notes to consolidated financial statements SELECTED FINANCING RECEIVABLES RATIOS Note 14 December 31 2006 2005 ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES AS A PERCENTAGE OF TOTAL FINANCING RECEIVABLES Commercial Finance GE Money Infrastructure Other Total 0.58% 2.37 0.21 0.36 1.38 0.84% 2.49 1.15 0.26 1.57 NONEARNING FINANCING RECEIVABLES AS A PERCENTAGE OF TOTAL FINANCING RECEIVABLES Commercial Finance GE Money Infrastructure Other Total 1.0% 2.1 1.1 1.5 1.0% 2.1 0.1 0.7 1.4 GECS Allowance for Losses on Financing Receivables (In millions) 2006 2005 2004 BALANCE AT JANUARY 1 Commercial Finance GE Money Infrastructure $ 1,110 3,234 220 $ 1,562 3,473 583 $ 1,952 3,984 293 Other 29 30 27 4,593 5,648 6,256 PROVISION CHARGED TO OPERATIONS Commercial Finance 121 293 327 GE Money Infrastructure Other 3,767 (64) 15 3,337 210 1 3,219 325 17 3,839 3,841 3,888 OTHER REDUCTIONS, NET (5) (487) (74) GROSS WRITE-OFFS Commercial Finance GE Money Infrastructure Other (558) (4,773) (112) (34) (892) (4,447) (572) (48) (928) (4,423) (27) (74) (5,477) (5,959) (5,452) RECOVERIES Commercial Finance 188 180 161 GE Money Infrastructure 1,533 1,359 846 2 Other 9 11 21 1,730 1,550 1,030 BALANCE AT DECEMBER 31 Commercial Finance GE Money Infrastructure 893 3,715 44 1,110 3,234 220 1,562 3,473 583 Other 28 29 30 Total $ 4,680 $ 4,593 $ 5,648 See note 13 for amounts related to consolidated, liquidating securitization entities. 90 ge 2006 annual report
notes to consolidated financial statements Note 15 Property, Plant and Equipment Estimated useful lives– December 31 (Dollars in millions) new (years) 2006 2005 ORIGINAL COST GE Land and improvements 8(a) $ 1,054 $ 1,366 Buildings, structures and related equipment 8–40 10,875 10,044 Machinery and equipment 4–20 24,988 25,811 Leasehold costs and manufacturing plant under construction 1–10 2,716 2,157 39,633 39,378 GECS(b) Land, buildings and equipment 1–40(a) 5,447 5,543 Equipment leased to others Aircraft 20 36,146 32,941 Vehicles 1–14 26,937 23,208 Mobile and modular space 12–25 4,059 2,889 Railroad rolling stock 5–36 3,509 3,327 Construction and manufacturing 2–25 1,932 1,609 All other 2–33 2,771 2,834 80,801 72,351 Total $120,434 $111,729 NET CARRYING VALUE GE Land and improvements $ 926 $ 1,269 Buildings, structures and related equipment 5,279 4,823 Machinery and equipment 8,073 8,525 Leasehold costs and manufacturing plant under construction 2,460 1,887 16,738 16,504 GECS(b) Land, buildings and equipment 3,012 3,116 Equipment leased to others Aircraft(c) 29,886 27,116 Vehicles 17,132 14,064 Mobile and modular space 2,546 1,496 Railroad rolling stock 2,395 2,188 Construction and manufacturing 1,291 1,088 All other 1,966 1,956 58,228 51,024 Total $ 74,966 $ 67,528 (a) Estimated useful lives exclude land. (b) Included $1,763 million and $1,935 million of original cost of assets leased to GE with accumulated amortization of $293 million and $298 million at December 31, 2006 and 2005, respectively. (c) The Aviation Financial Services business of Infrastructure recognized impairment losses of $51 million in 2006 and $295 million in 2005 recorded in the caption “Other costs and expenses” in the Statement of Earnings to reflect adjustments to fair value based on current market values from independent appraisers. Amortization of GECS equipment leased to others was $5,839 million, $5,642 million and $5,365 million in 2006, 2005 and 2004, respectively. Noncancellable future rentals due from customers for equipment on operating leases at December 31, 2006, are as follows: (In millions) Due in 2007 $ 8,253 2008 7,013 2009 5,744 2010 4,550 2011 3,322 2012 and later 9,647 Total $38,529 Note 16 Intangible Assets December 31 (In millions) 2006 2005 GE Goodwill $50,585 $48,274 Intangible assets subject to amortization 7,585 7,478 Indefinite-lived intangible assets(a) 2,295 2,087 60,465 57,839 GECS Goodwill 22,754 21,337 Intangible assets subject to amortization 3,214 2,454 25,968 23,791 Total $86,433 $81,630 (a) Indefinite-lived intangible assets principally comprised trademarks, tradenames and U.S. Federal Communications Commission licenses. ge 2006 annual report 91
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