GE 2010 Annual Report Download - page 82

80 GE 2010 ANNUAL REPORT
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non-recurring basis. This guidance establishes a new framework
for measuring fair value and expands related disclosures. See
Note 21.
Effective January 1, 2008, we adopted ASC 825, Financial
Instruments. Upon adoption, we elected to report $172 million of
commercial mortgage loans at fair value in order to recognize
them on the same accounting basis (measured at fair value
through earnings) as the derivatives economically hedging
these loans.
Note 2.
Assets and Liabilities of Businesses Held for Sale and
Discontinued Operations
Assets and Liabilities of Businesses Held for Sale
NBC UNIVERSAL
In December 2009, we entered into an agreement with Comcast
Corporation (Comcast) to transfer the assets of the NBCU busi-
ness to a newly formed entity, comprising our NBCU business and
Comcast’s cable networks, regional sports networks, certain
digital properties and certain unconsolidated investments, in
exchange for cash and a 49% interest in the newly formed entity.
On March 19, 2010, NBCU entered into a three-year credit
agreement and a 364-day bridge loan agreement. On April 30,
2010, NBCU issued $4,000 million of senior, unsecured notes with
maturities ranging from 2015 to 2040 (interest rates ranging from
3.65% to 6.40%). On October 4, 2010, NBCU issued $5,100 million
of senior, unsecured notes with maturities ranging from 2014 to
2041 (interest rates ranging from 2.10% to 5.95%). Subsequent to
these issuances, the credit agreement and bridge loan agree-
ments were terminated, with a $750 million revolving credit
agreement remaining in effect. Proceeds from these issuances
were used to repay $1,678 million of existing debt and pay a
dividend to GE.
On September 26, 2010, we acquired approximately 38% of
Vivendi S.A.’s (Vivendi) 20% interest in NBCU (7.7% of NBCU’s
outstanding shares) for $2,000 million.
Prior to and in connection with the transaction with Comcast,
we acquired the remaining Vivendi interest in NBCU (12.3% of
NBCU’s outstanding shares) for $3,578 million and made an
additional payment of $222 million related to the previously
purchased shares.
On January 28, 2011, we transferred the assets of the NBCU
business and Comcast transferred certain of its assets to a newly
formed entity, NBC Universal LLC (NBCU LLC). In connection with the
transaction, we received $6,197 million in cash from Comcast and a
49% interest in NBCU LLC. Comcast holds the remaining 51% inter-
est in NBCU LLC. We will account for our investment in NBCU LLC
under the equity method. As a result of the transaction, we expect
to recognize a small after-tax gain in the first quarter of 2011.
requires pre-acquisition contingencies to be recognized at fair
value, if fair value can be determined or reasonably estimated
during the measurement period. If fair value cannot be
deter mined or reasonably estimated, the standard requires mea-
surement based on the recognition and measurement criteria of
ASC 450, Contingencies.
On January 1, 2009, we adopted an amendment to ASC 810,
that requires us to make certain changes to the presentation of
our financial statements. This amendment requires us to classify
earnings attributable to noncontrolling interests (previously
referred to as “minority interest”) as part of consolidated net
earnings ($535 million and $200 million for 2010 and 2009, respec-
tively) and to include the accumulated amount of noncontrolling
interests as part of shareowners’ equity ($5,262 million and
$7,845 million at December 31, 2010 and 2009, respectively). The
net earnings amounts we have previously reported are now
presented as “Net earnings attributable to the Company” and, as
required, earnings per share continues to reflect amounts attrib-
utable only to the Company. Similarly, in our presentation of
shareowners’ equity, we distinguish between equity amounts
attributable to GE shareowners and amounts attributable to the
noncontrolling interests—previously classified as minority inter-
est outside of shareowners’ equity. Beginning January 1, 2009,
dividends to noncontrolling interests ($317 million and $548 mil-
lion in 2010 and 2009, respectively) are classified as financing
cash flows. In addition to these financial reporting changes, this
guidance provides for significant changes in accounting related to
noncontrolling interests; specifically, increases and decreases in
our controlling financial interests in consolidated subsidiaries will
be reported in equity similar to treasury stock transactions. If a
change in ownership of a consolidated subsidiary results in loss of
control and deconsolidation, any retained ownership interests are
remeasured with the gain or loss reported in net earnings.
Effective January 1, 2009, we adopted ASC 808, Collaborative
Arrangements, that requires gross basis presentation of revenues
and expenses for principal participants in collaborative arrange-
ments. Our Technology Infrastructure and Energy Infrastructure
segments enter into collaborative arrangements with manufac-
turers and suppliers of components used to build and maintain
certain engines, aeroderivatives, and turbines, under which GE
and these participants share in risks and rewards of these prod-
uct programs. Adoption of the standard had no effect as our
historical presentation had been consistent with the new
requirements.
We adopted amendments to ASC 320, Investments—Debt
and Equity Securities, and recorded a cumulative effect adjust-
ment to increase retained earnings as of April 1, 2009, of
$62 million. See Note 3.
We adopted ASC 820, Fair Value Measurements and Disclosures,
in two steps; effective January 1, 2008, we adopted it for all finan-
cial instruments and non-financial instruments accounted for at
fair value on a recurring basis and effective January 1, 2009, for
all non-financial instruments accounted for at fair value on a