frm11k2010.htm
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 11-K
 
Annual Report Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
(Mark One)
 
þ       Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (No Fee Required)
 
For the fiscal year ended December 31, 2010
 
OR
 
¨       Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934 (No Fee Required)
 
For the transition period from ___to ___
 
Commission file number 001-00035
 
A.       Full title of the plan and the address of the plan, if different from that of the issuer named below:
 
GE Savings and Security Program
 
B.       Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
 
General Electric Company
3135 Easton Turnpike
Fairfield, Connecticut 06828-0001


 
 
 
Required Information
 

   
Page
Number(s)
     
A.
Financial Statements and Schedule:
  
     
 
Report of Independent Registered Public Accounting Firm
3
     
 
Financial Statements:
  
     
 
Statements of Net Assets Available for Plan Benefits
as of December 31, 2010 and 2009
4
     
 
Statements of Changes in Net Assets Available for Plan Benefits
for the Years Ended December 31, 2010 and 2009
5
     
 
Notes to Financial Statements:
6-17
     
 
Supplemental Schedule:
  
 
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
as of December 31, 2010
18-26
     
B.
Exhibits
  
     
 
23
Consent of Independent Registered Public Accounting Firm
  
       
 
99(a)
GE S&S Program Mutual Funds 2010 Annual Report (incorporated by reference to the General Electric S&S Program Mutual Fund Form N-CSR for the year ended December 31, 2010, as filed with the Commission on March 9, 2011)
  
       
 
99(b)
GE Institutional U.S. Equity Fund 2010 Annual Report (incorporated by reference to the GE Institutional Funds Form N-CSR for the year ended September 30, 2010, as filed with the Commission on December 3, 2010)
  
       
 
99(c)
GE Institutional S&P 500 Index Fund 2010 Annual Report (incorporated by reference to the GE Institutional Funds Form N-CSR for the year ended September 30, 2010, as filed with the Commission on December 3, 2010)
  
       
 
99(d)
GE Institutional Core Value Equity Fund 2010 Annual Report (incorporated by reference to the GE Institutional Funds Form N-CSR for the year ended September 30, 2010, as filed with the Commission on December 3, 2010)
  
       
 
 
 
 
 
 
 
 
99(e)
GE Institutional Premier Growth Equity Fund 2010 Annual Report (incorporated by reference to the GE Institutional Funds Form N-CSR for the year ended September 30, 2010, as filed with the Commission on December 3, 2010)
  
       
 
99(f)
GE Institutional Small-Cap Equity Fund 2010 Annual Report (incorporated by reference to the GE Institutional Funds Form N-CSR for the year ended September 30, 2010, as filed with the Commission on December 3, 2010)
  
       
 
99(g)
GE Institutional International Equity Fund 2010 Annual Report (incorporated by reference to the GE Institutional Funds Form N-CSR for the year ended September 30, 2010, as filed with the Commission on December 3, 2010)
  
       
 
99(h)
GE Institutional Strategic Investment Fund 2010 Annual Report (incorporated by reference to the GE Institutional Funds Form N-CSR for the year ended September 30, 2010, as filed with the Commission on December 3, 2010)
  

 
 
 
 
 
 
Signatures
 
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
 
     
GE Savings and Security Program
       
       
       
Date:
June 21, 2011
  
/s/ Jamie S. Miller
     
Jamie S. Miller
Vice President and Controller

 
 
 
 
 
 
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Financial Statements and Supplemental Schedule
 
December 31, 2010 and 2009
 
(With Independent Registered Public Accounting Firm’s Report Thereon)
 

 
 
 

GE SAVINGS AND SECURITY PROGRAM
 
December 31, 2010 and 2009
 
Table of Contents
 



 
Page
Number(s)
   
Report of Independent Registered Public Accounting Firm
3
   
Financial Statements:
  
Statements of Net Assets Available for Plan Benefits
as of December 31, 2010 and 2009
4
   
Statements of Changes in Net Assets Available for Plan Benefits
for the Years Ended December 31, 2010 and 2009
5
   
Notes to Financial Statements
6-17
   
Supplemental Schedule: (i)
  
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
as of December 31, 2010
18-26





(i) Schedules required by Form 5500 that are not applicable have not been included.

 
- 2 -
 

Report of Independent Registered Public Accounting Firm



General Electric Company, as Administrator
GE Savings and Security Program:

We have audited the accompanying statements of net assets available for plan benefits of the GE Savings and Security Program (the Plan) as of December 31, 2010 and 2009, and the related statements of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 2010 and 2009, and the changes in net assets available for plan benefits for the years then ended in conformity with U.S. generally accepted accounting principles.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule H, line 4i - schedule of assets (held at end of year) as of December 31, 2010 is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.



/s/ KPMG LLP
June 21, 2011

 
- 3 -
 

GE SAVINGS AND SECURITY PROGRAM
 
Statements of Net Assets Available for Plan Benefits
 
December 31, 2010 and 2009
 
(in thousands)
 

 
   
2010
    
2009
  
Assets
            
             
Investments, at fair value (notes 3 and 4)
   $ 19,201,212     $ 16,884,096  
Notes receivables from participants
     386,775       383,556  
Accrued dividends and interest
     56,877       43,395  
Other assets
     34,248       16,042  
Total assets
     19,679,112       17,327,089  
                 
Liabilities
                
                 
Other liabilities
     5,220       7,318  
Total liabilities
     5,220       7,318  
                 
Net assets available for plan benefits
   $ 19,673,892     $ 17,319,771  


 
 
See accompanying notes to financial statements.
 

 
- 4 -
 

GE SAVINGS AND SECURITY PROGRAM
 
Statements of Changes in Net Assets Available for Plan Benefits
 
Years Ended December 31, 2010 and 2009
 
(in thousands)
 
 
   
2010
    
2009
  
Additions to net assets attributed to:
            
Investment income:
            
Net appreciation in fair value of
            
       investments (note 3)
   $ 2,159,631     $ 931,650  
Interest and dividend income:
                
General Electric Company Common Stock
     180,673       272,537  
Registered investment companies
     136,675       147,195  
Other investments
     20,289       28,448  
     
2,497,268
       1,379,830  
                 
Interest on notes receivable from participants
     22,768       23,825  
                 
Contributions:
                
Employee
     917,725       909,969  
Employer
     326,306       324,350  
 
     1,244,031       1,234,319  
                 
Total additions
     3,764,067       2,637,974  
                 
Deductions from net assets attributed to:
                
Participant withdrawals
     1,409,946       1,163,559  
                 
Net increase
     2,354,121       1,474,415  
                 
Net assets available for plan benefits:
                
Beginning of year
     17,319,771       15,845,356  
End of year
   $ 19,673,892     $ 17,319,771  

 
 
See accompanying notes to financial statements.
 
 

 
- 5 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Notes to Financial Statements
 
December 31, 2010 and 2009

(1)
Description of the Plan
 
The GE Savings and Security Program (the “Plan”) is a defined contribution plan sponsored by General Electric Company (“the Company”). The Plan is subject to applicable provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The assets of the Plan are held and invested through the General Electric Savings and Security Trust (the “Trust”).
 
Historically, the Company has performed all of the Plan’s administration and recordkeeping.  On December 1, 2009, Fidelity Investmentsâ became the Plan’s recordkeeper.  The Plan Trustees (all of whom are officers of GE Asset Management Incorporated (“GEAM”), a wholly owned subsidiary of the Company) appointed Fidelity Management Trust Company (“FMTC”) as the directed Trustee of the Trust.  The Plan was also amended and restated in its entirety and otherwise updated, generally effective December 1, 2009, primarily to:
 
·  
provide new investment options, “unitize” the GE stock fund, and expand investment alternatives for matching contributions and loan repayments;
·  
expedite contribution and investment elections and increase investment switching opportunities;
·  
reduce restrictions on loans, regular in-service withdrawals and partial distributions; and
·  
incorporate regulatory changes and make other improvements and technical changes.

