GE 2015 Annual Report Download - page 237

FINANCIAL STATEMENTS SUPPLEMENTAL INFORMATION
GE 2015 FORM 10-K 209
DERIVATIVES AND HEDGING
Note 20 provides the primary information related to our derivatives and hedging activity. This section provides certain supplemental
information about this topic.
As described in Note 20, changes in the fair value of derivatives are recorded in a separate component of equity (referred to below as
Accumulated Other Comprehensive Income, or AOCI) and are recorded in earnings in the period in which the hedged transaction
occurs. The table below summarizes this activity by hedging instrument.
FAIR VALUE OF DERIVATIVES
2015 2014
December 31
(
In millions
)
Assets Liabilities Assets Liabilities
Derivatives accounted for as hedges
Interest rate contracts $ 4,132 $ 158 $ 5,835 $ 461
Currency exchange contracts 1,109 1,383 2,579 884
Other contracts - - - 2
5,241 1,541 8,414 1,347
Derivatives not accounted for as hedges
Interest rate contracts 119 44 79 24
Currency exchange contracts 1,715 4,048 1,182 3,439
Other contracts 315 49 237 40
2,149 4,141 1,498 3,503
Gross derivatives recognized in statement of
financial position
Gross derivatives 7,391 5,681 9,911 4,851
Gross accrued interest 1,001 (13) 1,389 (30)
8,392 5,668 11,300 4,821
Amounts offset in statement of financial position
Netting adjustments(a) (4,326) (4,326) (3,875) (3,892)
Cash collateral(b) (1,784) (642) (3,695) (445)
(6,110) (4,968) (7,570) (4,337)
Net derivatives recognized in statement of
financial position
Net derivatives 2,282 700 3,731 485
Amounts not offset in statement of
financial position
Securities held as collateral(c) (1,277) - (3,114) -
Net amount $ 1,005 $ 700 $ 617 $ 485
Derivatives are classified in the captions ³$OO other DVVHWV´ and ³$OO other OLDELOLWLHV´ and the related accrued interest is classified in ³2WKHU GE Capital
UHFHLYDEOHV´ and ³$OO other OLDELOLWLHV´ in our financial statements.
(a) The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include
fair value adjustments related to our own and counterparty non-performance risk. At December 31, 2015 and 2014, the cumulative adjustment
for non-performance risk was insignificant and $16 million, respectively.
(b) Excluded excess cash collateral received and posted of $48 million and $379 million at December 31, 2015, respectively, and $63 million and
$195 million at December 31, 2014, respectively.
(c) Excluded excess securities collateral received of $107 million and $471 million at December 31, 2015 and 2014, respectively.
GE 2015 FORM 10-K 209