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Form 8-K GENERAL ELECTRIC CAPITAL For: Nov 17

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November 23, 2015 4:43 PM EST

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) November 17, 2015
 
 
General Electric Capital Corporation
  
 
(Exact name of registrant as specified in its charter)
  
 
Delaware
  
01-06461
  
13-1500700
(State or other jurisdiction
 of incorporation)
  
(Commission
 File Number)
  
(IRS Employer
 Identification No.)
   
 
    
901 Main Avenue, Norwalk, Connecticut
      
06851-1168
(Address of principal executive offices)
      
(Zip Code)
   
 
    
Registrant's telephone number, including area code   (203) 840-6300
 
 
Not applicable
  
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 


Item 2.01 Completion of Acquisition or Disposition of Assets.

On November 17, 2015, our parent, General Electric Company ("GE") completed the previously announced split-off of Synchrony Financial ("Synchrony") through which GE accepted 671,366,809 shares of GE common stock from its shareholders in exchange for 705,270,833 shares of Synchrony common stock representing all the Synchrony shares that it owned (the "Exchange").

Also, on November 17, 2015, in a preliminary transaction, General Electric Capital Corporation (the "Company" or "GECC") distributed to GE all the stock of a corporation that held the 705,270,833 shares of Synchrony common stock and certain energy assets.

Synchrony's results for the periods prior to the Exchange will be reported as discontinued operations beginning in the fourth quarter of 2015.

The unaudited pro forma financial information giving effect to the Exchange is filed herewith as Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(b) Pro Forma Financial Information.

The following unaudited pro forma financial information of the Company is filed as Exhibit 99.1 to this Report on Form 8-K and is incorporated herein by reference:
Unaudited Pro Forma Condensed Consolidated Statement of Financial Position at September 30, 2015.
Unaudited Pro Forma Condensed Consolidated Statements of Earnings for the nine months ended September 30, 2015 and 2014 and each of the years ended December 31, 2014, 2013 and 2012.
Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements.

(d) Exhibits.  See Exhibits Index.




































2
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

   
General Electric Capital Corporation
  
   
(Registrant)
  
   
 
 
 
  
Date: November 23, 2015
  
/s/ Walter Ielusic
  
   
Walter Ielusic
Senior Vice President and Controller
  























3
EXHIBIT INDEX



Exhibit Number
Description
99.1
General Electric Capital Corporation Unaudited Pro Forma Condensed Consolidated Financial Statements.

 
EXHIBIT 99.1
GENERAL ELECTRIC CAPITAL CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On November 17, 2015, General Electric Capital Corporation's ("GECC") parent, General Electric Company ("GE") completed the previously announced split-off of Synchrony Financial ("Synchrony") through which GE accepted 671,366,809 shares of GE common stock from its shareholders in exchange for 705,270,833 shares of Synchrony stock representing all of the Synchrony shares that it owned (the "Exchange"). As a result, Synchrony's historical results will be reported in GECC's consolidated financial statements as discontinued operations and in subsequent periods GECC's consolidated financial statements will no longer reflect the assets, liabilities, results of operations or cash flows attributable to Synchrony.
Also, on November 17, 2015, in a preliminary transaction, GECC distributed all the stock of a corporation that held the 705,270,833 shares of Synchrony common stock and certain energy assets to GE.
The following unaudited pro forma condensed consolidated statement of financial position of GECC as of September 30, 2015 is presented as if the Exchange and related events, as described in the notes to these unaudited pro forma condensed consolidated financial statements, had occurred at September 30, 2015. The unaudited pro forma condensed consolidated statements of earnings for the nine months ended September 30, 2015 and 2014, and each of the years ended December 31, 2014, 2013 and 2012, are presented as if such events had occurred on January 1, 2012. The unaudited pro forma condensed consolidated financial statements are based on the historical financial statements of GE, GECC and Synchrony for each period presented and in the opinion of GECC management, all adjustments and disclosures necessary for a fair presentation of the pro forma data have been made.
These unaudited pro forma condensed consolidated financial statements are presented for illustrative purposes only and are not necessarily indicative of the results of operations or financial condition that would have been achieved had the Exchange and related events been completed as of the dates indicated or of the results that may be obtained in the future. These unaudited pro forma condensed consolidated financial statements and the notes thereto should be read together with the following:
GE's audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2014, and Management's Discussion and Analysis included in GE's Annual Report on Form 10-K for the year ended December 31, 2014 as updated by GE's Current Report on Form 8-K filed August 7, 2015.
GECC's audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2014, and Management's Discussion and Analysis included in GECC's Annual Report on Form 10-K for the year ended December 31, 2014 as updated by GECC's Current Report on Form 8-K filed May 11, 2015.
GECC's unaudited consolidated financial statements and the notes thereto as of and for the nine months ended September 30, 2015, and Management's Discussion and Analysis included in GECC's Quarterly Report on Form 10-Q for the quarter ended September 30, 2015.
Synchrony's audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2014, and Management's Discussion and Analysis included in Synchrony's Annual Report on Form 10-K for the year ended December 31, 2014.
Synchrony's unaudited consolidated financial statements and the notes thereto as of and for the nine months ended September 30, 2015, and Management's Discussion and Analysis included in Synchrony's Quarterly Report on Form 10-Q for the quarter ended September 30, 2015.
Synchrony's Registration Statement on Form S-4 filed October 19, 2015.
Synchrony's Amendment No. 1 to Registration Statement on Form S-4 filed November 3, 2015.





