GE 2009 Annual Report Download - page 38

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36 GE 2009 ANNUAL REPORT
CAPITAL FINANCE
(In millions) 2009 2008 2007
REVENUES $50,622 $67,008 $66,301
SEGMENT PROFIT $ 2,344 $ 8,632 $12,243
December 31 (In millions) 2009 2008
TOTAL ASSETS $537,060 $572,903
(In millions) 2009 2008 2007
REVENUES
CLL (a) $20,523 $26,443 $26,982
Consumer (a) 19,268 25,311 25,054
Real Estate 4,009 6,646 7,021
Energy Financial Services 2,117 3,707 2,405
GECAS 4,705 4,901 4,839
SEGMENT PROFIT
CLL (a) $ 987 $ 1,785 $ 3,787
Consumer (a) 1,663 3,684 4,283
Real Estate (1,541) 1,144 2,285
Energy Financial Services 212 825 677
GECAS 1,023 1,194 1,211
December 31 (In millions) 2009 2008
TOTAL ASSETS
CLL (a) $205,827 $228,176
Consumer (a) 176,046 187,927
Real Estate 81,505 85,266
Energy Financial Services 22,616 22,079
GECAS 51,066 49,455
(a) During the first quarter of 2009, we transferred Banque Artesia Nederland N.V.
(Artesia) from CLL to Consumer. Prior-period amounts were reclassified to conform
to the current-period’s presentation.
Capital Finance revenues decreased 24% and net earnings
decreased 73% compared with 2008. Revenues in 2009 and 2008
included $3.0 billion and $0.4 billion of revenue from acquisitions,
respectively, and in 2009 were reduced by $4.8 billion as a result of
dispositions, including the effect of the deconsolidation of Penske
Truck Leasing Co., L.P. (PTL). Revenues in 2009 also decreased
$14.1 billion compared with 2008 as a result of organic revenue
declines, primarily driven by a lower asset base and a lower inter-
est rate environment, and the stronger U.S. dollar. Net earnings
decreased by $6.3 billion in 2009 compared with 2008, primarily
due to higher provisions for losses on financing receivables
associated with the challenging economic environment, partially
offset by lower selling, general and administrative costs and the
decision to indefinitely reinvest prior-year earnings outside the U.S.
During 2009, GE Capital provided $72 billion of new financings
in the U.S. to various companies, infrastructure projects and
municipalities. Additionally, we extended $74 billion of credit to
approximately 54 million U.S. consumers. GE Capital provided
credit to approximately 14,200 new commercial customers and
40,000 new small businesses during 2009 in the U.S. and ended
the period with outstanding credit to more than 346,000 com-
mercial customers and 174,000 small businesses through retail
programs in the U.S.
Capital Finance 2008 revenues increased by 1%, and net
earnings decreased 29%, compared with 2007. Revenues in 2008
and 2007 included $4.4 billion and $0.5 billion from acquisitions,
respectively, and in 2008 were benefited by $0.1 billion as a result
of dispositions. Revenues in 2008 also decreased $3.3 billion as
a result of organic revenue declines ($4.5 billion), partially offset
by the weaker U.S. dollar ($1.2 billion). Net earnings decreased by
$3.6 billion in 2008, resulting from core declines ($3.5 billion),
including an increase of $1.9 billion in the provision for losses on
financing receivables, lower investment income ($0.6 billion) and
lower securitization income ($0.4 billion), offset by acquisitions
($0.5 billion), the weaker U.S. dollar ($0.3 billion) and dispositions
($0.1 billion). Net earnings included mark-to-market losses and
impairments ($1.4 billion), partially offset by increased tax benefits
from lower-taxed earnings from global operations ($0.7 billion)
and Genpact mark-to-market gains ($0.2 billion). See Corporate
Items and Eliminations for a discussion of items not allocated to
this segment.
Additional information about certain Capital Finance busi-
nesses follows.
CLL 2009 revenues decreased 22% and net earnings
decreased 45% compared with 2008. Revenues in 2009 and
2008 included $1.9 billion and $0.3 billion from acquisitions,
respectively, and were reduced by $3.2 billion from dispositions,
primarily related to the deconsolidation of PTL. Revenues in 2009
also included $0.3 billion related to a gain on the sale of a partial
interest in a limited partnership in PTL and remeasurement of our
retained investment. Revenues in 2009 decreased $4.6 billion
compared with 2008 as a result of organic revenue declines
($3.9 billion) and the stronger U.S. dollar ($0.7 billion). Net earnings
decreased by $0.8 billion in 2009, reflecting higher provisions
for losses on financing receivables ($0.5 billion), lower gains
($0.5 billion) and declines in lower-taxed earnings from global
operations ($0.4 billion), partially offset by acquisitions ($0.4 billion)
and higher investment income ($0.3 billion). Net earnings also
included the gain on PTL sale and remeasurement ($0.3 billion)
and higher Genpact gains ($0.1 billion), partially offset by mark-to-
market losses and other-than-temporary impairments ($0.1 billion).
CLL 2008 revenues decreased 2% and net earnings decreased
53% compared with 2007. Revenues in 2008 and 2007 included
$1.8 billion and $0.2 billion, respectively, from acquisitions, and in
2008 were reduced by $0.3 billion as a result of dispositions.
Revenues in 2008 decreased $1.9 billion compared with 2007 as
a result of organic revenue declines ($2.3 billion), partially offset
by the weaker U.S. dollar ($0.4 billion). Net earnings decreased by
$2.0 billion in 2008, resulting from core declines ($2.2 billion),
including an increase of $0.5 billion in the provision for losses on
financing receivables and lower investment income ($0.3 billion),
partially offset by acquisitions ($0.4 billion) and the effect of the
weaker U.S. dollar ($0.1 billion). Net earnings included mark-to-
market losses and impairments ($0.8 billion), the absence of the
effects of the 2007 tax benefit on the disposition of our invest-
ment in SES ($0.5 billion) and SES gains ($0.1 billion), partially
offset by Genpact mark-to-market gains ($0.2 billion).