<PAGE>
1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
(Mark One)
/x/ Annual report pursuant to Section 15(d) of the Securities Exchange Act
of 1934 (Fee Required)
For the fiscal year ended December 31, 1994
-----------------
OR
/ / Transition report pursuant to Section 15(d) of the Securities Exchange
Act of 1934 (No Fee Required)
For the transition period from to
------ ------
Commission file number 1-35
----
A. Full title of the plan and the address of the plan, if different
from that of the issuer named below:
GE Savings and Security Program
-------------------------------
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
General Electric Company
------------------------
3135 Easton Turnpike, Fairfield, Connecticut 06431
--------------------------------------------------
<PAGE>
2
Required Information
A. Financial Statements and Schedules:
Independent Auditors' Report F-3 and F-4
Statements of Net Assets Available for Benefits
as of December 31, 1994 and 1993 F-5
Statements of Changes in Net Assets Available
for Benefits for the Years Ended December
31, 1994 and 1993 F-6
Notes to Financial Statements F-7 through F-27
Schedule of Assets Held for Investment Purposes F-28 through F-35
Schedule of Assets Held for Investment Purposes
Which Were Both Acquired and Disposed of
Within the Plan Year F-36
Schedule of Loans In Default F-37
B. Exhibits
(23) Consent of Independent Auditors
(99) GE S&S Program Mutual Funds 1994 Annual Report
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
GE Savings and Security Program
--------------------------------------
(Name of Plan)
Date June 29, 1995 P. D. Ameen
------------- --------------------------------------
Vice President and Comptroller
<PAGE>
F-1
GE SAVINGS AND SECURITY PROGRAM
Financial Statements and Supplemental Schedules
December 31, 1994 and 1993
(With Independent Auditors' Report Thereon)
<PAGE>
F-2
GE SAVINGS AND SECURITY PROGRAM
December 31, 1994 and 1993
Table of Contents
Page
Number(s)
_________
Financial Statements and Supplemental Schedules
Independent Auditors' Report F-3 and F-4
Statements of Net Assets Available for Benefits
as of December 31, 1994 and 1993 F-5
Statements of Changes in Net Assets Available for
Benefits for the Years Ended December 31, 1994
and 1993 F-6
Notes to Financial Statements F-7 through F-27
Schedule of Assets Held for Investment Purposes F-28 through F-35
Schedule of Assets Held for Investment Purposes
Which Were Both Acquired and Disposed of Within
the Plan Year F-36
Schedule of Loans In Default F-37
<PAGE>
F-3
Independent Auditors' Report
The Pension Board of General Electric Company, as administrator
GE Savings and Security Program:
We have audited the accompanying statements of net assets available for
benefits of GE Savings and Security Program (the "Plan") as of December 31,
1994 and 1993, and the related statements of changes in net assets available
for benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the Plan
as of December 31, 1994 and 1993, and the changes in net assets available
for benefits for the years then ended, in conformity with generally accepted
accounting principles.
<PAGE>
F-4
The Pension Board of General Electric Company, as administrator
GE Savings and Security Program
Page 2
Our 1994 audit was made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information
included in Schedules I through III is presented for the purpose of
additional analysis and is not a required part of the basic financial
statements, but is supplementary information required by the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974. The supplemental schedules
have been subjected to the auditing procedures applied in the audit of the
basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements as of and
for the year ended December 31, 1994 taken as a whole.
/s/ KPMG Peat Marwick LLP
April 25, 1995
<PAGE>
F-5
GE SAVINGS AND SECURITY PROGRAM
Statements of Net Assets Available for Benefits
December 31, 1994 and 1993
(in thousands)
Assets 1994 1993
______ ____ ____
Investments at fair value (Cost:
$7,690,498 and $7,238,221,
respectively) (note 3):
General Electric Company common
stock (note 8) $ 4,218,035 3,845,960
Registered investment companies:
S&S Long Term Interest Fund 1,983,952 2,339,936
S&S Program Mutual Fund 880,762 910,199
U.S. Government and agency debt
obligations 629,556 234,953
Corporate bonds and notes 447,663 529,520
U.S. Savings Bonds (Series E & EE) 293,510 298,516
Short term money market instruments 426,001 784,461
Guaranteed investment contracts 74,341 78,030
_________ _________
Total investments 8,953,820 9,021,575
Loans to participants (note 4) 288,411 304,349
Accrued interest and dividends 43,884 38,694
Receivables for securities sold
but not delivered 73,314 42,002
Other assets 5,334 4,150
_________ _________
Total assets 9,364,763 9,410,770
_________ _________
Liabilities
___________
Advances (note 5) 552 29,258
Liability for collateral deposits (note 3) 114,237 65,360
Payables for securities purchased but
not received 140,933 92,611
Other liabilities 3,409 2,847
_________ _________
Total liabilities 259,131 190,076
_________ _________
Net assets available for benefits
(note 9) $ 9,105,632 9,220,694
========= =========
See accompanying notes to financial statements.
<PAGE>
F-6
GE SAVINGS AND SECURITY PROGRAM
Statements of Changes in Net Assets Available for Benefits
Years Ended December 31, 1994 and 1993
(in thousands)
1994 1993
____ ____
Additions to net assets attributed to:
Investment income:
Interest and dividend income:
General Electric Company common
stock (note 8) $ 117,277 93,668
Registered investment companies 226,049 350,627
Interest 74,674 70,183
_________ _________
418,000 514,478
Net realized gains on sale and
(depreciation) appreciation in value
of investments (note 8) (402,131) 675,572
_________ _________
15,869 1,190,050
_________ _________
Contributions and other additions:
Employee contributions 419,228 448,943
Employer contributions 169,316 179,712
Interest on loans to participants 22,696 25,899
_________ _________
611,240 654,554
_________ _________
Total additions 627,109 1,844,604
_________ _________
Deductions from net assets attributed to:
Withdrawals (note 6) (742,171) (898,924)
_________ _________
Total deductions (742,171) (898,924)
_________ _________
Net (decrease) increase (115,062) 945,680
Net assets available for benefits (note 9):
Beginning of year 9,220,694 8,275,014
_________ _________
End of year $ 9,105,632 9,220,694
========= =========
See accompanying notes to financial statements.
<PAGE>
F-7
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
December 31, 1994 and 1993
(1) Description of the Plan
_______________________
GE Savings and Security Program (the "Plan") is a defined contribution
plan sponsored by General Electric Company and its participating
affiliates (the "Company"). The Plan is subject to applicable
provisions of the Employee Retirement Income Security Act of 1974
("ERISA").
The following description of the Plan is provided for general
information purposes only. The complete terms of the Plan are
provided in the GE Savings and Security Program document (the "Plan
Document"). Benefits, vesting provisions and effects of plan
termination are included in plan handbooks and other material
distributed to participants as required.
Employee Contributions and Investment Funds
___________________________________________
Eligible employees of the Company may participate in the Plan by
investing a portion of their earnings (generally up to 7% with Company
partial matching and an additional 10% without any Company matching)
in one or more of the following funds or investments through a trust
established to administer the investment of program funds:
(a) General Electric Company common stock (the "GE Stock Fund").
(b) S&S Long Term Interest Fund (the "LT Fund") -- consists of
investments in long term bonds and short-term notes through a
registered investment company.
(c) S&S Program Mutual Fund (the "Mutual Fund") -- consists
primarily of investments in common stock through a registered
investment company.
<PAGE>
F-8
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
(d) S&S Short Term Interest Fund (the "ST Fund") -- consists
primarily of investments in securities of the U.S. Government
and its agencies and corporate bonds.
(e) S&S Money Market Fund (the "MM Fund") -- consists of investments
in short term money market instruments.
(f) United States Savings Bonds ("U.S. Bond Fund") -- consists of
individual participants' investments in U.S. Savings Bonds.
Pending accumulation of sufficient individual funds, investments
are made in short term money market instruments.
The S&S Holding Period Interest Fund (the "HP Fund") was terminated
effective January 1, 1995. Further, on April 30, 1993 the RCA Fixed
Income Fund (the "RCA FI Fund") was terminated.
Eligible employees may elect to apply either 0.5% or 1.0% of earnings
to purchase life insurance. The benefit obligations of such purchased
life insurance contracts rest with the insurer, Aetna Life Insurance
Co. ("Aetna"). In accordance with the Plan documents, life insurance
contracts are specifically allocated to the participants and not
included in the Plan's assets or changes in plan assets. Payments to
Aetna of contributions received from employees for life insurance
contracts were $12,028,286 and $12,850,121 in 1994 and 1993,
respectively. Total life insurance in force amounted to
$4,962,471,550 and $4,639,880,825 at December 31, 1994 and 1993,
respectively.
<PAGE>
F-9
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Participants may elect up to six times a year to switch their
investment in an investment fund (in increments of 10%, 25%, 50% or
100%) to another investment fund that is presently available to accept
new funds.
The Internal Revenue Code sets out maximum limits on participant pre-
tax contributions. The limits were $9,240 and $8,994 for 1994 and
1993, respectively.
Employer Contributions
______________________
The Plan generally provides for Company matching contributions of 50%
of employees' contributions of up to 7% of their earnings which may be
invested at the election of the participant in any one of the
investment funds available to accept new contributions.
Rollovers and Transfers from Other Qualified Plans
__________________________________________________
Subject to Company approval, participants may elect rollovers of
amounts attributable to other plans in accordance with the Internal
Revenue Code.
Withdrawals
___________
Subject to certain limitations prescribed by the Plan and Internal
Revenue Code, participants may elect retirement or other termination
withdrawals in either lump sum or partial payments and currently
employed participants may make up to seven withdrawals from their
participant accounts.
<PAGE>
F-10
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Loans to Participants
_____________________
The Plan permits participants, under certain circumstances, to borrow
at least $500 from their participant accounts. Subject to certain
Internal Revenue Code and Plan limits, such loans cannot exceed 50% of
the participant's available account value, as defined in the Plan
Document (or, if less, $50,000 adjusted for prior loans). The
interest rate applicable to participating loans is based on the
monthly average of the composite yield on corporate bonds, as
published by Moody's Investors Service for the month that is two
months before the month in which the loan is requested.
Loans are repaid with interest in equal payments over the term of the
loan by payroll deductions, personal check or other such methods as
may be required by the Company's Pension Board. Participants may
repay the entire principal amount by check with written notice and
without penalty beginning three months after the date of the loan.
In the event of a loan default, as defined in the Plan documents, the
Plan will report the amount of the loan principal and accrued interest
to the date of default as a withdrawal.
Vesting
_______
Participants are fully vested in their employee and employer
contributions.
<PAGE>
F-11
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Plan Termination
________________
Although the Company has not expressed any intent to do so, it has the
right under the Plan to discontinue its contributions, and to
terminate the Plan subject to the provisions of ERISA.
Administrative Costs
____________________
Direct administrative costs of the Plan are generally borne by the
Company. Administrative costs include investment management,
recordkeeping, and transaction processing fees.
(2) Summary of Significant Accounting Policies
__________________________________________
(a) Basis of Accounting
___________________
The accompanying financial statements have been prepared
on the accrual basis of accounting.
<PAGE>
F-12
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
(b) Investments
___________
General Electric Company common stock is valued at the
closing price on the New York Stock Exchange Composite
Transaction Tape. Investments in registered investment
companies are valued at the Plan's pro rata share of the
current fair value of the net assets of such companies.
Long term U.S. Government, agency and corporate debt,
notes and bonds are valued at current quoted market
prices. Guaranteed investment contracts are carried at
contract value which approximates fair value. Short term
money market instruments, U.S. Government, agency and
corporate notes are valued at cost which approximates
market. U.S. Savings Bonds are valued at the current cash
redemption value published by the U.S. Treasury
Department.
Investment transactions are recorded on a trade date
basis. Dividends on General Electric Company common stock
are recorded as of the record date.
<PAGE>
F-13
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
(3) Investments
___________
The Plan held the following individual investments, by fund,
whose aggregate fair value equaled or exceeded 5% of the Plan's
net assets at December 31, 1994 and 1993:
Fair Value
____________
(in thousands)
1994
____
GE Stock Fund:
GE common stock 82,706,576 shs. $ 4,218,035
LT Fund:
S&S Long Term Interest
Fund 188,588,553 shs. 1,983,952
Mutual Fund:
Mutual Fund 26,220,947 shs. 880,762
_________
$ 7,082,749
=========
1993
____
GE Stock Fund:
GE common stock 36,671,845 shs. $ 3,845,960
LT Fund:
S&S Long Term Interest
Fund 201,025,469 shs. 2,339,936
Mutual Fund:
Mutual Fund 24,593,313 shs. 910,199
_________
$ 7,096,095
=========
<PAGE>
F-14
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
The following summarizes the net assets and changes in net assets of
the LT Fund and the Mutual Fund in which the Plan has investments at
December 31, 1994 and 1993, respectively:
December 31, 1994
__________________
(in thousands except value per share)
S&S Long Term S&S Program
Interest Fund Mutual Fund
Investments, at fair value:
Common and preferred stock $ - 1,631,897
Long term debt 2,945,500 43,978
Temporary investments 328,789 33,824
_________ _________
Total 3,274,289 1,709,699
Net other assets (liabilities) (467,856)(a) 8,224
_________ _________
Net assets $ 2,806,433 1,717,813
========= =========
Outstanding shares 266,671 51,135
Value per share $ 10.52 33.59
===== =====
(a) Principally relates to cash collateral received for lending
securities, the proceeds of which are principally used for temporary
investments.
<PAGE>
F-15
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Year Ended December 31, 1994
____________________________
(in thousands)
S&S Long Term S&S Program
Interest Fund Mutual Fund
Investment (loss) $ (77,916) (31,846)
Contributions and other
additions 266,166 132,917
Withdrawals and other
deductions (619,911) (188,452)
________ ________
Change in net assets $ (431,661) (87,381)
======== ========
December 31, 1993
_________________
(in thousands except value per share)
S&S Long Term S&S Program
Interest Fund Mutual Fund
Investments, at fair value:
Common and preferred stock $ - 1,699,629
Long term debt 3,164,894 47,149
Temporary investments 791,883 54,071
_________ _________
Total 3,956,777 1,800,849
Net other assets (liabilities) (718,683)(a) 4,345
_________ _________
Net assets $ 3,238,094 1,805,194
========= =========
Outstanding shares 278,299 48,781
Value per share $ 11.64 37.01
===== =====
(a) Principally relates to cash collateral received for lending
securities, the proceeds of which are principally used for temporary
investments.
<PAGE>
F-16
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Year Ended December 31, 1993
____________________________
(in thousands)
S&S Long Term S&S Program
Interest Fund Mutual Fund
Investment income $ 302,575 185,047
Contributions and other
additions 481,063 282,233
Withdrawals and other
deductions (598,711) (232,750)
________ ________
Change in net assets $ 184,927 234,530
======== ========
Audited financial statements of the LT Fund and the Mutual Fund are
distributed annually to participants as appropriate.
The ST Fund, may, from time to time, lend securities to certain
unrelated brokers. All securities loaned are collateralized by cash
and securities (valued at current market prices on a daily basis), and
supplemented by letters of credit to achieve a ratio of greater than
100% of the value of the securities loaned. The value of loaned
securities, primarily U.S. Treasury obligations, amounted to $114
million and $65 million at December 31, 1994 and 1993, respectively.
The value of cash collateral invested in short term investments is
reflected as a liability in the Plan's financial statements.
The program and the funds, while permitted to do so under certain
circumstances, have not used off balance sheet financial instruments
(derivatives such as options, futures, forwards and swaps) as part of
their overall investment strategy.
<PAGE>
F-17
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
(4) Loans to Participants
_____________________
Outstanding loans to participants amounted to $288,410,902 and
$304,349,603 at December 31, 1994 and 1993, respectively. The
following table summarizes the changes in loans to participants.
Year Ended December 31
______________________
1994 1993
(in thousands)
Loans made $ 126,021 150,804
Interest paid by participants 22,696 25,899
________ ________
148,717 176,703
________ ________
Less: Loan payments
- Reinvested (151,223) (161,406)
- Withdrawals (13,432) (20,082)
________ ________
(164,655) (181,488)
________ ________
Net (decrease) increase
in loans to participants $ (15,938) (4,785)
======== ========
Interest accruable and/or due from participants on their loans but not
recorded in the financial statements was $347,826 and $343,923 at
December 31, 1994 and 1993, respectively.
<PAGE>
F-18
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
(5) Advances
________
Plan operating procedures result in cash receipts from
participating companies in connection with the timing of
employee and employer contributions, interfund transfers, and
participant withdrawals.
(6) Certain Distributions
_________________________
Effective April 2, 1993, the Company transferred GE's Aerospace
business segment and certain other components to a new company
controlled by the shareholders of Martin Marietta Corporation
("MMC"). Under the terms of the agreement, each affected
employee became an employee of MMC as of the effective date and
was permitted to exercise their right to immediate distribution
of their vested account balance or a tax-free rollover of the
taxable portion of their account balance into an eligible
retirement plan maintained by MMC or an individual retirement
account.
(7) Tax Status
__________
The Internal Revenue Service has determined and informed the
Company by a letter dated August 18, 1993, that the Plan is
qualified and the trust established under the Plan is tax-
exempt, under the appropriate sections of the Code. The plan
has been amended since receiving the determination letter and a
request for a new determination letter for the amended plan is
presently on file with the Internal Revenue Service.
The portion of a participant's compensation contributed to the
Plan as a pre-tax contribution, and the Company's matching
contribution are not subject to Federal income tax when such
contributions are credited to participant accounts, subject to
certain limitations. These amounts and any investment earnings
may be included in the participant's gross taxable income for
the year in which such amounts are distributed from the Plan.
<PAGE>
F-19
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
(8) General Electric Company Common Stock
______________________________________
The Plan holds shares of General Electric Company common stock and
recorded both dividend income and net realized (losses) gains on sale
and (depreciation) appreciation in value on these securities. Such
(losses/depreciation) and gains/appreciation were $(81,332,452) and
$694,485,104 in 1994 and 1993, respectively.
(9) Net Assets Available for Benefits and Changes In Net
Assets Available for Benefits
________________________________________________
The following pages summarize the net assets available for benefits
and changes in net assets available for benefits for each investment
fund or type of asset of the Plan as of and for the years ended
December 31, 1994 and 1993.
<PAGE>
F-20
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Net Assets Available for Benefits
December 31, 1994
(in thousands except participant unit value)
<TABLE>
<CAPTION>
GE LT Mutual ST MM
Assets Stock Fund Fund Fund Fund Fund
______ __________ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C>
Investments, at fair value $ 4,218,035 1,983,952 880,762 982,692 536,387
Accrued interest and dividends
receivable 32,080 - - 10,666 1,111
Receivables for securities sold
but not delivered - - - 73,314 -
Other receivables - - - 888 -
_________ _________ _______ _________ _______
Total assets 4,250,115 1,983,952 880,762 1,067,560 537,498
_________ _________ _______ _________ _______
Liabilities
___________
Advances (5,340) 2,035 418 1,304 1,800
Liability for collateral deposits - - - 114,237 -
Payables for securities purchased
but not received - - - 140,933 -
Other liabilities - - - 2,246 -
_________ _________ _______ _________ _______
Total liabilities (5,340) 2,035 418 258,720 1,800
_________ _________ _______ _________ _______
Net assets available for benefits $ 4,255,455 1,981,917 880,344 808,840 535,698
========= ========= ======= ========= =======
Participant units outstanding 82,811 188,395 26,208 81,372 53,569
Participant unit value $ 51.00 10.52 33.59 9.94 10.00
===== ===== ===== ===== =====
</TABLE>
<PAGE>
F-21
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Net Assets Available for Benefits, Continued
December 31, 1994
(in thousands except participant unit value)
Total
HP Investment
Assets U.S. Bonds Fund Funds
______ __________ ____ ____
Investments, at fair value $ 302,926 51,536 8,956,290
Accrued dividends and interest - 17 43,874
Receivables for securities sold
but not delivered - - 73,314
Other assets - - 888
_______ _______ _________
Total assets 302,926 51,553 9,074,366
_______ _______ _________
Liabilities
___________
Advances - 198 415
Liability for collateral deposits - - 114,237
Payables for securities purchased
but not received - - 140,933
Other liabilities - 698 2,944
_______ _______ _________
Total liabilities - 896 258,529
_______ _______ _________
Net assets available for benefits $ 302,926 50,657 8,815,837**
======= ======= =========
Participant units outstanding * 5,066
Participant unit value $ * 10.00
=== =====
* Not applicable as values are determined by individual participants
based upon the time at which investments are made.
** Total for investment funds $8,815,837
Loans to participants 288,411
Other program accounts 1,384
----------
Program net assets available for benefits $9,105,632
==========
<PAGE>
F-22
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Net Assets Available for Benefits
December 31, 1993
(in thousands except participant unit value)
<TABLE>
<CAPTION>
GE LT Mutual ST MM
Assets Stock Fund Fund Fund Fund Fund
----------- ----- ------ ----- -----
<S> <C> <C> <C> <C> <C>
Investments, at fair value $ 3,845,960 2,339,936 910,199 975,797 526,151
Accrued dividends and interest 26,403 - - 9,146 3,122
Receivables for securities sold
but not delivered - - - 42,002 -
Other assets - - - 357 -
_________ _________ _______ _________ _______
Total assets 3,872,363 2,339,936 910,199 1,027,302 529,273
_________ _________ _______ _________ _______
Liabilities
___________
Advances (13,543) 17,365 (1,199) 3,892 9,722
Liability for collateral deposits - - 65,360 -
Payables for securities purchased
but not received - - 92,611 -
Other liabilities - - 1,672 -
_________ _________ _______ _________ _______
Total liabilities (13,543) 17,365 (1,199) 163,535 9,722
_________ _________ _______ _________ _______
Net assets available for benefits $ 3,885,906 2,322,571 911,398 863,767 519,551
========= ========= ======= ========= =======
Participant units outstanding 36,801 199,534 24,626 83,456 51,955
Participant unit value $ 104.88 11.64 37.01 10.35 10.00
====== ===== ===== ===== =====
</TABLE>
<PAGE>
F-23
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Net Assets Available for Benefits, Continued
December 31, 1993
(in thousands except participant unit value)
Total
U.S. Bond HP Investment
Assets Fund Fund Funds
______ ________ ____ ____
Investments, at fair value $ 308,256 107,449 9,013,748
Accrued dividends and interest - 21 38,692
Receivables for securities sold
but not delivered - - 42,002
Other assets - - 357
_______ _______ _________
Total assets 308,256 107,470 9,094,799
_______ _______ _________
Liabilities
___________
Advances - 163 16,400
Liability for collateral deposits - - 65,360
Payables for securities purchased
but not received - - 92,611
Other liabilities - 697 2,369
_______ _______ _________
Total liabilities - 860 176,740
_______ _______ _________
Net assets available for benefits $ 308,256 106,610 8,918,059**
======= ======= =========
Participant units outstanding * 10,661
Participant unit value $ * 10.00
=== =====
* Not applicable as values are determined by individual participants based
upon the time at which investments are made.