GEAM is the investment adviser to seven of the Plan’s investment options, which include actively managed funds in equity and fixed income asset classes. BlackRock Institutional Trust Company (“BlackRock”) is the investment adviser to six of the Plan’s investment options, which include passively managed funds in equity and fixed income classes (collectively referred to herein as the “Index Funds”).  These funds were established as investment options December 1, 2009.  State Street Bank and Trust Company is the custodian of all Plan assets except for the GE Stock Fund (as defined below) and the United States Savings Bonds. FMTC is the custodian of the GE Stock Fund (as defined below).  The Federal Reserve Bank is the custodian of the United States Savings Bonds in the U.S. Bond Fund (as defined below).
 
The following description of the Plan is provided for general information purposes only. The complete terms of the Plan are provided in the GE Savings and Security Program document (the “Plan Document”). Additional Plan information including benefits, investment options, vesting provisions and effects of plan termination is included in Plan handbooks and other material distributed to participants.
 
Employee Contributions and Investment Options
 
Eligible employees of the Company and participating affiliates may participate in the Plan by investing up to 30% of their earnings in one or more of the following investment options:
 
 
(a)
General Electric Common Stock Fund (the “GE Stock Fund”) - GE Stock constitutes at least 98% of the assets of the GE Stock Fund and the remainder (up to 2%) is held in cash and cash equivalents to provide liquidity for participant directed transactions. Effective as of December 1, 2009, an investment in GE common stock (“GE Stock”) changed from an investment solely in GE Stock to an investment in a unitized stock fund.
 
 
(b)
GE S&S Income Fund (the “Income Fund”) - a registered investment company managed by GEAM that invests primarily in a variety of investment grade debt securities such as U.S. Government securities, mortgage-backed securities, corporate bonds, and money market instruments. The Income Fund normally has a weighted average maturity of approximately five to ten years, but is subject to no limitation with respect to the maturities of the instruments in which it may invest.
 
 
(c)
GE S&S Program Mutual Fund (the “Mutual Fund”) - a registered investment company managed by GEAM that invests primarily in equity securities of U.S. companies.
 

 

 
- 6 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Notes to Financial Statements
 
December 31, 2010 and 2009
 
 
 
 
(d)
GE Institutional International Equity Fund (the “International Fund”) - a registered investment company managed by GEAM that invests primarily in equity securities of companies in countries other than the United States.

 
(e)
GE Institutional Small-Cap Equity Fund (the “Small-Cap Fund”) - a registered investment company managed by GEAM that invests primarily in equity securities of small-cap U.S. companies (those with market capitalizations in the same range as the companies in the Russell 2000 Index).

 
(f)
GE Institutional Strategic Investment Fund (the “Strategic Investment Fund”) – a registered investment company managed by GEAM that invests primarily in a combination of equity securities (U.S. and Non-U.S.), investment grade debt securities and cash.

 
(g)
Non-U.S. Equity Index Fund – a collective trust fund managed by Blackrock that invests in foreign stocks in developed and emerging markets outside the United States that seeks investment results that correspond generally to the investment performance of the Morgan Stanley Capital International All Country World Index (MSCI ACWI) ex-USA.

 
(h)
U.S. Aggregate Bond Index Fund – a collective trust fund managed by Blackrock that invests in high-quality fixed income securities that seeks investment results that correspond generally to the investment performance of the Barclays Capital U.S. Aggregate (US Agg) Bond Index.

 
(i)
U.S. Large-Cap Equity Index Fund – a collective trust fund managed by Blackrock  that invests in large companies within the United States that seeks investment results that correspond generally to the investment performance of the S&P 500 Index. This fund replaced the Vanguardâ Institutional Index Fund as an investment option in the Plan effective December 1, 2009.

 
(j)
U.S. Mid-Cap Equity Index Fund – a collective trust fund managed by Blackrock that invests in medium-sized companies within the United States that seeks investment results that correspond generally to the investment performance of the S&P Mid-Cap 400 Index.

 
(k)
U.S. Small-Cap Equity Index Fund – a collective trust fund managed by Blackrock that invests in smaller companies within the United States that seeks investment results that correspond generally to the investment performance of the Russell 2000 Index.

 
 
(l)
U.S. Treasury Inflation-Protected Securities Index Fund (the “U.S. TIPS Index Fund”) – a collective trust fund managed by Blackrock that invests in inflation-linked, fixed income securities issued by the United States government that seeks investment results that correspond generally to the investment performance of the Barclays Capital U.S. Treasury Inflation-Protected Securities (TIPS) Index.

 
 
(m)
GE S&S Short-Term Interest Fund (the “Short Term Fund”) – invests primarily in a variety of investment grade debt securities with a weighted average maturity that is normally not more than three years.  The fund is managed by GEAM.
 
 
(n)
GE S&S Money Market Fund (the “Money Market Fund”) – invests primarily in short-term, U.S. dollar denominated money market instruments and other debt instruments that mature in one year or less.  The fund is managed by GEAM.
 
 

 
- 7 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Notes to Financial Statements
 
December 31, 2010 and 2009
 

 
(o)
United States Savings Bonds (the “U.S. Bond Fund”) – comprises individual participants’ contributions that are directed to U.S. Treasury Series EE Savings Bonds, bonds that mature in 30 years. Individual funds being accumulated for bond purchase are invested in short-term instruments. Effective July 1, 1995, only after-tax contributions are permitted to be invested in the U.S. Bond Fund. Bonds acquired with after-tax contributions held by the Trustees shall be distributed to participants as soon as practicable after the end of the second calendar year following the year in which the bonds were acquired. Proceeds from bonds acquired before July 1, 1995 that have matured but have not yet been distributed are reinvested in bonds. 
 
See Note 6 for additional investment options effective January 1, 2011.
 
The GE Stock Fund, Income Fund, Mutual Fund, International Fund, Small-Cap Fund, Strategic Investment Fund, Index Funds, Short Term Fund, Money Market Fund and U.S. Bond Fund are collectively referred to herein as the “Funds”.
 
The Income Fund, Mutual Fund, International Fund, Small-Cap Fund and Strategic Investment Fund are registered investment companies subject to specific disclosure and other requirements.  Audited financial statements and prospectuses or other disclosure documents of the registered investment companies are distributed annually to participants. Collective investment fund profiles and other disclosure documents are distributed annually to participants for the Index Funds.   The GE Stock Fund, Short Term Fund and Money Market Fund detailed information is contained in the S&S Program Supplemental Information document, which is distributed annually.
 
The Plan permits participants to invest compensation on which income taxes have and have not been paid (“after-tax” and “pre-tax”, respectively). The United States Internal Revenue Code limits the amount of pre-tax contributions that can be made each year. The limit for participants under age 50 was generally $16,500 in 2010 and 2009. For participants who were at least age 50 during the year, the 2010 and 2009 limit was generally $22,000.  Effective January 1, 2010, the Plan also permits participants to make Roth contributions, which are combined with pre-tax contributions for purposes of these limits.
 
Prior to December 2009, the Plan permitted participants to switch their investment balances up to 24 times each year.  Effective December 2009, participants may make such switches (including rebalancing) up to 12 times each quarter. Restrictions on such switches include a prohibition against switching balances into the U.S. Bond Fund, a prohibition against switching balances out of U.S Savings Bonds held in custody that were purchased with after-tax contributions and certain restrictions on a participant’s ability to engage in frequent trading in response to Securities and Exchange Commission requirements governing mutual funds.
 
Employer Contributions
 
The Plan generally provides for employer matching contributions of 50% of employees’ contributions of up to 7% of their earnings, that is, a 3.5% maximum matching contribution. For certain eligible employees whose first day of work was on or after January 1, 2005, such matching contributions are generally 50% of employees’ contributions of up to 8% of earnings (4% maximum). Prior to December 2009, employer contributions were invested at the election of the participant in any one of the investment options except for the U.S. Bond Fund.  Effective December 2009, participants are no longer limited to one investment option for employer contributions.
 
See Note 6 for additional employer contributions effective January 1, 2011 for certain employees who commence service on or after that date.
 

 
- 8 -
 
 

GE SAVINGS AND SECURITY PROGRAM
 
Notes to Financial Statements
 
December 31, 2010 and 2009
 

 
Rollovers and Transfers from Other Qualifying Plans
 
Subject to Company approval, participants may elect to roll over amounts from other qualifying plans or arrangements in accordance with the Internal Revenue Code. For the years ended December 31, 2010 and 2009, transfers from other qualifying plans or arrangements accounted for $31.7 million and $18.5 million, respectively, and are included in employee contributions in the Statements of Changes in Net Assets Available for Plan Benefits.
 
