notes to consolidated financial statements Note 22 Minority Interest in Equity of Consolidated Affiliates Minority interest in equity of consolidated affi liates includes com- mon shares in consolidated affiliates and preferred stock issued by GE Capital and by affiliates of GE Capital. Preferred shares that we are required to redeem at a specified or determinable date are classified as liabilities. The balance is summarized as follows: December 31 (In millions) 2006 2005 Minority interest in consolidated affi liates NBC Universal $4,774 $4,597 Others(a) 1,572 2,073 Minority interest in preferred stock (b) GE Capital — 70 GE Capital affiliates 1,232 1,314 Total $7,578 $8,054 (a) Included minority interest in partnerships, common shares of consolidated affi li- ates and consolidated, liquidating securitization entities. (b) The preferred stock primarily pays cumulative dividends at variable rates. Dividend rates in local currency on the preferred stock ranged from 3.28% to 5.49% during 2006 and 1.94% to 5.38% during 2005. Note 23 Shareowners’ Equity (In millions) COMMON STOCK ISSUED 2006 $ 669 2005 $ 669 2004 $ 669 ACCUMULATED NONOWNER OTHER THAN EARNINGS CHANGES Balance at January 1 $ 3,137 Investment securities — net of deferred taxes of $111, $(307) and $503 Currency translation adjustments — net of deferred taxes of $(1,417), $646 and $(1,314) Cash flow hedges — net of deferred taxes of $75, $493 and $75 Benefit plans — net of deferred taxes of $(2,533), $(159) and $(184)(a) Reclassifi cation adjustments Investment securities — net of deferred taxes of $(279), $(100) and $(142) Currency translation adjustments Cash flow hedges — net of deferred taxes of $(60), $(494) and $(55) 297 3,776 599 (3,532) (520) (127) (376) $ 8,156 (231) (4,315) 724 (217) (206) (3) (771) $ 4,079 677 3,936 203 (421) (265) — (53) Balance at December 31(b)(c) $ 3,254 $ 3,137 $ 8,156 OTHER CAPITAL Balance at January 1 $ 25,227 $ 24,265 $ 17,497 Gains on treasury stock dispositions and other(d) 259 962 4,615 Issuance of subsidiary shares (d)(e) — — 2,153 Balance at December 31 $ 25,486 $ 25,227 $ 24,265 RETAINED EARNINGS Balance at January 1 $ 97,644 $ 90,580 $ 82,014 Net earnings 20,829 16,711 17,160 Dividends(d) (10,675) (9,647) (8,594) Balance at December 31 $107,798 $ 97,644 $ 90,580 COMMON STOCK HELD IN TREASURY Balance at January 1 $ (17,326) $ (12,762) $ (24,597) Purchases (d) (10,512) (6,868) (1,892) Dispositions (d)(f) 2,945 2,304 13,727 Balance at December 31 $ (24,893) $ (17,326) $ (12,762) TOTAL EQUITY Balance at December 31 $112,314 $109,351 $110,908 (a) The 2006 change includes transition effect related to adoption of SFAS 158 of $(3,819) million, net of taxes of $(2,715) million. See note 1 for further information regarding SFAS 158. (b) Included accumulated nonowner changes related to discontinued operations of $(9) million, $652 million and $1,878 million at December 31, 2006, 2005 and 2004, respectively. (c) At December 31, 2006, included reductions of equity of $838 million related to hedges of our investments in financial services subsidiaries that have functional currencies other than the U.S. dollar and $129 million related to cash fl ow hedges of forecasted transactions, of which we expect to transfer $120 million to earnings in 2007 along with the earnings effects of the related forecasted transaction. (d) Total dividends and other transactions with shareowners reduced equity by $17,983 million in 2006 and $13,249 million in 2005 and increased equity by $10,009 million in 2004. (e) Related to the 2004 combination of NBC with Vivendi Universal Entertainment LLLP (VUE) whereby 20% of NBC Universal’s common stock was issued to a subsidiary of Vivendi S.A. (Vivendi) as partial consideration for Vivendi’s interest in VUE. (f) In 2004, included 341.7 million shares valued at $10,674 million issued in the Amersham acquisition, and 119.4 million shares valued at $3,765 million sold to partially fund the NBC and VUE combination. 96 ge 2006 annual report

