frm8k_ge.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
 

Date of Report (Date of earliest event reported) October 12, 2007
 
 
General Electric Company
  
 
(Exact name of registrant as specified in its charter)
  
 
New York
  
1-35
  
14-0689340
(State or other jurisdiction
of incorporation)
  
(Commission
File Number)
  
(IRS Employer
Identification No.)
   
 
    
3135 Easton Turnpike, Fairfield, Connecticut
      
06828-0001
(Address of principal executive offices)
      
(Zip Code)
   
 
    
Registrant’s telephone number, including area code   (203) 373-2211
 
     
(Former name or former address, if changed since last report.)

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


(1)

Item 8.01 Other Events
 
We are continuing to review our revenue recognition policies and procedures in cooperation with the previously reported investigation by the SEC. We have concluded that the following items, which we determined are immaterial, were recorded in the incorrect period and we are making appropriate adjustments to our previously filed financial statements.
 
For product sales, our policy is to record sales when a firm sales agreement is in place, delivery has occurred and collectibility of the fixed or determinable sales price is reasonably assured. Consistent with this policy, in certain contracts, we recognize revenue upon shipment if, among other things, risk of loss for damage in transit has been transferred to the customer. In such contracts, when this risk is not transferred either as a matter of contract or practice, sales cannot be recorded until the product reaches the customer. We have determined that, for certain product sales, principally in our Healthcare, Infrastructure and Industrial segments, we recorded revenues upon shipment before we transferred risks of transit loss. Although the terms for these sales often provided for transfer of the risk of transit loss upon shipment, because we self-insured the risk on the first $30 million of transit losses per year, we effectively retained risk of transit loss for sales that were Cost Insurance Freight or Cost Insurance Paid. At other times, our sales documents contained conflicting terms that resulted in our retaining transit risk until delivery. Further, our businesses, especially Healthcare, had a practice, for the customer’s benefit, of repairing or replacing at our expense essentially all products damaged or lost in transit even when we were not obligated to do so.1 These items, together with the impact of several matters in the Rail and the Water businesses,2 are referred to in the accompanying schedules as “Cut-off.”
 
Separately, our GE Aviation business has long-term agreements to provide product repair and maintenance services on GE-manufactured aircraft engines. Under these contracts, we retain parts removed during repair and maintenance procedures performed, refurbish those parts and reuse or resell them. To the extent retained parts have value, our total maintenance contract costs are reduced. In estimating such costs, our accounting procedures were incorrect for about four years with respect to the timing and amount of credits for the used parts. We credited the estimated contract costs for the full future selling price of the refurbished parts less costs of repair rather than the fair value of the parts before refurbishment. Gross contract margin and associated revenues on the refurbished parts were recognized before the parts were sold. In addition, when the refurbished parts were ultimately sold or used, proceeds were accounted for as reductions of incurred contract costs, resulting in reduction of associated contract revenues, which had been overstated. The retained parts should have been accounted for earlier as reductions of incurred costs when the engine repair or maintenance procedures were performed, and should subsequently have been accounted for independently of the contracts based on the fair values of retained parts.  Effects accumulated over the four-year period this procedure was in place, resulting in an overestimate of contract profitability arising from an underestimate of costs, an overestimate of progress towards contract completion and consequently an overstatement of revenue. This item is referred to in the accompanying schedules as “Contract cost.”
 
For the third quarter of 2007, we revised our accounting procedures to correct the accounting for these items. In addition, as previously reported, we have already implemented a number of remedial actions and internal control enhancements and we are continuing to evaluate and improve our internal control over financial reporting with respect to our revenue recognition policies and procedures.
 

 
1  For context, the cost of these concessionary repairs or replacements is small relative to the affected revenues.  For example, in the first three quarters of 2007, Healthcare provided repairs or replacements amounting to less than $10 million, less than 0.1% of total segment sales.
 
2 The most significant of these adjustments related to the 2000-2003 Rail transactions that, as previously disclosed, accelerated revenue by one quarter.

 
(2)
 

Our internal review and the SEC investigation are continuing and we will address any additional issues as may be appropriate. Our management and audit committee continue to monitor the review closely, with the assistance of outside experts, and to discuss any issues that arise with the SEC staff as appropriate as part of our ongoing cooperation with the SEC investigation.
 
