New York | 14-0689340 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
5 Necco Street | Boston | MA | 02210 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common stock, par value $0.01 per share | GE | New York Stock Exchange | ||||||
0.375% Notes due 2022 | GE 22A | New York Stock Exchange | ||||||
1.250% Notes due 2023 | GE 23E | New York Stock Exchange | ||||||
0.875% Notes due 2025 | GE 25 | New York Stock Exchange | ||||||
1.875% Notes due 2027 | GE 27E | New York Stock Exchange | ||||||
1.500% Notes due 2029 | GE 29 | New York Stock Exchange | ||||||
7 1/2% Guaranteed Subordinated Notes due 2035 | GE /35 | New York Stock Exchange | ||||||
2.125% Notes due 2037 | GE 37 | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Page | |||||
Note 6 Property, Plant and Equipment and Operating Leases | |||||
RPO | March 31, 2022 | December 31, 2021 | ||||||
Equipment | $ | 45,687 | $ | 45,065 | ||||
Services | 195,053 | 194,755 | ||||||
Total RPO | $ | 240,740 | $ | 239,820 |
REVENUES | Three months ended March 31 | |||||||
2022 | 2021 | |||||||
Equipment revenues | $ | 6,864 | $ | 7,971 | ||||
Services revenues | 9,408 | 8,345 | ||||||
Insurance revenues | 767 | 755 | ||||||
Total revenues | $ | 17,040 | $ | 17,071 |
EARNINGS (LOSS) AND EARNINGS (LOSS) PER SHARE | Three months ended March 31 | |||||||
(Per-share in dollars and diluted) | 2022 | 2021 | ||||||
Continuing earnings (loss) attributable to GE common shareholders | $ | (809) | $ | 20 | ||||
Continuing earnings (loss) per share | $ | (0.74) | $ | 0.02 |
Three Months Ended March 31 | ||||||||||||||
SUMMARY OF REPORTABLE SEGMENTS | 2022 | 2021 | V | % | ||||||||||
Aviation | $ | 5,603 | $ | 4,992 | 12 | % | ||||||||
Healthcare | 4,363 | 4,308 | 1 | % | ||||||||||
Renewable Energy | 2,871 | 3,248 | (12) | % | ||||||||||
Power | 3,501 | 3,921 | (11) | % | ||||||||||
Total segment revenues | 16,337 | 16,468 | (1) | % | ||||||||||
Corporate | 702 | 603 | 16 | % | ||||||||||
Total revenues | $ | 17,040 | $ | 17,071 | — | % | ||||||||
Aviation | $ | 908 | $ | 641 | 42 | % | ||||||||
Healthcare | 538 | 698 | (23) | % | ||||||||||
Renewable Energy | (434) | (234) | (85) | % | ||||||||||
Power | 63 | (87) | F | |||||||||||
Total segment profit (loss) | 1,075 | 1,019 | 5 | % | ||||||||||
Corporate(a) | (1,328) | 160 | U | |||||||||||
Interest and other financial charges | (390) | (485) | 20 | % | ||||||||||
Non-operating benefit income (cost) | 137 | (430) | F | |||||||||||
Benefit (provision) for income taxes | (251) | (173) | (45) | % | ||||||||||
Preferred stock dividends | (52) | (72) | 28 | % | ||||||||||
Earnings (loss) from continuing operations attributable to GE common shareholders | (809) | 20 | U | |||||||||||
Earnings (loss) from discontinued operations attributable to GE common shareholders | (286) | (2,894) | 90 | % | ||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | (1,094) | $ | (2,874) | 62 | % |
Three months ended March 31 | ||||||||
Sales in units, except where noted | 2022 | 2021 | ||||||
Commercial Engines(a) | 343 | 359 | ||||||
LEAP Engines(b) | 239 | 188 | ||||||
Military Engines | 184 | 96 | ||||||
Spare Parts Rate(c) | 22.8 | 13.2 | ||||||
(a) Commercial Engines now includes Business Aviation and Aeroderivative units for all periods presented. (b) LEAP engines are subsets of commercial engines. (c) Commercial externally shipped spare parts and spare parts used in time and material shop visits in millions of dollars per day. |
RPO | March 31, 2022 | December 31, 2021 | ||||||
Equipment | $ | 11,924 | $ | 11,139 | ||||
Services | 115,576 | 114,133 | ||||||
Total RPO | $ | 127,501 | $ | 125,272 |
SEGMENT REVENUES AND PROFIT | Three months ended March 31 | |||||||||||||
2022 | 2021 | |||||||||||||
Commercial Engines & Services | $ | 3,853 | $ | 3,354 | ||||||||||
Military | 1,036 | 956 | ||||||||||||
Systems & Other | 714 | 682 | ||||||||||||
Total segment revenues | $ | 5,603 | $ | 4,992 | ||||||||||
Equipment | $ | 1,654 | $ | 1,847 | ||||||||||
Services | 3,949 | 3,145 | ||||||||||||
Total segment revenues | $ | 5,603 | $ | 4,992 | ||||||||||
Segment profit | $ | 908 | $ | 641 | ||||||||||
Segment profit margin | 16.2 | % | 12.8 | % |
RPO | March 31, 2022 | December 31, 2021 | ||||||
Equipment | $ | 4,282 | $ | 4,232 | ||||
Services | 10,118 | 10,375 | ||||||
Total RPO | $ | 14,399 | $ | 14,606 |
SEGMENT REVENUES AND PROFIT | Three months ended March 31 | |||||||||||||
2022 | 2021 | |||||||||||||
Healthcare Systems | $ | 3,875 | $ | 3,825 | ||||||||||
Pharmaceutical Diagnostics | 487 | 482 | ||||||||||||
Total segment revenues | $ | 4,363 | $ | 4,308 | ||||||||||
Equipment | $ | 2,256 | $ | 2,227 | ||||||||||
Services | 2,107 | 2,081 | ||||||||||||
Total segment revenues | $ | 4,363 | $ | 4,308 | ||||||||||
Segment profit | $ | 538 | $ | 698 | ||||||||||
Segment profit margin | 12.3 | % | 16.2 | % | ||||||||||
Three months ended March 31 | ||||||||
Onshore and Offshore sales in units | 2022 | 2021 | ||||||
Wind Turbines | 502 | 778 | ||||||
Wind Turbine Gigawatts | 1.7 | 2.4 | ||||||
Repower units | 151 | — |
RPO | March 31, 2022 | December 31, 2021 | ||||||
Equipment | $ | 18,728 | $ | 18,639 | ||||
Services | 12,682 | 12,872 | ||||||
Total RPO | $ | 31,410 | $ | 31,511 |
SEGMENT REVENUES AND PROFIT | Three months ended March 31 | |||||||||||||
2022 | 2021 | |||||||||||||
Onshore Wind | $ | 1,906 | $ | 2,118 | ||||||||||
Grid Solutions equipment and services | 668 | 795 | ||||||||||||
Hydro, Offshore Wind and Hybrid Solutions | 297 | 335 | ||||||||||||
Total segment revenues | $ | 2,871 | $ | 3,248 | ||||||||||
Equipment | $ | 2,173 | $ | 2,844 | ||||||||||
Services | 698 | 404 | ||||||||||||
Total segment revenues | $ | 2,871 | $ | 3,248 | ||||||||||
Segment profit (loss) | $ | (434) | $ | (234) | ||||||||||
Segment profit margin | (15.1) | % | (7.2) | % |
Three months ended March 31 | ||||||||
Sales in units | 2022 | 2021 | ||||||
GE Gas Turbines | 20 | 11 | ||||||
Heavy-Duty Gas Turbines(a) | 13 | 11 | ||||||
HA-Turbines(b) | 2 | 5 | ||||||
Aeroderivatives(a) | 7 | — | ||||||
(a) Heavy-Duty Gas Turbines and Aeroderivatives are subsets of GE Gas Turbines. (b) HA-Turbines are a subset of Heavy-Duty Gas Turbines. |
RPO | March 31, 2022 | December 31, 2021 | ||||||
Equipment | $ | 11,812 | $ | 12,169 | ||||
Services | 55,941 | 56,569 | ||||||
Total RPO | $ | 67,752 | $ | 68,738 |
SEGMENT REVENUES AND PROFIT | Three months ended March 31 | |||||||||||||
2022 | 2021 | |||||||||||||
Gas Power | $ | 2,489 | $ | 2,829 | ||||||||||
Steam Power | 636 | 706 | ||||||||||||
Power Conversion, Nuclear and other | 377 | 385 | ||||||||||||
