<PAGE>

                                       F-1

ANNUAL REPORT PAGE 41


FINANCIAL SECTION

     CONTENTS

     AUDITED FINANCIAL STATEMENTS
42   Earnings
42   Changes in Share Owners' Equity
44   Financial Position
46   Cash Flows
67   Notes to Consolidated
     Financial Statements

     MANAGEMENT'S DISCUSSION
48   Operations
48     Consolidated Operations
50     Segment Operations
57     International Operations
58   Financial Resources and Liquidity
64   Critical Accounting Policies
64   Selected Financial Data

92   INDEPENDENT AUDITORS' REPORT

MANAGEMENT'S DISCUSSION OF FINANCIAL RESPONSIBILITY

Events of 2001 have stressed the world's economy and capital markets. At GE,
having well informed, confident investors is a critical management objective. We
take full responsibility for this objective, adopting appropriate accounting
policies and devoting our full, unyielding commitment to ensuring that those
policies are applied properly and consistently. We make every effort to report
in a manner that is relevant, complete and understandable. We welcome and
evaluate each suggestion from those who use our reports. Management meets its
responsibility for this objective in the following ways:

RIGOROUS MANAGEMENT OVERSIGHT. Members of our corporate leadership team review
each of our businesses at least six times a year on matters ranging from overall
strategy and financial performance to staffing and compliance. Our business
leaders constantly monitor real-time financial and operating systems that enable
early identification of, and responses to, opportunities and potential issues.
Our Board of Directors oversees management's conduct of the business, and our
Audit Committee, consisting entirely of outside directors, oversees the
Company's internal system of financial controls.

DEDICATION TO CONTROLLERSHIP. We maintain a dynamic system of internal financial
controls designed to ensure accurate financial record-keeping, protection of
physical and intellectual property and efficient use of resources. We recruit
and retain a world-class financial team, including more than 450 internal
auditors who conduct thousands of audits each year in every geographic area and
every GE business. Senior management and the Audit Committee oversee the scope
and results of these reviews. We continuously reinforce key employee
responsibilities around the world through our integrity policies, which require
compliance with law and policy, including financial integrity and avoiding
conflicts of interest. These integrity policies, published in 27 languages, are
provided to each of our more than 300,000 global employees. Our internal
auditors conduct extensive inquiries into compliance with these policies. Our
strong compliance culture requires employees to raise any concerns and prohibits
retribution for doing so. We hold all employees, including top management,
accountable for compliance with our integrity policies.

VISIBILITY TO INVESTORS. As one of the most widely followed companies in the
world, we are keenly aware of the importance of full and open presentation of
our financial position and operating results. We hold more than 200 analyst and
investor meetings every year and communicate all material information covered in
those meetings to the public. Investors have given GE 16 first-place awards in
the last five years as reported by INVESTOR RELATIONS magazine. We are in
regular contact with representatives of the major rating agencies and our debt
continues to receive their highest ratings. We welcome the strong oversight of
our financial reporting by our independent audit firm, KPMG LLP, whose
representatives have direct access to the Audit Committee. Their report for 2001
appears on page 92.

Great companies are built on the foundation of accurate financial information
and compliance with the law. The financial information in this report is an
important part of that foundation. We present that information proudly, with the
goal that those who use it will understand GE and share our confidence in its
future.


/s/ Jeffrey R. Immelt           /s/ Keith S. Sherin
Jeffrey R. Immelt               Keith S. Sherin
Chairman of the Board           Senior Vice President, Finance,
and Chief Executive Officer     and Chief Financial Officer     February 8, 2002


<PAGE>
                                       F-2

ANNUAL REPORT PAGE 42


STATEMENT OF EARNINGS

<TABLE>
<CAPTION>
                                                                                    General Electric Company
                                                                                   and consolidated affiliates
                                                                              -----------------------------------
For the years ended December 31 (In millions; per-share amounts in dollars)        2001         2000        1999
-----------------------------------------------------------------------------------------------------------------
<S>                                                                           <C>          <C>          <C>
REVENUES
   Sales of goods                                                             $  52,677    $  54,828    $  47,785
   Sales of services                                                             18,722       18,126       16,283
   Other income (note 2)                                                            234          436          798
   Earnings of GECS before accounting changes                                      --           --           --
   GECS revenues from services (note 3)                                          54,280       56,463       46,764
                                                                               ----------------------------------
     Total revenues                                                             125,913      129,853      111,630
                                                                               ----------------------------------
COSTS AND EXPENSES (note 4)
   Cost of goods sold                                                            35,678       39,312       34,554
   Cost of services sold                                                         13,419       12,511       11,404
   Interest and other financial charges                                          11,062       11,720       10,013
   Insurance losses and policyholder and annuity benefits                        15,062       14,399       11,028
   Provision for losses on financing receivables (note 13)                        2,481        2,045        1,671
   Other costs and expenses                                                      28,162       30,993       27,018
   Minority interest in net earnings of consolidated affiliates                     348          427          365
                                                                               ----------------------------------
     Total costs and expenses                                                   106,212      111,407       96,053
                                                                               ----------------------------------

EARNINGS BEFORE INCOME TAXES AND ACCOUNTING CHANGES                              19,701       18,446       15,577
Provision for income taxes (note 7)                                              (5,573)      (5,711)      (4,860)
                                                                               ----------------------------------
EARNINGS BEFORE ACCOUNTING CHANGES                                               14,128       12,735       10,717
Cumulative effect of accounting changes (note 1)                                   (444)        --           --
                                                                               ----------------------------------
NET EARNINGS                                                                  $  13,684    $  12,735    $  10,717
=================================================================================================================
PER-SHARE AMOUNTS (note 8)
   Per-share amounts before accounting changes
     Diluted earnings per share                                               $    1.41    $    1.27    $    1.07
     Basic earnings per share                                                 $    1.42    $    1.29    $    1.09
   Per-share amounts after accounting changes
     Diluted earnings per share                                               $    1.37    $    1.27    $    1.07
     Basic earnings per share                                                 $    1.38    $    1.29    $    1.09
=================================================================================================================
DIVIDENDS DECLARED PER SHARE                                                  $    0.66    $    0.57    $    0.48 2/3
=================================================================================================================
</TABLE>

<TABLE>

CONSOLIDATED STATEMENT OF CHANGES IN SHARE OWNERS' EQUITY
<CAPTION>

(In millions)                                                     2001       2000       1999
--------------------------------------------------------------------------------------------
<S>                                                           <C>        <C>        <C>
CHANGES IN SHARE OWNERS' EQUITY (note 24)
Balance at January 1                                          $ 50,492   $ 42,557   $ 38,880
                                                              ------------------------------
Dividends and other transactions with share owners              (7,529)    (3,044)    (4,632)
                                                              ------------------------------
Changes other than transactions with share owners
   Increase attributable to net earnings                        13,684     12,735     10,717
   Investment securities--net                                     (306)      (552)    (1,776)
   Currency translation adjustments                               (562)    (1,204)      (632)
   Derivatives qualifying as hedges                               (955)      --         --
                                                              ------------------------------
     Total changes other than transactions with share owners    11,861     10,979      8,309
                                                              ------------------------------
Balance at December 31                                        $ 54,824   $ 50,492   $ 42,557
============================================================================================
The notes to consolidated financial statements on pages 67-92 are an integral
part of these statements.

</TABLE>


<PAGE>
                                       F-3

ANNUAL REPORT PAGE 43


STATEMENT OF EARNINGS (CONT)
<TABLE>
<CAPTION>

                                                                               GE                         GECS
For the years ended December 31 (In millions;                   ----------------------------  ----------------------------
per-share amounts in dollars)                                       2001      2000      1999      2001      2000      1999
--------------------------------------------------------------------------------------------------------------------------
<S>                                                             <C>       <C>       <C>       <C>       <C>       <C>
REVENUES
   Sales of goods                                               $ 49,057  $ 45,427  $ 39,045  $  3,627  $  9,408  $  8,740
   Sales of services                                              18,961    18,380    16,600      --        --        --
   Other income (note 2)                                             433       498       856      --        --        --
   Earnings of GECS before accounting changes                      5,586     5,192     4,443      --        --        --
   GECS revenues from services (note 3)                             --        --        --      54,726    56,769    47,009
                                                                ----------------------------  ----------------------------
     Total revenues                                               74,037    69,497    60,944    58,353    66,177    55,749
                                                                ----------------------------  ----------------------------
COSTS AND EXPENSES (note 4)
   Cost of goods sold                                             32,419    30,782    26,578     3,266     8,537     7,976
   Cost of services sold                                          13,658    12,765    11,721      --        --        --
   Interest and other financial charges                              817       811       810    10,598    11,111     9,359
   Insurance losses and policyholder and annuity benefits           --        --        --      15,062    14,399    11,028
   Provision for losses on financing receivables (note 13)          --        --        --       2,481     2,045     1,671
   Other costs and expenses                                        8,637     8,392     7,732    19,817    22,767    19,433
   Minority interest in net earnings of consolidated affiliates      185       213       179       163       214       186
                                                                ----------------------------  ----------------------------
     Total costs and expenses                                     55,716    52,963    47,020    51,387    59,073    49,653
                                                                ----------------------------  ----------------------------
EARNINGS BEFORE INCOME TAXES AND ACCOUNTING CHANGES               18,321    16,534    13,924     6,966     7,104     6,096
Provision for income taxes (note 7)                               (4,193)   (3,799)   (3,207)   (1,380)   (1,912)   (1,653)
                                                                ----------------------------  ----------------------------
EARNINGS BEFORE ACCOUNTING CHANGES                                14,128    12,735    10,717     5,586     5,192     4,443
Cumulative effect of accounting changes (note 1)                    (444)     --        --        (169)     --        --
                                                                ----------------------------  ----------------------------
NET EARNINGS                                                    $ 13,684  $ 12,735  $ 10,717  $  5,417  $  5,192  $  4,443
==========================================================================================================================
In the consolidating data on this page, "GE" means the basis of consolidation as
described in note 1 to the consolidated financial statements; "GECS" means
General Electric Capital Services, Inc. and all of its affiliates and associated
companies. Transactions between GE and GECS have been eliminated from the
"General Electric Company and consolidated affiliates" columns on page 42.
</TABLE>


<PAGE>
                                       F-4

ANNUAL REPORT PAGE 44

STATEMENT OF FINANCIAL POSITION

<TABLE>
<CAPTION>

                                                                 General Electric Company
                                                               and consolidated affiliates
                                                               ---------------------------
At December 31 (In millions)                                           2001        2000
------------------------------------------------------------------------------------------
<S>                                                               <C>         <C>
ASSETS
Cash and equivalents                                              $   9,082   $   8,195
Investment securities (note 9)                                      101,017      91,339
Current receivables (note 10)                                         9,590       9,502
Inventories (note 11)                                                 8,565       7,812
Financing receivables (investments in time sales, loans and
   financing leases)--net (notes 12 and 13)                         174,032     143,299
Insurance receivables (note 14)                                      27,317      23,802
Other GECS receivables                                               11,105      11,714
Property, plant and equipment (including equipment leased
   to others)--net (note 15)                                         42,140      40,015
Investment in GECS                                                     --          --
Intangible assets--net (note 16)                                     31,649      27,441
All other assets (note 17)                                           80,526      73,887
                                                                  ------------------------
TOTAL ASSETS                                                      $ 495,023   $ 437,006
==========================================================================================
LIABILITIES AND EQUITY
Short-term borrowings (note 18)                                   $ 153,076   $ 119,180
Accounts payable, principally trade accounts                         18,158      14,853
Progress collections and price adjustments accrued                   11,751       8,271
Dividends payable                                                     1,787       1,589
All other current costs and expenses accrued                         14,132      12,219
Long-term borrowings (note 18)                                       79,806      82,132
Insurance liabilities, reserves and annuity benefits (note 19)      114,223     106,150
All other liabilities (note 20)                                      32,921      28,494
Deferred income taxes (note 21)                                       9,130       8,690
                                                                  ------------------------
   Total liabilities                                                434,984     381,578
                                                                  ------------------------
Minority interest in equity of consolidated affiliates (note 22)      5,215       4,936
                                                                  ------------------------
Common stock (9,925,938,000 and 9,932,006,000 shares outstanding
   at year-end 2001 and 2000, respectively)                             669         669
Accumulated gains/(losses)--net
   Investment securities                                               (232)         74
   Currency translation adjustments                                  (3,136)     (2,574)
   Derivatives qualifying as hedges                                    (955)       --
Other capital                                                        16,693      15,195
Retained earnings                                                    68,701      61,572
Less common stock held in treasury                                  (26,916)    (24,444)
                                                                  ------------------------
   Total share owners' equity (notes 24 and 25)                      54,824      50,492
                                                                  ------------------------
TOTAL LIABILITIES AND EQUITY                                      $ 495,023   $ 437,006
==========================================================================================
The sum of accumulated gains/(losses) on investment securities, currency
translation adjustments, and derivatives qualifying as hedges constitutes
"Accumulated nonowner changes other than earnings," as shown in note 24, and was
$(4,323) and $(2,500) at year-end 2001 and 2000, respectively.

The notes to consolidated financial statements on pages 67-92 are an integral
part of this statement.
</TABLE>


<PAGE>
                                       F-5

ANNUAL REPORT PAGE 45

STATEMENT OF FINANCIAL POSITION (CONT)

<TABLE>
<CAPTION>

                                                                            GE                    GECS
                                                                  ---------------------  ---------------------
At December 31 (In millions)                                           2001       2000        2001        2000
--------------------------------------------------------------------------------------------------------------
<S>                                                               <C>         <C>        <C>         <C>
ASSETS
Cash and equivalents                                              $  10,447   $  7,210   $   7,314   $   6,052
Investment securities (note 9)                                          879      1,009     100,138      90,330
Current receivables (note 10)                                         9,805      9,727        --          --
Inventories (note 11)                                                 8,295      7,146         270         666
Financing receivables (investments in time sales, loans and
   financing leases)--net (notes 12 and 13)                            --         --       174,032     143,299
Insurance receivables (note 14)                                        --         --        27,317      23,802
Other GECS receivables                                                 --         --        13,267      13,288
Property, plant and equipment (including equipment leased
   to others)--net (note 15)                                         12,799     12,199      29,341      27,816
Investment in GECS                                                   28,590     23,022        --          --
Intangible assets--net (note 16)                                     12,932     12,424      18,717      15,017
All other assets (note 17)                                           25,986     24,028      55,088      50,366
                                                                  ---------------------  ---------------------
TOTAL ASSETS                                                      $ 109,733   $ 96,765   $ 425,484   $ 370,636
==============================================================================================================
LIABILITIES AND EQUITY
Short-term borrowings (note 18)                                   $   1,722   $    940   $ 160,844   $ 123,992
Accounts payable, principally trade accounts                          6,680      6,153      13,705      10,436
Progress collections and price adjustments accrued                   11,751      8,271        --          --
Dividends payable                                                     1,787      1,589        --          --
All other current costs and expenses accrued                         14,132     12,219        --          --
Long-term borrowings (note 18)                                          787        841      79,091      81,379
Insurance liabilities, reserves and annuity benefits (note 19)         --         --       114,223     106,150
All other liabilities (note 20)                                      16,089     14,840      16,647      13,451
Deferred income taxes (note 21)                                       1,013        452       8,117       8,238
                                                                  ---------------------  ---------------------
   Total liabilities                                                 53,961     45,305     392,627     343,646
                                                                  ---------------------  ---------------------
Minority interest in equity of consolidated affiliates (note 22)        948        968       4,267       3,968
                                                                  ---------------------  ---------------------
Common stock (9,925,938,000 and 9,932,006,000 shares outstanding
   at year-end 2001 and 2000, respectively)                             669        669           1           1
Accumulated gains/(losses)--net
   Investment securities                                               (232)        74        (348)          4
   Currency translation adjustments                                  (3,136)    (2,574)       (840)       (957)
   Derivatives qualifying as hedges                                    (955)      --          (890)       --
Other capital                                                        16,693     15,195       5,989       2,752
Retained earnings                                                    68,701     61,572      24,678      21,222
Less common stock held in treasury                                  (26,916)   (24,444)       --          --
                                                                  ---------------------  ---------------------
   Total share owners' equity (notes 24 and 25)                      54,824     50,492      28,590      23,022
                                                                  ---------------------  ---------------------
TOTAL LIABILITIES AND EQUITY                                      $ 109,733   $ 96,765   $ 425,484   $ 370,636
==============================================================================================================
In the consolidating data on this page, "GE" means the basis of consolidation as
described in note 1 to the consolidated financial statements; "GECS" means
General Electric Capital Services, Inc. and all of its affiliates and associated
companies. Transactions between GE and GECS have been eliminated from the
"General Electric Company and consolidated affiliates" columns on page 44.
</TABLE>

<PAGE>
                                       F-6

ANNUAL REPORT PAGE 46


STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                           General Electric Company
                                                                         and consolidated affiliates
                                                                       ------------------------------
For the years ended December 31 (In millions)                              2001       2000       1999
-----------------------------------------------------------------------------------------------------
<S>                                                                    <C>        <C>        <C>
CASH FLOWS--OPERATING ACTIVITIES
Net earnings                                                           $ 13,684   $ 12,735   $ 10,717
Adjustments to reconcile net earnings to cash provided
   from operating activities
     Cumulative effect of accounting changes                                444       --         --
     Depreciation and amortization of property, plant and equipment       5,370      5,039      4,908
     Amortization of goodwill and other intangibles                       1,719      2,697      1,783
     Earnings (before accounting changes) retained by GECS                 --         --         --
     Deferred income taxes                                                1,426      1,153      1,502
     Decrease (increase) in GE current receivables                          197       (537)       143
     Decrease (increase) in inventories                                    (485)      (924)       266
     Increase in accounts payable                                         4,676      3,297        820
     Increase (decrease) in insurance liabilities and reserves            8,194     (1,009)     4,584
     Provision for losses on financing receivables                        2,481      2,045      1,671
     All other operating activities                                      (5,511)    (1,806)    (1,801)
                                                                       ------------------------------
CASH FROM OPERATING ACTIVITIES                                           32,195     22,690     24,593
                                                                       ------------------------------
CASH FLOWS--INVESTING ACTIVITIES
Additions to property, plant and equipment                              (15,520)   (13,967)   (15,502)
Dispositions of property, plant and equipment                             7,345      6,767      6,262
Net increase in GECS financing receivables                              (13,952)   (16,076)   (12,628)
Payments for principal businesses purchased                             (12,429)    (2,332)   (11,654)
All other investing activities                                           (5,558)   (12,091)    (8,657)
                                                                       ------------------------------
CASH USED FOR INVESTING ACTIVITIES                                      (40,114)   (37,699)   (42,179)
                                                                       ------------------------------
CASH FLOWS--FINANCING ACTIVITIES
Net increase (decrease) in borrowings (maturities of 90 days or less)    20,482     (8,243)     6,171
Newly issued debt (maturities longer than 90 days)                       32,071     47,645     48,158
Repayments and other reductions (maturities longer than 90 days)        (37,001)   (32,762)   (27,539)
Net dispositions (purchases) of GE shares for treasury                   (2,435)       469     (1,002)
Dividends paid to share owners                                           (6,358)    (5,401)    (4,587)
All other financing activities                                            2,047     12,942        622
                                                                       ------------------------------
CASH FROM (USED FOR) FINANCING ACTIVITIES                                 8,806     14,650     21,823
                                                                       ------------------------------
INCREASE (DECREASE) IN CASH AND EQUIVALENTS DURING YEAR                     887       (359)     4,237
Cash and equivalents at beginning of year                                 8,195      8,554      4,317
                                                                       ------------------------------
Cash and equivalents at end of year                                    $  9,082   $  8,195   $  8,554
=====================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION
Cash paid during the year for interest                                 $(11,125)  $(11,617)  $(10,078)
Cash recovered (paid) during the year for income taxes                   (1,487)    (2,604)    (1,597)
=====================================================================================================
The notes to consolidated financial statements on pages 67-92 are an integral
part of this statement.
</TABLE>


<PAGE>
                                       F-7

ANNUAL REPORT PAGE 47

STATEMENT OF CASH FLOWS (CONT)

<TABLE>
<CAPTION>
                                                                                GE                                GECS
                                                                     -----------------------------   -------------------------------
For the years ended December 31 (In millions)                            2001       2000      1999       2001       2000       1999
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                  <C>        <C>       <C>        <C>        <C>        <C>
CASH FLOWS--OPERATING ACTIVITIES
Net earnings                                                         $ 13,684   $ 12,735  $ 10,717   $  5,417   $  5,192   $  4,443
Adjustments to reconcile net earnings to cash provided
   from operating activities
     Cumulative effect of accounting changes                              444       --        --          169       --         --
     Depreciation and amortization of property, plant and equipment     1,919      1,725     1,735      3,451      3,314      3,173
     Amortization of goodwill and other intangibles                       580        523       584      1,139      2,174      1,199
     Earnings (before accounting changes) retained by GECS             (3,625)    (3,370)   (2,777)      --         --         --
     Deferred income taxes                                                564        470       655        862        683        847
     Decrease (increase) in GE current receivables                        207       (550)      190       --         --         --
     Decrease (increase) in inventories                                  (881)      (663)      (61)       396       (261)       327
     Increase in accounts payable                                         364        845       104      4,804      3,047        699
     Increase (decrease) in insurance liabilities and reserves           --         --        --        8,194     (1,009)     4,584
     Provision for losses on financing receivables                       --         --        --        2,481      2,045      1,671
     All other operating activities                                     3,941      3,701       616     (9,314)    (5,901)    (2,124)
                                                                     -----------------------------   -------------------------------
CASH FROM OPERATING ACTIVITIES                                         17,197     15,416    11,763     17,599      9,284     14,819
                                                                     -----------------------------   -------------------------------
CASH FLOWS--INVESTING ACTIVITIES
Additions to property, plant and equipment                             (2,876)    (2,536)   (2,036)   (12,644)   (11,431)   (13,466)
Dispositions of property, plant and equipment                            --           53      --        7,345      6,714      6,262
Net increase in GECS financing receivables                               --         --        --      (13,952)   (16,076)   (12,628)
Payments for principal businesses purchased                            (1,436)    (1,156)   (1,594)   (10,993)    (1,176)   (10,060)
All other investing activities                                         (1,535)      (234)     (432)    (7,557)   (12,173)    (8,283)
                                                                     -----------------------------   -------------------------------
CASH USED FOR INVESTING ACTIVITIES                                     (5,847)    (3,873)   (4,062)   (37,801)   (34,142)   (38,175)
                                                                     -----------------------------   -------------------------------
CASH FLOWS--FINANCING ACTIVITIES
Net increase (decrease) in borrowings (maturities of 90 days or less)     327     (1,331)   (1,230)    23,634     (2,121)     7,308
Newly issued debt (maturities longer than 90 days)                      1,303        785       558     30,752     46,887     47,605
Repayments and other reductions (maturities longer than 90 days)         (950)      (855)     (615)   (36,051)   (31,907)   (26,924)
Net dispositions (purchases) of GE shares for treasury                 (2,435)       469    (1,002)      --         --         --
Dividends paid to share owners                                         (6,358)    (5,401)   (4,587)    (1,961)    (1,822)    (1,666)
All other financing activities                                           --         --        --        5,090     12,942        622
                                                                     -----------------------------   -------------------------------
CASH FROM (USED FOR) FINANCING ACTIVITIES                              (8,113)    (6,333)   (6,876)    21,464     23,979     26,945
                                                                     -----------------------------   -------------------------------
INCREASE (DECREASE) IN CASH AND EQUIVALENTS DURING YEAR                 3,237      5,210       825      1,262       (879)     3,589
Cash and equivalents at beginning of year                               7,210      2,000     1,175      6,052      6,931      3,342
                                                                     -----------------------------   -------------------------------
Cash and equivalents at end of year                                  $ 10,447   $  7,210  $  2,000   $  7,314   $  6,052   $  6,931
====================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION
Cash paid during the year for interest                               $   (358)  $   (388) $   (482)  $(10,767)  $(11,229)  $ (9,596)
Cash recovered (paid) during the year for income taxes                 (1,616)    (1,804)   (1,246)       129       (800)      (351)

====================================================================================================================================
In the consolidating data on this page, "GE" means the basis of consolidation as
described in note 1 to the consolidated financial statements; "GECS" means
General Electric Capital Services, Inc. and all of its affiliates and associated
companies. Transactions between GE and GECS have been eliminated from the
"General Electric Company and consolidated affiliates" columns on page 46.
</TABLE>



<PAGE>
                                       F-8

ANNUAL REPORT PAGE 48


MANAGEMENT'S DISCUSSION AND ANALYSIS

MANAGEMENT'S DISCUSSION OF OPERATIONS

OVERVIEW

General Electric Company's consolidated financial statements represent the
combination of manufacturing and nonfinancial services businesses of General
Electric Company (GE) and the accounts of General Electric Capital Services,
Inc. (GECS).

     Management's   Discussion  of  Operations  is  presented  in  three  parts:
Consolidated Operations, Segment Operations and International Operations.

CONSOLIDATED OPERATIONS

General Electric Company achieved record earnings and cash generation in 2001,
demonstrating the benefits of its diverse business portfolio and continuing
emphasis on globalization, growth in services, Digitization and Six Sigma
Quality.

     Revenues were $125.9 billion in 2001, a decrease of 3% from $129.9 billion
in 2000, reflecting a 6% increase in GE's industrial business revenues partially
offsetting a 12% decrease at GECS. As described on page 53, GECS revenues in
both years included the revenues of certain businesses significantly impacted by
strategic repositioning activities. Excluding such activities, consolidated
revenues increased 4%. Revenues in 2000 increased 16% from $111.6 billion in
1999, reflecting continued growth from global activities and services.

     Earnings before accounting changes increased to a record $14,128 million in
2001, an 11% increase from $12,735 million in 2000. Per-share earnings before
accounting changes increased to $1.41 during 2001, up 11% from the prior year's
$1.27. (Except as otherwise noted, earnings per share are presented on a diluted
basis.) The cumulative effect of accounting changes related to the adoption, as
of January 1, 2001, of Financial Accounting Standards Board (FASB) Statement of
Financial Accounting Standards (SFAS) 133, ACCOUNTING FOR DERIVATIVE INSTRUMENTS
AND HEDGING ACTIVITIES, as amended, and the consensus of the FASB's Emerging
Issues Task Force on Issue 99-20, RECOGNITION OF INTEREST INCOME AND IMPAIRMENT
ON PURCHASED AND RETAINED BENEFICIAL INTERESTS IN SECURITIZED FINANCIAL ASSETS.
Adoption of these standards resulted in a one-time, non-cash reduction of
earnings of $444 million ($0.04 per share). After these required accounting
changes, 2001 earnings and earnings per share were $13,684 million and $1.37,
respectively. Earnings and earnings per share in 2000 rose 19% from $10,717
million and $1.07, respectively, in 1999.

MAJOR PROVISIONS OF NEW ACCOUNTING STANDARDS that may be significant to GE's
financial statements in the future are described in the following paragraphs.

     SFAS 141, BUSINESS COMBINATIONS, and SFAS 142, GOODWILL AND OTHER
INTANGIBLE ASSETS, modify the accounting for business combinations, goodwill and
identifiable intangible assets. As of January 1, 2002, all goodwill and
indefinite-lived intangible assets must be tested for impairment and a
transition adjustment will be recognized. Management has not yet determined the
exact amount of goodwill impairment under these new standards, but believes the
non-cash transition charge to earnings will be approximately $1.0 billion ($0.10
per share) and recognized in the first quarter of 2002. Amortization of goodwill
will cease as of January 1, 2002, and, thereafter, all goodwill and any
indefinite-lived intangible assets must be tested at least annually for
impairment. The effect of the non-amortization provisions on 2002 operations
will be affected by 2002 acquisitions and cannot be forecast, but if these rules
had applied to goodwill in 2001, management believes that full-year 2001 net
earnings would have increased by approximately $1.1 billion ($0.11 per share).

     SFAS 143, ACCOUNTING FOR ASSET RETIREMENT OBLIGATIONS, requires recognition
of the fair value of obligations associated with the retirement of long-lived
assets when there is a legal obligation to incur such costs. This amount is
accounted for like an additional element of the corresponding asset's cost, and
is depreciated over that asset's useful life. SFAS 143 will be effective for GE
on January 1, 2003. Management has not yet determined the effect of adopting
this standard on GE's financial position and results of operations.

