GE 2007 Annual Report Download - page 93

Download and view the complete annual report

Please find page 93 of the 2007 GE annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

    
ge 2007 annual report 91
Note 17
Borrowings
SHORT-TERM BORROWINGS
2007 2006
December 31 (Dollars in millions) Amount Average rate
(a) Amount Average rate
(a)
GE
Commercial paper
U.S.
$ 1,798 4.73% $ 1,097 5.35%
Non-U.S. 1 4.00 1 3.74
Payable to banks 189 5.07 184 5.61
Current portion of
long-term debt 1,547 5.36 32 5.32
Other 571 762
4,106 2,076
GECS
Commercial paper
U.S.
Unsecured 72,392 4.69 67,423 5.37
Asset-backed (b) 4,775 4.94 6,430 5.35
Non-U.S. 28,711 4.99 26,328 4.38
Current portion of
long-term debt
(c) 56,302 5.01 44,550 4.86
Bank deposits
(d) 11,486 3.04 9,731 3.50
GE Interest Plus notes
(e) 9,590 5.23 9,161 5.43
Other 9,165 9,690
192,421 173,313
ELIMINATIONS (1,426) (3,376)
Total
$195,101 $172,013
(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) Entirely obligations of consolidated, liquidating securitization entities. See note 12.
(c) Included $1,106 million of asset-backed, liquidating securitization entities at
December 31, 2007 and none at December 31, 2006.
(d) Included $10,789 million and $9,731 million of deposits in non-U.S. banks at
December 31, 2007 and 2006, respectively.
(e) Entirely variable denomination fl oating rate demand notes.
LONG-TERM BORROWINGS
2007
Average
December 31 (Dollars in millions) rate
(a) Maturities 2007 2006
GE
Senior notes 5.11% 2013 – 2017 $ 8,957 $ 6,488
Industrial development/
pollution control bonds 3.69 2011 – 2027 266 265
Payable to banks,
principally U.S. 5.90 2009 – 2023 1,988 1,836
Other
(b) 445 454
11,656 9,043
GECS
Senior notes
Unsecured 5.23 2009 – 2055 283,099 235,942
Asset-backed
(c) 5.13 2009 – 2035 5,528 5,810
Extendible notes 5.10 2009 – 2012 8,500 6,000
Subordinated notes
(d)(e) 6.08 2009 – 2067 11,377 5,201
308,504 252,953
ELIMINATIONS (1,145) (1,244)
Total
$319,015 $260,752
(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 affi liates.
(c) Included $3,410 million and $4,684 million of asset-backed senior notes, issued by
consolidated, liquidating securitization entities at December 31, 2007 and 2006,
respectively. See note 12.
(d) Included $750 million of subordinated notes guaranteed by GE at December 31,
2007 and 2006.
(e) Included $8,064 million and $2,019 million of subordinated debentures receiving
rating agency equity credit at December 31, 2007 and 2006, respectively.
Our borrowings are addressed below from the perspectives of
liquidity, interest rate and currency risk management. Additional
information about borrowings and associated swaps can be
found in note 26.
LIQUIDITY is affected by debt maturities and our ability to repay
or refi nance such debt. Long-term debt maturities over the next
fi ve years follow.
(In millions) 2008 2009 2010 2011 2012
GE $ 1,557 $ 1,713 $ 35 $ 58 $ 25
GECS 56,298 (a) 63,371
(b) 54,255 32,028 39,240
(a) Fixed and fl oating rate notes of $793 million contain put options with exercise
dates in 2008, and which have fi nal maturity dates in 2009 ($100 million) and
beyond 2012 ($693 million).
(b) Floating rate extendible notes of $6,500 million are due in 2009, but are extendible
at the option of the investors to a fi nal maturity in 2011 ($4,000 million) and 2012
($2,500 million).
Committed credit lines totaling $64.8 billion had been extended
to us by 72 banks at year-end 2007. Availability of these lines is
shared between GE and GECS with $15.0 billion and $64.8 billion
available to GE and GECS, respectively. The GECS lines include
$37.2 billion of revolving credit agreements under which we can
borrow funds for periods exceeding one year. The remaining