Total segment revenues | $ | 3,501 | $ | 3,921 | ||||||||||
Equipment | $ | 965 | $ | 1,241 | ||||||||||
Services | 2,536 | 2,679 | ||||||||||||
Total segment revenues | $ | 3,501 | $ | 3,921 | ||||||||||
Segment profit (loss) | $ | 63 | $ | (87) | ||||||||||
Segment profit margin | 1.8 | % | (2.2) | % |
REVENUES AND OPERATING PROFIT (COST) | Three months ended March 31 | |||||||
2022 | 2021 | |||||||
Corporate revenues | $ | 220 | $ | 227 | ||||
Insurance revenues | 767 | 755 | ||||||
Eliminations and other | (285) | (379) | ||||||
Total Corporate revenues | $ | 702 | $ | 603 | ||||
Gains (losses) on purchases and sales of business interests | $ | 4 | $ | 3 | ||||
Gains (losses) on equity securities | (219) | 347 | ||||||
Restructuring and other charges | (35) | (106) | ||||||
Separation costs | (119) | — | ||||||
Steam asset sale impairment (Notes 6 and 7) | (824) | — | ||||||
Russia and Ukraine charges | (230) | — | ||||||
Insurance profit (loss) (Note 12) | 225 | 138 | ||||||
Adjusted total corporate operating costs (Non-GAAP) | (129) | (221) | ||||||
Total Corporate operating profit (cost) (GAAP) | $ | (1,328) | $ | 160 | ||||
Less: gains (losses), impairments, Insurance, and restructuring & other | (1,199) | 382 | ||||||
Adjusted total corporate operating costs (Non-GAAP) | $ | (129) | $ | (221) | ||||
Functions & operations | $ | (78) | $ | (188) | ||||
Environmental, health and safety (EHS) and other items | (51) | (55) | ||||||
Eliminations | (1) | 23 | ||||||
Adjusted total corporate operating costs (Non-GAAP) | $ | (129) | $ | (221) |
RESTRUCTURING AND OTHER CHARGES | Three months ended March 31 | |||||||
2022 | 2021 | |||||||
Workforce reductions | $ | 23 | $ | 211 | ||||
Plant closures & associated costs and other asset write-downs | 29 | 26 | ||||||
Acquisition/disposition net charges and other | 12 | 5 | ||||||
Other | (3) | — | ||||||
Total restructuring and other charges | $ | 61 | $ | 242 | ||||
Cost of equipment/services | $ | 31 | $ | 101 | ||||
Selling, general and administrative expenses | 33 | 148 | ||||||
Other income | (3) | (7) | ||||||
Total restructuring and other charges | $ | 61 | $ | 242 | ||||
Aviation | $ | 5 | $ | 62 | ||||
Healthcare | 13 | 39 | ||||||
Renewable Energy | 6 | 76 | ||||||
Power | 34 | 49 | ||||||
Corporate | 3 | 16 | ||||||
Total restructuring and other charges | $ | 61 | $ | 242 | ||||
Restructuring and other charges cash expenditures | $ | 154 | $ | 223 |
Moody's | S&P | Fitch | |||||||||
Outlook | Negative | CreditWatch Negative | Stable | ||||||||
Short term | P-2 | A-2 | F3 | ||||||||
Long term | Baa1 | BBB+ | BBB |
Triggers Below | At March 31, 2022 | ||||
BBB+/A-2/P-2 | $ | 41 | |||
BBB/A-3/P-3 | 247 | ||||
BBB- | 1,093 | ||||
BB+ and below | 494 |
ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) | |||||||||||||||||||||||||||||||||||
Revenues | Segment profit (loss) | Profit margin | |||||||||||||||||||||||||||||||||
Three months ended March 31 | 2022 | 2021 | V% | 2022 | 2021 | V% | 2022 | 2021 | V pts | ||||||||||||||||||||||||||
Aviation (GAAP) | $ | 5,603 | $ | 4,992 | 12 | % | $ | 908 | $ | 641 | 42 | % | 16.2 | % | 12.8 | % | 3.4pts | ||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (9) | 1 | 16 | 1 | |||||||||||||||||||||||||||||||
Aviation organic (Non-GAAP) | $ | 5,612 | $ | 4,991 | 12 | % | $ | 892 | $ | 640 | 39 | % | 15.9 | % | 12.8 | % | 3.1pts | ||||||||||||||||||
Healthcare (GAAP) | $ | 4,363 | $ | 4,308 | 1 | % | $ | 538 | $ | 698 | (23) | % | 12.3 | % | 16.2 | % | (3.9)pts | ||||||||||||||||||
Less: acquisitions | 66 | — | (29) | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (86) | — | (29) | (1) | |||||||||||||||||||||||||||||||
Healthcare organic (Non-GAAP) | $ | 4,383 | $ | 4,308 | 2 | % | $ | 595 | $ | 700 | (15) | % | 13.6 | % | 16.2 | % | (2.6)pts | ||||||||||||||||||
Renewable Energy (GAAP) | $ | 2,871 | $ | 3,248 | (12) | % | $ | (434) | $ | (234) | (86) | % | (15.1) | % | (7.2) | % | (7.9)pts | ||||||||||||||||||
Less: acquisitions | — | (11) | — | (4) | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (60) | 1 | 17 | 7 | |||||||||||||||||||||||||||||||
Renewable Energy organic (Non-GAAP) | $ | 2,931 | $ | 3,258 | (10) | % | $ | (451) | $ | (236) | (91) | % | (15.4) | % | (7.2) | % | (8.2)pts | ||||||||||||||||||
Power (GAAP) | $ | 3,501 | $ | 3,921 | (11) | % | $ | 63 | $ | (87) | F | 1.8 | % | (2.2) | % | 4.0pts | |||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | 155 | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (69) | (17) | (5) | (23) | |||||||||||||||||||||||||||||||
Power organic (Non-GAAP) | $ | 3,570 | $ | 3,782 | (6) | % | $ | 68 | $ | (64) | F | 1.9 | % | (1.7) | % | 3.6pts | |||||||||||||||||||
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, which includes translational and transactional impacts, as these activities can obscure underlying trends. |
ADJUSTED PROFIT AND PROFIT MARGIN (NON-GAAP) | Three months ended March 31 | ||||||||||
2022 | 2021 | V% | |||||||||
Total revenues (GAAP) | $ | 17,040 | $ | 17,071 | — | % | |||||
Less: Insurance revenues | 767 | 755 | |||||||||
Adjusted revenues (Non-GAAP) | $ | 16,272 | $ | 16,316 | — | % | |||||
Total costs and expenses (GAAP) | $ | 17,638 | $ | 17,506 | 1 | % | |||||
Less: Insurance cost and expenses | 543 | 618 | |||||||||
Less: interest and other financial charges | 390 | 485 | |||||||||
Less: non-operating benefit cost (income) | (137) | 430 | |||||||||
Less: restructuring & other(a) | 38 | 113 | |||||||||
Less: separation costs(a) | 119 | — | |||||||||
Less: Steam asset sale impairment(a) | 824 | — | |||||||||
Less: Russia and Ukraine charges(a) | 230 | — | |||||||||
Add: noncontrolling interests | 28 | 5 | |||||||||
Add: EFS benefit from taxes | (47) | (31) | |||||||||
Adjusted costs (Non-GAAP) | $ | 15,611 | $ | 15,834 | (1) | % | |||||
Other income (GAAP) | $ | 73 | $ | 673 | (89) | % | |||||
Less: gains (losses) on equity securities(a) | (219) | 347 | |||||||||
Less: restructuring & other(a) | 3 | 7 | |||||||||
Less: gains (losses) on purchases and sales of business interests(a) | 4 | 3 | |||||||||
Adjusted other income (Non-GAAP) | $ | 285 | $ | 317 | (10) | % | |||||
Profit (loss) (GAAP) | $ | (525) | $ | 238 | U | ||||||
Profit (loss) margin (GAAP) | (3.1) | % | 1.4 | % | (4.5)pts | ||||||
Adjusted profit (loss) (Non-GAAP) | $ | 946 | $ | 798 | 19 | % | |||||
Adjusted profit (loss) margin (Non-GAAP) | 5.8 | % | 4.9 | % | 0.9pts | ||||||
(a) See the Corporate and Other Consolidated Information sections for further information. | |||||||||||
