----

----

**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

|   |                         |   |
|--------|------------------------------|--------|
|   | **FORM                10-K** |   |

| (**Mark                  One)**                                                                                                                      |                                                                                                                                            |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| **þ**** **                                                                                                                                 | **Annual                  Report Pursuant to Section 13 or 15(d) of the Securities Exchange                  Act of                  1934**     |
|                                                                                                                                                 |
| **For                  the fiscal year ended December 31, 2006**                                                                                     |
| **or**                                                                                                                                          |
| **¨**** **                                                                                                                                 | **Transition                  Report pursuant to Section 13 or 15(d) of the Securities Exchange                  Act of                  1934** |
|                                                                                                                                                 |
| **For                  the transition period from ___________to                  ___________**                                                       |
|  **_____________________________** **Commission                  file number 0-14804****_____________________________**                    |
|                                                                                                                                                 |
| **General                  Electric Capital Services, Inc.**(Exact                  name of registrant as specified in its                  charter) |

| **Delaware**                                                                                              |                                   | **06-1109503**                                                                 |
|-----------------------------------------------------------------------------------------------------------|----------------------------------------|--------------------------------------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization)                             |                                   | (I.R.S.                Employer Identification No.)                            |
|                                                                                                      |                                   |                                                                           |   |   |
| **3135                Easton Turnpike, Fairfield, Connecticut**                                           |                                   | **06828**                                                                      |   | **203/373-2211** |
| (Address                of principal executive offices)                                                   | (Zip                Code)              | (Registrant’s                telephone number,                           |
|                                                                                                      |                                   | including                area code)                                            |
|  **Securities                Registered Pursuant to Section 12(b) of the                Act: ** |
| **Title                of each class**                                                                    |                                   | **Name                of each exchange****on                which registered** |
|                                                                                                      |                                   |                                                                           |
| **7                ½% Guaranteed Subordinated Notes Due August 21,                2035**             |                                   | **New                York Stock Exchange**                                     |
|  **Securities                Registered Pursuant to Section 12(g) of the                Act:**       |
|                                                                                                      | **Title                of each class** |                                                                           |
| **Common                Stock, par value $1,000 per                share**                                |

**¨**
** **
**þ**

**¨**
** **
**þ**

**þ**
**¨**

**þ**

| Large                  accelerated filer **¨**** **   | Accelerated                  filer **¨**  | Non-accelerated                  filer **þ**  |
|---------------------------------------------------------------------------|-----------------------------------------------------|---------------------------------------------------------|

**¨**
** **
**þ**

**DOCUMENTS      INCORPORATED BY REFERENCE**

**REGISTRANT      MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION I(1)(a) AND (b) OF FORM      10-K AND IS THEREFORE FILING THIS FORM 10-K WITH THE REDUCED DISCLOSURE      FORMAT.**

----

| **TABLE                OF CONTENTS** |
|--------------------------------------|
|                                 |   |
|                                 |   | Page |
|                                 |   |
| **PART                I**            |   |   |
|                                 |   |   |
| Item                1.               | Business | 3 |
| Item                1A.              | Risk                Factors | 8 |
| Item                1B.              | Unresolved                Staff Comments | 9 |
| Item                2.               | Properties | 9 |
| Item                3.               | Legal                Proceedings | 9 |
| Item                4.               | Submission                of Matters to a Vote of Security Holders | 10 |
|                                 |   |   |
| **PART                II**           |   |   |
|                                 |   |   |
| Item                5.               | Market                for the Registrant’s Common Equity and Related Stockholder Matters | 10 |
| Item                6.               | Selected                Financial Data | 10 |
| Item                7.               | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations | 11 |
| Item                7A.              | Quantitative                and Qualitative Disclosures About Market Risk | 35 |
| Item                8.               | Financial                Statements and Supplementary Data | 35 |
| Item                9.               | Changes                in and Disagreements with Accountants on Accounting and Financial                Disclosure | 75 |
| Item                9A.              | Controls                and Procedures | 75 |
| Item                9B.              | Other                Information | 76 |
|                                 |   |   |
| **PART                III**          |   |   |
|                                 |   |   |
| Item                10.              | Directors                and Executive Officers of the Registrant | 76 |
| Item                11.              | Executive                Compensation | 76 |
| Item                12.              | Security                Ownership of Certain Beneficial Owners and Management and Related                Stockholder Matters | 77 |
| Item                13.              | Certain                Relationships and Related Transactions | 77 |
| Item                14.              | Principal                Accounting Fees and Services | 77 |
|                                 |   |   |
| **PART                IV**           |   |   |
|                                 |   |   |
| Item                15.              | Exhibits                and Financial Statement Schedules | 78 |
|                                 | Signatures  | 86 |

----

**PART      I**

**Item      1. Business.**

**General      Electric Capital Services, Inc.**

**General      Electric Capital Corporation**

**Operating      Segments**

**GE      Commercial Finance**

----

*Capital      Solutions*

*Real      Estate*

----

**GE      Money**

**GE      Industrial**

*Equipment      Services*

----

**GE      Infrastructure**

*Aviation      Financial Services*

*Energy      Financial Services*

**Discontinued      Operations**

----

**Regulations      and Competition**

**Business      and Economic Conditions**

**Forward-Looking      Statements**

----

**Item      1A. **
**Risk      Factors.**

**Our      global growth is subject to a number of economic and political risks**

**Our      credit ratings are important to our cost of capital**

**The      success of our business depends on achieving our objectives for strategic      acquisitions and dispositions**

----

**We      are subject to a wide variety of laws and regulations**

**Changes      in the real estate markets are highly uncertain**

**Item      1B. Unresolved Staff Comments.**

**Item      2. Properties.**

**Item      3. Legal Proceedings.**

*Accounting      for Derivative Instruments and Hedging Activities, *

----

**Item      4. Submission of Matters to a Vote of Security Holders.**

**PART      II**

**Item      5. Market for the Registrant’s Common Equity and Related Stockholder      Matters.**

**Item      6. Selected Financial Data.**

| *(In                millions)*                                | **2006** |    | **2005** |   | **2004** |   | **2003** |    | **2002** |   |
|---------------------------------------------------------------|----------|---------|----------|--------|----------|--------|----------|---------|----------|--------|
|                                                          |     |    |     |   |     |   |     |    |     |   |   |   |   |   |   |
| Revenues                                                      | $        | 63,602  |     | $      | 57,551   |   | $        | 52,704  |     | $      | 43,513 |   | $ | 38,456 |   |
| Earnings                from continuing operations            |     |    |     |   |     |   |     |    |     |   |   |   |   |   |   |
| before                accounting changes                      |     | 10,495  |     |   | 9,527    |   |     | 8,169   |     |   | 6,256 |   |   | 4,122 |   |
| Earnings                (loss) from discontinued operations,  |     |    |     |   |     |   |     |    |     |   |   |   |   |   |   |
| net                of taxes                                   |     | 163     |     |   | (1,950   | )      |     | 559     |     |   | 2,057 |   |   | (616 | ) |
| Earnings                before accounting changes             |     | 10,658  |     |   | 7,577    |   |     | 8,728   |     |   | 8,313 |   |   | 3,506 |   |
| Net                earnings                                   |     | 10,658  |     |   | 7,577    |   |     | 8,728   |     |   | 7,974 |   |   | 2,491 |   |
| Shareowner’s                equity                      |     | 54,097  |     |   | 50,812   |   |     | 54,379  |     |   | 45,790 |   |   | 37,202 |   |
| Short-term                borrowings                          |     | 173,316 |     |   | 157,672  |   |     | 154,292 |     |   | 153,748 |   |   | 128,240 |   |
| Long-term                borrowings                           |     | 252,963 |     |   | 204,397  |   |     | 201,209 |     |   | 162,845 |   |   | 138,774 |   |
| Return                on average shareowner’s equity(a) |     | 22.4    | %        |   | 20.2     | %      |     | 17.8    | %        |   | 15.2 | % |   | 13.6 | % |
| GECS                ratio of earnings to fixed charges        |     | 1.64    |     |   | 1.74     |   |     | 1.87    |     |   | 1.74 |   |   | 1.42 |   |
| GECC                ratio of debt to equity                   |     | 7.52:1  |     |   | 7.09:1   |   |     | 6.45:1  |     |   | 6.62:1 |   |   | 6.48:1 |   |
| Financing                receivables - net                    | $        | 334,232 |     | $      | 287,639  |   | $        | 282,699 |     | $      | 248,114 |   | $ | 198,060 |   |
| Total                assets                                   |     | 564,668 |     |   | 540,584  |   |     | 618,614 |     |   | 554,877 |   |   | 489,602 |   |
|                                                          |     |    |     |   |     |   |     |    |     |   |   |   |   |   |   |

| (a) | Represents                earnings from continuing operations before accounting changes divided                by                average total shareowner’s equity, excluding effects of discontinued                operations (on an annual basis, calculated using a five-point average).                Average total shareowner’s equity, excluding effects of discontinued                operations, as of the end of each of the years in the five-year period                ended December 31, 2006, is described in the Supplemental Information                section. |   |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

**Item      7. Management’s Discussion and Analysis of Financial Condition and Results of      Operations.**

**Operations**

**Overview      of Our Earnings from 2004 through 2006**

----

**Insurance      Exit**

**Interest      on borrowings**

**Income      taxes**

----

**Global      Risk Management**

| **•** | Liquidity                risk is the risk of being unable to accommodate liability maturities,                fund                asset growth and meet contractual obligations through access to funding                at                reasonable market rates. Additional information about our liquidity                and                how we manage this risk can be found in the Financial Resources and                Liquidity section and in notes 11 and                18. |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **•** | Credit                risk is the risk of financial loss arising from a customer or counterparty                failure to meet its contractual obligations. We face credit risk                in our                lending and leasing activities (see the Financial Resources and Liquidity                and Critical Accounting Estimates sections and notes 1, 6, 7 and                20) and                derivative financial instruments activities (see note 18). |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **•** | Market                risk is the potential loss in value of investment and other asset                and                liability portfolios, including financial instruments and residual                values                of leased assets. This risk is caused by changes in market |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | variables,                such as interest and currency exchange rates and equity and commodity                prices. We are exposed to market risk in the normal course of our                business                operations as a result of our ongoing investing and funding activities.                Additional information can be found in the Financial Resources and                Liquidity section and in notes 8 and                18. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Segment      Operations**

----

**Summary      of Operating Segments**

| *(In                millions)*                                                    | **2006** |    | **2005** |   | **2004** |   |
|-----------------------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                                              |     |    |     |   |     |   |
| **Revenues**                                                                      |     |    |     |   |     |   |   |   |   |
| GE                Commercial Finance                                              | $        | 23,792  |     | $      | 20,646   |   | $ | 19,524 |   |
| GE                Money                                                           |     | 21,759  |     |   | 19,416   |   |   | 15,734 |   |
| GE                Industrial                                                      |     | 33,494  |     |   | 32,631   |   |   | 30,722 |   |
| GE                Infrastructure                                                  |     | 47,429  |     |   | 41,803   |   |   | 37,373 |   |
| Total                segment revenues                                             |     | 126,474 |     |   | 114,496  |   |   | 103,353 |   |
| GECS                corporate items and eliminations                              |     | 4,973   |     |   | 5,818    |   |   | 6,570 |   |
| Total                revenues                                                     |     | 131,447 |     |   | 120,314  |   |   | 109,923 |   |
| Less                portion of GE revenues not included in GECS                   |     | (67,845 | )        |   | (62,763  | )      |   | (57,219 | ) |
| Total                revenues in GECS                                             | $        | 63,602  |     | $      | 57,551   |   | $ | 52,704 |   |
|                                                                              |     |    |     |   |     |   |   |   |   |
| **Segment                profit**                                                 |     |    |     |   |     |   |   |   |   |
| GE                Commercial Finance                                              | $        | 5,028   |     | $      | 4,290    |   | $ | 3,570 |   |
| GE                Money                                                           |     | 3,507   |     |   | 3,050    |   |   | 2,520 |   |
| GE                Industrial                                                      |     | 2,694   |     |   | 2,559    |   |   | 1,833 |   |
| GE                Infrastructure                                                  |     | 9,040   |     |   | 7,769    |   |   | 6,797 |   |
| Total                segment profit                                               |     | 20,269  |     |   | 17,668   |   |   | 14,720 |   |
| GECS                corporate items and eliminations                              |     | (178    | )        |   | 515      |   |   | 1,022 |   |
| Less                portion of GE segment profit not included in GECS             |     | (9,596  | )        |   | (8,656   | )      |   | (7,573 | ) |
| Earnings                in GECS from continuing operations                        |     | 10,495  |     |   | 9,527    |   |   | 8,169 |   |
| Earnings                (loss) in GECS from discontinued operations, net of taxes |     | 163     |     |   | (1,950   | )      |   | 559 |   |
| Total                net earnings in GECS                                         | $        | 10,658  |     | $      | 7,577    |   | $ | 8,728 |   |
|                                                                              |     |    |     |   |     |   |   |   |   |

| The                notes to consolidated financial statements are an integral part of                this                summary. |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|

----

**GE      Commercial Finance**

| *(In                millions)*    | **2006** |   | **2005** |   | **2004** |   |
|-----------------------------------|----------|--------|----------|--------|----------|--------|
|                              |     |   |     |   |     |   |   |   |   |
| **Revenues**                      | $        | 23,792 |     | $      | 20,646   |   | $ | 19,524 |   |
|                              |     |   |     |   |     |   |   |   |   |
| **Segment                profit** | $        | 5,028  |     | $      | 4,290    |   | $ | 3,570 |   |

| *December                31 (In millions)* | **2006** |    | **2005** |   |    |   |
|--------------------------------------------|----------|---------|----------|--------|---------|--------|
|                                       |     |    |     |   |    |   |   |   |   |
| **Total                assets**            | $        | 233,536 |     | $      | 190,546 |   |   |   |   |

| *(In                millions)*             | **2006** |   | **2005** |   | **2004** |   |
|--------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                       |     |   |     |   |     |   |   |   |   |
| **Revenues                in GE**          |     |   |     |   |     |   |   |   |   |
| Capital                Solutions           | $        | 12,356 |     | $      | 11,476   |   | $ | 11,503 |   |
| Real                Estate                 |     | 5,020  |     |   | 3,492    |   |   | 3,084 |   |
|                                       |     |   |     |   |     |   |   |   |   |
| **Segment                profit in GE**    |     |   |     |   |     |   |   |   |   |
| Capital                Solutions           | $        | 1,727  |     | $      | 1,515    |   | $ | 1,325 |   |
| Real                Estate                 |     | 1,841  |     |   | 1,282    |   |   | 1,124 |   |
|                                       |     |   |     |   |     |   |   |   |   |
| *December                31 (In millions)* | **2006** |   | **2005** |   |     |   |   |
|                                       |     |   |     |   |     |   |   |   |   |
| **Assets                in GE**            |     |   |     |   |     |   |   |   |   |
| Capital                Solutions           | $        | 94,523 |     | $      | 87,306   |   |   |   |   |
| Real                Estate                 |     | 53,786 |     |   | 35,323   |   |   |   |   |

----

**GE      Money**

| *(In                millions)*                                   | **2006** |    | **2005** |   | **2004** |   |
|------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                             |     |    |     |   |     |   |   |   |   |
| **Revenues**                                                     | $        | 21,759  |     | $      | 19,416   |   | $ | 15,734 |   |
|                                                             |     |    |     |   |     |   |   |   |   |
| **Segment                profit**                                | $        | 3,507   |     | $      | 3,050    |   | $ | 2,520 |   |
|                                                             |     |    |     |   |     |   |   |   |   |
| *December                31* *(In                millions)* | **2006** |    | **2005** |   |     |   |   |
|                                                             |     |    |     |   |     |   |   |   |   |
| **Total                assets**                                  | $        | 190,403 |     | $      | 158,829  |   |   |   |   |

----

**GE      Industrial**

| *(In                millions)*                                    | **2006** |    | **2005** |   | **2004** |   |
|-------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                              |     |    |     |   |     |   |   |   |   |
| **Revenues**                                                      | $        | 33,494  |     | $      | 32,631   |   | $ | 30,722 |   |
| Less                portion of GE Industrial not included in GECS |     | (26,433 | )        |   | (26,004  | )      |   | (24,151 | ) |
| Total                revenues in GECS                             | $        | 7,061   |     | $      | 6,627    |   | $ | 6,571 |   |
|                                                              |     |    |     |   |     |   |   |   |   |
| **Segment                profit**                                 | $        | 2,694   |     | $      | 2,559    |   | $ | 1,833 |   |
| Less                portion of GE Industrial not included in GECS |     | (2,425  | )        |   | (2,362   | )      |   | (1,751 | ) |
| Total                segment profit in GECS                       | $        | 269     |     | $      | 197      |   | $ | 82 |   |
|                                                              |     |    |     |   |     |   |   |   |   |
| **Revenues                in GE**                                 |     |    |     |   |     |   |   |   |   |
| Consumer                & Industrial                          | $        | 14,249  |     | $      | 14,092   |   | $ | 13,767 |   |
| Equipment                Services                                 |     | 7,061   |     |   | 6,627    |   |   | 6,571 |   |
| Plastics                                                          |     | 6,649   |     |   | 6,606    |   |   | 6,066 |   |
|                                                              |     |    |     |   |     |   |   |   |   |
| **Segment                profit in GE**                           |     |    |     |   |     |   |   |   |   |
| Consumer                & Industrial                          | $        | 1,140   |     | $      | 871      |   | $ | 716 |   |
| Equipment                Services                                 |     | 269     |     |   | 197      |   |   | 82 |   |
| Plastics                                                          |     | 674     |     |   | 867      |   |   | 566 |   |

----

**GE      Infrastructure**

| *(In                millions)*                                        | **2006** |    | **2005** |   | **2004** |   |
|-----------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                                  |     |    |     |   |     |   |   |   |   |
| **Revenues**                                                          | $        | 47,429  |     | $      | 41,803   |   | $ | 37,373 |   |
| Less                portion of GE Infrastructure not included in GECS |     | (41,412 | )        |   | (36,759  | )      |   | (33,068 | ) |
| Total                revenues in GECS                                 | $        | 6,017   |     | $      | 5,044    |   | $ | 4,305 |   |
|                                                                  |     |    |     |   |     |   |   |   |   |
| **Segment                profit**                                     | $        | 9,040   |     | $      | 7,769    |   | $ | 6,797 |   |
| Less                portion of GE Infrastructure not included in GECS |     | (7,171  | )        |   | (6,294   | )      |   | (5,822 | ) |
| Total                segment profit in GECS                           | $        | 1,869   |     | $      | 1,475    |   | $ | 975 |   |
|                                                                  |     |    |     |   |     |   |   |   |   |
| **Revenues                in GE**                                     |     |    |     |   |     |   |   |   |   |
| Aviation                                                              | $        | 13,152  |     | $      | 11,904   |   | $ | 11,094 |   |
| Aviation                Financial Services                            |     | 4,177   |     |   | 3,504    |   |   | 3,159 |   |
| Energy                                                                |     | 19,133  |     |   | 16,525   |   |   | 14,586 |   |
| Energy                Financial Services                              |     | 1,664   |     |   | 1,349    |   |   | 972 |   |
| Oil                & Gas                                          |     | 4,340   |     |   | 3,598    |   |   | 3,135 |   |
| Transportation                                                        |     | 4,169   |     |   | 3,577    |   |   | 3,007 |   |
|                                                                  |     |    |     |   |     |   |   |   |   |
| **Segment                profit in GE**                               |     |    |     |   |     |   |   |   |   |
| Aviation                                                              | $        | 2,909   |     | $      | 2,573    |   | $ | 2,238 |   |
| Aviation                Financial Services                            |     | 1,108   |     |   | 764      |   |   | 520 |   |
| Energy                                                                |     | 3,000   |     |   | 2,665    |   |   | 2,543 |   |
| Energy                Financial Services                              |     | 695     |     |   | 646      |   |   | 376 |   |
| Oil                & Gas                                          |     | 548     |     |   | 411      |   |   | 331 |   |
| Transportation                                                        |     | 781     |     |   | 524      |   |   | 516 |   |