Withdrawals
 
Subject to certain limitations prescribed by the Plan and the Internal Revenue Code, terminated participants may elect retirement or other termination withdrawals in either lump sum or partial payments. Currently, employed participants may make up to seven withdrawals per year and certain hardship withdrawals from their participant accounts. Partial payments on termination are generally limited to four per year and a minimum of $500.
 
Notes Receivable from Participants
 
The Plan permits participants, under certain circumstances, to borrow a minimum of $500 from their participant accounts. Subject to certain Internal Revenue Code and Plan limits, a participant may not borrow more than the lesser of 50% of that participant’s available account value, as defined in the Plan Document, or $50,000, adjusted for prior loans. The term of any loan is up to 4.5 years unless the loan is used to acquire a principal residence for which a term of up to 15 years may be permissible. The interest rate applicable to participant loans is based on the monthly average of the composite yield on corporate bonds, published by Moody’s Investors Service. Prior to December 2009, the interest rates of individual loans were fixed for the shorter of the term of the loan or five years.  Effective December 2009, the interest rates for new loans are fixed for the term of the loan.
 
A participant may have no more than two outstanding loans from the Plan at any time. Prior to December 2009, a participant could not obtain more than one loan during any calendar year.  Effective December 2009, this one loan per calendar year limit was removed.
 
Loans are repaid with interest in equal payments over the term of the loan by payroll deductions, personal check or other such methods as may be required. Participants may repay the entire principal amount with written notice and without penalty.
 
In the event of a loan default, the amount of the outstanding balance will be reported to the Internal Revenue Service in the year of the default as ordinary income.
 
Participant Accounts
 
Each participant’s account is credited with the participant’s contributions and allocation of (a) employer matching contributions and (b) investment results. The benefit to which a participant is entitled is the value of the participant’s vested account.
 
Vesting
 
Participants are fully vested in their employee contributions, employer matching contributions and related investment results.

 
 
 
- 9 -
 

GE SAVINGS AND SECURITY PROGRAM
 
Notes to Financial Statements
 
December 31, 2010 and 2009

 
Plan Termination and Amendment
 
Although the Company has not expressed any intent to do so, it has the right under the Plan, to the extent permitted by law, to discontinue its contributions and to terminate the Plan in accordance with the provisions of ERISA. If the Plan is terminated, each participant’s interest will be payable in full according to the Plan provisions. The Company also has the right under the Plan, to the extent permitted by law, to amend or replace the Plan for any reason.
 
Administrative and Investment Advisory Costs
 
Administrative costs of the Plan and investment advisory costs for the GE Stock Fund, Short Term Fund and the Money Market Fund are generally borne by the Company. For the registered investment companies and the index funds, investment advisers receive a management fee for providing investment advisory services. These management fees are reflected in interest and dividend income for the registered investment companies and in net appreciation in fair value of investments for the index funds on the Statements of Changes in Net Assets Available for Plan Benefits.
 
(2)
Summary of Significant Accounting Policies
 
 
(a)  
Basis of Accounting
 
The accompanying financial statements have been prepared on the accrual basis of accounting.
 
 
(b)
Accounting Changes
 
In January 2010, the Financial Accounting Standards Board (“FASB”) issued ASU 2010-06, Improving Disclosures about Fair Value Measurements.  ASU 2010-06 requires reporting entities to make new disclosures about recurring or nonrecurring fair-value measurements including significant transfers into and out of Level 1 and Level 2 fair-value measurements and information on purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value measurements.  The new and revised disclosures are effective for fiscal years beginning after December 15, 2009 (for transfers into and out of Level 1 and Level 2 fair-value measurements) and December 15, 2010 (for information of Level 3 fair-value measurements), and the interim periods within those fiscal years.  The Company does not believe the adoption of ASU 2010-06 will materially impact the Plan’s financial statement disclosures.
 
In September 2010, FASB issued ASU 2010-25, Reporting Loans to Participants by Defined Contribution Pension Plans.  ASU 2010-25 requires that participant loans be classified as notes receivable from participants, which are segregated from plan investments and measured at their unpaid principal balance plus any accrued but unpaid interest.  This disclosure is effective for fiscal years ending after December 15, 2010.
 
 
(c)
Investments
 
 
Plan investments are reported at fair value.  See notes 3 and 4 for additional information.
 
Investment transactions are recorded on a trade date basis. Dividends are recorded on the ex-dividend date. Interest income is earned from settlement date and recognized on the accrual basis. The net appreciation (depreciation) in the fair value of investments consists of the realized gains or losses on the sales of investments and the net unrealized appreciation (depreciation) of investments.
 

 
 
- 10 -
 
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Notes to Financial Statements
 
December 31, 2010 and 2009
 
 
Investments other than the GE Stock Fund, the Mutual Fund, the Money Market Fund and the U.S. Bond Fund may use various financial instruments such as options and futures, commonly referred to as derivatives, to manage risk.  The Index Funds may use futures to manage risk.  In addition, the Non-U.S. Equity Index Fund may use a variety of over the counter derivative instruments, including, without limitation, options, swaps, and forward contracts.  No investments are engaged in market-making or other speculative activities.
 
All portfolio securities of the Money Market Fund and any short-term money market instruments held by the Short Term Fund with remaining maturities of sixty days or less at the time of purchase are valued on the basis of amortized cost, which approximates fair value.  
 
The Plan invests in collective funds. A collective fund is a pool of investments from various investors to create a diversified fund.
 
More detailed information regarding these financial instruments, as well as the strategies and policies for their use, is contained in the audited financial statements of the eligible investment options, which are distributed annually to participants, except the GE Stock Fund, Short Term Fund, Money Market Fund and the Index Funds. Collective investment fund profiles and other disclosure documents are distributed annually to participants for the Index Funds.  The GE Stock Fund, Short Term Fund and Money Market Fund detailed information is contained in the S&S Program Supplemental Information document, which is distributed annually.
 
(d)           Fair Value Measurements
 
For financial assets and liabilities, fair value is the price the Plan would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date.  In the absence of active markets for the identical assets and liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date.
 
Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions.  Preference is given to observable inputs.  These two types of inputs create the following fair value hierarchy:
 
Level 1 - Quoted prices for identical investments in active markets.

Level 2 - Quoted prices for similar investments in active markets; quoted prices for identical or similar investments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 - Significant inputs to the valuation model are unobservable.

 
The Company maintains policies and procedures to value investments using the best and most relevant data available.   In addition, the Company retained independent pricing vendors to assist in valuing certain investments.

The following section describes the valuation methodologies used to measure investments at fair value.

 

 
- 11 -
 

 
GE SAVINGS AND SECURITY PROGRAM
 
Notes to Financial Statements
 
December 31, 2010 and 2009

 
When available, quoted market prices are used to determine the fair value of investment securities, and they are included in Level 1.  Level 1 securities include GE common stock, registered investment companies and U.S. Savings Bonds.

The Plan’s ownership in the collective funds are carried at fair value based on the investment’s net asset value per unit and included in Level 2.

When quoted market prices are unobservable, pricing information is obtained from an independent pricing vendor. The pricing vendor uses various pricing models for each asset class that are consistent with what other market participants would use. The inputs and assumptions to the model of the pricing vendor are derived from market observable sources including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and other market-related data. Since many fixed income securities do not trade on a daily basis, the methodology of the pricing vendor uses available information as applicable such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. The pricing vendor considers available market observable inputs in determining the evaluation for a security. Thus, certain securities may not be priced using quoted prices, but rather determined from market observable information. These investments are included in Level 2 and primarily comprise securities in the Short Term Fund and the Money Market Fund.  In infrequent circumstances, our pricing vendors may provide us with valuations that are based on significant unobservable inputs, and in those circumstances, the investment securities are classified in Level 3.  
 
 
(e) 
Notes Receivable from Participants
 
Notes receivable from participants are recorded at the outstanding principal balance plus accrued interest.
 
 
(f) 
Participant Withdrawals
 
Participant withdrawals are recorded when paid.
 
 
(g)
Management Estimates and Assumptions
 
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.
 
