(Mark
One)
þ QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
For
the quarterly period ended March
31, 2006
OR
|
¨ TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For
the transition period from ____ to ____
|
Commission
file number 1-35
GENERAL
ELECTRIC COMPANY
(Exact
name of registrant as specified in its
charter)
|
New
York
|
14-0689340
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|
|
||
3135
Easton Turnpike, Fairfield, CT
|
06828-0001
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
|
||
(Registrant’s
telephone number, including area code) (203)
373-2211
_______________________________________________
(Former
name, former address and former fiscal year,
if
changed since last report)
|
Large
accelerated filer þ
|
Accelerated
filer ¨
|
Non-accelerated
filer ¨
|
Page
|
||
|
||
Item
1.
Financial Statements
|
||
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
Item
2.
Management’s Discussion and Analysis of Financial Condition and Results of
Operations
|
19
|
|
Item
4.
Controls and Procedures
|
28
|
|
Part
II -
Other Information
|
||
Item
1.
Legal Proceedings
|
29
|
|
Item
2.
Purchases of Equity Securities by the Issuer and Affiliated
Purchasers
|
29
|
|
Item
6.
Exhibits
|
30
|
|
31
|
Three
months ended March 31 (Unaudited)
|
||||||||||||||||||
Consolidated
|
GE
|
Financial
Services
(GECS)
|
||||||||||||||||
(In
millions; per-share amounts in dollars)
|
2006
|
2005
|
2006
|
2005
|
2006
|
2005
|
||||||||||||
Sales
of goods
|
$
|
14,535
|
$
|
13,656
|
$
|
14,026
|
$
|
12,988
|
$
|
555
|
$
|
674
|
||||||
Sales
of services
|
8,949
|
7,749
|
9,060
|
7,845
|
-
|
-
|
||||||||||||
Other
income
|
451
|
317
|
479
|
330
|
-
|
-
|
||||||||||||
GECS
earnings from continuing operations
|
-
|
-
|
2,270
|
1,863
|
-
|
-
|
||||||||||||
GECS
revenues from services
|
13,886
|
12,628
|
-
|
-
|
14,126
|
12,931
|
||||||||||||
Total
revenues
|
37,821
|
34,350
|
25,835
|
23,026
|
14,681
|
13,605
|
||||||||||||
Cost
of goods sold
|
11,656
|
10,606
|
11,188
|
9,977
|
513
|
635
|
||||||||||||
Cost
of services sold
|
6,005
|
4,936
|
6,117
|
5,032
|
-
|
-
|
||||||||||||
Interest
and other financial charges
|
4,361
|
3,671
|
384
|
381
|
4,107
|
3,414
|
||||||||||||
Investment
contracts, insurance losses and
|
||||||||||||||||||
insurance
annuity benefits
|
749
|
827
|
-
|
-
|
805
|
866
|
||||||||||||
Provision
for losses on financing receivables
|
822
|
902
|
-
|
-
|
822
|
902
|
||||||||||||
Other
costs and expenses
|
9,037
|
8,848
|
3,396
|
3,311
|
5,723
|
5,690
|
||||||||||||
Minority
interest in net earnings of
|
||||||||||||||||||
consolidated
affiliates
|
238
|
216
|
163
|
186
|
75
|
30
|
||||||||||||
Total
costs and expenses
|
32,868
|
30,006
|
21,248
|
18,887
|
12,045
|
11,537
|
||||||||||||
Earnings
from continuing operations
|
||||||||||||||||||
before
income taxes
|
4,953
|
4,344
|
4,587
|
4,139
|
2,636
|
2,068
|
||||||||||||
Provision
for income taxes
|
(911
|
)
|
(784
|
)
|
(545
|
)
|
(579
|
)
|
(366
|
)
|
(205
|
)
|
||||||
Earnings
from continuing operations
|
4,042
|
3,560
|
4,042
|
3,560
|
2,270
|
1,863
|
||||||||||||
Earnings
from discontinued operations, net of taxes
|
263
|
405
|
263
|
405
|
263
|
405
|
||||||||||||
Net
earnings
|
$
|
4,305
|
$
|
3,965
|
$
|
4,305
|
$
|
3,965
|
$
|
2,533
|
$
|
2,268
|
||||||
Per-share
amounts
|
||||||||||||||||||
Per-share
amounts -
earnings from
|
||||||||||||||||||
continuing
operations
|
||||||||||||||||||
Diluted
earnings per share
|
$
|
0.39
|
$
|
0.33
|
||||||||||||||
Basic
earnings per share
|
$
|
0.39
|
$
|
0.34
|
||||||||||||||
Per-share