----

**Discontinued      Insurance Operations **

| *(In                millions)*                                                    | **2006** |   | **2005** |   | **2004** |   |
|-----------------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                              |     |   |     |   |     |   |   |   |   |
| Earnings                (loss) in GECS from discontinued operations, net of taxes | $        | 163    |     | $      | (1,950   | )      | $ | 559 |   |

----

**Global      Operations**

----

**Financial      Resources and Liquidity**

**Overview      of Financial Position**

| · | During                2006, we substantially completed our insurance exit, which reduced                assets                and liabilities of discontinued operations by $61.1 billion and $49.3                billion, respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | During                2006, we completed the acquisitions of Banque Artesia Nederland N.V.,                Arden Realty, Inc., the custom fleet business of National Australia                Bank                Ltd., and the senior housing portfolios of Formation Capital LLC                at GE                Commercial Finance; and the private-label credit card portfolio of                Hudson’s Bay Company at GE Money. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The                U.S. dollar was weaker at December 31, 2006, than it was at December                31,                2005, increasing the translated levels of our non-U.S. dollar assets                and                liabilities. Overall, on average, the U.S. dollar in 2006 was slightly                stronger than during the comparable 2005 period; stronger in the                first                half and weaker in the second half of the year. Depending on the                timing of                our non-U.S. dollar operations, this resulted in either decreasing                or                increasing the translated levels of our operations as noted in the                preceding Operations section. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Statement      of Financial Position**

**Investment      securities**

----

**Financing      receivables **

----

| *December                31*         | **2006** |   | **2005** |   | **2004** |   |
|--------------------------------------|----------|--------|----------|--------|----------|--------|
|                                 |     |   |     |   |     |   |   |   |   |
| GE                Commercial Finance |     | 1.22   | %        |   | 1.31     | %      |   | 1.40 | % |
| GE                Money              |     | 5.05   |     |   | 5.08     |   |   | 4.85 |   |

**Other      receivables**

**Buildings      and equipment**

----

**Intangible      assets**

**Other      assets**

**Borrowings**

**Exchange      rate and interest rate risks **

| • | It                is our policy to minimize exposure to interest rate changes. We fund                our                financial investments using debt or a combination of debt and hedging                instruments so that the interest rates and terms of our borrowings                match                the expected yields and terms on our assets. To test the effectiveness                of                our positions, we assumed that, on January 1, 2007, interest rates                increased by 100 basis points across the yield curve (a “parallel shift”                in that curve) and further assumed that the increase remained in                place for                2007. We estimated, based on that year-end 2006 portfolio and holding                everything else constant, that our 2007 net earnings would decline                by $0.2                billion. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | It                is our policy to minimize currency exposures and to conduct operations                either within functional currencies or using the protection of hedge                strategies. We analyzed year-end 2006 consolidated currency exposures,                including derivatives designated and effective as hedges, to identify                assets and liabilities denominated in other than their relevant functional                currencies. For such assets and liabilities, we then evaluated the                effects                of a 10% shift in exchange rates between those currencies and the                U.S.                dollar. This analysis indicated that there would be an inconsequential                effect on 2007 earnings of such a shift in exchange                rates. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Statement      of Changes in Shareowner’s Equity **

----

**Overview      of Our Cash Flow from 2004 through 2006**

----

**Contractual      Obligations**

|                                                                      | **Payments                  due by period** |   |
|---------------------------------------------------------------------------|---------------------------------------------|--------|
| *(In                  billions)*                                          | **Total**                                   |   | **2007** |   | **2008-2009** |   | **2010-2011** |   | **2012                  and****thereafter** |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |
| Borrowings                  (note 11)                                     | $                                           | 426.3  |   | $ | 173.3 |   | $ | 97.6 |   |   | $ | 55.3 |   |   | $ | 100.1 |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  on borrowings                                   |                                        | 95.0   |   |   | 17.0 |   |   | 23.0 |   |   |   | 14.0 |   |   |   | 41.0 |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  lease obligations (note 4)                     |                                        | 4.0    |   |   | 0.8 |   |   | 1.3 |   |   |   | 0.8 |   |   |   | 1.1 |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase                  obligations(a)(b)                               |                                        | 35.0   |   |   | 24.0 |   |   | 8.0 |   |   |   | 3.0 |   |   |   | - |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Insurance                  liabilities (note                  12)(c) |                                        | 24.0   |   |   | 2.0 |   |   | 7.0 |   |   |   | 4.0 |   |   |   | 11.0 |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  liabilities(d)                                     |                                        | 18.0   |   |   | 15.0 |   |   | 1.0 |   |   |   | - |   |   |   | 2.0 |   |
|                                                                      |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)  | Included                all take-or-pay arrangements, capital expenditures, contractual                commitments to purchase equipment that will be classified as equipment                leased to others, software acquisition/license commitments and any                contractually required cash payments for acquisitions.                                                                                                                                                                        |   |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | Excluded                funding commitments entered into in the ordinary course of business.                Further information on these commitments and other guarantees is                provided                in note 20.                                                                                                                                                                                                                                                                              |   |
| (c)  | Included                guaranteed investment contracts, structured settlements and single                premium                immediate annuities based on scheduled payouts, as well as those                contracts                with reasonably determinable cash flows such as deferred annuities,                universal life, term life, long-term care, whole life and other life                insurance contracts.                                                                        |   |
| (d)       | Included                an estimate of future expected funding requirements related to our                pension                benefit plans. Because their future cash outflows are uncertain,                the                following non-current liabilities are excluded from the table above:                deferred taxes, derivatives, deferred revenue and other sundry items.                See                notes 13 and 18 for further information on certain of these                items. |   |

**Off-Balance      Sheet Arrangements**

**Debt      Instruments, Guarantees and Covenants**

----

| • | Earnings                and profitability, revenue growth, the breadth and diversity of sources                of                income and return on assets, |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Asset                quality, including delinquency and write-off ratios and reserve                coverage, |
|---------|---------------------------------------------------------------------------------------------------------------|

| • | Funding                and liquidity, including cash generated from operating activities,                leverage ratios such as debt-to-capital, market access, back-up liquidity                from banks and other sources, composition of total debt and interest                coverage, and |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Capital                adequacy, including required capital and tangible leverage                ratios. |
|---------|----------------------------------------------------------------------------------------------------------|

| • | Franchise                strength, including competitive advantage and market conditions and                position, |
|---------|-----------------------------------------------------------------------------------------------------------------------|

| • | Strength                of management, including experience, corporate governance and strategic                thinking, and |
|---------|------------------------------------------------------------------------------------------------------------------------------|

| • | Financial                reporting quality, including clarity, completeness and transparency                of all                financial performance                communications. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Principal      debt conditions**

| • | Swap,                forward and option contracts are required to be executed under                master-netting agreements containing mutual downgrade provisions                that                provide the ability of the counterparty to require assignment or                termination if the long-term credit rating of GECS were to fall below                A-/A3. Had this provision been triggered at December 31, 2006, we                could                have been required to disburse $2.8                billion. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | If                GE Capital’s ratio of earnings to fixed charges, which was 1.64:1 at the                end of 2006, were to deteriorate to 1.10:1, GE has committed to contribute                capital to GE Capital. GE also guaranteed certain issuances of our                subordinated debt having a face amount of $0.8 billion and $1.0 billion                at                December 31, 2006 and 2005,                respectively. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | If                the short-term credit rating of GE Capital or certain consolidated,                liquidating securitization entities discussed further in note 19                were to                be reduced below A-1/P-1, GE Capital would be required to provide                substitute liquidity for those entities or provide funds to retire                the                outstanding commercial paper. The maximum net amount that GE Capital                would                be required to provide in the event of such a downgrade is determined                by                contract, and amounted to $8.0 billion at January 1, 2007. Amounts                related                to non-consolidated SPEs were $0.6                billion. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Under                terms of other agreements in effect at December 31, 2006, specified                downgrades in the credit ratings of GE Capital could cause us to                provide                up to $1.1 billion of funding. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Critical      Accounting Estimates**

----

**Losses      on financing receivables **

**Asset      impairment **

**Investments.**

**Long-lived      assets.**

----

**Real      Estate. **

**Goodwill      and other identified intangible assets.**

**Income      taxes.**

----

**Derivatives      and Hedging. **

**Other      loss contingencies**

**Other      Information**

**New      Accounting Standards**

*Accounting      for Uncertainty in Income Taxes*
*Accounting      for a Change or Projected Change in the Timing of Cash Flows Relating*

----

*to      Income Taxes Generated by a Leveraged Lease Transaction*

*Accounting      for Certain Hybrid Financial Instruments - an Amendment of FASB Statements      No.      133 and 140 *

**Supplemental      Information**

**Financial      Measures that Supplement Generally Accepted Accounting      Principles**

| • | Average                total shareowner’s equity, excluding effects of discontinued                operations |
|---------|---------------------------------------------------------------------------------------------------------------------|

| • | Delinquency                rates on certain financing receivables of the GE Commercial Finance                and GE                Money segments for 2006, 2005 and 2004 |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Average      Total Shareowner’s Equity, Excluding Effects of Discontinued      Operations**

| *December                31**(In                millions)*        | **2006** |   | **2005** |   | **2004** |   | **2003** |   | **2002** |   |
|-------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
|                                                              |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |
| Average                total shareowner’s equity(b)         | $        | 50,769 |     | $      | 54,229   |   | $        | 48,989 |     | $      | 41,980 |   | $ | 31,237 |   |
| Less                the effects of                                |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |
| Cumulative                earnings from                           |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |
| discontinued                operations                            |     | -      |     |   | 2,094    |   |     | 2,985  |     |   | 925 |   |   | 1,007 |   |
| Average                net investment in discontinued             |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |
| operations                                                        |     | 4,008  |     |   | 5,066    |   |     | -      |     |   | - |   |   | - |   |
| Average                total shareowner’s equity, excluding |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |
| effects                of discontinued operations(a)              | $        | 46,761 |     | $      | 47,069   |   | $        | 46,004 |     | $      | 41,055 |   | $ | 30,230 |   |
|                                                              |     |   |     |   |     |   |     |   |     |   |   |   |   |   |   |

| (a)  | Used                for computing return on average shareowner’s equity shown in the Selected                Financial Data section.  |   |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | On                an annual basis, calculated using a five-point average.                                                                   |   |

**Delinquency      Rates on Certain Financing Receivables**

**GE      Commercial Finance**

| *December                31*  | **2006** |   | **2005** |   | **2004** |   |
|------------------------------------|----------|--------|----------|--------|----------|--------|
|                               |     |   |     |   |     |   |
| Managed                            | 1.22     | %      | 1.31     | %      | 1.40     | %      |
| Off-book                           | 0.52     |   | 0.76     |   | 0.90     |   |
| On-book                            | 1.42     |   | 1.53     |   | 1.58     |   |

**GE      Money**

| *December                31*  | **2006** |   | **2005** |   | **2004** |   |
|------------------------------------|----------|--------|----------|--------|----------|--------|
|                               |     |   |     |   |     |   |
| Managed                            | 5.05     | %      | 5.08     | %      | 4.85     | %      |
| Off-book                           | 5.49     |   | 5.28     |   | 5.09     |   |
| On-book                            | 5.01     |   | 5.07     |   | 4.84     |   |

----

**Item      7A. Quantitative and Qualitative Disclosures About Market      Risk.**

**Item      8. Financial Statements and Supplementary Data.**

**Report      of Independent Registered Public Accounting Firm**

*To      the Board of Directors of*

*General      Electric Capital Services, Inc.:*

*Internal      Control—Integrated Framework*

----

*Accounting      for Derivative Instruments and Hedging Activities, *

*Internal      Control—Integrated Framework*
*Internal      Control—Integrated Framework*

----

**General      Electric Capital Services, Inc. and consolidated      affiliates**

**Statement      of Earnings**

| *For                the years ended December 31 (In millions)*                                            | **2006** |   | **2005** |   | **2004** |   |
|-----------------------------------------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                                                      |     |   |     |   |     |   |   |   |   |
| **Revenues**                                                                                              |     |   |     |   |     |   |   |   |   |
| Revenues                from services (note 3)                                                            | $        | 61,021 |     | $      | 54,483   |   | $ | 49,346 |   |
| Sales                of goods                                                                             |     | 2,384  |     |   | 2,528    |   |   | 2,840 |   |
| Commercial                paper interest rate swap adjustment                                             |     | 197    |     |   | 540      |   |   | 518 |   |
| Total                revenues                                                                             |     | 63,602 |     |   | 57,551   |   |   | 52,704 |   |
|                                                                                                      |     |   |     |   |     |   |   |   |   |
| **Costs                and expenses**                                                                     |     |   |     |   |     |   |   |   |   |
| Interest                                                                                                  |     | 18,081 |     |   | 14,223   |   |   | 11,081 |   |
| Operating                and administrative (note 4)                                                      |     | 17,421 |     |   | 16,494   |   |   | 15,794 |   |
| Cost                of goods sold                                                                         |     | 2,204  |     |   | 2,369    |   |   | 2,741 |   |
| Investment                contracts, insurance losses and insurance annuity                benefits  |     | 3,419  |     |   | 3,574    |   |   | 3,303 |   |
| Provision                for losses on financing receivables (note 7)                                     |     | 3,839  |     |   | 3,841    |   |   | 3,888 |   |
| Depreciation                and amortization (note 8)                                                     |     | 6,534  |     |   | 6,036    |   |   | 5,815 |   |
| Minority                interest in net earnings of consolidated affiliates                               |     | 235    |     |   | 202      |   |   | 190 |   |
| Total                costs and expenses                                                                   |     | 51,733 |     |   | 46,739   |   |   | 42,812 |   |
|                                                                                                      |     |   |     |   |     |   |   |   |   |
| **Earnings                from continuing operations before income taxes**                                |     | 11,869 |     |   | 10,812   |   |   | 9,892 |   |
| Provision                for income taxes (note 13)                                                       |     | (1,374 | )        |   | (1,285   | )      |   | (1,723 | ) |
|                                                                                                      |     |   |     |   |     |   |   |   |   |
| **Earnings                from continuing operations**                                                    |     | 10,495 |     |   | 9,527    |   |   | 8,169 |   |
| Earnings                (loss) from discontinued operations, net of taxes (note 2)                        |     | 163    |     |   | (1,950   | )      |   | 559 |   |
| **Net                earnings**                                                                           | $        | 10,658 |     | $      | 7,577    |   | $ | 8,728 |   |
|                                                                                                      |     |   |     |   |     |   |   |   |   |
| **Statement                of Changes in Shareowner’s Equity**                                      |     |   |     |   |     |   |   |   |   |
|                                                                                                      |     |   |     |   |     |   |   |   |   |
| *(In                millions)*                                                                            | **2006** |   | **2005** |   | **2004** |   |
| **Changes                in shareowner’s equity**                (note 15)                          |     |   |     |   |     |   |   |   |   |
| Balance                at January 1                                                                       | $        | 50,812 |     | $      | 54,379   |   | $ | 45,790 |   |
| Dividends                and other transactions with shareowner                                           |     | (9,836 | )        |   | (7,800   | )      |   | (3,003 | ) |
| Changes                other than transactions with shareowner                                            |     |   |     |   |     |   |   |   |   |
| Increase                attributable to net earnings                                                      |     | 10,658 |     |   | 7,577    |   |   | 8,728 |   |
| Investment                securities - net                                                                |     | (160   | )        |   | (591     | )      |   | 481 |   |
| Currency                translation adjustments - net                                                     |     | 2,550  |     |   | (2,817   | )      |   | 2,538 |   |
| Cash                flow hedges - net                                                                     |     | 172    |     |   | 93       |   |   | (46 | ) |
| Benefit                plans - net                                                                        |     | (99    | )        |   | (29      | )      |   | (109 | ) |
| Total                changes other than transactions with shareowner                                      |     | 13,121 |     |   | 4,233    |   |   | 11,592 |   |
| Balance                at December 31                                                                     | $        | 54,097 |     | $      | 50,812   |   | $ | 54,379 |   |
|                                                                                                      |     |   |     |   |     |   |   |   |   |

| The                notes to consolidated financial statements are an integral part of                these                statements. |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|

