively. The
fair value of and unrealized loss on cost method investments in a
continuous loss position for 12 months or more at December 31, 2007, were
$18 million and $8 million, respectively.
|
(e)
|
Assets
were classified as held for sale on the date a decision was made to
dispose of them through sale, securitization or other means. Such assets
consisted primarily of credit card receivables, loans and real estate
properties, and were accounted for at the lower of carrying amount or
estimated fair value less costs to sell. These amounts are net of
valuation allowances of $112 million and $153 million at December 31, 2008
and 2007, respectively.
|
December
31 (In millions)
|
2008
|
|||||
|
||||||
Assets
|
|
|||||
Cash
and equivalents
|
|
$
|
35
|
|||
Financing
receivables – net
|
|
9,915
|
||||
Intangible
assets – net
|
|
394
|
||||
Other
|
|
212
|
||||
Assets
of businesses held for sale
|
|
$
|
10,556
|
|||
|
||||||
Liabilities
|
|
|||||
Liabilities
of businesses held for sale
|
|
$
|
636
|
2008
|
2007
|
|||||||||||
December
31 (Dollars in millions)
|
Amount
|
Average
rate
(a)
|
Amount
|
Average
rate
(a)
|
||||||||
GE
|
||||||||||||
Commercial
paper
|
||||||||||||
U.S.
|
$
|
–
|
–
|
%
|
$
|
1,798
|
4.73
|
%
|
||||
Non-U.S.
|
1
|
7.82
|
1
|
4.00
|
||||||||
Payable
to banks
|
78
|
2.91
|
189
|
5.07
|
||||||||
Current
portion of long-term debt
|
1,703
|
0.84
|
1,547
|
5.36
|
||||||||
Other
|
593
|
571
|
||||||||||
2,375
|
4,106
|
|||||||||||
GECS
|
||||||||||||
Commercial
paper
|
||||||||||||
U.S.
|
||||||||||||
Unsecured
(b)
|
62,768
|
2.12
|
72,392
|
4.69
|
||||||||
Asset-backed
(c)
|
3,652
|
2.57
|
4,775
|
4.94
|
||||||||
Non-U.S.
|
9,033
|
4.12
|
28,711
|
4.99
|
||||||||
Current
portion of long-term debt
(d)
|
69,682
|
3.83
|
56,301
|
5.01
|
||||||||
Bank
deposits
(e)(f)
|
29,634
|
3.47
|
11,486
|
3.04
|
||||||||
Bank
borrowings
(g)
|
10,028
|
2.75
|
6,915
|
5.31
|
||||||||
GE
Interest Plus notes
(h)
|
5,633
|
3.58
|
9,590
|
5.23
|
||||||||
Other
|
3,103
|
2,250
|
||||||||||
193,533
|
192,420
|
|||||||||||
Eliminations
|
(2,213
|
)
|
(1,426
|
)
|
||||||||
Total
|
$
|
193,695
|
$
|
195,100
|
||||||||
(a)
|
Based
on year-end balances and year-end local currency interest rates. Current
portion of long-term debt included the effects of related interest rate
and currency swaps, if any, directly associated with the original debt
issuance.
|
(b)
|
At
December 31, 2008, GE Capital had issued and outstanding, $21,823 million
of senior, unsecured debt that was guaranteed by the Federal Deposit
Insurance Corporation (FDIC) under the Temporary Liquidity Guarantee
Program. GE Capital and GE entered into an Eligible Entity Designation
Agreement and GE Capital is subject to the terms of a Master Agreement,
each entered into with the FDIC. The terms of these agreements include,
among other things, a requirement that GE and GE Capital reimburse the
FDIC for any amounts that the FDIC pays to holders of debt that is
guaranteed by the FDIC.
|
(c)
|
Consists
entirely of obligations of consolidated, liquidating securitization
entities. See Note 12.
|
(d)
|
Included
$326 million and $1,106 million related to asset-backed senior notes,
issued by consolidated, liquidating securitization entities at December
31, 2008 and 2007, respectively.
|
(e)
|
Included
$11,793 million and $10,789 million of deposits in non-U.S. banks at
December 31, 2008 and 2007, respectively.
|
(f)
|
Included
certificates of deposits distributed by brokers of $17,841 million and
$697 million at December 31, 2008 and 2007,
respectively.
|
(g)
|
Term
borrowings from banks with a remaining term to maturity of less than 12
months.
|
(h)
|
Entirely
variable denomination floating rate demand
notes.
|
December
31 (Dollars in millions)
|
2008
Average
rate
(a)
|
Maturities
|
2008
|
2007
|
|||||||
GE
|
|||||||||||
Senior
notes
|
5.11
|
%
|
2013-2017
|
$
|
8,962
|
$
|
8,957
|
||||
Industrial
development/pollution control bonds
|
1.10
|
2011-2027
|
264
|
266
|
|||||||
Payable
to banks, principally U.S.
|
6.93
|
2010-2023
|
317
|
1,988
|
|||||||
Other
(b)
|
284
|
445
|
|||||||||
9,827
|
11,656
|
||||||||||
GECS
|
|||||||||||
Senior
notes
|
|||||||||||
Unsecured
(c)
|
4.80
|
2010-2055
|
299,186
|
283,097
|
|||||||
Asset-backed
(d)
|
5.12
|
2010-2035
|
5,002
|
5,528
|
|||||||
Extendible
notes
|
–
|
–
|
–
|
8,500
|
|||||||
Subordinated
notes
(e)
|
5.70
|
2012-2037
|
2,866
|
3,313
|
|||||||
Subordinated
debentures
(f)
|
6.00
|
2066-2067
|
7,315
|
8,064
|
|||||||
Bank
deposits
(g)
|
4.49
|
2010-2018
|
6,699
|
–
|
|||||||
321,068
|
308,502
|
||||||||||
Eliminations
|
(828
|
)
|
(1,145
|
)
|
|||||||
Total
|
$
|
330,067
|
$
|
319,013
|
|||||||
(a)
|
Based
on year-end balances and year-end local currency interest rates, including
the effects of related interest rate and currency swaps, if any, directly
associated with the original debt issuance.
|
(b)
|
A
variety of obligations having various interest rates and maturities,
including certain borrowings by parent operating components and
affiliates.
|
(c)
|
At
December 31, 2008, GE Capital had issued and outstanding, $13,420 million
of senior, unsecured debt that was guaranteed by the FDIC under the
Temporary Liquidity Guarantee Program. GE Capital and GE entered into an
Eligible Entity Designation Agreement and GE Capital is subject to the
terms of a Master Agreement, each entered into with the FDIC. The terms of
these agreements include, among other things, a requirement that GE and GE
Capital reimburse the FDIC for any amounts that the FDIC pays to holders
of debt that is guaranteed by the FDIC.
|
(d)
|
Included
$2,104 million and $3,410 million of asset-backed senior notes, issued by
consolidated, liquidating securitization entities at December 31, 2008 and
2007, respectively. See Note 12.
|
(e)
|
Included
$750 million of subordinated notes guaranteed by GE at December 31, 2008
and 2007.
|
(f)
|
Subordinated
debentures receive rating agency equity credit and were hedged at issuance
to the U.S. dollar equivalent of $7,725 million.
|
(g)
|
Entirely
certificates of deposits with maturities greater than one
year.
|
(In
millions)
|
2009
|
2010
|
2011
|
2012
|
2013
|
||||||||||
GE
|
$
|
1,703
|
$
|
44
|
$
|
65
|
$
|
32
|
$
|
5,022
|
|||||
GECS
|
69,682
|
(a)
|
62,894
|
52,835
|
47,573
|
27,426
|
|||||||||
(a)
|
Fixed
and floating rate notes of $734 million contain put options with exercise
dates in 2009, and which have final maturity beyond
2013.
|
December
31 (In millions)
|
2008
|
2007
|
||||
Cash
flow hedges
|
$
|
(4,529
|
)
|
$
|
497
|
|
Fair
value hedges
|
8,304
|
(75
|
)
|
|||
Total
|
$
|
3,775
|
$
|
422
|
||
Interest
rate swaps
|
$
|
3,425
|
$
|
(1,559
|
)
|
|
Currency
swaps
|
350
|
1,981
|
||||
Total
|
$
|
3,775
|
$
|
422
|
December
31 (In millions)
|
2008
|
2007
|
||||
Investment
contracts
|
$
|
4,212
|
$
|
4,536
|
||
Guaranteed
investment contracts
|
10,828
|
11,705
|
||||
Total
investment contracts
|
15,040
|
16,241
|
||||
Life
insurance benefits
(a)
|
16,259
|
15,416
|
||||
Unpaid
claims and claims adjustment expenses
|
2,145
|
1,726
|
||||
Unearned
premiums
|
623
|
656
|
||||
Universal
life benefits
|
302
|
320
|
||||
Total
|
$
|
34,369
|
$
|
34,359
|
||
(a)
|
Life
insurance benefits are accounted for mainly by a net-level-premium method
using estimated yields generally ranging from 3.0% to 8.50% in both 2008
and 2007.
|
December
31 (In millions)
|
2008
|
2007
|
||||
Assets
|
||||||
GE
|
$
|
(13,493
|
)
|
$
|
(13,122
|
)
|
GECS
|
(11,180
|
)
|
(6,293
|
)
|
||
(24,673
|
)
|
(19,415
|
)
|
|||
Liabilities
|
||||||
GE
|
9,544
|
16,513
|
||||
GECS
|
19,713
|
15,392
|
||||
29,257
|
31,905
|
|||||
Net
deferred income tax liability
|
$
|
4,584
|
$
|
12,490
|
December
31 (In millions)
|
2008
|
2007
|
||||
GE
|
||||||
Intangible
assets
|
$
|
2,664
|
$
|
2,609
|
||
Contract
costs and estimated earnings
|
2,319
|
2,215
|
||||
Depreciation
|
1,205
|
1,360
|
||||
Investment
in global subsidiaries
|
444
|
318
|
||||
Pension
asset – principal plans
|
–
|
7,067
|
||||
Provision
for expenses
(a)
|
(6,578
|
)
|
(6,426
|
)
|
||
Retiree
insurance plans
|
(4,355
|
)
|
(4,616
|
)
|
||
Non-U.S.
loss carryforwards
(b)
|
(800
|
)
|
(925
|
)
|
||
Other
– net
|
1,152
|
1,789
|
||||
(3,949
|
)
|
3,391
|
||||
GECS
|
||||||
Financing
leases
|
7,317
|
7,089
|
||||
Operating
leases
|
4,882
|
4,478
|
||||
Investment
in global subsidiaries
|
2,127
|
(1,203
|
)
|
|||
Intangible
assets
|
1,360
|
1,427
|
||||
Allowance
for losses
|
(2,459
|
)
|
(1,478
|
)
|
||
Cash
flow hedges
|
(2,260
|
)
|
(496
|
)
|
||
Net
unrealized losses on securities
|
(1,634
|
)
|
(14
|
)
|
||
Non-U.S.
loss carryforwards
(b)
|
(979
|
)
|
(805
|
)
|
||
Other
– net
|
179
|
101
|
||||
8,533
|
9,099
|
|||||
Net
deferred income tax liability
|
$
|
4,584
|
$
|
12,490
|
||
(a)
|
Represented
the tax effects of temporary differences related to expense accruals for a
wide variety of items, such as employee compensation and benefits, pension
plan liabilities, interest on tax liabilities, product warranties and
other sundry items that are not currently deductible.
|
(b)
|
Net
of valuation allowances of $635 million and $557 million for GE and $260
million and $196 million for GECS, for 2008 and 2007, respectively. Of the
net deferred tax asset as of December 31, 2008, of $1,779 million, $33
million relates to net operating loss carryforwards that expire in various
years ending from December 31, 2009, through December 31, 2011; $160
million relates to net operating losses that expire in various years
ending from December 31, 2012, through December 31, 2023; and $1,586
million relates to
net operating loss carryforwards that may be carried forward
indefinitely.
|
December
31 (In millions)
|
2008
|
2007
|
||||
Minority
interest in consolidated affiliates
|
||||||
NBC
Universal
|
$
|
5,091
|
$
|
5,025
|
||
Others
(a)
|
3,579
|
2,698
|
||||
Minority
interest in preferred stock
(b)
|
||||||
GE
Capital affiliates
|
277
|
281
|
||||
Total
|
$
|
8,947
|
$
|
8,004
|
||
(a)
|
Included
minority interest in partnerships and common shares of consolidated
affiliates.
|
(b)
|
The
preferred stock pays cumulative dividends at an average rate of
6.81%.
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Preferred
stock issued
(a)(b)
|
$
|
–
|
$
|
–
|
$
|
–
|
|||
Common
stock issued
(a)(b)
|
$
|
702
|
$
|
669
|
$
|
669
|
|||
Accumulated
other comprehensive income
|
|||||||||
Balance
at January 1
|
$
|
8,324
|
$
|
3,254
|
$
|
3,137
|
|||
Investment
securities – net of deferred taxes of $(2,528),
|
|||||||||
$(510)
and $111
|
(3,813
|
)
|
(972
|
)
|
297
|
||||
Currency
translation adjustments – net of deferred taxes
|
|||||||||
of
$4,082, $(1,319) and $(1,417)
|
(10,890
|
)
|
4,662
|
3,776
|
|||||
Cash
flow hedges – net of deferred taxes of $(1,982), $(213)
|
|||||||||
and
$75
|
(2,781
|
)
|
23
|
599
|
|||||
Benefit
plans – net of deferred taxes of $(7,379), $860 and $182
(c)
|
(13,288
|
)
|
2,566
|
287
|
|||||
Reclassification
adjustments
|
|||||||||
Investment
securities – net of deferred taxes of $734,
|
|||||||||
$(375)
and $(279)
|
595
|
(512
|
)
|
(520
|
)
|
||||
Currency
translation adjustments
|
(117
|
)
|
(135
|
)
|
(127
|
)
|
|||
Cash
flow hedges – net of deferred taxes of $295, $(119)
|
|||||||||
and
$(60)
|
117
|
(562
|
)
|
(376
|
)
|
||||
Cumulative
effect of change in accounting principle –
|
|||||||||
net
of deferred taxes of $(2,715)
|
–
|
–
|
(3,819
|
)
|
|||||
Balance
at December 31
(d)
|
$
|
(21,853
|
)
|
$
|
8,324
|
$
|
3,254
|
||
Other
capital
|
|||||||||
Balance
at January 1
|
$
|
26,100
|
$
|
25,486
|
$
|
25,227
|
|||
Common
stock issuance
(b)
|
11,972
|
–
|
–
|
||||||
Preferred
stock and warrant issuance
(b)
|
2,965
|
–
|
–
|
||||||
Gains
(losses) on treasury stock dispositions and other
(b)
|
(647
|
)
|
614
|
259
|
|||||
Balance
at December 31
|
$
|
40,390
|
$
|
26,100
|
$
|
25,486
|
|||
Retained
earnings
|
|||||||||
Balance
at January 1
(e)
|
$
|
117,362
|
$
|
106,867
|
$
|
96,926
|
|||
Net
earnings
|
17,410
|
22,208
|
20,742
|
||||||
Dividends
(b)(f)
|
(12,649
|
)
|
(11,713
|
)
|
(10,675
|
)
|
|||
Balance
at December 31
|
$
|
122,123
|
$
|
117,362
|
$
|
106,993
|
|||
Common
stock held in treasury
|
|||||||||
Balance
at January 1
|
$
|
(36,896
|
)
|
$
|
(24,893
|
)
|
$
|
(17,326
|
)
|
Purchases
(b)
|
(3,508
|
)
|
(14,913
|
)
|
(10,512
|
)
|
|||
Dispositions
(b)
|
3,707
|
2,910
|
2,945
|
||||||
Balance
at December 31
|
$
|
(36,697
|
)
|
$
|
(36,896
|
)
|
$
|
(24,893
|
)
|
Total
equity
|
|||||||||
Balance
at December 31
|
$
|
104,665
|
$
|
115,559
|
$
|
111,509
|
|||
(a)
|
Additions
resulting from issuances in 2008 were inconsequential for preferred stock
and $33 million for common stock.
|
(b)
|
Total
dividends and other transactions with shareowners, inclusive of additions
to par value discussed in note (a), increased equity by $1,873 million in
2008, and reduced equity by $23,102 million in 2007 and $17,983 million in
2006.
|
(c)
|
For
2008, included $(43) million of prior service costs for plan amendments,
$534 million of amortization of prior service costs, $(13,980) million of
gains (losses) arising during the year and $201 million of amortization of
gains (losses) – net of deferred taxes of $(24) million, $441 million,
$(7,893) million and $97 million, respectively. For 2007, included
$(3,122) million of prior service costs for plan amendments, $494 million
of amortization of prior service costs, $4,666 million of gains (losses)
arising during the year and $528 million of amortization of gains (losses)
– net of deferred taxes of $(2,482) million, $339 million, $2,639 million
and $364 million, respectively.
|
(d)
|
At
December 31, 2008, included additions to equity of $2,865 million related
to hedges of our investments in financial services subsidiaries that have
functional currencies other than the U.S. dollar and reductions of $3,332
million related to cash flow hedges of forecasted transactions, of which
we expect to transfer $1,892 million to earnings as an expense in 2009
along with the earnings effects of the related forecasted
transaction.
|
(e)
|
2007
opening balance change reflects cumulative effect of changes in accounting
principles of $(49) million related to adopting FIN 48 and $(77) million
related to adoption of FSP FAS 13-2. The cumulative effect of adopting
SFAS 159 at January 1, 2008, was insignificant. See Note
1.
|
(f)
|
For
2008, included $75 million of dividends on preferred
stock.
|
December
31 (In thousands)
|
2008
|
2007
|
2006
|
|||
Issued
|
11,693,829
|
11,145,252
|
11,145,212
|
|||
In
treasury
|
(1,156,932
|
)
|
(1,157,653
|
)
|
(867,839
|
)
|
Outstanding
|
10,536,897
|
9,987,599
|
10,277,373
|
December
31, 2008 (Shares in thousands)
|
Securities
to
be
issued
upon
exercise
|
Weighted
average
exercise
price
|
Securities
available
for
future
issuance
|
||||||
Approved
by shareowners
|
|||||||||
Options
|
214,824
|
$
|
36.30
|
(a)
|
|||||
RSUs
|
36,392
|
(b)
|
(a)
|
||||||
PSUs
|
1,050
|
(b)
|
(a)
|
||||||
Not
approved by shareowners (Consultants’ Plan)
|
|||||||||
Options
|
683
|
35.85
|
(c)
|
||||||
RSUs
|
91
|
(b)
|
(c)
|
||||||
Total
|
253,040
|
$
|
36.30
|
462,787
|
|||||
(a)
|
In
2007, the Board of Directors approved the 2007 Long-Term Incentive Plan
(the Plan). The Plan replaced the 1990 Long-Term Incentive Plan. The
maximum number of shares that may be granted under the Plan is 500 million
shares, of which no more than 250 million may be available for awards
granted in any form provided under the Plan other than options or stock
appreciation rights. The approximate 105.9 million shares available for
grant under the 1990 Plan were retired upon approval of the 2007 Plan.