amounts -
net earnings
|
||||||||||||||||||
Diluted
earnings per share
|
$
|
0.41
|
$
|
0.37
|
||||||||||||||
Basic
earnings per share
|
$
|
0.41
|
$
|
0.37
|
||||||||||||||
Dividends
declared per share
|
$
|
0.25
|
$
|
0.22
|
Consolidated
|
GE
|
Financial
Services
(GECS)
|
||||||||||||||||
(In
millions; except share amounts)
|
3/31/06
|
12/31/05
|
3/31/06
|
12/31/05
|
3/31/06
|
12/31/05
|
||||||||||||
Cash
and equivalents
|
$
|
8,503
|
$
|
8,825
|
$
|
1,772
|
$
|
2,015
|
$
|
6,900
|
$
|
7,130
|
||||||
Investment
securities
|
45,100
|
42,148
|
596
|
461
|
44,512
|
41,710
|
||||||||||||
Current
receivables
|
12,558
|
14,851
|
12,764
|
15,058
|
-
|
-
|
||||||||||||
Inventories
|
11,364
|
10,474
|
11,203
|
10,315
|
161
|
159
|
||||||||||||
Financing
receivables -
net
|
286,834
|
287,639
|
-
|
-
|
286,834
|
287,639
|
||||||||||||
Other
GECS receivables
|
14,360
|
14,332
|
-
|
-
|
18,855
|
18,625
|
||||||||||||
Property,
plant and equipment (including
|
||||||||||||||||||
equipment
leased to others) -
net
|
67,684
|
67,528
|
16,370
|
16,504
|
51,314
|
51,024
|
||||||||||||
Investment
in GECS
|
-
|
-
|
49,254
|
50,815
|
-
|
-
|
||||||||||||
Intangible
assets -
net
|
82,955
|
81,630
|
59,141
|
57,839
|
23,814
|
23,791
|
||||||||||||
All
other assets
|
86,947
|
84,849
|
36,540
|
36,752
|
51,871
|
49,461
|
||||||||||||
Assets
of discontinued operations
|
58,512
|
61,066
|
-
|
-
|
58,512
|
61,066
|
||||||||||||
Total
assets
|
$
|
674,817
|
$
|
673,342
|
$
|
187,640
|
$
|
189,759
|
$
|
542,773
|
$
|
540,605
|
||||||
Short-term
borrowings
|
$
|
153,200
|
$
|
158,156
|
$
|
2,112
|
$
|
1,127
|
$
|
151,593
|
$
|
157,672
|
||||||
Accounts
payable, principally trade accounts
|
19,096
|
21,183
|
10,752
|
11,870
|
12,214
|
13,043
|
||||||||||||
Progress
collections and price adjustments accrued
|
4,354
|
4,456
|
4,354
|
4,456
|
-
|
-
|
||||||||||||
Other
GE current liabilities
|
21,181
|
21,042
|
21,199
|
21,059
|
-
|
-
|
||||||||||||
Long-term
borrowings
|
222,970
|
212,281
|
9,085
|
9,081
|
215,086
|
204,397
|
||||||||||||
Investment
contracts, insurance liabilities
|
||||||||||||||||||
and
insurance annuity benefits
|
33,386
|
33,097
|
-
|
-
|
33,811
|
33,387
|
||||||||||||
All
other liabilities
|
38,661
|
39,966
|
23,020
|
23,273
|
15,738
|
16,787
|
||||||||||||
Deferred
income taxes
|
16,862
|
16,226
|
3,775
|
3,733
|
13,087
|
12,493
|
||||||||||||
Liabilities
of discontinued operations
|
49,476
|
49,527
|
-
|
-
|
49,702
|
49,763
|
||||||||||||
Total
liabilities
|
559,186
|
555,934
|
74,297
|
74,599
|
491,231
|
487,542
|
||||||||||||
Minority
interest in equity of consolidated affiliates
|
8,143
|
8,054
|
5,855
|
5,806
|
2,288
|
2,248
|
||||||||||||
Common
stock (10,398,398,000 and 10,484,268,000
|
||||||||||||||||||
shares
outstanding at March 31, 2006 and
|
||||||||||||||||||
December
31, 2005, respectively)
|
669
|
669
|
669
|
669
|
1
|
1
|
||||||||||||
Accumulated
gains (losses) -
net
|
||||||||||||||||||
Investment
securities
|
1,159
|
1,831
|
1,159
|
1,831
|
1,049
|
1,754
|
||||||||||||
Currency
translation adjustments
|
2,272
|
2,532
|
2,272
|
2,532
|
2,007
|
2,287
|
||||||||||||
Cash
flow hedges
|
(549
|
)
|
(822
|
)
|
(549
|
)
|
(822
|
)
|
(507
|
)
|
(813
|
)
|
||||||
Minimum
pension liabilities
|
(889
|
)
|
(874
|
)
|
(889
|
)
|
(874
|
)
|
(189
|
)
|
(179
|
)
|
||||||
Other
capital
|
25,362
|
25,227
|
25,362
|
25,227
|
12,525
|
12,386
|
||||||||||||
Retained
earnings
|
99,808
|
98,117
|
99,808
|
98,117
|
34,368
|
35,379
|
||||||||||||
Less
common stock held in treasury
|
(20,344
|
)
|
(17,326
|
)
