GE Annual Report

Note 16
All Other Assets

December 31 (In millions)                  1995          1994
_____________________________________________________________

GE
Investments
Associated companies (a) $ 1,201 $ 1,945
Government and government-
guarantied securities 100 273
Other 1,572 1,713
_____________________________________________________________

2,873 3,931

Prepaid pension asset 5,272 4,489
Other 3,756 3,999
_____________________________________________________________

11,901 12,419

GECS
Investments
Assets acquired for resale 3,998 3,867
Associated companies (a) 3,566 2,098
Real estate ventures 1,564 1,400
Other 2,072 1,652
_____________________________________________________________

11,200 9,017

Deferred insurance
acquisition costs 1,336 1,290
Other 1,868 1,224
_____________________________________________________________

14,404 11,531
_____________________________________________________________

$26,305 $23,950
(a) Includes advances.

In line with industry practice, sales of commercial jet aircraft engines often involve long-term customer financing commitments. In making such commitments, it is GE's general practice to require that it have or be able to establish a secured position in the aircraft being financed. Under such airline financing programs, GE had issued loans and guaranties (principally guaranties) amounting to $1,433 million at year-end 1995 and $1,260 million at year-end 1994; and it had entered into commitments totaling $1,505 million and $1,136 million at year-end 1995 and 1994, respectively, to provide financial assistance on future aircraft engine sales. Estimated fair values of the aircraft securing these receivables and associated guaranties exceeded the related account balances and guarantied amounts at December 31, 1995. GE sells certain long-term receivables from the airline industry with recourse. Proceeds from such sales amounted to $297 million in 1995 and $137 million in 1993. No receivables were sold in 1994. Balances outstanding were $487 million and $269 million at December 31, 1995 and 1994, respectively. GECS acts as a lender and lessor to the commercial airline industry. At December 31, 1995 and 1994, the balance of such GECS loans, leases and equipment leased to others was $8,337 million and $7,571 million, respectively. In addition, GECS had issued financial guaranties and funding commitments of $409 million at December 31, 1995 ($506 million at year-end 1994) and had conditional commitments to purchase aircraft at a cost of $141 million ($81 million at year-end 1994).

At year-end 1995, the National Broadcasting Company had $7,953 million of commitments to acquire broadcast material or the rights to broadcast television programs, including U.S. television rights to future Olympic games, and commitments under long-term television station affiliation agreements that require payments through the year 2008.

In connection with numerous projects, primarily power generation bids and contracts, GE had issued various bid and performance bonds and guaranties totaling $2,462 million at year-end 1995 and $2,229 million at year-end 1994.

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