GE 2012 Annual Report Download - page 102

100 GE 2012 ANNUAL REPORT
notes to consolidated financial statements
Note 10.
Borrowings and Bank Deposits
SHORT-TERM BORROWINGS
2012 2011
December 31 (Dollars in millions) Amount Average rate (a) Amount Average rate (a)
GE
Commercial paper $ 352 0.28% $ 1,801 0.13%
Payable to banks 23 3.02 88 1.81
Current portion of long-term borrowings 5,068 5.11 41 4.89
Other 598 254
Total GE short-term borrowings 6,041 2,184
GECC
Commercial paper
U.S. 33,686 0.22 33,591 0.23
Non-U.S. 9,370 0.92 10,569 1.67
Current portion of long-term borrowings (b) (c) (d) (e) 44,264 2.85 82,650 2.72
GE Interest Plus notes (f) 8,189 1.20 8,474 1.32
Other (d) 431 1,049
Total GECC short-term borrowings 95,940 136,333
ELIMINATIONS (589) (906)
Total short-term borrowings $101,392 $137,611
LONG-TERM BORROWINGS
2012 2011
December 31 (Dollars in millions) Maturities Amount Average rate (a) Amount Average rate (a)
GE
Senior notes 2015–2042 $ 10,963 3.63% $ 8,976 5.21%
Payable to banks, principally U.S. 2014–2023 13 1.79 18 2.89
Other 452 411
Total GE long-term borrowings 11,428 9,405
GECC
Senior unsecured notes (c) 2014–2055 199,646 2.95 210,154 3.49
Subordinated notes (e) 2014–2037 4,965 2.92 4,862 3.42
Subordinated debentures (g) 2066–2067 7,286 5.78 7,215 6.66
Other (d) 12,879 12,160
Total GECC long-term borrowings 224,776 234,391
ELIMINATIONS (120) (337)
Total long-term borrowings $236,084 $243,459
NON-RECOURSE BORROWINGS OF CONSOLIDATED SECURITIZATION ENTITIES (h) 2013–2019 $ 30,123 1.12% $ 29,258 1.40%
BANK DEPOSITS
(i) $ 46,461 $ 43,115
TOTAL BORROWINGS AND BANK DEPOSITS $414,060 $453,443
(a) Based on year-end balances and year-end local currency effective interest rates, including the effects from hedging.
(b) GECC had issued and outstanding $35,040 million of senior unsecured debt that was guaranteed by the Federal Deposit Insurance Corporation (FDIC) under the Temporary
Liquidity Guarantee Program at December 31, 2011. No such debt was outstanding at December 31, 2012.
(c) Included in total long-term borrowings were $604 million and $1,845 million of obligations to holders of GICs at December 31, 2012 and 2011, respectively. These obligations
included conditions under which certain GIC holders could require immediate repayment of their investment should the long-term credit ratings of GECC fall below AA-/Aa3.
Following the April 3, 2012 Moody’s downgrade of GECC’s long-term credit rating to A1, substantially all of these GICs became redeemable by their holders. In 2012, holders of
$386 million in principal amount of GICs redeemed their holdings and GECC made related cash payments. The remaining outstanding GICs will continue to be subject to their
scheduled maturities and individual terms, which may include provisions permitting redemption upon a downgrade of one or more of GECC’s ratings, among other things.
(d) Included $9,757 million and $8,538 million of funding secured by real estate, aircraft and other collateral at December 31, 2012 and 2011, respectively, of which
$3,294 million and $2,983 million is non-recourse to GECC at December 31, 2012 and 2011, respectively.
(e) Included $300 million and $417 million of subordinated notes guaranteed by GE at December 31, 2012 and 2011, respectively, of which $117 million was included in current
portion of long-term borrowings at December 31, 2011.
(f) Entirely variable denomination floating-rate demand notes.
(g) Subordinated debentures receive rating agency equity credit and were hedged at issuance to the U.S. dollar equivalent of $7,725 million.
(h) Included at December 31, 2012 and 2011 were $9,095 million and $10,714 million of current portion of long-term borrowings, respectively, and $21,028 million and
$18,544 million of long-term borrowings, respectively. See Note 18.
(i) Included $16,157 million and $16,281 million of deposits in non-U.S. banks at December 31, 2012 and 2011, respectively, and $17,291 million and $17,201 million of
certificates of deposits with maturities greater than one year at December 31, 2012 and 2011, respectively.