audited financial statements Statement of Financial Position General Electric Company and consolidated affi liates At December 31 (In millions, except share amounts) 2006 2005 ASSETS Cash and equivalents $ 14,275 $ 8,825 Investment securities (note 10) 47,826 42,148 Current receivables (note 11) 13,954 14,851 Inventories (note 12) 11,401 10,474 Financing receivables — net (notes 13 and 14) 334,205 287,639 Other GECS receivables 17,067 14,332 Property, plant and equipment — net (note 15) 74,966 67,528 Investment in GECS — — Intangible assets — net (note 16) 86,433 81,630 All other assets (note 17) 97,112 84,828 Assets of discontinued operations (note 2) — 61,066 Total assets $697,239 $673,321 LIABILITIES AND EQUITY Short-term borrowings (note 18) $172,153 $158,156 Accounts payable, principally trade accounts 21,697 21,183 Progress collections and price adjustments accrued 5,248 4,456 Dividends payable 2,878 2,623 Other GE current liabilities 18,538 18,552 Long-term borrowings (note 18) 260,804 212,281 Investment contracts, insurance liabilities and insurance annuity benefits (note 19) 34,499 33,097 All other liabilities (note 20) 46,884 39,833 Deferred income taxes (note 21) 14,171 16,208 Liabilities of discontinued operations (note 2) 475 49,527 Total liabilities 577,347 555,916 Minority interest in equity of consolidated affiliates (note 22) 7,578 8,054 Common stock (10,277,373,000 and 10,484,268,000 shares outstanding at year-end 2006 and 2005, respectively) 669 669 Accumulated gains (losses) — net Investment securities 1,608 1,831 Currency translation adjustments 6,181 2,532 Cash flow hedges (129) (352) Benefit plans (4,406) (874) Other capital 25,486 25,227 Retained earnings 107,798 97,644 Less common stock held in treasury (24,893) (17,326) Total shareowners’ equity (notes 23 and 24) 112,314 109,351 Total liabilities and equity $697,239 $673,321 The sum of accumulated gains (losses) on investment securities, currency translation adjustments, cash flow hedges and benefit plans constitutes “Accumulated nonowner changes other than earnings,” as shown in note 23, and was $3,254 million and $3,137 million at December 31, 2006 and 2005, respectively. The notes to consolidated financial statements are an integral part of this statement. 70 ge 2006 annual report

statement of financial position GE GECS 2006 2005 2006 2005 $ 4,480 $ 2,015 $ 12,629 $ 7,130 342 461 47,492 41,710 14,278 15,058 — — 11,347 10,315 54 159 — — 334,232 287,639 — — 21,853 18,625 16,738 16,504 58,228 51,024 54,097 50,812 — — 60,465 57,839 25,968 23,791 34,078 36,752 64,212 49,440 — — — 61,066 $195,825 $189,756 $564,668 $540,584 $ 2,212 $ 1,127 $173,316 $157,672 11,913 11,870 13,923 13,043 5,248 4,456 — — 2,878 2,623 — — 18,538 18,569 — — 9,085 9,081 252,963 204,397 — — 34,807 33,387 26,060 23,140 20,935 16,787 1,954 3,733 12,217 12,475 — — 455 49,763 77,888 74,599 508,616 487,524 5,623 5,806 1,955 2,248 669 669 1 1 1,608 1,831 1,594 1,754 6,181 2,532 4,837 2,287 (129) (352) (171) (343) (4,406) (874) (278) (179) 25,486 25,227 12,537 12,386 107,798 97,644 35,577 34,906 (24,893) (17,326) — — 112,314 109,351 54,097 50,812 $195,825 $189,756 $564,668 $540,584 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 71