We believe that adjusting profit to exclude the effects of items that are not closely associated with ongoing operations provides management and investors with a meaningful measure that increases the period-to-period comparability. Gains (losses) and restructuring and other items are impacted by the timing and magnitude of gains associated with dispositions, and the timing and magnitude of costs associated with restructuring and other activities. |
ADJUSTED EARNINGS (LOSS) (NON-GAAP) | Three months ended March 31 | ||||||||||
2022 | 2021 | V% | |||||||||
Earnings (loss) from continuing operations (GAAP)(a) | $ | (809) | $ | 20 | U | ||||||
Insurance earnings (pre-tax) | 227 | 142 | |||||||||
Tax effect on Insurance earnings | (49) | (31) | |||||||||
Less: Insurance earnings (net of tax) | 178 | 111 | |||||||||
Earnings (loss) excluding Insurance (Non-GAAP) | $ | (987) | $ | (91) | U | ||||||
Non-operating benefit (cost) income (pre-tax) (GAAP) | 137 | (430) | |||||||||
Tax effect on non-operating benefit (cost) income | (29) | 90 | |||||||||
Less: non-operating benefit (cost) income (net of tax) | 108 | (340) | |||||||||
Gains (losses) on purchases and sales of business interests (pre-tax)(a) | 4 | 3 | |||||||||
Tax effect on gains (losses) on purchases and sales of business interests | (1) | (1) | |||||||||
Less: gains (losses) on purchases and sales of business interests (net of tax) | 3 | 2 | |||||||||
Gains (losses) on equity securities (pre-tax)(a) | (219) | 347 | |||||||||
Tax effect on gains (losses) on equity securities(b)(c) | (20) | (118) | |||||||||
Less: gains (losses) on equity securities (net of tax) | (239) | 229 | |||||||||
Restructuring & other (pre-tax)(a) | (35) | (106) | |||||||||
Tax effect on restructuring & other | 8 | 22 | |||||||||
Less: restructuring & other (net of tax) | (27) | (84) | |||||||||
Separation costs (pre-tax)(a) | (119) | — | |||||||||
Tax effect on separation costs | (20) | — | |||||||||
Less: separation costs (net of tax) | (139) | — | |||||||||
Steam asset sale impairment (pre-tax)(a) | (824) | — | |||||||||
Tax effect on Steam asset sale impairment | 84 | — | |||||||||
Less: Steam asset sale impairment (net of tax) | (740) | — | |||||||||
Russia and Ukraine charges (pre-tax)(a) | (230) | — | |||||||||
Tax effect on Russia and Ukraine charges | 15 | — | |||||||||
Less: Russia and Ukraine charges (net of tax) | (215) | — | |||||||||
Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) | — | 2 | |||||||||
Less: Tax loss related to GECAS transaction | — | (44) | |||||||||
Adjusted earnings (loss) (Non-GAAP) | $ | 262 | $ | 142 | 85 | % | |||||
(a) See the Corporate section for further information. | |||||||||||
(b) Includes tax benefits available to offset the tax on gains in equity securities. | |||||||||||
(c) Includes related tax valuation allowances. | |||||||||||
ADJUSTED EARNINGS (LOSS) PER SHARE (EPS) (NON-GAAP) | Three months ended March 31 | ||||||||||
(In dollars) | 2022 | 2021 | V% | ||||||||
Earnings (loss) per share from continuing operations (GAAP)(a) | $ | (0.74) | $ | 0.02 | U | ||||||
Insurance earnings (pre-tax) | 0.21 | 0.13 | |||||||||
Tax effect on Insurance earnings | (0.04) | (0.03) | |||||||||
Less: Insurance earnings (net of tax) | 0.16 | 0.10 | |||||||||
Earnings (loss) per share excluding Insurance (Non-GAAP) | $ | (0.90) | $ | (0.08) | U | ||||||
Non-operating benefit (cost) income (pre-tax) (GAAP) | 0.12 | (0.39) | |||||||||
Tax effect on non-operating benefit (cost) income | (0.03) | 0.08 | |||||||||
Less: non-operating benefit (cost) income (net of tax) | 0.10 | (0.31) | |||||||||
Gains (losses) on purchases and sales of business interests (pre-tax)(a) | — | — | |||||||||
Tax effect on gains (losses) on purchases and sales of business interests | — | — | |||||||||
Less: gains (losses) on purchases and sales of business interests (net of tax) | — | — | |||||||||
Gains (losses) on equity securities (pre-tax)(a) | (0.20) | 0.32 | |||||||||
Tax effect on gains (losses) on equity securities(b)(c) | (0.02) | (0.11) | |||||||||
Less: gains (losses) on equity securities (net of tax) | (0.22) | 0.21 | |||||||||
Restructuring & other (pre-tax)(a) | (0.03) | (0.10) | |||||||||
Tax effect on restructuring & other | 0.01 | 0.02 | |||||||||
Less: restructuring & other (net of tax) | (0.02) | (0.08) | |||||||||
Separation costs (pre-tax)(a) | (0.11) | — | |||||||||
Tax effect on separation costs | (0.02) | — | |||||||||
Less: separation costs (net of tax) | (0.13) | — | |||||||||
Steam asset sale impairment (pre-tax)(a) | (0.75) | — | |||||||||
Tax effect on Steam asset sale impairment | 0.08 | — | |||||||||
Less: Steam asset sale impairment (net of tax) | (0.67) | — | |||||||||
Russia and Ukraine charges (pre-tax)(a) | (0.21) | — | |||||||||
Tax effect on Russia and Ukraine charges | 0.01 | — | |||||||||
Less: Russia and Ukraine charges (net of tax) | (0.20) | — | |||||||||
Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) | — | — | |||||||||
Less: Tax loss related to GECAS transaction | — | (0.04) | |||||||||
Adjusted earnings (loss) per share (Non-GAAP) | $ | 0.24 | $ | 0.13 | 85 | % | |||||
(a) See the Corporate section for further information. | |||||||||||
(b) Includes tax benefits available to offset the tax on gains in equity securities. | |||||||||||
(c) Includes related tax valuation allowances. | |||||||||||
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total. | |||||||||||
The service cost for our pension and other benefit plans are included in adjusted earnings*, which represents the ongoing cost of providing pension benefits to our employees. The components of non-operating benefit costs are mainly driven by capital allocation decisions and market performance. We believe the retained costs in Adjusted earnings* and Adjusted EPS* provides management and investors a useful measure to evaluate the performance of the total company and increases period-to-period comparability. We also use Adjusted EPS* as a performance metric at the company level for our annual executive incentive plan for 2022. |
STATEMENT OF EARNINGS (LOSS) (UNAUDITED) | Three months ended March 31 | |||||||
(In millions; per-share amounts in dollars) | 2022 | 2021 | ||||||
Sales of equipment | $ | 6,864 | $ | 7,971 | ||||
Sales of services | 9,408 | 8,345 | ||||||
Insurance revenues | 767 | 755 | ||||||
Total revenues (Note 8) | 17,040 | 17,071 | ||||||
Cost of equipment sold | 6,749 | 7,579 | ||||||
Cost of services sold | 5,704 | 4,958 | ||||||
Selling, general and administrative expenses | 3,651 | 2,894 | ||||||
Separation costs | 119 | — | ||||||
Research and development | 641 | 561 | ||||||
Interest and other financial charges | 406 | 500 | ||||||
