GE 2010 Annual Report Download - page 83

GE 2010 ANNUAL REPORT 81
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OTHER
In 2010, we committed to sell GE Capital Consumer businesses in
Argentina, Brazil, and Canada, a CLL business in South Korea, and
our Interpark business in Real Estate. Assets and liabilities of
these businesses of $3,127 million and $592 million, respectively,
were classified as held for sale at December 31, 2010.
On November 12, 2009, we committed to sell our Security
business (within Corporate Items and Eliminations). On
February 28, 2010, we completed the sale of our Security busi-
ness for $1,787 million. Assets and liabilities of $1,780 million
and $282 million, respectively, were classified as held for sale at
December 31, 2009.
On January 7, 2009, we exchanged our Consumer businesses
in Austria and Finland, the credit card and auto businesses in the
U.K., and the credit card business in Ireland for a 100% ownership
interest in Interbanca S.p.A., an Italian corporate bank. We recog-
nized a $184 million loss, net of tax, related to the classification of
the assets held for sale at the lower of carrying amount or esti-
mated fair value less costs to sell.
On December 24, 2008, we committed to sell a portion of our
Australian residential mortgage business, including certain
underlying mortgage receivables, and completed this sale during
the first quarter of 2009. We recognized a $38 million loss, net of
tax, related to the classifications of the assets held for sale at the
lower of carrying amount or estimated fair value less costs to sell.
Summarized financial information for businesses held for sale
is shown below.
December 31 (In millions) 2010 2009
ASSETS
Cash and equivalents $ 63 $ —
Current receivables 2,572 2,188
Financing receivables—net 1,917 —
Property, plant and equipment—net 2,185 1,978
Goodwill 19,606 20,086
Other intangible assets—net 2,844 2,866
All other assets 7,560 6,621
Other 140 372
Assets of businesses held for sale $36,887 $34,111
LIABILITIES
Accounts payable $ 538 $ 451
Other GE current liabilities 3,994 4,139
Long-term borrowings 10,134 2
All other liabilities 1,378 1,447
Other 3 53
Liabilities of businesses held for sale $16,047 $ 6,092
Discontinued Operations
Discontinued operations primarily comprised BAC Credomatic
GECF Inc. (BAC) (our Central American bank and card business),
GE Money Japan (our Japanese personal loan business, Lake,
and our Japanese mortgage and card businesses, excluding our
investment in GE Nissen Credit Co., Ltd.), our U.S. mortgage busi-
ness (WMC), our U.S. recreational vehicle and marine equipment
financing business (Consumer RV Marine), Consumer Mexico
and Plastics. Associated results of operations, financial position
and cash flows are separately reported as discontinued opera-
tions for all periods presented.
With respect to our 49% interest in NBCU LLC, we hold
redemption rights, which, if exercised, cause NBCU LLC or
Comcast to purchase half of our ownership interest after three
and a half years and the remaining half after seven years (either
directly or through the transfer of common stock of the corporate
owner of NBCU LLC) subject to certain exceptions, conditions and
limitations. Our interest in NBCU LLC is also subject to call provi-
sions, which, if exercised, allow Comcast to purchase our interest
(either directly or through the transfer of common stock of the
corporate owner of NBCU LLC) at specified times subject to cer-
tain exceptions. The redemption prices for such transactions are
determined pursuant to a contractually specified formula.
In connection with the transaction, we also entered into a
number of agreements with Comcast governing the operation of
the venture and transitional services, employee, tax and other
matters. Under the operating agreement, excess cash generated
by the operations of NBCU LLC will be used to reduce borrowings
rather than to pay distributions to us, except for distributions
under a formula to enable us to pay taxes on NBCU LLC’s profits.
In addition, Comcast is obligated to make payments to us for a
share of tax savings associated with Comcast’s purchase of its
NBCU LLC member interest.
As part of the transfer, we provided guarantees and indemnifi-
cations related to certain pre-existing contractual arrangements
entered into by NBCU. We have provided guarantees, on behalf
of NBCU LLC, for the acquisition of sports programming in the
amount of $3,258 million, triggered only in the event NBCU LLC
fails to meet its payment commitments. We also have agreed to
indemnify Comcast against any loss (after giving consideration
to underlying collateral) related to a pre-existing credit support
agreement covering $815 million of debt plus accrued interest
owed by a joint venture of NBCU LLC.
At December 31, 2010, we classified the NBCU assets and
liabilities of $33,758 million and $15,455 million, respectively, as
held for sale. The major classes of assets at December 31, 2010
were current receivables ($2,572 million), property, plant and
equipment—net ($2,082 million), goodwill and other intangible
assets—net ($22,263 million) and all other assets ($6,841 million),
including film and television production costs of $4,423 million.
The major classes of liabilities at December 31, 2010 were
accounts payable ($492 million), other GE current liabilities
($3,983 million), long-term debt ($9,906 million) and all other
liabilities ($1,073 million).
At December 31, 2009, we classified the NBCU assets and
liabilities of $32,150 million and $5,751 million, respectively, as
held for sale. The major classes of assets at December 31, 2009
were current receivables ($2,136 million), property, plant and
equipment—net ($1,805 million), goodwill and other intangible
assets—net ($21, 574 million) and all other assets ($6,514 million),
including film and television production costs of $4,507 million.
The major classes of liabilities at December 31, 2009 were
accounts payable ($398 million), other GE current liabilities
($4,051 million) and all other liabilities ($1,300 million).