|
(20,344
|
)
|
(17,326
|
)
|
-
|
-
|
||||||||
Total
shareowners’ equity
|
107,488
|
109,354
|
107,488
|
109,354
|
49,254
|
50,815
|
||||||||||||
Total
liabilities and equity
|
$
|
674,817
|
$
|
673,342
|
$
|
187,640
|
$
|
189,759
|
$
|
542,773
|
$
|
540,605
|
Three
months ended March 31 (Unaudited)
|
||||||||||||||||||
Consolidated
|
GE
|
Financial
Services
(GECS)
|
||||||||||||||||
(In
millions)
|
2006
|
2005
|
2006
|
2005
|
2006
|
2005
|
||||||||||||
Cash
flows -
operating activities
|
||||||||||||||||||
Net
earnings
|
$
|
4,305
|
$
|
3,965
|
$
|
4,305
|
$
|
3,965
|
$
|
2,533
|
$
|
2,268
|
||||||
Earnings
from discontinued operations
|
(263
|
)
|
(405
|
)
|
-
|
-
|
(263
|
)
|
(405
|
)
|
||||||||
Adjustments
to reconcile net earnings to cash
|
||||||||||||||||||
provided
from operating activities
|
||||||||||||||||||
Depreciation
and amortization of property,
|
||||||||||||||||||
plant
and equipment
|
2,132
|
2,280
|
633
|
643
|
1,499
|
1,637
|
||||||||||||
Earnings
retained by GECS
|
-
|
-
|
871
|
(2,044
|
)
|
-
|
-
|
|||||||||||
Deferred
income taxes
|
311
|
(168
|
)
|
73
|
(1
|
)
|
238
|
(167
|
)
|
|||||||||
Decrease
in GE current receivables
|
2,472
|
1,315
|
2,472
|
1,387
|
-
|
-
|
||||||||||||
Increase
in inventories
|
(878
|
)
|
(678
|
)
|
(876
|
)
|
(671
|
)
|
(2
|
)
|
(7
|
)
|
||||||
Decrease
in accounts payable
|
(1,286
|
)
|
(1,583
|
)
|
(683
|
)
|
(1,032
|
)
|
(462
|
)
|
(850
|
)
|
||||||
Decrease
in GE progress collections
|
(108
|
)
|
(102
|
)
|
(108
|
)
|
(102
|
)
|
-
|
-
|
||||||||
Provision
for losses on GECS financing receivables
|
822
|
902
|
-
|
-
|
822
|
902
|
||||||||||||
All
other operating activities
|
(2,089
|
)
|
2,188
|
25
|
745
|
(1,104
|
)
|
1,708
|
||||||||||
Cash
from operating activities -
continuing operations
|
5,418
|
7,714
|
6,712
|
2,890
|
3,261
|
5,086
|
||||||||||||
Cash
from operating activities -
discontinued operations
|
91
|
1,210
|
-
|
-
|
91
|
1,210
|
||||||||||||
Cash
from operating activities
|
5,509
|
8,924
|
6,712
|
2,890
|
3,352
|
6,296
|
||||||||||||
Cash
flows -
investing activities
|
||||||||||||||||||
Additions
to property, plant and equipment
|
(2,984
|
)
|
(2,934
|
)
|
(853
|
)
|
(412
|
)
|
(2,131
|
)
|
(2,522
|
)
|
||||||
Dispositions
of property, plant and equipment
|
1,158
|
1,811
|
-
|
-
|
1,113
|
1,814
|
||||||||||||
Net
decrease (increase) in GECS financing receivables
|
(3,063
|
)
|
750
|
-
|
-
|
(3,063
|
)
|
750
|
||||||||||
Payments
for principal businesses purchased
|
(2,075
|
)
|
(7,300
|
)
|
(1,651
|
)
|
(2,669
|
)
|
(424
|
)
|
(4,631
|
)
|
||||||
All
other investing activities
|
(199
|
)
|
866
|
346
|
586
|
(1,481
|
)
|
156
|
||||||||||
Cash
used for investing activities -
continuing operations
|
(7,163
|
)
|
(6,807
|
)
|
(2,158
|
)
|
(2,495
|
)
|
(5,986
|
)
|
(4,433
|
)
|
||||||
Cash
from (used for) investing activities -
discontinued operations
|
800
|
(359
|
)
|
-
|
-
|
800
|
(359
|
)
|
||||||||||
Cash
used for investing activities
|
(6,363
|
)
|
(7,166
|
)
|
(2,158
|
)
|
(2,495
|
)
|
(5,186
|
)
|
(4,792
|
)
|
||||||
Cash
flows -
financing activities
|
||||||||||||||||||
Net
increase (decrease) in borrowings (maturities of 90 days or less)
|
(1,498
|
)
|
(3,270
|
)
|
1,054
|
503
|
(2,876
|
)
|
(3,675
|
)
|
||||||||
Newly
issued debt (maturities longer than 90 days)
|
24,623
|
23,722
|
43
|
14
|
24,583
|
23,677
|
||||||||||||
Repayments
and other reductions (maturities longer than 90 days)
|
(16,103
|
)
|
(21,219
|
)
|
(122
|
)
|
(342
|
)
|
(15,981
|
)
|
(20,877
|
)
|
||||||
Net
dispositions (purchases) of GE treasury shares