Total shares available for future issuance under the 2007 Plan amounted to
439.0 million shares at December 31, 2008.
|
(b)
|
Not
applicable.
|
(c)
|
Total
shares available for future issuance under the consultants’ plan amount to
23.8 million shares.
|
(Shares
in thousands)
|
Outstanding
|
Exercisable
|
|||||||||||||
Exercise
price range
|
Shares
|
Average
life
(a)
|
Average
exercise
price
|
Shares
|
Average
exercise
price
|
||||||||||
Under
$27.00
|
784
|
4.6
|
$
|
22.50
|
568
|
$
|
23.94
|
||||||||
27.01–
32.00
|
66,510
|
6.1
|
28.36
|
40,767
|
28.39
|
||||||||||
32.01–
37.00
|
61,593
|
4.6
|
34.73
|
47,045
|
34.91
|
||||||||||
37.01–
42.00
|
32,555
|
4.7
|
39.19
|
19,843
|
39.47
|
||||||||||
42.01–
47.00
|
42,045
|
2.0
|
43.29
|
42,045
|
43.29
|
||||||||||
Over
$47.00
|
12,020
|
1.7
|
56.86
|
12,020
|
56.86
|
||||||||||
Total
|
215,507
|
4.4
|
$
|
36.30
|
162,288
|
$
|
37.59
|
||||||||
At
year-end 2007, options with an average exercise price of $36.98 were
exercisable on 168 million shares.
|
|
(a)
|
Average
contractual life remaining in
years.
|
Shares
(in
thousands)
|
Weighted
average
exercise
price
|
Weighted
average
remaining
contractual
term
(in
years)
|
Aggregate
intrinsic
value
(in
millions)
|
||||||||||||
Outstanding
at January 1, 2008
|
213,382
|
$
|
36.68
|
||||||||||||
Granted
|
25,317
|
28.21
|
|||||||||||||
Exercised
|
(13,271
|
)
|
26.62
|
||||||||||||
Forfeited
|
(2,831
|
)
|
35.18
|
||||||||||||
Expired
|
(7,090
|
)
|
37.40
|
||||||||||||
Outstanding
at December 31, 2008
|
215,507
|
$
|
36.30
|
4.4
|
$
|
–
|
|||||||||
Exercisable
at December 31, 2008
|
162,288
|
$
|
37.59
|
3.0
|
$
|
–
|
|||||||||
Options
expected to vest
|
47,092
|
$
|
32.45
|
8.5
|
$
|
–
|
Shares
(in
thousands)
|
Weighted
average
grant
date
fair
value
|
Weighted
average
remaining
contractual
term
(in
years)
|
Aggregate
intrinsic
value
(in
millions)
|
||||||||||||
RSUs
outstanding at January 1, 2008
|
37,129
|
$
|
33.48
|
||||||||||||
Granted
|
10,794
|
28.74
|
|||||||||||||
Vested
|
(9,445
|
)
|
31.34
|
||||||||||||
Forfeited
|
(1,995
|
)
|
34.61
|
||||||||||||
RSUs
outstanding at December 31, 2008
|
36,483
|
$
|
32.57
|
2.9
|
$
|
591
|
|||||||||
RSUs
expected to vest
|
33,239
|
$
|
32.61
|
2.8
|
$
|
538
|
December
31 (In millions)
|
2008
|
2007
|
2006
|
||||||
GE
|
|||||||||
Net
dispositions (purchases) of GE shares
|
|||||||||
for
treasury
|
|||||||||
Open
market purchases under share repurchase program
|
$
|
(3,222
|
)
|
$
|
(13,896
|
)
|
$
|
(8,054
|
)
|
Other
purchases
|
(286
|
)
|
(1,017
|
)
|
(2,458
|
)
|
|||
Dispositions
|
2,259
|
2,594
|
1,958
|
||||||
$
|
(1,249
|
)
|
$
|
(12,319
|
)
|
$
|
(8,554
|
)
|
|
GECS
|
|||||||||
All
other operating activities
|
|||||||||
Net
change in other assets
|
$
|
(1,461
|
)
|
$
|
(1,507
|
)
|
$
|
(1,709
|
)
|
Amortization
of intangible assets
|
994
|
879
|
599
|
||||||
Realized
losses (gains) on investment securities
|
1,260
|
(885
|
)
|
(132
|
)
|
||||
Change
in other liabilities
|
4,514
|
3,378
|
3,345
|
||||||
Other
|
3,201
|
(2,404
|
)
|
(1,068
|
)
|
||||
$
|
8,508
|
$
|
(539
|
)
|
$
|
1,035
|
|||
Net
increase in GECS financing receivables
|
|||||||||
Increase
in loans to customers
|
$
|
(411,913
|
)
|
$
|
(408,611
|
)
|
$
|
(371,835
|
)
|
Principal
collections from customers – loans
|
363,455
|
322,074
|
296,708
|
||||||
Investment
in equipment for financing leases
|
(21,671
|
)
|
(26,489
|
)
|
(25,618
|
)
|
|||
Principal
collections from customers – financing leases
|
20,159
|
20,868
|
18,791
|
||||||
Net
change in credit card receivables
|
(34,498
|
)
|
(38,405
|
)
|
(25,787
|
)
|
|||
Sales
of financing receivables
|
67,093
|
86,399
|
67,471
|
||||||
$
|
(17,375
|
)
|
$
|
(44,164
|
)
|
$
|
(40,270
|
)
|
|
All
other investing activities
|
|||||||||
Purchases
of securities by insurance activities
|
$
|
(4,190
|
)
|
$
|
(13,279
|
)
|
$
|
(11,891
|
)
|
Dispositions
and maturities of securities by insurance activities
|
4,690
|
15,602
|
11,635
|
||||||
Other
assets – investments
|
(205
|
)
|
(10,218
|
)
|
(6,242
|
)
|
|||
Change
in other receivables
|
3,331
|
(2,456
|
)
|
(55
|
)
|
||||
Other
|
2,353
|
1,621
|
558
|
||||||
$
|
5,979
|
$
|
(8,730
|
)
|
$
|
(5,995
|
)
|
||
Newly
issued debt having maturities
|
|||||||||
longer
than 90 days
|
|||||||||
Short-term
(91 to 365 days)
|
$
|
34,445
|
$
|
1,226
|
$
|
1,237
|
|||
Long-term
(longer than one year)
|
87,949
|
90,769
|
86,028
|
||||||
Proceeds
– nonrecourse, leveraged lease
|
113
|
24
|
1,015
|
||||||
$
|
122,507
|
$
|
92,019
|
$
|
88,280
|
||||
Repayments
and other reductions of debt
|
|||||||||
having
maturities longer than 90 days
|
|||||||||
Short-term
(91 to 365 days)
|
$
|
(66,015
|
)
|
$
|
(43,937
|
)
|
$
|
(42,273
|
)
|
Long-term
(longer than one year)
|
(462
|
)
|
(4,482
|
)
|
(5,576
|
)
|
|||
Principal
payments – nonrecourse, leveraged lease
|
(637
|
)
|
(1,109
|
)
|
(1,404
|
)
|
|||
$
|
(67,114
|
)
|
$
|
(49,528
|
)
|
$
|
(49,253
|
)
|
|
All
other financing activities
|
|||||||||
Proceeds
from sales of investment contracts
|
$
|
11,433
|
$
|
12,641
|
$
|
16,418
|
|||
Redemption
of investment contracts
|
(13,304
|
)
|
(13,862
|
)
|
(17,603
|
)
|
|||
Capital
contribution
|
5,500
|
–
|
–
|
||||||
Other
|
9
|
17
|
11
|
||||||
$
|
3,638
|
$
|
(1,204
|
)
|
$
|
(1,174
|
)
|
December
31 (In millions)
|
2008
|
2007
|
2006
|
||||||
Operating
|
|||||||||
Sum
of GE and GECS cash from operating
|
|||||||||
activities
– continuing operations
|
$
|
50,290
|
$
|
48,316
|
$
|
45,351
|
|||
Elimination
of GECS dividend to GE
|
(2,351
|
)
|
(7,291
|
)
|
(9,847
|
)
|
|||
Net
decrease (increase) in GE customer receivables
|
|||||||||
sold
to GECS
|
90
|
(255
|
)
|
(2,036
|
)
|
||||
Other
reclassifications and eliminations
|
(188
|
)
|
(828
|
)
|
(956
|
)
|
|||
Consolidated
cash from operating activities –
|
|||||||||
continuing
operations
|
$
|
47,841
|
$
|
39,942
|
$
|
32,512
|
|||
Investing
|
|||||||||
Sum
of GE and GECS cash used for investing
|
|||||||||
activities
– continuing operations
|
$
|
(39,615
|
)
|
$
|
(67,845
|
)
|
$
|
(54,132
|
)
|
Net
increase (decrease) in GE customer receivables
|
|||||||||
sold
to GECS
|
(90
|
)
|
255
|
2,036
|
|||||
Other
reclassifications and eliminations
|
(320
|
)
|
1,202
|
1,223
|
|||||
Consolidated
cash used for investing activities –
|
|||||||||
continuing
operations
|
$
|
(40,025
|
)
|
$
|
(66,388
|
)
|
$
|
(50,873
|
)
|
Financing
|
|||||||||
Sum
of GE and GECS cash from financing
|
|||||||||
activities
– continuing operations
|
$
|
22,760
|
$
|
18,751
|
$
|
16,772
|
|||
Elimination
of short-term intercompany borrowings
(a)
|
(787
|
)
|
1,950
|
(2,732
|
)
|
||||
Elimination
of GECS dividend to GE
|
2,351
|
7,291
|
9,847
|
||||||
Other
reclassifications and eliminations
|
316
|
99
|
(48
|
)
|
|||||
Consolidated
cash from financing activities –
|
|||||||||
continuing
operations
|
$
|
24,640
|
$
|
28,091
|
$
|
23,839
|
|||
(a)
|
Represents
GE investment in GECS short-term borrowings, such as commercial
paper.
|
Total
revenues
(a)
|
Intersegment
revenues
(b)
|
External
revenues
|
|||||||||||||||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
||||||||||||||||||
Energy
Infrastructure
|
$
|
38,571
|
$
|
30,698
|
$
|
25,221
|
$
|
664
|
$
|
351
|
$
|
488
|
$
|
37,907
|
$
|
30,347
|
$
|
24,733
|
|||||||||
Technology
Infrastructure
|
46,316
|
42,801
|
37,687
|
273
|
113
|
216
|
46,043
|
42,688
|
37,471
|
||||||||||||||||||
NBC
Universal
|
16,969
|
15,416
|
16,188
|
89
|
35
|
52
|
16,880
|
15,381
|
16,136
|
||||||||||||||||||
Capital
Finance
|
67,008
|
66,301
|
56,378
|
1,333
|
1,128
|
1,013
|
65,675
|
65,173
|
55,365
|
||||||||||||||||||
Consumer
& Industrial
|
11,737
|
12,663
|
13,202
|
196
|
143
|
235
|
11,541
|
12,520
|
12,967
|
||||||||||||||||||
Corporate
items and eliminations
|
1,914
|
4,609
|
2,892
|
(2,555
|
)
|
(1,770
|
)
|
(2,004
|
)
|
4,469
|
6,379
|
4,896
|
|||||||||||||||
Total
|
$
|
182,515
|
$
|
172,488
|
$
|
151,568
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
182,515
|
$
|
172,488
|
$
|
151,568
|
|||||||||
(a)
|
Revenues
of GE businesses include income from sales of goods and services to
customers and other income.
|
(b)
|
Sales
from one component to another generally are priced at equivalent
commercial selling prices.
|
Assets
(a)(b)
|
Property,
plant and
equipment
additions
(c)
|
Depreciation
and
amortization
|
|||||||||||||||||||||||||
At
December 31
|
For
the years ended
December
31
|
For
the years ended
December
31
|
|||||||||||||||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||
Energy
Infrastructure
|
$
|
33,836
|
$
|
31,466
|
$
|
24,456
|
$
|
1,226
|
$
|
1,054
|
$
|
867
|
$
|
838
|
$
|
774
|
$
|
672
|
|||||||||
Technology
Infrastructure
|
58,967
|
57,670
|
49,641
|
1,395
|
1,954
|
1,389
|
1,520
|
1,569
|
1,269
|
||||||||||||||||||
NBC
Universal
|
33,781
|
33,089
|
31,425
|
131
|
306
|
352
|
354
|
357
|
361
|
||||||||||||||||||
Capital
Finance
|
572,903
|
583,965
|
491,000
|
15,313
|
17,832
|
14,489
|
10,238
|
8,864
|
6,971
|
||||||||||||||||||
Consumer
& Industrial
|
5,065
|
5,351
|
5,740
|
284
|
363
|
373
|
397
|
434
|
497
|
||||||||||||||||||
Corporate
items and eliminations
|
93,217
|
84,142
|
95,011
|
281
|
247
|
195
|
221
|
310
|
262
|
||||||||||||||||||
Total
|
$
|
797,769
|
$
|
795,683
|
$
|
697,273
|
$
|
18,630
|
$
|
21,756
|
$
|
17,665
|
$
|
13,568
|
$
|
12,308
|
$
|
10,032
|
|||||||||
(a)
|
Assets
of discontinued operations are included in Corporate items and
eliminations for all periods presented.
|
(b)
|
Total
assets of the Energy Infrastructure, Technology Infrastructure, NBC
Universal, Capital Finance and Consumer & Industrial operating
segments at December 31, 2008, include investment in and advances to
associated companies of $640 million, $711 million, $954 million, $18,694
million and $394 million, respectively, which contributed approximately
$91 million, $67 million, $134 million, $2,217 million and $33 million,
respectively, to segment pre-tax income for the year ended December 31,
2008. Aggregate summarized financial information for significant
associated companies assuming a 100% ownership interest included: total
assets of $154,825 million, primarily financing receivables of $85,554
million; total liabilities of $128,959 million, primarily bank deposits of
$65,514 million; revenues totaling $22,347 million; and net earnings
totaling $3,583 million.
|
(c)
|
Additions
to property, plant and equipment include amounts relating to principal
businesses purchased.
|
Interest
and other
financial
charges
|
Provision
(benefit)
for
income taxes
|
|||||||||||||||||
(In
millions)
|
2008
|
2007
|
2006
|
2008
|
2007
|
2006
|
||||||||||||
Capital
Finance
|
$
|
25,094
|
$
|
22,611
|
$
|
17,079
|
$
|
(1,914
|
)
|
$
|
1,225
|
$
|
1,560
|
|||||
Corporate items and
eliminations
(a)
|
1,115
|
1,151
|
1,800
|
2,966
|
2,930
|
2,384
|
||||||||||||
Total
|
$
|
26,209
|
$
|
23,762
|
$
|
18,879
|
$
|
1,052
|
$
|
4,155
|
$
|
3,944
|
||||||
(a)
|
Included
amounts for Energy Infrastructure, Technology Infrastructure, NBC
Universal and Consumer & Industrial for which our measure of segment
profit excludes interest and other financial charges and income
taxes.
|
Level 1 –
|
Quoted
prices for identical instruments in active
markets.
|
Level 2 –
|
Quoted
prices for similar instruments in active markets; quoted prices for
identical or similar instruments in markets that are not active; and
model-derived valuations whose inputs are observable or whose significant
value drivers are observable.
|
Level 3 –
|
Significant
inputs to the valuation model are
unobservable.
|
December
31, 2008 (In millions)
|
Level
1
|
Level
2
|
Level
3
|
FIN
39
netting
(a)
|
Net
balance
|
||||||||||
Assets
|
|||||||||||||||
Investment
securities
|
$
|
1,158
|
$
|
27,332
|
$
|
12,956
|
$
|
–
|
$
|
41,446
|
|||||
Derivatives
(b)
|
–
|
18,911
|
1,142
|
(7,411
|
)
|
12,642
|
|||||||||
Other
(c)
|
1
|
288
|
1,105
|
–
|
1,394
|
||||||||||
Total
|
$
|
1,159
|
$
|
46,531
|
$
|
15,203
|
$
|
(7,411
|
)
|
$
|
55,482
|
||||
Liabilities
|
|||||||||||||||
Derivatives
|
$
|
2
|
$
|
12,643
|
$
|
166
|
$
|
(7,575
|
)
|
$
|
5,236
|
||||
Other
(d)
|
–
|
1,031
|
–
|
–
|
1,031
|
||||||||||
Total
|
$
|
2
|
$
|
13,674
|
$
|
166
|
$
|
(7,575
|
)
|
$
|
6,267
|
||||
(a)
|
FIN
39,
Offsetting of
Amounts Related to Certain Contracts
, permits the netting of
derivative receivables and derivative payables when a legally enforceable
master netting agreement exists. Included fair value adjustments related
to our own and counterparty credit risk.
|
(b)
|
The
fair value of derivatives included an adjustment for our non-performance
risk. At December 31, 2008, the adjustment for our non-performance risk
was a gain of $177 million.
|
(c)
|
Included
private equity investments and loans designated under the fair value
option.
|
(d)
|
Primarily
represented the liability associated with certain of our deferred
incentive compensation plans accounted for in accordance with EITF Issue
97-14,
Accounting for
Deferred Compensation Arrangements Where Amounts Earned Are Held in a
Rabbi Trust and Invested
.
|
(In
millions)
|
January 1,
2008
|
Net
realized/
unrealized
gains
(losses)
included
in
earnings
(a)
|
Net
realized/
unrealized
gains
(losses)
included
in
accumulated
nonowner
changes
other
than
earnings
|
Purchases,
issuances
and
settlements
|
Transfers
in
and/or
out
of
Level 3
(b)
|
December 31,
2008
|
Net
change in
unrealized
gains
(losses)
relating
to
instruments
still
held at
December 31,
2008
(c)
|
||||||||||||||||||||||||||||
Investment
securities
|
$
|
12,447
|
$
|
430
|
$
|
(1,586
|
)
|
$
|
671
|
$
|
994
|
$
|
12,956
|
$
|
7
|
||||||||||||||||||||
Derivatives
(d)(e)
|
265
|
866
|
141
|
(256
|
)
|
(13
|
)
|
1,003
|
636
|
||||||||||||||||||||||||||
Other
|
1,330
|
(157
|
)
|
(29
|
)
|
(90
|
)
|
51
|
1,105
|
(165
|
)
|
||||||||||||||||||||||||
Total
|
$
|
14,042
|
$
|
1,139
|
$
|
(1,474
|
)
|
$
|
325
|
$
|
1,032
|
$
|
15,064
|
$
|
478
|
||||||||||||||||||||
(a)
|
Earnings
effects are primarily included in the “GECS revenues from services” and
“Interest and other financial charges” captions in the Statement of
Earnings.
|
(b)
|
Transfers
in and out of Level 3 are considered to occur at the beginning of the
period. Transfers into Level 3 were a result of increased use of
non-binding broker quotes that could not be validated with other market
observable data, resulting from continued deterioration in the credit
markets.
|
(c)
|
Represented
the amount of total gains or losses for the period included in earnings
attributable to the change in unrealized gains (losses) relating to assets
and liabilities classified as Level 3 that are still held at December 31,
2008.
|
(d)
|
Earnings
from Derivatives were partially offset by $760 million in losses from
related derivatives included in Level 2 and $4 million in losses from
underlying debt obligations in qualifying fair value
hedges.
|
(e)
|
Represented
derivative assets net of derivative liabilities and included cash accruals
of $27 million not reflected in the fair value hierarchy
table.
|
2008
|
2007
|
|||||||||||||||||
Assets
(liabilities)
|
Assets
(liabilities)
|
|||||||||||||||||
December
31 (In millions)
|
Notional
amount
|
Carrying
amount
(net)
|
Estimated
fair
value
|
Notional
amount
|
Carrying
amount
(net)
|
Estimated
fair
value
|
||||||||||||
GE
|
||||||||||||||||||
Assets
|
||||||||||||||||||
Investments
and notes receivable
|
$
|
(a)
|
$
|
269
|
$
|
269
|
$
|
(a)
|
$
|
538
|
$
|
538
|
||||||
Liabilities
|
||||||||||||||||||
Borrowings
(b)
|
(a)
|
(12,202
|
)
|
(12,267
|
)
|
(a)
|
(15,762
|
)
|
(15,819
|
)
|
||||||||
GECS
|
||||||||||||||||||
Assets
|
||||||||||||||||||
Loans
|
(a)
|
305,376
|
292,797
|
(a)
|
309,623
|
307,425
|
||||||||||||
Other
commercial mortgages
|
(a)
|
1,501
|
1,427
|
(a)
|
4,891
|
4,939
|
||||||||||||
Loans
held for sale
|
(a)
|
3,640
|
3,670
|
(a)
|
3,808
|
3,809
|
||||||||||||
Other financial
instruments
(c)
|
(a)
|
2,637
|
2,810
|
(a)
|
2,764
|
3,150
|
||||||||||||
Liabilities
|
||||||||||||||||||
Borrowings
(b)(d)
|
(a)
|
(514,601
|
)
|
(504,439
|
)
|
(a)
|
(500,922
|
)
|
(503,607
|
)
|
||||||||
Investment
contract benefits
|
(a)
|
(4,212
|
)
|
(4,536
|
)
|
(a)
|
(4,536
|
)
|
(4,914
|
)
|
||||||||
Guaranteed
investment contracts
|
(a)
|
(10,828
|
)
|
(10,677
|
)
|
(a)
|
(11,705
|
)
|
(11,630
|
)
|
||||||||
Insurance – credit
life
(e)
|
1,165
|
(44
|
)
|
(31
|
)
|
1,500
|
(35
|
)
|
(24
|
)
|
||||||||
(a)
|
These
financial instruments do not have notional amounts.
|
(b)
|
See
Note 18.
|
(c)
|
Principally
cost method investments.
|
(d)
|
Included
effects of interest rate and cross-currency
derivatives.
|
(e)
|
Net
of reinsurance of $3,103 million and $2,815 million at December 31, 2008
and 2007, respectively.
|
Notional
amount
|
||||||
December
31 (In millions)
|
2008
|
2007
|
||||
Ordinary
course of business lending commitments
(a)(b)
|
$
|
8,507
|
$
|
11,731
|
||
Unused
revolving credit lines
(c)
|
||||||
Commercial
|
25,011
|
24,554
|
||||
Consumer
– principally credit cards
|
252,867
|
477,285
|
||||
(a)
|
Excluded
investment commitments of $3,501 million and $4,864 million as of December
31, 2008 and 2007, respectively.
|
(b)
|
Included
a $1,067 million secured commitment associated with an arrangement that
can increase to a maximum of $4,943 million based on the asset volume
under the arrangement.
|
(c)
|
Excluded
inventory financing arrangements, which may be withdrawn at our option, of
$14,503 million and $14,654 million as of December 31, 2008 and 2007,
respectively.
|
December
31 (In millions)
|
2008
|
2007
|
2006
|
||||||
Cash
flow hedges
|
|||||||||
Ineffectiveness
|
$
|
8
|
$
|
(3
|
)
|
$
|
10
|
||
Amounts
excluded from the measure of effectiveness
|
5
|
(17
|
)
|
(16
|
)
|
||||
Fair
value hedges
|
|||||||||
Ineffectiveness
|
(600
|
)
|
7
|
(47
|
)
|
||||
Amounts
excluded from the measure of effectiveness
|
(26
|
)
|
(13
|
)
|
33
|
Credit
rating
|
||||
Moody’s
|
S&P
|
|||
Foreign
exchange forwards and other derivatives less
|
||||
than
one year
|
P-1
|
A-1
|
||
All
derivatives between one and five years
|
Aa3
|
(a)
|
AA-
|
(a)
|
All
derivatives greater than five years
|
Aaa
|
(a)
|
AAA
|
(a)
|
(a)
|
Counterparties
that have an obligation to provide collateral to cover credit exposure in
accordance with a credit support agreement must have a minimum A3/A-
rating.
|
(In
millions)
|
||||||
Minimum
rating
|
Exposure
(a)
|
|||||
Without
|
||||||
With
collateral
|
collateral
|
|||||
Moody’s
|
S&P
|
arrangements
|
arrangements
|
|||
Aaa
|
AAA
|
$100
|
$75
|
|||
Aa3
|
AA–
|
50
|
50
|
|||
A3
|
A–
|
5
|
–
|
|||
(a)
|
For
derivatives with maturities less than one year, counterparties are
permitted to have unsecured exposure up to $150 million with a minimum
rating of A-1/P-1. Exposure to a counterparty is determined net of
collateral.
|
·
|
Securitization
entities that hold financing receivables and other financial assets. Since
they were consolidated in 2003, these assets have continued to run off;
totaled $4,000 million at December 31, 2008; and are included in
Note 12 ($5,013 million in 2007). There has been no significant
difference between the performance of these financing receivables and our
on-book receivables on a blended basis. The liabilities of these
securitization entities, which consist primarily of commercial paper,
totaled $3,868 million at December 31, 2008, and are included in Note 18
($4,834 million in 2007). Contractually the cash flows from these
financing receivables must first be used to pay down outstanding
commercial paper and interest thereon as well as other expenses of the
entity. Excess cash flows are available to GE. The creditors of these
entities have no claim on the other assets of
GE.
|
·
|
Trinity,
a group of sponsored special purpose entities, which invests in a
portfolio of mainly investment-grade investment securities using proceeds
raised from guaranteed investment contracts (GICs) it issues to investors
(principally municipalities). At December 31, 2008, these entities held
$8,190 million of investment securities, included in Note 9, and $1,002
million of cash and other assets ($11,101 million and $517 million,
respectively, at December 31, 2007). The associated guaranteed investment
contract liabilities, included in Note 19, were $10,828 million and
$11,705 million at the end of December 31, 2008 and 2007,
respectively.
|
·
|
Penske Truck Leasing Co., L.P.
