notes  to  consolidated  financial  statements  Our  Businesses  A  description  of  operating  segments  for  General  Electric  Company  and  consolidated  affiliates  as  of  December  31,  2006,  and  the  basis  for  presentation  in  this  report,  follows.  Infrastructure  Jet  engines,  replacement  parts  and  repair  and  maintenance  services  for  all  categories  of  commercial  aircraft  for  a  wide  variety  of  military  aircraft,  including  fighters,  bombers,  tankers  and  helicopters  for  marine  applications  and  for  executive  and  regional  aircraft.  Products  and  services  are  sold  worldwide  to  airframe  manufacturers,  airlines  and  government  agencies.  Transportation  products  and  maintenance  services,  including  diesel  electric  locomotives,  transit  propulsion  equipment,  motor-  ized  wheels  for  off-highway  vehicles,  gearing  technology  for  wind  turbines,  drill  motors,  marine  and  stationary  power  generation,  and  railway  signaling  and  offi  ce  systems.  Financial  products  to  airlines,  aircraft  operators,  owners,  lenders  and  investors,  including  leases,  aircraft  purchasing  and  trading,  loans,  engine/spare  parts  financing,  pilot  training,  fl  eet  planning  and  financial  advisory  services.  Power  plant  products  and  services,  including  design,  installation,  operation  and  maintenance  services  are  sold  into  global  markets.  Gas,  steam  and  aeroderivative  turbines,  generators,  combined  cycle  systems,  controls  and  related  services,  including  total  asset  optimization  solutions,  equipment  upgrades  and  long-term  main-  tenance  service  agreements,  are  sold  to  power  generation  and  other  industrial  customers.  Renewable  energy  solutions  include  wind  turbines  and  hydro  turbines,  solar  and  geothermal  technology.  Advanced  technology  turbomachinery,  principally  compressors  and  turbines,  and  associated  services  (including  pipeline  inspection  and  integrity  solutions)  for  applications  across  the  oil  and  gas  industry  from  the  wellhead  through  distribution  by  pipeline.  Water  treatment  services  and  equipment,  including  specialty  chemical  treatment  programs,  water  purifi  cation  equipment,  mobile  treatment  systems  and  desalination  processes.  Financial  products  to  the  global  energy  and  water  industries,  including  structured  and  common  equity,  debt,  leasing,  project  finance,  broad-based  commercial  finance  and  investments  in  operating  leases.  Commercial  Finance  Loans,  leases  and  other  financial  services  to  customers,  including  manufacturers,  distributors  and  end-users  for  a  variety  of  equipment  and  major  capital  assets.  These  assets  include  industrial-  related  facilities  and  equipment  commercial  and  residential  real  estate  vehicles  corporate  aircraft  and  equipment  used  in  many  industries,  including  the  construction,  manufacturing,  telecom-  munications  and  healthcare  industries.  GE  Money  Private-label  credit  cards  personal  loans  bank  cards  auto  loans  and  leases  mortgages  corporate  travel  and  purchasing  cards  debt  consolidation  home  equity  loans  deposits  and  other  savings  products,  and  credit  insurance  on  a  global  basis.  Healthcare  Medical  imaging  systems  such  as  magnetic  resonance  (MR)  and  computed  tomography  (CT)  scanners,  X-ray,  nuclear  imaging  and  ultrasound,  as  well  as  diagnostic  cardiology  and  patient  monitoring  devices  related  services,  including  equipment  monitoring  and  repair,  information  technologies  and  customer  productivity  services.  Diagnostic  imaging  agents  used  in  medical  scanning  procedures,  protein  separations  products  including  chromotography  purifi  ca-  tion  systems  used  in  the  manufacture  of  biopharmaceuticals,  and  high-throughput  systems  for  applications  in  genomics,  proteomics  and  bioassays.  Products  and  services  are  sold  worldwide  to  hospitals,  medical  facilities,  pharmaceutical  and  biotechnology  companies  and  to  the  life  science  research  market.  NBC  Universal  Principal  businesses  are  the  furnishing  of  U.S.  network  television  services  to  230  affiliated  stations,  production  of  television  programs,  the  production  and  distribution  of  motion  pictures,  operation  of  26  television  broadcasting  stations,  operation  of  cable/satellite  networks  around  the  world,  operation  of  theme  parks,  and  investment  and  programming  activities  in  multimedia  and  the  Internet.  Industrial  Major  appliances  and  related  services  for  products  such  as  refrigerators,  freezers,  electric  and  gas  ranges,  cooktops,  dish-  washers,  clothes  washers  and  dryers,  microwave  ovens,  room  air  conditioners  and  residential  water  system  products.  These  products  are  distributed  to  both  retail  outlets  and  direct  to  consumers,  mainly  for  the  replacement  market,  and  to  building  contractors  and  distributors  for  new  installations.  Lighting  products  include  a  wide  variety  of  lamps  and  lighting  fi  xtures.  Electrical  distribution  and  control  equipment  includes  power  delivery  and  control  products  such  as  transformers,  meters  and  relays.  Also  included  GE  Supply,  a  network  of  electrical  supply  houses,  until  its  sale  in  the  third  quarter  of  2006.  Products  and  services  are  sold  in  North  America  and  in  global  markets  under  various  GE  and  private-  label  brands.  