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United States Securities and Exchange Commission

WASHINGTON, D.C. 20549

FORM 10-K

☑ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended December 31, ~~2019~~2022

Commission file number 001-00035

GENERAL ELECTRIC CO~~MPANY~~COMPANY

(Exact name of registrant as specified in its charter)

New York

14-0689340

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

5 Necco Street

Boston

02210

(Address of principal executive offices)

(Zip Code)

(Registrant’s telephone number, including area code) (~~617~~) (617) 443-3000

Securities Registered Pursuant to Section 12(b) of the Act:



Title of each class			Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value ~~$0.06~~$0.01 per share			GE	~~New York Stock Exchange~~
~~Floating Rate Notes due 2020~~	~~GE 20E~~	~~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



Securities Registered Pursuant to Section 12(g) of the Act:
(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨~~Yes~~ No þ No ¨☑

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No Noþ☑

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ~~Yes~~þ☑ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ~~Yes~~☑ þNo ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):



Large accelerated filer		☑	Accelerated filer	☐
Non-accelerated filer		☐	Smaller reporting company	☐
~~Non-accelerated filer~~ Emerging growth company		☐	~~Smaller reporting company~~	☐
~~Emerging growth company~~	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.☑

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No þ☑

The aggregate market value of the outstanding common equity of the registrant not held by affiliates as of the last business day of the registrant’s most recently completed second fiscal quarter was at least ~~$90.1~~$68.8 billion. There were ~~8,740,232,000~~1,089,286,553 shares of ~~voting~~ common stock with a par value of ~~$0.06~~$0.01 outstanding at January 31, ~~2020.~~2023.

DOCUMENTS INCORPORATED BY REFERENCE

The definitive proxy statement relating to the registrant’s Annual Meeting of Shareholders, to be held May ~~5, 2020,~~3, 2023, is incorporated by reference into Part III to the extent described therein.

TABLE OF CONTENTS


		Page

~~TABLE OF CONTENTS~~
	~~Page~~

~~About General Electric~~ Forward-Looking Statements	3
About General Electric		4
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)		46
Consolidated Results		46
Segment Operations		8
Corporate ~~Items and Eliminations~~		2014
Other Consolidated Information		2215
Capital Resources and Liquidity		2516
Critical Accounting Estimates		3420
Other Items		3722
~~Non-GAAP Financial Measures~~	43
Non-GAAP Financial Measures		26

Other Financial Data		4930

Risk Factors		5030
Legal Proceedings		5739
Management and Auditor's Reports		5839
Audited Financial Statements and Notes		6244

Statement of Earnings (Loss)		6244
Statement of Financial Position		6445
Statement of Cash Flows		6646
Statement of Comprehensive Income (Loss)		6847
Statement of Changes in Shareholders' Equity		6847
Note 1 Basis of Presentation and Summary of Significant Accounting Policies		6948
Note 2 Businesses Held for Sale and Discontinued Operations		7452
Note 3 Investment Securities		7754
Note 4 Current and ~~Long-term~~Long-Term Receivables		7856
Note 5 ~~Financing Receivables and Allowances~~Inventories, Including Deferred Inventory Costs		8057
Note 6 ~~Inventories~~		81
~~Note 7~~ Property, Plant and Equipment and Operating Leases	8157
Note 8 7 Acquis itions, Goodwill and Other Intangible Assets		8258

Note 9 8 Contract and Other Deferred Assets & Progress Collections and Deferred Income		8459
Note 10 9 All Other Assets		8560
Note 111 0 Borrowings		8661
Note 1211 Accounts Payable and Equipment Project Payables		61
Note 1 2 Insurance ~~Liabilities~~Liab ilities and Annuity Benefits		8761
Note 131 3 Postretirement Benefit Plans		8963
Note ~~14 Current and~~ 1 4 All Other Liabilities		9468
Note 151 5 Income Taxes		9468
Note ~~16 Shareholders’~~1 6 Shareholders' Equity		9871
Note 171 7 Share-Based Compensation		9972
Note 18 Earnings Per Share Information		~~100~~73
Note 19 Other Income (Loss)		~~100~~73
Note 20 Restructuring Charges and Separation Costs		74
Note 2 1 Fair Value Measurements		~~101~~75
Note 21 2 2 Financial Instruments		~~102~~75
Note 222 3 Variable Interest Entities		~~104~~77
Note 232 4 Commitments, Guarantees, Product Warranties and Other Loss Contingencies		~~105~~77
Note ~~24 Cash Flows Information~~2 5 Operating Segments		~~110~~80
Note ~~25 Intercompany Transactions~~2 6 Summarized Financial Information		~~112~~83
Note ~~26 Operating Segments~~2 7 Quarterly Information		~~113~~85
Note ~~27 Guarantor Financial Information~~2 8 Subsequent Event		~~115~~85
~~Note 28 Baker Hughes Summarized Financial Information~~		~~119~~
~~Note 29 Quarterly Information (unaudited)~~	~~120~~
~~Forward-Looking Statements~~	~~121~~
Directors, Executive Officers and Corporate Governance	~~122~~86
Exhibits and Financial Statement Schedules		~~123~~87

Form 10-K Cross Reference Index		~~126~~
~~Signatures~~	~~127~~90



Signatures			91
~~ABOUT GENERAL ELECTRIC~~

FORWARD-LOOKING STATEMENTS. Our public communications and SEC filings may contain statements related to future, not past, events. These forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "estimate," "forecast," "target," "preliminary," or "range." Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about planned and potential transactions, including our plan to pursue a spin-off of our portfolio of energy businesses that are planned to be combined as GE Vernova (Renewable Energy, Power, Digital and Energy Financial Services); the impacts of macroeconomic and market conditions and volatility on our business operations, financial results and financial position and on the global supply chain and world economy; our expected financial performance, including cash flows, revenues, organic growth, margins, earnings and earnings per share; impacts related to the COVID-19 pandemic; our de-leveraging plans, including leverage ratios and targets, the timing and nature of actions to reduce indebtedness and our credit ratings and outlooks; our funding and liquidity; our businesses’ cost structures and plans to reduce costs; restructuring, goodwill impairment or other financial charges; or tax rates.

For us, particular areas where risks or uncertainties could cause our actual results to be materially different than those expressed in our forward-looking statements include:

•our success in executing planned and potential transactions, including our plan to pursue a spin-off of GE Vernova, and sales or other dispositions of our equity interests in AerCap Holdings N.V. (AerCap) and GE HealthCare, the timing for such transactions, the ability to satisfy any applicable pre-conditions, and the expected proceeds, consideration and benefits to GE;

•changes in macroeconomic and market conditions and market volatility, including impacts related to the COVID-19 pandemic, risk of recession, inflation, supply chain constraints or disruptions, rising interest rates, the value of securities and other financial assets (including our equity interests in AerCap and GE HealthCare), oil, natural gas and other commodity prices and exchange rates, and the impact of such changes and volatility on our business operations, financial results and financial position;

•global economic trends, competition and geopolitical risks, including impacts from the ongoing conflict between Russia and Ukraine and the related sanctions and other measures, decreases in the rates of investment or economic growth globally or in key markets we serve, or an escalation of sanctions, tariffs or other trade tensions between the U.S. and China or other countries, and related impacts on our businesses' global supply chains and strategies;

•the continuing severity, magnitude and duration of the COVID-19 pandemic, including impacts of virus variants and resurgences, and of government, business and individual responses, such as continued or new government-imposed lockdowns and travel restrictions, and in particular any adverse impacts to the aviation industry and its participants;

•our capital allocation plans, including de-leveraging actions to reduce GE's indebtedness, the capital structures of the public companies that we plan to form from our businesses with the planned spin-off, the timing and amount of dividends, share repurchases, acquisitions, organic investments, and other priorities;

•downgrades of our current short- and long-term credit ratings or ratings outlooks, or changes in rating application or methodology, and the related impact on our funding profile, costs, liquidity and competitive position;

•the amount and timing of our cash flows and earnings, which may be impacted by macroeconomic, customer, supplier, competitive, contractual and other dynamics and conditions;

•capital and liquidity needs associated with our financial services operations, including in connection with our run-off insurance operations and mortgage portfolio in Poland (Bank BPH), the amount and timing of any required capital contributions and any strategic actions that we may pursue;

•market developments or customer actions that may affect demand and the financial performance of major industries and customers we serve, such as demand for air travel and other aviation industry dynamics related to the COVID-19 pandemic; pricing, cost, volume and the timing of investment by customers or industry participants and other factors in renewable energy markets; conditions in key geographic markets; technology developments; and other shifts in the competitive landscape for our products and services;

•operational execution by our businesses, including the success at our Renewable Energy business in improving product quality and fleet availability, executing on cost reduction initiatives and other aspects of operational performance, as well as the performance of GE Aerospace amidst the ongoing market recovery;

•changes in law, regulation or policy that may affect our businesses, such as trade policy and tariffs, regulation and incentives related to climate change (including the impact of the Inflation Reduction Act and other policies), and the effects of tax law changes;

•our decisions about investments in research and development, and new products, services and platforms, and our ability to launch new products in a cost-effective manner;

•our ability to increase margins through implementation of operational improvements, restructuring and other cost reduction measures;

•the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of Alstom, Bank BPH and other investigative and legal proceedings;

•the impact of actual or potential quality issues or failures of our products or third-party products with which our products are integrated, and related costs and reputational effects;

•the impact of potential information technology, cybersecurity or data security breaches at GE or third parties; and

•the other factors that are described in the "Risk Factors" in this Annual Report on Form 10-K for the year ended December 31, 2022, as such descriptions may be updated or amended in any future reports we file with the SEC.

These or other uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. This document includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.

2022 FORM 10-K 3

ABOUT GENERAL ~~ELECTRIC~~

ELECTRIC.General Electric Company (General Electric, GE or the Company) is a high-tech industrial company that today operates worldwide through ~~its four industrial segments, Power,~~three segments: Aerospace, Renewable Energy, ~~Aviation~~ and ~~Healthcare,~~Power. Our products include commercial and ~~its financial services segment, Capital. The Power segment offers technologies, solutions,~~military aircraft engines and ~~services related to~~systems; wind and other renewable energy ~~production, including~~generation equipment and grid solutions; and gas, steam, nuclear and ~~steam turbines, generators, and~~other power generation ~~services. The Renewable Energy segment provides wind turbine platforms, hardware and software, offshore wind turbines, solutions, products~~equipment. We have significant global installed bases of equipment across these sectors, and services to ~~hydropower industry, blades~~support these products are also an important part of our business alongside new equipment sales.

In November 2021, we announced a strategic plan to form three industry-leading, global, investment-grade public companies from (i) our Aerospace business, (ii) our Renewable Energy, Power, Digital and Energy Financial Services businesses, which we plan to combine and refer to as GE Vernova, and (iii) our former HealthCare business. In July 2022, we announced the new brand names for our three planned future companies: GE Aerospace, GE HealthCare and GE Vernova. For purposes of this report, we refer to our reporting segments as Aerospace (previously Aviation), HealthCare (previously Healthcare), Renewable Energy and Power. The composition of these reporting segments is unchanged. On January 3, 2023, we completed the separation of the HealthCare business from GE through the spin-off of GE HealthCare Technologies Inc. (GE HealthCare). In the spin-off, GE made a pro-rata distribution of approximately 80.1% of the shares of GE HealthCare’s common stock to GE shareholders, retaining approximately 19.9% of GE HealthCare common stock. This spin-off marked the culmination of our first business separation in accordance with the November 2021 strategic plan, and we are working toward the planned spin-off of GE Vernova.

Over our more than 130-year history, GE’s innovation and technology have improved quality of life around the world by adapting and innovating solutions to pressing global challenges related to the future of flight, the energy transition and precision healthcare. At GE Aerospace, with a differentiated product and technology portfolio across the commercial and military sectors, we are well positioned to serve customers in expanding and upgrading their fleets amidst the demand ramp for engines and services with the ongoing recovery from the peak of the COVID-19 pandemic. At the same time, we are working to develop next generation engine programs that will allow a smarter and more efficient future of flight, including efforts to support increased use of sustainable aviation fuel with our engines’ capabilities and developing new engine architectures such as open fan, hybrid electric and hydrogen technologies. The GE Vernova portfolio of businesses are positioned to lead the energy transition, helping the energy sector solve for sustainability, reliability and affordability. These businesses are at the center of a dynamic and growing market, as the world faces a significant increase in electricity demand in the coming decades along with the need to electrify and decarbonize. With a range of power generation technologies spanning gas power, onshore and offshore wind ~~turbines,~~ and ~~high voltage equipment. The Aviation segment provides jet engines and turboprops for commercial and military airframes, maintenance, component repair, and overhaul services,~~others, as well as ~~replacement parts, additive machines~~power grid automation and ~~materials,~~hardware, these businesses offer solutions for customers to reduce emissions, meet the growth in electricity demand and ~~engineering services. The Healthcare segment provides~~make energy more accessible globally, secure and resilient. And GE HealthCare, as an independent company since January 2023, will carry forward its mission of advancing precision care to help solve the healthcare industry’s challenges in harnessing data more effectively to provide better outcomes for patients, improving productivity and extending care out of the hospital to alternative care sites.

We believe our businesses’ strategies and focus on these significant global challenges are well aligned with broader goals of sustainable development, and we approach sustainability with GE’s commitment to innovation as a central element. Sustainability priorities are embedded in our policies, leadership engagement, operating mechanisms, commitments, and, ultimately, our products. In addition to working to develop technologies ~~in medical imaging, digital solutions, patient monitoring~~that will help build a more sustainable world, we advance GE’s sustainability priorities through our own commitments to our people, communities and ~~diagnostics, drug discovery, biopharmaceutical manufacturing technologies~~planet. More information that may be of interest to a variety of stakeholders about GE’s sustainability approach, priorities and performance, ~~enhancement solutions.~~including about safety, greenhouse gas emission reductions for our own operations and for our products, environmental stewardship, diversity and inclusion (as also discussed further below), supply chain and human rights and other matters, can be found in our Sustainability Report.

In the remainder of this report, we discuss GE on a consolidated basis and its businesses as of, and for the years ended, December 31, 2022 unless otherwise indicated. The ~~Capital~~HealthCare business was a segment ~~leases~~included in GE’s consolidated results for all of 2022, and ~~finances aircraft, aircraft engines~~accordingly we include GE HealthCare’s results and ~~helicopters, provides financial~~other details for 2022 in this report. The historical results of GE HealthCare and ~~underwriting solutions,~~certain assets and ~~manages our run-off insurance operations. See~~liabilities included in the ~~Consolidated Results section of Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 2 to the~~spin-off will be reported in GE's consolidated financial statements ~~for information regarding~~as discontinued operations beginning in the first quarter of 2023. For the GE Vernova businesses, we continue to refer to our ~~recent business portfolio actions.~~reporting segments of Renewable Energy and Power, reflecting the organization and management of these businesses within GE today.

We serve customers in ~~over~~ 170 countries. Manufacturing and service operations are carried out at 9475 manufacturing plants located in 3026 states in the United States and Puerto Rico and at ~~190~~130 manufacturing plants located in 3732 other countries.

In all of our global business activities, we encounter aggressive and able competition. In many instances, the competitive ~~climate~~environment is characterized by changing technology that requires continuing research and development. With respect to manufacturing operations, we continue to make improvements through deployment of lean initiatives and we believe that, in general, we are one of the leading firms in most of the major industries in which we participate. ~~The businesses in which GE Capital engages are subject to competition from various types of financial institutions.~~

As a diverse global company, we are affected by economic and market developments around the world, ~~economies,~~supply chain disruptions, instability in certain regions, commodity prices, foreign currency volatility and policies regarding trade and imports. See the Segment Operations section within ~~Management's Discussion and Analysis (MD&A)~~MD&A for further information. Other factors impacting our business include:

•product development cycles for many of our products are long and product quality and efficiency are critical to ~~success,~~success;

•research and development expenditures are important to our ~~business,~~business;

•many of our products are subject to a number of regulatory ~~standards~~standards; and

•changing end markets, including shifts in energy sources and demand related to cost, decarbonization efforts and other factors, as well as the impact of technology changes.

2022 FORM 10-K 4

The strength and talent of our workforce are critical to the success of our businesses, and we continually strive to attract, develop and retain personnel commensurate with the needs of our businesses in their operating environments. The Company’s human capital management priorities are designed to support the execution of our business strategy and improve organizational effectiveness. Our focus on organizational performance and talent will remain front and center through the execution of our strategic plan to separate into three independent companies. We will continue to monitor various factors across our human capital priorities, including as a part of our business operating reviews during the year and with oversight by our Board of Directors and the Board’s Management Development and Compensation Committee. The following are our human capital priorities:

•Protecting the health and safety of our workforce: GE is committed to establishing and maintaining effective health and safety standards and protocols across our businesses, making continuous process improvements, and providing ongoing education. Our Chief Safety Officer, hired in 2021, has continued to advance our Safety Promotion Office and safety program, leveraging lean as a critical tool to prevent injuries and incidents and drive safety as a core operational attribute for the businesses. For the past two years, our annual bonus program for executives has included a modifier based on the Company’s safety performance.

•Sustaining a Company culture based in leadership behaviors of humility, transparency and focus, with a commitment to unyielding integrity: GE’s organizational culture supports talent attraction, engagement and retention and promotes ways of working that are strongly connected to our goals. In early 2022, we conducted an annual enterprise-wide culture survey. While survey results varied among our businesses, a Company-wide view of trends in responses confirmed our employees’ view of GE’s solid foundations in safety, compliance, and employee development. Our performance management system, “People, Performance, and Growth,” directly links individual performance outcomes to incentive compensation. Supporting our culture of integrity, The Spirit & The Letter, GE’s employee code of conduct, sets forth the Company’s integrity and compliance standards.

•Developing and managing our talent to best support our organizational goals: GE’s approach to talent management aims to ensure strong individual and company performance; our employee training and development offerings are designed to support these goals. As a key pillar of our talent strategy, GE’s senior management leads an annual organization and talent review for each business to support a strong leadership pipeline and succession planning process for our strategy to form three industry-leading, global, investment-grade public companies. To support our lean culture transformation, we have two lean leadership development programs designed to elevate high potential executive level talent who can lead us towards a more sustainable future. Developed in partnership with our existing leaders, our leadership development programs are premised upon a rigorous learning process tied directly to outcomes, with a focus on hands-on, experiential learning and building a lean mindset.

•Promoting inclusion and diversity across the enterprise: At ~~year-end 2019,~~GE, we are committed to building a more diverse workforce and a more inclusive workplace by focusing on transparency, accountability and community. We believe in the value of each person’s unique identity, background and experiences, and are committed to fostering an inclusive culture in which all employees feel empowered to do their best work because they feel accepted, respected and that they belong. In 2022, we disclosed in our Diversity Annual Report our long-standing commitment to fair and competitive pay practices. On average, men and women performing similar work are paid within 1% of each other in each GE business. Going forward, our goal remains 100% pay equity in each of our businesses.

Additionally, in 2021, we began publishing a Diversity Annual Report to transparently share our diversity data and hold ourselves accountable for continuous improvement. To support our inclusion and diversity goals, we have a GE Chief Diversity Officer and Chief Diversity Officers in each business unit. Additionally, we have several Employee Resource Groups which have added value to our colleagues and businesses by helping to engage and develop diverse talent for nearly 30 years. These groups accelerate development through mentoring, learning, networking, organizing outreach and service activities, and they address challenges that are important to their members and the Company through targeted initiatives. These groups also support our goals to build a diverse talent pipeline through efforts such as partnering with organizations to raise money for scholarship funds and promoting professional development opportunities.

At December 31, 2022, General Electric Company and consolidated affiliates employed approximately ~~205,000~~172,000 people, of whom approximately ~~70,000~~58,000 were employed in the United States. Our ~~Power,~~Aerospace, Renewable Energy, ~~Aviation, Healthcare,~~Power, and ~~Capital~~HealthCare segments employed approximately ~~38,000, 43,000, 52,000, 56,000~~45,000, 36,000, 32,000, and 2,~~000~~49,000 people, respectively. ~~Our~~In addition, Corporate ~~business~~ employed approximately ~~13,000~~10,000 employees, including legacy GE Capital employees. In connection with the January 3, 2023 spin-off of GE HealthCare, approximately 49,000 of our full-time employees formerly associated with our HealthCare segment became employees of GE HealthCare.

~~Approximately 6,750~~At December 31, 2022, GE ~~and GE affiliate~~has approximately 5,745 union-represented manufacturing and service employees in the United ~~States (U.S.)~~States.

Following the spin-off of GE HealthCare, GE has approximately 4,670 union-represented manufacturing and service employees in the United States. The majority are ~~represented for~~covered by four-year collective bargaining ~~purposes by a union. A majority of such employees~~agreements that were ratified in 2019 and are ~~represented by union locals that are affiliated with~~scheduled to terminate in 2023. GE will hold negotiations to enter into new agreements on or before their termination dates. While the ~~IUE-CWA, The Industrial Division~~outcome of the ~~Communication Workers~~2023 negotiations cannot be predicted, GE’s recent past negotiations have resulted in agreements that provide employees with good wages and benefits while addressing the competitive realities facing GE. GE’s relationship with employee-representative organizations outside the U.S. takes many forms, including in Europe where GE engages employees’ representatives’ bodies such as works councils (at both European level and locally) and trade unions in accordance with local law.

2022 FORM 10-K 5

We are subject to numerous U.S. federal, state and foreign laws and regulations covering a wide variety of ~~America, AFL-CIO, CLC. In August 2019, most~~subject matters related to our products, services and business operations, including requirements regarding the protection of ~~GE's~~human health and safety and the environment. Relevant laws and regulations can apply to our business directly and indirectly, such as through the effect that laws and regulations applicable to our customers may have in influencing the products and services they purchase from us. Like other industrial manufacturing companies that operate in the sectors we serve, which are high-tech, increasingly digitally connected and global, we face significant scrutiny from both U.S. ~~unions, including~~and foreign governmental authorities with respect to our compliance with laws and regulations. Many of the ~~IUE-CWA, ratified new four-year labor agreements~~sales across our businesses are also made to ~~replace~~U.S. or foreign governments, regulated entities such as public utilities, state-owned companies or other public sector customers, and these types of sales often entail additional compliance obligations. For further information about government regulation applicable to our businesses, see the ~~current agreements.~~Segment Operations section within MD&A, Risk Factors and Note 24.

We own, or hold licenses to use, numerous patents. New patents are continuously being obtained through our research and development activities. Patented inventions are used both within the Company and are licensed to others. GE is a trademark and service mark of General Electric Company.

Because of the diversity of our products and services, as well as the wide geographic dispersion of our production facilities, we use numerous sources for the wide variety of raw materials needed for our operations.

ADDITIONAL INFORMATION ABOUT GE. General Electric’s address is 1 River Road, Schenectady, NY 12345-6999; we also maintain executive offices at 5 Necco Street, Boston, MA 02210.

GE’s Internet address at www.ge.com, Investor Relations website at www.ge.com/investor-relations and our corporate blog at www.gereports.com, as well as GE’s Facebook page, Twitter accounts and other social media, including @GE_Reports, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted. Additional information on non-financial matters, including our Sustainability Report, environmental and social matters, ~~and~~ our integrity policies and our Diversity Annual Report, is available at www.ge.com/~~sustainability. Website references~~sustainability and www.ge.com/about-us/diversity. All of such additional information referenced in this report ~~are~~(including the information contained in, or available through, other reports and websites) is provided as a convenience and dois not ~~constitute, and should not be viewed as, incorporation~~incorporated by reference ~~of the information contained on, or available through, the websites.~~herein. Therefore, such information should not be considered part of this report.

Our ~~annual report~~Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports are available, without charge, on our website, www.ge.com/investor-relations/events-reports, as soon as reasonably practicable after they are filed electronically with the U.S. Securities and Exchange Commission (SEC). Copies are also available, without charge, from GE Corporate Investor Communications. Reports filed with the SEC may be viewed at www.sec.gov.

GE~~2019 FORM 10-K~~ 3



~~MD&A~~

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)

. The consolidated financial statements of General Electric Company ~~combine the industrial manufacturing and services businesses of GE with the financial services businesses of GE Capital and~~ are prepared in conformity with U.S. generally accepted accounting principles (GAAP). Unless otherwise noted, tables are presented in U.S. dollars in millions. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented in this report are calculated from the underlying numbers in millions. Discussions throughout this MD&A are based on continuing operations unless otherwise noted. Results for the years ended December 31, 2022 versus 2021 are discussed within this report. Refer to our Annual Report on Form 10-K for the year ended December 31, 2021 for discussions of results for the years ended December 31, 2021 versus 2020. The MD&A should be read in conjunction with the Financial Statements and Notes to the consolidated financial statements. F

~~or purposes~~

In the accompanying analysis of ~~the~~ financial ~~statement display of sales and costs of sales~~information, we sometimes use information derived from consolidated financial data but not presented in our ~~consolidated Statement~~financial statements prepared in accordance with GAAP. Certain of ~~Earnings (Loss), “goods” is required~~these data are considered “non-GAAP financial measures” under SEC rules. See the Non-GAAP Financial Measures section for the reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures.

CONSOLIDATED RESULTS

SUMMARY OF 2022 RESULTS. Total revenues were $76.6 billion, up $2.4 billion for the year, driven primarily by ~~SEC regulations to include all sales of tangible products,~~increases at Aerospace and ~~"services" must include all other sales, including other services activities. In~~HealthCare, partially offset by decreases at Renewable Energy and Power.