----

**General      Electric Capital Services, Inc. and consolidated      affiliates**

**Statement      of Financial Position**

| *At                December 31 (In millions, except share amounts)*                                                                                                                                                   | **2006** |    | **2005** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|---------|----------|--------|
|                                                                                                                                                                                                                  |     |    |     |   |   |   |
| **Assets**                                                                                                                                                                                                            |     |    |     |   |   |   |
| Cash                and equivalents                                                                                                                                                                                   | $        | 12,629  |     | $      | 7,130 |   |
| Investment                securities (note 5)                                                                                                                                                                         |     | 47,492  |     |   | 41,710 |   |
| Inventories                                                                                                                                                                                                           |     | 54      |     |   | 159 |   |
| Financing                receivables - net (notes 6 and 7)                                                                                                                                                            |     | 334,232 |     |   | 287,639 |   |
| Other                receivables                                                                                                                                                                                      |     | 21,853  |     |   | 18,625 |   |
| Buildings                and equipment - net (note 8)                                                                                                                                                                 |     | 58,228  |     |   | 51,024 |   |
| Intangible                assets - net (note 9)                                                                                                                                                                       |     | 25,968  |     |   | 23,791 |   |
| Other                assets (note 10)                                                                                                                                                                                 |     | 64,212  |     |   | 49,440 |   |
| Assets                of discontinued operations (note 2)                                                                                                                                                             |     | -       |     |   | 61,066 |   |
| Total                assets                                                                                                                                                                                           | $        | 564,668 |     | $      | 540,584 |   |
|                                                                                                                                                                                                                  |     |    |     |   |   |   |
| **Liabilities                and equity**                                                                                                                                                                             |     |    |     |   |   |   |
| Short-term                borrowings (note 11)                                                                                                                                                                        | $        | 173,316 |     | $      | 157,672 |   |
| Accounts                payable                                                                                                                                                                                       |     | 13,923  |     |   | 13,043 |   |
| Long-term                borrowings (note 11)                                                                                                                                                                         |     | 252,963 |     |   | 204,397 |   |
| Investment                contracts, insurance liabilities and insurance annuity benefits (note                12)                                                                                                    |     | 34,807  |     |   | 33,387 |   |
| Other                liabilities                                                                                                                                                                                      |     | 20,935  |     |   | 16,787 |   |
| Deferred                income taxes (note 13)                                                                                                                                                                        |     | 12,217  |     |   | 12,475 |   |
| Liabilities                of discontinued operations (note 2)                                                                                                                                                        |     | 455     |     |   | 49,763 |   |
| Total                liabilities                                                                                                                                                                                      |     | 508,616 |     |   | 487,524 |   |
|                                                                                                                                                                                                                  |     |    |     |   |   |   |
| Minority                interest in equity of consolidated affiliates (note 14)                                                                                                                                       |     | 1,955   |     |   | 2,248 |   |
|                                                                                                                                                                                                                  |     |    |     |   |   |   |
| Cumulative                preferred stock, $10,000 par value (80,000 shares authorized;51,000                shares issued and held primarily by consolidatedaffiliates                at December 31, 2006 and 2005) |     | 10      |     |   | 10 |   |
| Common                stock, $1,000 par value (1,260 shares authorized at December                31, 2006 and 2005, and 1,064 shares issued and outstanding                at December 31, 2006 and 2005)            |     | 1       |     |   | 1 |   |
| Accumulated                gains (losses) - net                                                                                                                                                                       |     |    |     |   |   |   |
| Investment                securities                                                                                                                                                                                  |     | 1,594   |     |   | 1,754 |   |
| Currency                translation adjustments                                                                                                                                                                       |     | 4,837   |     |   | 2,287 |   |
| Cash                flow hedges                                                                                                                                                                                       |     | (171    | )        |   | (343 | ) |
| Benefit                plans                                                                                                                                                                                          |     | (278    | )        |   | (179 | ) |
| Additional                paid-in capital                                                                                                                                                                             |     | 12,527  |     |   | 12,376 |   |
| Retained                earnings                                                                                                                                                                                      |     | 35,577  |     |   | 34,906 |   |
| Total                shareowner’s equity (note 15)                                                                                                                                                              |     | 54,097  |     |   | 50,812 |   |
| Total                liabilities and equity                                                                                                                                                                           | $        | 564,668 |     | $      | 540,584 |   |
|                                                                                                                                                                                                                  |     |    |     |   |   |   |

| The                sum of accumulated gains (losses) on investment securities, currency                translation adjustments, cash flow hedges and benefit plans constitutes                “Accumulated nonowner changes other than earnings,” as shown in note 15,                and was $5,982 million and $3,519 million at December 31, 2006 and                2005,                respectively.  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| The                notes to consolidated financial statements are an integral part of                this                statement.                                                                                                                                                                                                                                                                                          |   |

----

**General      Electric Capital Services, Inc. and consolidated      affiliates**

**Statement      of Cash Flows**

| *For                the years ended December 31 (In millions)*                                      | **2006** |    | **2005** |   | **2004** |   |
|-----------------------------------------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                                                                |     |    |     |   |     |   |   |   |   |
| **Cash                flows - operating activities**                                                |     |    |     |   |     |   |   |   |   |
| Net                earnings                                                                         | $        | 10,658  |     | $      | 7,577    |   | $ | 8,728 |   |
| Loss                (earnings) from discontinued operations                                         |     | (163    | )        |   | 1,950    |   |   | (559 | ) |
| Adjustments                to reconcile net earnings to cash provided                               |     |    |     |   |     |   |   |   |   |
| from                operating activities                                                            |     |    |     |   |     |   |   |   |   |
| Depreciation                and amortization of buildings and equipment                             |     | 6,534   |     |   | 6,036    |   |   | 5,815 |   |
| Deferred                income taxes                                                                |     | 1,108   |     |   | (653     | )      |   | 226 |   |
| Decrease                (increase) in inventories                                                   |     | (23     | )        |   | 30       |   |   | (9 | ) |
| Increase                (decrease) in accounts payable                                              |     | (1      | )        |   | (397     | )      |   | 2,593 |   |
| Provision                for losses on financing receivables                                        |     | 3,839   |     |   | 3,841    |   |   | 3,888 |   |
| All                other operating activities (note 16)                                             |     | (41     | )        |   | 1,403    |   |   | (167 | ) |
| Cash                from operating activities - continuing operations                               |     | 21,911  |     |   | 19,787   |   |   | 20,515 |   |
| Cash                from (used for) operating activities - discontinued                operations   |     | (2,373  | )        |   | 5,027    |   |   | 5,621 |   |
| **Cash                from operating activities**                                                   |     | 19,538  |     |   | 24,814   |   |   | 26,136 |   |
|                                                                                                |     |    |     |   |     |   |   |   |   |
| **Cash                flows - investing activities**                                                |     |    |     |   |     |   |   |   |   |
| Additions                to buildings and equipment                                                 |     | (13,184 | )        |   | (11,629  | )      |   | (10,665 | ) |
| Dispositions                of buildings and equipment                                              |     | 6,799   |     |   | 6,027    |   |   | 5,839 |   |
| Net                increase in financing receivables (note 16)                                      |     | (41,046 | )        |   | (16,954  | )      |   | (15,280 | ) |
| Proceeds                from sales of discontinued operations                                       |     | 9,022   |     |   | 8,106    |   |   | 3,437 |   |
| Proceeds                from principal business dispositions                                        |     | 386     |     |   | 209      |   |   | 472 |   |
| Payments                for principal businesses purchased                                          |     | (7,299  | )        |   | (7,167   | )      |   | (13,888 | ) |
| All                other investing activities (note 16)                                             |     | (5,555  | )        |   | (2,706   | )      |   | 4,156 |   |
| Cash                used for investing activities - continuing operations                           |     | (50,877 | )        |   | (24,114  | )      |   | (25,929 | ) |
| Cash                used for investing activities - discontinued operations                         |     | (383    | )        |   | (5,733   | )      |   | (7,651 | ) |
| **Cash                used for investing activities**                                               |     | (51,260 | )        |   | (29,847  | )      |   | (33,580 | ) |
|                                                                                                |     |    |     |   |     |   |   |   |   |
| **Cash                flows - financing activities**                                                |     |    |     |   |     |   |   |   |   |
| Net                increase (decrease) in borrowings (maturities of 90 days or                less) |     | 6,461   |     |   | (4,044   | )      |   | 33 |   |
| Newly                issued debt (maturities longer than 90 days) (note 16)                         |     | 88,278  |     |   | 65,054   |   |   | 58,143 |   |
| Repayments                and other reductions (maturities longer                                   |     |    |     |   |     |   |   |   |   |
| than                90 days) (note 16)                                                              |     | (49,253 | )        |   | (49,709  | )      |   | (45,538 | ) |
| Dividends                paid to shareowner                                                         |     | (9,847  | )        |   | (7,816   | )      |   | (3,105 | ) |
| All                other financing activities (note 16)                                             |     | (1,174  | )        |   | (1,128   | )      |   | (3,304 | ) |
| Cash                from financing activities - continuing operations                               |     | 34,465  |     |   | 2,357    |   |   | 6,229 |   |
| Cash                from (used for) financing activities - discontinued                operations   |     | (220    | )        |   | 415      |   |   | 2,309 |   |
| **Cash                from financing activities**                                                   |     | 34,245  |     |   | 2,772    |   |   | 8,538 |   |
|                                                                                                |     |    |     |   |     |   |   |   |   |
| **Increase                (decrease) in cash and equivalents during year**                          |     | 2,523   |     |   | (2,261   | )      |   | 1,094 |   |
| Cash                and equivalents at beginning of year                                            |     | 10,106  |     |   | 12,367   |   |   | 11,273 |   |
| Cash                and equivalents at end of year                                                  |     | 12,629  |     |   | 10,106   |   |   | 12,367 |   |
| Less                cash and equivalents of discontinued operations at end of                year   |     | -       |     |   | 2,976    |   |   | 3,267 |   |
| **Cash                and equivalents of continuing operations at end of                year**      | $        | 12,629  |     | $      | 7,130    |   | $ | 9,100 |   |
|                                                                                                |     |    |     |   |     |   |   |   |   |
| **Supplemental                disclosure of cash flows information**                                |     |    |     |   |     |   |   |   |   |
| Cash                paid during the year for interest                                               | $        | (17,095 | )        | $      | (15,518  | )      | $ | (11,304 | ) |
| Cash                recovered (paid) during the year for income taxes                               |     | (666    | )        |   | (1,425   | )      |   | 922 |   |
|                                                                                                |     |    |     |   |     |   |   |   |   |

| The                notes to consolidated financial statements are an integral part of                this                statement. |
|-------------------------------------------------------------------------------------------------------------------------------------|

----

**General      Electric Capital Services, Inc. and consolidated      affiliates**

**Notes      to Consolidated Financial Statements**

**Note      1. Summary of Significant Accounting Policies**

**Accounting      principles**

**Consolidation**

**Financial      statement presentation **

| • | **Consolidated**                This represents the adding together of all                affiliates. |
|---------|-------------------------------------------------------------------------------------------------------|

| • | **Operating                Segments**                These comprise our four businesses focused on the broad markets they                serve: GE Commercial Finance, GE Money (formerly GE Consumer Finance),                GE                Industrial and GE Infrastructure. For segment reporting purposes,                certain                financial services businesses are included in the industrial operating                segments that actively manage such businesses and report their results                for                internal performance measurement purposes. These include Aviation                Financial Services, Energy Financial Services and Transportation                Finance                reported in the GE Infrastructure segment, and Equipment Services                reported                in the GE Industrial segment. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Sales      of goods **

**Revenues      from services (earned income) **

**Depreciation      and amortization **

----

**Losses      on financing receivables **

----

**Sales      of stock by affiliates**

**Cash      and equivalents **

**Investment      securities **

**Inventories      **

**Intangible      assets **

----

**Investment      contracts, insurance liabilities and insurance annuity      benefits**

**Accounting      change **

*Employers’      Accounting for Defined Benefit Pension and Other Postretirement      Plans*

----

**Note      2. Discontinued Operations**

**Sale      of GE Life**

**Sale      of GE Insurance Solutions**

**Sale      of Genworth**

----

| *(In                  millions)*                                                                             | **2006** |   | **2005** |   | **2004** |   |
|--------------------------------------------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                                                         |     |   |     |   |     |   |   |   |   |
| **Operations**                                                                                               |     |   |     |   |     |   |   |   |   |
| Revenues                  from services                                                                      | $        | 4,916  |     | $      | 17,645   |   | $ | 19,481 |   |
|                                                                                                         |     |   |     |   |     |   |   |   |   |
| Earnings                  (loss) from discontinued operations before minority                  interest      |     |   |     |   |     |   |   |   |   |
| and                  income taxes                                                                            | $        | 382    |     | $      | (1,726   | )      | $ | 1,517 |   |
| Minority                  interest                                                                           |     | -      |     |   | 394      |   |   | 200 |   |
| Earnings                  (loss) from discontinued operations before income taxes                            |     | 382    |     |   | (2,120   | )      |   | 1,317 |   |
| Income                  tax benefit (expense)                                                                |     | (38    | )        |   | 552      |   |   | (422 | ) |
| Earnings                  (loss) from discontinued operations before disposal, net of                  taxes | $        | 344    |     | $      | (1,568   | )      | $ | 895 |   |
|                                                                                                         |     |   |     |   |     |   |   |   |   |
| **Disposal**                                                                                                 |     |   |     |   |     |   |   |   |   |
| Gain                  (loss) on disposal before income taxes                                                 | $        | (75    | )        | $      | 629      |   | $ | (570 | ) |
| Income                  tax benefit (expense)                                                                |     | (106   | )        |   | (1,011   | )      |   | 234 |   |
| Loss                  on disposal, net of taxes                                                              | $        | (181   | )        | $      | (382     | )      | $ | (336 | ) |
|                                                                                                         |     |   |     |   |     |   |   |   |   |
| Earnings                  (loss) from discontinued operations, net of taxes                                  | $        | 163    |     | $      | (1,950   | )      | $ | 559 |   |
|                                                                                                         |     |   |     |   |     |   |   |   |   |

| *December                  31 (In millions)*                                                                 |   |   | **2005** |   |   |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                                                         |   |   |     |   |   |   |   |   |   |
| **Assets**                                                                                                   |   |   |     |   |   |   |   |   |   |
| Cash                  and equivalents                                                                        |   |   |     | $      | 2,976  |   |   |   |   |
| Investment                  securities                                                                       |   |   |     |   | 37,633 |   |   |   |   |
| Other                  receivables                                                                           |   |   |     |   | 13,915 |   |   |   |   |
| Other                                                                                                        |   |   |     |   | 6,542  |   |   |   |   |
| Assets                  of discontinued operations                                                           |   |   |     | $      | 61,066 |   |   |   |   |
|                                                                                                         |   |   |     |   |   |   |   |   |   |
| **Liabilities                  and equity**                                                                  |   |   |     |   |   |   |   |   |   |
| Investment                  contracts, insurance liabilities and insurance annuity                  benefits |   |   |     | $      | 43,378 |   |   |   |   |
| Other                                                                                                        |   |   |     |   | 6,385  |   |   |   |   |
| Liabilities                  of discontinued operations                                                      |   |   |     | $      | 49,763 |   |   |   |   |
|                                                                                                         |   |   |     |   |   |   |   |   |   |
| Total                  accumulated nonowner changes other than earnings                                      |   |   |     | $      | 652    |   |   |   |   |

----

**Note      3. Revenues from Services**

| *(In                millions)*                         | **2006** |   | **2005** |   | **2004** |   |
|--------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                   |     |   |     |   |     |   |   |   |   |
| Interest                on loans                       | $        | 22,568 |     | $      | 20,096   |   | $ | 17,314 |   |
| Equipment                leased to others              |     | 12,940 |     |   | 11,582   |   |   | 10,744 |   |
| Financing                leases                        |     | 4,298  |     |   | 3,990    |   |   | 4,160 |   |
| Fees                                                   |     | 4,229  |     |   | 4,180    |   |   | 3,254 |   |
| Real                estate investments                 |     | 3,138  |     |   | 1,919    |   |   | 1,637 |   |
| Investment                income                       |     | 2,614  |     |   | 2,839    |   |   | 2,428 |   |
| Premiums                earned by insurance activities |     | 2,084  |     |   | 2,333    |   |   | 2,195 |   |
| Associated                companies                    |     | 2,079  |     |   | 1,320    |   |   | 708 |   |
| Gross                securitization gains              |     | 1,199  |     |   | 939      |   |   | 1,195 |   |
| Other                items                             |     | 5,872  |     |   | 5,285    |   |   | 5,711 |   |
| Total                                                  | $        | 61,021 |     | $      | 54,483   |   | $ | 49,346 |   |

**Note      4. Operating and Administrative Expenses**

| *(In                millions)*        | **2006** |   | **2005** |   | **2004** |   |
|---------------------------------------|----------|--------|----------|--------|----------|--------|
|                                  |     |   |     |   |     |   |
| Equipment                for sublease | $        | 405    |     | $      | 385      |   | $ | 383 |   |
| Other                rental expense   |     | 586    |     |   | 608      |   |   | 548 |   |

| *(In                  millions)* |   |     |   |     |   |     |   |     |   |
|----------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
|                             |   |     |   |     |   |     |   |     |   |
| **2007**                         |   | **2008** |   | **2009** |   | **2010** |   | **2011** |   |
| $                                | 757    |     | $      | 681      |   | $        | 617    |     | $      | 463 |   | $ | 370 |   |

----

**Note      5. Investment Securities**

| *December                31 (In millions)*        | **Amortized****cost** |   | **Gross****unrealized****gains** |   | **Gross****unrealized****losses** |   | **Estimated****fair                value** |   |
|---------------------------------------------------|-----------------------|--------|----------------------------------|--------|-----------------------------------|--------|--------------------------------------------|--------|
|                                              |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |
| **2006**                                          |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |
| Debt                                              |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |
| U.S.                corporate                     | $                     | 21,323 |                             | $      | 1,042                             |   | $                                          | (203   | ) | $ | 22,162 |   |
| State                and municipal                |                  | 915    |                             |   | 38                                |   |                                       | (4     | ) |   | 949 |   |
| Mortgage-backed(a)                                |                  | 6,356  |                             |   | 38                                |   |                                       | (46    | ) |   | 6,348 |   |
| Asset-backed                                      |                  | 8,066  |                             |   | 436                               |   |                                       | (23    | ) |   | 8,479 |   |
| Corporate                - non-U.S.               |                  | 1,664  |                             |   | 92                                |   |                                       | (5     | ) |   | 1,751 |   |
| Government                - non-U.S.              |                  | 1,296  |                             |   | 105                               |   |                                       | (3     | ) |   | 1,398 |   |
| U.S.                government and federal agency |                  | 820    |                             |   | 45                                |   |                                       | (6     | ) |   | 859 |   |
| Equity                                            |                  | 4,500  |                             |   | 1,060                             |   |                                       | (14    | ) |   | 5,546 |   |
| Total                                             | $                     | 44,940 |                             | $      | 2,856                             |   | $                                          | (304   | ) | $ | 47,492 |   |
|                                              |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |
| **2005**                                          |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |
| Debt                                              |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |
| U.S.                corporate                     | $                     | 20,578 |                             | $      | 1,317                             |   | $                                          | (339   | ) | $ | 21,556 |   |
| State                and municipal                |                  | 810    |                             |   | 47                                |   |                                       | (2     | ) |   | 855 |   |
| Mortgage-backed(a)                                |                  | 5,748  |                             |   | 44                                |   |                                       | (56    | ) |   | 5,736 |   |
| Asset-backed                                      |                  | 8,433  |                             |   | 205                               |   |                                       | (19    | ) |   | 8,619 |   |
| Corporate                - non-U.S.               |                  | 2,043  |                             |   | 209                               |   |                                       | (10    | ) |   | 2,242 |   |
| Government                - non-U.S.              |                  | 675    |                             |   | 91                                |   |                                       | -      |   |   | 766 |   |
| U.S.                government and federal agency |                  | 803    |                             |   | 61                                |   |                                       | (5     | ) |   | 859 |   |
| Equity                                            |                  | 879    |                             |   | 231                               |   |                                       | (33    | ) |   | 1,077 |   |
| Total                                             | $                     | 39,969 |                             | $      | 2,205                             |   | $                                          | (464   | ) | $ | 41,710 | (b) |
|                                              |                  |   |                             |   |                              |   |                                       |   |   |   |   |   |

| (a)  | Substantially                collateralized by U.S. residential mortgages.                                                                          |   |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | Included                $16 million in 2005 of debt securities related to consolidated,                liquidating securitization entities. See note 19. |   |