DIVIDENDS DECLARED in 2001 amounted to $6,555 million. Per-share dividends of
$0.66 were up 16% from 2000, following a 17% increase from the preceding year.
GE has rewarded its share owners with 26 consecutive years of dividend growth.
GE's dividend growth for the past five years has significantly outpaced dividend
growth of companies in the Standard & Poor's 500 stock index.

                                  [GRAPH HERE]
--------------------------------------------------------------------------------
GE/S&P CUMULATIVE DIVIDEND GROWTH SINCE 1996

                               1997       1998       1999       2000       2001
--------------------------------------------------------------------------------
GE                            12.84%     30.87%     53.49%     81.18%    109.66%
S&P 500                        4.03       8.72      11.68      12.08       5.64
--------------------------------------------------------------------------------


RETURN ON AVERAGE SHARE OWNERS' EQUITY was 27.1% (excluding the effect of
accounting changes) in 2001, about the same as in 2000. The 2000 return on
average share owners' equity improved from 26.8% in 1999.

Except as otherwise noted, the analysis in the remainder of this section
presents GE results with GECS reported on an equity basis.

GE TOTAL REVENUES were $74.0 billion in 2001, compared with $69.5 billion in
2000 and $60.9 billion in 1999.

o    GE sales of goods and services were $68.0 billion in 2001, an increase of
     7% from 2000, which in turn was 15% higher than in 1999. Volume was about
     7% higher in 2001, reflecting strong double-digit increases at Power
     Systems and Medical Systems, somewhat offset by decreases across most of
     the short-cycle businesses, particularly NBC, Plastics and Specialty

<PAGE>
                                       F-9

ANNUAL REPORT PAGE 49


     Materials. While overall selling prices were essentially flat in 2001, the
     effects of selling prices in various reporting segments differed markedly.
     The net effect in 2001 of exchange rates on sales denominated in currencies
     other than the U.S. dollar was slightly negative. Volume in 2000 was about
     16% higher than in 1999, with selling price and currency effects both
     slightly negative.

         For purposes of the financial statement display of sales and costs of
     sales on pages 42 and 43, "goods" is required by U.S. Securities and
     Exchange Commission regulations to include all sales of tangible products,
     and "services" must include all other sales, including broadcasting and
     information services activities. GE sales of both spare parts (goods) and
     repair services, referred to here by management as "product services
     revenues," constitute an important part of operations. Sales of product
     services were $18.8 billion in 2001, a 13% increase over 2000. Increases in
     product services revenues in 2001 and 2000 were widespread, led by
     continued strong growth at Power Systems, Medical Systems and
     Transportation Systems. Operating margin from product services was
     approximately $4.7 billion, up 17% from 2000 on a comparable basis. The
     increase reflected improvements in most product services businesses and was
     led by Power Systems and Medical Systems.

o    GE other income, earned from a wide variety of sources, was $0.4 billion in
     2001, $0.5 billion in 2000 and $0.9 billion in 1999. Other income in 1999
     included a pre-tax gain of $0.4 billion resulting from the contribution of
     certain of NBC's media properties to NBC Internet (NBCi), a former
     publicly-traded company, in exchange for a noncontrolling interest in NBCi.

  o  Earnings of GECS before accounting changes were $5,586 million, up 8% in
     2001, following a 17% increase the year before. See page 53 for an analysis
     of these earnings.

PRINCIPAL COSTS AND EXPENSES for GE are those classified as costs of goods and
services sold, and selling, general and administrative expenses. Several GE
initiatives had significant effects on costs:

o    The Six Sigma Quality initiative has lowered GE's costs by reducing rework,
     simplifying processes and reducing direct material costs.

o    Globalization has reduced costs through sourcing of products and services
     in lower-cost countries.

o    Digitization has also reduced costs by providing GE businesses the ability
     to simplify and streamline processes, while investing in internal
     infrastructure hardware and software, enabling them to conduct a growing
     portion of their business over the Internet. Benefits from this initiative
     include improved customer service, expanded product and service offerings
     and increased operating efficiency for both GE and its customers.

Primarily because of the funding status of the GE Pension Plan and other retiree
benefit plans, principal U.S. postretirement benefit plans (the plans)
contributed $1,480 million, $1,266 million and $1,062 million to pre-tax
earnings (6.8%, 6.5% and 6.5% of earnings before accounting changes) in 2001,
2000 and 1999, respectively. See notes 5 and 6 for information about funding
status and actuarial assumptions of the plans. Postretirement benefit costs are
expected to increase in 2002 for a number of reasons, including reduction in the
assumed annual return on assets from 9.5% to 8.5%, reduction in the discount
rate from 7.5% to 7.25% and effects of increases in healthcare costs. In 2002,
management expects these plans to contribute approximately $700 million to
pre-tax earnings. This estimate will not affect the funding status of the GE
Pension Plan; management does not anticipate GE making contributions to that
Plan. The present funding status of the plans provides assurance of benefits for
GE plan participants, but future effects on operating results and funding depend
on economic conditions and investment performance.

     Costs and expenses in 1999 included $326 million of unusual charges, the
largest of which resulted from liabilities associated with past activities at
former manufacturing sites that are not part of any current business segment,
and costs for rationalizing certain operations and facilities of the worldwide
industrial businesses. Major elements of the restructuring program included
costs for employee severance, lease termination, dismantlement and site
restoration. The program was essentially complete by the end of 2000.

                                  [GRAPH HERE]
--------------------------------------------------------------------------------
GE OPERATING MARGIN AS A PERCENTAGE OF SALES

                               1997       1998       1999       2000       2001
--------------------------------------------------------------------------------
As reported                    11.0%      16.7%      17.3%      18.6%      19.6%
Restructuring and other
   unusual charges              4.7         --        0.5        0.3         --
--------------------------------------------------------------------------------


OPERATING MARGIN is sales of goods and services less the costs of goods and
services sold, and selling, general and administrative expenses. GE operating
margin reached a record 19.6% of sales in 2001, up from a comparable 18.9% in
2000 and 17.8% in 1999. The continued improvement in operating margin in 2001
was led by Power Systems and Aircraft Engines, reflecting increasing benefits
from the Digitization, product services and Six Sigma Quality initiatives.
Reported operating margin was 18.6% in 2000, including the costs of a one-time
retirement benefit provision associated with the labor agreement concluded in
the third quarter of that year. Reported operating margin in 1999 was 17.3% of
sales, including the $326 million of unusual charges discussed in the preceding
paragraph.

<PAGE>
                                      F-10

ANNUAL REPORT PAGE 50


TOTAL COST PRODUCTIVITY (sales in relation to costs, both on a constant dollar
basis) in 2001 was 2.2% as productivity in long-cycle businesses, particularly
Power Systems and Medical Systems, was partially offset by negative productivity
across several short-cycle businesses, particularly Plastics, reflecting volume
declines. In 2000, total cost productivity of 3.6% reflected benefits from
improvements in base cost productivity achieved through strong volume growth and
the Digitization and Six Sigma Quality initiatives.

GE INTEREST AND OTHER FINANCIAL CHARGES in 2001 amounted to $817 million, about
the same as 2000 and 1999. During 2001, the benefits of lower average interest
rates and lower average borrowing levels were partially offset by increased
provisions for interest on tax liabilities. During 2000, higher average interest
rates were more than offset by lower average borrowing levels.

INCOME TAXES on consolidated earnings before accounting changes were 28.3%,
compared with 31.0% in 2000 and 31.2% in 1999. A more detailed analysis of
differences between the U.S. federal statutory rate and the consolidated rate,
as well as other information about income tax provisions, is provided in note 7.

     The effective tax rate of GECS decreased to 19.8% in 2001 from 26.9% in
2000 and 27.1% in 1999. The 2001 effective tax rate reflects the effects of
continuing globalization, certain transactions (see note 7), and the effect of a
pre-tax charge related to the events of September 11. The pre-tax charge related
to September 11 amounted to approximately $600 million, principally at Specialty
Insurance, and reduced the GECS effective tax rate by one percentage point.
Management expects that trends in GECS businesses, particularly the continuing
impact of globalization, are likely to result in an effective tax rate for GECS
in 2002 that will be lower than the 2000 and 1999 rates, but higher than the
2001 rate.

SEGMENT OPERATIONS

REVENUES AND SEGMENT PROFIT FOR OPERATING SEGMENTS are shown on page 51. For
additional information, including a description of the products and services
included in each segment, see note 27.

AIRCRAFT ENGINES reported a 6% increase in revenues in 2001, reflecting higher
volume in services, and sales of commercial engines and aero-derivative
products. Operating profit was 6% higher primarily as a result of volume growth
and productivity. Product services revenues following the events of September 11
have been adversely affected by reduced customer flight hours and servicing
requirements. Operating profit in 2000 increased 17% on revenues that were
slightly higher than in 1999. The improvement in operating profit reflected
strong productivity.

     In 2001, revenues from sales to the U.S. government were $1.9 billion
compared with $1.6 billion in 2000.

     Aircraft Engines received orders of $12.1 billion in 2001 compared with
$13.5 billion in 2000. The $11.2 billion total backlog at year-end 2001
comprised unfilled product orders of $9.4 billion (of which 56% was scheduled
for delivery in 2002) and product services orders of $1.8 billion scheduled for
2002 delivery. Comparable December 31, 2000, total backlog was $12.0 billion.
Management believes the events of September 11 will continue to adversely affect
the airline industry in 2002 with implications for existing backlog, engine
servicing revenue and future new engine orders.

APPLIANCES revenues were 1% lower than a year ago, as continued price erosion
offset modest market share gains. Operating profit decreased by 6%, largely as a
result of lower selling prices and increased program spending on new products,
which more than offset the benefits of productivity. Revenues in 2000 were 4%
higher than in 1999, as volume increases more than offset lower selling prices.
Operating profit also increased 4% in 2000, largely as a result of productivity
and higher volume from new products.

INDUSTRIAL PRODUCTS AND SYSTEMS
(In millions)                    2001      2000     1999
---------------------------------------------------------
REVENUES
Industrial Systems            $ 4,440   $ 4,469   $4,333
Lighting                        2,550     2,739    2,757
Transportation Systems          2,355     2,263    2,358
GE Supply                       2,302     2,159    1,951
                              --------------------------
Total revenues                $11,647   $11,630  $11,399
                              ==========================
OPERATING PROFIT
Industrial Systems            $   795   $   839   $  760
Lighting                          405       593      640
Transportation Systems            497       540      525
GE Supply                         146       123       96
                              --------------------------
Total operating profit        $ 1,843   $ 2,095   $2,021
========================================================

INDUSTRIAL PRODUCTS AND SYSTEMS revenues in 2001 were relatively unchanged from
2000 levels, as higher product services revenues at Transportation Systems,
including acquisitions, more than offset selling price decreases across the
segment and lower volume at Industrial Systems. Operating profit decreased 12%
primarily as a result of the decline in selling prices and cost inflation.
Revenues rose 2% in 2000, largely as a result of volume increases at Industrial
Systems and growth in product services, including acquisitions, which more than
offset lower selling prices. Operating profit increased 4%, primarily reflecting
productivity and growth in product services.

     Transportation Systems received orders of $2.6 billion in 2001, compared
with $2.1 billion in 2000. The $1.7 billion total backlog at year-end 2001
comprised unfilled product orders of $1.2 billion (of which 51% was scheduled
for delivery in 2002) and product services orders of $0.5 billion scheduled for
2002 delivery. Comparable December 31, 2000, total backlog was $1.4 billion.

<PAGE>
                                      F-11

ANNUAL REPORT PAGE 51


SUMMARY OF OPERATING SEGMENTS

<TABLE>
<CAPTION>

                                                    General Electric Company and consolidated affiliates
                                               ----------------------------------------------------------
For the years ended December 31 (In millions)       2001        2000        1999        1998       1997
---------------------------------------------------------------------------------------------------------
<S>                                            <C>         <C>         <C>         <C>         <C>
REVENUES
   GE
     Aircraft Engines                          $  11,389   $  10,779   $  10,730   $  10,294   $  7,799
     Appliances                                    5,810       5,887       5,671       5,619      5,801
     Industrial Products and Systems              11,647      11,630      11,399      11,078     10,763
     Materials                                     7,069       8,020       7,118       6,796      6,934
     NBC                                           5,769       6,797       5,790       5,269      5,153
     Power Systems                                20,211      14,861      10,099       8,500      7,986
     Technical Products and Services               9,011       7,915       6,863       5,323      4,861
     Eliminations                                 (2,900)     (2,101)     (1,788)     (1,420)    (1,265)
                                               ----------------------------------------------------------
       Total GE segment revenues                  68,006      63,788      55,882      51,459     48,032
   Corporate items (a)                               445         517         619         771      3,227
   Earnings of GECS before accounting changes      5,586       5,192       4,443       3,796      3,256
                                               ----------------------------------------------------------
       Total GE revenues                          74,037      69,497      60,944      56,026     54,515
   GECS segment revenues                          58,353      66,177      55,749      48,694     39,931
   Eliminations (b)                               (6,477)     (5,821)     (5,063)     (4,251)    (3,606)
                                               ----------------------------------------------------------
CONSOLIDATED REVENUES                          $ 125,913   $ 129,853   $ 111,630   $ 100,469   $ 90,840
=========================================================================================================
SEGMENT PROFIT
   GE
     Aircraft Engines                          $   2,609   $   2,464   $   2,104   $   1,769   $  1,366
     Appliances                                      643         684         655         755        771
     Industrial Products and Systems               1,843       2,095       2,021       1,815      1,662
     Materials                                     1,596       2,015       1,725       1,649      1,627
     NBC                                           1,602       1,797       1,576       1,349      1,216
     Power Systems                                 5,182       2,809       1,753       1,338      1,275
     Technical Products and Services               1,970       1,718       1,359       1,109        988
                                               ----------------------------------------------------------
       Total GE operating profit                  15,445      13,582      11,193       9,784      8,905
   Earnings of GECS before accounting changes      5,586       5,192       4,443       3,796      3,256
                                               ----------------------------------------------------------
       Total segment profit                       21,031      18,774      15,636      13,580     12,161
   Corporate items and eliminations (c) (d)       (1,893)     (1,429)       (902)       (584)    (1,351)
   GE interest and other financial charges          (817)       (811)       (810)       (883)      (797)
   GE provision for income taxes                  (4,193)     (3,799)     (3,207)     (2,817)    (1,810)
                                               ----------------------------------------------------------
Earnings before accounting changes                14,128      12,735      10,717       9,296      8,203
                                               ----------------------------------------------------------
Cumulative effect of accounting changes             (444)       --          --          --         --
                                               ----------------------------------------------------------
CONSOLIDATED NET EARNINGS                      $  13,684   $  12,735   $  10,717   $   9,296   $  8,203
=========================================================================================================
The notes to consolidated financial statements on pages 67-92 are an integral
part of this statement. "GE" means the basis of consolidation as described in
note 1 to the consolidated financial statements; "GECS" means General Electric
Capital Services, Inc. and all of its affiliates and associated companies. The
segment profit measure for GE industrial businesses is operating profit
(earnings before interest and other financial charges, income taxes and
accounting changes). The segment profit measure for GECS is after-tax earnings
before accounting changes, reflecting the importance of financing and tax
considerations to its operating activities.

(a)  Includes revenues of $944 million in 1997 from an appliance distribution
     affiliate that was deconsolidated in 1998. Also includes $1,538 million
     gain in 1997 from an exchange of preferred stock in Lockheed Martin
     Corporation for the stock of a newly formed subsidiary.

(b)  Principally the elimination of GECS earnings before accounting changes.

(c)  Includes income, principally from licensing activities, of $88 million, $79
     million, $62 million, $271 million and $310 million in 2001, 2000, 1999,
     1998 and 1997, respectively.

(d)  1999 includes unusual charges amounting to $265 million. Of the total,
     amounts that relate to activities of GE operating segments were as follows:
     Aircraft Engines--$42 million, Appliances--$75 million, Industrial Products
     and Systems--$12 million, Materials--$13 million and Technical Products and
     Services--$34 million. 1997 includes unusual charges of $2,322 million. Of
     the total, amounts that relate to activities of GE operating segments were
     as follows: Aircraft Engines--$342 million, Appliances--$330 million,
     Industrial Products and Systems--$352 million, Materials--$63 million,
     NBC--$161 million, Power Systems--$437 million and Technical Products and
     Services--$157 million. Also included in 1997 is a $1,538 million gain
     associated with the Lockheed Martin Corporation transaction described in
     (a) above.
</TABLE>


<PAGE>
                                      F-12

ANNUAL REPORT PAGE 52


MATERIALS
                              ---------------------------
(In millions)                    2001      2000     1999
---------------------------------------------------------
REVENUES
Plastics                      $ 5,252   $ 6,013   $5,315
Specialty Materials             1,817     2,007    1,803
                              ---------------------------
Total revenues                $ 7,069   $ 8,020   $7,118
                              ===========================
OPERATING PROFIT
Plastics                      $ 1,257   $ 1,603   $1,366
Specialty Materials               339       412      359
                              ---------------------------
Total operating profit        $ 1,596   $ 2,015   $1,725
=========================================================

MATERIALS revenues were 12% lower than in 2000, reflecting increased pricing
pressures and lower volume at both Plastics and Specialty Materials. Plastics
experienced continued softness in the automotive, optical media,
telecommunication and business equipment markets while Specialty Materials was
adversely affected by lower sales in the semiconductor market. Operating profit
was 21% lower, primarily as a result of lower pricing and volume, and negative
base cost productivity at both Plastics and Specialty Materials. Operating
profit in 2000 increased 17% on revenues that were 13% higher than in 1999. The
increases in both revenues and operating profit were primarily attributable to
higher volume and improved selling prices at both Plastics and Specialty
Materials, which more than offset the effects of higher raw material prices.

                                  [GRAPH HERE]
--------------------------------------------------------------------------------
GE ORDERS BACKLOG
(In billions)
                               1997       1998       1999       2000       2001
--------------------------------------------------------------------------------
                             $26.44     $28.53     $32.42     $44.17     $47.43
--------------------------------------------------------------------------------


NBC revenues declined 15% from the record-high levels of 2000 which were 17%
higher than in 1999. Revenues in 2001 were negatively affected by a significant
decline in advertising volume and pricing, as well as lost revenue related to
coverage of the events of September 11. Revenues in 2000 benefited from
broadcast of the 2000 Summer Olympic Games as well as strong growth in cable
operations, particularly at CNBC. Operating profit decreased 11% in 2001
reflecting adverse advertising market conditions, events of September 11, and
charges resulting from dissolving the XFL, which more than offset savings from
cost reduction actions. Operating profit increased 14% in 2000 as growth in
owned-and-operated stations, cable operations and network operations was
partially offset by higher license fees associated with the renewal of certain
sports and prime-time programs.

POWER SYSTEMS operating results throughout the last three years reflected the
sharp increase in U.S. gas turbine sales of market leading "F" technology,
higher prices for those turbines and base cost productivity associated with
their manufacture. Secondarily, and with a longer-lasting effect, the portfolio
of long-term product services agreements associated with new unit sales has
generated favorable operating results. Aero-derivative units revenues also
benefited from increased demand in the power generation sector throughout this
period. Reflecting these conditions, revenues increased 36% in 2001, following
an increase of 47% in 2000. Similarly, operating profit increased 84% in 2001,
following an increase of 60% in 2000.

     Power Systems orders were $24.5 billion in 2001, a 4% increase over 2000,
reflecting continued strength of the power generation business and renewed
growth in the oil and gas industry. The $28.9 billion total backlog at year-end
2001 comprised unfilled product orders of $24.1 billion (of which 75% was
scheduled for delivery in 2002) and product services orders of $4.7 billion
scheduled for 2002 delivery. Comparable December 31, 2000, total backlog was
$25.1 billion. As a result of softening demand for electric power in the U.S.
market, management is in discussions with certain customers regarding their
equipment requirements. These discussions may result in changes to contractual
agreements, including delays or cancellations. In the event of order
cancellation, contractual terms require customers to pay termination fees. In
all cases, such fees are expected to cover Power Systems' investment in the
contracts and at least a portion has generally been received as progress
collections. At least partial recovery of lost profits would also be expected.

TECHNICAL PRODUCTS AND SERVICES
                              ---------------------------
(In millions)                    2001      2000     1999
---------------------------------------------------------
REVENUES
Medical Systems               $ 8,409   $ 7,275   $6,171
Global eXchange Services          602       640      692
                              ---------------------------
Total revenues                $ 9,011   $ 7,915   $6,863
                              ===========================
OPERATING PROFIT
Medical Systems               $ 1,803   $ 1,569   $1,204
Global eXchange Services          167       149      155
                              ---------------------------
Total operating profit        $ 1,970   $ 1,718   $1,359
=========================================================

TECHNICAL PRODUCTS AND SERVICES revenues rose 14% in 2001, primarily as a result
of sharply higher volume at Medical Systems. Sales by businesses acquired during
the last two years accounted for 5% of Medical Systems 2001 revenues. Operating
profit grew 15%, largely as a result of productivity and volume growth as well
as higher realized gains, principally the result of disposition in 2001 of a
joint venture at Global eXchange Services. Revenues in 2000 were 15% higher than
1999 on sharply higher volume at Medical Systems. Operating profit increased 26%
in 2000, largely as a result of productivity and volume increases at Medical
Systems, which more than offset lower selling prices across the segment.

<PAGE>
                                      F-13

ANNUAL REPORT PAGE 53


         Orders received by Medical Systems in 2001 were $8.9 billion, a 17%
increase over 2000. The $4.1 billion total backlog at year-end 2001 comprised
unfilled product orders of $2.7 billion (of which 68% was scheduled for delivery
in 2002) and product services orders of $1.4 billion scheduled for 2002
delivery. Comparable December 31, 2000, total backlog was $3.6 billion.

GECS businesses are categorized for management purposes into five operating
activities: consumer services, equipment management, mid-market financing,
specialized financing and specialty insurance.

     GECS earnings before accounting changes were $5,586 million in 2001, up 8%
from $5,192 million in 2000, with strong double-digit earnings growth in three
of the five operating activities. Net earnings in 2000 increased 17% from 1999.
Earnings growth throughout the three-year period resulted from origination
volume and asset growth, productivity and acquisitions of businesses and
portfolios. Principal factors in the 2001 increase were strong productivity
($0.7 billion) and lower taxes ($0.5 billion) partially offset by GE Global
Insurance Holdings ($0.5 billion) and lower realized gains on financial
instruments. Excluding effects of Paine Webber Group, Inc. (PaineWebber) in 2000
and Americom in 2001, both of which are discussed below, such pre-tax gains were
lower in 2001 by $0.5 billion ($0.3 billion after tax). Pre-tax gains on sales
of investment securities declined in 2001 by $0.5 billion, of which $0.4 billion
related to GE Equity; other GE Equity gains were $0.8 billion lower; while gains
on securitizations were up $0.8 billion from 2000.

                                  [GRAPH HERE]
--------------------------------------------------------------------------------
GECS REVENUES
(In billions)
                               1997       1998       1999       2000       2001
--------------------------------------------------------------------------------
                             $39.93     $48.70     $55.75     $66.18     $58.35
--------------------------------------------------------------------------------


     On November 9, 2001, GECS exchanged the stock of Americom and other related
assets and liabilities for a combination of cash and stock in SES Global, a
leading satellite company. The transaction resulted in a gain of $1,158 million
($642 million after tax).

     On December 28, 2000, Montgomery Ward, LLC (Wards), formerly a GECS
subsidiary, filed for bankruptcy protection and began liquidation proceedings.
Net earnings for the year 2000 included operating losses from Wards amounting to
$245 million as well as a charge, primarily to other costs and expenses, for
$815 million ($537 million, after tax) to recognize additional associated
losses.

o    GECS total revenues decreased 12% to $58.4 billion in 2001, following a 19%
     increase  to $66.2  billion in 2000.  The three  principal  reasons for the
     decrease in revenues in 2001 compared with 2000 were:  the  deconsolidation
     of Wards and resulting absence of sales in 2001 ($3.2 billion); the effects
     of  rationalization  of  operations  and market  conditions at IT Solutions
     ($2.9  billion);  and  reduced  surrender  fees  compared  with 2000  ($1.2
     billion)  associated  with the planned  run-off of  restructured  insurance
     policies of Toho  Mutual  Life  Insurance  Company  (Toho) at GE  Financial
     Assurance (GEFA). The increase in 2000 reflected  post-acquisition revenues
     from  acquired  businesses  ($6.5  billion) as well as volume  growth ($2.5
     billion). Revenues in 2000 also included the gain from sale of common stock
     of PaineWebber ($1.4 billion).  Additional  information about other revenue
     items is provided in the analysis of GECS operating activities beginning on
     page 54.

o    GECS cost of goods sold declined to $3.3 billion in 2001, compared with
     $8.5 billion in 2000 and $8.0 billion in 1999, reflecting volume declines
     at IT Solutions and the deconsolidation of Wards on December 28, 2000, when
     Wards commenced liquidation proceedings. The increase in 2000 primarily
     reflected the consolidation of Wards from August 2, 1999, through December
     28, 2000.

                                  [GRAPH HERE]
--------------------------------------------------------------------------------
GECS EARNINGS BEFORE ACCOUNTING CHANGES
(In billions)
                               1997      1998       1999       2000       2001
--------------------------------------------------------------------------------
                              $3.26      $3.80      $4.44      $5.19      $5.59
--------------------------------------------------------------------------------


o    GECS interest on borrowings in 2001 was $10.6 billion,  compared with $11.1
     billion  in 2000 and  $9.4  billion  in  1999.  The  change  in both  years
     reflected  the  effects of both  interest  rates and the  average  level of
     borrowings used to finance asset growth.  GECS average composite  effective
     interest  rate was 5.11% in 2001,  compared with 5.89% in 2000 and 5.14% in
     1999.  In 2001,  average  assets of $386.6  billion  were 7% higher than in
     2000,  which  in turn  were  13%  higher  than in  1999.  See page 60 for a
     discussion of interest rate risk management.

o    GECS insurance losses and policyholder and annuity benefits increased to
     $15.1 billion in 2001, compared with $14.4 billion in 2000 and $11.0
     billion in 1999. This increase reflected effects of growth in premium
     volume and business acquisitions at GEFA throughout the period, and costs
     discussed in the analysis of Specialty Insurance and All Other GECS
     operating activities, partially offset by the planned run-off of
     restructured insurance policies at Toho.

o    GECS  provision  for losses on  financing  receivables  was $2.5 billion in
     2001,  compared  with $2.0 billion in 2000 and $1.7 billion in 1999.  These
     provisions  principally related to private-label  credit cards, bank credit
     cards,  personal  loans and auto  loans and  leases as well as  commercial,
     industrial,  and equipment loans and leases,  all of which are discussed on
     page  56  under  financing  receivables.   The  provisions  throughout  the
     three-year period reflected higher average receivable balances,  changes in
     the mix of business,  and the effects of delinquency  rates--higher  during
     2001 and lower during 2000--consistent with industry experience.


<PAGE>
                                      F-14

ANNUAL REPORT PAGE 54


o    GECS other costs and expenses were $19.8  billion,  $22.8 billion and $19.4
     billion in 2001, 2000 and 1999,  respectively.  Changes over the three-year
     period were largely the result of acquisitions and unusual  charges,  which
     were more than  offset in 2001 by  productivity  at Consumer  Services  and
     Equipment  Management.  Costs and expenses in 2001 included $0.5 billion of
     costs in businesses  that were  acquired  after January 1, 2001, as well as
     $0.3 billion of costs discussed in the analysis of All Other GECS operating
     activities.  Similarly,  2000  included $2.5 billion of costs in businesses
     that were acquired after January 1, 2000; charges for costs associated with
     Wards amounting to $0.8 billion, as discussed previously;  and $0.5 billion
     of costs to rationalize certain operations discussed in the analysis of All
     Other GECS operating activities.

Over the last three years, market interest rates have been more volatile than
GECS average composite effective interest rates, principally because of the mix
of effectively fixed-rate borrowings in the GECS financing structure. GECS
portfolio of fixed and floating-rate financial products has behaved similarly
over that period. Consequently, financing spreads have remained relatively flat
over the three-year period.

