Registration number: 367997
GE Capital UK Funding Unlimited Company
Directors' report and audited financial statements
Financial year ended 31 December 2024
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Directors’ report and audited Financial Statements
Contents
Directors and other information 1 - 2
Directors’ report 3 - 10
Statement of Directors’ responsibilities in respect of the Financial Statements 11 - 12
Independent auditor’s report 13 - 21
Statement of Comprehensive Income 22
Statement of Financial Position 23 - 24
Statement of Changes in Equity 25
Cash Flow Statement 26
Notes to the Financial Statements 27 - 71
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Directors and other information
Directors
F. Mullin (resigned 20 March 2024)
T. Geary (resigned 14 March 2025)
M. Power (resigned 14 March 2025)
S. Pounch (resigned 20 March 2024)
K. Lynch
S. O'Connor
D Redmond
J. Connor
Secretary
H. McAneny
Registered office
86-88 Lower Leeson Street
Dublin 2
D02 A668
Ireland
Independent auditor
Deloitte Ireland LLP
Chartered Accountants and Statutory Audit Firm
Deloitte & Touche House
29 Earlsfort Terrace
Dublin 2
Ireland
Principal bankers
Barclays Plc
1 Churchill Place
London
E14 5HP
England
JP Morgan Chase & Co.
1 Chase Manhattan Plaza
New York, 10005
United States
BNP Paribas
16, Boulevard des Italiens
Paris, 75009
France
1
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Directors and other information (continued)
Solicitor
A&L Goodbody
3 Dublin Landings, North Wall Quay
International Financial Services Centre
Dublin 1
D01C4E0
Ireland
2
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Directors’ report
The Directors present their annual report and audited Financial Statements (the “Financial Statements”) for the
financial year ended 31 December 2024.
Principal activities, business review and future developments
GE Capital UK Funding Unlimited Company (the “Company”) is incorporated and tax resident in Ireland and
operates as a financial services Company.
The Company is a public unlimited company and a wholly owned subsidiary of General Electric Company, which
operates as GE Aerospace ('GE Aerospace'), a global aerospace leader with the industry's largest and growing
commercial propulsion fleet.
The Company has established a Great British Pound (“GBP”) Commercial Paper (“Commercial Paper” or “CP”)
Programme and a GBP Medium Term Note (“MTN”) Programme (referred as debt securities issued in the notes to
the accounts). The MTN is listed on the London Stock Exchange. The purpose of these programmes is to obtain
financing in capital markets, to fund the operations of GE Aerospace affiliates. GE Capital International Holdings
Limited (“GECIHL”), has guaranteed (assigned from General Electric Capital Corporation ‘GECC’, which now
operates as part of GE Aerospace) the CP and MTN programmes of the Company, thus reducing the risk to any
potential investor and supporting the CP and MTN programme. GE Aerospace (rated BBB+), has also guaranteed
the CP and MTN programmes of the Company thus reducing further the risk to any potential investor and
supporting the CP and MTN programmes (See Note 18). During the year the Company had no requirement for
excess cash and as a result did not participate in the CP market. The Company will continue in business for the
foreseeable future to service existing MTN programmes.
The Directors have determined a number of metrics including total assets and the results of the Company to be key
performance indicators. The total assets for the year are set out in the Statements of Financial Position on page 23.
The results for the year are set out in the Statement of Comprehensive Income (‘SOCI’) on page 22 and the related
notes.
The results before taxation of the Company are a profit of USD 2 million for the financial year ended 31 December
2024 (2023: loss of USD 6 million), primarily driven by foreign exchange ('FX') gain USD 3 million (2023: loss
USD 26 million) as a result of the GBP/USD FX rate decreasing from 1.275 as at 31 December 2023 to 1.252 as at
31 December 2024 (2023: FX rate increases from 1.209 as at 31 December 2022 to 1.275 as at 31 December 2023).
The decrease of USD 439 million (2023: decrease USD 1,124 million) in total assets is primarily driven by
repayment received on amounts owed by GE Aerospace affiliates which were used to repay amounts owed to GE
Aerospace affiliates. During the financial year, no fixed rate debt matured (See Note 18) and no debt failed hedge
effectiveness (2023: fixed rate debt matured with a nominal value of USD 478 million and no debt failed hedge
effectiveness).
On 9 November 2021, General Electric Company announced that it would form three global listed companies that
are intended to be run independently and focus on the aerospace, healthcare, and energy segments. On 3 January
2023, GE completed the separation of its healthcare business into an independent publicly traded company, GE
HealthCare Technologies Inc. (GE HealthCare), and on 2 April 2024, GE completed the separation of its GE
Vernova business into an independent publicly traded company, GE Vernova, Inc. (GE Vernova).
As a result of the spin off, the Company is now part of GE Aerospace. The spin-off has had no direct impact on this
entity. The Directors are not expecting a change in the principal activity of the Company in the foreseeable future.
3
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Directors’ report (continued)
Dividends
The Directors do not propose a dividend for the financial year (2023: USD 700,000,000).
Going concern
The future growth of the Company is dependent on the cash needs of the GE Aerospace after spin off. The Directors
have assessed the loan receivable positions and have concluded that the balances remain recoverable. GE Aerospace
does not expect the need for new long-term debt issuances by the Company for the foreseeable future with the
expectation that the current MTN portfolio remains until maturity. The CP programme continues presently albeit no
CP is in issue at year end. The Company has access to the cash pool should it be required. As noted above the debt
issued by the Company through its CP and MTN arrangements is guaranteed by GE Aerospace and GECIHL.
The Directors have performed a going concern assessment for a period of 12 months from the date of approval of
these financial statements, also considering events reasonably foreseeable beyond this horizon, which indicates that,
taking account of the inflationary impacts in the economy and in light of the Company’s ability to access the GE
Aerospace cash pool facility if required, the Company will have sufficient funds to meet its liabilities as they fall
due for that period.
The Directors are confident that the Company will have sufficient funds to continue in operational existence for at
least 12 months from the date of approval of these financial statements and they continue to adopt the going concern
basis of accounting in preparing the annual financial statements.
Accordingly, the Directors have also considered the below among other factors in concluding that it remains
appropriate to prepare the Financial Statements on a going concern basis:
• The Company has substantial positive equity and it is a member of a GE Aerospace operated cash pool
arrangement, connected to the GE Aerospace's U.S. cash pool, therefore has the resources to continue in business.
• GE Aerospace does not expect the need for new long-term debt issuances by the Company for the foreseeable
future.
• GECIHL has guaranteed the Company’s liabilities under its CP and MTN programmes, substantially mitigating
liquidity risk.
• GE Aerospace has also guaranteed the Company’s liabilities under its CP and MTN programmes, substantially
mitigating liquidity risk.
CP and MTN
The following table sets out the year on year increase/(decrease) in MTNs issued, lending from GE Aerospace
affiliates and lending to GE Aerospace affiliates. The Company did not participate in the CP market during the
financial year. The Directors define GE Aerospace affiliates to be subsidiaries, associates and joint ventures of GE
Aerospace. The table has been calculated using the closing Company balances as at the financial year end.
4
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Directors’ report (continued)
CP and MTN (Continued)
Dec 2024 Dec 2023
Year on year increase / (decrease)
Liabilities
Issued Medium Term Notes (Nominal) (1.8)% (29.2)%
Loans from GE Aerospace affiliates (85.6)% 1.4%
Assets
Loans to GE Aerospace affiliates (21.2)% (35.1)%
The movement in MTN of USD 18 million is attributable to an FX loss, driven by the decrease of GBP/USD foreign
exchange rate from 1.275 as at 31 December 2023 to 1.252 as at 31 December 2024 (2023: the movement in MTN is
driven by the debt maturity of USD 478 million, offset by the FX gain USD 66 million).
The movement in loans to/from GE Aerospace affiliates is discussed in the principal activities, business review and
future developments section.
The following table sets out the weighted average maturities of MTN in issue at 31 December 2024 and 31
December 2023. The latest maturity date on the MTN is 2039.
31 December 2024 31 December 2023
Medium Term Notes (fixed) in qualifying hedging relationships 9.02 years 10.02 years
Principal risk and uncertainties
The Company is subject to general economic risk including changes in macroeconomic and market conditions and
market volatility.
The main financial risks that the Company is exposed to are market risk, liquidity risk and credit risk. The Directors
are responsible for the oversight of policies to manage these exposures, as set out in Note 14.
Foreign exchange risk
The Company has exposure to foreign exchange risk. This risk arose as some operations including loans and
advances to GE Aerospace affiliates and all debt securities issued are in GBP while the functional currency of the
Company is USD. During the financial year, the Company recorded an FX gain of USD 3 million (31 December
2023: loss of USD 26 million) driven by movement in the GBP/USD rates.
Interest rate risk
As a funding Company, it is exposed to interest rate volatility on variable funding arrangements. Through the use of
derivatives, the Company was generally able to reduce interest rate mis-matches and in so doing reduce their interest
rate risk. The Directors continue to monitor interest rate exposure. See Note 14 for an analysis of interest rate
exposure at the financial year end.
5
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Directors’ report (continued)
Principal risk and uncertainties (continued)
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations from its financial
liabilities. The Company has access to the cash pool of GE Aerospace to fill any short-term liquidity requirements
and to meet undrawn loan commitments. See further analysis of liquidity risk at the financial year end at Note 14.
Market risk
The carrying value of financial assets and financial liabilities may change due to interest rate volatility, credit spread
changes and general market conditions. In an effort to ensure appropriate valuations were obtained, the Company
relied on independent pricing providers such as International Data Corporation ("IDC") and models used by GE
Aerospace, which primarily use observable market data as inputs. Such valuations necessarily involve judgements
and uncertainties on the selection of the inputs. Significant judgements and uncertainties surrounding valuations are
discussed further in Note 3.
Credit risk
GE Aerospace affiliates may experience difficulty in repaying loans. By carrying out comprehensive due diligence
on each borrower the Company has been able to manage its exposure to credit risk and the Company experienced no
defaults during the financial year (2023: no defaults). The closing impairment loss allowance at 31 December 2024
was USD 2.9 million (2023: USD 3.8 million) for the Company, please see Note 14 for further details. The Directors
will continue to monitor the financial strength of its borrowers to ensure the Company’s exposure to the risk of
default is minimized.
Operational risk
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the
Company’s processes, personnel, technology and infrastructure, and from external factors other than credit, market
and liquidity risks such as those arising from legal requirements and generally accepted standards of corporate
behaviour. Operational risk arises from all of the Company’s operations and is similar to those faced by all business
entities.
The Company seeks to manage operational risk, so as to balance the avoidance of financial losses and damage to the
Company’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and
creativity. The Directors are responsible for the development and implementation of controls to address operational
risk.
This responsibility is supported by the development of overall GE Aerospace standards for the management of
operational risk in the following areas:
• requirements for appropriate segregation of duties, including the independent authorisation of transactions;
• requirements for the reconciliation and monitoring of transactions;
• compliance with legal requirements;
• documentation of controls and procedures;
• requirements for the periodic assessment of operational risks faced, and the adequacy of controls and procedures
to address the risks identified;
• training and professional development; and
• ethical and business standards.
6
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Directors’ report (continued)
Principal risk and uncertainties (continued)
Compliance with the Company standards is supported by a programme of periodic reviews to ensure compliance
with GE Aerospace's risk management policies.
The Directors review the development, selection and disclosure of the Company’s critical accounting policies and
estimates, and the application of these policies and estimates.
Directors, Secretary and their interests
The Directors who served during the year and up to the date of signing the directors report were Sarah O'Connor,
David Redmond, Keith Lynch and John Connor listed on page 1. Fergal Mullin and Shane Pounch resigned as
Directors effective from 20 March 2024. In accordance with the Articles of Association, the Directors are not
required to retire by rotation.
The Secretary is Helena McAneny listed on page 1.
In accordance with the Companies Act 2014, as none of the Directors or secretary holds a disclosable interest
(representing shares in the Company of 1 percent or more in nominal value of GE Aerospace’s issued share capital)
in the shares of GE Aerospace or any GE Aerospace affiliates, there is no requirement to disclose their
shareholdings.
Accounting records
The Directors have reasonable grounds to believe that they have complied with the requirements of Sections 281 to
285 of the Companies Act 2014 with regard to the keeping of adequate accounting records by utilising accounting
personnel with appropriate expertise and by providing adequate resources to the finance function. The accounting
records of the Company are maintained at 86-88 Lower Leeson Street, Dublin 2, D02 A668, Ireland.
Corporate governance statement
The Directors have put in place a framework for corporate governance which it believes is suitable for the Company
and which enables the Company to operate in an environment of good governance throughout the financial year.
The Company's internal control procedures are designed to safeguard the Company's net assets, support effective
management of the Company's resources and provide reliable and timely financial reporting both internally to
management and to those charged with governance, and externally to other stakeholders. They include the
following:
- An organisational structure with formally defined lines of responsibility and delegation of authority.
- Established systems and procedures to identify, control and report on principal risks. Exposure to these risks are
monitored by the Directors.