----

|                                              | **Less                than 12 months**     |   | **12                months or more** |   |
|---------------------------------------------------|--------------------------------------------|--------|--------------------------------------|--------|
| *December                31 (In millions)*        | **Estimated****fair                value** |   | **Gross****unrealized****losses**    |   | **Estimated****fair                value** |   | **Gross****unrealized****losses** |   |
|                                              |                                       |   |                                 |   |   |   |   |   |   |   |   |   |
| **2006**                                          |                                       |   |                                 |   |   |   |   |   |   |   |   |   |
| Debt                                              |                                       |   |                                 |   |   |   |   |   |   |   |   |   |
| U.S.                corporate                     | $                                          | 2,478  |                                 | $      | (52 | ) | $ | 4,260 |   | $ | (151 | ) |
| State                and municipal                |                                       | 164    |                                 |   | (2 | ) |   | 77 |   |   | (2 | ) |
| Mortgage-backed                                   |                                       | 668    |                                 |   | (4 | ) |   | 1,851 |   |   | (42 | ) |
| Asset-backed                                      |                                       | 1,393  |                                 |   | (15 | ) |   | 674 |   |   | (8 | ) |
| Corporate                - non-U.S.               |                                       | 112    |                                 |   | (3 | ) |   | 93 |   |   | (2 | ) |
| Government                - non-U.S.              |                                       | 33     |                                 |   | (3 | ) |   | - |   |   | - |   |
| U.S.                government and federal agency |                                       | 66     |                                 |   | (1 | ) |   | 247 |   |   | (5 | ) |
| Equity                                            |                                       | 34     |                                 |   | (12 | ) |   | 3,894 |   |   | (2 | ) |
| Total                                             | $                                          | 4,948  |                                 | $      | (92 | ) | $ | 11,096 |   | $ | (212 | ) |
|                                              |                                       |   |                                 |   |   |   |   |   |   |   |   |   |
| **2005**                                          |                                       |   |                                 |   |   |   |   |   |   |   |   |   |
| Debt                                              |                                       |   |                                 |   |   |   |   |   |   |   |   |   |
| U.S.                corporate                     | $                                          | 3,633  |                                 | $      | (131 | ) | $ | 2,584 |   | $ | (208 | ) |
| State                and municipal                |                                       | 77     |                                 |   | (2 | ) |   | - |   |   | - |   |
| Mortgage-backed                                   |                                       | 1,858  |                                 |   | (22 | ) |   | 1,190 |   |   | (34 | ) |
| Asset-backed                                      |                                       | 1,494  |                                 |   | (10 | ) |   | 383 |   |   | (9 | ) |
| Corporate                - non-U.S.               |                                       | 221    |                                 |   | (8 | ) |   | 53 |   |   | (2 | ) |
| U.S.                government and federal agency |                                       | 297    |                                 |   | (5 | ) |   | - |   |   | - |   |
| Equity                                            |                                       | 76     |                                 |   | (24 | ) |   | 31 |   |   | (9 | ) |
| Total                                             | $                                          | 7,656  |                                 | $      | (202 | ) | $ | 4,241 |   | $ | (262 | ) |

**Contractual      Maturities of our Investment in Debt Securities (Excluding Mortgage-Backed      and      Asset-Backed Securities)**

| *(In                millions)* | **Amortized****cost** |   | **Estimated****fair                value** |   |
|--------------------------------|-----------------------|--------|--------------------------------------------|--------|
|                           |                  |   |                                       |   |   |   |
| Due                in          |                  |   |                                       |   |   |   |
| 2007                           | $                     | 1,832  |                                       | $      | 1,826 |   |
| 2008-2011                      |                  | 4,766  |                                       |   | 4,784 |   |
| 2012-2016                      |                  | 3,470  |                                       |   | 3,545 |   |
| 2017                and later  |                  | 15,950 |                                       |   | 16,964 |   |

----

| *(In                millions)*               | **2006** |   | **2005** |   | **2004** |   |
|----------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                         |     |   |     |   |     |   |   |   |   |
| Gains                                        | $        | 313    |     | $      | 509      |   | $ | 371 |   |
| Losses,                including impairments |     | (181   | )        |   | (132     | )      |   | (149 | ) |
| Net                                          | $        | 132    |     | $      | 377      |   | $ | 222 |   |

**Note      6. Financing Receivables (investments in loans and financing      leases)**

| *December                31 (In millions)*                            | **2006** |    | **2005** |   |
|-----------------------------------------------------------------------|----------|---------|----------|--------|
|                                                                  |     |    |     |   |   |   |
| Loans,                net of deferred income                          | $        | 270,343 |     | $      | 227,923 |   |
| Investment                in financing leases, net of deferred income |     | 68,569  |     |   | 64,309 |   |
|                                                                  |     | 338,912 |     |   | 292,232 |   |
| Less                allowance for losses (note 7)                     |     | (4,680  | )        |   | (4,593 | ) |
| Financing                receivables - net                            | $        | 334,232 |     | $      | 287,639 |   |

| *December                31 (In millions)*                            | **2006** |   | **2005** |   |
|-----------------------------------------------------------------------|----------|--------|----------|--------|
|                                                                  |     |   |     |   |   |   |
| Loans,                net of deferred income                          | $        | 11,399 |     | $      | 15,868 |   |
| Investment                in financing leases, net of deferred income |     | 134    |     |   | 769 |   |
|                                                                  |     | 11,533 |     |   | 16,637 |   |
| Less                allowance for losses                              |     | (24    | )        |   | (22 | ) |
| Financing                receivables - net                            | $        | 11,509 |     | $      | 16,615 |   |

----

| *December                31 (In millions)*               | **2006** |    | **2005** |   |
|----------------------------------------------------------|----------|---------|----------|--------|
|                                                     |     |    |     |   |   |   |
| **GE                Commercial Finance**                 |     |    |     |   |   |   |
| Equipment                and leasing                     | $        | 76,057  |     | $      | 70,851 |   |
| Commercial                and industrial                 |     | 49,222  |     |   | 41,402 |   |
| Real                estate                               |     | 27,944  |     |   | 19,555 |   |
|                                                     |     | 153,223 |     |   | 131,808 |   |
|                                                     |     |    |     |   |   |   |
| **GE                Money**                              |     |    |     |   |   |   |
| Non-U.S.                residential mortgages            |     | 58,237  |     |   | 46,205 |   |
| Non-U.S.                installment and revolving credit |     | 36,279  |     |   | 31,849 |   |
| U.S.                installment and revolving credit     |     | 29,007  |     |   | 21,963 |   |
| Non-U.S.                auto                             |     | 25,088  |     |   | 22,803 |   |
| Other                                                    |     | 8,059   |     |   | 7,286 |   |
|                                                     |     | 156,670 |     |   | 130,106 |   |
|                                                     |     |    |     |   |   |   |
| **GE                Infrastructure**(a)(b)               |     | 21,200  |     |   | 19,124 |   |
|                                                     |     |    |     |   |   |   |
| **Other**(c)                                             |     | 7,819   |     |   | 11,194 |   |
|                                                     |     | 338,912 |     |   | 292,232 |   |
| Less                allowance for losses                 |     | (4,680  | )        |   | (4,593 | ) |
| Total                                                    | $        | 334,232 |     | $      | 287,639 |   |
|                                                     |     |    |     |   |   |   |

| (a)   | Included                loans and financing leases of $11,165 million and $11,192 million                at                December 31, 2006 and 2005, respectively, related to commercial aircraft                at Aviation Financial Services and loans and financing leases of                $7,574                million and $5,419 million at December 31, 2006 and 2005, respectively,                related to Energy Financial Services.  |   |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)        | Included                only portions of the segment that are financial services                businesses.                                                                                                                                                                                                                                                                                                                                            |   |
| (c)             | Included                loans and financing leases of $6,853 million and $10,160 million                at                December 31, 2006 and 2005, respectively, related to certain consolidated,                liquidating securitization entities.                                                                                                                                                                                                    |   |

----

**Net      Investment in Financing Leases**

|                                              | **Total                financing leases** |    | **Direct                financing leases**(a) |   | **Leveraged                leases**(b) |   |
|---------------------------------------------------|-------------------------------------------|---------|-----------------------------------------------|--------|----------------------------------------|--------|
| *December                31 (In millions)*        | **2006**                                  |    | **2005**                                      |   | **2006**                               |   | **2005** |   | **2006** |   | **2005** |   |
|                                              |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                minimum lease payments       |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| receivable                                        | $                                         | 88,598  |                                          | $      | 86,436                                 |   | $ | 64,637 |   | $ | 60,594 |   | $ | 23,961 |   | $ | 25,842 |   |
| Less                principal and interest on     |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| third-party                nonrecourse debt       |                                      | (17,309 | )                                             |   | (19,061                                | )      |   | - |   |   | - |   |   | (17,309 | ) |   | (19,061 | ) |
| Net                rentals receivable             |                                      | 71,289  |                                          |   | 67,375                                 |   |   | 64,637 |   |   | 60,594 |   |   | 6,652 |   |   | 6,781 |   |
| Estimated                unguaranteed residual    |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| value                of leased assets             |                                      | 10,062  |                                          |   | 9,379                                  |   |   | 7,068 |   |   | 6,260 |   |   | 2,994 |   |   | 3,119 |   |
| Less                deferred income               |                                      | (12,782 | )                                             |   | (12,445                                | )      |   | (9,634 | ) |   | (9,305 | ) |   | (3,148 | ) |   | (3,140 | ) |
| Investment                in financing leases,    |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                of deferred income             |                                      | 68,569  |                                          |   | 64,309                                 |   |   | 62,071 |   |   | 57,549 |   |   | 6,498 |   |   | 6,760 |   |
| Less                amounts to arrive at net      |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| investment                                        |                                      |    |                                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance                for losses               |                                      | (392    | )                                             |   | (525                                   | )      |   | (370 | ) |   | (380 | ) |   | (22 | ) |   | (145 | ) |
| Deferred                taxes                     |                                      | (8,314  | )                                             |   | (8,037                                 | )      |   | (3,410 | ) |   | (3,495 | ) |   | (4,904 | ) |   | (4,542 | ) |
| Net                investment in financing leases | $                                         | 59,863  |                                          | $      | 55,747                                 |   | $ | 58,291 |   | $ | 53,674 |   | $ | 1,572 |   | $ | 2,073 |   |
|                                              |                                      |

| (a)   | Included                $654 million and $475 million of initial direct costs on direct financing                leases at December 31, 2006 and 2005, respectively.                                                                                                                           |   |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)             | Included                pre-tax income of $306 million and $248 million and income tax of                $115                million and $96 million during 2006 and 2005, respectively. Net investment                credits recognized during 2006 and 2005 were                inconsequential. |   |

**Contractual      Maturities**

| *(In                millions)* | **Total****loans** |    | **Net                rentals****receivable** |   |
|--------------------------------|--------------------|---------|----------------------------------------------|--------|
|                           |               |    |                                         |   |   |   |
| Due                in          |               |    |                                         |   |   |   |
| 2007                           | $                  | 89,651  |                                         | $      | 18,422 |   |
| 2008                           |               | 33,413  |                                         |   | 15,094 |   |
| 2009                           |               | 25,731  |                                         |   | 11,637 |   |
| 2010                           |               | 14,759  |                                         |   | 7,860 |   |
| 2011                           |               | 17,893  |                                         |   | 5,244 |   |
| 2012                and later  |               | 88,896  |                                         |   | 13,032 |   |
| Total                          | $                  | 270,343 |                                         | $      | 71,289 |   |

----

| *December                31 (In millions)*              | **2006** |   | **2005** |   |
|---------------------------------------------------------|----------|--------|----------|--------|
|                                                    |     |   |     |   |
| Loans                requiring allowance for losses     | $        | 1,346  |     | $      | 1,479 |   |
| Loans                expected to be fully recoverable   |     | 497    |     |   | 451 |   |
|                                                    | $        | 1,843  |     | $      | 1,930 |   |
|                                                    |     |   |     |   |   |   |
| Allowance                for losses                     | $        | 446    |     | $      | 627 |   |
| Average                investment during year           |     | 1,860  |     |   | 2,118 |   |
| Interest                income earned while impaired(a) |     | 34     |     |   | 46 |   |
|                                                    |     |   |     |   |   |   |

| (a)  | Recognized                principally on cash basis. |   |
|-----------|------------------------------------------------------|--------|

**Note      7. Allowance for Losses on Financing Receivables**

| *(In                millions)*                     | **2006** |   | **2005** |   | **2004** |   |
|----------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                               |     |   |     |   |     |   |
| **Balance                at January 1**            |     |   |     |   |     |   |   |   |   |
| GE                Commercial Finance               | $        | 1,110  |     | $      | 1,562    |   | $ | 1,952 |   |
| GE                Money                            |     | 3,234  |     |   | 3,473    |   |   | 3,984 |   |
| GE                Infrastructure(a)                |     | 220    |     |   | 583      |   |   | 293 |   |
| Other                                              |     | 29     |     |   | 30       |   |   | 27 |   |
|                                               |     | 4,593  |     |   | 5,648    |   |   | 6,256 |   |
|                                               |     |   |     |   |     |   |   |   |   |
| **Provision                charged to operations** |     |   |     |   |     |   |   |   |   |
| GE                Commercial Finance               |     | 121    |     |   | 293      |   |   | 327 |   |
| GE                Money                            |     | 3,767  |     |   | 3,337    |   |   | 3,219 |   |
| GE                Infrastructure(a)                |     | (64    | )        |   | 210      |   |   | 325 |   |
| Other                                              |     | 15     |     |   | 1        |   |   | 17 |   |
|                                               |     | 3,839  |     |   | 3,841    |   |   | 3,888 |   |
|                                               |     |   |     |   |     |   |   |   |   |
| **Other                reductions, net**           |     | (5     | )        |   | (487     | )      |   | (74 | ) |
|                                               |     |   |     |   |     |   |   |   |   |
| **Gross                write-offs**                |     |   |     |   |     |   |   |   |   |
| GE                Commercial Finance               |     | (558   | )        |   | (892     | )      |   | (928 | ) |
| GE                Money                            |     | (4,773 | )        |   | (4,447   | )      |   | (4,423 | ) |
| GE                Infrastructure(a)                |     | (112   | )        |   | (572     | )      |   | (27 | ) |
| Other                                              |     | (34    | )        |   | (48      | )      |   | (74 | ) |
|                                               |     | (5,477 | )        |   | (5,959   | )      |   | (5,452 | ) |

----

| *(In                millions)*            | **2006** |   | **2005** |   | **2004** |   |
|-------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                      |     |   |     |   |     |   |   |   |   |
| **Recoveries**                            |     |   |     |   |     |   |   |   |   |
| GE                Commercial Finance      |     | 188    |     |   | 180      |   |   | 161 |   |
| GE                Money                   |     | 1,533  |     |   | 1,359    |   |   | 846 |   |
| GE                Infrastructure(a)       |     | -      |     |   | -        |   |   | 2 |   |
| Other                                     |     | 9      |     |   | 11       |   |   | 21 |   |
|                                      |     | 1,730  |     |   | 1,550    |   |   | 1,030 |   |
|                                      |     |   |     |   |     |   |   |   |   |
| **Balance                at December 31** |     |   |     |   |     |   |   |   |   |
| GE                Commercial Finance      |     | 893    |     |   | 1,110    |   |   | 1,562 |   |
| GE                Money                   |     | 3,715  |     |   | 3,234    |   |   | 3,473 |   |
| GE                Infrastructure(a)       |     | 44     |     |   | 220      |   |   | 583 |   |
| Other                                     |     | 28     |     |   | 29       |   |   | 30 |   |
| Total                                     | $        | 4,680  |     | $      | 4,593    |   | $ | 5,648 |   |
|                                      |     |   |     |   |     |   |   |   |   |

| (a) | Included                only portions of the segment that are financial services                businesses. |   |
|-----|-------------------------------------------------------------------------------------------------------------|--------|

**Selected      Financing Receivables Ratios**

| *December                31*                                                                                      | **2006** |   |   | **2005** |   |
|-------------------------------------------------------------------------------------------------------------------|----------|--------|--------|----------|--------|
|                                                                                                              |     |   |   |     |   |
| **Allowance                for losses on financing receivables as a percentage of total financing**               |     |   |   |     |   |
| **receivables**                                                                                                   |     |   |   |     |   |
| GE                Commercial Finance                                                                              | 0.58     | %      |   | 0.84     | %      |
| GE                Money                                                                                           | 2.37     |   |   | 2.49     |   |
| GE                Infrastructure(a)                                                                               | 0.21     |   |   | 1.15     |   |
| Other                                                                                                             | 0.36     |   |   | 0.26     |   |
| Total                                                                                                             | 1.38     |   |   | 1.57     |   |
|                                                                                                              |     |   |   |     |   |
| **Nonearning                financing receivables as a percentage of total financing                receivables** |     |   |   |     |   |
| GE                Commercial Finance                                                                              | 1.0      | %      |   | 1.0      | %      |
| GE                Money                                                                                           | 2.1      |   |   | 2.1      |   |
| GE                Infrastructure(a)                                                                               | -        |   |   | 0.1      |   |
| Other                                                                                                             | 1.1      |   |   | 0.7      |   |
| Total                                                                                                             | 1.5      |   |   | 1.4      |   |
|                                                                                                              |     |   |   |     |   |

| (a) | Included                only portions of the segment that are financial services                businesses. |
|-----|-------------------------------------------------------------------------------------------------------------|

----

**Note      8. Buildings and Equipment**

| *December                31 (Dollars in millions)* | Estimatedusefullives-new(years) |   | **2006** |   | **2005** |   |
|----------------------------------------------------|---------------------------------|--------|----------|--------|----------|--------|
|                                               |                            |   |     |   |     |   |   |   |
| **Original                cost**(a)                |                            |   |     |   |     |   |   |   |
| Land,                buildings and equipment       | 1-40                            | (b)    | $        | 5,447  |     | $      | 5,543 |   |
| Equipment                leased to others          |                            |   |     |   |     |   |   |   |
| Aircraft                                           | 20                              |   |     | 36,146 |     |   | 32,941 |   |
| Vehicles                                           | 1-14                            |   |     | 26,937 |     |   | 23,208 |   |
| Mobile                and modular space            | 12-25                           |   |     | 4,059  |     |   | 2,889 |   |
| Railroad                rolling stock              | 5-36                            |   |     | 3,509  |     |   | 3,327 |   |
| Construction                and manufacturing      | 2-25                            |   |     | 1,932  |     |   | 1,609 |   |
| All                other                           | 2-33                            |   |     | 2,771  |     |   | 2,834 |   |
| Total                                              |                            |   | $        | 80,801 |     | $      | 72,351 |   |
|                                               |                            |   |     |   |     |   |   |   |
| **Net                carrying value**(a)           |                            |   |     |   |     |   |   |   |
| Land,                buildings and equipment       |                            |   | $        | 3,012  |     | $      | 3,116 |   |
| Equipment                leased to others          |                            |   |     |   |     |   |   |   |
| Aircraft(c)                                        |                            |   |     | 29,886 |     |   | 27,116 |   |
| Vehicles                                           |                            |   |     | 17,132 |     |   | 14,064 |   |
| Mobile                and modular space            |                            |   |     | 2,546  |     |   | 1,496 |   |
| Railroad                rolling stock              |                            |   |     | 2,395  |     |   | 2,188 |   |
| Construction                and manufacturing      |                            |   |     | 1,291  |     |   | 1,088 |   |
| All                other                           |                            |   |     | 1,966  |     |   | 1,956 |   |
| Total                                              |                            |   | $        | 58,228 |     | $      | 51,024 |   |
|                                               |                            |   |     |   |     |   |   |   |

| (a)  | Included                $1,763 million and $1,935 million of original cost of assets leased                to GE                with accumulated amortization of $293 million and $298 million at                December                31, 2006 and 2005, respectively.                                                                                                                                                         |   |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | Estimated                useful lives exclude land.                                                                                                                                                                                                                                                                                                                                                                               |   |
| (c)       | The                Aviation Financial Services business of GE Infrastructure recognized                impairment losses of $51 million in 2006 and $295 million in 2005                recorded                in the caption “Depreciation and amortization” in the Statement of                Earnings to reflect adjustments to fair value based on current market                values from independent appraisers. |   |

| *(In                millions)* |   |   |   |
|--------------------------------|--------|--------|--------|
|                           |   |   |   |
| Due                in          |   |   |   |
| 2007                           | $      | 8,253  |   |
| 2008                           |   | 7,013  |   |
| 2009                           |   | 5,744  |   |
| 2010                           |   | 4,550  |   |
| 2011                           |   | 3,322  |   |
| 2012                and later  |   | 9,647  |   |
| Total                          | $      | 38,529 |   |

