audited financial statements Statement of Earnings General Electric Company and consolidated affi liates For the years ended December 31 (In millions per-share amounts in dollars) 2006 2005 2004 REVENUES Sales of goods $ 64,297 $ 59,837 $ 55,005 Sales of services 36,403 32,752 29,700 Other income (note 3) 2,537 1,683 1,064 GECS earnings from continuing operations GECS revenues from services (note 4) 59,957 53,144 48,004 GECS commercial paper interest rate swap adjustment 197 540 518 Total revenues 163,391 147,956 134,291 COSTS AND EXPENSES (note 5) Cost of goods sold 50,588 46,169 42,645 Cost of services sold 23,522 20,645 19,114 Interest and other financial charges 19,286 15,102 11,616 Investment contracts, insurance losses and insurance annuity benefits 3,214 3,374 3,086 Provision for losses on financing receivables (note 14) 3,839 3,841 3,888 Other costs and expenses 37,414 35,143 32,917 Minority interest in net earnings of consolidated affiliates 908 986 728 Total costs and expenses 138,771 125,260 113,994 EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 24,620 22,696 20,297 Provision for income taxes (note 8) (3,954) (4,035) (3,696) EARNINGS FROM CONTINUING OPERATIONS 20,666 18,661 16,601 Earnings (loss) from discontinued operations, net of taxes (note 2) 163 (1,950) 559 NET EARNINGS $ 20,829 $ 16,711 $ 17,160 Per-share amounts (note 9) Per-share amounts earnings from continuing operations Diluted earnings per share $ 1.99 $ 1.76 $ 1.59 Basic earnings per share 1.99 1.77 1.60 Per-share amounts net earnings Diluted earnings per share 2.00 1.57 1.64 Basic earnings per share 2.01 1.58 1.65 DIVIDENDS DECLARED PER SHARE $ 1.03 $ 0.91 $ 0.82 Consolidated Statement of Changes in Shareowners’ Equity (In millions) 2006 2005 2004 CHANGES IN SHAREOWNERS’ EQUITY (note 23) Balance at January 1 $109,351 $110,908 $ 79,662 Dividends and other transactions with shareowners (17,983) (13,249) 10,009 Changes other than transactions with shareowners Increase attributable to net earnings 20,829 16,711 17,160 Investment securities net (223) (437) 412 Currency translation adjustments net 3,649 (4,318) 3,936 Cash flow hedges net 223 (47) 150 Benefit plans net (3,532) (217) (421) Total changes other than transactions with shareowners 20,946 11,692 21,237 Balance at December 31 $112,314 $109,351 $110,908 The notes to consolidated financial statements are an integral part of these statements. 68 ge 2006 annual report
statement of earnings GE GECS 2006 2005 2004 2006 2005 2004 $ 62,336 $ 57,378 $ 52,260 $ 2,384 $ 2,528 $ 2,840 36,772 33,052 29,954 2,690 1,764 1,076 10,495 9,527 8,169 61,021 54,483 49,346 197 540 518 112,293 101,721 91,459 63,602 57,551 52,704 48,808 43,870 39,999 2,204 2,369 2,741 23,891 20,945 19,368 1,834 1,432 979 18,081 14,223 11,081 3,419 3,574 3,303 3,839 3,841 3,888 13,841 13,279 12,001 23,955 22,530 21,609 673 784 538 235 202 190 89,047 80,310 72,885 51,733 46,739 42,812 23,246 21,411 18,574 11,869 10,812 9,892 (2,580) (2,750) (1,973) (1,374) (1,285) (1,723) 20,666 18,661 16,601 10,495 9,527 8,169 163 (1,950) 559 163 (1,950) 559 $ 20,829 $ 16,711 $ 17,160 $10,658 $ 7,577 $ 8,728 In the consolidating data on this page, “GE” means the basis of consolidation as described in note 1 to the consolidated financial statements “GECS” means General Electric Capital Services, Inc. and all of its affiliates and associated companies. Transactions between GE and GECS have been eliminated from the “General Electric Company and consolidated affiliates” columns. ge 2006 annual report 69
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