|
(3,141
|
)
|
121
|
(3,141
|
)
|
121
|
-
|
-
|
||||||||||
Dividends
paid to shareowners
|
(2,631
|
)
|
(2,336
|
)
|
(2,631
|
)
|
(2,336
|
)
|
(3,404
|
)
|
(224
|
)
|
||||||
All
other financing activities
|
173
|
(592
|
)
|
-
|
-
|
173
|
(592
|
)
|
||||||||||
Cash
from (used for) financing activities -
continuing operations
|
1,423
|
(3,574
|
)
|
(4,797
|
)
|
(2,040
|
)
|
2,495
|
(1,691
|
)
|
||||||||
Cash
used for financing activities -
discontinued operations
|
(249
|
)
|
(613
|
)
|
-
|
-
|
(249
|
)
|
(613
|
)
|
||||||||
Cash
from (used for) financing activities
|
1,174
|
(4,187
|
)
|
(4,797
|
)
|
(2,040
|
)
|
2,246
|
(2,304
|
)
|
||||||||
Increase
(decrease) in cash and equivalents
|
320
|
(2,429
|
)
|
(243
|
)
|
(1,645
|
)
|
412
|
(800
|
)
|
||||||||
Cash
and equivalents at beginning of year
|
11,801
|
15,328
|
2,015
|
3,155
|
10,106
|
12,367
|
||||||||||||
Cash
and equivalents at March 31
|
12,121
|
12,899
|
1,772
|
1,510
|
10,518
|
11,567
|
||||||||||||
Less
cash and equivalents of discontinued operations at March
31
|
3,618
|
3,504
|
-
|
-
|
3,618
|
3,504
|
||||||||||||
Cash
and equivalents of continuing operations at March 31
|
$
|
8,503
|
$
|
9,395
|
$
|
1,772
|
$
|
1,510
|
$
|
6,900
|
$
|
8,063
|
Three
months ended
March
31 (Unaudited)
|
||||||
(In
millions)
|
2006
|
2005
|
||||
Revenues
|
||||||
Infrastructure
|
$
|
10,152
|
$
|
9,374
|
||
Industrial
|
8,140
|
7,668
|
||||
Healthcare
|
3,659
|
3,321
|
||||
NBC
Universal
|
4,482
|
3,601
|
||||
Commercial
Finance
|
5,484
|
5,072
|
||||
Consumer
Finance
|
5,090
|
4,689
|
||||
Total
segment revenues
|
37,007
|
33,725
|
||||
Corporate
items and eliminations
|
814
|
625
|
||||
Consolidated
revenues
|
$
|
37,821
|
$
|
34,350
|
||
Segment
profit (a)
|
||||||
Infrastructure
|
$
|
1,703
|
$
|
1,540
|
||
Industrial
|
600
|
526
|
||||
Healthcare
|
496
|
409
|
||||
NBC
Universal
|
654
|
709
|
||||
Commercial
Finance
|
1,174
|
926
|
||||
Consumer
Finance
|
836
|
735
|
||||
Total
segment profit
|
5,463
|
4,845
|
||||
Corporate
items and eliminations
|
(492
|
)
|
(325
|
)
|
||
GE
interest and other financial charges
|
(384
|
)
|
(381
|
)
|
||
GE
provision for income taxes
|
(545
|
)
|
(579
|
)
|
||
Earnings
from continuing operations
|
4,042
|
3,560
|
||||
Earnings
from discontinued operations, net of taxes
|
263
|
405
|
||||
Consolidated
net earnings
|
$
|
4,305
|
$
|
3,965
|
||
(a)
|
Segment
profit always excludes the effects of principal pension plans,
results
reported as discontinued operations and accounting changes, and
may
exclude matters such as charges for restructuring; rationalization
and
other similar expenses; in-process research and development and
certain
other acquisition-related charges and balances; technology development
costs; certain gains and losses from dispositions; and litigation
settlements or other charges, responsibility for which preceded
the
current management team. Segment profit excludes or includes interest
and
other financial charges and income taxes according to how a particular
segment’s management is measured -
excluded in determining segment profit, which we refer to as “operating
profit,” for Healthcare, NBC Universal and the industrial businesses of
the Infrastructure and Industrial segments; included in determining
segment profit, which we refer to as “net earnings,” for Commercial
Finance, Consumer Finance, and the financial services businesses
of the
Infrastructure segment (Aviation Financial Services, Energy Financial
Services and Transportation Finance) and the Industrial segment
(Equipment
Services).
