GE 2014 Annual Report Download - page 94

74 GE 2014 FORM 10-K
MD&A FINANCIAL RESOURCES AND LIQUIDITY
LIQUIDITY SOURCES
We maintain liquidity sources that consist of cash and equivalents of $90.2 billion, committed unused credit lines of $44.9
billion and high-quality, liquid investments of $1.2 billion.
CONSOLIDATED CASH AND EQUIVALENTS
December 31 (In billions) 2014 2014
GE(a) $ 15.9 U.S. $ 29.1
GECC(b) 74.3 Non-U.S.(c) 61.1
Total $ 90.2 Total $ 90.2
(a) At December 31, 2014, $2.8 billion of GE cash and equivalents was held in countries with currency controls that may restrict the transfer of funds to the U.S. or limit our
ability to transfer funds to the U.S. without incurring substantial costs. These funds are available to fund operations and growth in these countries and we do not currently
anticipate a need to transfer these funds to the U.S.
(b) At December 31, 2014, GECC cash and equivalents of about $20.0 billion were in regulated banks and insurance entities and were subject to regulatory restrictions.
(c) Of this amount at December 31, 2014, $12.2 billion was considered indefinitely reinvested. Indefinitely reinvested cash held outside of the U.S. is available to fund
operations and other growth of non-U.S. subsidiaries; it is also available to fund our needs in the U.S. on a short-term basis through short-term loans, without being
subject to U.S. tax. Under the Internal Revenue Code, these loans are permitted to be outstanding for 30 days or less and the total of all such loans is required to be
outstanding for less than 60 days during the year. If we were to repatriate indefinitely reinvested cash held outside the U.S., we would be subject to additional U.S.
income taxes and foreign withholding taxes.
COMMITTED UNUSED CREDIT LINES
December 31 (In billions) 2014
Revolving credit agreements (exceeding one year) $ 25.1
Revolving credit agreements (364-day line)(a) 19.8
Total(b) $ 44.9
(a) Included $19.3 billion that contains a term-out feature that allows us to extend borrowings for two years from the date on which such borrowings would otherwise be due.
(b) Total committed unused credit lines were extended to us by 50 financial institutions. 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.
FUNDING PLAN
We reduced our GE Capital ENI, excluding liquidity, to $363 billion at December 31, 2014.
During 2014, GE completed issuances of $3.0 billion of senior unsecured debt with maturities up to 30 years. GECC
completed issuances of $9.5 billion of senior unsecured debt (excluding securitizations described below) with maturities up to
40 years (and subsequent to December 31, 2014 through February 13, 2015, an additional $8.1 billion). In addition, in August
2014, Synchrony Financial completed issuances of $3.6 billion of senior unsecured debt with maturities up to 10 years and
$8.0 billion of unsecured term loans maturing in 2019, and in October 2014 completed issuances of $0.8 billion unsecured
term loans maturing in 2019 under the New Bank Term Loan Facility with third party lenders. Subsequent to December 31,
2014 through February 13, 2015, Synchrony Financial issued an additional $1.0 billion of senior unsecured debt maturing in
2020.
COMMERCIAL PAPER
(In billions) GE GECC
Average commercial paper borrowings during the fourth quarter of 2014 $ 8.1
$ 25.0
Maximum commercial paper borrowings outstanding during the fourth quarter of 2014 10.6
25.1