<PAGE>
               UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  -------------
                                    FORM 10-Q
                                  -------------


       | X |   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended September 25, 1999

                                       OR

       |   |  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                        For the transition period from ___ to ___

                         ------------------------------
                         Commission file number 0-14804
                         ------------------------------

                     GENERAL ELECTRIC CAPITAL SERVICES, INC.
                    -----------------------------------------
             (Exact name of registrant as specified in its charter)

            DELAWARE                                          06-1109503
(State or other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                          Identification No.)

      260 LONG RIDGE ROAD,
     STAMFORD, CONNECTICUT                                      06927
(Address of principal executive offices)                     (Zip Code)

                                 (203) 357-4000
              (Registrant's telephone number, including area code)

                         ------------------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes |X| No | |

At October 26,  1999,  1,012  shares of common  stock with a par value of $1,000
were outstanding.

REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b)
OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THE REDUCED  DISCLOSURE
FORMAT.

<PAGE>


                                TABLE OF CONTENTS



                                                                 PAGE
                                                               --------


PART I - FINANCIAL INFORMATION

Item 1.       Financial Statements .......................         1

Item 2.       Management's Discussion and Analysis of
              Results of Operations ......................         6

Exhibit 12.   Computation of Ratio of Earnings to Fixed
              Charges and Computation of Ratio of Earnings
              to Combined Fixed Charges and Preferred Stock
              Dividends ..................................        10


PART II - OTHER INFORMATION

Item 6.       Exhibits and Reports on Form 8-K ...........        11

Signatures ...............................................        12

Index to Exhibits.........................................        13









<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

              CONDENSED STATEMENT OF CURRENT AND RETAINED EARNINGS

                                   (Unaudited)

                                                                    THREE MONTHS ENDED      NINE MONTHS ENDED
                                                                   -------------------     --------------------
                                                                 SEPTEMBER   SEPTEMBER   SEPTEMBER   SEPTEMBER
                                                                        25,         26,         25,         26,
(In millions)                                                         1999        1998        1999        1998
                                                                   --------    --------    --------    --------
<S>                                                                <C>         <C>         <C>         <C>
REVENUES
Revenues from services .........................................   $ 11,650    $ 10,210    $ 33,810    $ 29,643
Sales of goods .................................................      2,352       1,806       5,953       5,325
                                                                   --------    --------    --------    --------
                                                                     14,002      12,016      39,763      34,968
                                                                   --------    --------    --------    --------
EXPENSES
Interest .......................................................      2,291       2,188       6,641       6,400
Operating and administrative ...................................      4,010       3,311      11,507       9,690
Cost of goods sold .............................................      2,124       1,681       5,441       4,891
Insurance losses and policyholder and annuity benefits .........      2,764       2,239       8,088       6,852
Provision for losses on financing receivables ..................        227         306       1,048       1,047
Depreciation and amortization of buildings and
 equipment and equipment on operating leases ...................        792         669       2,300       1,929
Minority interest in net earnings of consolidated affiliates ...         49          38         132         104
                                                                   --------    --------    --------    --------
                                                                     12,257      10,432      35,157      30,913
                                                                   --------    --------    --------    --------
EARNINGS
Earnings before income taxes ...................................      1,745       1,584       4,606       4,055
Provision for income taxes .....................................       (483)       (502)     (1,220)     (1,159)
                                                                   --------    --------    --------    --------

NET EARNINGS ...................................................      1,262       1,082       3,386       2,896
Dividends ......................................................       (473)       (433)     (1,268)     (1,312)
Retained earnings at beginning of period .......................     16,404      13,886      15,075      12,951
                                                                   --------    --------    --------    --------
RETAINED EARNINGS AT END OF PERIOD .............................   $ 17,193    $ 14,535    $ 17,193    $ 14,535
                                                                   ========    ========    ========    ========
</TABLE>






See Notes to Condensed, Consolidated Financial Statements.

