GE 2005 Annual Report Download - page 112

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(112)
The amount of goodwill related to new acquisitions recorded during 2005 was $3,705 million, the largest of which
were Edwards Systems Technology ($996 million) by Industrial, Ionics, Inc. ($681 million) by Infrastructure,
Antares Capital Corp. ($407 million) by Commercial Finance, an additional interest in MSNBC ($402 million) and
the previously outstanding minority interest in Vivendi Universal Entertainment LLLP (VUE) ($329 million) by
NBC Universal.
The amount of goodwill related to purchase accounting adjustments to prior-year acquisitions during 2005
was $215 million, primarily associated with the 2004 acquisition of Amersham by Healthcare and the combination
of NBC and VUE.
The amount of goodwill related to new acquisitions during 2004 was $20,948 million, the largest of which
were the combination of NBC and VUE and the acquisition of Amersham by Healthcare, both discussed on the
following page, and InVision Technologies, Inc. ($618 million) by Industrial.
The amount of goodwill related to purchase accounting adjustments to prior-year acquisitions during 2004
was $500 million, primarily associated with the 2003 acquisition of Instrumentarium at Healthcare and Allbank and
First National Bank at Consumer Finance.
Upon closing an acquisition, we estimate the fair values of assets and liabilities acquired and consolidate
the acquisition as quickly as possible. Given the time it takes to obtain pertinent information to finalize the acquired
company’ s balance sheet (frequently with implications for the price of the acquisition), then to adjust the acquired
company’ s accounting policies, procedures, books and records to our standards, it is often several quarters before we
are able to finalize those initial fair value estimates. Accordingly, it is not uncommon for our initial estimates to be
subsequently revised.