GECS REVENUES AND NET EARNINGS
                              ---------------------------
(In millions)                    2001      2000     1999
---------------------------------------------------------
REVENUES
Consumer Services             $23,574   $23,893  $18,705
Equipment Management           12,542    14,747   15,383
Mid-Market Financing            8,659     7,026    5,929
Specialized Financing           2,930     4,105    3,308
Specialty Insurance            11,064    11,878   10,643
All other                        (416)    4,528    1,781
                              ---------------------------
Total revenues                $58,353   $66,177  $55,749
                              ===========================
NET EARNINGS
Consumer Services             $ 2,319   $ 1,671  $ 1,140
Equipment Management            1,607       833      683
Mid-Market Financing            1,280     1,010      822
Specialized Financing             557     1,223    1,019
Specialty Insurance               522       879    1,167
All other                        (699)     (424)    (388)
                              ---------------------------
Total earnings before
   accounting changes           5,586     5,192    4,443
Cumulative effect of
   accounting changes            (169)       --       --
                              ---------------------------
Net earnings                  $ 5,417   $ 5,192  $ 4,443
=========================================================

     Following is a discussion of revenues and earnings before accounting
changes from operating activities within the GECS segment. For purposes of this
discussion, earnings before accounting changes is referred to as net earnings.


CONSUMER SERVICES
                              ---------------------------
(In millions)                    2001      2000     1999
---------------------------------------------------------
REVENUES
Global Consumer Finance       $ 5,282   $ 5,138   $4,839
GE Financial Assurance         13,565    13,669    9,604
GE Card Services                3,947     3,891    2,478
Other Consumer Services           780     1,195    1,784
                              ---------------------------
Total revenues                $23,574   $23,893   $18,705
                              ===========================
NET EARNINGS (a)
Global Consumer Finance       $   903   $   710   $  580
GE Financial Assurance            687       564      411
GE Card Services                  654       495      196
Other Consumer Services            75       (98)     (47)
                              ---------------------------
Net earnings                  $ 2,319   $ 1,671   $1,140
=========================================================
(a)  Charges of $196 million and $107 million in 2001 and 2000, respectively,
     were not allocated to this activity and are included in All Other GECS
     operating activities.
---------------------------------------------------------

     CONSUMER SERVICES revenues declined 1% in 2001, following a 28% increase in
2000. Overall, the revenue performance in both years reflected the
post-acquisition revenues from acquired businesses and volume growth at GEFA,
Global Consumer Finance and Card Services which were offset by decreases at Auto
Financial Services and Mortgage Services, which both stopped accepting new
business in 2000 (included in Other Consumer Services) and, in 2001, a decrease
in surrender fee income at GEFA associated with the planned run-off of
restructured insurance policies at Toho. Net earnings increased 39% in 2001 and
47% in 2000. The increase in 2001 reflected productivity benefits at Global
Consumer Finance and GEFA, volume growth at Card Services and reduced residual
losses at Auto Financial Services. The increase in net earnings in 2000 resulted
from acquisition and volume growth at Card Services, GEFA, and Global Consumer
Finance, partially offset by losses at Mortgage Services.

EQUIPMENT MANAGEMENT
                              ---------------------------
(In millions)                    2001      2000     1999
---------------------------------------------------------
REVENUES
Aviation Services (GECAS)     $ 2,173   $ 1,962   $1,551
Americom                        1,698       594      463
IT Solutions                    4,180     7,073    8,380
Other Equipment Management      4,491     5,118    4,989
                              ---------------------------
Total revenues                $12,542   $14,747   $15,383
                              ===========================
NET EARNINGS  (a)
Aviation Services (GECAS)     $   470   $   474   $  280
Americom                          896       195      150
IT Solutions                       11      (197)     (66)
Other Equipment Management        230       361      319
                              ---------------------------
Net earnings                  $ 1,607   $   833   $  683
=========================================================
(a)  Charges of $135 million and $191 million in 2001 and 2000, respectively,
     were not allocated to this activity and are included in All Other GECS
     operating activities.
---------------------------------------------------------

<PAGE>
                                      F-15

ANNUAL REPORT PAGE 55

     EQUIPMENT MANAGEMENT revenues decreased 15% in 2001 following a 4% decline
in 2000. The decrease in both years was primarily attributable to effects of
rationalization of operations and market conditions on revenues at IT Solutions,
partially offset by the gain on the disposition of Americom in 2001, and volume
growth at GECAS in both years. Other Equipment Management revenues decreased in
2001, primarily as a result of lower volume across all of the remaining
businesses. Net earnings increased 93% in 2001 and 22% in 2000, reflecting the
Americom gain and productivity benefits at IT Solutions in 2001 and volume
growth at GECAS in 2000. The decrease in Other Equipment Management net earnings
in 2001 primarily reflected lower results at Transport International Pool and GE
Capital Modular Space.

MID-MARKET FINANCING
                              ---------------------------
(In millions)                    2001      2000     1999
---------------------------------------------------------
REVENUES
Commercial Equipment Financing $4,515    $3,610   $3,180
Commercial Finance              1,695     1,543    1,295
Vendor Financial Services       2,095     1,791    1,372
Other Mid-Market Financing        354        82       82
                              ---------------------------
Total revenues                 $8,659    $7,026   $5,929
                              ===========================
NET EARNINGS (a)
Commercial Equipment Financing $  592    $  496   $  396
Commercial Finance                364       280      225
Vendor Financial Services         287       241      200
Other Mid-Market Financing         37        (7)       1
                              ---------------------------
Net earnings                   $1,280    $1,010   $  822
=========================================================
(a)  Charges of $52 million in 2001 were not allocated to this activity and are
     included in All Other GECS operating activities.
---------------------------------------------------------

     MID-MARKET FINANCING revenues increased 23% in 2001, following a 19%
increase in 2000, resulting from acquisition and volume growth at Commercial
Equipment Finance, Vendor Financial Services and Commercial Finance, including
the acquisition of Heller Financial, Inc. (Heller Financial) on October 24,
2001, (included in Other Mid-Market Financing), and increased gains on
securitizations of financial assets. The increase in revenues in 2000 primarily
reflected asset growth from originations across all major businesses. Net
earnings increased 27% in 2001 and 23% in 2000. Growth in net earnings in 2001
reflected securitization gains and asset growth from acquisitions across all
major businesses. In 2000, improvements in net earnings resulted from favorable
tax effects and asset growth from originations.


SPECIALIZED FINANCING
                              ---------------------------
(In millions)                    2001      2000     1999
---------------------------------------------------------
REVENUES
Real Estate                    $1,919    $1,977   $1,582
Structured Finance Group        1,093       999      812
GE Equity                        (126)    1,079      863
Other Specialized Financing        44        50       51
                              ---------------------------
Total revenues                 $2,930    $4,105   $3,308
                              ===========================
NET EARNINGS (a)
Real Estate                    $  486    $  371   $  300
Structured Finance Group          385       344      270
GE Equity                        (270)      525      416
Other Specialized Financing       (44)      (17)      33
                              ---------------------------
Net earnings                   $  557    $1,223   $1,019
=========================================================
(a)  Charges of $103 million and $49 million in 2001 and 2000, respectively,
     were not allocated to this activity and are included in All Other GECS
     operating activities.
---------------------------------------------------------

     SPECIALIZED FINANCING revenues declined 29%, following a 24% increase in
2000, and net earnings declined 54% in 2001 following a 20% increase in 2000.
The decrease in revenues and net earnings in 2001 were a result of reduced asset
gains at GE Equity, partially offset by profitable origination growth at
Structured Finance Group and higher asset gains and productivity benefits at
Real Estate. Revenues and net earnings growth in 2000 were principally the
result of origination growth across all businesses and a particularly high level
of gains on equity investment sales at GE Equity.

SPECIALTY INSURANCE
                              ---------------------------
(In millions)                    2001      2000     1999
---------------------------------------------------------
REVENUES
Mortgage Insurance            $ 1,029   $   973  $   936
GE Global Insurance Holdings    9,453    10,223    9,013
Other Specialty Insurance         582       682      694
                              ---------------------------
Total revenues                $11,064   $11,878  $10,643
                              ===========================
NET EARNINGS (a)
Mortgage Insurance            $   395   $   366  $   340
GE Global Insurance Holdings      (47)      413      625
Other Specialty Insurance         174       100      202
                              ---------------------------
Net earnings                  $   522   $   879  $ 1,167
=========================================================
(a)  Charges of $170 million in 2001 were not allocated to this activity and are
     included in All Other GECS operating activities.
---------------------------------------------------------

     SPECIALTY INSURANCE revenues decreased 7% in 2001, following a 12% increase
in 2000, as a result of reduced net premiums earned at GE Global Insurance
Holdings (the parent of Employers Reinsurance Corporation), reflecting the
events of September 11 as discussed below, and decreased investment income,
partially offset by increased premium income associated with origination volume.
The increase in 2000 resulted from premium growth and increased investment
income, as higher interest income more than offset a decrease in net realized
investment gains at GE Global Insurance Holdings. Net pre-tax realized
investment gains in the marketable equity and debt securities portfolios
amounted to $572 million, $639 million and $811 million in 2001, 2000 and 1999,
respectively. Remaining available gains in the portfolios at December 31, 2001,
amounted to $509 million before tax.

<PAGE>
                                      F-16

ANNUAL REPORT PAGE 56


     Net earnings decreased 41% and 25% in 2001 and 2000, respectively,
reflecting GE Global Insurance Holdings underwriting results. Net earnings in
2001 were adversely affected by approximately $575 million ($386 million after
tax) related to the insurance losses arising from the events of September 11.
This amount, which primarily resulted from contingent premium payment provisions
contained in certain retrocession agreements, comprises $698 million recorded as
a reduction in net premiums earned, and $78 million reflecting policyholder
losses, partially offset by $201 million reflecting a reduction in insurance
acquisition costs. Historical experience related to large catastrophic events
has shown that a broad range of total insurance industry loss estimates often
exists following such an event and it is not unusual for there to be significant
subsequent revisions in such estimates. $575 million is management's best
estimate of its existing net liability based on the information currently
available, and is net of estimated recoveries under retrocession arrangements,
under which a portion of losses is routinely ceded to other reinsurance
entities. Substantially all of GECS retrocessionaires are large, highly rated
reinsurance entities. At this time, management does not anticipate that any
significant portion of its estimated recoveries will be uncollectible.

                                  [GRAPH HERE]
--------------------------------------------------------------------------------
CONSOLIDATED INTERNATIONAL REVENUES BY REGION
(In billions)
                               1997       1998       1999       2000       2001
--------------------------------------------------------------------------------
Europe                       $20.63     $24.35     $25.82     $26.67     $26.29
Pacific Basin                  7.98       8.06      10.19      15.19      13.30
Americas                       6.20       6.91       6.73       7.68       7.89
Other                          3.43       3.19       2.94       3.41       3.96
--------------------------------------------------------------------------------


     Net earnings in 2001 and 2000 were also adversely affected by the continued
deterioration of underwriting results, reflecting higher property and
casualty-related losses (principally as a result of adverse development relating
to prior-year loss events) and the continued effects of low premiums in the
property and casualty insurance/reinsurance industry. As GE Global Insurance
Holdings underwriting results in 2001 and 2000, typical of the global property
and casualty industry, were realized, management began underwriting initiatives
that increased premium prices for given levels of coverage. These initiatives
resulted in management reconsidering and clarifying the product lines, policies,
contracts and specific customers for which, given the risk, acceptable future
levels of profit seem achievable. For these businesses, GECS has sought to
retain or even expand its business. On the other hand, management has identified
particular property and casualty business channels from which returns do not
appear to justify the risks. For these channels, new business will be
significantly curtailed or exited.

     The majority of the adverse development in 2001, and to a lesser extent in
2000, related to higher projected ultimate losses for liability coverages,
especially in the hospital liability, nonstandard automobile (automobile
insurance extended to higher-risk drivers) and commercial and public entity
general liability lines of business. The increase in 2000 also reflected an
increase in industry-wide loss estimates related to certain large property loss
events, with the largest impact resulting from the European windstorms occurring
in late 1999. The adverse development of GE Global Insurance Holdings for both
years was partially mitigated by favorable experience in the Mortgage Insurance
business, which resulted from favorable economic conditions, improvement in
certain real estate markets and loss mitigation efforts.

ALL OTHER GECS
                              ---------------------------
(In millions)                    2001      2000     1999
---------------------------------------------------------
REVENUES
All Other GECS total revenues   $(416)   $4,528    $1,781
                              ===========================
NET EARNINGS
All Other GECS net earnings     $(699)   $ (424)   $(388)
=========================================================

     ALL OTHER GECS operating activities includes results of operations of
businesses other than those in the five operating activities as well as charges
management has not allocated to those activities. In 2001, $436 million of
charges, principally for asset write-downs, resulted in a negative total for
this category. Revenues in 2000 included the results of Wards through December
28, 2000; a pre-tax gain of $1,366 million from sale of GECS investment in
common stock of PaineWebber; and charges of $238 million, principally for asset
write-downs. The net loss of $699 million for 2001 included after-tax costs of
$656 million in certain unprofitable insurance and financing product lines that
are being exited; in disposing of and providing for disposition of several
nonstrategic investments and other assets; and in restructuring various global
operations. These costs included asset write-downs totaling $285 million. The
net loss of $424 million for 2000 comprised the PaineWebber gain of $848
million; charges of $537 million related to Wards; strategic rationalization
costs of $347 million related to other operating activities, primarily for asset
write-downs, employee severance and lease terminations; and operating losses
from Wards of $245 million.

     FINANCING RECEIVABLES is the largest category of assets for GECS and
represents one of its primary sources of revenues. The portfolio of financing
receivables, before allowance for losses, increased to $178.8 billion at the end
of 2001 from $147.3 billion at the end of 2000, as discussed in the following
paragraphs. The related allowance for losses at the end of 2001 amounted to $4.8
billion ($4.0 billion at the end of 2000), representing management's best
estimate of probable losses inherent in the portfolio.

<PAGE>
                                      F-17

ANNUAL REPORT PAGE 57

     In GECS financing receivables, "nonearning" receivables are those that are
90 days or more delinquent (or for which collection has otherwise become
doubtful) and "reduced-earning" receivables are commercial receivables whose
terms have been restructured to a below-market yield.

     Consumer financing receivables, primarily credit card and personal loans
and auto loans and leases, were $52.3 billion at year-end 2001, an increase of
$3.5 billion from year-end 2000. Credit card and personal receivables increased
$7.0 billion, primarily from increased origination and acquisition growth,
partially offset by sales and securitizations and the net effects of foreign
currency translation. Auto receivables decreased $3.5 billion, primarily as a
result of the run-off of the liquidating Auto Financial Services portfolio.
Nonearning consumer receivables at year-end 2001 were $1.5 billion, about 2.9%
of outstandings, compared with $1.1 billion, about 2.3% of outstandings at
year-end 2000. Write-offs of consumer receivables increased to $1.7 billion from
$1.3 billion for 2000, reflecting the maturing of private label credit card
portfolios and higher personal bankruptcies on credit card loan portfolios in
Japan. Consistent with industry trends, consumer delinquency rates increased
during 2001.

                                  [GRAPH HERE]
--------------------------------------------------------------------------------
CONSOLIDATED TOTAL ASSETS
(In billions)
                               1997       1998       1999       2000       2001
--------------------------------------------------------------------------------
United States               $206.46    $227.11    $263.78    $277.82    $315.18
International                 97.55     128.82     141.26     159.19     179.84
--------------------------------------------------------------------------------


     Other financing receivables, which totaled $126.5 billion at December 31,
2001, consisted of a diverse commercial, industrial and equipment loan and lease
portfolio. This portfolio increased $28.0 billion during 2001, reflecting
increased acquisition and origination growth, partially offset by sales and
securitizations. Related nonearning and reduced-earning receivables were $1.7
billion, about 1.4% of outstandings at year-end 2001, compared with $0.9
billion, about 1.0% of outstandings at year-end 2000, reflecting several large
bankruptcies and the current economic environment. These receivables are backed
by assets and are covered by reserves for probable losses.

     GECS loans and leases to commercial airlines amounted to $21.5 billion at
the end of 2001, up from $15.3 billion at the end of 2000. GECS commercial
aircraft positions also included financial guarantees, funding commitments,
credit and liquidity support agreements and aircraft orders as discussed in note
17.

INTERNATIONAL OPERATIONS

Estimated results of international activities include the results of GE and GECS
operations located outside the United States plus all U.S. exports. Certain GECS
operations that cannot meaningfully be associated with specific geographic areas
are classified as "other international" for this purpose.

     International revenues of $51.4 billion, $53.0 billion and $45.7 billion in
2001, 2000 and 1999, respectively, represented about 41% of consolidated
revenues in each year.

CONSOLIDATED INTERNATIONAL REVENUES
                              ---------------------------
(In millions)                    2001      2000     1999
---------------------------------------------------------
Europe                        $23,878   $24,144  $22,919
Pacific Basin                  11,447    12,921    7,879
Americas                        5,507     5,912    5,229
Other                           3,456     2,842    2,136
                              ---------------------------
                               44,288    45,819   38,163
Exports from the U.S. to
   external customers           7,149     7,138    7,513
                              ---------------------------
                              $51,437   $52,957  $45,676
=========================================================

     GE international revenues grew to $28.3 billion in 2001, an increase of
$1.6 billion (6%) over 2000. Revenues in 2000 were $26.7 billion, $2.7 billion
(11%) higher than in 1999. The increase in 2001 was attributable to sales in
operations based outside the United States, which grew 8% to $21.2 billion.
European revenues were 16% higher in 2001, led by increases at Power Systems and
Medical Systems. Revenues in the Americas (North and South America, except for
the United States) increased 6%, reflecting continued growth in both Canadian
and Latin American operations. Pacific Basin revenues and total U.S. exports in
2001 were relatively unchanged from 2000.

     GECS international revenues were $23.1 billion in 2001, a decrease of 12%
from $26.3 billion in 2000. Revenues in the Pacific Basin decreased 19% in 2001,
as 2000 revenues included surrender fee income at GEFA from the planned run-off
of restructured insurance policies of Toho. Revenues in Europe decreased 12% in
2001 as acquisition and core growth at Global Consumer Finance were more than
offset by reduced premiums earned, associated with a combination of lower
origination volume and increased ceded premiums as a result of the events of
September 11 at GE Global Insurance Holdings, and reduced revenue associated
with the rationalization of certain operations at IT Solutions.


     Consolidated international operating profit was $6.1 billion in 2001, a
decrease of 11% over 2000, which was 21% higher than in 1999. Additional
information about operating profit by region is provided in note 28.

     Total assets of international operations were $180.0 billion in 2001 (36%
of consolidated assets), an increase of 13% over 2000. GECS assets increased 23%
in Europe, reflecting a mix of origination and acquisition growth. GECS also
achieved significant asset growth at GECAS, which is classified as "other
international" in note 28.

<PAGE>
                                      F-18

ANNUAL REPORT PAGE 58

     The international activities of GE and GECS span all global regions and
primarily encompass manufacturing for local and export markets, import and sale
of products produced in other regions, leasing of aircraft, sourcing for GE
plants domiciled in other global regions and provision of financial services
within these regional economies. Thus, when countries or regions experience
currency and/or economic stress, GE may have increased exposure to certain risks
but also may have new profit opportunities. Potential increased risks include,
among other things, higher receivables delinquencies and bad debts, delays or
cancellation of sales and orders principally related to power and aircraft
equipment, higher local currency financing costs and a slowdown in established
financial services activities. New profit opportunities include, among other
things, lower costs of goods sourced from countries with weakened currencies,
more opportunities for lower cost outsourcing, expansion of industrial and
financial services activities through purchases of companies or assets at
reduced prices and lower U.S. debt financing costs.

     Financial results of GE international activities reported in U.S. dollars
are affected by currency exchange. A number of techniques are used to manage the
effects of currency exchange, including selective borrowings in local currencies
and selective hedging of significant cross-currency transactions. Principal
currencies are the euro, the Japanese yen and the Canadian dollar. GE and GECS
operations in Europe are all euro-capable as of January 1, 2002.

REGARDING ENVIRONMENTAL MATTERS, GE's operations, like operations of other
companies engaged in similar businesses, involve the use, disposal and cleanup
of substances regulated under environmental protection laws.

     In 2001, GE expended about $52 million for capital projects related to the
environment. The comparable amount in 2000 was $48 million. These amounts
exclude expenditures for remediation actions, which are principally expensed and
are discussed below. Capital expenditures for environmental purposes have
included pollution control devices--such as wastewater treatment plants,
groundwater monitoring devices, air strippers or separators, and
incinerators--at new and existing facilities constructed or upgraded in the
normal course of business. Consistent with policies stressing environmental
responsibility, average annual capital expenditures other than for remediation
projects are presently expected to be about $55 million over the next two years
for new or expanded programs to build facilities or modify manufacturing
processes to minimize waste and reduce emissions. This is about the same level
as recent experience.

     GE also is involved in a sizable number of remediation actions to clean up
hazardous wastes as required by federal and state laws. Such statutes require
that responsible parties fund remediation actions regardless of fault, legality
of original disposal or ownership of a disposal site. Expenditures for site
remediation actions amounted to approximately $119 million in 2001, compared
with $128 million in 2000. It is presently expected that such remediation
actions will require average annual expenditures in the range of $110 million to
$150 million over the next two years.

     The U.S. Environmental Protection Agency ruled in February 2002 that
approximately 150,000 pounds of polychlorinated biphenyls (PCBs) must be dredged
from a 40-mile stretch of the upper Hudson River in New York State. GE's
December 31, 2001, Statement of Financial Position includes a liability for the
estimated costs of this remediation.

NO RELATED PARTY TRANSACTIONS had a material effect on GE's financial position,
cash flows or results of operations. Certain immaterial related party
transactions are discussed in the 2001 proxy statement, available from GE.

MANAGEMENT'S DISCUSSION OF FINANCIAL RESOURCES AND LIQUIDITY

OVERVIEW

This discussion of financial resources and liquidity addresses the Statement of
Financial Position (page 44), Statement of Changes in Share Owners' Equity (page
42) and the Statement of Cash Flows (page 46).

     Only a small portion of GECS business is directly related to other GE
operations. The fundamental differences between GE and GECS are reflected in the
measurements commonly used by investors, rating agencies and financial analysts.
These differences will become clearer in the discussion that follows with
respect to the more significant items in the financial statements.

STATEMENT OF FINANCIAL POSITION

Because GE and GECS share certain significant elements of their Statements of
Financial Position--property, plant and equipment, and borrowings, for
example--the following discussion addresses significant captions in the
"consolidated" statement. Within the following discussions, however, distinction
is drawn between GE and GECS activities in order to permit meaningful analysis
of each individual statement.

INVESTMENT SECURITIES for each of the past two years comprised mainly
investment-grade debt securities held by GEFA and the specialty insurance
businesses of GECS in support of obligations to annuitants and policyholders. GE
investment securities were $0.9 billion at year-end 2001, a decrease of $0.1
billion from 2000, reflecting decreases in the fair value of equity and
corporate debt securities partially offset by additional investments. GECS
investment securities were $100.1 billion in 2001, compared with $90.3 billion
in 2000. The increase of $9.8 billion resulted from investment of premiums
received, reinvestment of investment income, and the addition of securities from
acquired companies, partially offset by sales and maturities as well as
decreases in the fair value of certain debt and equity securities. See note 9
for further information.

<PAGE>
                                      F-19

ANNUAL REPORT PAGE 59


WORKING CAPITAL, representing GE cash invested in inventories and receivables
from customers less trade payables and progress payments, has improved
significantly over the past three years. Working capital declined from an
investment of $5.0 billion at the beginning of 1999 to a negative $2.4 billion
at the end of 2001 on much higher progress collections from Power Systems
customers. As Power Systems completes its orders backlog over the next few
years, progress collections of $11.8 billion at December 31, 2001, will be
earned, affecting working capital turnover adversely. Nevertheless, working
capital performance at the end of this backlog fulfillment period is expected to
be improved from January 1, 1999, the result of Six Sigma and Digitization
initiatives. Current receivables and inventories, two important elements of
working capital, are discussed in the following paragraphs.

CURRENT RECEIVABLES for GE were $9.8 billion at the end of 2001, an increase of
$0.1 billion from year-end 2000, and included $5.9 billion due from customers at
the end of 2001, compared with $6.3 billion at the end of 2000. Turnover of
customer receivables from sales of goods and services was 10.1 in 2001, compared
with 10.0 in 2000. Other current receivables are primarily amounts that did not
originate from sales of GE goods or services, such as advances to suppliers in
connection with large contracts.

INVENTORIES for GE were $8.3 billion at December 31, 2001, up $1.1 billion from
the end of 2000. GE inventory turnover was 7.9 in 2001, a decrease from 8.5 in
2000, as a result of higher inventories in short-cycle businesses.

     GECS inventories were $270 million and $666 million at December 31, 2001
and 2000, respectively. The decrease in 2001 primarily reflected the
rationalization of certain operations at IT Solutions, as well as improved
inventory management.

FINANCING RECEIVABLES of GECS were $174.0 billion at year-end 2001, net of
allowance for losses, up $30.7 billion over 2000. These receivables are
discussed on page 56 and in notes 12 and 13.

INSURANCE RECEIVABLES of GECS were $27.3 billion at year-end 2001, an increase
of $3.5 billion. The increase was primarily attributable to increased recoveries
under existing retrocession agreements and core growth, partially offset by the
planned run-off of assets at Toho (see note 14).

OTHER RECEIVABLES of GECS totaled $13.3 billion at both December 31, 2001 and
2000, and consists primarily of nonfinancing customer receivables, accrued
investment income, amounts due from GE (generally related to certain trade
payable programs), amounts due under operating leases, receivables due on sales
of securities and various sundry items.


PROPERTY, PLANT AND EQUIPMENT (including equipment leased to others) was $42.1
billion at December 31, 2001, up $2.1 billion from 2000. GE property, plant and
equipment consists of investments for its own productive use, whereas the
largest element for GECS is in equipment provided to third parties on operating
leases. Details by category of investment are presented in note 15.

     GE expenditures for plant and equipment during 2001 totaled $2.9 billion,
compared with $2.5 billion in 2000. Total expenditures for the past five years
were $12.2 billion, of which 40% was investment for growth through new capacity
and product development; 34% was investment in productivity through new
equipment and process improvements; and 26% was investment for other purposes
such as improvement of research and development facilities and safety and
environmental protection.

     GECS additions to property, plant and equipment (including equipment leased
to others), were $12.6 billion during 2001 ($11.4 billion during 2000),
primarily reflecting acquisitions of transportation equipment.

INTANGIBLE ASSETS were $31.6 billion at year-end 2001, up from $27.4 billion at
year-end 2000. GE intangibles increased to $12.9 billion from $12.4 billion at
the end of 2000, principally as a result of goodwill related to acquisitions by
Power Systems and Medical Systems, partially offset by amortization. GECS
intangibles increased $3.7 billion to $18.7 billion, reflecting goodwill and
other intangibles associated with acquisitions, the largest of which was the
acquisition of Heller Financial, partially offset by amortization.

ALL OTHER ASSETS totaled $80.5 billion at year-end 2001, an increase of $6.6
billion from the end of 2000. GE other assets increased $2.0 billion,
principally reflecting an increase in the prepaid pension asset partially offset
by a decrease in long-term receivables. GECS other assets increased $4.7 billion
as a result of additional investments in real estate and associated companies,
the recognition of all derivatives at fair value in accordance with SFAS 133,
and increases in deferred insurance acquisition costs, partially offset by
decreases in "separate accounts" (see note 17).

CONSOLIDATED BORROWINGS aggregated $232.9 billion at December 31, 2001, compared
with $201.3 billion at the end of 2000. The major debt-rating agencies evaluate
the financial condition of GE and of GE Capital (the major public borrowing
entity of GECS) differently because of their distinct business characteristics.
Using criteria appropriate to each and considering their combined strength,
those major rating agencies continue to give the highest ratings to debt of both
GE and GE Capital.

     GE total borrowings were $2.5 billion at year-end 2001 ($1.7 billion short
term, $0.8 billion long term), an increase of $0.7 billion from year-end 2000.
GE total debt at the end of 2001 equaled 4.3% of total capital, up from 3.3% at
the end of 2000.

     GECS total borrowings were $239.9 billion at December 31, 2001, of which
$160.8 billion is due in 2002 and $79.1 billion is due in subsequent years.
Comparable amounts at the end of 2000 were $205.4 billion in total, $124.0
billion due within one year and $81.4 billion due thereafter. A large portion of

<PAGE>
                                      F-20

ANNUAL REPORT PAGE 60

GECS borrowings ($117.5 billion and $94.5 billion at the end of 2001 and 2000,
respectively) was issued in active commercial paper markets that management
believes will continue to be a reliable source of short-term financing. Most of
this commercial paper was issued by GE Capital. The average remaining terms and
interest rates of GE Capital commercial paper were 46 days and 2.37% at the end
of 2001, compared with 45 days and 6.43% at the end of 2000. The GE Capital
ratio of debt to equity was 7.31 to 1 at the end of 2001 and 7.53 to 1 at the
end of 2000.

