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
supplemental information Organic Revenue Growth for Energy (In millions) 2006 2005 % change Energy revenues as reported $19,133 $16,525 Less the effects of Acquisitions, business dispositions (other than dispositions of businesses acquired for investment) and currency exchange rates 72 98 Energy revenues excluding the effects of acquisitions, business dispositions (other than dispositions of businesses acquired for invest- ment) and currency exchange rates (organic revenues) $19,061 $16,427 16% GE Operating Profit Excluding Pension 2006 2005 2004 (In millions) Revenues Operating Profit Profit % Revenues Operating Profit Profit % Revenues Operating Profit Profit % GE revenues and operating profi t as reported $101,798 $14,585 14.3% $92,194 $13,316 14.4% $83,290 $11,384 13.7% Less pension costs (877) (329) 124 GE revenues, operating profi t and operating profi t % excluding the effects of pension costs $101,798 $15,462 15.2% $92,194 $13,645 14.8% $83,290 $11,260 13.5% Growth in Industrial CFOA (In millions) 2006 2005 % change Cash from GE’s operating activities as reported Less dividends from GECS $24,627 9,847 $21,609 7,816 14% Cash from GE’s operating activities excluding dividends from GECS (Industrial CFOA) $14,780 $13,793 7% Average Total Shareowners’ Equity, Excluding Effects of Discontinued Operations(a) December 31 (In millions) 2006 2005 2004 2003 2002 Average total shareowners’ equity (b) $109,873 $111,706 $95,711 $71,342 $59,154 Less the effects of Cumulative earnings from discontinued operations 2,094 2,985 925 1,007 Average net investment in discontinued operations 4,050 5,066 Average total shareowners’ equity, excluding effects of discontinued operations(a) $105,823 $104,546 $92,726 $70,417 $58,147 (a) Used for computing return on average shareowners’ equity and return on average total capital invested shown on page 67. (b) On an annual basis, calculated using a fi ve-point average. 110 ge 2006 annual report
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