GE 2005 Annual Report Download - page 43

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(43)
CONSUMER FINANCE
(In millions) 2005 2004 2003
REVENUES $19,416 $ 15,734 $ 12,845
SEGMENT PROFIT $3,050 $2,520 $2,161
December 31 (In millions) 2005 2004
TOTAL ASSETS $158,829 $151,255
Consumer Finance revenues and net earnings increased 23% and 21%, respectively, compared with 2004. Revenues
for 2005 included $1.9 billion from acquisitions. Revenues during 2005 also increased $1.8 billion as a result of
organic revenue growth ($1.5 billion) and the weaker U.S. dollar ($0.3 billion). The increase in net earnings resulted
primarily from core growth ($0.6 billion), including growth in lower-taxed earnings from global operations, and
acquisitions ($0.1 billion), partially offset by increased costs to launch new products and promote brand awareness
($0.2 billion).
Consumer Finance revenues and net earnings increased 22% and 17%, respectively, from 2003. The
increase in revenues resulted primarily from organic revenue growth ($1.0 billion), acquisitions ($1.0 billion) and
the weaker U.S. dollar ($0.8 billion). Organic revenue growth was achieved despite the absence of a 2004
counterpart to the 2003 gain on sale of The Home Depot private-label credit card receivables ($0.9 billion). The
increase in net earnings resulted from core growth ($0.6 billion), including growth in lower-taxed earnings from
global operations, acquisitions ($0.1 billion), and the weaker U.S. dollar ($0.1 billion), partially offset by the effects
of The Home Depot private-label credit card receivables ($0.4 billion) and increased costs to launch new products
and promote brand awareness in 2004 ($0.1 billion).
RESTATED CORPORATE ITEMS AND ELIMINATIONS
(In millions)
2005
(Restated)
2004
(Restated)
2003
(Restated)
REVENUES
Insurance activities $6,469 $4,711 $4,466
GECS commercial paper interest rate swap adjustment 540 518 535
Eliminations and other (1,105) 75 22
Total $5,904 $5,304 $5,023
OPERATING PROFIT (COST)
Insurance activities $131 $ 30 $ 21
Principal pension plans (329) 124 1,040
Underabsorbed corporate overhead (464) (498 ) (630)
GECS commercial paper interest rate swap adjustment 358 341 325
Other
(306) 17 (381)
Total $(610) $ 14 $ 375
Corporate Items and Eliminations include the effects of eliminating transactions between operating segments; results
of our insurance activities remaining in continuing operations; cost of, and cost reductions from, our principal
pension plans; results of liquidating businesses such as consolidated, liquidating securitization entities;
underabsorbed corporate overhead; certain non-allocated amounts described below; and a variety of sundry items.
Corporate Items and Eliminations is not an operating segment. Rather, it is added to operating segment totals to
reconcile to consolidated totals on the financial statements.