 
(h)
Reclassifications
 
Certain prior year amounts have been reclassified to conform to current year presentation.
 

 

 
- 12 -
 

GE SAVINGS AND SECURITY PROGRAM

Notes to Financial Statements
 
December 31, 2010 and 2009

(3)  
Investments
 
The following is a summary of the fair value of the Plan’s investments at December 31, 2010 and 2009:
 
   
2010
      
2009
    
   
(in thousands)
    
                 
GE Common Stock
   $ 8,174,128  
(a)
   $ 6,922,381  
(a)
Registered Investment Companies:
                    
     GE S&S Income Fund
     1,897,737  
(a)
     1,727,931  
(a)
     GE S&S Program Mutual Fund
     2,695,572  
(a)
     2,525,839  
(a)
     GE Institutional International Equity Fund
     1,201,170  
(a)
     1,200,123  
(a)
     GE Institutional Small-Cap Equity Fund
     795,980         585,060    
     GE Institutional Strategic Investment Fund
     467,382         406,599    
          Total Registered Investment Companies
     7,057,841         6,445,552    
Collective Funds:
                    
     GE Cash Plus Fund
     13,298         8,865    
     Non-U.S. Equity Index Fund
     114,015         22,918    
     U.S. Aggregate Bond Index Fund
     75,588         14,499    
     U.S. Large-Cap Equity Index Fund
     958,228         790,875    
     U.S. Mid-Cap Equity Index Fund
     130,861         17,081    
     U.S. Small-Cap Equity Index Fund
     83,642         13,370    
     U.S. Treasury Inflation-Protected Securities Index Fund
     70,072         42,977    
          Total Collective Funds
     1,445,704         910,585    
Other Investments:
                    
     Short-Term Money Market Instruments
     1,243,567  
(a)
     1,372,567  
(a)
     U.S. Treasury and U.S. Government Agency Debt
                    
         Obligations
     984,038  
(a)
     1,004,840  
(a)
     Commercial Mortgage-Backed and Asset-Backed
                    
          Securities
     183,803         111,059    
     U.S. Savings Bonds
     112,131         117,112    
          Total Other Investments
     2,523,539         2,605,578    
                     
            Total Investments at fair value
   $ 19,201,212       $ 16,884,096    
                     
 
(a) Investments representing more than 5% of the Plan’s net assets.

 
 
- 13 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Notes to Financial Statements
 
December 31, 2010 and 2009

 
The Plan’s investments appreciated (depreciated) as follows:
 
     
2010
  
2009
     
  (in thousands)
GE Common Stock
  
$
 1,191,049
$
(285,348)
Registered Investment Companies
    
 480,020
  
   1,020,071 
Collective Funds
    
441,793
  
     265,234 
Other Investments
    
46,769
  
(68,307)
   
$
2,159,631
$
      931,650 
 
The Funds, with the exception of the GE Stock Fund, Index Funds and U.S. Bond Fund may, from time to time, lend securities to certain unrelated brokers. In the event the counterparty does not meet its contracted obligation to return securities used, a Fund may be exposed to the risk of reacquiring the securities at prevailing market prices in order to satisfy its obligations. In a securities loan arrangement, a Fund receives collateral in the form of cash or securities, which may be supplemented by letters of credit, in an amount generally in excess of the market value of securities loaned. The Funds monitor the market value of the securities loaned on a daily basis with additional collateral obtained or refunded as necessary. The value of cash collateral obtained and reinvested in short-term investments is reflected as a liability in the Plan’s financial statements for any securities lending activities related to the Short-Term Fund and the Money Market Fund.  None of the funds participated in security lending programs as of December 31, 2010 and 2009.
 
The Funds, with the exception of the GE Stock Fund and U.S. Bond Fund include investments in U.S. equities, international equities and fixed income securities. Investment securities, in general, are exposed to various risks, such as interest rate, credit and overall market volatility. Due to the level of risk associated with certain investment securities, it is reasonable to expect that changes in the values of investment securities will occur (including in the near term) and that such changes could materially affect participant account balances and the Statements of Net Assets Available for Plan Benefits. The Plan offers alternatives that may mitigate participant risks, including the opportunity to diversify investments across fifteen participant-directed fund elections. Additionally, the investments within each participant-directed fund election are further diversified into various financial instruments, with the exception of the GE Stock Fund and the U.S. Bond Fund, which primarily invest in securities of a single issuer.

 
- 14 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Notes to Financial Statements
 
December 31, 2010 and 2009

(4)
Fair Value Measurements
 
The following table presents the Plan’s investments measured at fair value on a recurring basis at December 31, 2010:

 
   
Level 1
    
Level 2
    
Level 3
    
Total
  
   
(in thousands)
  
GE Common Stock
   $ 8,174,128     $ --     $ —     $ 8,174,128  
Registered Investment Companies
     7,057,841       —       —       7,057,841  
Collective Funds
     —       1,445,704       —       1,445,704  
Other Investments:
                                
Short-Term Money Market Instruments
     63,694       1,179,873       —       1,243,567  
U.S. Treasury and U.S. Government Agency
                                
Debt Obligations
     —       984,038       —       984,038  
Commercial Mortgage-Backed and
                                
Asset-Backed Securities
     —       173,822       9,981       183,803  
U.S. Savings Bonds
     112,131       —       —       112,131  
Total Other Investments
     175,825       2,337,733       9,981       2,523,539  
Total investments at fair value
   $ 15,407,794     $ 3,783,437     $ 9,981     $ 19,201,212  
 
The following table presents the Plan’s investments measured at fair value on a recurring basis at December 31, 2009:

   
Level 1
    
Level 2
    
Level 3
    
Total
  
   
(in thousands)
  
GE Common Stock
   $ 6,922,381     $ —     $ —     $ 6,922,381  
Registered Investment Companies
     6,445,552       —       —       6,445,552  
Collective Funds
     —       910,585       —       910,585  
Other Investments:
                                
Short-Term Money Market Instruments
     59,188       1,313,379       —       1,372,567  
U.S. Treasury and U.S. Government Agency
                                
Debt Obligations
     —       996,670       8,170       1,004,840  
Commercial Mortgage-Backed and
                                
Asset-Backed Securities
     —       111,059       —       111,059  
U.S. Savings Bonds
     117,112       —       —       117,112  
Total Other Investments
     176,300       2,421,108       8,170       2,605,578  
Total investments at fair value
   $ 13,544,233     $ 3,331,693     $ 8,170     $ 16,884,096  

 
As discussed in Note 1(a), the GE Stock Fund is a unitized fund that consists of GE common stock and short-term money market instruments which are assets of the Plan.  The GE Stock Fund commenced December 1, 2009.  In 2010, we have included the asset components of the GE Stock Fund in the fair value measurements table as Level 1 investments.  Accordingly, we have reclassified the 2009 presentation to conform to the current year presentation.
 
 
 
- 15 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Notes to Financial Statements
 
December 31, 2010 and 2009

 
The following table presents the changes in Level 3 investments measured on a recurring basis for the year ended December 31, 2010:
 
                                 
Net change in
  
                                 
unrealized
  
                                 
gains (losses)
  
         
Net
                      
relating to
  
         
realized/
    
Purchases,
    
Transfers
          
investments
  
         
unrealized
    
issuances,
    
in and/or
          
still held at
  
(in thousands)
  
January 1,
    
gains
    
and
    
out of
    
December 31,
    
December 31,
  
   
2010
    
(losses)
    
settlements
    
Level 3(a)
    
2010
    
2010(b)
  
                                     
U.S. Treasury and U.S
                                    
Government Agency Debt
                                    
Obligations
   $ 8,170     $ 170     $ (8,301 )   $ (39 )   $ —     $ —  
                                                 
Commercial Mortgage-
                                                
Backed and Asset-Backed
                                                
Securities
                                                
    —       (101 )     10,082       —       9,981       2  
    $ 8,170     $ 69     $ 1,781     $ (39 )   $ 9,981     $ 2  

 
 
The following table presents the changes in Level 3 investments measured on a recurring basis for the year ended December 31, 2009:
 
                                 
Net change in
  
                                 
unrealized
  
                                 
gains (losses)
  
         
Net
                      
relating to
  
         
realized/
    
Purchases,
    
Transfers
          
investments
  
         
unrealized
    
issuances,
    
in and/or
          
still held at
  
(in thousands)
  
January 1,
    
gains
    
and
    
out of
    
December 31,
    
December 31,
  
   
2009
    
(losses)
    
settlements
    
Level 3(a)
    
2009
    
2009(b)
  
                                     
U.S. Treasury and U.S
                                    
Government Agency Debt
                                    
Obligations
   $ 69     $ (51 )   $ 8,152     $ —     $ 8,170     $ 4  
 
(a) Transfers in and out of Level 3 are considered to occur at the beginning of the period.  There were no transfers during 2009.
 
