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Notes to Consolidated Financial Statements Note 15: Property, Plant and Equipment

December 31 (Dollars in millions) Estimated useful lives-new (years)   2004   2003  
ORIGINAL COST                  
GE                  
Land and improvements   8  (a) $ 1,274   $ 861  
Buildings, structures and related equipment   8–40     9,168     8,369  
Machinery and equipment   4–20     25,775     24,184  
Leasehold costs and manufacturing plant under construction   1–10     2,930     2,228  
          39,147     35,642  
GECS(b)                  
Buildings and equipment   1–40     6,167     4,792  
Equipment leased to others                  
Aircraft   20     26,837     23,069  
Vehicles   4–14     23,056     16,600  
Railroad rolling stock   9–30     3,390     3,356  
Mobile and modular space   12–20     2,965     3,164  
Construction and manufacturing   3–25     1,772     1,563  
All other   3–33     3,021     3,026  
          67,208     55,570  
Total       $ 106,355   $ 91,212  
NET CARRYING VALUE                  
GE                  
Land and improvements       $ 1,176   $ 814  
Buildings, structures and related equipment         3,956     4,332  
Machinery and equipment         8,955     7,547  
Leasehold costs and manufacturing plant under construction         2,669     1,873  
          16,756     14,566  
GECS(b)                  
Buildings and equipment         3,526     2,827  
Equipment leased to others                  
Aircraft(c)         21,991     19,097  
Vehicles         14,062     9,745  
Railroad rolling stock         2,193     2,220  
Mobile and modular space         1,636     1,814  
Construction and manufacturing         1,157     1,121  
All other         2,013     1,998  
          46,578     38,822  
Total       $ 63,334   $ 53,388  
(a) Estimated useful lives exclude land.
(b) Included $2.2 billion and $2.1 billion of original cost of assets leased to GE with accumulated amortization of $0.4 billion and $0.3 billion at December 31, 2004 and 2003, respectively.
(c) Commercial Finance recognized impairment losses of $0.1 billion in 2004 and $0.2 billion in 2003 recorded in the caption “Other costs and expenses” in the Statement of Earnings to reflect adjustments to fair value based on current market values from independent appraisers.

Amortization of GECS equipment leased to others was $5,365 million, $4,224 million and $3,919 million in 2004, 2003 and 2002, respectively. Noncancelable future rentals due from customers for equipment on operating leases at December 31, 2004, are due as follows:

(In millions)      
Due in      
2005 $ 7,001  
2006   5,537  
2007   4,155  
2008   2,971  
2009   2,056  
2010 and later   6,272  
Total $ 27,992  

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