** Total for investment funds $8,918,059
Loans to participants 304,349
Other program accounts (1,714)
----------
Program net assets available for benefits $9,220,694
==========
<PAGE>
F-24
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Changes in Net Assets Available for Benefits
December 31, 1994
(in thousands)
<TABLE>
<CAPTION>
GE LT Mutual ST MM
Stock Fund Fund Fund Fund Fund
----------- ---- ----- ---- -----
<S> <C> <C> <C> <C> <C>
Income on investments:
Interest and dividends $ 117,277 158,945 67,104 46,680 21,734
Net realized gains (loss) on sale
and appreciation (depreciation)
in value of investments (82,178) (217,628) (83,595) (33,476) (1)
_________ _________ _______ ________ ________
Total investment income 35,099 (58,683) (16,491) 13,204 21,733
_________ _________ _______ ________ ________
Contributions:
Employee 194,037 56,306 61,898 64,396 13,226
Employer 95,449 18,632 17,759 24,306 3,796
_________ _________ _______ ________ ________
Total contributions 289,486 74,938 79,657 88,702 17,022
_________ _________ _______ ________ ________
Withdrawals including transfers (262,747) (137,366) (58,820) (91,824) (122,094)
Net loan transactions 19,225 (5,634) 3,759 (5,189) 13,816
Interfund transfers 288,486 (213,909) (39,159) (59,820) 85,670
_________ _________ _______ ________ ________
Total deductions and other
changes in net assets 44,964 (356,909) (94,220) (156,833) (22,608)
_________ _________ _______ ________ ________
Net increase (decrease) in net assets
available for benefits 369,549 (340,654) (31,054) (54,927) 16,147
Net assets available for benefits,
Beginning of year 3,885,906 2,322,571 911,398 863,767 519,551
_________ _________ _______ ________ ________
End of year $ 4,255,455 1,981,917 880,344 808,840 535,698
========= ========= ======= ======== ========
</TABLE>
<PAGE>
F-25
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Changes in Net Assets Available for Benefits, Continued
December 31, 1994
(in thousands)
Total
HP Investment
U.S. Bonds Fund Funds
__________ ____ ____
Income on investments:
Interest and dividends $ 281 2,871 414,892
Net realized gains (loss) on sale
and appreciation (depreciation)
in value of investments 14,747 - (402,131)
_______ ________ _________
Total investment income 15,028 2,871 12,761
_______ ________ _________
Contributions:
Employee 29,358 7 419,228
Employer 9,374 - 169,316
_______ ________ _________
Total contributions 38,732 7 588,544
_______ ________ _________
Withdrawals including transfers (52,228) (3,653) (728,732)
Net loan transactions (424) (348) 25,205
Interfund transfers (6,438) (54,830) -
_______ ________ _________
Total deductions and other changes
in net assets (59,090) (58,831) (703,527)
_______ ________ _________
Net increase (decrease) in net assets
available for benefits (5,330) (55,953) (102,222)
Net assets available for benefits,
Beginning of year 308,256 106,610 8,918,059
_______ ________ _________
End of year $ 302,926 50,657 8,815,837
======= ======== =========
<PAGE>
F-26
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Changes in Net Assets Available for Benefits
December 31, 1993
(in thousands)
<TABLE>
<CAPTION>
GE LT Mutual ST MM
Stock Fund Fund Fund Fund Fund
__________ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C>
Income on investments:
Interest and dividends $ 93,668 253,449 97,178 47,626 15,902
Net realized gains (loss) on sale
and appreciation (depreciation)
in value of investments 694,485 (32,954) (6,454) 636 -
_________ _________ _______ ________ ________
Total investment income 788,153 220,495 90,724 48,262 15,902
_________ _________ _______ ________ ________
Contributions:
Employee 180,914 68,777 64,561 83,033 16,485
Employer 91,235 22,656 18,327 31,257 4,940
_________ _________ _______ ________ ________
Total contributions 272,149 91,433 82,888 114,290 21,425
_________ _________ _______ ________ ________
Withdrawals including transfers (272,966) (192,829) (78,606) (119,760) (123,591)
Net loan transactions 6,569 (14,359) 2,209 (9,728) 27,945
Interfund transfers 106,507 (3,860) 63,635 (3,451) 176,108
_________ _________ _______ ________ ________
Total deductions and other
changes in net assets (159,890) (211,048) (12,762) (132,939) 80,462
_________ _________ _______ ________ ________
Net increase (decrease) in net assets
available for benefits 900,412 100,880 160,850 29,613 117,789
Net assets available for benefits,
Beginning of year 2,985,494 2,221,691 750,548 834,154 401,762
_________ _________ _______ ________ ________
End of year $ 3,885,906 2,322,571 911,398 863,767 519,551
========= ========= ======= ======== ========
</TABLE>
<PAGE>
F-27
GE SAVINGS AND SECURITY PROGRAM
Notes to Financial Statements
Changes in Net Assets Available for Benefits, Continued
December 31, 1993
(in thousands)
<TABLE>
<CAPTION>
Total
U.S. Bond RCA FI HP Investment
Fund Fund Fund Funds
--------- ----- ----- --------
<S> <C> <C> <C> <C>
Income on investments:
Interest and dividends $ 356 - 6,349 514,528
Net realized gains (loss) on sale
and appreciation (depreciation)
in value of investments 15,616 3,736 - 675,065
_______ ________ _______ _________
Total investment income 15,972 3,736 6,349 1,189,593
_______ ________ _______ _________
Contributions:
Employee 35,131 28 14 448,943
Employer 11,297 - - 179,712
_______ ________ _______ _________
Total contributions 46,428 28 14 628,655
_______ ________ _______ _________
Withdrawals including transfers (61,601) (20,200) (9,296) (878,849)
Net loan transactions (520) (223) (1,291) 10,602
Interfund transfers 1,278 (258,341) (81,876) -
_______ ________ _______ _________
Total deductions and other
changes in net assets (60,843) (278,764) (92,463) (868,247)
_______ ________ _______ _________
Net increase (decrease) in net assets
available for benefits 1,557 (275,000) (86,100) 950,001
Net assets available for benefits,
Beginning of year 306,699 275,000 192,710 7,968,058
_______ ________ _______ _________
End of year $ 308,256 - 106,610 8,918,059
======= ======== ======= =========
</TABLE>
<PAGE>
F-28
Schedule I
GE SAVINGS AND SECURITY PROGRAM
Schedule of Assets Held for Investment Purposes
December 31, 1994
<TABLE>
<CAPTION>
Description Cost Fair Value
___________ ______ ______
<S> <C> <C>
Employer Securities
___________________
Corporate Stocks - Common
General Electric Company (82,706,576 shares) $ 2,755,992,202 4,218,035,357
Shares of Registered Investment Companies
_________________________________________
LT Fund (188,588,553 shares) 2,163,902,854 1,983,951,582
Mutual Fund (26,220,947 shares) 942,911,069 880,761,618
</TABLE>
<PAGE>
F-29
Schedule I, Continued
GE SAVINGS AND SECURITY PROGRAM
Schedule of Assets Held for Investment Purposes
December 31, 1994
<TABLE>
<CAPTION>
Description
___________
US Savings Bonds (Series E and EE)
__________________________________
Issuer Units Cost Fair Value
______ _____ ______ _______
<S> <C> <C> <C>
1959 US Savings Bond E Series 227 $ 4,256 33,419
1960 US Savings Bond E Series 159 2,981 22,876
1961 US Savings Bond E Series 124 2,325 17,614
1962 US Savings Bond E Series 173 3,244 24,156
1963 US Savings Bond E Series 246 4,613 33,723
1964 US Savings Bond E Series 289 5,419 38,908
1965 US Savings Bond E Series 346 6,488 41,321
1966 US Savings Bond E Series 483 9,056 55,504
1967 US Savings Bond E Series 854 16,013 98,014
1968 US Savings Bond E Series 1,379 25,856 154,577
1969 US Savings Bond E Series 1,628 30,525 176,692
1970 US Savings Bond E Series 1,988 37,275 207,281
1971 US Savings Bond E Series 2,674 50,138 241,727
1972 US Savings Bond E Series 3,345 62,719 290,923
1973 US Savings Bond E Series 5,072 95,100 428,108
1974 US Savings Bond E Series 8,312 155,850 666,776
1975 US Savings Bond E Series 11,387 213,506 881,232
1976 US Savings Bond E Series 15,617 292,819 1,166,318
1977 US Savings Bond E Series 23,189 434,794 1,645,014
1978 US Savings Bond E Series 38,811 727,706 2,406,621
1979 US Savings Bond E Series 65,678 1,231,463 3,999,484
1980 US Savings Bond EE Series 25,170 1,258,500 3,911,488
1981 US Savings Bond EE Series 24,692 1,234,600 3,423,193
1982 US Savings Bond EE Series 28,571 1,428,550 3,655,858
1983 US Savings Bond EE Series 51,042 2,552,100 5,678,820
1984 US Savings Bond EE Series 50,475 2,523,750 5,325,601
1985 US Savings Bond EE Series 67,301 3,365,050 6,642,952
</TABLE>
<PAGE>
F-30
Schedule I, Continued
GE SAVINGS AND SECURITY PROGRAM
Schedule of Assets Held for Investment Purposes
December 31, 1994
<TABLE>
<CAPTION>
US Savings Bonds (Series E and EE) (continued)
______________________________________________
Issuer Units Cost Fair Value
______ _____ ______ _______
<S> <C> <C> <C>
1986 US Savings Bond EE Series 148,954 $ 7,447,700 13,488,393
1987 US Savings Bond EE Series 160,289 8,014,450 12,523,917
1988 US Savings Bond EE Series 194,224 9,711,200 14,361,705
1989 US Savings Bond EE Series 284,624 14,231,200 19,550,348
1990 US Savings Bond EE Series 292,264 14,613,200 18,483,215
1991 US Savings Bond EE Series 319,669 15,983,450 18,844,831
1992 US Savings Bond EE Series 1,103,778 55,188,900 61,606,263
1993 US Savings Bond EE Series 922,793 46,139,650 49,058,627
1994 US Savings Bond EE Series 874,206 43,710,300 44,324,874
___________ ____________
Total U.S. Savings Bonds 230,814,746 293,510,373
___________ ____________
</TABLE>
<PAGE>
F-31
Schedule I, Continued
GE SAVINGS AND SECURITY PROGRAM
Schedule of Assets Held for Investment Purposes
December 31, 1994
<TABLE>
<CAPTION>
Description
___________
Debt Securities
_______________
Issuer Rate Maturity Cost Fair Value
______ __________ ________ ____ ______
<S> <C> <C> <C> <C>
Advanta Mtg Lntr 6.30% July 25, 1994 $ 6,477,498 6,015,134
Advanta Corp 5.13 November 15, 1996 9,993,349 9,477,300
Advanta Credit Card Master Trust II 6.29 September 1, 2000 7,274,204 7,267,162
Arkla Inc 9.88 April 15, 1997 3,199,625 3,030,000
Ashland Oil Co 10.13 April 15,1996 5,224,717 5,125,250
Associates Corp North Amer Mtn 4.84 June 14, 1996 9,781,640 9,597,000
Banponce Finl Corp Mtn 6.83 November 25,1996 4,995,307 4,943,500
Banponce Finl Corp Mtn 6.88 January 7, 1997 9,999,193 10,039,800
Banponce Finl Copr Mtn 5.68 March 28, 1996 4,853,518 4,776,373
Banponce Finl Grp Mtn 5.60 March 25, 1996 4,948,235 4,870,350
CMC Secs Corp II 6.32 September 25, 2023 9,283,321 8,765,365
Chase Manhattan Corp 7.50 December 1, 1997 15,458,332 14,627,250
Citicorp Mtn Bk Entry 7.57 February 24, 1995 9,999,464 10,011,700
Commerzebank 6.50 January 3, 1995 2,918,946 2,918,946
Countrywide Fdg Corp Mtn 5.34 April 1, 1996 10,000,000 9,724,600
CS First Boston Mtg Secs Corp 6.02 January 27, 1995 597,391 597,391
Dean Witter Discover & Co. Mtn 5.89 September 29, 1997 3,994,237 3,990,000
Discover Cr Corp Mtn Bk Entry 6.61 July 24, 1995 4,989,874 5,009,200
EQC HomEquity Loan 5.80 December 15, 2009 12,369,336 11,358,993
FDIC Remic Tr. 6.40 January 25, 2025 24,359,303 24,086,471
Federal Home Ln PC 5.95 July 1, 2024 4,982,208 4,810,651
Federal Home Ln PC 6.00 December 1, 2008 3,901,913 3,780,464
Federal Home Ln PC 7.50 December 1, 2006 5,876,141 5,469,433
Federal Home Ln Mtg PC Gtd 7.50 September 15, 2020 9,712,188 9,112,400
Federal Home Ln Mtg PC Gtd 7.95 January 15, 2020 4,178,358 3,881,200
Federal Home Ln Mtg PC Gtd -* July 15, 2019 3,685,238 3,528,300
Federal Home Loan Bank Cons Disc Notes -* January 3, 1995 64,929,459 64,929,459
Federal Home Loan Bank Cons Disc Notes -* January 30, 1995 20,403,559 20,403,559
Federal Home Loan Bank Cons Disc Notes -* January 3, 1995 42,016,574 42,016,574
<FN>
*These are discounted instruments and therefore interest rate does not apply.
</TABLE>
<PAGE>
F-32
Schedule I, Continued
GE SAVINGS AND SECURITY PROGRAM
Schedule of Assets Held for Investment Purposes
December 31, 1994
<TABLE>
<CAPTION>
Debt Securities (continued)
___________________________
Issuer Rate Maturity Cost Fair Value
______ __________ ________ ____ ______
<S> <C> <C> <C> <C>
Federal Home Loan Mtge Disc Notes -%* January 3, 1995 $19,994,133 19,994,133
Federal Natl Mtg Assn Disc Notes - * January 9, 1995 20,473,077 20,473,077
Federal Natl Mtg Assn Disc Notes - * January 30, 1995 19,905,750 19,905,750
Federal Natl Mtg Assn Disc Notes - * April 17, 1995 11,486,410 11,486,410
Federal Natl Mtg Assn Disc Notes - * April 27, 1995 13,004,040 13,004,040
Federal Natl Mtg Assn Disc Notes - * May 22, 1995 16,577,862 16,577,862
Federal Natl Mtg Assn Disc Notes - * January 8, 1995 29,975,750 29,975,750
FNMA Pool 6.00 May 1, 2001 1,504,185 1,474,238
Federal Natl Mtg Assn REMIC 7.50 October 25, 2019 4,724,859 4,469,360
Federal Natl Mtg Assn REMIC - July 25, 2021 4,445,902 4,846,920
Federal Natl Mtg Assn REMIC 8.50 November 25, 2019 3,112,440 3,033,737
Federal Natl Mtg Assn Gtd - August 25, 2023 6,048,595 5,776,863
First Chicago Corp Mtn Bk Ent 7.02 March 6, 1995 4,999,571 5,005,350
First Chicago Master Tr 6.30 January 15, 1999 3,199,867 3,193,971
First Deposit 4.90 June 15, 2000 14,998,595 14,629,650
First USA Bk Wilmington DEL 6.04 November 30,1995 5,000,000 4,995,000
First USA Bk Wilmington DEL 6.88 September 12, 1996 12,302,417 12,250,025
First USA Bk Wilmington DEL 5.75 January 15, 1999 4,982,304 4,507,150
First USA Cr Card Master Tr. 6.43 February 15,2000 13,001,240 13,004,030
First USA Cr Card Master Tr. 6.31 December 15, 2003 3,750,000 3,746,475
Ford Cr Auto Ln Master Tr 6.88 January 15, 1999 12,012,202 11,726,160
Ford Motor Cr Co 6.25 February 26, 1998 10,304,033 9,420,300
GNMA II 30Yr Feb TBA 7.50 January 15, 1999 26,873,438 26,875,800
General Motors Accep Corp Mtn 8.35 September 5, 1996 12,712,533 12,395,295
General Motors Accep Corp Mtn 6.75 July 10, 1997 9,246,643 8,838,348
General Motors Accep Corp Mtn 5.89 November 15,1998 10,684,848 10,683,843
GNMA TBA Feb 7.00 January 15, 1999 18,718,000 18,694,125
GNMA TBA 6.50 January 15, 1999 22,010,105 22,248,169
Home Equity Loan 4.65 December 20, 2010 7,108,590 6,710,029
ITT Floor Plan Receivables Net 6.39 February 15,2001 2,399,086 2,400,000
Lehman Bros Hldgs Mtn 8.05 January 15, 2019 2,129,132 1,905,000
Lockheed Corp 6.26 May 11, 1995 9,998,609 10,005,600
</TABLE>
*These are discounted instruments and therefore interest rate does not apply.