|
Three
months ended
March
31
|
||||||
(In
millions)
|
2006
|
2005
|
||||
Discontinued
operations before disposal
|
||||||
Revenues
from services
|
$
|
2,345
|
$
|
5,213
|
||
Earnings
from discontinued operations before
|
||||||
minority
interest and income taxes
|
$
|
179
|
$
|
698
|
||
Minority
interest
|
-
|
99
|
||||
Earnings
from discontinued operations before income taxes
|
179
|
599
|
||||
Income
tax expense
|
(41
|
)
|
(280
|
)
|
||
Earnings
from discontinued operations before disposal, net of taxes
|
$
|
138
|
$
|
319
|
||
Disposal
|
||||||
Gain
on disposal before income taxes
|
$
|
306
|
$
|
156
|
||
Income
tax expense
|
(181
|
)
|
(70
|
)
|
||
Gain
on disposal, net of taxes
|
$
|
125
|
$
|
86
|
||
Earnings
from discontinued operations, net of taxes
|
$
|
263
|
$
|
405
|
At
|
||||||
(In
millions)
|
3/31/06
|
12/31/05
|
||||
Assets
|
||||||
Cash
and equivalents
|
$
|
3,618
|
$
|
2,976
|
||
Investment
securities
|
35,023
|
37,633
|
||||
Other
GECS receivables
|
13,333
|
13,915
|
||||
Other
|
6,538
|
6,542
|
||||
Assets
of discontinued operations
|
58,512
|
61,066
|
||||
Eliminations
|
-
|
-
|
||||
Total
|
$
|
58,512
|
$
|
61,066
|
||
Liabilities
and equity
|
||||||
Investment
contracts, insurance liabilities and
|
||||||
insurance
annuity benefits
|
$
|
43,525
|
$
|
43,378
|
||
Other
|
6,177
|
6,385
|
||||
Liabilities
of discontinued operations
|
49,702
|
49,763
|
||||
Eliminations
|
(226
|
)
|
(236
|
)
|
||
Total
|
$
|
49,476
|
$
|
49,527
|
||
Total
accumulated nonowner changes other than earnings
|
$
|
65
|
$
|
652
|
Three
months ended
March
31
|
||||||
(In
millions)
|
2006
|
2005
|
||||
Interest
on loans
|
$
|
5,342
|
$
|
4,863
|
||
Operating
lease rentals
|
2,915
|
2,757
|
||||
Investment
income
|
660
|
655
|
||||
Fees
|
1,007
|
847
|
||||
Financing
leases
|
1,002
|
1,033
|
||||
Premiums
earned by insurance activities
|
491
|
553
|
||||
Other
income
|
2,709
|
2,223
|
||||
Total
|
$
|
14,126
|
$
|
12,931
|
Principal
Pension
Plans
|
Other
Pension
Plans
|
|||||||||||
Three
months ended
March
31
|
Three
months ended
March
31
|
|||||||||||
(In
millions)
|
2006
|
2005
|
2006
|
2005
|
||||||||
Expected
return on plan assets
|
$
|
(952
|
)
|
$
|
(970
|
)
|
$
|
(98
|
)
|
$
|
(88
|
)
|
Service
cost for benefits earned
|
366
|
325
|
83
|
73
|
||||||||
Interest
cost on benefit obligation
|
579
|
557
|
93
|
90
|
||||||||
Prior
service cost
|
58
|
62
|
1
|
2
|
||||||||
Net
actuarial loss recognized
|
188
|
81
|
39
|
31
|
||||||||
Cost
of pension plans
|
$
|
239
|
$
|
55
|
$
|
118
|
$
|
108
|
Principal
Retiree
Health and
Life
Insurance Plans
|
||||||
Three
months ended
March
31
|
||||||
(In
millions)
|
2006
|
2005
|
||||
Expected
return on plan assets
|
$
|
(32
|
)
|
$
|
(34
|
)
|
Service
cost for benefits earned
|
54
|
53
|
||||
Interest
cost on benefit obligation
|
114
|
126
|
||||
Prior
service cost
|
74
|
75
|
||||
Net
actuarial loss recognized
|
18
|
18
|
||||
Cost
of principal retiree benefit plans
|
$
|
228
|
$
|
238
|
Three
months ended March 31
|
||||||||||||
2006
|
2005
|
|||||||||||
(In
millions; per-share amounts in dollars)
|
Diluted
|
Basic
|
Diluted
|
Basic
|
||||||||
Consolidated
|
||||||||||||
Earnings
from continuing operations for
|
||||||||||||
per-share
calculation(a)
|
$
|
4,042
|
$
|
4,042
|
$
|
3,560
|
$
|
3,560
|
||||
Earnings
from discontinued operations
|
||||||||||||
for
per-share calculation(b)
|
263
|
263
|
403
|
405
|
||||||||
Net
earnings available for per-share calculation
|
$
|
4,305
|
$
|
4,305
|
$
|
3,963
|
$
|
3,965
|
||||
Average
equivalent shares
|
||||||||||||
Shares
of GE common stock outstanding
|
10,442
|
10,442
|
10,597
|
10,597
|
||||||||
Employee
compensation-related shares,
|
||||||||||||
including
stock options
|
38
|
-
|
44
|
-
|
||||||||
Total
average equivalent shares
|
10,480
|
10,442
|
10,641
|
10,597
|
||||||||
Per-share
amounts
|
||||||||||||
Earnings
from continuing operations
|
$
|
0.39
|
$
|
0.39
|
$
|
0.33
|
$
|
0.34
|
||||
Earnings
from discontinued operations
|
$
|
0.03
|
$
|
0.03
|
$
|
0.04
|
$
|
0.04
|
||||
Net
earnings
|
$
|
0.41
|
$
|
0.41
|
$
|
0.37
|
$
|
0.37
|
||||
(a)
|
Including
dividend equivalents.
