statement of financial position GE GECS 2006 2005 2006 2005 $ 4,480 $ 2,015 $ 12,629 $ 7,130 342 461 47,492 41,710 14,278 15,058 — — 11,347 10,315 54 159 — — 334,232 287,639 — — 21,853 18,625 16,738 16,504 58,228 51,024 54,097 50,812 — — 60,465 57,839 25,968 23,791 34,078 36,752 64,212 49,440 — — — 61,066 $195,825 $189,756 $564,668 $540,584 $ 2,212 $ 1,127 $173,316 $157,672 11,913 11,870 13,923 13,043 5,248 4,456 — — 2,878 2,623 — — 18,538 18,569 — — 9,085 9,081 252,963 204,397 — — 34,807 33,387 26,060 23,140 20,935 16,787 1,954 3,733 12,217 12,475 — — 455 49,763 77,888 74,599 508,616 487,524 5,623 5,806 1,955 2,248 669 669 1 1 1,608 1,831 1,594 1,754 6,181 2,532 4,837 2,287 (129) (352) (171) (343) (4,406) (874) (278) (179) 25,486 25,227 12,537 12,386 107,798 97,644 35,577 34,906 (24,893) (17,326) — — 112,314 109,351 54,097 50,812 $195,825 $189,756 $564,668 $540,584 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 71

audited financial statements Statement of Cash Flows General Electric Company and consolidated affi liates For the years ended December 31 (In millions) 2006 2005 2004 CASH FLOWS — OPERATING ACTIVITIES Net earnings $ 20,829 $ 16,711 $ 17,160 Loss (earnings) from discontinued operations (163) 1,950 (559) Adjustments to reconcile net earnings to cash provided from operating activities Depreciation and amortization of property, plant and equipment 9,158 8,537 8,348 Net earnings retained by GECS — — — Deferred income taxes 1,950 (940) 51 Decrease (increase) in GE current receivables (2,152) (974) (1,617) Decrease (increase) in inventories (1,779) (578) (468) Increase (decrease) in accounts payable (119) 245 3,756 Increase (decrease) in GE progress collections 926 510 (464) Provision for losses on GECS financing receivables 3,839 3,841 3,888 All other operating activities 530 3,362 777 Cash from operating activities — continuing operations 33,019 32,664 30,872 Cash from (used for) operating activities — discontinued operations (2,373) 5,027 5,621 CASH FROM OPERATING ACTIVITIES 30,646 37,691 36,493 CASH FLOWS — INVESTING ACTIVITIES Additions to property, plant and equipment (16,650) (14,381) (12,936) Dispositions of property, plant and equipment 6,799 6,027 5,839 Net increase in GECS financing receivables (38,134) (16,400) (14,668) Proceeds from sales of discontinued operations 9,022 8,106 3,437 Proceeds from principal business dispositions 3,870 481 1,179 Payments for principal businesses purchased (11,652) (11,498) (18,703) All other investing activities (4,274) (1,701) 5,080 Cash used for investing activities — continuing operations (51,019) (29,366) (30,772) Cash used for investing activities — discontinued operations (383) (5,733) (7,651) CASH USED FOR INVESTING ACTIVITIES (51,402) (35,099) (38,423) CASH FLOWS — FINANCING ACTIVITIES Net increase (decrease) in borrowings (maturities of 90 days or less) 4,582 (4,600) (1,558) Newly issued debt (maturities longer than 90 days) 88,362 66,523 58,538 Repayments and other reductions (maturities longer than 90 days) (49,346) (53,133) (47,106) Net dispositions (purchases) of GE shares for treasury (8,554) (4,844) 3,993 Dividends paid to shareowners (10,420) (9,352) (8,278) All other financing activities (1,174) (1,128) (3,304) Cash from (used for) financing activities — continuing operations 23,450 (6,534) 2,285 Cash from (used for) financing activities — discontinued operations (220) 415 2,309 CASH FROM (USED FOR) FINANCING ACTIVITIES 23,230 (6,119) 4,594 INCREASE (DECREASE) IN CASH AND EQUIVALENTS DURING YEAR 2,474 (3,527) 2,664 Cash and equivalents at beginning of year 11,801 15,328 12,664 Cash and equivalents at end of year 14,275 11,801 15,328 Less cash and equivalents of discontinued operations at end of year — 2,976 3,267 Cash and equivalents of continuing operations at end of year $ 14,275 $ 8,825 $ 12,061 SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION Cash paid during the year for interest $(18,254) $(16,446) $(11,907) Cash recovered (paid) during the year for income taxes (2,869) (3,254) (1,339) The notes to consolidated financial statements are an integral part of this statement. 72 ge 2006 annual report