1
                             
General Electric Capital Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Financial Position
At September 30, 2015
                             
                             
   
General
                        
   
Electric
                        
   
Capital
    
Deconsolidation
            
   
Corporation
    
Synchrony
          
Effects of the
      
(In millions, except share amounts)
  
Historical(a)
    
and Other Assets
    
Adjustments
    
Exchange
    
Pro Forma
Assets
                            
Cash and equivalents
$
82,276
  
$
(12,331)
  
$
-
  
$
-
  
$
69,945
Investment securities
  
36,868
    
(3,596)
    
-
    
-
    
33,272
Inventories
  
59
    
-
    
-
    
-
    
59
Financing receivables – net
  
83,748
    
(60,227)
    
-
    
-
    
23,521
Other receivables
  
14,039
    
(165)
    
-
    
-
    
13,874
Property, plant and equipment – net
  
34,516
    
(302)
    
-
    
-
    
34,214
Investment in Synchrony
  
-
    
-
    
16,589
    
(16,589)
    
-
Goodwill
  
11,460
    
(951)
    
(7,659)
    
-
    
2,850
Other intangible assets – net
  
1,177
    
(646)
    
-
    
-
    
531
Other assets
  
19,155
    
(785)
    
-
    
-
    
18,370
Financing receivables held for sale
  
23,665
    
-
    
-
    
-
    
23,665
Assets of businesses held for sale
  
4,917
    
-
    
-
    
-
    
4,917
Assets of discontinued operations
  
121,940
    
-
    
-
    
-
    
121,940
Total assets
$
433,819
  
$
(79,003)
  
$
8,930
  
$
(16,589)
  
$
347,157
                             
Liabilities and equity
                            
Short-term borrowings
$
42,880
  
$
-
  
$
-
  
$
-
  
$
42,880
Accounts payable
  
2,213
    
(256)
    
-
    
-
    
1,957
Non-recourse borrowings of consolidated securitization entities
  
16,225
    
(13,640)
    
-
    
-
    
2,585
Bank deposits
  
48,656
    
(40,548)
    
-
    
-
    
8,108
Long-term borrowings
  
164,183
    
(10,240)
    
-
    
-
    
153,943
Investment contracts, insurance liabilities
                            
   and insurance annuity benefits
  
26,646
    
-
    
-
    
-
    
26,646
Other liabilities
  
11,330
    
(2,471)
    
-
    
102
    
8,961
Deferred income taxes
  
6,458
    
630
    
(441)
    
