Selected Financial Data
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 $4.1 billion in 2007, compared with $3.5 billion and $3.2 billion in 2006 and 2005, respectively. In 2007, expenditures from GE’s own funds were $3.0 billion compared with $2.8 billion in 2006. Expenditures funded by customers (mainly the U.S. government) were $1.1 billion in 2007 and $0.7 billion in 2006.
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 2007 were $5.5 billion.
GE’s total backlog of firm unfilled orders at the end of 2007 was $65.6 billion, an increase of 42% from year-end 2006, reflecting increased demand at Infrastructure. Of the total backlog, $49.4 billion related to products, of which 64% was scheduled for delivery in 2008. Product services orders, included in this reported backlog for only the succeeding 12 months, were $16.2 billion at the end of 2007. 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.
Selected Financial Data
| (Dollars in millions; per-share amounts in dollars) | 2007 | 2006 | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|
|
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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| GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES | |||||
| Revenues | $ 172,738 | $ 151,843 | $ 136,580 | $ 124,176 | $ 104,624 |
| Earnings from continuing operations before accounting changes | 22,468 | 19,380 | 17,354 | 15,638 | 13,277 |
| Earnings (loss) from discontinued operations, net of taxes | (260) | 1,362 | (634) | 1,584 | 2,828 |
| Earnings before accounting changes | 22,208 | 20,742 | 16,720 | 17,222 | 16,105 |
| Net earnings | 22,208 | 20,742 | 16,720 | 17,222 | 15,518 |
| Dividends declared | 11,713 | 10,675 | 9,647 | 8,594 | 7,759 |
| Return on average shareowners’ equity(a) | 20.4% | 19.9% | 18.2% | 16.2% | 17.1% |
| Per share | |||||
| Earnings from continuing operations before accounting changes — diluted | $ 2.20 | $ 1.86 | $ 1.64 | $ 1.50 | $ 1.32 |
| Earnings (loss) from discontinued operations — diluted | (0.03) | 0.13 | (0.06) | 0.15 | 0.28 |
| Earnings before accounting changes — diluted | 2.17 | 2.00 | 1.57 | 1.65 | 1.60 |
| Net earnings — diluted | 2.17 | 2.00 | 1.57 | 1.65 | 1.54 |
| Earnings from continuing operations before accounting changes — basic | 2.21 | 1.87 | 1.64 | 1.50 | 1.33 |
| Earnings (loss) from discontinued operations — basic | (0.03) | 0.13 | (0.06) | 0.15 | 0.28 |
| Earnings before accounting changes — basic | 2.18 | 2.00 | 1.58 | 1.66 | 1.61 |
| Net earnings — basic | 2.18 | 2.00 | 1.58 | 1.66 | 1.55 |
| Dividends declared | 1.15 | 1.03 | 0.91 | 0.82 | 0.77 |
| Stock price range | 42.15–33.90 | 38.49–32.06 | 37.34–32.67 | 37.75–28.88 | 32.42–21.30 |
| Year-end closing stock price | 37.07 | 37.21 | 35.05 | 36.50 | 30.98 |
| Total assets of continuing operations | 788,568 | 676,808 | 590,487 | 580,862 | 484,703 |
| Total assets | 795,337 | 696,683 | 673,210 | 750,252 | 647,395 |
| Long-term borrowings | 319,015 | 260,752 | 212,170 | 207,788 | 170,194 |
| Shares outstanding — average (in thousands) | 10,182,083 | 10,359,320 | 10,569,805 | 10,399,629 | 10,018,587 |
| Shareowner accounts — average | 608,000 | 624,000 | 634,000 | 658,000 | 670,000 |
| Employees at year end | |||||
| United States | 155,000 | 155,000 | 161,000 | 165,000 | 155,000 |
| Other countries | 172,000 | 164,000 | 155,000 | 142,000 | 150,000 |
| Total employees | 327,000 | 319,000 | 316,000(b) | 307,000 | 305,000 |
| GE DATA | |||||
| Short-term borrowings | $ 4,106 | $ 2,076 | $ 972 | $ 3,252 | $ 2,398 |
| Long-term borrowings | 11,656 | 9,043 | 8,986 | 7,561 | 8,289 |
| Minority interest | 6,503 | 5,544 | 5,308 | 7,236 | 663 |
| Shareowners’ equity | 115,559 | 111,509 | 108,633 | 110,181 | 78,873 |
| Total capital invested | $ 137,824 | $ 128,172 | $ 123,899 | $ 128,230 | $ 90,223 |
| Return on average total capital invested(a) | 18.9% | 18.6% | 16.8% | 14.9% | 15.7% |
| Borrowings as a percentage of total capital invested(a) | 11.4% | 8.7% | 8.0% | 9.0% | 11.8% |
| Working capital(a) | $ 5,186 | $ 6,649 | $ 7,266 | $ 7,163 | $ 4,211 |
| GECS DATA | |||||
| Revenues | $ 72,186 | $ 61,626 | $ 55,207 | $ 50,682 | $ 41,795 |
| Earnings from continuing operations before accounting changes | 12,428 | 10,255 | 9,004 | 7,661 | 5,871 |
| Earnings (loss) from discontinued operations, net of taxes | (2,127) | 403 | (1,427) | 1,067 | 2,442 |
| Earnings before accounting changes | 10,301 | 10,658 | 7,577 | 8,728 | 8,313 |
| Net earnings | 10,301 | 10,658 | 7,577 | 8,728 | 7,974 |
| Shareowner’s equity | 57,676 | 54,097 | 50,812 | 54,379 | 45,790 |
| Total borrowings | 500,925 | 426,266 | 362,046 | 355,470 | 316,562 |
| Ratio of debt to equity at GE Capital | 8.10:1 | 7.52:1 | 7.09:1 | 6.45:1 | 6.62:1 |
| Total assets | $ 646,139 | $ 564,668 | $ 540,584 | $ 618,614 | $ 554,877 |