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GE 2009 ANNUAL REPORT 115
 
Financial Measures that Supplement
Generally Accepted Accounting Principles
We sometimes use information derived from consolidated finan-
cial information but not presented in our financial statements
prepared in accordance with U.S. generally accepted accounting
principles (GAAP). Certain of these data are considered “non-
GAAP financial measures” under U.S. Securities and Exchange
Commission rules. Specifically, we have referred, in various
sections of this Annual Report, to:
• Industrial earnings, excluding NBCU
• Cash generated by our Industrial businesses
• Average GE shareowners’ equity, excluding effects of
discontinued operations
• Ratio of debt to equity at GE Capital, net of cash and equiva-
lents and with classification of hybrid debt as equity
• Capital Finance ending net investment (ENI), excluding the
effects of currency exchange rates, at December 31, 2009
and 2008
• GE pre-tax earnings from continuing operations, excluding
GECS earnings from continuing operations, the corresponding
effective tax rates and the reconciliation of the U.S. federal
statutory rate to those effective tax rates for the three years
ended December 31, 2009
• Delinquency rates on managed equipment financing loans
and leases and managed consumer financing receivables for
2009, 2008 and 2007
The reasons we use these non-GAAP financial measures and the
reconciliations to their most directly comparable GAAP financial
measures follow.
Industrial Earnings, Excluding NBCU
(In millions) 2009 2008 % change
Total segment profit $19,339 $26,360
Less Capital Finance 2,344 8,632
Less NBC Universal 2,264 3,131
Segment profit, excluding Capital
Finance and NBC Universal (Industrial
earnings, excluding NBCU) $14,731 $14,597 1%
We have provided the increase in 2009 segment profit excluding
the earnings of our financial services segment, Capital Finance,
and our media business, NBC Universal. We believe that this is
a useful comparison because it provides investors with informa-
tion on the results of our industrial businesses without the NBC
Universal business, which is classified as a business held for sale
at December 31, 2009. We believe that this measure, considered
along with the corresponding GAAP measure, provides manage-
ment and investors with additional information for comparison
to other industrial businesses.
Cash Generated by Our Industrial Businesses
(In millions) 2009
Cash from GE’s operating activities as reported $16,581
Less dividends from GECS —
Cash from GE’s operating activities, excluding dividends
from GECS (Industrial CFOA) $16,581
We refer to cash generated by our industrial businesses as
“Industrial CFOA,” which we define as GE’s cash from operating
activities less the amount of dividends received by GE from
GECS. This includes the effects of intercompany transactions,
including GE customer receivables sold to GECS; GECS services
for trade receivables management and material procurement;
buildings and equipment (including automobiles) leased between
GE and GECS; information technology (IT) and other services sold
to GECS by GE; aircraft engines manufactured by GE that are
installed on aircraft purchased by GECS from third-party produc-
ers for lease to others; and various investments, loans and
allocations of GE corporate overhead costs. We believe that
investors may find it useful to compare GE’s operating cash
flows without the effect of GECS dividends, since these dividends
are not representative of the operating cash flows of our indus-
trial businesses and can vary from period to period based upon
the results of the financial services businesses. Management
recognizes that this measure may not be comparable to cash
flow results of companies which contain both industrial and
financial services businesses, but believes that this comparison
is aided by the provision of additional information about the
amounts of dividends paid by our financial services business and
the separate presentation in our financial statements of the
Financial Services (GECS) cash flows. We believe that our mea-
sure of Industrial CFOA provides management and investors with
a useful measure to compare the capacity of our industrial
operations to generate operating cash flow with the operating
cash flow of other non-financial businesses and companies and
as such provides a useful measure to supplement the reported
GAAP CFOA measure.