To assist in understanding the effects of these immaterial items, we set forth below the following summary adjusted data, which will also be disclosed in our future Exchange Act reports:
 
·  
Statement of Financial Position at December 31, 2005, December 31, 2006 and June 30, 2007;
 
·  
Statement of Earnings for the years ended December 31, 2003, December 31, 2004, December 31, 2005 and December 31, 2006 and for each of the quarters ended March 31, 2006, June 30, 2006, September 30, 2006, December 31, 2006, March 31, 2007 and June 30, 2007; and
 
·  
Summary of the operating effect of the above items on each of our Infrastructure, Healthcare and Industrial segments and our Aviation, Energy and Consumer and Industrial sub-segments for the same periods.
 
The summary adjusted data treat our Plastics, Advanced Materials, U.S. mortgage business (WMC) and Japan personal loan business (Lake) as discontinued operations for all periods, and exclude immaterial end of 2006 audit differences that were recorded in the first quarter of 2007.

(3)

Increase (decrease); (in millions;
per-share amounts in dollars)
Year
  
GE Consolidated (a)
  
2006
    
2005
    
2004
    
2003
  
Revenues
    
    
    
    
    
    
    
    
As reported
$
152,259
  
$
136,722
  
$
124,016
  
$
104,669
  
Cut-off
  
(342
)
  
(227
)
  
39
    
26
  
Contract cost
  
(135
)
  
(78
)
  
(19
)
  
(31
)
Adjusted
$
151,782
  
$
136,417
  
$
124,036
  
$
104,664
  
                         
Earnings from continuing operations before income taxes
                        
As reported
$
23,468
  
$
21,156
  
$
19,127
  
$
17,220
  
Cut-off
  
(92
)
  
(94
)
  
(27
)
  
(5
)
Contract cost
  
(107
)
  
(48
)
  
(10
)
  
(23
)
Adjusted
$
23,269
  
$
21,014
  
$
19,090
  
$
17,192
  
                         
Earnings from continuing operations
                        
As reported
$
19,466
  
$
17,343
  
$
15,574
  
$
13,319
  
Cut-off
  
(57
)
  
(61
)
  
(18
)
  
(3
)
Contract cost
  
(67
)
  
(30
)
  
(6
)
  
(14
)
Adjusted
$
19,342
  
$
17,252
  
$
15,550
  
$
13,302
  
                         
Earnings (loss) from discontinued operations
                        
As reported
$
1,363
  
$
(632
)
$
1,586
  
$
2,829
  
Cut-off
  
(1
)
  
(2
)
  
(2
)
  
(1
)
Adjusted
$
1,362
  
$
(634
)
$
1,584
  
$
2,828
  
                         
Net earnings
                        
As reported
$
20,829
  
$
16,711
  
$
17,160
  
$
15,561
  
Cut-off
  
(58
)
  
(63
)
  
(20
)
  
(4
)
Contract cost
  
(67
)
  
(30
)
  
(6
)
  
(14
)
Adjusted
$
20,704
  
$
16,618
  
$
17,134
  
$
15,543
  
                         
Per-share amounts - earnings from continuing operations
                        
Diluted, as reported
$
1.87
  
$
1.64
  
$
1.49
  
$
1.26
  
Adjustment
  
(0.01
)
  
(0.01
)
  
-
    
-
  
Diluted, as adjusted
$
1.86
  
$
1.63
  
$
1.49
  
$
1.26
  
                         
Basic, as reported
$
1.88
  
$
1.64
  
$
1.50
  
$
1.27
  
Adjustment
  
(0.01
)
  
(0.01
)
  
-
    
-
  
Basic, as adjusted
$
1.87
  
$
1.63
  
$
1.50
  
$
1.27
  
                         
Per-share amounts - earnings (loss) from discontinued operations
                        
Diluted, as reported
$
0.13
  
$
(0.06
)
$
0.15
  
$
0.28
  
Adjustment
  
-
    
-
    
-
    
-
  
Diluted, as adjusted
$
0.13
  
$
(0.06
)
$
0.15
  
$
0.28
  
                         
Basic, as reported
$
0.13
  
$
(0.06
)
$
0.15
  
$
0.28
  
Adjustment
  
-
    
-
    
-
    
-
  
Basic, as adjusted
$
0.13
  
$
(0.06
)
$
0.15
  
$
0.28
  
                         
Per-share amounts - net earnings
                        
Diluted, as reported
$
2.00
  
$
1.57
  
$
1.64
  
$
1.54
  
Adjustment
  
(0.01
)
  
