EX-99 6 ex99.htm EXHIBIT 99 ex99.htm
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 in the second quarter of 2007
 
·  
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
 
 
Three months
ended June 30
 
(In millions)
2007
 
2006
 
% change
 
                   
GE consolidated continuing revenues as reported
$
42,316
 
$
37,745
   
12%
 
Less the effects of
                 
Acquisitions, business dispositions (other than dispositions
                 
of businesses acquired for investment) and currency
                 
exchange rates
 
3,547
   
1,623
       
GECS commercial paper interest rate swap adjustment
 
-
   
148
       
GE consolidated 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)
$
38,769
 
$
35,974
   
8%
 

 
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 second quarter 2007 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
 
   
6/30/07
(a)
 
12/31/06
   
6/30/06
 
                   
Managed
 
1.28
%
   
1.22
%
   
1.29
%
 
Off-book
 
0.69
     
0.52
     
0.45
   
On-book
 
1.44
     
1.42
     
1.55
   

 
GE Money
 
   
At
 
   
6/30/07
(a)
 
12/31/06
   
6/30/06
 
                   
Managed
 
5.36
%
   
5.05
%
   
5.22
%
 
Managed (excluding WMC)
 
5.18
     
5.15
     
5.34
   
Off-book
 
5.11
     
5.49
     
4.92
   
On-book
 
5.39
     
5.01
     
5.24
   
                         

(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 off-book securitized portfolios, which are relevant to our overall performance.
 

(2)