(Penske), a rental truck leasing joint venture. The total consolidated
assets and liabilities of Penske at December 31, 2008, were $7,444 million
and $1,339 million, respectively, ($8,075 million and $1,482 million at
December 31, 2007, respectively). Penske’s main consolidated asset is
property, plant and equipment leased to others, included in Note 14, which
totaled $5,499 million at December 31, 2008, ($6,100 million at December
31, 2007).
There are no
recourse arrangements between GE and
Penske.
|
December
31 (In millions)
|
Equipment
|
(a)(b)
|
Commercial
real
estate
|
(b)
|
Credit
card
receivables
|
Other
assets
|
(b)
|
Total
assets
|
|||||||||
2008
|
|||||||||||||||||
Asset
amount outstanding
|
$
|
13,298
|
$
|
7,970
|
$
|
26,046
|
$
|
5,250
|
$
|
52,564
|
|||||||
Included
within the amount above
|
|||||||||||||||||
are
retained interests of:
|
|||||||||||||||||
Financing
receivables
(c)
|
339
|
–
|
3,802
|
–
|
4,141
|
||||||||||||
Investment
securities
|
747
|
222
|
4,806
|
532
|
6,307
|
||||||||||||
2007
|
|||||||||||||||||
Asset
amount outstanding
|
$
|
15,566
|
$
|
9,244
|
$
|
26,248
|
$
|
5,067
|
$
|
56,125
|
|||||||
Included
within the amount above
|
|||||||||||||||||
are
retained interests of:
|
|||||||||||||||||
Financing
receivables
(c)
|
764
|
–
|
3,455
|
–
|
4,219
|
||||||||||||
Investment
securities
|
763
|
454
|
3,922
|
535
|
5,674
|
||||||||||||
(a)
|
Includes
inventory floorplan receivables.
|
(b)
|
In
certain equipment and commercial real estate transactions entered into
prior to December 31, 2004, we provided contractual credit and liquidity
support to third parties who purchased debt in the QSPEs. We have not
entered into additional arrangements since that date. At December 31, 2008
and 2007, liquidity support amounted to $2,143 million and $2,810 million,
respectively. Credit support amounted to $2,164 million and $2,804 million
at December 31, 2008 and 2007, respectively. Liabilities with recourse
obligations related to off-balance sheet assets were $8 million and $3
million at December 31, 2008 and 2007, respectively. The maximum exposure
to loss under these obligations was $124 million and $99 million at
December 31, 2008 and 2007, respectively.
|
(c)
|
Uncertificated
sellers interests.
|
(In
millions)
|
Equipment
|
Commercial
real
estate
|
Credit
card
receivables
|
Other
assets
|
|||||||||||||
2008
|
|||||||||||||||||
Discount
rate
(a)
|
17.6
|
%
|
25.8
|
%
|
15.1
|
%
|
13.4
|
%
|
|||||||||
Effect
of
|
|||||||||||||||||
10%
adverse change
|
$
|
(15
|
)
|
$
|
(14
|
)
|
$
|
(53
|
)
|
$
|
(1
|
)
|
|||||
20%
adverse change
|
(30
|
)
|
(26
|
)
|
(105
|
)
|
(3
|
)
|
|||||||||
Prepayment
rate
(a)(b)
|
19.5
|
%
|
11.3
|
%
|
9.6
|
%
|
52.0
|
%
|
|||||||||
Effect
of
|
|||||||||||||||||
10%
adverse change
|
$
|
(2
|
)
|
$
|
(3
|
)
|
$
|
(60
|
)
|
$
|
–
|
||||||
20%
adverse change
|
(5
|
)
|
(7
|
)
|
(118
|
)
|
(1
|
)
|
|||||||||
Estimate
of credit losses
(a)
|
0.7
|
%
|
1.3
|
%
|
16.2
|
%
|
–
|
%
|
|||||||||
Effect
of
|
|||||||||||||||||
10%
adverse change
|
$
|
(5
|
)
|
$
|
(2
|
)
|
$
|
(223
|
)
|
$
|
–
|
||||||
20%
adverse change
|
(10
|
)
|
(4
|
)
|
(440
|
)
|
–
|
||||||||||
Remaining
weighted average
|
|||||||||||||||||
asset
lives (in months)
|
14
|
55
|
10
|
4
|
|||||||||||||
Net
credit losses
|
$
|
91
|
$
|
1
|
$
|
1,815
|
$
|
5
|
|||||||||
Delinquencies
|
139
|
56
|
1,833
|
80
|
|||||||||||||
2007
|
|||||||||||||||||
Discount
rate
(a)
|
13.7
|
%
|
15.2
|
%
|
14.8
|
%
|
14.9
|
%
|
|||||||||
Effect
of
|
|||||||||||||||||
10%
adverse change
|
$
|
(11
|
)
|
$
|
(20
|
)
|
$
|
(36
|
)
|
$
|
(3
|
)
|
|||||
20%
adverse change
|
(22
|
)
|
(38
|
)
|
(72
|
)
|
(6
|
)
|
|||||||||
Prepayment
rate
(a)(b)
|
16.4
|
%
|
3.4
|
%
|
10.8
|
%
|
35.1
|
%
|
|||||||||
Effect
of
|
|||||||||||||||||
10%
adverse change
|
$
|
(7
|
)
|
$
|
(5
|
)
|
$
|
(80
|
)
|
$
|
(2
|
)
|
|||||
20%
adverse change
|
(12
|
)
|
(9
|
)
|
(148
|
)
|
(4
|
)
|
|||||||||
Estimate
of credit losses
(a)
|
1.2
|
%
|
1.0
|
%
|
9.0
|
%
|
0.1
|
%
|
|||||||||
Effect
of
|
|||||||||||||||||
10%
adverse change
|
$
|
(5
|
)
|
$
|
(8
|
)
|
$
|
(110
|
)
|
$
|
(1
|
)
|
|||||
20%
adverse change
|
(9
|
)
|
(13
|
)
|
(222
|
)
|
(1
|
)
|
|||||||||
Remaining
weighted average
|
|||||||||||||||||
lives
(in months)
|
16
|
53
|
8
|
24
|
|||||||||||||
Net
credit losses
|
$
|
55
|
$
|
1
|
$
|
941
|
$
|
–
|
|||||||||
Delinquencies
|
53
|
12
|
1,514
|
27
|
|||||||||||||
(a)
|
Based
on weighted averages.
|
(b)
|
Represented
a payment rate on credit card receivables, inventory financing receivables
(included within equipment) and trade receivables (included within other
assets).
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Cash
flows on transfers
|
|||||||||
Proceeds
from new transfers
|
$
|
6,655
|
$
|
22,767
|
$
|
19,288
|
|||
Proceeds
from collections reinvested in revolving period transfers
|
70,144
|
61,625
|
46,944
|
||||||
Cash
flows on retained interests recorded as investment
securities
|
5,935
|
4,265
|
2,964
|
||||||
Effect
on GECS revenues from services
|
|||||||||
Net
gain on sale
|
$
|
1,133
|
$
|
1,805
|
$
|
1,187
|
|||
Change
in fair value on SFAS 155 retained interests
|
(113
|
)
|
(102
|
)
|
–
|
||||
Other-than-temporary
impairments
|
(330
|
)
|
(114
|
)
|
(37
|
)
|
·
|
Credit Support.
We have
provided $9,151 million of credit support on behalf of certain customers
or associated companies, predominantly joint ventures and partnerships,
using arrangements such as standby letters of credit and performance
guarantees. These arrangements enable these customers and associated
companies to execute transactions or obtain desired financing arrangements
with third parties. Should the customer or associated company fail to
perform under the terms of the transaction or financing arrangement, we
would be required to perform on their behalf. Under most such
arrangements, our guarantee is secured, usually by the asset being
purchased or financed, but possibly by certain other assets of the
customer or associated company. The length of these credit support
arrangements parallels the length of the related financing arrangements or
transactions. The liability for such credit support was $72 million for
December 31, 2008.
|
·
|
Indemnification
Agreements.
These are agreements that require us to fund up to $693
million under residual value guarantees on a variety of leased equipment.
Under most of our residual value guarantees, our commitment is secured by
the leased asset at termination of the lease. The liability for these
indemnification agreements was $332 million at December 31, 2008. We had
$1,742 million of other indemnification commitments arising primarily from
sales of businesses or assets.
|
·
|
Contingent
Consideration.
These are agreements to provide additional
consideration in a business combination to the seller if contractually
specified conditions related to the acquired entity are achieved. At
December 31, 2008, we had total maximum exposure for future estimated
payments of $118 million, of which none was earned and
payable.
|
(In
millions)
|
2008
|
2007
|
2006
|
||||||
Balance
at January 1
|
$
|
1,541
|
$
|
1,339
|
$
|
1,240
|
|||
Current-year
provisions
|
1,038
|
827
|
829
|
||||||
Expenditures
(a)
|
(917
|
)
|
(763
|
)
|
(729
|
)
|
|||
Other
changes
|
13
|
138
|
(1
|
)
|
|||||
Balance
at December 31
|
$
|
1,675
|
$
|
1,541
|
$
|
1,339
|
|||
(a)
|
Primarily
related to Technology Infrastructure and Energy
Infrastructure.
|
First
quarter
|
Second
quarter
|
Third
quarter
|
Fourth
quarter
|
|||||||||||||||||||||
(In
millions; per-share amounts in dollars)
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated
operations
|
||||||||||||||||||||||||
Earnings
from continuing operations
|
$
|
4,351
|
$
|
4,911
|
$
|
5,394
|
$
|
5,608
|
$
|
4,477
|
$
|
5,111
|
$
|
3,867
|
$
|
6,827
|
||||||||
Earnings
(loss) from discontinued operations
|
(47
|
)
|
(340
|
)
|
(322
|
)
|
(226
|
)
|
(165
|
)
|
448
|
(145
|
)
|
(131
|
)
|
|||||||||
Net
earnings
|
$
|
4,304
|
$
|
4,571
|
$
|
5,072
|
$
|
5,382
|
$
|
4,312
|
$
|
5,559
|
$
|
3,722
|
$
|
6,696
|
||||||||
Preferred
stock dividends declared
|
–
|
–
|
–
|
–
|
–
|
–
|
(75
|
)
|
–
|
|||||||||||||||
Net
earnings attributable to common
|
||||||||||||||||||||||||
shareowners
|
$
|
4,304
|
$
|
4,571
|
$
|
5,072
|
$
|
5,382
|
$
|
4,312
|
$
|
5,559
|
$
|
3,647
|
$
|
6,696
|
||||||||
Per-share
amounts – earnings from
|
||||||||||||||||||||||||
continuing
operations
|
||||||||||||||||||||||||
Diluted
earnings per share
|
$
|
0.43
|
$
|
0.48
|
$
|
0.54
|
$
|
0.54
|
$
|
0.45
|
$
|
0.50
|
$
|
0.36
|
$
|
0.68
|
||||||||
Basic
earnings per share
|
0.44
|
0.48
|
0.54
|
0.55
|
0.45
|
0.50
|
0.36
|
0.68
|
||||||||||||||||
Per-share
amounts – earnings (loss)
|
||||||||||||||||||||||||
from
discontinued operations
|
||||||||||||||||||||||||
Diluted
earnings per share
|
–
|
(0.03
|
)
|
(0.03
|
)
|
(0.02
|
)
|
(0.02
|
)
|
0.04
|
(0.01
|
)
|
(0.01
|
)
|
||||||||||
Basic
earnings per share
|
–
|
(0.03
|
)
|
(0.03
|
)
|
(0.02
|
)
|
(0.02
|
)
|
0.04
|
(0.01
|
)
|
(0.01
|
)
|
||||||||||
Per-share
amounts – net earnings
|
||||||||||||||||||||||||
Diluted
earnings per share
|
0.43
|
0.44
|
0.51
|
0.52
|
0.43
|
0.54
|
0.35
|
0.66
|
||||||||||||||||
Basic
earnings per share
|
0.43
|
0.44
|
0.51
|
0.52
|
0.43
|
0.55
|
0.35
|
0.67
|
||||||||||||||||
Selected
data
|
||||||||||||||||||||||||
GE
|
||||||||||||||||||||||||
Sales
of goods and services
|
$
|
24,186
|
$
|
21,688
|
$
|
27,846
|
$
|
24,269
|
$
|
28,868
|
$
|
24,690
|
$
|
31,114
|
$
|
29,149
|
||||||||
Gross
profit from sales
|
6,280
|
5,660
|
7,302
|
6,537
|
6,930
|
6,357
|
8,229
|
7,757
|
||||||||||||||||
GECS
|
||||||||||||||||||||||||
Total
revenues
|
18,038
|
17,409
|
19,032
|
17,170
|
18,431
|
18,066
|
15,786
|
19,291
|
||||||||||||||||
Earnings
from continuing operations
|
2,456
|
3,407
|
2,774
|
2,416
|
2,010
|
3,219
|
534
|
3,375
|
Name
|
|
Position
|
|
Age
|
|
Date
assumed
Executive
Officer
Position
|
Jeffrey
R. Immelt
|
Chairman
of the Board and Chief Executive Officer
|
52
|
January
1997
|
|||
Kathryn
A. Cassidy
|
Senior
Vice President and GE Treasurer
|
54
|
March
2003
|
|||
Pamela
Daley
|
Senior
Vice President, Corporate Business Development
|
56
|
July
2004
|
|||
Brackett
B. Denniston III
|
Senior
Vice President and General Counsel
|
61
|
February
2004
|
|||
John
Krenicki, Jr.
|
Vice
Chairman of General Electric Company; President & CEO, GE Energy
Infrastructure
|
46
|
July
2008
|
|||
John
F. Lynch
|
Senior
Vice President, Human Resources
|
56
|
January
2007
|
|||
Jamie
S. Miller
|
Vice
President, Controller and Chief Accounting Officer
|
40
|
April
2008
|
|||
Michael
A. Neal
|
Vice
Chairman of General Electric Company; Chairman, GE Capital Services,
Inc.
|
55
|
September
2002
|
|||
John
G. Rice
|
Vice
Chairman of General Electric Company; President & CEO, GE Technology
Infrastructure
|
52
|
September
1997
|
|||
Keith
S. Sherin
|
Vice
Chairman of General Electric Company and Chief Financial
Officer
|
50
|
January
1999
|
|
Statement
of Earnings for the years ended December 31, 2008, 2007 and
2006
|
|
Consolidated
Statement of Changes in Shareowners’ Equity for the years ended December
31, 2008, 2007 and 2006
|
|
Statement
of Financial Position at December 31, 2008 and
2007
|
|
Statement
of Cash Flows for the years ended December 31, 2008, 2007 and
2006
|
|
Management’s
Annual Report on Internal Control Over Financial
Reporting
|
|
Report
of Independent Registered Public Accounting
Firm
|
|
Other
financial information:
|
|
Summary
of Operating Segments
|
|
Notes
to consolidated financial
statements
|
|
Operating
segment information
|
|
Geographic
segment information
|
|
Operations
by quarter (unaudited)
|
3(a)
|
The
Certificate of Incorporation, as amended, of General Electric Company
(Incorporated by reference to Exhibit 3(a) of General Electric’s Current
Report on Form 8-K dated October 20, 2008 (Commission file number
001-00035)).
|
|
3(ii)
|
The
By-Laws, as amended, of General Electric Company (Incorporated by
reference to Exhibit 3(ii) of General Electric’s Current Report on Form
8-K dated February 11, 2009 (Commission file number
001-00035)).
|
|
4(a)
|
Amended
and Restated General Electric Capital Corporation (GECC) Standard Global
Multiple Series Indenture Provisions dated as of February 27, 1997
(Incorporated by reference to Exhibit 4(a) to GECC’s Registration
Statement on Form S-3, File No. 333-59707 (Commission file number
1-6461)).
|
|
4(b)
|
Third
Amended and Restated Indenture dated as of February 27, 1997, between GECC
and The Bank of New York, as successor trustee (Incorporated by reference
to Exhibit 4(c) to GECC’s Registration Statement on Form S-3, File No.
333-59707 (Commission file number 1-6461)).
|
|
4(c)
|
First
Supplemental Indenture dated as of May 3, 1999, supplemental to Third
Amended and Restated Indenture dated as of February 27, 1997 (Incorporated
by reference to Exhibit 4(dd) to GECC’s Post-Effective Amendment No. 1 to
Registration Statement on Form S-3, File No. 333-76479 (Commission file
number 1-6461)).
|
|
4(d)
|
Second
Supplemental Indenture dated as of July 2, 2001, supplemental to Third
Amended and Restated Indenture dated as of February 27, 1997 (Incorporated
by reference to Exhibit 4 (f) to GECC’s Post-Effective Amendment No.1 to
Registration Statement on Form S-3, File No. 333-40880 (Commission file
number 1-6461)).
|
|
4(e)
|
Third
Supplemental Indenture dated as of November 22, 2002, supplemental to
Third Amended and Restated Indenture dated as of February 27, 1997
(Incorporated by reference to Exhibit 4(cc) to GECC’s Post-Effective
Amendment No. 1 to the Registration Statement on Form S-3, File No.