Continuing earnings (loss) per share was $0.53. Excluding the results from our ~~MD&A section of this report, we refer to sales under product services agreements~~run-off Insurance business, separation costs, the Steam asset sale impairment, restructuring costs, non-operating benefit costs, debt extinguishment costs, Russia and Ukraine charges, gains (losses) on purchases and sales of ~~both goods (such as spare parts~~business interests and ~~equipment upgrades) and related services (such as monitoring, maintenance and repairs) as sales of “services,” which is an important part of our operations.~~

We believe investors will gain a better understanding of our company if they understand how we measure and talk about our results. Because of the diversity in our businesses, we present our financial statements in a three-column format, which allows investors to see our GE industrial operations separately from our financial services operations. We believe that this provides useful information to investors. When used in this report, unless otherwise indicated by the context, we use these terms to mean the following:


•	~~Consolidated~~ – the adding together of GE and GE Capital, giving effect to the elimination of transactions between the two. We present consolidated results in the left-side column of our consolidated Statements of Earnings (Loss), Financial Position and Cash Flows.

•

GE – the adding together of all affiliates except GE Capital, whose continuing operations are presented on a one-line basis, giving effect to the elimination of transactions among such affiliates. As GE presents the continuing operations of GE Capital on a one-line basis, any intercompany profits resulting from transactions between GE and GE Capital are eliminated at the GE level. We present the results of GE in the center column of our consolidated Statements of Earnings (Loss), Financial Position and Cash Flows.


•	~~GE Capital~~ – the adding together of all affiliates of GE Capital giving effect to the elimination of transactions among such affiliates. We present the results of GE Capital in the right-side column of our consolidated Statements of Earnings (Loss), Financial Position and Cash Flows.


•	~~GE Industrial~~ ~~– GE excluding the continuing operations of GE Capital. We believe that this provides investors with a view as to the results of our industrial businesses and corporate items.~~


•	~~Industrial segment~~ – the sum of our four industrial reportable segments, without giving effect to the elimination of transactions among such segments or between these segments and our financial services segment. This provides investors with a view as to the results of our industrial segments, without inter-segment eliminations and corporate items.

This document contains “forward-looking statements” - for details about the uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements, see the Risk Factors and Forward-Looking Statements sections.

~~CONSOLIDATED RESULTS~~

~~2019SIGNIFICANT DEVELOPMENTS.~~In October 2019, we announced changes to the U.S. GE Pension Plan and the U.S. GE Supplementary Plan. As a result of these actions, we recognized a pre-tax increase in non-operating benefit costs of $0.6 billion in the fourth quarter of 2019. See Note 13 to the consolidated financial statements for further information.

We performed this year’s premium deficiency testing in the aggregate across our run-off insurance portfolio in the third quarter of 2019. As a result of our testing, we identified a premium deficiency resulting in a $1.0 billion pre-tax ($0.8 billion after-tax) charge to earnings. See the Other Items - Insurance section within MD&A and Note 12 to the consolidated financial statements for further information.

In the third quarter of 2019, we completed a tender offer to purchase $4.8 billion of GE senior unsecured debt. The total cash consideration paid for these purchases was $5.0 billion, resulting in a pre-tax loss of $0.3 billion (including fees and other costs associated with the tender). See Note 11 to the consolidated financial statements for further information.

In September 2019, we sold a total of 144.1 million shares in Baker Hughes for $3.0 billion in cash (net of certain deal related costs) which reduced our ownership interest from 50.2% to 36.8%. As a result, we have deconsolidated our Baker Hughes segment and reclassified its results to discontinued operations for all periods presented, and recorded a loss of $8.7 billion ($8.2 billion after-tax) in discontinued operations. See Notes 2 and 3 to the consolidated financial statements for further information.

In the second and third quarters of 2019, we recognized non-cash pre-tax impairment charges of $0.7 billion and $0.7 billion related to goodwill at our Grid Solutions equipment and services reporting unit and at our Hydro reporting unit, respectively, both within our Renewable Energy segment. These charges were recorded within earnings from continuing operations at Corporate. See Note 8 to the consolidated financial statements for further information.

GE~~2019 FORM 10-K~~ 4



~~MD&A~~	~~CONSOLIDATED RESULTS~~

In February 2019, we completed the spin-off and subsequent merger of our Transportation segment with Wabtec Corporation, a U.S. rail equipment manufacturer. As a result, we reclassified our Transportation segment to discontinued operations in the first quarter of 2019, for all periods presented, and recorded a gain of $3.5 billion ($2.5 billion after-tax) in discontinued operations. Total proceeds from the sale of the business, including the sale of Wabtec common stock during 2019 were $6.2 billion. See Notes 2 and 3 to the consolidated financial statements for further information.

Also in February 2019, we announced an agreement to sell our BioPharma business within our Healthcare segment to Danaher Corporation for total consideration of approximately $21.4 billion subject to certain adjustments. Correspondingly, we classified BioPharma as a business held for sale. We expect to complete the sale in the first quarter of 2020, subject to regulatory approval, providing us flexibility and optionality with respect to our remaining Healthcare businesses. See Note 2 to the consolidated financial statements for further information.

~~SUMMARY OF 2019 RESULTS.~~ Consolidated revenues were $95.2 billion, down $1.8 billion (2%) for the year primarily driven by decreased Corporate revenues of $1.0 billion, largely attributable to the sale of our Current business in November 2018 and decreased GE Capital revenues of $0.8 billion. The overall foreign currency impact on consolidated revenues was a decrease of $1.4 billion. Industrial segment organic revenues* increased $4.6 billion (5.5%) driven by our Aviation, Renewable Energy and Healthcare segments, partially offset by our Power segment.

~~Continuing earnings per share was $(0.01). Excluding non-operating benefit costs,~~ gains (losses) on business dispositions, restructuring and other charges, goodwill impairments, unrealized gains (losses) on investments, BioPharma deal taxes, debt extinguishment costs, U.S. tax reform enactment and an insurance premium deficiency test charge,equity securities, Adjusted earnings per share* was ~~$0.65.~~

$2.62. For the year ended December 31, ~~2019, GE Industrial~~2022, profit margin was 1.8% and profit was ~~$1.8~~up $5.1 billion, primarily due to a decrease in debt extinguishment costs of $6.1 billion, a decrease in non-operating benefit costs of $2.3 billion, an increase in segment profit of $0.7 billion, a decrease in Adjusted corporate operating costs* of $0.5 billion and ~~profit margins were 2.1%, up $22.4 billion, driven by decreased non-cash goodwill impairment charges of $20.6 billion, decreased restructuring and other costs of $1.5 billion and decreased~~a decrease in interest and other financial charges of $0.3 billion, partially offset by ~~increased non-operating benefit~~a decrease in gains on equity securities of $1.8 billion, separation costs of ~~$0.1 billion. Industrial segment profit increased~~$1.0 billion, the Steam asset sale impairment of $0.8 billion, ~~(8%~~an increase in restructuring and other charges of $0.5 billion, a decrease in Insurance profit of $0.5 billion and Russia and Ukraine charges of $0.3 billion. Adjusted organic profit* increased $1.5 billion (32%), driven primarily ~~due to higher results within our~~by increases at Aerospace and Power ~~Healthcare~~ and ~~Aviation segments,~~lower Adjusted corporate operating costs*, partially offset by ~~the performance of our~~increased losses at Renewable ~~Energy segment. Industrial segment organic profit* increased $1.0 billion (11%).~~Energy.

~~GE cash~~

*Non-GAAP Financial Measure

2022 FORM 10-K 6

Cash flows from operating activities (CFOA) ~~from continuing operations was $4.6~~were $5.9 billion and ~~$0.7~~$0.9 billion for the years ended December 31, ~~2019~~2022 and ~~2018,~~2021, respectively. ~~GE CFOA~~Cash flows from operating activities increased primarily due to ~~no GE Pension Plan contributions~~a decrease in ~~2019 compared~~cash collateral paid net of settlements on interest rate derivative contracts, an increase in net income (after adjusting for amortization of intangible assets, non-cash losses related to ~~$6.0 billion~~our interests in ~~2018~~AerCap and ~~lower net disbursements for equipment project costs, partially offset by higher~~Baker Hughes and non-operating debt extinguishment costs), an increase in cash ~~used for~~from working capital ~~compared to 2018. GE Industrial free~~and an increase in cash ~~flows~~from all other operating activities. Free cash flows* (FCF)* were ~~$2.3~~$4.8 billion and ~~$4.3~~$1.9 billion for the years ended December 31, ~~2019~~2022 and ~~2018,~~2021, respectively. ~~The decrease was~~FCF* increased primarily due to ~~higher cash used~~the same reasons as noted for ~~working capital compared to 2018, partially offset by lower net disbursements for equipment project costs compared to 2018.~~CFOA above. See the Capital Resources and Liquidity - Statement of Cash Flows section for further information.

~~Orders are contractual commitments with customers to provide specified goods or services for an agreed upon price. Backlog~~Remaining performance obligation (RPO) is unfilled customer orders for products and product services (expected life of contract sales for product services).

(In billions) 2019
2018
2017

Equipment $ 79.0
$ 77.1
$ 75.1
Services 325.6
273.5
256.8
Total backlog $ 404.6
$ 350.6
$ 331.9

Equipment $ 45.0
$ 49.3
$ 48.8
Services 45.3
45.5
46.5
Total orders $ 90.3
$ 94.8
$ 95.3

~~As of~~ ~~December 31, 2019~~, backlog increased $53.9 billion (15%) from the prior year due to an increase in services backlog of $48.4 billion at Aviation and $1.9 billion at Renewable Energy and an increase in equipment backlog of $1.9 billion at Renewable Energy.

~~For the year ended December 31, 2019~~, orders decreased $4.5 billion (5%) on a reported basis and increased $0.6 billion (1%) organically driven by an increase in services orders of $1.5 billion primarily at Aviation, partially offset by Renewable Energy, and a decrease in equipment orders of $0.9 billion, primarily at Power and Aviation, partially offset by Renewable Energy.

~~As of December 31, 2018, backlog increased~~ ~~$18.8 billion~~ (6%~~), primarily due to~~ ~~an increase in services backlog of $16.7 billion primarily at Aviation~~ ~~and an increase in equipment backlog of $2.1 billion, also primarily at Aviation.~~

~~For the year ended December 31, 2018, orders decreased~~ ~~$0.5 billion~~ (1%) on a reported basis and increased $2.9 billion (3%) organically driven by an increase in equipment orders of $2.5 billion, primarily at Aviation, partially offset by Power and Renewable Energy, and an increase in services orders of $0.5 billion, primarily at Aviation and Renewable Energy, partially offset by Power.

*Non-GAAP Financial Measure

GE~~2019 FORM 10-K~~ 5



~~MD&A~~	~~CONSOLIDATED RESULTS~~

~~Remaining performance obligation (RPO), a defined term under GAAP, is backlog~~ excluding any purchase order that provides the customer with the ability to cancel or terminate without incurring a substantive penalty, even if the likelihood of cancellation is remote based on historical experience. We plan to continue reporting backlog as we believe that it is a useful metric for investors, given its relevance to total orders.penalty. See Note ~~26 to the consolidated financial statements~~25 for further information.

December 31, 2019 (In billions)
Equipment
Services
Total

Backlog $ 79.0
$ 325.6
$ 404.6
Adjustments (30.5 ) (128.7 ) (159.1 )
Remaining performance obligation $ 48.5
$ 196.9
$ 245.4


RPO	2022		2021		2020

Equipment	$	48,936	$	45,065	$	45,991
Services	202,061		194,755		184,608
Total RPO	$	250,997	$	239,820	$	230,600

~~Adjustments to reported backlog~~

As of ~~$159.1 billion as of~~ December 31, ~~2019~~2022 ~~are largely driven by adjustments of $149.5~~, RPO increased $11.2 billion in our Aviation segment: (1) backlog includes engine contracts for which we have received purchase orders that are cancelable. We have included these in backlog as our historical experience has shown no net cancellations, as any canceled engines are typically moved by the airframer to other program customers; (2) our services backlog includes contracts that are cancelable without substantive penalty,(5%) from December 31, 2021, primarily ~~time and materials contracts; (3) backlog includes~~at Aerospace, from engines contracted under long-term service agreements ~~even if the engines~~that have ~~not yet~~now been put into ~~service. These adjustments to reported backlog are expected to be satisfied beyond one year.~~service and an increase in Commercial and Military orders; at Renewable Energy, from new orders at Grid and Hydro exceeding sales; and at Power, driven by Gas Power services and equipment; partially offset by a decrease at HealthCare, from the impact of contract renewal timing in services.

(In billions) 2019
2018
2017

Consolidated revenues $ 95.2
$ 97.0
$ 99.3

Equipment 42.9
42.4
48.0
Services 43.9
44.4
41.7
Industrial segment revenues $ 86.8
$ 86.8
$ 89.8
Corporate items and Industrial eliminations 0.9
2.3
2.5
GE Industrial revenues $ 87.7
$ 89.0
$ 92.2
GE Capital revenues $ 8.7
$ 9.6
$ 9.1



REVENUES	2022		2021		2020
Equipment revenues	$	31,976	$	34,200	$	37,584
Services revenues	41,626		36,890		35,385
Insurance revenues	2,954		3,106		2,865
Total revenues	$	76,555	$	74,196	$	75,833

For the year ended December 31, ~~2019, c~~2022~~onsolidated~~, total revenues increased $2.4 billion (3%). Equipment revenues decreased, ~~$1.8 billion (2%)~~ primarily ~~driven by decreased Corporate revenues of $1.0 billion, largely attributable~~at Renewable Energy, due to ~~the sale of our Current business in November 2018,~~fewer wind turbine deliveries at Onshore Wind and ~~decreased GE Capital revenues of $0.8 billion. The overall foreign currency impact on consolidated revenues was~~lower revenue at Grid; and at Power, due to a decrease in Steam Power equipment on the exit of ~~$1.4 billion.~~

~~Industrial segment~~ ~~revenues remained flat as a decrease~~ ~~at Power was~~new build coal; partially offset by increases at ~~Aviation,~~HealthCare, driven by Imaging and Ultrasound; and at Aerospace, primarily driven by more commercial install and spare engine unit shipments. Services revenues increased, primarily at Aerospace, due to higher prices, increased shop visit volume and higher volume of commercial spare part shipments; at Renewable Energy, primarily due to higher services revenue at Onshore Wind from a larger installed base; and ~~Healthcare. This was~~at HealthCare, driven by the continued growth of Healthcare Systems (HCS); partially offset by a decrease at Power, due to lower planned contractual services outages in Gas Power and prior year Steam Power services volume that did not repeat. Insurance revenues decreased $0.2 billion (5%).

Excluding the change in Insurance revenues, the net effects of acquisitions of $0.3 billion, the net effects of dispositions of ~~$3.3~~$0.2 billion~~, primarily attributable to the sales~~ ~~of Industrial Solutions, Value-Based Care~~ ~~and Distributed Power in 2018~~ and the effects of a stronger U.S. dollar of ~~$1.4~~$2.1 billion, organic revenues* increased $4.5 billion (6%), with equipment revenues down $1.3 billion (4%) and services revenues up $5.7 billion (16%). Organic revenues* increased at Aerospace, HealthCare and Power, partially offset by ~~the net effects of acquisitions of~~ a decrease at Renewable Energy.

~~$0.1 billion. Industrial segment organic revenues* (excluding the effects of acquisitions, dispositions and foreign currency) increased $4.6 billion (5.5%).~~

~~GE Capital~~ ~~revenues decreased $0.8 billion (8%), primarily due to volume declines and lower gains, partially offset by lower impairments.~~



EARNINGS (LOSS) AND EARNINGS (LOSS) PER SHARE (Per-share in dollars and diluted)	2022		2021		2020
Continuing earnings (loss) attributable to GE common shareholders	$	581	$	(3,562)	$	6,141
Continuing earnings (loss) per share	$	0.53	$	(3.25)	$	5.46

For the year ended December 31, ~~2018, consolidated~~ revenues decreased $2.3 billion (2%), primarily driven by decreased industrial segment revenues of $3.0 billion, partially offset by increased GE Capital revenues of $0.5 billion. The overall foreign currency impact on consolidated revenues was $0.5 billion.

~~Industrial segment~~ ~~revenues decreased $3.0 billion (3%) as a~~ ~~decrease at Power was partially offset by~~ ~~increases~~ ~~at Healthcare and Aviation. This decrease was driven in part by the net effects of dispositions of~~ ~~$3.5 billion~~2022, ~~partially offset by the effects of a weaker U.S. dollar of $0.5 billion. Industrial segment organic revenues* remained flat.~~

~~GE Capital~~ ~~revenues~~continuing earnings increased ~~$0.5~~$4.1 billion ~~(5%)~~ primarily due to ~~lower impairments and volume growth, partially offset by lower gains.~~

(In billions; per-share amounts in dollars and diluted) 2019
2018
2017

Continuing earnings (loss) attributable to GE common shareholders $ —
$ (21.4 ) $ (8.7 )
Continuing earnings (loss) per share $ (0.01 ) $ (2.47 ) $ (1.00 )

~~For the year ended December 31, 2019, consolidated~~ ~~continuing losses decreased $21.4~~a decrease in debt extinguishment costs of $6.1 billion, ~~due to decreased GE goodwill impairment charges~~a decrease in non-operating benefit costs of ~~$20.6~~$2.3 billion, ~~increased~~ ~~GE Industrial~~an increase in segment profit of ~~$0.8~~$0.7 billion, ~~decreased~~ c~~orporate items and eliminations~~a decrease in Adjusted corporate operating costs* of ~~$0.6~~$0.5 billion and ~~decreased GE~~a decrease in interest and other financial charges of $0.3 billion, partially offset by ~~increased provision for GE Industrial income taxes~~a decrease in gains on equity securities of $1.8 billion, separation costs of $1.0 billion, the Steam asset sale impairment of $0.8 billion, an increase in provision for income tax of $0.8 billion, an increase in restructuring and ~~increased GE non-operating benefit costs~~other charges of ~~$0.1~~$0.5 billion, a decrease in Insurance profit of $0.5 billion and Russia and Ukraine charges of $0.3 billion.

~~GE Industrial~~ ~~segment profit increased~~ ~~$0.8~~ Adjusted earnings* were $2.9 billion, (8%~~) with higher profit~~ an increase of $1.0 billion. Profit margin was 1.8%, an increase from (5.0)%. Adjusted profit* was $5.8 billion, an increase of $1.5 billion organically*, due to increases at Aerospace and Power, ~~Aviation~~ and ~~Healthcare~~lower Adjusted corporate operating costs*, partially offset by ~~lower profit~~a decrease at Renewable Energy. ~~Industrial segment~~Adjusted profit margin* was ~~also driven~~7.9%, an increase of 160 basis points organically*.

We continue to experience inflation pressure in ~~part by~~our supply chain, as well as delays in sourcing key materials needed for our products and skilled labor shortages. This has delayed our ability to convert RPO to revenue and negatively impacted our profit margins. While the ~~net effects~~impact of ~~dispositions~~inflation is expected to be challenging, we continue to take actions to limit this pressure, including lean initiatives to drive cost productivity, partnering with our suppliers and adjusting the pricing of ~~$0.3 billion, primarily associated~~our products and services. Also, geopolitical uncertainties with the ~~sales~~ongoing Russia and Ukraine conflict, as well as recent COVID-19 impacts in China, are introducing additional challenges. As of ~~Industrial Solutions, Value-Based Care~~ December 31, 2022, we had approximately $0.5 billion of remaining assets in Russia and ~~Distributed~~Ukraine, mainly in our HealthCare and Power ~~in 2018,~~ offset by the effects of a weaker U.S. dollar of $0.1 billion. Excluding the effects of acquisitions, dispositions and foreign currency translation, industrial segment organic profit* increased $1.0 billion (11%). Corporate items and eliminations decreased ~~$0.6 billion~~businesses, which primarily ~~attributable~~relate to ~~decreased restructuring and other costs of $1.6 billion, increased net unrealized gains on investments of $0.8 billion, partially offset by decreased net gains from disposed~~activity not subject to sanctions or ~~held for sale businesses of $1.4 billion and increased adjusted Corporate operating costs* of $0.4 billion.~~

restricted under Company policy.

*Non-GAAP Financial Measure

GE~~2019~~2022 FORM 10-K 67

GE~~2019~~2022 FORM 10-K8



~~MD&A~~	~~SEGMENT OPERATIONS~~

Our products, services and activities are subject to a number of global regulators such as the U.S. Federal Aviation Administration (FAA), European Union Aviation Safety Agency (EASA), Civil Aviation Administration of China (CAAC) and other regulatory bodies.

Significant Trends & Developments. Our results in 2022 reflect the continued recovery of commercial air travel from the effects of the COVID-19 pandemic. A key underlying driver of our commercial engine and services business is global commercial air traffic, which improved 21% during 2022 compared to 2021, and now stands at approximately 90% of 2019 levels.

The recovery trends vary by region from the travel restrictions imposed by governments and the prevalence of COVID-19 virus variants around the globe. We remain confident in the recovery, and current trends are in line with our recovery forecast. Consistent with updated industry projections, we estimate both narrowbody and widebody air traffic to recover to 2019 levels in late 2023. We are in frequent dialogue with our airline, airframe, and maintenance, repair and overhaul customers about the outlook for commercial air travel, new aircraft production, fleet retirements, and after-market services, including shop visit and spare parts demand.

As it relates to the military environment, we continue to forecast strong military demand creating future growth opportunities for our Military business as the U.S. Department of Defense and foreign governments have continued flight operations, and have allocated budgets to upgrade and modernize their existing fleets. In September 2022, Aerospace and the U.S. Air Force successfully concluded testing on the second XA100 adaptive cycle engine, marking the final major contract milestone of the Air Force’s Adaptive Engine Transition Program (AETP).

Global material availability and labor shortages, in part driven by the pandemic, continue to cause disruptions for us and our suppliers, and have impacted our production and delivery across our businesses. We increased our Commercial and Military engine sales units by 13% in 2022 compared to 2021, and the combined engine sales units increased more than 25% in the second half of 2022 compared to the first half of 2022. We continue to partner with our airframe partners on future production rates. Aerospace has proactively managed the impact of inflationary pressure by deploying lean initiatives to drive cost productivity, partnering with our suppliers and adjusting the pricing of our products and services. We expect the impact of inflation will continue to be challenging and we will continue to take actions to manage.

Total engineering, comprising company, customer and partner-funded and nonrecurring engineering costs, increased compared to the prior year. We continue to be committed to investment in developing and maturing technologies that enable a more sustainable future of flight.

We continue to take actions to protect our ability to serve our customers now and as the global airline industry recovers. Our deep history of innovation and technology leadership, commercial engine installed base, including joint ventures, of approximately 40,900 units, with approximately 11,600 units under long-term service agreements, and military engine installed base of approximately 26,100 units represents strong long-term fundamentals. We believe Aerospace is well-positioned to drive long-term profitable growth and cash generation over time.




Sales in units, except where noted	2022		2021		2020
Commercial Engines(a)	1,663		1,487		1,720
LEAP Engines(b)	1,136		845		815
Military Engines	632		553		683
Spare Parts Rate(c)	$	26.9	$	17.8	$	18.0
(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	December 31, 2022		December 31, 2021		December 31, 2020
Equipment	$	13,748	$	11,139	$	10,597
Services	121,511		114,133		103,500
Total RPO	$	135,260	$	125,272	$	114,097



SEGMENT REVENUES AND PROFIT	2022			2021			2020



Commercial Engines & Services	$	18,665		$	14,360		$	14,479
Military	4,410			4,136			4,572
Systems & Other	2,975			2,814			2,991
Total segment revenues	$	26,050		$	21,310		$	22,042

Equipment	$	7,842		$	7,531		$	8,582
Services	18,207			13,780			13,460
Total segment revenues	$	26,050		$	21,310		$	22,042

Segment profit	$	4,775		$	2,882		$	1,229
Segment profit margin	18.3		%	13.5		%	5.6		%

2022 FORM 10-K 9

SUMMARY OF REPORTABLE SEGMENTS (In millions)
2019
2018
2017

Power $ 18,625
$ 22,150
$ 29,426
Renewable Energy 15,337
14,288
14,321
Aviation 32,875
30,566
27,013
Healthcare 19,942
19,784
19,017
Total industrial segment revenues 86,778
86,789
89,776
Capital 8,741
9,551
9,070
Total segment revenues 95,519
96,339
98,847
Corporate items and eliminations (305 ) 673
433
Consolidated revenues $ 95,214
$ 97,012
$ 99,279

Power $ 386
$ (808 ) $ 1,894
Renewable Energy (666 ) 292
728
Aviation 6,820
6,466
5,370
Healthcare 3,896
3,698
3,488
Total industrial segment profit 10,436
9,647
11,479
Capital (530 ) (489 ) (6,765 )
Total segment profit 9,906
9,158
4,714
Corporate items and eliminations (2,212 ) (2,837 ) (3,798 )
GE goodwill impairments (1,486 ) (22,136 ) (1,165 )
GE interest and other financial charges (2,115 ) (2,415 ) (2,538 )
GE non-operating benefit costs (2,828 ) (2,740 ) (2,409 )
GE benefit (provision) for income taxes (1,309 ) (467 ) (3,493 )
Earnings (loss) from continuing operations attributable to GE common shareholders (44 ) (21,438 ) (8,689 )
Earnings (loss) from discontinued operations, net of taxes (5,335 ) (1,363 ) (312 )
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations 60
1
(81 )
Earnings (loss) from discontinued operations, net of taxes and noncontrolling interests (5,395 ) (1,364 ) (231 )
Consolidated net earnings (loss) attributable to GE common shareholders $ (5,439 ) $ (22,802 ) $ (8,920 )
For the year ended December 31, 2022, segment revenues were up $4.7 billion (22%) and segment profit was up $1.9 billion (66%).

