GE 2008 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2008 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 112

  • 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

80 ge 2008 annual report
notes to consolidated financial statements
Note 18.
Borrowings
SHORT-TERM BORROWINGS
2008 2007
Average Average
December 31 (Dollars in millions) Amount rate(a) Amount 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.
Note 17.
Assets and Liabilities of Businesses Held for Sale
On January 7, 2009, we exchanged our GE Money businesses in
Austria and Finland, the credit card and auto businesses in the U.K.,
and the credit card business in Ireland for a 100% ownership
interest in Interbanca S.p.A., a leading Italian corporate bank. Assets
and liabilities of $7,887 million and $636 million, respectively, were
classified as held for sale at December 31, 2008; we recognized a
$184 million loss, net of tax, related to the classification of the
assets held for sale at lower of carrying amount or estimated fair
value less costs to sell.
On December 24, 2008, we committed to sell a portion of
our Australian residential mortgage business, including certain
underlying mortgage receivables, and expect to complete this
sale during the first quarter of 2009. Assets of $2,669 million
were classified as held for sale at December 31, 2008 (liabilities
were insignificant); we recognized a $38 million loss, net of tax,
related to the classification of the assets held for sale at lower
of carrying amount or estimated fair value less costs to sell.
Summarized financial information is shown below.
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