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GE Annual Report 2007
Invest and Deliver
Every Day

Table of contents

  • Page 1
    GE Annual Report 2007 Invest and Deliver Every Day

  • Page 2
    ...12 Invest and Deliver ...Every Day 36 Governance 38 Citizenship 39 Financial Section 114 Corporate Management 116 Corporate Information • Third straight year of organic revenue growth of 2 to 3 times GDP growth • Earnings per share (EPS) of $2.20, an increase of 18% • Global revenue growth of...

  • Page 3
    ... cash ï¬,ow, and returned $25.4 billion to investors through the dividend and stock buyback. We performed well against the operating metrics that we use to measure our progress. Organic revenue growth was 9%, surpassing our goal of growing at 2 to 3 times GDP growth. Earnings per share (EPS) from...

  • Page 4
    ... that burn landfill gas, land use for wind- and solar-power generation, hybrid commercial vehicles, and emerging waste-conversion technologies that produce electricity or synthetic fuels. Ecomagination has become a global brand, symbolic of innovation at GE. We are viewed as a technical partner by...

  • Page 5
    ...) John G. Rice, Vice Chairman, GE and President & Chief Executive Officer, GE Infrastructure Jeffrey R. Immelt, Chairman of the Board & Chief Executive Officer Keith S. Sherin, * Vice Chairman, GE and Chief Financial Officer Michael A. Neal, Vice Chairman, GE and Chairman, GE Capital Services

  • Page 6
    ... healthcare products in Saudi Arabia to address a $20 billion market in the region by 2010. At the Dubai Air Show last November, GE captured $10 billion of commercial engine wins from Middle Eastern airlines. We are building equipment-servicing shops in Algeria, Angola, Qatar, and Abu Dhabi. Growth...

  • Page 7
    ... world. We diversified our Healthcare and NBC Universal (NBCU) franchises by investing in fast-growth markets such as life sciences, healthcare IT, and cable programming. We created a new high-tech industrial business called Enterprise Solutions. And we dramatically expanded our financial services...

  • Page 8
    ... on wind energy, new gas turbines, and an investment to build the first commercial Integrated Gasification Combined Cycle (IGCC) coal plant. We are strategic, technical, and financial partners. About 35% of our earnings are in Commercial Finance and GE Money. Financial services is a great example...

  • Page 9
    ... Promoter Scores to measure our progress with customers. We have built strong engineering and commercial teams around the world to tap into new growth markets. One area of focus has been on enhancing the value of the GE brand. In 2003, we launched a new GE brand campaign called "imagination at work...

  • Page 10
    ... productivity plans to meet our profit goals. Initiatives work in a multi-business company. Our teams are trained to share ideas with each other and they love to compete. At GE, a single best practice can generate billions of dollars in savings, earnings, and revenues for investors. We develop...

  • Page 11
    ... and deliver. We are winning in the essential themes; we have built leadership businesses; we are a high-performance company; and we develop great leaders. I am compensated to deliver for you. In 2003, the GE Board's Management Development and Compensation Committee (MDCC) decided to put all of my...

  • Page 12
    ... Senior Vice President & Chief Financial Officer, Commercial Finance 7. Pamela Daley Senior Vice President, Corporate Business Development 8. Susan P. Peters Vice President, Executive Development & Chief Learning Officer 9. Mark W. Begor President & Chief Executive Officer, GE Money, Americas 10...

  • Page 13
    ... Executive Officer, Equipment Services 23. Stephen R. Bolze Vice President, Power Generation 24. Michael A. Neal Vice Chairman, GE and Chairman, GE Capital Services 25. Brian B. Worrell Vice President, Corporate Audit Staff 26. Elizabeth J. Comstock President, Integrated Media, NBC Universal, Inc...