                                       1
<PAGE>

ITEM 1.  FINANCIAL STATEMENTS (Continued)

<TABLE>
<CAPTION>
       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES
                    CONDENSED STATEMENT OF FINANCIAL POSITION

                                                                                         SEPTEMBER    DECEMBER
                                                                                                25,         31,
(In millions)                                                                                 1999        1998
                                                                                           --------    --------
                                                                                         (Unaudited)
<S>                                                                                        <C>         <C>
ASSETS
Cash and equivalents ...................................................................   $  5,109    $  3,342
Investment securities ..................................................................     77,827      78,458
Financing receivables:
  Time sales and loans, net of deferred income .........................................     84,679      77,283
  Investment in financing leases, net of deferred income ...............................     46,124      47,571
                                                                                           --------    --------
                                                                                            130,803     124,854
  Allowance for losses on financing receivables ........................................     (3,447)     (3,288)
                                                                                           --------    --------
    Financing receivables - net ........................................................    127,356     121,566
Other receivables - net ................................................................     30,268      25,973
Inventories ............................................................................      1,376         744
Equipment on operating leases (at cost), less accumulated amortization of
 $7,700 and $7,021 .....................................................................     22,227      20,941
Intangible assets ......................................................................     14,376      13,639
Other assets ...........................................................................     45,268      38,634
                                                                                           --------    --------
      TOTAL ASSETS .....................................................................   $323,807    $303,297
                                                                                           ========    ========

LIABILITIES AND SHARE OWNERS' EQUITY
Short-term borrowings ..................................................................   $118,394    $113,162
Long-term borrowings:
  Senior ...............................................................................     64,618      58,042
  Subordinated .........................................................................        996         996
Insurance liabilities, reserves and annuity benefits ...................................     83,898      77,259
Other liabilities ......................................................................     24,377      21,062
Deferred income taxes ..................................................................      7,639       9,590
                                                                                           --------    --------
      Total liabilities ................................................................    299,922     280,111
                                                                                           --------    --------
Minority interest in equity of consolidated affiliates .................................      4,358       3,459
                                                                                           --------    --------

Accumulated unrealized gains (losses) on investment securities - net ...................        (66)      2,376
Accumulated foreign currency translation adjustments ...................................       (283)       (215)
                                                                                           --------    --------
Accumulated non-owner changes in share owners' equity ..................................       (349)      2,161

Capital stock ..........................................................................         11          11
Additional paid-in capital .............................................................      2,672       2,480
Retained earnings ......................................................................     17,193      15,075
                                                                                           --------    --------
      Total share owners' equity .......................................................     19,527      19,727
                                                                                           --------    --------
      TOTAL LIABILITIES AND SHARE OWNERS' EQUITY .......................................   $323,807    $303,297
                                                                                           ========    ========
</TABLE>





See Notes to Condensed, Consolidated Financial Statements.

                                       2
<PAGE>

ITEM 1.  FINANCIAL STATEMENTS (Continued)

<TABLE>
<CAPTION>
       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                        CONDENSED STATEMENT OF CASH FLOWS

                                   (Unaudited)

                                                                                            NINE MONTHS ENDED
                                                                                           --------------------
                                                                                         SEPTEMBER   SEPTEMBER
                                                                                                25,         26,
(In millions)                                                                                 1999        1998
                                                                                           --------    --------
<S>                                                                                        <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings ...........................................................................   $  3,386    $  2,896
Adjustments to reconcile net earnings to cash provided from  operating
 activities:
    Provision for losses on financing receivables ......................................      1,048       1,047
    Depreciation and amortization of buildings and equipment and equipment
     on operating leases ...............................................................      2,300       1,929
    Other - net ........................................................................      3,812       2,126
                                                                                           --------    --------
      Cash from operating activities ...................................................     10,546       7,998
                                                                                           --------    --------

