GE 2009 Annual Report Download - page 79

GE 2009 ANNUAL REPORT 77
    
CONTRACTUAL MATURITIES OF GECS INVESTMENT IN AVAILABLE-
FOR-SALE DEBT SECURITIES (EXCLUDING MORTGAGE-BACKED AND
ASSET-BACKED SECURITIES)
(In millions)
Amortized
cost
Estimated
fair value
Due in
2010 $ 5,558 $ 5,563
2011–2014 5,567 5,742
2015–2019 4,334 4,224
2020 and later 17,318 17,350
We expect actual maturities to differ from contractual maturities
because borrowers have the right to call or prepay certain
obligations.
Supplemental information about gross realized gains and
losses on available-for-sale investment securities follows.
(In millions) 2009 2008 2007
GE
Gains $ 4 $ — $ 5
Losses, including impairments (173) (148) —
Net (169) (148) 5
GECS
Gains (a) 164 212 1,026
Losses, including impairments (637) (1,472) (141)
Net (473) (1,260) 885
Total $(642) $(1,408) $ 890
(a) Included gain on sale of Swiss Re common stock of $566 million in 2007.
Although we generally do not have the intent to sell any specific
securities at the end of the period, in the ordinary course of
managing our investment securities portfolio, we may sell secu-
rities prior to their maturities for a variety of reasons, including
diversification, credit quality, yield and liquidity requirements and
the funding of claims and obligations to policyholders. In some
of our bank subsidiaries we maintain a certain level of purchases
and sales volume principally of non-U.S. government debt secu-
rities. In these situations, fair value approximates carrying value
for these securities.
Proceeds from investment securities sales and early redemp-
tions by the issuer totaled $7,823 million, $3,942 million and
$18,055 million in 2009, 2008 and 2007, respectively, principally
from the sales and early redemptions of securities in our bank
subsidiaries in 2009, securities that support the guaranteed
investment contract portfolio in 2008 and the sale of Swiss Re
common stock in 2007.
We recognized pre-tax gains on trading securities of
$408 million, $108 million and $292 million in 2009, 2008 and
2007, respectively. Investments in retained interests increased
by $291 million during 2009, decreased $113 million and
$102 million during 2008 and 2007, respectively, reflecting
changes in fair value.
Note 4.
Current Receivables
Consolidated (a) GE
December 31 (In millions) 2009 2008 2009 2008
Energy Infrastructure $ 6,695 $ 7,403 $ 5,392 $ 6,409
Technology Infrastructure 7,750 9,214 4,269 5,687
NBC Universal (b) —3,659 —2,701
Consumer & Industrial 1,066 1,498 303 513
Corporate items and
eliminations 1,497 296 404 381
17,008 22,070 10,368 15,691
Less allowance for losses (550) (659) (550) (627)
Total $16,458 $21,411 $ 9,818 $15,064
(a) Included GE industrial customer receivables factored through a GECS affiliate and
reported as financing receivables by GECS. See Note 26.
(b) Excluded $2,282 million of receivables classified as assets of businesses held for
sale at December 31, 2009.
GE receivables balances at December 31, 2009 and 2008, before
allowance for losses, included $7,455 million and $11,274 million,
respectively, from sales of goods and services to customers, and
$37 million and $293 million at December 31, 2009 and 2008,
respectively, from transactions with associated companies.
GE current receivables of $104 million and $231 million at
December 31, 2009 and 2008, respectively, arose from sales,
principally of Aviation goods and services on open account to
various agencies of the U.S. government. About 6% of GE sales
of goods and services were to the U.S. government in 2009,
compared with 5% in 2008 and 4% in 2007.
Note 5.
Inventories
December 31 (In millions) 2009 2008
GE
Raw materials and work in process $ 7,581 $ 8,710
Finished goods 4,105 5,032
Unbilled shipments 759 561
12,445 14,303
Less revaluation to LIFO (529) (706)
11,916 13,597
GECS
Finished goods 71 77
Total $11,987 $13,674