  • Page 14
    .... Every day. Every year. Every decade. It is the combination of a few simple truths that together describe the power of one GE: We are a company positioned to win in the essential themes of this era using scale to meet the needs of people and societies around the world. 12 ge 2007 annual report

  • Page 15
    ... through any cycle. We are a high-performance company with the breadth to spread ideas to drive superior organic growth, margins, cash ï¬,ow, and returns. We develop great leaders with the experience, passion for learning, and ability to deliver in all environments. ge 2007 annual report 13

  • Page 16
    ... will require more of GE's products and services than at any other time in our history. The future will be shaped by six essential themes: A massive investment in infrastructure technology, the rise of emerging markets, a demand for environmental solutions, expanding demographics, the transforming...

  • Page 17
    ... and controls, electrical power distribution, and compression equipment. ADDITIONAL OIL PRODUCTION (Growth from 2005-2010) Operating profit is up 58% in GE's Oil & Gas business year over year. The business's projected revenue goal is $10 billion by 2010. A. On-shore B. Off-shore shallow water...

  • Page 18
    ... MARKETS REVENUES 2001 2007 2010* (In $ billions) ~50 Vertical success story Brazil-based Vale is the world's largest iron ore producer. Since 1972 GE has provided Vale with products and services ranging from transportation to water processing to plant automation. In 2007 we signed a strategic...

  • Page 19
    ... lack access to clean water, global energy demand will grow 50%, and CO2 emissions will be more highly regulated. The world's environmental challenges present an opportunity for GE to do what it does best: imagine and build innovative solutions that benefit our customers, society, and investors. GE...

  • Page 20
    ... that create opportunities for GE's businesses. Global healthcare spending is $5 trillion per year. To capitalize on this market, GE Healthcare is designing, engineering, and building medical diagnostic products tailored to the local market in places such as India. The MAC 400 electrocardiograph...

  • Page 21
    The GE MAC 400 in use in a remote village in Karnataka, India ge 2007 annual report 19

  • Page 22
    ... to $38 billion by 2010, while the healthcare IT market is expected to grow to $27 billion. Hulu.com, NBC Universal's joint-venture Web service with News Corp. for ad-supported distribution of premium content, is just one example. The site offers a vast selection of free content including TV shows...

  • Page 23
    ...-based Mubadala Development Company PSJC and Credit Suisse to invest in infrastructure projects in the Middle East, Turkey, and North Africa. GE will continue to look for strategic investments, co-investment opportunities, and new funding sources to help fuel growth. A. Financial services B. Energy...

  • Page 24
    ... of essential technologies to developed and emerging countries, including aviation, energy, oil and gas, transportation, and water-process technologies and services. GE Infrastructure also provides financing services to aviation, energy, and transportation companies. GE Commercial Finance SEGMENT...

  • Page 25
    ... NBC Universal is one of the world's leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information for a global audience. SEGMENT PROFIT 1997 2002 2007 (In $ billions) 3.1 1.7 1.1 GE Money GE Money is a leading provider of credit...

  • Page 26
    ...in one of the world's fastest growing markets. Serving GE Money 3 million customers in India. GE Industrial Leveraging technology across oil and gas, aviation, water, energy, and healthcare to build a new business, Enterprise Solutions, with over $4 billion in revenues. Strengthening safety by...

  • Page 27
    ... fuel efficient. Partnering locally to help meet the demand from an expected $200 billion new power investment in India. Using telematics to save customers ~ $400 million in fuel and 1.2 metric tons of CO2. Providing financial solutions to help address the demand for housing units for over 22...

  • Page 28
    ... research centers: Niskayuna, New York; Bangalore, India; Munich, Germany; and Shanghai, China. Across these centers, approximately 3,000 research employees deliver breakthroughs that fuel growth across GE's businesses, ensuring that GE is well-positioned to capitalize in an ever-changing world...

  • Page 29
    ...cable business, which accounts for 50% of its profits, had a successful year with strong performances from CNBC, MSNBC, USA (the number one cable channel), SCI FI, Bravo, and its new addition, Oxygen. The news division once again had the top programs in their time slots with NBC "Nightly News," the...