INSURANCE LIABILITIES, RESERVES AND ANNUITY BENEFITS were $114.2 billion, $8.1
billion higher than in 2000. The increase was primarily attributable to the
addition of reserves associated with the events of September 11, and growth in
deferred annuities and guaranteed investment contracts, partially offset by the
planned run-off of policyholder contracts at Toho and decreases in separate
accounts. For additional information on these liabilities, see note 19.

INTEREST RATE AND CURRENCY RISK MANAGEMENT is important in the normal business
activities of GE and GECS. Derivative financial instruments are used by GE and
GECS to mitigate or eliminate certain financial and market risks, including
those related to changes in interest rates and currency exchange rates. As a
matter of policy, neither GE nor GECS engages in derivatives trading,
derivatives market-making or other speculative activities.

     The U.S. Securities and Exchange Commission requires that registrants
provide information about potential effects of changes in interest rates and
currency exchange. Although the rules offer alternatives for presenting this
information, none of the alternatives is without limitations. The following
discussion is based on so-called "shock tests," which model effects of interest
rate and currency shifts on the reporting company. Shock tests, while probably
the most meaningful analysis permitted, are constrained by several factors,
including the necessity to conduct the analysis based on a single point in time
and by their inability to include the complex market reactions that normally
would arise from the market shifts modeled. While the following results of shock
tests for changes in interest rates and currency exchange rates may have some
limited use as benchmarks, they should not be viewed as forecasts.

o    One  means  of   assessing   exposure  to  interest   rate   changes  is  a
     duration-based  analysis that  measures the potential  loss in net earnings
     resulting  from a  hypothetical  increase  in  interest  rates of 100 basis
     points across all maturities (sometimes referred to as a "parallel shift in
     the yield curve"). Under this model with all else constant, it is estimated
     that such an increase,  including  repricing in the  securities  portfolio,
     would reduce the 2002 net earnings of GECS based on year-end 2001 positions
     by   approximately   $189  million;   the  pro  forma  effect  for  GE  was
     insignificant. Based on positions at year-end 2000, the pro forma effect on
     2001 net earnings of such an increase in interest rates was estimated to be
     a decrease of approximately $124 million for GECS and was insignificant for
     GE.

o    The geographic distribution of GE and GECS operations is diverse. One means
     of  assessing  exposure to changes in currency  exchange  rates is to model
     effects on reported  earnings using a sensitivity  analysis.  Year-end 2001
     consolidated currency exposures, including financial instruments designated
     and  effective as hedges,  were analyzed to identify GE and GECS assets and
     liabilities denominated in other than their relevant functional currencies.
     Net unhedged exposures in each currency were then remeasured assuming a 10%
     decrease (substantially greater decreases for hyperinflationary currencies)
     in currency exchange rates compared with the U.S. dollar. Under this model,
     management  estimated at year-end  2001 that such a decrease  would have an
     insignificant effect on 2002 earnings of either GE or GECS.

STATEMENT OF CHANGES IN SHARE OWNERS' EQUITY

Share owners' equity increased $4.3 billion, $7.9 billion and $3.7 billion in
2001, 2000 and 1999, respectively. The increases were largely attributable to
net earnings of $13.7 billion, $12.7 billion and $10.7 billion partially offset
by dividends of $6.6 billion, $5.6 billion and $4.8 billion in 2001, 2000 and
1999, respectively.

     Currency translation adjustments reduced equity by $562 million, $1,204
million and $632 million in 2001, 2000 and 1999, respectively. Changes in the
currency translation adjustment reflect the effects of changes in currency
exchange rates on GE net investment in non-U.S. subsidiaries that have
functional currencies other than the U.S. dollar. Over the three-year period,
changes in the currency translation adjustment were largely affected by exchange
rate changes in the euro and Asian currencies. The euro was relatively unchanged
versus the U.S. dollar in 2001 after weakening in 2000 and 1999. Asian
currencies weakened in 2001 and 2000 after strengthening in 1999. Accumulated
currency translation adjustments affect net earnings only when all or a portion
of an affiliate is disposed of.

     Adoption of SFAS 133 in 2001 reduced equity by $955 million, including $827
million at the date of adoption. Further information about this accounting
change is provided in note 1.

STATEMENT OF CASH FLOWS

Because cash management activities of GE and GECS are separate and distinct, it
is more useful to review their cash flows separately.

GE CASH AND EQUIVALENTS aggregated $10.4 billion at the end of 2001, up from
$7.2 billion at year-end 2000. GE periodically invests available cash in GECS
short-term borrowings. Such amounts are classified as cash equivalents in the GE
Statement of Financial Position and amounted to $8.7 billion and $5.1 billion at
December 31, 2001 and 2000, respectively. During 2001, GE generated a record

<PAGE>
                                      F-21

ANNUAL REPORT PAGE 61

$17.2 billion in cash from operating activities, a $1.8 billion increase over
2000 primarily due to the 11% increase in earnings before accounting changes. Of
this increase, $200 million is attributable to higher 2001 progress collections,
primarily at Power Systems. Excluding progress collections in both 2001 and
2000, cash from operating activities increased 13% in 2001. The 2001 cash
generation provided the necessary resources to purchase $3.1 billion of GE
common stock under the share repurchase program described below, to pay $6.4
billion in dividends to share owners, to contribute $3.0 billion to GECS, a
portion of which was used to partially fund the acquisition of Heller Financial,
to invest $2.9 billion in plant and equipment and to make $1.4 billion in
acquisitions.

     Operating activities are the principal source of GE's cash flows. Over the
past three years, operating activities have provided more than $44 billion of
cash. The principal application of this cash was distributions of approximately
$24 billion to share owners, both through payment of dividends ($16.3 billion)
and through the share repurchase program ($7.2 billion) described below. Other
applications included investment in plant and equipment ($7.4 billion),
acquisitions ($4.2 billion) and the 2001 capital contribution of $3.0 billion to
GECS.

                                  [GRAPH HERE]
--------------------------------------------------------------------------------
CASH FROM OPERATING ACTIVITIES
(In billions)
                               1997       1998       1999       2000       2001
--------------------------------------------------------------------------------
                              $9.21      $9.64     $10.00     $12.16     $13.75
Progress collections           0.11       0.39       1.77       3.26       3.45
--------------------------------------------------------------------------------


     Under the share repurchase program initiated in December 1994, GE has
purchased 1.0 billion shares of GE stock. In December 2001, GE's Board of
Directors increased the amount authorized from $22 billion to $30 billion. Funds
used for the share repurchase are expected to be generated largely from
operating cash flow.

     Based on past performance and current expectations, in combination with the
financial flexibility that comes with a strong balance sheet and the highest
credit ratings, management believes that GE is in a sound position to complete
the share repurchase program, to grow dividends in line with earnings, and to
continue making selective investments for long-term growth. Expenditures for
plant and equipment are expected to be about $2.3 billion in 2002, principally
for productivity and growth.

GECS CASH AND EQUIVALENTS aggregated $7.3 billion at the end of 2001, up from
$6.1 billion at year-end 2000. One of the primary sources of cash for GECS is
short and long-term borrowings. Over the past three years, GECS borrowings with
maturities of 90 days or less have increased by $28.8 billion. New borrowings of
$125.2 billion having maturities longer than 90 days were added during those
years, while $94.9 billion of such longer-term borrowings were retired. GECS
also generated $41.7 billion from operating activities, which benefited in 2001
from an increase in insurance liabilities and reserves, net of an increase in
reinsurance recoverables, and a decrease from the planned run-off of
policyholder contracts at Toho.

     The principal use of cash by GECS has been investing in assets to grow its
businesses. Of the $110.1 billion that GECS invested over the past three years,
$42.7 billion was used for additions to financing receivables; $37.5 billion was
used to invest in new equipment, principally for lease to others; and $22.2
billion was used for acquisitions of new businesses, the largest of which were
Heller Financial and Mellon Leasing in 2001 and Japan Leasing and the credit
card operations of JC Penney in 1999.

     With the financial flexibility that comes with excellent credit ratings,
management believes that GECS should be well positioned to meet the global needs
of its customers for capital and to continue providing GE share owners with good
returns.

LIQUIDITY

The major debt-rating agencies evaluate the financial condition of GE and of GE
Capital, the major public borrowing entity of GECS, differently because of their
distinct business characteristics. Factors that are important to the ratings of
both include the following: cash generating ability--including cash generated
from operating activities; earnings quality--including revenue growth and the
breadth and diversity of sources of income; leverage ratios--such as debt to
total capital and interest coverage; and asset utilization, including return on
assets and asset turnover ratios. Considering those factors, as well as other
criteria appropriate to GE and GECS individually, those major rating agencies
continue to give the highest ratings to debt of both GE and GE Capital
(long-term credit rating AAA/Aaa; short-term credit rating A-1+/P-1).

GLOBAL COMMERCIAL PAPER MARKETS are a primary source of liquidity for GE and
GECS. GE Capital is the most widely-held name in those markets, with $117.5
billion and $94.5 billion outstanding at the end of 2001 and 2000, respectively.
Money markets are extremely robust. In 2001, GE Capital's commercial paper
accounted for only 2.4% of activity with maturities of less than one year in the
U.S. market, the largest of the global money markets.

     Management believes that alternative sources of liquidity are sufficient to
permit an orderly transition from commercial paper in the unlikely event of
impaired access to those markets. Funding sources on which management would rely
would depend on the nature of such a hypothetical event, but include $33 billion
of contractually committed lending agreements with highly-rated global banks,
medium and long-term funding, monetization and asset securitization, cash
receipts from GECS lending and leasing activities, short-term secured funding on
global assets, and asset sales. Strength of commercial paper markets and GE
Capital's access to those markets was evidenced on and immediately after
September 11, when many financial markets were closed, but GE Capital continued
to issue commercial paper without interruption.

<PAGE>
                                      F-22

ANNUAL REPORT PAGE 62

OFF-BALANCE SHEET ARRANGEMENTS are used in the ordinary course of business to
achieve improved share owner returns. One of the most common forms of
off-balance sheet arrangements is asset securitization. The transactions
described below are similar to those used by many financial institutions and are
part of an $800 billion annual market for asset-backed commercial paper. GE and
GECS use sponsored and third-party entities as well as term execution for
securitizations. As part of this program, management considers the relative
risks and returns of each alternative and predominantly uses sponsored entities.
Management believes these transactions could be readily executed through
non-sponsored entities or term securitization at insignificant incremental cost.

     In addition to improved share owner returns, special purpose entities serve
as funding sources for a variety of diversified lending and securities
transactions, transfer selected credit risk and improve cash flows while
enhancing the ability to provide a full range of competitive products for
customers.

     The discussion below and on page 63 describes sponsored special purpose
entities, and is organized as follows:

o    STRUCTURE of sponsored special purpose entities and of transactions that
     result in gains on sales and removal of assets from the financial
     statements. This section describes assets in the entities as well as
     management prohibitions on certain types of activities.

  o  SUPPORT, both financial and operational, provided for special purpose
     entities. This section describes the potential risks associated with
     special purpose entities as well as management's measures to control risk
     and conclusions about its potential significance.

  o  ACCOUNTING OUTLOOK for these entities. This section briefly discusses the
     accounting policy deliberations that have been undertaken recently
     regarding special purpose entities.

     STRUCTURE. Simply stated, GE and GECS are selling high-quality, low-yield
financial assets to highly-rated entities that have financed those purchases
using low-cost commercial paper. Because GECS is the sponsor of these entities
and guarantees certain of their positions, management believes that the
structures warrant a more complete explanation, as follows.

     The first step in the securitization process uses entities that meet the
accounting criteria for Qualifying Special Purpose Entities (qualifying
entities). Among other criteria, a qualifying entity's activities must be
restricted to passive investment in financial assets and issuance of beneficial
interests in those assets. Under generally accepted accounting principles,
entities meeting these criteria are not consolidated in the sponsor's financial
statements. GE and GECS sell selected financial assets to qualifying entities.
Examples include GECS financing and credit card receivables and GE trade
receivables. On the whole, the credit quality of such assets is equal to or
higher than the credit quality of similar assets owned by GE and GECS.

     Qualifying entities raise cash by issuing beneficial interests--rights to
cash flows from the assets--to other GECS-sponsored special purpose entities
that issue highly-rated commercial paper to third-party institutional investors.
These entities use commercial paper proceeds to obtain beneficial interests in
the financial assets of qualifying entities, as well as financial assets
originated by multiple third parties. GECS provides credit support for certain
of these assets, as well as liquidity support for the commercial paper, as
described on page 63. In accordance with its contractual commitments to the
entities, GECS rigorously underwrites and services the associated assets, both
those originated by GE or GECS, and those originated by other participants. All
of the entities' assets serve as collateral for the commercial paper. These
entities are not consolidated in the accompanying financial statements. Support
activities include credit reviews at acquisition and ongoing review, billing and
collection activities--the same support activities that GECS employs for its own
financing receivables.

     GECS-sponsored special purpose entities are routinely evaluated by the
major credit rating agencies, including monthly reviews of key performance
indicators and annual reviews of asset quality. Commercial paper issued by these
entities has always received the highest available ratings from the major credit
rating agencies and at year-end 2001 was rated A-1+/P-1.

     The following table summarizes receivables held by special purpose
entities.

                              ---------------------------
December 31 (In millions)                 2001      2000
---------------------------------------------------------
Receivables--secured by
   Equipment                          $ 12,781   $ 7,993
   Commercial real estate                9,971     7,445
   Other assets                          7,761     6,249
Credit card receivables                  9,470     6,170
Trade receivables                        3,028     3,138
                              ---------------------------
   Total receivables                   $43,011   $30,995
=========================================================
GE assets included in the categories above at year-end 2001 and 2000,
respectively, are as follows: Equipment--$631 million and $269 million; Other
assets--$757 million and $611 million; Trade receivables--$2,396 million and
$1,733 million.
---------------------------------------------------------

     Each of the categories of assets shown in the table above represent
portfolios of assets that, in addition to being highly rated, are diversified to
avoid concentrations of risk. In each of the first three categories, financing
receivables are collateralized by a diverse mix of assets. Examples of assets in
each category follow: equipment--loans and leases on manufacturing and
transportation equipment; commercial real estate--loans on diversified
commercial property; other assets--diversified commercial loans; credit card
receivables--more than 23 million individual accounts; trade
receivables--balances of high credit quality accounts from sales of a broad
range of products and services to a diversified customer base.

<PAGE>
                                      F-23

ANNUAL REPORT PAGE 63

     In addition to the activities discussed previously, Financial Guaranty
Insurance Company (FGIC), a GECS affiliate that is a leader in the municipal
bond insurance market, uses special purpose entities that offer municipalities
guaranteed investment contracts with interests in high-quality, fixed-maturity,
investment grade assets. FGIC actively manages these assets under strict
investment criteria and GE Capital also provides certain performance guarantees.
Total assets in sponsored FGIC entities amounted to $13.4 billion and $10.2
billion at December 31, 2001 and 2000, respectively.

     None of these special purpose entities or qualifying entities is permitted
to hold GE stock and there are no commitments or guarantees that provide for the
potential issuance of GE stock. These entities do not engage in speculative
activities of any description, are not used to hedge GE or GECS positions, and
under GE integrity policies, no GE employee is permitted to invest in any
sponsored special purpose entity.

     SUPPORT. Financial support for certain special purpose entities is provided
in the following ways.

o    Under active liquidity support agreements, GECS has agreed to lend to these
     entities on a secured  basis if (a) certain  market  conditions  render the
     entities unable to issue new debt  instruments,  or (b) the entity's credit
     ratings were reduced below  specified  levels.  The maximum  amount of such
     support for commercial paper  outstanding was $43.2 billion at December 31,
     2001.  Under related unused  liquidity  support  agreements,  GECS has made
     additional  liquidity  support  commitments of $9.4 billion at December 31,
     2001,  that would be effective  upon  addition of  qualified  assets to the
     entities.

o    Under credit support  agreements,  GECS provides  recourse for a maximum of
     $14.5 billion of credit losses in special purpose entities. $9.1 billion of
     this support  represents full recourse for certain  assets;  the balance is
     based on  loss-sharing  formulas.  Assets with credit support are funded by
     commercial paper that is subject to the liquidity  support described above.
     Potential  credit  losses  are  provided  for  in  GE  and  GECS  financial
     statements based on management's  best estimate of probable losses inherent
     in the  portfolio  using the same  methodology  as for owned  assets.  GECS
     allowances for losses amounted to $0.7 billion and $0.6 billion at year-end
     2001 and 2000, respectively.

o    Performance guarantees relate to letters of credit and liquidity support
     for guaranteed investment contracts and are subject to a maximum of $3.8
     billion at December 31, 2001.

Management has extensive experience in evaluating economic, liquidity and credit
risk. In view of this experience, the high quality of assets in these entities,
the historically robust quality of commercial paper markets, and the historical
reliability of controls applied both to asset servicing and to activities in the
credit markets, management believes that, under any reasonable future economic
developments, the likelihood is remote that any such arrangements could have a
significant effect on GE or GECS operations, cash flows or financial position.

     Sales of securitized assets to special purpose entities result in a gain or
loss amounting to the net of sales proceeds, the carrying amount of net assets
sold, the fair value of servicing rights and an allowance for losses.
Securitization sales resulted in gains of $1.3 billion and about $0.5 billion in
2001 and 2000, respectively, and are included in GECS revenues.

     ACCOUNTING OUTLOOK. Various generally accepted accounting principles
specify the conditions that GE and GECS observe in not consolidating special
purpose entities and qualifying entities. Accounting for special purpose
entities is under review by the Financial Accounting Standards Board, and their
non-consolidated status may change as a result of those reviews.

     SUMMARY. The special purpose entities described above meet GE's economic
objectives for their use while complying with generally accepted accounting
principles. In the event that accounting rules change in a way that adversely
affects sponsored entities, alternative securitization techniques discussed on
page 62 would likely serve as a substitute at insignificant incremental cost.

PRINCIPAL DEBT CONDITIONS that could automatically result in remedies, such as
acceleration of GE or GECS debt, are described below.


o    If the short-term credit rating of GE Capital or certain special purpose
     entities previously discussed were to fall below. A-1+/P-1, GE Capital
     would be required to provide substitute liquidity for those entities or to
     purchase the outstanding commercial paper. The maximum amount that GE
     Capital would be required to provide in the event of such a downgrade is
     $43.2 billion at December 31, 2001.

o    If the long-term credit rating of GE Capital or certain special purpose
     entities previously discussed were to fall below AA-/Aa3, GE Capital would
     be required to provide substitute credit support or liquidate the special
     purpose entities. The maximum amount that GE Capital would be required to
     substitute in the event of such a downgrade is $14.5 billion at December
     31, 2001.

o    If the long-term credit rating of either GE or GECS under certain swap,
     forward and option contracts falls below A-/A3, certain remedies are
     required as discussed in note 29.

o    If GE Capital's ratio of earnings to fixed charges, which was 1.72 to 1 at
     the end of 2001 deteriorates to 1.10 to 1 or, upon redemption of certain
     preferred stock, its ratio of debt to equity, which was 7.31 to 1 at the
     end of 2001 exceeds 8 to 1, GE has committed to contribute capital to GE
     Capital. GE also has guaranteed subordinated debt of GECS with a face
     amount of $1.0 billion at December 31, 2001, and 2000.

o    If the GE long-term credit rating were to fall below investment grade (a
     downgrade of 9 ratings increments), certain special purpose entities with
     which GE has financing arrangements would have the right to terminate those
     arrangements potentially requiring $2.5 billion of secured funding.

<PAGE>
                                      F-24

ANNUAL REPORT PAGE 64

None of these conditions has been met in GE or GECS history, and management
believes that under any reasonable future economic developments, the likelihood
is remote that any such arrangements could have a significant effect on GE and
GECS operations, cash flows or financial position.

TIMING OF CONTRACTUAL COMMITMENTS at GE and GECS, related to leases and debt,
follow.

------------------------------------------------------------------------------
(In billions)            2002        2003        2004        2005        2006
------------------------------------------------------------------------------
GE                     $  2.2      $  0.5      $  0.5      $  0.3      $  0.3
GECS
   Commercial paper      117.5         --          --          --          --
   Other                  44.4        26.4       15.2        10.5         6.9
------------------------------------------------------------------------------

MANAGEMENT'S DISCUSSION OF SELECTED FINANCIAL DATA

SELECTED FINANCIAL DATA summarized on the following page are divided into three
sections: upper portion--consolidated data; middle portion--GE data that reflect
various conventional measurements for such enterprises; and lower portion--GECS
data that reflect key information pertinent to financial services businesses.

GE'S TOTAL RESEARCH AND DEVELOPMENT expenditures were $2,349 million in 2001, up
7% over 2000, which was 9% higher than 1999. In 2001, expenditures from GE's own
funds were $1,980 million, an increase of 6% over 2000, reflecting continuing
research and development work related to new product, service and process
technologies. Product technology efforts in 2001 included continuing development
work on the next generation of gas turbines, further advances in
state-of-the-art diagnostic imaging technologies, and development of more
fuel-efficient, cost-effective aircraft engine designs. Services technologies
include advances in diagnostic applications, including remote diagnostic
capabilities related to repair and maintenance of medical equipment, aircraft
engines, power generation equipment and locomotives. Process technologies
provided improved product quality and performance and increased capacity for
manufacturing engineered materials. Expenditures funded by customers (mainly the
U.S. government) were $369 million in 2001, up $43 million from 2000.


GE'S TOTAL BACKLOG of firm unfilled orders at the end of 2001 was $47.4 billion,
an increase of 7% over 2000, reflecting strong double-digit growth at Power
Systems, Medical Systems and Transportation Systems, partially offset by lower
backlog at Aircraft Engines. Of the total, $38.9 billion related to products, of
which 70% was scheduled for delivery in 2002. Product services orders, included
in this reported backlog for only the succeeding 12 months, were $8.4 billion at
the end of 2001. Orders constituting this backlog may be canceled or deferred by
customers, subject in certain cases to penalties. See Segment Operations
beginning on page 50 for further information.

                                  [GRAPH HERE]
--------------------------------------------------------------------------------
GE SHARE PRICE ACTIVITY
(In dollars)
                               1997       1998       1999       2000       2001
--------------------------------------------------------------------------------
High                         $25.52     $34.65     $53.17     $60.50     $52.90
Low                           15.98      23.00      31.42      41.67      28.25
Close                         24.46      34.00      51.58      47.94      40.08
--------------------------------------------------------------------------------


MANAGEMENT'S DISCUSSION OF CRITICAL ACCOUNTING POLICIES

High-quality financial statements require rigorous application of high-quality
accounting policies. The policies discussed below are considered by management
to be critical to an understanding of GE's financial statements because their
application places the most significant demands on management's judgment, with
financial reporting results relying on estimation about the effect of matters
that are inherently uncertain. Specific risks for these critical accounting
policies are described in the following paragraphs. For all of these policies,
management cautions that future events rarely develop exactly as forecast, and
the best estimates routinely require adjustment.

LOSSES ON FINANCING RECEIVABLES are recognized when they are incurred.
Measurement of such losses requires consideration of historical loss experience,
including the need to adjust for current conditions, and judgments about the
probable effects of relevant observable data, including present economic
conditions such as delinquency rates, financial health of specific customers and
market sectors, collateral value, and the present and expected levels of
interest rates. GECS exposure to losses on financing receivables at year-end
2001 was approximately $193 billion, including credit support for special
purpose entities, against which an allowance for losses of approximately $5.5
billion was provided. An analysis of changes in the allowance for losses is
provided on page 56 which discusses financing receivable portfolio quality.
While losses depend to a large degree on future economic conditions, management
does not forecast significant adverse credit development in 2002. Further
information is provided in notes 1, 12 and 13.

<PAGE>
                                      F-25
ANNUAL REPORT PAGE 65

SELECTED FINANCIAL DATA

<TABLE>
<CAPTION>

                                                            --------------------------------------------------
(Dollar amounts in millions; per-share amounts in dollars)       2001       2000      1999      1998     1997
--------------------------------------------------------------------------------------------------------------
<S>                                                         <C>         <C>       <C>       <C>       <C>
GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
   Revenues                                                 $ 125,913   $129,853  $111,630  $100,469   $90,840
   Earnings before accounting changes                          14,128     12,735    10,717     9,296     8,203
   Cumulative effect of accounting changes                       (444)      --        --        --        --
   Net earnings                                                13,684     12,735    10,717     9,296     8,203
   Dividends declared                                           6,555      5,647     4,786     4,081     3,535
   Earned on average share owners' equity excluding
     effect of accounting changes                                27.1%     27.5%      26.8%     25.7%     25.0%
   Per share
     Earnings before accounting changes--diluted            $    1.41   $   1.27  $   1.07  $   0.93   $  0.82
     Cumulative effect of accounting changes--diluted           (0.04)      --          --        --       --
     Earnings--diluted                                           1.37       1.27      1.07      0.93      0.82
     Earnings before accounting changes--basic                   1.42       1.29      1.09      0.95      0.83
     Cumulative effect of accounting changes--basic             (0.04)      --          --        --       --
     Earnings--basic                                             1.38       1.29      1.09      0.95      0.83
     Dividends declared                                          0.66       0.57      0.48 2/3  0.41 2/3  0.36
     Stock price range                                          52.90      60.50     53.17     34.65     25.52
                                                               -28.25     -41.67    -31.42    -23.00    -15.98
     Year-end closing stock price                               40.08      47.94     51.58     34.00     24.46
   Total assets                                               495,023    437,006   405,200   355,935   304,012
   Long-term borrowings                                        79,806     82,132    71,427    59,663    46,603
   Shares outstanding--average (in thousands)               9,932,245  9,897,110 9,833,478 9,806,995 9,824,075
   Share owner accounts--average                              625,000    597,000   549,000   534,000   509,000
==============================================================================================================
GE DATA
   Short-term borrowings                                    $   1,722   $    940  $  2,245  $  3,466   $ 3,629
   Long-term borrowings                                           787        841       722       681       729
   Minority interest                                              948        968       823       816       569
   Share owners' equity                                        54,824     50,492    42,557    38,880    34,438
                                                            --------------------------------------------------
     Total capital invested                                 $  58,281   $ 53,241  $ 46,347  $ 43,843   $39,365
                                                            ==================================================
   Return on average total capital invested                      27.0%      27.4%     25.8%     23.9%     23.6%
   Borrowings as a percentage of total capital invested
     excluding effect of accounting changes                       4.3%       3.3%      6.4%      9.5%     11.1%
   Working capital (a)                                      $  (2,398)  $    799  $  3,922  $  5,038   $ 5,990
   Additions to property, plant and equipment                   2,876      2,536     2,036     2,047     2,191
   Employees at year end
     United States                                            125,000    131,000   124,000   125,000   128,000
     Other countries                                           94,000     92,000    86,000    82,000    81,000
                                                            --------------------------------------------------
     Total employees                                          219,000    223,000   210,000   207,000   209,000
==============================================================================================================
GECS DATA
   Revenues                                                 $  58,353   $ 66,177  $ 55,749  $ 48,694   $39,931
   Earnings before accounting changes                           5,586      5,192     4,443     3,796     3,256
   Cumulative effect of accounting changes                       (169)      --        --        --        --
   Net earnings                                                 5,417      5,192     4,443     3,796     3,256
   Share owner's equity                                        28,590     23,022    20,321    19,727    17,239
   Minority interest                                            4,267      3,968     4,391     3,459     3,113
   Borrowings from others                                     239,935    205,371   200,025   172,200   141,263
Ratio of debt to equity at GE Capital                          7.31:1     7.53:1    8.44:1    7.86:1    7.45:1
Total assets                                                $ 425,484   $370,636  $345,018  $303,297  $255,408
Insurance premiums written                                     15,843     16,461    13,624    11,865     9,396
Employees at year end
  United States (b)                                            33,000     37,000    43,000    38,000    37,000
  Other countries                                              58,000     53,000    57,000    48,000    30,000
                                                            --------------------------------------------------
     Total employees                                           91,000     90,000   100,000    86,000    67,000
==============================================================================================================
Transactions between GE and GECS have been eliminated from the consolidated
information.

(a)  Working capital is defined as the sum of receivables from the sales of
     goods and services plus inventories less trade accounts payable and
     progress collections.