-
    
6,647
Liabilities of businesses held for sale
  
260
    
-
    
-
    
-
    
260
Liabilities of discontinued operations
  
43,642
    
-
    
-
    
-
    
43,642
Total liabilities
  
362,493
    
(66,525)
    
(441)
    
102
    
295,629
                             
Preferred stock, $0.01 par value (750,000 shares authorized
                            
   and 50,000 shares issued and outstanding at September 30, 2015)
  
-
    
-
    
-
    
-
    
-
Common stock, $14 par value (4,166,000 shares authorized
                            
   and 1,000 shares issued and outstanding at September 30, 2015)
  
-
    
-
    
-
    
-
    
-
Accumulated other comprehensive income (loss) – net
                            
   Investment securities
  
580
    
1
    
(1)
    
1
    
581
   Currency translation adjustments
  
(1,412)
    
19
    
(19)
    
22
    
(1,390)
   Cash flow hedges
  
(192)
    
-
    
-
    
-
    
(192)
   Benefit plans
  
(569)
    
1
    
(1)
    
1
    
(568)
Additional paid-in capital
  
33,019
    
(9,296)
    
9,104
    
(20,383)
    
12,443
Retained earnings
  
36,740
    
(3,203)
    
3,078
    
3,668
    
40,284
Total GECC shareowners' equity
  
68,166
    
(12,478)
    
12,161
    
(16,691)
    
51,158
Noncontrolling interests
  
3,160
    
-
    
(2,790)
    
-
    
370
Total equity
  
71,326
    
(12,478)
    
9,371
    
(16,691)
    
51,528
Total liabilities and equity
$
433,819
  
$
(79,003)
  
$
8,930
  
$
(16,589)
  
$
347,157
                             

(a)
As reported in General Electric Capital Corporation Quarterly Report on Form 10-Q for the quarter ended September 30, 2015.
Amounts may not add due to rounding.
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.









2
General Electric Capital Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Earnings
For the nine months ended September 30, 2015
                             
                             
   
General
                        
   
Electric
                        
   
Capital
    
Deconsolidation
            
   
Corporation
    
Synchrony
          
Effects of the
      
(In millions)
  
Historical(a)
    
and Other Assets
    
Adjustments
    
Exchange
    
Pro Forma
                             
Revenues
                            
Revenues from services
$
17,388
  
$
(8,061)
  
$
-
  
$
-
  
$
9,327
Sales of goods
  
64
    
-
    
-
    
-
    
64
   Total revenues
  
17,452
    
(8,061)
    
-
    
-
    
9,391
                             
Costs and expenses
                            
Interest
  
3,096
    
(839)
    
-
    
-
    
2,257
Operating and administrative
  
6,714
    
(2,384)
    
-
    
-
    
4,330
Cost of goods sold
  
58
    
-
    
-
    
-
    
58
Investment contracts, insurance losses and
                            
   insurance annuity benefits
  
2,070
    
-
    
-
    
-
    
2,070
Provision for losses on financing receivables
  
4,636
    
(2,129)
    
-
    
-
    
2,507
Depreciation and amortization
  
1,841
    
(35)
    
-
    
-
    
1,806
   Total costs and expenses
  
18,415
    
(5,387)
    
-
    
-
    
13,028
                             
Earnings (loss) from continuing operations
                            
   before income taxes
  
(963)
    
(2,674)
    
-
    
-
    
(3,637)
Benefit (provision) for income taxes
  
(6,164)
    
995
    
-
    
-
    
(5,169)
                             
Earnings (loss) from continuing operations
  
(7,127)
    
(1,679)
    
-
    
-
    
(8,806)
Less net earnings (loss) attributable to noncontrolling interests
  
267
    
(257)
    
-
    
-
    
10
Net earnings (loss) from continuing operations
                            
   attributable to GECC
$
(7,394)
  
$
(1,422)
  
$
-
  
$
-
  
$
(8,816)
                             
                             

(a)
As reported in General Electric Capital Corporation Quarterly Report on Form 10-Q for the quarter ended September 30, 2015.