<PAGE>
F-33
Schedule I, Continued
GE SAVINGS AND SECURITY PROGRAM
Schedule of Assets Held for Investment Purposes
December 31, 1994
<TABLE>
<CAPTION>
Debt Securities (continued)
___________________________
Issuer Rate Maturity Cost Fair Value
______ __________ ________ ____ ______
<S> <C> <C> <C> <C>
MBNA Master Cr Card Tr 6.28% July 15,1998 $ 4,999,104 4,995,300
MBNA Master Cr Card Tr 6.30 January 16, 2002 9,995,698 9,990,600
MBNA Master Cr Card Tr 5.82 March 15, 2000 5,800,000 5,841,644
Merrill Lynch & Co Inc 5.00 December 15, 1996 5,000,000 4,714,250
Morgan Stanley Group Inc. 7.32 January 15, 1997 3,770,485 3,685,425
National City Corp 5.81 January 31, 1997 7,495,125 7,462,500
Nationsbank Cr Card Master Tr 4.75 September 15, 1998 15,485,477 14,603,790
News Amer Hldgs Inc 12.00 December 15, 2001 15,667,566 14,999,310
People's Bank Cr Card Master Tr. 6.34 January 3, 2015 3,997,877 3,995,000
Salomon Bros Mtg Secs II Inc 8.13 November 1, 2012 1,930,292 1,754,927
Sears Roebuck & Co 9.25 April 15, 1998 7,648,314 7,178,150
Skandia Capital AB 6.00 November 2, 1998 9,451,028 9,100,000
Society Student Loan Trust 5.89 April 25, 2003 17,236,630 17,187,960
Southern Calif Edison Co 6.13 July 15, 1997 4,900,675 4,753,500
Structured Asset Secs Corp 6.87 August 25, 2026 8,000,860 7,689,208
Tennessee Valley Auth Disc Nts 4.00 July 20, 1995 14,990,896 14,081,580
TMS Home Equity LNTR 5.68 February 15, 2009 13,660,604 12,597,809
Time Warner Inc 6.05 July 1, 1995 6,000,000 5,949,780
Toronto Dominion Bk Ont 9.90 February 1, 1999 (499,627) 0
United States Treas Notes 6.00 June 30, 1996 40,980,533 40,116,040
United States Treas Notes 6.25 August 31, 1996 4,733,330 4,649,823
United States Treas Notes 9.38 April 15, 1996 9,923,172 9,659,696
United States Treas Notes 6.50 September 30, 1996 169,708,414 167,092,405
Petroleos Mexicanos 7.44 March 8, 1999 2,287,058 2,208,000
Plus Cap Ltd 7.88 January 15, 1995 5,001,729 5,001,730
Premier Auto TR 6.20 October 2, 1997 4,199,474 4,112,220
Public Svc Co NH 8.85 May 15, 1996 8,342,401 8,008,960
Unisys Corp 9.75 September 15,1996 6,934,443 6,567,000
Union Bank Switzerland 6.00 January 3, 1995 10,806,397 10,806,397
_____________ _____________
Total Debt Securities 1,096,535,299 1,077,219,289
</TABLE>
<PAGE>
F-34
Schedule I, Continued
GE SAVINGS AND SECURITY PROGRAM
Schedule of Assets Held for Investment Purposes
December 31, 1994
<TABLE>
<CAPTION>
Short Term Money Market Instruments
___________________________________
Issuer Rate Maturity Cost Fair Value
______ __________ ________ ____ ______
<S> <C> <C> <C> <C>
Algemene Bank Netherland NV 5.75% January 17, 1995 $20,000,000 20,000,000
Algemene Bank Netherland NV 5.88 January 3, 1995 10,600,000 10,600,000
Algemene Bank Netherland NV 5.75 January 17, 1995 1,500,000 1,500,000
Associates Corp North America 5.69 January 20,1995 19,939,939 19,939,939
Associates Corp North America 5.69 January 20, 1995 1,495,495 1,495,495
Bankers Trust Co. 5.33 January 18, 1995 19,949,661 19,949,661
Bayerische Vereinsbank AG NY 5.81 January 23, 1995 20,000,000 20,000,000
Bayerische Landesbank 5.87 January 31, 1995 16,000,000 16,000,000
Bear Stearns COS Inc 5.77 February 6, 1995 20,282,292 20,282,292
Commerzebank 5.50 January 17, 1995 15,000,000 15,000,000
Commerzebank 6.50 January 3, 1995 22,921,720 22,921,720
Commonwealth Bank Australia 5.54 February 8, 1995 19,883,045 19,883,045
Commonwealth Bank Australia 5.90 January 3, 1995 9,996,722 9,996,722
Deutsche Bank AG 5.95 January 11, 1995 20,000,000 20,000,000
Goldman Sachs Group LP 5.30 January 6, 1995 19,985,278 19,985,278
Halifax Building Society 5.71 January 24, 1995 20,724,120 20,724,120
Kredietbank 5.36 January 20, 1995 20,142,857 20,142,857
Merrill Lynch & Co. Inc. 5.75 January 12, 1995 7,985,944 7,985,944
Mitsubishi Bank 8.50 January 3, 1995 15,420,000 15,420,000
Morgan Stanley Group Inc. 5.96 January 6, 1995 9,991,722 9,991,722
National Bank Australia FDG 5.90 January 3, 1995 7,997,378 7,997,378
Norwest Corp 5.77 January 10, 1995 19,971,150 19,971,150
Republic National Bank 6.06 February 1, 1995 19,199,286 19,199,286
Royal Bank of Canada 5.81 February 24, 1995 19,600,000 19,600,000
Societe Generale 5.50 January 25, 1995 20,000,000 20,000,000
State Street Cayman Islands 6.38 January 3, 1995 5,990,000 5,990,000
State Street Cayman Islands 6.38 January 3, 1995 940,000 940,000
State Street Cayman Islands 6.38 January 3, 1995 430,000 430,000
Swiss Bank Corp. 5.43 January 3, 1995 20,000,000 20,000,000
</TABLE>
<PAGE>
F-35
Schedule I, Continued
GE SAVINGS AND SECURITY PROGRAM
Schedule of Assets Held for Investment Purposes
December 31, 1994
<TABLE>
<CAPTION>
Short Term Money Market Instruments (continued)
_______________________________________________
Issuer Rate Maturity Cost Fair Value
______ __________ ________ ____ ______
<S> <C> <C> <C> <C>
Non-Interest bearing cash $ 54,495 54,495
_____________ _____________
Total short term money market instruments $ 426,001,104 426,001,104
_____________ _____________
Investment Contracts
____________________
Hartford Life Ins. Co. 9.11% September 13, 1995 $ 36,366,854 36,366,854
Met Life GAC 8.74 January 5, 1995 37,974,133 37,974,133
_____________ _____________
Total investment contracts 74,340,987 74,340,987
_____________ _____________
Total investments $ 7,690,498,261 $ 8,953,820,710
============= =============
Loans to Participants Rate Term Cost Fair Value
_____________________ ____ ________ ____ ______
Various 7.25% - 8.83% 12-54 months, or $ 288,410,902 288,410,902
5-15 years for ============
principal residence
loans
</TABLE>
<PAGE>
F-36
Schedule II
GE SAVINGS AND SECURITY PROGRAM
Schedule of Assets Held for Investment Purposes Which Were
Both Acquired and Disposed of Within the Plan Year
Year Ended December 31, 1994
<TABLE>
<CAPTION>
Description of Investment, Including
Identity of Issuer, Borrower, Maturity Date, Rate of Interest, Costs of Proceeds of
Lessor, or Similar Party Collateral, Par or Maturity Value Acquisitions Dispositions
_____________________________ __________________________________________ _____________ _____________
<S> <C> <C> <C> <C> <C>
Advanta Cr. Card Master Trust October 15, 2001 Variable $10,000,000 $ 10,000,000 10,001,563
First Chicago Corp. July 1, 1999 9.88% 5,350,000 5,905,865 5,840,435
First USA BI March 7, 1997 Variable 4,200,000 4,187,652 4,190,340
Ford Cr. Auto Loan Master Trust July 15, 2001 Variable 10,000,000 10,000,000 10,004,688
General Motors Acceptance Corp. Mtn. January 11, 1999 6.00% 5,120,000 4,847,616 4,833,075
Golden West Financial Corp. August 30, 1998 8.63% 5,000,000 5,273,850 5,129,300
Household Affinity Cr. Card May 15, 2001 Variable 46,450,000 46,428,227 46,202,648
ITT Floorplan Receivables Mt. February 15, 2001 Variable 5,000,000 4,997,736 5,001,054
MBNA Master Credit Card Trust March 15, 2001 Variable 41,500,000 41,461,094 41,519,453
MBNA Master Credit Card Trust January 15, 2002 Variable 10,000,000 9,995,313 9,995,431
Occidental Pete. Corp Mtn. October 19, 1994 4.75% 5,000,000 5,000,350 5,000,000
Occidental Pete. Corp Mtn. November 9, 1998 5.85% 5,000,000 4,678,600 4,617,950
Prudential Home Mortgage Secs. Co. January 25, 2024 6.50% 10,183,822 10,151,641 10,160,957
Xerox Credit Corp. January 15, 1996 6.25% 2,200,000 2,202,640 2,184,512
___________ ___________
$165,130,584 164,681,406
=========== ===========
</TABLE>
<PAGE>
F-37
Schedule III
GE SAVINGS AND SECURITY PROGRAM
Schedule of Loans In Default
December 31, 1994
<TABLE>
<CAPTION>
Amount Received (g)
During Reporting Amount Overdue
Year Detailed Description ______________________
(a) (b) (c) ______________ (f) of Loan Including (h) (i)
Dates of Making and
Party in Identity Original (d) (e) Unpaid Maturity, Interest Principal Interest
Interest and Amount Balance Rate, the Type and
Identi- Address of of Loan Principal Interest at End Value of Collateral,
fication Obligor of Year Any Renegotiation of
the Loan and the
Terms of the
Renegotiation, and
Other Material Items
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- Various $259,662,750 49,627,892 11,467,835 159,211,824 Varies according 7,416,675 347,826
plan to term of loan
participants
<FN>
* For purposes of this schedule, loans in default represent loans past due
but not yet written off.
</TABLE>
<PAGE>
Exhibit 23
Consent of Independent Auditors
The Board of Directors
General Electric Company
We consent to incorporation by reference in the Registration
Statements of General Electric Company on Form S-8 (Nos. 33-24679
and 33-47500) of our report dated April 25, 1995, relating to the
financial statements and supplemental schedules of GE Savings and
Security Program as of and for the years ended December 31, 1994 and
1993, and of our report dated February 6, 1995, relating to the
financial statements of GE S&S Program Mutual Fund and GE S&S Long
Term Interest Fund as of December 31, 1994, and for each of the two
years in the period then ended appearing in the annual report on
Form 11-K of General Electric Company for the year ended December
31, 1994.
We also consent to the reference to our firm under the heading
"Experts" in the above referenced Registration Statement
No. 33-47500.
KPMG Peat Marwick LLP
---------------------
Stamford, Connecticut
June 29, 1995
<PAGE>
Exhibit 99
[GE LOGO APPEARS HERE]
S&S Program
Mutual Funds Annual Report & S&SP Disclosure Statement
December 31, 1994
This document constitutes part of a prospectus covering securities that have
been registered under the Securities Act of 1933.
<PAGE>
Table of Contents
A Letter from the Chairman 1
A Message from the Managers 2-3
Financial Highlights 4-5
Financial Statements 6-8
Notes to Financial Statements 9-13
Schedules of Investments 14-25
Report of Independent Auditors 26
GE S&S Program 27
Schedules of Investments (Unaudited) 28-31
GE S&S Program Supplemental Information 32-33
GE S&S Program Disclosure Statement 34-43
GE S&S Program Funds Meet The Managers 44
GE S&S Program Funds Investment Team 44
GE S&S Program Funds Services 45
<PAGE>
1
A LETTER from the Chairman
[PHOTO OF DALE F. FREY APPEARS HERE]
Market Overview
1994 was a difficult year for the financial markets. The U.S. economy
maintained a very strong level of growth throughout the year, which fueled
concerns about overheating and fears of inflation. In response to these
issues, the Federal Reserve Board raised interest rates six times - bringing
the total increase in short-term interest rates to 250 basis points for the
year. Together, these factors produced a difficult environment for investing.
The U.S. stock market sent investors on a roller coaster ride in 1994, as
attention shifted between strong corporate earnings growth and the sharp rise
in interest rates. Although the Dow Jones Industrial Average did end the year
in positive territory, all other major equity market indices experienced a
drop in price. This environment proved very difficult for most fund managers
and 79% of all general equity mutual funds failed to beat the S&P 500.
1994 was especially trying for bondholders. Inflation fears and the Federal
Reserve's interest rate hikes resulted in price declines which were greater
than the coupons earned on most bonds. As a result, bonds experienced their
first negative return since 1969.
Looking ahead, we remain cautious about the short-term outlook for the U.S.
equity market. Until the Federal Reserve finally ends its string of interest
rate hikes, we believe the U.S. stock market will have limited upside
potential. The bond market will continue to fluctuate with changing
perceptions of inflation and potential interest rate hikes. However, the worst
of the bond market correction appears to have passed and bond yields are now
more attractive than they have been for some time.
Although 1994 was a difficult year, we have maintained our disciplined
investment approach throughout and strongly believe that this will pay off
over time. On behalf of the team at GE Investments, we look forward to serving
your investment needs in 1995.
Sincerely,
Dale F. Frey
Chairman of the Board and President
General Electric Investment Corporation
<PAGE>
2
A MESSAGE FROM THE MANAGERS
[GRAPH APPEARS HERE]
PORTFOLIO COMPOSITION
Consumer 32.1%
Energy & Basic Materials 18.1%
Capital Goods 15.1%
Financial Services 13.3%
Utilities 9.3%
Technology 8.2%
Transportation 2.6%
Cash & Other 1.3%
Investment Profile
A Fund designed for investors who seek long-term growth of capital and income.
The Fund invests principally in domestic common stocks or in securities
convertible into common stocks. Cash, preferred stocks, bonds and foreign
securities can also be held.
[GRAPH APPEARS HERE]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE S&S PROGRAM
MUTUAL FUND
<TABLE>
<CAPTION>
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
S&S Program Mutual Fund $12,650 $14,763 $14,733 $16,943 $22,043 $21,426 $27,682 $29,924 $33,365 $32,778
S&P 500 Index 13,170 15,593 16,404 19,144 25,136 24,331 31,752 34,197 37,651 38,178
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
for the periods ended December 31, 1994
- -----------------------------------------------------------------------------
1 Yr. 5 Yr. 10 Yr.
S&S Program Mutual -1.76% 8.26% 12.60%
S&P 500 Index 1.38% 8.72% 14.33%
- -----------------------------------------------------------------------------
See notes to performance.
Past performance is no guarantee of future results.
S&S PROGRAM MUTUAL FUND
- -----------------------------------------------------------------------------
Eugene K. Bolton, Portfolio Manager
[PHOTO OF EUGENE K. BOLTON APPEARS HERE]
The S&S Program Mutual Fund had a return of negative 1.76% in 1994. The S&P
500 returned 1.38% for the same period. Our WSJ/Lipper peer group of 348
growth and income funds had an average return of negative 0.94%. As the data
indicates, 1994 was a difficult year for stocks and fund managers.
S&S Program Mutual's relative performance within this environment was helped
by an overweighting in healthcare and an underweighting in the utility sector.
Meanwhile, performance was hurt by an overweighting in financial stocks, which
lagged due to the unexpectedly large rise in interest rates. We do, however,
expect the financial sector's performance to improve in 1995 as interest rates
stabilize. The Fund was also hurt by an underweighting in certain basic
material industries such as commodity chemicals and metals. Surprisingly large
price increases in these commodities resulted in sharp stock price
outperformance. In 1995, we would expect the relative performance of commodity
stocks to moderate as the economy slows.
While sector weightings did have some impact on performance, the principal
focus of the Fund is on bottom-up stock selection. Stock selection was
particularly difficult last year and a number of our large holdings lagged the
market. In cases where the underperformance was the result of deteriorating
fundamentals, the positions have been sold or reduced. But in many cases, the
fundamentals remain strong and the stocks have become even more attractive on
a valuation basis. In these instances our positions have been maintained or
increased.
In summary, we plan to stick with the stock selection disciplines that have
worked well for us over the years. We believe the portfolio contains a great
deal of value and is well positioned for 1995.
NOTES TO PERFORMANCE
- -----------------------------------------------------------------------------
Total returns assume changes in share price, reinvestment of dividends and
capital gains.
The Standard & Poor's Composite Index of 500 Stocks (S&P 500), and the Lehman
Brothers Aggregate Bond Index, are unmanaged indices and do not reflect the
actual cost of investing in the instruments that comprise each index. The S&P
500 Index is a composite of the prices of 500 widely held U.S. stocks
recognized by investors to be representative of the stock market in general.
The Lehman Brothers Aggregate Bond Index is a composite index of short,
medium, and long-term bond performance and is widely recognized as a barometer
of the bond market in general. The results shown for the foregoing indices
assume reinvestment of net dividends.
<PAGE>
3
S&S LONG TERM INTEREST FUND
- -----------------------------------------------------------------------------
Robert A. MacDougall, Portfolio Manager
[PHOTO OF ROBERT A. MACDOUGALL APPEARS HERE]
S&S Long Term Interest Fund had a total return of negative 2.50% in 1994. The
interest income generated by the portfolio and distributed to unitholders was
more than offset by the price depreciation caused by higher interest rates.
The LB Aggregate Bond Index returned a negative 2.92% for the year in what was
the worst bond market since the inception of the index in 1976. However,
longer term investors may be comforted by the fact that even after such a
terrible year for the bond market, the Fund's average annual compounded return
since inception (1980) is 11.71% (see chart below for 5 and 10 year total
returns). Moreover, the Fund outperformed its WSJ/Lipper peer group of 210
intermediate bond funds which had an average return of negative 3.49% in 1994.
The Fund managed to outperform its peers thanks to defensive measures taken
during 1994. We targeted a below average duration and positioned the maturity
distribution of our securities so as to minimize the impact of rising interest
rates. To increase portfolio yield we overweighted corporate bonds and
underweighted governments. Our mortgage-backed securities also added yield and
performance. We have been and continue to be active in the CMO (collateralized
mortgage obligation) market, but avoided the well-publicized problems of some
of our more aggressive competitors by emphasizing the less volatile securities
in this sector.
As we look ahead to 1995, we expect additional increases in short-term rates
as the Federal Reserve continues to slow the pace of economic activity. The
bulk of the rise in rates is probably over, however, especially in the long
end. As such we anticipate 1995 will bring a return to positive performance
for the bond market and the S&S Long Term Interest Fund.
- -----------------------------------------------------------------------------
[GRAPH APPEARS HERE]
PORTFOLIO COMPOSITION
U.S. Government 35.3%
Mortgage Backed 26.7%
Corporate Notes 25.7%
Asset Backed 11.8%
Cash & Other 0.5%
- -----------------------------------------------------------------------------
INVESTMENT PROFILE
A Fund designed for investors who seek a high interest rate of return over a
long-term period consistent with prudent management and preservation of
capital. The Fund invests principally in obligations of the U.S. Government,
corporate bonds, notes and other types of fixed income investments.
[GRAPH APPEARS HERE]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE S&S LONG TERM
INTEREST FUND
<TABLE>
<CAPTION>
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
S&S Long Term Interest 11,970 14,161 14,260 15,315 17,535 19,184 22,253 23,789 26,120 25,476
LB Aggregate Bond Index 12,210 14,078 14,472 15,616 17,880 19,489 22,607 24,280 26,635 25,863
</TABLE>
- -----------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
for the periods ended December 31, 1994
- -----------------------------------------------------------------------------
1 Yr. 5 Yr. 10 Yr.
S&S Long Term Interest -2.50% 7.76% 9.80%
LB Aggregate Bond Index -2.92% 7.66% 9.96%
See notes to performance.
Past performance is no guarantee of future results.
- -----------------------------------------------------------------------------
<PAGE>
4
FINANCIAL HIGHLIGHTS
Selected data based on a unit outstanding during the year ended December 31:
S&S PROGRAM MUTUAL FUND
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $37.01 $37.21 $37.97 $31.87 $35.33
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 1.00 1.04 1.09 1.18 1.27
Net realized and unrealized
gains (losses) on investments (1.65) 3.23 2.00 8.13 (2.29)
------- ------- ------- ------- -------
TOTAL INCOME (LOSS) FROM
INVESTMENT OPERATIONS (0.65) 4.27 3.09 9.31 (1.02)
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income 1.00 1.04 1.09 1.18 1.33
Net realized gains 1.71 3.43 2.76 2.03 1.11
Tax basis return of capital 0.06 0.00 0.00 0.00 0.00
-------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS 2.77 4.47 3.85 3.21 2.44
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR $33.59 $37.01 $37.21 $37.97 $31.87
======== ======== ======== ======== ========
TOTAL RETURN (1.76%) 11.47% 8.14% 29.21% (2.80%)
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of year
(in thousands) $1,717,813 $1,805,194 $1,570,664 $1,367,091 $1,045,073
Ratio of net investment income
to average net assets 2.70% 2.67% 2.91% 3.24% 3.73%
Ratio of expenses to average net assets 0.13% 0.11% 0.11% 0.14% 0.21%
Portfolio turnover rate 33% 37% 40% 29% 23%
</TABLE>
<PAGE>
5
S&S LONG TERM INTEREST FUND
<TABLE>
<CAPTION>
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $11.64 $11.82 $12.03 $11.28 $11.26
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income 0.74 0.77 0.89 0.97 0.89
Net realized and unrealized
gains (losses) on investments (1.03) 0.36 (0.10) 0.75 0.10
-------- -------- -------- -------- --------
Total income (loss) from
investment operations (0.29) 1.13 0.79 1.72 0.99
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS FROM:
Net investment income 0.74 0.77 0.89 0.97 0.97
Net realized gains 0.09 0.54 0.11 0.00 0.00
-------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS 0.83 1.31 1.00 0.97 0.97
-------- -------- -------- -------- --------
NET ASSET VALUE, END OF YEAR $10.52 $11.64 $11.82 $12.03 $11.28
======== ======== ======== ======== ========
TOTAL RETURN (2.50%) 9.80% 6.92% 16.03% 9.40%
RATIOS / SUPPLEMENTAL DATA:
Net assets, end of year
(in thousands) $2,806,433 $3,238,094 $3,053,167 $2,523,428 $1,859,019
Ratio of net investment income
to average net assets 6.66% 6.36% 7.55% 8.60% 8.95%
Ratio of expenses to average net assets 0.11% 0.07% 0.07% 0.06% 0.12%
Portfolio turnover rate 219% 154% 45% 65% 214%
</TABLE>
<PAGE>
6
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 1994 (Amounts in thousands)
<TABLE>
<CAPTION>
S&S PROGRAM S&S LONG TERM
MUTUAL FUND INTEREST FUND
<S> <C> <C>
ASSETS
Investments in securities, at market
(Cost $1,556,398 and $3,041,548, respectively) $1,675,875 $2,945,500
Temporary investments (at amortized cost) 33,824 328,789
Foreign currency (Cost $175 and
$10,395, respectively) 180 10,474
Receivable for investments sold 14,022 107,965
Dividends receivable 4,750 0
Interest receivable 938 44,818
Tax reclaim receivable 71 34
Receivable for fund units sold 0 49,005
Net receivable on forward foreign currency contracts 0 7
------------ ------------
TOTAL ASSETS 1,729,660 3,486,592
------------ ------------
LIABILITIES
Distributions payable to shareholders 0 608
Payable upon return of securities loaned 0 477,058
Payable for investments purchased 10,045 200,112
Payable for fund units repurchased 323 283
Payable to GEIC 1,479 1,868
Payable to custodian 0 230
------------ ------------
TOTAL LIABILITIES 11,847 680,159
------------ ------------
NET ASSETS $1,717,813 $2,806,433
============ ============
NET ASSETS CONSIST OF:
Capital paid in 1,605,746 3,026,089
Undistributed (overdistributed) net investment income 40 (827)
Accumulated net realized gain (loss) (7,478) (122,926)
Net unrealized appreciation (depreciation) on:
Investments 119,477 (96,048)
Foreign currency transactions 5 86
Foreign denominated assets and liabilities 23 59
------------ ------------
NET ASSETS $1,717,813 $2,806,433
============ ============
Units outstanding ($25.00 and $10.00 par value, respectively) 51,135 266,671
Net asset value, offering and redemption price per unit $33.59 $10.52
<FN>
See Notes to Financial Statements
</TABLE>
<PAGE>
7
STATEMENTS OF OPERATIONS
For the year ended December 31, 1994 (Amounts in thousands)
<TABLE>
<CAPTION>
S&S PROGRAM S&S LONG TERM
MUTUAL FUND INTEREST FUND
<S> <C> <C>
INVESTMENT INCOME
INCOME:
Dividends $45,654 $0
Interest 4,232 198,791
Less: Foreign taxes withheld (370) (183)
------------ ------------
TOTAL INCOME 49,516 198,608
------------ ------------
EXPENSES:
Administrative expenses 1,265 1,659
Unitholder servicing agent expenses 218 232
Transfer agent fees 307 583
Custody and accounting 185 294
Professional fees 105 172
Registration, filing and printing 140 148
Miscellaneous expenses 5 17
------------ ------------
TOTAL EXPENSES 2,225 3,105
------------ ------------
NET INVESTMENT INCOME 47,291 195,503
------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain/(loss) on:
Investments 80,678 (121,547)
Futures 0 (49)
Written options 0 277
Foreign currency transactions (36) (2,434)
Increase (decrease) in unrealized appreciation/depreciation on:
Investments (159,857) (149,811)
Foreign currency transactions 6 86
Foreign denominated assets and liabilities 72 59
------------ ------------
Net realized and unrealized gain (loss)
on investments (79,137) (273,419)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $(31,846) $(77,916)
============ ============
<FN>
See Notes to Financial Statements
</TABLE>
<PAGE>
8
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended December 31, 1994 and 1993
(Amounts in thousands )
<TABLE>
<CAPTION>
S&S Program S&S Long Term
Mutual Fund Interest Fund
--------------------- --------------------
<S> <C> <C> <C> <C>
1994 1993 1994 1993
INCREASE IN NET ASSETS
OPERATIONS:
Net investment income $47,291 $45,717 $195,503 $206,927
Net realized gain (loss) on investments,
futures, written options and foreign
currency transactions 80,642 146,889 (123,753) 166,686
Net increase (decrease) in unrealized
appreciation/depreciation (159,779) (7,559) (149,666) (71,038)
--------- --------- --------- ---------
Net increase (decrease) from operations (31,846) 185,047 (77,916) 302,575
--------- --------- --------- ---------
DISTRIBUTIONS TO UNITHOLDERS FROM:
Net investment income (47,424) (45,727) (195,502) (206,927)
Net realized gains (81,231) (150,638) (24,774) (142,008)
Tax basis return of capital (2,712) 0 0 0
--------- --------- --------- ---------
Total distributions (131,367) (196,365) (220,276) (348,935)
--------- --------- --------- ---------
Decrease in net assets from
operations and distributions (163,213) (11,318) (298,192) (46,360)
Unit transactions:
Proceeds from sale of units 11,599 100,491 53,081 141,734
Value of distributions reinvested 121,318 181,742 213,085 339,329
Cost of units redeemed (57,085) (36,385) (399,635) (249,776)
--------- --------- --------- ---------
Net increase (decrease) from
unit transactions 75,832 245,848 (133,469) 231,287
--------- --------- --------- ---------
Total increase (decrease) in net assets (87,381) 234,530 (431,661) 184,927
NET ASSETS
Beginning of year 1,805,194 1,570,664 3,238,094 3,053,167
--------- --------- --------- ---------
End of year $1,717,813 $1,805,194 $2,806,433 $3,238,094
========= ========= ========= =========
Undistributed (overdistributed) net investment
income, end of year $40 $0 $(827) $0
CHANGES IN FUND UNITS
- ------------------------------------------------------------------------------------------------------
Units sold 323 2,591 5,027 12,048
Issued for distributions reinvested 3,609 4,903 19,518 28,393
Units redeemed (1,578) (923) (36,173) (20,360)
--------- --------- --------- ---------
Net increase (decrease) in Fund units 2,354 6,571 (11,628) 20,081
========= ========= ========= =========
<FN>
SEE NOTES TO FINANCIAL STATEMENTS
</TABLE>
<PAGE>
9
NOTES TO FINANCIAL STATEMENTS
December 31, 1994
1. ORGANIZATION OF THE FUNDS
The GE S&S Program Funds (the "Funds") are registered under the Investment
Company Act of 1940 (as amended) ("the 1940 Act") as diversified, open-end
management investment companies and are authorized to issue an unlimited
number of shares. The Funds are two of the investment options offered under
the GE Savings & Security Program ("Program"). The Program, through a trust,
owns 49% of the S&S Program Mutual Fund and 62% of the S&S Long Term Interest
Fund. The Funds operate as Employees' Securities Companies (as defined in the
1940 Act) and as such are exempt from certain provisions of the 1940 Act.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following summarizes the significant accounting policies of the Funds:
SECURITY VALUATION AND TRANSACTIONS
Securities for which exchange quotations are readily available are valued at
the last sale price, or if no sales occurred on that day, at the quoted bid
price. Certain fixed income securities are valued by a pricing service based
upon a computerized matrix system, which considers market transactions and
dealer supplied valuations.