7
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Directors’ report (continued)
Corporate governance statement (continued)
The preparation and issue of financial reports, including the Company Financial Statements is managed by the
finance function with oversight from the Directors. The Company's financial reporting process is controlled using
documented accounting policies and reporting formats issued by the finance function to all reporting entities
(including subsidiaries) within GE Aerospace in advance of each reporting year end. The finance function of GE
Aerospace supports all reporting entities with guidance in the preparation of financial information. The process is
supported by a network of finance professionals throughout GE Aerospace, who have responsibility and
accountability to provide information in keeping with agreed policies, including the completion of reconciliations of
financial information to processing systems. Its quality is underpinned by arrangements for the segregation of duties
to facilitate independent checks on the integrity of financial data. The financial information for each entity is subject
to a review at reporting entity level by senior management. The Company’s risk management policies are based on
the policies of the ultimate parent GE Aerospace and are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.
As the Company has only debt securities listed on the London Stock Exchange, it has availed of an exemption from
the Financial Services Authority’s requirements to make corporate governance disclosures and from auditor review
thereof. The Company does not have transferrable securities as defined by S.I. No. 255/2006 - European
Communities (Takeover Bids (Directive 2004/25/EC)) Regulations 2006 (“Takeover Bids Regulations”) and
therefore the Company is not required to include in its Corporate Governance Statement the disclosures required by
Section 21 thereof.
Financial reporting
The Company is responsible for establishing and maintaining adequate internal control and risk management
systems in relation to the financial reporting process. Such systems are designed to manage rather than eliminate the
risk of error or fraud in achieving the Company’s financial reporting objectives and can only provide reasonable and
not absolute assurance against material misstatement or loss.
The Company is responsible for keeping adequate accounting records which disclose with reasonable accuracy at
any time the financial position of the Company and which enable it to ensure that the Financial Statements are
prepared in accordance with International Financial Reporting Standards as adopted by the European Union (E.U.)
and comply with the Irish Companies Act 2014.
The measures taken by the Directors to secure compliance with the Company’s obligation to keep adequate
accounting records are the use of appropriate systems and procedures and the employment of competent persons.
The Company has procedures in place to ensure all relevant accounting records are properly maintained and are
readily available, including production of annual Financial Statements. The statutory Financial Statements of the
Company are required to be approved by the Directors of the Company and filed with the London Stock Exchange
and the Companies Registration Office. The statutory Financial Statements are required to be audited by
independent auditor. The Directors evaluate and discuss significant accounting and reporting issues as the need
arises.
8
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Directors’ report (continued)
Corporate governance statement (continued)
Shareholder meetings
The convening and conduct of shareholder meetings are governed by the Articles of Association of the Company
and the Companies Act 2014. The Company is required to hold an annual general meeting each year and not more
than fifteen months may elapse between the date of one annual general meeting of the Company and that of the next.
The Directors may call general meetings and extraordinary general meetings may be convened in such manner as
provided by the Companies Act 2014.
Subject to the provisions of the Companies Act 2014 allowing a general meeting to be called by shorter notice, an
annual general meeting and a general meeting called for by the passing of a special resolution will be called by at
least twenty-one clear days’ notice.
Composition and operation of the Board
The Directors have established an on-going process for identifying, evaluating and managing the significant risks
faced by the Company. This risk management process is regularly reviewed by the Directors. The Directors review
the internal audit programmes and the Financial Statements and there are formal procedures in place for the internal
auditor to report findings and recommendations to the Directors. Any significant findings or identified risks are
examined so that appropriate action can be taken.
The business of the Company is managed by the Directors. They exercise all powers of the Company, except those
that the Companies Act 2014 or the Articles of Association require to be exercised by the shareholders in a general
meeting. Unless otherwise determined by the shareholders in a general meeting, the number of Directors shall not be
less than two. At year end the Board of Directors of the Company is composed of six Directors, being those listed on
page 1 of these Directors' report and audited financial statements.
The Directors may meet together for the dispatch of business, adjourn and otherwise regulate their meetings as they
think fit. The quorum necessary for the transaction of the business of the Directors may be fixed by the Directors
and unless so fixed at any other number will be two. Matters arising at any meeting of the Directors are determined
by a majority of votes. A Director may, and the Company’s secretary on the request of a Director will, at any time
call a meeting of the Directors.
Audit committee
The Company had established a committee of the Board of Directors, the Audit Committee since 15 March 2017. As
the external debts for the Company are no listed on the regulated markets in European Economic Area (EEA) during
the year, the requirement to have an audit committee and non-executive directors to sit on the audit committee under
the 2018 Regulations falls away. The Audit Committee is disbanded and dissolved effective of 31 December 2024.
Going forward, The Audit Committee of the board of directors of GE Aerospace assists the board in its oversight of
the integrity of the financial statements compliance with legal and regulatory requirements, of the independence and
qualifications of the independent auditor and of the performance of the internal audit function and independent
auditor. The Company is included within the oversight of that GE Aerospace Audit Committee. The Company is
also subject to the oversight of the GE Aerospace internal audit function and included within its risk assessment and
audit programme.
9
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Directors’ report (continued)
Subsequent events
Thomas Geary and Michael Power resigned as non-executive Directors effective from 14 March 2025.
No other significant events affecting the Company occurred since the reporting date, which require adjustment to or
disclosure in the Financial Statements.
Disclosure of information to the auditor
The Directors who held office at the date of approval of this Directors’ report confirm that, so far as they are each
aware, there is no relevant audit information of which the Company’s auditor is unaware; and each Director has
taken all of the steps that he/she ought to have taken as a Director to make himself/herself aware of any relevant
audit information and to establish that the Company’s auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 330 of the
Companies Act 2014.
Independent Auditor
In accordance with Section 383(2) of the Companies Act 2014, the auditor, Deloitte Ireland LLP, Chartered
Accountants and Statutory Audit Firm will continue in office.
On behalf of the board
K. Lynch S. O'Connor
Director Director
Date
10
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
23 April 2025
GE Capital UK Funding Unlimited Company
Statement of Directors’ responsibilities in respect of the Financial Statements for the financial
year ended 31 December 2024
The Directors are responsible for preparing the directors report and financial statements, in accordance with
applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law they have
elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS
Accounting Standards) as adopted by the European Union (EU).
Under company law the Directors must not approve the financial statements unless they are satisfied that they give a
true and fair view of the assets, liabilities and financial position of the Company and of its profit or loss for that year.
In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable Accounting Standards have been followed, subject to any material departures disclosed
and explained in the financial statements;
• assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern; and
• use the going concern basis of accounting unless they either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at
any time the assets, liabilities, financial position and profit or loss of the Company and enable them to ensure that
the financial statements comply with the Companies Act 2014. They are responsible for such internal controls as
they determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably
open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities. The
Directors are also responsible for preparing a directors' report that complies with the requirements of the Companies
Act 2014.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included
on the Company’s website. Legislation in the Republic of Ireland governing the preparation and dissemination of
financial statements may differ from legislation in other jurisdictions.
Responsibility Statement in accordance with the UK Financial Conduct Authority's Transparency Rules
Each of the Directors whose names are listed on page 1 of these Financial Statements confirm that, to the best of
each person’s knowledge and belief:
• the Financial Statements, prepared in accordance with IFRS Accounting Standards as adopted by the EU, give a
true and fair view of the assets, liabilities and financial position of the Company at 31 December 2024 and its
profit for the financial year then ended; and
• the Directors’ report includes a fair review of the development and performance of the business and the position
of the Company, together with a description of the principal risks and uncertainties that it faces.
11
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Statement of Directors’ responsibilities in respect of the Financial Statements for the financial
year ended 31 December 2024 (continued)
On behalf of the Board
K. Lynch S. O'Connor
Director Director
Date
12
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
23 April 2025
Continued on next page/
Deloitte Ireland LLP
Chartered Accountants &
Statutory Audit Firm
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
GE CAPITAL UK FUNDING UNLIMITED COMPANY
Report on the audit of the financial statements
Opinion on the financial statements of GE Capital UK Funding Unlimited Company (the ‘company’)
In our opinion the financial statements:
give a true and fair view of the assets, liabilities and financial position of the company as at 31 December 2024 and of the
profit for the financial year then ended; and
have been properly prepared in accordance with the relevant financial reporting framework and, in particular, with the
requirements of the Companies Act 2014.
The financial statements we have audited comprise:
the Statement of Comprehensive Income;
the Statement of Financial Position;
the Statement of Changes in Equity;
the Cash Flow Statement; and
the related notes 1 to 25, including material accounting policy information as set out in note 2.
The relevant financial reporting framework that has been applied in their preparation is the Companies Act 2014 and IFRS Accounting
Standards as issued by the International Accounting Standards Board (IASB) and as adopted by the European Union (“the relevant
financial reporting framework”).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (Ireland) (ISAs (Ireland)) and applicable law. Our
responsibilities under those standards are described below in the “Auditor's responsibilities for the audit of the financial statements”
section of our report.
We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial
statements in Ireland, including the Ethical Standard issued by the Irish Auditing and Accounting Supervisory Authority (IAASA), as
applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Summary of our audit approach
Key audit matters
The key audit matters that we identified in the current year were:
Application of Hedge Accounting
Recoverability of Loans and Advances to GEC Aerospace Affiliates – Expected Credit Loss
Provisioning
Within this report, any new key audit matters are identified with and any key audit matters which
are the same as the prior year identified with .
Materiality
The materiality that we used in the current year was $4,316k which was determined on the basis of
1% of Net Assets.
Scoping
We determined the scope of our audit by obtaining an understanding of the company and its
environment, including the identification of relevant controls. We designed our audit by determining
materiality and assessing the risks of material misstatement in the financial statements. As part of
our risk assessment, we assessed the control environment in place to the extent relevant to our
/Continued from previous page
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
GE CAPITAL UK FUNDING UNLIMITED COMPANY
Continued on next page/
audit. The risks of material misstatement that have the greatest effect on our audit are identified as
key audit matters in the “Key Audit Matters” section of our report.
Significant changes in
our approach
No significant changes in our approach from prior year.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the company’s ability to continue to adopt the going concern basis of accounting
included:
Obtaining an understanding of the Company’s business model, objectives, strategy and related business risks, how the
Company is structured and financed;
Reviewing of the Company’s financial performance, including forecasts, future cash flows, and management’s budgeting
processes;
Challenging the reasonableness of the key assumptions applied by the directors in their assessment;
Held discussions with management on the directors’ going concern assessment, the future plans for the Company and the
feasibility of those plans;
Reviewed all board meeting minutes during the period up to the date of approval of the financial statements, for evidence
of any discussions and/or decisions that could impact the Company’s ability to continue as a going concern;
Reviewed the cash pool agreements and guarantee’s from GECIHL and GEC to the Company;
Reviewed the Company activity subsequent to the financial year end; and
Assessed the adequacy of the relevant going concern disclosures made in the financial statements.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least
twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of
this report.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current financial year and include the most significant assessed risks of material misstatement (whether or not due
to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the
audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Application of Hedge Accounting
Key audit matter
description
As of 31 December 2024, the fair value of derivatives held for risk management were:
Derivatives held for risk management in qualifying hedging relationships was net $(39,768)k
(2023: $12,519k).
/Continued from previous page
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
GE CAPITAL UK FUNDING UNLIMITED COMPANY
Continued on next page/
As of 31 Decemeber 2024, the carrying value of the hedged item was:
Debt securities issued was
$(1,112,829k)
(2023: $1,256,354k)
This is a key audit matter as there is a risk that the incorrect application of IAS 39 hedge accounting
rules and the valuation of underlying derivatives, including any valuation adjustments, could lead to a
material misstatement in the financial statements.
Please refer to note 2 (Material accounting policy information - Derivatives held for risk management
purposes and hedge accounting), note 14 (Financial risk management), note 16 (Financial assets and
liabilities) and note 18 (Debt securities issued) in the financial statements.
How the scope of our
audit responded to the
key audit matter
The procedures we performed, included:
In relation to the application of IAS 39 hedge acccounting and in conjunction with our internal
valuation specialists:
We independently assessed the eligibility of the hedge designation by reviewing the hedge
accounting policy.
Furthermore, we reviewed the hedge effectiveness testing to ensure the approach is in line
with the requirements of IAS 39.
We assessed the fair value adjustment to the hedged item as part of our assessment.
We reviewed the classification and adequacy of relevant disclosures in the financial
statements to ensure compliance with IFRS.
With respect to the valuation of derivatives:
We independently valued a sample of derivatives based on the terms of the underlying
contracts and compared to the valuations recorded by the company.
We also reviewed the classification and adequacy of relevant disclosures in the financial statements in
accordance with the IFRS.
Recoverability of Loans and Advances to GEC Aerospace Affiliates – Expected Credit Loss Provisioning
Key audit matter
description
As of 31 December 2024, the company holds US $2,889k (2023: $3,845k) of expected credit losses
against:
Non-current assets: US $979,877k (2023: US $997,483k) of loans and advances to GE
Aerospace affiliates.
Current assets: US $661,202k (2023: US $1,086,277k) of loans and advances to GE Aerospace
affiliates.
In line with IFRS 9- Financial Instruments, losses on financial assets which are classified at amortised
cost are recognised on an Expected Credit Loss (“ECL”) basis. ECLs are required to incorporate
forward looking information, reflecting management’s view of potential future economic
/Continued from previous page
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
GE CAPITAL UK FUNDING UNLIMITED COMPANY
Continued on next page/
environments.
The complexity involved in the ECL calculations requires management to develop methodologies
involving the use of significant judgements.
Measurement of the ECL allowance on loans and advances to GEC affiliates is considered a key audit
matter as the determination of assumptions for ECLs is subjective due to the level of judgement
required to be applied by management. The appropriate accounting treatment for the impairment of
loans and receivables, and the provision of impairment required by IFRS 9 is crucial to ensuring the
financial statements are free from material misstatement. Furthermore, the audit team have engaged
an internal valuation specialist to assess the ECL models.
