|
|
|
|
|
|
|
|
|
|
|
| December 31 (In millions) |
2006 |
|
2005 |
|
| GE |
|
|
|
|
|
|
| Goodwill |
|
|
|
|
|
|
| Intangible assets subject to amortization |
|
7,585 |
|
|
7,478 |
|
| Indefinite-lived intangible assets(a) |
|
2,295 |
|
|
2,087 |
|
| |
|
60,465 |
|
|
57,839 |
|
| GECS |
|
|
|
|
|
|
| Goodwill |
|
22,754 |
|
|
21,337 |
|
| Intangible assets subject to amortization |
|
3,214 |
|
|
2,454 |
|
| |
|
25,968 |
|
|
23,791 |
|
| Total |
|
|
|
|
|
|
Changes in goodwill balances follow.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2006 |
|
| (In millions) |
Balance January 1 |
|
Acquisitions/ purchase accounting adjustments |
|
Dispositions, currency exchange and other |
|
Balance December 31 |
|
| Infrastructure |
|
|
|
|
|
|
|
|
|
|
|
|
| Commercial Finance |
|
10,621 |
|
|
603 |
|
|
91 |
|
|
11,315 |
|
| GE Money |
|
9,184 |
|
|
309 |
|
|
352 |
|
|
9,845 |
|
| Healthcare |
|
13,404 |
|
|
1,396 |
|
|
48 |
|
|
14,848 |
|
| NBC Universal |
|
17,534 |
|
|
838 |
|
|
(372 |
) |
|
18,000 |
|
| Industrial |
|
8,702 |
|
|
550 |
|
|
(852 |
) |
|
8,400 |
|
| Total |
|
|
|
|
|
|
|
|
) |
|
|
|
| |
| |
|
2005 |
|
| (In millions) |
Balance January 1 |
|
Acquisitions/ purchase accounting adjustments |
|
Dispositions, currency exchange and other |
|
Balance December 31 |
|
| Infrastructure |
|
|
|
|
|
|
|
|
) |
|
|
|
| Commercial Finance |
|
10,141 |
|
|
766 |
|
|
(286 |
) |
|
10,621 |
|
| GE Money |
|
9,860 |
|
|
(24 |
) |
|
(652 |
) |
|
9,184 |
|
| Healthcare |
|
13,259 |
|
|
226 |
|
|
(81 |
) |
|
13,404 |
|
| NBC Universal |
|
16,672 |
|
|
946 |
|
|
(84 |
) |
|
17,534 |
|
| Industrial |
|
7,674 |
|
|
1,236 |
|
|
(208 |
) |
|
8,702 |
|
| Total |
|
|
|
|
|
|
|
|
) |
|
|
|
Goodwill balances increased $4,476 million in 2006 as a result of new acquisitions. The largest goodwill balance increases arose from acquisitions of IDX Systems Corporation ($1,133 million) and Biacore International AB ($308 million) by Healthcare, iVillage Inc. ($521 million) by NBC Universal, ZENON Environmental Inc. ($506 million) by Infrastructure, and Banque Artesia Nederland N.V., a subsidiary of Dexia Group ($340 million) and the custom fleet business of National Australia Bank Ltd. ($306 million) by Commercial Finance. Goodwill declined in 2006 as a result of the sale of Advanced Materials ($930 million) by Industrial and the sale of television stations ($304 million) by NBC Universal. The goodwill balance also declined by $190 million related to purchase accounting adjustments to prior-year acquisitions during 2006.
Goodwill balances increased $3,705 million in 2005 as a result of new acquisitions. The largest goodwill balance increases arose from acquisitions of Edwards Systems Technology ($996 million) by Industrial, Ionics, Inc. ($681 million) by Infrastructure, Antares Capital Corp. ($407 million) by Commercial Finance, an additional interest in MSNBC ($402 million) and the previously outstanding minority interest in Vivendi Universal Entertainment LLLP (VUE) ($329 million) by NBC Universal. Goodwill also increased by $215 million related to purchase accounting adjustments to prior-year acquisitions during 2005, primarily associated with the 2004 acquisition of Amersham by Healthcare and the combination of NBC and VUE.
Upon closing an acquisition, we estimate the fair values of assets and liabilities acquired and consolidate the acquisition as quickly as possible. Given the time it takes to obtain pertinent information to finalize the acquired company’s balance sheet (frequently with implications for the price of the acquisition), then to adjust the acquired company’s accounting policies, procedures, books and records to our standards, it is often several quarters before we are able to finalize those initial fair value estimates. Accordingly, it is not uncommon for our initial estimates to be subsequently revised.
Intangible assets Subject to Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| December 31 (In millions) |
Gross carrying amount |
|
Accumulated amortization |
|
Net |
|
| GE |
|
|
|
|
|
|
|
|
|
| 2006 |
|
|
|
|
|
|
|
|
|
| Patents, licenses and trademarks |
|
|
|
|
|
) |
|
|
|
| Capitalized software |
|
4,543 |
|
|
(2,741 |
) |
|
1,802 |
|
| All other |
|
2,859 |
|
|
(438 |
) |
|
2,421 |
|
| Total |
|
|
|
|
|
) |
|
|
|
| 2005 |
|
|
|
|
|
|
|
|
|
| Patents, licenses and trademarks |
|
|
|
|
|
) |
|
|
|
| Capitalized software |
|
4,109 |
|
|
(2,261 |
) |
|
1,848 |
|
| All other |
|
2,172 |
|
|
(222 |
) |
|
1,950 |
|
| Total |
|
|
|
|
|
) |
|
|
|
| GECS |
|
|
|
|
|
|
|
|
|
| 2006 |
|
|
|
|
|
|
|
|
|
| Patents, licenses and trademarks |
|
|
|
|
|
) |
|
|
|
| Capitalized software |
|
1,684 |
|
|
(981 |
) |
|
703 |
|
| All other |
|
3,591 |
|
|
(1,245 |
) |
|
2,346 |
|
| Total |
|
|
|
|
|
) |
|
|
|
| 2005 |
|
|
|
|
|
|
|
|
|
| Patents, licenses and trademarks |
|
|
|
|
|
) |
|
|
|
| Capitalized software |
|
1,477 |
|
|
(798 |
) |
|
679 |
|
| All other |
|
2,565 |
|
|
(1,015 |
) |
|
1,550 |
|
| Total |
|
|
|
|
|
) |
|
|
|
Consolidated amortization expense related to intangible assets subject to amortization was $1,789 million and $1,413 million for 2006 and 2005, respectively.