(b)  Excludes employees of Montgomery Ward in 1999.
</TABLE>


<PAGE>
                                      F-26

ANNUAL REPORT PAGE 66

IMPAIRMENT OF INVESTMENT SECURITIES results in a charge to operations when a
market decline below cost is other than temporary. Management regularly reviews
each investment security for impairment based on criteria that include the
extent to which cost exceeds market value, the duration of that market decline
and the financial health of and specific prospects for the issuer. GECS
investment securities amounted to approximately $100 billion at year-end 2001.
Gross unrealized gains and losses included in that carrying amount related to
debt securities were $1.9 billion and $2.3 billion, respectively. Gross
unrealized gains and losses on equity securities were $0.2 billion and $0.4
billion, respectively. Of those securities whose carrying amount exceeds fair
value at year-end 2001, and based on application of GE's accounting policy for
impairment, approximately $600 million of portfolio value is at risk of being
charged to earnings in 2002. GECS actively performs comprehensive market
research, monitors market conditions and segments its investments by credit risk
in order to minimize impairment risks. Further information is provided in notes
1 and 9 and on page 58, which discusses the investment securities portfolio.

REVENUE RECOGNITION ON LONG-TERM AGREEMENTS to provide product services (product
services agreements) requires estimates of profits over the entire terms of such
agreements, considering factors such as the frequency and extent of future
maintenance events, cost of personnel, material and other resources required to
perform the services, and future cost changes. GE management routinely reviews
estimates under product services agreements; such estimates are regularly
revised to adjust for changes in outlook. Revisions that affect a product
services agreement's total estimated profitability will also result in an
immediate adjustment of earnings. Management regularly assesses customer credit
risk inherent in the carrying amounts of contract costs and estimated earnings
and provides for losses when they are incurred. Such carrying amounts for
product services agreements in progress at December 31, 2001 and 2000, were $2.3
billion and $1.7 billion, respectively. Adjustments to earnings resulting from
revisions to estimates on product services agreements have been insignificant
for each of the years in the three-year period ended December 31, 2001.


INSURANCE LIABILITIES AND RESERVES differ for short and long-duration insurance
contracts. Short-duration contracts such as property and casualty policies are
accounted for based on actuarial estimates of the amount of loss inherent in
that period's claims, including losses for which claims have not yet been
reported. Short-duration contract loss estimates rely on actuarial observations
of ultimate loss experience for similar historical events. Measurement of
long-duration insurance liabilities (such as term and whole life insurance
policies) also is based on approved actuarial techniques, but necessarily
includes assumptions about mortality, lapse rates and future yield on related
investments. GECS insurance liabilities, reserves and annuity benefits totaled
$114.2 billion at year-end 2001. Of that total, approximately $27.2 billion
related to unpaid claims and claims adjustment expenses for short-duration
insurance coverage. As discussed on page 56, there has been a recent shift in
the source of adverse loss development away from property to liability coverage.
Management continually evaluates the potential for changes in loss estimates,
both positive and negative, and uses the results of these evaluations both to
adjust recorded provisions and to adjust underwriting criteria and product
offerings. The potential for further adverse loss development in these areas is
highly uncertain. Further information about insurance liabilities is provided in
note 19.

OTHER LOSS CONTINGENCIES are recorded as liabilities when it is probable that a
liability has been incurred and the amount of the loss is reasonably estimable.
Disclosure is required when there is a reasonable possibility that the ultimate
loss will exceed the recorded provision. Contingent liabilities are often
resolved over long time periods. Estimating probable losses requires analysis of
multiple forecasts that often depend on judgments about potential actions by
third parties such as regulators.

OTHER SIGNIFICANT ACCOUNTING POLICIES, not involving the same level of
measurement uncertainties as those discussed above, are nevertheless important
to an understanding of the financial statements. Policies related to revenue
recognition, financial instruments and consolidation policy require difficult
judgments on complex matters that are often subject to multiple sources of
authoritative guidance. Certain of these matters are among topics currently
under reexamination by accounting standards setters and regulators. Although no
specific conclusions reached by these standard setters appear likely to cause a
material change in GE's accounting policies, outcomes cannot be predicted with
confidence. Also see note 1, Summary of Significant Accounting Policies, which
discusses accounting policies that must be selected by management when there are
acceptable alternatives.

<PAGE>
                                      F-27

ANNUAL REPORT PAGE 67

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CONSOLIDATION. The consolidated financial statements represent the adding
together of all affiliates-companies that General Electric Company directly or
indirectly controls. Results of associated companies-generally companies that
are 20% to 50% owned and over which General Electric Company, directly or
indirectly, has significant influence-are included in the financial statements
on a "one-line" basis.

FINANCIAL STATEMENT  PRESENTATION.  Financial data and related  measurements are
presented in the following categories:

o    GE. This represents the adding together of all affiliates other than
     General Electric Capital Services, Inc. (GECS), whose operations are
     presented on a one-line basis.

o    GECS. This affiliate owns all of the common stock of General Electric
     Capital Corporation (GE Capital) and GE Global Insurance Holdings
     Corporation (GE Global Insurance Holdings), the parent of Employers
     Reinsurance Corporation. GE Capital, GE Global Insurance Holdings and their
     respective affiliates are consolidated in the GECS columns and constitute
     its business.

o CONSOLIDATED. This represents the adding together of GE and GECS.

The effects of transactions among related companies within and between each of
the above-mentioned groups are eliminated. Transactions between GE and GECS are
not material.

     Certain prior-year amounts have been reclassified to conform to the 2001
presentation.

     The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect reported amounts and related disclosures. Actual results
could differ from those estimates.

SALES OF GOODS AND SERVICES. Sales of goods are recorded when a firm sales
agreement is in place, delivery has occurred and collectibility of the fixed or
determinable sales price is reasonably assured. Sales of services are recorded
when performed in accordance with contracts. For long-term product services
agreements, estimated profit rates are used to record sales as work is
performed. Estimates are subject to change and may result in adjustments to
margins. Losses, if any, are provided for when probable. For contracts that
contain multiple products and/or services, amounts assigned to each component
are based on its objectively determined fair value, such as the sales price for
the component when it is sold separately or competitor prices for similar
components.

GECS REVENUES FROM SERVICES (EARNED INCOME). Income on all loans is recognized
on the interest method. Accrual of interest income is suspended at the earlier
of the time at which collection of an account becomes doubtful or the account
becomes 90 days delinquent. Interest income on impaired loans is recognized
either as cash is collected or on a cost-recovery basis as conditions warrant.

     Financing lease income is recorded on the interest method so as to produce
a level yield on funds not yet recovered. Estimated unguaranteed residual values
of leased assets are based primarily on periodic independent appraisals of the
values of leased assets remaining at expiration of the lease terms.

     Operating lease income is recognized on a straight-line basis over the
terms of underlying leases.

     Origination, commitment and other nonrefundable fees related to fundings
are deferred and recorded in earned income on the interest method. Commitment
fees related to loans not expected to be funded and line-of-credit fees are
deferred and recorded in earned income on a straight-line basis over the period
to which the fees relate. Syndication fees are recorded in earned income at the
time related services are performed unless significant contingencies exist.

     Income from investment and insurance activities is discussed on page 68.

DEPRECIATION AND AMORTIZATION. The cost of most of GE's manufacturing plant and
equipment is depreciated using an accelerated method based primarily on a
sum-of-the-years digits formula.

     The cost of GECS equipment leased to others on operating leases is
amortized, principally on a straight-line basis, to estimated residual value
over the lease term or over the estimated economic life of the equipment.
Depreciation of property and equipment used by GECS is recorded on either a
sum-of-the-years digits formula or a straight-line basis over the lives of the
assets.

RECOGNITION OF LOSSES ON FINANCING RECEIVABLES. The allowance for losses on
small-balance receivables reflects management's best estimate of probable losses
inherent in the portfolio determined principally on the basis of historical
experience. For other receivables, principally the larger loans and leases, the
allowance for losses is determined primarily on the basis of management's best
estimate of probable losses, including specific allowances for known troubled
accounts.

     All accounts or portions thereof deemed to be uncollectible or to require
an excessive collection cost are written off to the allowance for losses.
Small-balance accounts generally are written off when 6 to 12 months delinquent,
although any such balance judged to be uncollectible, such as an account in
bankruptcy, is written down immediately to estimated realizable value.
Large-balance accounts are reviewed at least quarterly, and those accounts with
amounts that are judged to be uncollectible are written down to estimated
realizable value.

     When collateral is repossessed in satisfaction of a loan, the receivable is
written down against the allowance for losses to estimated fair value of the
asset less costs to sell, transferred to other assets and subsequently carried
at the lower of cost or estimated fair value less costs to sell. This accounting
method has been employed principally for specialized financing transactions.

<PAGE>
                                      F-28

ANNUAL REPORT PAGE 68

CASH AND EQUIVALENTS. Debt securities with original maturities of three months
or less are included in cash equivalents unless designated as available for sale
and classified as investment securities.

INVESTMENT SECURITIES. Investments in debt and marketable equity securities are
reported at fair value based primarily on quoted market prices or, if quoted
prices are not available, discounted expected cash flows using market rates
commensurate with credit quality and maturity of the investment. Substantially
all investment securities are designated as available for sale, with unrealized
gains and losses included in share owners' equity, net of applicable taxes and
other adjustments. Investment securities are regularly reviewed for impairment
based on criteria that include the extent to which cost exceeds market value,
the duration of the market decline, and the financial health of and specific
prospects for the issuer. Unrealized losses that are other than temporary are
recognized in earnings. Realized gains and losses are accounted for on the
specific identification method.

INVENTORIES.  All  inventories  are  stated at the  lower of cost or  realizable
values.  Cost for  virtually  all of GE's U.S.  inventories  is  determined on a
last-in,  first-out  (LIFO)  basis.  Cost of other GE  inventories  is primarily
determined on a first-in,  first-out  (FIFO)  basis.  GECS  inventories  consist
primarily of finished products held for sale. Cost is primarily  determined on a
FIFO basis.

INTANGIBLE ASSETS. Goodwill is amortized over its estimated period of benefit on
a straight-line basis; other intangible assets are amortized on appropriate
bases over their estimated lives. No amortization period exceeds 40 years. When
an intangible asset exceeds associated expected operating cash flows, it is
considered to be impaired and is written down to fair value, which is determined
based on either discounted future cash flows or appraised values.

GECS INSURANCE ACCOUNTING POLICIES. Accounting policies for GECS insurance
businesses follow.

PREMIUM INCOME. Insurance premiums are reported as earned income as follows:

o    For short-duration insurance contracts (including property and casualty,
     accident and health, and financial guaranty insurance), premiums are
     reported as earned income, generally on a pro-rata basis, over the terms of
     the related agreements. For retrospectively rated reinsurance contracts,
     premium adjustments are recorded based on estimated losses and loss
     expenses, taking into consideration both case and incurred-but-not-reported
     reserves.

o    For traditional long-duration insurance contracts (including term and whole
     life contracts and annuities payable for the life of the annuitant),
     premiums are reported as earned income when due.

o    For investment  contracts and universal life contracts,  premiums  received
     are reported as liabilities,  not as revenues. Universal life contracts are
     long-duration  insurance  contracts  with  terms  that  are not  fixed  and
     guaranteed;  for these  contracts,  revenues are recognized for assessments
     against  the  policyholder's  account,   mostly  for  mortality,   contract
     initiation,   administration  and  surrender.   Investment   contracts  are
     contracts that have neither significant mortality nor significant morbidity
     risk,  including  annuities  payable  for a  determined  period;  for these
     contracts,  revenues  are  recognized  on the  associated  investments  and
     amounts credited to policyholder accounts are charged to expense.

DEFERRED POLICY ACQUISITION COSTS. Costs that vary with and are primarily
related to the acquisition of new and renewal insurance and investment contracts
are deferred and amortized over the respective policy terms. For short-duration
insurance contracts, acquisition costs consist primarily of commissions,
brokerage expenses and premium taxes. For long-duration insurance contracts,
these costs consist primarily of first-year commissions in excess of recurring
renewal commissions, certain variable sales expenses and certain support costs
such as underwriting and policy issue expenses.

o    For short-duration insurance contracts, these costs are amortized pro rata
     over the contract periods in which the related premiums are earned.

o    For traditional long-duration insurance contracts, these costs are
     amortized over the respective contract periods in proportion to either
     anticipated premium income or, in the case of limited-payment contracts,
     estimated benefit payments.

o    For investment contracts and universal life contracts, these costs are
     amortized on the basis of anticipated gross profits.

Periodically, deferred policy acquisition costs are reviewed for recoverability;
anticipated investment income is considered in recoverability evaluations.

PRESENT VALUE OF FUTURE PROFITS. The actuarially determined present value of
anticipated net cash flows to be realized from insurance, annuity and investment
contracts in force at the date of acquisition of life insurance enterprises is
recorded as the present value of future profits and is amortized over the
respective policy terms in a manner similar to deferred policy acquisition
costs. Unamortized balances are adjusted to reflect experience and impairment,
if any.

ACCOUNTING CHANGES. At January 1, 2001, GE and GECS adopted Statement of
Financial Accounting Standards (SFAS) 133, ACCOUNTING FOR DERIVATIVE INSTRUMENTS
AND HEDGING ACTIVITIES, as amended. Under SFAS 133, all derivative instruments
(including certain derivative instruments embedded in other contracts) are


<PAGE>
                                      F-29

ANNUAL REPORT PAGE 69

recognized in the balance sheet at their fair values and changes in fair value
are recognized immediately in earnings, unless the derivatives qualify as hedges
of future cash flows. For derivatives qualifying as hedges of future cash flows,
the effective portion of changes in fair value is recorded temporarily in
equity, then recognized in earnings along with the related effects of the hedged
items. Any ineffective portion of hedges is reported in earnings as it occurs.
Further information about derivatives and hedging is provided in note 29.

     The cumulative effect of adopting this accounting change at January 1,
2001, was as follows:

                                                                   Share owners'
(In millions)                                    Earnings (a)            equity
--------------------------------------------------------------------------------
Adjustment to fair value of derivatives             $(502)              $(1,340)
Income tax effects                                    178                   513
                                                    -----               -------
Total                                               $(324)              $  (827)
================================================================================
The earnings per share effect was $0.03.

(a)  For earnings effect, amount shown is net of adjustment to hedged items.
--------------------------------------------------------------------------------

     The cumulative effect on earnings comprised two significant elements. One
element was associated with conversion option positions that were embedded in
financing agreements, and the other was a portion of the effect of marking to
market options and currency contracts used for hedging. The cumulative effect on
share owners' equity was primarily attributable to marking to market forward and
swap contracts used to hedge variable-rate borrowings. Decreases in the fair
values of these instruments were attributable to declines in interest rates
since inception of the hedging arrangements. As a matter of policy, GECS ensures
that funding, including the effect of derivatives, of its lending and other
financing asset positions are substantially matched in character (e.g., fixed
vs. floating) and duration. As a result, declines in the fair values of these
effective derivatives are offset by unrecognized gains on the related financing
assets and hedged items, and future earnings will not be subject to volatility
arising from interest rate changes.

     In November 2000, the Emerging Issues Task Force (EITF) of the Financial
Accounting Standards Board reached a consensus on accounting for impairment of
retained beneficial interests (EITF 99-20). Under this consensus, impairment of
certain beneficial interests in securitized assets must be recognized when (1)
the asset's fair value is below its carrying value, and (2) it is probable that
there has been an adverse change in estimated cash flows. The cumulative effect
of adopting EITF 99-20 at January 1, 2001, was a one-time reduction of net
earnings of $120 million ($0.01 per share).

     These accounting changes did not involve cash, and management expects that
they will have no more than a modest effect on future results.

2 GE OTHER INCOME

(In millions)                                        2001       2000       1999
                                                    -----      -----      -----
Residual licensing and royalty income               $  75      $  65      $  67
Associated companies                                 (106)      (111)        (1)
Marketable securities and bank deposits               184         55        105
Customer financing                                     11         22         17
Other items                                           269        467        668
                                                    -----      -----      -----
                                                    $ 433      $ 498      $ 856
================================================================================

     Other income in 1999 included a gain of $388 million related to the
contribution of certain of NBC's media properties to NBC Internet (NBCi), a
former publicly-traded company, in exchange for a noncontrolling interest in
NBCi. Assets contributed by NBC included its 100% interest in NBC.com,
NBC-IN.com and VideoSeeker.com as well as a 10% interest in a fourth property,
CNBC.com.

3 GECS REVENUES FROM SERVICES

(In millions)                                   2001          2000          1999
                                             -------       -------       -------
Time sales, loan and other income (a)        $22,150       $22,326       $18,209
Operating lease rentals                        6,088         6,183         6,022
Financing leases                               4,261         3,688         3,587
Investment income                              6,593         8,479         6,243
Premium and commission income of insurance
   businesses                                 15,634        16,093        12,948
                                             -------       -------       -------
                                             $54,726       $56,769       $47,009
================================================================================

(a)  Includes gains on sales of financial assets through securitizations of
     $1,327 million in 2001, compared with $489 million in 2000, which was
     approximately the same as the 1999 amount.
--------------------------------------------------------------------------------

<PAGE>
                                      F-30
ANNUAL REPORT PAGE 70

     For insurance businesses, the effects of reinsurance on premiums written
and premium and commission income were as follows:


(In millions)                                  2001          2000          1999
                                           --------      --------      --------
PREMIUMS WRITTEN
Direct                                     $  9,958      $  9,390      $  7,382
Assumed                                       9,603         9,552         8,520
Ceded                                        (3,718)       (2,481)       (2,278)
                                           --------      --------      --------
                                           $ 15,843      $ 16,461      $ 13,624
                                           --------      --------      --------
PREMIUM AND COMMISSION INCOME
Direct                                     $  9,912      $  9,026      $  7,002
Assumed                                       9,471         9,643         8,460
Ceded                                        (3,749)       (2,576)       (2,514)
                                           --------      --------      --------
                                           $ 15,634      $ 16,093      $ 12,948
================================================================================

     Reinsurance recoveries recognized as a reduction of insurance losses and
policyholder and annuity benefits amounted to $5,863 million, $3,232 million and
$2,648 million for the years ended December 31, 2001, 2000 and 1999,
respectively.

4 SUPPLEMENTAL COST INFORMATION

Total expenditures for research and development were $2,349 million, $2,193
million and $2,017 million in 2001, 2000 and 1999, respectively. The
Company-funded portion aggregated $1,980 million in 2001, $1,867 million in 2000
and $1,667 million in 1999.

     Rental expense under operating leases is shown below.


(In millions)                               2001            2000            1999
                                           -----           -----           -----
GE                                        $  694          $  648          $  607
GECS                                       1,006           1,176           1,067
================================================================================

     At December 31, 2001, minimum rental commitments under noncancelable
operating leases aggregated $2,608 million and $5,179 million for GE and GECS,
respectively. Amounts payable over the next five years follow.


(In millions)                   2002       2003       2004       2005       2006
                                ----       ----       ----       ----       ----
GE                              $519       $410       $328       $277       $228
GECS                             997        680        601        636        407
================================================================================

     GE's selling, general and administrative expense totaled $8,637 million in
2001, $8,392 million in 2000 and $7,732 million in 1999. Insignificant amounts
of interest were capitalized by GE and GECS in 2001, 2000 and 1999.


5 RETIREE HEALTH AND LIFE BENEFITS

GE and its affiliates sponsor a number of retiree health and life insurance
benefit plans (retiree benefit plans). Principal retiree benefit plans are
discussed below; other such plans are not significant individually or in the
aggregate.

PRINCIPAL RETIREE BENEFIT PLANS generally provide health and life insurance
benefits to employees who retire under the GE Pension Plan (see note 6) with 10
or more years of service. Retirees share in the cost of healthcare benefits.
Benefit provisions are subject to collective bargaining. These plans cover
approximately 250,000 retirees and dependents.

     The effect on operations of principal retiree benefit plans is shown in the
following table.

EFFECT ON OPERATIONS

(In millions)                                      2001        2000        1999
                                                  -----       -----       -----
Expected return on plan assets                    $(185)      $(178)      $(165)
Service cost for benefits earned                    191         165         107
Interest cost on benefit obligation                 459         402         323
Prior service cost                                   90          49           8
Net actuarial loss recognized                        60          40          45
                                                  -----       -----       -----
Total cost                                        $ 615       $ 478       $ 318
================================================================================

FUNDING POLICY for retiree health benefits is generally to pay covered expenses
as they are incurred. GE funds retiree life insurance benefits at its
discretion.

     Changes in the accumulated postretirement benefit obligation for retiree
benefit plans follow.

ACCUMULATED POSTRETIREMENT BENEFIT OBLIGATION (APBO)
(In millions)                                               2001           2000
                                                         -------        -------
Balance at January 1                                     $ 6,422        $ 4,926
Service cost for benefits earned                             191            165
Interest cost on benefit obligation                          459            402
Participant contributions                                     30             25
Plan amendments                                               --            948
Actuarial loss                                               287            534
Benefits paid                                               (593)          (578)
                                                         -------        -------
Balance at December 31 (a)                               $ 6,796        $ 6,422
================================================================================
(a)  The APBO for the health plans was $4,965 million and $4,688 million at
     year-end 2001 and 2000, respectively.
--------------------------------------------------------------------------------

<PAGE>
                                      F-31

ANNUAL REPORT PAGE 71

     Changes in the fair value of assets for retiree benefit plans follow.

FAIR VALUE OF ASSETS
(In millions)                                             2001             2000
                                                       -------          -------

Balance at January 1                                   $ 2,031          $ 2,369
Actual return on plan assets                              (163)             (85)
Employer contributions                                     466              300
Participant contributions                                   30               25
Benefits paid                                             (593)            (578)
                                                       -------          -------
Balance at December 31                                 $ 1,771          $ 2,031
================================================================================

     Plan assets are held in trust and consist mainly of common stock and
fixed-income investments. GE common stock represented 6.4% and 6.9% of trust
assets at year-end 2001 and 2000, respectively.

     GE recorded assets and liabilities for retiree benefit plans are as
follows:

RETIREE BENEFIT ASSET/(LIABILITY)
December 31 (In millions)                                  2001            2000
                                                        -------         -------
Funded status (a)                                       $(5,025)        $(4,391)
Unrecognized prior service cost                             909             999
Unrecognized net actuarial loss                           1,393             818
                                                        -------         --------
Net liability recognized                                $(2,723)        $(2,574)
                                                        =======         ========
Amounts recorded in the Statement of Financial Position:
      Prepaid retiree life plans asset                  $    66         $     8
      Retiree health plans liability                     (2,789)         (2,582)
                                                        -------         --------
Net liability recognized                                $(2,723)        $(2,574)
================================================================================
(a) Fair value of assets less APBO, as shown in the preceding tables.
--------------------------------------------------------------------------------

ACTUARIAL ASSUMPTIONS used to determine costs and benefit obligations for
principal retiree benefit plans follow.

ACTUARIAL ASSUMPTIONS
December 31                                       2001        2000         1999
                                                  ----        ----         ----
Discount rate                                     7.25%        7.5%        7.75%
Compensation increases                             5.0         5.0          5.0
Healthcare cost trend (a)                         11.6        10.0          9.0
Return on assets for the year (b)                  9.5         9.5          9.5
================================================================================
(a) For 2001, gradually declining to 5.0% after 2009.
(b) For 2002, the return on assets actuarial assumption will be 8.5%.
--------------------------------------------------------------------------------

     Increasing or decreasing the healthcare cost trend rates by one percentage
point would have had an insignificant effect on the December 31, 2001,
accumulated postretirement benefit obligation and the annual cost of retiree
health plans.

     Experience gains and losses, as well as the effects of changes in actuarial
assumptions and plan provisions, are amortized over the average future service
period of employees.

6 PENSION BENEFITS

GE and its affiliates sponsor a number of pension plans. Principal pension plans
are discussed below; other pension plans are not significant individually or in
the aggregate.

PRINCIPAL PENSION PLANS are the GE Pension Plan and the GE Supplementary Pension
Plan.

     The GE Pension Plan provides benefits to certain U.S. employees based on
the greater of a formula recognizing career earnings or a formula recognizing
length of service and final average earnings. Benefit provisions are subject to
collective bargaining. The GE Pension Plan covers approximately 503,000
participants, including 141,000 employees, 164,000 former employees with vested
rights to future benefits, and 198,000 retirees and beneficiaries receiving
benefits.

     The GE Supplementary Pension Plan is a pay-as-you-go plan providing
supplementary retirement benefits primarily to higher-level, longer-service U.S.
employees.
     Details of the effect on operations of principal pension plans, and the
total effect on cost of postretirement benefit plans, follow.

EFFECT ON OPERATIONS
(In millions)                                      2001        2000        1999
                                                -------     -------     -------
Expected return on plan assets                  $ 4,327     $ 3,754     $ 3,407
Service cost for benefits earned (a)               (884)       (780)       (693)
Interest cost on benefit obligation              (2,065)     (1,966)     (1,804)
Prior service cost                                 (244)       (237)       (151)
SFAS 87 transition gain                              --         154         154
Net actuarial gain recognized                       961         819         467
                                                -------     -------     -------
Income from pensions                              2,095       1,744       1,380
                                                -------     -------     -------
Retiree benefit plans cost (note 5)                (615)       (478)       (318)
                                                -------     -------     -------
Net cost reductions from
   postretirement benefit plans                 $ 1,480     $ 1,266     $ 1,062
================================================================================
(a) Net of participant contributions.
--------------------------------------------------------------------------------

FUNDING POLICY for the GE Pension Plan is to contribute amounts sufficient to
meet minimum funding requirements as set forth in employee benefit and tax laws
plus such additional amounts as GE may determine to be appropriate. GE has not
made contributions to the GE Pension Plan since 1987 because the fully funded
status of the Plan precludes a current tax deduction and because any GE
contribution would require payment of excise taxes.

<PAGE>
                                      F-32

ANNUAL REPORT PAGE 72

     Changes in the projected benefit obligation for principal pension plans
follow.

PROJECTED BENEFIT OBLIGATION (PBO)

(In millions)                                              2001            2000
                                                       --------        --------

Balance at January 1                                   $ 28,535        $ 25,522
Service cost for benefits earned (a)                        884             780
Interest cost on benefit obligation                       2,065           1,966
Participant contributions                                   141             140
Plan amendments                                              --           1,155
Actuarial loss (b)                                          889             970
Benefits paid                                            (2,091)         (1,998)
                                                       --------        --------
Balance at December 31                                 $ 30,423        $ 28,535
================================================================================
(a) Net of participant contributions.
(b) Principally associated with discount rate changes.
--------------------------------------------------------------------------------

     Changes in the fair value of assets for principal pension plans follow.

FAIR VALUE OF ASSETS
(In millions)                                            2001              2000
                                                     --------          --------
Balance at January 1                                 $ 49,757          $ 50,243
Actual return on plan assets                           (2,876)            1,287
Employer contributions                                     75                85
Participant contributions                                 141               140
Benefits paid                                          (2,091)           (1,998)
                                                     --------          --------
Balance at December 31                               $ 45,006          $ 49,757
================================================================================

     Plan assets are held in trust and consist mainly of common stock and
fixed-income investments. GE common stock represented 8.6% and 9.2% of trust
assets at year-end 2001 and 2000, respectively.

     GE recorded assets and liabilities for principal pension plans are as
follows:

PREPAID PENSION ASSET/(LIABILITY)
December 31 (In millions)                                    2001          2000
                                                         --------      --------
Funded status (a)                                        $ 14,583      $ 21,222
Unrecognized prior service cost                             1,373         1,617
Unrecognized net actuarial gain                            (3,541)      (12,594)
                                                         --------      --------
Net asset recognized                                     $ 12,415      $ 10,245
                                                         ========      ========
Amounts recorded in the Statement of Financial Position:
      Prepaid pension asset                              $ 13,740      $ 11,377
      Supplementary Pension Plan liability                 (1,325)       (1,132)
                                                         --------      --------
      Net asset recognized                               $ 12,415      $ 10,245
================================================================================
(a) Fair value of assets less PBO, as shown in the preceding tables.
--------------------------------------------------------------------------------

ACTUARIAL ASSUMPTIONS used to determine costs and benefit obligations for
principal pension plans follow.

ACTUARIAL ASSUMPTIONS
December 31                                       2001        2000         1999
                                                  ----        ----         ----
Discount rate                                     7.25%        7.5%        7.75%
Compensation increases                             5.0         5.0          5.0
Return on assets for the year (a)                  9.5         9.5          9.5
================================================================================
(a) For 2002, the return on assets actuarial assumption will be 8.5%.
--------------------------------------------------------------------------------

     Experience gains and losses, as well as the effects of changes in actuarial
assumptions and plan provisions, are amortized over the average future service
period of employees.