High-performance  engineered  plastics  and  structured  products  used  in  a  variety  of  applications  such  as  automotive  parts,  computer  enclosures,  telecommunications  equipment  and  con-  struction  materials.  Products  also  included  silicones  and  high-  purity  quartzware  until  this  business  was  sold  in  December  2006.  Products  and  services  are  sold  worldwide  to  a  diverse  customer  base  consisting  mainly  of  manufacturers.  Asset  management  services  —  rentals,  leases,  sales  and  remote  tracking  and  monitoring  services  for  commercial  and  transporta-  tion  equipment,  including  tractors,  trailers,  railroad  rolling  stock,  modular  space  units,  land  and  marine  shipping  containers.  Measurement  equipment  (products  and  subsystems  for  sens-  ing  temperature,  flow  rates,  humidity,  pressure  and  detection  of  material  defects).  Security  equipment  and  systems,  including  card  access  systems,  video  and  sensor  monitoring  equipment,  integrated  facility  monitoring  systems  and  explosive  detection  systems.  A  broad  range  of  automation  hardware  and  software.  Markets  are  extremely  diverse.  Products  and  services  are  sold  to  commercial  and  industrial  end-users,  including  utilities  original  equipment  manufacturers  electrical  distributors  retail  outlets  airports  railways  and  transit  authorities.  Increasingly,  products  and  services  are  developed  for  and  sold  in  global  markets.  108  ge  2006  annual  report  
supplemental  information  Financial  Measures  that  Supplement  Generally  Accepted  Accounting  Principles  We  sometimes  use  information  derived  from  consolidated  fi  nan-  cial  information  but  not  presented  in  our  fi  nancial  statements  prepared  in  accordance  with  U.S.  generally  accepted  accounting  principles  (GAAP).  Certain  of  these  data  are  considered  “non-  GAAP  financial  measures”  under  U.S.  Securities  and  Exchange  Commission  rules.  Specifically,  we  have  referred,  in  various  sections  of  this  Annual  Report,  to:  •  Organic  revenue  growth  in  2006,  2005  and  2004  and  the  average  for  the  two  and  three  years  ended  December  31,  2006  •  Organic  revenue  growth  for  Energy  in  2006  •  GE  operating  profit  excluding  pension  costs  for  2006,  2005  and  2004  •  Growth  in  Industrial  cash  from  operating  activities  (CFOA)  in  2006  •  Average  total  shareowners’  equity,  excluding  effects  of  discontinued  operations  •  GE  profit  growth  from  2001  to  2006,  excluding  the  effect  of  non-cash  pension  •  GE  earnings  from  continuing  operations  before  income  taxes  excluding  GECS  earnings  from  continuing  operations  and  the  corresponding  effective  tax  rates,  for  the  three  years  ended  December  31,  2006  •  Delinquency  rates  on  certain  financing  receivables  of  the  Commercial  Finance  and  GE  Money  segments  for  2006,  2005  and  2004  The  reasons  we  use  these  non-GAAP  financial  measures  and  the  reconciliations  to  their  most  directly  comparable  GAAP  fi  nancial  measures  follow.  Organic  Revenue  Growth  (In  millions)  2006  2005  %  change  GE  consolidated  revenues  as  reported  $163,391  $147,956  Less  the  effects  of  Acquisitions,  business  dispositions  (other  than  dispositions  of  businesses  acquired  for  investment)  and  currency  exchange  rates  5,213  2,750  The  2006  Olympics  broadcasts  684  —  GECS  commercial  paper  interest  rate  swap  adjustment  197  540  GE  consolidated  revenues  excluding  the  effects  of  acquisitions,  business  dispositions  (other  than  dispositions  of  businesses  acquired  for  investment),  currency  exchange  rates,  the  2006  Olympics  broadcasts  and  the  GECS  commercial  paper  interest  rate  swap  adjustment  (organic  revenues)  $157,297  $144,666  9%  (In  millions)  2005  2004  %  change  GE  consolidated  revenues  as  reported  $147,956  $134,291  Less  the  effects  of  Acquisitions,  business  dispositions  (other  than  dispositions  of  businesses  acquired  for  investment)  and  currency  exchange  rates  8,275  3,818  The  2004  Olympics  broadcasts  —  927  The  May  2005  SFAS  133  correction  —  503  GECS  commercial  paper  interest  rate  swap  adjustment  540  518  GE  consolidated  revenues  excluding  the  effects  of  acquisitions,  business  dispositions  (other  than  dispositions  of  businesses  acquired  for  invest-  ment),  currency  exchange  rates,  the  2004  Olympics  broadcasts,  the  May  2005  SFAS  133  correction  and  the  GECS  commercial  paper  interest  rate  swap  adjustment  (organic  revenues)  $139,141  $128,525  8%  Two-year  average  8%  (In  millions)  2004  2003  %  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  The  May  2005  SFAS  133  correction  GECS  commercial  paper  interest  rate  swap  adjustment  GE  consolidated  revenues  excluding  the  effects  of  acquisitions,  business  dispositions  (other  than  dispositions  of  businesses  acquired  for  investment),  currency  exchange  rates,  Insurance,  Energy,  the  May  2005  SFAS  133  correction  and  the  GECS  commercial  paper  interest  rate  swap  adjustment  (organic  revenues)  $134,291  $113,421  19,219  1,262  4,002  4,466  17,348  19,082  503  454  518  535  $  92,701  $  87,622  6%  Three-year  average  8%  ge  2006  annual  report  109  
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