Futures contracts are valued at the settlement price established each day by
the board of trade or exchange on which they are traded. Written options
traded on an exchange are valued using the last sale price or, in the absence
of a sale, the last offering price, and options traded over-the-counter are
valued using dealer-supplied valuations. Forward foreign currency contracts
are valued at the mean between the bid and offered forward rates as last
quoted by a recognized dealer.
Temporary investments maturing within 60 days are valued at amortized cost or
original cost plus accrued interest, each of which approximates fair value.
Portfolio positions which cannot be valued as set forth above are valued at
fair value under procedures approved by the Trustees.
Transactions are accounted for as of the trade date. Cost is determined and
gains and losses are based upon the first in first out method for both
financial statement and federal tax purposes.
To secure prices or yields deemed advantageous at a particular time, the Funds
may purchase or sell securities on a when-issued or forward commitment basis.
Payment and delivery may take place a month or more after the date of the
transaction. The price of the underlying securities and the date when the
securities will be delivered and paid for are fixed at the time the
transaction is negotiated. This may increase the risk if the other party
involved in the transaction fails to deliver and causes the Fund to
subsequently invest at less advantageous yields. The Funds may enter into such
purchases if they hold collateral (cash, U.S. Government securities or other
liquid, high grade debt obligations) with the Funds' custodian sufficient to
cover the purchase price, or if they enter into an offsetting contract for the
sale of securities of equal value.
FOREIGN CURRENCY
Accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities denominated in foreign currency
are translated to U.S. dollars at the mean between the bid and offered
quotations of currencies against U.S. dollars as last quoted by a recognized
dealer. Purchases and sales of investment securities and income and expenses
are translated to U.S. dollars at the mean between the bid and offered
quotations prevailing on the respective dates of such transactions.
<PAGE>
10
NOTES TO FINANCIAL STATEMENTS - (Continued)
During 1994, the Funds adopted Statement of Position (SOP) 93-4: "Foreign
Currency Accounting and Financial Statement Presentation for Investment
Companies." As permitted under the SOP, the Funds do not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Further, as permitted under the SOP, the reported net realized exchange gains
or losses from foreign currency transactions represent sales of foreign
currencies, currency gains or losses between the trade date and the settlement
dates on securities transactions, realized gains and losses on forward foreign
currency contracts, and the difference between the amounts of dividends,
interest, and foreign withholding taxes recorded on the Fund's books, and the
U.S. dollar equivalent of the amounts actually received or paid. Net
unrealized foreign exchange gains and losses arise from changes in the value
of assets and liabilities other than investments in securities at fiscal year
end, as a result of changes in the exchange rate.
INCOME TAXES
It is each Fund's policy to comply with all sections of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income and gains to its unitholders and therefore no provision for
federal income tax has been made. Each Fund is treated as a separate taxpayer
for federal income tax purposes.
As of December 31, 1994, the S&S Long Term Interest Fund had a capital loss
carryover of approximately $88,910,000 available to offset future realized
capital gains. The carryforward expires on December 31, 2002. To the extent
that the carryover losses are used to offset future capital gains, it is
probable that the gains so offset will not be distributed to shareholders.
Any net capital and currency losses incurred after October 31, within the S&S
Long Term Interest Fund's tax year, are deemed to arise on the first day of
the Fund's next tax year. The Fund incurred and elected to defer approximately
$33,282,000 of net capital and currency losses during the period in fiscal
1994.
INVESTMENT INCOME
Corporate actions (including cash dividends) are recorded net of
nonreclaimable tax withholdings on the ex-dividend date, except for certain
foreign securities for which corporate actions are recorded as soon as the
Funds are informed. Interest income is recorded on the accrual basis. All
discounts and premiums on taxable bonds are amortized to call or maturity
date, whichever is shorter.
EXPENSES
Expenses of the Funds which are directly identifiable to a specific Fund are
allocated to that Fund. Expenses which are not readily identifiable to a
specific Fund are allocated in such a manner as deemed equitable, taking into
consideration the nature and type of expense and the relative sizes of the
Funds. All expenses of the Funds are paid by the Investment Advisor and
reimbursed by the Funds.
DISTRIBUTIONS TO UNITHOLDERS
The S&S Long Term Interest Fund declares dividends daily (paid monthly)
equivalent to net investment income. The S&S Program Mutual Fund declares and
pays dividends of net investment income annually. Both Funds declare and pay
net realized capital gain distributions annually. These distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles.
<PAGE>
11
NOTES TO FINANCIAL STATEMENTS - (Continued)
FORWARD FOREIGN CURRENCY CONTRACTS
A forward foreign currency contract ("Forward") is an agreement between two
parties to buy and sell a currency at a set price on a future date. The market
value of the Forward fluctuates with changes in currency exchange rates. The
Forward is marked-to-market daily and the change in the market value is
recorded by the Fund as an unrealized gain or loss. When the Forward is
closed, the Fund records a realized gain or loss equal to the difference
between the value at the time it was opened and the value at the time it was
closed. The Fund could be exposed to risk if a counterparty is unable to meet
the terms of the contract or if the value of the currency changes unfavorably.
The Fund may enter into Forwards in connection with planned purchases and
sales of securities, to hedge specific receivables or payables against changes
in future exchange rates or to hedge the U.S. dollar value of portfolio
securities denominated in a foreign currency.
REPURCHASE AGREEMENTS
The Funds' custodian takes possession of the collateral pledged for
investments in repurchase agreements on behalf of the Funds. It is the policy
of the Funds to value the underlying collateral daily on a mark-to-market
basis to determine that the value, including accrued interest, is at least
equal to the repurchase price. In the event of default of the obligation to
repurchase, the Funds have the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation.
FUTURES AND OPTIONS
The Funds may invest in futures contracts and write options. These investments
involve, to varying degrees, elements of market risk and risks in excess of
the amount recognized in the Statement of Assets and Liabilities. The face or
contract amounts reflect the extent of the involvement the Funds have in the
particular classes of instruments. Risks may be caused by an imperfect
correlation between movements in the price of the instruments and the price of
the underlying securities and interest rates. Risks also may arise if there is
an illiquid secondary market for the instruments, or due to the inability of
counterparties to perform. The Funds will invest in these instruments to hedge
against the effects of changes in value of portfolio securities due to
anticipated changes in interest rates and/or market conditions, for duration
management, or when the transactions are economically appropriate to the
reduction of risk inherent in the management of the Fund involved.
Upon entering into a futures contract, the Fund is required to deposit either
cash or securities in an amount (initial margin) equal to a certain percentage
of the contract value. Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the
daily changes in the contract value and are recorded as unrealized gains and
losses. The Fund recognizes a realized gain or loss when the contract is
closed. The Fund will realize a gain or loss upon the expiration or closing of
the option transaction. When an option is exercised, the proceeds on sales for
a written call option, the purchase cost for a written put option, or the cost
of the security for a purchased put or call option is adjusted by the amount
of premium received or paid.
SECURITY LENDING
The Funds may loan securities to well known and recognized U.S. and foreign
brokers and banks and receive a lenders fee. These fees are included in
interest income. The loans of securities will be collateralized by cash,
letters of credit or U.S. Government Securities. The collateral will be
segregated and maintained at all times with the custodian and must be equal to
the current value of the securities loaned. In the event the counterparty
(borrower) does not meet its contracted obligation to return the securities,
the Fund may be exposed to the risk of loss of reacquiring the loaned
securities at prevailing market prices.
<PAGE>
12
NOTES TO FINANCIAL STATEMENTS - (Continued)
OTHER
There are certain additional risks involved when investing in foreign
securities that are not inherent in domestic securities. These risks may
involve foreign currency exchange rate fluctuations, adverse political and
economic developments and the imposition of unfavorable foreign governmental
laws and restrictions.
3. FEES AND COMPENSATION PAID TO AFFILIATES
ADVISORY AND ADMINISTRATION FEES
During 1994 the Funds incurred expenses for the cost of services directed by
General Electric Company's wholly owned subsidiary, General Electric
Investment Corporation ("GEIC"), as Investment Advisor and for services GEIC
rendered as unitholder servicing agent. These expenses are included as
administrative expenses and unitholder servicing agent fees in the Statement
of Operations. The Trustees received no compensation as Trustees for the S&S
Funds.
BROKERAGE COMMISSIONS
Brokerage commissions received by affiliates of the Funds' investment advisor,
from portfolio transactions conducted with the Funds during the year ended
December 31, 1994, amounted to $43,970.
4. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
(Dollars in Thousands)
Aggregate gross unrealized appreciation/(depreciation) of investments for each
Fund at December 31, 1994, were as follows:
<TABLE>
<CAPTION>
Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation
Appreciation Depreciation (Depreciation)
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
S&S Program Mutual Fund $185,035 $65,558 $119,477
S&S Long Term Interest Fund 10,213 106,261 (96,048)
</TABLE>
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at December 31, 1994.
5. Options
(Dollars in Thousands)
During the year ended December 31, 1994 the following option contracts were
written for the S&S Long Term Interest Fund:
<TABLE>
<CAPTION>
Number
of Contracts Premium
- -----------------------------------------------------------------------------
<S> <C> <C>
Balance as of December 31, 1993 0 $ 0
Written 11,742 468
Closed and Expired (11,357) (336)
Exercised (385) (132)
--------- ---------
Balance as of December 31, 1994 0 $ 0
========= =========
<PAGE>
13
NOTES TO FINANCIAL STATEMENTS - (Continued)
6. Investment Transactions
(Dollars in Thousands)
The cost of purchases and the proceeds from sales of investments, other than
U.S. Government obligations, short-term securities and options, for the year
ended December 31, 1994 were:
Purchases Sales
- ----------------------------------------------------------------------------
S&S Program Mutual Fund $568,429 $558,705
S&S Long Term Interest Fund 1,047,715 956,417
The cost of purchases and the proceeds from sales of long-term U.S. Government
obligations for the year ended December 31, 1994 were:
Purchases Sales
- ----------------------------------------------------------------------------
S&S Program Mutual Fund $1,055 $2,188
S&S Long Term Interest Fund 5,200,932 5,413,078
7. Security Lending
At December 31, 1994, the S&S Long Term Interest Fund loaned securities having
a value, including accrued interest, of approximately $469,878,565 and
received $487,320,458 in cash and letters of credit as collateral for the
loans. Cash collateral received is invested in high grade liquid debt
obligations and temporary investments at December 31, 1994.
<PAGE>
14
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands)
S&S PROGRAM MUTUAL FUND
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Number
of Shares Value
- ------------------------------------------------------------------------
COMMON STOCK-91.7%
- ------------------------------------------------------------------------
<S> <C> <C>
AEROSPACE-3.5%
BE Aerospace Inc. 150,118 $1,107 (a)
Boeing Co. 135,794 6,348
General Motors Corp. (Class H) 50,417 1,758
Lockheed Corp. 114,769 8,335
Martin Marietta Corp. 87,610 3,888
Martin Marietta Matls Inc. 81,064 1,439
McDonnell Douglas Corp. 62,204 8,833
Raytheon Co. 161,625 10,324
Rockwell International Corp. 80,601 2,881
TRW Inc. 46,257 3,053
United Technologies Corp. 203,809 12,815
60,781
AUTOMOTIVE-2.0%
Chrysler Corp. 192,744 9,444
Ford Motor Co. 250,588 7,017
General Motors Corp. 281,948 11,912
Goodyear Tire & Rubber Co. 176,972 5,951
34,324
BANKS & FINANCIAL SERVICES-8.7%
American Express Co. 248,815 7,340
Banc One Corp. 189,239 4,802
Bank of New York Inc. 59,574 1,728
BankAmerica Corp. 104,157 4,114
Bankatlantic Bancorp Inc. 59,408 921
Banque National Paris 21,399 984
Barnett Banks Inc. 35,921 1,378
BayBanks Inc. 28,036 1,479
Beneficial Corp. 349,529 13,632
Block H & R Inc. 12,265 455
Boatmen's Bancshares Inc. 159,450 4,325
Chemical Banking Corp. 136,348 4,892
Citicorp 221,007 9,144
Countrywide Credit Industries 164,705 2,141
Crestar Financial Corp. 46,913 1,765
Cullen Frost Bankers Inc. 10,182 314
Dean Witter Discover & Co. 157,699 5,342
Edwards A G Inc. 70,088 1,262
Equitable Cos. Inc. (Series B) 93,825 1,701
Federal National Mortgage Assoc. 298,911 21,783
First Bank Systems Inc. 26,284 874
First Fidelity Bancorp 29,792 1,337
First Interstate Bancorp 50,815 3,436
Itel Corp. 64,481 2,233 (a)
Mellon Bank Corp. 53,164 1,628
Merrill Lynch & Co. Inc. 52,566 1,879
MGIC Investment Corp. 71,840 2,380
Morgan (J.P.) & Co. Inc. 115,646 6,476
Nationsbank Corp. 97,019 4,378
Rollins Inc. 31,539 721
Salomon Inc. 8,761 329
Signet Banking Corp. 103,381 2,959
Standard Federal Bank Troy, MI 77,098 1,841
State Street Boston Corp. 84,104 2,408
T. Rowe Price & Associates 38,548 1,156
Transamerica Corp. 160,662 7,993
Travelers Inc. 461,264 14,991
Wells Fargo & Co. 18,574 2,693
149,214
BROADCASTING, ENTERTAINMENT & MEDIA-3.7%
Capital Cities/ABC Inc. 47,315 4,034
Carnival Corp. 17,521 372
CBS Inc. 28,033 1,552
Comcast Corp. (Class A) 358,192 5,619
Disney (Walt) Co. 47,309 2,182
Donnelley (R.R.) & Sons Co. 134,043 3,954
Dun & Bradstreet Corp. 113,894 6,264
Gannett Inc. 172,418 9,181
Interpublic Group Cos. Inc. 79,377 2,550
King World Productions Inc. 49,654 1,713 (a)
Multimedia Inc. New 28,035 799 (a)
News Corp. Ltd. ADR 19 0 (a)
Reuters Holdings PLC ADR (Class B) 127,561 5,597
<FN>
See Notes to Schedule of Investments and Financial Statements.
</TABLE>
<PAGE>
15
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands)
S&S PROGRAM MUTUAL FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Number
of Shares Value
- ------------------------------------------------------------------------
<S> <C> <C>
Rio Hotel & Casino Inc. 131,355 $ 1,593 (a)
Tele-Communications Inc. (Class A) 248,919 5,414 (a)
Television Broadcast Ltd. 216,000 863
Time Warner Inc. 265,804 9,337
Viacom Inc. (Class A) 4,503 188 (a)
Viacom Inc. (Class B) 34,124 1,386 (a)
Viacom Inc. (Common Rights) 56,295 63 (a)
62,661
BUILDING MATERIALS & CONSTRUCTION-0.2%
Schuler Homes Inc. 22,472 320 (a)
Sherwin Williams Co. 29,786 987
Stanley Works 69,366 2,480
3,787
CHEMICAL-3.3%
Air Products & Chemicals Inc. 178,565 7,968
Cabot Corp. 84,442 2,396
Du Pont de Nemours (E.I.) 287,364 16,164
Eastman Chemical Co. WI 66,584 3,362
Ferro Corp. 24,874 594
FMC Corp. 14,020 810 (a)
Hercules Inc. 28,148 3,248
Hoechst Ag 4,319 939 (a)
IMC Global Inc. 41,177 1,781 (a)
Imperial Chemical Inds PLC ADR 19,275 896
Lubrizol Corp. 118,273 4,007
Minerals Technologies Inc. 70,368 2,058
Monsanto Co. 40,412 2,849
Morton International Inc. 167,335 4,769
Unifi Inc. 85,912 2,191
Witco Corp. 127,912 3,150
57,182
CONSUMER RELATED-10.9%
American Brands Inc. 43,806 1,643
American Stores Co. 238,302 6,404
Anheuser Busch Cos. Inc. 111,818 5,689
Black & Decker Corp. 39,297 933
Campbell Soup Co. 37,672 1,662
Coca Cola Co. 50,813 2,617
Colgate Palmolive Co. 201,164 12,749
Collins & Aikman Corp. 204,059 1,735 (a)
Conagra Inc. 52,566 1,643
CPC International Inc. 98,123 5,225
Dole Food Inc. 113,663 2,614
Duracell International Inc. 10,513 456
Eastman Kodak Co. 364,614 17,410
General Mills Inc. 87,609 4,994
Harman International Industries Inc. 84,442 3,124
Host Marriott Corp. 53,442 514 (a)
Kellogg Co. 25,407 1,477
Marriot International Inc. 66,584 1,873
McDonalds Corp. 413,054 12,082
MHS Hldgs Corp. 173 0 (a)
Nestle SA (Regd.) 7,594 7,234
Nike Inc. 15,770 1,177
Nine West Group Inc. 86,704 2,460 (a)
Penney J C Inc. 87,610 3,910
Pepsico Inc. 694,112 25,162
Philip Morris Cos. Inc. 385,722 22,179
Procter & Gamble Co. 280,891 17,415
Promus Cos Inc. 52,444 1,626 (a)
Ralston Purina Co. 17,523 782
Rubbermaid Inc. 8,762 252
Sara Lee Corp. 70,089 1,770
Scholastic Corp. 12,264 625 (a)
Singer Co. N V 52,566 1,570
Stanhome Inc. 104,027 3,290
Sunbeam Oster Inc. 73,801 1,900
Timken Co. 36,796 1,297
Tommy Hilfiger Corp. 19,625 886 (a)
UST Inc. 28,036 778
Wal Mart Stores Inc. 217,272 4,617
Whirlpool Corp. 59,573 3,023
186,797
DIVERSIFIED MANUFACTURING-5.5%
Alco Standard Corp. 42,221 2,649
Allied Signal Inc. 502,056 17,070
Canadian Pacific Ltd. 392,538 5,888
Dover Corp. 102,505 5,292
<FN>
See Notes to Schedule of Investments and Financial Statements.