<PAGE>
                                      F-33

ANNUAL REPORT PAGE 73

7 PROVISION FOR INCOME TAXES

(In millions)                                   2001          2000          1999
                                              ------        ------        ------
GE
Current tax expense                           $3,632        $3,331        $2,555
Deferred tax expense from
   temporary differences                         561           468           652
                                              ------        ------        ------
                                               4,193         3,799         3,207
                                              ------        ------        ------
GECS
Current tax expense                              517         1,229           806
Deferred tax expense from
   temporary differences                         863           683           847
                                              ------        ------        ------
                                               1,380         1,912         1,653
                                              ------        ------        ------
CONSOLIDATED
Current tax expense                            4,149         4,560         3,361
Deferred tax expense from
   temporary differences                       1,424         1,151         1,499
                                              ------        ------        ------
                                              $5,573        $5,711        $4,860
================================================================================

     GE includes GECS in filing a consolidated U.S. federal income tax return.
The GECS provision for current tax expense includes its effect on the
consolidated return.

     Consolidated current tax expense includes amounts applicable to U.S.
federal income taxes of $2,514 million, $3,005 million and $1,632 million in
2001, 2000 and 1999, respectively, and amounts applicable to non-U.S.
jurisdictions of $1,225 million, $1,246 million and $1,399 million in 2001, 2000
and 1999, respectively. Consolidated deferred tax expense related to U.S.
federal income taxes was $1,455 million, $1,095 million and $1,475 million in
2001, 2000 and 1999, respectively.

     Deferred income tax balances reflect the impact of temporary differences
between the carrying amounts of assets and liabilities and their tax bases and
are stated at enacted tax rates expected to be in effect when taxes are actually
paid or recovered. See note 21 for details.

     Except for certain earnings that GE intends to reinvest indefinitely,
provision has been made for the estimated U.S. federal income tax liabilities
applicable to undistributed earnings of affiliates and associated companies. It
is not practicable to determine the U.S. federal income tax liability, if any,
that would be payable if such earnings were not reinvested indefinitely.

     Consolidated U.S. income before taxes and cumulative effect of accounting
changes was $13.9 billion in 2001, $12.9 billion in 2000 and $11.3 billion in
1999. The corresponding amounts for non-U.S.-based operations were $5.8 billion
in 2001, $5.5 billion in 2000 and $4.3 billion in 1999.

     A reconciliation  of the U.S. federal  statutory tax rate to the actual tax
rate is provided below.

<TABLE>

RECONCILIATION OF U.S. FEDERAL STATUTORY TAX RATE TO ACTUAL RATE
<CAPTION>

                                                         CONSOLIDATED                  GE                        GECS
                                                  -------------------------  ----------------------     ----------------------
                                                  2001     2000     1999     2001     2000     1999     2001     2000     1999
                                                  ----     ----     ----     ----     ----     ----     ----     ----     ----
<S>                                               <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>      <C>
Statutory U.S. federal income tax rate            35.0%    35.0%    35.0%    35.0%    35.0%    35.0%    35.0%    35.0%    35.0%
Increase (reduction) in rate resulting from:
   Inclusion of after-tax earnings of GECS in
      before-tax earnings of GE                     --       --       --    (10.7)   (11.0)   (11.2)      --       --       --
   Amortization of goodwill                        1.0      1.1      1.1      0.8      0.7      0.8      0.9      1.1      1.0
   Tax-exempt income                              (1.3)    (1.5)    (1.7)      --       --       --     (3.8)    (4.0)    (4.4)
   Tax on international activities including
      exports                                     (5.4)    (4.9)    (4.2)    (3.2)    (3.0)    (2.6)    (6.7)    (5.8)    (4.8)
   Americom/Rollins goodwill                      (1.1)      --       --       --       --       --     (3.2)      --       --
   All other-net                                   0.1      1.3      1.0      1.0      1.3      1.0     (2.4)     0.6      0.3
                                                  ----     ----     ----     ----     ----     ----     ----     ----     ----
                                                  (6.7)    (4.0)    (3.8)   (12.1)   (12.0)   (12.0)   (15.2)    (8.1)    (7.9)
                                                  ----     ----     ----     ----     ----     ----     ----     ----     ----
Actual income tax rate                            28.3%    31.0%    31.2%    22.9%    23.0%    23.0%    19.8%    26.9%    27.1%
===============================================================================================================================
</TABLE>

<PAGE>
                                      F-34

ANNUAL REPORT PAGE 74

8 EARNINGS PER SHARE INFORMATION
<TABLE>
<CAPTION>

                                                           2001               2000              1999
                                                  ------------------    ----------------  ----------------
(In millions; per-share amounts in dollars)        Diluted     Basic    Diluted    Basic  Diluted    Basic
----------------------------------------------------------------------------------------------------------
<S>                                               <C>        <C>        <C>      <C>      <C>      <C>
CONSOLIDATED OPERATIONS
Earnings before accounting changes                $ 14,128   $ 14,128   $12,735  $12,735  $10,717  $10,717
Dividend equivalents-net of tax                         12         --        11       --        8       --
                                                  --------   --------   -------  -------  -------  -------
Earnings before accounting changes
   for per-share calculation                        14,140     14,128    12,746   12,735   10,725   10,717
Cumulative effect of accounting changes               (444)      (444)       --       --       --       --
                                                  --------   --------   -------  -------  -------  -------
Net earnings available for per-share calculation  $ 13,696   $ 13,684   $12,746  $12,735  $10,725  $10,717
                                                  --------   --------   -------  -------  -------  -------
AVERAGE EQUIVALENT SHARES
Shares of GE common stock outstanding                9,932      9,932     9,897    9,897    9,833    9,833
Employee compensation-related shares,
   including stock options                             120         --       160       --      163       --
                                                  --------   --------   -------  -------  -------  -------
Total average equivalent shares                     10,052      9,932    10,057    9,897    9,996    9,833
                                                  --------   --------   -------  -------  -------  -------
PER-SHARE AMOUNTS
Earnings before accounting changes                $   1.41   $   1.42   $  1.27  $  1.29  $  1.07  $  1.09
Cumulative effect of accounting changes              (0.04)     (0.04)       --       --       --       --
                                                  --------   --------   -------  -------  -------  -------
Net earnings per share                            $   1.37   $   1.38   $  1.27  $  1.29  $  1.07  $  1.09
==========================================================================================================
</TABLE>


9 INVESTMENT SECURITIES

<TABLE>
<CAPTION>
                                          2001                                          2000
                        ------------------------------------------   -------------------------------------------
                                      Gross       Gross                             Gross      Gross
                       Amortized unrealized  unrealized  Estimated   Amortized unrealized unrealized   Estimated
                            cost      gains      losses fair value        cost      gains     losses  fair value
                        -------- ----------  ---------- ----------   --------- ---------- ----------  ----------
<S>                     <C>         <C>       <C>         <C>          <C>        <C>       <C>          <C>
GE SECURITIES
Debt-U.S. corporate     $    350    $    99   $      --   $    449     $   364    $   209   $     --     $   573
Equity                       412         47         (29)       430         316        266       (146)        436
                        --------    -------   ---------   --------     -------    -------   --------     -------
                             762        146         (29)       879         680        475       (146)      1,009
                        --------    -------   ---------   --------     -------    -------   --------     -------
GECS SECURITIES
Debt
   U.S. corporate         47,391        880      (1,626)    46,645      39,078        459     (1,282)     38,255
   State and municipal    12,518        180        (136)    12,562      13,272        499       (139)     13,632
   Mortgage-backed        16,442        424         (90)    16,776      13,683        323       (160)     13,846
   Corporate-non-U.S      13,088        232        (277)    13,043      12,640        374       (168)     12,846
   Government-non-U.S      6,104        183        (124)     6,163       5,059        104       (108)      5,055
   U.S. government and
      federal agency       1,233         25         (32)     1,226       2,106         15        (42)      2,079
Equity                     3,926        178        (381)     3,723       4,392        703       (478)      4,617
                        --------    -------   ---------   --------     -------    -------   --------     -------
                         100,702      2,102      (2,666)   100,138      90,230      2,477     (2,377)     90,330
                        --------    -------   ---------   --------     -------    -------   --------     -------
                        $101,464    $ 2,248   $  (2,695)  $101,017     $90,910    $ 2,952   $ (2,523)    $91,339
================================================================================================================
A substantial portion of mortgage-backed securities shown in the table above are collateralized by U.S.
residential mortgages.
----------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                      F-35

ANNUAL REPORT PAGE 75

CONTRACTUAL   MATURITIES  OF  GECS  INVESTMENT  IN  DEBT  SECURITIES  (EXCLUDING
MORTGAGE-BACKED SECURITIES)

                                                    Amortized          Estimated
(In millions)                                            cost         fair value
                                                    ---------         ----------
Due in
   2002                                               $ 5,184            $ 5,244
   2003-2006                                           17,382             17,293
   2007-2011                                           20,858             20,600
   2012 and later                                      36,910             36,502
================================================================================
It is expected that actual maturities will differ from contractual maturities
because borrowers have the right to call or prepay certain obligations.
--------------------------------------------------------------------------------

     Supplemental information about gross realized gains and losses of
investment securities follows.

(In millions)                              2001            2000            1999
                                        -------         -------         -------
GE
Gains                                   $   236         $     8         $    24
Losses                                     (100)            (76)             --
                                        -------         -------         -------
   Net                                      136             (68)             24
                                        -------         -------         -------
GECS
Gains (a)                                 1,800           3,581           1,406
Losses                                     (838)           (714)           (484)
                                        -------         -------         -------
   Net                                      962           2,867             922
                                        -------         -------         -------
                                        $ 1,098         $ 2,799         $   946
================================================================================
(a)  Includes $1,366 million, in 2000, from the sale of GECS investment in
     common stock of Paine Webber Group, Inc. Proceeds from securities sales
     amounted to $39,950 million in 2001, $24,748 million in 2000 and $18,521
     million in 1999.
--------------------------------------------------------------------------------

10 GE CURRENT RECEIVABLES

December 31 (In millions)                                  2001            2000
                                                       --------        --------
Aircraft Engines                                       $  1,976        $  1,840
Appliances                                                  341             327
Industrial Products and Systems                           1,140           1,246
Materials                                                 1,008           1,126
NBC                                                         335             384
Power Systems                                             3,587           3,668
Technical Products and Services                           1,341           1,128
Corporate items and eliminations                            439             358
                                                       --------        --------
                                                         10,167          10,077
Less allowance for losses                                  (362)           (350)
                                                       --------        --------
                                                       $  9,805        $  9,727
================================================================================

     Receivables balances at December 31, 2001 and 2000, before allowance for
losses, included $5,893 million and $6,323 million, respectively, from sales of
goods and services to customers, and $447 million and $233 million,
respectively, from transactions with associated companies.

     Current receivables of $270 million at year-end 2001 and $227 million at
year-end 2000 arose from sales, principally of aircraft engine goods and
services, on open account to various agencies of the U.S. government, which is
GE's largest single customer. About 4%, 3% and 4% of GE's sales of goods and
services were to the U.S. government in 2001, 2000 and 1999, respectively.

11 INVENTORIES

December 31 (In millions)                                  2001            2000
                                                        -------         -------
GE
Raw materials and work in process                       $ 4,708         $ 4,134
Finished goods                                            3,951           3,614
Unbilled shipments                                          312             243
                                                        -------         -------
                                                          8,971           7,991
Less revaluation to LIFO                                   (676)           (845)
                                                        -------         -------
                                                          8,295           7,146
                                                        -------         -------
GECS
Finished goods                                              270             666
                                                        -------         -------
                                                        $ 8,565         $ 7,812
================================================================================

     LIFO revaluations decreased $169 million in 2001, compared with decreases
of $82 million in 2000 and $84 million in 1999. Included in these changes were
decreases of $8 million, $6 million and $4 million in 2001, 2000 and 1999,
respectively, that resulted from lower LIFO inventory levels. There were net
cost decreases in each of the last three years. As of December 31, 2001, GE is
obligated to acquire certain raw materials at market prices through the year
2016 under various take-or-pay or similar arrangements. Annual minimum
commitments under these arrangements are insignificant.

<PAGE>
                                      F-36

ANNUAL REPORT PAGE 76

12   GECS FINANCING RECEIVABLES  (INVESTMENTS IN TIME SALES, LOANS AND FINANCING
     LEASES)


December 31 (In millions)                                  2001            2000
                                                      ---------       ---------
TIME SALES AND LOANS
Consumer services                                     $  45,741       $  43,954
Specialized financing                                    16,913          14,567
Mid-market financing                                     57,600          35,436
Equipment management                                      2,391           1,385
Other                                                        41             928
                                                      ---------       ---------
                                                        122,686          96,270
                                                      ---------       ---------
INVESTMENT IN FINANCING LEASES
Direct financing leases                                  49,412          46,186
Leveraged leases                                          6,735           4,877
                                                      ---------       ---------
                                                         56,147          51,063
                                                      ---------       ---------
                                                        178,833         147,333
Less allowance for losses (note 13)                      (4,801)         (4,034)
                                                      ---------       ---------
                                                      $ 174,032       $ 143,299
================================================================================

     Time sales and loans represents transactions in a variety of forms,
including time sales, revolving charge and credit, mortgages, installment loans,
intermediate-term loans and revolving loans secured by business assets. The
portfolio includes time sales and loans carried at the principal amount on which
finance charges are billed periodically, and time sales and loans carried at
gross book value, which includes finance charges. At year-end 2001 and 2000,
commercial real estate loans and leases of $25,466 million and $21,329 million,
respectively, were included in either financing receivables or GECS insurance
receivables. Note 17 contains information on airline loans and leases.

     Investment in financing leases consists of direct financing and leveraged
leases of aircraft, railroad rolling stock, autos, other transportation
equipment, data processing equipment and medical equipment, as well as other
manufacturing, power generation, commercial real estate, and commercial
equipment and facilities.

     As the sole owner of assets under direct financing leases and as the equity
participant in leveraged leases, GECS is taxed on total lease payments received
and is entitled to tax deductions based on the cost of leased assets and tax
deductions for interest paid to third-party participants. GECS is generally
entitled to any residual value of leased assets.

     Investment in direct financing and leveraged leases represents net unpaid
rentals and estimated unguaranteed residual values of leased equipment, less
related deferred income. GECS has no general obligation for principal and
interest on notes and other instruments representing third-party participation
related to leveraged leases; such notes and other instruments have not been
included in liabilities but have been offset against the related rentals
receivable. The GECS share of rentals receivable on leveraged leases is
subordinate to the share of other participants who also have security interests
in the leased equipment.


NET INVESTMENT IN FINANCING LEASES

<TABLE>
<CAPTION>
                                                    Total                 Direct
                                              financing leases      financing leases       Leveraged leases
                                            -------------------   -------------------   -------------------
December 31 (In millions)                       2001       2000       2001       2000       2001       2000
                                            --------   --------   --------   --------   --------   --------
<S>                                         <C>        <C>        <C>        <C>        <C>        <C>
Total minimum lease payments receivable     $ 83,316   $ 74,960   $ 53,870   $ 50,556   $ 29,446   $ 24,404
Less principal and interest on third-party
   nonrecourse debt                          (22,588)   (19,773)        --         --    (22,588)   (19,773)
                                            --------   --------   --------   --------   --------   --------
      Net rentals receivable                  60,728     55,187     53,870     50,556      6,858      4,631
Estimated unguaranteed residual value of
   leased assets                               8,996      7,314      5,544      4,602      3,452      2,712
Less deferred income                         (13,577)   (11,438)   (10,002)    (8,972)    (3,575)    (2,466)
                                            --------   --------   --------   --------   --------   --------
INVESTMENT IN FINANCING LEASES
   (AS SHOWN ABOVE)                           56,147     51,063     49,412     46,186      6,735      4,877
Less amounts to arrive at net investment
   Allowance for losses                         (679)      (646)      (606)      (558)       (73)       (88)
   Deferred taxes                             (9,168)    (8,408)    (4,643)    (4,496)    (4,525)    (3,912)
                                            --------   --------   --------   --------   --------   --------
NET INVESTMENT IN FINANCING LEASES          $ 46,300   $ 42,009   $ 44,163   $ 41,132   $  2,137   $    877
===========================================================================================================
</TABLE>

<PAGE>
                                      F-37
ANNUAL REPORT PAGE 77

CONTRACTUAL MATURITIES
                                            Total time sales         Net rentals
(In millions)                                   and loans (a)     receivable (a)
                                            -----------------     --------------
Due in
   2002                                              $ 39,162            $15,303
   2003                                                22,585             13,116
   2004                                                19,723              9,057
   2005                                                10,247              6,284
   2006                                                 7,729              3,520
   2007 and later                                      23,240             13,448
--------------------------------------------------------------------------------
Total                                                $122,686            $60,728
================================================================================
(a)  Experience has shown that a substantial portion of receivables will be paid
     prior to contractual maturity, and these amounts should not be regarded as
     forecasts of future cash flows.
--------------------------------------------------------------------------------

     Nonearning consumer receivables were $1,540 million and $1,139 million at
December 31, 2001 and 2000, respectively, a substantial amount of which were
private-label credit card loans. Nonearning and reduced-earning receivables
other than consumer receivables were $1,734 million and $949 million at year-end
2001 and 2000, respectively.

     "Impaired" loans are defined by generally accepted accounting principles as
large balance loans for which it is probable that the lender will be unable to
collect all amounts due according to original contractual terms of the loan
agreement. An analysis of impaired loans follows.


December 31 (In millions)                                      2001         2000
                                                             ------         ----
Loans requiring allowance for losses                         $1,041         $475
Loans expected to be fully recoverable                          574          384
                                                             ------         ----
                                                             $1,615(a)      $859
                                                             ======         ====
Allowance for losses                                         $  422         $166
Average investment during year                                1,121          801
Interest income earned while impaired (b)                        17           20
================================================================================
(a)  Includes $408 million of loans classified as impaired by Heller  Financial,
     Inc.,  which was acquired in October 2001.
(b)  Recognized principally on cash basis.
--------------------------------------------------------------------------------

13 GECS ALLOWANCE FOR LOSSES ON FINANCING RECEIVABLES

(In millions)                                    2001         2000         1999
                                              -------      -------      -------
Balance at January 1                          $ 4,034      $ 3,708      $ 3,223
Provisions charged to operations                2,481        2,045        1,671
Net transfers primarily related
   to acquisitions and sales                      564           22          271
Amounts written off-net                        (2,278)      (1,741)      (1,457)
                                              -------      -------      -------
Balance at December 31                        $ 4,801      $ 4,034      $ 3,708
================================================================================

14 GECS INSURANCE RECEIVABLES

At year-end 2001 and 2000, GECS insurance receivables included reinsurance
recoverables of $12,606 million and $8,240 million and receivables at insurance
affiliates of $14,711 million and $15,562 million, respectively. Receivables at
insurance affiliates include premium receivables, investments in whole real
estate and other loans, policy loans and funds on deposit with reinsurers.

<PAGE>
                                      F-38
ANNUAL REPORT PAGE 78

15 PROPERTY, PLANT AND EQUIPMENT (INCLUDING EQUIPMENT LEASED TO OTHERS)


December 31 (In millions)                                     2001          2000
                                                           -------       -------
ORIGINAL COST
   GE
   Land and improvements                                   $   577       $   544
   Buildings, structures and related
      equipment                                              7,281         6,982
   Machinery and equipment                                  21,414        20,792
   Leasehold costs and manufacturing
      plant under construction                               1,960         1,871
                                                           -------       -------
                                                            31,232        30,189
                                                           -------       -------
   GECS
   Buildings and equipment                                   3,600         5,753
   Equipment leased to others
      Aircraft                                              16,173        12,888
      Vehicles                                              10,779         9,872
      Railroad rolling stock                                 3,439         3,459
      Marine shipping containers                             1,618         2,196
      Mobile and modular structures                          1,325         1,288
      Information technology equipment                       1,321         1,069
      Construction and manufacturing
         equipment                                             799           591
      Scientific, medical and other
         equipment                                           1,001           685
                                                           -------       -------
                                                            40,055        37,801
                                                           -------       -------
                                                           $71,287       $67,990
                                                           =======       =======
ACCUMULATED DEPRECIATION
   AND AMORTIZATION
      GE                                                   $18,433       $17,990
      GECS
         Buildings and equipment                             1,579         2,084
         Equipment leased to others                          9,135         7,901
                                                           -------       -------
                                                           $29,147       $27,975
================================================================================

     Amortization of GECS equipment leased to others was $2,958 million, $2,620
million and $2,673 million in 2001, 2000 and 1999, respectively. Noncancelable
future rentals due from customers for equipment on operating leases at year-end
2001 totaled $16,072 million and are due as follows: $3,954 million in 2002;
$3,183 million in 2003; $2,396 million in 2004; $1,749 million in 2005; $1,245
million in 2006; and $3,545 million thereafter.


16 INTANGIBLE ASSETS

December 31 (In millions)                                     2001          2000
                                                           -------       -------
GE
Goodwill                                                   $12,354       $11,962
Other intangibles                                              578           462
                                                           -------       -------
                                                            12,932        12,424
                                                           -------       -------
GECS
Goodwill                                                    15,933        11,550
Present value of future profits (PVFP)                       2,198         2,780
Other intangibles                                              586           687
                                                           -------       -------
                                                            18,717        15,017
                                                           -------       -------
                                                           $31,649       $27,441
================================================================================
GE intangible assets are net of accumulated amortization of $3,854 million in
2001 and $3,413 million in 2000. GECS intangible assets are net of accumulated
amortization of $6,954 million in 2001 and $5,815 million in 2000.
--------------------------------------------------------------------------------

     The amount of goodwill amortization included in net earnings (net of income
taxes) in 2001, 2000 and 1999 was $499 million, $439 million and $395 million
for GE and $552 million, $620 million and $512 million for GECS, respectively.

     PVFP amortization, which is on an accelerated basis and net of interest, is
projected to range from 13% to 6% of the year-end 2001 unamortized balance for
each of the next five years.


<PAGE>
                                      F-39

ANNUAL REPORT PAGE 79

17 ALL OTHER ASSETS

December 31 (In millions)                                   2001           2000
                                                        --------       --------
GE
Investments
   Associated companies (a)                             $  2,539       $  2,670
   Other                                                   1,336          1,888
                                                        --------       --------
                                                           3,875          4,558
Prepaid pension asset                                     13,740         11,377
Contract costs and estimated earnings                      2,292          1,736
Prepaid broadcasting rights                                1,108            967
Long-term receivables, including notes                       909          1,987
Derivative instruments (b)                                   254             83
Other                                                      3,808          3,320
                                                        --------       --------
                                                          25,986         24,028
                                                        --------       --------
GECS
Investments
   Associated companies (a)                               14,415         12,785
   Real estate                                             8,141          6,496
   Assets acquired for resale                              1,725          1,394
   Other                                                   5,222          5,207
                                                        --------       --------
                                                          29,503         25,882
Separate accounts                                         10,403         11,705
Deferred insurance acquisition costs                       6,768          5,815
Derivative instruments (b)                                 2,066            314
Servicing assets (c)                                       1,139          1,449
Other                                                      5,209          5,201
                                                        --------       --------
                                                          55,088         50,366
                                                        --------       --------
ELIMINATIONS                                                (548)          (507)
                                                        --------       --------
                                                        $ 80,526       $ 73,887
================================================================================
(a)  Includes  advances  to  associated   companies  which  are  non-controlled,
     non-consolidated equity investments.

(b)  Amounts at December 31, 2001, are stated at fair value in accordance with
     SFAS 133; corresponding amounts at December 31, 2000, are stated at
     amortized cost. See note 29 for a discussion of the types and uses of
     derivative instruments.

(c)  Associated primarily with serviced residential mortgage loans amounting to
     $59 billion and $81 billion at December 31, 2001 and 2000, respectively.
--------------------------------------------------------------------------------

     In line with industry practice, sales of commercial jet aircraft engines
often involve long-term customer financing commitments. In making such
commitments, it is GE's general practice to require that it have or be able to
establish a secured position in the aircraft being financed. Under such airline
financing programs, GE had issued guarantees amounting to $1,181 million at
year-end 2001 and $1,160 million at year-end 2000; and it had entered into
commitments totaling $1,497 million and $1,476 million at year-end 2001 and
2000, respectively, to provide financial assistance on future aircraft engine
sales. Net of reserves, the estimated fair values of the aircraft securing these
guarantees exceeded the related guaranteed amounts at December 31, 2001. GECS
acts as a lender and lessor to the commercial airline industry. At December 31,
2001 and 2000, the balance of such GECS loans and leases was $21.5 billion and
$15.3 billion, respectively. In addition, at December 31, 2001, GECS had issued
financial guarantees and funding commitments of $0.9 billion ($0.6 billion at
year-end 2000), credit and liquidity support agreements to special purpose
entities sponsored by GECS of $0.9 billion ($0.6 billion at year-end 2000) and
had placed multi-year orders for various Boeing, Airbus and other aircraft with
list prices of approximately $19.9 billion ($22.9 billion at year-end 2000).

     At year-end 2001, the National Broadcasting Company had $6,646 million of
commitments to acquire broadcast material and the rights to broadcast television
programs, including U.S. television rights to future Olympic Games, and
commitments under long-term television station affiliation agreements that
require payments through the year 2010.
     In connection with numerous projects, primarily power generation bids and
contracts, GE had issued various bid and performance bonds and guarantees
totaling $3,704 million at year-end 2001 and $4,599 million at year-end 2000.

     Separate accounts represent investments controlled by policyholders and are
associated with identical amounts reported as insurance liabilities in note 19.

<PAGE>
                                      F-40

ANNUAL REPORT PAGE 80

18 BORROWINGS

SHORT-TERM BORROWINGS
                                         2001                      2000
                               ----------------------     ----------------------
December 31                                   Average                    Average
(In millions)                     Amount     rate (a)       Amount      rate (a)
--------------------------------------------------------------------------------
GE
Commercial paper
   Non-U.S                     $     266         3.87%    $    172         5.77%
Payable to banks,
   principally non-U.S             1,160         5.58          527        11.30
Current portion of
   long-term debt                     80         6.46           71         7.90
Other                                216                       170
                                --------                  --------
                                   1,722                       940
                                --------                  --------
GECS
Commercial paper
   U.S                           100,170         2.21       77,525         6.67
   Non-U.S                        17,289         3.36       16,965         5.46
Current portion of
   long-term debt                 30,952         5.08       19,283         5.95
Other                             12,590                    10,219
                                --------                  --------
                                 161,001                   123,992
                                --------                  --------
Foreign currency
   loss (b)                         (157)                     --
                                --------                  --------
                                 160,844                   123,992
                                --------                  --------
ELIMINATIONS                      (9,490)                   (5,752)
                                --------                  --------
                                $153,076                  $119,180
================================================================================

LONG-TERM BORROWINGS
                                      2001
December 31                      Average
(In millions)                   rate (a)   Maturities         2001         2000
                                --------   ----------         ----         ----
GE
Industrial development/
   pollution control bonds          2.53%   2003-2027     $    336      $   334
Payable to banks,
   principally non-U.S.             5.36    2003-2007          241          255
Other (c)                                                      210          252
                                                          --------      -------
                                                               787          841
                                                          --------      -------
GECS
Senior notes                        4.89    2003-2055       78,347       80,383
Subordinated notes (d)              7.74    2006-2035        1,171          996
                                                          --------      -------
                                                            79,518       81,379
                                                          --------      -------
Foreign currency loss (b)                                     (427)        --
                                                          --------      -------
                                                            79,091       81,379
                                                          --------      -------
ELIMINATIONS                                                   (72)         (88)
                                                          --------      -------
                                                          $ 79,806      $82,132
================================================================================
(a)  Based on year-end balances and year-end local currency interest rates,
     including the effects of interest rate and currency swaps, if any, directly
     associated with the original debt issuance.

(b)  Total GECS borrowings in 2001 exclude the foreign exchange effects of
     related currency swaps in accordance with the provisions of SFAS 133.

(c)  A variety of obligations having various interest rates and maturities,
     including certain borrowings by parent operating components and affiliates.

(d)  At year-end 2001 and 2000, $996 million of subordinated notes were
     guaranteed by GE.
--------------------------------------------------------------------------------

     Borrowings of GE and GECS are addressed below from two
perspectives-liquidity and interest rate risk management. Additional information
about borrowings and associated swaps can be found in note 29.

LIQUIDITY requirements of GE and GECS are principally met through the credit
markets. Maturities of long-term borrowings (including the current portion)
during the next five years follow.

(In millions)                 2002        2003        2004       2005       2006
--------------------------------------------------------------------------------
GE                         $    80     $    97     $   203     $   13     $  101
GECS                        30,795      25,713      14,630      9,907      6,469
================================================================================

     Committed credit lines of $4.7 billion had been extended to GE by 22 banks
at year-end 2001. All of GE's credit lines are available to GECS and its
affiliates in addition to their own credit lines.

