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Note 16
All Other Assets
December 31 (In millions) 1995 1994
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GE
Investments
Associated companies (a) $ 1,201 $ 1,945
Government and government-
guarantied securities 100 273
Other 1,572 1,713
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2,873 3,931
Prepaid pension asset 5,272 4,489
Other 3,756 3,999
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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
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11,200 9,017
Deferred insurance
acquisition costs 1,336 1,290
Other 1,868 1,224
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14,404 11,531
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$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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