Insurance losses, annuity benefits and other costs (Note 12) | 504 | 583 | ||||||
Non-operating benefit cost (income) | (137) | 430 | ||||||
Total costs and expenses | 17,638 | 17,506 | ||||||
Other income (Note 18) | 73 | 673 | ||||||
Earnings (loss) from continuing operations before income taxes | (525) | 238 | ||||||
Benefit (provision) for income taxes | (204) | (142) | ||||||
Earnings (loss) from continuing operations | (729) | 97 | ||||||
Earnings (loss) from discontinued operations, net of taxes (Note 2) | (286) | (2,894) | ||||||
Net earnings (loss) | (1,014) | (2,798) | ||||||
Less net earnings (loss) attributable to noncontrolling interests | 28 | 5 | ||||||
Net earnings (loss) attributable to the Company | (1,042) | (2,802) | ||||||
Preferred stock dividends | (52) | (72) | ||||||
Net earnings (loss) attributable to GE common shareholders | $ | (1,094) | $ | (2,874) | ||||
Amounts attributable to GE common shareholders | ||||||||
Earnings (loss) from continuing operations | $ | (729) | $ | 97 | ||||
Less net earnings (loss) attributable to noncontrolling interests, | ||||||||
continuing operations | 28 | 5 | ||||||
Earnings (loss) from continuing operations attributable to the Company | (757) | 92 | ||||||
Preferred stock dividends | (52) | (72) | ||||||
Earnings (loss) from continuing operations attributable | ||||||||
to GE common shareholders | (809) | 20 | ||||||
Earnings (loss) from discontinued operations attributable | ||||||||
to GE common shareholders | (286) | (2,894) | ||||||
Net earnings (loss) attributable to GE common shareholders | $ | (1,094) | $ | (2,874) | ||||
Earnings (loss) per share from continuing operations (Note 17) | ||||||||
Diluted earnings (loss) per share | $ | (0.74) | $ | 0.02 | ||||
Basic earnings (loss) per share | $ | (0.74) | $ | 0.02 | ||||
Net earnings (loss) per share (Note 17) | ||||||||
Diluted earnings (loss) per share | $ | (0.99) | $ | (2.61) | ||||
Basic earnings (loss) per share | $ | (0.99) | $ | (2.62) |
STATEMENT OF FINANCIAL POSITION (UNAUDITED) | ||||||||
(In millions, except share amounts) | March 31, 2022 | December 31, 2021 | ||||||
Cash, cash equivalents and restricted cash(a) | $ | 12,842 | $ | 15,770 | ||||
Investment securities (Note 3) | 10,779 | 12,297 | ||||||
Current receivables (Note 4) | 16,050 | 15,620 | ||||||
Inventories, including deferred inventory costs (Note 5) | 16,570 | 15,847 | ||||||
Current contract assets (Note 9) | 4,246 | 4,881 | ||||||
All other current assets (Note 10) | 2,065 | 1,933 | ||||||
Assets of businesses held for sale (Note 2) | 747 | — | ||||||
Current assets | 63,299 | 66,348 | ||||||
Investment securities (Note 3) | 39,845 | 42,209 | ||||||
Property, plant and equipment – net (Note 6) | 15,036 | 15,609 | ||||||
Goodwill (Note 7) | 26,047 | 26,182 | ||||||
Other intangible assets – net (Note 7) | 8,290 | 9,330 | ||||||
Contract and other deferred assets (Note 9) | 6,159 | 6,124 | ||||||
All other assets (Note 10) | 19,767 | 19,040 | ||||||
Deferred income taxes (Note 15) | 10,583 | 10,855 | ||||||
Assets of discontinued operations (Note 2) | 2,935 | 3,177 | ||||||
Total assets | $ | 191,961 | $ | 198,874 | ||||
Short-term borrowings (Note 11) | $ | 4,985 | $ | 4,361 | ||||
Accounts payable and equipment project accruals | 16,206 | 16,243 | ||||||
Progress collections and deferred income (Note 9) | 16,206 | 17,372 | ||||||
All other current liabilities (Note 14) | 14,216 | 13,977 | ||||||
Liabilities of businesses held for sale (Note 2) | 1,732 | — | ||||||
Current liabilities | 53,344 | 51,953 | ||||||
Deferred income (Note 9) | 1,953 | 1,989 | ||||||
Long-term borrowings (Note 11) | 28,649 | 30,824 | ||||||
Insurance liabilities and annuity benefits (Note 12) | 33,626 | 37,166 | ||||||
Non-current compensation and benefits | 20,636 | 21,202 | ||||||
All other liabilities (Note 14) | 12,477 | 13,240 | ||||||
Liabilities of discontinued operations (Note 2) | 993 | 887 | ||||||
Total liabilities | 151,678 | 157,262 | ||||||
Preferred stock (5,939,875 shares outstanding at both March 31, 2022 and December 31, 2021) | 6 | 6 | ||||||
Common stock (1,100,664,978 and 1,099,027,213 shares outstanding at March 31, 2022 and December 31, 2021, respectively) | 15 | 15 | ||||||
Accumulated other comprehensive income (loss) – net attributable to GE | 1,341 | 1,582 | ||||||
Other capital | 34,391 | 34,691 | ||||||
Retained earnings | 83,927 | 85,110 | ||||||
Less common stock held in treasury | (80,673) | (81,093) | ||||||
Total GE shareholders’ equity | 39,005 | 40,310 | ||||||
Noncontrolling interests (Note 16) | 1,278 | 1,302 | ||||||
Total equity | 40,283 | 41,612 | ||||||
Total liabilities and equity | $ | 191,961 | $ | 198,874 |
STATEMENT OF CASH FLOWS (UNAUDITED) | Three months ended March 31 | |||||||
(In millions) | 2022 | 2021 | ||||||
Net earnings (loss) | $ | (1,014) | $ | (2,798) | ||||
(Earnings) loss from discontinued operations | 286 | 2,894 | ||||||
Adjustments to reconcile net earnings (loss) | ||||||||
to cash from (used for) operating activities | ||||||||
Depreciation and amortization of property, plant and equipment | 460 | 452 | ||||||
Amortization of intangible assets (Note 7) | 1,025 | 301 | ||||||
(Gains) losses on purchases and sales of business interests (Note 18) | (15) | (3) | ||||||
(Gains) losses on equity securities (Note 18) | 214 | (296) | ||||||
Principal pension plans cost (Note 13) | 143 | 658 | ||||||
Principal pension plans employer contributions (Note 13) | (79) | (74) | ||||||
Other postretirement benefit plans (net) (Note 13) | (329) | (289) | ||||||
Provision (benefit) for income taxes (Note 15) | 204 | 142 | ||||||
Cash recovered (paid) during the year for income taxes | (192) | (322) | ||||||
Changes in operating working capital: | ||||||||
Decrease (increase) in current receivables | (749) | 946 | ||||||
Decrease (increase) in inventories, including deferred inventory costs | (990) | (722) | ||||||
Decrease (increase) in current contract assets | 442 | (35) | ||||||
Increase (decrease) in accounts payable and equipment project accruals | 75 | (349) | ||||||
Increase (decrease) in progress collections and current deferred income | 246 | (425) | ||||||
Financial services derivatives net collateral/settlement | (155) | (1,737) | ||||||
All other operating activities | (103) | (982) | ||||||
Cash from (used for) operating activities – continuing operations | (535) | (2,640) | ||||||
Cash from (used for) operating activities – discontinued operations | (21) | 680 | ||||||
Cash from (used for) operating activities | (556) | (1,959) | ||||||
Additions to property, plant and equipment | (340) | (332) | ||||||
