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ge 2008 annual report 79
notes to consolidated financial statements
Note 16.
All Other Assets
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 primar-
ily 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.
INTANGIBLE ASSETS SUBJECT TO AMORTIZATION
Gross
carrying Accumulated
December 31 (In millions) amount 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
During 2008, we recorded additions to intangible assets subject
to amortization of $2,029 million. The components of finite-lived
intangible assets acquired during 2008 and their respective
weighted-average amortizable period are: $756 million— Customer-
related (17.1 years); $382 million—Patents, licenses and trademarks
(17.4 years); $765 million — Capitalized software (4.4 years);
$38 million— Lease valuations (8.7 years); and $88 million—All other
(9.4 years).
Consolidated amortization related to intangible assets subject
to amortization was $2,091 million and $2,071 million for 2008
and 2007, respectively. We estimate that annual pre-tax amorti-
zation for intangible assets subject to amortization over the next
five calendar years to be as follows: 2009 —$1,772 million;
2010— $1,541 million; 2011—$1,326 million; 2012 —$1,145 million;
2013 — $957 million.