GE 2006 Annual Report Download - page 99

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    
At December 31, 2006 and 2005, the aggregate statutory capital
and surplus of the insurance activities and discontinued insurance
operations totaled $1.7 billion and $9.8 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, on a book basis we repurchased
229.4 million shares for a total of $7.8 billion during 2006.
Common shares issued and outstanding are summarized in
the following table.
SHARES OF GE COMMON STOCK
December 31 (In thousands) 2006 2005 2004
Issued 11,145,212 11,145,212 11,145,212
In treasury (867,839) (660,944) (558,854)
Outstanding 10,277,373 10,484,268 10,586,358
GE has 50 million authorized shares of preferred stock ($1.00 par
value), but has not issued any such shares as of December 31, 2006.
Note 24
Other Stock-Related Information
We grant stock options, restricted stock units (RSUs) and perfor-
mance 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. Share requirements for
all plans may be met from either unissued or treasury shares.
Stock options expire 10 years from the date they are granted
and vest over service periods that range from one to fi ve years.
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.
All grants of GE options under all plans must be approved by
the Management Development and Compensation Committee,
which consists entirely of independent directors.
STOCK COMPENSATION PLANS
Weighted Securities
Securities average available
to be issued exercise for future
December 31, 2006 (Shares in thousands) upon exercise price issuance
APPROVED BY SHAREOWNERS
Options 231,713 $35.25
(a)
RSUs 34,224 (b) (a)
PSUs 1,380 (b) (a)
NOT APPROVED BY SHAREOWNERS
(CONSULTANTS’ PLAN)
Options 707 34.26
(c)
RSUs 103 (b) (c)
Total 268,127 $35.25 130,093
(a) Under the 1990 Long-Term Incentive Plan, 0.95% of issued common stock (includ-
ing treasury shares) as of the first day of each calendar year during which the
plan is in effect becomes available for awards in that calendar year. Total shares
available for future issuance under the 1990 Long-Term Incentive Plan amounted
to 105.9 million shares.
(b) Not applicable.
(c) Total shares available for future issuance under the consultants’ plan amount to
24.2 million shares.
Outstanding options expire on various dates through December 14,
2016.
The following table summarizes information about stock
options outstanding at December 31, 2006.
STOCK OPTIONS OUTSTANDING
(Shares in thousands) Outstanding Exercisable
Average Average
exercise exercise
Exercise price range Shares Average life (a) price Shares price
Under $25.00 18,698 0.9 $22.69 18,683 $22.69
25.01–30.00 46,383 4.5 26.90 40,181 26.87
30.01–35.00 60,887 8.1 33.16 18,346 32.39
35.01–40.00 45,728 3.2 37.18 45,283 37.19
40.01–45.00 47,089 3.9 43.23 47,089 43.23
Over $45.00 13,635 3.7 56.16 13,635 56.16
Total 232,420 4.7 $35.25 183,217 $35.93
At year-end 2005, options with an average exercise price of $33.48 were exercisable
on 200 million shares.
(a) Average contractual life remaining in years.
ge 2006 annual report 97