supplemental information U.S. GAAP requires earnings of discontinued operations to be displayed separately in the Statement of Earnings. Accordingly, the numerators used in our calculations of returns on average shareowners’ equity and average total capital invested presented in Selected Financial Data on page 67 exclude those earnings (losses). Further, we believe that it is appropriate to exclude from the denominators, specifically the average total shareowners’ equity component, the cumulative effect of those earnings for each of the years for which related discontinued operations were presented, as well as our average net investment in discontinued operations since the second half of 2005. Had we disposed of these operations before mid-2005, proceeds would have been applied to reduce parent-supported debt at GE Capital however, since parent-supported debt at GE Capital was retired in the fi rst half of 2005, we have assumed that any proceeds after that time would have been distributed to shareowners by means of share repurchases, thus reducing average total shareowners’ equity. Definitions indicating how the above-named ratios are calcu- lated using average total shareowners’ equity, excluding effects of discontinued operations, can be found in the Glossary. GE Growth from 2001 to 2006, Excluding Pensions (In millions) 2006 2001 GE earnings from continuing operations as reported $20,666 $12,620 Less after-tax pension costs (570) 1,362 GE earnings from continuing operations excluding after-tax pension costs $21,236 $11,258 GE Tax Rate, Excluding GECS Earnings (In millions) 2006 2005 2004 GE earnings from continuing operations before income taxes $23,246 $21,411 $18,574 Less GECS earnings from continuing operations 10,495 9,527 8,169 Total $12,751 $11,884 $10,405 GE provision for income taxes $ 2,580 $ 2,750 $ 1,973 GE effective tax rate, excluding GECS earnings 20.2% 23.1% 19.0% We believe that meaningful analysis of our fi nancial performance requires an understanding of the factors underlying that perfor- mance and our judgments about the likelihood that particular factors will repeat. In some cases, short-term patterns and long-term trends may be obscured by large factors or events. For example, events or trends in a particular segment may be so significant as to obscure patterns and trends of our industrial or financial services businesses in total. For this reason, we believe that investors may find it useful to see our 2006 revenue growth without the effect of acquisitions, dispositions and currency exchange rates, and without the effects of the 2006 and 2004 Olympics broadcasts, the May 2005 SFAS 133 correction and the GECS commercial paper interest rate swap adjustment, which if included would overshadow trends in ongoing revenues. Similarly, we believe that investors would find it useful to compare our industrial operating profit and consolidated earnings from con- tinuing operations excluding the effects of pension costs which can vary from period to period and our 2006 operating cash fl ow against our 2005 operating cash flow without the effects of GECS dividends which can also vary from period to period. Delinquency Rates on Certain Financing Receivables Delinquency rates on managed Commercial Finance equipment loans and leases and managed GE Money fi nancing receivables follow. COMMERCIAL FINANCE December 31 2006 2005 2004 Managed 1.22% 1.31% 1.40% Off-book 0.52 0.76 0.90 On-book 1.42 1.53 1.58 GE MONEY December 31 2006 2005 2004 Managed 5.05% 5.08% 4.85% Off-book 5.49 5.28 5.09 On-book 5.01 5.07 4.84 We believe that delinquency rates on managed fi nancing receivables provide a useful perspective on our on and off-book portfolio quality and are key indicators of fi nancial performance. ge 2006 annual report 111

glossary BACKLOG Unfilled customer orders for products and product services (12 months for product services). BORROWING Financial liability (short or long-term) that obligates us to repay cash or another financial asset to another entity. BORROWINGS AS A PERCENTAGE OF TOTAL CAPITAL INVESTED For GE, the sum of borrowings and mandatorily redeemable preferred stock, divided by the sum of borrowings, mandatorily redeemable preferred stock, minority interest and total share- owners’ equity. CASH EQUIVALENTS Highly liquid debt instruments with original maturities of three months or less, such as commercial paper. Typically included with cash for reporting purposes, unless desig- nated as available-for-sale and included with investment securities. CASH FLOW HEDGES Qualifying derivative instruments that we use to protect ourselves against exposure to volatility in future cash flows. The exposure may be associated with an existing asset or