(0.01
)
  
-
    
-
  
Diluted, as adjusted
$
1.99
  
$
1.57
  
$
1.64
  
$
1.54
  
                         
Basic, as reported
$
2.01
  
$
1.58
  
$
1.65
  
$
1.55
  
Adjustment
  
(0.01
)
  
(0.01
)
  
-
    
-
  
Basic, as adjusted
$
2.00
  
$
1.57
  
$
1.65
  
$
1.55
  
                       
 

Earnings per share amounts for the adjustment are computed independently.  As a result, the sum of the as reported and adjustment per-share amounts may not equal the total adjusted amount.
 
(a)
As reported amounts reflect the Plastics, Advanced Materials, WMC and Lake businesses as discontinued operations.


(4)


Increase (decrease); (in millions)
Year
  
Infrastructure segment
  
2006
    
2005
    
2004
    
2003
  
Revenues
    
    
    
    
    
    
      
As reported
$
47,429
  
$
41,803
  
$
37,373
  
$
36,569
  
Cut-off
  
(329
)
  
(30
)
  
134
    
57
  
Contract cost
  
(135
)
  
(78
)
  
(19
)
  
(31
)
Adjusted
$
46,965
  
$
41,695
  
$
37,488
  
$
36,595
  
                         
Segment profit
                        
As reported
$
9,040
  
$
7,769
  
$
6,797
  
$
7,362
  
Cut-off
  
(85
)
  
(10
)
  
11
    
10
  
Contract cost
  
(107
)
  
(48
)
  
(10
)
  
(23
)
Adjusted
$
8,848
  
$
7,711
  
$
6,798
  
$
7,349
  
                         
Aviation
                        
Revenues
                        
As reported
$
13,152
  
$
11,904
  
$
11,094
  
$
9,808
  
Cut-off
  
-
    
-
    
-
    
-
  
Contract cost
  
(135
)
  
(78
)
  
(19
)
  
(31
)
Adjusted
$
13,017
  
$
11,826
  
$
11,075
  
$
9,777
  
                         
Segment profit
                        
As reported
$
2,909
  
$
2,573
  
$
2,238
  
$
1,809
  
Cut-off
  
-
    
-
    
-
    
-
  
Contract cost
  
(107
)
  
(48
)
  
(10
)
  
(23
)
Adjusted
$
2,802
  
$
2,525
  
$
2,228
  
$
1,786
  
                         
Energy
                        
Revenues
                        
As reported
$
19,133
  
$
16,525
  
$
14,586
  
$
16,611
  
Cut-off
  
(340
)
  
(24
)
  
(11
)
  
(4
)
Adjusted
$
18,793
  
$
16,501
  
$
14,575
  
$
16,607
  
                         
Segment profit
                        
As reported
$
3,000
  
$
2,665
  
$
2,543
  
$
3,875
  
Cut-off
  
(94
)
  
(3
)
  
(5
)
  
(2
)
Adjusted
$
2,906
  
$
2,662
  
$
2,538
  
$
3,873
  
                         
Healthcare segment
                        
Revenues
                        
As reported
$
16,562
  
$
15,153
  
$
13,456
  
$
10,198
  
Cut-off
  
(2
)
  
(137
)
  
(45
)
  
(31
)
Adjusted
$
16,560
  
$
15,016
  
$
13,411
  
$
10,167
  
                         
Segment profit
                        
As reported
$
3,143
  
$
2,665
  
$
2,286
  
$
1,701
  
Cut-off
  
(1
)
  
(64
)
  
(23
)
  
(15
)
Adjusted
$
3,142
  
$
2,601
  
$
2,263
  
$
1,686
  
                         
Industrial segment (a) 
                        
