EX-99 7 ex99.htm EXHIBIT 99 Exhibit 99

Exhibit 99
 
Financial Measures That Supplement Generally Accepted Accounting Principles
 

 
We sometimes use information derived from consolidated financial information but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. Specifically, we have referred to:
 
organic revenue growth in the first quarter of 2006
 
delinquency rates on certain financing receivables of the Commercial Finance and Consumer Finance segments
 
The reasons we use these non-GAAP financial measures and their reconciliation to their most directly comparable GAAP financial measures follow.
 
Organic Revenue Growth
 
 
Three months
ended March 31
 
(In millions)
2006
 
2005
 
% change
 
                   
GE consolidated revenues as reported
$
37,821
 
$
34,350
   
10%
 
Less the effects of:
                 
Acquisitions, business dispositions (other than dispositions
                 
of businesses acquired for investment) and currency
                 
exchange rates
 
227
   
413
       
The 2006 Olympics broadcasts
 
684
   
       
GE consolidated revenues excluding the effects of acquisitions,
                 
business dispositions (other than dispositions of businesses
                 
acquired for investment), currency exchange rates and the
                 
2006 Olympics broadcasts (organic revenues)
$
36,910
 
$
33,937
   
9%
 

 
We believe that meaningful analysis of our financial performance requires an understanding of the factors underlying that performance and our judgments about the likelihood that particular factors will repeat. In some cases, short-term patterns and long-term trends may be obscured by large factors or events. For example, events or trends in a particular segment may be so significant as to obscure patterns and trends of our industrial or financial services businesses in total. For this reason, we believe that investors may find it useful to see our first quarter 2006 revenue growth without the effects of acquisitions, business dispositions and currency exchange rates, and without the effects of the 2006 Olympics broadcasts.
 

 
(1)


Delinquency Rates on Certain Financing Receivables
 
Commercial Finance
 
 
At
 
 
3/31/06(a)
 
12/31/05
 
3/31/05
 
                         
Managed
 
1.31
%
   
1.31
%
   
1.54
%
 
Off-book
 
0.61
     
0.76
     
1.05
   
On-book
 
1.60
     
1.53
     
1.70
   

 
Consumer Finance
 
 
At
 
 
3/31/06(a)
 
12/31/05
 
3/31/05
 
                         
Managed
 
5.14
%
   
5.08
%
   
5.18
%
 
Off-book
 
5.24
     
5.28
     
4.94
   
On-book
 
5.13
     
5.07
     
5.20
   
                         

(a)
 
Subject to update.
 

 
We believe that delinquency rates on managed financing receivables provide a useful perspective of our portfolio quality and are key indicators of financial performance. Further, investors use such information, including the results of both the on-book and securitized portfolios, which are relevant to our overall performance.
 
(2)