RPO as of December 31, 2022 increased $10.0 billion (8%) from December 31, 2021, due to increases in both equipment and services. Equipment increased primarily due to an increase in Commercial and Military orders since December 31, 2021. Services increased primarily as a result of engines contracted under long-term service agreements that have now been put into service and contract modifications.

Revenues increased $4.8 billion (23%) organically*. Commercial Services revenues increased, primarily due to increased shop visit volume and commercial spare part shipments, and higher prices. Commercial Services revenues also increased due to a net favorable change of $0.1 billion for its long-term service agreements compared to a net unfavorable change of $0.3 billion in the prior year. Commercial Engines revenues increased, primarily driven by 176 more commercial install and spare engine unit shipments, including 291 more LEAP units versus the prior year, partially offset by lower GEnx engine production rates and product transition with fewer engine shipments on legacy programs. Military revenues increased, primarily due to growth in services and 79 more engine shipments than the prior year, partially offset by product mix.

~~POWER~~Profit increased $1.8 billion (62%) organically*, primarily due to increased shop visit volume and commercial spare part shipments, higher prices and the impact of favorable contract margin reviews for long-term service agreements. These increases in profit were partially offset by lower profit on Commercial Engine shipments driven by product transition with fewer engine shipments on legacy programs and more shipments on newer programs, inflation in our supply chain and additional growth investment.

~~Products~~

RENEWABLE ENERGY – will be part of GE Vernova, GE’s portfolio of energy businesses. We benefit from one of the broadest portfolios in the industry that uniquely positions us to lead the energy transition while building on advanced technologies that grow renewable energy generation, lower the cost of electricity and modernize the grid. Our portfolio of business units includes onshore and offshore wind, blade manufacturing, grid solutions, hydro, storage, hybrid renewables and digital services offerings. We have installed more than 400 gigawatts of clean renewable energy equipment and equipped more than 90% of transmission utilities with our grid solutions in developed and emerging markets.

Onshore Wind – delivers technology and services for the onshore wind power industry by providing a range of turbines. Wind Services assist customers in improving cost, capacity and performance of their assets over the lifetime of their fleet, utilizing digital infrastructure to monitor, predict and optimize wind farm energy performance. Our Onshore Wind business supports a turbine installed base of approximately 54,000 units, of which, slightly less than half are under service agreements.

Grid Solutions Equipment and Services (Grid) – enables power utilities and industries worldwide to effectively manage electricity from the point of generation to consumption, helping the reliability, efficiency and resiliency of the grid. Service offerings include a comprehensive portfolio of equipment, hardware, protection and control, automation and digital services. Grid is also addressing the challenges of the energy transition by safely and reliably connecting intermittent renewable energy generation to transmission networks.

Hydro, Offshore Wind and Hybrid Solutions – Hydro provides a portfolio of solutions and services for hydropower generation for both large hydropower plants and small hydropower solutions. Offshore Wind leads the industry in wind power technologies and wind farm development. Hybrid Solutions provides integration of renewable energies that drive stability to the grid and integrates storage and renewable energy generation sources.

Competition & ~~Services.~~Regulation. While many factors, including government incentives, specific market rules, and permitting regulations and challenges, affect how renewable energy can deliver outcomes for customers in a given region, renewable energy has become competitive with fossil fuels in terms of levelized cost of electricity. We continue to invest in improving the durability of our wind turbine products, fleet availability and project execution with increased focus on project selectivity. Additionally, we continue to explore ways to further improve the efficiency and flexibility of our hydropower technology with new innovative turbine designs and digital solutions. As industry models continue to evolve, our digital strategy and investments in technical innovation will position us to add value for customers looking for clean, renewable energy.

Significant Trends & Developments. During the third quarter of 2022, the Inflation Reduction Act of 2022 (IRA) was signed into law, introducing new and extending existing tax incentives for 10 years. The IRA is expected to resolve recent U.S. policy uncertainty that resulted in project delays and deferral of customer investments in Onshore Wind and significantly increase near- and longer-term demand in the U.S. for onshore and offshore wind projects. The timing of this demand growth depends in part on how quickly the IRA incentives are implemented. While the offshore wind industry continues to expect global growth through the decade, cost pressures and the ability to complete with the rapid pace of innovation remain key challenges. Finally, our Grid business is positioned to support grid expansion and modernization needs.

We have experienced significant cost inflation across all businesses which we expect to continue, and are working to mitigate through pricing and cost actions. At Onshore Wind, based on experience across our fleet, we are deploying repairs and other corrective measures to improve our overall quality and fleet availability resulting in higher warranty and related reserves. Concurrently, we are undertaking a restructuring program to reduce fixed cost, reflecting our selectivity strategy to operate in fewer markets and to simplify and standardize product variants. Our financial results are dependent on costs to address fleet availability and quality, execution of cost reduction initiatives and the inflationary environment. Additionally, initiatives to improve selectivity and pricing as well as U.S. Treasury tax implementation guidance related to the IRA are expected to further improve our results.

*Non-GAAP Financial Measure

2022 FORM 10-K 10

New product introductions account for a large portion of our RPO in Onshore and Offshore Wind, such as our 5 MW and 3 MW Onshore units, and our 12-14 MW Haliade-X Offshore units. During the fourth quarter of 2022, we started shipping Haliade-X units for our first commercial project. Improving Onshore and Offshore fleet availability while reducing the cost of these new product platforms and blade technologies, remains a key priority. At Grid, we are securing our position in the high growth offshore interconnection market with products meeting the 2GW high voltage direct current (HVDC) solution standard and developing new technology such as flexible transformers and eco-friendly g³ switchgears that solve for a denser, more resilient and efficient electric grid and lower greenhouse gas emissions.




Onshore and Offshore sales in units	2022	2021	2020
Wind Turbines	2,190	3,590	3,744
Wind Turbine Gigawatts	7.5	11.7	10.8
Repower units	580	561	1,022


RPO	December 31, 2022		December 31, 2021		December 31, 2020
Equipment	$	20,142	$	18,639	$	18,273
Services	12,688		12,872		12,531
Total RPO	$	32,830	$	31,511	$	30,804



SEGMENT REVENUES AND PROFIT	2022			2021			2020




Onshore Wind	$	8,373		$	11,026		$	10,881
Grid Solutions equipment and services	3,086			3,207			3,585

Hydro, Offshore Wind and Hybrid Solutions	1,518			1,464			1,200
Total segment revenues	$	12,977		$	15,697		$	15,666

Equipment	$	10,191		$	13,224		$	12,859
Services	2,785			2,473			2,807
Total segment revenues	$	12,977		$	15,697		$	15,666

Segment profit (loss)	$	(2,240)		$	(795)		$	(715)
Segment profit margin	(17.3)		%	(5.1)		%	(4.6)		%

For the year ended December 31, 2022, segment revenues were down $2.7 billion (17%) and segment losses were up $1.4 billion.

RPO as of December 31, 2022 increased $1.3 billion (4%) from December 31, 2021 primarily from new orders at Grid and Hydro exceeding sales, partially offset by the approximately $1.3 billion impact from a stronger U.S. dollar and revenue exceeding new orders at Offshore Wind.

Revenues decreased $2.1 billion (13%) organically*, primarily from 1,400 fewer wind turbine deliveries, primarily at Onshore Wind, including customer delays and deferrals due to U.S. tax policy uncertainty, and lower revenue at Grid due to increased commercial selectivity, partially offset by higher services revenue at Onshore Wind from a larger installed base.

Segment losses increased $1.5 billion organically*, primarily attributable to Onshore Wind’s lower U.S. volume, higher warranty and related reserve charges of $0.5 billion in the third quarter of 2022 in response to the deployment of corrective measures and repair campaigns within our fleet, execution of lower margin RPO and the impact of transitioning to newer product offerings internationally. Additionally, we observed cost inflation across all businesses and higher ramp up costs at Offshore Wind. These higher costs were partially offset by the favorable impact of cost reduction initiatives and lower project related charges, primarily at Grid.

POWER – will be part of GE Vernova, GE’s portfolio of energy businesses. Power serves power generation, industrial, government and other customers worldwide with products and services related to energy production. Our products and technologies harness resources such as oil, gas, fossil, diesel ~~nuclear~~ and ~~water~~nuclear to produce electric power and include gas and steam turbines, full balance of plant, upgrade and service solutions, as well as data-leveraging software.

~~In 2019, we reorganized~~ We have organized the businesses within our Power segment into Gas Power, Steam Power and Power ~~Portfolio,~~Conversion, Nuclear and we completed the reorganization of our Grid Solutions equipment and services business into our Renewable Energy segment and our Grid Solutions software and Power Digital businesses into Corporate for all periods presented. Power Portfolio's 2018 and 2017 results also include our former Industrial Solutions and Distributed Power businesses which were sold in June 2018 and November 2018, respectively.other.

Gas Power– – offers a wide spectrum of heavy-duty and aeroderivative gas turbines for utilities, independent power producers and numerous industrial applications, ranging from small, mobile power to utility scale power plants. Gas Power also delivers maintenance ~~service~~ and ~~upgrade~~service solutions across total plant assets and over their operational lifecycle. ~~Our gas turbine installed base was approximately 7,700 units as of December 31, 2019.~~

Steam Power ~~Portfolio~~ – offers ~~steam~~a broad portfolio of technologies and services predominately for nuclear and fossil power ~~technology for fossil and nuclear applications including boilers, generators, steam turbines and Air Quality Control Systems (AQCS)~~plants to help ~~efficiently produce~~customers deliver reliable power as they transition to a lower carbon future.

Power Conversion, Nuclear and ~~provide performance over the life of a power plant. Power Portfolio also~~other - applies the science and systems of power conversion to provide motors, generators, automation and control equipment and drives for energy intensive industries such as marine, oil and gas, ~~renewable energy,~~ mining, rail, metals and test ~~systems and water. It~~systems. Through joint ventures with Hitachi, it also ~~offers advanced reactor technologies~~provides nuclear technology solutions ~~including reactors, fuels and support services~~ for boiling water reactors ~~through joint ventures with Hitachi~~including reactor design, reactor fuel and ~~Toshiba for nuclear fleets.~~support services, and the design and development of small modular reactors.

*Non-GAAP Financial Measure

2022 FORM 10-K 11

Competition & Regulation. Worldwide competition for power generation products and services is intense. Demand for power generation is global, and as a result, is sensitive to the economic and political environments of each country in which we do business. Our products and services sold to end customers are often subject to many regulatory requirements and performance standards under different federal, state, foreign and energy industry standards. In addition, we are subject to market and other dynamics related to decarbonization, where it will remain important to lower greenhouse gas emissions for decades to come, which will likely depend in part on technologies that are not yet deployed or widely adopted today but may become more important over time (such as hydrogen-based power generation, carbon capture and sequestration technologies or small modular or other advanced nuclear power).

Significant Trends & Developments. ~~The~~During the year ended December 31, 2022, global gas power ~~market as well as its operating~~generation grew mid-single digits and GE gas turbine utilization grew low-single digits with strength in the U.S. Utilization of the fleet continues to follow growing gas power generation, capturing shortfalls from coal retirements, and resilient asset usage with a dynamic Europe environment ~~continue~~with the Russia and Ukraine conflict and mild winter. Looking ahead, we anticipate H-class units to be ~~challenging. Over~~commissioned into the ~~past several quarters, our outlook for Power was driven by the significant overcapacity in the industry, increased price pressure from competition on servicing the~~serviceable installed base and the uncertain timing of deal closures due to financing and the complexities of working in emerging markets. ~~Market factors such as increasing energy efficiency~~Power has proactively managed the impact of inflationary pressure by deploying lean initiatives to drive cost productivity, partnering with our suppliers and ~~renewable energy penetration,~~adjusting the ~~growth in global supply~~pricing of ~~liquefied natural gas, as well as~~our products and services. We expect the ~~cost-competitiveness~~impact of ~~different sources of power generation~~inflation will continue to ~~impact how~~be challenging and we ~~evaluate long-term market demand.~~

GE~~2019 FORM 10-K~~ 9



~~MD&A~~	~~SEGMENT OPERATIONS~~

~~We have and~~ will continue to take actions to ~~right size our business for~~manage. Although market factors related to the ~~current~~energy transition such as greater renewable energy penetration and the adoption of climate change-related policies continue to impact long-term demand (and related financing), we expect the gas market ~~conditions and our long-term outlook, including restructuring our operations~~ to ~~dispose of non-core businesses, resizing our remaining businesses~~remain stable over the next decade with gas generation continuing to ~~better align with market demand and driving these businesses with an operational rigor and discipline that is~~grow low-single-digits. We believe gas will play a critical role in the energy transition. We remain focused on our ~~customers’ lifecycle experience. We~~underwriting discipline and risk management to ensure we are ~~building~~securing deals that meet our financial hurdles and we have high confidence to deliver for our customers.

In the first quarter of 2022, we signed a ~~cost structure~~non-binding memorandum of understanding for GE Steam Power to ~~support an average 25~~sell a portion of its business to ~~30 gigawatt new unit gas turbine market; however, actual orders~~Électricité de France S.A. (EDF), which resulted in a ~~given year can vary. As~~reclassification of that business to held for sale. In the fourth quarter of 2022, we signed a ~~result~~binding agreement and expect to complete the sale, subject to regulatory approval, in the second half of ~~these actions~~2023. In the second quarter of 2022, we announced that Gas Power intends to acquire Nexus Controls, a business specializing in aftermarket control system upgrades and ~~overall market~~controls field services. The deal, which is subject to customary closing conditions ~~we believe~~including regulatory approval and mandatory information and consultation processes with employees and their representatives, is expected to close in the ~~business is showing early signs~~second quarter of ~~stabilization. We expect incremental improvements in 2020 with further acceleration in 2021 and beyond.~~2023.

We continue to invest in new product development, such as our Nuclear small modular reactors and our HA-Turbines, with over 1.6 million operating hours. Our fundamentals remain strong with approximately $69.0 billion in RPO, including ~~upgrades, as these are critical to our customers~~27 HA-Turbines, and ~~the~~a gas turbine installed base of approximately 7,000 units, including 78 HA-Turbines, which has nearly doubled since 2019, and approximately 1,800 units under long-term ~~strategy of the business.~~service agreements.

Orders Sales
(In units) 2019
2018
2019
2018

GE Gas Turbines 74
52
53
59
Heavy-Duty Gas Turbines(a) 63
43
38
42
HA-Turbines(b) 18
10
11
12
Aeroderivatives(a) 11
9
15
17
GE Gas Turbine Gigawatts(c) 13.6
8.0

(a) Heavy-Duty Gas Turbines and Aeroderivatives are subsets of GE Gas Turbines.
(b) HA-Turbines are a subset of Heavy-Duty Gas Turbines.
(c) Gigawatts reported associated with financial orders in the periods presented.

(Dollars in billions) 2019
2018
2017

Equipment $ 17.7
$ 18.8
$ 19.3
Services 67.6
66.2
70.4
Total backlog $ 85.3
$ 85.0
$ 89.7

Equipment $ 5.2
$ 9.3
$ 13.0
Services 11.7
13.3
17.0
Total orders $ 16.9
$ 22.6
$ 30.0

Gas Power $ 13.1
$ 13.3
$ 17.1
Power Portfolio 5.5
8.9
12.3
Total segment revenues $ 18.6
$ 22.1
$ 29.4

U.S. $ 6.0
$ 7.5
$ 9.9
Non-U.S.
Europe 3.1
4.5
5.1
Asia 4.0
4.1
5.0
Americas 1.9
2.5
2.6
Middle East and Africa 3.6
3.5
6.8
Total Non-U.S. $ 12.6
$ 14.7
$ 19.5
Total segment revenues $ 18.6
$ 22.1
$ 29.4
Non-U.S. revenues as a % of segment revenues 68 % 66 % 66 %

Equipment $ 6.2
$ 8.1
$ 12.9
Services 12.4
14.1
16.5
Total segment revenues(a) $ 18.6
$ 22.1
$ 29.4

Segment profit(b) $ 0.4
$ (0.8 ) $ 1.9
Segment profit margin 2.1 % (3.6 )% 6.4 %

~~(a) Power segment revenues represent 21% and 19% of total industrial segment revenues and total segment revenues, respectively, for the year ended December 31, 2019.~~

~~(b) Power segment profit represents 4% of total industrial segment profit for the year ended December 31, 2019.~~

GE~~2019 FORM 10-K~~ 10




Sales in units	2022	2021	2020
GE Gas Turbines	101	62	71
Heavy-Duty Gas Turbines(a)	53	43	51
HA-Turbines(b)	11	13	21
Aeroderivatives(a)	48	19	20

(a) Heavy-Duty Gas Turbines and Aeroderivatives are subsets of GE Gas Turbines. (b) HA-Turbines are a subset of Heavy-Duty Gas Turbines.



~~MD&A~~	~~SEGMENT OPERATIONS~~


RPO	December 31, 2022		December 31, 2021		December 31, 2020
Equipment	$	11,561	$	12,169	$	14,991
Services	57,420		56,569		58,318
Total RPO	$	68,981	$	68,738	$	73,308



SEGMENT REVENUES AND PROFIT	2022			2021			2020




Gas Power	$	12,072		$	12,080		$	12,655
Steam Power	2,643			3,241			3,557
Power Conversion, Nuclear and other	1,547			1,582			1,378
Total segment revenues	$	16,262		$	16,903		$	17,589

Equipment	$	4,737		$	5,035		$	6,707
Services	11,526			11,868			10,883
Total segment revenues	$	16,262		$	16,903		$	17,589

Segment profit (loss)	$	1,217		$	726		$	274
Segment profit margin	7.5		%	4.3		%	1.6		%

For the year ended December 31, ~~2019, segment orders were down $5.7 billion (25%),~~2022, segment revenues were down ~~$3.5~~$0.6 billion ~~(16%~~(4%) and segment profit was up ~~$1.2 billion.~~$0.5 billion (68%).

~~Backlog~~RPO as of December 31, ~~2019~~2022 increased ~~$0.3~~$0.2 billion from December 31, ~~2018,~~2021, primarily driven by Gas Power services and equipment, partially offset by the continued wind down of the Steam Power new build coal business.

2022 FORM 10-K 12

Revenues increased $0.4 billion (2%) organically*, primarily due to ~~an increase~~higher Gas Power aeroderivative deliveries, favorable price in ~~services backlog of $1.4 billion attributable to~~ Gas Power contractual and non-contractual services and growth in Gas Power non-contractual services, partially offset by ~~a decrease~~lower planned contractual services outages in ~~equipment backlog of $1.1 billion from both~~ Gas Power and ~~Power Portfolio.~~

~~Orders decreased $2.5 billion (13%) organically mainly due to~~ a ~~decrease~~reduction in Steam ~~orders at~~ Power ~~Portfolio, partially offset by 20 more heavy duty gas turbine orders.~~equipment on the exit of new build coal and prior year Steam Power services volume that did not repeat.

~~Revenues decreased $0.2~~Profit increased $0.5 billion ~~(1%~~(69%) organically* primarily due to ~~a decrease~~prior year project and legal charges at Steam Power that did not repeat, reduced intangible asset amortization at Steam Power, favorable price in ~~services revenue at Power Portfolio.~~

Profit increased $1.4 billion organically* due to improved variable cost productivity driven by the absence of significant warranty and project cost updates, as well as liquidated damages recognized in 2018.

~~For the year ended December 31, 2018, segment orders were down $7.4 billion (25%), segment revenues were down $7.3 billion (25%) and segment profit was down $2.7 billion.~~

~~Backlog as of December 31, 2018 decreased $4.7 billion (5%) primarily due to a reduction in services backlog of $4.2 billion attributable to~~ Gas Power contractual and ~~due to the absence of our Distributed Power~~non-contractual services and ~~Industrial Solutions businesses in Power Portfolio.~~

~~Orders decreased $4.0 billion (15%) organically mainly due to~~higher Gas Power ~~lower gas turbine and services orders.~~

Revenues decreased $4.5 billion (17%) organically*. Equipment revenues decreased primarily at Gas Power, due to lower unit sales, including 60 fewer gas turbines, 26 fewer Heat Recovery Steam Generators and 23 fewer aeroderivative ~~units. Services revenues also decreased primarily due to 27 fewer AGP upgrades.~~

Profit decreased $2.4 billion organically* due to negative variable cost productivity driven by warranty, project cost updates as well as liquidated damages, and various assumption updates for unfavorable pricing, lower utilization, and cost updates on our long-term service agreements recognized by Gas Power.

~~RENEWABLE ENERGY~~

~~Products & Services.~~ Renewable Energy engineers and manufactures energy equipment and projects, grid solutions and digital services that create industry-leading value for our customers globally. Combining onshore and offshore wind, blades, hydro and grid solutions, as well as hybrid renewables and digital services offerings, we have installed more than 400 gigawatts of clean renewable energy equipment and more than 90 percent of utilities worldwide with our grid solutions.

~~Onshore Wind~~ –delivers technology and services for the onshore wind power industry by providing smart turbines that are uniquely situated for a variety of wind environments. Wind services help customers improve availability and value of their assets over the lifetime of the fleet. The Digital Wind Farm is a site level solution, creating a dynamic, connected and adaptable ecosystem that improves our customers’ fleet operations. Our Onshore Wind turbine installed base was approximately 45,000 units as of December 31, 2019.

~~Offshore Wind~~–~~leads the industry in offshore wind power technologies to be used in offshore wind farm development with the Haliade X-12MW prototype, the most powerful offshore wind turbine in the world.~~

~~Grid Solutions Equipment and Services (Grid)~~ – equips power utilities and industries worldwide to bring power reliably and efficiently from the point of generation to end customers through offering products, such as high voltage equipment, power electronics, automation and protection equipment, and servicing the generation, transmission, distribution, oil and gas, telecommunication, mining and water industries. In the second quarter of 2019, we completed the reorganization of our Grid business into our Renewable Energy segment for all periods presented.

~~Hydro~~ – represents more than 25 percent of the total installed hydropower capacity worldwide through a portfolio of solutions and services, including the design, management, construction, installation, maintenance and operation of both large hydropower plants and small hydropower solutions, as well as offering a comprehensive asset management program to hydro power plant operators.

~~Competition & Regulation.~~ While many factors, including government incentives and specific market rules, affect how renewable energy can deliver outcomes for customers in a given region, renewable energy is increasingly able to compete with fossil fuels in terms of levelized cost of electricity. However, continued competitive pressure from other wind and hydro turbine manufacturers as well as from other energy sources, such as solar photovoltaic, reinforced by a general move to electricity auction mechanisms, have increased price pressure and the need for innovation.

We continue to invest in exploring new ways of further improving the efficiency and flexibility of our hydropower technology with digital solutions and in generating wind turbine product improvements, including larger rotors, taller towers and higher nameplate ratings that continue to drive down the cost of wind energy. As industry models continue to evolve, our digital strategy and investments in technical innovation will position us to add value for customers looking for clean, renewable energy.

~~Significant Trends & Developments.~~ Renewable energy is in a rapid transition period and now competing in the marketplace against existing and new conventional energy sources. Wind energy is currently the second-largest contributor to renewable capacity growth with hydropower projected to remain the largest renewable electricity source through 2023.

*Non-GAAP Financial Measure

GE~~2019 FORM 10-K~~ 11



~~MD&A~~	~~SEGMENT OPERATIONS \| RENEWABLE ENERGY~~

During 2019, the onshore wind market in the U.S. continued to see the positive impact from the Production Tax Credit (PTC) cycle and customer preference shifting to larger, more efficient units to drive down costs and compete with other power generation options. Despite the competitive nature of the market, onshore wind order pricing stabilized in 2019 due to demand caused by the progressive phase-down of PTCs in the U.S. starting in 2020 and auction stabilization in international markets. The phase-down of PTCs in the U.S. has recently been extended by a year such that certain projects completed through 2024 could qualify for these credits and we expect to continue high levels of production for 2020 deliveries, ~~at Onshore Wind. We will continue to closely monitor our execution during this period including risks of delivery delays due to customer site readiness issues and possible project postponements.~~

We expect additional opportunities to repower existing wind turbines. Repowering allows customers to increase the annual energy output of their installed base, provides more competitively priced energy and extends the life of their assets. The repower market remains robust, and we expect continued strong demand in 2020 and beyond.

The grid market continues to be challenging as we have experienced current year order declines in the High Voltage Direct Current (HVDC) and High Voltage (HV) product lines. Given price pressure, the need for grid flexibility to accommodate more renewable energy, and the diversification of energy players, the hydropower industry continues to maximize value with new small-scale and pumped storage projects to support both wind and solar expansion. The Grid and Hydro businesses are executing their turnaround plans and we are expecting improvements in contribution margin in 2020.

New product introductions continue to be important to our customers who are demonstrating the willingness to adopt the new technology of larger turbines that decrease the levelized cost of energy. We continue to focus on cost reduction initiatives of our products, in-sourcing blade production and developing larger, more efficient turbines like the Haliade-X (Offshore Wind) and Cypress (Onshore Wind). During 2019, we signed our largest Cypress order to date, and were selected as the preferred supplier for two Offshore wind projects in the U.S. and United Kingdom (U.K.), an important commercial milestone for the Haliade-X. In October 2019, the prototype for the Haliade-X was successfully installed with final certification expected by the middle of 2020.