Revenues
                        
As reported
$
24,784
  
$
23,740
  
$
22,432
  
$
17,910
  
Cut-off
  
(10
)
  
(60
)
  
(50
)
  
-
  
Adjusted
$
24,774
  
$
23,680
  
$
22,382
  
$
17,910
  
                         
Segment profit
                        
As reported
$
1,879
  
$
1,529
  
$
1,123
  
$
769
  
Cut-off
  
(6
)
  
(20
)
  
(14
)
  
-
  
Adjusted
$
1,873
  
$
1,509
  
$
1,109
  
$
769
  
                         
Consumer & Industrial
                        
Revenues
                        
As reported
$
13,785
  
$
13,636
  
$
13,366
  
$
12,471
  
Cut-off
  
5
    
(30
)
  
(45
)
  
3
  
Adjusted
$
13,790
  
$
13,606
  
$
13,321
  
$
12,474
  
                         
Segment profit
                        
As reported
$
980
  
$
772
  
$
658
  
$
538
  
Cut-off
  
1
    
(8
)
  
(12
)
  
1
  
Adjusted
$
981
  
$
764
  
$
646
  
$
539
  
                       
 

(a)
As reported amounts reflect the Plastics, Advanced Materials, WMC and Lake businesses as discontinued operations.

(5)


Increase (decrease); (in millions;
per-share amounts in dollars)
2007
  
2006
  
GE Consolidated (a)
  
First
quarter
   
  
Second
quarter
     
  
First
quarter
   
  
Second
quarter
   
  
Third
quarter
   
  
Fourth
quarter
   
  
Total
  
Revenues
                                          
As reported
$
38,782
  
$
42,446
  
$
35,314
  
$
37,228
  
$
37,880
  
$
41,837
  
$
152,259
  
Cut-off
  
529
    
(40
)
  
280
    
(122
)
  
18
    
(518
)
  
(342
)
Contract cost
  
(61
)
  
(28
)
  
(25
)
  
(10
)
  
(24
)
  
(76
)
  
(135
)
Adjusted
$
39,250
  
$
42,378
  
$
35,569
  
$
37,096
  
$
37,874
  
$
41,243
  
$
151,782
  
                                           
Earnings from continuing operations before
                                          
income taxes
                                          
As reported
$
6,068
  
$
7,129
  
$
4,873
  
$
5,754
  
$
5,626
  
$
7,215
  
$
23,468
  
Cut-off
  
198
    
(43
)
  
116
    
(51
)
  
15
    
(172
)
  
(92
)
Contract cost
  
(55
)
  
(24
)
  
(15
)
  
(3
)
  
(17
)
  
(72
)
  
(107
)
Adjusted
$
6,211
  
$
7,062
  
$
4,974
  
$
5,700
  
$
5,624
  
$
6,971
  
$
23,269
  
                                           
Earnings from continuing operations
                                          
As reported
$
4,866
  
$
5,653
  
$
3,925
  
$
4,712
  
$
4,750
  
$
6,079
  
$
19,466
  
Cut-off
  
128
    
(28
)
  
77
    
(34
)
  
10
    
(110
)
  
(57
)
Contract cost
  
(34
)
  
(15
)
  
(9
)
  
(2
)
  
(11
)
  
(45
)
  
(67
)
Adjusted
$
4,960
  
$
5,610
  
$
3,993
  
$
4,676
  
$
4,749
  
$
5,924
  
$
19,342
  
                                           
Earnings (loss) from discontinued operations
                                          
As reported
$
(358
)
$
(233
)
$
515
  
$
234
  
$
117
  
$
497
  
$
1,363
  
Cut-off
  
1
    
2
    
(2
)
  
2
    
-
    
(1
)
  
(1
)
Adjusted
$
(357
)
$
(231
)
$
513
  
$
236
  
$
117
  
$
496
  
$
1,362
  
                                           
Net earnings
                                          
As reported
$
4,508
  
$
5,420
  
$
4,440
  
$
4,946
  
$
4,867
  
$
6,576
  
$
20,829
  
Cut-off
  
129
    
(26
)
  
75
    
(32
)
  
10
    
(111
)
  
(58
)
Contract cost
  
(34
)
  
(15
)
  
(9
)
  
