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ge 2007 annual report 107
Financial Measures that Supplement Generally
Accepted Accounting Principles
We sometimes use information derived from consolidated fi nan-
cial information but not presented in our fi nancial statements
prepared in accordance with U.S. generally accepted accounting
principles (GAAP). Certain of these data are considered “non-
GAAP fi nancial measures” under U.S. Securities and Exchange
Commission rules. Specifi cally, we have referred, in various
sections of this Annual Report, to:
• Organic revenue growth in 2007, 2006, 2005, 2004 and 2003,
and the average for the three years ended December 31, 2007
• Growth in industrial cash from operating activities (CFOA)
in 2007
• Free cash fl ow in 2007, 2006, 2005, 2004 and 2003
• Operating profi t margins in 2007, 2006, 2005, 2004 and 2003
• Average total shareowners’ equity, excluding effects of
discontinued operations
• GE earnings from continuing operations before income taxes,
excluding GECS earnings from continuing operations and the
corresponding effective tax rates, for the three years ended
December 31, 2007
• GE income tax rate, excluding GECS earnings, for the three years
ended December 31, 2007
• Delinquency rates on certain fi nancing receivables of the
Commercial Finance and GE Money segments for 2007, 2006
and 2005
The reasons we use these non-GAAP fi nancial measures and the
reconciliations to their most directly comparable GAAP fi nancial
measures follow.
Organic revenue growth in 2007
(In millions) 2007 2006 % change
GE consolidated revenues
as reported $172,738 $151,843
Less the effects of
Acquisitions, business dispositions
(other than dispositions of busi-
nesses acquired for investment)
and currency exchange rates 12,803 4,992
The 2006 Olympics broadcasts — 684
GE consolidated revenues excluding
the effects of acquisitions, business
dispositions (other than dispositions
of businesses acquired for invest-
ment), currency exchange rates and
the 2006 Olympics broadcasts
(organic revenues)
$159,935 $146,167 9%
Organic revenue growth in 2006
(In millions) 2006 2005 % change
GE consolidated revenues
as reported $151,843 $136,580
Less the effects of
Acquisitions, business dispositions
(other than dispositions of busi-
nesses acquired for investment)
and currency exchange rates 5,213 2,750
The 2006 Olympics broadcasts 684 —
Investigation-related adjustments
Revenue recognition (416) (142)
GECS interest rate swaps 197 540
Reclassifi cations of discontinued
operations (11,132) (11,234)
GE consolidated revenues excluding
the effects of acquisitions, business
dispositions (other than dispositions
of businesses acquired for invest-
ment), currency exchange rates,
the 2006 Olympics broadcasts,
investigation-related adjustments
and reclassifi cations of discontinued
operations (organic revenues) $157,297 $144,666 9%
Organic revenue growth in 2005
(In millions) 2005 2004 % change
GE consolidated revenues
as reported $136,580 $124,176
Less the effects of
Acquisitions, business dispositions
(other than dispositions of busi-
nesses acquired for investment)
and currency exchange rates 8,275 3,818
The 2004 Olympics broadcasts — 927
Investigation-related adjustments
Revenue recognition (142) 160
GECS interest rate swaps 540 518
SFAS 133 — 503
Reclassifi cations of discontinued
operations (11,234) (10,275)
GE consolidated revenues excluding
the effects of acquisitions, business
dispositions (other than dispositions
of businesses acquired for invest-
ment), currency exchange rates,
the 2004 Olympics broadcasts,
investigation-related adjustments
and reclassifi cations of discontinued
operations (organic revenues) $139,141 $128,525 8%
Three-year average 9%
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