UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM 10-Q
------------------------
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 30, 1996
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-14804
GENERAL ELECTRIC CAPITAL SERVICES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 06-1109503
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
260 LONG RIDGE ROAD, STAMFORD, CONNECTICUT 06927
(Address of principal executive offices) (Zip Code)
(203) 357-4000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes _x No
At April 26, 1996, 101 shares of common stock with a par value of $10,000
were outstanding.
REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND
(b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED
DISCLOSURE FORMAT.
<PAGE>
TABLE OF CONTENTS
PAGE
PART I - FINANCIAL INFORMATION.
Item 1. Financial Statements ...................................... 1
Item 2. Management's Discussion and Analysis of Results
of Operations ............................................ 5
Exhibit 12. Computation of Ratio of Earnings to Fixed Charges
and Computation of Ratio of Earnings to Combined Fixed Charges
and Preferred Stock Dividends .................................... 7
PART II - OTHER INFORMATION.
Item 1. Legal Proceedings ......................................... 8
Item 6. Exhibits and Reports on Form 8-K .......................... 8
Signatures ........................................................ 9
Index to Exhibits ................................................. 10
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
CONDENSED STATEMENT OF CURRENT AND RETAINED EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
----------------------
(In millions) MARCH 30, APRIL 1,
1996 1995
--------- --------
<S> <C> <C>
EARNED INCOME .......................................... $ 7,245 $ 5,754
-------- --------
EXPENSES
Interest ............................................... 1,735 1,543
Operating and administrative ........................... 2,185 1,736
Insurance losses and policyholder and annuity benefits . 1,602 1,091
Provision for losses on financing receivables .......... 213 79
Depreciation and amortization of buildings and equipment
and equipment on operating leases ..................... 493 452
Minority interest in net earnings of consolidated
affiliates ............................................ 44 27
-------- --------
6,272 4,928
-------- --------
EARNINGS
Earnings before income taxes ........................... 973 826
Provision for income taxes ............................. (323) (267)
-------- --------
NET EARNINGS ........................................... 650 559
Dividends .............................................. (225) (193)
Retained earnings at beginning of period ............... 9,518 8,194
-------- --------
RETAINED EARNINGS AT END OF PERIOD ..................... $ 9,943 $ 8,560
======== ========
</TABLE>
See Notes to Condensed, Consolidated Financial Statements.
1
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (Continued).
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
CONDENSED STATEMENT OF FINANCIAL POSITION
<TABLE>
<CAPTION>
(In millions) MARCH 30, DECEMBER 31,
1996 1995
--------- ------------
(unaudited)
ASSETS
<S> <C> <C>
Cash and equivalents ................................... $ 2,149 $ 1,949
Investment securities .................................. 40,750 41,063
Financing receivables
Time sales and loans, net of deferred income ........ 58,749 59,591
Investment in financing leases, net of
deferred income .................................... 35,949 36,200
-------- --------
94,698 95,791
Allowance for losses on financing receivables ....... (2,490) (2,519)
-------- --------
Financing receivables -- net ..................... 92,208 93,272
Other receivables -- net ............................... 12,830 12,897
Equipment on operating leases (at cost),
less accumulated amortization of $4,934 and $4,670 .... 14,354 13,793
Other assets ........................................... 24,459 22,755
-------- --------
TOTAL ASSETS ........................................ $186,750 $185,729
======== ========
LIABILITIES AND EQUITY
Short-term borrowings .................................. $ 62,879 $ 62,808
Long-term borrowings
Senior .............................................. 49,063 47,794
Subordinated ........................................ 996 996
Insurance liabilities, reserves and annuity benefits ... 40,285 39,699
Other liabilities ...................................... 11,510 12,264
Deferred income taxes .................................. 6,765 6,872
-------- --------
Total liabilities ................................... 171,498 170,433
-------- --------
Minority interest in equity of consolidated affiliates . 2,520 2,522
-------- --------
Capital stock .......................................... 11 11
Additional paid-in capital ............................. 2,314 2,314
Retained earnings ...................................... 9,943 9,518
Unrealized gains on investment securities .............. 528 989
Foreign currency translation adjustments ............... (64) (58)
-------- --------
Total equity ........................................ 12,732 12,774
-------- --------
TOTAL LIABILITIES AND EQUITY ........................... $186,750 $185,729
======== ========
</TABLE>
See Notes to Condensed, Consolidated Financial Statements.
2
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (Continued).