Orders Sales
(In units) 2019
2018
2019
2018

Wind Turbines 4,325
3,198
3,424
2,491
Wind Turbine Megawatts 12,758
8,591
9,525
6,823
Repower 1,269
1,621
1,057
1,160

(Dollars in billions) 2019
2018
2017

Equipment $ 16.3
$ 14.4
$ 15.0
Services 11.2
9.3
7.4
Total backlog $ 27.5
$ 23.7
$ 22.5

Equipment $ 14.0
$ 11.8
$ 12.8
Services 2.9
3.5
2.6
Total orders $ 16.9
$ 15.3
$ 15.4

Onshore Wind $ 10.4
$ 8.2
$ 8.1
Grid Solutions equipment and services 4.1
4.8
5.1
Other 0.9
1.3
1.1
Total segment revenues $ 15.3
$ 14.3
$ 14.3

U.S. $ 7.4
$ 4.9
$ 5.6
Non-U.S.
Europe 2.9
3.2
3.0
Asia 2.7
2.9
2.1
Americas 1.1
2.2
2.4
Middle East and Africa 1.2
1.1
1.2
Total Non-U.S. $ 7.9
$ 9.4
$ 8.7
Total segment revenues $ 15.3
$ 14.3
$ 14.3

Non-U.S. revenues as a % of segment revenues 52 % 66 % 61 %

GE~~2019 FORM 10-K~~ 12



~~MD&A~~	~~SEGMENT OPERATIONS \| RENEWABLE ENERGY~~

(Dollars in billions) 2019
2018
2017

Equipment $ 12.3
$ 11.4
$ 14.0
Services 3.1
2.9
0.4
Total segment revenues(a) $ 15.3
$ 14.3
$ 14.3
Segment profit(b) $ (0.7 ) $ 0.3
$ 0.7
Segment profit margin (4.3 )% 2.0 % 5.1 %


~~(a)~~	~~Renewable Energy segment revenues represent 18% and 16% of total industrial segment revenues and total segment revenues, respectively, for the year ended December 31, 2019.~~


~~(b)~~	~~Renewable Energy segment profit represents (6)% of total industrial segment profit for the year ended December 31, 2019.~~

~~For the year ended December 31, 2019, segment orders were up $1.6 billion (10%), segment revenues were up $1.0 billion (7%) and segment profit was down $1.0 billion.~~

Backlog as of December 31, 2019 increased $3.9 billion (16%) primarily driven by increases at Onshore Wind of $3.0 billion due to increased demand in anticipation of the U.S. PTC phase-down, increased services backlog due to the larger installed equipment base and a large scale 6MW turbine order in Offshore Wind.

~~Orders increased $1.9 billion (12%) organically due to increased demand in domestic and international Onshore Wind markets,~~ partially offset by lower ~~repower unit orders~~Gas Power planned contractual services outages, unfavorable equipment mix at Gas Power, a reduction in Steam Power equipment on the exit of new build coal and ~~lower orders at Grid and Hydro.~~

~~Revenues increased $1.6 billion (11%) organically*. Equipment revenues increased due to 933 more wind turbine units shipped, or 40% more megawatts, than in the~~ prior year ~~partially offset by decreases in Offshore Wind due~~Steam Power services volume that did not repeat.

GE HEALTHCARE. HealthCare is a leading global medical technology, pharmaceutical diagnostics and digital solutions innovator. Our products, solutions and services span the continuum of patient care including screening, diagnosis, treatment and monitoring with the goal of empowering clinicians to ~~the nonrecurrence of a project completed in the prior year and due to~~deliver better care at lower HVDC and Automated Control Systems (ACS) project revenues and HV product shipments at Grid. Services revenues increased primarily due to an increase in repower units pricing and volume at Onshore Wind.

Profit decreased $1.0 billion organically* due to $0.3 billion higher losses in Grid, Hydro and Offshore Wind resulting from no longer allocating losses to noncontrolling interest holders following the buy-out of those joint venture interests from Alstom in the fourth quarter of 2018. The lower profit was also due to $0.2 billion related to project execution challenges, primarily on legacy contractscost. Our customers include healthcare providers as well as ~~price pressure~~researchers, including public, private and ~~execution challenges at Grid, increased research and development spend, depreciation on capitalized expenditures for Haliade-X and Cypress and the impact of U.S.-China tariffs.~~

~~For the year ended December 31, 2018, segment orders were down $0.1 billion (1%), segment revenues were flat and segment profit was down $0.4 billion (60%).~~

~~Backlog increased $1.2 billion (5%) primarily driven by Onshore Wind due to increased demand associated with U.S. PTCs, partially offset by~~academic institutions. We sell our products through a ~~decrease in Grid ACS and HVDC and non-repeat~~combination of a ~~6MW turbine order in Offshore Wind.~~

~~Orders decreased $0.2 billion (1%) organically due to lower ACS~~global sales force and ~~HVDC orders at Grid, partially offset by an increase in Onshore Wind due to~~a network of channel partners, including distributors and other third parties. On January 3, 2023, GE completed the ~~U.S. PTC cycle compared to the prior year.~~

~~Revenues were flat organically*. Services volume increased due to~~previously announced separation of its HealthCare business, into a ~~larger installed base and more repower units than in the prior year. Equipment volume decreased driven by lower Grid ACS and HVDC activity.~~

Profit decreased $0.4 billion (60%) organically* due to pricing pressure, unfavorable business mix as well as liquidated damages related to partner execution and project delays, and higher losses in Hydro and Offshore as we began fully consolidating these entities in the fourth quarter, partially offset by materials deflation and positive base cost productivity.

~~AVIATION~~separate, independent publicly traded company. See Note 28 for further information.

~~Products & Services.~~
Aviation designs and produces commercial and military aircraft engines, integrated digital components, electric power and mechanical aircraft systems. We also provide aftermarket services to support our products.

~~Commercial~~ – manufactures jet engines for commercial airframes. Our commercial engines power aircraft in all categories; regional, narrowbody and widebody. We also produce and market engines through joint ventures with Safran Group of France and United Technologies Corporation. Commercial provides maintenance, component repair and overhaul services (MRO), including sales of replacement parts. Our commercial engine installed base was approximately 37,800 units as of December 31, 2019.

~~Military~~ – manufactures jet engines for military airframes. Our military engines power a wide variety of military aircraft including fighters, bombers, tankers, helicopters and surveillance aircraft, as well as marine applications. We provide maintenance, component repair and overhaul services, including sales of replacement parts. Our military engine installed base was approximately 26,600 units as of December 31, 2019.

~~Systems& Other~~ – provides engines components, systems and services for commercial and military segments. This includes engines and components for business and general aviation segments, along with avionics systems, aviation electric power systems, flight efficiency and intelligent operation services, aircraft structures and Avio Aero. Additionally, we provide a wide variety of products and services including additive machines from Concept Laser and Arcam EBM, additive materials (including metal powders from AP&C), and additive engineering services through our consultancy brand AddWorks^TM.

*Non-GAAP Financial Measure

GE~~2019 FORM 10-K~~ 13



~~MD&A~~	~~SEGMENT OPERATIONS~~

~~Competition & Regulation.~~ The global businesses for aircraft jet engines, maintenance component repair and overhaul services (including parts sales) are highly competitive. Both U.S. and non-U.S. markets are important to the growth and success of the business. Product development cycles are long and product quality and efficiency are critical to success. Research and development expenditures are important in this business, as are focused intellectual property strategies and protection of key aircraft engine design, manufacture, repair and product upgrade technologies. Aircraft engine orders and systems tend to follow civil air travel and demand and military procurement cycles.

~~Our product, services and activities are subject to a number of regulators such as the U.S. Federal Aviation Administration (FAA), European Aviation Safety Agency (EASA) and other regulatory bodies.~~

~~Significant Trends & Developments.~~ Global passenger air travel continued to grow (measured in revenue passenger kilometers (RPK)) at 4.2%* in the current year. Oil prices remained stable, and global traffic growth was broad-based across global regions. We expect this trend to drive continued demand in the installed base of commercial engines and increased focus on newer, more fuel-efficient aircraft. Industry-load factors for airlines remain at all-time high levels above 80%*. Air freight volume decreased, particularly in international markets driven by economic conditions and slowing global trade.

As it relates to the military environment, the U.S. Department of Defense has increased its budget and foreign governments have increased spending to upgrade and modernize their existing fleets, creating future opportunities. Military shipments grew to 717 engines in 2019 from 674 engines in 2018. In 2019, the United States Army awarded Aviation a contract for its T901 engine as the replacement engine for the Army's Apache and Black Hawk helicopters, and in 2018 the United States Air Force selected Boeing as the contractor to produce 351 new advanced T-7A Red Hawk trainer aircraft powered by Aviation's F404 engine.

The installed base continues to grow with new product launches. We announced record commercial wins at the Paris Air Show in June 2019, some of which contributed to backlog growth of 22% from December 31, 2018. We continue to expect future orders as a result of these wins. In 2018, we shipped the first Passport engines, powering the Bombardier Global 7000 business jet. We are also continuing development on the Advanced Turbo Prop program and the GE9X engine, incorporating the latest technologies for application in the widebody aircraft space.

Total engineering, comprised of both company and customer funded spending, remained consistent with 2018. Company funded research and development spend has decreased compared to prior year. However, customer funded engineering efforts, primarily in our Military business, continue to increase. Our digital initiatives, including analytics on flight operations, technical operations, and advanced manufacturing, are enabling our customers, internal operations and suppliers to reduce costs, cycle time and improve quality.

~~LEAP continues to be a strong engine program for us, and we delivered 1,736 LEAP engines for Boeing and Airbus platforms in the year.~~

~~Refer to the Aviation and GECAS 737 MAX discussion in Consolidated Results for information regarding the Company's exposure related to the temporary fleet grounding of the Boeing 737 MAX.~~

Orders Sales
(In units, except where noted) 2019
2018
2019
2018

Commercial Engines 2,390
4,772
2,863
2,825
GEnx Engines(a) 164
407
296
251
LEAP Engines(a) 1,568
3,637
1,736
1,118
Military Engines 801
751
717
674
Spares Rate(b) $ 31.0
$ 27.5
(a) GEnx and LEAP engines are subsets of Commercial Engines
(b) Commercial externally shipped spares and spares used in time & material shop visits in millions of dollars per day.

(In billions) 2019
2018
2017

Equipment $ 39.1
$ 37.8
$ 34.1
Services 234.1
185.7
166.1
Total backlog $ 273.2
$ 223.5
$ 200.2

Equipment $ 14.5
$ 15.3
$ 10.6
Services 22.3
20.2
18.5
Total orders $ 36.7
$ 35.5
$ 29.1

Commercial $ 24.2
$ 22.7
$ 19.7
Military 4.4
4.1
4.0
Systems & Other 4.3
3.7
3.3
Total segment revenues $ 32.9
$ 30.6
$ 27.0

* Based on the latest available information from the International Air Transport Association

GE~~2019 FORM 10-K~~ 14



~~MD&A~~	~~SEGMENT OPERATIONS~~

(Dollars in billions) 2019 2018 2017

U.S. $ 13.4
$ 12.5
$ 10.8
Non-U.S.
Europe 7.5
7.0
6.3
Asia 6.6
5.8
5.2
Americas 1.6
1.5
1.1
Middle East and Africa 3.8
3.8
3.6
Total Non-U.S. $ 19.5
$ 18.0
$ 16.3
Total segment revenues $ 32.9
$ 30.6
$ 27.0

Non-U.S. revenues as a % of segment revenues 59 % 59 % 60 %

Equipment $ 12.8
$ 11.5
$ 10.2
Services 20.1
19.1
16.8
Total segment revenues(a) $ 32.9
$ 30.6
$ 27.0
Segment profit(b) $ 6.8
$ 6.5
$ 5.4
Segment profit margin 20.7 % 21.2 % 19.9 %


~~(a)~~	~~Aviation segment revenues represent 38% and 34% of total industrial segment revenues and total segment revenues, respectively, for the year ended December 31, 2019.~~


~~(b)~~	~~Aviation segment profit represents 65% of total industrial segment profit for the year ended December 31, 2019.~~

~~For the year ended December 31, 2019, segment orders were up $1.2 billion (3%), segment revenues were up $2.3 billion (8%) and segment profit was up $0.4 billion (5%).~~

~~Backlog as of December 31, 2019 increased $49.7 billion (22%) primarily due to an increase in long-term service agreements.~~

Orders increased $1.4 billion (4%) organically primarily driven by $1.9 billion of orders in the fourth quarter of 2019 for our newly formed Aeroderivatives joint venture between GE Power and Baker Hughes. Excluding the Aeroderivatives orders, total orders decreased $0.9 billion mainly due to a decline in LEAP engine orders as a result of the 737 MAX grounding, partially offset by services orders with continued strength in materials.

Revenues increased $2.6 billion (9%) organically*. Equipment revenues increased primarily due to 43 more military engine shipments and 38 more commercial units, including 618 more LEAP units, versus the prior year, partially offset by lower legacy commercial output in the CFM product line. Services revenues also increased primarily due to increased price, a higher commercial spare parts shipment rate and increased revenues on long-term service agreements.

Profit increased $0.4 billion (6%) organically* mainly due to services increased volume and increased price on commercial spare parts, and increased profitability on long-term service agreements. Profit also increased due to higher volume of commercial spares engines, including LEAP 1-B spare engines sold to our GECAS business to have an appropriate level of spare engines available in the market to meet customer needs in anticipation of the Boeing 737 MAX aircraft recertification, partially offset by continued negative mix from commercial engines, primarily the CFM to LEAP engine transition and Passport engine shipments. Additionally, we recorded a charge during the year related to the uncertainty of collection for an airline customer in a challenging financial position.

~~For the year ended December 31, 2018, segment orders were up $6.4 billion (22%), segment revenues were up $3.6 billion (13%) and segment profit was up $1.1 billion (20%).~~

~~Backlog as of December 31, 2018 increased $23.4 billion (12%) primarily due to an increase in services backlog of $19.6 billion.~~

~~Orders increased $6.4 billion (22%) organically mainly due to an increase in commercial and military equipment orders of $4.7 billion.~~

Revenues increased $3.5 billion (13%) organically*. Services revenues increased primarily due to a higher commercial spares shipment rate, as well as increased price. Equipment revenues increased primarily due to 57 more military engine shipments and 195 more commercial units, including 659 more LEAP units, versus the prior year, partially offset by lower legacy commercial output in the CFM and GE90 product lines.

Profit increased $1.1 billion (21%) organically* mainly due to increased price, increased volume, higher spare engine shipments and product and base cost productivity. These increases were partially offset by an unfavorable business mix driven by negative LEAP margin as well as higher overhaul shop costs due to increased volume and mix.

*Non-GAAP Financial Measure

GE~~2019 FORM 10-K~~ 15



~~MD&A~~	~~SEGMENT OPERATIONS~~

~~HEALTHCARE~~

~~Products & Services.~~ Healthcare provides essential healthcare technologies to developed and emerging markets and has expertise in medical imaging, digital solutions, patient monitoring and diagnostics, drug discovery, biopharmaceutical manufacturing technologies and performance improvement solutions that are the building blocks of precision health. Products and services are sold worldwide primarily to hospitals, medical facilities, pharmaceutical and biotechnology companies, and to the life science research market.

Healthcare Systems (HCS) – develops, manufactures, markets and services a broad suite of products and solutions used in the diagnosis, treatment and monitoring of patients that is encompassed in imaging, ultrasound ~~life~~and patient care ~~solutions and enterprise software and~~ solutions. Imaging includes magnetic resonance, computed tomography, molecular imaging, x-ray mammography, image-guided therapy systems, enterprise imaging, service capabilities and ~~complementary software and services, for use in general diagnostics, Women’s Health and image-guided therapies.~~digital solutions. Ultrasound includes ~~high-frequency soundwave~~consoles and probes, handheld devices, intraoperative imaging systems, visualization software, service capabilities and ~~complementary software and services, for use in diagnostics tailored to a wide range of clinical settings. Life~~digital solutions. Patient Care Solutions ~~(LCS)~~(PCS) includes ~~clinical monitoring~~consoles and ~~acute care~~probes, handheld devices, intraoperative imaging systems, visualization software, service capabilities, and ~~complementary software and services, for use in intensive care, anesthesia delivery, diagnostic cardiology and perinatal care. Enterprise Software & Solutions (ESS) includes enterprise~~ digital ~~consulting and healthcare technology management offerings designed to improve efficiency in healthcare delivery and expand global access to advanced health care.~~solutions.

~~Life Sciences~~Pharmaceutical Diagnostics (PDx) – delivers products, services and manufacturing solutions for drug discovery, the biopharmaceutical industry, and cellular and gene therapy technologies, so that scientists and specialists can discover new ways to predict, diagnose and treat disease. It also researches, manufactures and markets innovative imaging agents used during medical scanning procedures to highlight organs, tissue and functions inside the human body, to aid physicians in the early detection, diagnosis and management of disease through advanced in-vivo diagnostics. These products include both contrast imaging and molecular imaging agents.

BioPharma – This business was sold on March 31, 2020. It delivered products, services and manufacturing solutions for drug discovery, biopharmaceutical production, and cellular and gene therapy technologies.

Competition & Regulation.~~Healthcare~~ HealthCare competes with a variety of U.S. and non-U.S. manufacturers and services providers. Customers require products and services that allow them to provide better access to healthcare, improve the affordability of care and improve the quality of patient outcomes. ~~Technology and solution innovation to provide products that meet these customer requirements and competitive pricing are among the key~~Key factors affecting competition ~~for these products~~include technological innovations, productivity solutions, competitive pricing and the ability to provide lifecycle services. New technologies and solutions could make our products and services obsolete unless we continue to develop new and improved ~~offerings~~.

offerings. Our products are subject to regulation by numerous government agencies, as well as laws and regulations that apply to various reimbursement ~~schemes~~systems or other government funded healthcare ~~programs~~.programs.

Significant Trends & Developments.~~In February 2019, we announced~~ Market demand and RPO conversion remain positive despite inflationary and supply challenges continuing to impact the industry. Global spending in healthcare is solid and expected to continue, particularly in public markets across Europe and Asia. We are experiencing strong order growth in our China equipment business due to government stimulus programs. Overall, continued patient demand is leading providers to invest in products and services that increase productivity and reduce operating costs, an ~~agreement~~important dynamic as healthcare systems modernize post-pandemic and prepare for increased demand longer-term. Actions of our supply chain, engineering and manufacturing teams, as well as proactive supplier engagement are driving fewer delays in securing key materials and have improved our ability to sell our BioPharma business to Danaher Corporation for total consideration of approximately $21.4 billion subject to certain adjustments. In the first quarter of 2019, we classified BioPharma as a business held for sale. We expect to complete the sale in the first quarter of 2020, subject to regulatory approval, providing us flexibility and optionality with respectdeliver products to our ~~remaining Healthcare businesses.~~

~~Effective January 1, 2019, the Healthcare Equipment Finance (HEF) financing business within~~customers. However, shortages are still impacting our ~~Capital segment was transferred~~ability to ~~our Healthcare segment and~~deliver certain products. Our expectation is ~~presented within Healthcare Systems.~~

~~The global healthcare market has continued~~that supply chain pressures will continue to expand, driven by macro trends relating to growing and aging populations, increasing chronic and lifestyle-related disease, accelerating demand for healthcare in emerging markets, increasing demand for biologic drugs and insulin, and increasing use of diagnostic imaging. Technological innovation that makes it possible to address an increasing number of diseases, conditions and patients in a more cost-effective manner has also driven growth across each of our global markets.

The China market was a source of growth in 2018 in both the public market and private markets. Dynamics related to tariffs tempered this growth in 2019. The impact of tariffs on certain types of medical equipment and components that we import from China resulted in increased product costs.improve. We continue to ~~take mitigating actions including moving~~experience inflationary pressure within our ~~sourcing and manufacturing for these parts outside~~supply chain, however, we have partially offset this pressure by adjusting pricing of China. In the U.S., the underlying market remains stable, with a trend toward customers looking for more complete solutions that offer greater capacity and productivity. However, the market continues to face uncertainties driven by the increasing cost of providing healthcare that has led to a trend of increasing hospital and provider consolidation.

~~The Healthcare Systems equipment market continues to expand at low single-digit rates or better, while demand continues for services on new equipment~~our products, as well as onmanaging discretionary and fixed cost in our ~~existing installed base. However, there is short-term variation driven by market-specific political~~business and ~~economic cycles. Growth in emerging markets is driven by long-term trends of expanding demand~~prioritizing research and ~~access to healthcare. Developed markets are expected to remain steady in the near term driven by macro trends in the healthcare industry.~~

The Life Sciences market, which encompasses Bioprocess and Pharmaceutical diagnostics, continues to be strong. The Bioprocess market is growing at a high single-digit rate, driven by growth in biologic drugs. The Pharmaceutical diagnostics business is positioned in the contrast agent and nuclear tracer markets. This market is expected to grow, driven by continued diagnostic imaging procedure growth and increasing contrast and tracer-enhancement of these same procedures, as these products help to increase the precision of the diagnostic information provided to clinicians.

GE~~2019 FORM 10-K~~ 16development investments.



~~MD&A~~	~~SEGMENT OPERATIONS~~

We continue ~~focusing~~to grow and invest in precision health, with a focus on creating new products and digital solutions as well as expanding uses of existing offerings that are tailored to the different needs of our global customers. We ~~strive to introduce technology innovation~~introduced over 40 solutions that ~~enables our customers~~aim to improve ~~their~~ patient outcomes and ~~operational outcomes as they diagnose, treat~~increase healthcare efficiency at the Radiological Society of North America’s (RSNA) 2022 Annual Meeting. For example, we announced a platform of four inventive components, which are SIGNA One, a new anticipatory user interface with virtually no learning curve; AIR Recon DL; AIR Coils; and ~~monitor~~automated workflow solutions, that leverage AI and deep learning to ensure the smoothest scanning experience in magnetic resonance (MR) imaging. In January 2023 we announced we entered into an ~~increasing number of medical conditions and patients. GE Senographe Pristina with Dueta was named~~agreement to TIME magazine’s list of 2019’s Best Inventions for its patient-assisted mammography exam feature. Additionally, we launched Revolution Maxima CT, the latest addition to the GE Revolution family of intelligent CT scanners during the quarter. Designed to maximize productivityacquire IMACTIS, an innovator in the ~~CT workflow, Revolution Maxima offers~~rapidly growing field of computed tomography (CT) interventional guidance across an array of care areas. IMACTIS created CT-Navigation™, an ergonomic universal solution that provides stereotactic needle guidance, enabling intuitive pre-planning and continuous control throughout a ~~variety~~wide range of ~~applications~~procedures, from diagnosis to treatment. We remain committed to innovate and ~~services~~invest to ~~improve efficiency, including its new, AI-based Auto Positioning solution (cleared for sale in all planned major worldwide markets in January 2020).~~create more integrated, efficient and personalized precision care.


RPO	December 31, 2022		December 31, 2021		December 31, 2020
Equipment	$	4,739	$	4,232	$	3,465
Services	9,676		10,375		9,458
Total RPO	$	14,415	$	14,606	$	12,923

*Non-GAAP Financial Measure

2022 FORM 10-K 13


(Dollars in billions)	2019		2018		2017
SEGMENT REVENUES AND PROFIT							SEGMENT REVENUES AND PROFIT	2022			2021			2020

Healthcare Systems (HCS)							Healthcare Systems (HCS)	$	16,489		$	15,694		$	15,387
Pharmaceutical Diagnostics (PDx)							Pharmaceutical Diagnostics (PDx)	1,972			2,031			1,792
BioPharma							BioPharma	—			—			830
Total segment revenues							Total segment revenues	$	18,461		$	17,725		$	18,009

Equipment	$	7.0	$	6.3	$	6.4	Equipment	$	9,643		$	9,104		$	9,992
Services	11.5		11.2		11.7		Services	8,818			8,620			8,017
Total backlog	$	18.5	$	17.4	$	18.1
Total segment revenues							Total segment revenues	$	18,461		$	17,725		$	18,009

Equipment	$	13.0	$	12.6	$	12.2
Services	8.2		8.3		8.2
Total orders	$	21.2	$	20.9	$	20.4
Segment profit							Segment profit	$	2,705		$	2,966		$	3,060
Segment profit margin							Segment profit margin	14.7		%	16.7		%	17.0		%

Healthcare Systems $ 14.6
$ 14.9
$ 14.5
Life Sciences 5.3
4.9
4.6
Total segment revenues $ 19.9
$ 19.8
$ 19.0

U.S. $ 8.5
$ 8.6
$ 8.4
Non-U.S.
Europe 4.1
4.2
3.9
Asia 5.4
5.2
4.9
Americas 1.1
1.0
1.0
Middle East and Africa 0.8
0.8
0.9
Total Non-U.S. $ 11.4
$ 11.2
$ 10.6
Total segment revenues $ 19.9
$ 19.8
$ 19.0

Non-U.S. revenues as a % of segment revenues 57 % 57 % 56 %

Equipment $ 11.6
$ 11.4
$ 10.8
Services 8.4
8.4
8.2
Total segment revenues(a) $ 19.9
$ 19.8
$ 19.0
Segment profit(b) $ 3.9
$ 3.7
$ 3.5
Segment profit margin 19.5 % 18.7 % 18.3 %


~~(a)~~	~~Healthcare segment revenues represent 23% and 21% of total industrial segment revenues and total segment revenues, respectively, for the year ended December 31, 2019.~~


~~(b)~~	~~Healthcare segment profit represents 37% of total industrial segment profit for the year ended December 31, 2019.~~

For the year ended December 31, ~~2019, segment orders were up $0.3 billion (1%),~~2022, segment revenues were up ~~$0.2 billion (1%) and segment profit was up $0.2 billion (5%).~~

~~Backlog as of December 31, 2019 increased $1.0 billion (6%) primarily due to an increase in equipment backlog of~~ $0.7 ~~billion primarily driven by Healthcare Systems.~~

~~Orders increased $0.9 billion (4%) organically, primarily attributable to continued strength in Life Sciences.~~

~~Revenues increased $0.7 billion (3%) organically* due to higher volume in Life Sciences, driven by BioPharma and Pharmaceutical Diagnostics, as well as higher volume in Healthcare Systems.~~

Profit increased $0.3 billion (7%) organically* primarily driven by volume growth and cost productivity due to cost reduction actions, including sourcing and logistic initiatives, design engineering and restructuring actions. These increases were partially offset by inflation, the impact of U.S.-China tariffs, and investments in programs including digital product innovations and Healthcare Systems new product introductions.

