GE 2008 Annual Report Download - page 65

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ge 2008 annual report 63
notes to consolidated financial statements
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
Assets at December 31, 2008, were primarily comprised of a
deferred tax asset for a loss carryforward, which expires in 2015,
related to the sale of our GE Money Japan business.
Note 3.
Other Income
(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.
Note 4.
GECS Revenues from Services
(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.
Summarized financial information for discontinued GE indus-
trial operations is shown below.
(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
Summarized financial information for discontinued GECS opera-
tions is shown below.
(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