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

notes to consolidated financial statements LONG-TERM BORROWINGS 2006 December 31 (Dollars in millions) Average rate(a) Maturities 2006 2005 GE Senior notes 5.06% 2008–2013 $ 6,488 $ 6,486 Industrial development/ pollution control bonds 4.11 2011–2027 307 299 Payable to banks, principally U.S. 5.68 2008–2015 1,836 1,912 Other(b) 454 384 9,085 9,081 GECS Senior notes Unsecured 4.95 2008–2055 235,952 180,546 Asset-backed (c) 5.83 2008–2035 5,810 6,845 Extendible notes 5.32 2009–2011 6,000 14,022 Subordinated notes (d) 5.92 2009–2066 5,201 2,984 252,963 204,397 ELIMINATIONS (1,244) (1,197) Total $260,804 $212,281 (a) Based on year-end balances and year-end local currency interest rates, including the effects of related interest rate and currency swaps, if any, directly associated with the original debt issuance. (b) A variety of obligations having various interest rates and maturities, including certain borrowings by parent operating components and affi liates. (c) Included $4,684 million and $6,845 million of asset-backed senior notes, issued by consolidated, liquidating securitization entities at December 31, 2006 and 2005, respectively. See note 28. (d) Included $750 million of subordinated notes guaranteed by GE at December 31, 2006 and 2005. Our borrowings are addressed below from the perspectives of liquidity, interest rate and currency risk management. Additional information about borrowings and associated swaps can be found in note 27. LIQUIDITY is affected by debt maturities and our ability to repay or refinance such debt. Long-term debt maturities over the next fi ve years follow. (In millions) 2007 2008 2009 2010 2011 GE $ 32 $ 1,572 $ 1,716 $ 42 $ 39 GECS 44,522(a) 53,282(b) 44,069 34,175 20,889 (a) Floating rate extendible notes of $256 million are due in 2007, but are extendible at the option of the investors to a final maturity in 2008. Fixed and fl oating rate notes of $975 million contain put options with exercise dates in 2007, and which have final maturity dates in 2008 ($350 million), 2009 ($100 million) and beyond 2012 ($525 million). (b) Floating rate extendible notes of $6,000 million are due in 2008, of which $2,000 million are extendible at the option of the investors to a final maturity in 2009, and $4,000 million are extendible to a final maturity in 2011. Committed credit lines totaling $59.9 billion had been extended to us by 75 banks at year-end 2006. Included in this amount was $50.4 billion provided directly to GECS and $9.5 billion provided by 16 banks to GE, to which GECS also has access. The GECS lines include $28.6 billion of revolving credit agreements under which we can borrow funds for periods exceeding one year. The remaining $31.3 billion are 364-day lines of which $31.2 billion contain a term-out feature that allows GE or GECS to extend the borrowings for one year from the date of expiration of the lending agreement. We pay banks for credit facilities, but compensation amounts were insignificant in each of the past three years. INTEREST RATE AND CURRENCY RISK is managed through the direct issuance of debt or use of derivatives. We take positions in view of anticipated behavior of assets, including prepayment behavior. We use a variety of instruments, including interest rate and cur- rency swaps and currency forwards, to achieve our interest rate objectives. The following table provides additional information about derivatives designated as hedges of borrowings in accordance with SFAS 133, Accounting for Derivative Instruments and Hedging Activities, as amended. DERIVATIVE FAIR VALUES BY ACTIVITY/INSTRUMENT December 31 (In millions) 2006 2005 Cash fl ow hedges $ 763 $ 726 Fair value hedges (147) (39) Total $ 616 $ 687 Interest rate swaps $ (860) $ (423) Currency swaps 1,476 1,110 Total $ 616 $ 687 We regularly assess the effectiveness of all other hedge positions using a variety of techniques, including cumulative dollar offset and regression analysis, depending on which method was selected at inception of the respective hedge. Adjustments related to fair value hedges decreased the carrying amount of debt outstanding at December 31, 2006, by $111 million. At December 31, 2006, the maximum term of derivative instru- ments that hedge forecasted transactions was 29 years and related to hedges of long-term, non-U.S. dollar denominated fixed rate debt. See note 27. 94 ge 2006 annual report