GE 2006 Annual Report Download - page 98

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Note 22
Minority Interest in Equity of Consolidated Affiliates
Minority interest in equity of consolidated affi liates includes com-
mon shares in consolidated affiliates and preferred stock issued
by GE Capital and by affiliates of GE Capital. Preferred shares that
we are required to redeem at a specified or determinable date
are classified as liabilities. The balance is summarized as follows:
December 31 (In millions) 2006 2005
Minority interest in consolidated affi liates
NBC Universal $4,774 $4,597
Others(a) 1,572 2,073
Minority interest in preferred stock
(b)
GE Capital — 70
GE Capital affiliates 1,232 1,314
Total $7,578 $8,054
(a) Included minority interest in partnerships, common shares of consolidated affi li-
ates and consolidated, liquidating securitization entities.
(b) The preferred stock primarily pays cumulative dividends at variable rates. Dividend
rates in local currency on the preferred stock ranged from 3.28% to 5.49% during
2006 and 1.94% to 5.38% during 2005.
Note 23
Shareowners’ Equity
(In millions)
COMMON STOCK ISSUED
2006
$ 669
2005
$ 669
2004
$ 669
ACCUMULATED NONOWNER
OTHER THAN EARNINGS
CHANGES
Balance at January 1 $ 3,137
Investment securities — net of deferred
taxes of $111, $(307) and $503
Currency translation adjustments —
net of deferred taxes of $(1,417),
$646 and $(1,314)
Cash flow hedges — net of deferred
taxes of $75, $493 and $75
Benefit plans — net of deferred
taxes of $(2,533), $(159) and $(184)(a)
Reclassifi cation adjustments
Investment securities — net of deferred
taxes of $(279), $(100) and $(142)
Currency translation adjustments
Cash flow hedges — net of deferred
taxes of $(60), $(494) and $(55)
297
3,776
599
(3,532)
(520)
(127)
(376)
$ 8,156
(231)
(4,315)
724
(217)
(206)
(3)
(771)
$ 4,079
677
3,936
203
(421)
(265)
—
(53)
Balance at December 31(b)(c) $ 3,254 $ 3,137 $ 8,156
OTHER CAPITAL
Balance at January 1 $ 25,227 $ 24,265 $ 17,497
Gains on treasury stock dispositions
and other(d) 259 962 4,615
Issuance of subsidiary shares
(d)(e) — — 2,153
Balance at December 31 $ 25,486 $ 25,227 $ 24,265
RETAINED EARNINGS
Balance at January 1 $ 97,644 $ 90,580 $ 82,014
Net earnings 20,829 16,711 17,160
Dividends(d) (10,675) (9,647) (8,594)
Balance at December 31 $107,798 $ 97,644 $ 90,580
COMMON STOCK HELD IN TREASURY
Balance at January 1 $ (17,326) $ (12,762) $ (24,597)
Purchases
(d) (10,512) (6,868) (1,892)
Dispositions (d)(f ) 2,945 2,304 13,727
Balance at December 31 $ (24,893) $ (17,326) $ (12,762)
TOTAL EQUITY
Balance at December 31 $112,314 $109,351 $110,908
(a) The 2006 change includes transition effect related to adoption of SFAS 158 of
$(3,819) million, net of taxes of $(2,715) million. See note 1 for further information
regarding SFAS 158.
(b) Included accumulated nonowner changes related to discontinued operations of
$(9) million, $652 million and $1,878 million at December 31, 2006, 2005 and 2004,
respectively.
(c) At December 31, 2006, included reductions of equity of $838 million related to
hedges of our investments in financial services subsidiaries that have functional
currencies other than the U.S. dollar and $129 million related to cash fl ow hedges
of forecasted transactions, of which we expect to transfer $120 million to earnings
in 2007 along with the earnings effects of the related forecasted transaction.
(d) Total dividends and other transactions with shareowners reduced equity by
$17,983 million in 2006 and $13,249 million in 2005; and increased equity by
$10,009 million in 2004.
(e) Related to the 2004 combination of NBC with Vivendi Universal Entertainment LLLP
(VUE) whereby 20% of NBC Universal’s common stock was issued to a subsidiary
of Vivendi S.A. (Vivendi) as partial consideration for Vivendi’s interest in VUE.
(f) In 2004, included 341.7 million shares valued at $10,674 million issued in the
Amersham acquisition, and 119.4 million shares valued at $3,765 million sold to
partially fund the NBC and VUE combination.
96 ge 2006 annual report