Please refer to note 2 (Material accounting policy information – Financial assets and liabilities), note
14 (Financial risk management) and note 17 (Loans and advances) in the financial statements.
How the scope of our
audit responded to the
key audit matter
The procedures we performed, included;
We have reviewed the Expected Credit Loss Provision (ECL) model and the methodology
behind the impairment process. Furthermore, we have assessed any adjustments made
within this process.
We gained an understanding on the movements in the ECL balance with reference to the
underlying loan portfolios, credit quality changes and market factors.
We independently valued all intercompany balances and assessed the reliability of the
relevant GE Company for repayment.
We have reviewed supporting documentation for the ECL model and considered the
appropriateness of the approach adopted by management and the reasonableness of the
conclusions concerning the impairment provision.
We have analytically reviewed the movement in the year and compared it to the prior
period. We then assessed abnormal movements.
Deloitte specialists have assessed and reviewed the ECL model to ensure correct application
of IFRS 9.
We reviewed the key controls in place regarding the IFRS 9 model.
Based on the work performed, the ECL recorded in the financial statements is within a range we
consider reasonable.
/Continued from previous page
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
GE CAPITAL UK FUNDING UNLIMITED COMPANY
Continued on next page/
Our audit procedures relating to these matters were designed in the context of our audit of the financial statements as a whole, and
not to express an opinion on individual accounts or disclosures. Our opinion on the financial statements is not modified with respect
to any of the risks described above, and we do not express an opinion on these individual matters.
Our application of materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic
decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of
our audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Materiality
$4,316k (2023 : $4,301k)
Basis for
determining
materiality
1% of Net Assets
Rationale for the
benchmark applied
We have considered the users of the financial statements (the investors) and have concluded net assets to
be the critical component for determining materiality because it is the key indicator of assessing the
company’s financial position. In determining this benchmark we considered the following:
The key balances within the financial statements;
Whether there are items on which the attention of the users of the financial statements are
focused;
The nature of the business and the industry and economic environment;
The ownership and finance structure of the company; and
Regulatory requirements of the financial statements.
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and
undetected misstatements exceed the materiality for the financial statements as a whole.
Performance materiality was set at 70% of materiality for the 2024 audit (2023: 70%). In determining performance materiality, we
considered the following factors:
Our understanding of the entity including nature of the business and the industry;
The reliability of the entity’s internal control over Financial reporting;
The entity’s history of misstatements, both corrected and uncorrected;
Net Assets $431,696k
Materiality $4,316k
Audit Committee
reporting threshold $215k
Net Assets
Materiality
/Continued from previous page
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
GE CAPITAL UK FUNDING UNLIMITED COMPANY
Continued on next page/
Any changes in the business that would affect the auditor's ability to forecast potential misstatements;
Management's lack of willingness to investigate and correct misstatements; and
Whether there is a disproportionate number of risks of material misstatement at the higher end of the spectrum.
We agreed with the Audit Committee that we would report to them all audit differences in excess of $215k (2023 : $215k) as well as
differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit Committee
on disclosure matters that we identified when assessing the overall presentation of the financial statements.
An overview of the scope of our audit
We structured our approach to the audit to reflect how the company is organised, with a primary focus on the key drivers of the
company's main business operations and key risks. Our audit was scoped by obtaining an understanding of the company and its
environment, including the controls operating within the company, and assessing the risks of material misstatement related to the
financial statements of the company. The risks of material misstatement that have the greatest effect on our audit are identified as
key audit matters in the table above. In establishing the overall approach to the audit, we determined the type of work that
required the involvement of specialists, as a result we engaged tax, IT, valuation and hedge accounting specialists. Furthermore, we
discussed the approach and scope with the component audit team. This ensured that our audit is both effective and risk focused.
The company is primarily involved in obtaining finance in the capital markets to fund the operations of the wider GEC Group. The
company has established a GBP Commercial Paper ("CP") and a GBP Medium Term Note (‘MTN’) Programme. We have conducted
our audit based on the books and records maintained by the company at 86-88 Lower Leeson Street, Dublin 2, D02 A668, Ireland.
The company is ultimately a wholly owned subsidiary of GEC. In establishing the overall scope of the audit, we determined the type
of work that needed to be performed by component auditors for the purposes of this audit. We used the work of Deloitte member
firm in the United States Of America, operating under our instrcutions, in relation to the testing of the Loans and Advances,
Derivative assets and liabilities and Debt securities issued. We had regular interaction with these component teams including virtual
meetings and review of certain working papers. This, together with the additional procedures performed by Ireland, gave us the
evidence we needed to form our opinion on the financial statements as a whole.
Other information
The other information comprises the information included in the Annual Report and Audited Financial Statements, other than the
financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the
Annual Report and Audited Financial Statements.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in
our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify
such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material
misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of directors
As explained more fully in the Statement of Directors’ responsibilities in respect of the Financial Statements, the directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view and otherwise
comply with the Companies Act 2014, and for such internal control as the directors determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either
intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
/Continued from previous page
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
GE CAPITAL UK FUNDING UNLIMITED COMPANY
Continued on next page/
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
A further description of our responsibilities for the audit of the financial statements is located on IAASA’s website at:
https://iaasa.ie/publications/description-of-the-auditors-responsibilities-for-the-audit-of-the-financial-statements. This description
forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud is detailed below.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws
and regulations, we considered the following:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws
and regulations, we considered the following:
the nature of the industry and sector, control environment and business performance including the design of the
company’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
results of our enquiries of management and the audit committee about their own identification and assessment of the
risks of irregularities;
any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures
relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances
of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or
alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
the matters discussed among the audit engagement team and relevant internal specialists, including tax, valuations & IT
specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
In common with all audits under ISAs (Ireland), we are also required to perform specific procedures to respond to the risk of
management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of
those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial
statements. The key laws and regulations we considered in this context included the Companies Act 2014, applicable listing rules
and Tax Legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but
compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
/Continued from previous page
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
GE CAPITAL UK FUNDING UNLIMITED COMPANY
Continued on next page/
Audit response to risks identified
As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance
with laws and regulations.
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with
provisions of relevant laws and regulations described as having a direct effect on the financial statements;
enquiring of management, the audit committee and in-house legal counsel concerning actual and potential litigation and
claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material
misstatement due to fraud;
reading minutes of meetings of those charged with governance and reviewing internal audit reports; and
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries
and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a
potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal
course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members,
including internal specialists and significant component audit teams, and remained alert to any indications of fraud or non-
compliance with laws and regulations throughout the audit.
Report on other legal and regulatory requirements
Opinion on other matters prescribed by the Companies Act 2014
Based solely on the work undertaken in the course of the audit, we report that:
We have obtained all the information and explanations which we consider necessary for the purposes of our audit.
In our opinion the accounting records of the company were sufficient to permit the financial statements to be readily and
properly audited.
The financial statements are in agreement with the accounting records.
In our opinion the information given in the directors’ report is consistent with the financial statements.
In our opinion, those parts of the directors’ report specified for our review, which does not include sustainability reporting
when required by Part 28 of the Companies Act 2014, have been prepared in accordance with the Companies Act 2014.
Matters on which we are required to report by exception
Based on the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not
identified material misstatements in the directors’ report.
We have nothing to report in respect of the provisions in the Companies Act 2014 which require us to report to you if, in our opinion,
the disclosures of directors’ remuneration and transactions specified by law are not made.
/Continued from previous page
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
GE CAPITAL UK FUNDING UNLIMITED COMPANY
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Section 391 of the Companies Act 2014. Our
audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we
have formed.
David McCaffrey
For and on behalf of Deloitte Ireland LLP
Chartered Accountants and Statutory Audit Firm
Deloitte & Touche House, 29 Earlsfort Terrace, Dublin 2
24 April 2025
GE Capital UK Funding Unlimited Company
Statement of Comprehensive Income
for the financial year ended 31 December 2024
Note
2024
USD'000
2023
USD'000
Interest income
4 74,571 104,534
Interest expense
5
(74,152) (88,467)
Net interest income
419 16,067
Fee and commission income - 264
Net trading income 419 16,331
Service and commitment fee expense
6 (326) (2,055)
Net (loss)/gain from financial instruments carried at fair value
7 (2,932) 3,996
Movement in impairment loss allowance
14 956 1,153
Foreign exchange gain/(loss)
8
3,492 (25,694)
Other operating profit/(loss)
1,190 (22,600)
Profit/(loss) before income tax
9
1,609 (6,269)
Income tax charge
10
- -
Profit/(loss) for the financial year
1,609 (6,269)
Other comprehensive income
- -
Comprehensive income for the year
1,609 (6,269)
22
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Statement of Financial Position as at 31 December 2024
Note
31 December 2024
USD'000
31 December 2023
USD'000
Non-current assets
Loans and advances to GE Aerospace affiliates
17
979,877 997,483
979,877 997,483
Current assets
Cash and cash equivalents
11 - -
Derivative assets held for qualifying hedging relationships
16 22,612 21,611
Loans and advances to GE Aerospace affiliates
17 661,202 1,086,277
Other assets 2,507 25
686,321 1,107,913
Total assets
1,666,198 2,105,396
Current liabilities
Loans and advances from GE Aerospace affiliates
17 (59,084) (409,863)
Debt securities issued
18 (2,703) (57,043)
Other liabilities
(209) -
Current Liabilities
(61,996) (466,906)
Net current assets
624,325 641,007
Total assets less current liabilities
1,604,202 1,638,490
Non-current liabilities
Derivative liabilities held for qualifying hedging
relationships
16 (62,380) (9,092)
Debt securities issued
18
(1,110,126) (1,199,311)
Total Liabilities
(1,234,502) (1,675,309)
Net assets
431,696 430,087
Capital and reserves
Share capital
13 70,495 70,495
Share premium
13 367,244 367,244
Capital contribution
13 103,003 103,003
Undenominated capital reserve
13 18,766 18,766
Accumulated profits
4,158 2,549
Foreign exchange reserve
13
(131,970) (131,970)
Shareholders' equity
431,696 430,087
23
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Statement of Financial Position as at 31 December 2024 (continued)
On behalf of the board
K. Lynch S. O'Connor
Director Director
Date
24
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
23 April 2025
GE Capital UK Funding Unlimited Company
Statement of Changes in Equity
for the financial year ended 31 December 2024
Share Capital
USD'000
Share Premium
USD'000
Undenominated
Capital Reserve
USD'000
Capital
Contribution
USD'000
Accumulated
profits
USD'000
Foreign
Exchange
Reserve
USD'000
Total
USD'000
Balance at 1 January 2023
70,495 1,187,244 18,766 103,003 (111,182) (131,970) 1,136,356
Comprehensive income for the year
- - - - (6,269) - (6,269)
Transactions with owners of the
Company
Share premium reduction*
- (820,000) - - 820,000 - -
Distribution - - - - (700,000) - (700,000)
Balance at 31 December 2023
70,495 367,244 18,766 103,003 2,549 (131,970) 430,087
Balance at 1 January 2024
70,495 367,244 18,766 103,003 2,549 (131,970) 430,087
Comprehensive income for the year - - - - 1,609 - 1,609
Balance at 31 December 2024
70,495 367,244 18,766 103,003 4,158 (131,970) 431,696
* Please refer to Note 13 for further details on movement in share premium.
25
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Cash Flow Statement
for the financial year ended 31 December 2024
Note
31 December
2024
USD'000
31 December
2023
USD'000
Cash flows from operating activities
Profit/(loss) for the financial year
1,609 (6,269)
Adjustments for:
Net interest income
(419) (16,067)
Movement in impairment loss allowance
14 (956) (1,153)
Change in other assets
(2,482) (25)
Change in derivative assets held for qualifying hedging relationships
(1,001) (12,519)
FX and fair value movement on fixed rate debt securities in
qualifying hedging relationships
(69,872) 118,536
Change in derivative assets held for trading
- 17,690
Change in loans and advances to GE Aerospace affiliates
(666,592) 2,265,864
Change in loans and advances from GE Aerospace affiliates
(403,573) 403,508
Change in other liabilities
209 (1,024)
Change in accrued interest on debt securities in issue
(1,261) 1,514
Change in derivative liabilities held for qualifying hedging
relationships 54,703 (22,351)
(1,089,635) 2,747,704
Interest received
99,078 79,130
Interest paid
(132,405) (97,936)
Derivative payments (20,321) (34,731)
Net cash (used in)/provided by operating activities
(1,143,283) 2,694,167
Cash flows from financing activities
Decrease/(increase) of cashpool lendings
1,085,722 (1,111,587)
Increase/(decrease) of cashpool borrowings
57,561 (404,994)
Distribution paid
- (700,000)
Debt securities matured - (477,586)
Net cash flows provided by/(used in) financing activities
1,143,283 (2,694,167)
Net movement in cash and cash equivalents
- -
Cash and cash equivalents at 1 January
11
- -
Cash and cash equivalents at 31 December
11
- -
26
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024
1 Basis of preparation
Reporting entity
GE Capital UK Funding Unlimited Company (registration number 367997) is an Irish incorporated, public unlimited
company and is Irish tax resident. The address of the Company’s registered office is 86-88 Lower Leeson Street,
Dublin 2, D02 A668, Ireland. The Financial Statements of the Company are as at and for the financial year ended 31
December 2024. The Company is primarily involved in obtaining finance in the capital markets to fund the
operations of GE Aerospace. The Company has established a GBP Commercial Paper ("CP") and a GBP Medium
Term Note (“MTN”) Programme. This debt is listed on the London Stock Exchange.
