GE 2005 Annual Report Download - page 123

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At December 31, 2005 and 2004, the aggregate statutory capital and surplus of the insurance activities and
discontinued insurance operations totaled $9.8 billion and $19.4 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,
we repurchased 153.3 million shares for a total of $5.3 billion during 2005.
Common shares issued and outstanding are summarized in the following table.
SHARES OF GE COMMON STOCK
December 31 (In millions) 2005 2004 2003
Issued 11,145,212 11,145,212 11,145,212
In treasury (660,944) (558,854) (1,082,092)
Outstanding 10,484,268 10,586,358 10,063,120
GE has 50 million authorized shares of preferred stock ($1.00 par value), but has not issued any such shares as of
December 31, 2005.
Note 24
Other Stock-Related Information
We grant stock options, restricted stock units (RSUs) and performance 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; the last grant
was made in 2002 and no further grants are expected to be made under these plans. Requirements for stock option
shares may be met from either unissued or treasury shares. 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.
We measure the total cost of each stock option grant at the date of grant using a market-based option
trading model. We recognize the cost of each stock option, RSU and PSU on a straight-line basis over its vesting
period.
Stock options expire 10 years from the date they are granted and vest over service periods that range from
one to five years.
All grants of GE options under all plans must be approved by the Management Development and
Compensation Committee, which consists entirely of outside directors.