GE 2007 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2007 GE annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

    
76 ge 2007 annual report
December 31 (In millions) 2007 2006
ASSETS
Cash and equivalents $ 284 $ 177
Financing receivables — net 5,138 5,643
All other assets 115 4,823
Other 1,166 476
Assets of discontinued operations
$6,703 $11,119
LIABILITIES
Liabilities of discontinued operations $1,526 $ 485
Assets and liabilities at December 31, 2007, were primarily at our
Lake business.
Note 3
Other Income
(In millions) 2007 2006 2005
GE
Sales of business interests
(a) $1,541 $ 878 $ 576
Associated companies 671 437 312
Interest income from GECS 329 145 110
Marketable securities and
bank deposits 282 272 89
Licensing and royalty income 255 220 224
Other items 293 355 443
3,371 2,307 1,754
ELIMINATIONS (352) (153) (81)
Total
$3,019 $2,154 $1,673
(a) Included gain on sale of a business interest to Hitachi of $900 million in 2007.
Note 4
GECS Revenues from Services
(In millions) 2007 2006 2005
Interest on loans $24,034 $20,755 $18,078
Equipment leased to others 15,260 12,940 11,587
Fees 6,544 5,383 4,902
Investment income
(a) 4,724 3,115 3,134
Financing leases 4,699 4,298 3,990
Real estate investments 4,669 3,138 1,919
Premiums earned by
insurance activities 2,232 2,084 2,333
Associated companies 2,172 2,079 1,320
Gross securitization gains 1,812 1,187 1,051
Other items 5,322 4,263 4,365
Total
$71,468 $59,242 $52,679
(a) Included gain on sale of Swiss Re common stock of $566 million in 2007.
Note 5
Supplemental Cost Information
Total expenditures for research and development were $4,075
million, $3,480 million and $3,235 million in 2007, 2006 and
2005, respectively. The portion we funded was $3,009 million in
2007, $2,790 million in 2006 and $2,551 million in 2005.
Rental expense under operating leases is shown below.
(In millions)
2007 2006 2005
GE $ 929 $854 $862
GECS 1,022 927 918
At December 31, 2007, minimum rental commitments under
noncancellable operating leases aggregated $2,647 million and
$3,671 million for GE and GECS, respectively. Amounts payable
over the next fi ve years follow.
(In millions) 2008 2009 2010 2011 2012
GE $509 $478 $416 $384 $338
GECS 752 691 515 395 337
Payments under revenue sharing partnerships amounted to
$1.9 billion, $1.4 billion and $1.2 billion in 2007, 2006 and 2005,
respectively, and are included in cost of goods sold. GE’s selling,
general and administrative expenses totaled $14,148 million in
2007, $12,893 million in 2006 and $12,316 million in 2005.
Note 6
Postretirement Benefit Plans
Retiree health and life benefits
We sponsor a number of retiree health and life insurance benefi t
plans (retiree benefi t plans). Principal retiree benefi t 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
benefi ts to certain employees who retire under the GE Pension
Plan with 10 or more years of service. Eligible retirees share in
the cost of healthcare benefi ts. These plans cover approximately
235,000 retirees and dependents.
COST OF PRINCIPAL RETIREE BENEFIT PLANS
(In millions) 2007 2006 2005
Expected return on plan assets $ (125) $(127) $ (138)
Service cost for benefi ts earned 286 229 243
Interest cost on benefi t obligation 577 455 507
Prior service cost amortization 603 363 326
Net actuarial loss (gain) amortization (17) 64 70
Retiree benefi t plans cost
$1,324 $ 984 $1,008