Attached files
| file | filename |
|---|---|
| 10-Q - GECS 10-Q 09-30-09 - GENERAL ELECTRIC CAPITAL SERVICES INC/CT | gecs10q093009.htm |
| EX-12 - GECS EX12 09-30-09 - GENERAL ELECTRIC CAPITAL SERVICES INC/CT | gecsex12093009.htm |
| EX-32 - GECS EX32 09-30-09 - GENERAL ELECTRIC CAPITAL SERVICES INC/CT | gecsex32093009.htm |
| EX-31.A - GECS EX31A 09-30-09 - GENERAL ELECTRIC CAPITAL SERVICES INC/CT | gecsex31a093009.htm |
| EX-31.B - GECS EX31B 09-30-09 - GENERAL ELECTRIC CAPITAL SERVICES INC/CT | gecsex31b093009.htm |
Exhibit
99
General
Electric Capital Services, Inc. and consolidated affiliates
Financial
Measures That Supplement Generally Accepted Accounting Principles
We
sometimes use information derived from consolidated financial information but
not presented in our financial statements prepared in accordance with U.S.
generally accepted accounting principles (GAAP). Certain of these data are
considered “non-GAAP financial measures” under the U.S. Securities and Exchange
Commission rules. Specifically, we have referred to delinquency rates on managed
equipment financing loans and leases and managed consumer financing receivables.
The reasons we use these non-GAAP financial measures and their reconciliation to
their most directly comparable GAAP financial measures follow.
Delinquency Rates on Certain
Financing Receivables
Equipment
Financing
|
At
|
|||||||||
|
September
30,
|
December
31,
|
September
30,
|
|||||||
|
2009(a)
|
2008
|
2008
|
|||||||
|
Managed
|
3.01
|
%
|
2.17
|
%
|
1.61
|
%
|
|||
|
Off-book
|
2.51
|
1.20
|
0.92
|
||||||
|
On-book
|
3.09
|
2.34
|
1.75
|
||||||
|
Consumer
|
|||||||||
|
At
|
|||||||||
|
September
30,
|
December
31,
|
September
30,
|
|||||||
|
2009(a)
|
2008
|
2008
|
|||||||
|
Managed
|
8.80
|
%
|
7.43
|
%
|
6.38
|
%
|
|||
|
U.S.
|
7.31
|
7.14
|
6.17
|
||||||
|
Non-U.S.
|
9.42
|
7.57
|
6.47
|
||||||
|
Off-book
|
6.85
|
8.24
|
7.21
|
||||||
|
U.S.
|
6.85
|
8.24
|
7.21
|
||||||
|
Non-U.S.
|
(b)
|
(b)
|
(b)
|
||||||
|
On-book
|
9.12
|
7.31
|
6.29
|
||||||
|
U.S.
|
7.74
|
6.39
|
5.58
|
||||||
|
Non-U.S.
|
9.42
|
7.57
|
6.47
|
||||||
|
(a)
|
Subject
to update.
|
|
(b)
|
Not
applicable.
|
Delinquency
rates on on-book and off-book equipment financing loans and leases increased
from December 31, 2008 and September 30, 2008, to September 30, 2009, as a
result of continuing weakness in the global economic and credit environment. In
addition, delinquency rates on on-book equipment financing loans and leases
increased six basis points from September 30, 2008 to September 30, 2009, as a
result of the inclusion of the CitiCapital acquisition.
(1)
The
increase in on-book delinquencies for consumer financing receivables in the U.S.
from September 30, 2008 and December 31, 2008, to September 30, 2009, primarily
reflects the continued rise in delinquencies across the U.S. credit card
receivables platforms. The increase in on-book delinquencies for consumer
financing receivables outside of the U.S. from September 30, 2008 and December
31, 2008, to September 30, 2009, reflects the effects of the declining U.K.
housing market. The decrease in off-book delinquencies for consumer financing
receivables in the U.S. from September 30, 2008 and December 31, 2008, to
September 30, 2009, reflected the replacement of delinquent accounts in a
securitization trust.
We
believe that delinquency rates on managed financing receivables provide a useful
perspective of our portfolio quality and are key indicators of financial
performance. We use this non-GAAP financial measure because it provides
information that enables management and investors to understand the underlying
operational performance and trends of certain financing receivables and
facilitates a comparison with the performance of our competitors. The same
underwriting standards and ongoing risk monitoring are used for both on-book and
off-book portfolios as the customer’s credit performance will affect both loans
retained on the Condensed Statement of Financial Position and securitized loans.
We believe that managed basis information is useful to management and investors,
enabling them to understand both the credit risks associated with the loans
reported on the Condensed Statement of Financial Position and our retained
interests in securitized loans.
(2)