Dispositions of property, plant and equipment | 30 | 34 | ||||||
Additions to internal-use software | (23) | (24) | ||||||
Proceeds from principal business dispositions | — | 1 | ||||||
Sales of retained ownership interests | 1,302 | 735 | ||||||
Net (purchases) dispositions of insurance investment securities | (1,344) | (712) | ||||||
All other investing activities | (82) | 1,144 | ||||||
Cash from (used for) investing activities – continuing operations | (456) | 847 | ||||||
Cash from (used for) investing activities – discontinued operations | 12 | (646) | ||||||
Cash from (used for) investing activities | (444) | 202 | ||||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | 47 | (319) | ||||||
Newly issued debt (maturities longer than 90 days) | — | 314 | ||||||
Repayments and other debt reductions (maturities longer than 90 days) | (1,268) | (1,513) | ||||||
Dividends paid to shareholders | (140) | (148) | ||||||
All other financing activities | (98) | 57 | ||||||
Cash from (used for) financing activities – continuing operations | (1,459) | (1,608) | ||||||
Cash from (used for) financing activities – discontinued operations | — | 3 | ||||||
Cash from (used for) financing activities | (1,459) | (1,605) | ||||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (75) | (131) | ||||||
Increase (decrease) in cash, cash equivalents and restricted cash | (2,534) | (3,494) | ||||||
Cash, cash equivalents and restricted cash at beginning of year | 16,859 | 37,608 | ||||||
Cash, cash equivalents and restricted cash at March 31 | 14,325 | 34,115 | ||||||
Less cash, cash equivalents and restricted cash of discontinued operations at March 31 | 688 | 625 | ||||||
Cash, cash equivalents and restricted cash of continuing operations at March 31 | $ | 13,636 | $ | 33,490 | ||||
STATEMENT OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) | Three months ended March 31 | |||||||
(In millions, net of tax) | 2022 | 2021 | ||||||
Net earnings (loss) | $ | (1,014) | $ | (2,798) | ||||
Less net earnings (loss) attributable to noncontrolling interests | 28 | 5 | ||||||
Net earnings (loss) attributable to the Company | $ | (1,042) | $ | (2,802) | ||||
Currency translation adjustments | (166) | 110 | ||||||
Benefit plans | 240 | 705 | ||||||
Investment securities and cash flow hedges | (317) | 44 | ||||||
Less: other comprehensive income (loss) attributable to noncontrolling interests | (2) | 3 | ||||||
Other comprehensive income (loss) attributable to the Company | $ | (241) | $ | 856 | ||||
Comprehensive income (loss) | $ | (1,257) | $ | (1,939) | ||||
Less: comprehensive income (loss) attributable to noncontrolling interests | 26 | 8 | ||||||
Comprehensive income (loss) attributable to the Company | $ | (1,283) | $ | (1,947) | ||||
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) | Three months ended March 31 | |||||||
(In millions) | 2022 | 2021 | ||||||
Preferred stock issued | $ | 6 | $ | 6 | ||||
Common stock issued | $ | 15 | $ | 702 | ||||
Beginning balance | 1,582 | (9,749) | ||||||
Currency translation adjustments | (162) | 108 | ||||||
Benefit plans | 238 | 704 | ||||||
Investment securities and cash flow hedges | (317) | 44 | ||||||
Accumulated other comprehensive income (loss) | $ | 1,341 | $ | (8,893) | ||||
Beginning balance | 34,691 | 34,307 | ||||||
Gains (losses) on treasury stock dispositions | (396) | (384) | ||||||
Stock-based compensation | 91 | 106 | ||||||
Other changes | 5 | 14 | ||||||
Other capital | $ | 34,391 | $ | 34,042 | ||||
Beginning balance | 85,110 | 92,247 | ||||||
Net earnings (loss) attributable to the Company | (1,042) | (2,802) | ||||||
Dividends and other transactions with shareholders | (141) | (168) | ||||||
Changes in accounting | — | — | ||||||
Retained earnings | $ | 83,927 | $ | 89,276 | ||||
Beginning balance | (81,093) | (81,961) | ||||||
Purchases | (39) | (38) | ||||||
Dispositions | 459 | 450 | ||||||
Common stock held in treasury | $ | (80,673) | $ | (81,548) | ||||
GE shareholders' equity balance | 39,005 | 33,585 | ||||||
Noncontrolling interests balance | 1,278 | 1,568 | ||||||
Total equity balance at March 31 | $ | 40,283 | $ | 35,153 |
ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE | March 31, 2022 | December 31, 2021 | ||||||
Current receivables, inventories and contract assets | $ | 516 | $ | — | ||||
Property, plant and equipment and intangible assets - net | 186 | — | ||||||
All other assets | 45 | — | ||||||
Assets of businesses held for sale | $ | 747 | $ | — | ||||
Progress collections and deferred income | $ | 1,280 | $ | — | ||||
Accounts payable and equipment project accruals and all other liabilities | 452 | — | ||||||
Liabilities of businesses held for sale | $ | 1,732 | $ | — |
RESULTS OF DISCONTINUED OPERATIONS | Three months ended March 31 | ||||||||||
2022 | 2021 | ||||||||||
Operations | |||||||||||
Cost of equipment and services sold | $ | — | $ | (368) | |||||||
Other income, costs and expenses | (250) | 247 | |||||||||
Earnings (loss) of discontinued operations before income taxes | $ | (250) | $ | (121) | |||||||
Benefit (provision) for income taxes | (18) | (29) | |||||||||
Earnings (loss) of discontinued operations, net of taxes(a) | $ | (268) | $ | (149) | |||||||
Disposal | |||||||||||
Gain (loss) on disposal before income taxes | $ | (23) | $ | (2,702) | |||||||
Benefit (provision) for income taxes | 5 | (43) | |||||||||
Gain (loss) on disposal, net of taxes | $ | (18) | $ | (2,745) | |||||||
Earnings (loss) from discontinued operations, net of taxes | $ | (286) | $ | (2,894) |
ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS | March 31, 2022 | December 31, 2021 | ||||||
Cash, cash equivalents and restricted cash | $ | 688 | $ | 736 | ||||
Financing receivables held for sale (Polish mortgage portfolio) | 1,592 | 1,799 | ||||||
Property, plant, and equipment - net | 84 | 88 | ||||||
All other assets | 571 | 554 | ||||||
Assets of discontinued operations | $ | 2,935 | $ | 3,177 | ||||
Accounts payable and all other liabilities | $ | 993 | $ | 887 | ||||
Liabilities of discontinued operations | $ | 993 | $ | 887 |
March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||||||||||||
Equity and note (AerCap) | $ | — | $ | — | $ | — | $ | 6,536 | $ | — | $ | — | $ | — | $ | 8,287 | |||||||||||||
Equity (Baker Hughes) | — | — | — | 4,244 | — | — | — | 4,010 | |||||||||||||||||||||
Current investment securities | $ | — | $ | — | $ | — | $ | 10,779 | $ | — | $ | — | $ | — | $ | 12,297 | |||||||||||||
Debt | |||||||||||||||||||||||||||||
U.S. corporate | $ | 26,073 | $ | 2,838 | $ | (370) | $ | 28,541 | $ | 25,182 | $ | 5,502 | $ | (33) | $ | 30,652 | |||||||||||||
