GE 2015 Annual Report Download - page 89

MD&A SEGMENT OPERATIONS | CAPITAL
GE 2015 FORM 10-K 61
CAPITAL
BUSINESS OVERVIEW
Leader: Keith Sherin Headquarters & Operations
x Vice Chairman, GE and Chairman &
CEO, GE Capital
x Over 30 years of service with
General Electric
x 9% of segment revenues in 2015
x Headquarters: Norwalk, CT
x Employees: approximately 24,000
Products & Services
&DSLWDO¶VFRQWLQXLQJILQDQFLDOVHUYLFHVEXVLQHVVHVDQGSURGXFWVDUHJHDUHGWRXWLOL]H*(¶VLQGXVWU\-specific expertise in
aviation, energy, infrastructure and healthcare to capitalize on market-specific opportunities and are further described below.
In addition, we continue to operate our run-off insurance activities as part of our continuing operations. Collectively, we refer
to these businesses as Verticals. Products and services include:
x Commercial Lending and Leasing (CLL) ± offers capital and services to industrials served by GE, including the healthcare
industry through its Healthcare Equipment Finance business. The CLL business also provides factoring solutions through its
Working Capital Solutions business to the GE industrial businesses by purchasing GE customer receivables. Beginning in 2016,
this business will be referred to as Industrial Finance.
x Energy Financial Services (EFS) ± invests in long-lived, capital intensive energy projects and companies by providing structured
equity, debt, leasing, partnership financing, project finance and broad-based commercial finance.
x GE Capital Aviation Services (GECAS) ± offers commercial aircraft financing and leasing for a wide range of aircraft types and
financing options.
$VDUHVXOWRIWKH*(&DSLWDO([LW3ODQ&DSLWDO¶V5HDO(VWDWHEXVLQHVV&RQVXPHUEXVLQHVVDQGPRVWRI its CLL business are classified
as discontinued operations and are no longer reported as part of the Capital segment. All comparative prior period information has been
reclassified to reflect Real Estate, Consumer and most of CLL as discontinued operations.
Competition & Regulation
The businesses in which we engage are subject to competition from various types of financial institutions, including commercial banks,
investment banks, leasing companies, independent finance companies, finance companies associated with manufacturers and
insurance and reinsurance companies.
GE Capital is a nonbank systemically important financial institution (nonbank SIFI) under the Dodd-Frank Wall Street Reform and
Consumer Protection Act (DFA). As a result, GE Capital is subject to FRB supervision as described in Regulations and Supervision. GE
has discussed the GE Capital Exit Plan with its regulators and staff of the Financial Stability Oversight Council (FSOC) and plans to file
its application with the FSOC in early 2016 WRWHUPLQDWHWKH)62&¶VGHVLJQDWLRQRI*(&DSLWDODVDQRQEDQN6,),:LWKWKHFRPSOHWLRQ
of the Synchrony Financial split-RIIDQGWKH)5%¶VVXEVHTXHQWDSSURYDORI*(&DSLWDO¶VDSSOLFDWLRQWRGHUHJLVWHUDVDVDYLQJDQGORDQ
holding company, GE Capital is no longer a savings and loan holding company. In addition, in connection with the December 2015
UHRUJDQL]DWLRQGHVFULEHGLQ7KH*(&DSLWDO([LW3ODQVHFWLRQRIWKH0'$*(&DSLWDO¶VLQWHUQDWLRQDORSHUDWLRQVZHUHFRQVROLGated
under a new international holding company, GE Capital International Holdings Limited. GE Capital International Holdings Limited is a
wholly-owned subsidiary of GE Capital with its own capital structure and is supervised by the U.K. Prudential Regulation Authority
35$7KH35$¶VVXSHUYision includes capital and liquidity standards that could impact the payment of dividends to GE Capital, and
*(&DSLWDO,QWHUQDWLRQDO+ROGLQJV/LPLWHGZLOOUHPDLQVXEMHFWWRVXFKVXSHUYLVLRQHYHQLI*(&DSLWDO¶VGHVLJQDWLRQDVDQRQEDnk SIFI is
terminated.
GE 2015 FORM 10-K 61