CASH FLOWS FROM INVESTING ACTIVITIES
Increase in loans to customers .........................................................    (68,540)    (48,120)
Principal collections from customers - loans ...........................................     59,128      43,711
Investment in equipment for financing leases ...........................................    (12,503)    (13,886)
Principal collections from customers - financing leases ................................     13,008      11,878
Net change in credit card receivables ..................................................      2,156       3,307
Buildings and equipment and equipment on operating leases:
    - additions ........................................................................     (7,559)     (4,050)
    - dispositions .....................................................................      4,408       2,031
Payments for principal businesses purchased, net of cash acquired ......................     (6,674)     (8,444)
Purchases of securities by insurance and annuity businesses ............................    (20,932)    (16,437)
Dispositions and maturities of securities by insurance and annuity businesses ..........     20,222      13,263
Other - net ............................................................................     (2,909)     (5,220)
                                                                                           --------    --------
      Cash used for investing activities ...............................................    (20,195)    (21,967)
                                                                                           --------    --------

CASH FLOWS FROM FINANCING ACTIVITIES
Net change in borrowings (maturities 90 days or less) ..................................     (5,339)      7,050
Newly issued debt - short-term (maturities 91-365 days) ................................      3,515       4,126
                  - long-term (longer than one year) ...................................     23,073      26,159
Proceeds - non-recourse, leveraged lease debt ..........................................        559         971
Repayments and other reductions:
                  - short-term (maturities 91-365 days) ................................     (8,205)    (17,992)
                  - long-term (longer than one year) ...................................     (1,302)     (4,298)
Principal payments - non-recourse, leveraged lease debt ................................       (248)       (333)
Proceeds from sales of investment contracts ............................................      5,768       3,464
Redemption of investment contracts .....................................................     (5,537)     (3,905)
Dividends paid .........................................................................     (1,268)     (1,312)
Issuance of variable cumulative preferred stock by consolidated affiliates .............        400         170
                                                                                           --------    --------
Cash from financing activities .........................................................     11,416      14,100
                                                                                           --------    --------

INCREASE IN CASH AND EQUIVALENTS .......................................................      1,767         131
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD ............................................      3,342       4,904
                                                                                           --------    --------
CASH AND EQUIVALENTS AT END OF PERIOD ..................................................   $  5,109    $  5,035
                                                                                           ========    ========
</TABLE>


See Notes to Condensed, Consolidated Financial Statements.


                                       3
<PAGE>

ITEM 1.  FINANCIAL STATEMENTS (Continued)

       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

              NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.     The accompanying  condensed quarterly financial  statements represent the
       adding  together  of General  Electric  Capital  Services,  Inc.  and all
       majority-owned  and  controlled  affiliates   (collectively  called  "the
       Corporation" or "GECS").  All significant  transactions  among the parent
       and consolidated  affiliates have been  eliminated.  Certain prior period
       data  have  been   reclassified   to  conform  to  the   current   period
       presentation.

2.     The condensed  consolidated quarterly financial statements are unaudited.
       These statements include all adjustments  (consisting of normal recurring
       accruals)  considered necessary by management to present a fair statement
       of the results of  operations,  financial  position  and cash flows.  The
       results  reported in these condensed  consolidated  financial  statements
       should not be regarded as  necessarily  indicative of results that may be
       expected for the entire year.

3.     In June 1998, the Financial Accounting  Standards Board  ("FASB")  issued
       Statement of Financial  Accounting  Standards  No.  133,  Accounting  for
       Derivative Instruments  and  Hedging  Activities (the  "Statement").  The
       Statement requires  that,  upon  adoption,  all  derivative   instruments
       (including certain derivative instruments embedded in other contracts) be
       recognized  in the balance sheet at fair value, and that  changes in such
       fair  values be  recognized in earnings unless specific hedging  criteria
       are met. Changes in the  values of  derivatives  that meet  these hedging
       criteria will ultimately offset related  earnings  effects of the  hedged
       items; effects of certain  changes in fair value are  recorded  in equity
       pending recognition  in  earnings.  In June 1999,  the FASB  delayed  the
       required effective  date of the new  standard  to January  1,  2001.  The
       impact of adoption  will be  determined  by  several  factors,  including
       the specific hedging  instruments in  place and  their  relationships  to
       hedged items, as well as market conditions.  Management has not estimated
       the  effect of adoption as it believes that such  determination  will not
       be  meaningful until closer to the adoption date.