Non-U.S. corporate | 2,423 | 113 | (39) | 2,497 | 2,361 | 343 | (4) | 2,701 | |||||||||||||||||||||
State and municipal | 2,654 | 326 | (49) | 2,930 | 2,639 | 573 | (6) | 3,205 | |||||||||||||||||||||
Mortgage and asset-backed | 4,098 | 35 | (121) | 4,012 | 3,950 | 117 | (47) | 4,019 | |||||||||||||||||||||
Government and agencies | 1,487 | 46 | (47) | 1,486 | 1,086 | 104 | (2) | 1,188 | |||||||||||||||||||||
Other equity | 379 | — | — | 379 | 443 | — | — | 443 | |||||||||||||||||||||
Non-current investment securities | $ | 37,114 | $ | 3,357 | $ | (626) | $ | 39,845 | $ | 35,662 | $ | 6,639 | $ | (92) | $ | 42,209 | |||||||||||||
Amortized cost | Estimated fair value | |||||||
Within one year | $ | 827 | $ | 832 | ||||
After one year through five years | 3,856 | 4,006 | ||||||
After five years through ten years | 6,323 | 6,853 | ||||||
After ten years | 21,631 | 23,763 |
CURRENT RECEIVABLES | March 31, 2022 | December 31, 2021 | ||||||
Customer receivables | $ | 13,505 | $ | 13,079 | ||||
Non-income based tax receivables | 1,311 | 1,222 | ||||||
Revenue sharing program receivables(a) | 1,256 | 1,166 | ||||||
Supplier advances | 441 | 596 | ||||||
Receivables from disposed businesses | 148 | 148 | ||||||
Other sundry receivables | 488 | 483 | ||||||
Allowance for credit losses(b) | (1,099) | (1,074) | ||||||
Total current receivables | $ | 16,050 | $ | 15,620 |
2022 | 2021 | ||||||||||||||||
Third Parties | WCS | Third Parties | |||||||||||||||
Balance at January 1 | $ | 161 | $ | 3,618 | $ | 2,992 | |||||||||||
GE businesses sales to WCS | — | 7,044 | — | ||||||||||||||
GE businesses sales to third parties(a) | 351 | — | 124 | ||||||||||||||
WCS sales to third parties | — | (3,826) | 3,826 | ||||||||||||||
Collections and other | (367) | (3,765) | (4,360) | ||||||||||||||
Reclassification from long-term customer receivables | 36 | 63 | — | ||||||||||||||
Balance at March 31 | $ | 181 | $ | 3,134 | $ | 2,582 |
LONG-TERM RECEIVABLES | March 31, 2022 | December 31, 2021 | ||||||
Long-term customer receivables(a) | $ | 433 | $ | 521 | ||||
Financing receivables | 559 | 592 | ||||||
Supplier advances | 289 | 309 | ||||||
Non-income based tax receivables | 272 | 245 | ||||||
Receivables from disposed businesses | 150 | 150 | ||||||
Sundry receivables | 441 | 440 | ||||||
Allowance for credit losses | (172) | (160) | ||||||
Total long-term receivables | $ | 1,973 | $ | 2,097 |
March 31, 2022 | December 31, 2021 | |||||||
Raw materials and work in process | $ | 9,155 | $ | 8,710 | ||||
Finished goods | 5,307 | 4,927 | ||||||
Deferred inventory costs(a) | 2,108 | 2,210 | ||||||
Inventories, including deferred inventory costs | $ | 16,570 | $ | 15,847 |
March 31, 2022 | December 31, 2021 | |||||||
Original cost | $ | 31,531 | $ | 31,904 | ||||
Less accumulated depreciation and amortization | (18,935) | (18,901) | ||||||
2,440 | 2,606 | |||||||
Property, plant and equipment – net | $ | 15,036 | $ | 15,609 |
GOODWILL | January 1, 2022 | Currency exchange and other | Balance at March 31, 2022 | ||||||||
Aviation | $ | 9,013 | $ | (71) | $ | 8,942 | |||||
Healthcare | 12,879 | (39) | 12,840 | ||||||||
Renewable Energy | 3,231 | 62 | 3,294 | ||||||||
Power | 145 | — | 144 | ||||||||
Corporate(a) | 914 | (87) | 827 | ||||||||
Total | $ | 26,182 | $ | (135) | $ | 26,047 |
EQUIPMENT & SERVICES REVENUES | |||||||||||||||||||||||
Three months ended March 31 | 2022 | 2021 | |||||||||||||||||||||
Equipment | Services | Total | Equipment | Services | Total | ||||||||||||||||||
Aviation | $ | 1,654 | $ | 3,949 | $ | 5,603 | $ | 1,847 | $ | 3,145 | $ | 4,992 | |||||||||||
Healthcare | 2,256 | 2,107 | 4,363 | 2,227 | 2,081 | 4,308 | |||||||||||||||||
Renewable Energy | 2,173 | 698 | 2,871 | 2,844 | 404 | 3,248 | |||||||||||||||||
Power | 965 | 2,536 | 3,501 | 1,241 | 2,679 | 3,921 | |||||||||||||||||
Total segment revenues | $ | 7,048 | $ | 9,290 | $ | 16,337 | $ | 8,159 | $ | 8,309 | $ | 16,468 |
REVENUES | Three months ended March 31 | ||||||||||
2022 | 2021 | ||||||||||
Commercial Engines & Services | $ | 3,853 | $ | 3,354 | |||||||
Military | 1,036 | 956 | |||||||||
Systems & Other | 714 | 682 | |||||||||
Aviation | $ | 5,603 | $ | 4,992 | |||||||
Healthcare Systems | $ | 3,875 | $ | 3,825 | |||||||
Pharmaceutical Diagnostics | 487 | 482 | |||||||||
Healthcare | $ | 4,363 | $ | 4,308 | |||||||
Onshore Wind | $ | 1,906 | $ | 2,118 | |||||||
Grid Solutions equipment and services | 668 | 795 | |||||||||
Hydro, Offshore Wind and Hybrid Solutions | 297 | 335 | |||||||||
Renewable Energy | $ | 2,871 | $ | 3,248 | |||||||
Gas Power | $ | 2,489 | $ | 2,829 | |||||||
Steam Power | 636 | 706 | |||||||||
Power Conversion, Nuclear and other | 377 | 385 | |||||||||
Power | $ | 3,501 | $ | 3,921 | |||||||
Total segment revenues | 16,337 | 16,468 | |||||||||
Corporate | 702 | 603 | |||||||||
Total revenues | $ | 17,040 | $ | 17,071 | |||||||
March 31, 2022 | Aviation | Healthcare | Renewable Energy | Power | Corporate | Total | ||||||||||||||
Revenues in excess of billings | $ | 2,289 | $ | — | $ | — | $ | 5,394 | $ | — | $ | 7,683 | ||||||||
Billings in excess of revenues | (5,852) | — | — | (1,662) | — | (7,514) | ||||||||||||||
Long-term service agreements | $ | (3,564) | $ | — | $ | — | $ | 3,732 | $ | — | $ | 168 | ||||||||
Short-term and other service agreements | 383 | 172 | 112 | 94 | 16 | 778 | ||||||||||||||
Equipment contract revenues | 35 | 303 | 1,231 | 1,513 | 217 | 3,300 | ||||||||||||||
Current contract assets | $ | (3,145) | $ | 475 | $ | 1,343 | $ | 5,339 | $ | 233 | $ | 4,246 | ||||||||
Nonrecurring engineering costs | 2,516 | 30 | 24 | 10 | — | 2,580 | ||||||||||||||
Customer advances and other | 2,625 | 158 | — | 796 | — | 3,579 | ||||||||||||||
Non-current contract and other deferred assets | $ | 5,141 | $ | 189 | $ | 24 | $ | 806 | $ | — | $ | 6,159 | ||||||||
Total contract and other deferred assets | $ | 1,996 | $ | 664 | $ | 1,367 | $ | 6,145 | $ | 233 | $ | 10,405 |
December 31, 2021 | Aviation | Healthcare | Renewable Energy | Power | Corporate | Total | ||||||||||||||
Revenues in excess of billings | $ | 2,478 | $ | — | $ | — | $ | 5,495 | $ | — | $ | 7,972 | ||||||||
Billings in excess of revenues | (5,731) | — | — | (1,614) | — | (7,346) | ||||||||||||||
Long-term service agreements | $ | (3,253) | $ | — | $ | — | $ | 3,880 | $ | — | $ | 627 | ||||||||
Short-term and other service agreements | 340 | 166 | 87 | 80 | 20 | 692 | ||||||||||||||
Equipment contract revenues | 33 | 287 | 1,297 | 1,709 | 236 | 3,562 | ||||||||||||||
