notes to consolidated financial statements The following tables present the gross unrealized losses and estimated fair values of our investment securities. Less than 12 months 12 months or more Gross Gross Estimated unrealized Estimated unrealized December 31 (In millions) fair value losses fair value losses 2006 Debt U.S. corporate $2,478 $ (52) $ 4,260 $(151) State and municipal 164 (2) 77 (2) Mortgage-backed 668 (4) 1,851 (42) Asset-backed 1,393 (15) 674 (8) Corporate — non-U.S. 112 (3) 93 (2) Government — non-U.S. 33 (3) — — U.S. government and federal agency 66 (1) 247 (5) Equity 40 (12) 3,895 (3) Total $4,954 $ (92) $11,097 $(213) 2005 Debt U.S. corporate $3,633 $(131) $ 2,584 $(208) State and municipal 77 (2) — — Mortgage-backed 1,858 (22) 1,190 (34) Asset-backed 1,494 (10) 383 (9) Corporate — non-U.S. 221 (8) 53 (2) U.S. government and federal agency 297 (5) — — Equity 84 (25) 38 (13) Total $7,664 $(203) $ 4,248 $(266) Our portfolio at December 31, 2006 and 2005, contained securities that had been, for 12 months or more, in an unrealized loss position for reasons other than changes in market interest rates. The level of this unrealized loss was insignifi cant, individually and in the aggregate, at December 31, 2006, refl ecting improved pricing in the commercial aircraft Enhanced Equipment Trust Certificate market. We review all of our investment securities routinely for other than temporary impairment as described in note 1. In accordance with that policy, we have provided for all amounts that we did not expect either to collect in accordance with the contractual terms of the instruments or to recover based on underlying collateral values. We presently intend to hold our investment securities in an unrealized loss position at December 31, 2006, at least until we can recover their respective amortized cost and we have the ability to hold our debt securities until their maturities. CONTRACTUAL MATURITIES OF GECS INVESTMENT IN DEBT SECURITIES (EXCLUDING MORTGAGE-BACKED AND ASSET-BACKED SECURITIES) Amortized Estimated (In millions) cost fair value Due in 2007 $ 1,832 $ 1,826 2008–2011 4,766 4,784 2012–2016 3,470 3,545 2017 and later 15,950 16,964 We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations. Supplemental information about gross realized gains and losses on investment securities follows. (In millions) 2006 2005 2004 GE Gains $ 125 $ 6 $ 15 Losses, including impairments (1) (5) — Net 124 1 15 GECS Gains 313 509 371 Losses, including impairments (181) (132) (149) Net 132 377 222 Total $ 256 $ 378 $ 237 In the ordinary course of managing our investment securities portfolio, we may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements and the funding of claims and obligations to policyholders. Proceeds from investment securities sales amounted to $12,394 million, $14,047 million and $11,685 million in 2006, 2005 and 2004, respectively, principally from the short-term nature of the investments that support the guaranteed investment contracts portfolio. ge 2006 annual report 87

notes to consolidated financial statements Note 11 GE Current Receivables December 31 (In millions) 2006 2005 Infrastructure $ 6,524 $ 6,827 NBC Universal 3,070 3,633 Healthcare 2,897 2,947 Industrial 1,950 2,255 Corporate items and eliminations 329 154 14,770 15,816 Less allowance for losses (492) (758) Total $14,278 $15,058 Receivables balances at December 31, 2006 and 2005, before allowance for losses, included $9,064 million and $10,250 million, respectively, from sales of goods and services to customers, and $208 million and $246 million at December 31, 2006 and 2005, respectively, from transactions with associated companies. Current receivables of $248 million and $563 million at December 31, 2006 and 2005, respectively, arose from sales, principally of Aviation goods and services on open account to various agencies of the U.S. government, our largest single customer. About 4% of our sales of goods and services were to the U.S. government in 2006, 2005 and 2004. Note 12 Inventories December 31 (In millions) 2006 2005 GE Raw materials and work in process Finished goods Unbilled shipments $ 6,547 4,998 424 $ 5,527 5,152 333 Less revaluation to LIFO 11,969 (622) 11,012 (697) 11,347 10,315 GECS Finished goods 54 159 Total $11,401 $10,474 As of December 31, 2006, we were obligated to acquire certain raw materials at market prices through the year 2027 under various take-or-pay or similar arrangements. Annual minimum commitments under these arrangements are insignifi cant. Note 13 GECS Financing Receivables (investments in loans and financing leases) December 31 (In millions) 2006 2005 Loans, net of deferred income $270,343 $227,923 Investment in financing leases, net of deferred income 68,569 64,309 338,912 292,232 Less allowance for losses (note 14) (4,680) (4,593) Financing receivables — net $334,232 $287,639 Included in the above are the financing receivables of consolidated, liquidating securitization entities as follows: December 31 (In millions) 2006 2005 Loans, net of deferred income $11,399 $15,868 Investment in financing leases, net of deferred income 134 769 11,533 16,637 Less allowance for losses (24) (22) Financing receivables — net $11,509 $16,615 Details of fi nancing receivables — net follow. December 31 (In millions) 2006 2005 COMMERCIAL FINANCE Equipment and leasing $ 76,057 $ 70,851 Commercial and industrial 49,222 41,402 Real estate 27,944 19,555 153,223 131,808 GE MONEY Non-U.S. residential mortgages 58,237 46,205 Non-U.S. installment and revolving credit 36,279 31,849 U.S. installment and revolving credit 29,007 21,963 Non-U.S. auto 25,088 22,803 Other 8,059 7,286 156,670 130,106 INFRASTRUCTURE(a) 21,200 19,124 OTHER (b) 7,819 11,194 338,912 292,232 Less allowance for losses (4,680) (4,593) Total $334,232 $287,639 (a) Included loans and financing leases of $11,165 million and $11,192 million at December 31, 2006 and 2005, respectively, related to commercial aircraft at Aviation Financial Services and loans and financing leases of $7,574 million and $5,419 million at December 31, 2006 and 2005, respectively, related to Energy Financial Services. (b) Included loans and financing leases of $6,853 million and $10,160 million at December 31, 2006 and 2005, respectively, related to certain consolidated, liquidating securitization entities. 88 ge 2006 annual report