Statement of compliance
The Financial Statements of the Company have been prepared in accordance with IFRS Accounting Standards as
adopted by the EU. The Financial Statements also comply with the requirements of the relevant Irish legislation
including the Companies Act 2014.
Basis of measurement
The Financial Statements have been prepared on the historical cost basis except for the following:
• derivative financial instruments are measured at fair value;
• certain fixed rate debt securities issued in qualifying hedging relationships at amortised cost adjusted by the fair
value of the hedged risk; and
• de-designated fixed rate debt securities which were formerly in a qualifying hedging relationship are measured at
adjusted amortised cost with unamortized basis adjustment. When the hedging relationship is de-designated, the
difference between the carrying value of the debt securities and its nominal value is recorded as a “Day 1 basis
adjustment”.
Functional and presentation currency
The Financial Statements are presented in USD which is the functional currency of the Company. Except as
indicated, financial information presented in USD has been rounded to the nearest thousand.
Use of estimates and judgements
The preparation of Financial Statements requires the Directors to make judgements, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected. Please see Note 3 for
further details.
27
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
1 Basis of preparation (continued)
Going concern
The future growth of the Company is dependent on the cash needs of GE Aerospace after spin off. The Directors
have assessed the loan receivable positions and have concluded that the balances remain recoverable. GE Aerospace
does not expect the need for new long-term debt issuances by the Company for the foreseeable future with the
expectation that the current MTN portfolio remains until maturity. The CP programme continues presently albeit no
CP is in issue at year end. The company has access to the cash pool should it be required. The debt issued by the
Company through its CP and MTN arrangements is guaranteed by GE Aerospace and GECIHL. Maturity dates of
debt issued are provided in Note 18.
The Directors have performed a going concern assessment for a period of 12 months from the date of approval of
these financial statements, also considering events reasonably foreseeable beyond this horizon, which indicates that,
taking account of the inflationary impacts in the economy and in light of the Company’s ability to access the group's
cash pool facility if required, the Company will have sufficient funds to meet its liabilities as they fall due for that
period.
The Directors are confident that the Company will have sufficient funds to continue in operational existence for at
least 12 months from the date of approval of these financial statements and they continue to adopt the going concern
basis of accounting in preparing the annual financial statements.
Accordingly, the Directors have also considered the below among other factors in concluding that it remains
appropriate to prepare the Financial Statements on a going concern basis:
• The Company has substantial positive equity and it is a member of a GE Aerospace operated cash pool
arrangement, connected to the GE Aerospace's U.S. cash pool, therefore has the resources to continue in business.
• GE Aerospace does not expect the need for new long-term debt issuances by the Company for the foreseeable
future.
• GECIHL has guaranteed the Company’s liabilities under its CP and MTN programmes, substantially mitigating
liquidity risk.
• GE Aerospace has also guaranteed the Company’s liabilities under its CP and MTN programmes, substantially
mitigating liquidity risk.
2 Material accounting policy information
The accounting policies set out below have been applied to all periods presented in the Financial Statements.
(a) New currently effective requirements
The below table lists the recent changes to Accounting Standards applying to years commencing on or after 1
January 2024. The Directors have assessed the impact of the below standards and have determined that they don't
have a material impact on the financial statements of the Company:
28
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
2 Material accounting policy information (continued)
Newly effective EU-endorsed standards for 01 Jan 2024 to 31 Dec 2024
New standards or amendments Effective Date
Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7) 01 January 2024
Lease Liability in a Sale and Leaseback (Amendment to IFRS 16) 01 January 2024
Classification of Liabilities as Current or Non-current and Non-current Liabilities
with Covenants (Amendments to IAS 1)
01 January 2024
Classification of Liabilities as Current or Non-current — Deferral of Effective Date 01 January 2024
(b) Standards and amendment to standards not yet adopted
A number of new standards, amendments to standards and interpretations have been issued and have not been
applied in preparing these Financial Statements. The Directors have reviewed the below standards and have
determined that they don't have a material impact on the statements when they are effective. These are set out below:
New standards or amendments Effective Date
The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability
(Amendment to IAS 21)
01 January 2025
Classification and Measurement of Financial Instruments- Amendments to IFRS 9
and IFRS 7
01 January 2026
Annual Improvements to IFRS Accounting Standards- Volume 11 01 January 2026
Contracts Referencing Nature-dependent Electricity to IFRS 9 and IFRS 7 01 January 2026
IFRS 18 Presentation and Disclosure in Financial Statements 01 January 2027
IFRS 19 Subsidiaries without Public Accountability: Disclosures 01 January 2027
(c) Foreign currency transactions
Transactions and balances
Foreign currency transactions are translated into the functional currency using exchange rates applicable to the
period in which the transaction occurred. Foreign exchange gains and losses resulting from the settlement of such
transactions and from translation at the period end of monetary assets and liabilities denominated in foreign
currencies are recognised in the SOCI. Non-monetary items denominated in foreign currencies are translated using
the exchange rate on the date of the initial transaction and recorded at historical cost.
The assets and liabilities of foreign currency are translated into USD at the exchange rates at the reporting date. The
income and expenses of foreign operations are translated into USD at the average monthly rate during the year, as
this is an approximation of the actual rates.
29
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
2 Material accounting policy information (continued)
(d) Interest
Interest income and expense are recognised in the SOCI using the effective interest method. The effective interest
rate is the rate that discounts the estimated future cash payments and receipts through the expected life of the
financial asset or liability (or, where appropriate, a shorter period) to the carrying amount of the financial asset or
liability. When calculating the effective interest rate, the Company estimate future cash flows considering all
contractual terms of the financial instrument but not future credit losses.
The calculation of the effective interest rate includes all fees paid or received, transaction costs, and discounts or
premiums that are an integral part of the effective interest rate. Transaction costs are incremental costs that are
directly attributable to the acquisition, issue or disposal of a financial asset or liability.
Interest income and expense presented in the SOCI include interest on financial assets and liabilities at amortised
cost on an effective interest rate basis together with interest on financial assets and liabilities designated at fair value
through SOCI.
(e) Commission
Commission income and expenses represented in the SOCI include commitment fees on financial assets and
liabilities. However, commission income and expenses that are integral to the effective interest rate on a financial
asset or liability are included in the measurement of the effective interest rate.
(f) Fees
Fees comprise of transaction and service fees, which are expensed as the services are received.
(g) Net gain/(loss) from financial instruments at fair value
Net gain/(loss) from financial instruments at fair value relates to fair value movement on fixed debt securities issued
in qualifying hedging relationships, also relates to fair value movement on derivatives related to interest rate swaps,
gain/(loss) on foreign currency forwards and gain/(loss) on termination of interest rate swaps, for details see Note
2(i), Note 2(j) and Note 7.
30
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
2 Material accounting policy information (continued)
(h) Tax expense
Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in SOCI except to the
extent that they relate to items recognised directly in equity or in other comprehensive income.
The Company has determined that the global minimum top-up tax - which may be required to pay under Pillar Two
legislation - is an income tax in the scope of IAS 12, for further details see Note 10.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates
enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous
years. Current tax payable also includes any tax liability arising from dividends.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:
• temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss;
• temporary differences related to investments in subsidiaries to the extent that it is probable that they will not
reverse in the foreseeable future;
• temporary differences arising on the initial recognition of goodwill; and
• The global minimum top-up tax arising as a result of Pillar Two.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they
reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
against current tax assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and
liabilities will be realised simultaneously.
Additional taxes that arise from the distribution of dividends by the Company are recognised at the same time as the
liability to pay the related dividend is recognised.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the
extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax
assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related
tax benefit will be realised.
31
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
2 Material accounting policy information (continued)
(i) Financial assets and liabilities
Recognition and initial measurement
The Company initially recognise loans and advances, deposits, debt securities issued and subordinated liabilities on
the date on which they are originated. All other financial instruments (including regular-way purchases and sales of
financial assets) are recognised on the trade date, which is the date on which the Company becomes a party to the
contractual provisions of the instrument.
A financial asset or financial liability is measured initially at fair value plus or minus, for an item not at fair value
through profit or loss (“FVTPL”), transaction costs that are directly attributable to its acquisition or issue. The fair
value of a financial instrument at initial recognition is generally its transaction price.
Derecognition
The Company derecognise a financial asset when the contractual rights to the cash flows from the asset expire, or it
transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially
all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial
assets that are created or retained by the Company is recognised as a separate asset or liability.
The Company derecognise a financial liability when its contractual obligations are discharged or cancelled or expire.
Classification and subsequent measurement of financial assets and financial liabilities
A financial asset that meets the following conditions are measured at amortised cost:
• the financial asset is held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows.
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
A financial asset that meets the following conditions are measured subsequently at fair value through other
comprehensive income (FVTOCI):
• the financial asset is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling the financial assets.
• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
The business model of the Company for loans and advances is to hold assets to collect contractual cashflows. As
such, the Company’s loans and advances are measured at amortised cost. All other financial assets are classified as
measured at FVTPL.
The Company does not hold any assets measured at FVOCI.
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at
FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Other
financial liabilities are measured at amortised cost using the effective interest method.
32
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
2 Material accounting policy information (continued)
(i) Financial assets and liabilities (continued)
Modification of financial assets and financial liabilities
If the terms of a financial asset or liability are modified and the cash flows are substantially different, the original
instrument is derecognised and a new instrument recognised.
If the modification of a financial asset measured at amortised cost does not result in derecognition of the financial
asset, then the Company first recalculates the gross carrying amount of the financial asset using the original effective
interest rate of the asset and recognises the resulting adjustment as a modification gain or loss in SOCI.
If the modification of a financial liability is not accounted for as derecognition, then the amortised cost of the
liability is recalculated by discounting the modified cash flows at the original effective interest rate and the resulting
gain or loss is recognised in SOCI. The difference between the carrying amount of the financial liability
derecognised and the consideration paid is recognised in SOCI.
Offsetting
Financial assets and liabilities are set off and the net amount presented in the Statement of Financial Position when,
and only when, the Company has a current legal right to set off the amounts and intends either to settle on a net basis
or to realise the asset and settle the liability simultaneously. Income and expenses are presented on a net basis only
when permitted under IFRS Accounting Standards.
(j) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. When available, the Company measures the fair value of an
instrument using quoted prices in an active market for that instrument. A market is regarded as active if quoted
prices are readily and regularly available and represent actual occurring market transactions on an arm’s length
basis.
If a market for a financial instrument is not active, the Company establish fair value using valuation techniques.
Valuation techniques include using recent arm’s length transactions between knowledgeable, willing parties (if
available), reference to the current fair value of other instruments that are substantially the same, discounted cash
flow analyses and option pricing models. The chosen valuation technique makes use of market inputs, relies as little
as possible on estimates specific to the Company, incorporates factors that market participants would consider in
setting a price, and is consistent with accepted economic methodologies for pricing financial instruments.
Inputs to valuation techniques reasonably represent market expectations and measures the risk return factors
inherent in the financial instrument. The Company calibrate valuation techniques and test them for validity using
prices from observable current market transactions in the same instrument or based on other available observable
market data.
33
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
2 Material accounting policy information (continued)
(j) Fair value measurement (continued)
The best evidence of the fair value of a financial instrument at initial recognition is the transaction price, i.e., the fair
value of the consideration given or received, unless the fair value of that instrument is evidenced by comparison
with other observable current market transactions in the same instrument (i.e., without modification or repackaging)
or based on a valuation technique whose variables include only data from observable markets. When transaction
price provides the best evidence of fair value at initial recognition, the financial instrument is initially measured at
the transaction date and any difference between this price and the value initially obtained from a valuation model is
subsequently recognised in the SOCI depending on the individual facts and circumstances of the transaction but not
later than when the valuation is supported wholly by observable market data or the transaction is closed out.
Assets and long positions are measured at a mid-price; liabilities and short positions are measured at an ask price.
Where the Company have positions with offsetting risks, mid-market prices are used to measure the offsetting risk
positions and a bid or ask price adjustment is applied only to the net open position as appropriate.
Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the
Company and counterparty where appropriate. Fair value estimates obtained from models are adjusted for any other
factors, such as liquidity risk or model uncertainties, to the extent that the Company believe a third-party market
participant would take them into account in pricing a transaction.
(k) Impairment
Identification and measurement of impairment
The Company uses the expected credit loss (‘ECL’) model to assess impairment on the financial assets measured at
amortised cost. ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present
value of all cash shortfalls over the expected life of the financial asset. Note 14 provides further detail of how
expected credit losses are measured.
For loans and advances to GE Aerospace affiliates measured at amortised cost, the Company recognises a loss
allowance equal to the ECLs that result from possible default events within the 12 months after the reporting date if
there is not a significant increase in credit risk.
If the credit risk of a financial asset has increased significantly since initial recognition, the Company recognises
lifetime ECLs. Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a
financial instrument.
When determining whether the credit risk of a financial asset has increased significantly since the initial recognition
when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available
without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the
Company’s historical experience and expert credit assessment and including forward looking information. Please
refer to Note 14 for further details.
The Company considers a debt security to have a low credit risk when its credit risk rating is equivalent to the
globally understood definition of ‘investment grade’. The Company considers this to be BBB- or higher as per
Standard and Poor’s (‘S&P’) rating scale.
