COMMERCIAL FINANCE
| (In millions) | 2007 | 2006 | 2005 |
|---|---|---|---|
| REVENUES | $ 34,288 | $ 30,853 | $ 27,273 |
| SEGMENT PROFIT | $ 6,039 | $ 5,297 | $ 4,487 |
| December 31 (In millions) | 2007 | 2006 |
|---|---|---|
| TOTAL ASSETS | $ 310,412 | $ 252,901 |
| (In millions) | 2007 | 2006 | 2005 |
|---|---|---|---|
| REVENUES | |||
| Capital Solutions | $ 14,354 | $ 14,169 | $ 13,162 |
| Real Estate | 7,021 | 5,020 | 3,492 |
| SEGMENT PROFIT | |||
| Capital Solutions | $ 1,889 | $ 1,789 | $ 1,522 |
| Real Estate | 2,285 | 1,841 | 1,282 |
| December 31 (In millions) | 2007 | 2006 | |
|---|---|---|---|
| ASSETS | |||
| Capital Solutions | $ 122,527 | $ 100,882 | |
| Real Estate | 79,285 | 53,786 | |
Commercial Finance 2007 revenues and net earnings increased 11% and 14%, respectively, compared with 2006. Revenues in 2007 and 2006 included $2.4 billion and $0.1 billion from acquisitions, respectively, and in 2007 were reduced by $2.7 billion as a result of dispositions. Revenues in 2007 also increased $3.7 billion as a result of organic revenue growth ($2.7 billion) and the weaker U.S. dollar ($1.0 billion). The increase in net earnings resulted from core growth ($0.5 billion), acquisitions ($0.2 billion), the weaker U.S. dollar ($0.1 billion), and investment income ($0.1 billion), partially offset by dispositions ($0.1 billion) and lower securitization income ($0.1 billion). Core growth included $0.5 billion representing the total year's tax benefit on the disposition of our investment in SES, partially offset by $0.2 billion of higher credit losses and $0.1 billion in charges related to mark-to-market adjustments to loans held for sale. Investment income included higher SES gains ($0.1 billion) offset by impairments of securitization retained interests ($0.1 billion).
Real Estate assets at December 31, 2007, increased $25.5 billion, or 47%, from December 31, 2006, of which $12.6 billion was real estate investments, also up 47%. Real Estate net earnings increased 24% compared with 2006, primarily as a result of a $0.5 billion increase in net earnings from sales of real estate investments.
Commercial Finance 2006 revenues and net earnings increased 13% and 18%, respectively, compared with 2005. Revenues in 2006 and 2005 included $1.2 billion and $0.1 billion from acquisitions, respectively, and in 2006 were reduced by $0.1 billion as a result of dispositions. Revenues in 2006 also increased as a result of organic revenue growth ($2.5 billion) and the second quarter 2006 consolidation of GE SeaCo, an entity previously accounted for using the equity method ($0.2 billion). The increase in net earnings resulted from core growth ($0.7 billion), including growth in lower-taxed earnings from global operations, and acquisitions ($0.1 billion).
Real Estate assets at December 31, 2006, increased $18.5 billion, or 52%, from December 31, 2005, of which $12.4 billion was real estate investments, up 76%. Real Estate net earnings increased 44% compared with 2005, primarily as a result of a $0.6 billion increase in net earnings from real estate investments. See Corporate Items and Eliminations for a discussion of items not allocated to this segment.