GE 2013 Annual Report Download - page 107

GE 2013 ANNUAL REPORT 105
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On October 9, 2012, GE issued $7,000 million of notes compris-
ing $2,000 million of 0.850% notes due 2015, $3,000 million of
2.700% notes due 2022 and $2,000 million of 4.125% notes due
2042. On February 1, 2013, we repaid $5,000 million of 5.0% GE
senior unsecured notes.
Additional information about borrowings and associated
swaps can be found in Note 22.
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) 2014 2015 2016 2017 2018
GE $ 70 $ 2,189 $ 138 $ 4,023 $ 22
GECC 39,215 (a) 39,672 31,987 25,866 18,183
(a) Fixed and floating rate notes of $443 million contain put options with exercise
dates in 2014, and which have final maturity beyond 2018.
Committed credit lines totaling $47.8 billion had been extended
to us by 50 banks at year-end 2013. GECC can borrow up to
$47.8 billion under all of these credit lines. GE can borrow up to
$13.9 billion under certain of these credit lines. The GECC lines
include $26.5 billion of revolving credit agreements under which
we can borrow funds for periods exceeding one year. Additionally,
$21.3 billion are 364-day lines that contain a term-out feature
that allows GE or GECC to extend the borrowings for two years
from the date on which such borrowings would otherwise be due.
Note 11.
Investment Contracts, Insurance Liabilities and
Insurance Annuity Benefits
Investment contracts, insurance liabilities and insurance annu-
ity 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) 2013 2012
Investment contracts $ 3,144 $ 3,321
Guaranteed investment contracts 1,471 1,644
Total investment contracts 4,615 4,965
Life insurance benefits (a) 18,959 20,427
Other (b) 3,405 3,304
26,979 28,696
ELIMINATIONS (435) (428)
Total $ 26,544 $ 28,268
(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 2013
and 2012.
(b) Substantially all unpaid claims and claims adjustment expenses and
unearned premiums.
When insurance affi liates cede insurance risk to third parties,
such as reinsurers, they are not relieved of their primary obliga-
tion to policyholders. When 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 are included in the caption “Other GECC receiv-
ables” in our Statement of Financial Position, and amounted to
$1,685 million and $1,542 million at December 31, 2013 and 2012,
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 $250 million, $234 million and $224 million for the years
ended December 31, 2013, 2012 and 2011, 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 aver-
age earnings. Certain benefi t provisions are subject to collective
bargaining. 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 2013 included 40 U.S. and non-U.S.
pension plans with pension assets or obligations greater than
$50 million. These defi ned benefi t plans generally provide bene-
fi ts to employees based on formulas recognizing length of service
and earnings.
PENSION PLAN PARTICIPANTS
December 31, 2013 Total
Principal
pension
plans
Other
pension
plans
Active employees 128,000 94,000 34,000
Vested former employees 229,000 184,000 45,000
Retirees and beneficiaries 263,000 230,000 33,000
Total 620,000 508,000 112,000