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
---------------------
(In millions) MARCH 30, APRIL 1,
1996 1995
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net earnings ........................................... $ 650 $ 559
Adjustments to reconcile net earnings to cash
provided from operating activities:
Provision for losses on financing receivables ....... 213 79
Depreciation and amortization of buildings and
equipment and equipment on operating leases ........ 493 452
Other -- net ........................................ 116 307
-------- --------
Cash provided from operating activities .......... 1,472 1,397
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in loans to customers ......................... (11,391) (11,718)
Principal collections from customers ................... 11,876 9,870
Investment in assets on financing leases ............... (2,914) (2,351)
Principal collections on financing leases .............. 2,908 1,551
Net decrease in credit card receivables ................ 172 459
Buildings and equipment and equipment on
operating leases:
- additions ....................................... (1,367) (1,310)
- dispositions .................................... 350 549
Payments for principal businesses purchased,
net of cash acquired .................................. (97) (1,627)
Purchases of investment securities by insurance
affiliates and annuity businesses ..................... (3,551) (3,038)
Dispositions and maturities of investment securities
by insurance affiliates and annuity businesses ........ 3,158 2,850
Other -- net ........................................... (1,327) (449)
-------- --------
Cash used for investing activities ............... (2,183) (5,214)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in borrowings (maturities 90 days or less) .. (1,414) (4,126)
Newly issued debt
- short-term (maturities 91-365 days) ............. 882 563
- long-term senior ................................ 7,657 11,965
Proceeds - non-recourse, leveraged lease debt .......... 236 --
Repayments and other reductions
- short-term (maturities 91-365 days) ............. (5,479) (3,712)
- long-term senior ................................ (314) --
Principal payments - non-recourse, leveraged lease debt (103) (99)
Proceeds from sales of investment and annuity contracts 149 387
Redemption of investment and annuity contracts ......... (478) (590)
Dividends paid ......................................... (225) (193)
-------- --------
Cash provided from financing activities .......... 911 4,195
-------- --------
INCREASE IN CASH AND EQUIVALENTS ....................... 200 378
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............ 1,949 1,218
-------- --------
CASH AND EQUIVALENTS AT END OF PERIOD .................. $ 2,149 $ 1,596
======== ========
</TABLE>
See Notes to Condensed, Consolidated Financial Statements.
3
<PAGE>
ITEM 1. FINANCIAL STATEMENTS (Continued).
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. The accompanying condensed quarterly financial statements represent the
consolidation of General Electric Capital Services, Inc. ("Corporation")
and all majority-owned and controlled affiliates ("consolidated
affiliates"). All significant transactions among the parent and
consolidated affiliates have been eliminated. Certain prior period data
have been reclassified to conform to the current period presentation.
2. The condensed consolidated quarterly financial statements are unaudited.
These statements include all adjustments (consisting of normal recurring
accruals) considered necessary by management to present a fair statement of
the results of operations, financial position and cash flows. The results
reported in these condensed consolidated financial statements should not be
regarded as necessarily indicative of results that may be expected for the
entire year.
3. Two newly issued accounting standards were adopted in the first quarter of
1996 and did not have a material effect on the financial position or
results of operations of the Corporation.
Statement of Financial Accounting Standards (SFAS) No. 121, Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed Of, requires that certain long-lived assets be reviewed for
impairment when events or circumstances indicate that the carrying amounts
of the assets may not be recoverable. If such review indicates that the
carrying amount of an asset exceeds the sum of its expected future cash
flows, the asset's carrying value is written down to fair value. Long-lived
assets to be disposed of are reported at the lower of carrying amount or
fair value less cost to sell.
SFAS No. 122, Accounting for Mortgage Servicing Rights, requires that
capitalized rights to service mortgage loans be assessed for impairment by
individual risk stratum by comparing each stratum's carrying amount with
its fair value. Strata are based on the predominant risk characteristics of
the underlying loans, which include loan type and note rate. Fair values
are estimated based on discounted anticipated future net cash flows
considering market consensus for loan prepayment predictions and other
economic factors. To the extent that the carrying value of mortgage
servicing rights exceeds fair value by individual stratum, the resulting
impairment is recognized in earnings through a valuation allowance.
4
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS.
OVERVIEW
Net earnings for the first quarter of 1996 were $650 million, a $91
million (16%) increase over the first quarter of 1995.
Earnings of the lending, leasing and equipment management businesses
are significantly influenced by the level of invested assets, the related
financing spreads (the excess of rates earned -- yields -- over rates on
borrowings) and the quality of those assets. The increase in net earnings for
these businesses principally resulted from a higher average level of invested
assets, partially offset by higher provisions for losses on financing
receivables. Financing spreads were essentially the same in both periods as the
decrease in interest rates paid on borrowings were offset by a decrease in
yields.