</TABLE>
<PAGE>
16
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands)
S&S PROGRAM MUTUAL FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Number
of Shares Value
- ------------------------------------------------------------------------
<S> <C> <C>
Grupo Carso SA de C V ADR 105,132 $ 1,498(a,b)
Hanson PLC ADR 272,470 4,905
ITT Corp. 106,021 9,396
Litton Industries Inc. 22,779 843 (a)
Loews Corp. 132,735 11,531
Minnesota Mining &
Manufacturing 274,918 14,674
Teleflex Inc. 28,036 995
Tenneco Inc. 133,728 5,684
Textron Inc. 170,132 8,570
Trinova Corp. 43,806 1,287
Tyco Interest Ltd. 57,732 2,742
Welbilt Corp. 65,192 2,176 (a)
95,200
DRUGS, HEALTH CARE & COSMETICS-9.0%
Abbott Laboratories 493,643 16,105
Allergan Inc. 104,803 2,961
American Home Products Corp. 125,695 7,887
American Medical Response 26,281 759 (a)
Arbor Drugs Inc. 36,796 764
Avon Products Inc. 98,124 5,863
Baxter International Inc. 144,593 4,085
Bergen Brunswig Corp. 21,054 440
Bristol-Myers Squibb Co. 220,812 12,780
Coastal Healthcare Group Inc. 12,268 336 (a)
Columbia HCA Healthcare Corp. 11,808 431
Dentsply International Inc. 29,786 938
Eli Lilly & Co. 220,786 14,489
FHP International Corp. 50,815 1,309 (a)
Fisher Scientific International Inc. 59,978 1,484
Gillette Co. 12,899 964
Health Care & Retirement Corp. 28,037 845 (a)
Healthtrust Inc. 86,125 2,734 (a)
International Flavours 8,763 405
Ivax Corp. 59,576 1,132
Johnson & Johnson 329,081 18,017
Merck & Co. Inc. 453,389 17,285
Novacare Inc. 45,032 326 (a)
Pfizer Inc. 122,654 9,475
Schering Plough Corp. 87,611 6,483
Smithkline Beecham PLC ADR 322,549 11,047
Teva Pharmaceutical Inds Ltd. ADR 75,059 1,816
United Healthcare Corp. 45,782 2,066
Upjohn Co. 218,678 6,724
Warner Lambert Co. 49,062 3,778
153,728
ELECTRICAL & ELECTRONICS-6.2%
ADT Ltd. 265,331 2,852 (a)
Airtouch Communications 201,504 5,869 (a)
AMP Inc. 111,942 8,144
Amphenol Corp. (Class A) 105,132 2,523 (a)
Applied Materials Inc. 139,299 5,885 (a)
Arrow Electronics Inc. 70,368 2,525 (a)
BBC Brown Boveri 7,709 6,637
E Systems Inc. 54,319 2,261
Emerson Electric Co. 288,517 18,032
General Signal Corp. 19,274 614
Hewlett Packard Co. 127,131 12,697
Hubbell Inc. (Class B) 131,538 7,005
Intel Corp. 89,363 5,708
Loral Corp. 60,985 2,310
Micron Technology Inc. 43,518 1,920
Molex Inc. (Class A) 99,642 3,089
Motorola Inc. 81,957 4,743
Northern Telecom Ltd. 57,824 1,930
Perkin Elmer Corp. 100,765 2,582
Philips Electronics N V 45,555 1,338
Texas Instruments Inc. 24,530 1,837
Thermo Electron Corp. 49,258 2,211 (a)
Varian Associates Inc. 85,859 3,005
105,717
ELECTRIC UTILITIES-2.3%
Central & South West Corp. 141,929 3,211
CMS Energy Corp. 154,701 3,539
Dominion Resources Inc. 73,592 2,631
<FN>
See Notes to Schedule of Investments and Financial Statements.
</TABLE>
<PAGE>
17
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands)
S&S PROGRAM MUTUAL FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Number
of Shares Value
- ------------------------------------------------------------------------
<S> <C> <C>
Houston Industries Inc. 63,082 $2,247
Illinova Corp. 61,327 1,334
NIPSCO Industries Inc. 158,328 4,710
Pinnacle West Capital Corp. 227,656 4,496
Public Service Co. Colorado 35,044 1,030
Public Service Co. New Mexico 175,221 2,278 (a)
Southern Co. 456,451 9,129
Unicom Corp. 231,292 5,551
40,156
ENERGY & ENERGY RELATED-10.2%
Amoco Corp. 219,026 12,950
Anadarko Petroleum Co. 168,945 6,504
Apache Corp. 73,048 1,826
Ashland Oil Co. 51,603 1,780
Atlantic Richfield Co. 62,380 6,347
Baker Hughes Inc. 99,497 1,816
Burlington Resources Inc. 270,901 9,481
Chevron Corp. 175,223 7,819
Dresser Industries Inc. 210,401 3,971
Eastern Enterprises 73,593 1,932
Elf Aquitaine ADR 79,633 2,807
Exxon Corp. 395,999 24,057
McDermott International Inc. 167,075 4,135
Mobil Corp. 150,690 12,696
Occidental Petroleum Corp. 173,382 3,338
Phillips Petroleum Co. 176,122 5,768
Royal Dutch Petroleum Co. 260,571 28,011
Santa Fe Energy Resources Inc. 175,220 1,402 (a)
Schlumberger Ltd. 265,271 13,363
Sun Co. Inc. 48,862 1,405
Texaco Inc. 202,736 12,139
Unocal Corp. 191,445 5,217
USX Marathon Group 345,381 5,656
174,420
FOREST PRODUCTS, PAPER & PACKAGING-2.2%
Champion International Corp. 82,378 3,007
Georgia Pacific Corp. 52,567 3,759
International Paper Co. 24,532 1,849
Kimberly Clark Corp. 45,556 2,301
Mead Corp. 184,857 8,989
Owens Illinois Inc. 227,789 2,506 (a)
Rayonier Inc. 61,326 1,870
Scott Paper Co. 33,309 2,302
Temple Inland Inc. 74,470 3,360
Weyerhaeuser Co. 204,482 7,668
37,611
INDUSTRIAL PRODUCTS & SERVICES-1.0%
Browning-Ferris Industries Inc. 78,849 2,237
Corning Inc. 59,840 1,788
Flightsafety International Inc. 13,317 541
Waste Management International
PLC ADR 52,585 598 (a)
Wheelabrator Technologies Inc. 70,090 1,034
WMX Technologies Inc. 428,392 11,245
17,443
INSURANCE-4.1%
American International Group Inc. 150,391 14,738
Chubb Corp. 27,638 2,138
CMAC Investment Corp. 59,576 1,720
General Reinsurance Corp. 75,044 9,287
Life Partners Group Inc. 45,557 997
Life USA Holdings Inc. 36,851 267 (a)
Lincoln National Corp. 159,451 5,581
Marsh & McLennan Cos. 72,716 5,763
Navigators Group Inc. 12,471 181
NWNL Cos. Inc. 105,697 3,065
Providian Corp. 230,052 7,103
St. Paul Cos. Inc. 239,178 10,703
TIG Holdings Inc. 327,663 6,144
UNUM Corp. 48,009 1,812
69,499
MACHINERY & MACHINE TOOLS-1.2%
Caterpillar Inc. 104,574 5,764
Cooper Industries Inc. 87,611 2,990
Deere & Co. 89,362 5,920
Ingersoll Rand Co. 113,894 3,588
Kennametal Inc. 93,212 2,284
Navistar International Corp. Inc. 52,567 795 (a)
21,341
<FN>
See Notes to Schedule of Investments and Financial Statements.
</TABLE>
<PAGE>
18
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands)
S&S PROGRAM MUTUAL FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Number
of Shares Value
- ------------------------------------------------------------------------
<S> <C> <C>
MERCHANDISING-3.3%
American Greetings Corp. (Class A) 163,236 $4,407
Baker J. Inc. 109,595 1,644
Barnes & Noble Inc. 65,955 2,061 (a)
Charming Shoppes Inc. 309,177 2,048
Circuit City Stores Inc. 178,961 3,982
CUC International Inc. 79,551 2,665 (a)
Dayton Hudson Corp. 45,557 3,223
Federated Department Stores Inc. 307,594 5,921 (a)
Harcourt General Inc. 49,477 1,744
Hasbro Inc. 120,378 3,521
Home Depot Inc. 25,796 1,187
Limited Inc. 24,529 445
May Department Stores Co. 47,309 1,597
Reebok International Ltd. 70,088 2,768
Sears Roebuck & Co. 283,375 13,035
TJX Cos. Inc. 173,472 2,711
Toys 'R Us 142,718 4,353 (a)
57,312
METALS-1.1%
American Barrick Res. Corp. 129,664 2,885
Birmingham Steel Corp. 241,807 4,836
Freeport McMoran Copper
& Gold 43,806 931
Inco Ltd. 78,850 2,257
Nucor Corp. 24,530 1,361
Placer Dome Inc. 113,893 2,477
Pohang Iron & Steel 26,285 769
Reynolds Metals Co. 51,690 2,533
WHX Corp. 117,922 1,563 (a)
19,612
NATURAL GAS-0.5%
Consolidated Natural Gas Co. 77,097 2,737
Enserch Corp. 262,704 3,448
Nabors Industries Inc. 178,725 1,162 (a)
Panhandle Eastern Corp. 1 0
Petroleum Geo Services ADR 35,044 653 (a)
Sonat Inc. 36,797 1,030
9,030
OFFICE EQUIPMENT & SUPPLIES-4.7%
Apple Computer 37,849 1,476
Autodesk Inc. 30,882 1,224
Automatic Data Processing Inc. 167,064 9,773
Cisco Systems Inc. 35,044 1,231 (a)
Compaq Computer Corp. 135,446 5,350 (a)
Compuware Corp. 45,852 1,651 (a)
Equifax Inc. 162,956 4,298
First Financial Management Corp. 162,957 10,042
General Motors Corp. (Class E) 45,557 1,754
Informix Corp. 100,833 3,239 (a)
International Business Machines 294,505 21,646
Microsoft Corp. 41,352 2,528 (a)
Novell Inc. 70,087 1,200 (a)
Pitney Bowes Inc. 211,839 6,726
Silicon Graphics Inc. 59,574 1,839 (a)
Sun Microsystems Inc. 24,531 871 (a)
Tech Data Corp. 159,450 2,711 (a)
Teradyne Inc. 89,133 3,019 (a)
80,578
TELEPHONE & UTILITIES-5.9%
Alltel Corp. 63,080 1,900
American Telephone & Telegraph 749,304 37,652
Cincinnati Bell Inc. 63,077 1,057
GTE Corp. 509,758 15,484
International Cabletel Inc. 43,807 1,216 (a)
MCI Communications Corp. 628,838 11,555
NYNEX Corp. 205,008 7,534
Pacific Telesis Group 185,734 5,293
Southwestern Bell Corp. 156,141 6,304
Sprint Corp. 137,945 3,811
Tele Danmark As (Series B) 25,336 1,287 (a)
Telefonos De Mexico SA ADR 47,309 1,940
U.S. West Inc. 178,725 6,367
101,400
<FN>
See Notes to Schedule of Investments and Financial Statements.
</TABLE>
<PAGE>
19
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands)
S&S PROGRAM MUTUAL FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Number
of Shares Value
- ------------------------------------------------------------------------
<S> <C> <C>
TRANSPORTATION-2.2%
Burlington Northern Inc. 122,654 $5,903
CSX Corp. 59,048 4,111
Interpool Inc. 86,237 1,283 (a)
Kansas City Southern Industries 126,161 3,895
Kirby Corp. 98,517 1,945 (a)
Ryder Systems Inc. 59,581 1,311
Santa Fe Pacific Corp. 56,070 981
Santa Fe Pacific Gold Corp. 67,554 870 (a)
Southern Pacific Rail Corp. 36,796 667 (a)
TNT Freightways Corp. 80,877 2,072
Union Pacific Corp. 256,873 11,720
Xtra Corp. 50,197 2,259
37,017
TOTAL COMMON STOCK (COST $1,455,785) 1,574,810
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------
BONDS AND NOTES-1.9%
- ------------------------------------------------------------------------
<S> <C> <C>
Ames Department Stores Inc. 7.375%, 01/01/97 $79 0 (a)
Banco Nacional de Mexico SA 7.00%, 12/15/99 3,646 2,898 (b)
Cemex 4.25%, 11/01/97 1,325 1,073 (b)
Thermo Electron Corp. 5.00%, 04/15/01 3,434 3,691
U.S. Treasury Notes 8.50%, 08/15/95 25,000 25,227
TOTAL BONDS AND NOTES (COST $34,539) 32,889
<CAPTION>
CONVERTIBLE BONDS-0.6%
- ------------------------------------------------------------------------
<S> <C> <C>
Amr Corporation Delaware 6.125%, 11/01/24 2,979 2,383
Careline Inc. 8.00%, 05/01/01 1,758 1,354 (b)
Delta Air Lines Inc. 3.23%, 06/15/03 $5,176 3,636
Home Depot Inc. 4.50%, 02/15/97 737 881
Renong Berhad 2.50%, 01/15/05 1,770 1,615 (b)
Shangri La Asia 2.875%, 12/16/00 1,569 1,220 (b)
TOTAL CONVERTIBLE BONDS (COST $12,356) 11,089
<CAPTION>
Number
of Shares Value
- ------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK-3.3%
- ------------------------------------------------------------------------
<S> <C> <C>
Bowater Inc., 7.00% 97,773 2,408
Burlington Northern Inc. (Series A), 6.25% 25,063 1,335
Citicorp, 5.375% 7,761 887
Conagra Inc. (Series E), 1.687% 65,230 2,136
Ford Motor Co. (Series A), 4.20% 86,754 7,981
Kaufman & Broad Home Corp. (Series B), 1.52% 56,778 759
Magma Copper Co. (Series D), 5.625% 21,209 1,310
Magma Copper Co. (Series E), 6.00% 37,848 2,422
McDermott International Inc., 2.875% 28,280 1,174 (b)
National City Corp., 8.00% 21,026 1,314
Newmont Mining, 2.75% 64,832 3,387 (b)
Occidental Petroleum Corp., 3.875% 109,055 5,262 (b)
Reynolds Metals Co., 7.00% 75,538 3,654
Santa Fe Energy Resources Inc. (Series A), 8.25% 192,470 1,540
Sears Roebuck & Co. (Series A), 3.75% 280,353 15,595
Unocal Corp., 7.00% 45,567 2,233 (b)
<FN>
See Notes to Schedule of Investments and Financial Statements.
</TABLE>
<PAGE>
20
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands)
S&S PROGRAM MUTUAL FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Number
of Shares Value
- ------------------------------------------------------------------------
<S> <C> <C>
Westinghouse Electric Corp. (Series C), 9.00% 278,499 $3,690 (b)
TOTAL CONVERTIBLE PREFERRED STOCK (COST $53,718) 57,087
TOTAL INVESTMENTS IN SECURITIES (COST $1,556,398) 1,675,875
<CAPTION>
Principal
Amount Value
- ------------------------------------------------------------------------
TEMPORARY INVESTMENTS-2.0%
- ------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES-1.8%
Federal Home Loan Bank 5.75%, 01/03/95 $20,160 20,153
Federal National Mortgage Assoc. 5.82%, 01/06/95 10,000 9,992
30,145
REPURCHASE AGREEMENTS-0.2%
State Street Bank and Trust Co. 5.25%, 01/03/95 3,679 3,679
(dated 12/30/94, proceeds $3,681,
collateralized by $3,815 United States
Treasury Note, 5.125%, 3/31/96)
TOTAL TEMPORARY INVESTMENTS (COST $33,824) 33,824
OTHER ASSETS AND LIABILITIES, NET 0.5% 8,114
----------
NET ASSETS - 100% $1,717,813
==========
<CAPTION>
S&S LONG TERM INTEREST FUND
- ------------------------------------------------------------------------
Principal
Amount Value
- ------------------------------------------------------------------------
BONDS AND NOTES-105.0%
- ------------------------------------------------------------------------
<S> <C> <C>
U.S. TREASURIES-35.3%
U.S. Treasury Bonds
7.50%, 11/15/16 - 11/15/24 $86,040 $81,912
7.625%, 11/15/22 23,300 22,488
8.125%, 08/15/19 20,795 21,071
9.00%, 11/15/18 19,800 21,876
9.25%, 02/15/16 39,900 44,894
9.875%, 11/15/15 27,550 32,720
11.625%, 11/15/04 28,200 35,320
12.00%, 08/15/13 29,460 39,173
12.50%, 08/15/14 13,200 18,288
317,742
U.S. Treasury Notes
6.25%, 02/15/03 33,250 30,070
6.50%, 04/30/99 45,900 43,619
6.75%, 06/30/99 72,000 69,041
7.125%, 09/30/99 26,400 25,641
7.25%, 11/30/96 - 05/15/04 193,800 189,782
7.375%, 11/15/97 8,500 8,410
7.50%, 02/29/96 40,900 40,945
7.875% 04/15/98 - 11/15/04 64,380 64,555
8.25%, 07/15/98 97,100 98,298
8.75%, 10/15/97 100,000 102,250
672,611
TOTAL U.S. TREASURIES (COST $1,023,478) 990,353
MORTGAGE-BACKED-26.7%
Federal Home Loan Mortgage Corp.
6.25%, 11/01/12 504 473
6.50%, 12/01/09 14,069 12,957
6.75%, 10/01/03 - 03/01/06 808 765
7.00%, 02/01/09 1,089 1,033
7.50%, 12/01/05 - 05/01/24 9,392 8,816
7.50%, TBA 62,025 60,804 (c)
7.75%, 05/01/08 1,155 1,115
8.00%, 12/01/00 - 03/01/23 31,218 30,392 (i)
8.25%, 05/01/12 894 866
8.50%, 12/01/99 - 11/01/10 24,379 24,286 (i)
<FN>
See Notes to Schedule of Investments and Financial Statements.
</TABLE>
<PAGE>
21
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands)
<TABLE>
<CAPTION>
S&S LONG TERM INTEREST FUND
- ------------------------------------------------------------------------
Principal
Amount Value
- ------------------------------------------------------------------------
<S> <C> <C>
8.75%, 08/01/05 - 12/01/07 $ 2,771 $2,736
9.00%, 10/01/09 1,076 1,085
145,328
Federal National Mortgage Assoc.
5.50%, 10/01/08 - 05/01/09 36,907 32,144
6.50%, 05/01/23 - 05/01/24 48,566 42,724
7.00%, 07/01/23 546 496
7.125%, 11/01/03 4,360 4,033
7.25%, 11/01/03 2,929 2,730
7.375%, 12/01/03 5,651 5,310
7.50%, 01/01/07 - 10/25/23 18,669 17,608
8.00%, 07/01/17 - 08/01/24 38,905 37,497
8.20%, 12/23/96 10,000 10,053
8.50%, 03/01/09 - 12/01/24 56,993 56,013
208,608
Government National Mortgage Assoc.
6.50%, 06/15/08 - 07/15/08 19,896 18,180
6.50%, TBA 8,020 7,729 (c)
7.00%, TBA 51,897 50,792 (c)
7.50%, 02/15/22 - 04/15/24 33,922 31,474
7.50%, TBA 9,500 9,456 (c)
8.00%, 04/15/17 - 09/15/23 43,434 41,759
8.25%, 05/15/08 576 571
8.50%, 02/15/17 - 10/15/23 46,536 45,765
205,726
Collateralized Mortgage Obligations
American Housing Trust VIII-M
9.00%, 01/25/21 6 2,846 (e)
Citicorp Mortgage Securities Inc.
5.75%, 12/01/08 11,500 10,117
CMC Securities Corp. REMIC
6.316%, 09/25/23 3,841 3,789 (f)
DLJ Mortgage Acceptance Corp.
6.50%, 04/25/11 18,988 15,750
Federal Home Loan Mortgage Corp.
6.50%, 12/15/08 - 08/15/22 34,500 30,032
7.00%, 05/15/99 - 03/25/24 54,632 47,833 (i)
7.25%, 04/01/04 2,155 2,065
7.95%, 01/15/20 9,205 8,932
8.00%, 07/15/20 7,450 7,234
8.00%, 07/01/24 9,255 5,177 (d)
Federal National Mortgage Assoc. REMIC
6.25%, 07/25/07 - 04/17/10 $17,683 $ 14,816
6.50%, 01/25/08 - 10/25/24 23,259 18,702
7.25%, 01/25/19 4,800 4,623
Prudential Home Mortgage Securities Co.
10.50%, 02/25/24 126,291 1,136 (e)
11.00%, 01/25/24 - 04/25/24 475,013 6,400 (e)
Residential Resources Inc. Series 8C
8.00%, 10/01/18 4,710 4,520
Salomon Brothers Mortgage Securities Inc.
8.125%, 11/01/12 6,969 6,716
190,688
TOTAL MORTGAGE-BACKED (COST $775,420) 750,350
ASSET BACKED-11.8%
Advanta Credit Card Master Trust Corp.
6.285%, 09/01/00 25,681 25,657
Advanta Mortgage Loan Trust Corp.
6.30%, 07/25/25 7,402 6,874
American Express Master Trust
7.15%, 09/15/99 15,000 14,465
7.60%, 09/17/01 15,400 14,770
Banc One Credit Card Master Trust
7.15%, 12/15/98 13,000 12,821
Capital Auto Receivable
4.90%, 02/15/98 16,500 16,232
Carco Auto Loan Master Trust
5.655%, 02/15/98 5,000 5,014
Charming Shoppes Master Trust
7.00%, 04/15/03 8,502 8,111
Discover Card Master Trust
6.457%, 10/15/01 5,000 4,991
First Chicago
6.295%, 01/15/99 11,280 11,245
First Deposit Master Trust
6.90%, 08/15/01 4,395 4,285
First USA Credit Card Master Trust
6.305%, 12/15/03 13,200 13,188
Ford Credit Grantor Trust
7.30%, 10/15/99 13,809 13,667
General Motors Acceptance Corp.
5.55%, 05/15/97 3,668 3,644
<FN>
See Notes to Schedule of Investments and Financial Statements.
</TABLE>
<PAGE>
22
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands)
S&S LONG TERM INTEREST FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Principal
Amount Value
- ------------------------------------------------------------------------
<S> <C> <C>
Household Finance Corp.
8.15%, 03/19/96 $12,045 $ 12,068
ITT Floorplan Receivables
6.387%, 02/15/01 44,305 44,305
MBNA Master Credit Card Trust
5.82%, 03/15/00 35,000 35,250
6.275%, 07/15/98 12,000 11,989 (f)
6.295%, 01/16/02 21,900 21,879
Peoples Bank Credit Card Master Trust
6.337%, 01/03/15 20,000 19,975
Premier Auto Trust
6.20%, 10/02/97 15,000 14,686
Prudential Bank & Trust Master Trust
6.405%, 08/15/00 10,000 9,981
Standard Credit Card Master Trust I
7.25%, 04/07/08 5,000 4,556
TOTAL ASSET BACKED (COST $333,329) 329,653
CORPORATE NOTES-25.7%
Abbey National First Corp.
8.20%, 10/15/04 4,250 4,149
Advanta Corp. Medium Term Notes
5.97%, 11/29/96 21,000 20,974
Advanta Corp.