----

**Note      9. Intangible Assets**

| *December                31 (In millions)*               | **2006** |   | **2005** |   |
|----------------------------------------------------------|----------|--------|----------|--------|
|                                                     |     |   |     |   |   |   |
| Goodwill                                                 | $        | 22,754 |     | $      | 21,337 |   |
| Intangible                assets subject to amortization |     | 3,214  |     |   | 2,454 |   |
| Total                                                    | $        | 25,968 |     | $      | 23,791 |   |

|                                            | **2006**                        |   |
|-------------------------------------------------|---------------------------------|--------|
| *(In                millions)*                  | **GE****Commercial****Finance** |   | **GE****Money** |   | **GE****Industrial**(a) |   | **GE****Infrastructure**(a) |   | **Total** |   |
|                                            |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                January 1                | $                               | 10,621 |   |   | $ | 9,184 |   |   | $ | 1,406 |   |   | $ | 126 |   |   | $ | 21,337 |   |
| Acquisitions/purchase                accounting |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustments                                     |                            | 603    |   |   |   | 309 |   |   |   | (37 | ) |   |   | 39 |   |   |   | 914 |   |
| Currency                exchange and other      |                            | 91     |   |   |   | 352 |   |   |   | 61 |   |   |   | (1 | ) |   |   | 503 |   |
| Balance                December 31              | $                               | 11,315 |   |   | $ | 9,845 |   |   | $ | 1,430 |   |   | $ | 164 |   |   | $ | 22,754 |   |

|                                            | **2005**                        |   |
|-------------------------------------------------|---------------------------------|--------|
| *(In                millions)*                  | **GE****Commercial****Finance** |   | **GE****Money** |   | **GE****Industrial**(a) |   | **GE****Infrastructure**(a) |   | **Total** |   |
|                                            |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                January 1                | $                               | 10,141 |   |   | $ | 9,860 |   |   | $ | 1,459 |   |   | $ | 130 |   |   | $ | 21,590 |   |
| Acquisitions/purchase                accounting |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| adjustments                                     |                            | 766    |   |   |   | (24 | ) |   |   | (2 | ) |   |   | (4 | ) |   |   | 736 |   |
| Currency                exchange and other      |                            | (286   | ) |   |   | (652 | ) |   |   | (51 | ) |   |   | - |   |   |   | (989 | ) |
| Balance                December 31              | $                               | 10,621 |   |   | $ | 9,184 |   |   | $ | 1,406 |   |   | $ | 126 |   |   | $ | 21,337 |   |
|                                            |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Included                only portions of the segment that are financial services                businesses. |   |
|-----|-------------------------------------------------------------------------------------------------------------|--------|

----

**Intangible      Assets Subject to Amortization**

|                                       | **2006**                        |   | **2005**                        |   |
|--------------------------------------------|---------------------------------|--------|---------------------------------|--------|
| *December                31 (In millions)* | **Gross****carrying****amount** |   | **Accumulated****amortization** |   | **Net** |   | **Gross****carrying****amount** |   | **Accumulated****amortization** |   | **Net** |   |
|                                       |                            |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Patents,                licenses and       |                            |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| trademarks                                 |                            | $      | 467                             |   |   | $ | (302 | ) |   | $ | 165 |   |   | $ | 497 |   |   | $ | (272 | ) |   | $ | 225 |   |
| Capitalized                software        |                            |   | 1,684                           |   |   |   | (981 | ) |   |   | 703 |   |   |   | 1,477 |   |   |   | (798 | ) |   |   | 679 |   |
| All                other                   |                            |   | 3,591                           |   |   |   | (1,245 | ) |   |   | 2,346 |   |   |   | 2,565 |   |   |   | (1,015 | ) |   |   | 1,550 |   |
| Total                                      |                            | $      | 5,742                           |   |   | $ | (2,528 | ) |   | $ | 3,214 |   |   | $ | 4,539 |   |   | $ | (2,085 | ) |   | $ | 2,454 |   |

**Note      10. Other Assets**

| *December                31 (In millions)* | **2006** |   | **2005** |   |
|--------------------------------------------|----------|--------|----------|--------|
|                                       |     |   |     |   |   |   |
| Investments                                |     |   |     |   |   |   |
| Real                estate(a)              | $        | 27,252 |     | $      | 15,708 |   |
| Assets                held for sale(b)     |     | 12,524 |     |   | 8,574 |   |
| Associated                companies        |     | 12,053 |     |   | 13,481 |   |
| Cost                method(c)              |     | 2,348  |     |   | 2,280 |   |
| Other                                      |     | 931    |     |   | 1,330 |   |
|                                       |     | 55,108 |     |   | 41,373 |   |
|                                       |     |   |     |   |   |   |
| Derivative                instruments      |     | 1,982  |     |   | 1,556 |   |
| Advances                to suppliers       |     | 1,714  |     |   | 1,762 |   |
| Deferred                acquisition costs  |     | 1,380  |     |   | 1,471 |   |
| Other                                      |     | 4,028  |     |   | 3,278 |   |
| Total(d)                                   | $        | 64,212 |     | $      | 49,440 |   |
|                                       |     |   |     |   |   |   |

| (a)  | Our                investment in real estate consisted principally of two categories:                real                estate held for investment and equity method investments. Both categories                contained a wide range of properties including the following at December                31, 2006: office buildings (54%), apartment buildings (16%), retail                facilities (10%), industrial properties (5%), parking facilities                (4%),                franchise properties (2%) and other (9%). At December 31, 2006,                investments were located in North America (39%), Europe (37%) and                Asia                (24%).                                                                                                                                                                                                                                      |   |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | Assets                were classified as held for sale on the date a decision was made                to                dispose of them through sale, securitization or other means. Such                assets                consisted primarily of real estate properties and mortgage and credit                card                receivables, and were accounted for at the lower of carrying amount                or                estimated fair value less costs to sell.                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| (c)  | The                fair value of and unrealized loss on those investments in a continuous                loss position for less than 12 months in 2006 were $113 million and                $25                million, respectively. The fair value of and unrealized loss on those                investments in a continuous loss position for 12 months or more in                2006                were $38 million and $8 million, respectively. The fair value of                and                unrealized loss on those investments in a continuous loss position                for                less than 12 months in 2005 were $100 million and $31 million,                respectively. The fair value of and unrealized loss on those investments                in a continuous loss position for 12 months or more in 2005 were                $22                million and $9 million, respectively.  |   |
| (d)       | Included                $98 million in 2006 and $1,235 million in 2005 related to consolidated,                liquidating securitization entities. See note 19.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |

----

**Note      11. Borrowings**

**Short-Term      Borrowings**

|                                                   | **2006** |    | **2005**     |   |
|--------------------------------------------------------|----------|---------|--------------|--------|
|                                                   |     |    | Average      |   |   |   | Average |   |
| *December                31 (Dollars in millions)*     | Amount   |    | rate         | (a)    | Amount |   | rate | (a) |
|                                                   |     |    |         |   |   |   |   |   |
| Commercial                paper                        |     |    |    |   |   |   |   |   |   |   |
| U.S.                                                   |     |    |         |   |   |   |   |   |   |   |
| Unsecured                                              | $        | 67,423  |         | 5.37   | % | $ | 67,643 |   | 4.30 | % |
| Asset-backed(b)                                        |     | 6,430   |         | 5.35   |   |   | 9,267 |   | 4.21 |   |
| Non-U.S.                                               |     | 26,328  |         | 4.38   |   |   | 20,456 |   | 3.47 |   |
| Current                portion of long-term debt(c)(d) |     | 44,553  |         | 4.86   |   |   | 41,792 |   | 4.05 |   |
| GE                Interest Plus notes(e)               |     | 9,161   |         | 5.43   |   |   | 7,708 |   | 4.35 |   |
| Other                                                  |     | 19,421  |         |   |   |   | 10,806 |   |   |   |
| Total                                                  | $        | 173,316 |         |   |   | $ | 157,672 |   |   |   |
|                                                   |     |    |         |   |   |   |   |   |

| (a)  | Based                on year-end balances and year-end local currency interest rates.                Current                portion of long-term debt included the effects of related interest                rate                and currency swaps, if any, directly associated with the original                debt                issuance.   |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Entirely                obligations of consolidated, liquidating securitization entities.                See note                19.                                                                                                                                                                                                               |
| (c)       | Included                short-term borrowings by consolidated, liquidating securitization                entities                of $697 million at December 31, 2005, which matured in 2006. See                note                19.                                                                                                           |
| (d)  | Included                $250 million of subordinated notes guaranteed by GE at December 31,                2005,                which matured in 2006.                                                                                                                                                                                             |
| (e)       | Entirely                variable denomination floating rate                notes.                                                                                                                                                                                                                                                                       |

**Long-Term      Borrowings**

|                                               |  2006 |   |       |    |
|----------------------------------------------------|------------|--------|------------|---------|
|                                               | Average    |   |       |    |   |   |   |   |
| *December                31 (Dollars in millions)* | rate       | (a)    | Maturities |    | **2006** |   | **2005** |   |
|                                               |       |   |       |    |   |   |   |   |
| Senior                notes                        |       |   |       |    |   |   |   |   |   |   |
| Unsecured                                          | 4.95       | %      | 2008-2055  |    | $ | 235,952 |   | $ | 180,546 |   |
| Asset-backed(b)                                    | 5.83       |   | 2008-2035  |    |   | 5,810 |   |   | 6,845 |   |
| Extendible                notes                    | 5.32       |   | 2009-2011  |    |   | 6,000 |   |   | 14,022 |   |
| Subordinated                notes(c)               | 5.92       |   | 2009-2066  |    |   | 5,201 |   |   | 2,984 |   |
| Total                                              |       |   | $          | 252,963 |   | $ | 204,397 |   |
|                                               |       |   |       |    |   |   |   |   |

| (a)  | Based                on year-end balances and year-end local currency interest rates,                including                the effects of related interest rate and currency swaps, if any,                directly                associated with the original debt issuance.  |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Included                $4,684 million and $6,845 million of asset-backed senior notes, issued                by                consolidated, liquidating securitization entities at December 31,                2006 and                2005, respectively. See note 19.          |
| (c)       | Included                $750 million of subordinated notes guaranteed by GE at December 31,                2006                and 2005.                                                                                                                                                |

----

**Liquidity      **

| *(In                millions)* |   |     |   |     |   |     |   |     |   |
|--------------------------------|--------|----------|--------|----------|--------|----------|--------|----------|--------|
|                           |   |     |   |     |   |     |   |     |   |
| **2007**                       |   | **2008** |   | **2009** |   | **2010** |   | **2011** |   |
|                           |   |     |   |     |   |     |   |     |   |
| $                              | 44,553 | (a)      | $      | 53,431   | (b)    | $        | 44,144 |     | $      | 34,282 |   | $ | 21,062 |   |
|                           |   |     |   |     |   |     |   |     |   |   |   |   |   |   |

| (a)  | Floating                rate extendible notes of $256 million are due in 2007, but are extendible                at the option of the investors to a final maturity in 2008. Fixed                and                floating rate notes of $975 million contain put options with exercise                dates in 2007, and which have final maturity dates in 2008 ($350                million),                2009 ($100 million) and beyond 2012 ($525 million).  |   |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | Floating                rate extendible notes of $6,000 million are due in 2008, of which                $2,000                million are extendible at the option of the investors to a final                maturity                in 2009, and $4,000 million are extendible to a final maturity in                2011.                                                                                                                                                |   |

**Interest      rate and currency risk**

*Accounting      for Derivative Instruments and Hedging Activities*

**Derivative      Fair Values by Activity/Instrument**

| *December                31 (In millions)* | **2006** |   | **2005** |   |
|--------------------------------------------|----------|--------|----------|--------|
|                                       |     |   |     |   |   |   |
| Cash                flow hedges            | $        | 763    |     | $      | 726 |   |
| Fair                value hedges           |     | (147   | )        |   | (39 | ) |
| Total                                      | $        | 616    |     | $      | 687 |   |
|                                       |     |   |     |   |   |   |
| Interest                rate swaps         | $        | (860   | )        | $      | (423 | ) |
| Currency                swaps              |     | 1,476  |     |   | 1,110 |   |
| Total                                      | $        | 616    |     | $      | 687 |   |

----

**Note      12. Investment Contracts, Insurance Liabilities and Insurance Annuity      Benefits**

| *December                31 (In millions)*                  | **2006** |   | **2005** |   |
|-------------------------------------------------------------|----------|--------|----------|--------|
|                                                        |     |   |     |   |
| Investment                contracts                         | $        | 5,089  |     | $      | 6,034 |   |
| Guaranteed                investment contracts of SPEs      |     | 11,870 |     |   | 11,685 |   |
| Total                investment contracts                   |     | 16,959 |     |   | 17,719 |   |
|                                                        |     |   |     |   |   |   |
| Life                insurance benefits(a)                   |     | 14,054 |     |   | 13,220 |   |
| Unpaid                claims and claims adjustment expenses |     | 2,714  |     |   | 1,707 |   |
| Unearned                premiums                            |     | 740    |     |   | 401 |   |
| Universal                life benefits                      |     | 340    |     |   | 340 |   |
| Total                                                       | $        | 34,807 |     | $      | 33,387 |   |
|                                                        |     |   |     |   |   |   |

| (a) | Life                insurance benefits are accounted for mainly by a net-level-premium                method                using estimated yields generally ranging from 3.0% to 8.5% in both                2006                and 2005. |   |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

**Note      13. Income Taxes**

| *(In                millions)*                                           | **2006** |   | **2005** |   | **2004** |   |
|--------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                     |     |   |     |   |     |   |
| Current                tax expense                                       | $        | 266    |     | $      | 1,938    |   | $ | 1,497 |   |
| Deferred                tax expense (benefit) from temporary differences |     | 1,108  |     |   | (653     | )      |   | 226 |   |
|                                                                     | $        | 1,374  |     | $      | 1,285    |   | $ | 1,723 |   |

----

**Reconciliation      of U.S. Federal Statutory Income Tax Rate to Actual Income Tax      Rate**

|                                                       | **2006** |   | **2005** |   | **2004** |   |
|------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                       |     |   |     |   |     |   |
| U.S.                federal statutory income tax rate      | 35.0     | %      | 35.0     | %      | 35.0     | %      |
| Increase                (reduction) in rate resulting from |     |   |     |   |     |   |
| Tax                on global activities including exports  | (21.6    | )      | (21.7    | )      | (14.5    | )      |
| U.S.                business credits                       | (2.1     | )      | (2.5     | )      | (2.3     | )      |
| All                other - net                             | 0.3      |   | 1.1      |   | (0.8     | )      |
|                                                       | (23.4    | )      | (23.1    | )      | (17.6    | )      |
| Actual                income tax rate                      | 11.6     | %      | 11.9     | %      | 17.4     | %      |

----

| *December                31 (In millions)*           | **2006** |   | **2005** |   |
|------------------------------------------------------|----------|--------|----------|--------|
|                                                 |     |   |     |   |   |   |
| **Assets**                                           |     |   |     |   |   |   |
| Allowance                for losses                  | $        | 1,763  |     | $      | 2,025 |   |
| Non-U.S.                loss carryforwards(a)        |     | 835    |     |   | 688 |   |
| Cash                flow hedges                      |     | 226    |     |   | 372 |   |
| Other                - net                           |     | 5,739  |     |   | 3,124 |   |
| Total                deferred income tax assets      |     | 8,563  |     |   | 6,209 |   |
|                                                 |     |   |     |   |   |   |
| **Liabilities**                                      |     |   |     |   |   |   |
| Financing                leases                      |     | 8,314  |     |   | 8,037 |   |
| Operating                leases                      |     | 4,327  |     |   | 4,024 |   |
| Intangible                assets                     |     | 1,278  |     |   | 1,195 |   |
| Other                - net                           |     | 6,861  |     |   | 5,428 |   |
| Total                deferred income tax liabilities |     | 20,780 |     |   | 18,684 |   |
|                                                 |     |   |     |   |   |   |
| Net                deferred income tax liability     | $        | 12,217 |     | $      | 12,475 |   |
|                                                 |     |   |     |   |   |   |

| (a) | Net                of valuation allowances of $203 million and $132 million for 2006                and                2005, respectively. Of the net deferred tax asset as of December                31, 2006,                of $835 million, $24 million relates to net operating loss carryforwards                that expire in various years ending from December 31, 2007, through                December 31, 2009, $335 million relates to net operating losses that                expire in various years ending from December 31, 2010, through December                31, 2021, and $476 million relates to net operating loss carryforwards                that may be carried forward indefinitely. |   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

**Note      14. Minority Interest in Equity of Consolidated Affiliates**

| *December                31 (In millions)*                     | **2006** |   | **2005** |   |
|----------------------------------------------------------------|----------|--------|----------|--------|
|                                                           |     |   |     |   |   |   |
| Minority                interest in consolidated affiliates(a) | $        | 723    |     | $      | 864 |   |
| Minority                interest in preferred stock(b)         |     |   |     |   |   |   |
| GE                Capital                                      |     | -      |     |   | 70 |   |
| GE                Capital affiliates                           |     | 1,232  |     |   | 1,314 |   |
|                                                           | $        | 1,955  |     | $      | 2,248 |   |
|                                                           |     |   |     |   |   |   |

| (a)  | Included                minority interest in partnerships, common shares of consolidated                affiliates and consolidated, liquidating securitization entities.                                                                                        |   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | The                preferred stock primarily pays cumulative dividends at variable rates.                Dividend rates in local currency on the preferred stock ranged from                3.28%                to 5.49% during 2006 and 1.94% to 5.38% during 2005. |   |