(b) The net change in unrealized gains (losses) was included in the year-end asset value.
 

 
- 16 -
GE SAVINGS AND SECURITY PROGRAM
 
Notes to Financial Statements
 
December 31, 2010 and 2009

 
(5)
Tax Status
 
The Internal Revenue Service has notified the Company by a letter dated August 19, 2010, that the Plan is qualified under the appropriate sections of the Internal Revenue Code. The Plan has been amended and restated since that letter was issued. However, counsel for the Plan has no reason to believe that those changes have adversely affected the validity of the determination letter.

The portion of a participant’s compensation contributed to the Plan as a pre-tax contribution and the Company’s matching contribution are not subject to Federal income tax when such contributions are credited to participant accounts, subject to certain limitations. These amounts and any investment results may be included in the participant’s gross taxable income for the year in which such amounts are withdrawn from the Plan.
 
(6)
Plan Amendments
 
Effective January 1, 2011, the Plan was amended to give certain eligible employees whose first day of work was on or after that date an employer contribution generally equal to 3% of their earnings, irrespective of any employee contributions.  This Company Retirement Contribution is in addition to the employer matching contribution generally equal to 50% of employees’ contributions of up to 8% of earnings (4% maximum).  These Company Retirement Contributions can be invested in any of the available investment options, with the exception of the U.S. Bond Fund, and are not available for loans or withdrawals during employment.  A participant generally becomes vested in any Company Retirement Contributions and related earnings once the participant completes three years of service.
 
In addition, the Plan added a series of target retirement date fund investment options (collectively, the “Target Retirement Date Funds”) effective January 1, 2011 which are managed by AllianceBernstein, L.P.  The Target Retirement Date Funds are daily valued separate accounts that invest in a combination of the Index Funds and the Money Market Fund representing a variety of asset classes.
 

(7)
Reconciliation of Financial Statements to Form 5500
 
Notes receivable from participants are classified as investments per Form 5500 instructions. In addition, any deemed distributions are not considered to be plan assets per Form 5500 and are excluded from notes receivable from participants.  However, these distributions remain a plan asset for purposes of these financial statements.
 
The following is a reconciliation of total investments per the financial statements to the annual report filed on Form 5500, Schedule H as required by the Department of Labor:
 
   
December 31
  
   
2010
    
2009
  
   
(in thousands)
  
             
Total investments per financial statements
   $ 19,201,212     $ 16,884,096  
Notes receivable from participants
     386,775       383,556  
Deemed distributions
     (8,184 )     —  
Total investments per Form 5500
   $ 19,579,803     $ 17,267,652  
 

 
 
- 17 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
 
As of December 31, 2010
 

Description
Shares
  
Cost (a)
  
Fair Value
  
             
Corporate Stocks-Common
            
General Electric Company (i)
   446,917,878   $ 9,715,797,701   $ 8,174,127,989  
                   
Registered Investment Companies (c)
                  
GE S&S Income Fund
   168,388,354     1,839,955,512     1,897,736,751  
GE S&S Program Mutual Fund
   67,004,016     2,456,930,340     2,695,571,545  
GE Institutional International Equity Fund
   104,449,576     1,162,062,357     1,201,170,124  
GE Institutional Small-Cap Equity Fund
   54,038,026     609,571,160     795,980,128  
GE Institutional Strategic Investment Fund
   41,767,851     434,911,396     467,382,249  
Total Registered Investment Companies
         6,503,430,765     7,057,840,797  
                   
Collective Funds
                  
GE Cash Plus Fund (c) (d)
         13,297,650     13,297,650  
Non-U.S. Equity Index Fund
         103,148,157     114,014,948  
U.S. Aggregate Bond Index Fund
         73,924,611     75,588,000  
U.S. Large-Cap Equity Index Fund
         826,759,698     958,228,273  
U.S. Mid-Cap Equity Index Fund
         112,973,778     130,861,336  
U.S. Small-Cap Equity Index Fund
         71,620,957     83,642,105  
U.S. Treasury Inflation-Protected Securities Index Fund
         67,826,016     70,071,748  
Total Collective Funds
         1,269,550,867     1,445,704,060  
                   
Other Investments
                  
 
Description
  
Rate of
Interest
    
Maturity
    
Cost (a)
    
Fair Value
    
Short-Term Money Market Instruments
                          
Abbey National Treasury
     0.341 %  
2/25/2011
     $ 48,100,000     $ 48,100,000  
(e) (f)
Australia and New Zealand Bank
     0.448    
4/26/2011
       14,210,454       14,210,454  
(e) (f)
Banco Bilbao Viz Arg NY
     0.555    
3/07/2011
       23,800,214       23,800,214  
(e)
Banco Bilbao Viz London
     0.501    
2/25/2011
       18,985,486       18,985,486  
(e)
Bank Of Montreal Chicago
     0.240    
1/20/2011
       22,400,000       22,400,000  
(e)
Bank Of Nova Scotia Houston
     0.300    
4/4/2011
       27,800,000       27,800,000  
(e)
Barclays Bank PLC
     0.361    
5/3/2011
       15,500,000       15,500,000  
(e) (f)
Barclays Bank PLC
     0.411    
6/20/2011
       34,200,000       34,200,000  
(e) (f)
BNP Paribas
     0.330       2/18/2011       29,550,000       29,550,000  
(e)
Caisse D’Amort Dette Soc
     0.260    
3/15/2011
       29,584,394       29,584,394  
(e)
Commonwealth Bank Australia
     0.270    
2/25/2011
       43,831,912       43,831,912  
(e)
Credit Agricole CIB NY
     0.290    
2/3/2011
       42,550,000       42,550,000  
(e)
Credit Suisse NY
     0.250    
1/19/2011
       27,296,588       27,296,588  
(e)
                                   
 
See accompanying notes to schedule of assets on page 26.                                                                                                                                                                                 (Continued)
 
 
- 18 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
 
As of December 31, 2010
 
 
Other Investments, continued
                                  
Description
  
Rate of
Interest
    
Maturity
    
Cost (a)
    
Fair Value
    
Short-Term Money Market Instruments
                                  
Deutsche Bank Ag
     0.468 %  
1/10/2011
     $ 43,100,000     $ 43,100,000  
(e) (f)
Deutsche Bank Securities, Inc. Gov Agcy Repo
     0.220    
1/3/2011
       30,300,000       30,300,000  
(e)
Eksportfinans ASA
     0.230    
1/21/2011
       38,795,042       38,795,042  
(e)
European Investment Bank Global BD
     0.260    
1/5/2011
       28,199,185       28,199,185  
(e)
Goldman Sachs & Co,Gov Agcy Repo
     0.140    
1/3/2011
       96,200,000       96,200,000  
(e)
HSBC Securities (USA) Inc. Gov Agcy Repo
     0.210    
1/3/2011
       80,000,000       80,000,000  
(e)
Intl Bk Recon & Develop
     0.312    
7/13/2011
       17,650,000       17,650,000  
(e) (f)
J.P. Morgan Securities LLC Gov Agcy Repo
     0.180    
1/3/2011
       70,850,000       70,850,000  
(e)
National Australia Bank
     0.370    
7/7/2011
       9,855,968       9,855,968  
(e) (f)
National Australia Bank NY
     0.323    
6/10/2011
       23,050,000       23,050,000  
(e) (f)
Nordea Bank Finland
     0.280    
3/17/2011
       9,900,000       9,900,000  
(e)
Nordea North America
     0.330    
1/6/2011
       36,348,334       36,348,334  
(e)
Rabobank Nederland
     0.290    
1/13/2011
       25,450,000       25,450,000  
(e)
Rabobank Nederland
     0.550    
2/1/2011
       28,801,480       28,801,480  
(e)
Royal Bank of Canada
     0.261    
2/24/2011
       17,150,000       17,150,000  
(e) (f)
Royal Bank of Canada
     0.281    
8/26/2011
       28,750,000       28,750,000  
(e) (f)
Royal Bnk of Scotland
     0.290    
1/20/2011
       35,750,000       35,750,000  
(e)
Societe Generale N Amer
     0.325    
2/7/2011
       22,692,418       22,692,418  
(e)
Societe Generale N Amer
     0.500    
2/1/2011
       27,488,160       27,488,160  
(e)
State Street Corp.
     0.010    
1/3/2011
       154,271       154,271  
(j)
Svenska Handelsbanken NY
     0.270    
2/17/2011
       20,499,731       20,499,731  
(e)
Svenska Handelsbanken NY
     0.300    
2/28/2011
       17,900,284       17,900,284  
(e)
Toronto-Dominion Bnk NY
     0.250    
3/3/2011
       28,000,000       28,000,000  
(e)
UBS Finance Delaware LLC
     0.280    
2/14/2011
       14,994,867       14,994,867  
(e)
Westpac Banking Corporation
     0.310    
4/8/2011
       18,834,255       18,834,255  
(e)
Westpac Banking Corporation
     0.289    
5/13/2011
       31,350,000       31,350,000  
(e)
Fidelity Institutional Money Market
                                  