*Non-GAAP Financial Measure

GE~~2019 FORM 10-K~~ 17



~~MD&A~~	~~SEGMENT OPERATIONS~~

~~For the year ended December 31, 2018, segment orders were up $0.5 billion (2%), segment revenues were up $0.8~~ billion (4%) and segment profit was ~~up $0.2~~down $0.3 billion ~~(6%~~(9%).

~~Backlog~~RPO as of December 31, ~~2018~~2022 decreased ~~$0.7~~$0.2 billion ~~(4%~~(1%), from December 31, 2021, primarily due to ~~a decrease~~the impact of contract renewal timing in services, ~~backlog of $0.5 billion.~~

~~Orders increased $0.6 billion (3%) organically, primarily due to Life Sciences up 8%, while Healthcare Systems was up 1%.~~partially offset by an increase in equipment orders.

Revenues increased ~~$0.9~~$1.3 billion ~~(5%~~(7%) organically* ~~due to higher volume in Healthcare Systems, attributable to global growth in~~. Equipment revenues increased, driven by Imaging and Ultrasound, mainly due to strong growth in ~~both developed regions such as~~ the U.S. and Europe, ~~as well as developing regions such as China~~the Middle East and ~~emerging markets. Volume also increased in Life Sciences, driven by Bioprocess and Pharmaceutical Diagnostics,~~Africa, partially offset by ~~price pressure at Healthcare Systems.~~China. Services revenues increased, driven by the continued growth of HCS and PDx.

Profit ~~increased $0.3~~decreased $0.1 billion ~~(8%~~(2%) organically*, ~~primarily~~ driven by ~~volume growth~~increased material inflation and logistics cost ~~productivity due to cost reduction actions, including sourcing and logistic initiatives, design engineering and restructuring actions. These increases were~~across all product lines, partially offset by ~~price pressure at Healthcare Systems, inflation, investments in programs including digital product innovations~~increased volume and ~~Healthcare Systems new product introductions~~price. We also continued to make planned research and ~~the nonrecurrence of a small gain on the disposition of a non-strategic operation in Life Sciences.~~

~~CAPITAL~~development and commercial investments.

~~Products & Services.~~ Capital is the financial services division of GE focused on customers and markets aligned with GE’s industrial businesses across developed and emerging markets. We provide financial products and services around the globe that build on GE’s industry specific expertise in aviation, power, renewables, healthcare and other activities to capitalize on market-specific opportunities. While there are customer benefits and knowledge sharing advantages linking GE’s industrial and capital businesses, the financial and operational relationships are maintained with arms-length terms as though the businesses were independent.

~~GE Capital Aviation Services (GECAS)~~ - is an aviation lessor and financier with over 50 years of experience. GECAS provides a wide range of assets including narrow- or widebody aircraft, regional jets, turboprops, freighters, engines, helicopters, financing and materials. GECAS offers a broad array of financing products and services on these assets including operating leases, sale-leasebacks, asset trading and servicing, and airframe parts management. GECAS owns, services or has on order more than 1,700 aircraft and serves approximately 225 customers in 75 countries from a network of 20 offices around the world.

~~Energy Financial Services (EFS)~~ ~~- a global energy investor that provides financial solutions and underwriting capabilities for Power and Renewable Energy to meet rising demand and sustainability imperatives.~~

~~Industrial Finance (IF)~~ ~~- its Working Capital Solutions (WCS) business provides working capital services to GE and through December 31, 2018, it also provided healthcare equipment financing.~~

~~Insurance~~ -CORPORATE. ~~Refer to the Other Items - Insurance section within MD&A for a detailed business description.~~

~~Competition & Regulation.~~ The businesses in which we engage are highly competitive and are subject to competition from various types of financial institutions including banks, equity investors, leasing companies, finance companies associated with manufacturers and insurance and reinsurance companies. For our GECAS operations, competition is based on lease rate financing terms, aircraft delivery dates, condition and availability, as well as available capital demand for financing. For our EFS operations, competition is primarily based on deal structure and terms. As we compete globally, EFS’ success is sensitive to project execution and merchant electricity prices, as well as the economic and political environment of each country in which we do business.

The businesses in which we engage are subject to a variety of U.S. federal and state laws and regulations. Our insurance operations are regulated by the insurance departments in the states in which they are domiciled or licensed, with the Kansas Insurance Department (KID) being our primary state regulator.

~~Significant Trends & Developments.~~ In 2018, we announced plans to take actions to make GE Capital smaller and more focused, including a substantial reduction in the size of GE Capital’s EFS and IF businesses. With respect to this announcement, we completed $15 billion of asset reductions during 2018 and approximately $12 billion of asset reductions during 2019, including approximately $8 billion during the fourth quarter of 2019. In August 2019, we announced that we entered into a definitive agreement for Apollo Global Management, LLC and Athene Holding Ltd. to purchase PK AirFinance, an aviation lending business, from GECAS and we completed the sale of a substantial portion of the business for a small premium in the fourth quarter of 2019. We expect to complete the sale of the remaining assets in the first half of 2020. We continue to evaluate strategic options to accelerate the further reduction in the size of GE Capital, some of which could have a material financial charge depending on the timing, negotiated terms and conditions of any ultimate arrangements.

~~GE Capital received $1.5 billion and $2.5 billion in capital contributions from GE in the second quarter and fourth quarter of 2019, respectively.~~

~~We annually perform premium deficiency testing in the aggregate across our run-off insurance portfolio.~~ We performed this year's testing in the third quarter of 2019, and, as a result, identified a premium deficiency resulting in a $1.0 billion pre-tax ($0.8 billion after-tax) charge to earnings. See the Other Items - Insurance section within MD&A and Note 12 to the consolidated financial statements for further information.

GE Capital made capital contributions to its insurance subsidiaries of $2.0 billion and $1.9 billion in the first quarters of 2020 and 2019, respectively, and expects to provide further capital contributions of approximately $7 billion through 2024. See the Capital Resources and Liquidity section within MD&A for further information.

*Non-GAAP Financial Measure

GE~~2019 FORM 10-K~~ 18



~~MD&A~~	~~SEGMENT OPERATIONS~~

~~Effective January 1, 2019, the HEF business was transferred from our Capital segment to our Healthcare segment.~~

~~Refer to the Aviation and GECAS 737 MAX discussion in Consolidated Results within MD&A for information regarding the Company's exposure related to the temporary fleet grounding of the Boeing 737 MAX.~~

(Dollars in billions) 2019
2018

GECAS $ 38.0
$ 41.7
EFS 1.8
3.0
IF and WCS 9.0
15.8
Insurance 46.3
40.3
Other continuing operations 22.5
18.6
Total segment assets $ 117.5
$ 119.3



~~GE Capital debt to equity ratio~~	~~3.86:1~~	~~5.74:1~~

(In billions) 2019
2018
2017

GECAS $ 4.9
$ 4.9
$ 5.1
EFS 0.1
0.1
(0.5 )
IF and WCS 0.8
1.5
1.5
Insurance 2.9
2.9
2.9
Other continuing operations —
0.1
—
Total segment revenues(a) $ 8.7
$ 9.6
$ 9.1

GECAS $ 1.0
$ 1.2
$ 2.1
EFS 0.1
0.1
(1.5 )
IF and WCS 0.2
0.3
0.5
Insurance (0.6 ) (0.2 ) (7.2 )
Other continuing operations(b) (1.3 ) (1.9 ) (0.7 )
Total segment profit $ (0.5 ) $ (0.5 ) $ (6.8 )


~~(a)~~	~~Capital~~ ~~segment revenues represent 9% of total segment revenues for the year ended December 31, 2019.~~

~~(b)~~

Other continuing operations primarily comprised excess interest costs from debt previously allocated to assets that have been sold as part of the GE Capital Exit Plan, preferred stock dividend costs and interest costs not allocated to GE Capital segments, which are driven by GE Capital’s interest allocation process. Interest costs are allocated to GE Capital segments based on the tenor of their assets using the market rate at the time of origination, which differs from the asset profile when the debt was originated. As a result, actual interest expense is higher than interest expense allocated to the remaining GE Capital segments. Substantially all preferred stock dividend costs will become a GE obligation in January 2021. See Note 16 to the consolidated financial statements for further information. The excess interest costs from debt previously allocated to assets that have been sold are expected to run off by 2020. In addition, we anticipate unallocated interest costs to gradually decline as debt matures and/or is refinanced.

(Dollars in billions) 2019
2018
2017

U.S. $ 4.1
$ 5.3
$ 4.4
Non-U.S.
Europe 1.6
1.4
1.5
Asia 1.5
1.4
1.4
Americas 0.7
0.6
0.8
Middle East and Africa 0.8
0.9
1.0
Total Non-U.S. 4.6
4.3
4.7
Total segment revenues $ 8.7
$ 9.6
$ 9.1

Non-U.S. revenues as a % of segment revenues 53 % 45 % 52 %

~~For the year ended December 31, 2019, segment revenues decreased $0.8 billion (8%) and segment losses were flat.~~

~~Capital revenues decreased primarily due to~~ ~~volume declines and lower gains, partially offset by lower impairments. Capital losses were flat primarily due to~~ a $1.0 billion pre-tax charge identified through the completion of our annual insurance premium deficiency review, lower gains, lower tax benefits and volume declines, offset by lower impairments, lower excess interest costs and tax law changes. Gains were $0.7 billion and $0.8 billion in 2019 and 2018, respectively, which primarily related to sales of certain GECAS aircraft and engines resulting in gains of $0.4 billion and $0.3 billion in 2019 and 2018, respectively, as well as the sale of equity method investments resulting in gains of $0.2 billion in 2019 at EFS and the sale of EFS’ debt origination business and equity investments resulting in gains of $0.4 billion in 2018.

GE~~2019 FORM 10-K~~ 19



~~MD&A~~	~~SEGMENT OPERATIONS~~

~~For the year ended December 31, 2018, segment revenues increased $0.5 billion (5%) and segment losses decreased $6.3 billion (93%).~~

Capital revenues increased primarily due to lower impairments and volume growth, partially offset by lower gains. Capital losses decreased primarily due to the nonrecurrence of the 2017 charges associated with the GE Capital insurance premium deficiency review and EFS strategic actions, partially offset by the nonrecurrence of 2017 tax benefits.

~~CORPORATE ITEMS AND ELIMINATIONS.~~ Corporate Items and Eliminations is a caption used in the Segment Operations – Summary of Reportable Segments table to reconcile the aggregated results of our segments to the consolidated results of the Company. The Corporate ~~Items and Eliminations~~ amounts related to revenues and earnings include the results of disposed businesses, certain amounts not included in ~~industrial~~ operating segment results because they are excluded from measurement of their operating performance for internal and external purposes and the elimination of ~~inter-segment~~intersegment activities. In addition, the Corporate ~~Items and Eliminations~~ amounts related to earnings include certain costs of our principal retirement plans, significant, higher-cost restructuring programs, separation costs, and other costs reported in ~~Corporate, and the unallocated portion of certain corporate costs (such as research and development spending and costs related to our Global Growth Organization).~~Corporate.

Corporate ~~items and eliminations~~ includes the results of ~~our Lighting segment and~~the GE Digital business ~~for all periods presented.~~

(In millions) 2019
2018
2017

Revenues
Corporate revenues $ 1,791
$ 2,783
$ 2,897
Eliminations and other (2,096 ) (2,110 ) (2,464 )
Total Corporate Items and Eliminations $ (305 ) $ 673
$ 433

Operating profit (cost)
Gains (losses) on disposals and held for sale businesses $ 4
$ 1,370
$ 926
Restructuring and other charges (1,315 ) (2,952 ) (3,023 )
Unrealized gains (losses)(a) 793
—
—
Goodwill impairments (Note 8) (1,486 ) (22,136 ) (1,165 )
Adjusted total corporate operating costs (Non-GAAP) (1,693 ) (1,255 ) (1,701 )
Total Corporate Items and Eliminations (GAAP) $ (3,698 ) $ (24,973 ) $ (4,963 )
Less: gains (losses), impairments and restructuring & other (2,004 ) (23,719 ) (3,262 )
Adjusted total corporate operating costs (Non-GAAP) $ (1,693 ) $ (1,255 ) $ (1,701 )

~~(a) Related to mark-to-market impact on~~and our ~~Baker Hughes shares for 2019. See Notes 2, 3 and 19 to the consolidated~~remaining GE Capital businesses, our former financial ~~statements~~services business, including our run-off Insurance business (see Other Items - Insurance for further ~~information.~~information) and the Lighting segment through its disposition in the second quarter of 2020.


REVENUES AND OPERATING PROFIT (COST)										REVENUES AND OPERATING PROFIT (COST)	2022		2021		2020
Corporate revenues										Corporate revenues	$	882	$	945	$	1,313
Insurance revenues (Note 12)										Insurance revenues (Note 12)	2,954		3,106		2,865
Eliminations and other										Eliminations and other	(1,030)		(1,490)		(1,650)
Total Corporate revenues										Total Corporate revenues	$	2,806	$	2,561	$	2,528

Gains (losses) on purchases and sales of business interests										Gains (losses) on purchases and sales of business interests	$	51	$	(44)	$	12,452
Gains (losses) on equity securities										Gains (losses) on equity securities	76		1,921		(1,891)
Restructuring and other charges (Note 20)										Restructuring and other charges (Note 20)	(918)		(380)		(680)
Separation costs (Note 20)										Separation costs (Note 20)	(973)		—		—
Steam asset sale impairment (Notes 6 and 7)										Steam asset sale impairment (Notes 6 and 7)	(824)		—		(363)
SEC Settlement charge										SEC Settlement charge	—		—		(200)
Russia and Ukraine charges										Russia and Ukraine charges	(263)		—		—

Goodwill impairments, net of noncontrolling interests of $149 million in 2020 (Note 7)										Goodwill impairments, net of noncontrolling interests of $149 million in 2020 (Note 7)	—		—		(728)
Insurance profit (loss) (Note 12)										Insurance profit (loss) (Note 12)	60		566		197
Adjusted total Corporate operating costs (Non-GAAP)										Adjusted total Corporate operating costs (Non-GAAP)	(621)		(1,170)		(1,602)
Total Corporate operating profit (cost) (GAAP)										Total Corporate operating profit (cost) (GAAP)	$	(3,413)	$	892	$	7,184
Less: gains (losses), impairments, Insurance, and restructuring & other										Less: gains (losses), impairments, Insurance, and restructuring & other	(2,792)		2,062		8,786
Adjusted total Corporate operating costs (Non-GAAP)										Adjusted total Corporate operating costs (Non-GAAP)	$	(621)	$	(1,170)	$	(1,602)

Functions & operations	$	(1,252	)	$	(1,362	)	$	(2,007	)	Functions & operations	$	(568)	$	(848)	$	(1,303)
Environmental, health and safety (EHS) and other items										Environmental, health and safety (EHS) and other items	(94)		(302)		(104)
Eliminations	(184		)	(61		)	9			Eliminations	41		(20)		(195)
Environmental, health & safety (EHS) and other items	(258		)	$	169		$	297
Adjusted total corporate operating costs (Non-GAAP)	$	(1,693	)	$	(1,255	)	$	(1,701	)
Adjusted total Corporate operating costs (Non-GAAP)										Adjusted total Corporate operating costs (Non-GAAP)	$	(621)	$	(1,170)	$	(1,602)

~~Changes in key assumptions for our principal pension plans would have the following effects.~~

Discount rate – A 25 basis point decrease in discount rate would increase pension cost in the following year by about $0.2 billion and would increase the pension benefit obligation at year-end by about $2.3 billion.

~~Expected return on assets – A 50 basis point decrease in the expected return on assets would increase pension cost in the following year by about $0.3 billion.~~

~~See Other Consolidated Information – Postretirement Benefit Plans section within MD&A and Note 13 to the consolidated financial statements for further information.~~

INCOME TAXES. Our annual tax rate is based on our income, statutory tax rates and tax planning opportunities available to us in the various jurisdictions in which we operate. Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining our tax expense and in evaluating our tax positions, including evaluating uncertainties. We review our tax positions quarterly and adjust the balances as new information becomes available. Our income tax rate is significantly affected by the tax rate on our global operations. In addition to local country tax laws and regulations, this rate can depend on the extent earnings are indefinitely reinvested outside the U.S. Historically U.S. taxes were due upon repatriation of foreign earnings. Due to the enactment of U.S. tax reform ~~most~~in 2017, repatriations of available cash from foreign earnings ~~will~~are expected to be free of U.S. federal income tax but may incur withholding or state taxes. Indefinite reinvestment is determined by management’s judgment about and intentions concerning the future operations of the Company. Most of these earnings have been reinvested in active non-U.S. business operations. ~~At December 31, 2019, we have not changed our indefinite~~We reassess reinvestment ~~decision as a result~~ of ~~tax reform but will reassess this~~earnings on an ongoing basis. In 2022, in connection with the execution of the Company's plans to prepare for the spin-off of GE HealthCare, we incurred $0.1 billion of tax due to repatriation of previously reinvested earnings.

GE~~2019 FORM 10-K~~ 36



~~MD&A~~	~~CRITICAL ACCOUNTING ESTIMATES~~

Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss and tax credit carryforwards. We evaluate the recoverability of ~~these future~~deferred income tax ~~deductions and credits~~assets by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning ~~strategies. These sources of income~~strategies, which heavily rely ~~heavily~~ on estimates. We use our historical experience and our short- and long-range business forecasts to provide insight. Further, our global and diversified business portfolio gives us the opportunity to employ various prudent and feasible tax planning strategies to facilitate the recoverability of future deductions. Amounts recorded for deferred tax assets related to non-U.S. net operating losses, net of valuation allowances, were ~~$2.2~~$1.3 billion and ~~$3.1~~$1.5 billion at December 31, ~~2019~~2022 and ~~2018, including $0.2~~2021, respectively. Of this, $0.1 billion ~~related to held for sale assets~~ at both December 31, ~~2019~~2022 and ~~$0.2 billion and $0.5 billion at December 31, 2019 and 2018, respectively,~~2021, were associated with losses reported in discontinued operations, primarily related to our legacy financial services businesses and for 2018, our Baker Hughes segment. Such year-end 2019 amounts are expected to be fully recoverable within the applicable statutory expiration periods. To the extent we consider it more likely than not that a deferred tax asset will not be recovered, a valuation allowance is established.

businesses. See Other Consolidated Information – Income Taxes section ~~within MD&A~~ and ~~Note~~Notes 1 and 15 ~~to the consolidated financial statements~~ for further information.

LOSS CONTINGENCIES. Loss contingencies are ~~uncertain and unresolved matters~~existing conditions, situations or circumstances involving uncertainty as to possible loss that ~~arise in the ordinary course of business and result from~~will ultimately be resolved when future events occur or ~~actions by others that have the potential~~fail to ~~result in a future loss.~~occur. Such contingencies include, but are not limited to, environmental obligations, litigation, regulatory investigations and proceedings, product quality and losses resulting from other events and developments. When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss. When there appears to be a range of possible costs with equal likelihood, liabilities are based on the low-end of such range. However, the likelihood of a loss with respect to a particular contingency is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the information available and the potential effect of future events and negotiations with or decisions by third parties that will determine the ultimate resolution of the contingency. Moreover, it is not uncommon for such matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated to determine both the likelihood of potential loss and whether it is possible to reasonably estimate a range of possible loss. Disclosure is provided for material loss contingencies when a loss is probable but a reasonable estimate cannot be made, and when it is reasonably possible that a loss will be incurred or ~~when it is reasonably possible that~~ the amount of a loss will exceed the recorded provision. We regularly review contingencies to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or range of loss can be made. See Note ~~23 to the consolidated financial statements~~24 for further information.

OTHER ITEMS

INSURANCE.The run-off insurance operations of North American Life and Health (NALH) primarily include Employers Reassurance Corporation (ERAC) and Union Fidelity Life Insurance Company (UFLIC). ERAC was formerly part of Employers Reinsurance Corporation (ERC) until the sale of ERC to Swiss Re in 2006. UFLIC was formerly part of Genworth Financial Inc. (Genworth) but was retained by GE after Genworth’s initial public offering in 2004.

~~ERAC~~ primarily assumes long-term care insurance and life insurance from numerous cedents under various types of reinsurance

treaties and stopped accepting new policies after 2008. UFLIC primarily assumes long-term care insurance, structured settlement

annuities with and without life contingencies and variable annuities from Genworth Financial Inc. (Genworth) and has been closed to new business since 2004.

~~The vast majority of NALH’s reinsurance exposures are long-duration arrangements that still involve substantial levels of premium~~

collections and benefit payments even though ERAC and UFLIC have not entered into new reinsurance treaties in about a decade. These long-duration arrangements involve a number of direct writers and contain a range of risk transfer provisions and other contractual elements. In many instances, these arrangements do not transfer to ERAC or to UFLIC 100 percent of the risk embodied in the encompassed underlying policies issued by the direct writers. Furthermore, we cede insurance risk to third-party reinsurers for a portion of our insurance contracts, primarily on long-term care insurance policies.

Our run-off insurance liabilities and annuity benefits primarily comprise a liability for future policy benefits for those insurance contract claims not yet incurred and claim reserves for claims that have been incurred or are estimated to have been incurred but not yet reported. The insurance liabilities and annuity benefits amounted to $39.8 billion and $35.6 billion and primarily relate to individual long-term care insurance reserves of $21.0 billion and $20.0 billion and structured settlement annuities and life insurance reserves of $11.1 billion and $11.2 billion, at December 31, 2019 and December 31, 2018, respectively. The increase in insurance liabilities and annuity benefits of $4.2 billion from December 31, 2018 to December 31, 2019, is primarily due to an adjustment of $3.4 billion resulting from an increase in unrealized gains on investment securities that would result in a premium deficiency should those gains be realized and a $1.0 billion adjustment arising from the annual premium deficiency testing completed in third quarter 2019, as discussed further below.

In addition to NALH, Electric Insurance Company (EIC) is a property and casualty insurance company primarily providing insurance to GE and its employees with net claim reserves of $0.3 billion at December 31, 2019.

GE~~2019 FORM 10-K~~ 37



~~MD&A~~	~~OTHER ITEMS~~

incurred. We regularly monitor emerging experience in our run-off insurance operations and industry developments to identify trends that may help us refine our reserve assumptions and evaluate opportunities to reduce our insurance risk profile and improve the results of our run-off insurance operations. These opportunities may include the pursuit of future premium rate increases and benefit reductions on long-term care insurance contracts with our ceding companies; recapture and reinsurance transactions to reduce risk where economically justified; investment strategies to improve asset and liability matching and enhance investment portfolio yields; and managing our expense levels.assumptions.

Key Portfolio Characteristics

Long-term care insurance contracts. The long-term care insurance contracts we reinsure provide coverage at varying levels of benefits to policyholders and may include attributes (e.g., lifetime benefit periods, inflation protection options, and joint life policies) that could result in claimants being on claim for longer periods or at higher daily claim costs, or alternatively limiting the premium paying period, compared to contracts with a lower level of benefits. For example, policyholders with a lifetime benefit period could receive coverage up to the specified daily maximum as long as the policyholder is claim eligible and receives care for covered services; inflation protection options increase the daily maximums to protect the policyholder from the rising cost of care with some options providing automatic annual increases of 3% to 5% or policyholder elected inflation-indexed increases for increased premium; joint life policies provide coverage for two lives which permit either life under a single contract to receive benefits at the same time or separately; and premium payment options may limit the period over which the policyholder pays premiums while still receiving coverage after premium payments cease, which may limit the impact of our benefit from future premium rate increases.

The ERAC long-term care insurance portfolio comprises more than two-thirds of our total long-term care insurance reserves and is assumed from approximately 30 ceding companies through various types of reinsurance and retrocession contracts having complex terms and conditions. Compared to the overall long-term care insurance block, it has a lower average attained age with a larger number of policies (and covered lives, as over one-third of the policies are joint life policies), with lifetime benefit periods and/or with inflation protection options which may result in a higher potential for future claims.

2022 FORM 10-K 22

The UFLIC long-term care insurance block comprises the remainder of our total long-term care insurance reserves and is more mature with policies that are more uniform, as it is assumed from a single ceding company, Genworth, and has fewer policies with lifetime benefit periods, no joint life policies and slightly more policies with inflation protection options.

Long-term care insurance policies allow the issuing insurance entity to increase premiums, or alternatively allow the policyholder the option to decrease benefits, with approval by state regulators, should actual experience emerge worse than what was projected when such policies were initially underwritten. As a reinsurer, we are unable to directly or unilaterally pursue long-term care insurance premium rate increases. However, we engage actively with our ceding company clients in pursuing allowed long-term care insurance premium rate increases. The amount of times that rate increases have occurred varies by ceding company.

As further described within the Premium Deficiency Testing section below, we reconstructed our future claim cost projections in 2017 utilizing trends observed in our emerging experience for older claimant ages and later duration policies. Also described within that section are key assumption changes in 2019.

Presented in the table below are GAAP and statutory reserve balances and key attributes of our long-term care insurance portfolio.

