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

notes to consolidated financial statements Note 17 All Other Assets December 31 (In millions) 2006 2005 GE Investments Associated companies $ 1,729 $ 1,824 Other(a) 752 1,089 2,481 2,913 Prepaid pension asset — principal plans 15,019 17,853 Contract costs and estimated earnings 5,988 4,664 Film and television costs 3,646 3,828 Long-term receivables, including notes 2,908 2,790 Derivative instruments 193 247 Other 3,843 4,457 34,078 36,752 GECS Investments Real estate(b) 27,252 15,708 Assets held for sale(c) 12,524 8,574 Associated companies 12,053 13,481 Cost method (d) 2,348 2,280 Other 931 1,330 55,108 41,373 Derivative instruments 1,982 1,556 Advances to suppliers 1,714 1,762 Deferred acquisition costs 1,380 1,471 Other 4,028 3,278 64,212 49,440 ELIMINATIONS (1,178) (1,364) Total(e) $97,112 $84,828 (a) The fair value of and unrealized loss on cost method investments in a continuous loss position in 2006 and 2005 were insignifi cant. (b) GECS investment in real estate consisted principally of two categories: real estate held for investment and equity method investments. Both categories contained a wide range of properties including the following at December 31, 2006: office buildings (54%), apartment buildings (16%), retail facilities (10%), industrial properties (5%), parking facilities (4%), franchise properties (2%) and other (9%). At December 31, 2006, investments were located in North America (39%), Europe (37%) and Asia (24%). (c) Assets were classified as held for sale on the date a decision was made to dispose of them through sale, securitization or other means. Such assets consisted primar- ily of real estate properties and mortgage and credit card receivables, and were accounted for at the lower of carrying amount or estimated fair value less costs to sell. (d) The fair value of and unrealized loss on those investments in a continuous loss position for less than 12 months in 2006 were $113 million and $25 million, respectively. The fair value of and unrealized loss on those investments in a continuous loss position for 12 months or more in 2006 were $38 million and $8 million, respectively. The fair value of and unrealized loss on those investments in a continuous loss position for less than 12 months in 2005 were $100 million and $31 million, respectively. The fair value of and unrealized loss on those investments in a continuous loss position for 12 months or more in 2005 were $22 million and $9 million, respectively. (e) Included $98 million in 2006 and $1,235 million in 2005 related to consolidated, liquidating securitization entities. See note 28. Note 18 Borrowings SHORT-TERM BORROWINGS 2006 December 31 (Dollars in millions) Average rate(a) Amount 2005 Average rate(a) Amount GE Commercial paper U.S. $ 1,097 5.35% $ 497 4.40% Non-U.S. 1 3.74 1 2.85 Payable to banks 319 5.61 358 3.99 Current portion of long-term debt 32 5.32 129 4.84 Other 763 142 2,212 1,127 GECS Commercial paper U.S. Unsecured Asset-backed(b) 67,423 6,430 5.37 5.35 67,643 9,267 4.30 4.21 Non-U.S. 26,328 4.38 20,456 3.47 Current portion of long-term debt(c)(d) GE Interest Plus notes (e) 44,553 9,161 4.86 5.43 41,792 7,708 4.05 4.35 Other 19,421 10,806 173,316 157,672 ELIMINATIONS (3,375) (643) Total $172,153 $158,156 (a) Based on year-end balances and year-end local currency interest rates. Current portion of long-term debt included the effects of related interest rate and currency swaps, if any, directly associated with the original debt issuance. (b) Entirely obligations of consolidated, liquidating securitization entities. See note 28. (c) Included short-term borrowings by consolidated, liquidating securitization entities of $697 million at December 31, 2005, which matured in 2006. See note 28. (d) Included $250 million of subordinated notes guaranteed by GE at December 31, 2005, which matured in 2006. (e) Entirely variable denomination floating rate notes. ge 2006 annual report 93