GE 2012 Annual Report Download - page 90

88 GE 2012 ANNUAL REPORT
notes to consolidated financial statements
other factors, any one of which could materially affect the amount
of any loss ultimately incurred by WMC on these claims.
WMC has also received unspecified indemnification demands
from depositors/underwriters/sponsors of RMBS in connec-
tion with lawsuits brought by RMBS investors to which WMC
is not a party. WMC believes that it has strong defenses to
these demands.
The reserve estimates reflect judgment, based on currently
available information, and a number of assumptions, including
economic conditions, claim activity, pending and threatened
litigation and indemnification demands, estimated repurchase
rates, and other activity in the mortgage industry. Actual losses
arising from claims against WMC could exceed the reserve
amount if actual claim rates, governmental actions, litigation and
indemnification activity, actual repurchase rates or losses WMC
incurs on repurchased loans differ from its assumptions. It is dif-
ficult to develop a meaningful estimate of aggregate possible
claims exposure because of uncertainties surrounding economic
conditions, the ability and propensity of mortgage holders to
present valid claims, governmental actions, mortgage industry
activity, as well as pending and threatened litigation and indemni-
fication demands against WMC.
WMC revenues and other income (expense) from discontin-
ued operations were $(500) million, $(42) million and $(4) million in
2012, 2011 and 2010, respectively. In total, WMC’s losses from dis-
continued operations, net of taxes, were $337 million, $34 million
and $7 million in 2012, 2011 and 2010, respectively.
OTHER FINANCIAL SERVICES
In the first quarter of 2012, we announced the planned dis-
position of Consumer Ireland and classified the business as
discontinued operations. We completed the sale in the third
quarter of 2012 for proceeds of $227 million. Consumer Ireland
revenues and other income (expense) from discontinued opera-
tions were $7 million, $13 million and $25 million in 2012, 2011
and 2010, respectively. Consumer Ireland losses from discon-
tinued operations, net of taxes, were $195 million (including a
$121 million loss on disposal), $153 million and $96 million in
2012, 2011 and 2010, respectively.
In the second quarter of 2011, we entered into an agreement
to sell our Australian Home Lending operations and classified it as
discontinued operations. As a result, we recognized an after-tax
loss of $148 million in 2011. We completed the sale in the third
quarter of 2011 for proceeds of approximately $4,577 million.
Australian Home Lending revenues and other income (expense)
from discontinued operations were $4 million, $250 million and
$510 million in 2012, 2011 and 2010, respectively. Australian
Home Lending earnings (loss) from discontinued operations, net
of taxes, were $6 million, $(65) million and $70 million in 2012,
2011 and 2010, respectively.
In the first quarter of 2011, we entered into an agreement to
sell our Consumer Singapore business for $692 million. The sale
was completed in the second quarter of 2011 and resulted in
the recognition of a gain on disposal, net of taxes, of $319 mil-
lion. Consumer Singapore revenues and other income (expense)
from discontinued operations were an insignificant amount,
$30 million and $108 million in 2012, 2011 and 2010, respectively.
Consumer Singapore earnings from discontinued operations, net
of taxes, were $2 million, $333 million and $36 million in 2012,
2011 and 2010, respectively.
In 2010, we sold our interest in BAC and recognized an after-
tax gain of $780 million. BAC revenues and total earnings from
discontinued operations, net of taxes, were $983 million and
$854 million, respectively, in 2010.
In the fourth quarter of 2010, we entered into agreements to
sell our Consumer RV Marine portfolio and Consumer Mexico busi-
ness. The Consumer RV Marine and Consumer Mexico dispositions
were completed during the first quarter and the second quarter of
2011, respectively, for proceeds of $2,365 million and $1,943 mil-
lion, respectively. Consumer RV Marine revenues and other
income (expense) from discontinued operations were $1 million,
$11 million and $210 million in 2012, 2011 and 2010, respectively.
Consumer RV Marine earnings (loss) from discontinued operations,
net of taxes, were an insignificant amount, $2 million and $(99) mil-
lion in 2012, 2011 and 2010, respectively. Consumer Mexico
revenues and other income (expense) from discontinued opera-
tions were $2 million, $67 million and $228 million in 2012, 2011
and 2010, respectively. Consumer Mexico earnings (loss) from dis-
continued operations, net of taxes, were $(12) million, $30 million
and $(59) million in 2012, 2011 and 2010, respectively.
GE INDUSTRIAL
GE industrial earnings (loss) from discontinued operations, net
of taxes, were $148 million, $(2) million and $(4) million in 2012,
2011 and 2010, respectively. During the third quarter of 2012, we
resolved with the Internal Revenue Service the tax treatment of
the 2007 disposition of our Plastics business, resulting in a tax
benefit of $148 million. The sum of GE industrial earnings (loss)
from discontinued operations, net of taxes, and GECC earnings
(loss) from discontinued operations, net of taxes, is reported as
GE industrial earnings (loss) from discontinued operations, net of
taxes, on the Statement of Earnings.