  • Page 30
    ... Raghu Krishnamoorthy Human Resources Tom Gentile Aviation Dan Henson Chief Marketing Officer Caroline Reda* Enterprise Solutions Steve Fludder Water & Process Technologies Jean-Michel Cossery* Healthcare Lynn Pendergrass Consumer & Industrial Chet Fuller* Aviation 28 ge 2007 annual report

  • Page 31
    ... years. Under the direction of Dan Henson, chief marketing officer, the Council draws together the Company's leading marketing, sales, human resources, and communications expertise to create new ideas and foster existing ones. The Leadership, Innovation and Growth team training program, enterprise...

  • Page 32
    ... Solem Water & Process Technologies Jeanne Rosario* Aviation Brian Masterson Oil & Gas Todd Wyman Transportation John Eck* NBC Universal Russell Stokes Aviation Roger Gasaway Enterprise Solutions Jack Fish Consumer & Industrial Richard Simpson* Consumer & Industrial Raphael Strosin Healthcare Wayne...

  • Page 33
    ge 2007 annual report 31

  • Page 34
    We develop great global leaders. Attracting the right talent is only the first step. 32 ge 2007 annual report

  • Page 35
    ...* Commercial Finance Bill Robinson Enterprise Solutions Athena Kaviris Capital Solutions Susan Peters* Vice President, Executive Development & Chief Learning Officer John Loomis* Infrastructure Steve Thorne GE Money Mike Hanley* Healthcare, London Heather Wang International, Shanghai ge 2007 annual...

  • Page 36
    ... executive compensation programs are essential to being a premier global company - and to creating long-term value for our shareowners. A great company requires great people For more than 100 years, GE has developed a system of disciplined oversight that has produced many successful leaders...

  • Page 37
    ...best in everyone around them. 2007 CEO GOALS & OBJECTIVES Strategic & Operational Goals Execute financial plan Create a more valuable portfolio Sustain financial strength and capital allocation Drive organic revenue growth at 2 to 3 times GDP Manage risk and reputation • The reported businesses...

  • Page 38
    ... of independent directors, met three times to consider GE's governance charter and practices, and director nominations. The Public Responsibilities Committee, in three meetings, reviewed GE's 2007 Citizenship Report, globalization and free trade, NBC Universal intellectual property protection...

  • Page 39
    ... 4 Vice Chairman, General Electric Company. Director since 2000. (not pictured) 1 Audit Committee 2 Management Development and Compensation Committee 3 Nominating and Corporate Governance Committee 4 Public Responsibilities Committee 5 Presiding Director internal directors ge 2007 annual report 37

  • Page 40
    ...goals, strategies, and accountabilities that drive any other part of our business. GE applies its long-standing spirit of innovation and unique set of capabilities to take on tough challenges in our communities. In 2007, we dramatically expanded our signature programs, â„¢ Developing Health Globally...

  • Page 41
    ...to investors. Management's Annual Report on Internal Control Over Financial Reporting ...In this report our Chief Executive and Financial Officers provide their assessment of the effectiveness of our internal control over financial reporting. Report of Independent Registered Public Accounting Firm...

  • Page 42
    ... meetings of non-management directors this year, helping us sharpen our full Board meetings to better cover significant topics. Compensation policies for our executives are aligned with the long-term interests of GE investors. We welcome the strong oversight of our financial reporting activities...

  • Page 43
    ... Registered Public Accounting Firm To Shareowners and Board of Directors of General Electric Company: We have audited the accompanying statement of financial position of General Electric Company and consolidated affiliates ("GE") as of December 31, 2007 and 2006, and the related statements of...

  • Page 44
    ... media businesses of General Electric Company (GE) with the financial services businesses of General Electric Capital Services, Inc. (GECS or financial services). In the accompanying analysis of financial information, we sometimes use information derived from consolidated financial information...

  • Page 45
    ... early 2008. We believe that Healthcare is positioned well for continued strong growth. NBC Universal (10% and 12% of consolidated three-year revenues and total segment profit, respectively) has developed into a diversified world-class media company. While the technology and business model for the...

  • Page 46
    ...of total GE sales in 2007, 2006 and 2005, respectively. enterprise, our tax rates are affected by many factors, including our global mix of earnings, legislation, acquisitions, dispositions and tax characteristics of our income. Our tax returns are routinely audited and settlements of issues raised...