4.     A summary of changes in share  owners' equity that do not result directly
       from transactions with share owners is provided below.

<TABLE>
<CAPTION>
                                                                                            THREE MONTHS ENDED
                                                                                           --------------------
                                                                                         SEPTEMBER   SEPTEMBER
                                                                                                25,         26,
(In millions)                                                                                 1999        1998
                                                                                           --------    --------
<S>                                                                                        <C>         <C>
Net earnings ...........................................................................   $  1,262    $  1,082
Unrealized losses on investment securities - net .......................................       (553)       (184)
Foreign currency translation adjustments ...............................................         31         (39)
                                                                                           --------    --------
  Total ................................................................................   $    740    $    859
                                                                                           ========    ========

                                                                                             NINE MONTHS ENDED
                                                                                           --------------------
                                                                                         SEPTEMBER   SEPTEMBER
                                                                                                25,         26,
                                                                                              1999        1998
                                                                                           --------    --------
Net earnings ...........................................................................   $  3,386    $  2,896
Unrealized gains (losses) on investment securities - net ...............................     (2,442)        240
Foreign currency translation adjustments ...............................................        (68)        (76)
                                                                                           --------    --------
  Total ................................................................................   $    876    $  3,060
                                                                                           ========    ========
</TABLE>



                                       4
<PAGE>

ITEM 1.  FINANCIAL STATEMENTS (Continued)

5.     Revenues and net earnings of the Corporation,  by operating  segment, for
       the  three  months  and  nine  months  ended  September 25,   1999    and
       September 26, 1998 were as follows:

<TABLE>
<CAPTION>

                                                                    THREE MONTHS ENDED       NINE MONTHS ENDED
                                                                   --------------------    --------------------
                                                                 SEPTEMBER   SEPTEMBER   SEPTEMBER   SEPTEMBER
                                                                        25,         26,         25,         26,
(In millions)                                                         1999        1998        1999        1998
                                                                   --------    --------    --------    --------
<S>                                                                <C>         <C>         <C>         <C>
REVENUES
Consumer Services ..............................................   $  4,855    $  4,054    $ 12,934    $ 11,530
Equipment Management ...........................................      3,834       3,637      11,449      10,645
Mid-Market Financing ...........................................      1,164         988       3,319       2,630
Specialized Financing ..........................................      1,042         921       2,854       2,445
Specialty Insurance ............................................      3,116       2,541       9,152       7,647
All other ......................................................         (9)       (125)         55          71
                                                                   --------    --------    --------    --------
  Total revenues ...............................................   $ 14,002    $ 12,016    $ 39,763    $ 34,968
                                                                   ========    ========    ========    ========
NET EARNINGS
Consumer Services ..............................................   $    397    $    250    $    820    $    551
Equipment Management ...........................................        171         172         605         519
Mid-Market Financing ...........................................        167         132         413         330
Specialized Financing ..........................................        255         228         733         636
Specialty Insurance ............................................        360         328       1,043         950
All other ......................................................        (88)        (28)       (228)        (90)
                                                                   --------    --------    --------    --------
  Total net earnings ...........................................   $  1,262    $  1,082    $  3,386    $  2,896
                                                                   ========    ========    ========    ========
</TABLE>




                                       5
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS

OVERVIEW

Net  earnings  for the first nine  months of 1999 were  $3,386  million,  a $490
million (17%) increase over the first nine months of 1998. The results reflected
the globalization and diversity of the Corporation's  businesses and were led by
double-digit increases in each of its five segments. The improvement in earnings
was largely  attributable to the effects of continued asset growth,  principally
from  acquisitions of businesses and portfolios and higher  origination  volume.

