GE 2007 Annual Report Download - page 95
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ge 2007 annual report 93
Note 20
Deferred Income Taxes
Aggregate deferred income tax amounts are summarized below.
December 31 (In millions) 2007 2006
ASSETS
GE $13,122 $11,704
GECS 8,951 7,552
22,073 19,256
LIABILITIES
GE 16,513 13,244
GECS 17,704 20,122
34,217 33,366
Net deferred income tax liability
$12,144 $14,110
Principal components of our net liability (asset) representing
deferred income tax balances are as follows:
December 31 (In millions) 2007 2006
GE
Pension asset — principal plans $ 7,067 $ 5,257
Intangible assets 2,609 1,934
Contract costs and estimated earnings 2,215 1,767
Depreciation 1,360 1,334
Provision for expenses
(a) (6,426) (6,965)
Retiree insurance plans (4,616) (2,654)
Non-U.S. loss carryforwards
(b) (925) (818)
Other — net 2,107 1,685
3,391 1,540
GECS
Financing leases 7,089 8,314
Operating leases 4,478 4,327
Intangible assets 1,426 1,287
Allowance for losses (1,588) (1,514)
Non-U.S. loss carryforwards
(b) (810) (652)
Cash fl ow hedges (494) (50)
Other — net (1,348) 858
8,753 12,570
Net deferred income tax liability
$12,144 $14,110
(a) Represented the tax effects of temporary differences related to expense accruals
for a wide variety of items, such as employee compensation and benefi ts, interest
on tax liabilities, product warranties and other sundry items that are not currently
deductible.
(b) Net of valuation allowances of $557 million and $509 million for GE and $225 million
and $171 million for GECS, for 2007 and 2006, respectively. Of the net deferred tax
asset as of December 31, 2007, of $1,735 million, $49 million relates to net operat-
ing loss carryforwards that expire in various years ending from December 31, 2008,
through December 31, 2010, $141 million relates to net operating losses that expire
in various years ending from December 31, 2011, through December 31, 2022,
and $1,545 million relates to net operating loss carryforwards that may be carried
forward indefi nitely.
Note 21
Minority Interest in Equity of Consolidated Affiliates
Minority interest in equity of consolidated affi liates includes com-
mon shares in consolidated affi liates and preferred stock issued
by affi liates of GE Capital. Preferred shares that we are required
to redeem at a specifi ed or determinable date are classifi ed as
liabilities. The balance is summarized as follows:
December 31 (In millions) 2007 2006
Minority interest in consolidated affi liates
NBC Universal $5,025 $4,774
Others
(a) 2,748 1,487
Minority interest in preferred stock
(b)
GE Capital affi liates 231 1,232
Total
$8,004 $7,493
(a) Included minority interest in partnerships and common shares of consolidated
affi liates.
(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.