|
(b)
|
Including
dilutive effects of subsidiary-issued stock-based
awards.
|
At
|
||||||
(In
millions)
|
3/31/06
|
12/31/05
|
||||
Raw
materials and work in process
|
$
|
6,176
|
$
|
5,527
|
||
Finished
goods
|
5,561
|
5,311
|
||||
Unbilled
shipments
|
280
|
333
|
||||
12,017
|
11,171
|
|||||
Less
revaluation to LIFO
|
(653
|
)
|
(697
|
)
|
||
Total
|
$
|
11,364
|
$
|
10,474
|
At
|
||||||
(In
millions)
|
3/31/06
|
12/31/05
|
||||
Loans,
net of deferred income
|
$
|
227,528
|
$
|
227,923
|
||
Investment
in financing leases, net of deferred income
|
63,810
|
64,309
|
||||
291,338
|
292,232
|
|||||
Less
allowance for losses
|
(4,504
|
)
|
(4,593
|
)
|
||
Financing
receivables -
net
|
$
|
286,834
|
$
|
287,639
|
At
|
||||||
(In
millions)
|
3/31/06
|
12/31/05
|
||||
Loans,
net of deferred income
|
$
|
14,755
|
$
|
15,868
|
||
Investment
in financing leases, net of deferred income
|
131
|
769
|
||||
14,886
|
16,637
|
|||||
Less
allowance for losses
|
(22
|
)
|
(22
|
)
|
||
Financing
receivables -
net
|
$
|
14,864
|
$
|
16,615
|
At
|
||||||
(In
millions)
|
3/31/06
|
12/31/05
|
||||
Original
cost
|
$
|
112,457
|
$
|
111,733
|
||
Less
accumulated depreciation and amortization
|
(44,773
|
)
|
(44,205
|
)
|
||
Property,
plant and equipment -
net
|
$
|
67,684
|
$
|
67,528
|
At
|
||||||
(In
millions)
|
3/31/06
|
12/31/05
|
||||
Goodwill
|
$
|
71,002
|
$
|
69,611
|
||
Intangible
assets subject to amortization
|
9,841
|
9,932
|
||||
Indefinite-lived
intangible assets(a)
|
2,112
|
2,087
|
||||
Total
|
$
|
82,955
|
$
|
81,630
|
||
(a)
|
Indefinite-lived
intangible assets principally comprised trademarks, tradenames
and U.S.
Federal Communications Commission licenses.
|
(In
millions)
|
Balance
1/1/06
|
Acquisitions/
purchase
accounting
adjustments
|
Currency
exchange
and
other
|
Balance
3/31/06
|
||||||||||||
Infrastructure
|
$
|
10,166
|
$
|
163
|
$
|
(14
|
)
|
$
|
10,315
|
|||||||
Industrial
|
8,702
|
95
|
7
|
8,804
|
||||||||||||
Healthcare
|
13,404
|
1,081
|
4
|
14,489
|
||||||||||||
NBC
Universal
|
17,534
|
10
|
-
|
17,544
|
||||||||||||
Commercial
Finance
|
10,621
|
85
|
(11
|
)
|
10,695
|
|||||||||||
Consumer
Finance
|
9,184
|
53
|
(82
|
)
|
9,155
|
|||||||||||
Total
|
$
|
69,611
|
$
|
1,487
|
$
|
(96
|
)
|
$
|
71,002
|
At
|
||||||||||||||||||||||
3/31/06
|
12/31/05
|
|||||||||||||||||||||
(In
millions)
|
Gross
carrying
amount
|
Accumulated
amortization
|
Net
|
Gross
carrying
amount
|
Accumulated
amortization
|
Net
|
||||||||||||||||
Patents,
licenses and trademarks
|
$
|
5,237
|
$
|
(1,484
|
)
|
$
|
3,753
|
$
|
5,311
|
$
|
(1,406
|
)
|
$
|
3,905
|
||||||||
Capitalized
software
|
5,738
|
(3,230
|
)
|
2,508
|
5,586
|
(3,059
|
)
|
2,527
|
||||||||||||||
All
other
|
4,911
|
(1,331
|
)
|
3,580
|
4,737
|
(1,237
|
)
|
3,500
|
||||||||||||||
Total
|
$
|
15,886
|
$
|
(6,045
|
)
|
$
|
9,841
|
$
|
15,634
|
$
|
(5,702
|
)
|
$
|
9,932
|
At
|
||||||
(In
millions)
|
3/31/06
|
12/31/05
|
||||
Short-term
borrowings
|
||||||
Commercial
paper
|
||||||
U.S.
