GE 2009 Annual Report Download - page 39

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’   
GE 2009 ANNUAL REPORT 37
Consumer 2009 revenues decreased 24% and net earnings
decreased 55% compared with 2008. Revenues in 2009 included
$1.0 billion from acquisitions (including a gain of $0.3 billion on
the remeasurement of our previously held equity investment in
BAC Credomatic GECF Inc. (BAC) related to the acquisition of a
controlling interest (BAC acquisition gain)) and were reduced by
$1.7 billion as a result of dispositions, and the lack of a current-
year counterpart to the 2008 gain on sale of our Corporate
Payment Services (CPS) business ($0.4 billion). Revenues in 2009
decreased $5.0 billion compared with 2008 as a result of organic
revenue declines ($3.4 billion) and the stronger U.S. dollar
($1.6 billion). The decrease in net earnings resulted primarily from
core declines ($2.4 billion) and the lack of a current-year counter-
part to the 2008 gain on sale of our CPS business ($0.2 billion).
These decreases were partially offset by higher securitization
income ($0.3 billion), the BAC acquisition gain ($0.2 billion) and the
stronger U.S. dollar ($0.1 billion). Core declines primarily resulted
from lower results in the U.S., U.K., and our banks in Eastern
Europe, reflecting higher provisions for losses on financing
receivables ($1.3 billion) and declines in lower-taxed earnings
from global operations ($0.7 billion). The benefit from lower-taxed
earnings from global operations included $0.5 billion from the
decision to indefinitely reinvest prior-year earnings outside the U.S.
Consumer 2008 revenues increased 1% and net earnings
decreased 14% compared with 2007. Revenues for 2008 included
$0.7 billion from acquisitions and $0.4 billion from the gain on sale
of our CPS business and were reduced by $0.2 billion from dis-
positions. Revenues in 2008 also decreased $0.6 billion compared
with 2007 as a result of organic revenue declines ($1.2 billion),
partially offset by the weaker U.S. dollar ($0.6 billion). The decrease
in net earnings resulted primarily from core declines ($0.5 billion)
and lower securitization income ($0.5 billion). The decreases
were partially offset by the gain on the sale of our CPS business
($0.2 billion), the weaker U.S. dollar ($0.1 billion) and acquisitions
($0.1 billion). Core declines primarily resulted from lower results
in the U.S., reflecting the effects of higher delinquencies ($1.2 bil-
lion), partially offset by growth in lower-taxed earnings from global
operations ($1.0 billion), including the decision to indefinitely
reinvest prior-year earnings outside the U.S.
Real Estate 2009 revenues decreased 40% and net earnings
decreased $2.7 billion compared with 2008. Revenues in 2009
decreased $2.6 billion compared with 2008 as a result of organic
revenue declines ($2.4 billion), primarily as a result of a decrease in
sales of properties, and the stronger U.S. dollar ($0.2 billion). Real
Estate net earnings decreased $2.7 billion compared with 2008,
primarily from an increase in provisions for losses on financing
receivables and impairments ($1.2 billion) and a decrease in gains
on sales of properties as compared to the prior period ($1.1 bil-
lion). Depreciation expense on real estate equity investments
totaled $1.2 billion in both 2009 and 2008. In the normal course
of our business operations, we sell certain real estate equity
investments when it is economically advantageous for us to do so.
Real Estate assets at December 31, 2009, decreased $3.8 bil-
lion, or 4%, from December 31, 2008, including $2.7 billion, or 6%,
attributable to a decline in real estate lending reflecting lower
originations, principal repayments, and increased loan reserves,
and $0.7 billion, or 2%, attributable to a decline in real estate
investments principally due to depreciation expense and impair-
ments, partially offset by foreclosures. During 2009, we sold
real estate equity investment assets with a book value totaling
$1.5 billion, which resulted in net earnings of $0.1 billion that
were more than offset by losses, impairments and depreciation.
Real Estate 2008 revenues decreased 5% and net earnings
decreased 50% compared with 2007. Revenues for 2008 included
$0.3 billion from acquisitions. Revenues in 2008 also decreased
$0.7 billion compared with 2007 as a result of organic revenue
declines ($0.8 billion), partially offset by the weaker U.S. dollar
($0.2 billion). Real Estate net earnings decreased $1.1 billion
compared with 2007, primarily from a decline in net earnings
from real estate equity investments ($1.2 billion), partially offset by
an increase in net earnings from real estate lending. Net earnings
from the sale of real estate equity investments in 2008 were
lower as a result of increasingly difficult market conditions.
Real Estate assets at December 31, 2008, increased $6.0 bil-
lion, or 8%, from December 31, 2007, including $12.1 billion,
or 34%, attributable to an increase in real estate lending, partially
offset by a $6.4 billion, or 16%, decline in real estate equity
investments. During 2008, we sold real estate equity investment
assets with a book value totaling $5.8 billion, which resulted in
net earnings of $1.3 billion that were partially offset by losses,
impairments and depreciation.
Energy Financial Services 2009 revenues decreased 43% and
net earnings decreased 74% compared with 2008. Revenues in
2009 included $0.1 billion of gains from dispositions. Revenues
in 2009 also decreased $1.7 billion compared with 2008 as a
result of organic declines ($1.7 billion), primarily as a result of the
effects of lower energy commodity prices and a decrease in gains
on sales of assets. The decrease in net earnings resulted primarily
from core declines, including a decrease in gains on sales of
assets as compared to the prior period and the effects of lower
energy commodity prices.
Energy Financial Services 2008 revenues and net earnings
increased 54% and 22%, respectively, compared with 2007.
Revenues in 2008 and 2007 included $1.6 billion and $0.3 billion,
respectively, from acquisitions. The increase in net earnings
resulted primarily from core growth ($0.2 billion), partially offset
by lower investment income ($0.1 billion).
GECAS 2009 revenues decreased 4% and net earnings
decreased 14% compared with 2008. The decrease in revenues
resulted primarily from lower asset sales ($0.2 billion). The
decrease in net earnings resulted primarily from lower asset
sales ($0.2 billion) and core declines reflecting higher credit
losses and impairments.
GECAS 2008 revenues increased 1% and net earnings
decreased 1% compared with 2007. The increase in revenues is
primarily a result of organic revenue growth ($0.1 billion), partially
offset by lower investment income. The decrease in net earnings
resulted primarily from lower investment income, partially offset
by core growth.