     At year-end 2001, GECS held committed lines of credit aggregating $28.6
billion, including $12.2 billion of revolving credit agreements pursuant to
which it has the right to borrow funds for periods exceeding one year. Both GE
and GECS compensate banks for credit facilities in the form of fees, which were
insignificant in each of the past three years.

INTEREST RATE RISK is managed by GECS in light of the anticipated behavior,
including prepayment behavior, of assets in which debt proceeds are invested. A
variety of instruments, including interest rate and currency swaps and currency
forwards, are employed to achieve management's interest rate objectives.
Effective interest rates are lower under these "synthetic" positions than could
have been achieved by issuing debt directly.

     The following table shows GECS borrowing positions considering the effects
of currency and interest rate swaps.

GECS EFFECTIVE BORROWINGS (INCLUDING SWAPS)
                                                    2001                    2000
                                          ----------------------        --------
December 31                                              Average
(In millions)                               Amount          rate          Amount
                                          --------       -------        --------
Short-term (a)                            $101,101          2.56%       $ 80,162
                                          ========                      ========
Long-term (including current
   portion)
      Fixed rate (b)                      $105,387          5.59%       $ 98,905
      Floating rate                         34,031          3.23          26,304
                                          --------                      --------
Total long-term                           $139,418                      $125,209
================================================================================
(a)  Includes commercial paper and other short-term debt.

(b)  Includes fixed-rate borrowings and $28.9 billion ($24.5 billion in 2000)
     notional long-term interest rate swaps that effectively convert the
     floating-rate nature of short-term borrowings to fixed rates of interest.
--------------------------------------------------------------------------------

     At December 31, 2001, swap maturities ranged from 2002 to 2048.

<PAGE>
                                      F-41
ANNUAL REPORT PAGE 81

19  GECS INSURANCE LIABILITIES, RESERVES AND ANNUITY BENEFITS

December 31 (In millions)                                    2001           2000
                                                         --------       --------
Investment contracts and universal
   life benefits                                         $ 39,052       $ 33,232
Life insurance benefits (a)                                31,198         32,288
Unpaid claims and claims adjustment
   expenses (b)                                            27,233         22,886
Unearned premiums                                           6,337          6,039
Separate accounts (see note 17)                            10,403         11,705
                                                         --------       --------
                                                         $114,223       $106,150
================================================================================
(a)  Life insurance benefits are accounted for mainly by a net-level-premium
     method using estimated yields generally ranging from 2% to 9% in both 2001
     and 2000.

(b)  Principally property and casualty reserves; includes amounts for both
     reported and incurred-but-not-reported claims, reduced by anticipated
     salvage and subrogation recoveries. Estimates of liabilities are reviewed
     and updated continually, with changes in estimated losses reflected in
     operations.
--------------------------------------------------------------------------------

     When GECS cedes insurance to third parties, it is not relieved of its
primary obligation to policyholders. Losses on ceded risks give rise to claims
for recovery; allowances for probable losses are established on such receivables
from reinsurers as required.

     The insurance liability for unpaid claims and claims adjustment expenses
related to policies that may cover environmental and asbestos exposures is based
on known facts and an assessment of applicable law and coverage litigation.
Liabilities are recognized for both known and unasserted claims (including the
cost of related litigation) when sufficient information has been developed to
indicate that a claim has been incurred and a range of potential losses can be
reasonably estimated. Developed case law and adequate claim history do not exist
for certain claims principally due to significant uncertainties as to both the
level of ultimate losses that will occur and what portion, if any, will be
deemed to be insured amounts.

     A summary of activity affecting unpaid claims and claims adjustment
expenses, principally in property and casualty lines follows.


(In millions)                                  2001          2000          1999
                                           --------      --------      --------
Balance at January 1-gross                 $ 22,886      $ 21,473      $ 19,611
Less reinsurance recoverables                (5,477)       (4,832)       (3,483)
                                           --------      --------      --------
Balance at January 1-net                     17,409        16,641        16,128
Claims and expenses incurred
   Current year                               9,199         9,718         6,917
   Prior years                                  682           607           248
Claims and expenses paid
   Current year                              (3,021)       (3,704)       (2,508)
    Prior years                              (6,694)       (6,572)       (5,162)
Claims reserves related to
   acquired companies                            --           488           929
Other                                           258           231            89
                                           --------      --------      --------
Balance at December 31-net                   17,833        17,409        16,641
Add reinsurance recoverables                  9,400         5,477         4,832
                                           --------      --------      --------
Balance at December 31-gross               $ 27,233      $ 22,886      $ 21,473
================================================================================

     Prior-year claims and expenses incurred in the preceding table resulted
principally from settling claims established in earlier accident years for
amounts that differed from expectations.

     Financial guarantees and credit life risk of insurance affiliates are
summarized below.

December 31 (In millions)                                  2001            2000
                                                      ---------       ---------
Guarantees, principally on municipal
   bonds and asset-backed securities                  $ 215,874       $ 194,061
Mortgage insurance risk in force                         79,892          68,112
Credit life insurance risk in force                      16,590          19,910
Less reinsurance                                        (41,148)        (42,143)
                                                      ---------       ---------
                                                      $ 271,208       $ 239,940
================================================================================

     Certain GECS insurance affiliates offer insurance guaranteeing the timely
payment of scheduled principal and interest on municipal bonds and certain
asset-backed securities. These insurance affiliates also provide insurance to
protect residential mortgage lenders from severe financial loss caused by the
non-payment of loans and issue credit life insurance designed to pay the balance
due on a loan if the borrower dies before the loan is repaid. As part of their
overall risk management process, GECS insurance affiliates cede to third parties
a portion of their risk associated with these guarantees. In doing so, they are
not relieved of their primary obligation to policyholders.

<PAGE>
                                      F-42
ANNUAL REPORT PAGE 82

20 GE ALL OTHER LIABILITIES

This caption includes noncurrent compensation and benefit accruals at year-end
2001 and 2000 of $6,639 million and $6,268 million, respectively. Also included
are amounts for deferred incentive compensation, deferred income, interest on
tax liabilities, product warranties and a variety of sundry items.

     GE is involved in numerous remediation actions to clean up hazardous wastes
as required by federal and state laws. Liabilities for remediation costs at each
site are based on management's best estimate of undiscounted future costs,
excluding possible insurance recoveries. When there appears to be a range of
possible costs with equal likelihood, liabilities are based on the lower end of
such range. Uncertainties about the status of laws, regulations, technology and
information related to individual sites make it difficult to develop a
meaningful estimate of the reasonably possible aggregate environmental
remediation exposure. However, even in the unlikely event that remediation costs
amounted to the high end of the range of costs for each site, the resulting
additional liability would not be material to GE's financial position, results
of operations or liquidity.

21 DEFERRED INCOME TAXES

Aggregate deferred income tax amounts are summarized below.

December 31 (In millions)                                    2001           2000
                                                          -------        -------
ASSETS
GE                                                        $ 6,416        $ 6,131
GECS                                                        8,585          7,309
                                                          -------        -------
                                                           15,001         13,440
LIABILITIES
GE                                                          7,429          6,583
GECS                                                       16,702         15,547
                                                          -------        -------
                                                           24,131         22,130
                                                          -------        -------
NET DEFERRED INCOME TAX LIABILITY                         $ 9,130        $ 8,690
================================================================================

     Principal components of the net liability/(asset) representing deferred
income tax balances for GE and GECS are as follows:

December 31 (In millions)                                   2001           2000
                                                         -------        -------
GE
Provisions for expenses (a)                              $(4,432)       $(4,392)
Retiree insurance plans                                     (953)          (904)
Prepaid pension asset                                      4,809          3,982
Depreciation                                                 932            944
Other-net                                                    657            822
                                                         -------        -------
                                                           1,013            452
                                                         -------        -------
GECS
Financing leases                                           9,168          8,408
Operating leases                                           3,399          3,301
Deferred insurance acquisition costs                       1,360            856
Allowance for losses                                      (2,139)        (1,684)
Insurance reserves                                        (1,397)        (1,270)
AMT credit carryforwards                                    (695)          (671)
Other-net                                                 (1,579)          (702)
                                                         -------        -------
                                                           8,117          8,238
                                                         -------        -------
NET DEFERRED INCOME TAX LIABILITY                        $ 9,130        $ 8,690
================================================================================
(a)  Represents the tax effects of temporary differences related to expense
     accruals for a wide variety of items, such as employee compensation and
     benefits, interest on tax liabilities, product warranties and other sundry
     items that are not currently deductible.
--------------------------------------------------------------------------------

22 GECS MINORITY INTEREST IN EQUITY OF CONSOLIDATED AFFILIATES


Minority interest in equity of consolidated GECS affiliates includes preferred
stock issued by GE Capital and by affiliates of GE Capital. The preferred stock
primarily pays cumulative dividends at variable rates. Value of the preferred
shares is summarized below.

December 31 (In millions)                                   2001            2000
                                                          ------          ------
GE Capital                                                $2,600          $2,600
GE Capital affiliates                                      1,446           1,066
================================================================================

     Dividend rates in local currency on the preferred stock ranged from 1.62%
to 6.40% during 2001 and from 4.15% to 6.82% during 2000.

23 RESTRICTED NET ASSETS OF GECS AFFILIATES

Certain GECS consolidated affiliates are restricted from remitting funds to GECS
in the form of dividends or loans by a variety of regulations, the purpose of
which is to protect affected insurance policyholders, depositors or investors.
At year-end 2001, net assets of regulated GECS affiliates amounted to $37.4
billion, of which $31.7 billion was restricted.

     At December 31, 2001 and 2000, the aggregate statutory capital and surplus
of the insurance businesses totaled $17.7 billion and $16.2 billion,
respectively. Accounting practices prescribed by statutory authorities are used
in preparing statutory statements.

<PAGE>
                                      F-43

ANNUAL REPORT PAGE 83

24 SHARE OWNERS' EQUITY

(In millions)                                    2001         2000         1999
                                             --------     --------     --------
COMMON STOCK ISSUED                          $    669     $    669     $    594
                                             --------     --------     --------
ACCUMULATED NONOWNER
CHANGES OTHER THAN EARNINGS
Balance at January 1                         $ (2,500)    $   (744)    $  1,664
Cumulative effect of adopting
   SFAS 133-net of deferred
   taxes of $(513)                               (827)          --           --
Investment securities-net
   of deferred taxes of $111,
   $686 and $(614)                                203        1,363       (1,132)
Currency translation
   adjustments-net of deferred
   taxes of $48, $(312) and $(100)               (562)      (1,204)        (632)
Derivatives qualifying as
   hedges-net of deferred
   taxes $(505)                                  (690)          --           --
Reclassification adjustments-
   Investment securities-net
      of deferred taxes of $(274),
      $(1,031) and $(349)                        (509)      (1,915)        (644)
   Derivatives qualifying as
      hedges-net of deferred
      taxes of $397                               562           --           --
                                             --------     --------     --------
Balance at December 31                       $ (4,323)    $ (2,500)    $   (744)
                                             ========     ========     ========
OTHER CAPITAL
Balance at January 1                         $ 15,195     $ 10,790     $  6,808
Gains on treasury stock
   dispositions (a)                             1,498        4,480        3,982
Adjustment for stock split                         --          (75)          --
                                             --------     --------     --------
Balance at December 31                       $ 16,693     $ 15,195     $ 10,790
                                             ========     ========     ========
RETAINED EARNINGS
Balance at January 1                         $ 61,572     $ 54,484     $ 48,553
Net earnings                                   13,684       12,735       10,717
Dividends (a)                                  (6,555)      (5,647)      (4,786)
                                             --------     --------     --------
Balance at December 31                       $ 68,701     $ 61,572     $ 54,484
                                             ========     ========     ========
COMMON STOCK HELD IN TREASURY
Balance at January 1                         $ 24,444     $ 22,567     $ 18,739
Purchases (a)                                   4,708        5,342        7,488
Dispositions (a)                               (2,236)      (3,465)      (3,660)
                                             --------     --------     --------
Balance at December 31                       $ 26,916     $ 24,444     $ 22,567
================================================================================
(a)  Total dividends and other transactions with share owners reduced equity by
     $7,529 million, $3,044 million and $4,632 million in 2001, 2000 and 1999,
     respectively.
--------------------------------------------------------------------------------

     In December 2001, GE's Board of Directors increased the authorization to
repurchase Company common stock to $30 billion. Funds used for the share
repurchase will be generated largely from free cash flow. Through year-end 2001,
1,030 million shares having an aggregate cost of almost $21 billion had been
repurchased under this program and placed in treasury.

     Common shares issued and outstanding are summarized in the following table.

SHARES OF GE COMMON STOCK
December 31 (In thousands)                 2001            2000            1999
                                    -----------     -----------     -----------
Issued                               11,145,212      11,145,212      11,145,054
In treasury                          (1,219,274)     (1,213,206)     (1,290,526)
                                    -----------     -----------     -----------
Outstanding                           9,925,938       9,932,006       9,854,528
================================================================================

     In April 2000, share owners authorized (a) an increase in the number of
authorized shares of common stock from 4,400,000,000 shares each with a par
value of $0.16 to 13,200,000,000 shares each with a par value of $0.06 and (b)
the split of each unissued and issued common share, including shares held in
treasury, into three shares of common stock each with a par value of $0.06. All
share data and per-share amounts have been adjusted to reflect this change.

     GE has 50 million authorized shares of preferred stock ($1.00 par value),
but no such shares have been issued.

     The effects of translating to U.S. dollars the financial statements of
non-U.S. affiliates whose functional currency is the local currency are included
in share owners' equity. Asset and liability accounts are translated at year-end
exchange rates, while revenues and expenses are translated at average rates for
the period.

<PAGE>
                                      F-44

ANNUAL REPORT PAGE 84

25 OTHER STOCK-RELATED INFORMATION

STOCK OPTION ACTIVITY
                                                             Average per share
                                              Shares       ---------------------
                                             subject        Exercise      Market
(Shares in thousands)                      to option           price       price
                                           ---------        --------      ------
Balance at December 31, 1998                 359,784       $   11.59   $   34.00
   Options granted                            51,281           37.93       37.93
   Options exercised                         (61,679)           7.82       39.42
   Options terminated                         (8,012)          21.15       --
                                            --------          ------      ------
Balance at December 31, 1999                 341,374           16.01       51.58
   Options granted                            46,278           47.84       47.84
   Options exercised                         (44,758)           8.82       53.00
   Options terminated                         (9,715)          28.47       --
                                            --------          ------      ------
Balance at December 31, 2000                 333,179           21.03       47.94
  Options granted                             60,946           41.15       41.15
  Options exercised                          (31,801)          10.04       43.95
  Options terminated                          (7,871)          39.02       --
                                            --------          ------      ------
Balance at December 31, 2001                 354,453           25.08       40.08
================================================================================

     Stock option plans, stock appreciation rights (SARs), restricted stock and
restricted stock units are described in GE's current Proxy Statement. With
certain restrictions, requirements for stock option shares can be met from
either unissued or treasury shares.

     At year-end 2001, there were 131 thousand SARs outstanding at an average
exercise price of $7.68. There were 27.3 million restricted stock shares and
restricted stock units outstanding at year-end 2001.

     There were 538.7 million and 487.1 million additional shares available for
grants of options, SARs, restricted stock and restricted stock units at December
31, 2001 and 2000, respectively. Under the 1990 Long-Term Incentive Plan, 0.95%
of the Company's issued common stock (including treasury shares) as of the first
day of each calendar year during which the Plan is in effect becomes available
for granting awards in such year. Any unused portion, in addition to shares
allocated to awards that are canceled or forfeited, is available for later
years.

     Outstanding options and SARs expire on various dates through December 21,
2011. Restricted stock grants vest on various dates up to normal retirement of
grantees.

     The following table summarizes information about stock options outstanding
at December 31, 2001.

STOCK OPTIONS OUTSTANDING
(Shares in thousands)
                                   Outstanding                  Exercisable
                        -------------------------------   ----------------------
                                                Average                  Average
Exercise                           Average     exercise                 exercise
price range              Shares   life (a)        price    Shares          price
--------------------------------------------------------------------------------
$5.72-8.50               58,324        1.6    $    7.63    58,324      $    7.63
 8.51-13.23              65,494        2.9         9.15    65,494           9.15
 13.48-26.10             66,065        5.2        18.13    53,465          16.94
 26.42-39.73             81,807        7.9        34.79    24,881          32.20
 41.35-57.31             82,763        9.0        45.91     6,908          47.45
                        -------        ---       ------   -------         ------
Total                   354,453        5.7        25.08   209,072          14.73
================================================================================
At year-end 2000, options with an average exercise price of $11.35 were
exercisable on 205 million shares; at year-end 1999, options with an average
exercise price of $9.13 were exercisable on 206 million shares. (a) Average
contractual life remaining in years.
--------------------------------------------------------------------------------

     Stock options expire 10 years from the date they are granted; options vest
over service periods that range from one to five years.

     Disclosures required by SFAS 123, ACCOUNTING FOR STOCK-BASED COMPENSATION,
are as follows:


OPTION VALUE INFORMATION (a)
(In dollars)                                       2001        2000        1999
                                                 ------      ------      ------
Fair value per option (b)                        $12.15      $15.76      $11.23
Valuation assumptions
   Expected option term (years)                     6.0         6.4         6.5
   Expected volatility                             30.5%       27.1%       23.7%
   Expected dividend yield                          1.6%        1.2%        1.3%
   Risk-free interest rate                          4.9%        6.4%        5.8%
================================================================================
(a)  Weighted averages of option grants during each period.
(b)  Estimated using Black-Scholes option pricing model.
--------------------------------------------------------------------------------

PRO FORMA EFFECTS (a)
December 31 (In millions;
per-share amounts in dollars)                   2001          2000          1999
                                             -------       -------       -------
Net earnings                                 $13,388       $12,502       $10,572
Earnings per share-diluted                      1.33          1.24          1.06
                  -basic                        1.35          1.26          1.08

================================================================================
(a)  2001 earnings and earnings per share include effects of accounting changes.
--------------------------------------------------------------------------------


<PAGE>
                                      F-45

ANNUAL REPORT PAGE 85

26 SUPPLEMENTAL CASH FLOWS INFORMATION

Changes in operating assets and liabilities are net of acquisitions and
dispositions of principal businesses.

     "Payments for principal businesses purchased" in the Statement of Cash
Flows is net of cash acquired and includes debt assumed and immediately repaid
in acquisitions.

     "All other operating activities" in the Statement of Cash Flows consists
primarily of adjustments to current and noncurrent accruals and deferrals of
costs and expenses, increases and decreases in progress collections, adjustments
for gains and losses on assets, increases and decreases in assets held for sale,
and adjustments to assets.

     Noncash transactions include the following: in 2001, the acquisition of
Imatron Inc. for GE common stock valued at $205 million; in 2000, the
acquisition of Harmon Industries for shares of GE common stock valued at $346
million; and in 1999, GE's contribution of certain media properties in exchange
for a noncontrolling interest in NBCi, a former publicly-traded company
(described in note 2).

     Certain supplemental information related to GE and GECS cash flows is shown
below.

<TABLE>
<CAPTION>

For the years ended December 31 (In millions)                 2001        2000       1999
                                                         ---------   ---------   --------
<S>                                                      <C>         <C>         <C>
GE
   PURCHASES AND SALES OF GE SHARES FOR TREASURY
   Open market purchases under share repurchase program  $  (3,137)  $  (2,226)  $ (1,866)
   Other purchases                                          (1,571)     (3,116)    (5,622)
   Dispositions (mainly to employee and dividend
      reinvestment plans)                                    2,273       5,811      6,486
                                                         ---------   ---------   --------
                                                         $  (2,435)  $     469   $ (1,002)
                                                         =========   =========   ========
GECS
   FINANCING RECEIVABLES
   Increase in loans to customers                        $(140,758)  $(100,938)  $(95,201)
   Principal collections from customers-loans              121,004      87,432     86,379
   Investment in equipment for financing leases            (20,315)    (15,454)   (18,173)
   Principal collections from customers-financing
      leases                                                11,641       7,873     13,634
   Net change in credit card receivables                   (14,815)     (9,394)   (10,740)
   Sales of financing receivables                           29,291      14,405     11,473
                                                         ---------   ---------   --------
                                                         $ (13,952)  $ (16,076)  $(12,628)
                                                         =========   =========   ========
   ALL OTHER INVESTING ACTIVITIES
   Purchases of securities by insurance and annuity
      businesses                                         $ (53,452)  $ (35,911)  $(26,271)
   Dispositions and maturities of securities by
      insurance and annuity businesses                      45,403      25,960     23,979
   Proceeds from principal business dispositions             2,572        (605)       279
   Other                                                    (2,080)     (1,617)    (6,270)
                                                         ---------   ---------   --------
                                                         $  (7,557)  $ (12,173)  $ (8,283)
                                                         =========   =========   ========
   NEWLY ISSUED DEBT HAVING MATURITIES LONGER THAN 90
      DAYS
   Short-term (91 to 365 days)                           $  12,622   $  12,782   $ 15,799
   Long-term (longer than one year)                         16,118      32,297     30,082
   Proceeds-nonrecourse, leveraged lease debt                2,012       1,808      1,724
                                                         ---------   ---------   --------
                                                         $  30,752   $  46,887   $ 47,605
                                                         =========   =========   ========
   REPAYMENTS AND OTHER REDUCTIONS OF DEBT HAVING
      MATURITIES LONGER THAN 90 DAYS
   Short-term (91 to 365 days)                           $ (29,195)  $ (27,777)  $(21,211)
   Long-term (longer than one year)                         (6,582)     (3,953)    (5,447)
   Principal payments-nonrecourse, leveraged lease debt       (274)       (177)      (266)
                                                         ---------   ---------   --------
                                                         $ (36,051)  $ (31,907)  $(26,924)
                                                         =========   =========   ========
   ALL OTHER FINANCING ACTIVITIES
   Proceeds from sales of investment contracts           $   9,080   $   8,826   $  7,236
   Redemption of investment contracts                       (7,033)     (9,061)    (7,127)
   Preferred stock issued by GECS affiliates                    --          --        513
   Capital contributions from GE                             3,043          --         --
   Cash received upon assumption of Toho Mutual Life
      Insurance Company insurance liabilities                   --      13,177         --
                                                         ---------   ---------   --------
                                                         $   5,090   $  12,942   $    622
=========================================================================================
</TABLE>

<PAGE>
                                      F-46
ANNUAL REPORT PAGE 86

27 OPERATING SEGMENTS

<TABLE>
<CAPTION>

                                 REVENUES (For the years ended December 31)
                                           Total revenues               Intersegment revenues               External revenues
                                ---------------------------------   ---------------------------   ---------------------------------
(In millions)                        2001        2000        1999      2001      2000      1999        2001        2000        1999
                                ---------   ---------   ---------   -------   -------   -------   ---------   ---------   ---------
<S>                             <C>         <C>         <C>         <C>       <C>       <C>       <C>         <C>         <C>
GE
   Aircraft Engines             $  11,389   $  10,779   $  10,730   $ 1,282   $   687   $   477   $  10,107   $  10,092   $  10,253
   Appliances                       5,810       5,887       5,671         4         5         4       5,806       5,882       5,667
   Industrial Products
      and Systems                  11,647      11,630      11,399       848       634       530      10,799      10,996      10,869
   Materials                        7,069       8,020       7,118        21        46        38       7,048       7,974       7,080
   NBC                              5,769       6,797       5,790        --        --        --       5,769       6,797       5,790
   Power Systems                   20,211      14,861      10,099       152       144       169      20,059      14,717       9,930
   Technical Products
      and Services                  9,011       7,915       6,863        21        19        15       8,990       7,896       6,848
   Eliminations                    (2,900)     (2,101)     (1,788)   (2,328)   (1,535)   (1,233)       (572)       (566)       (555)
                                ---------   ---------   ---------   -------   -------   -------   ---------   ---------   ---------
      Total GE segment revenues    68,006      63,788      55,882        --        --        --      68,006      63,788      55,882
   Corporate items                    445         517         619        --        --        --         445         517         619
   GECS earnings before
      accounting changes            5,586       5,192       4,443        --        --        --       5,586       5,192       4,443
                                ---------   ---------   ---------   -------   -------   -------   ---------   ---------   ---------
      Total GE revenues            74,037      69,497      60,944        --        --        --      74,037      69,497      60,944
GECS SEGMENT REVENUES              58,353      66,177      55,749        --        --        --      58,353      66,177      55,749
Eliminations                       (6,477)     (5,821)     (5,063)       --        --        --      (6,477)     (5,821)     (5,063)
                                ---------   ---------   ---------   -------   -------   -------   ---------   ---------   ---------
CONSOLIDATED REVENUES           $ 125,913   $ 129,853   $ 111,630   $    --   $    --   $    --   $ 125,913   $ 129,853   $ 111,630
===================================================================================================================================
GE revenues include income from sales of goods and services to customers and
other income. Sales from one Company component to another generally are priced
at equivalent commercial selling prices.
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>


<TABLE>
<CAPTION>

                                                               PROPERTY, PLANT AND EQUIPMENT  DEPRECIATION AND AMORTIZATION
                                                               ADDITIONS (INCLUDING           (INCLUDING GOODWILL AND
                         ASSETS                                EQUIPMENT LEASED TO OTHERS)    OTHER INTANGIBLES)
                                                                  For the years ended          For the years ended
                                    At December 31                     December 31                 December 31
                         ---------------------------------     -------------------------      ----------------------
(In millions)                 2001        2000        1999        2001     2000     1999        2001    2000    1999
                         ---------   ---------   ---------     -------  -------  -------      ------  ------  ------
<S>                      <C>         <C>         <C>           <C>      <C>      <C>          <C>     <C>     <C>
GE
   Aircraft Engines      $   9,711   $   9,816   $   9,204     $   402  $   416  $   368      $  340  $  330  $  382
   Appliances                3,100       2,775       2,463         246      213      151         188     142     147
   Industrial Products
      and Systems            8,372       7,647       6,524         382      495      408         425     416     416
   Materials                10,154       9,783       9,477         814      573      477         611     558     578
   NBC                       5,359       4,965       5,243          64       99       94         137     120     126
   Power Systems            13,169      11,618       9,865         774      657      514         375     306     285
   Technical Products
      and Services           6,654       6,016       5,048         213      211      164         278     219     230
                         ---------   ---------   ---------     -------  -------  -------      ------  ------  ------
      Total GE segments     56,519      52,620      47,824       2,895    2,664    2,176       2,354   2,091   2,164
   Investment in GECS       28,590      23,022      20,321          --       --       --          --      --      --
   Corporate items and
      eliminations (a)      24,624      21,123      14,438          94       55       58         145     157     155
                         ---------   ---------   ---------     -------  -------  -------      ------  ------  ------
      Total GE             109,733      96,765      82,583       2,989    2,719    2,234       2,499   2,248   2,319
GECS SEGMENT               425,484     370,636     345,018      13,744   11,434   15,432       4,590   5,488   4,372
Eliminations               (40,194)    (30,395)    (22,401)         --       --       --          --
                         ---------   ---------   ---------     -------  -------  -------      ------  ------  ------
CONSOLIDATED TOTALS      $ 495,023   $ 437,006   $ 405,200     $16,733  $14,153  $17,666      $7,089  $7,736  $6,691
====================================================================================================================
Additions to property, plant and equipment include amounts relating to principal
businesses purchased.

(a) Depreciation and amortization includes $64 million of unallocated RCA
    goodwill amortization in 2001, 2000 and 1999 that relates to NBC.
--------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>
                                      F-47
ANNUAL REPORT PAGE 87

BASIS FOR PRESENTATION. The Company's operating businesses are organized based
on the nature of products and services provided. Certain GE businesses do not
meet the definition of a reportable operating segment and have been aggregated.
The Materials segment consists of Plastics and Specialty Materials. The
Industrial Products and Systems segment consists of Industrial Systems,
Lighting, Transportation Systems and GE Supply. The Technical Products and
Services segment consists of Medical Systems and Global eXchange Services.
Segment accounting policies are the same as described in note 1.

     Details of segment profit by operating segment can be found on page 51 of
this report. A description of operating segments for General Electric Company
and consolidated affiliates follows.

AIRCRAFT ENGINES. Jet engines and replacement parts and repair and maintenance
services for all categories of commercial aircraft (short/medium, intermediate
and long-range); for a wide variety of military aircraft, including fighters,
bombers, tankers and helicopters; and for executive and commuter aircraft.
Products and services are sold worldwide to airframe manufacturers, airlines and
government agencies. Also includes aircraft engine derivatives, used as marine
propulsion and industrial power sources; the latter is also reported in Power
Systems.

