GE 2008 Annual Report Download - page 85

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ge 2008 annual report 83
notes to consolidated financial statements
Note 21.
Deferred Income Taxes
Aggregate deferred income tax amounts are summarized below.
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
Principal components of our net liability (asset) representing
deferred income tax balances are as follows:
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 mil-
lion 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.
Note 22.
Minority Interest in Equity of Consolidated Affiliates
Minority interest in equity of consolidated affiliates includes com-
mon shares in consolidated affiliates and preferred stock issued
by affiliates of GE Capital. Preferred shares that we are required
to redeem at a specified or determinable date are classified as
liabilities. The balance is summarized as follows:
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%.