Government Portfolio (Class I) (b)
                     63,694,068       63,694,068    
Total Short-Term Money Market Instruments
                     1,243,567,111       1,243,567,111    
                                   
 
See accompanying notes to schedule of assets on page 26.                                                                                                                                                                                 (Continued)
 
 
 
- 19 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
 
As of December 31, 2010
 
Other Investments, continued
                                  
Description
  
Rate of
Interest
    
Maturity
    
Cost (a)
    
Fair Value
    
U.S. Treasury and U.S. Government Agency
                                  
Debt Obligations
                                  
Federal Home Loan Bank
     0.010 %  
2/2/2011
     $ 25,796,216     $ 25,796,216  
(e)
Federal Home Loan Bank
     0.010    
2/4/2011
       24,096,244       24,096,244  
(e)
Federal Home Loan Bank
     0.010    
2/16/2011
       18,595,960       18,595,960  
(e)
Federal Home Loan Mortgage Corporation
     0.350    
4/1/2011
       18,511,822       18,511,822  
(e) (f)
Federal Home Loan Mortgage Corporation
     7.000    
4/1/2036
       847,028       937,892  
(h)
Federal Home Loan Mortgage Corporation
     7.000    
11/1/2031
       75,094       80,776  
(h)
Federal Home Loan Mortgage Corporation
     7.000    
4/1/2032
       464,754       496,940  
(h)
Federal Home Loan Mortgage Corporation
     7.000    
4/1/2032
       328,774       351,594  
(h)
Federal Home Loan Mortgage Corporation
     7.000    
6/1/2032
       119,522       127,986  
(h)
Federal Home Loan Mortgage Corporation
     7.000    
10/1/2023
       12,498       13,377  
(h)
Federal Home Loan Mortgage Corporation
     7.500    
1/1/2016
       105,612       107,864  
(h)
Federal Home Loan Mortgage Corporation
     7.500    
1/1/2027
       296,023       318,468  
(h)
Federal Home Loan Mortgage Corporation
     7.500    
1/1/2027
       25,555       27,260  
(h)
Federal Home Loan Mortgage Corporation
     8.000    
5/1/2031
       31,183       34,353    
Federal Home Loan Mortgage Corporation
     8.500    
3/1/2027
       93,478       100,735    
Federal Home Loan Mort.Corp. Non Gold Pool
     9.250    
12/1/2016
       25,880       25,946    
Federal Home Loan Mortgage Corp.REMIC
     6.000    
10/15/2013
       9,976       8,706  
(g) (h)
Federal Home Loan Mortgage Corp REMIC
     6.000    
10/15/2013
       8,494       8,254  
(g) (h)
Federal Home Loan Mortgage Corp REMIC
     1.210    
12/15/2031
       2,607,410       2,653,048  
(f) (h)
Federal National Mortgage Association
     0.010    
1/5/2011
       23,199,304       23,199,304  
(e)
Federal National Mortgage Association
     0.100    
5/25/2018
       28,964       28,400  
(f) (g) (h)
Federal National Mortgage Association
     2.038    
5/1/2033
       1,546,581       1,541,234  
(f)
Federal National Mortgage Association
     2.165    
6/1/2033
       1,489,418       1,496,674  
(f)
Federal National Mortgage Association
     2.231    
6/1/2033
       90,923       90,887  
(f)
Federal National Mortgage Association
     2.430    
6/1/2033
       194,840       197,125  
(f)
Federal National Mortgage Association
     2.435    
12/1/2032
       498,221       505,655  
(f)
Federal National Mortgage Association
     2.537    
5/1/2033
       175,043       177,304  
(f)
Federal National Mortgage Association
     2.540    
6/1/2033
       1,393,207       1,406,580  
(f)
Federal National Mortgage Association
     2.645    
7/1/2033
       197,468       203,847  
(f)
Federal National Mortgage Association
     2.673    
6/1/2033
       390,325       392,161  
(f)
Federal National Mortgage Association
     2.694    
7/1/2033
       2,966,443       3,024,348  
(f)
Federal National Mortgage Association
     2.706    
7/1/2033
       1,142,924       1,158,770  
(f)
Federal National Mortgage Association
     2.806    
6/1/2033
       548,554       554,135  
(f)
Federal National Mortgage Association
     4.500    
6/1/2040
       7,357,143       7,345,845    
 
See accompanying notes to schedule of assets on page 26.                                                                                                                                                                                 (Continued)
 
 
- 20 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
 
As of December 31, 2010
 
Other Investments, continued
                                  
Description
  
Rate of
Interest
    
Maturity
    
Cost (a)
    
Fair Value
    
U.S Treasury and U.S. Government Agency Debt Obligations
                                  
Federal National Mortgage Association
     7.000 %  
2/1/2019
     $ 12,254     $ 12,537  
(h)
Federal National Mortgage Association
     7.000    
3/1/2029
       102,741       112,738  
(h)
Federal National Mortgage Association
     7.000    
6/1/2031
       125,048       134,278  
(h)
Federal National Mortgage Association
     7.000    
10/1/2031
       272,683       300,714  
(h)
Federal National Mortgage Association
     7.000    
1/1/2032
       76,517       82,202  
(h)
Federal National Mortgage Association
     7.000    
2/1/2017
       92,265       96,931  
(h)
Federal National Mortgage Association
     7.000    
3/1/2017
       76,814       79,903  
(h)
Federal National Mortgage Association
     7.000    
3/1/2017
       51,038       53,091  
(h)
Federal National Mortgage Association
     7.000    
4/1/2017
       151,069       157,329  
(h)
Federal National Mortgage Association
     7.000    
4/1/2017
       43,168       44,957  
(h)
Federal National Mortgage Association
     7.000    
3/1/2017
       66,776       69,544  
(h)
Federal National Mortgage Association
     7.000    
4/1/2017
       225,728       237,214  
(h)
Federal National Mortgage Association
     7.000    
3/1/2017
       302,910       318,322  
(h)
Federal National Mortgage Association
     7.000    
5/1/2017
       65,462       68,035  
(h)
Federal National Mortgage Association
     7.000    
7/1/2017
       160,960       167,432  
(h)
Federal National Mortgage Association
     7.000    
7/1/2017
       507,325       528,737  
(h)
Federal National Mortgage Association
     7.000    
5/1/2017
       154,111       159,370  
(h)
Federal National Mortgage Association
     7.000    
10/1/2032
       112,914       120,593  
(h)
Federal National Mortgage Association
     7.000    
4/1/2033
       132,555       141,940  
(h)
Federal National Mortgage Association
     7.000    
11/1/2033
       543,645       580,600  
(h)
Federal National Mortgage Association
     7.000    
3/1/2034
       48,860       52,254  
(h)
Federal National Mortgage Association
     7.000    
6/1/2034
       211,116       227,125  
(h)
Federal National Mortgage Association
     7.000    
1/1/2035
       200,125       215,749  
(h)
Federal National Mortgage Association
     7.000    
1/1/2036
       655,793       718,697  
(h)
Federal National Mortgage Association
     7.000    
5/1/2035
       425,924       458,464  
(h)
Federal National Mortgage Association
     7.000    
5/1/2035
       690,974       744,868  
(h)
Federal National Mortgage Association
     7.000    
4/1/2036
       882,792       971,490  
(h)
Federal National Mortgage Association
     7.000    
4/1/2037
       119,023,216       119,245,475  
(h)
Federal National Mortgage Association
     7.500    
11/1/2022
       38,941       41,988  
(h)
Federal National Mortgage Association
     7.500    
3/1/2023
       40,730       43,351  
(h)
Federal National Mortgage Association
     7.500    
5/1/2026
       48,792       52,929  
(h)
Federal National Mortgage Association
     7.500    
1/1/2025
       292,565       316,006  
(h)
Federal National Mortgage Association
     7.500    
11/1/2021
       56,729       59,700  
(h)
Federal National Mortgage Association
     7.500    
2/1/2031
       156,291       170,538  
(h)
Federal National Mortgage Association
     7.500    
4/1/2016
       46,423       47,794  
(h)
 