OPERATING RESULTS

TOTAL  REVENUES  from all  sources  increased  $4,795  million  (14%) to $39,763
million for the first nine months of 1999, compared with $34,968 million for the
first nine months of 1998. This increase primarily reflected acquisition-related
growth  in the  Mid-Market  Financing  segment  and a  combination  of core  and
acquisition growth in the Consumer Services,  Specialty  Insurance and Equipment
Management segments.

INTEREST EXPENSE for the first nine months of 1999 was $6,641 million, 4% higher
than for the first nine months of 1998.  The increase  reflected  the effects of
higher average borrowings used to finance asset growth,  partially offset by the
effects of lower average  interest  rates.  The  composite  interest rate on the
Corporation's  borrowings  for the first nine months of 1999 was 5.16%  compared
with 5.99% in the first nine months of 1998.

OPERATING AND  ADMINISTRATIVE  EXPENSES were $11,507  million for the first nine
months of 1999; a 19% increase over the first nine months of 1998.  The increase
primarily  reflected costs  associated  with businesses and portfolios  acquired
over  the past  year,  higher  investment  levels  and  increases  in  insurance
commissions.

COST OF GOODS SOLD is associated with activities of the  Corporation's  computer
equipment  distribution  and retail  businesses.  This cost  amounted  to $5,441
million for the first nine months of 1999,  compared with $4,891 million for the
first nine months of 1998. The increase primarily reflected the consolidation of
the retail operations.

INSURANCE LOSSES AND POLICYHOLDER AND ANNUITY BENEFITS  increased $1,236 million
to $8,088  million  for the first nine months of 1999,  compared  with the first
nine months of 1998.  The increase  primarily  reflected the effects of business
acquisitions,  growth in premium  volume,  and a higher  loss  ratio  within the
reinsurance  business  attributable to an increase in property-related  incurred
losses, partially offset by improved market conditions in the mortgage insurance
business.

PROVISION FOR LOSSES ON FINANCING  RECEIVABLES  was $1,048 million for the first
nine  months of 1999 which was  primarily  unchanged  compared to the first nine
months of 1998. These provisions  principally related to credit cards,  personal
loans and auto loans and auto leases in the Consumer Services segment, which are
discussed below under Portfolio Quality.

DEPRECIATION  AND  AMORTIZATION  OF BUILDINGS  AND  EQUIPMENT  AND  EQUIPMENT ON
OPERATING  LEASES  increased  $371 million to $2,300  million for the first nine
months of 1999 compared  with $1,929  million for the first nine months of 1998.
The  increase  was  principally  the  result of higher  levels of  equipment  on
operating leases, primarily reflecting acquisition growth.

PROVISION FOR INCOME TAXES was $1,220  million for the first nine months of 1999
(an  effective tax rate of 26.5%),  compared  with $1,159  million for the first
nine months of 1998 (an effective tax rate of 28.6%).  The higher  provision for
income taxes primarily reflected increased pre-tax earnings subject to statutory
rates partially offset by the lower effective tax rate caused by decreased taxes
on non-U.S. earnings.



                                       6
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
         OF OPERATIONS (Continued)

OPERATING SEGMENTS

Revenues and net earnings of the Corporation, by operating segment, for the nine
months  ended  September  25, 1999 and  September  26, 1998 are  summarized  and
discussed below.

