EX-99 6 f10q3_ex99.htm EXHIBIT 99 Exhbiit 99

Exhibit 99
 
General Electric Company
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 for continuing operations in the three months ended September 30, 2006
 
·  
delinquency rates on certain financing receivables of the Commercial Finance and GE Money 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 - Continuing Operations - Restated
 
 
Three months
ended September 30
 
(In millions)
2006
(Restated)
 
2005
(Restated)
 
% change
 
                   
GE consolidated continuing revenues as reported
$
40,693
 
$
36,639
   
11%
 
Less the effects of:
                 
Acquisitions, business dispositions (other than dispositions
                 
of businesses acquired for investment) and currency
                 
exchange rates
 
1,646
   
757
       
The GECS commercial paper interest rate swap adjustment
 
(163
)
 
271
       
GE consolidated continuing revenues excluding
                 
the effects of acquisitions, business dispositions
                 
(other than dispositions of businesses
                 
acquired for investment), currency exchange
                 
rates and the GECS commercial paper
                 
interest rate swap adjustment (organic revenues)
$
39,210
 
$
35,611
   
10%
 

 
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 third quarter 2006 continuing operations revenue growth without the effects of acquisitions, business dispositions and currency exchange rates and the GECS commercial paper interest rate swap adjustment.
 

 
(1)

 

Delinquency Rates on Certain Financing Receivables
 
Commercial Finance
 
 
At
 
 
9/30/06(a)
 
12/31/05
 
9/30/05
 
                         
Managed
 
1.33
%
   
1.31
%
   
1.24
%
 
Off-book
 
0.59
     
0.76
     
0.78
   
On-book
 
1.55
     
1.53
     
1.43
   

 
GE Money
 
 
At
 
 
9/30/06(a)
 
12/31/05
 
9/30/05
 
                         
Managed
 
5.14
%
   
5.08
%
   
5.23
%
 
Off-book
 
5.50
     
5.28
     
5.10
   
On-book
 
5.11
     
5.07
     
5.23
   
                         

(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)