GENERAL ELECTRIC CAPITAL CORP - 10-Q Quarterly Report

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


	FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2005

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission file number 1-6461

GENERAL ELECTRIC CAPITAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		13-1500700
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

260 Long Ridge Road, Stamford, CT		06927
(Address of principal executive offices)		(Zip Code)

(Registrant’s telephone number, including area code) (203) 357-4000

(Former name, former address and former fiscal year,

if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

At May 6, 2005, 3,985,403 shares of voting common stock, which constitutes all of the outstanding common equity, with a par value of $14 per share were outstanding.

REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED DISCLOSURE FORMAT.

(1)

General Electric Capital Corporation

Part I - Financial Information		Page

Item 1. Financial Statements
Condensed Statement of Current and Retained Earnings		3
Condensed Statement of Financial Position		4
Condensed Statement of Cash Flows		5
Notes to Condensed, Consolidated Financial Statements (Unaudited)		6
Item 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition		12
Item 4. Controls and Procedures		22

Part II - Other Information

Item 1. Legal Proceedings		22
Item 6. Exhibits		23
Signatures		24

Forward-Looking Statements

This document contains “forward-looking statements” - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from the behavior of financial markets, including fluctuations in interest rates and commodity prices; from future integration of acquired businesses; from future financial performance of major industries which we serve including, without limitation, the air and rail transportation, energy generation, real estate and healthcare industries; from unanticipated loss development in our insurance businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

2005 Restatement

As described in our Annual Report on Form 10-K/A for the year ended December 31, 2004, we have restated our financial statements and other information.

For further discussion of the effects of the 2005 restatement see Part 1, Item 1. Financial Statements, note 1 of Notes to Condensed, Consolidated Financial Statements (Unaudited), Item 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition and Item 4. Controls and Procedures.

(2)

Part I. Financial Information

Item 1. Financial Statements

General Electric Capital Corporation and consolidated affiliates

Condensed Statement of Current and Retained Earnings

(Unaudited)

	Three months ended
	March 31
(In millions)	2005				2004 (Restated)

Revenues
Revenues from services (note 3)	$		15,493		$	13,871
Sales of goods			674			576

Total revenues			16,167			14,447

Costs and expenses
Interest			3,416			2,624
Operating and administrative			4,729			4,739
Cost of goods sold			635			551
Insurance losses and policyholder and annuity benefits			2,191			1,843
Provision for losses on financing receivables			928			953
Depreciation and amortization			1,626			1,418
Minority interest in net earnings of consolidated affiliates			120			38

Total costs and expenses			13,645			12,166

Earnings before income taxes			2,522			2,281
Provision for income taxes			(445	)		(502	)

Net earnings			2,077			1,779
Dividends			(239	)		(390	)
Retained earnings at beginning of period			34,947			29,835
Retained earnings at end of period	$	36,785			$	31,224

See “Notes to Condensed, Consolidated Financial Statements.”

(3)

General Electric Capital Corporation and consolidated affiliates

Condensed Statement of Financial Position

(In millions)	March 31, 2005				December 31, 2004
	(Unaudited)
Assets
Cash and equivalents		$	8,987			$	9,840
Investment securities			85,165				86,932
Financing receivables - net (note 4)			279,534				279,588
Insurance receivables - net			27,329				27,183
Other receivables			25,784				21,968
Inventories			196				189
Buildings and equipment, less accumulated amortization of $20,577
and $20,459			47,298				46,351
Intangible assets - net (note 5)			25,986				25,426
Other assets			68,586				69,408
Total assets		$	568,865			$	566,885

Liabilities and equity
Borrowings (note 6)		$	350,741			$	352,326
Accounts payable			16,689				17,083
Insurance liabilities, reserves and annuity benefits			104,210				103,890
Other liabilities			22,464				23,253
Deferred income taxes			10,413				10,270
Total liabilities			504,517				506,822

Minority interest in equity of consolidated affiliates			8,300				6,105

Capital stock			59				59
Accumulated gains (losses) - net
Investment securities			572				974
Currency translation adjustments			5,077				4,844
Cash flow hedges			(863	)			(1,281	)
Minimum pension liabilities			(130	)			(124	)
Additional paid-in capital			14,548				14,539
Retained earnings			36,785				34,947
Total shareowner’s equity			56,048				53,958
Total liabilities and equity		$	568,865			$	566,885

The sum of accumulated gains (losses) on investment securities, currency translation adjustments, cash flow hedges and minimum pension liabilities constitutes “Accumulated nonowner changes other than earnings,” and was $4,656 million and $4,413 million at March 31, 2005, and December 31, 2004, respectively.

See “Notes to Condensed, Consolidated Financial Statements.”

(4)

General Electric Capital Corporation and consolidated affiliates

Condensed Statement of Cash Flows

(Unaudited)

	Three months ended
	March 31
(In millions)	2005			2004 (Restated)		^(a)

Cash flows - operating activities
Net earnings	$	2,077		$	1,779
Adjustments to reconcile net earnings to cash provided from operating activities
Depreciation and amortization of buildings and equipment		1,626			1,418
Decrease in accounts payable		(629	)		(877	)
Increase in insurance liabilities, reserves and annuity benefits		1,123			1,026
Provision for losses on financing receivables		928			953
All other operating activities		1,547			623
Cash from operating activities		6,672			4,922

Cash flows - investing activities
Increase in loans to customers		(75,616	)		(62,298	)
Principal collections from customers - loans		74,213			63,605
Investment in equipment for financing leases		(5,209	)		(4,100	)
Principal collections from customers - financing leases		5,712			5,211
Net change in credit card receivables		1,923			1,035
Additions to buildings and equipment		(2,410	)		(1,951	)
Dispositions of buildings and equipment		1,709			791
Payments for principal businesses purchased		(4,631	)		(12,147	)
Purchases of securities by insurance and annuity businesses