(2
)
  
(11
)
  
(45
)
  
(67
)
Adjusted
$
4,603
  
$
5,379
  
$
4,506
  
$
4,912
  
$
4,866
  
$
6,420
  
$
20,704
  
                                           
Per-share amounts - earnings from
                                          
continuing operations
                                          
Diluted, as reported
$
0.47
  
$
0.55
  
$
0.37
  
$
0.45
  
$
0.46
  
$
0.59
  
$
1.87
  
Adjustment
  
0.01
    
-
    
0.01
    
-
    
-
    
(0.01
)
  
(0.01
)
Diluted, as adjusted
$
0.48
  
$
0.54
  
$
0.38
  
$
0.45
  
$
0.46
  
$
0.57
  
$
1.86
  
                                           
Basic, as reported
$
0.47
  
$
0.55
  
$
0.38
  
$
0.45
  
$
0.46
  
$
0.59
  
$
1.88
  
Adjustment
  
0.01
    
-
    
0.01
    
-
    
-
    
(0.01
)
  
(0.01
)
Basic, as adjusted
$
0.48
  
$
0.55
  
$
0.38
  
$
0.45
  
$
0.46
  
$
0.58
  
$
1.87
  
                                           
Per-share amounts - earnings (loss) from
                                          
discontinued operations
                                          
Diluted, as reported
$
(0.03
)
$
(0.02
)
$
0.05
  
$
0.02
  
$
0.01
  
$
0.05
  
$
0.13
  
Adjustment
  
-
    
-
    
-
    
-
    
-
    
-
    
-
  
Diluted, as adjusted
$
(0.03
)
$
(0.02
)
$
0.05
  
$
0.02
  
$
0.01
  
$
0.05
  
$
0.13
  
                                           
Basic, as reported
$
(0.03
)
$
(0.02
)
$
0.05
  
$
0.02
  
$
0.01
  
$
0.05
  
$
0.13
  
Adjustment
  
-
    
-
    
-
    
-
    
-
    
-
    
-
  
Basic, as adjusted
$
(0.03
)
$
(0.02
)
$
0.05
  
$
0.02
  
$
0.01
  
$
0.05
  
$
0.13
  
                                           
Per-share amounts - net earnings
                                          
Diluted, as reported
$
0.44
  
$
0.53
  
$
0.42
  
$
0.48
  
$
0.47
  
$
0.64
  
$
2.00
  
Adjustment
  
0.01
    
-
    
0.01
    
-
    
-
    
(0.02
)
  
(0.01
)
Diluted, as adjusted
$
0.45
  
$
0.52
  
$
0.43
  
$
0.47
  
$
0.47
  
$
0.62
  
$
1.99
  
                                           
Basic, as reported
$
0.44
  
$
0.53
  
$
0.43
  
$
0.48
  
$
0.47
  
$
0.64
  
$
2.01
  
Adjustment
  
0.01
    
-
    
0.01
    
-
    
-
    
(0.02
)
  
(0.01
)
Basic, as adjusted
$
0.45
  
$
0.52
  
$
0.43
  
$
0.47
  
$
0.47
  
$
0.62
  
$
2.00
  
                                           

Earnings per share amounts are computed independently for each quarter. As a result, the sum of the per-share amounts for each quarter may not equal the total year amount. Additionally, earnings per share amounts for the adjustment are computed independently. As a result, the sum of the as reported and adjustment per-share amounts may not equal the total adjusted amount.
 
(a)
As reported amounts reflect the Plastics, Advanced Materials, WMC and Lake businesses as discontinued operations.

(6)


Increase (decrease); (in millions)
2007
  
2006
  
Infrastructure segment
  
First
quarter
    
Second
quarter
    
First
quarter
    
Second
quarter
    
Third
quarter
    
Fourth
quarter
    
Total
  
Revenues
    
   
    
        
    
   
    
    
    
    
    
    
      
As reported
$
11,983
  
$
13,913
  
$
10,152
  
$
11,332
  
$
12,104
  
$
13,841
  
$
47,429
  
Cut-off
  
280
    
49
    
21
    
(5
)
  
33
    
(378
)
  
(329
)
Contract cost
  
(61
)
  
(28
)
  