  • Page 47
    ... Board and committee meeting agendas are jointly developed with management to cover risk topics presented to our Corporate Risk Committee, including environmental, compliance, liquidity, credit and market risks. The GECS Board of Directors oversees the risk management process for financial services...

  • Page 48
    ..., GE Money, Healthcare, NBC Universal and Industrial. For segment reporting purposes, certain GECS businesses including Aviation Financial Services, Energy Financial Services and Transportation Finance are reported in the Infrastructure segment because Infrastructure actively manages such businesses...

  • Page 49
    ... Segments General Electric Company and consolidated affiliates (In millions) 2007 2006 2005 2004 2003 REVENUES Infrastructure Commercial Finance (a) GE Money Healthcare NBC Universal Industrial (a) Total segment revenues Corporate items and eliminations CONSOLIDATED REVENUES SEGMENT PROFIT...

  • Page 50
    ... refer to as "net earnings," for Commercial Finance, GE Money, and the financial services businesses of the Infrastructure segment (Aviation Financial Services, Energy Financial Services and Transportation Finance). In addition to providing information on segments in their entirety, we have...

  • Page 51
    ... a result of a $0.6 billion increase in net earnings from real estate investments. See Corporate Items and Eliminations for a discussion of items not allocated to this segment. GE MONEY (In millions) 2007 2006 2005 REVENUES Capital Solutions Real Estate SEGMENT PROFIT $14,354 7,021 $ 1,889 2,285...

  • Page 52
    ... the effect of lower prices ($0.4 billion). The rise in volume related to increases in healthcare services, including the 2006 acquisition of IDX Systems Corporation and stronger equipment sales. Segment profit of $3.1 billion was 21% higher than in 2005 as productivity ($0.6 billion) and higher...

  • Page 53
    ...of product quality issues), $0.4 billion at Healthcare, $0.3 billion at each of NBC Universal, Commercial Finance and Infrastructure and $0.1 billion at GE Money. Amounts in 2007 also included technology and product development costs of $0.1 billion at NBC Universal. GECS amounts are on an after-tax...

  • Page 54
    ... growth, acquisitions and the effects of the weaker U.S. dollar in Europe, the Pacific Basin and the Americas, primarily at Commercial Finance and GE Money. Financial results of our global activities reported in U.S. dollars are affected by currency exchange. We use a number of techniques to manage...

  • Page 55
    .... At December 31, 2007, investment securities in an unrealized loss position included $0.1 billion that was at risk of being charged to earnings in the next 12 months. Impairment losses totaled $0.1 billion in both 2007 and 2006, primarily at Commercial Finance. In 2007, we recognized impairments...

  • Page 56
    .... Related nonearning receivables at December 31, 2007, were $0.1 billion (1.4% of outstanding receivables) compared with $0.1 billion (1.2% of outstanding receivables) at December 31, 2006. Delinquency rates on managed Commercial Finance equipment loans and leases and managed GE Money financing...

  • Page 57
    ... 2006, primarily reï¬,ecting acquisitions and additions of commercial aircraft at the Aviation Financial Services business of Infrastructure and ï¬,eet vehicles at Commercial Finance. GE property, plant and equipment consisted of investments for its own productive use, whereas the largest element...

  • Page 58
    ...in a sound position to grow dividends, continue making selective investments for long-term growth and execute our newly authorized three-year $15 billion share repurchase program. 45 25 A. Cash flows from operating activities B. Dividends paid C. Shares repurchased ($) 12 Our GE Statement of Cash...

  • Page 59
    ...commercial paper and term bond markets. The assets that we securitize include receivables secured by equipment, commercial and residential real estate, credit card receivables, trade receivables and other assets originated and underwritten by us in the normal course of business. At December 31, 2007...

  • Page 60
    ... and leasing activities, short-term secured funding on global assets and potential sales of other assets. PRINCIPAL DEBT CONDITIONS are described below. The following conditions relate to consolidated entities. • If the short-term credit rating of GE Capital or certain consolidated entities...

  • Page 61
    ... type. However, the global real estate market is subject to periodic cycles that can cause significant ï¬,uctuations in market values. While the current estimated value of our Commercial Finance Real Estate investments exceeds our carrying value by about $3 billion, the same as last year, downward...

