GE 2006 Annual Report Download - page 47

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 
Contents
46 Management’s Discussion of Financial Responsibility .......................... We begin with a letter from our Chief Executive and Financial
Officers discussing our unyielding commitment to rigorous oversight,
controllership, informative disclosure and visibility to investors.
46 Management’s Annual Report on Internal Control
Over Financial Reporting ..................................................................................... In this report our Chief Executive and Financial Offi cers provide
their assessment of the effectiveness of our internal control over
fi nancial reporting.
47 Report of Independent Registered Public Accounting Firm ................ Our independent auditors, KPMG LLP, express their opinions on our
financial statements and our internal control over fi nancial reporting.
48 Management’s Discussion and Analysis (MD&A)
48 Operations ........................................................................................................ We begin the Operations section of MD&A with an overview of
our earnings, including a perspective on how the global economic
environment has affected our businesses over the last three years.
We then discuss various key operating results for GE industrial (GE)
and financial services (GECS). Because of the fundamental differences
in these businesses, reviewing certain information separately for GE
and GECS offers a more meaningful analysis. Next we provide a
description of our global risk management process. Our discussion of
segment results includes quantitative and qualitative disclosure about
the factors affecting segment revenues and profits, and the effects
of recent acquisitions, dispositions and significant transactions. We
conclude the Operations section with an overview of our operations
from a global perspective and a discussion of environmental matters.
58 Financial Resources and Liquidity ......................................................... In the Financial Resources and Liquidity section of MD&A, we provide
an overview of the major factors that affected our consolidated
financial position and insight into the liquidity and cash fl ow activities
of GE and GECS.
63 Critical Accounting Estimates ................................................................. Critical Accounting Estimates are necessary for us to prepare our
financial statements. In this section, we discuss what these
estimates are, why they are important, how they are developed
and uncertainties to which they are subject.
66 Other Information ......................................................................................... We conclude MD&A with a brief discussion of new accounting
standards that will become effective for us in 2007.
66 Selected Financial Data.............................................................................. Selected Financial Data provides five years of fi nancial information
for GE and GECS. This table includes commonly used metrics that
facilitate comparison with other companies.
68 Audited Financial Statements and Notes
68 Statement of Earnings
68 Consolidated Statement of Changes in Shareowners’ Equity
70 Statement of Financial Position
72 Statement of Cash Flows
74 Notes to Consolidated Financial Statements
109 Supplemental Information .................................................................................. We provide Supplemental Information to reconcile certain
“non-GAAP financial measures” referred to in our report to the
most closely associated GAAP fi nancial measures.
112 Glossary ....................................................................................................................... For your convenience, we also provide a Glossary of key terms
used in our fi nancial statements.
We also present our financial information electronically at
www.ge.com/investor. This award-winning site is interactive
and informative.
ge 2006 annual report 45