(25
)
  
(10
)
  
(24
)
  
(76
)
  
(135
)
Adjusted
$
12,202
  
$
13,934
  
$
10,148
  
$
11,317
  
$
12,113
  
$
13,387
  
$
46,965
  
                                           
Segment profit
                                          
As reported
$
2,183
  
$
2,589
  
$
1,703
  
$
2,107
  
$
2,336
  
$
2,894
  
$
9,040
  
Cut-off
  
80
    
(2
)
  
(1
)
  
1
    
20
    
(105
)
  
(85
)
Contract cost
  
(55
)
  
(24
)
  
(15
)
  
(3
)
  
(17
)
  
(72
)
  
(107
)
Adjusted
$
2,208
  
$
2,563
  
$
1,687
  
$
2,105
  
$
2,339
  
$
2,717
  
$
8,848
  
                                           
Aviation
                                          
Revenues
                                          
As reported
$
3,514
  
$
4,109
  
$
3,041
  
$
3,291
  
$
3,157
  
$
3,663
  
$
13,152
  
Cut-off
  
(2
)
  
(2
)
  
(6
)
  
6
    
-
    
-
    
-
  
Contract cost
  
(61
)
  
(28
)
  
(25
)
  
(10
)
  
(24
)
  
(76
)
  
(135
)
Adjusted
$
3,451
  
$
4,079
  
$
3,010
  
$
3,287
  
$
3,133
  
$
3,587
  
$
13,017
  
                                           
Segment profit
                                          
As reported
$
755
  
$
853
  
$
645
  
$
728
  
$
706
  
$
830
  
$
2,909
  
Cut-off
  
(1
)
  
(1
)
  
(3
)
  
3
    
-
    
-
    
-
  
Contract cost
  
(55
)
  
(24
)
  
(15
)
  
(3
)
  
(17
)
  
(72
)
  
(107
)
Adjusted
$
699
  
$
828
  
$
627
  
$
728
  
$
689
  
$
758
  
$
2,802
  
                                           
Energy
                                          
Revenues
                                          
As reported
$
4,393
  
$
5,140
  
$
3,835
  
$
4,442
  
$
5,055
  
$
5,801
  
$
19,133
  
Cut-off
  
274
    
55
    
20
    
(15
)
  
23
    
(368
)
  
(340
)
Adjusted
$
4,667
  
$
5,195
  
$
3,855
  
$
4,427
  
$
5,078
  
$
5,433
  
$
18,793
  
                                           
Segment profit
                                          
As reported
$
613
  
$
894
  
$
436
  
$
689
  
$
747
  
$
1,128
  
$
3,000
  
Cut-off
  
76
    
1
    
(1
)
  
(8
)
  
14
    
(99
)
  
(94
)
Adjusted
$
689
  
$
895
  
$
435
  
$
681
  
$
761
  
$
1,029
  
$
2,906
  
                                           
Healthcare segment
                                          
Revenues
                                          
As reported
$
3,641
  
$
4,127
  
$
3,659
  
$
4,156
  
$
3,897
  
$
4,850
  
$
16,562
  
Cut-off
  
254
    
(82
)
  
242
    
(88
)
  
(6
)
  
(150
)
  
(2
)
Adjusted
$
3,895
  
$
4,045
  
$
3,901
  
$
4,068
  
$
3,891
  
$
4,700
  
$
16,560
  
                                           
Segment profit
                                          
As reported
$
520
  
$
731
  
$
496
  
$
795
  
$
700
  
$
1,152
  
$
3,143
  
Cut-off
  
117
    
(39
)
  
111
    
(42
)
  
(1
)
  
(69
)
  
(1
)
Adjusted
$
637
  
$
692
  
$
607
  
$
753
  
$
699
  
$
1,083
  
$
3,142
  
                                           
Industrial segment (a) 
                                          
Revenues
                                          
As reported
$
5,838
  
$
6,231
  
$
5,946
  
$
6,505
  
$
6,265
  
$
6,068
  
$
24,784
  
Cut-off
  
(5
)
  
(8
)
  
18
    
(29
)
  
(9
)
  