<TABLE>
<CAPTION>
                                                                                             NINE MONTHS ENDED
                                                                                           --------------------
                                                                                         SEPTEMBER   SEPTEMBER
                                                                                                25,         26,
(In millions)                                                                                 1999        1998
                                                                                           --------    --------
<S>                                                                                        <C>         <C>
REVENUES
Consumer Services ......................................................................   $ 12,934    $ 11,530
Equipment Management ...................................................................     11,449      10,645
Mid-Market Financing ...................................................................      3,319       2,630
Specialized Financing ..................................................................      2,854       2,445
Specialty Insurance ....................................................................      9,152       7,647
All other ..............................................................................         55          71
                                                                                           --------    --------
  Total revenues .......................................................................   $ 39,763    $ 34,968
                                                                                           ========    ========

NET EARNINGS
Consumer Services ......................................................................   $    820    $    551
Equipment Management ...................................................................        605         519
Mid-Market Financing ...................................................................        413         330
Specialized Financing ..................................................................        733         636
Specialty Insurance ....................................................................      1,043         950
All other ..............................................................................       (228)        (90)
                                                                                           --------    --------
  Total net earnings ...................................................................   $  3,386    $  2,896
                                                                                           ========    ========
</TABLE>

Consumer Services revenues  increased 12% and net earnings increased 49% for the
first  nine  months of 1999,  compared  to the first  nine  months of 1998.  The
increase  in  revenues  was led by  acquisition-related  and core  growth in the
non-U.S.  consumer  finance  business  and the  consumer  savings and  insurance
business,  partially offset by the effects of asset reductions in U.S.  consumer
credit card and automobile  financing  activities.  The increase in net earnings
was led by a combination of acquisition-related  and core growth in the non-U.S.
consumer finance activities.

Equipment  Management  revenues  grew 8% and net earnings grew 17% for the first
nine months of 1999, compared to the corresponding  period in 1998. The increase
in  revenues  and  net  earnings  was  primarily   attributable  to  operational
improvements  in the  information  technology  products and  services  business,
acquisition-related  growth in fleet services and  structured  sales of aircraft
and core growth in aviation services.

Mid-Market  Financing  revenues grew 26% and net earnings  increased 25% for the
first  nine  months  of 1999,  compared  to the  corresponding  period  in 1998,
primarily as a result of acquisition-related growth.

Specialized  Financing  revenues rose 17% and net earnings  increased 15% in the
first  nine  months of 1999,  compared  to the first  nine  months of 1998.  The
increases  in revenues and net earnings  principally  reflected  asset growth as
well as the effects of asset gains, including securitizations.

Specialty  Insurance  revenues  grew 20% and net earnings  grew 10% in the first
nine months of 1999, compared to the corresponding  period in 1998. The increase
in revenues  resulted from increased  premium and investment  income  associated
with  acquisitions,  origination  volume and continued  growth in the investment
portfolios, as well as a higher level of realized gains on investment securities
in the  reinsurance  business.  The increase in net earnings was principally the
result of improved  conditions  in the mortgage  insurance  business and, in the
reinsurance business, a higher level of realized gains on investment securities,
partially offset by increased frequency and severity of property-related losses.


                                       7
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
         OF OPERATIONS (Continued)

PORTFOLIO QUALITY

FINANCING  RECEIVABLES  are the  financing  businesses  largest  asset and their
primary  source of revenues.  The  portfolio of  financing  receivables,  before
allowance for losses,  increased to $130.8  billion at September 25, 1999,  from
$124.9  billion at the end of 1998,  primarily  reflecting the effects of higher
origination volume and acquisition growth,  partially offset by foreign currency
translation on European financing receivables. The related allowances for losses
at September 25, 1999 amounted to $3.4 billion ($3.3 billion at the end of 1998)
and, in management's  judgment,  are  appropriate  given the risk profile of the
portfolio.  A discussion  about the quality of certain elements of the portfolio
of financing receivables follows. "Nonearning" receivables are those that are 90
days or more delinquent (or for which  collection has otherwise become doubtful)
and  "reduced-earning"  receivables are commercial  receivables whose terms have
been restructured to a below-market yield.