|
||||||
Unsecured
|
$
|
61,724
|
$
|
67,643
|
||
Asset-backed(a)
|
8,157
|
9,267
|
||||
Non-U.S.
|
24,870
|
20,456
|
||||
Current
portion of long-term debt(b)(c)
|
38,693
|
41,792
|
||||
Other
|
18,149
|
18,514
|
||||
Total
|
151,593
|
157,672
|
||||
Long-term
borrowings
|
||||||
Senior
notes
|
||||||
Unsecured
|
192,239
|
180,546
|
||||
Asset-backed(d)
|
5,899
|
6,845
|
||||
Extendible
notes(e)
|
13,984
|
14,022
|
||||
Subordinated
notes(f)
|
2,964
|
2,984
|
||||
Total
|
215,086
|
204,397
|
||||
Total
borrowings
|
$
|
366,679
|
$
|
362,069
|
||
(a)
|
Entirely
obligations of consolidated, liquidating securitization entities.
See note
14.
|
(b)
|
Included
short-term borrowings by consolidated, liquidating securitization
entities
of $732 million and $697 million at March 31, 2006 and December
31, 2005,
respectively. See note 14.
|
(c)
|
Included
$250 million of subordinated notes guaranteed by GE at both March
31,
2006, and December 31, 2005.
|
(d)
|
Asset-backed
senior notes were all issued by consolidated, liquidating securitization
entities. See note 14.
|
(e)
|
Included
$38 million of obligations of consolidated, liquidating securitization
entities at December 31, 2005. See note 14.
|
(f)
|
Included
$750 million of subordinated notes guaranteed by GE at both March
31,
2006, and December 31, 2005.
|
Three
months ended
March
31
|
||||||
(In
millions)
|
2006
|
2005
|
||||
Net
earnings
|
$
|
4,305
|
$
|
3,965
|
||
Investment
securities -
net
|
(672
|
)
|
(820
|
)
|
||
Currency
translation adjustments -
net
|
(260
|
)
|
61
|
|||
Cash
flow hedges -
net
|
273
|
629
|
||||
Minimum
pension liabilities -
net
|
(15
|
)
|
13
|
|||
Total
|
$
|
3,631
|
$
|
3,848
|
Three
months ended
March
31
|
||||||
(In
millions; per-share amounts in dollars)
|
2006
|
2005
|
||||
Net
earnings, as reported
|
$
|
4,305
|
$
|
3,965
|
||
Earnings
per share, as reported
|
||||||
Diluted
|
0.41
|
0.37
|
||||
Basic
|
0.41
|
0.37
|
||||
Stock
option expense included in net earnings
|
25
|
37
|
||||
Total
stock option expense
|
25
|
64
|
(a)
|
|||
Pro-forma
effects
|
||||||
Net
earnings, on pro-forma basis
|
3,938
|
|||||
Earnings
per share, on pro-forma basis
|
||||||
Diluted
|
0.37
|
|||||
Basic
|
0.37
|
|||||
Other
share-based compensation expense recognized in net earnings was
$26
million and $30 million for the three months ended March 31, 2006
and
2005, respectively. The total income tax benefit recognized in
earnings
for all share-based compensation arrangements was $27 million and
$31
million for the three months ended March 31, 2006 and 2005,
respectively.
|
|
(a)
|
As
if we applied SFAS 123R to expense stock options in all periods.
Included
amounts we actually recognized in earnings.
|
Shares
(in
thousands)
|
Weighted-
Average
Exercise
Price
|
Weighted-
Average
Remaining
Contractual
Term
(in
years)
|
Aggregate
Intrinsic
Value
(in
millions)
|
|||||||||||||||
Outstanding
at January 1, 2006
|
259,116
|
$
|
33.07
|
|||||||||||||||
Granted
|
146
|
33.28
|
||||||||||||||||
Exercised
|
(4,490
|
)
|
16.56
|
|||||||||||||||
Forfeited
|
(927
|
)
|
31.83
|
|||||||||||||||
Expired
|
(1,465
|
)
|
41.30
|
|||||||||||||||
Outstanding
at March 31, 2006
|
252,380
|
$
|
33.32
|
4.6
|
$
|
1,213
|
||||||||||||
Exercisable
at March 31, 2006
|
197,673
|
$
|
33.71
|
3.8
|
$
|
1,048
|
||||||||||||
Options
expected to vest
|
50,624
|
$
|
31.69
|
7.6
|
$
|
161
|
Shares
(in
thousands)
|
Weighted-
Average
Remaining
Contractual
Term
(in
years)
|
Aggregate
Intrinsic
Value
(in
millions)
|
||||||||||||
Outstanding
at January 1, 2006
|
33,078
|
|||||||||||||
Granted
|
146
|
|||||||||||||
Vested
|
(379
|
)
|
||||||||||||
Forfeited
|
(569
|
)
|
||||||||||||
Outstanding
at March 31, 2006
|
32,276
|
6.1
|
$
|
1,123
|
||||||||||
RSUs
expected to vest
|
28,907
|
5.6
|
$
|
1,005
|
At
|
||||||
(In
millions)
|
3/31/06
|
12/31/05
|
||||
Receivables
secured by:
|
||||||
Equipment
|
$
|
11,309
|
$
|
12,949
|
||
Commercial
real estate
|
12,355
|
13,010
|
||||
Residential
real estate
|
8,083
|
8,882
|
||||
Other
assets
|
13,079
|
12,869
|
||||
Credit
card receivables
|
10,973
|
10,039
|
||||
GE
trade receivables
|
4,037
|
3,960
|
||||
Total
securitized assets
|
$
|
59,836
|
$
|
61,709
|
At
|
||||||
(In
millions)
|
3/31/06
|
12/31/05
|
||||
Off-balance
sheet(a)(b)
|
$
|
43,983
|
$
|
43,805
|
||
On-balance
sheet(c)
|
15,853
|
17,904
|
||||
Total
securitized assets
|
$
|
59,836
|
$
|
61,709
|
||
(a)
|
At
March 31, 2006 and December 31, 2005, liquidity support amounted
to $2,159
million and $1,931 million, respectively. These amounts are net
of $3,424
million and $3,786 million, respectively, participated or deferred
beyond
one year. Credit support amounted to $5,648 million and $5,988
million at
March 31, 2006 and December 31, 2005, respectively.
