GENERAL ELECTRIC CREDIT CORPORATION AND CONSOLIDATED AFFILIATES STATEMENT OF CURRENT AND RETAINED EARNINGS (Amounts in millions) (Unaudited) Six months ended Year ended December 31, June 28, June 26, 1971 1972 1973 1974 1975 1975 1976 Earned income (Note 8): Consumer financing: Time sales and loans*................. $163.3 $186.8 $230.0 $290.9 $294.4 $146.8 $145.7 Inventory..................................... 19.2 21.4 30.5 38.6 34.2 16.1 14.7 Commercial and industrial financing: Time sales, loans and leases*...... 91.8 100.7 119.5 181.5 197.2 86.2 93.9 Amortization of investment tax credit on leased equipment..... 3.1 5.7 10.1 12.2 17.0 7.0 11.6 Premium and other income of insurance subsidiaries.............................. _2.6 _52 16.3 38.1 42.3 17.4 22.1 280.0 319.8 406.4 561.3 585.1 273.5 288.0 Expenses: Operating and administrative (other than items shown below)................ 72.2 87.8 102.6 142.5 162.6 74.2 87.8 Provision for losses on receivables (Note 4).......................................... 40.4 35.9 28.1 45.9 85.9 37.8 39.7 Provision for losses on other assets..... 0.5 1.3 1.6 10.7 0.7 2.7 Interest and discount (Notes 6 and 9)..................................................... 99.8 108.5 190.2 283.8 223.6 109.9 105.8 Taxes other than income taxes........... 5.5 7.5 5.7 10.3 11.9 5.6 7.1 Rent..................................................... 3.2 4.1 5.3 6.6 7.9 3.8 4.5 Depreciation of building and equipment................................................. _22 2.1 2.2 22 2.2 _1.1 _1.3 223.3 246.4 335.4 492.9 504.8 233.1 248.9 Income before provision for income taxes. 56.7 73.4 71.0 68.4 80.3 40.4 39.1 Provision for income taxes (Note 10)....... 25.8 32.3 29.3 25.7 28.1 15.1 12.3 Net earnings................................................ 30.9 41.1 41.7 42.7 52.2 25.3 26.8 Retained earnings at January 1.................. 135.0 141.9 150.0 160.7 169.4 169.4 179.9 Total..................................... 165.9 183.0 191.7 203.4 221.6 194.7 206.7 Cash dividendspreferred........................ 2.6 5.3 6.8 6.8 6.8 common......................... 21.4 27.7 24.2 27.2 34.9 _ _ Retained earnings at end of period............ $141.9 $150.0 $160.7 $169.4 $179.9 $194.7 $206.7 * During August 1975, the organizational structure of the Company was changed by the transfer of the revolving credit financing and dealer accounts receivable financing businesses from consumer financing to commercial and industrial financing. Such change has been given retroactive effect to January 1, 1975, and prior period amounts have been recast to a basis consistent therewith. See Notes to Financial Statements. F-20 GENERAL ELECTRIC CREDIT CORPORATION AND CONSOLIDATED AFFILIATES STATEMENT OF CHANGES IN FINANCIAL POSITION (Amounts in millions) (Unaudited) Six months ended Year ended December 31, _ June 28, June 26, 1971 1972 1973 1974 1975 1975 1976 Source of funds: From operations: Net earnings.............. $ 30.9 $ 41.1 $ 41.7 $ 42.7 $ 52.2 $ 25.3 $ 26.8 Deferred taxes................ 27.9 70.6 94.8 94.9 145.0 57.8 67.7 Provision for losses on receivables.......... 40.4 35.9 28.1 45.9 85.9 37.8 39.7 Provision for losses on other assets.......... 0.5 1.3 1.6 10.7 0.7 2.7 Increase in reserves of insurance subsidiaries..................................................... 2.0 1.0 2.5 12.8 5.4 0.2 2.5 Amortization of investment tax credit .... -leased equipment............................. (3.1) (5.7) (10.1) (12.2) (17.0) 7.0 (1.6 Increase in other assets............................ (3.1) (3.8) (8.8) (10.6) (9.4) (6.5) (5.0) Increase (decrease) in accounts and drafts payable....................................... (7.5) 38.7 1.5 (10.7) 13.7 12.9 (10.5) Depreciation............................................. 2.2 2.1 2.2 2.2 2.2 1.1 1.3 Increase in other liabilities....................... 5.3 12.1 3.5 9.3 17.7 3.0 3.4 Amortization of goodwill......................... _0.5 _0.5 _0.5 _03 _ Total from operations...................... 95.0 192.5 157.2 176.4 306.9 115.6 117.3 Increase (decrease) in short-term debt.......... (38.4) (52.5) 484.6 354.9 20.2 (106.2) (73.1) Proceeds from issuance of long-term senior 205.0 debt.............................................................. 145.5 345.4 62.6 238.2 221.0 205.0 255.5 Proceeds from issuance of long-term subordinated debt........................................ 60.4 32.5 63.5 45.0 25.0 10.0 28.0 Increase in preferred stock.............................. 35.0 20.0 Increase in common stock............................... 50.0 107.5 41.7 Increase in additional paid-in capital............. 11.5 Increase in reserves of insurance subsidiaries attributed to the 1973 acquisition of Puritan Life Insurance Company....................... 24.5 Other-net....................................................... - __22 _46 _6.4 10.8 - _0.8 Total source of funds........................ $297.5 $540.1 $847.0 $939.9 $625.6 $224.4 $328.5 Application of funds: Increase (decrease) in receivables due within one year................................................. $127.5 $166.6 $413.8 $ 90.8 $ 83.5 $(53.7) $ 12.2 Increase in receivables due after one year...... 93.1 292.2 389.1 742.5 265.1 136.7 157.8 Decrease (increase) in deferred income......... (13.2) (58.4) (82.9) (132.1) 3.5 (11.4) 24.9 Accounts written off......................................... 22.8 21.6 21.4 33.2 52.5 23.6 21.1 Funds applied to increase in receivables. 230.2 422.0 741.4 734.4 404.6 95.2 216.0 Increase in investments included in other assets ......................... 62.3 23.5 8.1 17.9 Retirement of long-term senior debt............... 10.5 22.5 39.9 39.3 106.5 6.6 30.1 Retirement of long-term subordinated debt... 19.8 21.7 14.2 49.5 25.8 4.7 24.9 Dividends paid................................................ 24.0 33.0 31.0 34.0 41.7 - - Increase in cash and marketable securities (in 1973, $21,040,000 attributed to the acquisition of Puritan Life Insurance Company)............................................................ 6.8 40.9 20.5 20.4 23.5 107.4 39.6 Othernet....................................................... 6.2 2.4 Total application of funds................ $297.5 $540.1 $847.0 $939.9 $625.6 $224.4 $328.5 See Notes to Financial Statements. 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