34
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
2 Material accounting policy information (continued)
(k) Impairment (continued)
The indicators below are used to identify receivables which have experienced a significant increase in credit risk and
should be individually reviewed for impairment. The triggers which would indicate a significant increase in credit
risk are:
• The receivable is highlighted by the business as a potential risk and requires further review.
• The borrower has a significant increase in GE Aerospace's Obligor Rating, being defined as a drop of 4 notches in
the original grade (outside of investment grade of BBB-).
• Payment are more than 30 days past due.
Credit-impaired financial assets
At each reporting date, the Company assesses whether financial assets carried at amortised cost are credit-impaired.
Loans and advances are considered to be credit-impaired when one or more events that have a detrimental impact on
the estimated future cash flows of that financial asset have occurred, and does not expect to collect all principal and
interest due according to the contractual terms of the loan agreement(s).
Evidence that a financial asset is credit-impaired include observable data about the following:
• Significant financial difficulty of the borrower;
• Default in the payment of interest or commitment fees which is not rectified within 5 business days of having
received notice from the lender;
• Default in the payment of other amount due under the terms of the loan agreement which is not rectified within 5
business days of having received notice from the lender;
• The lender, for economic or contractual reasons relating to the borrower’s financial difficulty, has granted a
concession that the lender would not otherwise consider;
• It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation;
• The borrower is highlighted by the business as a potential risk and requires further review.
Please see Note 14(a) Credit risk for further details.
Presentation of impairment
Impairment losses on financial assets measured at amortised cost are deducted from the gross carrying amount of the
assets in the statement of financial position and the change in impairment losses on financial assets during the year
are presented separately in the SOCI.
(l) Cash and cash equivalents
Cash and cash equivalents include cash at bank and highly liquid financial assets with original maturities of less than
three months, which are subject to insignificant risk of changes in their fair value, and are used by the Company in
the management of their short-term commitments. Cash is carried at amortised cost in the Statement of Financial
Position.
35
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
2 Material accounting policy information (continued)
(m) Derivatives held for risk management purposes and hedge accounting
The Company has elected to continue to apply the hedge accounting requirements of IAS 39 instead of the
requirements of new hedge accounting requirements of IFRS 9.
Derivatives held for risk management purposes include all derivative assets and liabilities that are not classified as
trading assets or liabilities. All derivatives held for risk management purposes are measured at fair value in the
Statement of Financial Position. The Company designate certain derivatives held for risk management as hedged
instruments in qualifying hedging relationships.
Policy applicable for all hedging relationships
On initial designation of the hedge, the Company formally documents the relationship between the hedging
instrument(s) and hedged item(s), including the risk management objective and strategy in undertaking the hedge,
together with the method that will be used to assess the effectiveness of the hedging relationship. The Company
makes an assessment, both on inception of the hedging relationship and on an ongoing basis, of whether the hedging
instrument(s) is (are) expected to be highly effective in offsetting the changes in the fair value or cash flows of the
respective hedged item(s) during the period for which the hedge is designated, and whether the actual results of each
hedge are within a range of 80-125%.
(i) Fair value hedges
When a derivative is designated as the hedging instrument in a hedge of the change in fair value of a recognised
asset or liability or a firm commitment that could affect SOCI, changes in the fair value of the derivative are
recognised immediately in SOCI. The change in fair value of the hedged item attributable to the hedged risk is
recognised in SOCI. If the hedged item would otherwise be measured at cost or amortised cost, then its carrying
amount is adjusted accordingly.
If the hedging derivative expires or is sold, terminated or exercised, or the hedge no longer meets the criteria for fair
value hedge accounting, or the hedge designation is revoked, then hedge accounting is discontinued. If a hedging
relationship is de-designated the basis adjustment on the hedged item is then amortized, using the effective interest
method, over the remaining life of the hedged item.
Any adjustment up to the point of discontinuation to a hedged item for which the effective interest method is used is
amortised to SOCI as an adjustment to the recalculated effective interest rate of the item over its remaining life.
On hedge discontinuation, any hedging adjustment made previously to a hedged financial instrument for which the
effective interest method is used is amortised to SOCI by adjusting the effective interest rate of the hedged item
from the date on which amortisation begins. If the hedged item is derecognised, then the adjustment is recognised
immediately in SOCI when the item is derecognised.
(ii) Derivatives held for trading
When a derivative is not designated in a qualifying hedge relationship including all foreign currency forwards, all
changes in fair value are recognised immediately through SOCI.
36
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
2 Material accounting policy information (continued)
(n) Loans and advances
Loans and advances captions in the Statement of Financial Position include loans and advances measured at
amortised cost; they are initially measured at fair value plus or minus incremental direct transaction costs; and
subsequently at their amortised cost using the effective interest method.
The interest rate on loans advanced to/from GE Aerospace affiliates is deemed to be an arms length rate at the
current year end.
(o) Debt securities issued
Debt securities issued are the Company’s source of debt funding.
The Company classify capital instruments as financial liabilities or equity instruments in accordance with the
substance of the contractual terms of the instrument.
Debt securities issued are initially measured at fair value adjusted for directly attributable transaction costs, and
subsequently measured at their amortised cost using the effective interest method, except where the Company
choose to designate at inception the debt securities at fair value through profit or loss.
The Company carry certain debt securities at amortised cost adjusted for the fair value of the interest rate risk
element, with fair value changes recognised immediately through profit or loss in the SOCI.
(p) Segment reporting
An operating segment is a component of the Company that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company's
other components, whose operating results are reviewed regularly by the Directors (being the chief operating
decision maker) to make decisions about resources allocated to each segment and to assess its performance.
37
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
3 Use of estimates and judgements
The Directors review the development, selection and disclosure of the Company's critical accounting policies and
estimates, and the application of these policies and estimates.
These disclosures supplement the commentary on financial risk management (see Note 14).
A. Judgements
Significant accounting judgements made in applying the Company's accounting policies include:
(a) Allowances for impairment
Note 2 (k) and Note 14 outline the following
Establishing the criteria for determining whether credit risk on the financial asset has increased significantly since
initial recognition, determining the methodology for incorporating forward-looking information into the
measurement of ECL and selection and approval of models used to measure ECL as described in Note 14.
B. Sources of estimation uncertainty
Information about assumptions and estimation uncertainties at the reporting date that have a significant risk of
resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is
included in the Note 14(a) measurement of ECL allowance for loan receivables.
(a) Determining fair values of financial instruments where a quoted market price is unavailable
As indicated in Note 15, all of the derivative instruments are measured at fair value on the respective Statement of
Financial Position and it is usually possible to determine their fair values within a reasonable range of estimates.
Fair value estimates are made at a specific point in time, based on market conditions and information about the
financial instrument. These estimates are subjective in nature and involve market uncertainties and matters of
judgement (including interest rates, volatility, estimated cash flows) and therefore, cannot be determined with
precision.
The Company has estimated the fair value of its loans and advances to GE Aerospace affiliates taking into account
market risk and the changes in credit quality of its borrowers.
38
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
3 Use of estimates and judgements (continued)
(b) Valuation of financial assets and liabilities
The Company measure fair values using the following hierarchy of methods:
•
Level 1
- Quoted market price in an active market for an identical instrument.
•
Level 2
- Valuation techniques based on observable inputs. This category includes instruments valued using:
quoted market prices in active markets for similar instruments; quoted prices for similar instruments in markets that
are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly
observable from market data.
•
Level 3
- Valuation techniques using significant unobservable inputs. This category includes all instruments where
the valuation technique includes inputs not based on observable data and the unobservable inputs could have a
significant effect on the instrument’s valuation.
The valuation techniques and significant inputs used in determining the fair values for financial assets and liabilities
classified as Level 1, Level 2 and Level 3 are as follows:
Debt securities
- are traded in active markets and are based on quoted market prices or dealer price quotations. For
non-traded securities, the Company determine fair values using valuation techniques. Valuation techniques include
net present value and discounted cash flow models, comparison to similar instruments for which market observable
prices exist. Assumptions and inputs used in valuation techniques include risk-free and benchmark interest rates,
credit spreads and other premia used in estimating discount rates, bond prices, foreign currency exchange rates,
expected price volatilities and correlations. The objective of valuation techniques is to arrive at a fair value
determination that reflects the price of the financial instrument at the reporting date that would have been
determined by market participants acting at arm’s length.
Derivative assets and liabilities -
the Company use widely recognised valuation models for determining the fair
value of common and more simple financial instruments, such as interest rate swaps that use only observable market
data and require little management judgement and estimation. Observable prices and model inputs are usually
available in the market for listed debt securities of the ultimate parent, GE Aerospace, exchange traded derivatives
and simple over the counter derivatives such as interest rate swaps. Availability of observable market prices and
model inputs reduces the need for management judgement and estimation and also reduces the uncertainty
associated with determination of fair values. Availability of observable market prices and inputs varies depending on
the products and markets and is prone to changes based on specific events and general conditions in the financial
markets. Derivatives are shown gross on statement of financial position as they do not qualify for offset in
accordance with IAS 32. In addition there are no master netting agreements in place. All derivatives are executed
with Hedge Management Services, Inc. (HMS) and a credit valuation adjustment (“CVA”) is calculated to reflect
the credit risk of HMS. A debit valuation adjustment (“DVA”) is calculated to reflect the credit risk of the Company
with the bilateral adjustment recorded in the measurement of the derivatives in the Financial Statements.
Loans and advances from GE Aerospace affiliates
- The fair value of loans received is estimated from the present
value of the cash flows, using current market rates for similar loans.
Loans and advances to GE Aerospace affiliates
- The fair value of issued loans is estimated from the present
value of the cash flows, using current market rates for similar loans.
There were no Level 3 assets or liabilities held at 31 December 2024 or 31 December 2023.
39
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
3 Use of estimates and judgements (continued)
Measured at Fair Value
Measured
at
Amortised
Cost
Level 1 Level 2 Level 3 Total
In million of USD
31 December 2024
Assets
Loans and advances to GE Aerospace affiliates
- - - 1,641 1,641
Derivative assets - held for qualifying hedging
relationships
- 23 - - 23
Other assets - - - 3 3
- 23 - 1,644 1,667
In million of USD
Liabilities
Loans and advances from GE Aerospace affiliates
- - - (59) (59)
Debt securities issued*
- - - (1,113) (1,113)
Derivative liabilities held for qualifying hedging
relationships - (62) - - (62)
- (62) - (1,172) (1,234)
40
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
3 Use of estimates and judgements (continued)
Measured at Fair Value
Measured
at
Amortised
Cost
Level 1 Level 2 Level 3 Total
In million of USD
31 December 2023
Assets
Loans and advances to GE Aerospace affiliates
- - - 2,084 2,084
Derivative assets held for qualifying hedging
relationship - 22 - - 22
- 22 - 2,084 2,106
In million of USD
Liabilities
Loans and advances from GE Aerospace affiliates
- - - (410) (410)
Debt securities issued*
- - - (1,256) (1,256)
Derivative liabilities held for qualifying hedging
relationships - (9) - - (9)
- (9) - (1,666) (1,675)
* Measured at amortised cost as adjusted for the fair value of hedged risk under hedge accounting rules.
Significant transfers between Level 2 and Level 3 of the fair value hierarchy
During the years ended 31 December 2024 and 31 December 2023, there were no transfers between Level 2 and
Level 3 of the fair value hierarchy.
4 Interest income
Interest income is earned on loans made by the Company directly to other GE Aerospace affiliates.
2024
USD'000
2023
USD'000
Interest income on loan and advances to GE Aerospace affiliates 74,571 104,534
74,571 104,534
For the year ended 31 December 2024, the decrease in interest income is primarily driven by the average USD loan
interest rate decrease and the interest income generated from a lower average cashpool lending position during the
current financial year.
41
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
5 Interest expense
The following table details the interest expense incurred by the Company during the year.
2024
USD
'
000
2023
USD'000
Net interest expense for financial assets and liabilities:
Debt securities issued;
- in qualifying hedging relationships at adjusted amortised cost
81,756 74,548
- at amortised cost
- 13,308
Amortisation of fair value component of debt with associated terminated
derivative assets and those no longer in a hedging relationship
(19,312) (24,797)
Interest expense on loans and advances from GE Aerospace affiliates
11,707 25,408
Bank charges 1 -
74,152 88,467
Interest expense on loans and advances from GE Aerospace affiliates relates to borrowings from GE Aerospace and
Cash Management Services Inc.("CMS").
For the year ended 31 December 2024, the decrease in interest expense is primarily driven by an decrease in the
average borrowing position during the current financial year.
6 Service and commitment fee expense
2024
USD'000
2023
USD'000
Commitment fees
8 324
Service fee expense to GE Aerospace affiliates 318 1,731
326 2,055
The Company has a management service agreement in place with GE Treasury Ireland Services UK (“T2K”), an
affiliate Company until 8 March 2024. On 8 March 2024, T2K merged into GE Management services Ireland
Limited ("H83), and the service agreement has been novated from T2K to H83. Commitment fee expense to GE
Aerospace affiliates relates to loan facility used to fund debt maturities.
42
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
7 Net (loss)/gain from financial instruments carried at fair value
2024
USD'000
2023
USD'000
Fair value movement on interest rate swaps
in qualifying hedging relationships
(54,711) 35,611
Fair value movement on fixed rate debt securities issued in qualifying
hedging relationships
51,779 (41,352)
Gain on foreign currency forwards - 9,737
(2,932) 3,996
The above table includes the hedge ineffectiveness loss USD 3 million (2023: loss USD 6 million).