333-100527 (Commission file number 1-6461)).
|
|
4(f)
|
Fourth
Supplemental Indenture dated as of August 24, 2007, supplemental to Third
Amended and Restated Indenture dated as of February 27, 1997 (Incorporated
by reference to Exhibit 4(g) to GECC’s Registration Statement on Form S-3,
File number 333-156929 (Commission file number
1-6461)).
|
|
4(g)
|
Fourth
Supplemental Indenture dated as of December 2, 2008, supplemental to Third
Amended and Restated Indenture dated as of February 27, 1997 (Incorporated
by reference to Exhibit 4(h) to GECC’s Registration Statement on Form S-3,
File number 333-156929 (Commission file number
1-6461)).
|
|
4(h)
|
Senior
Note Indenture dated as of January 1, 2003, between General Electric and
The Bank of New York, as trustee for the senior debt securities
(Incorporated by reference to Exhibit 4(a) to General Electric’s Current
Report on Form 8-K filed on January 29, 2003 (Commission file number
001-00035)).
|
|
4(i)
|
Form
of Global Medium-Term Note, Series A, Fixed Rate Registered Note
(Incorporated by reference to Exhibit 4(r) to GECC’s Registration
Statement on Form S-3, File No. 333-156929 (Commission file number
1-6461)).
|
|
4(j)
|
Form
of Global Medium-Term Note, Series A, Floating Rate Registered Note
(Incorporated by reference to Exhibit 4(s) to the GECC’s Registration
Statement on Form S-3, File No. 333-156929 (Commission file number
1-6461)).
|
|
4(k)
|
Form
of LIBOR Floating Rate Note (Incorporated by reference to Exhibit 4 of
General Electric’s Current Report on Form 8-K dated October 29, 2003
(Commission file number 001-00035)).
|
|
4(l)
|
Eighth
Amended and Restated Fiscal and Paying Agency Agreement among GECC, GE
Capital Australia Funding Pty Ltd., GE Capital European Funding, GE
Capital Canada Funding Company, GE Capital UK Funding and The Bank of New
York, as fiscal and paying agent, dated as of May 12, 2006 (Incorporated
by reference to Exhibit 4(q) to GECC’s Registration Statement on Form S-3,
File No. 333-156929 (Commission file number 1-6461)).
|
|
4(m)
|
Indenture
dated December 1, 2005, between General Electric and The Bank of New York,
as successor trustee (Incorporated by reference to Exhibit 4(a) of General
Electric’s Current Report on Form 8-K filed on December 9, 2005
(Commission file number 001-00035)).
|
|
4(n)
|
Form
of 5.250% Note due 2017 (Incorporated by referenced to Exhibit 4(b) of
General Electric’s Current Report on Form 8-K filed on December 5, 2007
(Commission file number 001-00035)).
|
||
4(o)
|
Letter
from the Senior Vice President and Chief Financial Officer of General
Electric to GECC dated September 15, 2006, with respect to returning
dividends, distributions or other payments to GECC in certain
circumstances described in the Indenture for Subordinated Debentures dated
September 1, 2006, between GECC and the Bank of New York, as successor
trustee (Incorporated by reference to Exhibit 4(c) to GECC’s
Post-Effective Amendment No. 2 to Registration Statement on Form S-3,
File No. 333-132807).
|
||
4(p)
|
Form
of Warrants issued on October 16, 2008 (Incorporated by reference to
Exhibit 3(a) of General Electric’s Current Report on Form 8-K dated
October 20, 2008 (Commission file number
001-00035)).
|
||
4(q)
|
Agreement
to furnish to the Securities and Exchange Commission upon request a copy
of instruments defining the rights of holders of certain long-term debt of
the registrant and consolidated subsidiaries.*
|
||
(10)
|
All
of the following exhibits consist of Executive Compensation Plans or
Arrangements:
|
||
(a)
|
General
Electric Incentive Compensation Plan, as amended effective July 1, 1991
(Incorporated by reference to Exhibit 10(a) to General Electric Annual
Report on Form 10-K (Commission file number 001-00035) for the fiscal year
ended December 31, 1991).
|
||
(b)
|
General
Electric Financial Planning Program, as amended through September 1993
(Incorporated by reference to Exhibit 10(h) to General Electric Annual
Report on Form 10-K (Commission file number 001-00035) for the fiscal year
ended December 31, 1993).
|
||
(c)
|
General
Electric Supplemental Life Insurance Program, as amended February 8, 1991
(Incorporated by reference to Exhibit 10(i) to General Electric Annual
Report on Form 10-K (Commission file number 001-00035) for the fiscal year
ended December 31, 1990).
|
||
(d)
|
General
Electric Directors’ Charitable Gift Plan, as amended through December 2002
(Incorporated by reference to Exhibit 10(i) to General Electric Annual
Report on Form 10-K (Commission file number 001-00035) for the fiscal year
ended December 31, 2002).
|
||
(e)
|
General
Electric Leadership Life Insurance Program, effective January 1, 1994
(Incorporated by reference to Exhibit 10(r) to General Electric Annual
Report on Form 10-K (Commission file number 001-00035) for the fiscal year
ended December 31, 1993).
|
||
(f)
|
General
Electric 1996 Stock Option Plan for Non-Employee Directors (Incorporated
by reference to Exhibit A to the General Electric Proxy Statement for its
Annual Meeting of Shareowners held on April 24, 1996 (Commission file
number 001-00035)).
|
||
(g)
|
General
Electric Supplementary Pension Plan, as amended effective January 1,
2009.*
|
||
(h)
|
General
Electric 2003 Non-Employee Director Compensation Plan, Amended and
Restated as of January 1, 2009.*
|
||
(i)
|
Amendment
to Nonqualified Deferred Compensation Plans, dated as of December 14, 2004
(Incorporated by reference to Exhibit 10(w) to the General Electric Annual
Report on Form 10-K (Commission file number 001-00035) for the fiscal year
ended December 31, 2004).
|
||
(j)
|
GE
Retirement for the Good of the Company Program, as amended effective
January 1, 2009.*
|
||
(k)
|
GE
Excess Benefits Plan, effective January 1, 2009.*
|
||
(l)
|
General
Electric 2006 Executive Deferred Salary Plan, as amended January 1,
2009.*
|
||
(m)
|
General
Electric Company 2007 Long-Term Incentive Plan (Incorporated by reference
to Exhibit 10.1 of General Electric’s Current Report on Form 8-K dated
April 27, 2007 (Commission file number 001-00035)).
|
||
(n)
|
Form
of Agreement for Stock Option Grants to Executive Officers under the
General Electric Company 2007 Long-term Incentive Plan, as amended January
1, 2009.*
|
||
(o)
|
Form
of Agreement for Annual Restricted Stock Unit Grants to Executive Officers
under the General Electric Company 2007 Long-term Incentive Plan, as
amended January 1, 2009.*
|
||
(p)
|
Form
of Agreement for Periodic Restricted Stock Unit Grants to Executive
Officers under the General Electric Company 2007 Long-term Incentive Plan
(Incorporated by reference to Exhibit 10.4 of General Electric’s Current
Report on Form 8-K dated April 27, 2007 (Commission file number
001-00035)).
|
||
(q)
|
Form
of Agreement for Long Term Performance Award Grants to Executive Officers
under the General Electric Company 2007 Long-term Incentive Plan
(Incorporated by reference to Exhibit 10.5 of General Electric’s Current
Report on Form 8-K dated April 27, 2007 (Commission file number
001-00035)).
|
||
(r)
|
Form
of Agreement for Performance Stock Unit Grants to Executive Officers under
the General Electric Company 2007 Long-term Incentive Plan (Incorporated
by reference to Exhibit 10.6 of General Electric’s Current Report on Form
8-K dated April 27, 2007 (Commission file
number 001-00035)).
|
||
(s)
|
Separation
Agreement and Release dated January 28, 2008, between General Electric and
David Nissen.*
|
||
(11)
|
Statement
re Computation of Per Share Earnings.**
|
||
12(a)
|
Computation
of Ratio of Earnings to Fixed Charges.*
|
||
12(b)
|
Computation
of Ratio of Earnings to Combined Fixed Charges and Preferred Stock
Dividends.*
|
||
(21)
|
Subsidiaries
of Registrant.*
|
||
(23)
|
Consent
of Independent Registered Public Accounting Firm.*
|
||
(24)
|
Power
of Attorney.*
|
||
31(a)
|
Certification
Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange
Act of 1934, as amended. *
|
||
31(b)
|
Certification
Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange
Act of 1934, as amended.*
|
||
(32)
|
Certification
Pursuant to 18 U.S.C. Section 1350.*
|
||
General
Electric Company
(Registrant)
|
|||
By
|
/s/
Keith S. Sherin
|
||
Keith
S. Sherin
Vice
Chairman and Chief Financial Officer
(Principal
Financial Officer)
|
Signer
|
Title
|
Date
|
|||
/s/
Keith S. Sherin
|
Principal
Financial Officer
|
February
18, 2009
|
|||
Keith
S. Sherin
Vice
Chairman and
Chief
Financial Officer
|
|||||
/s/
Jamie S. Miller
|
Principal
Accounting Officer
|
February
18, 2009
|
|||
Jamie
S. Miller
Vice
President and Controller
|
|||||
Jeffrey
R. Immelt*
|
Chairman
of the Board of Directors
(Principal
Executive Officer)
|
||||
James
I. Cash, Jr.*
|
Director
|
||||
William
M. Castell*
|
Director
|
||||
Ann
M. Fudge*
|
Director
|
||||
Claudio
X. Gonzalez*
|
Director
|
||||
Susan
Hockfield*
|
Director
|
||||
Andrea
Jung*
|
Director
|
||||
Alan
G. Lafley*
|
Director
|
||||
Robert
W. Lane*
|
Director
|
||||
Ralph
S. Larsen*
|
Director
|
||||
Rochelle
B. Lazarus*
|
Director
|
||||
James
J. Mulva*
|
Director
|
||||
Sam
Nunn*
|
Director
|
||||
Roger
S. Penske*
|
Director
|
||||
Robert
J. Swieringa*
|
Director
|
||||
Douglas
A. Warner III*
|
Director
|
||||
A
majority of the Board of Directors
|
|||||
*By
|
/s/
Michael R. McAlevey
|
||||
Michael
R. McAlevey
Attorney-in-fact
February
18, 2009
|
Kathryn
A. Cassidy
Senior
Vice President and GE Treasurer
General
Electric Company
3135
Easton Turnpike
Fairfield,
CT 06828
|
Subject:
|
General
Electric Company Annual Report on Form 10-K
for
the fiscal year ended
December 31, 2008 – File No.
001-00035
|
/s/
Kathryn A. Cassidy
|
|
Kathryn
A. Cassidy
|
|
Senior
Vice President and GE Treasurer
|
(a)
|
the
foregoing shall not apply to an Employee of a Company other than General
Electric Company which has not agreed to bear the cost of this Plan with
respect to its Employees, and
|
(b)
|
except
as provided in Section V, an Employee who retires under the optional
retirement provisions of the GE Pension Plan before the first day of the
month following attainment of age 60, or an Employee who leaves the
Service of the Company before attainment of age 60, shall not be eligible
for a Supplementary Pension under this
Plan.
|
(a)
|
Annual
Estimated Social Security Benefit - The Annual Estimated Social Security
Benefit shall mean the annual equivalent of the maximum possible Primary
Insurance Amount payable, after reduction for early retirement, as an
old-age benefit to an employee who retired at age 62 on January 1st of the
calendar year in which occurred the Employee’s actual date of retirement
or death, whichever is earlier; provided, however, that in the case of an
Employee who is a New Plan Participant on the date of his termination of
Service, age 65 shall be substituted for age 62 above. Such Annual
Estimated Social Security Benefit shall be determined by the Company in
accordance with the Federal Social Security Act in effect at the end of
the calendar year immediately preceding such January
1st.
|
(b)
|
Annual
Pension Payable under the GE Pension Plan - The Annual Pension Payable
under the GE Pension Plan shall mean the sum of (1) the total annual past
service annuity, future service annuity and Personal Pension Account
Annuity deemed to be credited to the Employee as of his date of retirement
or death, whichever is earlier, plus any additional annual amount required
to provide the minimum pension under the GE Pension Plan and (2) any
annual pension (or the annual pension equivalent of other forms of
payment) payable under any other pension plan, policy, contract, or
government program attributable to periods for which Pension Benefit
Service is granted by the Chairman of the Board or the Pension Board or is
credited by the GE Pension Plan provided the Pension Board determines such
annual pension shall be deductible from the benefit payable under this
Plan. All such amounts shall be determined before application of any
reduction factors for optional or disability retirement, for election of
any optional form of Pension at retirement, a qualified domestic relations
order(s), if any, or in connection with any other adjustment made pursuant
to the GE Pension Plan or any other pension
plan.
|
(c)
|
Annual
Retirement Income - For Employees who retire on or after July 1, 1988 or
who die in active Service on or after such date, an Employee’s Annual
Retirement Income shall mean the amount determined by multiplying 1.75% of
the Employee’s Average Annual Compensation by the number of years of
Pension Benefit Service completed by the Employee at the date of his
retirement or death, whichever is
earlier.
|
(e)
|
Compensation
- For periods after December 31, 1969, “Compensation” for the purposes of
this Plan shall mean with respect to the period in question salary
(including any deferred salary approved by the Pension Board as
compensation for purposes of this Plan)
plus:
|
|
(1)
|
for
persons then eligible for Incentive Compensation, the total amount of any
Incentive Compensation earned except to the extent such Incentive
Compensation is excluded by the Board of Directors or a committee
thereof;
|
|
(2)
|
for
persons who would then have been eligible for Incentive Compensation if
they had not been participants in a Sales Commission Plan or other
variable compensation plan, the total amount of sales commissions (or
other variable compensation
earned);
|
|
(3)
|
for
all other persons, the sales commissions and other variable compensation
earned by them but only to the extent such earnings were then included
under the GE Pension Plan;
|
(f)
|
Grandfathered
Employee - Grandfathered Employee means an Employee who did not accrue or
acquire a non-forfeitable interest in any benefits hereunder on or after
January 1, 2005.
|
(g)
|
Grandfathered
Plan Benefit - Grandfathered Plan Benefit
means:
|
|
(1)
|
in
the case of Grandfathered Employees, their entire Supplementary Pension
hereunder.
|
|
(2)
|
in
the case of Grandfathered Specified Employees, the accrued,
non-forfeitable annuity to which the Grandfathered Specified Employee
would have been entitled under this Plan if the Grandfathered Specified
Employee voluntarily terminated employment on December 31, 2004, and
received a payment of the benefits available from this Plan (A) on the
earliest possible date allowed under this Plan to receive a payment of
benefits following Separation from Service, and (B) in any payment form
permitted under the GE Pension Plan on December 31, 2004. If a
Grandfathered Specified Employee elects to receive benefits in the form of
a 75% Alternative Survivor Benefit under the principles of Section IX.10
of the GE Pension Plan, then his Grandfathered Plan Benefit with respect
to such form of distribution shall be the portion attributable to his
accrued benefit as of December 31, 2004 as determined above and based on
the methodology set forth in Section IX.10 of the GE Pension Plan for
converting benefits to this form of
distribution.
|
(h)
|
Grandfathered
Specified Employee - Grandfathered Specified Employee means a Specified
Employee determined as of December 31, 2008 who had a non-forfeitable
interest hereunder as of December 31,
2004.
|
(i)
|
Non-Grandfathered
Plan Benefit - Non-Grandfathered Plan Benefit means all of the
Supplementary Pension payable under this Plan except for the Grandfathered
Plan Benefit.
|
(j)
|
Officers
- Officers shall mean the Chairman of the Board, the Vice Chairmen, the
President, the Vice Presidents, Officer Equivalents and such other
Employees as the Committee referred to in Section IX hereof may
designate.
|
(k)
|
Pension
Benefit Service - Pension Benefit Service shall have the same meaning
herein as in the GE Pension Plan except that for periods before January 1,
1976, the term Credited Service as a full-time Employee shall also include
all Service credited under the GE Pension Plan to such Employee for any
period during which he was a full-time Employee for purposes of such GE
Pension Plan.
|
|
(1)
|
any
period of Service with the Company or an Affiliate as the Pension Board
may otherwise provide by rules and regulations issued with respect to this
Plan, and,
|
|
(2)
|
any
period of service with another employer as may be approved from time to
time by the Chairman of the Board but only to the extent that any
conditions specified in such approval have been
met.
|
(l)
|
Pension
Qualification Service - Pension Qualification Service shall have the same
meaning herein as in the GE Pension Plan except that for periods before
January 1, 1976 the term Credited Service used in determining such Pension
Qualification Service shall mean only Service for which an Employee is
credited with a past service annuity or a future service annuity under the
GE Pension Plan (plus his first year of Service where such year is
recognized as additional Credited Service under that Plan), except as the
Pension Board may otherwise provide by rules and regulations issued with
respect to this Plan.
|
(m)
|
Separation
from Service - Separation from Service means an Employee’s termination of
employment with the Company and all Affiliates (defined for purposes of
this Plan as any company or business entity in which General Electric
Company has a 50% or more interest whether or not a participating employer
in the Plan); provided that, Separation from Service for purposes of the
Plan shall be interpreted consistent with the requirements of Section 409A
and regulations and other guidance issued thereunder. For purposes of
clarity, any references in this Plan to Service in the context of
determining the time or form of benefits will not extend beyond an
Employee’s Separation from Service.
|
(n)
|
Specified
Employee - Specified Employee means a specified employee as described in
the Company’s Procedures for Determining Specified Employees under Code
Section 409A, as amended from time to
time.
|
(a)
|
The
annual Supplementary Pension payable to an eligible Employee who retires
on or after his normal retirement date within the meaning of the GE
Pension Plan shall be equal to the excess, if any, of the Employee’s
Annual Retirement Income, over the sum
of:
|
|
(1)
|
the
Employee’s Annual Pension Payable under the GE Pension
Plan;
|
|
(2)
|
½
of the Employee’s Annual Estimated Social Security
Benefit;
|
|
(3)
|
the
Employee’s annual excess benefit, if any, payable under the GE Excess
Benefit Plan; and
|
|
(4)
|
The
Employee’s annual benefit, if any, payable under the GE Executive Special
Early Retirement Option and Plant Closing Retirement Option
Plan.
|
(b)
|
The
Supplementary Pension of an Employee who continues in the Service of the
Company or an Affiliate after his normal retirement date shall not
commence before his actual retirement date following Separation from
Service, regardless of whether such Employee has attained age 70-½ and
commenced receiving his pension under the GE Pension
Plan.
|
(c)
|
Consistent
with established Company procedures, if an eligible Employee commences his
Supplementary Pension at the time set forth in Section X(a) but remains in
protected service for other purposes by reason of not also retiring under
the GE Pension Plan, his initial Supplementary Pension Plan benefit shall
be based on his service credits earned up to the commencement date of his
Supplementary Pension Plan benefit. Following the eligible Employee’s
break in protected service, the dollar amount (but not the time or form of
distribution) of the eligible Employee’s Supplementary Pension Plan
benefit shall be adjusted consistent with such procedures to take into
account any additional service credits the eligible Employee may have
earned under the GE Pension Plan and any related
offsets.
|
(a)
|
The
annual Supplementary Pension payable to an eligible Employee who,
following attainment of age 60, retires hereunder on an optional
retirement date within the meaning of Section V.1. of the GE Pension Plan
shall be computed in the manner provided by Section III(a) (for an
Employee retiring on his normal retirement date) but taking into account
only Pension Benefit Service and Average Annual Compensation to the actual
date of optional retirement. Such Supplementary Pension shall be subject
to the limitations specified in Section IX. In the event such Employee is
a New Plan Participant on the date of his termination of Service, such
Supplementary Pension, as so limited, shall be reduced to reflect
commencement before his normal retirement date by applying the methodology
provided under Section V.3. of the GE Pension Plan. Consistent with the
foregoing, such reduction shall equal 5/12% for each month from such
Employee’s optional retirement date to his normal retirement date. Said
reduction shall not be imposed, however, in the event such Employee
terminates from the Service of the Company on or after (1) attainment of
at least age 62 and (2) completion of at least 25 years of Pension
Qualification Service under the GE Pension
Plan.
|
(b)
|
The
annual Supplementary Pension payable to an eligible Employee who retires
on a Disability Pension under Section VII of the GE Pension Plan and who
qualifies as disabled by receiving income replacement benefits under a
Company plan for a period of not less than three months and otherwise
meeting the requirements under Treasury regulation section 1.409A-3(i)(4)
and regulations and other guidance issued thereunder shall first be
computed in the manner provided by Section III(a) (for an Employee
retiring on his normal retirement date) taking into account only Pension
Benefit Service and Average Annual Compensation to the actual date of
disability retirement. Such Supplementary Pension shall be subject to the
limitations specified in Section IX. Such Supplementary Pension, as so
limited, shall be reduced to reflect commencement before the Employee’s
earliest optional retirement age by applying the methodology provided
under Section VII.3. of the GE Pension Plan, subject to Section
X(a)(3)(A)(ii) below.
|
(a)
|
A
former Employee whose Service with the Company is terminated on or after
June 27, 1988, before attainment of age 60 and after completion of 25 or
more years of Pension Qualification Service who does not withdraw his
contributions from the GE Pension Plan before retirement and who meets one
of the following conditions shall be eligible for a Supplementary Pension
under this Plan commencing at the time set forth in Section
X.(a).
|
|
(1)
|
The
Employee’s Service is terminated because of a Plant
Closing.
|
|
(2)
|
The
Employee’s Service is terminated for transfer to a Successor Employer. The
conditions of this paragraph (2) shall not be satisfied, however, if the
transferred Employee retires under the GE Pension Plan before July 1, 2000
and prior to the later of (A) his termination of service with the
Successor Employer and (B) the first of the month following attainment of
age 60.
|
|
(3)
|
The
Employee’s Service terminated after one year on layoff with protected
service.
|
(b)
|
The
Supplementary Pension, if any, for Employees who meet the conditions in
Section V(a) shall be calculated in accordance with the provisions of
Section IV(a), including the imposition of the reduction described therein
to reflect a commencement date occurring before normal retirement date in
the case of Employees who are New Plan Participants on the date of their
termination of Service. For purposes of making this calculation, the
Employee’s: (1) Pension Benefit Service to the Service termination date
shall be considered; (2) Average Annual Compensation shall be based on the
last 120 completed months before such Service termination date; and (3)
Annual Estimated Social Security Benefit shall be determined as though the
Employee’s retirement date was such Service termination
date.
|
(c)
|
No
Supplementary Pension shall be payable to any former Employee who elects
to accelerate the commencement of his pension under the GE Pension Plan
under Section XI.4.b(iii) therein, nor shall any death or survivor
benefits be payable hereunder with respect to such an
Employee.
|
(d)
|
In
the event a former Employee whose service with the Company was terminated
under circumstances entitling him to a benefit pursuant to this Section V
is reemployed, such Employee will retain a non-forfeitable interest in a
benefit equal to the amount payable under this provision attributable to
such Employee’s first period of service (with the calculation of any
offsets determined in accordance with established administrative practices
and based upon assumptions in effect as of such Employee’s first
termination date). The same principle shall apply in determining the
non-forfeitable interest hereunder of similarly-situated Employees with
less than 25 years of Pension Qualification Service who, as a result of
Company action, attained a non-forfeitable interest in their Supplementary
Pension upon transfer to a successor employer and are subsequently
re-employed by the Company.
|
(a)
|
with
respect to any pre-retirement death benefit attributable to
Non-Grandfathered Plan Benefits where a Surviving Spouse otherwise would
have a choice to receive such benefit as an annuity in accordance with the
principles of Section X.9 of the GE Pension Plan (Preretirement Spouse
Benefit) or as a lump sum in accordance with the principles of either
Section X.2 (Five Year Certain (Death After Optional Retirement Age)) or
Section X.3 (Five Year Certain (Death After 15 Years Pension Qualification
Service)) of the GE Pension Plan, the lump sum value of such benefit under
each applicable paragraph shall be determined (in the case of the
Preretirement Spouse Benefit, based on the actuarial assumptions described
in paragraph 3 of Section XV of the GE Pension Plan), and then the
Surviving Spouse shall receive whichever resulting lump sum value is
larger as of the first day of the month following the Employee’s death.