5.125%, 11/15/96 7,150 6,776
Aetna Life Assurance
12.28%, 09/15/96
(Cost $6,769 - 12/31/85) 11,584 10,094(g,h)
Arkla Inc.
8.00%, 01/15/97 5,209 5,105
9.875%, 04/15/97 4,770 4,817
Associates Corp. North America
7.50%, 10/15/96 5,000 4,939
Banco Nacional De Comercio Corp.
7.25%, 02/02/04 5,100 3,621
Bank of Scotland
8.80%, 01/27/04 4,250 4,283 (b)
BCH Cayman Islands
8.25%, 06/15/04 6,125 5,827
Bell Telephone Co. Pennsylvania
8.35%, 12/15/30 15,125 15,841
Bergen Brunswig Corp.
5.625%, 01/15/96 4,500 4,395
Boeing Co.
7.95%, 08/15/24 13,100 12,598
Boise Cascade Corp.
7.375%, 08/01/97 7,100 6,871
Carter Holt Harvey Ltd.
8.875%, 12/01/04 5,800 5,856
Centel Capital Corp.
9.00%, 10/15/19 11,540 12,357
Chase Manhattan Corp.
7.58%, 07/23/99 7,275 7,032
7.59%, 01/30/96 19,400 19,351
Chesapeake & Potomac Telephone Co.
8.375%, 10/01/29 6,000 6,248
Chrysler Corp.
13.00%, 03/01/97 8,900 8,984
Chrysler Financial Corp.
6.50%, 06/15/98 20,000 18,762
Citicorp
8.55%, 03/17/97 13,000 13,093
9.75%, 08/01/99 5,000 5,233
Cleveland Electric Illuminating Co.
7.42%, 08/01/01 10,000 8,765
Coastal Corp.
10.375%, 10/01/00 5,000 5,316
Dayton Hudson Corp.
10.00%, 06/01/10 4,300 4,777
Dean Witter Discover & Co.
5.89%, 09/29/97 12,000 11,970
Delta Air Lines Inc.
7.79%, 12/01/98 14,625 13,578
Ferrovie Dello Stato
9.125%, 07/06/09 15,000 15,647
First USA Bank Wilmington Delaware
6.04%, 11/30/95 19,000 18,981
Ford Motor Credit Co.
7.25%, 05/15/99 8,625 8,233
8.25%, 05/15/96 12,505 12,538
<FN>
See Notes to Schedule of Investments and Financial Statements.
</TABLE>
<PAGE>
23
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands)
S&S LONG TERM INTEREST FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Principal
Amount Value
- ------------------------------------------------------------------------
<S> <C> <C>
General Motors Acceptance Corp.
5.65%, 06/18/96 $15,000 $14,508
5.89%, 11/15/96 37,800 37,743
7.50%, 01/29/98 13,000 12,620
7.65%, 02/03/97 14,000 13,788
7.85%, 11/17/97 15,900 15,610
8.875%, 06/01/10 4,165 4,324
Goldman Sachs Group L P
6.875%, 09/15/99 5,000 4,604 (b)
Grand Metropolitan
7.00%, 06/15/99 7,775 7,357
Great Lakes Power Inc.
8.90%, 12/01/99 5,000 4,974
Hydro Quebec
8.05%, 07/07/24 5,875 5,648
8.25%, 04/15/26 4,000 3,684
Iberdrola International B V
7.125%, 06/01/03 5,000 4,564 (b)
ITT Financial Corp.
8.35%, 11/01/04 5,300 5,298
Joy Technologies Inc.
10.25%, 09/01/03 6,000 6,270
K Mart Funding Corp.
9.44%, 07/01/18 4,000 4,124
Korea Electric Power Corp.
6.375%, 12/02/03 7,100 6,027
Lehman Brothers
8.05%, 01/15/19 14,600 13,906
Lockheed Corp.
5.65%, 04/01/97 9,000 8,536
Long Island Lighting Co.
7.30%, 07/15/99 4,900 4,445
9.625%, 07/01/24 5,000 4,520
9.75%, 05/01/21 10,000 9,165
Massachusetts Mutual Life Insurance
9.65%, 12/16/96
(Cost $8,548 - 12/31/85) 14,407 12,275(g,h)
Multiva Mexico Trust Corp.
9.75%, 06/09/97 4,700 4,206 (b)
New Brunswick Province Canada
7.125%, 10/01/02 4,000 3,709
New England Telephone & Telegraph Co.
7.875%, 11/15/29 8,725 9,081
News America Holdings Inc.
10.125%, 10/15/12 14,900 15,533
12.00%, 12/15/01 10,000 11,110
Nippon Telegraph & Telephone Corp.
9.50%, 07/27/98 6,100 6,336
Nova Scotia Province Canada
8.25%, 11/15/19 6,350 6,335
Paine Webber Group Inc.
8.62%, 05/06/97 5,000 5,013
8.76%, 03/11/97 10,000 10,055
Petroleos Mexicanos
7.437%, 03/08/99 7,765 7,454 (b)
Phillips Petroleum Co.
9.375%, 02/15/11 5,200 5,423
Public Service Co.
8.875%, 05/15/96 5,150 5,156
Quebec Province Canada
8.625%, 12/01/26 10,000 9,578
RJR Nabisco Inc.
8.75%, 08/15/05 10,000 9,117
Sears Roebuck & Co.
10.00%, 02/03/12 4,300 4,690
Southern California Gas Co.
6.50%, 12/15/97 6,860 6,553
Super Value Store
5.875%, 11/15/95 5,000 4,930
Taubman Reality Group Ltd. Partners
6.125%, 11/03/97 10,500 10,464
Tenaga Nasional Berhad
7.875%, 06/15/04 6,400 6,094 (b)
Time Warner Entertainment Co L P
10.15%, 05/01/12 6,875 6,919
Time Warner, Inc.
6.05%, 07/01/95 19,500 19,337 (b)
Toledo Edison Co.
7.38%, 03/31/00 10,750 9,469
Unisys Corp.
10.625%, 10/01/99 9,800 9,898
<FN>
See Notes to Schedule of Investments and Financial Statements.
</TABLE>
<PAGE>
24
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands)
S&S LONG TERM INTEREST FUND
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Principal
Amount Value
- ------------------------------------------------------------------------
<S> <C> <C>
USX Marathon Group
8.875%, 09/15/97 $10,000 $10,037
9.80%, 07/01/01 8,000 8,195
Westinghouse Credit Corp.
8.875%, 06/14/14 5,000 4,925
TOTAL CORPORATE NOTES (COST $753,076) 720,618
FOREIGN DENOMINATED BONDS & NOTES-5.5%
Canada Government
7.50%, 07/01/97 CAD 5,803 4,014
8.50%, 03/01/00 CAD 5,389 3,772
Federal Republic of Germany
8.375%, 01/20/97 DEM 11,740 7,807
Government of France
5.00%, 03/16/99 XEU 6,520 7,101
Government of Spain
8.30%, 12/15/98 ESP 2,375,900 16,209
Kingdom of Denmark
9.00%, 11/15/98 DKK 126,671 21,034
Kingdom of Spain
11.60%, 01/15/97 ESP 495,000 3,789
Kingdom of Sweden
11.00%, 01/21/99 SEK 94,700 13,036
New Zealand Government
9.00%, 11/15/96 NZD 36,000 22,876
Republic of Italy
8.50%, 08/01/97 - 08/01/99 ITL 8,935,000 4,980
12.00%, 09/18/98 ITL 21,760,000 13,487
Treuhandanstalt
6.25%, 07/29/99 DEM 12,060 7,468
United Kingdom
5.25%, 01/21/97 XEU 6,683 7,801
United Kingdom Treasury
7.00%, 11/06/01 GBP 1,022 1,457
8.75%., 09/01/97 GBP 9,110 14,375
World Bank
7.25%, 10/13/99 DEM 8,260 5,320
Total Foreign Denominated Bonds
& Notes (Cost $156,245) 154,526
TOTAL INVESTMENTS IN SECURITIES
(COST $3,041,548) 2,945,500
<CAPTION>
TEMPORARY INVESTMENTS-11.7%
- ------------------------------------------------------------------------
Bank Austria
7.50%, 01/03/95 $ 26,130 $ 26,130
Canadian Imperial Bank
6.125%, 01/03/95 9,990 9,990
Federal Home Loan Bank
5.75%, 01/03/95 53,030 53,013
Federal National Mortgage Assoc.
5.82%, 01/06/95 37,000 36,970
Mitsubishi Bank
8.50%, 01/03/95 157,700 157,700
283,803
REPURCHASE AGREEMENTS-1.6%
State Street Bank and Trust Co.
5.25%, 01/03/95 44,986 44,986
(dated 12/30/94, proceeds $45,012,
collateralized by $46,600 United States
Treasury Note, 5.125%, 3/31/96)
TOTAL TEMPORARY INVESTMENTS (COST $328,789) 328,789
OTHER ASSETS AND LIABILITIES, NET (16.7%) (467,856)
----------
NET ASSETS-100% $2,806,433
==========
</TABLE>
FORWARD FOREIGN CURRENCY CONTRACTS
At December 31, 1994, the outstanding forward foreign currency contracts,
which contractually obligate the S&S Long Term Interest Fund to deliver
currencies at a specified date, were as follows:
<TABLE>
<CAPTION>
Foreign Foreign U.S. $ Cost on U.S. $ Unrealized
Currency Currency Origination Current Appreciation
Sale Contracts Cost Date Value (Depreciation)
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
DEM, expiring
01/18/95 8,558 $ 5,500 $ 5,525 $(25)
DKK, expiring
01/17/95 16,432 2,700 2,701 (1)
ITL, expiring
01/17/95 3,846,240 2,400 2,372 28
SEK, expiring
01/17/95 12,225 1,650 1,645 5
XEU, expiring
01/17/95 1,611 1,975 1,975 0
---------- ---------- ----------
$14,225 $14,218 $ 7
========== ========== ==========
<FN>
See Notes to Schedule of Investments and Financial Statements.
</TABLE>
<PAGE>
25
NOTES TO SCHEDULE OF INVESTMENTS
(Dollars in thousands)
(a) Non-income producing security.
(b) Pursuant to Rule 144A of Securities Act of 1933, these securities may be
resold in transactions exempt from registration, normally to qualified
institutional buyers. At December 31, 1994, these securities amounted to
$25,404 and $50,542 or 1.5% and 1.8% of net assets for the S&S Program
Mutual Fund and S&S Long Term Interest Fund, respectively.
(c) Settlement is on a delayed delivery or when issued basis with final
maturity to be announced (TBA) in the future.
(d) Principal only.
(e) Interest only security. Coupon amount represents effective yield.
(f) Floating rate coupon. The stated rate represents the rate at December
31, 1994.
(g) Bond is zero coupon; coupon amounts represent effective yield.
(h) Restricted securities. Securities are not registered under the
Securities Act of 1933, or have contractual or legal restrictions to
resale. Dates of acquisition and costs are shown in parentheses after
the titles of the restricted securities. The Fund does not intend to
register these securities and therefore should not bear any costs of
registration. These restricted securities are fair valued by officers of
the Funds under procedures authorized by the Trustees. At December 31,
1994, the fair value of these restricted securities represented $22,369
or 0.8% of net assets of S&S Long Term Interest Fund.
(i) At December 31, all or a portion of this security was pledged to cover
collateral requirements for TBA's.
Abbreviations:
Currency Terms
CAD - Canadian Dollar
DEM - Deutsche Mark
DKK - Danish Krone
ESP - Spanish Peseta
GBP - British Pound
ITL - Italian Lira
NZD - New Zealand Dollar
SEK - Swedish Krona
XEU - European Currency Unit
ADR - American Depository Receipt
<PAGE>
26
REPORT OF INDEPENDENT AUDITORS
KPMG PEAT MARWICK LLP
TO THE BOARD OF TRUSTEES AND UNITHOLDERS OF THE GE S&S PROGRAM FUNDS:
We have audited the accompanying statements of assets and liabilities of the
GE S&S Program Mutual Fund and GE S&S Long Term Interest Fund, including the
schedules of investments, as of December 31, 1994, and the related statements
of operations for the year then ended, the statements of changes in net assets
for each of the years in the two-year period then ended, and the financial
highlights for each in the years of the five-year period then ended. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based upon our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of December 31, 1994, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of GE
S&S Program Mutual Fund and GE S&S Long Term Interest Fund as of December 31,
1994, the results of their operations for the year then ended, the changes in
their net assets for each of the years in the two-year period then ended, and
their financial highlights for each of the years in the five-year period then
ended, in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
New York, New York
February 6, 1995
<PAGE>
27
GE S&S PROGRAM
The following information is provided for participants in the GE Savings &
Security Program and supplements the description of the Program as it appears
in the GE Employee Benefits Summary Plan Description booklet, as amended (GE
Benefits Handbook).
The Schedules of Investments for the S&S Short Term Interest Fund and S&S
Money Market Fund have been included as an additional feature.
Following the Schedules of Investments are two tables designed to illustrate
the relative market value of investments offered under the Program.
Performance data information is based upon historical earnings and is not
intended to indicate future performance. The notes are an integral part of
these tables.
The Supplemental Information and Schedules of Investments have not been
audited.
<PAGE>
28
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands) (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
S&S SHORT TERM INTEREST FUND
- -------------------------------------------------------------------------
Principal
Amount Value
- -------------------------------------------------------------------------
BONDS AND NOTES-108.4%
- -------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENTS-29.1%
Tennessee Valley Auth. 3.995%, 07/20/95 $15,000 $14,082
U.S. Treasury Notes
6.00%, 06/30/96 41,000 40,116
6.25%, 08/31/96 4,750 4,650
6.50%, 09/30/96 170,150 167,092 (i)
9.375%, 04/15/96 9,450 9,660
221,518
TOTAL U.S. GOVERNMENTS (COST $240,336) 235,600
MORTGAGE-BACKED-18.8%
Federal Home Loan Mortgage Corp.
5.951%, 07/01/24 4,865 4,811
6.00%, 12/01/08 4,026 3,781
7.50%, 12/01/06 5,656 5,469
14,061
Federal National Mortgage Assoc.
5.37%, 08/25/23 6,770 5,777(d,g)
6.00%, 05/01/01 1,558 1,474
7,251
Government National Mortgage Assoc. (ARM)
6.50%, TBA 23,085 22,248 (c)
7.00%, TBA 19,100 18,694 (c)
7.50%, TBA 27,000 26,876 (c)
67,818
Collateralized Mortgage Obligations
CMC Securities Corp. REMIC
6.316%, 09/25/23 8,886 8,765 (f)
FDIC Remic Trust
6.40%, 01/25/25 24,359 24,086
Federal Home Loan Mortgage Corp.
7.50%, 09/15/20 9,500 9,113
7.95%, 01/15/20 4,000 3,881
10.20%, 07/15/19 3,994 3,528(d,g)
Federal National Mortgage Assoc. REMIC
7.50%, 10/25/19 4,600 4,469
8.50%, 11/25/19 3,065 3,034
11.10%, 07/25/21 5,258 4,847(d,g)
Salomon Brothers Mortgage Securities Inc.
8.125%, 11/01/12 1,821 1,755
63,478
TOTAL MORTGAGE-BACKED (COST $155,347) 152,608
ASSET BACKED-19.1%
Advanta Credit Card Master Trust Corp.
6.285%, 09/01/00 7,274 7,267
EQCC Home Equity Loan Trust
5.80%, 12/15/09 12,329 11,359
First Chicago
6.295%, 01/15/99 3,204 3,194
First Deposit
4.90%, 06/15/00 15,000 14,630
First USA Credit Card Master Trust
6.305%, 12/15/03 3,750 3,746
6.425%, 02/15/00 13,000 13,004 (f)
Ford Credit Auto Loan Master Trust
6.875%, 01/15/99 12,000 11,726
HFC Home Equity Loan
4.65%, 12/20/08 7,115 6,710
ITT Floorplan Receivables
6.387%, 02/15/01 2,400 2,400
MBNA Master Credit Card Trust
5.82%, 03/15/00 5,800 5,842
6.275%, 07/15/98 5,000 4,995 (f)
6.295%, 01/16/02 10,000 9,991
Nationsbank Credit Card Master Trust
4.75%, 09/15/98 15,500 14,604
Peoples Bank Credit Card Master Trust
6.337%, 01/03/15 4,000 3,995
Premier Auto Trust
6.20%, 10/02/97 4,200 4,112
Society Student Loan Trust
5.888%, 04/25/03 17,200 17,188 (f)
Structured Asset Securities Corp.
6.87%, 08/25/26 7,944 7,689
<FN>
See Notes to Schedule of Investments
</TABLE>
<PAGE>
29
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands) (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
S&S SHORT TERM INTEREST FUND
- -------------------------------------------------------------------------
Principal
Amount Value
- -------------------------------------------------------------------------
<S> <C> <C>
The Money Store Home Equity Trust
5.675%, 02/15/09 $13,661 $12,598
TOTAL ASSET BACKED (COST $159,489) 155,050
CORPORATE NOTES-41.4%
Advanta Corp.
5.125%, 11/15/96 10,000 9,477
Advanta Mortgage Loan Trust Corp.
6.30%, 07/25/25 6,477 6,015
Arkla Inc.
9.875%, 04/15/97 3,000 3,030
Ashland Oil Co
10.125%, 04/15/96 5,000 5,125
Associates Corp. North America
4.84%, 06/14/96 10,000 9,597
Banponce Financial Corp.
5.60%, 03/25/96 5,000 4,870
5.68%, 03/28/96 4,900 4,776
6.825%, 11/25/96 5,000 4,944
6.875%, 01/07/97 10,000 10,040
Chase Manhattan Corp.
7.50%, 12/01/97 15,000 14,627
Citicorp
7.57%, 02/24/95 10,000 10,012
Countrywide Funding Corp.
5.34%, 04/01/96 10,000 9,725
Dean Witter Discover & Co.
5.89%, 09/29/97 4,000 3,990
Discover Credit Corp.
6.609%, 07/24/95 5,000 5,009 (f)
First Chicago Corp.
7.02%, 03/06/95 5,000 5,005
First USA Bank Wilmington Delaware
5.75%, 01/15/99 5,000 4,507
6.04%, 11/30/95 5,000 4,995
6.88%, 09/12/96 12,300 12,250
Ford Motor Credit Corp.
6.25%, 02/26/98 10,000 9,420
General Motors Acceptance Corp.
5.89%, 11/15/96 10,700 10,684
6.75%, 07/10/97 9,200 8,839
8.35%, 09/05/96 12,375 12,395
Hartford Life Insurance Co.
9.11%, 09/13/95 36,367 36,367 (g)
Lehman Brothers
8.05%, 01/15/19 2,000 1,905
Lockheed Corp.
6.262%, 05/11/95 10,000 10,006 (f)
Merrill Lynch & Co., Inc.
5.00%, 12/15/96 5,000 4,714
Metropolitan Life GAC 114815
8.74%, 01/05/95 37,974 37,974 (g)
Morgan Stanley Group, Inc.
7.32%, 01/15/97 3,750 3,685
National City Corp.
5.812%, 01/31/97 7,500 7,463
News America Holdings Inc.
12.00%, 12/15/01 13,500 14,999
Petroleos Mexicanos
7.437%, 03/08/99 2,300 2,208 (b)
Plus Capital Ltd.
7.875%, 01/15/95 5,000 5,002 (b)
Public Service Co.
8.875%, 05/15/96 8,000 8,009
Sears Roebuck & Co.
9.25%, 04/15/98 7,000 7,178
Skandia Capital
6.00%, 11/02/98 10,000 9,100
Southern California Edison Co.
6.125%, 07/15/97 5,000 4,754
Time Warner, Inc.
6.05%, 07/01/95 6,000 5,950 (b)
Unisys Corp.
9.75%, 09/15/96 6,600 6,567
TOTAL CORPORATE NOTES
(COST $341,472) 335,213
TOTAL INVESTMENTS IN SECURITIES
(COST $896,644) 878,471
TEMPORARY INVESTMENTS-12.9%
- ------------------------------------------------------------------------
Federal Home Loan Bank
5.75%, 01/03/95 42,030 42,017
<FN>
See Notes to Schedule of Investments
</TABLE>
<PAGE>
30
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands) (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
S&S SHORT TERM INTEREST FUND
- -------------------------------------------------------------------------
Principal
Amount Value
- -------------------------------------------------------------------------
<S> <C> <C>
Federal National Mortgage Assoc.
5.82%, 01/06/95 $30,000 $29,976
Mitsubishi Bank
8.50%, 01/03/95 15,420 15,420
State Street Cayman Islands
6.375%, 01/03/95 5,990 5,990
Union Bank Switzerland
6.00%, 01/03/95 10,810 10,806
TOTAL TEMPORARY INVESTMENTS
(COST $104,209) 104,209
OTHER ASSETS AND LIABILITIES,
NET (21.3%) (172,362)
----------
NET ASSETS - 100% $810,318
==========
<FN>
See Notes to Schedule of Investments
</TABLE>
<PAGE>
31
SCHEDULE OF INVESTMENTS
December 31, 1994 (Dollars in Thousands) (Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
S&S MONEY MARKET FUND
- -------------------------------------------------------------------------
Principal Amortized
Amount Cost
- -------------------------------------------------------------------------
SHORT TERM INVESTMENTS-99.8%
- -------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENTS-34.7%
Federal Home Loan Bank
5.64%, 01/30/95 $20,500 $ 20,404
5.75%, 01/03/95 64,950 64,929
85,333
Federal Home Loan Mortgage Corp.
5.75%, 01/03/95 20,000 19,994
Federal National Mortgage Assoc.
5.85%, 01/30/95 20,000 19,906
5.91%, 01/09/95 20,500 20,473
6.20%, 04/17/95 11,700 11,486
6.22%, 04/27/95 13,270 13,004
6.34%, 05/22/95 17,000 16,578
81,447
TOTAL U.S. GOVERNMENTS (COST $186,774) 186,774
COMMERCIAL PAPER-40.6%
Associates Corp. North America
5.69%, 01/20/95 20,000 19,940
Bankers Trust Co.
5.33%, 01/18/95 20,000 19,950
Bear Stearns & Co.