----

**Note      15. Shareowner’s Equity**

| *(In                millions)*                                          | **2006** |   | **2005** |   | **2004** |   |
|-------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                    |     |   |     |   |     |   |   |   |   |
| **Cumulative                preferred stock issued**                    | $        | 10     |     | $      | 10       |   | $ | 10 |   |
|                                                                    |     |   |     |   |     |   |   |   |   |
| **Common                stock issued**                                  | $        | 1      |     | $      | 1        |   | $ | 1 |   |
|                                                                    |     |   |     |   |     |   |   |   |   |
| **Accumulated                nonowner changes other than earnings**     |     |   |     |   |     |   |   |   |   |
| Balance                at January 1                                     | $        | 3,519  |     | $      | 6,863    |   | $ | 3,999 |   |
| Investment                securities - net of deferred taxes            |     |   |     |   |     |   |   |   |   |
| of                $101, $(301) and $537                                 |     | 273    |     |   | (240     | )      |   | 746 |   |
| Currency                translation adjustments - net of deferred taxes |     |   |     |   |     |   |   |   |   |
| of                $(1,476), $691 and $(1,271)                           |     | 2,682  |     |   | (2,817   | )      |   | 2,538 |   |
| Cash                flow hedges - net of deferred taxes                 |     |   |     |   |     |   |   |   |   |
| of                $75, $336 and $(69)                                   |     | 585    |     |   | 557      |   |   | (56 | ) |
| Benefit                plans - net of deferred taxes                    |     |   |     |   |     |   |   |   |   |
| of                $(74), $2 and $(42)(a)                                |     | (99    | )        |   | (29      | )      |   | (109 | ) |
| Reclassification                adjustments                             |     |   |     |   |     |   |   |   |   |
| Investment                securities - net of deferred taxes            |     |   |     |   |     |   |   |   |   |
| of                $(233), $(189) and $(142)                             |     | (433   | )        |   | (351     | )      |   | (265 | ) |
| Currency                translation adjustments                         |     | (132   | )        |   | -        |   |   | - |   |
| Cash                flow hedges - net of deferred taxes                 |     |   |     |   |     |   |   |   |   |
| of                $(65), $(257) and $(34)                               |     | (413   | )        |   | (464     | )      |   | 10 |   |
| Balance                at December 31(b)(c)                             | $        | 5,982  |     | $      | 3,519    |   | $ | 6,863 |   |
|                                                                    |     |   |     |   |     |   |   |   |   |
| **Additional                paid-in capital**                           |     |   |     |   |     |   |   |   |   |
| Balance                at January 1                                     | $        | 12,376 |     | $      | 12,360   |   | $ | 12,258 |   |
| Contributions(d)                                                        |     | 151    |     |   | 16       |   |   | 102 |   |
| Balance                at December 31                                   | $        | 12,527 |     | $      | 12,376   |   | $ | 12,360 |   |
|                                                                    |     |   |     |   |     |   |   |   |   |
| **Retained                earnings**                                    |     |   |     |   |     |   |   |   |   |
| Balance                at January 1                                     | $        | 34,906 |     | $      | 35,145   |   | $ | 29,522 |   |
| Net                earnings                                             |     | 10,658 |     |   | 7,577    |   |   | 8,728 |   |
| Dividends(d)                                                            |     | (9,987 | )        |   | (7,816   | )      |   | (3,105 | ) |
| Balance                at December 31                                   | $        | 35,577 |     | $      | 34,906   |   | $ | 35,145 |   |
|                                                                    |     |   |     |   |     |   |   |   |   |
| **Total                equity**                                         |     |   |     |   |     |   |   |   |   |
| Balance                at December 31                                   | $        | 54,097 |     | $      | 50,812   |   | $ | 54,379 |   |
|                                                                    |     |   |     |   |     |   |   |   |   |

| (a)  | The                2006 change includes transition effect related to adoption of SFAS                158 of                $(119) million, net of taxes of $(58) million. See note 1 for further                information regarding SFAS 158.                                                                                                                                                                                                                                                                                             |   |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | Included                accumulated nonowner changes related to discontinued operations of                $(9)                million, $652 million and $1,878 million at December 31, 2006, 2005                and                2004, respectively.                                                                                                                                                                                                                                                                                     |   |
| (c)  | At                December 31, 2006, included reductions of equity of $838 million                related                to hedges of our investments in subsidiaries that have functional                currencies other than the U.S. dollar and $171 million related to                cash                flow hedges of forecasted transactions, of which we expect to transfer                $217 million to earnings in 2007 along with the earnings effects                of the                related forecasted transaction.  |   |
| (d)       | Total                dividends and other transactions with shareowner reduced equity by                $9,836                million, $7,800 million and $3,003 million in 2006, 2005 and 2004,                respectively.                                                                                                                                                                                                                                                                                                                     |   |

----

**Note      16. Supplemental Cash Flows Information**

| *December                31 (In millions)*                                       | **2006** |     | **2005** |   | **2004** |   |
|----------------------------------------------------------------------------------|----------|----------|----------|--------|----------|--------|
|                                                                             |     |     |     |   |     |   |   |   |   |
| **All                other operating activities**                                |     |     |     |   |     |   |   |   |   |
| Net                change in assets held for sale                                | $        | (1,578   | )        | $      | 2,192    |   | $ | 84 |   |
| Amortization                of intangible assets                                 |     | 627      |     |   | 459      |   |   | 519 |   |
| Realized                gains on sale of investment securities                   |     | (146     | )        |   | (377     | )      |   | (222 | ) |
| Other                                                                            |     | 1,056    |     |   | (871     | )      |   | (548 | ) |
|                                                                             | $        | (41      | )        | $      | 1,403    |   | $ | (167 | ) |
|                                                                             |     |     |     |   |     |   |   |   |   |
| **Net                increase in financing receivables**                         |     |     |     |   |     |   |   |   |   |
| Increase                in loans to customers                                    | $        | (376,050 | )        | $      | (315,697 | )      | $ | (342,357 | ) |
| Principal                collections from customers - loans                      |     | 300,150  |     |   | 267,728  |   |   | 305,846 |   |
| Investment                in equipment for financing leases                      |     | (25,618  | )        |   | (23,508  | )      |   | (22,649 | ) |
| Principal                collections from customers - financing leases           |     | 18,791   |     |   | 21,770   |   |   | 19,715 |   |
| Net                change in credit card receivables                             |     | (25,790  | )        |   | (21,391  | )      |   | (20,651 | ) |
| Sales                of financing receivables                                    |     | 67,471   |     |   | 54,144   |   |   | 44,816 |   |
|                                                                             | $        | (41,046  | )        | $      | (16,954  | )      | $ | (15,280 | ) |
|                                                                             |     |     |     |   |     |   |   |   |   |
| **All                other investing activities**                                |     |     |     |   |     |   |   |   |   |
| Purchases                of securities by insurance activities                   | $        | (11,891  | )        | $      | (8,825   | )      | $ | (6,472 | ) |
| Dispositions                and maturities of securities by insurance activities |     | 11,635   |     |   | 10,792   |   |   | 8,922 |   |
| Other                assets - investments                                        |     | (6,242   | )        |   | (919     | )      |   | (386 | ) |
| Other                                                                            |     | 943      |     |   | (3,754   | )      |   | 2,092 |   |
|                                                                             | $        | (5,555   | )        | $      | (2,706   | )      | $ | 4,156 |   |

----

| *December                31 (In millions)*                                   | **2006** |    | **2005** |   | **2004** |   |
|------------------------------------------------------------------------------|----------|---------|----------|--------|----------|--------|
|                                                                         |     |    |     |   |     |   |   |   |   |
| **Newly                issued debt having maturities longer than 90 days**   |     |    |     |   |     |   |   |   |   |
| Short-term                (91 to 365 days)                                   | $        | 1,237   |     | $      | 4,675    |   | $ | 3,940 |   |
| Long-term                (longer than one year)                              |     | 86,026  |     |   | 60,176   |   |   | 53,641 |   |
| Proceeds                - nonrecourse, leveraged lease                       |     | 1,015   |     |   | 203      |   |   | 562 |   |
|                                                                         | $        | 88,278  |     | $      | 65,054   |   | $ | 58,143 |   |
|                                                                         |     |    |     |   |     |   |   |   |   |
| **Repayments                and other reductions of debt having maturities** |     |    |     |   |     |   |   |   |   |
| **longer                than 90 days**                                       |     |    |     |   |     |   |   |   |   |
| Short-term                (91 to 365 days)                                   | $        | (42,271 | )        | $      | (38,132  | )      | $ | (41,443 | ) |
| Long-term                (longer than one year)                              |     | (5,578  | )        |   | (10,746  | )      |   | (3,443 | ) |
| Principal                payments - nonrecourse, leveraged lease             |     | (1,404  | )        |   | (831     | )      |   | (652 | ) |
|                                                                         | $        | (49,253 | )        | $      | (49,709  | )      | $ | (45,538 | ) |
|                                                                         |     |    |     |   |     |   |   |   |   |
| **All                other financing activities**                            |     |    |     |   |     |   |   |   |   |
| Proceeds                from sales of investment contracts                   | $        | 16,418  |     | $      | 15,806   |   | $ | 11,170 |   |
| Redemption                of investment contracts                            |     | (17,603 | )        |   | (16,934  | )      |   | (14,474 | ) |
| Other                                                                        |     | 11      |     |   | -        |   |   | - |   |
|                                                                         | $        | (1,174  | )        | $      | (1,128   | )      | $ | (3,304 | ) |

**Note      17. Operating Segments **

**Revenues**

|                                 | **Total                revenues** |   | **Intersegment                revenues** |   | **External                revenues** |   |
|--------------------------------------|-----------------------------------|--------|------------------------------------------|--------|--------------------------------------|--------|
| *(In                millions)*       | **2006**                          |   | **2005**                                 |   | **2004**                             |   | **2006** |   | **2005** |   | **2004** |   | **2006** |   | **2005** |   | **2004** |   |
|                                 |                              |   |                                     |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GE                Commercial Finance | $                                 | 23,792 |                                     | $      | 20,646                               |   | $ | 19,524 |   | $ | 164 |   | $ | 204 |   | $ | 279 |   | $ | 23,628 |   | $ | 20,442 |   | $ | 19,245 |   |
| GE                Money              |                              | 21,759 |                                     |   | 19,416                               |   |   | 15,734 |   |   | 37 |   |   | 52 |   |   | 33 |   |   | 21,722 |   |   | 19,364 |   |   | 15,701 |   |
| GE                Industrial(a)      |                              | 7,061  |                                     |   | 6,627                                |   |   | 6,571 |   |   | 16 |   |   | 17 |   |   | 13 |   |   | 7,045 |   |   | 6,610 |   |   | 6,558 |   |
| GE                Infrastructure(a)  |                              | 6,017  |                                     |   | 5,044                                |   |   | 4,305 |   |   | 6 |   |   | - |   |   | 2 |   |   | 6,011 |   |   | 5,044 |   |   | 4,303 |   |
| GECS                corporate items  |                              |   |                                     |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| and                eliminations      |                              | 4,973  |                                     |   | 5,818                                |   |   | 6,570 |   |   | (223 | ) |   | (273 | ) |   | (327 | ) |   | 5,196 |   |   | 6,091 |   |   | 6,897 |   |
| Total                                | $                                 | 63,602 |                                     | $      | 57,551                               |   | $ | 52,704 |   | $ | - |   | $ | - |   | $ | - |   | $ | 63,602 |   | $ | 57,551 |   | $ | 52,704 |   |
|                                 |                              |   |                                     |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Included                only portions of the segment that are financial services                businesses. |
|-----|-------------------------------------------------------------------------------------------------------------|

----

|                                                 | **Depreciation                and amortization****For                the years ended December 31** |   | **Provision                for income taxes** |   |
|------------------------------------------------------|----------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
| *(In                millions)*                       | **2006**                                                                                           |   | **2005**                                      |   | **2004** |   | **2006** |   | **2005** |   | **2004** |   |
|                                                 |                                                                                               |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GE                Commercial Finance                 | $                                                                                                  | 3,188  |                                          | $      | 2,648 |   | $ | 2,772 |   | $ | 893 |   | $ | 971 |   | $ | 1,144 |   |
| GE                Money                              |                                                                                               | 438    |                                          |   | 393 |   |   | 334 |   |   | 389 |   |   | 529 |   |   | 449 |   |
| GE                Industrial(a)                      |                                                                                               | 1,982  |                                          |   | 1,912 |   |   | 1,876 |   |   | 61 |   |   | 64 |   |   | (124 | ) |
| GE                Infrastructure(a)                  |                                                                                               | 1,421  |                                          |   | 1,439 |   |   | 1,122 |   |   | 199 |   |   | (202 | ) |   | 62 |   |
| GECS                corporate items and eliminations |                                                                                               | 114    |                                          |   | 86 |   |   | 146 |   |   | (168 | ) |   | (77 | ) |   | 192 |   |
| Total                                                | $                                                                                                  | 7,143  |                                          | $      | 6,478 |   | $ | 6,250 |   | $ | 1,374 |   | $ | 1,285 |   | $ | 1,723 |   |
|                                                 |                                                                                               |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Included                only portions of the segment that are financial services                businesses. |
|-----|-------------------------------------------------------------------------------------------------------------|

|                                                 | **Interest                on loans** |   | **Interest                expense** |   |
|------------------------------------------------------|--------------------------------------|--------|-------------------------------------|--------|
| *(In                millions)*                       | **2006**                             |   | **2005**                            |   | **2004** |   | **2006** |   | **2005** |   | **2004** |   |
|                                                 |                                 |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GE                Commercial Finance                 | $                                    | 7,366  |                                | $      | 6,032 |   | $ | 5,704 |   | $ | 7,878 |   | $ | 5,893 |   | $ | 4,720 |   |
| GE                Money                              |                                 | 14,112 |                                |   | 13,086 |   |   | 10,619 |   |   | 6,766 |   |   | 5,443 |   |   | 3,564 |   |
| GE                Industrial(a)                      |                                 | 10     |                                |   | 10 |   |   | 12 |   |   | 609 |   |   | 536 |   |   | 526 |   |
| GE                Infrastructure(a)                  |                                 | 686    |                                |   | 541 |   |   | 391 |   |   | 2,067 |   |   | 1,706 |   |   | 1,436 |   |
| GECS                corporate items and eliminations |                                 | 394    |                                |   | 427 |   |   | 588 |   |   | 761 |   |   | 645 |   |   | 835 |   |
| Total                                                | $                                    | 22,568 |                                | $      | 20,096 |   | $ | 17,314 |   | $ | 18,081 |   | $ | 14,223 |   | $ | 11,081 |   |
|                                                 |                                 |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a) | Included                only portions of the segment that are financial services                businesses. |
|-----|-------------------------------------------------------------------------------------------------------------|

|                                                 | **Assets**(b)(c)**At                December 31** |    | **Buildings                and equipment****additions**(d)**For                the years ended December 31** |   |
|------------------------------------------------------|---------------------------------------------------|---------|--------------------------------------------------------------------------------------------------------------|--------|
| *(In                millions)*                       | **2006**                                          |    | **2005**                                                                                                     |   | **2004** |   | **2006** |   | **2005** |   | **2004** |   |
|                                                 |                                              |    |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GE                Commercial Finance                 | $                                                 | 233,536 |                                                                                                         | $      | 190,546 |   | $ | 184,388 |   | $ | 7,056 |   | $ | 5,426 |   | $ | 4,573 |   |
| GE                Money                              |                                              | 190,403 |                                                                                                         |   | 158,829 |   |   | 151,255 |   |   | 238 |   |   | 189 |   |   | 217 |   |
| GE                Industrial(a)                      |                                              | 19,365  |                                                                                                         |   | 17,438 |   |   | 17,888 |   |   | 3,836 |   |   | 3,366 |   |   | 3,060 |   |
| GE                Infrastructure(a)                  |                                              | 60,658  |                                                                                                         |   | 53,852 |   |   | 50,921 |   |   | 3,375 |   |   | 2,874 |   |   | 3,121 |   |
| GECS                corporate items and eliminations |                                              | 60,706  |                                                                                                         |   | 119,919 |   |   | 214,162 |   |   | 54 |   |   | 13 |   |   | 40 |   |
| Total                                                | $                                                 | 564,668 |                                                                                                         | $      | 540,584 |   | $ | 618,614 |   | $ | 14,559 |   | $ | 11,868 |   | $ | 11,011 |   |
|                                                 |                                              |    |                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)  | Included                only portions of the segment that are financial services                businesses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Total                assets of the GE Commercial Finance, GE Money, GE Industrial and                GE                Infrastructure segments at December 31, 2006, include investments                in and                advances to associated companies of $1,514 million, $7,354 million,                $37                million and $3,148 million, respectively, which contributed approximately                $393 million, $745 million, an insignificant amount and $940 million,                respectively, to segment pre-tax income for the year ended December                31,                2006.  |
| (c)  | Assets                of discontinued operations are included in GECS corporate items and                eliminations for all periods presented.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (d)       | Additions                to buildings and equipment include amounts relating to principal                businesses purchased.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

**Basis      for presentation**

**Note      18. Financial Instruments**

|                                          | **2006**       |   | **2005**                            |   |
|-----------------------------------------------|----------------|--------|-------------------------------------|--------|
|                                          |           |   | Assets                (liabilities) |   |   |   | Assets                (liabilities) |   |
| *December                31 (In millions)*    | Notionalamount |   | Carryingamount                (net) |   | Estimatedfair                value |   | Notionalamount |   | Carryingamount                (net) |   | Estimatedfair                value |   |
| Assets                                        |           |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                         | $              | (a)    |                                | $      | 266,055 |   | $ | 265,578 |   | $ | (a) |   | $ | 223,855 |   | $ | 224,259 |   |
| Other                commercial and           |           |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| residential                mortgages          |           |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| held                for sale                  |           | (a)    |                                |   | 7,296 |   |   | 7,439 |   |   | (a) |   |   | 6,696 |   |   | 6,696 |   |
| Other                financial instruments(b) |           | (a)    |                                |   | 3,714 |   |   | 4,158 |   |   | (a) |   |   | 4,138 |   |   | 4,494 |   |
| Liabilities                                   |           |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings(c)(d)                              |           | (a)    |                                |   | (426,279 | ) |   | (432,275 | ) |   | (a) |   |   | (362,069 | ) |   | (369,972 | ) |
| Investment                contract benefits   |           | (a)    |                                |   | (5,089 | ) |   | (5,080 | ) |   | (a) |   |   | (6,034 | ) |   | (6,020 | ) |
| Insurance                - credit life(e)     |           | 2,634  |                                |   | (81 | ) |   | (61 | ) |   | 2,365 |   |   | (8 | ) |   | (8 | ) |
|                                          |           |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (a)  | These                financial instruments do not have notional amounts.                                                                 |   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)  | Principally                cost method investments.                                                                                      |   |
| (c)  | Included                effects of interest rate and cross-currency swaps.                                                               |   |
| (d)  | See                note 11.                                                                                                              |   |
| (e)       | Net                of reinsurance of $840 million and $292 million at December 31, 2006                and                2005, respectively. |   |

