GE 2008 Annual Report Download - page 72

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70 ge 2008 annual report
notes to consolidated financial statements
RECONCILIATION OF U.S. FEDERAL STATUTORY INCOME TAX RATE TO ACTUAL INCOME TAX RATE
Consolidated GE GECS
2008 2007 2006 2008 2007 2006 2008 2007 2006
U.S. federal statutory income tax rate 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
Increase (reduction) in rate resulting from
Inclusion of after-tax earnings of GECS in
before-tax earnings of GE ———(12.6) (17.2) (16.3) ———
Tax on global activities including exports (a) (26.9) (15.6) (16.7) (5.3) (5.0) (6.5) (74.4) (21.0) (21.1)
U.S. business credits (1.5) (1.1) (1.4) (0.4) (0.3) (0.4) (3.8) (1.5) (2.2)
SES transaction —(2.1) — ————(4.0) —
All other —net (1.1) (0.6) — (0.8) (1.4) (0.1) (0.8) 1.4 0.3
(29.5) (19.4) (18.1) (19.1) (23.9) (23.3) (79.0) (25.1) (23.0)
Actual income tax rate 5.5% 15.6% 16.9% 15.9% 11.1% 11.7% (44.0)% 9.9% 12.0%
(a) 2008 included (1.8)% and (6.5)% from indefinite reinvestment of prior-year earnings for consolidated and GECS, respectively.
Note 8.
Earnings Per Share Information
2008 2007 2006
(In millions; per-share amounts in dollars) Diluted Basic Diluted Basic Diluted Basic
CONSOLIDATED
Earnings from continuing operations for per-share calculation (a) $18,091 $18,089 $22,457 $22,457 $19,345 $19,344
Preferred stock dividends declared (75) (75) ————
Earnings from continuing operations attributable to common
shareowners for per-share calculation $18,016 $18,014 $22,457 $22,457 $19,345 $19,344
Earnings (loss) from discontinued operations for per-share calculation (679) (679) (249) (249) 1,399 1,398
Net earnings attributable to common shareowners for
per-share calculation 17,336 17,335 22,208 22,208 20,744 20,742
AVERAGE EQUIVALENT SHARES
Shares of GE common stock outstanding 10,080 10,080 10,182 10,182 10,359 10,359
Employee compensation-related shares, including stock options 18 — 36 — 35 —
Total average equivalent shares 10,098 10,080 10,218 10,182 10,394 10,359
PER-SHARE AMOUNTS
Earnings from continuing operations $ 1.78 $ 1.79 $ 2.20 $ 2.21 $ 1.86 $ 1.87
Earnings (loss) from discontinued operations (0.07) (0.07) (0.02) (0.02) 0.13 0.14
Net earnings per share 1.72 1.72 2.17 2.18 2.00 2.00
(a) Included an insignificant amount of dividend equivalents in each of the three years ended December 31, 2008.
Earnings-per-share amounts are computed independently for
earnings from continuing operations, earnings (loss) from dis-
continued operations and net earnings. As a result, the sum of
per-share amounts from continuing operations and discontinued
operations may not equal the total per-share amounts for net
earnings.