  • Page 62
    ... our deferred acquisition costs and present value of future profits. Further information is provided in the Financial Resources and Liquidity - Goodwill and Other Intangible Assets section and in notes 1 and 15. Our discount rates for principal pension plans at December 31, 2007, 2006 and...

  • Page 63
    ...information on income taxes is provided in the Operations - Overview section and in notes 7 and 20. DERIVATIVES AND HEDGING. We use derivatives to manage a Other Information New Accounting Standards On September 15, 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial...

  • Page 64
    ...year-end 2006, reï¬,ecting increased demand at Infrastructure. Of the total backlog, $49.4 billion related to products, of which 64% was scheduled for delivery in 2008. Product services orders, included in this reported backlog for only the succeeding 12 months, were $16.2 billion at the end of 2007...

  • Page 65
    ... - basic Dividends declared Stock price range Year-end closing stock price Total assets of continuing operations Total assets Long-term borrowings Shares outstanding - average (in thousands) Shareowner accounts - average Employees at year end United States Other countries Total employees GE DATA...

  • Page 66
    ... General Electric Company and consolidated affiliates For the years ended December 31 (In millions; per-share amounts in dollars) 2007 2006 2005 REVENUES Sales of goods Sales of services Other income (note 3) GECS earnings from continuing operations GECS revenues from services (note 4) Total...

  • Page 67
    ... consolidated financial statements; "GECS" means General Electric Capital Services, Inc. and all of its affiliates and associated companies. Transactions between GE and GECS have been eliminated from the "General Electric Company and consolidated affiliates" columns. ge ge 2006 2007 annual report...

  • Page 68
    Statement of Financial Position General Electric Company and consolidated affiliates At December 31 (In millions, except share amounts) 2007 2006 ASSETS Cash and equivalents Investment securities (note 9) Current receivables (note 10) Inventories (note 11) Financing receivables - net (notes 12 ...

  • Page 69
    ... consolidated financial statements; "GECS" means General Electric Capital Services, Inc. and all of its affiliates and associated companies. Transactions between GE and GECS have been eliminated from the "General Electric Company and consolidated affiliates" columns. ge ge 2006 2007 annual report...

  • Page 70
    ... of 90 days or less) Newly issued debt (maturities longer than 90 days) Repayments and other reductions (maturities longer than 90 days) Net purchases of GE shares for treasury Dividends paid to shareowners All other financing activities Cash from (used for) financing activities - continuing...

  • Page 71
    ... consolidated financial statements; "GECS" means General Electric Capital Services, Inc. and all of its affiliates and associated companies. Transactions between GE and GECS have been eliminated from the "General Electric Company and consolidated affiliates" columns. ge ge 2006 2007 annual report...

  • Page 72
    ..., GE Money, Healthcare, NBC Universal and Industrial. For segment reporting purposes, certain GECS businesses including Aviation Financial Services, Energy Financial Services and Transportation Finance are reported in the Infrastructure segment because Infrastructure actively manages such businesses...

  • Page 73
    ... practice, for commercial engines, we make such provision only if such losses are not recoverable from future highly probable sales of spare parts for those engines. We sell product services under long-term agreements in our Infrastructure segment, principally Aviation, Energy and Transportation...

  • Page 74
    ... loans secured by residential real estate (both revolving and closed-end loans) are written down to the fair value of collateral, less costs to sell, no later than when they become 360 days past due. During 2007, we conformed our reserving methodology in our residential mortgage loan portfolios...

  • Page 75
    ... securities We report investments in debt and marketable equity securities, and equity securities in our insurance portfolio, at fair value based on quoted market prices or, if quoted prices are not available, discounted expected cash ï¬,ows using market rates commensurate with the credit quality...

  • Page 76
    ... personal loan business (Lake), our U.S. mortgage business (WMC), Plastics, Advanced Materials, GE Life, Genworth Financial, Inc. (Genworth) and most of GE Insurance Solutions Corporation (GE Insurance Solutions) as discontinued operations. Associated results of operations, financial position and...