December 31, 2019 (Dollars in billions, except where noted)
ERAC UFLIC Total

Gross GAAP future policy benefit reserves and claim reserves $ 15.2
$ 5.8
$ 21.0
Gross statutory future policy benefit reserves and claim reserves(a) 23.7
7.1
30.8
Number of policies in force 196,000
67,000
263,000
Number of covered lives in force 261,000
67,000
328,000
Average policyholder attained age 75
83
77
Gross GAAP future policy benefit reserve per policy (in actual dollars) $ 66,500
$ 56,000
$ 64,000
Gross GAAP future policy benefit reserve per covered life (in actual dollars) 50,000
56,000
51,000
Gross statutory future policy benefit reserve per policy (in actual dollars)(a) 109,000
74,000
100,000
Gross statutory future policy benefit reserve per covered life (in actual dollars)(a) 81,000
74,000
80,000
Percentage of policies with:
Lifetime benefit period 70 % 35 % 61 %
Inflation protection option 81 % 91 % 84 %
Joint lives 34 % — % 25 %
Percentage of policies that are premium paying 73 % 82 % 75 %
Policies on claim 10,700
9,300
20,000


~~(a)~~	Statutory balances reflect recognition of the estimated remaining statutory increase in reserves of approximately $7 billion through 2023 under the permitted accounting practice discussed further below and in Note 12 to our consolidated financial statements.

GE~~2019 FORM 10-K~~ 38


December 31, 2022	ERAC			UFLIC			Total
Gross GAAP future policy benefit reserves and claim reserves	$	16,844		$	5,109		$	21,953
Gross statutory future policy benefit reserves and claim reserves(a)	24,670			6,354			31,024
Number of policies in force	181,700			52,600			234,300
Number of covered lives in force	241,500			52,600			294,100
Average policyholder attained age	77			84			79
Gross GAAP future policy benefit reserve per policy (in actual dollars)	$	78,600		$	58,800		$	74,100
Gross GAAP future policy benefit reserve per covered life (in actual dollars)	59,100			58,800			59,100
Gross statutory future policy benefit reserve per policy (in actual dollars)(a)	120,300			79,800			111,200
Gross statutory future policy benefit reserve per covered life (in actual dollars)(a)	90,500			79,800			88,600
Percentage of policies with:
Lifetime benefit period	69		%	32		%	61		%
Inflation protection option	80		%	91		%	83		%
Joint lives	33		%	—		%	26		%
Percentage of policies that are premium paying	69		%	75		%	70		%
Policies on claim	9,700			8,200			17,900



~~MD&A~~	~~OTHER ITEMS~~

(a) Statutory balances reflect recognition of the estimated remaining statutory increase in reserves of approximately $1.8 billion through 2023 under the permitted accounting practice discussed further in Note 12.

Structured settlement annuities and life insurance contracts.We reinsure approximately ~~31,000~~26,000 structured settlement annuities with an average attained age of ~~52.~~55. These structured settlement annuities were primarily underwritten on impaired lives (i.e., ~~shorter-than-average~~shorter-than- average life expectancies) at origination and have projected payments extending decades into the future. Our primary risks associated with these contracts include mortality (i.e., life expectancy or longevity), mortality improvement (i.e., assumed rate that mortality is expected to reduce over time), which may extend the duration of payments on life contingent contracts beyond our estimates, and reinvestment risk (i.e., a low interest rate environment may reduce our ability to achieve our targeted investment margins). Unlike ~~long-term~~long- term care insurance, structured settlement annuities offer no ability to require additional premiums or reduce benefits.

Our life reinsurance business typically covers the mortality risk associated with various types of life insurance policies that we reinsure from approximately 150 ceding company relationships where we pay a benefit based on the death of a covered life. ~~Across~~As of December 31, 2022, across our U.S. and Canadian life insurance blocks, we reinsure approximately ~~$100~~$59 billion of net amount at risk (i.e., difference between the death benefit and any accrued cash value) from approximately ~~2.2~~1.4 million policies with an average attained age of ~~58.~~61. In ~~2019,~~2022, our incurred claims were approximately $0.5 billion with an average individual claim of approximately ~~$48,000.~~$46,000. The ~~largest product types~~ covered ~~are~~products primarily include permanent life insurance and 20- and 30-year level term insurance. We anticipate a significant portion of the 20-year level term policies, which represent approximately ~~40%~~17% of the net amount atof risk, ~~and are anticipated~~ to lapse ~~(i.e., the length of time a policy will remain in force) over the next 2 to 4 years~~through 2024 as the policies reach the end of their 20-year level premium period.

~~Investment portfolio and other adjustments~~. Our insurance liabilities and annuity benefits are primarily supported by investment securities of $38.0 billion and $32.9 billion and commercial mortgage loans of $1.9 billion and $1.7 billion at December 31, 2019 and 2018, respectively. Additionally, we expect to purchase approximately $9 billion of new assets through 2024 in conjunction with expected capital contributions from GE Capital to our insurance subsidiaries, of which $2.0 billion was received in the first quarter of 2020. Our investment securities are classified as available-for-sale and comprise mainly investment-grade debt securities. The portfolio includes $5.7 billion of net unrealized gains that are recorded within Other comprehensive income, net of applicable taxes and other adjustments.

In calculating our future policy benefit reserves, we are required to consider the impact of net unrealized gains and losses on our available-for-sale investment securities supporting our insurance contracts as if those unrealized amounts were realized. To the extent that the realization of gains would result in a premium deficiency, an adjustment is recorded to increase future policy benefit reserves with an after-tax offset to Other comprehensive income. At December 31, 2019, the entire $5.7 billion balance of net unrealized gains on our investment securities required a related increase to future policy benefit reserves. This adjustment increased from $2.2 billion in 2018 to $5.7 billion in 2019 primarily from higher unrealized gains within the investment security portfolio supporting our insurance contracts in response to decreased market yields. See Note 3 to our consolidated financial statements for further information about our investment securities.

We manage the investments in our run-off insurance operations under strict investment guidelines, including limitations on asset class concentration, single issuer exposures, asset-liability duration variances, and other factors to meet credit quality, yield, liquidity and diversification requirements associated with servicing our insurance liabilities under reasonable circumstances. Investing in these assets exposes us to both credit risk (i.e., debtor’s ability to make timely payments of principal and interest) and interest rate risk (i.e., market price, cash flow variability, and reinvestment risk due to changes in market interest rates). We regularly review investment securities for impairment using both quantitative and qualitative criteria.

Additionally, our run-off insurance operations have approximately $0.7 billion of assets held by states or other regulatory bodies in statutorily required deposit accounts, and approximately $28.6 billion of assets held in trust accounts associated with reinsurance contracts in place between either ERAC or UFLIC as the reinsuring entity and a number of ceding insurers. Assets in these reinsurance trusts are held by an independent trustee for the benefit of the ceding insurer, and are subject to various investment guidelines as set forth in the respective reinsurance contacts.

We have studied and analyzed various options, along with several external investment advisors, to improve our investment yield subject to maintaining our ability to satisfy insurance liabilities when due, as well as considering our risk-based capital requirements, regulatory constraints, and tolerance for surplus volatility. With the expected capital contributions from GE Capital through 2024, we intend to add new asset classes to further diversify our portfolio, including private equity, senior secured loans and infrastructure debt, among others. We also hired a new Chief Investment Officer in 2018 to oversee our entire investment process and will be adding further investment managers.

Critical Accounting Estimates. Our insurance reserves include the following key accounting estimates and assumptions described below.

Future policy benefit reserves. Future policy benefit reserves represent the present value of future policy benefits less the present value of future gross premiums based on actuarial assumptions including, but not limited to, ~~morbidity (i.e., frequency and severity of claim, including claim termination rates and benefit utilization rates); morbidity improvement (i.e., assumed rate of improvement~~those discussed in morbidity in the future); mortality (i.e., life expectancy or longevity); mortality improvement (i.e., assumed rate that mortality is expected to reduce over time); policyholder persistency or lapses (i.e., the length of time a policy will remain in force); anticipated premium increases or benefit reductions associated with future in-force rate actions, including actions that are: (a) approved and not yet implemented, (b) filed but not yet approved, and (c) estimated on future filings through 2028, on long-term care insurance policies; and interest rates.Premium Deficiency Testing below. Assumptions are locked-in throughout the remaining life of a contract unless a premium deficiency develops.

GE~~2019 FORM 10-K~~ 39



~~MD&A~~	~~OTHER ITEMS~~

Claim reserves. Claim reserves are established when a claim is ~~incurred or is estimated to have been~~ incurred and represents our best estimate of the present value of the ultimate obligations for future claim payments and claim adjustment expenses. Key inputs include actual known facts about the claim, such as the benefits available and cause of disability of the claimant, as well as assumptions derived from our actual historical experience and expected future changes in experience factors. Claim reserves are evaluated periodically for potential changes in loss estimates with the support of qualified actuaries, and any changes are recorded in earnings in the period in which they are determined.

~~Reinsurance recoverables.~~ We cede insurance risk to third-party reinsurers for a portion of our insurance contracts, primarily on long-term care insurance policies, and record receivables as we are not relieved from our primary obligation to policyholders or cedents. These receivables are estimated in a manner consistent with the future policy benefit reserves and claim reserves. Reserves ceded to reinsurers, net of allowance, were $2.4 billion and $2.3 billion at December 31, 2019 and December 31, 2018, respectively, and are included in the caption “Other GE Capital receivables” on our consolidated Statement of Financial Position.

Premium Deficiency ~~Testing.~~ Testing. We annually perform premium deficiency testing in the third quarter in the aggregate across our run-off insurance portfolio. The premium deficiency testing assesses the adequacy of future policy benefit reserves, net of unamortized capitalized acquisition costs, using current assumptions without provision for adverse deviation. A comprehensive review of premium deficiency assumptions is a complex process and depends on a number of factors, many of which are interdependent and require evaluation individually and in the aggregate across all insurance products. The vast majority of our run-off insurance operations consists of reinsurance from multiple ceding insurance entities pursuant to treaties having complex terms and conditions. Premium deficiency testing relies on claim and policy information provided by these ceding entities and considers the reinsurance treaties and underlying policies. In order to utilize that information for purposes of completing experience studies covering all key assumptions, we perform detailed procedures to conform and validate the data received from the ceding entities. Our long-term care insurance business includes coverage where credible claim experience for higher attained ages is still emerging, and to the extent future experience deviates from current expectations, new projections of claim costs extending over the expected life of the policies may be required. Significant uncertainties exist in making projections for these long-term care insurance contracts, which requires that we consider a wide range of possible outcomes.

2022 FORM 10-K 23

The primary assumptions used in the premium deficiency tests include:

Morbidity. Morbidity assumptions used in estimating future policy benefit reserves are based on estimates of expected incidences of disability among policyholders and the costs associated with these policyholders asserting claims under their contracts, and these estimates account for any expected future morbidity improvement. For long-term care exposures, estimating expected future costs includes assessments of incidence (probability of a claim), utilization (amount of available benefits expected to be incurred) and continuance (how long the claim will last). Prior to 2017, premium deficiency assumptions considered the risk of anti-selection by including issue age adjustments to morbidity based on an actuarial assumption that long-term care policies issued to younger individuals would exhibit lower expected incidences and claim costs than those issued to older policyholders. Recent claim experience and the development of reconstructed claim cost curves indicated issue age differences had minimal impact on claim cost projections, and, accordingly, beginning in 2017, issue age adjustments were eliminated in developing morbidity assumptions. Higher morbidity increases, while lower morbidity decreases, the present value of expected future benefit payments.

Rate of Change in ~~Morbidity.~~Morbidity. Our annual premium deficiency testing incorporates our best estimates of projected future changes in the morbidity rates reflected in our base claim cost curves. These estimates draw upon a number of inputs, some of which are subjective, and all of which are interpreted and applied in the exercise of professional actuarial judgment in the context of the characteristics specific to our portfolios. This exercise of judgment considers factors such as the work performed by internal and external independent actuarial experts engaged to advise us in our annual testing, the observed actual experience in our portfolios measured against our base projections, industry developments, and other trends, including advances in the state of medical care and health-care technology development. With respect to industry developments, we take into account that there are differences between and among industry peers in portfolio characteristics (such as demographic features of the insured populations), the aggregate effect of improvement or deterioration as applied to base claim cost projections, the extent to which such base cost projections reflect the most current experience, and the accepted diversity of practice in actuarial professional judgment. We assess the potential for any change in morbidity with reference to our existing base claim cost projections, reconstructed in 2017. Projected improvement or deterioration in morbidity can have a material impact on our future claim cost projections, both on a stand-alone basis and also by virtue of influencing other variables such as discount rate and premium rate increases.

Mortality. Mortality assumptions used in estimating future policy benefit reserves are based on published mortality tables as adjusted for the results of our experience studies and estimates of expected future mortality improvement. For life insurance products, higher mortality increases the present value of expected future benefit payments, while for annuity and long-term care insurance contracts, higher mortality decreases the present value of expected future benefit payments.

Discount rate. Interest rate assumptions used in estimating the present value of future policy benefit reserves are based on expected future investment yields, net of related investment expenses and expected defaults. In estimating future investment yields, we consider the actual yields on our current investment securities held by our run-off insurance operations and the future rates at which we expect to reinvest any proceeds from investment security maturities, net of other operating cash flows, and the projected future capital contributions into our run-off insurance operations. ~~Lower future yields result in a lower discount rate and a higher present value of future policy benefit reserves.~~

GE~~2019 FORM 10-K~~ 40



~~MD&A~~	~~OTHER ITEMS~~

Future long-term care premium rate increases. Long-term care insurance policies allow the issuing insurance entity to increase premiums, or alternatively allow the policyholder the option to decrease benefits, with approval by state regulators, should actual experience emerge worse than what was projected when such policies were initially underwritten. As a reinsurer, we rely upon the primary insurers that issued the underlying policies to file proposed premium rate increases on those policies with the relevant state insurance ~~regulators, as~~regulators. While we have no direct ability to seek or to institute such premium rate increases, we often collaborate with the primary insurers in accordance with reinsurance contractual terms to file proposed premium rate increases. The amount of times that rate increases have occurred varies by ceding company. We consider recent experience of rate increase filings made by our ceding companies along with state insurance regulatory processes and precedents in establishing our current expectations. ~~Higher future premium rate increases lower the present value of future policy benefit reserves.~~

Terminations. Terminations refers to the rate at which the underlying ~~policy is canceled~~policies are cancelled due to either mortality, lapse (non-payment of premiums by a policyholder), or, in the case of long-term care insurance, benefit exhaustion. Termination rate assumptions used in estimating the present value of future policy benefit reserves are based on the results of our experience studies and reflect actuarial judgment. ~~Lower termination rates increase, while higher termination rates decrease, the present value of expected future benefit payments.~~

In 2017, based on elevated claim experience for a portion of our long-term care insurance contracts, we initiated a comprehensive review of all premium deficiency testing assumptions across all insurance products, resulting in a reconstruction of our future claim cost projections for long-term care insurance products. Our internal claim experience has been consistent with those reconstructed projections, although the extent of actual experience since 2017 to date is limited in the context of a long-tailed, multi-decade portfolio.

~~2019~~2022 Premium Deficiency Testing. We ~~annually perform~~completed our annual premium deficiency testing in the aggregate across our run-off insurance ~~portfolio. We performed this year’s testing~~portfolio in the third quarter of ~~2019, consistent with our historical practice prior to 2017 when we reconstructed our claim cost curves.~~2022. These procedures included updating certain experience studies since our last test completed in the ~~fourth~~third quarter of ~~2018,~~2021, independent actuarial analysis (principally on long-term care insurance exposures) and review of industry benchmarks. ~~As we experienced a premium deficiency in 2018, our 2019~~Using updated assumptions, the 2022 premium deficiency testing ~~started with~~results indicated a ~~zero~~positive margin ~~and, accordingly, any net adverse development would result in a future charge to earnings. Using our most recent future policy benefit reserve assumptions, including changes to our assumptions~~of about 10% of the related ~~to discount rate and future premium rate increases, we identified a premium deficiency resulting in a $1.0 billion pre-tax charge to earnings in the third quarter 2019. The increase to~~ future policy benefit reserves ~~resulting from our 2019 testing was primarily attributable~~recorded at September 30, 2022, or approximately equivalent to the ~~significant decline in market interest rates we observed this year, which has resulted in a lower discount rate and adversely impacted our reserve margin by $1.3 billion,~~ and higher levels of projected long-term care premium rate increases due to larger rate filings by some ceding companies than previously planned, which favorably impacted our reserve margin by $0.3 billion.

Our discount rate assumption for purposes of performing the premium deficiency assessment resulted in a weighted average rate of 5.74% compared to 6.04% in 2018. This decline in the discount rate from 2018 to 2019 reflected a lower reinvestment rate increasing to an expected long-term average investment yield over a longer period, lower prospective expected returns on higher yielding assets classes introduced with our 2018 strategic initiatives, and slightly lower actual yields on our investment security portfolio.

As noted above, our observed claim experience in the period since the 2017 reconstruction of our future long-term care claim cost projections has been consistent with those projections. Based on the application of professional actuarial judgment to the factors discussed above, we have made no substantial change to our assumptions concerning morbidity, morbidity improvement, mortality, mortality improvement, or terminations in 2019.

~~As with all assumptions underlying our~~2021 premium deficiency testing we will continue to monitor these factors, which may result in future changes in our assumptions. See Note 12 to the consolidated financial statements for further information on the results of our 2019 premium deficiency testing.results.

GAAP Reserve Sensitivities. The ~~results~~following table provides sensitivities with respect to the impact of changes of key assumptions underlying our 2022 premium deficiency testing, are sensitive to the assumptions described above. Certain future adverse changes in our assumptions could result in the unlocking of reserves, resetting of actuarial assumptions to current assumptions, an increase to future policy benefit reserves and a charge to earnings. Considering the resultsexclusive of the ~~2019~~impacts of converting our long-term care insurance claim cost projection models to first principles models as the conversion remains incomplete at the time of our 2022 premium deficiency test which reset our margin to zero, any future net adverse changes in our assumptions will result in an increase to future policy benefit reserves. For example, adverse changes in key assumptions to our future policy benefits reserves, holding all other assumptions constant, would have the following effects as presented in the table below. Any favorable changes to these assumptions could result in additional margin in our premium deficiency test and higher income over the remaining duration of the portfolio, including higher investment income. The assumptions within our future policy benefit reserves are subject to significant uncertainties, including those inherent in the complex nature of our reinsurance treaties.testing. Many of our assumptions are interdependent and require evaluation individually and in the aggregate across all insurance products. Small changes in the amounts used in the sensitivities ~~or the use of different factors~~ could result in materially different outcomes from those reflected below.

GE~~2019~~2022 FORM 10-K 4124



~~MD&A~~	~~OTHER ITEMS~~

2018 assumption 2019 assumption Hypothetical change in 2019 assumption
Estimated increase to future policy benefit reserves
(In billions, pre-tax)

Long-term care insurance morbidity improvement 1.25% per year over 12 to 20 years 1.25% per year over 12 to 20 years 25 basis point reduction
No morbidity improvement
$0.7
$3.7
Long-term care insurance morbidity Based on company experience Based on company experience 5% increase in dollar amount of paid claims $1.1
Long-term care insurance mortality improvement 0.5% per year for 10 years with annual improvement graded to 0% over next 10 years 0.5% per year for 10 years with annual improvement graded to 0% over next 10 years 1.0% per year for 10 years with annual improvement graded to 0% over next 10 years $0.4
Total terminations:
Long-term care insurance mortality Based on company experience Based on company experience Any change in termination assumptions that reduce total terminations by 10% $1.0
Long-term care insurance lapse rate Varies by block, attained age and benefit period; average 0.5 - 1.15% Varies by block, attained age and benefit period; average 0.5 - 1.15%
Long-term care insurance benefit exhaustion Based on company experience Based on company experience
Long-term care insurance future premium rate increases Varies by block based on filing experience Varies by block based on filing experience 25% adverse change in premium rate increase success rate $0.5
Discount rate:
Overall discount rate 6.04% 5.74% 25 basis point reduction $1.0
Reinvestment rate 4.35%; grading to a long-term average investment yield of 6.0% 3.05%; grading to a long-term average investment yield of 5.9% 25 basis point reduction; grading to long-term investment yield of 5.9% Less than $0.1
Structured settlement annuity mortality Based on company experience Based on company experience 5% decrease in mortality $0.1
Life insurance mortality Based on company experience Based on company experience 5% increase in mortality $0.3

2021 assumption

2022 assumption

Hypothetical change in 2022 assumption

Estimated adverse impact to projected present value of future cash flows

(In millions, pre-tax)

Long-term care insurance morbidity improvement

1.25% per year over 12 to 20 years

25 basis point reduction
No morbidity improvement

$500

$2,500

Long-term care insurance morbidity

Based on company experience

5% increase in dollar amount of paid claims

$900

Long-term care insurance mortality improvement

0.5% per year for 10 years with annual improvement graded to 0% over next 10 years

1.0% per year for 10 years with annual improvement graded to 0% over next 10 years

$400

Total terminations:

Long-term care insurance mortality

Based on company experience

Any change in termination assumptions that reduce total terminations by 10%

$900

Long-term care insurance lapse rate

Varies by block, attained age and benefit period; average 0.5% - 1.15%

Varies by block, attained age and benefit period; average 0.5% -1.15%

Long-term care insurance benefit exhaustion

Based on company experience

Long-term care insurance future premium rate increases

Varies by block based on filing experience

25% adverse change in success rate on premium rate increase actions not yet approved

$200

Overall discount rate

6.15%

6.20%

25 basis point reduction

$700

Life insurance mortality

Based on company experience

5% increase in mortality

$300

~~Statutory Considerations.~~

While higher assumed inflation, holding all other assumptions constant, would result in unfavorable impacts to the projected present value of future cash flows, it would be expected to be mitigated by a higher discount rate and more policies reaching contractual daily or monthly benefit caps.

Our run-off insurance subsidiaries are required to prepare statutory financial statements in accordance with statutory accounting practices. ~~Statutory accounting practices, not GAAP, determine the required statutory capital levels of our insurance legal entities.~~

Statutory accounting practices are set forth by the National Association of Insurance Commissioners (NAIC) as well as state laws, regulation and general administrative rules and differ in certain respects from GAAP. Under statutory accounting practices, base formulaic reserve assumptions typically do not change unless approved by our primary regulator, KID. In addition to base reserves, statutory accounting practices require additional actuarial reserves (AAR) be established based on results of asset adequacy testing reflecting moderately adverse conditions (i.e., assumptions include a provision for adverse deviation (PAD) rather than current assumptions without a PAD as required for premium deficiency testing under GAAP). As aGAAP and would result our statutory asset adequacy testing assumptions reflect less long-term care insurance morbidity improvement and for shorter durations, restrictions on future long-term care insurance premium rate increases, no life insurance mortality improvement and a lower discount rate. As a result,in several of the sensitivities described in the table above ~~would be~~being less impactful on our statutory reserves.

The adverse impact on our statutory AAR arising from our revised assumptions in 2017, including the collectability of reinsurance recoverables, is expected to require GE Capital to contribute approximately $14.5 billion additional capital, to its run-off insurance operations in 2018-2024. For statutory accounting purposes, KID approved our request for a permitted accounting practice to recognize the 2017 AAR increase over a seven-year period. GE Capital provided capital contributions to its insurance subsidiaries of $2.0 billion, $1.9 billion and $3.5 billion in the first quarter of 2020, 2019 and 2018, respectively. GE Capital expects to provide further capital contributions of approximately $7 billion through 2024, subject to ongoing monitoring by KID. GE is a party to capital maintenance agreements with ERAC and UFLIC whereby GE will maintain their minimum statutory capital levels at 300% of their year-end Authorized Control Level risk-based capital requirements as defined from time to time by the NAIC.

If our future policy benefit reserves established under GAAP are realized over the estimated remaining life of our run-off insurance obligations, we would expect the $14.5 billion of capital contributed to the run-off insurance operations over the 2018 to 2024 period to be considered statutory capital surplus at the end of the period with no additional charge to GAAP earnings. However, should the more conservative statutory assumptions be realized, we would be required to record the difference between GAAP assumptions and statutory assumptions as a charge to GAAP earnings in the future periods.

GE~~2019 FORM 10-K~~ 42



~~MD&A~~	~~OTHER ITEMS~~

See Capital Resources and Liquidity, Other Items - New Accounting Standards ~~within MD&A~~ and Notes 13 and 12 ~~to the consolidated financial statements~~ for further ~~information.~~information related to our run-off insurance operations.

NEW ACCOUNTING STANDARDS. ~~In August 2018, the~~The Financial Accounting Standards Board ~~(FASB)~~ issued ~~Accounting Standards Update (ASU) No. 2018-12,~~ ~~Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting~~new guidance on accounting for ~~Long-Duration Contracts. In October 2019, the FASB affirmed its decision to defer the~~long-duration insurance contracts that is effective ~~date to~~for our interim and annual periods beginning ~~after December 31,~~January 1, 2023 and applied retrospectively to January 1, 2021 ~~with an election to~~(i.e., the transition date). We will adopt ~~early.~~the new guidance using the modified retrospective transition method where permitted. We ~~are evaluating the effect~~expect adoption of the ~~standard on our consolidated financial statements and anticipate that its adoption~~new guidance will significantly change the accounting for measurements of our long-duration insurance ~~liabilities.~~liabilities and reinsurance recoverables and materially affect our consolidated financial statements and require changes to our actuarial, accounting and financial reporting processes, systems, and internal controls. The ~~ASU~~new guidance requires cash flow assumptions used in the measurement of various insurance liabilities to be reviewed at least annually and updated if actual experience or other evidence indicates previous assumptions ~~need to be revised~~warrant revision with any required changes recorded in earnings. These changes will result in the elimination of premium deficiency testing and shadow adjustments. Under the ~~current accounting~~new guidance, ~~the discount rate is based on expected investment yields, while under the ASU~~ the discount rate will be equivalent to the upper-medium grade ~~(e.g.~~(i.e., single A) fixed-income instrument yield reflecting the duration characteristics of ~~the liability~~our insurance liabilities and is required to be updated in each reporting period with changes recorded in Accumulated other comprehensive ~~income. In measuring~~income (AOCI). As reinsurance recoverables are recognized in a manner consistent with the ~~insurance~~ liabilities ~~under~~relating to the ~~new standard,~~underlying reinsurance contracts, ~~shall not~~changes in reinsurance recoverables from updating the single A discount rate in each reporting period are also recognized in AOCI. The allowance for credit losses on reinsurance recoverables will continue to be ~~grouped together from different issue years. These~~based on the locked-in discount rate for purposes of assessing changes ~~result~~in each reporting period. As such, movements in the ~~elimination~~gross reinsurance recoverable balance resulting from changes in the single A discount rate will not impact the allowance for credit losses. Following the recapture transaction effective in the fourth quarter of ~~premium deficiency testing and shadow adjustments. While we continue to evaluate~~2022, as explained in Note 12, the ~~effect of the standard on our ongoing financial reporting, we anticipate that~~remaining reinsurance recoverables are not material.