Amounts may not add due to rounding.
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.











3
General Electric Capital Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Earnings
For the nine months ended September 30, 2014
                             
   
General
                        
   
Electric
                        
   
Capital
    
Deconsolidation
            
   
Corporation
    
Synchrony
          
Effects of the
      
(In millions)
  
Historical(a)
    
and Other Assets
    
Adjustments
    
Exchange
    
Pro Forma
                             
Revenues
                            
Revenues from services
$
19,134
  
$
(7,447)
  
$
100
  
$
-
  
$
11,787
Sales of goods
  
89
    
-
    
-
    
-
    
89
   Total revenues
  
19,223
    
(7,447)
    
100
    
-
    
11,876
                             
Costs and expenses
                            
Interest
  
3,184
    
(632)
    
100
    
-
    
2,652
Operating and administrative
  
6,076
    
(2,029)
    
-
    
-
    
4,047
Cost of goods sold
  
81
    
-
    
-
    
-
    
81
Investment contracts, insurance losses and
                          
-
   insurance annuity benefits
  
2,041
    
-
    
-
    
-
    
2,041
Provision for losses on financing receivables
  
2,693
    
(2,120)
    
-
    
-
    
573
Depreciation and amortization
  
1,929
    
(18)
    
-
    
-
    
1,911
   Total costs and expenses
  
16,004
    
(4,799)
    
100
    
-
    
11,305
                             
Earnings (loss) from continuing operations
                            
   before income taxes
  
3,219
    
(2,648)
    
-
    
-
    
571
Benefit (provision) for income taxes
  
109
    
993
    
-
    
-
    
1,102
                             
Earnings (loss) from continuing operations
  
3,328
    
(1,655)
    
-
    
-
    
1,673
Less net earnings (loss) attributable to noncontrolling interests
  
76
    
(50)
    
-
    
-
    
26
Net earnings (loss) from continuing operations
                            
   attributable to GECC
$
3,252
  
$
(1,605)
  
$
-
  
$
-
  
$
1,647
                             

(a)
As reported in General Electric Capital Corporation Quarterly Report on Form 10-Q for the quarter ended September 30, 2015.

Amounts may not add due to rounding.
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.












4
General Electric Capital Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Earnings
For the year ended December 31, 2014
                             
   
General
                        
   
Electric
                        
   
Capital
    
Deconsolidation
            
   
Corporation
    
Synchrony
          
Effects of the
      
(In millions)
  
Historical(a)
    
and Other Assets
    
Adjustments
    
Exchange
    
Pro Forma
                             
Revenues
                            
Sales of goods
$
121
  
$
-
  
$
-
  
$
-
  
$
121
Revenues from services
  
26,223
    
(10,178)
    
108
    
-
    
16,153
   Total revenues
  
26,344
    
(10,178)
    
108
    
-
    
16,274
                             
Costs and expenses
                            
Cost of goods sold
  
104
    
-
    
-
    
-
    
104
Interest and other financial charges
  
4,249
    
(912)
    
108
    
-
    
3,445
Investment contracts, insurance losses and
                            
   insurance annuity benefits
  
2,678
    
-
    
-
    
-
    
2,678
Provision for losses on financing receivables
  
3,623
    
(2,917)
    
-
    
-
    
706
Other costs and expenses
  
11,124
    
(2,852)
    
-
    
-
    
8,272
   Total costs and expenses
  
21,778
    
(6,681)
    
108
    
-
    
15,205
                             
Earnings (loss) from continuing operations
                            
   before income taxes
  
4,566
    
(3,497)
    
-
    
-
    
1,069
Benefit (provision) for income taxes
  
126
    
1,310
    
-
    
-
    
1,436
                             
Earnings (loss) from continuing operations
  
4,692
    
(2,187)
    
-
    
-
    
2,505
Less net earnings (loss) attributable to noncontrolling interests
  
162
    
(132)
    
-
    
-
    
30
Net earnings (loss) from continuing operations
                            
   attributable to GECC
$
4,530
  
$
(2,055)
  
$
-
  
$
-
  
$
2,475
                             

(a)
As reported in General Electric Company Current Report on Form 8-K filed August 7, 2015.