liability, or with a forecasted transaction. See “Hedge.” COMMERCIAL PAPER Unsecured, unregistered promise to repay borrowed funds in a specified period ranging from overnight to 270 days. CUSTOMER SERVICE AGREEMENTS (also referred to as “product services agreements”) Contractual commitments, with multiple- year terms, to provide specified services for products in our Infrastructure installed base — for example, monitoring, mainte- nance, overhaul and spare parts for a gas turbine/generator set installed in a customer’s power plant. DERIVATIVE INSTRUMENT A financial instrument or contract with another party (counterparty) that is structured to meet any of a variety of financial objectives, including those related to fl uctuations in interest rates, currency exchange rates or commodity prices. Options, forwards and swaps are the most common derivative instruments we employ. See “Hedge.” DISCONTINUED OPERATIONS Certain businesses we have sold or committed to sell within the next year and which will no longer be part of our ongoing operations. The net earnings, assets and liabilities and cash flows of such businesses are separately classifi ed on our Statement of Earnings, Statement of Financial Position and Statement of Cash Flows, respectively, for all periods presented. EARNED PREMIUMS Portion of the premium, net of any amount ceded, pertaining to the segment of the policy period for which insurance coverage has been provided. EFFECTIVE TAX RATE Provision for income taxes as a percentage of earnings from continuing operations before income taxes and accounting changes. Does not represent cash paid for income taxes in the current accounting period. Also referred to as “actual tax rate” or “tax rate.” EQUIPMENT LEASED TO OTHERS Rental equipment we own that is available to rent and is stated at cost less accumulated depreciation. FAIR VALUE HEDGE Qualifying derivative instruments that we use to reduce the risk of changes in the fair value of assets, liabilities or certain types of firm commitments. Changes in the fair values of derivative instruments that are designated and effective as fair value hedges are recorded in earnings, but are offset by correspond- ing changes in the fair values of the hedged items. See “Hedge.” FINANCIAL LEVERAGE The relationship of debt to equity. Expressed for financial services businesses as borrowings divided by equity. Expressed for industrial businesses as borrowings divided by total capital. FINANCING RECEIVABLES Investment in contractual loans and leases due from customers (not investment securities). FORWARD CONTRACT Fixed price contract for purchase or sale of a specified quantity of a commodity, security, currency or other financial instrument with delivery and settlement at a specifi ed future date. Commonly used as a hedging tool. See “Hedge.” GOODWILL The premium paid for acquisition of a business. Calculated as the purchase price less the fair value of net assets acquired (net assets are identified tangible and intangible assets, less liabilities assumed). GUARANTEED INVESTMENT CONTRACTS (GICS) Deposit-type products that guarantee a minimum rate of return, which may be fixed or fl oating. HEDGE A technique designed to eliminate risk. Often refers to the use of derivative financial instruments to offset changes in interest rates, currency exchange rates or commodity prices, although many business positions are “naturally hedged”— for example, funding a U.S. fixed-rate investment with U.S. fi xed-rate borrowings is a natural interest rate hedge. INTANGIBLE ASSET A non-financial asset lacking physical sub- stance, such as goodwill, patents, trademarks and licenses. INTEREST RATE SWAP Agreement under which two counterparties agree to exchange one type of interest rate cash flow for another. In a typical arrangement, one party periodically will pay a fi xed amount of interest, in exchange for which that party will receive variable payments computed using a published index. See “Hedge.” INVESTMENT SECURITIES Generally, an instrument that provides an ownership position in a corporation (a stock), a creditor relation- ship with a corporation or governmental body (a bond), or rights to ownership such as those represented by options, subscription rights and subscription warrants. MANAGED RECEIVABLES Total receivable amounts on which we continue to perform billing and collection activities, including receivables that have been sold with and without credit recourse and are no longer reported on our balance sheet. MATCH FUNDING A risk control policy that provides funds for a particular financial asset having the same currency, maturity and interest rate characteristics as that asset. Match funding ensures 112 ge 2006 annual report