APPLIANCES. Major appliances and related services for products such as
refrigerators, freezers, electric and gas ranges, dishwashers, clothes washers
and dryers, microwave ovens, room air conditioners and residential water system
products. Products and services are sold in North America and in global markets
under various GE and private-label brands. Distributed to both retail outlets
and direct to consumers, mainly for the replacement market, and to building
contractors and distributors for new installations.

INDUSTRIAL PRODUCTS AND SYSTEMS. Lighting products (including a wide variety of
lamps, lighting fixtures and wiring devices); electrical distribution and
control equipment (including power delivery and control products such as
transformers, meters, relays, capacitors and arresters); transportation systems
products and maintenance services (including diesel and electric locomotives,
transit propulsion equipment, motorized wheels for off-highway vehicles, and
railway signaling communications systems); electric motors and related products;
a broad range of electrical and electronic industrial automation products
(including drive systems); installation, engineering and repair services, which
includes management and technical expertise for large projects such as process
control systems; and GE Supply, a network of electrical supply houses. Markets
are extremely diverse. Products and services are sold to commercial and
industrial end users, including utilities, to original equipment manufacturers,
to electrical distributors, to retail outlets, to railways and to transit
authorities. Increasingly, products and services are developed for and sold in
global markets.

MATERIALS. High-performance engineered plastics used in applications such as
automobiles and housings for computers and other business equipment; ABS resins;
silicones; superabrasive industrial diamonds; quartz products; and laminates.
Products are sold worldwide to a diverse customer base consisting mainly of
manufacturers.

NBC. Principal businesses are the furnishing of U.S. network television services
to more than 220 affiliated stations, production of television programs,
operation of 13 VHF and UHF television broadcasting stations, operation of four
cable/satellite networks around the world, and investment and programming
activities in the Internet, multimedia and cable television.

POWER SYSTEMS. Power plant products and services, including design,
installation, operation and maintenance services. Markets and competition are
global. Gas turbines and aircraft engine derivatives and related services are
sold separately and as part of packaged power plants for electric utilities,
independent power producers and for industrial cogeneration and mechanical drive
applications. Steam turbine-generators and related services are sold to electric
utilities and, for cogeneration, to industrial and other power customers. Also
includes portable power plants, nuclear reactors and fuel and support services
for GE's new and installed boiling water reactors, and equipment to support the
distribution of oil and gas products.

TECHNICAL PRODUCTS AND SERVICES. Medical imaging systems such as magnetic
resonance (MR) and computed tomography (CT) scanners, x-ray, nuclear imaging and
ultrasound, as well as diagnostic cardiology and patient monitoring devices;
related services, including equipment monitoring and repair, computerized data
management and customer productivity services. Products and services are sold
worldwide to hospitals and medical facilities. Also includes a full range of
computer-based information and data interchange services for both internal and
external use to commercial and industrial customers.

GECS. The operating activities of the GECS segment follow.

    CONSUMER SERVICES-private-label credit card loans, personal loans, time
sales and revolving credit and inventory financing for retail merchants, auto
leasing and inventory financing, mortgage servicing, retail business and
consumer savings and insurance services.

    EQUIPMENT MANAGEMENT-leases, loans, sales and asset management services for
portfolios of commercial and transportation equipment, including aircraft,
trailers, auto fleets, modular space units, railroad rolling stock, data
processing equipment, and marine shipping containers.

    MID-MARKET FINANCING-loans, financing and operating leases, and other
services for middle-market customers, including manufacturers, distributors and
end users, for a variety of equipment that includes vehicles, corporate
aircraft, data processing equipment, medical and diagnostic equipment, and
equipment used in construction, manufacturing, office applications, electronics
and telecommunications activities.

    SPECIALIZED FINANCING-loans and financing leases for major capital assets,
including industrial facilities and equipment, and energy-related facilities;
commercial and residential real estate loans and investments; and loans to and
investments in public and private entities in diverse industries.

    SPECIALTY INSURANCE-U.S. and international multiple-line property and
casualty reinsurance; certain directly written specialty insurance and life
reinsurance; financial guaranty insurance, principally on municipal bonds and
asset-backed securities and private mortgage insurance.

     Very few of the products financed by GECS are manufactured by GE.

<PAGE>
                                      F-48
ANNUAL REPORT PAGE 88

28 GEOGRAPHIC SEGMENT INFORMATION (CONSOLIDATED)


The table below presents data by geographic region.

     Revenues and operating profit shown below are classified according to their
country of origin (including exports from such areas). Revenues classified under
the caption "United States" include royalty and licensing income from non-U.S.
sources.

<TABLE>
<CAPTION>

                           REVENUES
                         For the years ended December 31
                                     Total revenues                  Intersegment revenues                  External revenues
                           --------------------------------   ---------------------------------   ---------------------------------
(In millions)                  2001        2000        1999        2001        2000        1999        2001        2000        1999
-----------------------------------------------------------------------------------------------------------------------------------
<S>                        <C>        <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
United States              $ 89,876   $  90,981   $  78,970   $   3,877   $   3,518   $   2,690   $  85,999   $  87,463   $  76,280
Europe                       23,878      24,144      22,919       2,009       1,212       1,081      21,869      22,932      21,838
Pacific Basin                11,447      12,921       7,879       1,258       1,218         924      10,189      11,703       6,955
Other (a)                     8,963       8,754       7,365       1,107         999         808       7,856       7,755       6,557
Intercompany eliminations    (8,251)     (6,947)     (5,503)     (8,251)     (6,947)     (5,503)         --          --          --
                           --------   ---------   ---------   ---------   ---------   ---------   ---------   ---------   ---------
Total                      $125,913   $ 129,853   $ 111,630   $      --   $      --   $      --   $ 125,913   $ 129,853   $ 111,630
===================================================================================================================================
</TABLE>

<TABLE>
<CAPTION>


                           SEGMENT OPERATING PROFIT (b)       ASSETS                              LONG-LIVED ASSETS (c)
                           For the years ended December 31             At December 31                      At December 31
                           --------------------------------   ---------------------------------   ---------------------------------
(In millions)                  2001        2000        1999        2001        2000        1999        2001        2000        1999
<S>                        <C>        <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
United States              $ 18,055   $  15,455   $  13,391   $ 315,179   $ 277,818   $ 264,129   $  18,593   $  19,180   $  21,612
Europe                        1,297       2,062       1,886      93,963      80,282      83,358       6,176       5,870       6,101
Pacific Basin                 1,857       1,754       1,092      41,385      42,281      28,214       1,888       1,936       2,017
Other (a)                     1,210       1,406         909      44,683      36,804      29,687      15,519      13,076      11,329
Intercompany eliminations        (8)          9          11        (187)       (179)       (188)        (36)        (47)        (37)
                           --------   ---------   ---------   ---------   ---------   ---------   ---------   ---------   ---------
Total                      $ 22,411   $  20,686   $  17,289   $ 495,023   $ 437,006   $ 405,200   $  42,140   $  40,015   $  41,022
===================================================================================================================================
(a)  Includes the Americas other than the United States and operations that
     cannot meaningfully be associated with specific geographic areas (for
     example, commercial aircraft leased by GE Capital Aviation Services).

(b)  Excludes GECS income taxes of $1,380 million, $1,912 million and $1,653
     million in 2001, 2000 and 1999, respectively, which are included in the
     measure of segment profit reported on page 51.

(c)  Property, plant and equipment (including equipment leased to others).
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>


29 ADDITIONAL INFORMATION ABOUT CERTAIN FINANCIAL INSTRUMENTS


Assets and liabilities that are reflected in the accompanying financial
statements at fair value are not included in the following disclosures; such
items include cash and equivalents, investment securities, separate accounts
and, beginning in 2001, derivative financial instruments. Other assets and
liabilities-those not carried at fair value-are discussed in the following
pages. Apart from certain borrowings by GE and GECS and certain marketable
securities, few of the instruments discussed below are actively traded and their
fair values must often be determined using models. Although management has made
every effort to develop the fairest representation of fair value for this
section, it would be unusual if the estimates could actually have been realized
at December 31, 2001 or 2000.

     A description of how fair values are estimated follows.

BORROWINGS. Based on market quotes or comparables.

TIME SALES AND LOANS. Based on quoted market prices, recent transactions and/or
discounted future cash flows, using rates at which similar loans would have been
made to similar borrowers.

INVESTMENT CONTRACT BENEFITS. Based on expected future cash flows, discounted at
currently offered discount rates for immediate annuity contracts or cash
surrender values for single premium deferred annuities.

FINANCIAL GUARANTEES AND CREDIT LIFE. Based on expected future cash flows,
considering expected renewal premiums, claims, refunds and servicing costs,
discounted at a current market rate.

ALL OTHER INSTRUMENTS. Based on comparable market transactions, discounted
future cash flows, quoted market prices, and/or estimates of the cost to
terminate or otherwise settle obligations.

<PAGE>
                                      F-49
ANNUAL REPORT PAGE 89

FINANCIAL INSTRUMENTS

<TABLE>
<CAPTION>
                                                       2001                                             2000
                                     -------------------------------------------   ---------------------------------------------
                                               Assets (liabilities)                              Assets (liabilities)
                                               ---------------------------------                --------------------------------
                                               Carrying    Estimated fair value                 Carrying    Estimated fair value
                                     Notional    amount     --------------------   Notional        amount   --------------------
December 31 (In millions)              amount     (net)        High         Low      amount         (net)       High         Low
--------------------------------------------------------------------------------------------------------------------------------
<S>                                  <C>        <C>         <C>       <C>         <C>           <C>          <C>       <C>
GE
Investments and notes receivable (b) $     (a)  $   570     $   568   $     568   $      (a)    $   2,012    $ 2,060   $   2,026
Borrowings (c)(d)                          (a)   (2,509)     (2,509)      (2,509)        (a)       (1,781)    (1,781)     (1,781)
Recourse obligations for receivables
   sold                                   471       (45)        (45)        (45)        589           (42)       (42)        (42)
Financial guarantees                    3,605       (49)        (49)        (49)      3,065(g)         --         --          --
Financing commitments                   1,497       (47)        (47)        (47)      1,492            --         --          --
Liquidity support                         362        --          --          --          --            --         --          --
GECS
Assets
   Time sales and loans                    (a)  118,584     119,986      117,930         (a)       92,912     93,539      92,360
   Mortgages acquired for resale           (a)    1,596       1,631        1,596         (a)        1,267      1,250       1,245
   Other financial instruments             (a)    9,496       9,671        9,599         (a)       10,940     11,130      11,102
Liabilities
   Borrowings (c)(d)                       (a) (240,519)   (244,069)    (244,069)        (a)     (205,371)  (207,670)   (207,670)
   Investment contract benefits            (a)  (32,427)    (32,192)     (31,815)        (a)      (27,575)   (26,144)    (26,144)
   Insurance-financial guarantees
      and credit life (e)             271,208    (2,941)     (2,983)     (3,091)    239,940        (2,759)    (2,797)     (2,910)
   Other financial instruments          4,678      (629)       (590)       (590)      2,982        (1,184)    (1,114)     (1,114)
Special purpose entity support
   Credit and liquidity (f)            43,176      (712)       (712)       (712)     31,197          (630)      (630)       (630)
   Credit and liquidity-unused          9,404        --          --          --       6,470            --         --          --
   Performance guarantees               3,759        --          --          --       2,870(h)         --         --          --
      -unused                             441        --          --          --       1,330(h)         --         --          --
Swap guarantees and other
   guarantees                           8,506        --          --          --       7,415(h)         --         --          --
Other firm commitments
   Ordinary course of business
     lending commitments                9,636        --          --          --       9,450            --         --          --
   Unused revolving credit lines
      Commercial                       27,770        --          --          --      19,372(i)         --         --          --
      Consumer-principally
         credit cards                 222,929        --          --          --     188,421            --         --          --
================================================================================================================================
(a) These financial instruments do not have notional amounts.
(b) Amounts in 2000 include $1.0 billion related to Lockheed Martin note, which was prepaid in 2001.
(c) Includes effects of interest rate and currency swaps.
(d) See note 18.
(e) See note 19.
(f) Includes credit support of $14,496 million and $9,784 million at December 31, 2001 and 2000, respectively.
(g) Reported as $2,345 million in 2000.
(h) Reported, in total, as $7,895 million in 2000.
(i) Reported as $11,278 million in 2000.
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>


DERIVATIVES AND HEDGING. GE and GECS global business activities routinely deal
with fluctuations in interest rates, in currency exchange rates and in commodity
and other asset prices. GE and GECS apply strict policies to managing each of
these risks, including prohibitions on derivatives trading, derivatives
market-making or other speculative activities. These policies require the use of
derivative instruments in concert with other techniques to reduce or eliminate
these risks.

<PAGE>
                                      F-50
ANNUAL REPORT PAGE 90

     On January 1, 2001, GE adopted SFAS 133, ACCOUNTING FOR DERIVATIVE
INSTRUMENTS AND HEDGING ACTIVITIES, as discussed in note 1. The paragraphs that
follow provide additional information about derivatives and hedging
relationships in accordance with the requirements of SFAS 133.

CASH FLOW HEDGES. Under SFAS 133, cash flow hedges are hedges that use simple
derivatives to offset the variability of expected future cash flows. Variability
can appear in floating rate assets, floating rate liabilities or from certain
types of forecasted transactions, and can arise from changes in interest rates
or currency exchange rates. For example, GECS often borrows funds at a variable
rate of interest. If GECS needs the funds to make a floating rate loan, there is
no exposure to interest rate changes, and no hedge is necessary. However, if a
fixed rate loan is made, GECS will contractually commit to pay a fixed rate of
interest to a counterparty who will pay GECS a variable rate of interest (an
"interest rate swap"). This swap will then be designated as a cash flow hedge of
the associated variable rate borrowing. If, as would be expected, the derivative
is perfectly effective in offsetting variable interest in the borrowing, changes
in its fair value are recorded in a separate component in equity and released to
earnings contemporaneously with the earnings effects of the hedged item. Further
information about hedge effectiveness is provided below.

     GE uses currency forwards and options to manage exposures to changes in
currency exchange rates associated with commercial purchase and sale
transactions. These instruments permit GE to eliminate the cash flow
variability, in local currency, of costs or selling prices denominated in
currencies other than the functional currency. In addition, GE and GECS use
these instruments, along with interest rate and currency swaps, to optimize
borrowing costs and investment returns. For example, currency swaps and
non-functional currency borrowings together provide lower funding costs than
could be achieved by issuing debt directly in a given currency.

     Adoption of SFAS 133 resulted in a reduction of share owners' equity of
$827 million at January 1, 2001. Of that amount, $259 million was transferred to
earnings in 2001 along with the earnings effects of the related forecasted
transactions for no net impact on earnings. At December 31, 2001, amounts
related to derivatives qualifying as cash flow hedges amounted to a reduction of
equity of $955 million, of which $665 million was expected to be transferred to
earnings in 2002 along with the earnings effects of the related forecasted
transactions. In 2001, there were no forecasted transactions that failed to
occur. At December 31, 2001, the maximum term of derivative instruments that
hedge forecasted transactions was 24 months.

FAIR VALUE HEDGES. Under SFAS 133, fair value hedges are hedges that eliminate
the risk of changes in the fair values of assets, liabilities and certain types
of firm commitments. For example, GECS will use an interest rate swap in which
it receives a fixed rate of interest and pays a variable rate of interest to
change the cash flow profile of a fixed rate borrowing to match the variable
rate financial asset that it is funding. Changes in fair value of derivatives
designated and effective as fair value hedges are recorded in earnings and are
offset by corresponding changes in the fair value of the hedged item.

     GE and GECS use interest rate swaps, currency swaps and interest rate and
currency forwards to hedge the effect of interest rate and currency exchange
rate changes on local and nonfunctional currency denominated fixed-rate
borrowings and certain types of fixed-rate assets. Equity options are used to
hedge price changes in investment securities and equity-indexed annuity
liabilities at GECS.

NET INVESTMENT HEDGES. The net investment hedge designation under SFAS 133
refers to the use of derivative contracts or cash instruments to hedge the
foreign currency exposure of a net investment in a foreign operation. At GE and
GECS, currency exposures that result from net investments in affiliates are
managed principally by funding assets denominated in local currency with debt
denominated in that same currency. In certain circumstances, such exposures are
managed using currency forwards and currency swaps.

DERIVATIVES NOT DESIGNATED AS HEDGES. SFAS 133 specifies criteria that must be
met in order to apply any of the three forms of hedge accounting. For example,
hedge accounting is not permitted for hedged items that are marked to market
through earnings. GE and GECS use derivatives to hedge exposures when it makes
economic sense to do so, including circumstances in which the hedging
relationship does not qualify for hedge accounting as described in the following
paragraph. GE and GECS also will occasionally receive derivatives, such as
equity warrants, in the ordinary course of business. Under SFAS 133, derivatives
that do not qualify for hedge accounting are marked to market through earnings.

     GE and GECS use option contracts, including caps, floors and collars, as an
economic hedge of changes in interest rates, currency exchange rates and equity
prices on certain types of assets and liabilities. For example, GECS uses equity
options to hedge the risk of changes in equity prices embedded in insurance
liabilities associated with annuity contracts written by GE Financial Assurance.
GECS also uses interest rate swaps, purchased options and futures as an economic
hedge of the fair value of mortgage servicing rights. GE and GECS occasionally
obtain equity warrants as part of sourcing or financing transactions. Although
these instruments are considered to be derivatives under SFAS 133, their
economic risk is similar to, and managed on the same basis as, other equity
instruments held by GE and GECS.

EARNINGS EFFECTS OF DERIVATIVES. The table that follows provides additional
information about the earnings effects of derivatives. In the context of hedging
relationships, "effectiveness" refers to the degree to which fair value changes
in the hedging instrument offset corresponding fair value changes in the hedged
item. Certain elements of hedge positions cannot qualify for hedge accounting
under SFAS 133 whether effective or not, and must therefore be marked to market
through earnings. Time value of purchased options is the most common example of
such elements in instruments used by GE and GECS. Earnings effects of such items
are shown in the following table as "amounts excluded from the measure of
effectiveness."

<PAGE>
                                      F-51

ANNUAL REPORT PAGE 91

                                                    Cash flow        Fair value
December 31 (In millions)                              hedges            hedges
                                                    ---------        ----------
Ineffectiveness                                           $ 1              $ 26
Amounts excluded from the measure
of effectiveness                                          $(1)             $(16)
================================================================================

     At December 31, 2001, the fair value of derivatives in a gain position and
recorded in "All other assets" is $2.3 billion and the fair value of derivatives
in a loss position and recorded in "All other liabilities" is $3.8 billion.

     The following table provides fair value information about derivative
instruments for the year 2000. Following adoption of SFAS 133 on January 1,
2001, all derivative instruments are reported at fair value in the financial
statements and similar disclosures for December 31, 2001, are not relevant.

                                                                            2000
                                                  ------------------------------
                                                            Assets (liabilities)
                                                            --------------------
                                                            Carrying
                                                  Notional    amount  Estimated
December 31 (In millions)                           amount     (net) fair value
                                                  --------  -------- -----------
GE
Assets
   Investment related
      Cancelable interest rate
         swap                                      $ 1,046     $   6      $   4
Liabilities
   Borrowings related instruments
      Interest rate swaps                              786        --        (38)
      Currency swaps                                   172        --         (4)
Other firm commitments
   Forwards and options                              6,961        37         30
GECS
Assets
   Integrated swaps                                 22,911       (44)      (771)
   Purchased options                                 9,832       105        164
   Options, including "floors"                      21,984       202        208
   Interest rate swaps and futures                   2,798        29         38
Liabilities
   Interest rate swaps                              52,681        --       (208)
   Currency swaps                                   24,314        --       (957)
   Currency forwards                                27,902        --        381
Other firm commitments
   Currency forwards                                 1,585         8         47
   Currency swaps                                      647       292        275
================================================================================

COUNTERPARTY CREDIT RISK. The risk that counterparties to derivative contracts
will be financially unable to make payments to GE or GECS according to the terms
of the agreements is counterparty credit risk. Counterparty credit risk is
managed on an individual counterparty basis, which means that gains and losses
are netted for each counterparty to determine the amount at risk. When a
counterparty exceeds credit exposure limits in terms of amounts due to GE or
GECS, typically as a result of changes in market conditions (see table below),
no additional transactions are executed until the exposure with that
counterparty is reduced to an amount that is within the established limit. All
swaps are executed under master swap agreements containing mutual credit
downgrade provisions that provide the ability to require assignment or
termination in the event either party is downgraded below A3 or A-. If the
downgrade provisions had been triggered at December 31, 2001, GE and GECS could
have been required to disburse up to $2.9 billion and could have claimed $0.8
billion from counterparties-the net fair value losses and gains. At December 31,
2001 and 2000, gross fair value gains amounted to $3.3 billion and $3.2 billion,
respectively. At December 31, 2001 and 2000, gross fair value losses amounted to
$5.4 billion and $4.0 billion, respectively.

     As part of its ongoing activities, GECS enters into swaps that are
integrated into investments in or loans to particular customers. Such integrated
swaps not involving assumption of third-party credit risk are evaluated and
monitored like their associated investments or loans and are not therefore
subject to the same credit criteria that would apply to a stand-alone position.
Except for such positions, all other swaps, purchased options and forwards with
contractual maturities longer than one year are conducted within the credit
policy constraints provided in the table below. Foreign exchange forwards with
contractual maturities shorter than one year must be executed with
counterparties having an A-1+/ P-1 credit rating and the credit limit for these
transactions is $150 million.

COUNTERPARTY CREDIT CRITERIA                               Credit rating
                                                    ----------------------------
                                                    Moody's    Standard & Poor's
                                                    -------    -----------------
Term of transaction
   Between one and five years                           Aa3                  AA-
   Greater than five years                              Aaa                  AAA
Credit exposure limits
   Up to $50 million                                    Aa3                  AA-
   Up to $75 million                                    Aaa                  AAA
================================================================================

<PAGE>
                                      F-52

ANNUAL REPORT PAGE 92

30 QUARTERLY INFORMATION (UNAUDITED)

<TABLE>
<CAPTION>

                                            First quarter     Second quarter     Third quarter   Fourth quarter
(Dollar amounts in millions;             ------------------  ----------------  ----------------  ----------------
per-share amounts in dollars)                2001      2000     2001     2000     2001     2000     2001     2000
                                         --------   -------  -------  -------  -------  -------  -------  -------
<S>                                      <C>        <C>      <C>      <C>      <C>      <C>      <C>      <C>
CONSOLIDATED OPERATIONS
Earnings before accounting changes       $  3,017   $ 2,592  $ 3,897  $ 3,378  $ 3,281  $ 3,180  $ 3,933  $ 3,585
Cumulative effect of accounting changes      (444)       --       --       --       --       --       --       --
                                         --------   -------  -------  -------  -------  -------  -------  -------
Net earnings                                2,573     2,592    3,897    3,378    3,281    3,180    3,933    3,585
Per-share amounts before accounting
   changes
      Diluted earnings per share         $   0.30   $  0.26  $  0.39  $  0.34  $  0.33  $  0.32  $  0.39  $  0.36
      Basic earnings per share               0.30      0.26     0.39     0.34     0.33     0.32     0.40     0.36
Per-share amounts after accounting
   changes
      Diluted earnings per share             0.26      0.26     0.39     0.34     0.33     0.32     0.39     0.36
      Basic earnings per share               0.26      0.26     0.39     0.34     0.33     0.32     0.40     0.36
SELECTED DATA
GE
   Sales of goods and services             15,850    14,370   17,588   16,414   16,359   15,578   18,221   17,445
   Gross profit from sales                  4,960     4,520    5,677    5,372    5,245    4,675    6,059    5,693
GECS
   Total revenues                          14,723    15,681   14,399   16,470   13,298   16,444   15,933   17,582
   Operating profit                         1,839     1,746    1,855    1,697    1,512    2,020    1,760    1,641
   Earnings before accounting changes       1,401     1,210    1,477    1,277    1,301    1,478    1,407    1,227
=================================================================================================================
</TABLE>

     For GE, gross profit from sales is sales of goods and services less costs
of goods and services sold. For GECS, operating profit is "Earnings before
income taxes and accounting changes."

     Earnings-per-share amounts for each quarter are required to be computed
independently. As a result, their sum does not equal the total year
earnings-per-share amounts in 2000.



INDEPENDENT AUDITORS' REPORT

TO SHARE OWNERS AND BOARD OF DIRECTORS OF
GENERAL ELECTRIC COMPANY

We have audited the accompanying statement of financial position of General
Electric Company and consolidated affiliates as of December 31, 2001 and 2000,
and the related statements of earnings, changes in share owners' equity and cash
flows for each of the years in the three-year period ended December 31, 2001.
These consolidated financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these consolidated
financial statements based on our audits.

     We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

     In our opinion, the aforementioned financial statements appearing on pages
F-2 to F-7, F-11 and F-27 to F-52 present fairly, in all material respects, the
financial position of General Electric Company and consolidated affiliates at
December 31, 2001 and 2000, and the results of their operations and their cash
flows for each of the years in the three-year period ended December 31, 2001, in
conformity with accounting principles generally accepted in the United States of
America.

     As discussed in note 1 to the consolidated financial statements, the
Company in 2001 changed its method of accounting for derivative instruments and
hedging activities and impairment of certain beneficial interests in securitized
assets.



/s/ KPMG LLP
---------------------
KPMG LLP
Stamford, Connecticut

February 8, 2002

<PAGE>
                                                                     EXHIBIT 12

                            GENERAL ELECTRIC COMPANY
                       RATIO OF EARNINGS TO FIXED CHARGES

<TABLE>
<CAPTION>

(Dollars in millions)                                                           Years ended December 31
                                                             --------------------------------------------------------
                                                                 1997        1998        1999        2000        2001
                                                             --------    --------    --------    --------    --------
<S>                                                          <C>         <C>         <C>         <C>         <C>
GE EXCEPT GECS
Earnings <F1>                                                $ 10,132    $ 12,230    $ 14,103    $ 16,747    $ 18,506
Less: Equity in undistributed earnings of General Electric
      Capital Services, Inc. <F2>                              (1,597)     (2,124)     (2,776)     (3,370)     (3,625)
Plus: Interest and other financial
      charges included in expense                                 797         883         810         811         817
      One-third of rental expense  <F3>                           179         189         202         216         231
                                                             --------    --------    --------    --------    --------
Adjusted "earnings"                                          $  9,511    $ 11,178    $ 12,339    $ 14,404    $ 15,929
                                                             ========    ========    ========    ========    ========

         Interest and other financial charges                $    797    $    883    $    810    $    811    $    817
         Interest capitalized                                      31          38          36           3          10
         One-third of rental expense <F3>                         179         189         202         216         231
                                                             --------    --------    --------    --------    --------
Total fixed charges                                          $  1,007    $  1,110    $  1,048    $  1,030    $  1,058
                                                              ========    ========    ========    ========    ========
Ratio of earnings to fixed charges                               9.44       10.07       11.78       13.98       15.06
                                                              ========    ========    ========    ========    ========
GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
Earnings <F1>                                                $ 11,419    $ 13,742    $ 15,942    $ 18,873    $ 20,049
Plus: Interest and other financial charges
      included in expense                                       8,445       9,821      10,174      11,903      11,212
      One-third of rental expense <F3>                            423         486         558         608         566
                                                             --------    --------    --------    --------    --------
Adjusted "earnings"                                          $ 20,287    $ 24,049    $ 26,674    $ 31,384    $ 31,827
                                                             ========    ========    ========    ========    ========
Fixed Charges:
   Interest and other financial charges                      $  8,445    $  9,821    $ 10,174    $ 11,903    $ 11,212
   Interest capitalized                                            83         126         123         124          98
   One-third of rental expense  <F3>                              423         486         558         608         566
                                                             --------    --------    --------    --------    --------
Total fixed charges                                          $  8,951    $ 10,433    $ 10,855    $ 12,635    $ 11,876
                                                             ========    ========    ========    ========    ========
Ratio of earnings to fixed charges                               2.27        2.31        2.46        2.48        2.68
                                                             ========    ========    ========    ========    ========
<FN>
<F1> Earnings before income taxes, minority interest and cumulative effect of
changes in accounting principle. <F2> Earnings after income taxes, net of
dividends, and before cumulative effect of changes in accounting principle. <F3>
Considered to be representative of interest factor in rental expense.
</FN>
</TABLE>