  • Page 77
    ... the sale of the property and casualty insurance and reinsurance businesses and the European life and health operations of GE Insurance Solutions to Swiss Re for $9,297 million, including the assumption of $1,700 million of debt. We received $5,359 million in cash and $2,238 million of newly issued...

  • Page 78
    ... RETIREE BENEFIT PLANS provide health and life insurance GECS Revenues from Services (In millions) 2007 2006 2005 Interest on loans Equipment leased to others Fees Investment income (a) Financing leases Real estate investments Premiums earned by insurance activities Associated companies Gross...

  • Page 79
    ...-term securities must generally be invested in securities rated A1/P1 or better, except for 15% of such securities that may be rated A2/P2. GE common stock represented 5.9% and 6.1% of trust assets at year-end 2007 and 2006, respectively, and is subject to a statutory limit at 10% of total trust...

  • Page 80
    ... the Statement of Financial Position Retiree health plans Due within one year Due after one year Retiree life plans Net liability recognized Amounts recorded in shareowners' equity Prior service cost Net actuarial loss Total $(11,179) $(6,552) Pension benefits We sponsor a number of pension plans...

  • Page 81
    ... securities Debt securities Real estate Private equities Other 30 - 45% 15 - 25 15 - 32 4 - 10 5 - 11 1 - 10 32% 20 24 9 9 6 38% 21 22 5 7 7 (a) Principally associated with discount rate changes. (b) The PBO for the GE Supplementary Pension Plan was $3,437 million and $3,554 million at year-end...

  • Page 82
    ... credit ratings of Double A or better from the major rating agencies. Our subprime investment securities were collateralized primarily by pools of individual, direct mortgage loans, not other structured products such as collateralized debt obligations. Other pension plans (weighted average) 2007...

  • Page 83
    ...or regulations may affect our tax liability, return on investments and business operations. For example, GE's effective tax rate is reduced because active business income earned and indefinitely reinvested outside the United States is taxed at less than the U.S. rate. A significant portion of this...

  • Page 84
    ...) 1.58 Shares of GE common stock outstanding Employee compensation-related shares, including stock options Total average equivalent shares PER-SHARE AMOUNTS Earnings from continuing operations Earnings (loss) from discontinued operations Net earnings per share (a) Included dividend equivalents of...

  • Page 85
    ... insurance businesses and holders of guaranteed investment contracts. 2007 Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Amortized cost 2006 Gross unrealized gains Gross unrealized losses Estimated fair value December 31 (In millions) GE Debt - U.S. corporate...

  • Page 86
    ...-SALE DEBT SECURITIES (EXCLUDING MORTGAGE-BACKED AND ASSET-BACKED SECURITIES) (In millions) Amortized cost Estimated fair value December 31 (In millions) 2007 Debt U.S. corporate State and municipal Residential mortgagebacked Commercial mortgagebacked Asset-backed Corporate - non-U.S. Government...

  • Page 87
    ... of Aviation goods and services on open account to various agencies of the U.S. government, our largest single customer. About 4% of our sales of goods and services were to the U.S. government in 2007, 2006 and 2005. COMMERCIAL FINANCE Equipment and leasing Commercial and industrial Real estate GE...

  • Page 88
    ... leases of aircraft, railroad rolling stock, autos, other transportation equipment, data processing equipment, medical equipment, commercial real estate and other manufacturing, power generation, and commercial equipment and facilities. For federal income tax purposes, the leveraged leases and...

  • Page 89
    ... U.S. Non-U.S. Infrastructure Other BALANCE AT DECEMBER 31 149 369 1,319 - 2 1,839 Commercial Finance GE Money U.S. Non-U.S. Infrastructure Other Total 1,105 1,024 2,155 27 18 $ 4,329 See note 12 for amounts related to consolidated, liquidating securitization entities. ge 2007 annual report 87

  • Page 90
    .... (c) The Aviation Financial Services business of Infrastructure recognized impairment losses of $110 million in 2007 and $51 million in 2006 recorded in the caption "Other costs and expenses" in the Statement of Earnings to reï¬,ect adjustments to fair value based on current market values from...

