GE 2009 Annual Report Download - page 85

GE 2009 ANNUAL REPORT 83
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INTANGIBLE ASSETS SUBJECT TO AMORTIZATION
December 31 (In millions)
Gross
carrying
amount
Accumulated
amortization Net
GE
2009
Customer-related $ 4,213 $ (702) $3,511
Patents, licenses and trademarks 4,568 (1,716) 2,852
Capitalized software 4,366 (2,560) 1,806
All other 301 (125) 176
Total $13,448 $(5,103) $8,345
2008
Customer-related $ 4,551 $ (900) $ 3,651
Patents, licenses and trademarks 4,751 (1,690) 3,061
Capitalized software 4,706 (2,723) 1,983
All other 470 (155) 315
Total $14,478 $(5,468) $ 9,010
GECS
2009
Customer-related $ 1,831 $ (690) $1,141
Patents, licenses and trademarks 630 (461) 169
Capitalized software 2,183 (1,567) 616
Lease valuations 1,754 (793) 961
Present value of future profits 921 (470) 451
All other 444 (303) 141
Total $ 7,763 $(4,284) $3,479
2008
Customer-related $ 1,790 $ (616) $ 1,174
Patents, licenses and trademarks 564 (460) 104
Capitalized software 2,166 (1,476) 690
Lease valuations 1,761 (594) 1,167
Present value of future profits 869 (439) 430
All other 210 (162) 48
Total $ 7,360 $(3,747) $ 3,613
During 2009, we recorded additions to intangible assets subject
to amortization of $1,707 million. The components of finite-lived
intangible assets acquired during 2009 and their respective
weighted-average amortizable period are: $302 million — Customer-
related (15.4 years); $171 million — Patents, licenses and trademarks
(11.2 years); $611 million — Capitalized software (4.3 years);
$4 mil lion — Lease valuations (5.2 years); and $619 million — All
other (4.0 years).
Consolidated amortization related to intangible assets subject
to amortization was $2,100 million and $2,091 million for 2009 and
2008, respectively. We estimate annual pre-tax amortization for
intangible assets subject to amortization over the next five cal endar
years to be as follows: 2010 — $1,725 million; 2011 — $1,442 mil lion;
2012 — $1,229 million; 2013 — $1,036 million; 2014 — $1,044 million.
Note 9.
All Other Assets
December 31 (In millions) 2009 2008
GE
Investments
Associated companies (a) $ 1,710 $ 2,785
Other 454 608
2,164 3,393
Contract costs and estimated earnings 7,387 5,999
Long-term receivables, including notes (a) (b) 2,056 2,613
Derivative instruments 327 527
Film and television costs (a) — 4,667
Other 5,163 5,236
17,097 22,435
GECS
Investments
Real estate (c) (d) 36,957 36,743
Associated companies 25,374 18,694
Assets held for sale (e) 3,708 5,038
Cost method (d) 1,972 2,482
Other 1,985 1,854
69,996 64,811
Derivative instruments 7,682 12,115
Advances to suppliers 2,224 2,187
Deferred acquisition costs 1,054 1,230
Deferred borrowing costs (f) 2,559 1,499
Other 3,956 3,879
87,471 85,721
ELIMINATIONS (1,151) (1,257)
Total $103,417 $106,899
(a) Investments in associated companies, film and television costs and long-term
receivables excluded $1,236 million, $4,507 million and $466 million, respectively,
of assets classified as assets of businesses held for sale at December 31, 2009.
(b) Included loans to GECS of $1,102 million and $1,038 million at December 31, 2009
and 2008, respectively.
(c) GECS investment in real estate consisted principally of two categories: real estate
held for investment and equity method investments. Both categories contained
a wide range of properties including the following at December 31, 2009: office
buildings (45%), apartment buildings (13%), industrial properties (11%), retail
facilities (9%), franchise properties (7%), parking facilities (2%) and other (13%).
At December 31, 2009, investments were located in the Americas (46%), Europe
(32%) and Asia (22%).
(d) The fair value of and unrealized loss on cost method investments in a continuous
loss position for less than 12 months at December 31, 2009, were $423 million
and $67 million, respectively. The fair value of and unrealized loss on cost method
investments in a continuous loss position for 12 months or more at December 31,
2009, were $48 million and $13 million, respectively. The fair value of and unrealized
loss on cost method investments in a continuous loss position for less than 12
months at December 31, 2008, were $565 million and $98 million, respectively.
The fair value of and unrealized loss on cost method investments in a continuous
loss position for 12 months or more at December 31, 2008, were $64 million and
$4 million, respectively.
(e) Assets were classified as held for sale on the date a decision was made to dispose
of them through sale, securitization or other means. Such assets consisted primarily
of credit card receivables, loans, aircraft, equipment and real estate properties,
and were accounted for at the lower of carrying amount or estimated fair value
less costs to sell. These amounts are net of valuation allowances of $145 million
and $112 million at December 31, 2009 and 2008, respectively.
(f) Included $1,642 million and $434 million at December 31, 2009 and 2008,
respectively, of unamortized fees related to our participation in the Temporary
Liquidity Guarantee Program.