Note 14: Property, Plant and Equipment
| December 31 (Dollars in millions) | Estimated useful lives–new (years) | 2007 | 2006 |
|---|---|---|---|
|
(a) Estimated useful lives exclude land. (b) Included $1,513 million and $1,763 million of original cost of assets leased to GE with accumulated amortization of $315 million and $293 million at December 31, 2007 and 2006, respectively. (c) The Aviation Financial Services business of Infrastructure recognized impairment losses of $110 million in 2007 and $51 million in 2006 recorded in the caption “Other costs and expenses” in the Statement of Earnings to reflect adjustments to fair value based on current market values from independent appraisers. |
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| ORIGINAL COST | |||
| GE | |||
| Land and improvements | 8(a) | $ 698 | $ 523 |
| Buildings, structures and related equipment | 8 – 40 | 8,400 | 7,448 |
| Machinery and equipment | 4 – 20 | 20,129 | 19,091 |
| Leasehold costs and manufacturing plant under construction | 1 – 10 | 2,121 | 1,928 |
| 31,348 | 28,990 | ||
| GECS(b) | |||
| Land and improvements, buildings, structures and related equipment | 2–40(a) | 6,083 | 5,027 |
| Equipment leased to others | |||
| Aircraft | 20 | 37,271 | 36,146 |
| Vehicles | 1 – 14 | 32,079 | 26,937 |
| Mobile equipment | 12 – 25 | 2,964 | 4,059 |
| Railroad rolling stock | 5 – 36 | 3,866 | 3,509 |
| Construction and manufacturing | 2 – 25 | 3,031 | 1,932 |
| All other | 2 – 40 | 2,961 | 2,771 |
| 88,255 | 80,381 | ||
| Total | $ 119,603 | $ 109,371 | |
| NET CARRYING VALUE | |||
| GE | |||
| Land and improvements | $ 612 | $ 457 | |
| Buildings, structures and related equipment | 4,101 | 3,284 | |
| Machinery and equipment | 7,634 | 7,317 | |
| Leasehold costs and manufacturing plant under construction | 1,795 | 1,617 | |
| 14,142 | 12,675 | ||
| GECS(b) | |||
| Land and improvements, buildings, structures and related equipment | 3,710 | 2,759 | |
| Equipment leased to others | |||
| Aircraft(c) | 30,414 | 29,886 | |
| Vehicles | 20,701 | 17,132 | |
| Mobile equipment | 1,976 | 2,546 | |
| Railroad rolling stock | 2,789 | 2,395 | |
| Construction and manufacturing | 2,055 | 1,291 | |
| All other | 2,108 | 1,966 | |
| 63,753 | 57,975 | ||
| Total | $ 77,895 | $ 70,650 | |
Amortization of GECS equipment leased to others was $7,222 million, $5,839 million and $5,642 million in 2007, 2006 and 2005, respectively. Noncancellable future rentals due from customers for equipment on operating leases at December 31, 2007, are as follows:
| (In millions) | |
| Due in | |
| 2008 | $ 12,423 |
| 2009 | 7,594 |
| 2010 | 6,024 |
| 2011 | 4,601 |
| 2012 | 3,582 |
| 2013 and later | 10,709 |
| Total | $ 44,933 |