GE 2010 Annual Report Download - page 97

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GE 2010 ANNUAL REPORT 95
    
are included in the caption “Other GECS receivables” on our
Statement of Financial Position, and amounted to $1,284 million
and $1,188 million at December 31, 2010 and 2009, respectively.
We recognize reinsurance recoveries as a reduction of the
Statement of Earnings caption “Investment contracts, insurance
losses and insurance annuity benefits.” Reinsurance recoveries
were $174 million, $219 million and $221 million for the years
ended December 31, 2010, 2009 and 2008, respectively.
Note 12.
Postretirement Benefit Plans
Pension Benefits
We sponsor a number of pension plans. Principal pension plans,
together with affiliate and certain other pension plans (other
pension plans) detailed in this note, represent about 99% of our
total pension assets. We use a December 31 measurement date
for our plans.
PRINCIPAL PENSION PLANS are the GE Pension Plan and the GE
Supplementary Pension Plan.
The GE Pension Plan provides benefits to certain U.S. employ-
ees based on the greater of a formula recognizing career earnings
or a formula recognizing length of service and final average
earnings. Certain benefit provisions are subject to collective
bargaining. Effective January 1, 2011, salaried employees who
commence service on or after that date will not be eligible to
participate in the GE Pension Plan, but will participate in a defined
contribution retirement plan.
The GE Supplementary Pension Plan is an unfunded plan
providing supplementary retirement benefits primarily to higher-
level, longer-service U.S. employees.
OTHER PENSION PLANS in 2010 included 33 U.S. and non-U.S.
pension plans with pension assets or obligations greater than
$50 million. These defined benefit plans provide benefits to
employees based on formulas recognizing length of service
and earnings.
PENSION PLAN PARTICIPANTS
Principal Other
pension pension
December 31, 2010 Total plans plans
Active employees 154,000 120,000 34,000
Vested former employees 230,000 190,000 40,000
Retirees and beneficiaries 256,000 230,000 26,000
Total 640,000 540,000 100,000
LIQUIDITY is affected by debt maturities and our ability to repay or
refinance such debt. Long-term debt maturities over the next five
years follow.
(In millions) 2011 2012 2013 2014 2015
GE $ 21 $ 414 $ 5,033 $ 24 $ 25
GECS 65,612 (a) 83,299 35,004 29,619 21,755
(a) Fixed and floating rate notes of $710 million contain put options with exercise
dates in 2011, and which have final maturity beyond 2015.
Committed credit lines totaling $51.8 billion had been extended
to us by 58 banks at year-end 2010. Availability of these lines is
shared between GE and GECS with $10.6 billion and $51.8 billion
available to GE and GECS, respectively. The GECS lines include
$35.6 billion of revolving credit agreements under which we
can borrow funds for periods exceeding one year. Additionally,
$16.2 billion are 364-day lines that contain a term-out feature that
allows GE or GECS to extend the borrowings for one year from the
date of expiration of the lending agreement. We pay banks for
credit facilities, but amounts were insignificant in each of the
past three years.
Note 11.
GECS Investment Contracts, Insurance Liabilities and
Insurance Annuity Benefits
GECS investment contracts, insurance liabilities and insurance
annuity benefits comprise mainly obligations to annuitants and
policyholders in our run-off insurance operations and holders of
guaranteed investment contracts.
December 31 (In millions) 2010 2009
Investment contracts $ 3,726 $ 3,940
Guaranteed investment contracts 5,502 8,310
Total investment contracts 9,228 12,250
Life insurance benefits
(a) 17,640 16,847
Unpaid claims and claims adjustment expenses 2,437 2,102
Unearned premiums 426 532
Universal life benefits 262 278
Total $29,993 $32,009
(a) Life insurance benefits are accounted for mainly by a net-level-premium method
using estimated yields generally ranging from 3.0% to 8.5% in both 2010 and 2009.
When insurance affiliates cede insurance to third parties, such
as reinsurers, they are not relieved of their primary obligation
to policyholders. Losses on ceded risks give rise to claims for
recovery; we establish allowances for probable losses on such
receivables from reinsurers as required. Reinsurance recoverables