5.77%, 02/06/95 20,400 20,283
Commonwealth Bank Australia
5.54%, 02/08/95 20,000 19,883
Deutsche Bank AG
5.95%, 01/11/95 20,000 20,000
Goldman Sachs Group LP
5.30%, 01/06/95 20,000 19,985
Halifax Building Society
5.71%, 01/24/95 20,800 20,724
Kredietbank
5.36%, 01/20/95 20,200 20,143
Merrill Lynch & Co. Inc.
5.75%, 01/12/95 8,000 7,986
Morgan Stanley Group Inc.
5.96%, 01/06/95 10,000 9,992
Norwest Corp.
5.77%, 01/10/95 20,000 19,971
Republic National Bank
6.06%, 02/01/95 19,300 19,199
TOTAL COMMERCIAL PAPER
(COST $218,056) 218,056
CERTIFICATES OF DEPOSIT-24.3%
Algemene Bank Nederland N.V.
5.75%, 01/17/95 20,000 20,000
Bayerische Landesbank
5.87%, 01/31/95 16,000 16,000
Bayerische Vereinsbank AG
5.81%, 01/23/95 20,000 20,000
Commerzbank
5.50%, 01/17/95 15,000 15,000
Royal Bank of Canada
5.81%, 02/24/95 19,600 19,600
Societe Generale
5.50%, 01/25/95 20,000 20,000
Swiss Bank Corp.
5.43%, 01/03/95 20,000 20,000
TOTAL CERTIFICATES OF DEPOSIT
(COST $130,600) 130,600
TIME DEPOSITS-0.2%
State Street Cayman Islands
6.375%, 01/03/95
(Cost $940) 940 940
TOTAL SHORT TERM INVESTMENTS
(COST $536,370) 536,370
OTHER ASSETS AND LIABILITIES,
NET 0.2% 1,122
----------
NET ASSETS - 100% $537,492
==========
<FN>
See Notes to Schedule of Investments
</TABLE>
<PAGE>
32
GE S&S Program Supplemental Information
Investment at $100 per Month
The first table illustrates the cumulative value at each year end of an
assumed investment in the amount of $100 per month. The table covers an
investment beginning January 1, 1992, in U.S. Savings Bonds ("Bonds"), GE
Common Stock ("Stock"), S&S Program Mutual Fund ("Mutual Fund"), S&S Short
Term Interest Fund ("ST Fund"), S&S Long Term Interest Fund("LT Fund"), and
S&S Money Market Fund ("MM Fund").
<TABLE>
Value of investment of $100 per month <F1>
Investment Beginning January 1, 1992
<CAPTION>
Bonds Stock Mutual Fund
--------------------------- -------------------------- -----------------------------
Cumulative Redemption Market Value Value
Amount Value Including Including
At Year Invested Cumulative Including Cumulative Reinvested Cumulative Reinvested
Ended In Each Accrued Accrued Reinvested Dividends Reinvested Distributions
Dec. 31 Media Interest Interest Dividends <F2> <F3> Distributions <F2> <F4>
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1992 $1,200 $ 18 $1,218 $ 11 $1,335 $111 $1,278
1993 2,400 97 2,497 61 3,039 390 2,689
1994 3,600 232 3,832 156 4,290 674 3,830
<CAPTION>
ST Fund LT Fund MM Fund
--------------------------- -------------------------- -----------------------------
Cumulative Value Value
Amount Including Cumulative Including Value
At Year Invested Cumulative Reinvested Reinvested Reinvested Cumulative Including
Ended In Each Accrued Interest Distributions Distributions Accrued Reinvested
Dec. 31 Media Interest <F2> <F4> <F2> <F4> <F2> <F4> Interest Interest
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1992 $1,200 $ 44 $1,240 $ 60 $1,254 $ 25 $1,225
1993 2,400 151 2,545 298 2,618 86 2,486
1994 3,600 335 3,803 542 3,752 224 3,824
<FN>
Notes:
<F1> The Program provides for Proportionate Company Payments in addition to
Employee Contributions. The amounts shown are simply for illustrative
purposes and do not reflect any such Proportionate Company Payments.
<F2> Cumulative values include the year-end market value of Stock and the
Unit Price of Mutual Fund, ST Fund, and LT Fund Units purchased through
the reinvestment of income and dividends, as the case may be. Capital
gains distributions of $2.76, $3.43, and $1.71 per unit were paid on
Mutual Fund Units in 1992, 1993 and 1994, respectively, and capital gain
distributions of $0.11, $0.54 and $0.09 per unit were paid on LT Fund
Units in 1992, 1993 and 1994, respectively.
<F3> The market value of Stock is based on the closing price as of year end,
as reported by the Consolidated Tape of New York Stock Exchange listed
shares.
<F4> The value of Mutual Fund, ST Fund, and LT Fund Units is based on the
Unit Price as of year end. Unit Price, which is equal to the net asset
value per Unit, is determined in accordance with Section III of the
Rules of the Funds. Effective January 1, 1989, the HP Fund was
discontinued as an employee savings option. As provided by the Plan,
employee contributions, plus accumulated interest, for the year 1990
will be converted into LT Fund Units as of January 1, 1995. The HP Fund
rate was 4.73% in 1994.
</TABLE>
<PAGE>
33
$1,000 Investment
This table illustrates the value at year end of an assumed investment of
$1,000 made on January 1, 1992 in Bonds, Stock, Mutual Fund, ST Fund, LT Fund,
and MM Fund.
<TABLE>
Value of investment of $1,000
Investment Made on January 1, 1992
<CAPTION>
Bonds Stock Mutual Fund
---------------------------- -------------------------- ------------------------------
Redemption Market Value Value
Value Including Including
At Year Cumulative Including Cumulative Reinvested Cumulative Reinvested
Ended Accrued Accrued Reinvested Dividends Reinvested Distributions
Dec. 31 Interest Interest Dividends <F2><F3> Distributions <F2><F4>
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1992 $ 39 $1,039 $22 $1,134 $102 $1,083
1993 91 1,091 56 1,429 232 1,207
1994 126 1,126 96 1,431 322 1,186
<CAPTION>
ST Fund LT Fund MM Fund
---------------------------- -------------------------- ------------------------------
Value Value Redemption
Including Including Value
At Year Cumulative Reinvested Cumulative Reinvested Cumulative Including
Ended Accrued Interest Reinvested Distributions Accrued Reinvested
Dec. 31 Interest <F2><F4> Distributions <F2><F4> Interest Interest
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1992 $ 69 $1,063 $ 87 $1,069 $ 40 $1,040
1993 130 1,125 211 1,174 75 1,075
1994 194 1,144 298 1,144 121 1,121
</TABLE>
GE S&S Program Mutual Fund and S&S Long Term Interest Fund Operating Expenses
(as a percentage of average net assets) for the year ended December 31, 1994:
Mutual Fund LT Fund
- -----------------------------------------------------------------------------
Management Expenses .07% .06%
Other Expenses .06% .05%
----- -----
Total Fund operating expenses .13% .11%
===== =====
The following expenses would be paid on a $1,000 investment assuming 5% annual
return:
1 Year 3 Years 5 Years 10 Years
- -----------------------------------------------------------------------------
Mutual Fund $1 $4 $7 $17
LT Fund 1 4 6 14
The purpose of this table is to assist the investor in understanding the
expenses that an investor in the Fund will bear indirectly. This example
should not be considered a representation of past or future expenses. Actual
expenses may be greater or lesser than those shown.
<PAGE>
34
GE S&S PROGRAM DISCLOSURE STATEMENT
GE SAVINGS AND SECURITY PROGRAM
THE GE SAVINGS AND SECURITY PROGRAM (THE "S&SP") IS DESIGNED TO COMPLY WITH
SECTION 404(C) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT, WHICH SETS
FORTH CERTAIN RIGHTS AND RESPONSIBILITIES FOR FIDUCIARIES. IN THE S&SP, YOU -
NOT THE COMPANY, THE TRUSTEES OR ANYONE ELSE - CONTROL YOUR OWN INVESTMENTS.
YOU HAVE A DIVERSE CHOICE OF INVESTMENT OPTIONS AND THE ABILITY TO MAKE
FREQUENT CHANGES, DEPENDING ON YOUR PERSONAL SAVINGS STRATEGY. AS A RESULT,
THE FIDUCIARIES OF THE S&SP WILL NOT BE LIABLE FOR LOSSES OCCURRING TO YOUR
ACCOUNT BECAUSE OF YOUR INVESTMENT CONTROL.
THIS DOCUMENT SETS FORTH INFORMATION ABOUT THE INVESTMENT ALTERNATIVES
AVAILABLE TO PARTICIPANTS OF THE S&SP AND IS BEING PROVIDED TO ASSIST THEM IN
MAKING INFORMED INVESTMENT DECISIONS. THIS DOCUMENT IS INTENDED TO CONSTITUTE
PART OF THE INFORMATION REQUIRED TO BE PROVIDED TO PARTICIPANTS BY SECTION
404(C) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT AND TITLE 29 OF THE CODE
OF FEDERAL REGULATIONS SECTION 2550.404C-1. FOR A DESCRIPTION OF CERTAIN
INFORMATION AVAILABLE TO PARTICIPANTS OF THE S&SP, SEE "ADDITIONAL
INFORMATION" BELOW. THE TERM "PARTICIPANTS" WHEN USED HEREIN REFERS TO
PARTICIPANTS AND/OR BENEFICIARIES OF THE S&SP, AS THE CASE MAY BE.
The S&SP provides employees of General Electric Company (the "Company")
and its participating affiliates an opportunity for convenient, regular and
substantial personal savings. Subject to certain restrictions more fully
described in the GE Benefits Handbook, the S&SP enables employees to invest
their savings in one or more of the following investment media:
a. Common Stock of the Company ("Stock");
b. GE S&S Program Mutual Fund (the "Mutual Fund");
c. GE S&S Short Term Interest Fund (the "ST Fund");
d. GE S&S Long Term Interest Fund (the "LT Fund");
e. GE S&S Money Market Fund (the "MM Fund" and, collectively with the
Mutual Fund, the ST Fund, and the LT Fund, the "Funds");
f. United States Savings Bonds ("Bonds"); and
g. Life Insurance.
DESCRIPTION OF INVESTMENT ALTERNATIVES
I. BONDS
The Bonds in which participants may invest are Series "EE" Savings Bonds
issued by the U.S. Treasury. Beginning July 1, 1995, such purchase may be made
only from the participant's after-tax savings. The option to purchase Bonds
under the S&SP is subject to numerous restrictions which are more fully
described in the GE Benefits Handbook.
II. STOCK
The participants may invest in shares of common stock of the Company.
The Stock held in a participant's account will increase or decrease in value
depending on how well the Stock performs in the stock market. Participants
should be aware that an investment in stock of any company, including the
Company's Stock, may be subject to greater market volatility than investing in
a diversified portfolio of securities. There are no restrictions on the
exercise of voting, tender or similar rights appurtenant to a participant's
investment in Stock. The option to purchase Stock under the S&SP is more fully
described in the GE Benefits Handbook.
It is the policy of the Trustees of the S&SP that information relating
to participant transactions and voting with respect to Stock in the S&SP shall
be maintained in confidence. While participants may easily access information
relating to their own accounts, third party access to participant information
is restricted through the use of PIN numbers. In addition, those individuals
whose jobs require them to have access to S&SP records are instructed
concerning the confidential nature of this information. The Trustees of the
S&SP (c/o General Electric Investment Corporation, 3003 Summer Street,
Stamford, CT 06905 (203-326-2300)) are responsible for monitoring compliance
with the procedures established to provide for the confidentiality of this
information.
<PAGE>
35
GE S&S PROGRAM DISCLOSURE STATEMENT - Continued
RESALE OF SHARES ACQUIRED PURSUANT TO THE PLAN.
Officers of the Company may reoffer or resell Stock acquired pursuant to
the S&SP only in connection with a separate registration statement which has
been declared effective under the Securities Act of 1933, as amended (the
"1933 Act"), an amendment to the current Registration Statement on Form S-8 of
the S&SP, or pursuant to an available exemption under the 1933 Act, including
the exemption provided by Rule 144 or any successor provisions thereunder
(hereinafter referred to as "Rule 144"), subject to certain limitations set
forth in Rule 144 but without regard to the two-year holding period provided
for under Rule 144. Officers of the Company who acquire Stock pursuant to the
S&SP should consult with their assigned counsel to ascertain whether or not
their position within the Company requires compliance with the resale
restrictions described above.
III. LIFE INSURANCE
Any participant may elect to apply 1% or 1/2% of his or her earnings to
the purchase of life insurance. Such purchase shall be from the participant's
after-tax savings. The option to purchase life insurance under the S&SP and
the benefits payable thereunder are more fully described in the GE Benefits
Handbook.
IV. INVESTMENTS IN THE FUNDS
A. INVESTMENT OBJECTIVES AND POLICIES
1. GE S&S PROGRAM MUTUAL FUND
The moneys received by the Mutual Fund will be invested principally in
common stock and in securities convertible into common stock. Purchases will
be made principally on the basis of opportunities for long-term growth of
capital and income. The Mutual Fund may keep a portion of its assets in cash
or invest the same in short-term obligations, including repurchase agreements.
Investments may also be made in preferred stocks and in debt securities when
such investments appear consistent with the long-term objectives of the Mutual
Fund. Securities may be sold without regard to the length of time they have
been held; however, they will not be purchased for trading purposes.
Although the Mutual Fund is expected to invest primarily in securities
issued by U.S. companies, the Mutual Fund may also invest in foreign
securities, including securities of foreign issuers in the form of depositary
receipts. Additional instruments in which the Mutual Fund may invest include,
but are not limited to, securities rated lower than investment grade, non-
publicly traded securities, illiquid securities and securities that are not
registered under the the 1933 Act, but that can be sold to "qualified
institutional buyers" in accordance with Rule 144A under the 1933 Act ("Rule
144A Securities"). In addition, the Mutual Fund may engage in certain
investment techniques and strategies, which may include entering into
securities transactions on a when-issued or delayed-delivery basis. These
instruments, investment techniques and strategies have risks and special
considerations associated with them that are described below under "Risk
Factors and Special Considerations."
2. GE S&S Short Term Interest Fund
The moneys received by the ST Fund will be invested in debt obligations
of the U.S. Government and its instrumentalities, banks and corporations, and
contracts with insurance companies. Investments will be made principally with
the objective of preserving principal and achieving a market-related interest
rate of return. Nevertheless, the ST Fund may keep a portion of its assets in
cash or invest the same in appropriate short-term obligations or in
intermediate-term obligations when such investments appear consistent with the
objective of the ST Fund. Securities may be sold without regard to the length
of time held; however, they will not be purchased for trading purposes.
<PAGE>
36
GE S&S PROGRAM DISCLOSURE STATEMENT - (Continued)
Additional instruments in which the ST Fund may invest include, but are
not limited to, obligations of foreign companies or foreign governments or
their agencies or instrumentalities, non-publicly traded securities,
repurchase agreements, illiquid securities, Rule 144A Securities, securities
of other investment funds, mortgage related securities, adjustable rate
mortgage related securities ("ARMs"), collateralized mortgage obligations
("CMOs"), government stripped mortgage related securities, asset-backed and
receivable-backed securities, zero coupon obligations, floating and variable
rate instruments and money market instruments. The ST Fund may also invest in
indexed securities, the value of which is linked to currencies, interest
rates, commodities, indices or other financial indicators. In addition, the ST
Fund may engage in certain investment techniques and strategies, which may
include purchasing and writing put and call options on securities, purchasing
put and call options on securities indexes, entering into interest rate,
financial and bond index futures contracts or related options that are traded
on a U.S. or foreign exchange or board of trade or in the over-the-counter
market, engaging in forward currency transactions, purchasing and writing put
and call options on foreign currencies, entering into securities transactions
on a when-issued or delayed-delivery basis, entering into mortgage dollar
rolls and lending portfolio securities. These other instruments, investment
techniques and strategies have risks and special considerations associated
with them that are described below under "Risk Factors and Special
Considerations."
3. GE S&S LONG TERM INTEREST FUND
The LT Fund portfolio will be invested with the objective of achieving a
high interest rate of return over a long-term period consistent with a degree
of risk determined by the Trustees of the LT Fund to be acceptable for the LT
Fund from time to time in their absolute discretion and consistent with
prudent investment management and preservation of capital. The moneys received
by the LT Fund will be invested in debt securities consisting of corporate
bonds and debentures acquired in the public market or in private transactions,
real estate sale-leasebacks and real estate mortgages secured by net credit
leases, obligations of the U.S. Government and its instrumentalities,
contracts with insurance companies, preferred stock and other types of fixed
income investments. In order to meet the requirements of the LT Fund, the LT
Fund may keep a portion of its assets in cash or in appropriate short-term or
intermediate-term obligations. The LT Fund may participate in any available
futures market with respect to the above investments in order to reduce
uncertainties associated with interest rate fluctuations to the extent such
participation is permitted by law and consistent with the objectives of the LT
Fund. The Trustees of the LT Fund shall comply with the limitations on gross
income and the requirements with respect to the categories and diversification
of LT Fund assets as are applicable to regulated investment companies under
the Internal Revenue Code of 1986, as amended, and shall comply with the
requirements applicable to registered investment companies under the
Investment Company Act of 1940, as amended (the "1940 Act"), unless expressly
excepted therefrom. Any requirements with respect to categories and
diversification shall be determined by reference to the market value of the LT
Fund at the time of acquisition of the proposed investments. The LT Fund
portfolio will be diversified.
Additional instruments in which the LT Fund may invest include, but are
not limited to, obligations issued by foreign companies or foreign governments
or their agencies or instrumentalities, securities rated lower than investment
grade, non-publicly traded securities, repurchase agreements, illiquid
securities, Rule 144A Securities, securities of supranational agencies, zero
coupon obligations, floating and variable rate instruments, mortgage related
securities, ARMs, CMOs, government stripped mortgage related securities, asset-
backed and receivable-backed securities and money market instruments. The LT
Fund may also invest in indexed securities, the value of which is linked to
currencies, interest rates, commodities, indices or other financial
indicators. In addition, the LT Fund may engage in certain investment
techniques and strategies, which may include purchasing and writing put and
call options on securities, purchasing put and call options on securities
indexes, entering into interest rate, financial and bond index futures
contracts or related options that are traded on a U.S. or foreign exchange or
board of trade or in the over-the-counter market, engaging in forward currency
transactions, purchasing and writing put and call options on foreign
currencies, entering into securities transactions on a when-issued or delayed-
delivery basis, entering into mortgage dollar rolls and lending portfolio
securities. These other instruments, investment techniques and strategies have
risks and special considerations associated with them that are described below
under "Risk Factors and Special Considerations."
<PAGE>
37
GE S&S PROGRAM DISCLOSURE STATEMENT - (Continued)
4. GE S&S MONEY MARKET FUND
The investment objective of the MM Fund is to seek as high a level of
current income as is consistent with the preservation of capital and liquidity
within the standards prescribed by the Trustees of General Electric Savings &
Security Trust. The moneys received by the MM Fund will be invested in money
market instruments and in other debt securities maturing in one year or less.
Such instruments may include debt obligations of the U.S. Government and its
instrumentalities, debt obligations of banks, savings and loan associations
and corporations, and investments in other money market funds. Such
instruments may also include commercial paper and notes, including those with
floating or variable rates of interest, debt obligations of foreign branches
of foreign banks, debt obligations issued or guaranteed by one or more foreign
governments or any of their political subdivisions, agencies or
instrumentalities, including obligations of supranational entities, debt
securities issued by foreign issuers, and repurchase agreements. Nevertheless,
the Fund may keep a portion of its assets in cash. The MM Fund may participate
in any available futures market with respect to the above investments in order
to reduce uncertainties associated with interest rate fluctuations to the
extent such participation is permitted by law and consistent with the
objectives of the MM Fund.
The MM Fund, in addition to investing as described above, may hold Rule
144A Securities. In addition, the MM Fund may engage in certain investment
techniques and strategies, which may include entering into reverse repurchase
agreements, entering into securities transactions on a when-issued or delayed-
delivery basis and lending portfolio securities. These other instruments,
investment techniques and strategies have risks and special considerations
associated with them that are described below under "Risk Factors and Special
Considerations."
B. INVESTMENT RESTRICTIONS
1. THE MUTUAL FUND
Investments by the Mutual Fund shall be subject to the following
restrictions:
a. Moneys in the Mutual Fund will not be used in the
underwriting of securities or for the purchase of real estate,
interests in real estate, investment trusts, commodities or
commodity contracts, or invested in companies for the purpose of
exercising control or management, or invested in securities of
registered investment companies.
b. Moneys in the Mutual Fund will not be lent to others,
although they may be applied to the purchase of bonds and debt
securities of a type publicly distributed or customarily purchased
by institutional investors.
c. The Mutual Fund will not acquire any securities if
immediately after such acquisition and as a result thereof (a) the
Mutual Fund would hold more than 10% of the outstanding voting
securities of any issuer, (b) more than 5% of the value of the
total assets in the Mutual Fund would be represented by the
securities of any one issuer (except securities of the U.S.
Government and its instrumentalities), (c) more than 25% of the
value of the total assets in the Mutual Fund would be invested in
any particular industry, (d) more than 5% of the value of the
total assets in the Mutual Fund would be invested in issuers which
(including predecessors) have not been in continuous operation for
at least three years.
<PAGE>
38
GE S&S PROGRAM DISCLOSURE STATEMENT - (Continued)
d. The Mutual Fund will not invest in securities of the Company
or its affiliates, or in securities of the investment manager, and
will not during the existence of any underwriting syndicate
purchase any securities for which its investment manager is acting
as principal underwriter.
e. The Mutual Fund will not purchase from or sell any of its
portfolio securities to the Company or its affiliates or its
investment manager or any officer or director of either.
f. The Mutual Fund will not engage in margin transactions or
short sales or participate in a joint trading account.
g. The Mutual Fund will not invest in puts, calls or similar
options.
h. The Mutual Fund will not mortgage or pledge any of its
assets, except the Mutual Fund may borrow money from the GE
Savings and Security Trust and secure repayment by pledging assets
of the Mutual Fund.