Current contract assets | $ | (2,881) | $ | 453 | $ | 1,384 | $ | 5,669 | $ | 256 | $ | 4,881 | ||||||||
Nonrecurring engineering costs | 2,479 | 31 | 28 | 12 | — | 2,550 | ||||||||||||||
Customer advances and other | 2,620 | 154 | — | 801 | — | 3,574 | ||||||||||||||
Non-current contract and other deferred assets | $ | 5,099 | $ | 184 | $ | 28 | $ | 813 | $ | — | $ | 6,124 | ||||||||
Total contract and other deferred assets | $ | 2,218 | $ | 637 | $ | 1,412 | $ | 6,482 | $ | 256 | $ | 11,005 |
March 31, 2022 | Aviation | Healthcare | Renewable Energy | Power | Corporate | Total | ||||||||||||||
Progress collections on equipment contracts | $ | 112 | $ | — | $ | 1,921 | $ | 3,785 | $ | — | $ | 5,818 | ||||||||
Other progress collections | 4,654 | 538 | 2,795 | 386 | 129 | 8,502 | ||||||||||||||
Current deferred income | 144 | 1,396 | 226 | 12 | 107 | 1,886 | ||||||||||||||
Progress collections and deferred income | $ | 4,910 | $ | 1,934 | $ | 4,943 | $ | 4,184 | $ | 236 | $ | 16,206 | ||||||||
Non-current deferred income | 1,099 | 585 | 169 | 99 | 2 | 1,953 | ||||||||||||||
Total Progress collections and deferred income | $ | 6,009 | $ | 2,519 | $ | 5,112 | $ | 4,283 | $ | 237 | $ | 18,159 |
December 31, 2021 | ||||||||||||||||||||
Progress collections on equipment contracts | $ | 142 | $ | — | $ | 1,843 | $ | 5,198 | $ | — | $ | 7,183 | ||||||||
Other progress collections | 4,469 | 522 | 2,866 | 385 | 111 | 8,354 | ||||||||||||||
Current deferred income | 170 | 1,336 | 198 | 33 | 99 | 1,835 | ||||||||||||||
Progress collections and deferred income | $ | 4,782 | $ | 1,858 | $ | 4,907 | $ | 5,615 | $ | 210 | $ | 17,372 | ||||||||
Non-current deferred income | 1,090 | 592 | 194 | 110 | 3 | 1,989 | ||||||||||||||
Total Progress collections and deferred income | $ | 5,871 | $ | 2,450 | $ | 5,101 | $ | 5,725 | $ | 213 | $ | 19,361 |
March 31, 2022 | December 31, 2021 | |||||||
Current portion of long-term borrowings | ||||||||
Senior notes issued by GE | $ | 1,228 | $ | 1,249 | ||||
Senior and subordinated notes assumed by GE | 2,516 | 1,645 | ||||||
Senior notes issued by GE Capital | 1,099 | 1,370 | ||||||
Other | 142 | 97 | ||||||
Total short-term borrowings | $ | 4,985 | $ | 4,361 | ||||
Senior notes issued by GE | $ | 5,232 | $ | 5,373 | ||||
Senior and subordinated notes assumed by GE | 10,196 | 11,306 | ||||||
Senior notes issued by GE Capital | 12,348 | 13,274 | ||||||
Other | 873 | 870 | ||||||
Total long-term borrowings | $ | 28,649 | $ | 30,824 | ||||
Total borrowings | $ | 33,633 | $ | 35,186 |
March 31, 2022 | Long-term care | Structured settlement annuities & life | Other contracts | Other adjustments(a) | Total | ||||||||||||
Future policy benefit reserves | $ | 17,112 | $ | 8,811 | $ | 191 | $ | — | $ | 26,114 | |||||||
Claim reserves | 4,526 | 267 | 551 | — | 5,344 | ||||||||||||
Investment contracts | — | 933 | 950 | — | 1,883 | ||||||||||||
Unearned premiums and other | 12 | 187 | 86 | — | 285 | ||||||||||||
Total | $ | 21,650 | $ | 10,198 | $ | 1,778 | $ | — | $ | 33,626 |
December 31, 2021 | |||||||||||||||||
Future policy benefit reserves | $ | 17,097 | $ | 8,902 | $ | 188 | $ | 3,394 | $ | 29,581 | |||||||
Claim reserves | 4,546 | 258 | 585 | — | 5,389 | ||||||||||||
Investment contracts | — | 955 | 954 | — | 1,909 | ||||||||||||
Unearned premiums and other | 15 | 184 | 89 | — | 287 | ||||||||||||
Total | $ | 21,658 | $ | 10,299 | $ | 1,815 | $ | 3,394 | $ | 37,166 |
PRINCIPAL PENSION PLANS | Three months ended March 31 | |||||||
2022 | 2021 | |||||||
Service cost for benefits earned | $ | 49 | $ | 64 | ||||
Prior service cost amortization | 2 | 7 | ||||||
Expected return on plan assets | (786) | (763) | ||||||
Interest cost on benefit obligations | 517 | 486 | ||||||
Net actuarial loss amortization | 361 | 864 | ||||||
Benefit plans cost | $ | 143 | $ | 658 |
Three months ended March 31 | ||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dividends per share in dollars) | 2022 | 2021 | ||||||
Beginning balance | $ | (4,562) | $ | (4,386) | ||||
AOCI before reclasses – net of taxes of $94 and $(57) | (166) | 110 | ||||||
Reclasses from AOCI – net of taxes of $— and $— | — | — | ||||||
AOCI | (166) | 110 | ||||||
Less AOCI attributable to noncontrolling interests | (4) | 2 | ||||||
Currency translation adjustments AOCI | $ | (4,724) | $ | (4,278) | ||||
Beginning balance | $ | 3,646 | $ | (5,395) | ||||
AOCI before reclasses – net of taxes of $25 and $(47) | 54 | 16 | ||||||
Reclasses from AOCI – net of taxes of $55 and $194 | 186 | 689 | ||||||
AOCI | 240 | 705 | ||||||
Less AOCI attributable to noncontrolling interests | 2 | 1 | ||||||
Benefit plans AOCI | $ | 3,884 | $ | (4,691) | ||||
Beginning balance | $ | 2,498 | $ | 32 | ||||
AOCI before reclasses – net of taxes of $(88) and $(3)(a) | (312) | 10 | ||||||
Reclasses from AOCI – net of taxes of $1 and $14 | (5) | 34 | ||||||
AOCI | (317) | 44 | ||||||
Investment securities and cash flow hedges AOCI | $ | 2,181 | $ | 76 | ||||
AOCI at March 31 | $ | 1,341 | $ | (8,893) | ||||
Dividends declared per common share | $ | 0.08 | $ | 0.08 |
Three months ended March 31 | 2022 | 2021 | |||||||||||||||
(Earnings for per-share calculation, shares in millions, per-share amounts in dollars) | Diluted | Basic | Diluted | Basic | |||||||||||||
Earnings (loss) from continuing operations | $ | (757) | $ | (757) | $ | 90 | $ | 92 | |||||||||
Preferred stock dividends | (52) | (52) | (72) | (72) | |||||||||||||
Accretion of redeemable noncontrolling interests, net of tax(a) | — | — | 2 | 2 | |||||||||||||
Earnings (loss) from continuing operations attributable to common shareholders | (809) | (809) | 20 | 22 | |||||||||||||
Earnings (loss) from discontinued operations | (286) | (286) | (2,897) | (2,894) | |||||||||||||
Net earnings (loss) attributable to GE common shareholders | (1,094) | (1,094) | (2,874) | (2,872) | |||||||||||||
Shares of GE common stock outstanding | 1,100 | 1,100 | 1,096 | 1,096 | |||||||||||||
Employee compensation-related shares (including stock options) | — | — | 4 | — | |||||||||||||
Total average equivalent shares | 1,100 | 1,100 | 1,101 | 1,096 | |||||||||||||
Earnings per share from continuing operations | $ | (0.74) | $ | (0.74) | $ | 0.02 | $ | 0.02 | |||||||||
Earnings (loss) per share from discontinued operations | (0.26) | (0.26) | (2.63) | (2.64) | |||||||||||||
Net earnings (loss) per share | (0.99) | (0.99) | (2.61) | (2.62) | |||||||||||||
Potentially dilutive securities(b) | 43 | 48 |
Three months ended March 31 | ||||||||
2022 | 2021 | |||||||
Purchases and sales of business interests | $ | 15 | $ | 3 | ||||
Licensing and royalty income | 64 | 48 | ||||||