For purposes of clarity, such Surviving Spouse shall not be eligible to
receive an annuity in the form of the Preretirement Spouse Benefit under
the principles of Section X.9 of the GE Pension Plan;
and
|
(b)
|
with
respect to any post-retirement death benefit attributable to
Non-Grandfathered Plan Benefits under the principles of Section X.11 of
the GE Pension Plan (Five Year Certain (No Survivor Benefit)), the
calculation of the lump sum shall be determined without making any
discount to present value. Consistent with the foregoing, such lump sum
shall equal the excess of (1) 5 times the Employee’s Supplementary Pension
payable as a single life annuity over (2) the total payments under this
Plan to the Employee.
|
(a)
|
Notwithstanding
any provision of this Plan to the contrary, if the sum
of:
|
|
(1)
|
the
Supplementary Pension otherwise payable to an Employee
hereunder;
|
|
(2)
|
the
Employee’s Annual Pension Payable under the GE Pension
Plan;
|
|
(3)
|
100%
of the Annual Estimated Social Security Benefit but before any adjustment
for less than 35 years of Pension Benefit
Service;
|
|
(4)
|
the
Employee’s annual excess benefit, if any, payable under the GE Excess
Benefit Plan; and
|
|
(5)
|
The
Employee’s annual benefit, if any, payable under the GE Executive Special
Early Retirement Option and Plant Closing Retirement Option Plan; exceeds
60% of his Average Annual Compensation (with such Supplementary Pension
and the amounts set forth in (2), (4) and (5) above determined before
imposition of any applicable reduction factor or adjustment for optional
or disability retirement, a survivor benefit or otherwise), such
Supplementary Pension (as so determined) shall be reduced by the amount of
the excess. Any further reductions or adjustments prescribed herein,
including those applicable to Employees who are New Plan Participants on
the date of their termination of Service, shall be applied against such
reduced Supplementary Pension.
|
(b)
|
Notwithstanding
any provision in this Plan (other than Section XIV(e)) to the contrary,
the amount of Supplementary Pension and any death or survivor benefit
payable to or on behalf of any Employee who is or was an Officer shall be
determined in accordance with such general rules and regulations as may be
adopted by a Committee appointed by the Board of Directors for such
purpose, subject to the limitation that any such Supplementary Pension or
death benefit may not exceed the amount which would be payable hereunder
in the absence of such rules and
regulations.
|
(a)
|
Time and Form of Payment.
This Section governs the time and form of payment of the
Supplementary Pension on and after the retirement of an eligible Employee.
See Section VII above for certain additional rules regarding Payments on
Death.
|
|
(1)
|
General Provisions.
Supplementary Pensions shall be payable in monthly installments,
each equal to 1/12th of the annual amount determined under the applicable
Section. In addition, the provisions of the GE Pension Plan with respect
to the following shall apply to amounts payable under this
Plan:
|
|
(A)
|
The
date of the last payment of any Supplementary
Pension.
|
|
(B)
|
Treatment
of amounts payable to a missing
person.
|
|
(2)
|
Grandfathered Plan Benefits.
Payment of Supplementary Pensions provided for herein which are
attributable to Grandfathered Plan Benefits shall be in the same form and
commence as of the same date as distribution is made pursuant to the
Participant’s election under the GE Pension Plan (subject to the special
rule in Section III(b) of this Plan for Employees over age
70-½).
|
|
(3)
|
Non-Grandfathered
Plan Benefits.
|
|
(A)
|
Time
of Payment.
|
|
(i)
|
Except
as provided in paragraph (ii) below (relating to disability pensions), all
payments of Non-Grandfathered Plan Benefits shall commence on the first
day of the month after the Employee’s Separation from Service or the
Employee’s attainment of age 60, if later; provided, however, that if an
Employee is a Specified Employee, payment of any Non-Grandfathered Plan
Benefit shall not be made within the first six months following the
Employee’s Separation from Service. In the event distribution to a
Specified Employee is so delayed, payment of the Non-Grandfathered Plan
Benefit shall begin on the first day of the seventh month following
Separation from Service and the first such payment shall be increased to
reflect the missed payments (with interest accumulated in accordance with
Pension Board procedures).
|
|
(ii)
|
Payment
of Supplementary Pensions attributable to disability as provided for in
Section IV(b) shall commence on the first day of the month after the
Employee’s Separation from Service; provided, however, that the Employee
shall forfeit any payments attributable to months prior to the first date
on which a Disability Pension is actually paid under Section VII of the GE
Pension Plan. For this purpose, any retroactive payments that may be made
under the GE Pension Plan shall be disregarded and no corresponding
retroactive payments shall be made hereunder. However, if retroactive
payments are made under the GE Pension Plan, the reduction factor to be
applied against the Supplementary Pension to reflect early commencement
for disability shall be based on the date as of which the first
retroactive payment, if any, is made under the GE Pension
Plan.
|
|
(B)
|
Form of Payment
. Unless
an Employee makes an effective election pursuant to paragraph (B)(i)
below, such benefits shall be paid as a 50% Survivor Benefit in accordance
with the principles of Section IX.1 and other provisions of the GE Pension
Plan applicable thereto (for Employees who are married at the time their
Supplementary Pension begins) or as a single life annuity in accordance
with the principles of Section XV, X.11 and other provisions of the GE
Pension Plan applicable thereto (for Employees who are not married at the
time their Supplementary Pension begins); provided, however,
that:
|
|
(i)
|
As
an alternative to the normal distribution forms set forth in this
paragraph (B), a married Employee may elect to receive all payments of
Non-Grandfathered Plan Benefits as a single life annuity as described
above, a 100% Alternative Survivor Benefit in accordance with the
principles of Section IX.3 and other provisions of the GE Pension Plan
applicable thereto, or a 75% Alternative Survivor Benefit in accordance
with the principles of Section IX.10 and other provisions of the GE
Pension Plan applicable thereto. In the case of a disability pension
payable under Section IV(b) above, however, the 100% Alternative Survivor
Benefit shall not be available. An election under this paragraph may not
be made more than 60 days following the date as of which payment is
otherwise to commence in accordance with paragraph (3)(A) above. For
purposes of clarity, if an Employee is a Specified Employee for whom the
Non-Grandfathered Plan Benefit is delayed in accordance with paragraph
(3)(A)(i) above, an election under this paragraph may be made anytime
within the first six months following the Employee’s Separation from
Service. If such Specified Employee dies during the six-month delay, the
Specified Employee will be treated as if he retired before death, without
regard to such delay, and commenced receiving his benefit either in
accordance with his actual election under this paragraph as to the form of
distribution, or in accordance the rules in paragraph (3)(B) above if no
such election was made before
death.
|
|
(ii)
|
Regardless
of the initial form of payment for Non-Grandfathered Plan Benefits, the
revocation feature provided in Section IX.8 of the GE Pension Plan shall
not apply to Non-Grandfathered Plan
Benefits.
|
(b)
|
Impact of Reemployment.
If an Employee is reemployed by the Company or an Affiliate, the
following provisions shall apply with respect to the determination of the
Employee’s Supplementary Pension:
|
|
(1)
|
Grandfathered Plan
Benefits
. If the Employee’s pension under the GE Pension Plan is
suspended or may not commence for any month in accordance with the
re-employment provisions of that plan, the Employee’s Supplementary
Pension attributable to Grandfathered Plan Benefits that would otherwise
be payable during such re-employment shall be forfeited under this Plan.
For this purpose, any addition to the Employee’s Supplementary Pension
which he may earn hereunder following such re-employment shall not cause
such Grandfathered Plan Benefits to be reclassified as Non-Grandfathered
Plan Benefits. Upon the Employee’s subsequent Separation from Service, the
Employee’s original distribution election, if any, with respect to such
original Grandfathered Plan Benefits shall be disregarded and such
original Grandfathered Plan Benefit (adjusted for any additional accrual
or reduction) will be paid in accordance with the terms of the Plan in
effect at the time of such subsequent Separation from Service applicable
to Non-Grandfathered Plan Benefits. If such subsequent Separation from
Service is by reason of death, any survivor or death benefits attributable
to such original Grandfathered Plan Benefits (as so adjusted) will be
determined in accordance with this Plan’s pre-retirement death and
survivor benefit provisions then applicable to Non-Grandfathered Plan
Benefits. The preceding two sentences shall not apply to Grandfathered
Specified Employees.
|
|
(2)
|
Non-Grandfathered Plan
Benefits
. If the Employee is rehired after having commenced
receiving his Supplementary Pension, and in accordance with the terms of
the GE Pension Plan, the Employee would have had his pension therefrom
suspended upon such re-employment, the Employee shall forfeit any benefits
from this Plan attributable to his Non-Grandfathered Plan Benefit that
would otherwise be payable during such re-employment. Upon the Employee’s
subsequent Separation from Service:
|
|
(A)
|
If
the Employee’s Non-Grandfathered Plan Benefit is the same or has
decreased, then:
|
|
(i)
|
the
Non-Grandfathered Plan Benefit earned during the first period of
employment will resume immediately in the same form of distribution and
with the same conversion and reduction factors that applied to the
original distribution of such
benefit;
|
|
(ii)
|
if
such original distribution form was a 50% Survivor Benefit, 75%
Alternative Survivor Benefit or 100% Alternative Survivor Benefit, any
survivor benefits will be payable only if the Surviving Spouse was married
to the Participant at the time of his original retirement;
and
|
|
(iii)
|
such
benefit will be reduced, as necessary, if the Employee’s Non-Grandfathered
Plan Benefit decreases as a result of his second period of
employment.
|
|
(B)
|
If
the Non-Grandfathered Plan Benefit payable upon such subsequent Separation
from Service has increased as a result of the Employee’s second period of
employment, then the above provisions set forth in paragraph (2)(A) will
govern the Non-Grandfathered Plan Benefit earned during the first period
of employment (as applicable), and the following will apply to any
additional Non-Grandfathered Plan
Benefit:
|
|
(i)
|
the
additional benefit amount shall be distributed separately commencing on
the first of the month following such subsequent Separation from Service
based upon the Employee’s age, marital status and the otherwise applicable
Plan terms at that time and any new distribution election made by the
Employee in accordance with Section X(a)(3) above,
and
|
|
(ii)
|
if
such subsequent Separation from Service is by reason of death, any
survivor or death benefits attributable to such additional
Non-Grandfathered Plan Benefit will be determined separately in accordance
with this Plan’s pre-retirement death and survivor benefit
provisions.
|
|
(3)
|
If
an Employee is rehired under circumstances where he previously accrued a
non-forfeitable interest in his Non-Grandfathered Plan Benefit but had not
commenced receiving such benefit prior to his reemployment, the following
shall apply:
|
|
(A)
|
Such
Employee shall forfeit the dollar amount of any Plan Benefits that would
otherwise be paid while re-employed. However, such Employee will continue
to retain an interest in the Plan (herein referred to as his “retained
interest”) equal to the original non-forfeitable amount, as determined in
accordance with Section V(d) above.
|
|
(B)
|
Such
retained interest and any additional Non-Grandfathered Plan Benefit to
which the Employee is entitled shall be payable following the Employee’s
subsequent Separation from Service at the time and in the manner provided
in Section X(a)(3). If the Employee dies before retirement, any survivor
or death benefits attributable to such retained interest will be
determined in accordance with this Plan’s pre-retirement death and
survivor benefit provisions.
|
|
(C)
|
If
the Employee continues in service after attaining age 60, the Employee’s
retained interest shall commence after his subsequent Separation from
Service at the time and in the manner provided in Section X(a)(3) and
shall be calculated using reduction and conversion factors applicable to
an age 60 commencement (but based on the spouse at actual retirement, if
any).
|
(c)
|
Beneficiary and Spousal
Consent.
An Employee’s beneficiary for the purposes of this Plan
shall be the beneficiary designated by him under the GE Pension Plan,
except in those instances where a separate beneficiary designation is in
effect under this Plan. The provisions of the GE Pension Plan with respect
to the designation or selection of a beneficiary shall apply to the
designation or selection of a beneficiary under this Plan. For purposes of
clarity, the requirement in the GE Pension Plan for a Spouse’s Consent to
the designation or selection of a beneficiary, or the election of
alternative distribution forms hereunder, shall apply under this Plan.
Notwithstanding the foregoing, in the case of Non-Grandfathered Plan
Benefits, any elections governing beneficiaries made in accordance with
Section VII(b) of this Plan, as restated July 1, 1991, or subsequent
actions of the Company related thereto, shall continue to apply. No such
elections, however, shall direct a different time or form of payment of
Non-Grandfathered Plan Benefits from the time and form of payment
prescribed under this Plan, nor shall any Employee who did not make such
an election before this restatement be permitted to submit such an
election.
|
(d)
|
With
respect to Non-Grandfathered Plan Benefits, any provision of this Section
X or other provision of this Plan that refers to the time or form of
benefits under the GE Pension Plan shall be deemed to be a reference to
the terms of the GE Pension Plan in effect on December 31,
2008.
|
(a)
|
This
Plan shall be administered by the Pension Board, which shall have
authority to make, amend, interpret and enforce all appropriate rules and
regulations for the administration of this Plan and decide or resolve in
its sole and absolute discretion any and all questions or claims,
including interpretations of this Plan, as may arise in connection with
this Plan.
|
(b)
|
In
the administration of this Plan, the Pension Board may, from time to time,
employ agents and delegate to them such administrative duties as it sees
fit and may from time to time consult with counsel who may also serve as
counsel to the Company.
|
(c)
|
The
decision or action of the Pension Board in respect of any question arising
out of or in connection with the administration, interpretation and
application of this Plan and the rules and regulations hereunder shall be
final and conclusive and binding upon all persons having any interest in
the Plan or making any claim
hereunder.
|
(a)
|
Effective
January 1, 1975, the amount of Supplementary Pension then payable to any
Employee who retired before January 1, 1975 shall be reduced by the amount
of any increase which becomes effective January 1, 1975 in the Pension
payable under the GE Pension Plan to such
Employee.
|
(b)
|
If
the Pension payable under the GE Pension Plan to any Employee is increased
following his retirement which increase becomes effective after January 1,
1975, the amount of the Supplementary Pension thereafter payable to such
Employee under this Supplementary Pension Plan shall be determined by the
Board of Directors.
|
(c)
|
Effective
November 1, 1977, if the benefit payable to a pensioner or Surviving
Spouse under the GE Pension Plan is increased in accordance with
paragraphs 25 (a), (b) or (c) of Section XIV of that Plan, the
Supplementary Pension or death benefit, if any, payable under this Plan to
such pensioner or Surviving Spouse on and after November 1, 1977 shall be
increased by the same percentage. Any such increase shall not be reduced
by the percentage limitations specified in Section
IX.
|
(d)
|
Effective
May 1, 1979, if the benefit payable to a pensioner or Surviving Spouse
under the GE Pension Plan is increased by a percentage in accordance with
paragraphs 26 (a), (b) or (c) of Section XIV of that Plan, or would have
been increased by a percentage in accordance with such paragraphs except
for the fact that such pensioner or Surviving Spouse received a lump-sum
settlement under the GE Pension Plan, the Supplementary Pension or death
benefit, if any, payable under this Plan to such pensioner or Surviving
Spouse on and after May 1, 1979 shall be increased by the same percentage.
Any such increase shall not be reduced by the percentage limitations
specified in Section IX.
|
(e)
|
If
the Pension benefit or Service credits under the GE Pension Plan are
increased for a retired employee in accordance with paragraph 27 or 28 of
Section XIV of that Plan, or in accordance with the opportunity made
available under that Plan effective January 1, 1980 to make up Employee
contributions plus interest for periods during which the Employee was
otherwise eligible but failed to participate because of late enrollment or
voluntary suspension, the Supplementary Pension payable to the Employee
under this Plan shall be recalculated to take any such increase into
account. For this purpose, Section III of this Plan as amended effective
July 1, 1979 shall apply. Any change in the Employee’s Supplementary
Pension shall take effect on the same date as the corresponding change
under the GE Pension Plan.
|
(f)
|
Effective
February 1, 1981, if the benefit payable to a pensioner or Surviving
Spouse under the GE Pension Plan is increased by a percentage in
accordance with paragraphs 29 (a), (b) or (c) of Section XIV of that Plan,
or would have been increased by a percentage in accordance with such
paragraphs except for the fact that such pensioner or Surviving Spouse
received a lump sum settlement under the GE Pension Plan, the
Supplementary Pension or death benefit, if any, payable under this Plan to
such pensioner or Surviving Spouse on and after February 1, 1981 shall be
increased by the same percentage. Any such increase shall not be reduced
by the percentage limitations specified in Section
IX.
|
(g)
|
Effective
January 1, 1983, if the benefit payable to a pensioner under the GE
Pension Plan is increased in accordance with paragraph 30 of Section XIV
of that Plan, the Supplementary Pension payable to the pensioner under
this Plan shall be recalculated to take any such increase into account.
Any change in the Supplementary Pension shall take effect on the same date
as the corresponding change under the GE Pension
Plan.
|
(h)
|
Effective
December 1, 1984, if the benefit payable to a pensioner or Surviving
Spouse under the GE Pension Plan is increased by a percentage in
accordance with paragraph 32 (a), (b) or (c) of Section XIV of that Plan,
or would have been increased by a percentage in accordance with such
paragraphs except for the fact that such pensioner or Surviving Spouse
received a lump-sum settlement under the GE Pension Plan, the
Supplementary Pension or death benefit, if any, payable under this Plan to
such pensioner or Surviving Spouse on and after December 1, 1984, shall be
increased by the same percentage. Any such increase shall not be reduced
by the percentage limitations specified in Section
IX.
|
(i)
|
Effective
July 1, 1985, if the benefit payable to a pensioner under the GE Pension
Plan is increased in accordance with paragraph 34 of Section XIV of that
Plan, the Supplementary Pension payable to the pensioner under this Plan
shall be recalculated to take any such increase into account. Any change
in the Supplementary Pension shall take effect on the same date as the
corresponding change under the GE Pension
Plan.
|
(j)
|
Effective
January 1, 1988, if the benefit payable to a pensioner or Surviving Spouse
under the GE Pension Plan is increased by a percentage in accordance with
paragraph 35 of Section XIV of that Plan, or would have been increased by
a percentage in accordance with such paragraph except for the fact that
such pensioner or Surviving Spouse received a lump sum settlement under
the GE Pension Plan, the Supplementary Pension or death benefit, if any,
payable under this Plan to such pensioner or Surviving Spouse on and after
January 1, 1988 shall be increased by the same percentage. Any such
increase shall not be reduced by the percentage limitations specified in
Section IX.
|
(k)
|
Effective
July 1, 1988, if the benefit payable to a pensioner under the GE Pension
Plan or the GE Excess Benefit Plan is increased as a result of paragraph
36 of Section XIV of the GE Pension Plan, the Supplementary Pension
payable to the pensioner under this Plan shall be recalculated to take any
such increase into account. Any change in the Supplementary Pension shall
take effect on the same date as the corresponding increase under the GE
Pension Plan or GE Excess Benefit
Plan.
|
(l)
|
Effective
July 1, 1991, if the benefit payable to a pensioner or Surviving Spouse
under the GE Pension Plan is increased by a percentage in accordance with
paragraph 37 of Section XIV of that Plan, or would have been increased by
a percentage in accordance with such paragraph except for the fact that
such pensioner or Surviving Spouse received a lump sum settlement under
the GE Pension Plan, the Supplementary Pension or death benefit, if any,
payable under this Plan to such pensioner or Surviving Spouse on and after
January 1, 1991 shall be increased by the same percentage. Any such
increase shall not be reduced by the percentage limitations specified in
Section IX.
|
(m)
|
Effective
December 1, 1991, if the benefit payable to a pensioner under the GE
Pension Plan, the GE Excess Benefit Plan or GE Executive Special Early
Retirement Option and Plant Closing Retirement Option Plan is increased as
a result of paragraph 38 of Section XIV of the GE Pension Plan, the
Supplementary Pension payable to the pensioner under this Plan shall be
recalculated to take any such increase into account. Any change in the
Supplementary Pension shall take effect on the same date as the
corresponding increase under the GE Pension Plan, GE Excess Benefit Plan
or GE Executive Special Early Retirement Option and Plant Closing
Retirement Option Plan.
|
(n)
|
Effective
December 1, 1994, if the benefit payable to a pensioner under the GE
Pension Plan, the GE Excess Benefit Plan or the GE Executive Special Early
Retirement Option and Plant Closing Retirement Option Plan is increased as
a result of paragraph 39 of Section XIV of the GE Pension Plan, the
Supplementary Pension payable to the pensioner under this Plan shall be
recalculated to take any such increase into account. Any change in the
Supplementary Pension shall take effect on the same date as the
corresponding increase under the GE Pension Plan, GE Excess Benefit Plan
or GE Executive Special Early Retirement Option and Plant Closing
Retirement Option Plan.
|
(o)
|
Effective
November 1, 1996, if the benefit payable under the GE Pension Plan or the
GE Excess Benefit Plan is increased as a result of paragraph 47, 48 or 49
of Section XIV of the GE Pension Plan, said increase shall be disregarded
for purposes of calculating the amount payable under this
Plan.