8 Foreign exchange gain/(loss)
2024
USD'000
2023
USD'000
Foreign exchange gain/(loss)
3,492 (25,694)
The foreign exchange gain in the current financial year is primarily due to the movement in GBP/USD exchange
rate from 1.275 as at 31 December 2023 to 1.252 as at 31 December 2024 (2023: movement in GBP/USD exchange
rate from 1.209 as at 31 December 2022 to 1.275 as at 31 December 2023).
9 Profit/(loss) before income tax
2024
USD'000
2023
USD'000
Profit before taxation has been arrived at after charging
Directors' remuneration * 109
122
Auditor's remuneration
Audit of these Company financial statements** 27
23
Other assurance services*** 25
24
Tax advisory services -
-
Other non-audit services
-
-
43
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
9 Profit/(loss) before income tax (continued)
* Includes short term benefits and post-employment benefits in respect of key management personnel. Directors'
remuneration for the year ended 31 December 2024 was paid by affiliated entities T2K and H83, Directors
remuneration has been included in the service fee charged from this company. A portion of annual Directors'
remuneration attributable to the Company was estimated at USD 109,416 for the year end 31 December 2024 (2023:
USD 122,002).
** Auditor's remuneration paid to Deloitte Ireland LLP is USD 26,910 (2023: USD 23,400). Payments to other
Deloitte member firms is USD 15,600 (2023: USD 15,600).
*** Other assurance services cost relates to the interim review per the ISRE 2410 standard and ESEF fees.
10 Income tax charge
2024
USD
'
000
2023
USD'000
Analysis of charge/(credit) in year
Current tax:
Total current tax - -
Deferred tax:
Total tax charge in the Income Statement
- -
Factors effecting tax charge/credit for the year
The tax assessed for the year is different to that at the standard rate of corporation tax in Ireland (12.5%). The
differences are explained below.
Reconciliation of effective rate
2024
USD'000
2023
USD'000
Profit/(loss) before taxation
1,609 (6,269)
Profit/(loss) multiplied by the standard rate of corporation tax in Republic
of Ireland of 12.5% (2023:12.5%)
201 (784)
Tax effect of:
- -
Additional deductible expenditure
(202) -
Losses carried forward/(utilized)
(28) 2,301
Non-deductible expenditure/(income) 29 (1,517)
Total tax charge/(credit) in SOCI
- -
44
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
10 Income tax charge (continued)
The Company, as the subsidiary of GE Aerospace, is within the scope of the Organisation for Economic
Co-operation and Development (OECD) Pillar Two model rules (“Pillar Two”). The Pillar Two legislation was
enacted in Ireland, the jurisdiction in which the Company is incorporated. Upon enactment, the Pillar Two taxation
regime (specifically the qualifying domestic minimum top-up tax (“QDMTT”)) came into effect on 1 January 2024.
The Company has applied the exception to recognizing and disclosing information about deferred tax assets and
liabilities related to Pillar Two income taxes, as provided in the Amendments to IAS 12 issued in 2023. GE
Aerospace has completed an assessment to estimate the top up tax that would be due for 2024, and the results of the
analysis indicated that the Company will not qualify for the transitional Country-by-Country Reporting (CbCR) safe
harbor in 2024. GE Aerospace’s Pillar 2 effective tax rate in Ireland for the period is expected to be below the Pillar
2 minimum tax rate of 15%. This has led to top-up tax in respect of the GE Aerospace subsidiary entities in Ireland.
As a result, a current tax expense has been recognised in GE Treasury Services Industrial Ireland Limited (the
nominated group filer) for Ireland. GE Treasury Services Industrial Ireland Limited will pay the Irish Pillar 2 top-up
tax for all Irish GE entities. The top up tax will not be recharged on an individual entity basis. The Company’s
Ultimate Parent Entity is domiciled in the United States. Although the United States has not adopted its respective
Pillar Two legislation as of 31 December 2024, the exposure to incremental tax payable under any applicable
undertaxed profit rule (UTPR) is not estimated to be significant.
11 Cash and cash equivalents
2024
USD'000
2023
USD'000
- -
There are no restricted cash balances at the financial year end (2023: USD Nil).
There are no cash balances held at 31 December 2024 (2023: USD Nil).
12 Deferred tax asset
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available
against which the asset can be recovered. The Directors have considered the assumptions underpinning the
recognition of a deferred tax asset and have determined that it is appropriate to recognise no deferred tax asset for
the year ending 31 December 2024 (31 December 2023: USD Nil).
The Company has an unrecognised deferred tax asset at the financial year end of USD 20.3 million (2023: USD 20.4
million) which relates to losses carried forward. These losses may be carried forward indefinitely against profits of
the same trade.
45
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
13 Share capital, share premium and reserves
Company
31 December
2024
USD'000
31 December
2023
USD'000
Authorised
100,000,000 Ordinary Shares of USD 1.2422 each
124,220 124,220
Allotted (called up and fully paid)
56,750,000 Ordinary Shares of
USD 1.2422 each
70,495 70,495
Allotted, called up and fully
paid equity shares
Share
capital
$'000
Share
premium
$'000
Undenominated
Capital
Reserves
$'000
Foreign
exchange
reserve
$'000
Capital
contribution
$'000
Total
$'000
Opening at 1 January 2023
70,495 1,187,244 18,766 (131,970) 103,003 1,247,538
Share premium reduction - (820,000) - - - (820,000)
Balance at 31 December
2023
70,495 367,244 18,766 (131,970) 103,003 427,538
Opening at 1 January 2024 70,495 367,244 18,766 (131,970) 103,003 427,538
Balance at 31 December
2024
70,495 367,244 18,766 (131,970) 103,003 427,538
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one
vote per share at meetings of the Company. The ordinary shares rank pari passu in all respects. On 5 December
2023, the Company passed a written resolution to reduce the share premium account of the Company by an amount
of USD 820,000,000 in connection with an internal reorganization, and made a cash distribution of USD
700,000,000 to the Company's parent GE Ireland USD Holdings Unlimited Company on 7 December 2023. The
Company does not have any externally imposed capital requirements.
The opening undenominated capital reserve arises due to the redenomination of issued share capital from GBP to
USD on 16 December 2016.
The opening foreign exchange reserve arose due to the retranslation of share capital, share premium and other
reserves at the historic rates prevailing at the dates of transactions following the change in functional currency of the
Company from GBP to USD on 3 December 2015.
46
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management
Introduction and overview
The Company has exposure to the following risks from the use of financial instruments:
(a) credit risk
(b) liquidity risk
(c) market risk
(d) other price risk
This note presents information about the Company's exposure to each of the above risks, the Company's objectives,
policies and processes for measuring and managing risk, and the Company's management of capital.
Risk management framework
The Directors have overall responsibility for the establishment and oversight of the Company's risk management
framework in line with the overall GE Aerospace risk management framework.
The Board of Directors has six members as at 31 December 2024.
The Company’s risk management policies are based on policies of the Company’s ultimate parent, GE Aerospace,
and are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and
controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly
to reflect changes in market conditions, products and services offered.
The Directors are responsible for monitoring compliance with the Company’s risk management policies and
procedures, and for reviewing the adequacy of the risk management framework in relation to the risks faced by the
Company. The Directors are assisted in these functions by GE Aerospace Internal Audit Staff.
(a) Credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to
meet its contractual obligations, and arises principally from the Company's loans and advances to GE Aerospace
affiliates. For risk management reporting purposes the Company considers and consolidates all elements of credit
risk exposure (such as individual obligor risk, default risk and country risk). The Directors monitor performance of
borrowers and continually assess recoverability of loans (see points below). The Directors set the credit policy to
minimise the risk to earnings and capital. All loans and advances made by the Company are with GE Aerospace
affiliates. All loans are uncollateralized.
Management of credit risk
The Directors are responsible for the oversight of the Company's credit risk in line with the overall GE Aerospace
risk framework, including:
• Following GE Aerospace credit policies covering credit assessment, risk grading and reporting, documentary and
legal procedures, and compliance with regulatory and statutory requirements;
• Establishing the authorization structure for the approval and renewal of credit facilities;
47
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(a) Credit risk (continued)
• Reviewing and assessing credit risk. The Directors assess all credit exposures prior to facilities being committed,
and these facilities are subject to periodic review based on the overall risk associated as determined by
Management.
A comprehensive due diligence is carried out on each borrower annually as part of the repricing process.
At 31 December 2024, the total carrying amount at amortised cost of loans and advances to GE Aerospace affiliates
exposed to credit risk in the Company amounted to USD 1,641 million (2023: USD 2,084 million).
As at 31 December 2024, the loans and advances to Cash Management Services Inc.(CMS) was 62% (2023: 94%)
of the total loan portfolio for the Company and the loans and advances to GE Capital Global Holdings, LLC (RYZ)
was 28% (2023: 0%) of the total loan portfolio for the Company. The Directors monitor the performance of GE
Aerospace affiliates to assess the recoverability of the loans in line with the overall GE Aerospace risk framework.
As at 31 December 2024 and 31 December 2023, the Directors consider none of the loans and advances to GE
Aerospace affiliates to be either past due or individually impaired. Impairment loss allowance is discussed further in
this note.
Cash and cash equivalents are held in cashpools with financial institutions rated A- to BBB- (2023: A- to BBB+) by
Standard and Poor’s at the year end.
Loans with renegotiated terms
Loans with renegotiated terms are loans that have been restructured due to the deterioration of the borrower’s
financial position. No loans were renegotiated during the financial year ended 31 December 2024 (2023: USD Nil).
Allowances for impairment
The Company establishes an allowance for impairment losses on assets carried at amortised costs based on the ECL
model as described in Note 2. It is considered that all loans and advances are Stage 1, as all loans are to GE
Aerospace affiliates and interest and principal are paid in a timely manner as per the terms of the loan agreements.
No history of default or non repayment in respect of the borrowers. Additionally, the Company has determined that
the credit risk on financial assets has not significantly increased since initial recognition.
48
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(a) Credit risk (continued)
Measuring ECL - explanation of inputs, assumptions and estimation techniques:
ECLs are the discounted product of Probability of Default (“PD”) and Exposure at Default (“EAD”) and Loss Given
Default (“LGD”). These inputs are defined below.
The PD represents the likelihood of a borrower defaulting on its financial obligation either in the next 12 months or
the remaining lifetime of the obligation. The PD for the Company is considered low as all loans are to GE
Aerospace undertakings. S&P’s Credit Model is used to assign a rating to internal GE Aerospace entities. This
model produces outputs on the S&P rating scale. Reviewing S&P’s model documents confirms that the Credit
Model rating output maps directly to the S&P scale. Since the S&P rating is the industry reference, this is also used
to set the GE Aerospace Obligor Rating scale which was directly mapped to the S&P scale, which in turn assigns a
PD.
EAD is based on the amounts the Company expects to be owed at the time of default. For revolving credit
agreements (‘RCAs’), the Company includes the current drawn balance plus any further amount that is expected to
be drawn up to the current contractual limit by the time of default, should it occur.
LGD is assumed to be 60%. For GE Aerospace intercompany loans, given the fact that all these loans are senior
unsecured, an external benchmark is leveraged for the LGD assumption. According to Moody’s Corporate Default
and Recovery dataset, the LGD of 60% is estimated based on the summary statistics from US Corporate Senior
Unsecured Bonds population.
The discount rate used in the ECL calculation is determined to be the original effective interest rate on the loan
(market rate of interest).
GE Aerospace replaced its PD Term Structure Model from the Moody’s Expected Default Frequency (‘EDF’) model
to FHR-TPM model which uses historical RapidRatings Financial Health Rating (FHR) scores since 2022. The
model forecasts quarterly cumulative PDs for a horizon of up to 30 years over a range of FHR scores. The PD
forecasts over the first 3 years are based on economic conditions provided by end-users, and thereafter a
through-the-cycle (TTC) mean condition is assumed over the remaining forecasting horizon.
RapidRatings is a quantitative rating system that produces the Financial Health Rating (FHR), a score ranging from
0 (highest risk) to 100 (lowest risk). FHR measures a firm’s overall ability to remain competitive against its industry
peers and exhibits certain discriminating power between low-risk survivors and high-risk defaulters over a future
12-month period.
A specifically designed macro scenario with exact response from each industry to this scenario may generate false
precision in the portfolio PD projection, especially when a long period macro forecast is used. The model will
become less accurate if the historical relationship between Firm Risk Indicator ('FRI') and macro variables breaks in
the future. Given these considerations, a simplified fixed-state output provides more intuitive solutions. The
fixed-state scenario generates the Probability of Default term structure ('PDTS') based on a specified series of
discrete state input rather than the continuum of the exact state implied by any macro forecasts.
49
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(a) Credit risk (continued)
The following tables provides information about exposure to credit risk and ECLs for the Company as at 31
December 2024, All loans are considered low-risk. The impairment allowance includes the ECL on loan
commitments.
