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126 GE 2013 ANNUAL REPORT
    
Note 22.
Financial Instruments
The following table provides information about the assets and liabilities not carried at fair value in our Statement of Financial Position.
The table excludes fi nance leases and non-fi nancial assets and liabilities. Substantially all of the assets discussed below are considered
to be Level 3. The vast majority of our liabilities’ fair value can be determined based on signifi cant observable inputs and thus considered
Level 2. Few of the instruments are actively traded and their fair values must often be determined using fi nancial models. Realization of
the fair value of these instruments depends upon market forces beyond our control, including marketplace liquidity.
2013 2012
Assets (liabilities) Assets (liabilities)
December 31 (In millions)
Notional
amount
Carrying
amount (net)
Estimated
fair value
Notional
amount
Carrying
amount (net)
Estimated
fair value
GE
Assets
Investments and notes receivable $ (a) $ 488 $ 512 $ (a) $ 222 $ 222
Liabilities
Borrowings (b) (a) (13,356) (13,707) (a) (17,469) (18,619)
GECC
Assets
Loans (a) 226,293 230,792 (a) 235,888 238,254
Other commercial mortgages (a) 2,270 2,281 (a) 2,222 2,249
Loans held for sale (a) 512 512 (a) 1,180 1,181
Other financial instruments (c) (a) 1,622 2,203 (a) 1,858 2,276
Liabilities
Borrowings and bank deposits (b) (d) (a) (371,062) (386,823) (a) (397,039) (414,264)
Investment contract benefits (a) (3,144) (3,644) (a) (3,321) (4,150)
Guaranteed investment contracts (a) (1,471) (1,459) (a) (1,644) (1,674)
Insurance—credit life (e) 2,149 (108) (94) 2,277 (120) (104)
(a) These financial instruments do not have notional amounts.
(b) See Note 10.
(c) Principally cost method investments.
(d) Fair values exclude interest rate and currency derivatives designated as hedges of borrowings. Had they been included, the fair value of borrowings at December 31, 2013
and 2012 would have been reduced by $2,284 million and $7,937 million, respectively.
(e) Net of reinsurance of $1,250 million and $2,000 million at December 31, 2013 and 2012, respectively.
A description of how we estimate fair values follows.
Loans
Based on a discounted future cash fl ows methodology, using cur-
rent market interest rate data adjusted for inherent credit risk or
quoted market prices and recent transactions, if available.
Borrowings and bank deposits
Based on valuation methodologies using current market interest
rate data that are comparable to market quotes adjusted for our
non-performance risk.
Investment contract benefits
Based on expected future cash fl ows, discounted at currently
offered rates for immediate annuity contracts or the income
approach for single premium deferred annuities.
Guaranteed investment contracts
Based on valuation methodologies using current market interest
rate data, adjusted for our non-performance risk.
All other instruments
Based on observable market transactions and/or valuation meth-
odologies using current market interest rate data adjusted for
inherent credit risk.
Assets and liabilities that are refl ected in the accompanying
fi nancial statements at fair value are not included in the above
disclosures; such items include cash and equivalents, investment
securities and derivative fi nancial instruments.
Additional information about certain categories in the table
above follows.