GE 2005 Annual Report Download - page 11

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(11)
This document contains “forward-looking statements” – that is, statements related to future, not past,
events. In this context, forward-looking statements often address our expected future business and financial
performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” or
“will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us,
particular uncertainties which could adversely or positively affect our future results include: the behavior of
financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including
dispositions; future integration of acquired businesses; future financial performance of major industries which we
serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and
healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of
national, regional and global scale, including those of a political, economic, business, competitive and regulatory
nature. These uncertainties may cause our actual future results to be materially different than those expressed in our
forward-looking statements. We do not undertake to update our forward-looking statements.
Our consolidated global revenues increased to $77.9 billion in 2005, compared with $66.9 billion in 2004
and $54.3 billion in 2003. For additional information about our global operations, see pages 45 and 46.
Operating Segments
Segment revenue and profit information is presented on page 38. Additional financial data and commentary on
recent financial results for operating segments are provided on pages 36, 37 and 39-44 and in note 26 (pages 127 and
128) to the consolidated financial statements.
In the fourth quarter of 2005, we announced the planned sale of the property and casualty insurance and
reinsurance businesses and the European life and health operations of GE Insurance Solutions Corporation (GE
Insurance Solutions) and completed a Genworth Financial, Inc. (Genworth) secondary public offering, which
reduced our ownership in Genworth to 18%. We have reported both GE Insurance Solutions and Genworth as
discontinued operations for all periods presented. These businesses were previously reported in the Commercial
Finance segment. Also, during the fourth quarter of 2005, our insurance activities, previously reported in the
Commercial Finance segment, were transferred to corporate items and eliminations for all periods presented.
Operating businesses that are reported as segments include Infrastructure, Industrial, Healthcare, NBC
Universal, Commercial Finance and Consumer Finance. There is appropriate elimination of the net earnings of
GECS and the immaterial effect of transactions between segments to arrive at total consolidated data. A summary
description of each of our operating segments follows.
We will also continue our longstanding practice of providing supplemental information for certain
businesses within the segments.
Infrastructure
Infrastructure (27.8%, 27.7% and 32.2% of consolidated revenues in 2005, 2004 and 2003, respectively) produces,
sells, finances and services equipment for the air transportation and energy generation industries. We also produce,
sell and service equipment for the rail transportation and water treatment industries. During 2005, we made a
number of acquisitions, the most significant of which was Ionics, Inc.
Our operations are located in North America, Europe, Asia and South America.