  • Page 91
    ... the fair values of assets and liabilities acquired and consolidate the acquisition as quickly as possible. Given the time it takes to obtain pertinent information to finalize the acquired company's balance sheet, then to adjust the acquired company's accounting policies, procedures, books and...

  • Page 92
    ..., 2007, investments were located in the Americas (48%), Europe (33%) and Asia (19%). (c) Assets were classified as held for sale on the date a decision was made to dispose of them through sale, securitization or other means. Such assets consisted primarily of real estate properties and credit card...

  • Page 93
    ... receiving rating agency equity credit at December 31, 2007 and 2006, respectively. Total (a) Based on year-end balances and year-end local currency interest rates. Current portion of long-term debt included the effects of related interest rate and currency swaps, if any, directly associated with...

  • Page 94
    ...28 years and related to hedges of long-term, non-U.S. dollar denominated fixed rate debt. See note 26. Note 18 GECS Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits December 31 (In millions) 2007 2006 Investment contracts Guaranteed investment contracts Total investment...

  • Page 95
    ... of consolidated affiliates. (b) The preferred stock primarily pays cumulative dividends at variable rates. Dividend rates in local currency on the preferred stock ranged from 3.88% to 5.52% during 2007 and 3.28% to 5.49% during 2006. GE Pension asset - principal plans Intangible assets Contract...

  • Page 96
    ...) GE has 50 million authorized shares of preferred stock ($1.00 par value), but has not issued any such shares as of December 31, 2007. - 8,324 $ (3,819) 3,254 $ - 3,137 Note 23 $ Other Stock-Related Information We grant stock options, restricted stock units (RSUs) and performance share units...

  • Page 97
    ... COMPENSATION PLANS Securities to be issued upon exercise Weighted average exercise price Securities available for future issuance STOCK OPTION ACTIVITY Weighted average exercise price Weighted average remaining contractual term (In years) Aggregate intrinsic value (In millions) December 31, 2007...

  • Page 98
    ... connection with our sale of GE Insurance Solutions, Swiss Re assumed $1,700 million of debt, and GE received $2,238 million of newly issued Swiss Re common stock. See note 2. In 2005, NBC Universal acquired IAC/InterActiveCorp's 5.44% common interest in VUE for a total purchase price that included...

  • Page 99
    ...918 $ Increase in loans to customers Principal collections from customers - loans Investment in equipment for financing leases Principal collections from customers - financing leases Net change in credit card receivables Sales of financing receivables ALL OTHER INVESTING ACTIVITIES $ $(410,336...

  • Page 100
    ... 2005 Property, plant and equipment additions(c) For the years ended December 31 2007 2006 2005 Depreciation and amortization For the years ended December 31 2007 2006 2005 Infrastructure Commercial Finance GE Money Healthcare NBC Universal Industrial Corporate items and eliminations Total $118...

  • Page 101
    ... (11,026) (a) (a) Assets Loans Other commercial and residential mortgages held for sale Loans held for sale Other financial instruments (c) Liabilities Borrowings (b)(d) Investment contract benefits Guaranteed investment contracts Insurance - credit life (e) (a) These financial instruments do...

  • Page 102
    .... Insurance - credit life Certain insurance affiliates, primarily in GE Money, issue credit life insurance designed to pay the balance due on a loan if the borrower dies before the loan is repaid. As part of our overall risk management process, we cede to third parties a portion of this associated...

  • Page 103
    ... rating. Receivables secured by Equipment Commercial real estate Residential real estate Other assets Credit card receivables Trade receivables Total securitized assets (a)(b) $ 6,552 9,244 204 12,880 22,793 3,440 $55,113 $ 7,568 7,865 - 13,257 13,497 3,918 $46,105 (a) At December 31, 2007 and...

  • Page 104
    ... data related to securitization sales of revolving and long-term receivables that we completed during 2007 and 2006. (Dollars in millions) Equipment Commercial real estate Credit card receivables Other assets Retained interests Servicing assets Servicing liabilities Recourse liabilities Total...