CONSUMER  FINANCING  RECEIVABLES,  primarily  credit card and personal loans and
auto loans and leases,  were $49.0  billion at September 25, 1999, a decrease of
$2.6 billion from the end of 1998.  Nonearning  receivables were $0.9 billion at
September 25, 1999, 1.8% of total consumer financing  receivables  compared with
$1.3  billion,  2.4% of  total  consumer  receivables,  at  December  31,  1998.
Write-offs of consumer receivables  decreased to $0.9 billion for the first nine
months of 1999  compared  with $1.1  billion  for the first nine months of 1998.
This decrease was primarily  attributable to the effects of lower  delinquencies
during the first  nine  months of 1999 as well as the  effects of lower  average
receivable balances resulting from securitization and other sales of portfolios.

OTHER FINANCING RECEIVABLES, totaling $81.8 billion at September 25, 1999 ($73.3
billion at December 31, 1998), consisted of a diverse commercial, industrial and
equipment  loan and lease  portfolio.  Related  nonearning  and  reduced-earning
receivables were less than 1% of total other financing  receivables at September
25, 1999 and December 31, 1998.

As discussed in the Corporation's  Annual Report on Form 10-K for the year ended
December 31, 1998,  Montgomery  Ward Holding Corp.  ("MWHC")  filed a bankruptcy
petition  for  reorganization  in 1997.  On August 2, 1999,  MWHC  emerged  from
bankruptcy under a plan of reorganization that was approved on July 15, 1999. As
part  of  the  restructuring,  the  Corporation  acquired  the  Signature  group
("Signature"),  which was not in bankruptcy, for cash, $285 million of which was
collected  on loans to MWHC.  The  Corporation  also  acquired the equity of the
reorganized  retailer,  Montgomery  Ward,  LLC  ("Wards"),  in exchange  for the
Corporation's   remaining  loans  to  MWHC.   After  these   transactions,   the
Corporation's  net investment in Wards and MWHC was $327 million.  The financial
condition at September 25, 1999,  and the results of  operations  from August 2,
1999 to September  25, 1999, of Signature and Wards are included in the Consumer
Services segment, and the increases in Sales of Goods and Cost of Goods Sold for
the first nine  months of 1999 as compared to the  corresponding  period in 1998
were substantially the result of the consolidation of Wards.

The Corporation held loans and leases to commercial  airlines amounting to $10.8
billion at September 25, 1999, up from $10.2 billion at the end of 1998.



                                       8
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
         OF OPERATIONS (Continued)

OTHER MATTERS

YEAR 2000

As discussed in the Corporation's  Annual Report on Form 10-K for the year ended
December 31, 1998, the  Corporation is applying a Six Sigma quality  approach to
identify and mitigate Year 2000 issues in its information systems,  products and
services,  facilities  and  suppliers.  Each business has a Year 2000 leader who
oversees  a  multi-functional  project  team  responsible  for  remediation  and
contingency planning,  applying a Six Sigma quality approach in four phases: (1)
define/measure- identify and inventory possible sources of Year 2000 issues; (2)
analyze- determine the nature and extent of Year 2000 issues and develop project
plans to address those issues;  (3) improve- execute project plans and perform a
majority of the testing; and (4) control- complete testing,  continue monitoring
readiness and complete necessary  contingency plans. As of the end of June 1999,
virtually  all   significant   information   systems,   products  and  services,
facilities,  and  suppliers  were in the control  phase.  As a final step in the
control  phase,  the  Corporation  has  developed,  tested  and is  prepared  to
implement   contingency  plans  to  minimize  disruption  of  critical  business
processes.  The specific  actions  identified in such  contingency  plans differ
depending  on  circumstances,   but  most  often  include  manual  work-arounds,
deployment of backup or secondary technologies,  rearranging work schedules, and
substitution  of suppliers,  as  appropriate.  While  management does not expect
significant  disruptions of critical business  processes caused by internal Year
2000 issues, the likelihood of externally-caused  disruptions and the ability of
the  contingency  plans to minimize such  externally-caused  disruptions  is not
determinable.  The  total  estimate  of Year  2000  expenditures,  adjusted  for
increases related to acquired companies,  is in line with previous  projections.
The activities  related to Year 2000 efforts  necessarily  involve estimates and
projections  of activities  and  resources  that will be required in the future.
These estimates and projections could change as work progresses.



