notes to consolidated financial statements Note 11 GE Current Receivables December 31 (In millions) 2006 2005 Infrastructure $ 6,524 $ 6,827 NBC Universal 3,070 3,633 Healthcare 2,897 2,947 Industrial 1,950 2,255 Corporate items and eliminations 329 154 14,770 15,816 Less allowance for losses (492) (758) Total $14,278 $15,058 Receivables balances at December 31, 2006 and 2005, before allowance for losses, included $9,064 million and $10,250 million, respectively, from sales of goods and services to customers, and $208 million and $246 million at December 31, 2006 and 2005, respectively, from transactions with associated companies. Current receivables of $248 million and $563 million at December 31, 2006 and 2005, respectively, arose from sales, principally of Aviation goods and services on open account to various agencies of the U.S. government, our largest single customer. About 4% of our sales of goods and services were to the U.S. government in 2006, 2005 and 2004. Note 12 Inventories December 31 (In millions) 2006 2005 GE Raw materials and work in process Finished goods Unbilled shipments $ 6,547 4,998 424 $ 5,527 5,152 333 Less revaluation to LIFO 11,969 (622) 11,012 (697) 11,347 10,315 GECS Finished goods 54 159 Total $11,401 $10,474 As of December 31, 2006, we were obligated to acquire certain raw materials at market prices through the year 2027 under various take-or-pay or similar arrangements. Annual minimum commitments under these arrangements are insignifi cant. Note 13 GECS Financing Receivables (investments in loans and financing leases) December 31 (In millions) 2006 2005 Loans, net of deferred income $270,343 $227,923 Investment in financing leases, net of deferred income 68,569 64,309 338,912 292,232 Less allowance for losses (note 14) (4,680) (4,593) Financing receivables — net $334,232 $287,639 Included in the above are the financing receivables of consolidated, liquidating securitization entities as follows: December 31 (In millions) 2006 2005 Loans, net of deferred income $11,399 $15,868 Investment in financing leases, net of deferred income 134 769 11,533 16,637 Less allowance for losses (24) (22) Financing receivables — net $11,509 $16,615 Details of fi nancing receivables — net follow. December 31 (In millions) 2006 2005 COMMERCIAL FINANCE Equipment and leasing $ 76,057 $ 70,851 Commercial and industrial 49,222 41,402 Real estate 27,944 19,555 153,223 131,808 GE MONEY Non-U.S. residential mortgages 58,237 46,205 Non-U.S. installment and revolving credit 36,279 31,849 U.S. installment and revolving credit 29,007 21,963 Non-U.S. auto 25,088 22,803 Other 8,059 7,286 156,670 130,106 INFRASTRUCTURE(a) 21,200 19,124 OTHER (b) 7,819 11,194 338,912 292,232 Less allowance for losses (4,680) (4,593) Total $334,232 $287,639 (a) Included loans and financing leases of $11,165 million and $11,192 million at December 31, 2006 and 2005, respectively, related to commercial aircraft at Aviation Financial Services and loans and financing leases of $7,574 million and $5,419 million at December 31, 2006 and 2005, respectively, related to Energy Financial Services. (b) Included loans and financing leases of $6,853 million and $10,160 million at December 31, 2006 and 2005, respectively, related to certain consolidated, liquidating securitization entities. 88 ge 2006 annual report

notes to consolidated financial statements GECS financing receivables include both loans and fi nancing leases. Loans represent transactions in a variety of forms, includ- ing revolving charge and credit, mortgages, installment loans, intermediate-term loans and revolving loans secured by business assets. The portfolio includes loans carried at the principal amount on which finance charges are billed periodically, and loans carried at gross book value, which includes fi nance charges. Investment in financing leases consists of direct fi nancing and leveraged leases of aircraft, railroad rolling stock, autos, other transportation equipment, data processing equipment, medical equipment, commercial real estate and other manufacturing, power generation, and commercial equipment and facilities. As the sole owner of assets under direct financing leases and as the equity participant in leveraged leases, GECS is taxed on total lease payments received and is entitled to tax deductions NET INVESTMENT IN FINANCING LEASES December 31 (In millions) based on the cost of leased assets and tax deductions for interest paid to third-party participants. GECS is generally entitled to any residual value of leased assets. Investment in direct financing and leveraged leases repre- sents net unpaid rentals and estimated unguaranteed residual values of leased equipment, less related deferred income. GECS has no general obligation for principal and interest on notes and other instruments representing third-party participation related to leveraged leases such notes and other instruments have not been included in liabilities but have been offset against the related rentals receivable. The GECS share of rentals receivable on leveraged leases is subordinate to the share of other partici- pants who also have security interests in the leased equipment. Total financing leases Direct financing leases(a) Leveraged leases (b) 2006 2005 2006 2005 2006 2005 Total minimum lease payments receivable $88,598 $86,436 $64,637 $60,594 $23,961 $25,842 Less principal and interest on third-party nonrecourse debt (17,309) (19,061) — — (17,309) (19,061) Net rentals receivable 71,289 67,375 64,637 60,594 6,652 6,781 Estimated unguaranteed residual value of leased assets 10,062 9,379 7,068 6,260 2,994 3,119 Less deferred income (12,782) (12,445) (9,634) (9,305) (3,148) (3,140) Investment in financing leases, net of deferred income 68,569 64,309 62,071 57,549 6,498 6,760 Less amounts to arrive at net investment Allowance for losses (392) (525) (370) (380) (22) (145) Deferred taxes (8,314) (8,037) (3,410) (3,495) (4,904) (4,542) Net investment in financing leases $59,863 $55,747 $58,291 $53,674 $ 1,572 $ 2,073 (a) Included $654 million and $475 million of initial direct costs on direct financing leases at December 31, 2006 and 2005, respectively. (b) Included pre-tax income of $306 million and $248 million and income tax of $115 million and $96 million during 2006 and 2005, respectively. Net investment credits recognized during 2006 and 2005 were inconsequential. CONTRACTUAL MATURITIES Net rentals (In millions) Total loans receivable Due in 2007 $ 89,651 $18,422 2008 33,413 15,094 2009 25,731 11,637 2010 14,759 7,860 2011 17,893 5,244 2012 and later 88,896 13,032 Total $270,343 $71,289 We expect actual maturities to differ from contractual maturities. Individually “impaired” loans are defined by GAAP as larger balance or restructured loans for which it is probable that the lender will be unable to collect all amounts due according to original contractual terms of the loan agreement. An analysis of impaired loans follows. December 31 (In millions) 2006 2005 Loans requiring allowance for losses $1,346 $1,479 Loans expected to be fully recoverable 497 451 $1,843 $1,930 Allowance for losses $ 446 $ 627 Average investment during year 1,860 2,118 Interest income earned while impaired (a) 34 46 (a) Recognized principally on cash basis. ge 2006 annual report 89