31 December 2024 S&P rating Gross carrying amount* Impairment allowance Credit impaired?
USD’000 USD’000
Loans and advances to GE
Aerospace affiliates
BBB+ 1,666,079 (2,889) No
31 December 2023 S&P rating Gross carrying amount* Impairment allowance Credit impaired?
USD’000 USD’000
Loans and advances to GE
Aerospace affiliates
BBB+ 3,883,760 (3,845) No
Impairment allowance 31 December 2023 31 December 2024 Movement
USD’000 USD’000 USD’000
Loans and advances to GE
Aerospace affiliates
(3,845) (2,889) 956
Impairment allowance 31 December 2022 31 December 2023 Movement
USD’000 USD’000 USD’000
Loans and advances to GE
Aerospace affiliates
(4,998) (3,845) 1,153
* The gross carrying amount in the above table includes USD 25 million (2023: USD 1,800 million) of
commitments made to GE Aerospace for future loan financing.
The decrease in loss allowance is mainly attributable to the reduction in the principal of loans and advances to GE
Aerospace affiliates and to the loan and advances to GE Aerospace affiliates moving closer to maturity at 31
December 2024. As a result, USD 1 million impairment allowance (2023: USD 1.2 million reversed) is reversed in
profit or loss. PD rates are consistent with the prior year (average PD rate is 0.29% as at 31 December 2024 and
0.24% as at 31 December 2023).
Write-off policy
The Company write off loans and advances when they are determined to be uncollectable. All amounts owed by GE
Aerospace undertakings were made to GE Aerospace affiliate companies and payments were received as they fell
due. There were no write-offs during the financial year ended 31 December 2024 (2023: USD Nil).
50
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(a) Credit risk (continued)
Fair value adjustment for credit risk
The Company assesses the valuation adjustments required for credit risks associated with derivatives measured at
fair value as at 31 December 2024. All derivatives are executed with an affiliated Company HMS and a credit
valuation adjustment (“CVA”) is calculated to reflect the credit risk of HMS. A debit valuation adjustment (“DVA”)
is calculated to reflect the credit risk of the Company with the bilateral adjustment recorded in the measurement of
the derivative in the Financial Statements. As at 31 December 2024, the bilateral adjustment for the Company
amounted to USD 1.5 million (2023: USD debit 1.4 million) which has been recorded as credit to “Net loss from
financial instruments carried at fair value” in the SOCI.
(b) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations from its financial
liabilities.
Management of liquidity risk
The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Company's reputation.
GE Aerospace does not expect the need for new long-term debt issuances by the Company for the foreseeable future
with the expectation that the current MTN portfolio remains until maturity. The CP programme continues presently
albeit no CP is in issue at year end. The Company has access to the cash pool should it be required.
GECIHL has guaranteed that it will meet the liabilities of the CP and MTN programmes should the Company be
unable to meet these liabilities. GE Aerospace, has also guaranteed the CP and MTN programmes of the Company
thus reducing further the risk to any potential investor and supporting the CP and MTN programmes. As part of the
Company’s processes, management monitor the ratings of GECIHL and the GE Aerospace affiliates with which the
Company trades.
GE Aerospace receives information from other business units regarding the liquidity profile of their financial assets
and financial liabilities and details of other projected cash flows arising from projected future business. The
repayment terms of debt securities issued are outlined in Note 18. GE Aerospace maintains a portfolio of short-term
liquid assets, largely made up of short-term liquid investment securities, loans and advances to banks and other
inter-bank facilities, to ensure that sufficient liquidity is maintained within the Company. The Company also has
access to short term liquidity through their access to the GE Cashpool operated by CMS. The Directors with the
assistance of GE Aerospace monitor the ongoing liquidity requirements of the Company in detail, and by way of
short-term loans from GE Aerospace cover any short term fluctuations and obtain longer term funding to address
any structural liquidity requirements. The overall daily liquidity position is monitored by GE Aerospace.
51
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(b) Liquidity risk (continued)
At 31 December 2024, the Company held derivative assets for qualifying hedging relationships purposes of USD 23
million (2023: USD 22 million) and derivative assets for trading purposes of USD nil (2023: USD Nil). The
Company held derivative liabilities for qualifying hedging relationships purposes of USD 62 million (2023: USD 9
million) and derivative liabilities for trading purposes of USD nil (2023: USD Nil).
All derivatives were placed with another GE Aerospace affiliate whose external derivative liabilities are backed by
GE Aerospace’s BBB+ (2023: BBB+) credit rating. The derivative assets and liabilities have been split between
qualifying hedging relationships and not in qualifying hedging relationships, disclosing separately those derivatives
that qualify as hedge under IAS 39 from those that do not.
Residual contractual maturities of financial assets
Note
Carrying
amount
Current
amount
Non-current
amount
In millions of USD
31 December 2024
Non-derivative financial assets
Loans and advances to GE Aerospace affiliates
17 1,641 661 980
Cash and cash equivalents
- - -
Other assets 3 3 -
1,644 664 980
Derivative assets
Inflow - held for qualifying hedging relationships
16 23 23 -
Outflow - held for qualifying hedging relationships
16
- - -
23 23 -
1,667 687 980
52
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(b) Liquidity risk (continued)
Residual contractual maturities of financial assets
Note
Carrying
amount
Current
amount
Non-current
amount
In million of $
31 December 2023
Non-derivative financial assets
Loans and advances to GE Aerospace affiliates
17 2,084 1,087 997
Cash and cash equivalents - - -
2,084 1,087 997
Derivative assets
Inflow - held for qualifying hedging relationships
16 22 22 -
Outflow - held for qualifying hedging relationships
16
- - -
22 22 -
2,106 1,109 997
The above tables show the undiscounted cash flows on the Company’s financial assets on the basis of their
contractual maturity.
Non-current loans to GE Aerospace affiliates represent revolving credit agreements that have a maturity greater than
one year where the lender does not have the ability to demand repayment of the loans.
53
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(b) Liquidity risk (continued)
Residual contractual maturities of financial liabilities
Note
Carrying
amount
Gross nominal
inflow/(outflow)
Less than 1
month 1-3 months
3 months to 1
year 1-5 years
More than 5
years
In millions of USD
31 December 2024
Non derivative liabilities
Loans and advances from
GE Aerospace affiliates
17
59 (59) (59)
- - - -
Debt securities issued
18
1,113 (1,535) (3)
- (60) (240) (1,233)
Other liabilities
- - -
- - - -
1,172 (1,594) (62) - (60) (240) (1,233)
Derivative liabilities
Inflow - held for
qualifying hedging
relationships
16
- - -
- - - -
Outflow - held for
qualifying hedging
relationships
16
62 (62) -
- - - (62)
62 (62) - - - - (62)
Undrawn loan
commitments
- (25) -
- (25) - -
1,234 (1,681) (62)
- (85) (240) (1,295)
At 31 December 2024, loans and advances from GE Aerospace affiliates represent outstanding principal and interest balances on cashpool borrowings with a GE Aerospace
affiliate.
54
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(b) Liquidity risk (continued)
Re
sidual contractual maturities of financial liabilities (continued)
Note
Carrying
amount
Gross nominal
inflow/(outflow)
Less than 1
month 1-3 months
3 months to 1
year 1-5 years
More than 5
years
In millions of USD
31 December 2023
Non derivative liabilities
Loans and advances from GE
Aerospace affiliates
17 410 (410) (410) - - - -
Debt securities issued
18 1,256 (1,678) (57) - (61) (244) (1,316)
Other liabilities - - - - - - -
1,666 (2,088) (467) - (61) (244) (1,316)
Derivative liabilities
Inflows – held for qualifying
hedging relationships
16 (1,240) 1,240 - - - - 1,240
Outflows – held for qualifying
hedging relationships
16
1,249 (1,249) - - - - (1,249)
9 (9) - - - - (9)
Undrawn loan commitments - (1,800) - - (1,800) - -
1,675 (3,897) (467) - (1,861) (244) (1,325)
At 31 December 2023, loans and advances from GE Aerospace affiliates represent outstanding principal and interest balances on cashpool borrowings with a GE
Aerospace affiliate.
55
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(b) Liquidity risk (continued)
Residual contractual maturities of financial liabilities (continued)
The previous table shows the undiscounted cash flows on the Company's financial liabilities and unrecognised loan
commitments on the basis of their earliest possible contractual maturity. The Company's expected cash flows on
these instruments may vary significantly from this analysis.
The gross nominal inflow/(outflow) disclosed in the previous table is the contractual, undiscounted cash flow on the
financial liability or commitment. The disclosure for derivatives shows a net amount for derivatives that are net
settled, and a gross inflow and outflow amount for derivatives that have simultaneous gross settlement.
To manage the liquidity risk arising from financial liabilities, the Company holds liquid assets comprising cash and
cash equivalents held in cashpools. Hence, the Company believes that it is not necessary to disclose a maturity
analysis in respect of these assets to enable users to evaluate the nature and extent of liquidity risk. The cash
balances pool with another GE Aerospace affiliate nightly, is payable on demand and is recorded under loans and
advances from GE Aerospace affiliates and/or loans and advances to GE Aerospace affiliates depending on whether
the cash has been borrowed from or lent to the cash pool.
(c) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rate, equity prices and
credit spreads (not relating to changes in the obligor’s / issuer’s credit standing) will affect the Company’s income
or the value of its holdings of financial instruments. The objective of market risk management is to manage and
control market risk exposures within acceptable parameters, while optimising the return on risk.
Exposure to foreign currency risk
The principal market risk faced by the Company relates to currency risk as almost all borrowing and lending is in
GBP while the functional currency is USD. The following table sets out the Company's non-USD monetary assets
and liabilities at 31 December 2024 and the net exposure in original currency and USD of those monetary assets and
liabilities.
56
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(c) Market risk (continued)
31 December 2024
Original Currency Amounts
Currency Monetary Assets Monetary Liabilities Swap Net Exposure Rates Net Exposure
'000 '000 '000 '000 USD'000
GBP 789,137 (935,882) (32,278) (179,023) 1.2522 (224,173)
31 December
2023
Original Currency Amounts
Currency Monetary Assets
Monetary
Liabilities
Swaps/FX
forwards
Net Exposure Rates Net Exposure
'000 '000 '000 '000 USD'000
GBP 794,828 (986,598) 10,518 (181,252) 1.275 (231,042)
A 1% appreciation/depreciation in the GBP/USD exchange rate as at 31 December 2024 would give rise to
approximately a USD 2 million loss/profit based on the net exposure at 31 December 2024 (2023: USD 2 million).
57
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(c) Market risk (continued)
At 31 December 2024, the Company held the following instruments to hedge exposures to change in interest rates.
31 December 2024
Carrying
Amount
Non Interest
bearing
Less than 3
month
3-6 month 6-12 month 1-5 years
More than 5
years
USD’m USD’m USD’m USD’m USD’m USD’m USD’m
Derivative assets held for qualifying hedging
purposes
23 - - - 23 - -
Other assets 3 3 - - - - -
Loans and advances to GE Aerospace
affiliates
1,641 10 481 20 150 980 -
1,667 13 481 20 173 980 -
Derivative liabilities held for qualifying
hedging purposes
(62) - - - - - (62)
Loans and advances from GE Aerospace
affiliates
(59) - (59) - - - -
Debt securities issued (1,113) (3) - - - - (1,110)
Other liabilities - - - - - -
(1,234) (3) (59) - - - (1,172)
Effect of derivatives held for risk
management (notional)
- - (980) - - 980
Average fixed interest rate - - - - - - 6.71%
Sensitivity gap - - (558) 20 173 980 (192)
58
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(c) Market risk (continued)
At 31 December 2023, the Company held the following instruments to hedge exposures to change in interest rates.
31 December 2023
Carrying
Amount
Non Interest
bearing
Less than 3
month
3-6 month 6-12 month 1-5 years
More than 5
years
USD’m USD’m USD’m USD’m USD’m USD’m USD’m
Derivative assets held for qualifying hedging
purposes
22 - - - - - 22
Loans and advances to GE Aerospace
affiliates
2,084 38 952 20 77 997 -
2,106 38 952 20 77 997 22
Derivative liabilities held for qualifying
hedging purposes
(9) - - - - - (9)
Loans and advances from GE Aerospace
affiliates
(410) (5) (405) - - - -
Debt securities issued (1,256) (57) - - - - (1,199)
Other liabilities - - - - - -
(1,675) (62) (405) - - - (1,208)
Effect of derivatives held for risk
management (notional)
- - (997) - - 997
Average fixed interest rate - - - - - - 6.71%
Sensitivity gap - - (450) 20 77 997 (189)
59
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(c) Market risk (continued)
The amounts relating to items designated as hedging instruments against debt securities and hedge ineffectiveness were as follows:
In millions of USD
31 December 2024 Carrying amount
Nominal
amount
Assets Liabilities
Line item in the statement
of financial position where
the hedging instrument is
included
Changes in the value
of the hedging
instrument recognised
in SOCI
Hedge
ineffectiveness
recognised in
SOCI
Line item in SOCI
that includes
hedging
ineffectiveness
Interest rate
swaps held for
qualifying
hedging
relationships
980 23 (62)
Non-Current Assets:
Derivative assets held for
qualifying hedging
relationships; Current Assets:
Derivative assets held for
qualifying hedging
relationships
(55) (3)
Net (loss)/gain from
financial instruments
carried at fair value
31 December 2023
Interest rate
swaps held for
qualifying
hedging
relationships
997 22 (9)
Non-Current Assets:
Derivative assets held for
qualifying hedging
relationships; Current Assets:
Derivative assets held for
qualifying hedging
relationships
36 (6)
Net (loss)/gain from
financial instruments
carried at fair value
60
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
14 Financial risk management (continued)
(d) Other price risk
Other price risk is the risk that the fair value of the financial instruments will fluctuate as a result of changes in
market prices (other than those arising from interest rate risk or currency risk), whether caused by factors specific to
an individual instrument, its issuer or factors affecting all instruments traded in the market.
