growth ($1.5 billion) and the weaker U.S. dollar ($0.3 billion). The increase in net earnings resulted primarily from core growth ($0.6 billion), including growth in lower-taxed earnings from global operations, and acquisitions ($0.1 billion), partially offset by increased costs to launch new products and promote brand awareness ($0.2 billion). HEALTHCARE revenues rose 9% to $16.6 billion in 2006 as higher volume ($1.8 billion) more than offset the effect of lower prices ($0.4 billion). The rise in volume related to increases in health- care services, including the effects of the 2006 acquisition of IDX Systems Corporation and stronger equipment sales. Segment profit of $3.1 billion was 18% higher than in 2005 as productivity ($0.6 billion) and the effects of higher volume ($0.3 billion) more than offset the effects of lower prices ($0.4 billion) and higher material and other costs ($0.1 billion). Healthcare revenues increased 13% to $15.2 billion in 2005 as higher volume ($2.1 billion), including $0.8 billion from the Amersham acquisition in the second quarter of 2004, and the weaker U.S. dollar ($0.1 billion) more than offset lower prices ($0.4 billion). Segment profit of $2.7 billion was 17% higher than in 2004 as productivity ($0.5 billion) and higher volume ($0.4 billion) more than offset lower prices ($0.4 billion) and higher labor and other costs ($0.1 billion). Orders received by Healthcare in 2006 were $16.7 billion, compared with $15.6 billion in 2005. The $5.9 billion total backlog at year-end 2006 comprised unfilled product orders of $3.9 billion (of which 84% was scheduled for delivery in 2007) and product services orders of $2.0 billion scheduled for 2007 delivery. Comparable December 31, 2005, total backlog was $5.4 billion, of which $3.5 billion was for unfilled product orders and $1.9 billion for product services orders. See Corporate Items and Eliminations for a discussion of items not allocated to this segment. NBC UNIVERSAL revenues rose 10%, or $1.5 billion in 2006, primarily from the 2006 Olympic Games broadcasts ($0.7 billion), improvements in the entertainment cable business ($0.6 billion), improvements in the film business ($0.2 billion) and the effects of exiting a film distribution agreement ($0.2 billion), partially offset by the effects of lower ratings on network and station advertising sales ($0.1 billion) and the net effects of certain strategic actions in both years ($0.1 billion). Segment profit declined 6%, or $0.2 billion, in 2006 as lower earnings from network and station operations ($0.4 billion), the 2006 Olympic Games broadcasts ($0.1 billion), and the net effects of certain strategic actions in both years ($0.1 billion) were partially offset by higher earnings from the cable business ($0.2 billion) and the effects of exiting a film distribution agreement ($0.1 billion). Revenues rose 14%, or $1.8 billion, to $14.7 billion in 2005, reflecting a number of factors, the largest of which was the full- year contribution from the May 2004 combination of NBC with VUE, which resulted in higher film revenues ($1.6 billion), growth of our entertainment cable business ($0.6 billion), and higher revenues from television production operations ($0.3 billion) and theme parks ($0.1 billion). Also contributing to the increase was $0.5 billion from the effects of certain strategic actions. management’s discussion and analysis Partial offsets arose from the lack of a counterpart to the 2004 Olympic Games broadcasts ($0.9 billion) and the effects of lower ratings on network and station advertising sales ($0.4 billion). Segment profit rose 21%, or $0.5 billion, in 2005 as the full-year ownership of VUE contributed $0.6 billion, including improve- ments in the film ($0.3 billion), entertainment cable ($0.2 billion) and television production ($0.1 billion) businesses. The effects of certain strategic actions ($0.5 billion) were more than offset by lower earnings from network and station operations ($0.6 billion). See Corporate Items and Eliminations for a discussion of items not allocated to this segment. INDUSTRIAL (In millions) 2006 2005 2004 REVENUES $33,494 $32,631 $30,722 SEGMENT PROFIT $ 2,694 $ 2,559 $ 1,833 (In millions) 2006 2005 2004 REVENUES Consumer & Industrial $14,249 $14,092 $13,767 Equipment Services 7,061 6,627 6,571 Plastics 6,649 6,606 6,066 SEGMENT PROFIT Consumer & Industrial $ 1,140 $ 871 $ 716 Equipment Services 269 197 82 Plastics 674 867 566 Industrial revenues rose 3%, or $0.9 billion, in 2006 as higher volume ($0.7 billion) was partially offset by lower prices ($0.2 billion) and the effects of the overall strengthening U.S. dollar ($0.1 billion) at the industrial businesses in the segment. Volume increases and price decreases were primarily at Plastics. Consumer & Industrial volume was unchanged as volume from organic growth ($0.9 billion) was offset by the effects of lost volume from GE Supply, which was sold in the third quarter of 2006. Revenues increased at Equipment Services as a result of the second quarter 2006 consolidation of GE SeaCo, an entity previously accounted for using the equity method ($0.2 billion), and organic revenue growth ($0.2 billion). Segment profit rose 5% as productivity ($0.9 billion), primarily at Consumer & Industrial and Plastics, and higher volume ($0.1 billion) were partially offset by higher material and other costs ($0.7 billion), primarily at Consumer & Industrial and Plastics, and lower prices ($0.2 billion). Price increases were realized at Consumer & Industrial to offset commodity infl ation, but these increases were more than offset by price declines at Plastics. Segment profit at Equipment Services increased as a result of core growth ($0.1 billion). Industrial revenues rose 6%, or $1.9 billion, in 2005 on higher prices ($1.5 billion), higher volume ($0.2 billion) and the weaker U.S. dollar ($0.2 billion) at the industrial businesses in the segment. We realized price increases primarily at Plastics and Consumer & Industrial. Volume increases related primarily to the acquisitions of Edwards Systems Technology and InVision Technologies, Inc. by our Security business, but were partially offset by lower volume at Plastics. Revenues at Equipment Services also increased as a result of organic revenue growth ($0.4 billion) and acquisitions ge 2006 annual report 55

