GE 2007 Annual Report Download - page 77

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    
ge 2007 annual report 75
quarter of 2006, we sold our Advanced Materials business. As a
result of these sales, we recognized after-tax gains of $1,578 million
and $441 million during 2007 and 2006, respectively. Plastics and
Advanced Materials revenues from discontinued operations were
$4,286 million, $8,795 million and $8,882 million in 2007, 2006
and 2005, respectively. In total, Plastics and Advanced Materials
earnings from discontinued operations, net of taxes, were
$1,867 million, $959 million and $793 million in 2007, 2006 and
2005, respectively.
GE Life
In December 2006, we completed the sale of GE Life, our U.K.-
based life insurance operation, to Swiss Reinsurance Company
(Swiss Re) for $910 million. As a result, we recognized after-tax
losses of $3 million and $267 million during 2007 and 2006,
respectively. GE Life revenues from discontinued operations were
$2,096 million and $2,286 million in 2006 and 2005, respectively.
In total, GE Life losses from discontinued operations, net of taxes,
were $3 million, $178 million and $28 million in 2007, 2006 and
2005, respectively.
GE Insurance Solutions
In June 2006, we completed the sale of the property and casualty
insurance and reinsurance businesses and the European life
and health operations of GE Insurance Solutions to Swiss Re for
$9,297 million, including the assumption of $1,700 million of debt.
We received $5,359 million in cash and $2,238 million of newly
issued Swiss Re common stock, representing a 9% interest in
Swiss Re. As a result of the exit, we recognized earnings of
$16 million in 2007, compared with losses of $134 million and
$934 million in 2006 and 2005, respectively. GE Insurance Solutions
revenues from discontinued operations were $2,815 million
and $7,451 million in 2006 and 2005, respectively. In total, GE
Insurance Solutions earnings from discontinued operations, net
of taxes, were $15 million and $148 million in 2007 and 2006,
respectively, compared with a loss of $2,850 million in 2005.
Genworth
In March 2006, we completed the sale of our remaining 18%
investment in Genworth through a secondary public offering of
71 million shares of Class A Common Stock and direct sale to
Genworth of 15 million shares of Genworth Class B Common
Stock. As a result of initial and secondary public offerings, we
recognized after-tax gains of $85 million (primarily from a tax
adjustment related to the 2004 initial public offering), $220 million
and $552 million in 2007, 2006 and 2005, respectively. Genworth
revenues from discontinued operations were $5 million and
$7,908 million in 2006 and 2005, respectively. In total, Genworth
earnings from discontinued operations, net of taxes, were
$79 million, $193 million and $928 million in 2007, 2006 and
2005, respectively.
Summarized fi nancial information for discontinued GE indus-
trial operations is shown below.
(In millions)
2007 2006 2005
OPERATIONS
Total revenues $4,286 $8,795 $8,882
Earnings from discontinued
operations before income taxes
$ 233 $ 577 $ 875
Income tax benefi t (expense) 56 (59) (82)
Earnings from discontinued
operations before disposal,
net of taxes
$ 289 $ 518 $ 793
DISPOSAL
Gain on disposal before
income taxes $2,362 $ 357 $ —
Income tax benefi t (expense) (784) 84 —
Gain on disposal, net of taxes
$1,578 $ 441 $ —
EARNINGS FROM DISCONTINUED
OPERATIONS, NET OF TAXES $1,867 $ 959 $ 793
December 31 (In millions) 2007 2006
ASSETS
Inventories $ — $1,447
Property, plant and equipment — net 9 4,063
Intangible assets — net — 2,081
Other 57 1,165
Assets of discontinued operations
$ 66 $8,756
LIABILITIES
Accounts payable, principally
trade accounts $ — $ 944
Other GE current liabilities 146 594
Other 156 701
Liabilities of discontinued operations
$302 $2,239
Summarized fi nancial information for discontinued GECS opera-
tions is shown below.
(In millions) 2007 2006 2005
OPERATIONS
Total revenues $ (368) $6,892 $19,989
Earnings (loss) from discontinued
operations before income taxes
$(2,211) $ 599 $ (1,457)
Income tax benefi t (expense) 956 (15) 412
Earnings (loss) from discontinued
operations before disposal,
net of taxes
$(1,255) $ 584 $ (1,045)
DISPOSAL
Gain (loss) on disposal before
income taxes $(1,510) $ (75) $ 629
Income tax benefi t (expense) 638 (106) (1,011)
Loss on disposal, net of taxes
$ (872) $ (181) $ (382)
EARNINGS (LOSS) FROM DISCONTINUED
OPERATIONS, NET OF TAXES $(2,127) $ 403 $ (1,427)