The facing page is divided into three sections: upper portion — consolidated data; middle portion — GE data that reflect various conventional measurements for such enterprises; and lower portion — GECS data that reflect key information pertinent to financial services businesses.

GE’s total research and development expenditures were $3.7 billion in 2006, compared with $3.4 billion and $3.1 billion in 2005 and 2004, respectively. In 2006, expenditures from GE’s own funds were $3.0 billion compared with $2.7 billion in 2005. Expenditures funded by customers (mainly the U.S. government) were $0.7 billion in both 2006 and 2005.

Expenditures reported above reflect the definition of research and development required by U.S. generally accepted accounting principles. For operating and management purposes, we consider amounts spent on product and services technology to include our reported research and development expenditures, but also amounts for improving our existing products and services, and the productivity of our plant, equipment and processes. On this basis, our technology expenditures in 2006 were $5.7 billion.

GE’s total backlog of firm unfilled orders at the end of 2006 was $46.5 billion, an increase of 29% from year-end 2005, reflecting increased demand at Infrastructure. Of the total backlog, $32.2 billion related to products, of which 63% was scheduled for delivery in 2007. Product services orders, included in this reported backlog for only the succeeding 12 months, were $14.3 billion at the end of 2006. Orders constituting this backlog may be cancelled or deferred by customers, subject in certain cases to penalties. See the Segment Operations section for further information.

(Dollars in millions; per-share amounts in dollars)		2006			2005			2004			2003			2002
GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
Revenues		$ 163,391			$ 147,956			$ 134,291			$ 113,421			$ 111,967
Earnings from continuing operations before accounting changes		20,666			18,661			16,601			14,091			14,629
Earnings (loss) from discontinued operations, net of taxes		163			(1,950	)		559			2,057			(616	)
Earnings before accounting changes		20,829			16,711			17,160			16,148			14,013
Net earnings		20,829			16,711			17,160			15,561			12,998
Dividends declared		10,675			9,647			8,594			7,759			7,266
Return on average shareowners’ equity(a)		19.5	%		17.8	%		17.9	%		20.0	%		25.2%
Per share
Earnings from continuing operations before accounting changes — diluted		$ 1.99			$ 1.76			$ 1.59			$ 1.40			$ 1.46
Earnings (loss) from discontinued operations — diluted		0.02			(0.18	)		0.05			0.20			(0.06	)
Earnings before accounting changes — diluted		2.00			1.57			1.64			1.60			1.40
Net earnings — diluted		2.00			1.57			1.64			1.54			1.30
Earnings from continuing operations before accounting changes — basic		1.99			1.77			1.60			1.41			1.47
Earnings (loss) from discontinued operations — basic		0.02			(0.18	)		0.05			0.21			(0.06	)
Earnings before accounting changes — basic		2.01			1.58			1.65			1.61			1.41
Net earnings — basic		2.01			1.58			1.65			1.55			1.31
Dividends declared		1.03			0.91			0.82			0.77			0.73
Stock price range	38.49–32.06			37.34–32.67			37.75–28.88			32.42–21.30			41.84–21.40
Year-end closing stock price		37.21			35.05			36.50			30.98			24.35
Total assets of continuing operations		697,239			612,255			604,338			503,616			441,550
Total assets		697,239			673,321			750,617			647,834			575,018
Long-term borrowings		260,804			212,281			207,871			170,309			138,570
Shares outstanding — average (in thousands)	10,359,320			10,569,805			10,399,629			10,018,587			9,947,113
Shareowner accounts — average		624,000			634,000			658,000			670,000			655,000
Employees at year end
United States		155,000			161,000			165,000			155,000			161,000
Other countries		164,000			155,000			142,000			150,000			154,000
Total employees		319,000			316,000(b)			307,000			305,000			315,000
GE DATA
Short-term borrowings		$ 2,212			$ 1,127			$ 3,409			$ 2,555			$ 8,786
Long-term borrowings		9,085			9,081			7,625			8,388			970
Minority interest		5,623			5,806			7,701			1,079			1,028
Shareowners’ equity		112,314			109,351			110,908			79,662			63,979
Total capital invested		$ 129,234			$ 125,365			$ 129,643			$ 91,684			$ 74,763
Return on average total capital invested(a)		18.4	%		16.6	%		16.2	%		18.1	%		24.0%
Borrowings as a percentage of total capital invested(a)		8.7	%		8.1	%		9.0	%		11.9	%		13.0%
Working capital(a)		$ 7,566			$ 8,399			$ 8,328			$ 5,282			$ 3,821
GECS DATA
Revenues		$ 63,602			$ 57,551			$ 52,704			$ 43,513			$ 38,456
Earnings from continuing operations before accounting changes		10,495			9,527			8,169			6,256			4,122
Earnings (loss) from discontinued operations, net of taxes		163			(1,950	)		559			2,057			(616	)
Earnings before accounting changes		10,658			7,577			8,728			8,313			3,506
Net earnings		10,658			7,577			8,728			7,974			2,491
Shareowner’s equity		54,097			50,812			54,379			45,790			37,202
Total borrowings		426,279			362,069			355,501			316,593			267,014
Ratio of debt to equity at GE Capital		7.52:1			7.09:1			6.45:1			6.62:1			6.48:1
Total assets		$ 564,668			$ 540,584			$ 618,614			$ 554,877			$ 489,602

Transactions between GE and GECS have been eliminated from the consolidated information.
(a)	Indicates terms are defined in the Glossary.
(b)	Excludes employees of Genworth in 2005 as a result of the third quarter deconsolidation.

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