notes to consolidated financial statements At December 31, 2006 and 2005, the aggregate statutory capital and surplus of the insurance activities and discontinued insurance operations totaled $1.7 billion and $9.8 billion, respectively. Accounting practices prescribed by statutory authorities are used in preparing statutory statements. In December 2004, our Board of Directors authorized a three- year, $15 billion share repurchase program, expanded that program in 2005 to $25 billion and extended it through 2008. Under this share repurchase program, on a book basis we repurchased 229.4 million shares for a total of $7.8 billion during 2006. Common shares issued and outstanding are summarized in the following table. SHARES OF GE COMMON STOCK December 31 (In thousands) 2006 2005 2004 Issued 11,145,212 11,145,212 11,145,212 In treasury (867,839) (660,944) (558,854) Outstanding 10,277,373 10,484,268 10,586,358 GE has 50 million authorized shares of preferred stock ($1.00 par value), but has not issued any such shares as of December 31, 2006. Note 24 Other Stock-Related Information We grant stock options, restricted stock units (RSUs) and perfor- mance share units (PSUs) to employees under the 1990 Long-Term Incentive Plan as described in our current Proxy Statement. In addition, we grant options and RSUs in limited circumstances to consultants, advisors and independent contractors (primarily non- employee talent at NBC Universal) under a plan approved by our Board of Directors in 1997 (the consultants’ plan). There are outstanding grants under two separate shareowner-approved option plans for non-employee directors. Share requirements for all plans may be met from either unissued or treasury shares. Stock options expire 10 years from the date they are granted and vest over service periods that range from one to fi ve years. RSUs give the recipients the right to receive shares of our stock upon the lapse of their related restrictions. Restrictions on RSUs lapse in various increments and at various dates, beginning after three years from date of grant through grantee retirement. Although the plan permits us to issue RSUs settleable in cash, we have only issued RSUs settleable in shares of our stock. PSUs give recipients the right to receive shares of our stock upon the achievement of certain performance targets. All grants of GE options under all plans must be approved by the Management Development and Compensation Committee, which consists entirely of independent directors. STOCK COMPENSATION PLANS Weighted Securities Securities average available to be issued exercise for future December 31, 2006 (Shares in thousands) upon exercise price issuance APPROVED BY SHAREOWNERS Options 231,713 $35.25 (a) RSUs 34,224 (b) (a) PSUs 1,380 (b) (a) NOT APPROVED BY SHAREOWNERS (CONSULTANTS’ PLAN) Options 707 34.26 (c) RSUs 103 (b) (c) Total 268,127 $35.25 130,093 (a) Under the 1990 Long-Term Incentive Plan, 0.95% of issued common stock (includ- ing treasury shares) as of the first day of each calendar year during which the plan is in effect becomes available for awards in that calendar year. Total shares available for future issuance under the 1990 Long-Term Incentive Plan amounted to 105.9 million shares. (b) Not applicable. (c) Total shares available for future issuance under the consultants’ plan amount to 24.2 million shares. Outstanding options expire on various dates through December 14, 2016. The following table summarizes information about stock options outstanding at December 31, 2006. STOCK OPTIONS OUTSTANDING (Shares in thousands) Outstanding Exercisable Average Average exercise exercise Exercise price range Shares Average life (a) price Shares price Under $25.00 18,698 0.9 $22.69 18,683 $22.69 25.01–30.00 46,383 4.5 26.90 40,181 26.87 30.01–35.00 60,887 8.1 33.16 18,346 32.39 35.01–40.00 45,728 3.2 37.18 45,283 37.19 40.01–45.00 47,089 3.9 43.23 47,089 43.23 Over $45.00 13,635 3.7 56.16 13,635 56.16 Total 232,420 4.7 $35.25 183,217 $35.93 At year-end 2005, options with an average exercise price of $33.48 were exercisable on 200 million shares. (a) Average contractual life remaining in years. ge 2006 annual report 97