GE 2006 Annual Report Download - page 81

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    
Note 3
GE Other Income
(In millions) 2006 2005 2004
Sales of business interests $1,375 $ 630 $ 464
Associated companies 309 256 191
Marketable securities and bank deposits 280 96 92
Licensing and royalty income 221 227 145
Other items 505 555 184
Total $2,690 $1,764 $1,076
Note 4
GECS Revenues from Services
(In millions) 2006 2005 2004
Interest on loans $22,568 $20,096 $17,314
Equipment leased to others 12,940 11,582 10,744
Financing leases 4,298 3,990 4,160
Fees 4,229 4,180 3,254
Real estate investments 3,138 1,919 1,637
Investment income 2,614 2,839 2,428
Premiums earned by
insurance activities 2,084 2,333 2,195
Associated companies 2,079 1,320 708
Gross securitization gains 1,199 939 1,195
Other items 5,872 5,285 5,711
Total $61,021 $54,483 $49,346
Note 5
Supplemental Cost Information
Total expenditures for research and development were $3,659
million, $3,425 million and $3,091 million in 2006, 2005 and
2004, respectively. The portion we funded was $2,969 million
in 2006, $2,741 million in 2005 and $2,443 million in 2004.
Rental expense under operating leases is shown below.
(In millions) 2006 2005 2004
GE $932 $939 $874
GECS 991 993 931
At December 31, 2006, minimum rental commitments under
noncancellable operating leases aggregated $2,605 million and
$4,016 million for GE and GECS, respectively. Amounts payable
over the next fi ve years follow.
(In millions) 2007 2008 2009 2010 2011
GE $509 $434 $371 $311 $297
GECS 757 681 617 463 370
GE’s selling, general and administrative expenses totaled $13,841
million in 2006, $13,279 million in 2005 and $12,001 million in 2004.
Note 6
Retiree Health and Life Benefits
We sponsor a number of retiree health and life insurance benefi t
plans (retiree benefit plans). Principal retiree benefit plans are
discussed below; other such plans are not signifi cant individually
or in the aggregate. We use a December 31 measurement date
for our plans.
PRINCIPAL RETIREE BENEFIT PLANS provide health and life insurance
benefits to employees who retire under the GE Pension Plan with
10 or more years of service. Eligible retirees share in the cost of
healthcare benefits. Effective January 1, 2005, we amended our
principal retiree benefit plans to provide that, upon retirement of
salaried employees who commenced service after that date, such
retirees will pay in full for their participation in the GE retiree health
benefit plans. These plans cover approximately 240,000 retirees
and dependents.
Effective December 31, 2006, we adopted SFAS 158,
Employers’ Accounting for Defi ned Benefit Pension and Other
Postretirement Plans. See note 1 for the incremental effects of
the initial adoption of SFAS 158 on our Statement of Financial
Position at December 31, 2006.
ge 2006 annual report 79