statement of earnings GE GECS 2006 2005 2004 2006 2005 2004 $ 62,336 $ 57,378 $ 52,260 $ 2,384 $ 2,528 $ 2,840 36,772 33,052 29,954 — — — 2,690 1,764 1,076 — — — 10,495 9,527 8,169 — — — — — — 61,021 54,483 49,346 — — — 197 540 518 112,293 101,721 91,459 63,602 57,551 52,704 48,808 43,870 39,999 2,204 2,369 2,741 23,891 20,945 19,368 — — — 1,834 1,432 979 18,081 14,223 11,081 — — — 3,419 3,574 3,303 — — — 3,839 3,841 3,888 13,841 13,279 12,001 23,955 22,530 21,609 673 784 538 235 202 190 89,047 80,310 72,885 51,733 46,739 42,812 23,246 21,411 18,574 11,869 10,812 9,892 (2,580) (2,750) (1,973) (1,374) (1,285) (1,723) 20,666 18,661 16,601 10,495 9,527 8,169 163 (1,950) 559 163 (1,950) 559 $ 20,829 $ 16,711 $ 17,160 $10,658 $ 7,577 $ 8,728 In the consolidating data on this page, “GE” means the basis of consolidation as described in note 1 to the consolidated financial statements “GECS” means General Electric Capital Services, Inc. and all of its affiliates and associated companies. Transactions between GE and GECS have been eliminated from the “General Electric Company and consolidated affiliates” columns. ge 2006 annual report 69

audited financial statements Statement of Financial Position General Electric Company and consolidated affi liates At December 31 (In millions, except share amounts) 2006 2005 ASSETS Cash and equivalents $ 14,275 $ 8,825 Investment securities (note 10) 47,826 42,148 Current receivables (note 11) 13,954 14,851 Inventories (note 12) 11,401 10,474 Financing receivables — net (notes 13 and 14) 334,205 287,639 Other GECS receivables 17,067 14,332 Property, plant and equipment — net (note 15) 74,966 67,528 Investment in GECS — — Intangible assets — net (note 16) 86,433 81,630 All other assets (note 17) 97,112 84,828 Assets of discontinued operations (note 2) — 61,066 Total assets $697,239 $673,321 LIABILITIES AND EQUITY Short-term borrowings (note 18) $172,153 $158,156 Accounts payable, principally trade accounts 21,697 21,183 Progress collections and price adjustments accrued 5,248 4,456 Dividends payable 2,878 2,623 Other GE current liabilities 18,538 18,552 Long-term borrowings (note 18) 260,804 212,281 Investment contracts, insurance liabilities and insurance annuity benefits (note 19) 34,499 33,097 All other liabilities (note 20) 46,884 39,833 Deferred income taxes (note 21) 14,171 16,208 Liabilities of discontinued operations (note 2) 475 49,527 Total liabilities 577,347 555,916 Minority interest in equity of consolidated affiliates (note 22) 7,578 8,054 Common stock (10,277,373,000 and 10,484,268,000 shares outstanding at year-end 2006 and 2005, respectively) 669 669 Accumulated gains (losses) — net Investment securities 1,608 1,831 Currency translation adjustments 6,181 2,532 Cash flow hedges (129) (352) Benefit plans (4,406) (874) Other capital 25,486 25,227 Retained earnings 107,798 97,644 Less common stock held in treasury (24,893) (17,326) Total shareowners’ equity (notes 23 and 24) 112,314 109,351 Total liabilities and equity $697,239 $673,321 The sum of accumulated gains (losses) on investment securities, currency translation adjustments, cash flow hedges and benefit plans constitutes “Accumulated nonowner changes other than earnings,” as shown in note 23, and was $3,254 million and $3,137 million at December 31, 2006 and 2005, respectively. The notes to consolidated financial statements are an integral part of this statement. 70 ge 2006 annual report