Amounts may not add due to rounding.
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.












5
General Electric Capital Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Earnings
For the year ended December 31, 2013
                             
   
General
                        
   
Electric
                        
   
Capital
    
Deconsolidation
            
   
Corporation
    
Synchrony
          
Effects of the
      
(In millions)
  
Historical(a)
    
and Other Assets
    
Adjustments
    
Exchange
    
Pro Forma
                             
Revenues
                            
Sales of goods
$
126
  
$
-
  
$
-
  
$
-
  
$
126
Revenues from services
  
26,882
    
(9,333)
    
222
    
-
    
17,771
   Total revenues
  
27,008
    
(9,333)
    
222
    
-
    
17,897
                             
Costs and expenses
                            
Cost of goods sold
  
108
    
-
    
-
    
-
    
108
Interest and other financial charges
  
4,690
    
(734)
    
151
    
-
    
4,107
Investment contracts, insurance losses and
                            
   insurance annuity benefits
  
2,779
    
-
    
-
    
-
    
2,779
Provision for losses on financing receivables
  
4,053
    
(3,072)
    
-
    
-
    
981
Other costs and expenses
  
10,787
    
(2,240)
    
71
    
-
    
8,618
   Total costs and expenses
  
22,417
    
(6,047)
    
222
    
-
    
16,591
                             
Earnings (loss) from continuing operations
                            
   before income taxes
  
4,591
    
(3,286)
    
-
    
-
    
1,305
Benefit (provision) for income taxes
  
456
    
1,218
    
-
    
-
    
1,674
                             
Earnings (loss) from continuing operations
  
5,047
    
(2,069)
    
-
    
-
    
2,978
Less net earnings (loss) attributable to noncontrolling interests
  
53
    
-
    
-
    
-
    
53
Net earnings (loss) from continuing operations
                            
   attributable to GECC
$
4,994
  
$
(2,069)
  
$
-
  
$
-
  
$
2,925
                             

(a)
As reported in General Electric Company Current Report on Form 8-K filed August 7, 2015.

Amounts may not add due to rounding.
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.












6
General Electric Capital Corporation
Unaudited Pro Forma Condensed Consolidated Statement of Earnings
For the year ended December 31, 2012
                             
   
General
                        
   
Electric
                        
   
Capital
    
Deconsolidation
            
   
Corporation
    
Synchrony
          
Effects of the
      
(In millions)
  
Historical(a)
    
and Other Assets
    
Adjustments
    
Exchange
    
Pro Forma
                             
Revenues
                            
Sales of goods
$
118
  
$
-
  
$
-
  
$
-
  
$
118
Revenues from services
  
26,453
    
(8,852)
    
206
    
-
    
17,807
   Total revenues
  
26,571
    
(8,852)
    
206
    
-
    
17,925
                             
Costs and expenses
                            
Cost of goods sold
  
99
    
-
    
-
    
-
    
99
Interest and other financial charges
  
5,632
    
(753)
    
146
    
-
    
5,025
Investment contracts, insurance losses and
                          
-
   insurance annuity benefits
  
2,984
    
-
    
-
    
-
    
2,984
Provision for losses on financing receivables
  
3,224
    
(2,733)
    
-
    
-
    
491
Other costs and expenses
  
9,523
    
(1,874)
    
60
    
-
    
7,709
   Total costs and expenses
  
21,462
    
(5,360)
    
206
    
-
    
16,308
                             
Earnings (loss) from continuing operations
                            
   before income taxes
  
5,109
    
(3,492)
    
-
    
-
    
1,617
Benefit (provision) for income taxes
  
(513)
    
1,291
    
-
    
-
    
778
                             
Earnings (loss) from continuing operations
  
4,596
    
(2,201)
    
-
    
-
    
2,395
Less net earnings (loss) attributable to noncontrolling interests
  
63
    
-
    
-
    
-
    
63
Net earnings (loss) from continuing operations
                            
   attributable to GECC
$
4,533
  
$
(2,201)
  
$
-
  
$
-
  
$
2,332
                             

(a)
As reported in General Electric Company Current Report on Form 8-K filed August 7, 2015.