The Specialty Insurance segment, principally GE Global Insurance
Holding Corporation, also contributed to the increase in net earnings primarily
due to increased premium and investment income resulting from the 1995
acquisitions of the Frankona and Aachen Reinsurance Groups. These increases were
partially offset by increases in reserves for insurance losses and other
expenses, also primarily related to the acquisitions.
OPERATING RESULTS
EARNED INCOME from all sources increased $1,491 million (26%) to
$7,245 million for the first quarter of 1996, compared with $5,754 million in
the first quarter of 1995.
Earned income from the specialized financing, mid-market financing,
consumer services and equipment management businesses increased $721 million
(17%) over the comparable prior-year period principally reflecting a higher
average level of invested assets, resulting from both origination volume and
acquisitions of portfolios and businesses. A portion of the increase was also
attributable to higher consumer insurance premiums due to the acquisition of the
long-term care insurance business during 1995. Earned income from the specialty
insurance businesses increased $761 million (53%) to $2,198 million for the
first quarter of 1996 compared with the first quarter of 1995. The increase
primarily reflected increased premium and investment income resulting from the
Frankona and Aachen acquisitions, increased realized gains on sales of
investment securities and growth in premium and investment income in the other
insurance businesses.
INTEREST EXPENSE for the first quarter of 1996 was $1,735 million, 12%
higher than for the first quarter of 1995. The increase reflected the effects of
higher average borrowings used to finance asset growth partially offset by the
effects of lower interest rates. The composite interest rate on borrowings for
the first quarter of 1996 was 6.38% compared with 6.65% in the first quarter of
1995.
OPERATING AND ADMINISTRATIVE EXPENSES were $2,185 million for the first
quarter of 1996, a 26% increase over the first quarter of 1995. The increase
primarily reflected costs associated with businesses and portfolios acquired
over the past year and higher investment levels.
INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS increased 47% to
$1,602 million for the first quarter of 1996, compared with $1,091 million for
the first quarter of 1995. The increase primarily resulted from the Frankona and
Aachen acquisitions and from higher policyholder benefit costs due to the
acquisition of the long-term care insurance business during 1995.
PROVISION FOR LOSSES ON FINANCING RECEIVABLES increased to $213 million
for the first quarter of 1996 from $79 million for the first quarter of 1995.
These provisions principally related to private-label and bank credit cards in
the Consumer Segment which are discussed below under Portfolio Quality.
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
(Continued).
DEPRECIATION AND AMORTIZATION OF BUILDINGS AND EQUIPMENT AND EQUIPMENT
ON OPERATING LEASES increased $41 million (9%) to $493 million for the first
quarter of 1996 compared with $452 million for the first quarter of 1995. The
increase principally reflected higher levels of equipment on operating leases as
a result of portfolio growth and acquisitions.
PROVISION FOR INCOME TAXES was $323 million for the first quarter of
1996 (an effective tax rate of 33.2%), compared with $267 million for the first
quarter of 1995 (an effective tax rate of 32.3%). The higher provision for
income taxes reflected increased pre-tax earnings. The increase in the 1996
effective tax rate resulted primarily from proportionately lower tax exempt
income and an increase in non-U.S. taxes, partially offset by benefits received
upon termination of certain leveraged leases and increased tax credits.
PORTFOLIO QUALITY
THE PORTFOLIO OF FINANCING RECEIVABLES, before allowance for losses,
decreased to $94.7 billion at March 30, 1996 from $95.8 billion at the end of
1995. Financing receivables are the Corporation's largest asset and the primary
source of revenues. Related allowances for losses at March 30, 1996, aggregated
$2.5 billion (2.63% of receivables - the same level as at the end of 1995) and
are, in management's judgment, appropriate given the risk profile of the
portfolio. A discussion about the quality of certain elements of the portfolio
of financing receivables follows. Nonearning receivables are those that are 90
days or more delinquent and reduced earning receivables are receivables whose
terms have been restructured to a below-market yield.
CONSUMER RECEIVABLES, primarily credit card and personal loans and auto
loans and leases, were $41.4 billion at March 30, 1996, a decrease of $0.6
billion from the end of 1995. Nonearning and reduced earning receivables
increased to $712 million at March 30, 1996, from $671 million at December 31,
1995. Write-offs of consumer receivables increased to $190 million for the first
quarter of 1996, compared with $143 million for the first quarter of 1995,
primarily due to higher average receivable balances resulting from a combination
of origination volume and acquisitions of businesses and portfolios and higher
delinquencies consistent with overall industry experience.