See accompanying notes to schedule of assets on page 26.                                                                                                                                                                                 (Continued)
 
 
- 21 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
 
As of December 31, 2010
 
Other Investments, continued
                                  
Description
  
Rate of
Interest
    
Maturity
    
Cost (a)
    
Fair Value
    
U.S. Treasury and U.S. Government Agency Debt Obligations
                                  
Federal National Mortgage Association
     7.500 %  
7/1/2027
     $ 290,287     $ 314,252  
(h)
Federal National Mortgage Association
     7.500    
4/1/2032
       169,890       185,602  
(h)
Federal National Mortgage Association
     7.500    
6/1/2032
       148,260       158,902  
(h)
Federal National Mortgage Association
     7.500    
1/1/2031
       51,981       56,530  
(h)
Federal National Mortgage Association
     7.500    
7/1/2032
       106,937       115,897  
(h)
Federal National Mortgage Association
     7.500    
10/1/2030
       51,986       55,338  
(h)
Federal National Mortgage Association
     7.500    
4/1/2033
       82,083       87,836  
(h)
Federal National Mortgage Association
     7.500    
11/1/2033
       31,555       33,820  
(h)
Federal National Mortgage Association
     7.500    
3/1/2034
       424,731       454,896  
(h)
Federal National Mortgage Association
     7.500    
5/1/2034
       424,873       453,612  
(h)
Federal National Mortgage Association
     7.500    
1/1/2032
       85,945       93,411  
(h)
Federal National Mortgage Association
     8.000    
5/1/2032
       31,533       33,511    
Federal National Mortgage Association
     8.000    
3/1/2032
       229,765       249,112    
Federal National Mortgage Association
     8.000    
11/1/2033
       83,035       88,611    
Federal National Mortgage Association
     8.500    
8/1/2030
       116,085       122,037  
(h)
Federal National Mortgage Association
     8.500    
6/1/2028
       151,753       161,346  
(h)
Federal National Mortgage Association
     8.500    
8/1/2029
       398,844       425,163  
(h)
Federal National Mortgage Association
     9.000    
12/1/2031
       182,514       197,865    
Federal National Mortgage Association
     9.500    
9/1/2021
       79,886       80,667    
Federal National Mortgage Association REMIC
     4.500    
2/25/2040
       22,104,470       22,613,577    
Federal National Mortgage Association REMIC
     5.000    
2/25/2040
       861,270       1,153,142  
(g)
Federal National Mortgage Association REMIC
     5.939    
7/25/2038
       1,768,861       1,778,614  
(f) (g)
Federal National Mortgage Association REMIC
     1.408    
7/25/2044
       1,556,124       990,851  
(g) (h)
Federal National Mortgage Assoc.Whole Loan
     1.083    
11/25/2033
       816,032       875,543  
(g) (h)
Government National Mortgage Association
     6.239    
1/16/2039
       2,252,483       1,793,623  
(f)
Government National Mortgage Association
     7.000    
5/15/2032
       164,089       178,852    
Government National Mortgage Association
     7.000    
11/15/2032
       198,317       213,335    
Government National Mortgage Association
     7.000    
3/15/2031
       185,050       202,060    
Government National Mortgage Association
     7.000    
12/15/2018
       225,500       228,293    
Government National Mortgage Association
     7.000    
11/15/2023
       269,187       287,426    
Government National Mortgage Association
     7.500    
5/15/2031
       125,731       138,054  
(h)
Government National Mortgage Association
     7.500    
3/15/2031
       16,829       18,478  
(h)
Government National Mortgage Association
     7.500    
1/15/2031
       345,565       379,434  
(h)
Government National Mortgage Association
     7.500    
1/15/2031
       53,661       58,920  
(h)
Government National Mortgage Association
     7.500    
9/15/2031
       332,843       365,465  
(h)
 
See accompanying notes to schedule of assets on page 26.                                                                                                                                                                                 (Continued)
 
 
 
- 22 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
 
As of December 31, 2010
 
Other Investments, continued
                                  
                                   
Description
  
Rate of
Interest
    
Maturity
    
Cost (a)
    
Fair Value
    
U.S. Treasury and U.S. Government Agency Debt Obligations, continued
                                  
Government National Mortgage Association
     7.500 %  
7/15/2031
     $ 284,581     $ 312,474  
(h)
Government National Mortgage Association
     7.500    
12/15/2018
       228,041       230,019  
(h)
Government National Mortgage Association
     7.500    
12/15/2012
       46,684       45,680  
(h)
Government National Mortgage Association
     9.000    
11/15/2017
       57,072       53,567    
U.S. Treasury Bill
     0.010    
1/13/2011
       116,994,930       116,994,507  
(e)
U.S. Treasury Bill
     0.010    
2/10/2011
       95,986,933       95,986,606  
(e)
U.S. Treasury Bill
     0.130    
2/17/2011
       139,976,239       139,975,732    
U.S. Treasury Bill
     0.130    
2/17/2011
       42,992,702       42,992,702  
(e)
U.S. Treasury Note
     0.375    
9/30/2012
       124,712,869       124,875,710  
(h)
U.S. Treasury Note
     0.625    
6/30/2012
       74,878,572       75,105,403  
(h)
U.S. Treasury Note
     0.875    
2/28/2011
       27,525,455       27,525,455    
U.S. Treasury Note
     0.875    
3/31/2011
       14,623,324       14,623,324    
U.S. Treasury Note
     0.875    
4/30/2011
       21,694,679       21,694,679    
U.S. Treasury Note
     1.000    
7/31/2011
       28,529,176       28,529,176    
Total U.S. Government and Agency Debt Obligations
                     982,315,347       984,037,714    
                                   
                                   
Commercial Mortgage-Backed and Asset-Backed Securities
                                  
Ally Master Owner Trust
     2.010    
1/15/2015
       9,185,625       9,163,107  
(f)
Bank of America Commercial Mortgage
     5.165    
9/10/2047
       2,943,680       2,934,839  
(f)
Bank of America Large Loan Inc.
     0.370    
10/15/2019
       5,994,777       6,031,935  
(f) (h)
Bear Stearns
     5.512    
4/12/2038
       725,383       717,338  
(h)
Bear Stearns
     6.460    
10/15/2036
       4,256,464       4,195,059  
(h)
BMW Vehicle Lease Trust
     0.960    
1/15/2014
       4,749,525       4,749,134    
Cabela’s Master Credit Card Trust
     2.290    
9/17/2018
       3,748,463       3,682,455    
Capital One Multi – Asset Execution Trust
     0.540    
1/15/2019
       9,036,875       9,051,190  
(f)
Citigroup Commercial Mortgage Trust
     0.330    
4/15/2020
       9,379,663       9,762,291  
(f)
Commercial Mortgage Pass Through Certification
     0.360    
12/15/2020
       7,432,977       8,241,190  
(f) (h)
Ford Credit Auto Owner Trust
     4.500    
7/15/2014
       421,969       424,970    
Ford Credit Floorplan Master
     2.910    
12/15/2014
       9,248,906       9,183,600  
(f)
Ford Credit Floorplan Master
     4.200    
2/15/2017
       2,386,398       2,322,892    
Greenwich Capital Commercial Funding Corp
     5.597    
12/10/2049
       3,013,711       3,141,041  
(h)
Hertz Vehicle Financing LLC
     2.600    
2/25/2015
       3,499,005       3,531,092    
                                   
