Financial Table of Contents
Management’s Discussion of Financial Responsibility
We begin with a letter from our Chief Executive and Financial Officers discussing our unyielding commitment to rigorous oversight, controllership, informative disclosure and visibility to investors.
Management’s Annual Report on Internal Control Over Financial Reporting
In this report our Chief Executive and Financial Officers provide their assessment of the effectiveness of our internal control over financial reporting.
Report of Independent Registered Public Accounting Firm
Our independent auditors, KPMG LLP, express their opinions on our financial statements and our internal control over financial reporting.
Management’s Discussion and Analysis (MD&A)
Operations
We begin the Operations section of MD&A with an overview of our earnings, including a perspective on how the global economic environment has affected our businesses over the last three years. We then discuss various key operating results for GE industrial (GE) and financial services (GECS). Because of the fundamental differences in these businesses, reviewing certain information separately for GE and GECS offers a more meaningful analysis. Next we provide a description of our global risk management process. Our discussion of segment results includes quantitative and qualitative disclosure about the factors affecting segment revenues and profits, and the effects of recent acquisitions, dispositions and significant transactions. We conclude the Operations section with an overview of our operations from a geographic perspective and a discussion of environmental matters.
Financial Resources and Liquidity
In the Financial Resources and Liquidity section of MD&A, we provide an overview of the major factors that affected our consolidated financial position and insight into the liquidity and cash flow activities of GE and GECS.
Critical Accounting Estimates
Critical Accounting Estimates are necessary for us to prepare our financial statements. In this section, we discuss what these estimates are, why they are important, how they are developed and uncertainties to which they are subject.
Other Information
We conclude MD&A with a brief discussion of new accounting standards that will become effective for us beginning in 2008.
Selected Financial Data
Selected Financial Data provides five years of financial information for GE and GECS. This table includes commonly used metrics that facilitate comparison with other companies.
Audited Financial Statements and Notes
Statement of Earnings
Consolidated Statement of Changes in Shareowners’ Equity
Statement of Financial Position
Statement of Cash Flows
Notes to Consolidated Financial Statements
Supplemental Information
We provide Supplemental Information to reconcile certain “non-GAAP financial measures” referred to in our report to the most closely associated GAAP financial measures. We also provide information about our stock performance over the last five years.
Glossary
For your convenience, we also provide a Glossary of key terms used in our financial statements.
We also present our financial information electronically at www.ge.com/investor.