COMMERCIAL REAL ESTATE LOANS classified as financing receivables were
$13.3 billion at March 30, 1996, compared with $13.4 billion at year-end 1995.
Nonearning and reduced earning receivables increased to $263 million at March
30, 1996, from $179 million at December 31, 1995. Write-offs of commercial real
estate loans were $10 million for the first quarter of 1996, compared with $57
million for the first quarter of 1995. At March 30, 1996, the commercial real
estate portfolio also included, in other assets, $2.2 billion of assets acquired
for resale from various financial institutions ($2.3 billion at year-end 1995)
and $1.7 billion of investments in real estate ventures (essentially unchanged
from the prior year end).
OTHER FINANCING RECEIVABLES, totaling $40.0 billion at March 30, 1996
($40.4 billion at December 31, 1995), consisted of a diverse commercial,
industrial and equipment loan and lease portfolio. Nonearning and
reduced-earning receivables increased to $297 million at March 30, 1996, from
$285 million at year-end 1995.
Loans and leases to commercial airlines amounted to $8.4 billion at
March 30, 1996, up slightly from $8.3 billion at the end of 1995.
OTHER MATTERS
As 1996 progresses, management continues to believe that vigilant
attention to risk management and controllership and a strong focus on complete
satisfaction of customer needs position it to deal effectively with the
increasing competition in an ever-changing global economy.
6
<PAGE>
EXHIBIT 12
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
THREE MONTHS ENDED MARCH 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
RATIO OF
EARNINGS TO
COMBINED
FIXED
CHARGES
RATIO OF AND
EARNINGS PREFERRED
(Dollar amounts in millions) TO FIXED STOCK
CHARGES DIVIDENDS
-------- --------
<S> <C> <C>
Net earnings ........................................... $ 650 $ 650
Provision for income taxes ............................. 323 323
Minority interest in net earnings of consolidated
affiliates ............................................ 44 44
-------- --------
Earnings before provision for income taxes and
minority interest ..................................... 1,017 1,017
-------- --------
Fixed charges:
Interest ............................................... 1,750 1,750
One-third of rentals ................................... 41 41
-------- --------
Total fixed charges .................................... 1,791 1,791
-------- --------
Less capitalized interest, net of amortization ......... 6 6
Earnings before provision for income taxes and
minority interest plus fixed charges .................. $ 2,802 $ 2,802
======== ========
Ratio of earnings to fixed charges ..................... 1.56
========
Preferred stock dividend requirements .................. $ --
Ratio of earnings before provision for
income taxes to net earnings .......................... 1.50
Preferred stock dividend on pre-tax basis .............. --
Fixed charges .......................................... 1,791
--------
Total fixed charges and preferred stock dividend
requirements .......................................... $ 1,791
========
Ratio of earnings to combined fixed charges and
preferred stock dividends ............................. 1.56
========
</TABLE>
For purposes of computing the ratios, fixed charges consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.
7
<PAGE>
PART II--OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The following is not material but is provided for informational
purposes. As previously reported, following the announcement by General Electric
Company ("GE Company") on April 17, 1994, of a $210 million charge to net
earnings based upon its discovery of false trading profits at its indirect
subsidiary, Kidder, Peabody & Co., Incorporated ("Kidder"), the United States
Securities and Exchange Commission ("SEC"), the United States Attorney for the
Southern District of New York, and the New York Stock Exchange initiated
investigations relating to the false trading profits. On January 9, 1996, the
SEC initiated administrative enforcement proceedings against the former head of
Kidder's government securities trading desk, Joseph Jett, alleging that he
engaged in securities fraud and other violations and against two of his former
supervisors for failure to supervise. Also, two civil suits purportedly brought
on behalf of GE Company as shareholder derivative actions were filed in New York
State Supreme Court in New York County. Both suits claim that GE Company's
directors breached their fiduciary duties to GE Company by failing to adequately
supervise and control the Kidder employee responsible for the irregular trading.
