UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549
**FORM 10-Q

(Mark One) 
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE    SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2004
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 incorporation or    organization) 
(I.R.S. Employer Identification No.)   **260 Long Ridge Road, Stamford, CT **06927
 

(Address of principal executive offices) 
(Zip Code) 
(Registrant's telephone number, including area code)**(203) 357-4000**
_______________________________________________    (Former name, former address and former fiscal year,     if changed since last report)
Indicate by check mark whether the registrant (1) has filed allreports required to be filed by Section 13 or 15(d) of the Securities ExchangeAct of 1934 during the preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2) has been subject to suchfiling requirements for the past 90 days. Yes [X]  No [  ]

Indicate by check mark whether the registrant is an acceleratedfiler (as defined in Rule 12b-2 of the Act). Yes [  ] No [X]

At July 29, 2004, 1,064 shares of voting common stock, whichconstitutes all of the outstanding common equity, with a par value of $1,000 pershare were outstanding.
**REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONH(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM 10-Q WITH THEREDUCED DISCLOSURE FORMAT.**
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**Table of Contents**

 
**General Electric Capital Services, Inc.****Part I – Financial Information 
Page  

     Item 1. Financial Statements  
          Condensed Statement of    Current and Retained Earnings 
3
          Condensed    Statement of Financial Position 
4
          Condensed Statement    of Cash Flows 
5
     Notes to Condensed,    Consolidated Financial Statements (Unaudited) 
6
     Item 2. Management's Discussion    and Analysis of Results of Operations and Financial Condition 
12
     Item 4. Controls and Procedures 
23   **Part II – Other Information     
     Item 6. Exhibits and Reports on    Form 8–K 
23
     Signatures 
24   
 
**Forward-Looking Statements**
This document contains "forward-looking statements" within themeaning of the Private Securities Litigation Reform Act of 1995. Forward-lookingstatements may be identified by words such as "expects," "anticipates,""intends," "plans," "believes," "seeks," "estimates," "will" or words of similarmeaning and include, but are not limited to, statements about expected futurebusiness and financial performance. Forward-looking statements are based onmanagement's current expectations and assumptions, which are inherently subjectto uncertainties, risks and changes in circumstances that are difficult topredict. Actual outcomes and results may differ materially from theseexpectations and assumptions due to changes in global political, economic,business, competitive, market, regulatory and other factors. We undertake noobligation to publicly update or review any forward-looking information, whetheras a result of new information, future developments or otherwise. 

(2)
 

 
**Part I. Financial Information

Item 1. Financial Statements

Condensed Statement of Current and Retained EarningsGeneral Electric Capital Services, Inc. and consolidated affiliates(Unaudited)** **Second quarter ended     June 30 **Six months ended    June 30  
 
*(In millions)**2004 **2003 **2004  **2003 

Revenues from services (note 8)
$
16,405 
$
15,319 
$
32,772 
$
29,699 
Sales of goods  
728  
568  
1,304  
1,055  
 
 
  
 
Total revenues 
17,133  
15,887  
34,076  
30,754  
 
 
  
 
Interest 
2,818  
2,533 
5,489  
4,996 
Operating and administrative 
5,227  
4,610 
10,523  
8,693 
Cost of goods sold 
701  
465 
1,252  
902 
Insurance losses and policyholder and annuity benefits 
3,808  
4,256 
7,432  
8,241 
Provision for losses on financing receivables 
1,004  
978 
1,959  
1,738 
Depreciation and amortization  
1,442  
1,121 
2,882  
2,232 
Minority interest in net earnings of consolidated affiliates 
76  
25  
122  
63  
 
 
  
 
Total costs and expenses 
15,076  
13,988  
29,659  
26,865  
 
 
  
 
Earnings before income taxes  
2,057  
1,899 
4,417  
3,889 
Provision for income taxes 
(361
) 
(297
)
(876
) 
(617
) 
 
 
  
 
Net earnings 
1,696  
1,602 
3,541  
3,272 
Dividends 
(1,462
) 
(159
)
(1,842
) 
(328
)
Retained earnings at beginning of period 
31,769  
27,825  
30,304  
26,324  
 
 
  
 
Retained earnings at end of period
$
32,003 
$
29,268 
$
32,003 
$
29,268  
 
 
  
 

See "Notes to Condensed, Consolidated Financial Statements."  ****
(3)** 

 

Condensed Statement of Financial PositionGeneral Electric Capital Services, Inc. and consolidated affiliates
*(In millions)**June 30,     2004 **December 31,     2003 
 
 
(Unaudited)  
Cash and equivalents
$
7,995 
$
11,273 
Investment securities 
122,503  
121,910 
Financing receivables – net (note 5) 
252,701  
247,906 
Insurance receivables 
26,461  
27,537 
Other receivables – net 
14,328  
12,079 
Inventories 
190  
197 
Buildings and equipment, less accumulated amortization of    $19,885 and         $16,748 
44,918  
38,822 
Intangible assets (note 6) 
27,555  
24,821 
Other assets 
72,239  
69,981  
 
 
Total assets
$
568,890 
$
554,526  
 
 
Borrowings (note 7)
$
325,311 
$
320,318 
Accounts payable 
17,185  
13,547 
Insurance liabilities, reserves and annuity benefits 
138,110  
136,264 
Other liabilities 
23,961  
23,238 
Deferred income taxes 
9,691  
10,736 

Total liabilities
514,258
504,103

Minority interest in equity of consolidated affiliates
8,737
5,115

Capital stock 
11
11
Additional paid-in capital
12,342
12,258
Retained earnings
32,003
30,304
Accumulated gains/(losses) – net (a)
     Investment securities
222
1,823
     Currency translation adjustments
2,414
2,639
     Derivatives qualifying as hedges
(1,097
)
(1,727
)

Total shareowner's equity
45,895
45,308

Total liabilities and equity
$
568,890
$
554,526************************************