notes to consolidated financial statements GECS financing receivables include both loans and fi nancing leases. Loans represent transactions in a variety of forms, includ- ing revolving charge and credit, mortgages, installment loans, intermediate-term loans and revolving loans secured by business assets. The portfolio includes loans carried at the principal amount on which finance charges are billed periodically, and loans carried at gross book value, which includes fi nance charges. Investment in financing leases consists of direct fi nancing and leveraged leases of aircraft, railroad rolling stock, autos, other transportation equipment, data processing equipment, medical equipment, commercial real estate and other manufacturing, power generation, and commercial equipment and facilities. As the sole owner of assets under direct financing leases and as the equity participant in leveraged leases, GECS is taxed on total lease payments received and is entitled to tax deductions NET INVESTMENT IN FINANCING LEASES December 31 (In millions) based on the cost of leased assets and tax deductions for interest paid to third-party participants. GECS is generally entitled to any residual value of leased assets. Investment in direct financing and leveraged leases repre- sents net unpaid rentals and estimated unguaranteed residual values of leased equipment, less related deferred income. GECS has no general obligation for principal and interest on notes and other instruments representing third-party participation related to leveraged leases such notes and other instruments have not been included in liabilities but have been offset against the related rentals receivable. The GECS share of rentals receivable on leveraged leases is subordinate to the share of other partici- pants who also have security interests in the leased equipment. Total financing leases Direct financing leases(a) Leveraged leases (b) 2006 2005 2006 2005 2006 2005 Total minimum lease payments receivable $88,598 $86,436 $64,637 $60,594 $23,961 $25,842 Less principal and interest on third-party nonrecourse debt (17,309) (19,061) — — (17,309) (19,061) Net rentals receivable 71,289 67,375 64,637 60,594 6,652 6,781 Estimated unguaranteed residual value of leased assets 10,062 9,379 7,068 6,260 2,994 3,119 Less deferred income (12,782) (12,445) (9,634) (9,305) (3,148) (3,140) Investment in financing leases, net of deferred income 68,569 64,309 62,071 57,549 6,498 6,760 Less amounts to arrive at net investment Allowance for losses (392) (525) (370) (380) (22) (145) Deferred taxes (8,314) (8,037) (3,410) (3,495) (4,904) (4,542) Net investment in financing leases $59,863 $55,747 $58,291 $53,674 $ 1,572 $ 2,073 (a) Included $654 million and $475 million of initial direct costs on direct financing leases at December 31, 2006 and 2005, respectively. (b) Included pre-tax income of $306 million and $248 million and income tax of $115 million and $96 million during 2006 and 2005, respectively. Net investment credits recognized during 2006 and 2005 were inconsequential. CONTRACTUAL MATURITIES Net rentals (In millions) Total loans receivable Due in 2007 $ 89,651 $18,422 2008 33,413 15,094 2009 25,731 11,637 2010 14,759 7,860 2011 17,893 5,244 2012 and later 88,896 13,032 Total $270,343 $71,289 We expect actual maturities to differ from contractual maturities. Individually “impaired” loans are defined by GAAP as larger balance or restructured loans for which it is probable that the lender will be unable to collect all amounts due according to original contractual terms of the loan agreement. An analysis of impaired loans follows. December 31 (In millions) 2006 2005 Loans requiring allowance for losses $1,346 $1,479 Loans expected to be fully recoverable 497 451 $1,843 $1,930 Allowance for losses $ 446 $ 627 Average investment during year 1,860 2,118 Interest income earned while impaired (a) 34 46 (a) Recognized principally on cash basis. ge 2006 annual report 89

notes to consolidated financial statements SELECTED FINANCING RECEIVABLES RATIOS Note 14 December 31 2006 2005 ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES AS A PERCENTAGE OF TOTAL FINANCING RECEIVABLES Commercial Finance GE Money Infrastructure Other Total 0.58% 2.37 0.21 0.36 1.38 0.84% 2.49 1.15 0.26 1.57 NONEARNING FINANCING RECEIVABLES AS A PERCENTAGE OF TOTAL FINANCING RECEIVABLES Commercial Finance GE Money Infrastructure Other Total 1.0% 2.1 — 1.1 1.5 1.0% 2.1 0.1 0.7 1.4 GECS Allowance for Losses on Financing Receivables (In millions) 2006 2005 2004 BALANCE AT JANUARY 1 Commercial Finance GE Money Infrastructure $ 1,110 3,234 220 $ 1,562 3,473 583 $ 1,952 3,984 293 Other 29 30 27 4,593 5,648 6,256 PROVISION CHARGED TO OPERATIONS Commercial Finance 121 293 327 GE Money Infrastructure Other 3,767 (64) 15 3,337 210 1 3,219 325 17 3,839 3,841 3,888 OTHER REDUCTIONS, NET (5) (487) (74) GROSS WRITE-OFFS Commercial Finance GE Money Infrastructure Other (558) (4,773) (112) (34) (892) (4,447) (572) (48) (928) (4,423) (27) (74) (5,477) (5,959) (5,452) RECOVERIES Commercial Finance 188 180 161 GE Money Infrastructure 1,533 — 1,359 — 846 2 Other 9 11 21 1,730 1,550 1,030 BALANCE AT DECEMBER 31 Commercial Finance GE Money Infrastructure 893 3,715 44 1,110 3,234 220 1,562 3,473 583 Other 28 29 30 Total $ 4,680 $ 4,593 $ 5,648 See note 13 for amounts related to consolidated, liquidating securitization entities. 90 ge 2006 annual report