**Loans**

**Borrowings**

----

**Investment      contract benefits**

**All      other instruments**

**Residential      mortgages**

**Insurance      - credit life**

**Loan      Commitments**

|                                                              | **Notional                amount** |    |
|-------------------------------------------------------------------|------------------------------------|---------|
| *December                31 (In millions)*                        | **2006**                           |    | **2005** |   |
|                                                              |                               |    |   |   |   |   |
| Ordinary                course of business lending commitments(a) |                               |    |   |   |   |   |
| Fixed                rate                                         | $                                  | 3,186   |   | $ | 4,188 |   |
| Variable                rate                                      |                               | 9,515   |   |   | 6,068 |   |
| Unused                revolving credit lines(b)                   |                               |    |   |   |   |   |
| Commercial                                                        |                               |    |   |   |   |   |
| Fixed                rate                                         |                               | 868     |   |   | 779 |   |
| Variable                rate                                      |                               | 24,095  |   |   | 20,779 |   |
| Consumer                - principally credit cards                |                               |    |   |   |   |   |
| Fixed                rate                                         |                               | 136,920 |   |   | 170,367 |   |
| Variable                rate                                      |                               | 341,656 |   |   | 281,113 |   |
|                                                              |                               |    |   |   |   |   |

| (a)  | Excluded                investment commitments of $2,881 million and $1,418 million as of                December                31, 2006 and 2005, respectively.                                                              |   |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| (b)       | Excluded                inventory financing arrangements, which may be withdrawn at our option,                of                $11,044 million and $11,383 million as of December 31, 2006 and 2005,                respectively. |   |

----

**Derivatives      and hedging**

**Earnings      effects of derivatives designated as hedges**

**Pre-tax      Gains (Losses)**

| *December                31 (In millions)*                        | **2006** |   | **2005** |   | **2004** |   |
|-------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                              |     |   |     |   |     |   |   |   |   |
| **Cash                flow hedges**                               |     |   |     |   |     |   |   |   |   |
| Ineffectiveness                                                   | $        | 10     |     | $      | (27      | )      | $ | 21 |   |
| Amounts                excluded from the measure of effectiveness |     | (16    | )        |   | (5       | )      |   | (6 | ) |
|                                                              |     |   |     |   |     |   |   |   |   |
| **Fair                value hedges**                              |     |   |     |   |     |   |   |   |   |
| Ineffectiveness                                                   |     | (47    | )        |   | 4        |   |   | 13 |   |
| Amounts                excluded from the measure of effectiveness |     | 33     |     |   | (8       | )      |   | 3 |   |

----

**Counterparty      credit risk**

**Counterparty      Credit Criteria**

|                                                                              | **Credit                rating** |
|-----------------------------------------------------------------------------------|----------------------------------|
|                                                                              | Moody’s                    |   | S&P |
|                                                                              |                             |   |   |
| Foreign                exchange forwards and other derivatives less than one year | P-1                              |   | A-1 |
| All                derivatives between one and five years                         | Aa3(a)                           |   | AA-(a) |
| All                derivatives greater than five years                            | Aaa(a)                           |   | AAA(a) |
|                                                                              |                             |   |   |

| (a) | Counterparties                that have an obligation to provide collateral to cover credit exposure                in                accordance with a credit support agreement must have a minimum A3/A-                rating. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Exposure      Limits**

| *(In                millions)*    |   |            |
|-----------------------------------|--------|-----------------|
|                              |   |            |
| **Minimum                rating** |   | **Exposure**(a) |   |
| Moody’s                     |   | S&P         |   | With                collateral arrangements |   | Without                collateral arrangements |   |
|                              |   |            |   |   |   |   |   |   |   |
| Aaa                               |   | AAA             |   | $ | 100 |   | $ | 75 |   |
| Aa3                               |   | AA-             |   |   | 50 |   |   | 50 |   |
| A3                                |   | A-              |   |   | 5 |   |   | - |   |
|                              |   |            |   |   |   |   |   |   |   |

| (a) | For                derivatives with maturities less than one year, counterparties are                permitted to have unsecured exposure up to $150 million with a                minimumrating                of A-1/P-1. |   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

**Note      19. Securitization Entities**

*Consolidation      of Variable Interest Entities*

| *December                31 (In millions)* | **2006** |   | **2005** |   |
|--------------------------------------------|----------|--------|----------|--------|
|                                       |     |   |     |   |
| Receivables                secured by      |     |   |     |   |   |   |
| Equipment                                  | $        | 9,590  |     | $      | 12,949 |   |
| Commercial                real estate      |     | 11,324 |     |   | 13,010 |   |
| Residential                real estate     |     | 7,329  |     |   | 8,882 |   |
| Other                assets                |     | 14,743 |     |   | 12,869 |   |
| Credit                card receivables     |     | 12,947 |     |   | 10,039 |   |
| Trade                receivables           |     | 176    |     |   | - |   |
| Total                securitized assets    | $        | 56,109 |     | $      | 57,749 |   |

| *December                31 (In millions)* | **2006** |   | **2005** |   |
|--------------------------------------------|----------|--------|----------|--------|
|                                       |     |   |     |   |
| Off-balance                sheet(a)(b)     | $        | 44,462 |     | $      | 39,845 |   |
| On-balance                sheet(c)         |     | 11,647 |     |   | 17,904 |   |
| Total                securitized assets    | $        | 56,109 |     | $      | 57,749 |   |
|                                       |     |   |     |   |   |   |

| (a)  | At                December 31, 2006 and 2005, liquidity support amounted to $753 million                and                $1,931 million, respectively. These amounts are net of $3,034 million                and                $3,786 million, respectively, participated or deferred beyond one                year.                Credit support amounted to $3,815 million and $5,988 million at December                31, 2006 and 2005, respectively.                                                                                                 |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)  | Liabilities                for recourse obligations related to off-balance sheet assets were                $27                million and $93 million at December 31, 2006 and 2005,                respectively.                                                                                                                                                                                                                                                                                                                                                |
| (c)       | At                December 31, 2006 and 2005, liquidity support amounted to $6,585                million                and $10,044 million, respectively. For December 31, 2005, this amount                is                net of $138 million participated or deferred beyond one year. No                amounts                have been participated or deferred beyond one year at December 31,                2006.                Credit support amounted to $2,926 million and $4,780 million at December                31, 2006 and 2005, respectively. |

----

| *December                31 (In millions)*          | **2006** |   | **2005** |   |
|-----------------------------------------------------|----------|--------|----------|--------|
|                                                |     |   |     |   |   |   |
| Financing                receivables - net (note 6) | $        | 11,509 |     | $      | 16,615 |   |
| Other                                               |     | 138    |     |   | 1,289 |   |
| Total                                          | $        | 11,647 |     | $      | 17,904 |   |

**Off-balance      sheet arrangements**

| *December                31 (In millions)* | **2006** |   | **2005** |   |
|--------------------------------------------|----------|--------|----------|--------|
|                                       |     |   |     |   |   |   |
| Retained                interests          | $        | 4,294  |     | $      | 3,905 |   |
| Servicing                assets            |     | 9      |     |   | 29 |   |
| Recourse                liability          |     | (27    | )        |   | (93 | ) |
| Total                                      | $        | 4,276  |     | $      | 3,841 |   |

| • | **Retained                interests.**                When we securitize receivables, we determine fair value of retained                interests based on discounted cash flow models that incorporate,                among                other things, assumptions about loan pool credit losses, prepayment                speeds                and discount rates. These assumptions are based on our experience,                market                trends and anticipated performance related to the particular assets                securitized. We classify retained interests in securitized receivables                as                investment securities and mark them to fair value each reporting                period,                updating our models for current assumptions. These assets decrease                as cash                is received in payment. When the carrying amounts exceed fair value,                we                evaluate whether the unrealized loss is other than temporary and,                if so,                record any indicated loss in earnings currently. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Servicing                assets.**                Following a securitization transaction, we also may provide servicing                for                a market-based fee based on remaining outstanding principal balances.                Servicing assets are primarily associated with residential mortgage                loans.                Their value is subject to credit, prepayment and interest rate risk. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Recourse                liability.**                Certain transactions involve credit support agreements. As a result,                we                provide for expected credit losses at amounts that approximate fair                value. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| *(Dollars                in millions)*             | **Equipment** |   | **Commercial****real                estate** |   | **Credit                card****receivables** |   | **Other                assets** |   |
|----------------------------------------------------|---------------|--------|----------------------------------------------|--------|-----------------------------------------------|--------|---------------------------------|--------|
|                                               |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| **2006**                                           |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| Cash                proceeds from securitization   | $             | 2,784  |                                         | $      | 4,427                                         |   | $                               | 5,251  |   | $ | 7,782 |   |
| Proceeds                from collections           |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| reinvested                in new receivables       |          | -      |                                         |   | -                                             |   |                            | 16,360 |   |   | 30,584 |   |
| Cash                received on retained interests |          | 236    |                                         |   | 80                                            |   |                            | 2,307  |   |   | 341 |   |
| Cash                received from servicing and    |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| other                sources                       |          | 45     |                                         |   | 26                                            |   |                            | 219    |   |   | 126 |   |
| Weighted                average lives (in months)  |          | 23     |                                         |   | 75                                            |   |                            | 7      |   |   | 39 |   |
|                                               |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| Assumptions                as of sale date(a)      |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| Discount                rate                       |          | 8.3    | %                                            |   | 12.8                                          | %      |                            | 12.0   | % |   | 12.6 | % |
| Prepayment                rate                     |          | 10.4   |                                         |   | 7.6                                           |   |                            | 12.5   |   |   | 20.2 |   |
| Estimate                of credit losses           |          | 1.4    |                                         |   | 0.5                                           |   |                            | 6.8    |   |   | 0.8 |   |
|                                               |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |

| (a) | Based                on weighted averages. |   |
|-----|--------------------------------------------|--------|

| *(Dollars                in millions)*             | **Equipment** |   | **Commercial****real                estate** |   | **Credit                card****receivables** |   | **Other                assets** |   |
|----------------------------------------------------|---------------|--------|----------------------------------------------|--------|-----------------------------------------------|--------|---------------------------------|--------|
|                                               |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| **2005**                                           |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| Cash                proceeds from securitization   | $             | 3,702  |                                         | $      | 5,571                                         |   | $                               | 6,985  |   | $ | 4,705 |   |
| Proceeds                from collections           |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| reinvested                in new receivables       |          | -      |                                         |   | -                                             |   |                            | 10,067 |   |   | 27,697 |   |
| Cash                received on retained interests |          | 190    |                                         |   | 69                                            |   |                            | 1,644  |   |   | 10 |   |
| Cash                received from servicing and    |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| other                sources                       |          | 75     |                                         |   | 36                                            |   |                            | 155    |   |   | 91 |   |
| Weighted                average lives (in months)  |          | 37     |                                         |   | 80                                            |   |                            | 8      |   |   | 35 |   |
|                                               |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| Assumptions                as of sale date(a)      |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| Discount                rate                       |          | 8.8    | %                                            |   | 13.4                                          | %      |                            | 11.7   | % |   | 12.6 | % |
| Prepayment                rate                     |          | 8.8    |                                         |   | 6.5                                           |   |                            | 12.6   |   |   | 21.2 |   |
| Estimate                of credit losses           |          | 2.3    |                                         |   | 0.8                                           |   |                            | 7.5    |   |   | 0.6 |   |
|                                               |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |

| (a) | Based                on weighted averages. |   |
|-----|--------------------------------------------|--------|

----

| *(Dollars                in millions)*          | **Equipment** |   | **Commercial****real                estate** |   | **Credit                card****receivables** |   | **Other                assets** |   |
|-------------------------------------------------|---------------|--------|----------------------------------------------|--------|-----------------------------------------------|--------|---------------------------------|--------|
|                                            |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| **Discount                rate**(a)             |          | 8.9    | %                                            |   | 13.2                                          | %      |                            | 11.2   | % |   | 6.6 | % |
| Effect                of                        |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| 10%                Adverse change               | $             | (10    | )                                            | $      | (19                                           | )      | $                               | (15    | ) | $ | (6 | ) |
| 20%                Adverse change               |          | (21    | )                                            |   | (35                                           | )      |                            | (30    | ) |   | (13 | ) |
| **Prepayment                rate**(a)           |          | 11.7   | %                                            |   | 3.0                                           | %      |                            | 12.0   | % |   | 13.2 | % |
| Effect                of                        |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| 10%                Adverse change               | $             | (5     | )                                            | $      | (7                                            | )      | $                               | (59    | ) | $ | (13 | ) |
| 20%                Adverse change               |          | (9     | )                                            |   | (13                                           | )      |                            | (110   | ) |   | (22 | ) |
| **Estimate                of credit losses**(a) |          | 2.3    | %                                            |   | 0.8                                           | %      |                            | 6.6    | % |   | 0.3 | % |
| Effect                of                        |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| 10%                Adverse change               | $             | (7     | )                                            | $      | (6                                            | )      | $                               | (48    | ) | $ | (9 | ) |
| 20%                Adverse change               |          | (14    | )                                            |   | (8                                            | )      |                            | (95    | ) |   | (17 | ) |
| Remaining                weighted               |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |
| average                lives (in months)        |          | 31     |                                         |   | 47                                            |   |                            | 8      |   |   | 18 |   |
| Net                credit losses                | $             | 58     |                                         | $      | -                                             |   | $                               | 576    |   | $ | 8 |   |
| Delinquencies                                   |          | 121    |                                         |   | 13                                            |   |                            | 437    |   |   | 315 |   |
|                                            |          |   |                                         |   |                                          |   |                            |   |   |   |   |   |

| (a) | Based                on weighted averages. |   |
|-----|--------------------------------------------|--------|

**Note      20. Commitments and Guarantees**

**Commitments,      including guarantees**

| • | **Liquidity                support.**                Liquidity support provided to holders of certain variable rate bonds                issued by municipalities amounted to $1,093 million at December 31,                2006.                If holders elect to sell supported bonds that cannot be remarketed,                we are                obligated to repurchase them at par. If called upon, our position                would be                secured by the repurchased bonds. While we hold any such bonds, we                would                receive interest payments from the municipalities at a rate that                is in                excess of the stated rate on the bond. To date, we have not been                required                to perform under such arrangements and our existing liquidity support                will                decrease $1,033 million in 2007 and the remaining $60 million by                the end                of 2008 as the underlying variable rate bonds reach their maturity                date.                We are currently not providing any such new liquidity facilities. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Credit                support.**                We                have provided $6,268 million of credit support on behalf of certain                customers or associated companies, predominantly joint ventures and                partnerships, using arrangements such as standby letters of credit                and                performance guarantees. These arrangements enable these customers                and                associated companies to execute transactions or obtain desired financing                arrangements with third parties. Should the customer or associated                company                fail to perform under the terms of the transaction or financing                arrangement, we would be required to perform on their behalf. Under                most                such arrangements, our guarantee is secured, usually by the asset                being                purchased or financed, but possibly by certain other assets of the                customer or associated company. The length of these credit support                arrangements parallels the length |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | of                the related financing arrangements or transactions. The liability                for such                credit support was $8 million at December 31, 2006. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Indemnification                agreements.**                These are agreements that require us to fund up to $413 million under                residual value guarantees on a variety of leased equipment and $816                million of other indemnification commitments arising primarily from                sales                of businesses or assets. Under most of our residual value guarantees,                our                commitment is secured by the leased asset at termination of the lease.                The                liability for these indemnification agreements was $21 million at                December                31, 2006. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | **Contingent                consideration.**                These are agreements to provide additional consideration in a business                combination to the seller if contractually specified conditions related                to                the acquired entity are achieved. At December 31, 2006, we had total                maximum exposure for future estimated payments of $220 million, of                which                none was earned and payable. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Note      21. Quarterly Information (Unaudited)**

|                                      | **First                quarter** |   | **Second                quarter** |   | **Third                quarter** |   | **Fourth                quarter** |   |
|-------------------------------------------|----------------------------------|--------|-----------------------------------|--------|----------------------------------|--------|-----------------------------------|--------|
| *(In                millions)*            | **2006**                         |   | **2005**                          |   | **2006**                         |   | **2005**                          |   | **2006** |   | **2005** |   | **2006** |   | **2005** |   |
|                                      |                             |   |                              |   |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                revenues             | $                                | 14,889 |                              | $      | 13,963                           |   | $                                 | 15,455 |   | $ | 13,722 |   | $ | 16,112 |   | $ | 15,137 |   | $ | 17,146 |   | $ | 14,729 |   |
| Earnings                from continuing   |                             |   |                              |   |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                before income   |                             |   |                              |   |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| taxes                                     | $                                | 2,857  |                              | $      | 2,438                            |   | $                                 | 2,971  |   | $ | 2,010 |   | $ | 2,882 |   | $ | 3,328 |   | $ | 3,159 |   | $ | 3,036 |   |
| Provision                for income taxes |                             | (452   | )                                 |   | (350                             | )      |                              | (377   | ) |   | (121 | ) |   | (275 | ) |   | (555 | ) |   | (270 | ) |   | (259 | ) |
| Earnings                from continuing   |                             |   |                              |   |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| operations                                |                             | 2,405  |                              |   | 2,088                            |   |                              | 2,594  |   |   | 1,889 |   |   | 2,607 |   |   | 2,773 |   |   | 2,889 |   |   | 2,777 |   |
| Earnings                (loss) from       |                             |   |                              |   |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| discontinued                operations,   |                             |   |                              |   |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net                of taxes               |                             | 263    |                              |   | 405                              |   |                              | (2     | ) |   | 271 |   |   | (95 | ) |   | 85 |   |   | (3 | ) |   | (2,711 | ) |
| Net                earnings               | $                                | 2,668  |                              | $      | 2,493                            |   | $                                 | 2,592  |   | $ | 2,160 |   | $ | 2,512 |   | $ | 2,858 |   | $ | 2,886 |   | $ | 66 |   |

**Item      9. Changes in and Disagreements with Accountants on Accounting and Financial      Disclosure.**

**Item      9A. Controls and Procedures. **

*(a)      Evaluation of Disclosure Controls and Procedures*

----

*Accounting      for Derivative Instruments and Hedging Activities*

*(b)      Management’s Annual Report on Internal Control over Financial      Reporting*

*Internal      Control - Integrated Framework*

*Accounting      for Derivative Instruments and Hedging Activities*

**Item      9B. Other Information.**

**PART      III**

**Item      10. Directors and Executive Officers of the Registrant.**

**Item      11. Executive Compensation.**

----

**Item      12. Security Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters.**

**Item      13. Certain Relationships and Related Transactions.**

**Item      14. Principal Accounting Fees and Services.**

| *(In                millions)*    |   | **2006** |   |   | **2005** |   |
|-----------------------------------|--------|----------|--------|--------|----------|--------|
|                              |   |     |   |   |     |   |
| **Type                of fees**   |   |     |   |   |     |   |
| Audit                fees         | $      | 32.5     |   | $      | 35.1     |   |
| Audit-related                fees |   | 7.3      |   |   | 3.7      |   |
| Tax                fees           |   | 3.5      |   |   | 5.1      |   |
| All                other fees     |   | -        |   |   | -        |   |
|                              | $      | 43.3     |   | $      | 43.9     |   |