                                       9
<PAGE>

                                                                      EXHIBIT 12
<TABLE>
<CAPTION>
       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                       AND
           COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
                          AND PREFERRED STOCK DIVIDENDS

                      NINE MONTHS ENDED SEPTEMBER 25, 1999
                                   (Unaudited)
                                                                       RATIO OF
                                                                       EARNINGS
                                                                          TO
                                                                       COMBINED
                                                                         FIXED
                                                           RATIO OF     CHARGES
                                                           EARNINGS       AND
                                                              TO      PREFERRED
                                                             FIXED       STOCK
(Dollar amounts in millions)                                CHARGES   DIVIDENDS
                                                           --------    --------
<S>                                                        <C>         <C>
Net earnings ...........................................   $  3,386    $  3,386
Provision for income taxes .............................      1,220       1,220
Minority interest in net earnings of consolidated
 affiliates ............................................        132         132
                                                           --------    --------
Earnings before provision for income taxes and
 minority interest .....................................      4,738       4,738
                                                           --------    --------
Fixed charges:
  Interest .............................................      6,805       6,805
  One-third of rentals .................................        256         256
                                                           --------    --------
Total fixed charges ....................................      7,061       7,061
                                                           --------    --------

Less interest capitalized, net of amortization .........        (64)        (64)
                                                           --------    --------
Earnings before provision for income taxes and minority
 interest, plus fixed charges ..........................   $ 11,735    $ 11,735
                                                           ========    ========

Ratio of earnings to fixed charges .....................       1.66
                                                           ========

Preferred stock dividend requirements ..................               $    --
Ratio of earnings before provision for income taxes
 to net earnings .......................................                   1.36
                                                                       --------
Preferred stock dividend factor on pre-tax basis .......                    --
Fixed charges ..........................................                  7,061
                                                                       --------
Total fixed charges and preferred stock dividend
 requirements ..........................................               $  7,061
                                                                       ========
Ratio of earnings to combined fixed charges and
 preferred stock dividends .............................                   1.66
                                                                       ========
</TABLE>


For purposes of computing the ratios,  fixed charges  consist of interest on all
indebtedness and one-third of rentals, which management believes is a reasonable
approximation of the interest factor of such rentals.


                                       10
<PAGE>

                           PART II--OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.


   a.  EXHIBITS.

       Exhibit 12.    Computation  of  ratio  of  earnings to  fixed charges and
                      computation of ratio of earnings to combined fixed charges
                      and preferred stock dividends.

       Exhibit 27.    Financial Data Schedule (filed electronically only).


   b.  REPORTS ON FORM 8-K.

       None.




                                       11
<PAGE>

                                   SIGNATURES

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

                                      GENERAL ELECTRIC CAPITAL SERVICES, INC.
                                                   (Registrant)


Date: October 26, 1999                By:         /s/ J.A. Parke
                                         ------------------------------------
                                                      J.A. Parke,
                                                Executive Vice President
                                               and Chief Financial Officer
                                              (Principal Financial Officer)



Date: October 26, 1999                By:         /s/ J.C. Amble
                                         ------------------------------------
                                                      J.C. Amble,
                                             Vice President and Controller
                                             (Principal Accounting Officer)





                                       12
<PAGE>

       GENERAL ELECTRIC CAPITAL SERVICES, INC. AND CONSOLIDATED AFFILIATES

                                INDEX TO EXHIBITS


EXHIBIT NO.                                                             PAGE
-----------                                                           --------

   12       Computation   of  ratio  of  earnings  to  fixed
            charges  and computation of ratio of earnings to
            combined fixed charges and preferred stock dividends ...     16


   27       Financial Data Schedule (filed electronically only)




                                       13
<PAGE>