2. THE ST FUND, THE LT FUND AND THE MM FUND
The ST Fund, the LT Fund and the MM Fund will not:
a. purchase securities on margin or sell short or participate
in a joint trading account;
b. deal in options to buy or sell securities except to the
extent permitted by law;
c. borrow money or property except as a temporary measure to
meet the cash or administrative needs of such Funds. In no event
will the amount of such borrowings exceed 10% of such Funds' total
assets taken at market value at the time of such borrowing;
d. make cash loans to others except through the purchase of
debt securities in accordance with such Funds' investment
objectives;
e. invest directly in real estate (except as specified in
Paragraph A.3. above with respect to investments of the LT Fund)
or invest in interests in oil, gas or other mineral lease or
production agreements;
f. act as an underwriter of securities for other issuers except
that such Fund may acquire securities under circumstances where if
they are later resold it may be deemed to be an underwriter under
the 1933 Act;
g. purchase securities for the purpose of exercising control or
management;
h. pledge, mortgage or hypothecate any of its assets except,
that, to secure borrowings permitted by subparagraph c, it may
pledge securities which, together with all such securities
previously so pledged, at the time of pledge, do not exceed 10% of
such Funds' total assets;
i. unless otherwise permitted by law, purchase from or sell
directly to any of its officers or Trustees or General Electric
Investment Corporation ("GEIC") or the officers or directors of
GEIC, or any other affiliate (as defined by the 1940 Act) of such
Fund or any affiliate of such affiliate, portfolio securities or
other property of such Fund; or
j. unless otherwise permitted by law, invest in securities of
the Company or its affiliates, or in securities of an investment
manager of such Fund and will not during the existence of any
underwriting syndicate purchase any securities for which its
investment manager is acting as principal underwriter.
In addition to the foregoing, the LT Fund will not:
a. purchase any security if as a result of such purchase more
than 25% of its total assets would be invested in a particular
industry;
b. purchase any security if as a result of such purchase more
than 25% of its total assets would be subject to legal or
contractual restrictions on resale; or
<PAGE>
39
GE S&S PROGRAM DISCLOSURE STATEMENT - (Continued)
c. invest in the securities of registered investment companies.
C. RISK FACTORS AND SPECIAL CONSIDERATIONS
Investing in the Funds involves risk factors and special considerations,
such as those described below:
GENERAL. An investment in any Fund should not be considered to be a
complete investment program.
DEBT INSTRUMENTS. Each of the Funds is authorized to invest in debt
instruments. A debt instrument held by a Fund will be affected by general
changes in interest rates that will in turn result in increases or decreases
in the market value of those obligations. The market value of debt instruments
in a Fund's portfolio can be expected to vary inversely to changes in
prevailing interest rates. In periods of declining interest rates, the yield
of a Fund holding a significant amount of debt instruments will tend to be
somewhat higher than prevailing market rates, and in periods of rising
interest rates, the Fund's yield will tend to be somewhat lower. In addition,
when interest rates are falling, money received by such a Fund from the
continuous sale of its shares will likely be invested in portfolio instruments
producing lower yields than the balance of its portfolio, thereby reducing the
Fund's current yield. In periods of rising interest rates, the opposite result
can be expected to occur.
CERTAIN INVESTMENT GRADE OBLIGATIONS. The Mutual Fund, the ST Fund and
the LT Fund may each invest in obligations rated BBB by S&P or Baa by Moody's.
Although obligations rated BBB by S&P or Baa by Moody's are considered
investment grade, they may be viewed as being subject to greater risks than
other investment grade obligations. Obligations rated BBB by S&P are regarded
as having only an adequate capacity to pay principal and interest and those
rated Baa by Moody's are considered medium-grade obligations that lack
outstanding investment characteristics and have speculative characteristics as
well.
LOW-RATED SECURITIES. The Mutual Fund, the ST Fund and the LT Fund are
authorized to invest in securities rated lower than investment grade
(sometimes referred to as "junk bonds"). Low-rated and comparable unrated
securities (collectively referred to as "low-rated" securities) likely have
quality and protective characteristics that, in the judgment of a rating
organization, are outweighed by large uncertainties or major risk exposures to
adverse conditions, and are predominantly speculative with respect to the
issuer's capacity to pay interest and repay principal in accordance with the
terms of the obligation. Securities in the lowest rating categories may be in
default or may present substantial risks of default.
Although the market values of low-rated securities tend to react less to
fluctuations in interest rate levels than the market values of higher-rated
securities, the market values of certain low-rated securities tend to be more
sensitive to individual corporate developments and changes in economic
conditions than higher-rated securities. In addition, low-rated securities
generally present a higher degree of credit risk. Issuers of low-rated
securities are often highly leveraged and may not have more traditional
methods of financing available to them, so that their ability to service their
debt obligations during an economic downturn or during sustained periods of
rising interest rates may be impaired. The risk of loss due to default by
these issuers is significantly greater because low-rated securities generally
are unsecured and frequently are subordinated to the prior payment of senior
indebtedness. A Fund may incur additional expenses to the extent that it is
required to seek recovery upon a default in the payment of principal or
interest on its portfolio holdings. The existence of limited markets for low-
rated securities may diminish a Fund's ability to obtain accurate market
quotations for purposes of valuing the securities held by the Fund and
calculating the Fund's net asset value.
<PAGE>
40
GE S&S PROGRAM DISCLOSURE STATEMENT - (Continued)
NON-PUBLICLY TRADED AND ILLIQUID SECURITIES. The Mutual Fund, the ST
Fund and the LT Fund may each invest in non-publicly traded securities and
illiquid securities. Non-publicly traded securities may be less liquid than
publicly traded securities. Although these securities may be resold in
privately negotiated transactions, the prices realized from these sales could
be less than those originally paid by a Fund. In addition, companies whose
securities are not publicly traded are not subject to the disclosure and other
investor protection requirements that may be applicable if their securities
were publicly traded. A Fund's investments in illiquid securities are subject
to the risk that should the Fund desire to sell any of these securities when a
ready buyer is not available at a price that GEIC deems representative of
their value, the value of the Fund's net assets could be adversely affected.
REPURCHASE AND REVERSE REPURCHASE AGREEMENTS. The Mutual Fund, the ST
Fund, the LT Fund and the MM Fund may enter into repurchase agreements. A Fund
entering into a repurchase agreement will bear a risk of loss in the event
that the other party to the transaction defaults on its obligations and the
Fund is delayed or prevented from exercising its rights to dispose of the
underlying securities. A Fund will be, in particular, subject to the risk of a
possible decline in the value of the underlying securities during the period
in which the Fund seeks to assert its right to them, the risk of incurring
expenses associated with asserting those rights and the risk of losing all or
a part of the income from the agreement.
The MM Fund may enter into reverse repurchase agreements. A reverse
repurchase agreement involves the risk that the money market value of the
securities retained by the MM Fund may decline below the price of the
securities the Fund has sold but is obligated to repurchase under the
agreement. In the event the buyer of securities under a reverse repurchase
agreement files for bankruptcy or becomes insolvent, the MM Fund's use of the
proceeds of the agreement may be restricted pending a determination by the
party, or its trustee or receiver, whether to enforce the Fund's obligation to
repurchase the securities.
WARRANTS. The Mutual Fund may invest in warrants. Because a warrant,
which is a security permitting, but not obligating, its holder to subscribe
for another security, does not carry with it the right to dividends or voting
rights with respect to the securities that the warrant holder is entitled to
purchase, and because a warrant does not represent any rights to the assets of
the issuer, a warrant may be considered more speculative than certain other
types of investments. In addition, the value of a warrant does not necessarily
change with the value of the underlying security and a warrant ceases to have
value if it is not exercised prior to its expiration date. Warrants acquired
by the Mutual Fund in units or attached to securities may be deemed to be
without value.
INVESTMENT IN FOREIGN SECURITIES. Each Fund may invest in securities
issued by foreign companies and foreign governments or their agencies or
instrumentalities. Investing in securities issued by foreign companies and
governments involves considerations and potential risks not typically
associated with investing in obligations issued by the U.S. Government and
U.S. corporations. Less information may be available about foreign companies
than about U.S. companies, and foreign companies generally are not subject to
uniform accounting, auditing and financial reporting standards or to other
regulatory practices and requirements comparable to those applicable to U.S.
companies. The values of foreign investments are affected by changes in
currency rates or exchange control regulations, restrictions or prohibitions
on the repatriation of foreign currencies, application of foreign tax laws,
including withholding taxes, changes in governmental administration or
economic monetary policy (in the United States or abroad) or changed
circumstances in dealings between nations. Costs are also incurred in
connection with conversions between various currencies. In addition, foreign
brokerage commissions are generally higher than those charged in the United
States and foreign securities markets may be less liquid, more volatile and
less subject to governmental supervision than in the United States.
Investments in foreign countries could be affected by other factors not
present in the United States, including expropriation, confiscatory taxation,
lack of uniform accounting and auditing standards, limitations on the use or
removal of funds or other assets (including the withholding of dividends), and
potential difficulties in enforcing contractual obligations, and could be
subject to extended clearance and settlement periods.
<PAGE>
41
GE S&S PROGRAM DISCLOSURE STATEMENT - (Continued)
A Fund's unit value may change significantly when the currencies, other
than the U.S. dollar, in which the Fund's portfolio investments are
denominated strengthen or weaken against the U.S. dollar. Currency exchange
rates generally are determined by the forces of supply and demand in the
foreign exchange markets and the relative merits of investments in different
countries as seen from an international perspective. Currency exchange rates
can also be affected unpredictably by intervention by U.S. or foreign
governments or central banks or by currency controls or political developments
in the United States or abroad.
COVERED OPTION WRITING. The ST Fund and the LT Fund may purchase and
write put and call options on securities. Upon the exercise of a put option
written by the ST Fund or the LT Fund, the Fund may suffer a loss equal to the
difference between the price at which the Fund is required to purchase the
underlying security and its market value at the time of the option exercise,
less the premium received for writing the option. Upon the exercise of a call
option written by the ST Fund or the LT Fund, the Fund may suffer a loss equal
to the excess of the security's market value at the time of the option's
exercise over the Fund's acquisition cost of the security, less the premium
received from writing the option. In addition, no assurance can be given that
the ST Fund or the LT Fund will be able to effect closing purchase
transactions at a desired time. The ability of the ST Fund and the LT Fund to
engage in closing transactions with respect to options depends on the
existence of a liquid secondary market. Although the ST Fund and the LT Fund
will generally purchase or write securities options only if a liquid secondary
market appears to exist for the option purchased or sold, no such secondary
market may exist or the market may cease to exist.
The ST Fund and the LT Fund will engage in hedging transactions only
when deemed advisable by GEIC. Successful use by the ST Fund and the LT Fund
of options will depend on GEIC's ability to predict correctly movements in the
direction of the securities underlying the option used as a hedge. Losses
incurred in hedging transactions and the costs of these transactions will
affect the Fund's performance.
SECURITIES INDEX OPTIONS. The ST Fund and the LT Fund may each purchase
options on securities indexes. Securities index options are subject to
position and exercise limits and other regulations imposed by the exchange on
which they are traded. The ability of the ST Fund and the LT Fund to engage in
closing purchase transactions with respect to securities index options depends
on the existence of a liquid secondary market. Although the ST Fund and the LT
Fund will generally purchase or write securities index options only if a
liquid secondary market for the options purchased or sold appears to exist, no
such secondary market may exist, or the market may cease to exist at some
future date, for some options. No assurance can be given that a closing
purchase transaction can be effected when GEIC desires that the ST Fund or the
LT Fund engage in such a transaction.
FUTURES AND OPTIONS ON FUTURES. The ST Fund and the LT Fund may invest
in financial and bond index futures or related options. The uses of futures
contracts and options on futures contracts as a hedging device involves
several risks. No assurance can be given that a correlation will exist between
price movements in the underlying securities or index and price movements in
the securities that are the subject of the hedge. Positions in futures
contracts and options on futures contracts may be closed out only on the
exchange or board of trade on which they were entered, and no assurance can be
given that an active market will exist for a particular contract or option at
any particular time. Losses incurred in hedging transactions and the costs of
these transactions will affect the Fund's performance.
<PAGE>
42
GE S&S PROGRAM DISCLOSURE STATEMENT - (Continued)
FORWARD CURRENCY TRANSACTIONS. The ST Fund and the LT Fund may engage in
forward currency transactions. In entering into forward currency contracts,
the ST Fund and the LT Fund will be subject to a number of risks and special
considerations. The market for forward currency contracts, for example, may be
limited with respect to certain currencies. The existence of a limited market
may in turn restrict the Fund's ability to hedge against the risk of
devaluation of currencies in which the Fund holds a substantial quantity of
securities. The successful use of forward currency contracts as a hedging
technique draws upon GEIC's special skills and experience with respect to
those instruments and will usually depend upon GEIC's ability to forecast
interest rate and currency exchange rate movements correctly. Should interest
or exchange rates move in an unexpected manner, the ST Fund and the LT Fund
may not achieve the anticipated benefits of forward currency contracts or may
realize losses and thus be in a less advantageous position than if those
strategies had not been used. Many forward currency contracts are subject to
no daily price fluctuation limits so that adverse market movements could
continue with respect to those contracts to an unlimited extent over a period
of time. In addition, the correlation between movements in the prices of those
contracts and movements in the prices of the currencies hedged or used for
cover will not be perfect.
GEIC's ability to dispose of the ST Fund's or the LT Fund's positions in
forward currency contracts depends on the availability of active markets in
those instruments, and GEIC cannot now predict the amount of trading interest
that may exist in the future in forward currency contracts. Forward currency
contracts may be closed out only by the parties entering into an offsetting
contract. As a result, no assurance can be given that the ST Fund or the LT
Fund will be able to utilize these contracts effectively for the intended
purposes.
OPTIONS ON FOREIGN CURRENCIES. The ST Fund and the LT Fund may purchase
and write put and call options on foreign currencies. Like the writing of
other kinds of options, the writing of an option on a foreign currency
constitutes only a partial hedge, up to the amount of the premium received;
the ST Fund or the LT Fund could also be required, with respect to any option
it has written, to purchase or sell foreign currencies at disadvantageous
exchange rates, thereby incurring losses. The purchase of an option on a
foreign currency may constitute an effective hedge against fluctuation in
exchange rates, although in the event of rate movements adverse to the Fund's
position, the Fund could forfeit the entire amount of the premium plus related
transaction costs.
INSTRUMENTS AND STRATEGIES INVOLVING SPECIAL RISKS. Certain instruments
in which the Funds can invest and certain investment strategies that the Funds
may employ could expose the Funds to various risks and special considerations.
The instruments presenting risks to a Fund that holds the instruments include
Rule 144A Securities, depositary receipts, securities of supranational
agencies, securities of other investment funds, floating and variable rate
instruments, zero coupon obligations, mortgage related securities, ARMs, CMOs,
government stripped mortgage related securities and asset-backed and
receivable-backed securities. Among the risks that some, but not all, of these
instruments involve are lack of liquid secondary markets and the risk of
prepayment of principal. The investment strategies involving special risks to
some or all of the Funds include engaging in when-issued or delayed-delivery
securities transactions, entering into mortgage dollar rolls and lending
portfolio securities. Among the risks that some, but not all, of these
strategies involve are the increased exposure to fluctuations in market value
of the securities and certain credit risks.
<PAGE>
43
GE S&S PROGRAM DISCLOSURE STATEMENT - (Continued)
D. INVESTMENT ADVISOR
GEIC, located at 3003 Summer Street Stamford, Connecticut 06905, serves
as the investment advisor of each Fund. GEIC is a wholly owned subsidiary of
the Company and is a registered investment advisor under the Investment
Advisors Act of 1940, as amended.
INVESTMENT INSTRUCTIONS
Participants in the S&SP elect the investment media in which they wish
to invest and may change their investment options or their rate of savings in
accordance with the procedures set forth in the GE Benefits Handbook.
Participants may transfer savings from one investment option to another up to
12 times each calendar year. For more information regarding investment
instructions, see the GE Benefits Handbook.
FEES AND EXPENSES
The fees and expenses of each of the investment alternatives are set
forth in the Annual Report of the S&SP. There are no transaction fees charged
to the Funds or to a participant's account balance in connection with
purchases or sales of interests in investment alternatives.
ADDITIONAL INFORMATION
The Trustees of the S&SP are responsible for providing certain
additional information to you, either directly or upon your request. The
information provided directly to you is contained in the Annual Report of the
S&SP and includes (i) a description of the annual operating expenses of each
investment alternative with respect to which expenses are incurred and the
aggregate amount of such expenses expressed as a percentage of average net
assets, (ii) copies of available financial statements relating to the
investment alternatives, (iii) a list of the securities comprising the
portfolio of each Fund and the value of such securities, and, with respect to
each asset which is a fixed rate investment contract issued by a bank, savings
and loan association or insurance company, the name of the issuer, the term
and the rate of return on the contract, and (iv) the investment performance of
each Fund. The information available to you upon your request is information
concerning the value of units in each of the Funds or shares of the Company,
as well as the value of such units or shares held in a participant's account,
which may be obtained at anytime by calling 1-800-432-4313. The address and
telephone number of the Trustees of the S&SP are c/o General Electric
Investment Corporation, 3003 Summer Street, Stamford, CT 06905 (203-326-2300).
<PAGE>
44
GE S&S PROGRAM FUNDS
MEET THE MANAGERS
EUGENE K. BOLTON, EXECUTIVE VICE PRESIDENT, DOMESTIC EQUITIES
[PHOTO OF EUGENE K. BOLTON APPEARS HERE]
Gene Bolton is responsible for the overall management of the U.S. equity
operation at GE Investments with total assets of nearly $17 billion. His
responsibilities include overseeing the portfolio management team of the S&S
Program Mutual Fund listed below.
Gene joined GE in 1964. After completing GE's Financial Management
Program(FMP) he held a number of financial and strategic planning positions in
the U.S. and Europe. Joining GE Investments in 1984 as Chief Financial
Officer, he moved to equities as a Portfolio Manager in 1986 and was named to
his present position in 1991.
Gene is a Trustee of the GE Pension Trust and GE's Employee Savings Program,
as well as Chairman of the Asset Allocation Committee of GE Investments. He
also serves as a Trustee of the Investment Management Workshop, sponsored by
the Association for Investment Management and Research.
Gene is a graduate of Mundelein College with a B.A. in Business and
Management.
ROBERT A. MACDOUGALL, SENIOR VICE PRESIDENT, FIXED INCOME
[PHOTO OF ROBERT A. MACDOUGALL APPEARS HERE]
Bob MacDougall manages the taxable fixed income operation with total assets of
over $13 billion. His responsibilities include managing the S&S Long Term
Interest Fund.
Bob joined GE Investments in 1986 as a mutual fund portfolio manager and was
named to his present position in 1992. Previously he was with GE's Corporate
Treasury Operation managing the Company's $2 billion portfolio of marketable
securities. Bob has held various financial management positions since joining
GE in 1973.
The recipient of several Performance Achievement Awards from Lipper Analytical
Services, Bob is a member of the GE Investment's Asset Allocation Committee
and Institutional Investor's Fixed Income Forum.
Bob is a graduate of the University of Massachusetts with a Bachelor's and
Master's degree in Business Administration.
INVESTMENT TEAM
PORTFOLIO MANAGERS
S&S PROGRAM MUTUAL FUND
Eugene K. Bolton
David B. Carlson
Elaine G. Harris
Peter J. Hathaway
A. John Kohlhepp
Paul C. Reinhardt
S&S LONG TERM INTEREST FUND
Robert A. MacDougall
TRUSTEES
Dale F. Frey
Chairman of the Board and President, General Electric Investment Corporation
Eugene K. Bolton
Michael J. Cosgrove
Ralph R. Layman
Alan M. Lewis
John H. Myers
Donald W. Torey
Officers of General Electric Investment Corporation
SECRETARY
Alan M. Lewis
INVESTMENT ADVISOR
General Electric Investment Corporation
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
CUSTODIAN
State Street Bank & Trust Company
UNITHOLDER SERVICING AGENT
Address all inquiries outside the S&S Program to:
GE Investments
P.O. Box 8309
Boston, MA 02266-8309
Address all inquiries INSIDE the S&S Program to:
GE S&SP Transaction Processing Center
P.O. Box 44079
Jacksonville, FL 32231-4079
<PAGE>
45
GE S&S PROGRAM FUNDS SERVICES
TOLL-FREE SERVICES FOR OUR UNITHOLDERS
OUTSIDE THE SAVINGS AND SECURITY PROGRAM (S&SP)
Units held outside the S&SP were previously distributed to you in the form of
securities. Your account balance is evidenced by annual or semi-annual
statements of account issued by GE Investments in Stamford, CT.
GE Inquiry Center 1-800-242-0134
Daily Value, Yields/ 1-800-843-3359
Performance
1 2 3
Information Specific Account Transaction
Only Information Processing
1 1 1
Transfer Account Redemption
by Mail Balance
2 2 2
Redeem Last Duplicate
by Mail Transaction Tax Forms
3 3
Change Duplicate
Address Statement
4
Price Quotes
for Last Day
of Business
AUDIO RESPONSE SYSTEM:
To obtain information and process account transactions on your Funds held
outside the S&SP:
* Call 1-800-242-0134
* Press 1, on your touch-tone phone to gain access.
* Press 3, for information on your Funds held outside the S&SP.
* Then select from the options illustrated to the left.
PERSONALIZED SERVICES:
Please press zero (0) on your touch-tone phone, or if you have a rotary dial
phone please hold to speak directly to an Inquiry Specialist in order to
obtain the the following information on your Funds held outside the S&SP:
* Account Balance Information
* Statement Information
* 1099 Information
* Change of Address
* Change of Income Election
* Duplicate Statements
* Outstanding Check Information
INSIDE THE S&SP
Units held inside the S&SP have been credited to your account by the S&SP, as
the result of payroll deductions. If you are a current employee, the annual
"Your Personal Share" statement summarizes your account balance.
For S&SP participants to obtain information and process account transactions
on their Funds held inside the Program:
GE S&SP Transaction Daily Value, Yields/
Processing Center 1-800-432-4313 Performance 1-800-843-3359
