Statement of Cash Flows
| General Electric Company and consolidated affiliates | GE | GECS | |||||||
|---|---|---|---|---|---|---|---|---|---|
| For the years ended December 31 (In millions) | 2007 | 2006 | 2005 | 2007 | 2006 | 2005 | 2007 | 2006 | 2005 |
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In the consolidating data on this page, “GE” means the basis of consolidation as described in note 1 to the consolidated financial statements; “GECS” means General Electric Capital Services, Inc. and all of its affiliates and associated companies. Transactions between GE and GECS have been eliminated from the “General Electric Company and consolidated affiliates” columns. |
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| CASH FLOWS — OPERATING ACTIVITIES |
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| Net earnings | $ 22,208 | $ 20,742 | $ 16,720 | $ 22,208 | $ 20,742 | $ 16,720 | $ 10,301 | $ 10,658 | $ 7,577 |
| Loss (earnings) from discontinued operations | 260 | (1,362) | 634 | 260 | (1,362) | 634 | 2,127 | (403) | 1,427 |
| Adjustments to reconcile net earnings to cash provided from operating activities |
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| Depreciation and amortization of property, plant and equipment | 10,278 | 8,459 | 7,841 | 2,149 | 1,953 | 1,845 | 8,129 | 6,506 | 5,996 |
| Earnings from continuing operations retained by GECS | — | — | — | (5,137) | (408) | (1,188) | — | — | — |
| Deferred income taxes | 623 | 1,710 | (1,063) | 564 | 703 | (119) | 59 | 1,007 | (944) |
| Decrease (increase) in GE current receivables | 980 | (2,205) | (1,090) | 14 | 760 | (382) | — | — | — |
| Decrease (increase) in inventories | (1,494) | (1,481) | (556) | (1,496) | (1,458) | (586) | 2 | (23) | 30 |
| Increase (decrease) in accounts payable | 469 | (36) | 240 | (1,073) | 289 | 891 | 1,784 | 185 | (310) |
| Increase in GE progress collections | 4,458 | 927 | 510 | 4,620 | 927 | 510 | — | — | — |
| Provision for losses on GECS financing receivables | 4,546 | 3,130 | 3,239 | — | — | — | 4,546 | 3,130 | 3,239 |
| All other operating activities | 657 | 2,152 | 3,628 | 1,192 | 1,626 | 1,577 | (524) | 723 | 1,918 |
| Cash from operating activities — continuing operations | 42,985 | 32,036 | 30,103 | 23,301 | 23,772 | 19,902 | 26,424 | 21,783 | 18,933 |
| Cash from (used for) operating activities — discontinued operations | 2,982 | (1,390) | 7,588 | (857) | 855 | 1,707 | 3,839 | (2,245) | 5,881 |
| CASH FROM OPERATING ACTIVITIES | 45,967 | 30,646 | 37,691 | 22,444 | 24,627 | 21,609 | 30,263 | 19,538 | 24,814 |
CASH FLOWS — INVESTING ACTIVITIES |
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| Additions to property, plant and equipment | (17,870) | (15,912) | (13,762) | (2,968) | (2,913) | (2,225) | (15,219) | (13,170) | (11,597) |
| Dispositions of property, plant and equipment | 8,460 | 6,796 | 6,019 | — | — | — | 8,460 | 6,796 | 6,019 |
| Net increase in GECS financing receivables | (47,121) | (37,651) | (15,834) | — | — | — | (45,368) | (40,563) | (16,388) |
| Proceeds from sales of discontinued operations | 11,574 | 11,009 | 8,106 | 10,826 | 1,987 | — | 117 | 9,022 | 8,106 |
| Proceeds from principal business dispositions | 2,746 | 1,883 | 476 | 1,047 | 1,497 | 267 | 1,699 | 386 | 209 |
| Payments for principal businesses purchased | (17,215) | (11,573) | (11,436) | (9,645) | (4,274) | (4,269) | (7,570) | (7,299) | (7,167) |
| All other investing activities | (10,275) | (4,553) | (350) | (1,697) | 100 | 1,519 | (8,931) | (5,945) | (2,444) |
| Cash used for investing activities — continuing operations | (69,701) | (50,001) | (26,781) | (2,437) | (3,603) | (4,708) | (66,812) | (50,773) | (23,262) |
| Cash from (used for) investing activities — discontinued operations | (2,723) | (1,401) | (8,318) | 1,003 | (914) | (1,733) | (3,726) | (487) | (6,585) |
| CASH USED FOR INVESTING ACTIVITIES | (72,424) | (51,402) | (35,099) | (1,434) | (4,517) | (6,441) | (70,538) | (51,260) | (29,847) |
CASH FLOWS — FINANCING ACTIVITIES |
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| Net increase (decrease) in borrowings (maturities of 90 days or less) | 2,339 | 4,527 | (4,622) | (3,284) | 1,233 | (418) | 3,398 | 6,464 | (4,040) |
| Newly issued debt (maturities longer than 90 days) | 100,866 | 88,360 | 66,524 | 8,751 | 130 | 1,704 | 92,016 | 88,276 | 65,055 |
| Repayments and other reductions (maturities longer than 90 days) | (49,826) | (49,337) | (53,130) | (298) | (93) | (3,424) | (49,528) | (49,244) | (49,706) |
| Net purchases of GE shares for treasury | (12,319) | (8,554) | (4,844) | (12,319) | (8,554) | (4,844) | — | — | — |
| Dividends paid to shareowners | (11,492) | (10,420) | (9,352) | (11,492) | (10,420) | (9,352) | (7,291) | (9,847) | (7,816) |
| All other financing activities | (1,204) | (1,174) | (1,128) | — | — | — | (1,204) | (1,174) | (1,128) |
| Cash from (used for) financing activities — continuing operations | 28,364 | 23,402 | (6,552) | (18,642) | (17,704) | (16,334) | 37,391 | 34,475 | 2,365 |
| Cash from (used for) financing activities — discontinued operations | (152) | (171) | 433 | (146) | 59 | 26 | (6) | (230) | 407 |
| CASH FROM (USED FOR) FINANCING ACTIVITIES | 28,212 | 23,231 | (6,119) | (18,788) | (17,645) | (16,308) | 37,385 | 34,245 | 2,772 |
INCREASE (DECREASE) IN CASH AND EQUIVALENTS DURING YEAR |
1,755 | 2,475 | (3,527) | 2,222 | 2,465 | (1,140) | (2,890) | 2,523 | (2,261) |
| Cash and equivalents at beginning of year | 14,276 | 11,801 | 15,328 | 4,480 | 2,015 | 3,155 | 12,629 | 10,106 | 12,367 |
| Cash and equivalents at end of year | 16,031 | 14,276 | 11,801 | 6,702 | 4,480 | 2,015 | 9,739 | 12,629 | 10,106 |
| Less cash and equivalents of discontinued operations at end of year | 284 | 177 | 3,139 | — | — | — | 284 | 177 | 3,139 |
| Cash and equivalents of continuing operations at end of year | $ 15,747 | $ 14,099 | $ 8,662 | $ 6,702 | $ 4,480 | $ 2,015 | $ 9,455 | $ 12,452 | $ 6,967 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION |
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| Cash paid during the year for interest | $ (23,340) | $ (18,438) | $ (16,593) | $ (1,466) | $ (1,343) | $ (1,075) | $ (21,874) | $ (17,095) | $ (15,518) |
| Cash recovered (paid) during the year for income taxes | (2,912) | (2,869) | (3,254) | (4,036) | (2,203) | (1,829) | 1,124 | (666) | (1,425) |