notes to consolidated financial statements Note 15 Property, Plant and Equipment Estimated useful lives– December 31 (Dollars in millions) new (years) 2006 2005 ORIGINAL COST GE Land and improvements 8(a) $ 1,054 $ 1,366 Buildings, structures and related equipment 8–40 10,875 10,044 Machinery and equipment 4–20 24,988 25,811 Leasehold costs and manufacturing plant under construction 1–10 2,716 2,157 39,633 39,378 GECS(b) Land, buildings and equipment 1–40(a) 5,447 5,543 Equipment leased to others Aircraft 20 36,146 32,941 Vehicles 1–14 26,937 23,208 Mobile and modular space 12–25 4,059 2,889 Railroad rolling stock 5–36 3,509 3,327 Construction and manufacturing 2–25 1,932 1,609 All other 2–33 2,771 2,834 80,801 72,351 Total $120,434 $111,729 NET CARRYING VALUE GE Land and improvements $ 926 $ 1,269 Buildings, structures and related equipment 5,279 4,823 Machinery and equipment 8,073 8,525 Leasehold costs and manufacturing plant under construction 2,460 1,887 16,738 16,504 GECS(b) Land, buildings and equipment 3,012 3,116 Equipment leased to others Aircraft(c) 29,886 27,116 Vehicles 17,132 14,064 Mobile and modular space 2,546 1,496 Railroad rolling stock 2,395 2,188 Construction and manufacturing 1,291 1,088 All other 1,966 1,956 58,228 51,024 Total $ 74,966 $ 67,528 (a) Estimated useful lives exclude land. (b) Included $1,763 million and $1,935 million of original cost of assets leased to GE with accumulated amortization of $293 million and $298 million at December 31, 2006 and 2005, respectively. (c) The Aviation Financial Services business of Infrastructure recognized impairment losses of $51 million in 2006 and $295 million in 2005 recorded in the caption “Other costs and expenses” in the Statement of Earnings to reflect adjustments to fair value based on current market values from independent appraisers. Amortization of GECS equipment leased to others was $5,839 million, $5,642 million and $5,365 million in 2006, 2005 and 2004, respectively. Noncancellable future rentals due from customers for equipment on operating leases at December 31, 2006, are as follows: (In millions) Due in 2007 $ 8,253 2008 7,013 2009 5,744 2010 4,550 2011 3,322 2012 and later 9,647 Total $38,529 Note 16 Intangible Assets December 31 (In millions) 2006 2005 GE Goodwill $50,585 $48,274 Intangible assets subject to amortization 7,585 7,478 Indefinite-lived intangible assets(a) 2,295 2,087 60,465 57,839 GECS Goodwill 22,754 21,337 Intangible assets subject to amortization 3,214 2,454 25,968 23,791 Total $86,433 $81,630 (a) Indefinite-lived intangible assets principally comprised trademarks, tradenames and U.S. Federal Communications Commission licenses. ge 2006 annual report 91

notes to consolidated financial statements Changes in goodwill balances follow. 2006 2005 Acquisitions/ Dispositions, Acquisitions/ Dispositions, purchase currency purchase currency Balance accounting exchange Balance Balance accounting exchange Balance (In millions) January 1 adjustments and other December 31 January 1 adjustments and other December 31 Infrastructure $10,166 $ 590 $ 175 $10,931 $ 9,759 $ 770 $ (363) $10,166 Commercial Finance 10,621 603 91 11,315 10,141 766 (286) 10,621 GE Money 9,184 309 352 9,845 9,860 (24) (652) 9,184 Healthcare 13,404 1,396 48 14,848 13,259 226 (81) 13,404 NBC Universal 17,534 838 (372) 18,000 16,672 946 (84) 17,534 Industrial 8,702 550 (852) 8,400 7,674 1,236 (208) 8,702 Total $69,611 $4,286 $(558) $73,339 $67,365 $3,920 $(1,674) $69,611 Goodwill balances increased $4,476 million in 2006 as a result of new acquisitions. The largest goodwill balance increases arose from acquisitions of IDX Systems Corporation ($1,133 million) and Biacore International AB ($308 million) by Healthcare, iVillage Inc. ($521 million) by NBC Universal, ZENON Environmental Inc. ($506 million) by Infrastructure, and Banque Artesia Nederland N.V., a subsidiary of Dexia Group ($340 million) and the custom fl eet business of National Australia Bank Ltd. ($306 million) by Commercial Finance. Goodwill declined in 2006 as a result of the sale of Advanced Materials ($930 million) by Industrial and the sale of television stations ($304 million) by NBC Universal. The goodwill balance also declined by $190 million related to purchase accounting adjustments to prior-year acquisitions during 2006. Goodwill balances increased $3,705 million in 2005 as a result of new acquisitions. The largest goodwill balance increases arose from acquisitions of Edwards Systems Technology ($996 million) by Industrial, Ionics, Inc. ($681 million) by Infrastructure, Antares Capital Corp. ($407 million) by Commercial Finance, an additional interest in MSNBC ($402 million) and the previously outstanding minority interest in Vivendi Universal Entertainment LLLP (VUE) ($329 million) by NBC Universal. Goodwill also increased by $215 million related to purchase accounting adjustments to prior- year acquisitions during 2005, primarily associated with the 2004 acquisition of Amersham by Healthcare and the combination of NBC and VUE. Upon closing an acquisition, we estimate the fair values of assets and liabilities acquired and consolidate the acquisition as quickly as possible. Given the time it takes to obtain pertinent information to finalize the acquired company’s balance sheet (frequently with implications for the price of the acquisition), then to adjust the acquired company’s accounting policies, procedures, books and records to our standards, it is often several quarters before we are able to finalize those initial fair value estimates. Accordingly, it is not uncommon for our initial estimates to be subsequently revised. INTANGIBLE ASSETS SUBJECT TO AMORTIZATION Gross carrying Accumulated December 31 (In millions) amount amortization Net GE 2006 Patents, licenses and trademarks $ 4,670 $(1,308) $3,362 Capitalized software 4,543 (2,741) 1,802 All other 2,859 (438) 2,421 Total $12,072 $(4,487) $7,585 2005 Patents, licenses and trademarks $ 4,814 $(1,134) $3,680 Capitalized software 4,109 (2,261) 1,848 All other 2,172 (222) 1,950 Total $11,095 $(3,617) $7,478 GECS 2006 Patents, licenses and trademarks $ 467 $ (302) $ 165 Capitalized software 1,684 (981) 703 All other 3,591 (1,245) 2,346 Total $ 5,742 $(2,528) $3,214 2005 Patents, licenses and trademarks $ 497 $ (272) $ 225 Capitalized software 1,477 (798) 679 All other 2,565 (1,015) 1,550 Total $ 4,539 $(2,085) $2,454 Consolidated amortization expense related to intangible assets subject to amortization was $1,789 million and $1,413 million for 2006 and 2005, respectively. 92 ge 2006 annual report