GE 2011 Annual Report Download - page 103

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GE 2011 ANNUAL REPORT 101
    
LIQUIDITY is affected by debt maturities and our ability to repay or
refi nance such debt. Long-term debt maturities over the next fi ve
years follow.
(In millions) 2012 2013 2014 2015 2016
GE $ 41 $ 5,166 $ 35 $ 35 $ 28
GECS 82,650 (a) 38,334 36,542 23,450 21,199
(a) Fixed and floating rate notes of $444 million contain put options with exercise
dates in 2012, and which have final maturity beyond 2016.
Committed credit lines totaling $52.4 billion had been extended to
us by 58 banks at year-end 2011. Availability of these lines is
shared between GE and GECS with $12.4 billion and $52.4 billion
available to GE and GECS, respectively. The GECS lines include
$35.1 billion of revolving credit agreements under which we can
borrow funds for periods exceeding one year. Additionally,
$16.7 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.
Note 11.
GECS Investment Contracts, Insurance Liabilities and
Insurance Annuity Benefits
GECS investment contracts, insurance liabilities and insurance
annuity benefi ts comprise mainly obligations to annuitants and
policyholders in our run-off insurance operations and holders of
guaranteed investment contracts.
December 31 (In millions) 2011 2010
Investment contracts $ 3,493 $ 3,726
Guaranteed investment contracts 4,226 5,502
Total investment contracts 7,719 9,228
Life insurance benefits (a) 19,257 17,640
Unpaid claims and claims adjustment expenses 2,597 2,437
Unearned premiums 370 426
Universal life benefits 255 262
Total $30,198 $29,993
(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 2011 and
2010.
When insurance affi liates 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 recov-
ery; we establish allowances for probable losses on such
receivables from reinsurers as required. Reinsurance recover-
ables are included in the caption “Other GECS receivables” on our
Statement of Financial Position, and amounted to $1,411 million
and $1,284 million at December 31, 2011 and 2010, respectively.
We recognize reinsurance recoveries as a reduction of the
Statement of Earnings caption “Investment contracts, insurance
losses and insurance annuity benefi ts.” Reinsurance recover-
ies were $224 million, $174 million and $219 million for the years
ended December 31, 2011, 2010 and 2009, respectively.
Note 12.
Postretirement Benefit Plans
Pension Benefits
We sponsor a number of pension plans. Principal pension plans,
together with affi liate 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 benefi ts to certain U.S. employ-
ees based on the greater of a formula recognizing career earnings
or a formula recognizing length of service and fi nal average
earnings. Certain benefi t provisions are subject to collective bar-
gaining. Salaried employees who commence service on or after
January 1, 2011 and any employee who commences service on
or after January 1, 2012 will not be eligible to participate in the
GE Pension Plan, but will participate in a defi ned contribution
retirement program.
The GE Supplementary Pension Plan is an unfunded plan
providing supplementary retirement benefi ts primarily to higher-
level, longer-service U.S. employees.
OTHER PENSION PLANS in 2011 included 36 U.S. and non-U.S.
pension plans with pension assets or obligations greater than
$50 million. These defi ned benefi t plans provide benefi ts to
employees based on formulas recognizing length of service
and earnings.
PENSION PLAN PARTICIPANTS
December 31, 2011 Total
Principal
pension
plans
Other
pension
plans
Active employees 139,000 105,000 34,000
Vested former employees 237,000 195,000 42,000
Retirees and beneficiaries 254,000 225,000 29,000
Total 630,000 525,000 105,000