|
(p)
|
Effective
December 1, 1997, if the benefit payable to a pensioner under the GE
Pension Plan, the GE Excess Benefit Plan or the GE Executive Special Early
Retirement Option and Plant Closing Retirement Option Plan is increased as
a result of paragraph 51 of Section XIV of the GE Pension Plan, the
Supplementary Pension payable to the pensioner under this Plan shall be
recalculated to take any such increase into account. Any change in the
Supplementary Pension shall take effect on the same date as the
corresponding increase under the GE Pension Plan, GE Excess Benefit Plan
or GE Executive Special Early Retirement Option and Plant Closing
Retirement Option Plan.
|
(q)
|
Effective
May 1, 2000, if the benefit payable under the GE Pension Plan or the GE
Excess Benefit Plan is increased as a result of paragraph 54, 55 or 56 of
Section XIV of the GE Pension Plan, said increase shall be disregarded for
purposes of calculating the amount payable under this
Plan.
|
(r)
|
Effective
December 1, 2000, if the benefit payable to a pensioner under the GE
Pension Plan, the GE Excess Benefit Plan or the GE Executive Special Early
Retirement Option and Plant Closing Retirement Option Plan is increased as
a result of paragraph 58 of Section XIV of the GE Pension Plan, the
Supplementary Pension payable to the pensioner under this Plan shall be
recalculated to take any such increase into account. Any change in the
Supplementary Pension shall take effect on the same date as the
corresponding increase under the GE Pension Plan, GE Excess Benefit Plan
or GE Executive Special Early Retirement Option and Plant Closing
Retirement Option Plan.
|
(s)
|
Effective
December 1, 2003, if the benefit payable to a pensioner under the GE
Pension Plan, the GE Excess Benefit Plan or the GE Executive Special Early
Retirement Option and Plant Closing Retirement Option Plan is increased as
a result of paragraph 67 of Section XIV of the GE Pension Plan, the
Supplementary Pension payable to the pensioner under this Plan shall be
recalculated to take any such increase into account. Any change in the
Supplementary Pension shall take effect on the same date as the
corresponding increase under the GE Pension Plan, GE Excess Benefit Plan
or GE Executive Special Early Retirement Option and Plant Closing
Retirement Option Plan.
|
(t)
|
Effective
December 1, 2007, if the benefit payable to a pensioner under the GE
Pension Plan, the GE Excess Benefit Plan or the GE Executive Special Early
Retirement Option and Plant Closing Retirement Option Plan is increased as
a result of paragraph 70 of Section XIV of the GE Pension Plan, the
Supplementary Pension payable to the pensioner under this Plan shall be
recalculated to take any such increase into account. Any change in the
Supplementary Pension shall take effect on the same date as the
corresponding increase under the GE Pension Plan, GE Excess Benefit Plan
or GE Executive Special Early Retirement Option and Plant Closing
Retirement Option Plan.
|
(a)
|
No
interest of an Employee, retired employee (whether retired before or after
July 1, 1973), Surviving Spouse or beneficiary under this Plan and no
benefit payable hereunder shall be assigned as security for a loan, and
any such purported assignment shall be null, void and of no effect, nor
shall any such interest or any such benefit be subject in any manner,
either voluntarily or involuntarily, to anticipation, sale, transfer,
assignment or encumbrance by or through an Employee, retired employee,
Surviving Spouse or beneficiary. If any attempt is made to alienate,
pledge or charge any such interest or any such benefit for any debt,
liabilities in tort or contract, or otherwise, of any Employee, retired
employee, Surviving Spouse, or beneficiary, contrary to the prohibitions
of the preceding sentence, then the Pension Board in its discretion may
suspend or forfeit the interests of such person and during the period of
such suspension, or in case of forfeiture, the Pension Board shall hold
such interest for the benefit of, or shall make the benefit payments to
which such person would otherwise be entitled (in the same time and form)
to the designated beneficiary or to some member of such Employee’s,
retired employee’s, Surviving Spouse’s or beneficiary’s family to be
selected in the discretion of the Pension Board. Similarly, in cases of
misconduct, incapacity or disability, the Pension Board, in its sole
discretion, may make payments (in the same time and form) to some member
of the family of any of the foregoing to be selected by it or to
whomsoever it may determine is best fitted to receive or administer such
payments.
|
(b)
|
In
connection with an allowance granted under the GE Retirement for the Good
of the Company Program, and in accordance with the terms of that program,
the Company, in its discretion, may decide to provide an Employee with a
non-forfeitable interest in all or a portion of his Supplementary Pension
under this Plan.
|
(c)
|
No
Employee and no other person shall have any legal or equitable rights or
interest in this Plan that are not expressly granted in this Plan.
Participation in this Plan does not give any person any right to be
retained in the Service of his employer. The right and power of the
Company to dismiss or discharge any Employee is expressly
reserved.
|
(d)
|
Except
to the extent that the same are governed by the federal law (including
Section 409A of the Code), the law of the State of New York shall govern
the construction and administration of this
Plan.
|
(e)
|
The
rights under this Plan of an Employee who leaves the Service of the
Company at any time and the rights of anyone entitled to receive any
payments under the Plan by reason of the death of such Employee, shall be
governed by the provisions of the Plan in effect on the date such Employee
leaves the Service of the Company, except as otherwise specifically
provided in this Plan; provided, however, that with respect to
Non-Grandfathered Plan Benefits:
|
|
(1)
|
Any
Employee who left the Service of the Company on or after January 1, 2005
and prior to January 1, 2009 and commenced receipt of such benefits before
January 1, 2009 shall not be eligible to select the revocation feature
provided in Section IX.8 of the GE Pension
Plan.
|
|
(2)
|
Any
Employee who left the Service of the Company on or after January 1, 2005
and prior to January 1, 2009 and did not commence receipt of such benefits
before January 1, 2009 (or anyone entitled to receive any payments under
the Plan by reason of the death of such Employee who did not commence
receipt of such payments before January 1, 2009) shall have the time and
form of payment of such benefits determined under the terms contained
herein.
|
(f)
|
This
Plan is intended to comply with Section 409A of the Code with respect to
amounts accrued after December 31, 2004 and amounts that were accrued but
forfeitable on that date. In addition, if an Employee accrues benefits
hereunder on or after January 1, 2005, the Plan is intended to comply with
the requirements of Section 409A of the Code with respect to all of such
Employee’s benefits hereunder; provided, however, that in the case of
Grandfathered Specified Employees, the requirements of Section 409A of the
Code shall only apply for amounts accrued in excess of Grandfathered Plan
Benefits. The Plan shall be administered and interpreted in a manner
consistent with such intent.
|
(a)
|
At any time
before the end of the calendar year in which Board service terminates, a
Director may elect to have the DSU Account paid: (i) in a lump sum on the
First Anniversary Date (or as soon thereafter as practicable); or (ii) in
up to ten (10) annual installments, beginning on July 15
th
following the First Anniversary Date (or as soon thereafter as is
practical).
|
(b)
|
In the event
that a Director’s service on the Board terminates as a result of death,
the beneficiary(s) designated by the Director (or failing such
designation, the Director’s estate), may elect to have the Director’s DSU
Account: (i) paid out in a lump sum as soon as practicable following the
Director’s death; or (ii) paid out in annual installments up to an
aggregate of ten (10) annual installments, commencing in the month of July
following the Director’s death. In the event of a Director’s death
subsequent to termination of Board service, but prior to receiving all
entitled deferred payments, the beneficiary(s) designated by the Director
(or failing such designation, the Director’s estate), may elect to have
the Director’s DSU Account paid out in a lump sum as soon as practicable
following the Director’s death.
|
(a)
|
For amounts
credited to the Director’s DSU account after December 31, 2004, the
amounts shall be paid in accordance with the irrevocable election of the
Director (lump sum, five year installments or ten year installments) made
prior to the beginning of the calendar year of his or her annual election
to the Board (or, for a Director serving his or her initial term, made
within 30 days of his or her election to the Board).Installment payments
shall begin on July 15th following the First Anniversary
Date. Lump sum payments shall be made on the First Anniversary
Date.
|
(b)
|
If a
Director’s service on the Board terminates as a result of death payments
shall be made upon the Director’s death in the form elected by the
Director to the beneficiary(s) designated by the Director (or failing such
designation, to the Director’s
estate).
|
(c)
|
In the event
of a Director’s death subsequent to termination of Board service but prior
to receiving all entitled deferred payments, payments shall be continue to
be made in the form elected by the Director to the beneficiary(s)
designated by the Director (or failing such designation, to the Director’s
estate).
|
(a)
|
Regardless of
whether the Director has elected to convert DSUs to cash value under
section D above, all payouts of a Director’s DSU Account will be paid in
cash.
|
(b)
|
The amount of
the first cash installment payment shall be a fraction of the value of the
DSUs in the Director's DSU Account on the date of the initial installment
payment, the numerator of which is one and the denominator of which is the
total number of installments elected. Each subsequent installment shall be
calculated in the same manner as of the date of that installment payment,
except
that the denominator shall be reduced by the number of
installments which have been previously
paid.
|
(c)
|
The value of
DSUs in a Director's DSU Account will be determined for purposes of the
preceding section by multiplying the number of DSUs in the Director's DSU
Account on the Payment Date by the average of the closing market price of
the Company's common stock as reported on the Consolidated Tape of New
York Stock Exchange listed shares for the 20 trading days immediately
preceding such date.
|
1.
|
An employee
may be granted an allowance if:
|
|
(a)
|
(i)
|
On the date
of termination of the employee’s service, the employee is at least fifty
years of age and has a total of at least twenty years of pension benefit
service or similar pension service under the pension plans of the Company
and its affiliates and subsidiaries, or if the employee is a company
pilot, the employee is at least forty-five years of age, and has a total
of at least fifteen years of such pension service;
and
|
|
(ii)
|
The
employee’s salary on the January 1 of the calendar year in which service
is terminated was no lower than the position rate in effect for the GE
Executive Band on the January 1 of the calendar year prior to the year in
which service is terminated;
|
|
(b)
|
In the
judgment of the employee’s manager, it is no longer appropriate to retain
the employee in his present position, no appropriate reassignment of the
employee elsewhere in the Company is practicable and a termination of the
employee’s service with the Company under the terms and conditions of this
program would be in the best interests of the
Company;
|
|
(c)
|
The employee
elects optional retirement under the GE Pension Plan to begin on the first
of the month following attainment of age
60;
|
|
(d)
|
The employee
agrees not to withdraw his contributions plus interest credited thereon as
permitted by the provisions of Section XI.2 of the GE Pension Plan;
and
|
|
(e)
|
The employee
agrees not to elect to accelerate the commencement of his pension under
Section XI.4.b.(iii) of the GE Pension
Plan.
|
2.
|
Any allowance
granted under this program shall be granted in the form of either a
retirement allowance or a termination allowance. An employee
granted a retirement allowance shall be eligible for those benefits under
the Company’s employee benefit plans that apply to a similarly-situated
employee who retires directly from the service of the
Company. An employee granted a termination allowance shall be
eligible for those benefits under the Company’s employee benefit plans
that apply in accordance with established Company
practices.
|
|
In any event,
the annual amount of an allowance shall not exceed the sum
of:
|
|
(a)
|
The annual
amount that would have been payable as the employee’s pension under the
terms and conditions of the GE Pension Plan if the employee at the time of
termination of service had attained age 60 and retired under the
provisions of Section V of the GE Pension Plan, the future service annuity
portion of such pension to be calculated on the basis of the employee’s
actual compensation, pension benefit service and contributions to the date
of termination of service;
|
|
(b)
|
An amount
equal to the sum of (1) the supplemental payment under Section VI.3 of the
GE Pension Plan based on the employee’s pension benefit service to the
date of termination of the employee’s service, plus (2) the special
supplemental payment under Section VI.6 of the GE Pension Plan;
and
|
|
(c)
|
The amount
that would have been payable as the employee’s supplementary pension upon
optional retirement under the terms and conditions of the GE Supplementary
Pension Plan as if the employee at the time of termination of service had
attained age 60 and retired, taking into account only pension benefit
service and average annual compensation to the date of termination of
service.
|
3.
|
The
employee’s manager shall recommend the amount of the allowance, whether it
shall be an immediate or deferred allowance and whether the allowance
shall be in the form of a retirement allowance or a termination allowance,
taking into account the employee’s age, length of service, contributions
to the Company, the likelihood of the employee being able to obtain other
employment, and such other factors as such manager may consider
relevant.
|
|
A
determination to grant an allowance under this program shall be based on a
written statement recommending the amount and the terms of the allowance
consistent with this program and stating the facts and considerations upon
which it is made; it shall be signed by the employee’s manager and shall
be endorsed by such manager’s immediate superior and by the appropriate
officer reporting directly to the Corporate Executive Office; provided
that allowances to the employees who are Senior Vice Presidents or above
shall be endorsed by the Management Development and Compensation Committee
of the Board of Directors. The Chairman of the Board or his
delegate shall act on the
recommendation.
|
4.
|
The
allowance, which shall be paid from funds of the Company, shall be paid
monthly commencing at the time prescribed by the individual agreement with
the employee. Subject to Paragraph (b) below, immediate
allowances may be scheduled to commence with the first of the month
following the month in which the employee’s Separation from Service occurs
and deferred allowances may be scheduled to commence the first of any
month thereafter.
|
|
(a)
|
“Separation
from Service” means an employee’s termination of employment with the
Company and all Affiliates (defined for purposes of this program as any
company or business entity in which General Electric Company has a 50% or
more interest whether or not a participating employer in this program);
provided that, Separation from Service for purposes of this program shall
be interpreted consistent with the requirements of Code Section 409A and
regulations and other guidance issued thereunder. For purposes
of clarity, any references in this program to service in the context of
determining the time or form of benefits will not extend beyond an
employee’s Separation from Service.
|
|
(b)
|
Notwithstanding
any other provision of this program to the contrary, if an employee is a
Specified Employee, payment of any allowance shall not be made within the
first six months following the employee’s Separation from
Service. In the event distribution to a Specified Employee is
so delayed, payment of benefits hereunder shall begin on the first day of
the seventh month following Separation from Service and the first such
payment may be increased to reflect the missed payments (with interest
accumulated in accordance with Pension Board
procedures). “Specified Employee” means a specified employee as
described in the Company’s Procedures for Determining Specified Employees
under Code Section 409A, as amended from time to
time.
|
5.
|
An employee
granted a retirement or termination allowance who is married at the time
the allowance begins shall receive a reduced allowance in order to provide
for a continuation of payments (other than the portion of the allowance
representing amounts described in Paragraph 2(b)) to the employee’s spouse
after the employee’s death, if such death occurs prior to age 60, subject
to the following conditions:
|
|
(a)
|
That portion
of a retirement or termination allowance representing the amounts
described in Paragraphs 2(a) and 2(c) shall be reduced and payable as a
50% Survivor Benefit in accordance with the principles of Section IX.1
(disregarding the calculations in the fourth paragraph therein for
retirement as of the first day of the month following the attainment of
age 59, or as of an earlier date) and Section IX.2 of the GE Pension Plan
applicable thereto; provided, however,
that
|
|
(i)
|
the
revocation feature provided in Section IX.8 of the GE Pension Plan shall
not apply to the payment of any benefits
hereunder;
|
|
(ii)
|
payment to
the surviving spouse shall be equal to one half of the reduced allowance
that would have been payable to the employee had the employee survived,
including any increase in such allowance that was scheduled to take effect
at the employee’s age 60;
|
|
(iii)
|
if the
employee’s death occurs prior to age 60, then payment of such allowance to
the employee’s surviving spouse shall be further reduced by the amount
available in the form of a monthly annuity as a preretirement spouse
annuity payable under the GE Pension Plan with such reduction occurring
beginning on the earliest date such annuity is so payable regardless of
whether such annuity commenced on such
date;
|
|
(iv)
|
upon the
death of the employee, the portion of the allowance representing the
amount described in Paragraph 2(b) shall be discontinued at the end of the
month in which such death occurs;
and
|
|
(v)
|
In no event
shall any further payments of allowance be made to any persons after the
death of both the employee and the person who is his spouse for purposes
of the survivor benefit. No five-year certain feature shall be
available under this Paragraph 5.
|
|
(vi)
|
The spouse of
a married employee shall not be eligible for any allowance payments after
the employee’s death pursuant to this Paragraph 5 if such death occurs
after attainment of age 60.
|
|
(b)
|
No benefits
shall be payable under this Paragraph 5 in the case of a waiver of the
survivor benefit as described in Paragraph
6.
|
6.
|
The
individual agreement with the employee may prescribe that the portion of
the retirement or termination allowance representing the amounts described
in Paragraphs 2(a) and 2(c) shall be payable instead without any
survivorship benefit. In such circumstances, there shall be no
reduction in the allowance to reflect any survivor benefits and no amounts
shall be payable after the employee’s death, even if he is survived by a
spouse. This Paragraph 6 shall apply in all cases to employees
who are not married at the time the allowance begins. If the
employee is married at the time the allowance begins, spousal consent to
the waiver of the survivor benefit is required for this Paragraph 6 to
apply. No five-year certain feature shall be available under
this Paragraph 6.
|
7.
|
Any allowance
shall be paid in accordance with the terms set forth in the written
agreement with the employee consistent with this
program. However, any such
allowance:
|
|
(a)
|
may be
terminated at any time by the Management Development and Compensation
Committee if the Committee in its sole discretion determines that the
employee or, after the death of the employee, the employee’s surviving
spouse, has acted or is acting in any way inimical to the interests of the
Company;
|
|
(b)
|
shall
terminate at the end of the month in which the employee withdraws his
contributions to the GE Pension Plan plus interest credited thereon or
elects to accelerate the commencement of his pension under Section
Xl.4.b.(iii) of the GE Pension
Plan;
|
|
(c)
|
shall
terminate at the end of the month in which the employee’s death occurs, if
prior to age 60 unless a survivor benefit is payable in accordance with
Paragraph 5;
|
|
(d)
|
shall
terminate at the end of the month in which the employee attains age 60,
except that the portion of the allowance representing the amount described
in Paragraph 2(b) may be paid until the employee attains the Age of
Eligibility for Social Security Benefits (currently age 62) or, if Section
VI.8. of the GE Pension Plan is in effect, his Age of Eligibility for 80%
Social Security Benefits within the meaning of such provision, or until
the employee dies, whichever first
occurs.
|
8.
|
In
conjunction with the allowances granted under this program, the Company,
in its discretion, also may decide to provide the employee with a
non-forfeitable interest in all or a portion of his accrued benefit
payable after the attainment of age 60 under the GE Supplementary Pension
Plan as described in Paragraph 2(c). Upon such action, such
non-forfeitable benefit shall be payable pursuant to the time, form and
manner of payment of benefits prescribed by the GE Supplementary Pension
Plan; provided, however, that the principles of Paragraphs 7(a), 10 and 13
of this program shall apply to such non-forfeitable benefit under the GE
Supplementary Pension Plan. This Paragraph 8 shall be the sole
means by which the amount described in Paragraph 2(c) shall be payable to
any participant granted a deferred allowance that is to begin after the
attainment of age 60.
|
|
(a)
|
If a former
employee entitled to a deferred allowance who is granted a non-forfeitable
interest in accordance with this Paragraph 8 dies before such benefit
commences under the GE Supplementary Pension Plan and a preretirement
survivor annuity is payable to the surviving spouse of the employee under
the GE Pension Plan, a preretirement survivor annuity may also be payable
to such surviving spouse under the GE Supplementary Pension Plan based
upon the employee’s vested supplementary pension. Any such
preretirement survivor annuity shall be computed and paid in the same
manner as such death benefit is payable in accordance with the principles
of Section VII of the GE Supplementary Pension
Plan.
|
|
(b)
|
This
Paragraph 8 shall not apply in the case of allowances granted in
conjunction with the payment of the Special Early Retirement Option or
Plant Closing Pension Option under the GE Pension Plan as described in
Paragraph 9.
|
9.
|
Notwithstanding
any provision of the program to the contrary concerning the form in which
an allowance will be distributed (including applicable survivor or death
benefits), if an allowance described in Paragraph 2(c) is granted in
conjunction with the payment of the Special Early Retirement Option or
Plant Closing Pension Option under the GE Pension Plan, then such
allowance shall be payable in the same form and subject to at least the
same reduction factors as the pension is paid under the GE Pension Plan;
provided, however, that in the case of any differences between such form
of distribution (including associated survivor and death benefits) under
the GE Pension Plan and the GE Supplementary Pension Plan, the principles
of the GE Supplementary Pension Plan shall
govern.
|
10.
|
Any allowance
payable under this program (or the granting of a non-forfeitable interest
under the GE Supplementary Pension Plan pursuant to this program) shall
terminate upon the employee’s reemployment by General Electric Company or
any of its affiliates or subsidiaries, and no benefit shall be payable
under this program (or under the GE Supplementary Pension Plan) in the
absence of the employee again qualifying for a benefit under such program
or plan for independent reasons.
|
11.
|
For purposes
of this program, the terms “spouse” and “surviving spouse” shall have the
same meanings as under Section XXVI of the GE Pension
Plan.
|
12.
|
Except as to
withholding of any tax under the laws of the United States or any state or
locality, no benefit payable at any time hereunder shall be subject in any
manner to alienation, sale, transfer, assignment, pledge, attachment or
other legal process, or encumbrance of any kind. Any attempt to
alienate, sell, transfer, assign, pledge or otherwise encumber any such
benefit, whether currently or thereafter payable hereunder, shall be
void.