----

**PART      IV**

**Item        15. Exhibits and Financial Statement        Schedules.**

| (a) 1. | **Financial                Statements**            |
|-------------|----------------------------------------------------|
|        |
|        | Included                in Part II of this report: |
|        |
|        |                                               | Report                of Independent Registered Public Accounting FirmStatement                of Earnings for each of the years in the three-year period ended                December                31, 2006Statement                of Changes in Shareowner’s Equity for each of the years in the three-year                period ended      December                31, 2006Statement                of Financial Position at December 31, 2006 and 2005Statement                of Cash Flows for each of the years in the three-year period ended                December 31, 2006Notes                to Consolidated Financial Statements |
|        |
|        | Incorporated                by reference:          |
|        |
|        |                                               | The                consolidated financial statements of General Electric Company, set                forth                in the Annual Report on Form 10-K of General Electric Company (S.E.C.                File                No. 001-00035) for the year ended December 31, 2006 (pages 45 through                113)                and Exhibit 12 (Ratio of Earnings to Fixed Charges) of General Electric                Company. |
|        |
| (a) 2. | **Financial                Statement Schedules**   |
|        |
|        | Schedule                I                          | Condensed                financial information of registrant. |
|        |                                               |   |
|        |                                               | All                other schedules are omitted because of the absence of conditions                under                which they are required or because the required information is shown                in                the financial statements or notes                thereto. |

| (a) 3. | **Exhibit                Index**                                                                                                                                                                                          |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |
|        | The                exhibits listed below, as part of Form 10-K, are numbered in conformity                with the numbering used in Item 601 of Regulation S-K of the Securities                and Exchange Commission. |

----

|   | **Exhibit****Number** |   | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|-----------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   | 3(i)                  |   | A                  complete copy of the Certificate of Incorporation of GECS as last                  amended                  on July 22, 1999, and currently in effect, consisting of the following:                  (a) the Certificate of Incorporation of GECS as in effect immediately                  prior to the filing of a Certificate of Amendment on July 22, 1999                  (Incorporated by reference to Exhibit 3(i) of the GECS’ Form 10-K Report                  for the year ended December 31, 1993); and (b) a Certificate of                  Amendment                  filed with the Office of the Secretary of State, State of Delaware                  on July                  22, 1999 (Incorporated by reference to Exhibit 3(i) of GECS’ Form 10-Q                  Report for the quarter ended June 26, 1999). |
|   |
|   | 3(ii)                 |   | A                  complete copy of the By-Laws of GECS as last amended on September                  19,                  2002, and currently in effect (Incorporated by reference to Exhibit                  3(ii)                  of GECS’ Form 10-K Report for the year ended December 31,                  2003).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |
|   | 4(a)                  |   | Amended                  and Restated General Electric Capital Corporation Standard Global                  Multiple                  Series Indenture Provisions dated as of February 27, 1997 (Incorporated                  by                  reference to Exhibit 4(a) to GECC’s Registration Statement on Form S-3,                  File No. 333-59707).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |
|   | 4(b)                  |   | Third                  Amended and Restated Indenture dated as of February 27, 1997, between                  GECC                  and The Bank of New York as successor trustee (Incorporated by                  reference                  to Exhibit 4(c) to GECC’s Registration Statement on Form S-3, File No.                  333-59707).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |
|   | 4(c)                  |   | First                  Supplemental Indenture dated as of May 3, 1999, supplemental to                  Third                  Amended and Restated Indenture dated as of February 27, 1997 (Incorporated                  by reference to Exhibit 4(dd) to GECC’s Post-Effective Amendment No. 1 to                  Registration Statement on Form S-3, File No.                  333-76479).                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |
|   | 4(d)                  |   | Second                  Supplemental Indenture dated as of July 2, 2001, supplemental to                  Third                  Amended and Restated Indenture dated as of February 27, 1997 (Incorporated                  by reference to Exhibit 4(f) to GECC’s Post-Effective Amendment No. 1 to                  Registration Statement on Form S-3, File No.                  333-40880).                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |
|   | 4(e)                  |   | Third                  Supplemental Indenture dated as of November 22, 2002, supplemental                  to                  Third Amended and Restated Indenture dated as of February 27, 1997                  (Incorporated by reference to Exhibit 4(cc) to Post-Effective Amendment                  No. 1 to GECC’s Registration Statement on Form S-3, File No.                  333-100527).                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   | 4(f)                  |   | Eighth                  Amended and Restated Fiscal and Paying Agency Agreement among GECC,                  GE                  Capital Australia Funding Pty Ltd, GE Capital European Funding,                  GE Capital                  Canada Funding Company, GE Capital UK Funding and JPMorgan Chase                  Bank,                  N.A. and J.P. Morgan Bank Luxembourg S.A. dated as of May 12,                  2006.*                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

|   | 4(g)   |   | Form                of Global Medium-Term Note, Series A, Fixed Rate Registered Note                (Incorporated by reference to Exhibit 4(m) to GECC’s Registration                Statement on Form S-3, File No. 333-100527).                                                                                                                                              |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   | 4(h)   |   | Form                of Global Medium-Term Note, Series A, Floating Rate Registered Note                (Incorporated by reference to Exhibit 4(n) to GECC’s Registration                Statement on Form S-3, File No. 333-100527).                                                                                                                                           |
|   |
|   | 4(i)   |   | Form                of Euro Medium-Term Note and Debt Security - Permanent Global Fixed                Rate                Bearer Note.*                                                                                                                                                                                                                                             |
|   |
|   | 4(j)   |   | Form                of Euro Medium-Term Note and Debt Security - Permanent Global Floating                Rate Bearer Note.*                                                                                                                                                                                                                                                         |
|   |
|   | 4(k)   |   | Form                of Euro Medium-Term Note and Debt Security - Temporary Global Fixed                Rate                Bearer Note.*                                                                                                                                                                                                                                             |
|   |
|   | 4(l)   |   | Form                of Euro Medium-Term Note and Debt Security - Temporary Global Floating                Rate Bearer Note.*                                                                                                                                                                                                                                                         |
|   |
|   | 4(m)   |   | Form                of Euro Medium-Term Note and Debt Security - Definitive Fixed Rate                Bearer                Note.*                                                                                                                                                                                                                                                   |
|   |
|   | 4(n)   |   | Form                of Euro Medium-Term Note and Debt Security - Definitive Floating                Rate                Bearer Note.*                                                                                                                                                                                                                                                |
|   |
|   | 4(o)   |   | Agreement                to furnish to the Securities and Exchange Commission upon request                a copy                of instruments defining the rights of holders of certain long-term                debt of                the registrant and all subsidiaries for which consolidated or                unconsolidated financial statements are required to be filed.* |
|   |
|   | 10(a)  |   | Transaction                Agreement by and between Swiss Reinsurance Company and General Electric                Company dated November 18, 2005 (Incorporated by reference to Exhibit                10(gg) of General Electric Company’s Form 10-K Report for the year ended                December 31, 2005).                                                             |
|   |   |   |                                                                                                                                                                                                                                                                                                                                                                                 |
|   | 12(a)  |   | Computation                of Ratio of Earnings to Fixed Charges.*                                                                                                                                                                                                                                                                                                                   |
|   |
|   | 12(b)  |   | Computation                of Ratio of Earnings to Combined Fixed Charges and Preferred Stock                Dividends.*                                                                                                                                                                                                                                                             |
|   |
|   | 23(ii) |   | Consent                of KPMG LLP.*                                                                                                                                                                                                                                                                                                                                                 |

|   | 24    |   | Power                of Attorney.*                                                                                                            |
|--------|-------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|
|   |
|   | 31(a) |   | Certification                Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange                Act of 1934, as amended.* |

----

|                                                             |
|------------------------------------------------------------------|
|                                                             | 31(b) |   | Certification                Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange                Act of 1934, as amended.* |
|                                                             |
|                                                             | 32 |   | Certification                Pursuant to 18 U.S.C. Section 1350.* |
|                                                             |   |   |   |
|                                                             | 99(a) |   | Income                Maintenance Agreement dated March 28, 1991, between General Electric                Company and General Electric Capital Corporation. (Incorporated by                reference to Exhibit 99(h) to GECC’s Registration Statement on Form S-3,                File No. 333-100527). |
|                                                             |
|                                                             | 99(b) |   | The                consolidated financial statements of General Electric Company, set                forth                in the Annual Report on Form 10-K of General Electric Company (S.E.C.                File                No. 001-00035) for the year ended December 31, 2006, (pages 45 through                113) and Exhibit 12 (Ratio of Earnings to Fixed Charges) of General                Electric Company. |
|                                                             |
|   * Filed                electronically herewith. |

----

**General      Electric Capital Services, Inc. and consolidated      affiliates**

**Schedule      I - Condensed Financial Information of Registrant**

**General      Electric Capital Services, Inc.**

**Condensed      Statement of Current and Retained Earnings**

| *For                the years ended December 31 (In millions)*               |   | **2006** |   |   | **2005** |   |   | **2004** |   |
|------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
|                                                                         |   |     |   |   |     |   |   |     |   |
| **Revenues**                                                                 | $      | 147      |   | $      | 330      |   | $      | 132      |   |
|                                                                         |   |     |   |   |     |   |   |     |   |
| **Expenses**                                                                 |   |     |   |   |     |   |   |     |   |
| Interest                                                                     |   | 582      |   |   | 405      |   |   | 217      |   |
| Operating                and administrative                                  |   | 283      |   |   | 678      |   |   | 174      |   |
| Total                expenses                                                |   | 865      |   |   | 1,083    |   |   | 391      |   |
|                                                                         |   |     |   |   |     |   |   |     |   |
| Loss                before income taxes and equity in earnings of affiliates |   | (718     | )      |   | (753     | )      |   | (259     | )      |
| Income                tax benefit (expense)                                  |   | 938      |   |   | (814     | )      |   | 39       |   |
| Equity                in earnings of affiliates                              |   | 10,438   |   |   | 9,144    |   |   | 8,948    |   |
|                                                                         |   |     |   |   |     |   |   |     |   |
| **Net                earnings**                                         |   | 10,658   |   |   | 7,577    |   |   | 8,728    |   |
| Dividends                                                                    |   | (9,987   | )      |   | (7,816   | )      |   | (3,105   | )      |
| Retained                earnings at January 1                                |   | 34,906   |   |   | 35,145   |   |   | 29,522   |   |
|                                                                         |   |     |   |   |     |   |   |     |   |
| **Retained                earnings at December 31**                     | $      | 35,577   |   | $      | 34,906   |   | $      | 35,145   |   |
|                                                                         |   |     |   |   |     |   |   |     |   |

| The                notes to condensed financial statements are an integral part of this                statement.  |   |
|-------------------------------------------------------------------------------------------------------------------------|--------|

----

**General      Electric Capital Services, Inc. and consolidated      affiliates**

**Schedule      I - Condensed Financial Information of Registrant -      (Continued)**

**General      Electric Capital Services, Inc.**

**Condensed      Statement of Financial Position**

| *At                December 31 (In millions, except share amounts)*                                    |   | **2006** |   |   | **2005** |   |
|--------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|
|                                                                                                   |   |     |   |   |     |   |
| **Assets**                                                                                             |   |     |   |   |     |   |
| Cash                and equivalents                                                                    | $      | 1,022    |   | $      | 743      |   |
| Investment                in and advances to affiliates                                                |   | 59,737   |   |   | 59,047   |   |
| Other                assets                                                                            |   | 3,026    |   |   | 414      |   |
| Total                assets                                                                            | $      | 63,785   |   | $      | 60,204   |   |
|                                                                                                   |   |     |   |   |     |   |
| **Liabilities                and equity**                                                              |   |     |   |   |     |   |
| Borrowings                                                                                             | $      | 8,119    |   | $      | 7,889    |   |
| Other                liabilities                                                                       |   | 1,069    |   |   | 1,003    |   |
| Total                liabilities                                                                       |   | 9,188    |   |   | 8,892    |   |
|                                                                                                   |   |     |   |   |     |   |
| Cumulative                preferred stock, $10,000 par value (80,000 shares                authorized; |   |     |   |   |     |   |
| 51,000                shares issued and held primarily by consolidated affiliates                at    |   |     |   |   |     |   |
| December                31, 2006 and 2005)                                                             |   | 510      |   |   | 510      |   |
| Common                stock, $1,000 par value (1,260 shares authorized at                              |   |     |   |   |     |   |
| December                31, 2006 and 2005, and 1,064 shares issued and outstanding                at   |   |     |   |   |     |   |
| December                31, 2006 and 2005)                                                             |   | 1        |   |   | 1        |   |
| Accumulated                gains (losses) - net                                                        |   |     |   |   |     |   |
| Investment                securities                                                                   |   | 1,594    |   |   | 1,754    |   |
| Currency                translation adjustments                                                        |   | 4,837    |   |   | 2,287    |   |
| Cash                flow hedges                                                                        |   | (171     | )      |   | (343     | )      |
| Benefit                plans                                                                           |   | (278     | )      |   | (179     | )      |
| Additional                paid-in capital                                                              |   | 12,527   |   |   | 12,376   |   |
| Retained                earnings                                                                       |   | 35,577   |   |   | 34,906   |   |
| Total                shareowner’s equity                                                         |   | 54,597   |   |   | 51,312   |   |
| Total                liabilities and equity                                                            | $      | 63,785   |   | $      | 60,204   |   |
|                                                                                                   |   |     |   |   |     |   |

| The                sum of accumulated gains (losses) on investment securities, currency                translation adjustments, cash flow hedges and benefit plans constitutes                “Accumulated nonowner changes other than earnings,” and was $5,982 million                and $3,519 million at December 31, 2006 and 2005,                respectively.  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| The                notes to condensed financial statements are an integral part of this                statement.                                                                                                                                                                                                                                                                        |   |

----

**General      Electric Capital Services, Inc. and consolidated      affiliates**

**Schedule      I - Condensed Financial Information of Registrant -      (Continued)**

**General      Electric Capital Services, Inc.**

**Condensed      Statement of Cash Flows**

| *For                the years ended December 31 (In millions)*                                                    | **2006** |   | **2005** |   | **2004** |   |
|-------------------------------------------------------------------------------------------------------------------|----------|--------|----------|--------|----------|--------|
|                                                                                                              |     |   |     |   |     |   |
| **Cash                from operating activities**                                                                 | $        | 7,716  |     | $      | 7,324    |   | $ | 3,122 |   |
| **Cash                flows****-****investing activities**                                                        |     |   |     |   |     |   |   |   |   |
| Decrease                (increase) in investment in and advances to affiliates                                    |     | 4,019  |     |   | 559      |   |   | (1,120 | ) |
| Net                decrease (increase) in other assets                                                            |     | (1,581 | )        |   | 489      |   |   | 124 |   |
|                                                                                                              |     |   |     |   |     |   |   |   |   |
| **Cash                from (used for) investing activities**                                                      |     | 2,438  |     |   | 1,048    |   |   | (996 | ) |
|                                                                                                              |     |   |     |   |     |   |   |   |   |
| **Cash                flows****-****financing activities**                                                        |     |   |     |   |     |   |   |   |   |
| Net                increase (decrease) in borrowings                                                              |     | (39    | )        |   | 142      |   |   | 499 |   |
| Dividends                paid to shareowner                                                                       |     | (9,847 | )        |   | (7,816   | )      |   | (3,105 | ) |
| All                other financing activities                                                                     |     | 11     |     |   | -        |   |   | - |   |
|                                                                                                              |     |   |     |   |     |   |   |   |   |
| **Cash                used for financing activities**                                                             |     | (9,875 | )        |   | (7,674   | )      |   | (2,606 | ) |
|                                                                                                              |     |   |     |   |     |   |   |   |   |
|                                                                                                              |     |   |     |   |     |   |   |   |   |
| **Increase                (decrease) in cash and equivalents during year**                                        |     | 279    |     |   | 698      |   |   | (480 | ) |
| Cash                and equivalents at beginning of year                                                          |     | 743    |     |   | 45       |   |   | 525 |   |
| Cash                and equivalents at end of year                                                                | $        | 1,022  |     | $      | 743      |   | $ | 45 |   |
|                                                                                                              |     |   |     |   |     |   |   |   |   |
|                                                                                                              |     |
| The                notes to condensed financial statements are an integral part of this                statement. |     |

----

**General      Electric Capital Services, Inc. and consolidated      affiliates**

**Schedule      I - Condensed Financial Information of Registrant -      (Concluded)**

**General      Electric Capital Services, Inc.**

**Notes      to Condensed Financial Statements**

**Financial      statements presentation**

**Income      taxes**

**Dividends      from affiliates**

----

**Signatures**

|                             |   | General                Electric Capital Services, Inc. |
|----------------------------------|--------|--------------------------------------------------------|
|                             |   |                                              |
| February                27, 2007 |   | By: /s/                Jeffrey R. Immelt          |   |
|                             |   | Jeffrey                R. Immelt                       |
|                             |   | Chief                Executive Officer                 |

----

| Signature                                           |                                           | Title                                               |   | Date                             |
|-----------------------------------------------------|------------------------------------------------|-----------------------------------------------------|--------|----------------------------------|
|                                           |                                           |                                                |   |                             |
| /s/                Jeffrey R. Immelt                |                                           | Chief                Executive Officer              |   | February                27, 2007 |
| Jeffrey                R. Immelt                    |                                           | (Principal                Executive Officer)        |   |                             |
|                                           |                                           |                                                |   |                             |
| /s/                Keith S. Sherin                  |                                           | Chief                Financial Officer              |   | February                27, 2007 |
| Keith                S. Sherin                      |                                           | (Principal                Financial Officer)        |   |                             |
|                                           |                                           |                                                |   |                             |
| /s/                Philip D. Ameen                  |                                           | Senior                Vice President and Controller |   | February                27, 2007 |
| Philip                D. Ameen                      |                                           | (Principal                Accounting Officer)       |   |                             |
|                                                |                                           |                                                |   |                             |
|                                                |                                           |                                                |   |                             |
| CHARLES                E. ALEXANDER*                |                                           | Director                                            |   |                             |
| JEFFREY                S. BORNSTEIN*                |                                           | Director                                            |   |                             |
| KATHRYN                A. CASSIDY*                  |                                           | Director                                            |   |                             |
| JAMES                A. COLICA*                     |                                           | Director                                            |   |                             |
| PAMELA                DALEY*                        |                                           | Director                                            |   |                             |
| BRACKETT                B. DENNISTON*               |                                           | Director                                            |   |                             |
| JEFFREY                R. IMMELT*                   |                                           | Director                                            |   |                             |
| MICHAEL                A. NEAL*                     |                                           | Director                                            |   |                             |
| DAVID                R. NISSEN*                     |                                           | Director                                            |   |                             |
| RONALD                R. PRESSMAN*                  |                                           | Director                                            |   |                             |
| DEBORAH                M. REIF*                     |                                           | Director                                            |   |                             |
| JOHN                G. RICE*                        |                                           | Director                                            |   |                             |
| JOHN                M. SAMUELS*                     |                                           | Director                                            |   |                             |
| KEITH                S. SHERIN*                     |                                           | Director                                            |   |                             |
| LLOYD                G. TROTTER*                    |                                           | Director                                            |   |                             |
| ROBERT                C. WRIGHT*                    |                                           | Director                                            |   |                             |
|                                                |                                           |                                                |   |                             |
| A                MAJORITY OF THE BOARD OF DIRECTORS |                                           |                                                |
|                                           |                                           |                                                |   |                             |
| *By:                                                | /s/                Philip D. Ameen             |                                                |   | February                27, 2007 |
|                                                | Philip                D. AmeenAttorney-in-fact |                                                |   |                             |

----