Amounts may not add due to rounding.
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.












7
NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1) GECC DISTRIBUTION AND DECONSOLIDATION OF SYNCHRONY AND OTHER ASSETS

Prior to the completion of its initial public offering on August 5, 2014, Synchrony was a wholly owned subsidiary of GECC and an indirect wholly owned subsidiary of GE. Following the IPO, GECC beneficially owned 705,270,833 shares of Synchrony common stock in the aggregate, representing approximately 84.6 % of the outstanding shares of Synchrony common stock. Also, on November 17, 2015, in a preliminary transaction, GECC distributed to GE all the stock of a corporation that held the 705,270,833 shares of Synchrony common stock and certain energy assets.

Synchrony's historical results will be reported in GECC's consolidated financial statements as discontinued operations, and in subsequent periods GECC's consolidated financial statements will no longer reflect the assets, liabilities, results of operations or cash flows attributable to Synchrony. The deconsolidation adjustments reflect (i) the reversal of the historical assets and liabilities and results of operations of Synchrony and the energy assets as recorded by GECC, including the related tax impact, (ii) the reversal of consolidation entries and intercompany eliminations between Synchrony and GECC to present Synchrony as an unconsolidated subsidiary, and (iii) the allocation of goodwill as a result of the completion of the Exchange and related events. Not included in the pro forma results are anticipated savings due to costs that may be reduced or eliminated.


2) GE'S EXCHANGE AND SPLIT-OFF OF SYNCHRONY
On November 17, 2015, GE completed the previously announced split-off of Synchrony through which GE accepted 671,366,809 shares of GE common stock from its shareholders in exchange for 705,270,833 shares of Synchrony stock representing all the Synchrony stock that it owned. The Exchange is intended to qualify for tax-free treatment under section 355 of the Internal Revenue Code of 1986, as amended.
These unaudited pro forma condensed consolidated financial statements reflect an exchange ratio of 1.0505 shares of Synchrony common stock for each share of GE common stock, which represents the ratio that was in effect following the official close of trading on the New York Stock Exchange ("NYSE") on November 12, 2015, and is calculated as the average GE price of $30.3454 per share divided by 93% of the average Synchrony price of $31.0620 per share, reflecting a discount of 7%. The average prices reflect the simple arithmetic average of the daily volume-weighted average prices ("VWAPs") of shares of GE common stock and Synchrony common stock on the NYSE during the three consecutive trading days ending on and including November 12, 2015. These unaudited pro forma condensed consolidated financial statements reflect the distribution by GECC to GE as described above, the exchange ratio and GE's closing price as of November 16, 2015.




   
Shares of Synchrony common stock exchanged by GE
  
705,270,833
Exchange ratio
  
1.0505
Total shares of GE common stock accepted by GE
  
671,366,809
     

This transaction results in a pro forma one-time net gain to GECC estimated as of September 30, 2015 to be approximately $3,668 million calculated as follows:

(In millions)
  
     
Fair value of GE common stock tendered (671,366,809 shares acquired at the GE closing price of
$
20,383
     $30.36 per share as of November 16, 2015)
    
GECC's carrying value in Synchrony at September 30, 2015
  
(16,589)
Accumulated other comprehensive loss
  
(24)
Estimated transaction costs
  
(102)
Pro forma net gain as of September 30, 2015
$
3,668
     

The pro forma net gain, which would be reflected in discontinued operations in GECC's consolidated statement of earnings, has not been reflected in the unaudited pro forma condensed consolidated statements of earnings.
The amount of the actual gain may differ materially from the pro forma net gain set forth above based on factors including GECC's carrying value of Synchrony at the time the Exchange was consummated (which carrying value would be expected to increase as GECC recognizes its share of Synchrony's earnings through the closing of the Exchange).

8


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