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GE 2009 ANNUAL REPORT 101
    
Non-Recurring Fair Value Measurements
Non-recurring fair value amounts (as measured at the time of
the adjustment) for assets still held at December 31, 2009 and
2008, totaled $516 million and $48 million, identified as Level 2,
and $17,434 million and $3,145 million, identified as Level 3,
respectively. The increase in Level 3 amounts related primarily
to our retained investment in PTL ($5,751 million), financing
receivables and loans held for sale ($5,420 million), long-lived
assets ($5,105 million), primarily real estate held for investment,
equipment leased to others and equipment held for sale, and
cost and equity method investments ($1,006 million).
The following table represents the fair value adjustments to
assets measured at fair value on a non-recurring basis and still
held at December 31, 2009 and 2008.
December 31 (In millions) 2009 2008
Financing receivables and loans held for sale $(1,695) $ (587)
Cost and equity method investments (a) (921) (495)
Long-lived assets (b) (1,079) (276)
Retained investments in formerly consolidated
subsidiaries (b) 237 —
Other (b) (29) (222)
Total $(3,487) $(1,580)
(a) Includes fair value adjustments associated with private equity and real estate funds
of $(238) million and $(45) million during 2009 and 2008, respectively.
(b) ASC 820 was adopted for non-financial assets valued on a non-recurring basis as
of January 1, 2009.
Note 22.
Financial Instruments
The following table provides information about the assets and liabilities not carried at fair value in our Statement of Financial Position.
Consistent with ASC 825, Financial Instruments, the table excludes finance leases and non-financial assets and liabilities. Apart from
certain of our borrowings and certain marketable securities, few of the instruments discussed below are actively traded and their fair
values must often be determined using financial models. Realization of the fair value of these instruments depends upon market forces
beyond our control, including marketplace liquidity.
2009 2008
Assets (liabilities) Assets (liabilities)
December 31 (In millions)
Notional
amount
Carrying
amount (net)
Estimated
fair value
Notional
amount
Carrying
amount (net)
Estimated
fair value
GE
Assets
Investments and notes receivable $(a) $ 412 $ 412 $(a) $ 554 $ 511
Liabilities
Borrowings (b) (a) (12,185) (12,757) (a) (12,202) (12,267)
GECS
Assets
Loans (a) 283,135 269,283 (a) 305,376 292,797
Other commercial mortgages (a) 1,151 1,198 (a) 1,501 1,427
Loans held for sale (a) 1,303 1,343 (a) 3,640 3,670
Other financial instruments (c) (a) 2,096 2,385 (a) 2,637 2,810
Liabilities
Borrowings and bank deposits (b) (d) (a) (500,334) (506,148) (a) (514,601) (495,541)
Investment contract benefits (a) (3,940) (4,397) (a) (4,212) (4,536)
Guaranteed investment contracts (a) (8,310) (8,394) (a) (10,828) (10,677)
Insurance — credit life (e) 1,595 (80) (53) 1,165 (44) (31)
(a) These financial instruments do not have notional amounts.
(b) See Note 10.
(c) Principally cost method investments.
(d) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at December 31, 2009 and
2008, would have been reduced by $2,856 million and $3,776 million, respectively.
(e) Net of reinsurance of $2,800 million and $3,103 million at December 31, 2009 and 2008, respectively.