10
    
(10
)
Adjusted
$
5,833
  
$
6,223
  
$
5,964
  
$
6,476
  
$
6,256
  
$
6,078
  
$
24,774
  
                                           
Segment profit
                                          
As reported
$
365
  
$
489
  
$
342
  
$
484
  
$
489
  
$
564
  
$
1,879
  
Cut-off
  
-
    
(2
)
  
5
    
(9
)
  
(4
)
  
2
    
(6
)
Adjusted
$
365
  
$
487
  
$
347
  
$
475
  
$
485
  
$
566
  
$
1,873
  
                                           
Consumer & Industrial
                                          
Revenues
                                          
As reported
$
3,083
  
$
3,446
  
$
3,437
  
$
3,733
  
$
3,423
  
$
3,192
  
$
13,785
  
Cut-off
  
(18
)
  
(9
)
  
14
    
(19
)
  
(2
)
  
12
    
5
  
Adjusted
$
3,065
  
$
3,437
  
$
3,451
  
$
3,714
  
$
3,421
  
$
3,204
  
$
13,790
  
                                           
Segment profit
                                          
As reported
$
229
  
$
311
  
$
213
  
$
274
  
$
235
  
$
258
  
$
980
  
Cut-off
  
(5
)
  
(2
)
  
4
    
(6
)
  
-
    
3
    
1
  
Adjusted
$
224
  
$
309
  
$
217
  
$
268
  
$
235
  
$
261
  
$
981
  
                                           

(a)
As reported amounts reflect the Plastics, Advanced Materials, WMC and Lake businesses as discontinued operations.

(7)


GE Consolidated
            
             
Statement of Financial Position
            
(in millions)
6/30/2007
  
12/31/2006
  
12/31/2005
  
 
As
reported(a)
  
Adjustment
  
As
adjusted
  
As    
reported(a)
  
Adjustment
  
As
adjusted
  
As    
reported(a)
  
Adjustment
  
As
adjusted
  
   
   
  
   
  
   
  
   
  
   
  
   
  
   
  
   
    
GE current receivables
$
12,734
  
$
(760
)
$
11,974
  
$
13,449
  
$
(1,249
)
$
12,200
  
$
14,146
  
$
(908
)
$
13,238
  
Inventories
  
12,547
    
85
    
12,632
    
9,954
    
75
    
10,029
    
8,906
    
47
    
8,953
  
All other assets
  
106,741
    
82
    
106,823
    
91,705
    
507
    
92,212
    
80,243
    
393
    
80,636
  
Assets of discontinued operations
  
15,842
    
(35
)
  
15,807
    
19,797
    
(40
)
  
19,757
    
82,648
    
(39
)
  
82,609
  
Total assets
  
738,533
    
(628
)
  
737,905
    
697,239
    
(707
)
  
696,532
    
673,321
    
(507
)
  
672,814
  
                                                       
Deferred income taxes
  
13,250
    
(214
)
  
13,036
    
14,563
    
(238
)
  
14,325
    
17,016
    
(163
)
  
16,853
  
Liabilities of discontinued operations
  
1,938
    
(13
)
  
1,925
    
2,640
    
(14
)
  
2,626
    
52,780
    
(14
)
  
52,766
  
Total liabilities
  
614,322
    
(227
)
  
614,095
    
577,432
    
(252
)
  
577,180
    
556,435
    
(177
)
  
556,258
  
                                                       
Retained earnings
  
111,819
    
(401
)
  
111,418
    
107,798
    
(455
)
  
107,343
    
97,644
    
(330
)
  
97,314
  
Total shareowners’ equity
  
117,023
    
(401
)
  
116,622
    
112,314
    
(455
)
  
111,859
    
109,351
    
(330
)
  
109,021
  
Total liabilities and equity
  
738,533
    
(628
)
  
737,905
    
697,239
    
(707
)
  
696,532
    
673,321
    
(507
)
  
672,814
  

(a)
As reported amounts reflect the Plastics, Advanced Materials, WMC and Lake businesses as discontinued operations.



(8)

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
   
General Electric Company
  
   
(Registrant)
  
       
Date: October 12, 2007
  
/s/ Philip D. Ameen
  
   
Philip D. Ameen
  
   
Vice President and Comptroller
  

 

(9)