|
13.
|
Any or all
allowances granted under this program may be amended, reduced, suspended,
or terminated by the Board of Directors in its discretion. Any
such amendment, reduction, suspension or termination shall comply with the
restrictions of Section 409A of the Code, to the extent
applicable. No such amendment, reduction, suspension or
termination may accelerate a scheduled payment of benefits hereunder, nor
may any such amendment, reduction, suspension or termination permit a
subsequent deferral of benefits
hereunder.
|
14.
|
The rights
under this program of an employee who leaves the service of the Company at
any time and the rights of anyone entitled to receive any payments under
this program by reason of the death of such employee, shall be governed by
the provisions of this program in effect on the date such employee leaves
the service of the Company, except as otherwise specifically provided in
this program. Notwithstanding the
foregoing,
|
|
(a)
|
any employee
who left the service of the Company on or after January 1, 2005 and prior
to January 1, 2009 and commenced receipt of such benefits before January
1, 2009 shall be subject to Paragraph 4(b) if such employee is a Specified
Employee, and shall not be eligible to select the revocation feature as
described in Section IX.8 of the GE Pension
Plan,
|
|
(b)
|
any employee
who left the service of the Company on or after January 1, 2005 and prior
to January 1, 2009 and did not commence receipt of such payments before
January 1, 2009 (and anyone entitled to receive any payments under the
program by reason of the death of such employee who did not commence
receipt of such payments before January 1, 2009) shall have the time and
form of payment of such benefits determined under the terms contained
herein, and
|
|
(c)
|
the
provisions of Paragraph 8 shall apply on and after January 1, 2009 to
employees described in Paragraphs (a) or (b) who, as of January 1, 2009,
had not yet received any allowance after the attainment of age
60.
|
15.
|
Except to the
extent that the same are governed by the federal law (including Section
409A of the Code), the law of the State of New York shall govern the
construction and administration of this
program.
|
16.
|
This program
is intended to comply with Section 409A of the Code with respect to
amounts accrued after December 31, 2004 and any amounts that were accrued
but forfeitable on that date. In addition, if an employee
accrues benefits hereunder on or after January 1, 2005, this program is
intended to comply with the requirements of Section 409A of the Code with
respect to all of such employee’s benefits hereunder. This program
(including any individual agreements issues pursuant to this program)
shall be administered and interpreted in a manner consistent with such
intent.
|
|
1.
|
The amount of
the Excess Benefit payable under this Plan to an Employee, Surviving
Spouse or beneficiary shall be based upon the excess (if any)
of:
|
|
a.
|
the Pension,
survivor benefit or death benefit that the Employee, Surviving Spouse or
beneficiary would have received under the GE Pension Plan as a result of
the retirement or death of the Employee but for the limitations on such
benefit imposed by the GE Pension Plan pursuant to Section 415 of the
Code, over
|
|
b.
|
the Pension,
survivor benefit or death benefit that the Employee, Surviving Spouse or
beneficiary receives under the GE Pension
Plan.
|
|
2.
|
Consistent
with established Company procedures, if an eligible Employee commences his
Excess Benefits at the time set forth in Section III but remains in
protected service for other purposes, his initial Excess Benefits shall be
based on his service credits earned up to the commencement date of his
Excess Benefits. Following the eligible Employee’s break in protected
service, the dollar amount (but not the form, time or manner of
distribution) of the eligible Employee’s Excess Benefits shall be adjusted
consistent with such procedures to take into account any additional
service credits the eligible Employee may have earned under the GE Pension
Plan and any related offsets.
|
|
3.
|
Notwithstanding
any provision of the Plan to the contrary, in no event will any benefits
be payable hereunder as a result of the exclusion from the definition of
Compensation in the GE Pension Plan of Incentive Compensation, commissions
and similar variable compensation paid after the end of the calendar year
in which the Employee’s Service terminates pursuant to the last sentence
of the first paragraph of the definition of “Compensation” set forth in
Section XXVI therein.
|
|
1.
|
All Excess
Benefits provided for hereunder which are Grandfathered Plan Benefits
shall be paid in the same form, time and manner as the benefits payable to
such Employee, Surviving Spouse or beneficiary under the GE Pension
Plan.
|
|
2.
|
All Excess
Benefits provided for hereunder which are Non-Grandfathered Plan Benefits
shall be paid in the same form, time and manner as the non-grandfathered
plan benefits payable to such Employee, Surviving Spouse or beneficiary
under the GE Supplementary Pension Plan. Consistent with the
foregoing, the provisions of the GE Supplementary Pension Plan which
restrict payments to a Specified Employee during the first six months
following Separation from Service shall apply in the same manner hereunder
with respect to such Excess Benefits. In addition, if an
Employee is not also entitled to benefits from the GE Supplementary
Pension Plan, the principles of the GE Supplementary Pension Plan
governing the form, time and manner of payment shall nevertheless apply in
the same manner hereunder with respect to such Excess
Benefits.
|
|
3.
|
If an
Employee is reemployed, the treatment of the Employee’s Excess Benefits
will be governed by the principles of the reemployment provisions of the
GE Supplementary Pension Plan (regardless of whether the Employee is
otherwise entitled to a Supplementary Pension under the GE Supplementary
Pension Plan).
|
|
1.
|
This Plan
shall be administered by the Pension Board, which shall have authority in
its sole discretion to make, amend, interpret and enforce rules and
regulations for the administration of this Plan and decide or resolve in
its sole discretion any and all questions which may arise in connection
with this Plan.
|
|
2.
|
In the
administration of this Plan, the Pension Board may, from time to time,
employ agents and delegate to them such administrative duties as it sees
fit and may, from time to time, consult with counsel, including counsel to
the Company.
|
|
3.
|
The decision
or action of the Pension Board in respect of any question arising out of
or in connection with the administration, interpretation and application
of this Plan and the rules and regulations hereunder shall be final and
conclusive and binding upon all persons having any interest in this
Plan.
|
|
1.
|
The Excess
Benefits payable under this Plan shall be paid by the Company out of its
general assets and shall not be funded in any manner. The
obligations that the Company incurs under this Plan shall be subject to
the claims of the Company’s other creditors having priority as to the
Company’s assets.
|
|
2.
|
Except as to
withholding of any tax under the laws of the United States or any state or
locality, no Excess Benefit payable at any time hereunder shall be subject
in any manner to alienation, sale, transfer, assignment, pledge,
attachment or other legal process, or encumbrance of any
kind. Any attempt to alienate, sell, transfer, assign, pledge
or otherwise encumber any such Excess Benefit, whether currently or
thereafter payable hereunder, shall be
void.
|
|
3.
|
No Employee
and no other person shall have any legal or equitable rights or interest
in this Plan that are not expressly granted in this
Plan. Participation in this Plan does not give any person any
right to be retained in the Service of his Employer. The right
and power of the Company to dismiss or discharge any Employee is expressly
reserved.
|
|
4.
|
Notwithstanding
the provisions of Section I, employees who are represented by a union
(pursuant to a certification by the National Labor Relations Board or
otherwise in accordance with the provisions of Section 9 of the National
Labor Relations Act) shall become eligible to participate in this Plan (a)
only after the Company and such union shall have entered into a written
agreement to the effect that the Plan shall be offered to the employees so
represented, and (b) only in accordance with any conditions or
requirements contained in such agreement; provided, however, that whenever
employees who are eligible for the Plan choose a bargaining agent
(pursuant to NLRB certification), they shall continue to be eligible
unless and until the certified agent gives notice to the Company that it
does not wish such eligibility to
continue.
|
|
5
|
The rights
under this Plan of an Employee who leaves the Service of the Company at
any time and the rights of anyone entitled to receive any payments under
this Plan by reason of the death of such Employee, shall be governed by
the provisions of this Plan in effect on the date such Employee leaves the
Service of the Company, except as otherwise specifically provided in this
Plan; provided, however, that with respect to Non-Grandfathered Plan
Benefits:
|
|
a.
|
Any Employee
who left the Service of the Company on or after January 1, 2005 and prior
to January 1, 2009 and commenced receipt of such benefits before January
1, 2009 shall not be eligible to select the revocation feature provided in
Section IX.8 of the GE Pension
Plan.
|
|
b.
|
Any Employee
who left the Service of the Company on or after January 1, 2005 and prior
to January 1, 2009 and did not commence receipt of such benefits before
January 1, 2009 (or anyone entitled to receive any payments under the Plan
by reason of the death of such Employee who did not commence receipt of
such payments before January 1, 2009) shall have the form, time and manner
of payment of such benefits determined under the terms contained
herein.
|
|
6.
|
Except to the
extent that the same are governed by the federal law (including Section
409A of the Code), the law of the State of New York shall govern the
construction and administration of this
Plan.
|
|
7.
|
This Plan is
intended to comply with Section 409A of the Code with respect to amounts
accrued after December 31, 2004 and amounts that were accrued but
forfeitable on that date. In addition, if an Employee accrues
benefits hereunder on or after January 1, 2005, the Plan is intended to
comply with the requirements
|
|
1.
|
Each
employee eligible to participate in this Plan ("Participant") shall be
given an opportunity to irrevocably elect (subject to any conditions set
out in the election form) prior to any deferral
hereunder:
|
(a)
|
the
portion of the Participant's annual base salary rate as of November 1,
2005 to be deferred. The minimum portion deferred shall be 10% and the
maximum shall be 50%, and
|
(b)
|
the
form of payout alternative as set forth in Section
V.
|
|
2.
|
Commencing
with base salary for January 2006, the Participant's total base salary
elected to be deferred under this Plan will be deferred in ratable
installments through the month of December 2006, and will be credited to
the Participant's deferred salary cash account ("Deferred Account") as of
the end of the month of deferral ("Deferral
Date").
|
|
1.
|
Each
Deferred Account shall be unfunded, unsecured and nonassignable, and shall
not be a trust for the benefit of any
Participant.
|
|
2.
|
Except
as may be otherwise provided in Section V or VIII, the Participant's
Deferred Account will be credited with (a) the amount of base salary
deferred on each Deferral Date as set forth in Section II, (b) the special
one-time matching credit as set forth in Section III, and (c) interest at
the annual rate of 8.5% compounded annually on each December
31.
|
|
1.
|
Payment
of a Participant's Deferred Account will be made only after termination of
employment of the Participant.
|
|
2.
|
If
no manner of payment election is made, the Deferred Account will be paid
in 10 annual installments commencing on March 1 (or as soon thereafter as
practical) following the year of termination of
employment.
|
|
3.
|
At
the time of election to defer base salary, a Participant may irrevocably
elect: (a) the number of annual payout installments (minimum of 10,
maximum of 20) of the Deferred Account commencing on March 1 (or as soon
thereafter as practical) following the year of termination of employment,
unless (b) a lump sum payment of the Deferred Account is elected in which
case the lump sum payment will be made on March 1 (or as soon thereafter
as practical) following the year of termination of
employment.
|
|
4.
|
Participants
who terminate their employment on or after December 31, 2006 because of
retirement, death, disability, layoff, plant closing or transfer to a
successor employer which is not controlled by the Company, or Participants
who terminate their employment on or after December 31, 2010 for any
reason, will receive payouts based on Deferred Account accumulations at
the 8.5% interest rate. The Chairman (or his delegate) is authorized to
grant interest to any Participant who would otherwise be ineligible for
such credit under this Section V.4.
|
|
5.
|
If
the Participant terminates employment prior to December 31, 2006 for any
reason, or prior to December 31, 2010 for any reason other than
retirement, death, disability, layoff, plant closing or transfer to a
successor employer which is not controlled by the Company, the
Participant's Deferred Account will be paid in a lump sum as soon as
practical following the date of termination. Unless waived by the Chairman
(or his delegate), Section IV.2. (c) shall not apply to such a Participant
and no interest shall be payable with such lump sum. Notwithstanding the
foregoing, if a Participant Separates from Service on or after January 1,
2009 and prior to December 31, 2010, his Deferred Account shall be paid
starting March 1 (or as soon thereafter as practical) following the year
of Separation from Service: (a) in accordance with any special re-election
under Section IX, or if no such special re-election is made, then either
in accordance with his original election under Section II.1, or the
default rule in Section V.2, as applicable; and (b) with or without
interest in accordance with the rules in Section
V.4.
|
|
6.
|
Notwithstanding
any provision of this Plan to the contrary, no payments shall be made to a
Specified Employee during the six-month period following his Separation
from Service to the extent necessary to comply with Section 409A(a)(2) of
the Internal Revenue Code.
|
|
1.
|
Re-electing
Participants shall be allowed to choose to receive payments in 10, 15 or
20 year installments, or in a lump sum, in each case commencing on March 1
(or as soon thereafter as practical) following the year of Separation from
Service.
|
|
2.
|
Participants
who either (a) Separate from Service on or after December 31, 2010 or (b)
Separate from Service on or after January 1, 2009 without making this
special re-election, shall receive payment of their Deferred Accounts
commencing on March 1 (or as soon thereafter as practical) following the
year of Separation from Service, in accordance with their original
elections under Section II.1, or if no original election as to the form of
payment was made, in accordance with the default rule in Section
V.2.
|
|
3.
|
The
determination of whether a Participant's Deferred Account is credited with
interest shall be made under Section V.4 without regard to any special
re-election under this Section. Accordingly, unless waived by the Chairman
(or his delegate), a Participant who terminates employment before December
31, 2010 for any reason other than retirement, death, disability, layoff,
plant closing or transfer to a successor employer which is not controlled
by the Company will not receive interest under Section IV.2.(c),
regardless of the form in which his Deferred Account is
paid.
|
|
4.
|
Eligibility
for this special re-election, and the rules for making the re-election,
shall be determined in accordance with established administrative
procedures, provided however, that all re-elections shall comply with the
applicable transition relief in IRS Notice
2007-86.
|
|
1.
|
For
periods on and after January 1, 2009, "termination of employment" shall
mean "Separation from Service" when used in the context of determining the
time or form of benefits. "Separation from Service" means a Participant's
termination of employment with the Company and all Affiliates (defined for
this purpose as any company or business entity in which General Electric
Company has a 50% or more interest whether or not a participating employer
in the Plan); provided that Separation from Service for purposes of the
Plan shall be interpreted consistent with the requirements of Code Section
409A and regulations and other guidance issued
thereunder.
|
|
2.
|
Re-employment
on or after January 1, 2009 shall be disregarded in determining whether
payment of a Participant's Deferred Account commences to be paid (or
continues to be paid).
|
|
3.
|
"Specified
Employee" means a specified employee as described in the Company’s
Procedures for Determining Specified Employees under Code Section 409A, as
amended from time to time.
|
a)
|
Company
Automobile
. The Employee may continue using the Company-provided
car in his possession at the Effective Date of this Agreement until the
Separation Date, the end of the lease term, or when the car has reached
50,000 miles on the odometer, whichever occurs first (the “Car Termination
Date”). At the Car Termination Date, the Employee may purchase the car at
its market value (as determined by GE Fleet Services) or relinquish the
car to the Company.
|
b)
|
Financial Planner.
The Employee may continue to avail himself of the services of a
financial planner until the Separation
Date.
|
c)
|
Executive Products
Plan.
The Employee’s eligibility for and participation in the
Executive Products Plan will cease on the Effective
Date.
|
d)
|
Life
Insurance
.
The Company
agrees to maintain the Employee’s Executive Life Insurance Policy, Senior
Executive Life Insurance Policy and Leadership Life Insurance Policy and
continue to make premium payments in accordance with the terms of the
applicable plans.
|
Grant
Date
|
Grant
Price
|
No.
of Options with
Accelerated
Vesting
|
9/12/03
|
$31.53
|
30,000
|
9/17/04
|
$34.22
|
72,000
|
9/16/05
|
$34.47
|
117,000
|
9/08/06
|
$34.01
|
140,000
|
a)
|
Releasees.
“Releasees” include the following: (1) the Company; (2) all current and
former Company parents, subsidiaries, related companies, affiliates,
partnerships or joint ventures, and, with respect to each of them, their
predecessors and successors; (3) with respect to each such entity
identified in (1) and (2) above, all of its past, present, and future
employees, officers, directors, stockholders, owners, representatives,
assigns, attorneys, agents, insurers, employee benefit programs (and the
trustees, administrators, fiduciaries and insurers of such programs), and
(4) any other person acting by, through, under or in concert with any of
the persons or entities listed in this paragraph, and their predecessors
or successors.
|
b)
|
Claims
Released.
The foregoing release includes, but is not limited to:
(1) any claim of discrimination, harassment, or retaliation related to
race, sex, pregnancy, religion, marital status, sexual orientation,
national origin, handicap or disability, age, veteran status, or
citizenship status or any other category protected by law; (2) any other
claim based on a statutory prohibition or requirement; (3) any and all
claims under any law of any nation, including any and all claims under any
United States of America federal, state, or local law, regulation, or
ordinance; (4) any claim under contract, tort, or common law, such as
claims of wrongful discharge, negligent or intentional affliction of
emotional distress and defamation; (5) any claim arising out of or related
to an express or implied employment contract, any other contract affecting
terms and conditions of employment, or a covenant of good faith and fair
dealing; (6) any claims under the Sarbanes-Oxley Act, including
retaliation claims; (7) any personal gain with respect to any claim under
the qui tam provisions of the False Claims Act; and (8) any claims for
attorneys’ fees that exist or may exist as of the date of the signing of
this Agreement.
Employee understands
that he is not releasing any claims arising after the Effective Date, and
that he is not releasing claims that cannot lawfully be
released
.
|
c)
|
ADEA Claims.
The Employee acknowledges that he is releasing rights and claims under the
Age Discrimination in Employment Act of 1967 (“ADEA”), as
amended.
|
d)
|
Violating the
Release
. If the Employee violates this release by suing a Releasee
or causing a Releasee to be sued for any matter in the scope of the
release, the Employee agrees to pay all costs and expenses of defending
against the suit incurred by the Releasee, including reasonable attorneys’
fees,
|
e)
|
except
to the extent that paying such fees, costs and expenses is prohibited by
law or would result in the invalidation of the foregoing
release.
|
f)
|
Cooperating with
Government Agencies
. This Agreement does not limit the Employee’s
ability to communicate with governmental investigators on matters
involving the Company or participating in any such proceeding before a
governmental agency, including a state or federal fair employment
practices agency. However, the Employee agrees he cannot receive any
monetary or personal gain for such participation. Accordingly, Employee
shall be barred from seeking and expressly waives any and all rights to
any monetary, injunctive, or other personal relief for released claims,
including but not limited to reinstatement, damages, remedies, or other
such relief, any and all rights to which he hereby
waives
|
g)
|
Alternative Dispute
Resolution
. The Employee agrees to submit to the Company’s internal
alternative dispute resolution process (for purposes of this Agreement
called “Company ADR”) including final and binding arbitration, any claims
not released by this Agreement, and covered by such Company ADR, or any
claims that arise after the Effective Date (as described below) of this
Agreement, without regard to whether the employee is a “new employee” or a
“current employee” as defined by the Company ADR. Employee understands
that this means he is giving up the right to a jury trial for any claims
not released by this Agreement or that arise after the effective date, and
that all such claims submitted to arbitration pursuant to the Company ADR
will be decided solely by an arbitrator. If Employee needs another copy of
the Company ADR guidelines, he can access it online, if available, or ask
his Company HR Manager (or his successor, if the Company HR Manager is no
longer in the role) for a copy.
|
DAVID
NISSEN
|
GENERAL
ELECTRIC COMPANY
|
|||
By:
|
/s/ David Nissen | /s/ John F. Lynch | ||
Date:
|
6 Feb 2008 |
Date
:
|
6 Feb 2008 |
|
a)
|
Releasees
.
“Releasees” include the following: (1) the Company; (2) all current and
former Company parents, subsidiaries, related companies, affiliates,
partnerships or joint ventures, and, with respect to each of them, their
predecessors and successors; (3) with respect to each such entity
identified in (1) and (2) above, all of its past, present, and future
employees, officers, directors, stockholders, owners, representatives,
assigns, attorneys, agents, insurers, employee benefit programs (and the
trustees, administrators, fiduciaries and insurers of such programs), and
(4) any other person acting by, through, under or in concert with any of
the persons or entities listed in this paragraph, and their predecessors
or successors.
|
b)
|
Claims
Released
. The foregoing release includes, but is not limited to:
(1) any claim of discrimination, harassment, or retaliation related to
race, sex, pregnancy, religion, marital status, sexual orientation,
national origin, handicap or disability, age, veteran status, or
citizenship status or any other category protected by law; (2) any other
claim based on a statutory prohibition or requirement; (3) any and all
claims under any law of any nation, including any and all claims under any
United States of America federal, state, or local law, regulation, or
ordinance; (4) any claim under contract, tort, or common law, such as
claims of wrongful discharge, negligent or intentional affliction of
emotional distress and defamation; (5) any claim arising out of or related
to an express or implied employment contract, any other contract affecting
terms and conditions of employment, or a covenant of good faith and fair
dealing; (6) any claims under the Sarbanes-Oxley Act, including
retaliation claims; (7) any personal gain with respect to any claim under
the qui tam provisions of the False Claims Act; and (8) any claims for
attorneys’ fees that exist or may exist as of the date of the signing of
this Agreement.
Employee understands that he is not releasing any claims arising after the
Effective Date, and that he is not releasing claims that cannot lawfully
be released.
|
c)
|
ADEA Claims
.