One GE Aerospace affiliate, RYZ, accounted for 23% (2023: 0%) of the Company revenue and another GE
Aerospace affiliate, CMS, accounted for 66% (2023: 51%) of Company revenue.
In addition to the above, the Company entered into lending commitments of USD 25 million (31 December 2023:
USD 1,800 million) with 100% owned GE Aerospace affiliates.
61
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
15 Accounting classifications and fair values
The table below sets out the carrying amounts and fair values of the financial assets and liabilities.
Fair value through profit or loss Amortised Cost
In millions of USD
31 December 2024
Held for qualifying
hedging
relationships
Derivatives not
in qualifying
hedging
relationships Amortised cost
Qualifying hedging
relationships at
amortised cost
Total Carrying
Amount Fair Value *
Derivative assets held for qualifying hedging
relationships
23 - - - 23 23
Loans and advances to GE Aerospace affiliates
- - 1,641 - 1,641 1,640
Other assets - - 3 - 3 3
23 - 1,644 - 1,667 1,666
Derivative liabilities held for qualifying hedging
relationships
(62) - - - (62) (62)
Loans and advances from GE Aerospace
affiliates
- - (59) - (59) (59)
Debt securities issued
- - - (1,113) (1,113) (1,080)
Other liabilities - - - - - -
(62) - (59) (1,113) (1,234) (1,201)
62
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
15 Accounting classifications and fair values (continued)
Fair value through profit or loss Amortised Cost
In millions of USD
31 December 2023
Held for
qualifying
hedging
relationships
Derivatives not
in qualifying
hedging
relationships Amortised cost
Qualifying
hedging
relationships at
amortised cost
Total Carrying
Amount Fair Value *
Derivatives assets held for qualifying hedging
relationships
22 - - - 22 22
Loans and advances to GE Aerospace affiliates
- - 2,084 - 2,084 2,046
Other assets - - - - - -
22 - 2,084 - 2,106 2,068
Derivative liabilities held for qualifying hedging
relationships
(9) - - - (9) (9)
Loans and advances from GE Aerospace affiliates
- - (410) - (410) (410)
Debt securities issued
- - - (1,256) (1,256) (1,147)
Other liabilities - - - - - -
(9) - (410) (1,256) (1,675) (1,566)
*All “Loans and advances to affiliates” are with GE Aerospace affiliates and planned to be held to maturity and are Level 2 inputs. Market risks are key
assumptions in the estimation of the fair value of “loans and advances to GE Aerospace affiliates”. Derivative assets and liabilities are valued using internal
models. These models maximise the use of market observable inputs including market observable swap rates and spread indicators obtained from three leading
market makers.
63
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
16 Financial assets and liabilities
Fair value hedging relationships
At 31 December 2024, certain MTNs shown within debt securities issued are in interest rate hedging relationships
valued at USD 980 million (31 December 2023: USD 997 million). These are nominal valued with respect to the
hedged interest risk.
Derivatives held for risk management and trading
All derivatives are entered into for risk management purposes. However, those that qualify under IAS 39 for hedge
accounting are disclosed separately from those that are not. All the derivatives are with a GE Aerospace affiliate,
HMS.
31 December 2024
USD'000
31 December 2023
USD'000
Derivative assets held for qualifying hedging relationships
22,612 21,611
Derivative liabilities held for qualifying hedging relationships (62,380) (9,092)
(39,768) 12,519
Fair value hedges of interest rate risk
The Company used interest rate swaps to hedge its exposure to changes in the fair value of its fixed rate GBP debt
securities issued. Interest rate swaps were matched to specific issuances of fixed rate notes. At 31 December 2024,
the fair value of derivative assets designated as fair value hedges is USD 23 million (31 December 2023: USD 22
million) and the fair value of derivative liabilities designated as fair value hedges is USD 63 million (31 December
2023: USD 9 million).
The notional amounts of all interest rate swaps outstanding at 31 December 2024 were USD 980 million (31
December 2023: USD 997 million).
64
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
17 Loans and advances
Loans and advances to GE Aerospace affiliates
31 December 2024
USD'000
31 December 2023
USD'000
Amounts falling due within one year
661,202 1,086,277
Amounts falling after one year
979,877 997,483
1,641,079 2,083,760
The Company had undrawn loan commitments, all to other GE Aerospace affiliates of USD 25 million at 31
December 2024 (2023: USD 1,800 million). An undrawn commitment is the amount of any given credit facility that
has not been drawn by the borrower. The longest of these commitments is the commitment with GE Aerospace that
has the potential to extend to 2025.
Loans and advances from GE Aerospace affiliates
31 December 2024
USD'000
31 December 2023
USD'000
Amounts falling due within one year 59,084 409,863
59,084 409,863
18 Debt securities issued
31 December 2024 31 December 2023
USD’000 USD’000
Debt securities issued falling due within one year 2,703 57,043
Debt securities issued falling after one year
1,110,126 1,199,311
1,112,829 1,256,354
31 December 2024 31 December 2023
USD’000 USD’000
Fixed rate debt securities in qualifying hedging relationship 1,112,829 1,256,354
Fixed rate debt securities held at amortised cost (no longer
inqualifying hedging relationships)
- -
1,112,829 1,256,354
65
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
18 Debt securities issued (continued)
At 31 December 2024, USD 980 million (2023: USD 997 million) of nominal debt securities issued are expected to
be settled more than twelve months after the reporting date.
The above table shows the carrying amount of debt securities issued at years end 31 December 2024 and 31
December 2023. The carrying amount of debt securities issued designated at amortised cost in qualifying hedging
relationships at 31 December 2024 was USD 144 million higher than the contractual amount at maturity (2023: USD
218 million).
The table below analyses nominal movements in medium term notes.
2024 2023
Medium Term Medium Term
Notes Notes
USD’000 USD’000
Opening balance 997,481 1,409,089
Maturities - (477,586)
Foreign exchange (loss)/gain
(17,604) 65,978
Closing balance
979,877 997,481
The Company has not had any defaults of principal, interest or other breaches with respect to its debt securities
during 2024 or 2023.
Foreign exchange arises due to large gross movements in balances, maturities and issuances have been translated at
the rates of exchange prevailing at the dates of transaction and opening and closing balances have been translated at
the closing rates of exchange as at 31 December 2024 and 31 December 2023.
66
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
19 Changes in liabilities from financing activities
1 January 2024 Cash Flows Non-cash Changes
31 December
2024
FX Movements
Fair Value
Changes
Accrued interest and
fee
31 December 2024
USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Debt securities issued
1,256,354 - (17,606) (73,315) (52,604) 1,112,829
1 January 2023 Cash Flows Non-cash Changes
31 December
2023
FX Movements
Fair Value
Changes
Accrued interest and
fee
31 December 2023
USD’000 USD’000 USD’000 USD’000 USD’000 USD’000
Debt securities issued
1,644,205 (477,586) 65,978 27,008 (3,251) 1,256,354
67
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
20 Related party disclosures
(a) Transactions with subsidiary undertakings and other affiliate GE Aerospace companies
The Company enters into financial transactions with other GE Aerospace affiliates in the normal course of business.
These include loans and derivative instruments. In addition, the Company enter into transactions with GE Aerospace
and derivative transactions with HMS. Transactions and balances between the Company and other GE Aerospace
affiliates are detailed in relevant notes.
From 3 December 2015, the guarantee for the CP and MTN programmes is now provided by GECIHL and GE
Aerospace. No fee has been payable from this date for this guarantee.
The below table provides the Company's transactions with related parties including its immediate parent, GE Ireland
USD Holdings Unlimited Company.
Related Party 2024 2023
USD’000 USD’000
Service fee expense
GE Treasury Ireland Services Unlimited Company (109) (1,731)
GE Management Services Ireland Limited (209) -
Net interest income and expense on loan and advances
with GE Aerospace affiliates
GE Financial Funding Unlimited Company - 51,984
Cash Management Services Inc. 38,390 39,522
GE Ireland CHF Funding Unlimited Company 1,212 711
GE Ireland USD Holdings Unlimited Company 1,330 1,333
GE Capital Treasury Services (U.S.) LLC - (12,284)
GE RZU Holdings LLC - 528
GE Capital Global Holdings, LLC 16,296 -
General Electric Company 6,903 (1,576)
GE Aviation Global Holdings B.V. (318) -
(Loss)/gain on derivative instruments
Hedge Management Services, Inc.
(54,711) 45,347
8,784 123,834
68
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
20 Related party disclosures (continued)
The below table lists the related parties that the Company has balances or has transacted with during the year.
Balances and transactions during the year with the immediate parent, GE Ireland USD Holdings Unlimited
Company are included in the below table.
Related Party
Opening Balance
1/1/2024
Receipts/FV
adjustments
during the
financial year
Repayments/FV
adjustments during
the financial year
Closing Balance
31/12/2024
USD’000 USD’000 USD’000 USD’000
Service fee accrued
GE Treasury Ireland Services
Unlimited Company
25 (25) - -
GE Management Services
Ireland Limited
- (208) - (208)
Net of loans and advances
Cash Management Services
Inc.
1,554,986 - (598,307) 956,679
GE Ireland CHF Funding
Unlimited Company
20,221 - (3) 20,218
GE Ireland USD Holdings
Unlimited Company
20,267 - (51) 20,216
GE Capital Global Holdings - 454,302 - 454,302
General Electric Company 78,424 27,473 - 105,897
GE Aviation Global Holdings - 24,682 - 24,682
Derivative instruments held
Hedge Management Services,
Inc.
12,519 - (52,287) (39,768)
Total
1,686,442 506,224 (650,648) 1,542,018
69
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
20 Related party disclosures (continued)
(b) Compensation of Key Management Personnel
Disclosures are made in Note 9 in accordance with the provisions of IAS 24 - Related Party Disclosures and
Company law in respect of the compensation of Key Management Personnel. Under IAS 24 - Related Party
Disclosures, “Key Management Personnel” are defined as comprising the Directors (executive and non-executive)
during the year and at year end.
The compensation of key management personnel during the year consists of short-term employment benefits of
USD 108,018 and post-employment benefits of USD 1,398. There are no long-term benefits, termination benefits or
share-based payment during the year. Directors' remuneration for the year ended 31 December 2024 was paid by an
affiliated entity as outlined in Note 9. Directors remuneration has been included in the service fee charged from this
company.
(c) Transactions with Key Management Personnel
There were no loans, quasi-loans or credit transactions outstanding to its key management personnel at any time
during the current or preceding financial year.
21 Operating segments
The Company’s business is organised as a single segment and the Company earned all material revenues in the
Republic of Ireland. All of the Company’s revenues arise from the provision of loans to GE Aerospace affiliates.
2024
Ireland
USD'000
2023
Ireland
USD'000
Revenue from loans and advances to GE Aerospace affiliates
74,571 104,534
Revenue from commitment fees from GE Aerospace affiliates - 264
Total segment revenue
74,571 104,798
One GE Aerospace affiliate, RYZ, accounted for 23% (2023: 0%) of the Company revenue and another GE
Aerospace affiliate, CMS, accounted for 66% (2023: 51%) of Company revenue. No other GE Aerospace affiliates
accounted for more than 10% of total revenue.
2024
Ireland
USD'000
2023
Ireland
USD'000
Reportable segment profit/(loss) before tax
1,609 (6,269)
70
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028
GE Capital UK Funding Unlimited Company
Notes to the financial statements 31 December 2024 (continued)
21 Operating segments (continued)
2024
USD'000
2023
USD'000
Reportable segment assets
1,666,198 2,105,396
Reportable segment liabilities
1,234,502 1,675,309
Loans to CMS, accounted for 61% of segment assets at 31 December 2024 (at 31 December 2023: 94%). Loans to
RYZ, accounted for 27% of segment assets at 31 December 2024 (at 31 December 2023: 0%). No other GE
Aerospace affiliates accounted for more than 10% of segment assets.
22 Holding Company
At 31 December 2024, the Company is a wholly owned subsidiary of GE Ireland USD Holdings Unlimited
Company, an unlimited Company incorporated in the Ireland, which is ultimately a wholly owned subsidiary of GE
Aerospace, a company incorporated in the USA.
At the 31 December 2024, the smallest and largest group in which the results of the company are consolidated is that
headed by its ultimate parent undertaking and controlling party, General Electric Company ('GE Aerospace'), a
company registered at 1 Research Circle, Niskayuna, NewYork, 12309, USA, with principal executive offices at 1
Neumann Way, Evendale, Hamilton County, OH, 45215-1915, USA. The consolidatd financial statements of this
company are available to the public and may be obtained from the address of the principal executive offices or at
www.geaerospace.com.
23 Commitments and contingencies
The Company had commitments to lend USD 25 million at 31 December 2024 (2023: USD 1,800 million).
In the opinion of the Directors, the Company had no contingent liabilities at 31 December 2024 (2023: Nil).
24 Subsequent events
Thomas Geary and Michael Power resigned as non-executive Directors effective from 14 March 2025.
No other significant events affecting the Company occurred since the reporting date, which require adjustment to or
disclosure in the Financial Statements.
25 Approval of financial statements
The Directors approved the Financial Statements on 23 April 2025.
71
Docusign Envelope ID: E4244930-D32D-446F-AE60-2B0C9D63F028