In conjunction with the adoption of the ~~ASU~~new guidance, we are in process of converting our long-term care insurance claim cost projection models to first principles models that are based on more granular assumptions of expected future experience and will ~~materially affect~~facilitate the new guidance's requirements.

2022 FORM 10-K 25

We currently estimate a decrease in Shareholders’ equity at the transition date from adoption of the new guidance to be in an after-tax range of $7.0 billion to $8.0 billion, including approximately $5.5 billion to $6.0 billion in AOCI and $1.5 billion to $2.0 billion in Retained earnings. The decrease in AOCI is primarily attributable to remeasuring our ~~financial statements.~~insurance liabilities and reinsurance recoverables using the single A discount rate required under the new guidance, which is lower than our current locked-in discount rate, and the removal of shadow adjustments. The decrease in Retained earnings at the transition date is primarily attributable to certain long-term care insurance exposures where the projected present value of future cash flows exceeds the reserves at the transition date, based on the required lower level of grouping of contracts, combined with converting our long-term care insurance claim cost projection models to first principles models. As of December 31, 2022, we estimate the ~~ASU~~decrease in Shareholders' equity to be reduced to approximately $3.0 billion to $4.0 billion, primarily due to changes in the market interest rate environment subsequent to the transition date.

The new guidance is only applicable to the measurements of our long-duration insurance liabilities under ~~GAAP, it will~~GAAP. In addition, we do not ~~affect the accounting for our~~expect changes to statutory insurance reserves, regulatory capital requirements or ~~the levels of capital and surplus under statutory accounting practices.~~

~~In June 2016, the FASB issued ASU No. 2016-13,~~ ~~Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU introduces~~projected funding as a new accounting model, the Current Expected Credit Losses model (CECL), which requires earlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for loans and other receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current GAAP, which generally require that a loss be incurred before it is recognized. The new standard also applies to receivables arising from revenue transactions such as contract assets and accounts receivables, as well as reinsurance recoverables at GE Capital's run-off insurance operations and is effective for fiscal years beginning after December 15, 2019. The standard will be applied prospectively with an adjustment to retained earnings. As we finalize our process, we expect the adoptionresult of the ~~ASU to have an effect of approximately $0.2 billion to retained earnings.~~

~~OTHER.~~We own, or hold licenses to use, numerous patents. New patents are continuously being obtained through our research and development activities as existing patents expire. Patented inventions are used both within the Company and are licensed to others. ~~GE is a trademark and service mark of General Electric Company.~~

~~Because~~implementation of the diversity of our products and services, as well as the wide geographic dispersion of our production facilities, we use numerous sources for the wide variety of raw materials needed for our operations. We have not been adversely affected by our inability to obtain raw materials.first principles models.

NON-GAAP FINANCIAL MEASURES. We believe that presenting non-GAAP financial measures provides management and investors useful measures to evaluate performance and trends of the total company and its businesses. This includes adjustments in recent periods to GAAP financial measures to increase period-to-period comparability following actions to strengthen our overall financial position and how we manage our business.

In addition, management recognizes that certain non-GAAP terms may be interpreted differently by other companies under different circumstances. In various sections of this report we have made reference to the following non-GAAP financial measures in describing our (1) revenues, specifically ~~GE Industrial segment~~organic revenues by segment; organic revenues; and ~~GE Industrial~~equipment and services organic revenues and (2) profit, specifically ~~GE Industrial segment~~ organic ~~profit;~~profit and profit margin by segment; Adjusted ~~GE Industrial~~ profit and profit margin; Adjusted ~~GE Industrial~~ organic profit and profit margin; Adjusted earnings (loss); Adjusted income tax rate; and Adjusted earnings (loss) per share (EPS), (3) taxes, specifically GE effective tax rates, excluding GE Capital earnings; and reconciliation of U.S. federal statutory income tax rate to GE effective tax rate excluding GE Capital earnings, (4) cash flows, specifically GE Industrial free cash flows (FCF), and (5) debt balances, specifically GE Industrial net debt.. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow.


ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP)
	Revenue						Segment profit (loss)						Profit margin
	2022		2021		V%		2022		2021		V%		2022		2021		V pts
Aerospace (GAAP)	$	26,050	$	21,310	22	%	$	4,775	$	2,882	66	%	18.3	%	13.5	%	4.8pts
Less: acquisitions	—		—				—		—
Less: business dispositions	—		—				—		—
Less: foreign currency effect	(80)		—				101		3
Aerospace organic (Non-GAAP)	$	26,129	$	21,311	23	%	$	4,674	$	2,879	62	%	17.9	%	13.5	%	4.4pts

Renewable Energy (GAAP)	$	12,977	$	15,697	(17)	%	$	(2,240)	$	(795)	U		(17.3)	%	(5.1)	%	(12.2)pts
Less: acquisitions	—		(55)				—		(17)
Less: business dispositions	—		—				—		—
Less: foreign currency effect	(702)		2				55		52
Renewable Energy organic (Non-GAAP)	$	13,678	$	15,749	(13)	%	$	(2,295)	$	(831)	U		(16.8)	%	(5.3)	%	(11.5)pts

Power (GAAP)	$	16,262	$	16,903	(4)	%	$	1,217	$	726	68	%	7.5	%	4.3	%	3.2pts
Less: acquisitions	—		—				—		—
Less: business dispositions	—		502				—		(2)
Less: foreign currency effect	(503)		(5)				(78)		(40)
Power organic (Non-GAAP)	$	16,765	$	16,405	2	%	$	1,295	$	768	69	%	7.7	%	4.7	%	3.0pts

HealthCare (GAAP)	$	18,461	$	17,725	4	%	$	2,705	$	2,966	(9)	%	14.7	%	16.7	%	(2.0)pts
Less: acquisitions	238		—				(54)		(16)
Less: business dispositions	—		—				—		—
Less: foreign currency effect	(772)		—				(169)		(14)
HealthCare organic (Non-GAAP)	$	18,994	$	17,725	7	%	$	2,928	$	2,995	(2)	%	15.4	%	16.9	%	(1.5)pts

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.

GE~~2019~~2022 FORM 10-K 4326



ORGANIC REVENUES (NON-GAAP)	2022		2021		V%
Total revenues (GAAP)	$	76,555	$	74,196	3	%
Less: Insurance revenues (Note 12)	2,954		3,106
Adjusted revenues (Non-GAAP)	$	73,602	$	71,090	4	%
Less: acquisitions	241		(55)
Less: business dispositions	—		158
Less: foreign currency effect(a)	(2,079)		(3)
Organic revenues (Non-GAAP)	$	75,440	$	70,989	6	%

(a) Foreign currency impact in 2022 was primarily driven by U.S. dollar appreciation against the euro, Japanese yen and British pound.
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 revenues from our run-off Insurance business, acquisitions, dispositions and foreign currency, which includes translational and transactional impacts, as these activities can obscure underlying trends.



EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP)	2022		2021		V%
Total equipment revenues (GAAP)	$	31,976	$	34,200	(7)	%
Less: acquisitions	207		—
Less: business dispositions	—		(177)
Less: foreign currency effect	(1,319)		—
Equipment organic revenues (Non-GAAP)	$	33,088	$	34,378	(4)	%

Total services revenues (GAAP)	$	41,626	$	36,890	13	%
Less: acquisitions	34		(55)
Less: business dispositions	—		336
Less: foreign currency effect	(760)		(2)
Services organic revenues (Non-GAAP)	$	42,352	$	36,612	16	%
We believe this measure provides 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.

2022 FORM 10-K 27



ADJUSTED PROFIT AND PROFIT MARGIN (NON-GAAP)	2022		2021		V%
Total revenues (GAAP)	$	76,555	$	74,196	3%
Less: Insurance revenues (Note 12)	2,954		3,106
Adjusted revenues (Non-GAAP)	$	73,602	$	71,090	4%

Total costs and expenses (GAAP)	$	76,375	$	80,702	(5)%
Less: Insurance cost and expenses (Note 12)	2,894		2,540
Less: interest and other financial charges(a)	1,552		1,813
Less: non-operating benefit cost (income)	(532)		1,782
Less: restructuring & other(a)	949		455
Less: debt extinguishment costs(a)	465		6,524
Less: separation costs(a)	973		—
Less: Steam asset sale impairment(a)	824		—
Less: Russia and Ukraine charges(a)	263		—


Add: noncontrolling interests	67		(71)
Add: EFS benefit from taxes	(213)		(162)
Adjusted costs (Non-GAAP)	$	68,840	$	67,354	2%

Other income (loss) (GAAP)	$	1,231	$	2,823	(56)%
Less: gains (losses) on equity securities(a)	76		1,921
Less: restructuring & other(a)	31		75
Less: gains (losses) on purchases and sales of business interests(a)	51		(44)
Adjusted other income (loss) (Non-GAAP)	$	1,074	$	871	23%

Profit (loss) (GAAP)	$	1,412	$	(3,683)	F
Profit (loss) margin (GAAP)	1.8%		(5.0)%		6.8pts

Adjusted profit (loss) (Non-GAAP)	$	5,835	$	4,608	27%
Adjusted profit (loss) margin (Non-GAAP)	7.9%		6.5%		1.4pts

(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 ORGANIC PROFIT (NON-GAAP)	2022			2021			V%
Adjusted profit (loss) (Non-GAAP)	$	5,835		$	4,608		27	%
Less: acquisitions	(72)			(32)
Less: business dispositions	—			14
Less: foreign currency effect(a)	(104)			70
Adjusted organic profit (loss) (Non-GAAP)	$	6,011		$	4,556		32	%

Adjusted profit (loss) margin (Non-GAAP)	7.9		%	6.5		%	1.4	pts
Adjusted organic profit (loss) margin (Non-GAAP)	8.0		%	6.4		%	1.6	pts

(a) Included foreign currency negative effect on revenues of $2,079 million and positive effect on operating costs and other income (loss) of $1,975 million for the year ended December 31, 2022.
We believe this measure provides 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.

2022 FORM 10-K 28


ADJUSTED EARNINGS (LOSS) AND ADJUSTED INCOME TAX RATE (NON-GAAP)	2022				2021
(Per-share amounts in dollars)	Earnings		EPS		Earnings		EPS
Earnings (loss) from continuing operations (GAAP) (Note 18)	$	584	$	0.53	$	(3,571)	$	(3.25)
Insurance earnings (loss) (pre-tax)	65		0.06		570		0.52
Tax effect on Insurance earnings (loss)	(21)		(0.02)		(126)		(0.11)
Less: Insurance earnings (loss) (net of tax) (Note 12)	44		0.04		444		0.40
Earnings (loss) excluding Insurance (Non-GAAP)	$	540	$	0.49	$	(4,015)	$	(3.66)
Non-operating benefit (cost) income (pre-tax) (GAAP)	532		0.48		(1,782)		(1.62)
Tax effect on non-operating benefit (cost) income	(112)		(0.10)		374		0.34
Less: Non-operating benefit (cost) income (net of tax)	420		0.38		(1,408)		(1.28)
Gains (losses) on purchases and sales of business interests (pre-tax)(a)	51		0.05		(44)		(0.04)
Tax effect on gains (losses) on purchases and sales of business interests	67		0.06		6		0.01
Less: Gains (losses) on purchases and sales of business interests (net of tax)	118		0.11		(37)		(0.03)
Gains (losses) on equity securities (pre-tax)(a)	76		0.07		1,921		1.75
Tax effect on gains (losses) on equity securities(b)(c)	(17)		(0.02)		128		0.12
Less: Gains (losses) on equity securities (net of tax)	58		0.05		2,049		1.87
Restructuring & other (pre-tax)(a)	(918)		(0.83)		(380)		(0.35)
Tax effect on restructuring & other	199		0.18		35		0.03
Less: Restructuring & other (net of tax)	(719)		(0.65)		(346)		(0.31)
Debt extinguishment costs (pre-tax)(a)	(465)		(0.42)		(6,524)		(5.94)
Tax effect on debt extinguishment costs	68		0.06		430		0.39
Less: Debt extinguishment costs (net of tax)	(397)		(0.36)		(6,094)		(5.55)
Separation costs (pre-tax)(a)	(973)		(0.88)		—		—
Tax effect on separation costs	77		0.07		—		—
Less: Separation costs (net of tax)	(896)		(0.81)		—		—
Steam asset sale impairment (pre-tax)(a)	(824)		(0.75)		—		—
Tax effect on Steam asset sale impairment	84		0.08		—		—
Less: Steam asset sale impairment (net of tax)	(740)		(0.67)		—		—
Russia and Ukraine charges (pre-tax)(a)	(263)		(0.24)		—		—
Tax effect on Russia and Ukraine charges	15		0.01		—		—
Less: Russia and Ukraine charges (net of tax)	(248)		(0.23)		—		—



Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) (Note 18)	—		—		(9)		(0.01)
Less: Accretion of preferred share repurchase (pre-tax and net of tax) (Note 18)	4		—		—		—

Less: U.S. and foreign tax law change enactment	58		0.05		8		0.01
Less: Tax loss related to GECAS transaction	—		—		(54)		(0.05)

Adjusted earnings (loss) (Non-GAAP)	$	2,881	$	2.62	$	1,876	$	1.71

Earnings (loss) from continuing operations before taxes (GAAP)	$	1,412			$	(3,683)
Less: Total adjustments above (pre-tax)	(2,719)				(6,240)
Adjusted earnings before taxes (Non-GAAP)	$	4,131			$	2,558

Provision (benefit) for income taxes (GAAP)	$	476			$	(286)
Less: Tax effect on adjustments above	(418)				(802)
Adjusted provision (benefit) for income taxes (Non-GAAP)	$	893			$	516

Income tax rate (GAAP)	33.7%				7.8%
Adjusted income tax rate (Non-GAAP)	21.6%				20.2%

(a) See the Corporate and Other Consolidated Information sections for further information.
(b) Includes tax benefits available to offset the tax on gains (losses) on 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 the Adjusted income tax rate* provides management and investors a useful measure to evaluate the performance of the total company and increases period-to-period comparability.

*Non-GAAP Financial Measure

2022 FORM 10-K 29

OTHER FINANCIAL DATA.



~~MD&A~~			~~NON-GAAP FINANCIAL MEASURES~~

FIVE-YEAR PERFORMANCE GRAPH

GE~~2019~~2022 FORM 10-K 5839



~~REPORTS~~

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors ~~and Shareowners~~

of General Electric ~~Company:~~

Company

~~Opinions~~

Opinion on the ~~Consolidated~~ Financial Statements ~~and Internal Control Over Financial Reporting~~

We have audited the accompanying consolidated statements of financial position of General Electric Company and ~~consolidated affiliates~~subsidiaries (the ~~Company)~~"Company") as of December 31, ~~2019~~2022 and ~~2018,~~2021, the related consolidated statements of earnings (loss), comprehensive income (loss), changes in ~~shareowners’~~shareholders’ equity, and cash flows for ~~each of~~ the years ~~in the three-year period~~ ended ~~December 31, 2019,~~2022 and 2021, and the related notes (collectively referred to as the ~~consolidated financial statements)~~“financial statements”). We also have audited the Company’s internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the ~~consolidated~~ financial statements ~~referred to above~~ present fairly, in all material respects, the financial position of the Company as of December 31, ~~2019~~2022 and ~~2018,~~2021, and the results of its operations and its cash flows for ~~each of~~ the years ~~in the three-year period~~then ended, ~~December 31, 2019,~~ in conformity with ~~U.S.~~accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 10, 2023, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audit. We are a public accounting ~~principles. Also~~firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Sales of services - Revenue recognition on certain long-term service agreements - Refer to Notes 1 and 8 to the financial statements

Critical Audit Matter Description

The Company enters into long-term service agreements with certain customers, predominately within the Aerospace and Power segments. These agreements require the Company to provide maintenance services for customer assets over the contract term, which generally range from 5 to 25 years. Revenue for these agreements is recognized using the percentage of completion method, based on costs incurred relative to total estimated costs over the contract term. As part of the revenue recognition process, the Company estimates both customer payments that are expected to be received and costs to perform maintenance services over the contract term. Key estimates that require significant judgment from management include: (a) how the customer will utilize the assets covered over the contract term; (b) the expected timing and extent of future maintenance and overhaul services; (c) the future cost of materials, labor, and other resources; and (d) forward looking information concerning market conditions.

Given the complexity involved with evaluating the key estimates, which includes significant judgment necessary to estimate customer payments and future costs, auditing these assumptions required a high degree of auditor judgment and extensive audit effort, including the involvement of professionals with specialized skills and industry knowledge.

How the Critical Audit Matter Was Addressed in the Audit

Our auditing procedures over the key estimates described above related to the amount and timing of revenue recognition of the long-term service agreements, predominately within the Aerospace and Power segments, included the following, among others:

•We tested the effectiveness of controls over the revenue recognition process for the long-term service agreements, including controls over management’s key estimates.

•We evaluated management’s risk assessment process through observation of key meetings and processes, including inspection of documentation, addressing contract status and current market conditions including the timely incorporation of changes that affect total estimated costs to complete the contract and future billings.

•We evaluated the appropriateness and consistency of management’s methods and key assumptions applied in recognizing revenue and developing cost estimates.

2022 FORM 10-K 40

•We tested management’s utilization assumptions for the assets covered over the contract term, which impact the estimated timing and extent of future maintenance and overhaul services by comparing current estimates to historical information and projected market conditions.

•We tested management’s process for estimating the timing and amount of costs associated with maintenance, overhaul, and other major events throughout the contract term, including comparing estimates to historical cost experience, performing a retrospective review, performing analytical procedures, and utilizing specialists to evaluate engineering studies and statistical models used by the Company to estimate the useful life of certain components of the installed equipment.

Premium deficiency testing - future policy benefits – refer to Notes 1 and 12 to the financial statements

Critical Audit Matter Description

The Company performs premium deficiency testing to assess the adequacy of future policy benefit reserves on an annual basis or whenever events or changes in circumstances indicate that a premium deficiency event may have occurred. Significant uncertainties exist in testing cash flow projections in the premium deficiency test for these insurance contracts, including consideration of a wide range of possible outcomes of future events over the life of the insurance contracts that can extend for long periods of time.

Given the significant judgments made by management in estimating the cash flow projections used in the premium deficiency test, including the determination of certain key assumptions, auditing the premium deficiency test required a high degree of auditor judgment and an increased extent of effort, including the involvement of our actuarial specialists. Key assumptions impacting the cash flow projections that are sensitive and are more subjective requiring significant judgment by management are discount rate, rate of changes in morbidity, and future long-term care premium rate increases.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures, which included the involvement of our actuarial specialists, related to the premium deficiency analysis included the following, among others:

•We tested the effectiveness of controls related to the premium deficiency test process, including controls over the development of key assumptions and management’s judgments related to the development of the cash flow projections.

•We tested the underlying data for completeness and accuracy, including historical cash flows that served as the basis for the actuarial estimates.

•We evaluated the key assumptions by considering historical actual experience, sensitivity analyses, relevant industry data when available, and management’s basis for changes or lack of change in key assumptions.

•We performed recalculations to assess key assumptions were appropriately applied in the cash flow projections.

•We evaluated management’s conclusion for the premium deficiency test and verified the results appropriately reflected key assumptions.


/s/ DELOITTE & TOUCHE LLP

Boston, Massachusetts
February 10, 2023
We have served as the Company's auditor since 2020.

2022 FORM 10-K 41

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of General Electric Company

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of General Electric Company and subsidiaries (the “Company”) as of December 31, 2022, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, ~~2019~~2022, based on criteria established in Internal Control -— Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the ~~Committee of Sponsoring Organizations~~standards of the ~~Treadway Commission.~~

Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2022, of the Company and our report dated February 10, 2023, expressed an unqualified opinion on those financial statements.

Basis for ~~Opinions~~Opinion

The Company’s management is responsible ~~for these consolidated financial statements,~~ for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s ~~consolidated financial statements and an opinion on the Company’s~~ internal control over financial reporting based on our ~~audits.~~audit. We are a public accounting firm registered with the ~~Public Company Accounting Oversight Board (United States) (PCAOB)~~PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our ~~audits~~audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the ~~audits~~audit to obtain reasonable assurance about ~~whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and~~ whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit ~~of internal control over financial reporting~~ included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, ~~and~~ testing and evaluating the design and operating effectiveness of internal control based on the assessed ~~risk. Our audits also included~~risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our ~~audits provide~~audit provides a reasonable basis for our ~~opinions.~~opinion.

Definition and Limitations of Internal Control ~~Over~~over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

~~Accompanying Supplemental Information~~


/s/ DELOITTE & TOUCHE LLP

Boston, Massachusetts
February 10, 2023

~~The~~

2022 FORM 10-K 42

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of General Electric Company:

Opinion on the Consolidated Financial Statements

We have audited the accompanying ~~consolidating information appearing on pages 63, 65,~~consolidated statements of earnings (loss), comprehensive income (loss), changes in shareholders’ equity, and ~~67 (the supplemental information) has been subjected to audit procedures performed in conjunction with the audit~~cash flows of the ~~Company’s~~General Electric Company and consolidated affiliates (the Company) for the year ended December 31, 2020, and the related notes (collectively, the consolidated financial ~~statements. The supplemental information is~~statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the results of its operations and its cash flows for the year ended December 31, 2020, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

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 audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit ~~procedures included determining~~in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether ~~the supplemental information reconciles to~~ the consolidated financial statements are free of material misstatement, whether due to error or ~~the underlying accounting and other records, as applicable, and~~fraud. Our audit included performing procedures to ~~test~~assess the ~~completeness and accuracy~~risks of ~~the information presented in the supplemental information. In our opinion, the supplemental information is fairly stated, in all~~ material ~~respects, in relation to~~misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a ~~whole.~~reasonable basis for our opinion.

GE~~2019 FORM 10-K~~ 59



~~REPORTS~~				/s/ KPMG LLP

~~Critical Audit Matters~~

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

~~Evaluation of revenue recognition on certain long-term service agreements~~

As discussed in Note 1 to the consolidated financial statements, the Company enters into long-term service agreements with some of its customers. Certain long-term service agreements require the Company to provide maintenance services that may include levels of assurance regarding asset performance and uptime throughout the contract period. Revenue for such long-term service agreements is recognized using the percentage of completion method, based on costs incurred relative to total expected costs.

We identified the evaluation of revenue recognition on certain long-term service agreements as a critical audit matter because of the complex auditor judgment required in evaluating some of the long-term estimates in such arrangements. Such estimates include the amount of customer payments expected to be received over the contract term, which are generally based on a combination of both historical customer utilization of the covered assets as well as forward-looking information such as market conditions. In addition, these estimates include the total costs expected to be incurred to perform required maintenance services over the contract term and include estimates of expected cost improvements when such cost improvements are supported by actual results or have been proven effective. Further, contract modifications that extend or revise contract terms are not uncommon and require judgment in evaluating the related revisions of the long-term estimates.

The primary procedures we performed to address this critical audit matter included the following. We tested certain internal controls over the Company’s revenue recognition process for long-term service agreements, including controls related to estimating customer payments and costs expected to be incurred to perform required maintenance services over the contract term. We evaluated the estimated customer payments by comparing the estimated customer utilization of the covered assets to historical utilization and industry utilization data, where available. We evaluated the estimated costs expected to be incurred to perform required maintenance services over the contract term by:

~~comparing estimated labor and part costs to historical labor and parts costs,~~

~~comparing the estimated useful life, which is referred to as part life, of certain component parts to historical data and regulatory limits on part life, where applicable,~~

~~inspecting evidence underlying the inclusion of cost improvements in estimated costs, including regulatory and engineering approvals and actual reductions in production costs to date, and~~

ascertaining if major overhauls of covered assets are included in the cost estimates on a basis consistent with the estimated customer utilization of the assets that is used in estimating customer payments.

In addition, we involved valuation professionals with specialized skills and knowledge, who assisted in testing certain cost estimates, including assessing statistical models used by the Company to estimate the part life of certain component parts of the covered assets.

~~Evaluation of premium deficiency testing to assess the adequacy of future policy benefit reserves~~

As discussed in Notes 1 and 12 to the consolidated financial statements, the Company performs premium deficiency testing to assess the adequacy of future policy benefit reserves. This testing is performed on an annual basis, or whenever events and changes in circumstances indicate that a premium deficiency event may have occurred. Significant uncertainties exist in testing cash flow projections in the premium deficiency testing for these insurance contracts, including consideration of a wide range of possible outcomes of future events over the life of the underlying contracts that can extend for long periods of time.

We identified the evaluation of premium deficiency testing to assess the adequacy of future policy benefit reserves as a critical audit matter. Specifically, the evaluation of the following key assumptions in the premium deficiency testing required subjective auditor judgment and specialized skills and knowledge: long-term care morbidity and mortality, long-term care morbidity improvement and mortality improvement, discount rates, and long-term care premium rate increases.