Equity method income | 41 | (20) | ||||||
Net interest and investment income (loss)(a) | (132) | 446 | ||||||
Other items | 84 | 196 | ||||||
Total other income | $ | 73 | $ | 673 |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||
Carrying amount (net) | Estimated fair value | Carrying amount (net) | Estimated fair value | |||||||||||||||||
Assets | Loans and other receivables | $ | 2,561 | $ | 2,598 | $ | 2,706 | $ | 2,853 | |||||||||||
Liabilities | Borrowings (Note 11) | $ | 33,633 | $ | 36,586 | $ | 35,186 | $ | 41,207 | |||||||||||
Investment contracts (Note 12) | 1,883 | 2,122 | 1,909 | 2,282 |
FAIR VALUE OF DERIVATIVES | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||
Gross Notional | All other assets | All other liabilities | Gross Notional | All other assets | All other liabilities | ||||||||||||||||||
Interest rate contracts | $ | 1,473 | $ | 47 | $ | 3 | $ | 2,071 | $ | 75 | $ | 4 | |||||||||||
Currency exchange contracts | 6,420 | 139 | 192 | 7,214 | 114 | 122 | |||||||||||||||||
Derivatives accounted for as hedges | $ | 7,893 | $ | 186 | $ | 195 | $ | 9,285 | $ | 188 | $ | 126 | |||||||||||
Interest rate contracts | $ | 155 | $ | 6 | $ | — | $ | 1,369 | $ | 5 | $ | 1 | |||||||||||
Currency exchange contracts | 63,817 | 1,123 | 1,236 | 64,097 | 794 | 756 | |||||||||||||||||
Other contracts | 2,239 | 389 | 28 | 1,674 | 387 | 10 | |||||||||||||||||
Derivatives not accounted for as hedges | $ | 66,211 | $ | 1,518 | $ | 1,264 | $ | 67,140 | $ | 1,186 | $ | 767 | |||||||||||
Gross derivatives | $ | 74,104 | $ | 1,704 | $ | 1,459 | $ | 76,425 | $ | 1,374 | $ | 893 | |||||||||||
Netting and credit adjustments | $ | (975) | $ | (978) | $ | (637) | $ | (639) | |||||||||||||||
Cash collateral adjustments | — | (87) | (54) | (42) | |||||||||||||||||||
Net derivatives recognized in statement of financial position | $ | 729 | $ | 394 | $ | 684 | $ | 212 | |||||||||||||||
Net accrued interest | $ | 3 | $ | 10 | $ | 10 | $ | 5 | |||||||||||||||
Securities held as collateral | (2) | — | (2) | — | |||||||||||||||||||
Net amount | $ | 731 | $ | 403 | $ | 691 | $ | 217 |
Gain (loss) recognized in AOCI for the three months ended March 31 | ||||||||
2022 | 2021 | |||||||
Cash flow hedges(a) | $ | (5) | $ | 36 | ||||
Net investment hedges(b) | 112 | 272 |
Three months ended March 31, 2022 | Three months ended March 31, 2021 | ||||||||||||||||||||||||||||
Revenues | Interest Expense | SG&A | Other(a) | Revenues | Interest Expense | SG&A | Other(a) | ||||||||||||||||||||||
$ | 17,040 | $ | 406 | $ | 3,651 | $ | 12,526 | $ | 17,071 | $ | 500 | $ | 2,894 | $ | 13,211 | ||||||||||||||
Effect of cash flow hedges | $ | 3 | $ | (7) | $ | — | $ | (21) | $ | 7 | $ | (8) | $ | — | $ | (32) | |||||||||||||
Hedged items | 78 | 1,843 | |||||||||||||||||||||||||||
Derivatives designated as hedging instruments | (87) | (1,899) | |||||||||||||||||||||||||||
Effect of fair value hedges | $ | (9) | $ | (56) | |||||||||||||||||||||||||
Interest rate contracts(b) | $ | 1 | $ | 20 | $ | 1 | $ | (9) | $ | (1) | |||||||||||||||||||
Currency exchange contracts | 1 | (68) | (79) | 59 | 342 | ||||||||||||||||||||||||
Other | (37) | 4 | 55 | 19 | |||||||||||||||||||||||||
Effect of derivatives not designated as hedges | $ | 1 | $ | — | $ | (105) | $ | (55) | $ | 1 | $ | (9) | $ | 114 | $ | 359 |
Exhibit 10(d). Amendment No. 2, dated as of March 15, 2022, to the Employment Agreement by and between H. Lawrence Culp, Jr. and General Electric Company, dated as of October 1, 2018 (Incorporated by reference to Exhibit 10.1 to GE's Current Report on Form 8-K, dated March 17, 2022 (Commission file number 001-00035)). | |||||
Exhibit 11. Computation of Per Share Earnings. Data is provided in Note 17 of this Report. | |||||
Exhibit 32. Certification Pursuant to 18 U.S.C. Section 1350. | |||||
Exhibit 101. The following materials from General Electric Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in XBRL (eXtensible Business Reporting Language); (i) Statement of Earnings (Loss) for the three months ended March 31, 2022 and 2021, (ii) Statement of Financial Position at March 31, 2022 and December 31, 2021, (iii) Statement of Cash Flows for the three months ended March 31, 2022 and 2021, (iv) Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, 2022 and 2021, (v) Statement of Changes in Shareholders' Equity for the three months ended March 31, 2022 and 2021, and (vi) Notes to Consolidated Financial Statements. | |||||
Exhibit 104. Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||
FORM 10-Q CROSS REFERENCE INDEX | Page(s) | |||||||||||||
Part I – FINANCIAL INFORMATION | ||||||||||||||
Item 1. | Financial Statements | 20-36 | ||||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 4-19 | ||||||||||||
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 13, 35 | ||||||||||||
Item 4. | Controls and Procedures | |||||||||||||
Part II – OTHER INFORMATION | ||||||||||||||
Item 1. | Legal Proceedings | 35-36 | ||||||||||||
Item 1A. | Risk Factors | |||||||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||||||||
Item 3. | Defaults Upon Senior Securities | Not applicable | ||||||||||||
Item 4. | Mine Safety Disclosures | Not applicable | ||||||||||||
Item 5. | Other Information | Not applicable | ||||||||||||
Item 6. | Exhibits | |||||||||||||
Signatures |
April 26, 2022 | /s/ Thomas S. Timko | |||||||
Date | Thomas S. Timko Vice President, Chief Accounting Officer and Controller Principal Accounting Officer |
Grant Date | Option Shares Granted | Option Exercise Price* | Option Expiration Date | Vesting Schedule | |||||||||||||
Number of Option Shares | Vesting Date | ||||||||||||||||
March 1, 2022 | <<Number>> | $92.33 | March 1, 2032 | 50% | March 1, 2024 | ||||||||||||
50% | March 1, 2025 |
Grant Date | RSUs Granted | Vesting Schedule | |||||||||
Number of RSUs | Vesting Date | ||||||||||
March 1, 2022 | <<Number>> | 50% | March 1, 2024 | ||||||||
50% | March 1, 2025 |
Grant Date | PSUs Granted | Vesting Date | ||||||
March 1, 2022 | <<Number>>* (target) | March 1, 2025 |
Factor | Weight | Threshold | Target | Maximum | ||||||||||
Earnings Per Share | 50% | $2.90 | $3.20 | $3.50 | ||||||||||
Free Cash Flow ($MM) | 50% | 5,500 | 6,000 | 6,500 | ||||||||||
Percentage | 25% | 100% | 175% |
/s/ H. Lawrence Culp, Jr. | ||
H. Lawrence Culp, Jr. | ||
Chairman & Chief Executive Officer |
/s/ Carolina Dybeck Happe | ||
Carolina Dybeck Happe | ||
Chief Financial Officer |
/s/ H. Lawrence Culp, Jr. | ||
H. Lawrence Culp, Jr. | ||
Chairman & Chief Executive Officer |
/s/ Carolina Dybeck Happe | ||
Carolina Dybeck Happe | ||
Chief Financial Officer |