 
See accompanying notes to schedule of assets on page 26.                                                                                                                                                                                 (Continued)
 
 
- 23 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
 
As of December 31, 2010
 
Other Investments, continued
                                  
                                   
Description
  
Rate of
Interest
    
Maturity
    
Cost (a)
    
Fair Value
    
Commercial Mortgage-Backed and Asset-Backed Securities
                                  
Hertz Vehicle Financing LLC
     4.260 %  
3/25/2014
     $ 579,290     $ 601,666    
Hertz Vehicle Financing LLC
     5.290    
3/25/2016
       20,644,562       22,190,153  
(h)
Honda Auto Receivables Owner Trust
     3.300    
9/15/2015
       3,599,347       3,739,802  
(h)
JP Morgan Chase Comm Mort Securities Corp.
     3.853    
6/15/2043
       10,003,746       10,145,712    
Lehman Brothers Flting Rate Comm MortTrust
     0.560    
6/15/2022
       6,577,450       7,072,733  
(f) (h)
Navistar Financial Corp. Owner Trust
     2.600    
4/20/2015
       2,999,608       2,981,210    
Navistar Financial Corp. Owner Trust
     4.080    
3/19/2018
       999,844       984,482    
New York City Tax Lien
     1.680    
1/10/2024
       741,199       740,652    
Nissan Auto Receivables Owner Trust
     1.310    
9/15/2016
       6,998,819       6,954,827    
Nissan Auto Receivables Owner Trust
     4.740    
8/17/2015
       2,118,594       2,119,544    
Nissan Master Owner Trust Receivables
     1.410    
1/15/2015
       11,014,375       11,124,209  
(f) (h)
Silverstone Master Issuer PLC
     1.684    
1/21/2055
       9,750,000       9,759,837  
(f)
Vendee Mortgage Trust
     0.384    
4/15/2040
       539,868       610,160  
(g)
Vendee Mortgage Trust (Class IO)
     0.856    
05/15/2033
       2,063,362       2,600,538  
(g) (h)
Vendee Mortgage Trust (Series 1996)
     0.215    
10/15/2026
       189,798       187,314  
(g)
Wachovia Bank Commercial Mortgage Trust
     5.204    
10/15/2044
       24,760,938       24,858,080  
(f)
Total Commercial Mortgage-Backed and
                                  
Asset-Backed Securities
                     179,604,221       183,803,052    
                                   
 
U.S. Savings Bonds - Held in trust
  
Units
    
Cost (a)
    
Fair Value
    
1981 U.S. Savings Bond EE Series
     3,411       170,550       984,120    
1982 U.S. Savings Bond EE Series
     3,650       182,500       992,223    
1983 U.S. Savings Bond EE Series
     6,257       312,850       1,344,804    
1984 U.S. Savings Bond EE Series
     7,462       373,100       1,482,842    
1985 U.S. Savings Bond EE Series
     10,817       540,850       2,066,101    
1986 U.S. Savings Bond EE Series
     37,510       1,875,500       6,776,399    
1987 U.S. Savings Bond EE Series
     39,716       1,985,800       6,302,126    
1988 U.S. Savings Bond EE Series
     44,980       2,249,000       6,860,133    
1989 U.S. Savings Bond EE Series
     63,479       3,173,950       9,305,564    
1990 U.S. Savings Bond EE Series
     65,759       3,287,950       9,262,317    
1991 U.S. Savings Bond EE Series
     67,488       3,374,400       9,140,099    
1992 U.S. Savings Bond EE Series
     98,270       4,913,500       12,785,079    
1993 U.S. Savings Bond EE Series
     72,256       3,612,800       7,571,539    
1994 U.S. Savings Bond EE Series
     59,871       2,993,550       5,752,408    
 
See accompanying notes to schedule of assets on page 26.                                                                                                                                                                                 (Continued)
 
 
- 24 -
 
 
GE SAVINGS AND SECURITY PROGRAM
 
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
 
As of December 31, 2010
 
Other Investments, continued
                          
                           
Description
                          
U.S. Savings Bonds - Held in trust
  
Units
    
Cost (a)
    
Fair Value
    
1995 U.S. Savings Bond EE Series
     21,565       1,078,250       1,979,467    
1996 U.S. Savings Bond EE Series
     86       4,300       7,115    
1997 U.S. Savings Bond EE Series
     186       9,300       15,339    
1998 U.S. Savings Bond EE Series
     270       13,500       21,350    
1999 U.S. Savings Bond EE Series
     433       21,650       32,698    
2000 U.S. Savings Bond EE Series
     654       32,700       46,975    
2001 U.S. Savings Bond EE Series
     804       40,200       54,827    
2002 U.S. Savings Bond EE Series
     956       47,800       62,349    
2003 U.S. Savings Bond EE Series
     1,622       81,100       102,187    
2004 U.S. Savings Bond EE Series
     2,526       126,300       154,714    
2005 U.S. Savings Bond EE Series
     3,365       168,250       201,803    
2006 U.S. Savings Bond EE Series
     4,486       224,300       259,580    
2007 U.S. Savings Bond EE Series
     6,383       319,150       355,741    
2008 U.S. Savings Bond EE Series
     7,412       370,600       386,976    
2009 U.S. Savings Bond EE Series
     13,319       665,950       673,379    
2010 U.S. Savings Bond EE Series
     18,614       930,700       930,700    
              33,180,350       85,910,954    
                           
U.S. Savings Bonds - Held in custody
                          
2007 U.S. Savings Bond EE Series
     254       12,700       14,170    
2008 U.S. Savings Bond EE Series
     167,641       8,382,050       8,787,011    
2009 U.S. Savings Bond EE Series
     176,158       8,807,900       8,920,602    
2010 U.S. Savings Bond EE Series
     169,962       8,498,100       8,498,100    
              25,700,750       26,219,883    
Total U.S. Savings Bonds
             58,881,100       112,130,837    
                           
                           
Total Other Investments
             2,464,367,779       2,523,538,714    
                           
Total Investments
             19,953,147,112       19,201,211,560    
                           
 
See accompanying notes to schedule of assets on page 26.                                                                                                                                                                                 (Continued)
 
 
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GE SAVINGS AND SECURITY PROGRAM
 
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
 
As of December 31, 2010
 
Notes Receivable from Participants
  
Rate of
Interest
    
Maturity
    
Cost (a)
    
Fair Value
    
                                   
Various (57,633 notes receivables) (i)
     5.04 - 10.5 %  
1 month -
15 years
       —     $ 378,591,409    
                                   
Total Notes Receivable from Participants
                     —       378,591,409    
                                   
Total Assets (Held at End of Year)
                   $ 19,953,147,112     $ 19,579,802,969    



Notes to Schedule of Assets:
(a)
Cost of securities is the price at which underlying shares in the investment options were purchased, including shares purchased with reinvested interest and dividends.  In addition, cost of securities includes gains and losses on realized participant investment switches and is decreased for withdrawals on an average cost basis by individual participant.
(b)
Funds managed by an affiliate of FMTC.
(c)
Funds managed by GEAM, a wholly owned subsidiary of the Company.
(d)
GE Cash Plus Fund is a holding of the Short Term Fund.
(e)
Rate of interest is based on computed effective yield.
(f)
Variable or floating rate security. The stated rate represents the rate at December 31, 2010.
(g)
Interest only security. These securities represent the right to receive the monthly interest payments on an underlying pool of mortgages.  Payments of principal on the pool reduce the value of the “interest only” holding.
(h)
At December 31, 2010, all or a portion of this security was pledged to cover collateral requirements for futures.
(i)
Represents a party-in-interest to the Plan.
(j)
State Street Bank and Trust Company is one of the custodians of the Plan.  In addition, State Street Bank and Trust Company also serves as accounting agent for some of the Plan’s investment options.



See accompanying Report of Independent Registered Public Accounting Firm.
 
 
 
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