  • Page 105
    ...607 million of future customer acquisitions of aircraft equipped with our engines, including commitments made to airlines in 2007 for future sales under our GE90 and GEnx engine campaigns. The Aviation Financial Services business of Infrastructure had placed multiple-year orders for various Boeing...

  • Page 106
    ... (766) - $1,240 (a) Primarily related to Infrastructure and Healthcare. Note 29 Quarterly Information (Unaudited) First quarter (In millions; per-share amounts in dollars) 2007 2006 Second quarter 2007 2006 Third quarter 2007 2006 Fourth quarter 2007 2006 CONSOLIDATED Earnings from continuing...

  • Page 107
    ...tability on spare parts related to certain long-term product services agreements. Contract estimates This adjustment corrected effects of an error in applying revenue measurement principles in certain Infrastructure businesses subject to AICPA Statement of Position 81-1, Accounting for Performance...

  • Page 108
    ... for General Electric Company and consolidated affiliates as of December 31, 2007, and the basis for presentation in this report, follows. GE Money Private-label credit cards; personal loans; bank cards; auto loans and leases; mortgages; debt consolidation; home equity loans; corporate travel...

  • Page 109
    ... three years ended December 31, 2007 • Growth in industrial cash from operating activities (CFOA) in 2007 GE consolidated revenues as reported Less the effects of Acquisitions, business dispositions (other than dispositions of businesses acquired for investment) and currency exchange rates The...

  • Page 110
    ...revenue growth in 2003 (In millions) 2003 2002 % change GE consolidated revenues as reported Less the effects of Acquisitions, business dispositions (other than dispositions of businesses acquired for investment) and currency exchange rates Insurance Energy Investigation-related adjustments Revenue...

  • Page 111
    ... Revenues 2006 Operating profit Revenues 2005 Operating profit Revenues 2004 Operating profit Revenues 2003 Operating profit As reported Infrastructure Industrial Healthcare NBC Universal Less effects of Financial services components reported in Infrastructure Inter-company transactions between GE...

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    ... principal businesses purchased and dividends paid represents an informative measure of cash available for investing and financing activities that we refer to as free cash ï¬,ow. Delinquency rates on certain financing receivables Delinquency rates on managed Commercial Finance equipment loans and...

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    ... that all quarterly dividends were reinvested. The total cumulative dollar returns shown on the graph represent the value that such investments would have had on December 31, 2007. FIVE-YEAR FINANCIAL PERFORMANCE (In dollars) 170 2002 2003 2004 2005 2006 2007 175 158 156 131 GE S&P 500 DJIA...

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    .... Commonly used as a hedging tool. See "Hedge." GOODWILL The premium paid for acquisition of a business. maturities of three months or less, such as commercial paper. Typically included with cash for reporting purposes, unless designated as available-for-sale and included with investment securities...

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    ... accepted rating of individual consumer creditworthiness. TURNOVER Broadly based on the number of times that working capital is replaced during a year. Accounts receivable turnover is total sales divided by the five-point average balance of customer receivables from sales of goods and services...

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    ..., Healthcare Financial Services Darren H. Alcus Vice President, Commercial Finance J. Keith Morgan Vice President & General Counsel Ronald R. Pressman President & Chief Executive Officer, Real Estate Alec Burger President, North America Lending Jayne L. Day Vice President & Chief Risk Officer Mark...

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    ...& Chief Executive Officer, Security Gregory Burge Vice President & General Manager, Americas Commercial Dennis C. Cooke Vice President & General Manager, Homeland Protection M. Roger Gasaway Vice President, Global Supply Chain Jerry A. Rose Vice President & General Manager, Global Product Management...

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    ... [email protected]. Contact the GE Board of Directors For reporting complaints about GE's financial reporting, internal controls and procedures, auditing matters or other concerns to the Board of Directors or the Audit Committee, write to GE Board of Directors, General Electric Company...

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    ... interactive online annual report at www.ge.com/annual07 Thanks to the customers, partners and GE employees who appear in this annual report for contributing their time and support. This document was printed on paper that contains from 10% to 100% post-consumer material. The majority of the power...

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