One suit, claiming damages of over $350 million, was filed on May 10, 1994, by
the Teachers' Retirement System of Louisiana against GE Company, its directors
(other than Messrs. Dammerman, Opie and Penske), Kidder, its parent, Kidder,
Peabody Group Inc., and certain of Kidder's former officers and directors. The
other suit was filed on June 3, 1994, by William Schrank and others against GE
Company's directors claiming unspecified damages and other relief. Both suits
were consolidated in an amended complaint filed on March 6, 1995. On May 19,
1995, GE Company and the director defendants moved to dismiss the amended
consolidated complaint for failure to make a pre-litigation demand, among other
reasons. On April 16, 1996, the court dismissed the amended consolidated
complaint for failure to make a pre-litigation demand. In addition, various
shareholders of GE Company have filed two purported class action suits claiming
that GE Company and Kidder, and certain of Kidder's former officers and
employees, allegedly violated federal securities laws by issuing statements
concerning GE Company's financial condition that included the false trading
profits at Kidder, and seeking compensatory damages for shareholders who
purchased GE Company's stock beginning as early as January 1993. The defendants
filed motions to dismiss these purported class action suits. On October 4, 1995,
the court dismissed the complaint against GE Company, but denied the motion to
dismiss the complaint against Kidder. On November 3, 1995, the plaintiffs in the
case against GE Company appealed the trial court's dismissal of their complaint
to the Second Circuit Court of Appeals.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. EXHIBITS.
Exhibit 12. Computation of ratio of earnings to fixed charges and
computation of ratio of earnings to combined fixed charges and
preferred stock dividends.
Exhibit 27. Financial Data Schedule (filed electronically only).
b. REPORTS ON FORM 8-K.
None.
8
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GENERAL ELECTRIC CAPITAL SERVICES, INC.
(Registrant)
Date: May 14, 1996 By: /s/ J.A. Parke
-------------------------------------
J.A. Parke, Senior Vice President, Finance
(Principal Financial Officer)
Date: May 14, 1996 By: /s/ J.C. Amble
-------------------------------------
J.C. Amble, Vice President and Controller
(Principal Accounting Officer)
9
<PAGE>
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
INDEX TO EXHIBITS
EXHIBIT NO. PAGE
12 Computation of ratio of earnings to fixed charges and
computation of ratio of earnings to combined fixed
charges and preferred stock dividends ................... 7
27 Financial Data Schedule (filed electronically only)
10
EXHIBIT 12
GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
THREE MONTHS ENDED MARCH 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
RATIO OF
EARNINGS TO
COMBINED
FIXED
CHARGES
RATIO OF AND
EARNINGS PREFERRED
(Dollar amounts in millions) TO FIXED STOCK
CHARGES DIVIDENDS
-------- --------
<S> <C> <C>
Net earnings ........................................... $ 650 $ 650
Provision for income taxes ............................. 323 323
Minority interest in net earnings of consolidated
affiliates ............................................ 44 44
-------- --------
Earnings before provision for income taxes and
minority interest ..................................... 1,017 1,017
-------- --------
Fixed charges:
Interest ............................................... 1,750 1,750
One-third of rentals ................................... 41 41
-------- --------
Total fixed charges .................................... 1,791 1,791
-------- --------
Less capitalized interest, net of amortization ......... 6 6
Earnings before provision for income taxes and
minority interest plus fixed charges .................. $ 2,802 $ 2,802
======== ========
Ratio of earnings to fixed charges ..................... 1.56
========
Preferred stock dividend requirements .................. $ --
Ratio of earnings before provision for
income taxes to net earnings .......................... 1.50
Preferred stock dividend on pre-tax basis .............. --
Fixed charges .......................................... 1,791
--------
Total fixed charges and preferred stock dividend
requirements .......................................... $ 1,791
========
Ratio of earnings to combined fixed charges and
preferred stock dividends ............................. 1.56
========
</TABLE>
For purposes of computing the ratios, fixed charges consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED MARCH 30, 1996, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS </LEGEND>
<CIK> 0000797463
<NAME> GENERAL ELECTRIC CAPITAL SERVICES, INC.
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-30-1996
<CASH> 2,149
<SECURITIES> 40,750
<RECEIVABLES> 94,698
<ALLOWANCES> 2,490
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 21,975
<DEPRECIATION> 5,958
<TOTAL-ASSETS> 186,750
<CURRENT-LIABILITIES> 0
<BONDS> 50,059
0
10
<COMMON> 1
<OTHER-SE> 12,721
<TOTAL-LIABILITY-AND-EQUITY> 186,750
<SALES> 0
<TOTAL-REVENUES> 7,245
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,185
<LOSS-PROVISION> 213
<INTEREST-EXPENSE> 1,735
<INCOME-PRETAX> 973
<INCOME-TAX> 323
<INCOME-CONTINUING> 650
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 650
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.00
</TABLE>