management’s discussion and analysis ($0.1 billion), partially offset by the effects of the 2004 disposition of IT Solutions ($0.4 billion). Segment profit rose 35%, or $0.6 billion, at the industrial businesses in the segment in 2005 as price increases ($1.5 billion) and higher volume ($0.1 billion) more than offset higher material and other costs ($0.8 billion), primarily from commodities such as benzene and natural gas at Plastics, and lower productivity ($0.2 billion). Segment profi t at Equipment Services also increased as a result of improved operating performance, reflecting core growth ($0.1 billion). See Corporate Items and Eliminations for a discussion of items not allocated to this segment. CORPORATE ITEMS AND ELIMINATIONS (In millions) 2006 2005 2004 REVENUES Insurance activities $ 3,692 $ 4,183 $4,003 GECS commercial paper interest rate swap adjustment 197 540 518 Eliminations and other 278 (1,105) 75 Total $ 4,167 $ 3,618 $4,596 OPERATING PROFIT (COST) Insurance activities $ 57 $ 159 $ 5 Principal pension plans (877) (329) 124 Underabsorbed corporate overhead (269) (464) (498) GECS commercial paper interest rate swap adjustment 130 358 341 Other (292) (306) 17 Total $(1,251) $ (582) $ (11) Corporate Items and Eliminations include the effects of eliminating transactions between operating segments results of our insurance activities remaining in continuing operations cost of, and cost reductions from, our principal pension plans results of liquidating businesses such as consolidated, liquidating securitization entities underabsorbed corporate overhead certain non-allocated amounts described below and a variety of sundry items. Corporate Items and Eliminations is not an operating segment. Rather, it is added to operating segment totals to reconcile to consolidated totals on the fi nancial statements. Certain amounts included in the line “Other” above are not allocated to GE operating segments because they are excluded from the measurement of their operating performance for internal purposes. In 2006, amounts not allocated to GE operating segments included $0.2 billion at NBC Universal, principally for technology and product development costs and restructuring charges $0.2 billion at Industrial for restructuring and other charges and $0.1 billion at Healthcare, principally for acquisition-related, restructuring and other charges. In 2004, these comprised $0.4 billion of Healthcare charges, principally related to the write- off of in-process research and development projects and other transitional costs associated with Amersham and a $0.1 billion charge at Industrial as the gain on sale of the motors business was more than offset by costs for inventory obsolescence and other charges. Other operating profit (cost) also reflects gains of $0.7 billion in 2006 from sales of business interests, principally Advanced Materials and GE Supply, as well as $0.1 billion and $0.3 billion from partial sales of an interest in Genpact in 2005 and 2004, respectively. We have ongoing commercial and fi nancial relation- ships with these former affi liates. DISCONTINUED INSURANCE OPERATIONS (In millions) 2006 2005 2004 Earnings (loss) from discontinued operations, net of taxes $163 $(1,950) $559 Discontinued operations comprise GE Life, our U.K.-based life insurance operation the property and casualty insurance and reinsurance businesses and the European life and health opera- tions of GE Insurance Solutions and most of its affi liates and Genworth, our formerly wholly-owned subsidiary that conducted most of our consumer insurance business, including life and mortgage insurance operations. Results of these businesses are reported as discontinued operations for all periods presented. In December 2006, we completed the sale of GE Life to Swiss Re for $0.9 billion. As a result, we recognized a loss of $0.3 billion after tax during 2006. In June 2006, we completed 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 $9.3 billion, including the assumption of $1.7 billion of debt. We received $5.4 billion in cash and $2.2 billion of newly issued Swiss Re common stock, representing a 9% interest in Swiss Re. In May 2004, we completed the initial public offering of Genworth. Throughout 2005, we continued to reduce our owner- ship in Genworth. In March 2006, we completed the sale of our remaining 18% investment, through a secondary public offering of 71 million shares of Class A Common Stock and direct sale to Genworth of 15 million shares of Class B Common Stock. Earnings from discontinued operations, net of taxes, in 2006 were $0.2 billion, reflecting earnings from GE Insurance Solutions through the date of disposal ($0.3 billion), the gain on the sale of our remaining 18% investment in Genworth ($0.2 billion) and earnings from GE Life through the date of disposal ($0.1 billion), partially offset by the losses on disposal of GE Life ($0.3 billion) and GE Insurance Solutions ($0.1 billion). Loss from discontinued operations, net of taxes, in 2005 was $1.9 billion, reflecting losses from the portions of GE Insurance Solutions described above ($2.8 billion), partially offset by earnings from, and gains on the sale of, Genworth ($0.9 billion). Earnings from discontinued operations, net of taxes, in 2004 were $0.6 billion, reflecting earnings of Genworth ($0.4 billion), including our share of 2004 earnings from operations ($0.8 billion), partially offset by the loss on the Genworth initial public offering in May 2004 ($0.3 billion), and earnings from GE Insurance Solutions ($0.1 billion), primarily 2004 operations. For additional information related to discontinued operations, see note 2. 56 ge 2006 annual report