|
(b)
|
Liabilities
for recourse obligations related to off-balance sheet assets were
$63
million and $93 million at March 31, 2006 and December 31, 2005,
respectively.
|
(c)
|
At
March 31, 2006 and December 31, 2005, liquidity support amounted
to $8,768
million and $10,044 million, respectively. These amounts are net
of $34
million and $138 million, respectively, participated or deferred
beyond
one year. Credit support amounted to $3,893 million and $4,780
million at
March 31, 2006 and December 31, 2005, respectively.
|
At
|
||||||
(In
millions)
|
3/31/06
|
12/31/05
|
||||
Financing
receivables - net (note 8)
|
$
|
14,864
|
$
|
16,615
|
||
All
other assets
|
989
|
1,289
|
||||
Total
|
$
|
15,853
|
$
|
17,904
|
Three
months ended
March
31
|
|||||||||
(In
millions)
|
2006
|
2005
|
|||||||
Revenues
|
$
|
10,152
|
$
|
9,374
|
|||||
Segment
profit
|
$
|
1,703
|
$
|
1,540
|
|||||
Revenues
|
|||||||||
Aviation
|
$
|
3,041
|
$
|
2,590
|
|||||
Aviation
Financial Services
|
934
|
817
|
|||||||
Energy
|
3,835
|
3,951
|
|||||||
Energy
Financial Services
|
301
|
228
|
|||||||
Oil
& Gas
|
772
|
641
|
|||||||
Transportation
|
1,023
|
756
|
|||||||
Segment
profit
|
|||||||||
Aviation
|
$
|
645
|
$
|
527
|
|||||
Aviation
Financial Services
|
206
|
163
|
|||||||
Energy
|
436
|
577
|
|||||||
Energy
Financial Services
|
117
|
94
|
|||||||
Oil
& Gas
|
55
|
27
|
|||||||
Transportation
|
204
|
82
|
Three
months ended
March
31
|
|||||||||
(In
millions)
|
2006
|
2005
|
|||||||
Revenues
|
$
|
8,140
|
$
|
7,668
|
|||||
Segment
profit
|
$
|
600
|
$
|
526
|
|||||
Revenues
|
|||||||||
Consumer
& Industrial
|
$
|
3,534
|
$
|
3,261
|
|||||
Equipment
Services
|
1,634
|
1,574
|
|||||||
Plastics
|
1,644
|
1,648
|
|||||||
Segment
profit
|
|||||||||
Consumer
& Industrial
|
$
|
220
|
$
|
165
|
|||||
Equipment
Services
|
16
|
10
|
|||||||
Plastics
|
225
|
240
|
Three
months ended
March
31
|
|||||||||
(In
millions)
|
2006
|
2005
|
|||||||
Revenues
|
$
|
5,484
|
$
|
5,072
|
|||||
Segment
profit
|
$
|
1,174
|
$
|
926
|
|||||
At
|
|||||||||
(In
millions)
|
3/31/06
|
3/31/05
|
12/31/05
|
||||||
Total
assets
|
$
|
195,209
|
$
|
187,626
|
$
|
190,546
|
|||
Three
months ended
March
31
|
|||||||||
(In
millions)
|
2006
|
2005
|
|||||||
Revenues
|
|||||||||
Capital
Solutions
|
$
|
2,820
|
$
|
2,889
|
|||||
Real
Estate
|
1,075
|
898
|
|||||||
Segment
profit
|
|||||||||
Capital
Solutions
|
$
|
339
|
$
|
286
|
|||||
Real
Estate
|
441
|
310
|
|||||||
At
|
|||||||||
(In
millions)
|
3/31/06
|