GE 2010 Annual Report Download - page 95

GE 2010 ANNUAL REPORT 93
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Note 9.
All Other Assets
December 31 (In millions) 2010 2009
GE
Investments
Associated companies $ 2,092 $ 1,710
Other 535 454
2,627 2,164
Contract costs and estimated earnings
(a) 8,061 7,742
Long-term receivables, including notes
(b) 1,098 2,056
Derivative instruments 412 327
Other 5,256 4,808
17,454 17,097
GECS
Investments
Real estate
(c)(d)
31,555 36,957
Associated companies 25,662 25,374
Assets held for sale
(e) 3,540 3,691
Cost method
(d)
1,937 1,972
Other 2,251 1,984
64,945 69,978
Derivative instruments 7,077 7,679
Deferred borrowing costs
(f) 1,982 2,559
Advances to suppliers 1,853 2,224
Deferred acquisition costs
(g) 60 1,054
Other 3,323 3,846
79,240 87,340
ELIMINATIONS (352) (1,151)
Total $96,342 $103,286
(a) Contract costs and estimated earnings reflect revenues earned in excess of
billings on our long-term contracts to construct technically complex equipment
(such as power generation, aircraft engines and aeroderivative units) and long-
term product maintenance or extended warranty arrangements.
(b) Included loans to GECS of $856 million and $1,102 million at December 31, 2010
and 2009, respectively.
(c) GECS investments 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, 2010: office
buildings (45%), apartment buildings (16%), industrial properties (11%), retail
facilities (7%), franchise properties (8%) and other (13%). At December 31, 2010,
investments were located in the Americas (48%), Europe (28%) and Asia (24%).
(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, 2010, were $396 million and
$55 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,
2010, were $16 million and $2 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, 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.
(e) Assets were classified as held for sale on the date a decision was made to dispose
of them through sale or other means. At December 31, 2010 and 2009, such assets
consisted primarily of 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 $115 million and
$145 million at December 31, 2010 and 2009, respectively.
(f) Included $916 million and $1,642 million at December 31, 2010 and 2009,
respectively, of unamortized fees related to our participation in the Temporary
Liquidity Guarantee Program.
(g) Balance at December 31, 2010 reflects an adjustment of $860 million to
deferred acquisition costs in our run-off insurance operation to reflect the
effects that would have been recognized had the related unrealized investment
securities holding gains and losses actually been realized in accordance
with ASC 320-10-S99-2.
INTANGIBLE ASSETS SUBJECT TO AMORTIZATION
Gross
carrying Accumulated
December 31 (In millions) amount amortization Net
GE
2010
Customer-related $ 4,386 $ (902) $3,484
Patents, licenses and trademarks 4,778 (2,063) 2,715
Capitalized software 4,230 (2,449) 1,781
All other 45 (41) 4
Total $13,439 $(5,455) $7,984
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
GECS
2010
Customer-related $ 1,112 $ (588) $ 524
Patents, licenses and trademarks 599 (532) 67
Capitalized software 2,035 (1,535) 500
Lease valuations 1,646 (917) 729
Present value of future profits
(a) 461 (461) —
All other 333 (268) 65
Total $ 6,186 $(4,301) $1,885
2009
Customer-related $ 1,687 $ (679) $1,008
Patents, licenses and trademarks 594 (459) 135
Capitalized software 2,169 (1,565) 604
Lease valuations 1,754 (793) 961
Present value of future profits 921 (470) 451
All other 444 (302) 142
Total $ 7,569 $(4,268) $3,301
(a) Balance at December 31, 2010 reflects an adjustment of $423 million to the
present value of future profits in our run-off insurance operation to reflect the
effects that would have been recognized had the related unrealized investment
securities holding gains and losses actually been realized in accordance with
ASC 320-10-S99-2.
During 2010, we recorded additions to intangible assets subject
to amortization of $834 million. The components of finite-lived
intangible assets acquired during 2010 and their respect-
ive weighted-average amortizable period are:$113 million—
Customer-related (14.8 years); $92 million—Patents, licenses
and trademarks (5.6 years); $585 million—Capitalized software
(4.4 years); and $44 million—All other (15.0 years).
Consolidated amortization related to intangible assets subject
to amortization was $1,749 million, $2,085 million and $2,071 mil-
lion for 2010, 2009 and 2008, respectively. We estimate annual
pre-tax amortization for intangible assets subject to amortization
over the next five calendar years to be as follows: 2011—$856 mil-
lion; 2012—$794 million; 2013—$733 million; 2014—$664 million;
and 2015—$557 million.