The Employee acknowledges that he is releasing rights and claims under the
Age Discrimination in Employment Act of 1967 (“ADEA”), as
amended.
|
David
Nissen
|
|||
DATE:
|
|||
WITNESS:
|
Name: David
Nissen
|
SSO
ID: 215000041
|
(A)
|
An
amount of $7,989.10 per month shall commence on January 1, 2009 and shall
terminate at the end of the month in which I reach age 60 or the end of
the month in which I die, if earlier. (Amount replaced by vested pension
under the GE Pension Plan at age
60.)
|
(B)
|
An
amount of $146,530.25 per month shall commence on January 1, 2009 and
shall continue until the end of the month in which I
die.
|
(C)
|
An
amount of $838.28 per month shall commence on January 1, 2009 and shall
continue until I attain age 63 or until the end of the month in which I
die, if earlier. I understand that I will not receive the payments
described in this paragraph (C) for the month in which I am eligible to
begin receiving 80% of my Social Security benefits and for any subsequent
month.
|
1.
|
A
survivor benefit will be paid under the GE Pension Plan to your surviving
spouse if you die before your pension commences under that Plan (i.e., the
first of the month after you would have reached age 60). The survivor
benefit starts when your pension under the GE Pension Plan would have
started had you survived.
|
2.
|
To
provide for an immediate and uninterrupted survivor benefit starting on
the first of the month following your death, you can elect a survivor
benefit with respect to the Allowance shown in (A) and (B) above. You may
also waive the survivor benefit with respect to the Allowance with your
spouse's consent in which case no benefits will be paid pursuant to this
Agreement if your death occurs before your pension starts under the GE
Pension Plan. If you elect this survivor benefit, your Allowance will be
paid as follows:
|
|
The
Allowance shown in (A) and (B) above shall be reduced in the same manner
and be paid under the same terms and conditions as a pension is reduced
and paid to provide a 50% survivor benefit under Section IX (1) of the GE
Pension Plan to a participant who is age 60 and taking into account the
difference in age between you and your
spouse.
|
|
If
you die before the first of the month following attainment of age 60, a
benefit shall be paid to your surviving spouse equal to 50% of your
reduced Allowance under (A) and (B) above. The amount payable under this
survivor benefit includes any benefit available to your surviving spouse
in the form of a monthly income under the GE Pension Plan but this
election will have no effect upon the amount of pension payable to you on
and after the first of the month after you reach after age 60. If you die
prior to such first of the month following attainment of age 60, the 50%
survivor benefit payable to your surviving spouse shall commence on the
first of the month following your death and shall continue for the
remaining lifetime of your spouse. No further Allowance shall be paid to
any persons after both you and your spouse have
died.
|
1.
|
On
the first of the month after you reach age 60, the Allowance shown in (A)
above will stop and your pension under the GE Pension Plan will begin. If
you are married at that time, your pension will provide automatically for
the payment of 50% joint and survivor annuity with a lifetime benefit to
your surviving spouse after your subsequent death. During the 90-day
period ending on the date your pension starts, you and your spouse can
waive this payment method in favor of an optional method. Your GE Benefits
Handbook and distribution election forms explain the conditions applicable
to the survivor benefit and its
waiver.
|
2.
|
If
your death occurs after your pension has commenced under the GE Pension
Plan and a death or survivor benefit is payable to your beneficiary or
surviving spouse under that Plan, a death or survivor benefit will also be
payable with respect to the portion of your Allowance shown in (B) above.
The benefit will be computed and paid in the same manner as the death or
survivor benefit under the GE Pension Plan. Any reduction in your pension
under the GE Pension Plan to provide a survivor benefit shall
automatically apply to the portion of your Allowance shown in (B) above
effective when your pension starts under the GE Pension
Plan.
|
I
elect to have the Survivor Benefit apply to my
Allowance.
|
||
I
waive the Survivor Benefit with respect to the
Allowance.
|
Signed
|
Date
|
Signed
|
Date
|
|||
(Spouse
of Employee)
|
Years
ended December 31
|
|||||||||||||||
(Dollars
in millions)
|
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||
|
|
|
|
|
|||||||||||
General
Electric Company and consolidated
|
|||||||||||||||
affiliates
|
|||||||||||||||
Earnings
(a)
|
$
|
19,782
|
$
|
27,528
|
$
|
24,150
|
$
|
22,024
|
$
|
19,827
|
|||||
Plus:
|
|||||||||||||||
Interest
and other financial charges included
|
|||||||||||||||
in
expense
(b)
|
26,295
|
24,103
|
19,104
|
14,884
|
11,532
|
||||||||||
One-third
of rental expense
(c)
|
477
|
648
|
592
|
589
|
546
|
||||||||||
Adjusted
“earnings”
|
$
|
46,554
|
$
|
52,279
|
$
|
43,846
|
$
|
37,497
|
$
|
31,905
|
|||||
Fixed
charges:
|
|||||||||||||||
Interest
and other financial charges
(b)
|
$
|
26,295
|
$
|
24,103
|
$
|
19,104
|
$
|
14,884
|
$
|
11,532
|
|||||
Interest
capitalized
|
73
|
93
|
71
|
75
|
39
|
||||||||||
One-third
of rental expense
(c)
|
477
|
648
|
592
|
589
|
546
|
||||||||||
Total
fixed charges
|
$
|
26,845
|
$
|
24,844
|
$
|
19,767
|
$
|
15,548
|
$
|
12,117
|
|||||
Ratio
of earnings to fixed charges
|
1.73
|
2.10
|
2.22
|
2.41
|
2.63
|
||||||||||
(a)
|
Earnings
before income taxes, minority interest and discontinued
operations.
|
(b)
|
Included
interest on tax deficiencies.
|
(c)
|
Considered
to be representative of interest factor in rental
expense.
|
Years
ended December 31
|
|||||||||||||||
(Dollars
in millions)
|
2008
|
2007
|
2006
|
2005
|
2004
|
||||||||||
|
|
|
|
|
|||||||||||
General
Electric Company and consolidated
|
|||||||||||||||
affiliates
|
|||||||||||||||
Earnings
(a)
|
$
|
19,782
|
$
|
27,528
|
$
|
24,150
|
$
|
22,024
|
$
|
19,827
|
|||||
Plus:
|
|||||||||||||||
Interest
and other financial charges included
|
|||||||||||||||
in
expense
(b)
|
26,295
|
24,103
|
19,104
|
14,884
|
11,532
|
||||||||||
One-third
of rental expense
(c)
|
477
|
648
|
592
|
589
|
546
|
||||||||||
Adjusted
“earnings”
|
$
|
46,554
|
$
|
52,279
|
$
|
43,846
|
$
|
37,497
|
$
|
31,905
|
|||||
Fixed
charges:
|
|||||||||||||||
Interest
and other financial charges
(b)
|
$
|
26,295
|
$
|
24,103
|
$
|
19,104
|
$
|
14,884
|
$
|
11,532
|
|||||
Interest
capitalized
|
73
|
93
|
71
|
75
|
39
|
||||||||||
One-third
of rental expense
(c)
|
477
|
648
|
592
|
589
|
546
|
||||||||||
Total
fixed charges
|
$
|
26,845
|
$
|
24,844
|
$
|
19,767
|
$
|
15,548
|
$
|
12,117
|
|||||
Ratio
of earnings to fixed charges
|
1.73
|
2.10
|
2.22
|
2.41
|
2.63
|
||||||||||
Preferred
stock dividend requirements
|
$
|
75
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
|||||
Ratio
of earnings before provision for income taxes
|
|||||||||||||||
to
earnings from continuing operations
|
1.06
|
1.19
|
1.20
|
1.22
|
1.23
|
||||||||||
Preferred
stock dividend factor for income taxes
|
|||||||||||||||
to
earnings from continuing operations
|
|||||||||||||||
Preferred
stock dividend factor on pre-tax basis
|
80
|
–
|
–
|
–
|
–
|
||||||||||
Fixed
charges
|
26,845
|
24,844
|
19,767
|
15,548
|
12,117
|
||||||||||
Total
fixed charges and preferred stock dividend
|
|||||||||||||||
requirements
|
$
|
26,925
|
$
|
24,844
|
$
|
19,767
|
$
|
15,548
|
$
|
12,117
|
|||||
Ration
of earnings to combined fixed charges and
|
|||||||||||||||
preferred
stock dividends
|
1.73
|
2.10
|
2.22
|
2.41
|
2.63
|
||||||||||
(a)
|
Earnings
before income taxes, minority interest and discontinued
operations.
|
(b)
|
Included
interest on tax deficiencies.
|
(c)
|
Considered
to be representative of interest factor in rental
expense.
|
Percentage
of voting
securities
directly or
indirectly
owned by
registrant
(1)
|
State
or Country
of
incorporation
or
organization
|
|||
Amersham
Health Norge AS
|
100
|
Norway
|
||
Amersham
plc
|
100
|
United
Kingdom & Northern Ireland
|
||
Bently
Nevada, LLC
|
100
|
Delaware
|
||
Cardinal
Cogen, Inc.
|
100
|
Delaware
|
||
Caribe
GE International of Puerto Rico, Inc.
|
100
|
Puerto
Rico
|
||
Datex-Ohmeda,
Inc.
|
100
|
Delaware
|
||
Everest
VIT, Inc.
|
100
|
Delaware
|
||
GE
Aviation Service Operation LLP
|
100
|
Singapore
|
||
GE
Aviation Systems Group Limited
|
100
|
United
Kingdom and Northern Ireland
|
||
GE
Aviation Systems North America, Inc.
|
100
|
United
States
|
||
GE
Aviation U.K.
|
100
|
United
Kingdom and Northern Ireland
|
||
GE
Betz International Inc.
|
100
|
United
States
|
||
GE
Caledonian Limited
|
100
|
United
Kingdom & Northern Ireland
|
||
GE
Canada Company
|
100
|
Canada
|
||
GE
Capital Global Financial Holdings, Inc.
|
100
|
United
States
|
||
GE
Capital UK Finance
|
100
|
United
Kingdom & Northern Ireland
|
||
GE
Drives & Controls, Inc.
|
100
|
Delaware
|
||
GE
Druck Holdings Limited
|
100
|
United
Kingdom & Northern Ireland
|
||
GE
Energy Europe B.V.
|
100
|
Netherlands
|
||
GE
Energy Holding SAS
|
100
|
France
|
||
GE
Energy Netherlands, B.V.
|
100
|
Netherlands
|
||
GE
Energy Parts, Inc.
|
100
|
Delaware
|
||
GE
Energy Products France SNC
|
100
|
France
|
||
GE
Energy Services, Inc.
|
100
|
Delaware
|
||
GE
Engine Services - Dallas, LP
|
100
|
Delaware
|
||
GE
Engine Services Distribution, LLC
|
100
|
Delaware
|
||
GE
Engine Services UNC Holding I, Inc.
|
100
|
Delaware
|
||
GE
Engine Services, Inc.
|
100
|
Delaware
|
||
GE
Fanuc Automation Corporation
|
50
|
Delaware
|
||
GE
Fanuc Intelligent Platforms, Inc.
|
55
|
Delaware
|
||
GE
Fanuc Intelligent Platforms Embedded Systems, Inc.
|
100
|
Delaware
|
||
GE
Financial Assurance Holdings, Inc.
|
100
|
United
States
|
||
GE
Financial Funding
|
100
|
Ireland
|
||
GE
Financial Ireland
|
100
|
Ireland
|
||
GE
Funding Finland KY
|
100
|
Finland
|
||
GE
Gas Turbines (Greenville) L.L.C.
|
100
|
Delaware
|
||
GE
Generators (Pensacola), L.L.C.
|
100
|
Delaware
|
Percentage
of voting
securities
directly or
indirectly
owned by
registrant
(1)
|
State
or Country
of
incorporation
or
organization
|
|||
GE
Healthcare AS
|
100
|
Norway
|
||
GE
Healthcare Bio-Sciences AB
|
100
|
Sweden
|
||
GE
Healthcare European Holdings SARL
|
100
|
Luxembourg
|
||
GE
Healthcare Finland Oy
|
100
|
Finland
|
||
GE
Healthcare Ltd.
|
100
|
United
Kingdom & Northern Ireland
|
||
GE
Healthcare Norge AS
|
100
|
Norway
|
||
GE
Healthcare USA Holding Inc.
|
100
|
United
States
|
||
GE
Holdings Luxembourg & Co. SARL
|
100
|
Luxembourg
|
||
GE
Hungary Co. Ltd.
|
100
|
Hungary
|
||
GE
Infrastructure Aviation Limited
|
100
|
United
Kingdom & Northern Ireland
|
||
GE
Infrastructure, Inc.
|
100
|
Delaware
|
||
GE
Inspection and Repair Services Limited
|
100
|
United
Kingdom & Northern Ireland
|
||
GE
Ionics, Inc.
|
100
|
Massachusetts
|
||
GE
Jenbacher GmbH
|
100
|
Austria
|
||
GE
Jenbacher GmbH & Co OHG
|
100
|
Austria
|
||
GE
Keppel Energy Services Pte. Ltd.
|
50
|
Singapore
|
||
GE
Medical Holding Belgium SPRL
|
84
|
Belgium
|
||
GE
Medical Systems Global Technology Company, LLC
|
100
|
Delaware
|
||
GE
Medical Systems Information Technologies, Inc.
|
100
|
Wisconsin
|
||
GE
Medical Systems Societe en Commandite Simple
|
100
|
France
|
||
GE
Medical Systems, Inc.
|
100
|
Delaware
|
||
GE
Medical Systems, LLC
|
100
|
Delaware
|
||
GE
Medical Systems, Ultrasound & Primary Care Diagnostics,
LLC
|
100
|
Delaware
|
||
GE
Military Systems
|
100
|
Delaware
|
||
GE
Money Servicing Limited
|
100
|
United
Kingdom & Northern Ireland
|
||
GE
Osmonics, Inc.
|
100
|
Minnesota
|
||
GE
Pacific Holding Pte. Ltd
|
100
|
Singapore
|
||
GE
Pacific Pte Ltd
|
100
|
Singapore
|
||
GE
Packaged Power, Inc.
|
100
|
Delaware
|
||
GE
Packaged Power, L.P.
|
100
|
Delaware
|
||
GE
Security, Inc.
|
100
|
Delaware
|
||
GE
Transportation Parts, LLC
|
100
|
Delaware
|
||
GE
Transportation Systems Global Signaling, LLC
|
100
|
Delaware
|
||
GE
UK Group Limited
|
100
|
United
Kingdom & Northern Ireland
|
||
GE
Water & Process Technologies Canada
|
100
|
Canada
|
||
GE
Wind Energy, LLC
|
100
|
Delaware
|
||
GE
Yokogawa Medical Systems Ltd.
|
100
|
Japan,
Ryukyu Islands
|
||
GEA
Parts, LLC
|
100
|
Delaware
|
||
GEA
Products LP
|
100
|
Delaware
|
||
GEAE
Technology, Inc.
|
100
|
Delaware
|
||
GEFH
AS
|
100
|
Norway
|
||
GENE
Holding LLC
|
100
|
Delaware
|
||
General
Electric (Bermuda) Ltd.
|
100
|
Bermuda
|
||
General
Electric Canada Company
|
100
|
Canada
|
Percentage
of voting
securities
directly or
indirectly
owned by
registrant
(1)
|
State
or Country
of
incorporation
or
organization
|
|||
General
Electric Capital Corporation
|
100
|
Delaware
|
||
General
Electric Capital Services, Inc.
|
100
|
Delaware
|
||
General
Electric CGR Europe SAS
|
100
|
France
|
||
General
Electric Europe Holdings C.V.
|
100
|
Netherlands
|
||
General
Electric Finance Holding GmbH
|
100
|
Germany
|
||
General
Electric Financing C.V.
|
100
|
Netherlands
|
||
General
Electric International (Benelux) BV
|
100
|
Netherlands
|
||
General
Electric International, Inc.
|
100
|
Delaware
|
||
General
Electric Services (Bermuda) Ltd.
|
100
|
Bermuda
|
||
General
Electric Services Luxembourgh SARL
|
100
|
Luxembourg
|
||
Granite
Services, Inc.
|
100
|
Delaware
|
||
IDX
Systems Corporation
|
100
|
Vermont
|
||
MRA
Systems, Inc.
|
100
|
Delaware
|
||
NBC
Universal, Inc.
|
80
|
Delaware
|
||
Nuclear
Fuel Holding Co., Inc.
|
100
|
Delaware
|
||
Nuovo
Pignone Holding, S.p.A.
|
99
|
Italy
|
||
Nuovo
Pignone International SARL
|
100
|
Luxembourg
|
||
Nuovo
Pignone S.p.A.
|
100
|
Italy
|
||
OEC
Medical Systems, Inc.
|
100
|
Delaware
|
||
Panametrics
Ltd.
|
100
|
Bermuda
|
||
PII
Limited
|
100
|
United
Kingdom & Northern Ireland
|
||
Reuter-Stokes,
Inc.
|
100
|
Delaware
|
||
Unison
Industries, LLC
|
100
|
Delaware
|
||
Vetco
Gray U.K. Limited
|
100
|
United
Kingdom & Northern Ireland
|
||
Viceroy,
Inc.
|
100
|
Delaware
|
||
Vital
Signs Holdings, LLC
|
100
|
United
States
|
||
Whatman
Limited
|
100
|
United
Kingdom & Northern Ireland
|
||
(1)
|
With
respect to certain companies, shares in names of nominees and qualifying
shares in names of directors are included in above
percentages.
|
/s/
KPMG LLP
|
|
KPMG
LLP
Stamford,
Connecticut
February
17, 2009
|
/s/
Jeffrey R. Immelt
|
||
Jeffrey
R. Immelt
|
||
Chairman
of the Board
|
||
(Principal
Executive
|
||
Officer
and Director)
|
||
/s/
Keith S. Sherin
|
/s/
Jamie S. Miller
|
|
Keith
S. Sherin
|
Jamie
S. Miller
|
|
Vice
Chairman and
Chief
Financial Officer
|
Vice
President and Controller
|
|
(Principal
Accounting Officer)
|
||
(Principal
Financial Officer)
|
/s/
James I. Cash, Jr.
|
/s/
Ralph S. Larsen
|
|
James
I. Cash, Jr.
|
Ralph
S. Larsen
|
|
Director
|
Director
|
|
/s/
William M. Castell
|
/s/
Rochelle B. Lazarus
|
|
William
M. Castell
|
Rochelle
B. Lazarus
|
|
Director
|
Director
|
|
/s/
Ann M. Fudge
|
/s/
James J. Mulva
|
|
Ann
M. Fudge
|
James
J. Mulva
|
|
Director
|
Director
|
|
/s/
Claudio X. Gonzalez
|
/s/
Sam Nunn
|
|
Claudio
X. Gonzalez
|
Sam
Nunn
|
|
Director
|
Director
|
|
/s/
Susan Hockfield
|
/s/
Roger S. Penske
|
|
Susan
Hockfield
|
Roger
S. Penske
|
|
Director
|
Director
|
|
/s/
Andrea Jung
|
/s/
Robert J. Swieringa
|
|
Andrea
Jung
|
Robert
J. Swieringa
|
|
Director
|
Director
|
|
/s/
Alan G. Lafley
|
/s/
Douglas A. Warner III
|
|
Alan
G. Lafley
|
Douglas
A. Warner III
|
|
Director
|
Director
|
|
/s/
Robert W. Lane
|
||
Robert
W. Lane
|
||
Director
|
||
I,
Jeffrey R. Immelt, certify that:
|
||
1.
|
I
have reviewed this annual report on Form 10-K of General Electric
Company;
|
|
2
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|
4.
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
c)
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
|
d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
|
5.
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s
board of directors:
|
|
a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
|
b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
/s/
Jeffrey R. Immelt
|
|
Jeffrey
R. Immelt
|
|
Chief
Executive Officer
|
I,
Keith S. Sherin, certify that:
|
||
1.
|
I
have reviewed this annual report on Form 10-K of General Electric
Company;
|
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|
4.
|
The
registrant’s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles;
|
|
c)
|
Evaluated
the effectiveness of the registrant’s disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and
|
|
d)
|
Disclosed
in this report any change in the registrant’s internal control over
financial reporting that occurred during the registrant’s most recent
fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant’s internal control over financial
reporting; and
|
|
5.
|
The
registrant’s other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s
board of directors:
|
|
a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record,
process, summarize and report financial information;
and
|
|
b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant’s internal control
over financial reporting.
|
/s/
Keith S. Sherin
|
|
Keith
S. Sherin
|
|
Chief
Financial Officer
|
February
18, 2009
|
|
/s/
Jeffrey R. Immelt
|
|
Jeffrey
R. Immelt
|
|
Chief
Executive Officer
|
|
/s/
Keith S. Sherin
|
|
Keith
S. Sherin
|
|
Chief
Financial Officer
|
FEDERAL
DEPOSIT INSURANCE CORPORATION
|
|
By: /s/
Christopher J. Spoth
|
|
Name:
Christopher J. Spoth
|
|
Title: Sr.
Deputy Director, OSC
|
|
GENERAL
ELECTRIC COMPANY
|
|
By: /s/
Jeffrey R. Immelt
|
|
Name: Jeffrey
R. Immelt
|
|
Title:
Chairman & Chief Executive
Officer
|
|
GENERAL
ELECTRIC CAPITAL CORPORATION
|
|
By: /s/
Michael A. Neal
|
|
Name: Michael
A. Neal
|
|
Title:
Chairman & President
|