GE 2014 Annual Report Download - page 190

170 GE 2014 FORM 10-K
FINANCIAL STATEMENTS INVESTMENT CONTRACTS & INSURANCE
In the first quarter of 2014, GE issued $3,000 million senior unsecured debt, composed of $750 million aggregate principal
amount of 3.375% Notes due 2024 and $2,250 million aggregate principal amount of 4.500% Notes due 2044.
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 refinance such debt. Long-term debt maturities over the next
five years follow.
(In millions) 2015 2016 2017 2018 2019
GE $ 2,068 $ 194 $ 4,052 $ 28 $ 29
GECC 37,989 (a) 31,707 27,041 19,011 21,956
(a) Fixed and floating rate notes of $474 million contain put options with exercise dates in 2015, and which have final maturity beyond 2019.
Committed credit lines totaling $44.9 billion had been extended to us by 50 banks at year-end 2014. GECC can borrow up to
$44.4 billion under these credit lines. GE can borrow up to $14.2 billion under certain of these credit lines. The GECC lines
include $25.1 billion of revolving credit agreements under which we can borrow funds for periods exceeding one year.
Additionally, $19.3 billion are 364-day lines that contain a term-out feature that allows us 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 annuity benefits comprise mainly obligations to annuitants and
policyholders in our run-off insurance operations and holders of guaranteed investment contracts.
December 31 (In millions) 2014 2013
Investment contracts
$
2,970
$
3,144
Guaranteed investment contracts 1,000 1,471
Total investment contracts 3,970 4,615
Life insurance benefits(a) 20,688 18,959
Other(b) 3,369 3,405
28,027 26,979
Eliminations (449) (435)
Total
$
27,578
$
26,544
(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 2014 and 2013.
(b) Substantially all unpaid claims and claims adjustment expenses and unearned premiums.
When insurance affiliates cede insurance risk to third parties, such as reinsurers, they are not relieved of their primary
obligation 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
receivables" on our Statement of Financial Position, and amounted to $1,759 million and $1,685 million at December 31, 2014
and 2013, respectively.
We recognize reinsurance recoveries as a reduction of the Statement of Earnings caption “Investment contracts, insurance
losses and insurance annuity benefits.” Reinsurance recoveries were $240 million, $250 million and $234 million in December
31, 2014, 2013 and 2012, respectively.