GE 2011 Annual Report Download - page 131

GE 2011 ANNUAL REPORT 129
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The table below summarizes the assets and liabilities of consolidated VIEs described above.
Consolidated Securitization Entities(a)
(In millions) Trinity
Credit
Cards (b)(c) Equipment (c)(d) Real Estate
Trade
Receivables Other (d) Total
DECEMBER 31, 2011
ASSETS (e)
Financing receivables, net $ — $19,229 $10,523 $3,521 $1,614 $2,973 $37,860
Investment securities 4,289 ————1,031 5,320
Other assets 389 17 283 210 — 2,636 3,535
Total $4,678 $19,246 $10,806 $3,731 $1,614 $6,640 $46,715
LIABILITIES (e)
Borrowings $ — $ — $ 2 $ 25 $ — $ 821 $ 848
Non-recourse borrowings — 14,184 8,166 3,659 1,769 980 28,758
Other liabilities 4,456 37 — 19 23 1,071 5,606
Total $4,456 $14,221 $ 8,168 $3,703 $1,792 $2,872 $35,212
DECEMBER 31, 2010
ASSETS (e)
Financing receivables, net $ — $20,570 $ 9,431 $4,233 $1,882 $3,356 $39,472
Investment securities 5,706 ————9646,670
Other assets 283 17 234 209 99 3,672 4,514
Total $5,989 $20,587 $ 9,665 $4,442 $1,981 $7,992 $50,656
LIABILITIES (e)
Borrowings $ — $ — $ 184 $ 25 $ — $ 949 $ 1,158
Non-recourse borrowings — 12,824 8,091 4,294 2,970 1,265 29,444
Other liabilities 5,690 132 8 4 — 1,861 7,695
Total $5,690 $12,956 $ 8,283 $4,323 $2,970 $4,075 $38,297
(a) Includes entities consolidated on January 1, 2010 by the initial application of ASU 2009-16 & 17. On January 1, 2010, we consolidated financing receivables of
$39,463 million and investment securities of $1,015 million and non-recourse borrowings of $36,112 million. At December 31, 2011, financing receivables of $30,730 million
and non-recourse borrowings of $24,502 million remained outstanding in respect of those entities.
(b) In February 2011, the capital structure of one of our consolidated credit card securitization entities changed and it is now consolidated under the voting interest model and
accordingly is no longer reported in the table above. The entity’s assets and liabilities at December 31, 2010 were $2,875 million and $525 million, respectively.
(c) We provide servicing to the CSEs and are contractually permitted to commingle cash collected from customers on financing receivables sold to investors with our own cash
prior to payment to a CSE provided our short-term credit rating does not fall below levels specified in our securitization agreements. We are also owed amounts from the
CSEs related to purchased financial assets which have yet to be funded or available excess cash flows due to GE. At December 31, 2011, the amounts owed to the CSEs and
receivable from the CSEs were $5,655 million and $5,165 million, respectively.
(d) In certain transactions entered into prior to December 31, 2004, we provided contractual credit and liquidity support to third parties who funded the purchase of
securitized or participated interests in assets. In December 2011, a third party required that we pay $816 million under these arrangements to purchase an asset. At
December 31, 2011, we have no remaining credit or liquidity support obligations to these entities.
(e) Asset amounts exclude intercompany receivables for cash collected on behalf of the entities by GE as servicer, which are eliminated in consolidation. Such receivables
provide the cash to repay the entities’ liabilities. If these intercompany receivables were included in the table above, assets would be higher. In addition, other assets,
borrowings and other liabilities exclude intercompany balances that are eliminated in consolidation.
Total revenues from our consolidated VIEs were $6,326 million and
$7,122 million in 2011 and 2010, respectively. Related expenses
consisted primarily of provisions for losses of $1,146 million
and $1,596 million in 2011 and 2010, respectively, and interest
and other fi nancial charges of $594 million and $767 million
in 2011 and 2010, respectively. These amounts do not include
intercompany revenues and costs, principally fees and interest
between GE and the VIEs, which are eliminated in consolidation.