GE 2014 Annual Report Download - page 120

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100 GE 2014 FORM 10-K
MD&A SUPPLEMENTAL INFORMATION
RATIO OF ADJUSTED DEBT TO EQUITY AT GECC, NET OF LIQUIDITY
December 31 (Dollars in millions) 2014 2013 2012 2011 2010 2008
GECC debt $ 349,548 $ 371,062 $ 397,039 $ 442,830 $ 470,363 $ 512,744
Add debt of businesses held for sale
and discontinued o
p
erations 2,366 316 403 527 575 1,859
Ad
j
usted GECC debt 351
,
914 371
,
378 397
,
442 443
,
357 470
,
938 514
,
603
Less li
q
uidit
y(
a
)
75,544 74,873 61,853 76,641 60,231 37,677
Less cash of businesses held for
sale and discontinued o
p
erations 808 236 265 332 222 24
$ 275
,
562
$ 296
,
269 $ 335
,
324 $ 366
,
384 $ 410
,
485 $ 476
,
902
GECC e
q
uit
y
$ 87,499 $ 82,694 $ 81,890 $ 77,110 $ 68,984 $ 53,279
Ratio 3.15:1 3.58:1 4.09:1 4.75:1 5.95:1 8.95:1
(a) Liquidity includes cash and equivalents and $1.2 billion of debt obligations of the U.S Treasury at December 31, 2014.
We have provided the GECC ratio of debt to equity on a basis that reflects the use of liquidity as a reduction of debt. For
purposes of this ratio, we have also adjusted cash and debt balances to include amounts classified as assets and liabilities of
businesses held for sale and discontinued operations. We believe that this is a useful comparison to a GAAP-based ratio of
debt to equity because liquidity balances may be used to reduce debt. The usefulness of this supplemental measure may be
limited, however, as the total amount of liquidity at any point in time may be different than the amount that could practically be
applied to reduce outstanding debt. Despite this potential limitation, we believe that this measure, considered along with the
corresponding GAAP measure, provides investors with additional information that may be more comparable to other financial
institutions and businesses.