The primary procedures we performed to address this critical audit matter included the following. We tested certain internal controls over the Company’s premium deficiency testing process, including controls to develop the key assumptions described above. In addition, we involved actuarial professionals with specialized skills and knowledge, who assisted in:

challenging the Company’s key assumptions and results by evaluating the relevance, reliability, and consistency of the assumptions with each other, the underlying data, relevant historical data, and industry data,

~~assessing the summary experience data and the corresponding actuarial assumptions for conformity with generally accepted actuarial principles,~~

~~performing recalculations to assess that the key assumptions were reflected in the cash flow projections, and~~

~~comparing the current year and prior year cash flow projections to analyze the impact of the updated key assumptions to the cash flows.~~

GE~~2019 FORM 10-K~~ 60

KPMG LLP
We served as the Company’s auditor from 1909 to 2020.
Boston, Massachusetts
February 12, 2021, except for the changes described in the third paragraph of note 1 and the fifth paragraph of note 2, as to which the date is February 11, 2022.

~~REPORTS~~

2022 FORM 10-K 43


STATEMENT OF EARNINGS (LOSS)
For the years ended December 31 (In millions; per-share amounts in dollars)	2022		2021		2020


Sales of equipment	$	31,976	$	34,200	$	37,584
Sales of services	41,626		36,890		35,385
Insurance revenues (Note 12)	2,954		3,106		2,865

Total revenues	76,555		74,196		75,833

Cost of equipment sold	30,426		31,399		35,242
Cost of services sold	25,109		22,497		22,629
Selling, general and administrative expenses	12,781		11,716		12,628
Separation costs (Note 20)	973		—		—
Research and development	2,813		2,497		2,565
Interest and other financial charges	1,607		1,876		2,068
Debt extinguishment costs (Note 10)	465		6,524		301
Insurance losses, annuity benefits and other costs (Note 12)	2,734		2,410		2,519
Goodwill impairments (Note 7)	—		—		877
Non-operating benefit cost (income)	(532)		1,782		2,430

Total costs and expenses	76,375		80,702		81,259

Other income (loss) (Note 19)	1,231		2,823		11,396

Earnings (loss) from continuing operations before income taxes	1,412		(3,683)		5,970
Benefit (provision) for income taxes (Note 15)	(476)		286		487
Earnings (loss) from continuing operations	936		(3,396)		6,457
Earnings (loss) from discontinued operations, net of taxes (Note 2)	(644)		(3,195)		(911)
Net earnings (loss)	292		(6,591)		5,546
Less net earnings (loss) attributable to noncontrolling interests	67		(71)		(158)
Net earnings (loss) attributable to the Company	225		(6,520)		5,704
Preferred stock dividends	(289)		(237)		(474)
Net earnings (loss) attributable to GE common shareholders	$	(64)	$	(6,757)	$	5,230

Amounts attributable to GE common shareholders
Earnings (loss) from continuing operations	$	936	$	(3,396)	$	6,457
Less net earnings (loss) attributable to noncontrolling interests,
continuing operations	67		(71)		(158)
Earnings (loss) from continuing operations attributable to the Company	869		(3,325)		6,615
Preferred stock dividends	(289)		(237)		(474)
Earnings (loss) from continuing operations attributable
to GE common shareholders	581		(3,562)		6,141



Earnings (loss) from discontinued operations attributable
to GE common shareholders	(644)		(3,195)		(911)
Net earnings (loss) attributable to GE common shareholders	$	(64)	$	(6,757)	$	5,230

Earnings (loss) per share from continuing operations (Note 18)
Diluted earnings (loss) per share	$	0.53	$	(3.25)	$	5.46
Basic earnings (loss) per share	$	0.53	$	(3.25)	$	5.46

Net earnings (loss) per share (Note 18)
Diluted earnings (loss) per share	$	(0.05)	$	(6.16)	$	4.63
Basic earnings (loss) per share	$	(0.06)	$	(6.16)	$	4.63

We evaluated projected future long-term premium rate increases by comparing the proposed, attained, denied, and approved premium rate increases to underlying source documentation. We also compared the current year premium rate increase projection to actual historical rate increase experience.

2022 FORM 10-K 44

~~Evaluation of projected revenue and operating profit used in the assessment of the carrying value of goodwill in the Grid Solutions equipment and services and Hydro reporting units~~

As discussed in Note 8 to the consolidated financial statements, the Company performs a goodwill impairment test on an annual basis or whenever events or changes in circumstances indicate that the carrying value of a reporting unit might exceed its fair value. Projected revenue and operating profit are important elements of the estimated future cash flows used by the Company in determining the fair value of each reporting unit and the amount of related goodwill impairment losses.


STATEMENT OF FINANCIAL POSITION

December 31 (In millions)	2022		2021

Cash, cash equivalents and restricted cash	$	17,262	$	15,770
Investment securities (Note 3)	7,609		12,297
Current receivables (Note 4)	17,976		15,620

Inventories, including deferred inventory costs (Note 5)	17,403		15,847


Current contract assets (Note 8)	3,088		4,881
All other current assets (Note 9)	1,521		1,933
Assets of businesses held for sale (Note 2)	1,374		—
Current assets	66,234		66,348

Investment securities (Note 3)	36,048		42,209


Property, plant and equipment – net (Note 6)	14,478		15,609

Goodwill (Note 7)	25,798		26,182
Other intangible assets – net (Note 7)	7,625		9,330
Contract and other deferred assets (Note 8)	6,010		6,124
All other assets (Note 9)	16,998		19,040
Deferred income taxes (Note 15)	11,705		10,855
Assets of discontinued operations (Note 2)	2,892		3,177
Total assets	$	187,788	$	198,874

Short-term borrowings (Note 10)	$	3,757	$	4,361

Accounts payable and equipment project payables (Note 11)	18,644		16,243
Progress collections and deferred income	18,118		17,372
All other current liabilities (Note 14)	14,485		13,977
Liabilities of businesses held for sale (Note 2)	1,944		—
Current liabilities	56,947		51,953

Deferred income	2,006		1,989
Long-term borrowings (Note 10)	28,593		30,824

Insurance liabilities and annuity benefits (Note 12)	33,347		37,166
Non-current compensation and benefits	16,021		21,202
All other liabilities (Note 14)	12,154		13,240
Liabilities of discontinued operations (Note 2)	1,137		887
Total liabilities	150,206		157,262

Preferred stock (Note 16)	6		6
Common stock (Note 16)	15		15
Accumulated other comprehensive income (loss) – net attributable to GE	(1,311)		1,582
Other capital	34,173		34,691
Retained earnings	84,693		85,110
Less common stock held in treasury	(81,209)		(81,093)
Total GE shareholders’ equity	36,366		40,310
Noncontrolling interests (Note 16)	1,216		1,302
Total equity	37,582		41,612
Total liabilities and equity	$	187,788	$	198,874

In the second quarter of 2019, the Company reorganized its Grid Solutions reporting unit to separate the Grid Solutions software business and the Grid Solutions equipment and services business. As a result of this reorganization, the Company allocated goodwill to the Grid Solutions businesses based on their relative fair values, and performed a goodwill impairment test. The goodwill allocated to the Grid Solutions equipment and services business was determined to be impaired, and an impairment loss of $744

2022 FORM 10-K 45


STATEMENT OF CASH FLOWS

For the years ended December 31 (In millions)	2022		2021		2020

Net earnings (loss)	$	292	$	(6,591)	$	5,546


(Earnings) loss from discontinued operations activities	644		3,195		911
Adjustments to reconcile net earnings (loss) to cash from (used for) operating activities
Depreciation and amortization of property, plant and equipment	1,802		1,871		2,128
Amortization of intangible assets (Note 7)	1,742		1,138		1,336
Goodwill impairments (Note 7)	—		—		877

(Gains) losses on purchases and sales of business interests (Note 19)	(66)		40		(12,469)
(Gains) losses on equity securities (Note 19)	144		(1,656)		2,085
Debt extinguishment costs	465		6,524		301
Principal pension plans cost (Note 13)	575		2,650		3,559
Principal pension plans employer contributions (Note 13)	(325)		(326)		(2,806)
Other postretirement benefit plans (net) (Note 13)	(1,160)		(1,144)		(893)
Provision (benefit) for income taxes (Note 15)	476		(286)		(487)
Cash recovered (paid) during the year for income taxes	(1,127)		(1,165)		(1,441)
Changes in operating working capital:
Decrease (increase) in current receivables	(3,011)		(177)		(1,319)
Decrease (increase) in inventories, including deferred inventory costs	(2,341)		(702)		1,105
Decrease (increase) in current contract assets	1,463		1,031		1,631
Increase (decrease) in accounts payable and equipment project payables	2,793		(2)		(582)
Increase (decrease) in progress collections and current deferred income	2,492		(1,052)		(247)
Financial services derivatives net collateral/settlement	(154)		(1,143)		1,897
All other operating activities	1,160		(1,317)		(109)
Cash from (used for) operating activities – continuing operations	5,864		888		1,025
Cash from (used for) operating activities – discontinued operations	52		2,444		2,543
Cash from (used for) operating activities	5,916		3,332		3,568

Additions to property, plant and equipment	(1,371)		(1,250)		(1,579)
Dispositions of property, plant and equipment	209		167		203
Additions to internal-use software	(113)		(111)		(151)
Proceeds from sale of discontinued operations	—		22,356		—
Proceeds from principal business dispositions	15		1		20,562
Net cash from (payments for) principal businesses purchased	(30)		(1,550)		(85)
Sales of retained ownership interests	4,717		4,145		417
Net (purchases) dispositions of insurance investment securities	(876)		(1,290)		(1,352)
All other investing activities	(726)		1,237		1,280
Cash from (used for) investing activities – continuing operations	1,825		23,705		19,297
Cash from (used for) investing activities – discontinued operations	444		(2,397)		(2,626)
Cash from (used for) investing activities	2,270		21,308		16,671

Net increase (decrease) in borrowings (maturities of 90 days or less)	65		(710)		(4,168)
Newly issued debt (maturities longer than 90 days)	8,205		364		15,028
Repayments and other debt reductions (maturities longer than 90 days)	(11,205)		(36,521)		(29,632)
Dividends paid to shareholders	(639)		(575)		(648)
Cash received (paid) for debt extinguishment costs	338		(7,196)		(335)
Purchases of GE common stock for treasury	(1,048)		(107)		(28)
All other financing activities	(1,302)		(551)		23
Cash from (used for) financing activities – continuing operations	(5,585)		(45,296)		(19,762)
Cash from (used for) financing activities – discontinued operations	—		119		(90)
Cash from (used for) financing activities	(5,585)		(45,177)		(19,852)
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	(369)		(213)		145
Increase (decrease) in cash, cash equivalents and restricted cash	2,232		(20,750)		531
Cash, cash equivalents and restricted cash at beginning of year	16,859		37,608		37,077
Cash, cash equivalents and restricted cash at December 31	19,092		16,859		37,608
Less cash, cash equivalents and restricted cash of discontinued operations at December 31	1,176		736		623
Cash, cash equivalents and restricted cash of continuing operations at December 31	$	17,916	$	16,123	$	36,985
Supplemental disclosure of cash flows information
Cash paid during the year for interest	$	(1,561)	$	(2,536)	$	(2,976)

2022 FORM 10-K 46


STATEMENT OF COMPREHENSIVE INCOME (LOSS)

For the years ended December 31 (In millions)	2022		2021		2020

Net earnings (loss)	$	292	$	(6,591)	$	5,546
Less: net earnings (loss) attributable to noncontrolling interests	67		(71)		(158)
Net earnings (loss) attributable to the Company	$	225	$	(6,520)	$	5,704

Currency translation adjustments	(1,355)		(174)		435
Benefit plans	2,889		9,044		1,632
Investment securities and cash flow hedges	(4,425)		2,466		(78)

Less: other comprehensive income (loss) attributable to noncontrolling interests	1		5		6
Other comprehensive income (loss) attributable to the Company	$	(2,893)	$	11,330	$	1,984

Comprehensive income (loss)	$	(2,600)	$	4,745	$	7,536
Less: comprehensive income (loss) attributable to noncontrolling interests	68		(66)		(152)
Comprehensive income (loss) attributable to the Company	$	(2,668)	$	4,810	$	7,688


STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

For the years ended December 31 (In millions)	2022		2021		2020

Preferred stock issued	$	6	$	6	$	6
Common stock issued	$	15	$	15	$	702

Beginning balance	1,582		(9,749)		(11,732)
Currency translation adjustments	(1,353)		(177)		433
Benefit plans	2,886		9,041		1,628
Investment securities and cash flow hedges	(4,425)		2,466		(78)
Accumulated other comprehensive income (loss)	$	(1,311)	$	1,582	$	(9,749)
Beginning balance	34,691		34,307		34,405
Gains (losses) on treasury stock dispositions	(741)		(740)		(703)
Stock-based compensation	362		429		429
Other changes(a)	(139)		696		176
Other capital	$	34,173	$	34,691	$	34,307
Beginning balance	85,110		92,247		87,732
Net earnings (loss) attributable to the Company	225		(6,520)		5,704
Dividends and other transactions with shareholders	(642)		(617)		(1,014)
Changes in accounting	—		—		(175)
Retained earnings	$	84,693	$	85,110	$	92,247
Beginning balance	(81,093)		(81,961)		(82,797)
Purchases	(1,048)		(107)		(28)
Dispositions	931		974		864
Common stock held in treasury	$	(81,209)	$	(81,093)	$	(81,961)
GE shareholders' equity balance	36,366		40,310		35,552
Noncontrolling interests balance	1,216		1,302		1,522
Total equity balance at December 31	$	37,582	$	41,612	$	37,073

(a) Included $687 million ~~was recorded. In the third quarter of 2019, the Company performed its annual goodwill impairment test, and recorded an impairment loss of $742 million in its Hydro reporting unit.~~

We identified the evaluation of projected revenue and operating profit used in the assessment of the carrying value of goodwill, including the determination of related goodwill impairment losses, for the Grid Solutions equipment and services and Hydro reporting units as a critical audit matter. Specifically, the evaluation of projected revenue and operating profit required the application of subjective auditor judgment because these projections involve assumptions about future events.

The primary procedures we performed to address this critical audit matter included the following. We tested certain internal controls over the Company’s goodwill impairment process, including controls over the development of projected financial information, and the Company’s review of the projections and comparison to historical results. We evaluated the projected revenue and operating profit assumptions by comparing the projected amounts to the past performance of the reporting units, including historical results and growth rates, and relevant and reliable industry benchmark data related to future events. We also considered evidence obtained in other areas of the audit, including information that might be contrary to the assumptions used by the Company in preparing its projections. We evaluated the Company’s ability to accurately prepare projections by comparing the projected revenues and operating profit to actual results for the same period. In addition, we involved valuation professionals with specialized skills and knowledge, who assisted in:

~~comparing the projected amounts to industry benchmark data, and~~

~~evaluating sensitivity analyses related to key inputs, including long-term revenue growth rates and projected operating profit.~~

~~Evaluation of the effects of particular tax positions~~

As discussed in Note 15 to the consolidated financial statements, the Company’s annual tax rate is based on the Company’s income, statutory tax rates, and the effects of tax positions taken in the various jurisdictions in which the Company operates. Tax laws are complex and subject to different interpretations by taxpayers and respective government taxing authorities.

We identified the evaluation of the effects of particular tax positions as a critical audit matter. Complex auditor judgment was involved in evaluating the Company’s interpretation of applicable tax laws and regulations for these tax positions, including the evaluation of income tax uncertainties related to the ~~tax positions.~~change in par value of issued common stock from $0.06 to $0.01 in the year ended December 31, 2021.

The primary procedures we performed to address this critical audit matter included the following. We tested certain internal controls over the Company’s income tax process for particular tax positions, including controls related to the Company’s interpretation of applicable tax laws and regulations and the evaluation of income tax uncertainties. We inspected relevant documentation related to particular tax positions, including correspondence between the Company and taxing authorities. In addition, we involved tax professionals with specialized skills and knowledge, who assisted in:

~~evaluating the Company’s interpretation and application of relevant tax laws and regulations related to the tax positions, including income tax uncertainties, and~~

~~assessing the Company’s computation of the effects of the tax positions.~~

~~/s/ KPMG LLP~~

~~KPMG LLP~~

~~We have served as the Company's auditor since 1909.~~

~~Boston, Massachusetts~~

~~February 24, 2020~~

GE~~2019 FORM 10-K~~ 61



~~FINANCIAL STATEMENTS~~

~~FINANCIAL STATEMENTS~~

STATEMENT OF EARNINGS (LOSS) Consolidated
(In millions; per-share amounts in dollars) 2019
2018
2017

Sales of goods $ 58,949
$ 60,148
$ 62,709
Sales of services 28,538
28,792
29,233
GE Capital revenues from services 7,728
8,072
7,337
Total revenues (Note 26) 95,214
97,012
99,279

Cost of goods sold 48,406
50,244
52,483
Cost of services sold 21,622
22,574
23,110
Selling, general and administrative expenses 13,949
14,643
14,257
Interest and other financial charges 4,227
4,766
4,655
Insurance losses and annuity benefits (Note 12) 3,294
2,790
12,168
Goodwill impairments (Note 8) 1,486
22,136
2,550
Non-operating benefit costs 2,844
2,753
2,423
Other costs and expenses 458
414
1,060
Total costs and expenses 96,287
120,320
112,707

Other income (Note 19) 2,222
2,321
2,083
GE Capital earnings (loss) from continuing operations —
—
—

Earnings (loss) from continuing operations
  before income taxes
1,149
(20,987 ) (11,345 )
Benefit (provision) for income taxes (Note 15) (726 ) (93 ) 2,808
Earnings (loss) from continuing operations 423
(21,080 ) (8,536 )
Earnings (loss) from discontinued operations,
  net of taxes (Note 2)
(5,335 ) (1,363 ) (312 )
Net earnings (loss) (4,912 ) (22,443 ) (8,849 )
Less net earnings (loss) attributable to noncontrolling
  interests
66
(89 ) (365 )
Net earnings (loss) attributable to the Company (4,979 ) (22,355 ) (8,484 )
Preferred stock dividends (460 ) (447 ) (436 )
Net earnings (loss) attributable to GE common
  shareholders
$ (5,439 ) $ (22,802 ) $ (8,920 )

Amounts attributable to GE common shareholders
Earnings (loss) from continuing operations $ 423
$ (21,080 ) $ (8,536 )
Less net earnings (loss) attributable to
  noncontrolling interests, continuing operations
7
(90 ) (283 )
Earnings (loss) from continuing operations attributable
  to the Company
416
(20,991 ) (8,253 )
Preferred stock dividends (460 ) (447 ) (436 )
Earnings (loss) from continuing operations attributable
  to GE common shareholders
(44 ) (21,438 ) (8,689 )
Earnings (loss) from discontinued operations,
  net of taxes
(5,335 ) (1,363 ) (312 )
Less net earnings (loss) attributable to
  noncontrolling interests, discontinued operations
60
1
(81 )
Net earnings (loss) attributable to
  GE common shareholders
$ (5,439 ) $ (22,802 ) $ (8,920 )

Per-share amounts (Note 18)
Earnings (loss) from continuing operations
Diluted earnings (loss) per share $ (0.01 ) $ (2.47 ) $ (1.00 )
Basic earnings (loss) per share $ (0.01 ) $ (2.47 ) $ (1.00 )

Net earnings (loss)
Diluted earnings (loss) per share $ (0.62 ) $ (2.62 ) $ (1.03 )
Basic earnings (loss) per share $ (0.62 ) $ (2.62 ) $ (1.03 )

Dividends declared per common share $ 0.04
$ 0.37
$ 0.84

GE~~2019 FORM 10-K~~ 62



~~FINANCIAL STATEMENTS~~

STATEMENT OF EARNINGS (LOSS) (CONTINUED) GE(a) GE Capital
(In millions) 2019
2018
2017
2019
2018
2017

Sales of goods $ 59,138
$ 60,147
$ 62,786
$ 79
$ 121
$ 130
Sales of services 28,581
28,891
29,443
—
—
—
GE Capital revenues from services —
—
—
8,662
9,430
8,940
Total revenues (Note 26) 87,719
89,038
92,229
8,741
9,551
9,070

Cost of goods sold 48,620
50,265
52,588
61
95
102
Cost of services sold 19,665
20,611
21,062
2,019
2,089
2,196
Selling, general and administrative expenses 13,404
13,851
13,094
931
1,341
1,662
Interest and other financial charges 2,115
2,415
2,538
2,532
2,982
3,145
Insurance losses and annuity benefits (Note 12) —
—
—
3,353
2,849
12,213
Goodwill impairments (Note 8) 1,486
22,136
1,165
—
—
1,386
Non-operating benefit costs 2,828
2,740
2,409
16
12
14
Other costs and expenses —
(51 ) (22 ) 480
558
986
Total costs and expenses 88,118
111,967
92,834
9,392
9,926
21,703

Other income (Note 19) 2,200
2,317
1,893
—
—
—
GE Capital earnings (loss) from continuing operations (530 ) (489 ) (6,765 ) —
—
—

Earnings (loss) from continuing operations
  before income taxes
1,271
(21,101 ) (5,476 ) (652 ) (375 ) (12,633 )
Benefit (provision) for income taxes (Note 15) (1,309 ) (467 ) (3,493 ) 582
374
6,302
Earnings (loss) from continuing operations (38 ) (21,568 ) (8,970 ) (69 ) (1 ) (6,331 )
Earnings (loss) from discontinued operations,
  net of taxes (Note 2)
(5,335 ) (1,363 ) (319 ) 192
(1,670 ) (312 )
Net earnings (loss) (5,373 ) (22,931 ) (9,288 ) 123
(1,672 ) (6,643 )
Less net earnings (loss) attributable to noncontrolling
  interests
66
(129 ) (368 ) 1
40
4
Net earnings (loss) attributable to the Company (5,439 ) (22,802 ) (8,920 ) 122
(1,712 ) (6,647 )
Preferred stock dividends —
—
—
(460 ) (447 ) (436 )
Net earnings (loss) attributable to GE common shareholders $ (5,439 ) $ (22,802 ) $ (8,920 ) $ (338 ) $ (2,159 ) $ (7,083 )

Amounts attributable to GE common shareholders:
Earnings (loss) from continuing operations $ (38 ) $ (21,568 ) $ (8,970 ) $ (69 ) $ (1 ) $ (6,331 )
Less net earnings (loss) attributable to
  noncontrolling interests, continuing operations
6
(130 ) (280 ) 1
40
(3 )
Earnings (loss) from continuing operations attributable
  to the Company
(44 ) (21,438 ) (8,689 ) (70 ) (42 ) (6,328 )
Preferred stock dividends —
—
—
(460 ) (447 ) (436 )
Earnings (loss) from continuing operations attributable
  to GE common shareholders
(44 ) (21,438 ) (8,689 ) (530 ) (489 ) (6,765 )
Earnings (loss) from discontinued operations,
  net of taxes
(5,335 ) (1,363 ) (319 ) 192
(1,670 ) (312 )
Less net earnings (loss) attributable to
  noncontrolling interests, discontinued operations
60
1
(88 ) —
—
6
Net earnings (loss) attributable to
  GE common shareholders
$ (5,439 ) $ (22,802 ) $ (8,920 ) $ (338 ) $ (2,159 ) $ (7,083 )

~~(a) Represents the adding together of all GE Industrial affiliates and GE Capital continuing operations on a one-line basis. See Note 1.~~

GE~~2019 FORM 10-K~~ 63



~~FINANCIAL STATEMENTS~~

STATEMENT OF FINANCIAL POSITION Consolidated
December 31 (In millions, except share amounts) 2019
2018

Cash, cash equivalents and restricted cash $ 36,394
$ 31,124
Investment securities (Note 3) 48,521
33,508
Current receivables (Note 4) 16,769
14,645
Financing receivables – net (Note 5) 3,134
7,699
Inventories (Note 6) 14,104
13,803
Other GE Capital receivables 7,144
7,143
Property, plant and equipment – net (Note 7) 43,290
43,611
Operating lease assets (Note 7) 2,896
—
Receivable from GE Capital —
—
Investment in GE Capital —
—
Goodwill (Note 8) 26,734
33,974
Other intangible assets – net (Note 8) 10,653
12,178
Contract and other deferred assets (Note 9) 16,801
17,431
All other assets (Note 10) 16,461
18,357
Deferred income taxes (Note 15) 9,889
12,117
Assets of businesses held for sale (Note 2) 9,149
1,629
Assets of discontinued operations (Note 2) 4,109
63,853
Total assets $ 266,048
$ 311,072

Short-term borrowings (Note 11) $ 22,072
$ 12,776
Short-term borrowings assumed by GE (Note 11) —
—
Accounts payable, principally trade accounts 15,926
13,826
Progress collections and deferred income (Note 9) 20,508
18,983
Other GE current liabilities (Note 14) 15,753
14,866
Non-recourse borrowings of consolidated securitization entities (Note 11) 1,655
1,875
Long-term borrowings (Note 11) 67,155
88,949
Long-term borrowings assumed by GE (Note 11) —
—
Operating lease liabilities (Note 7) 3,162
—
Insurance liabilities and annuity benefits (Note 12) 39,826
35,562
Non-current compensation and benefits 31,687
31,928
All other liabilities (Note 14) 16,583
20,839
Liabilities of businesses held for sale (Note 2) 1,658
708
Liabilities of discontinued operations (Note 2) 203
19,281
Total liabilities 236,187
259,591

Preferred stock (5,939,875 shares outstanding at both
December 31, 2019 and December 31, 2018)
6
6
Common stock (8,738,434,000 and 8,702,227,000 shares outstanding
at December 31, 2019 and December 31, 2018, respectively)
702
702
Accumulated other comprehensive income (loss) – net attributable to GE (11,732 ) (14,414 )
Other capital 34,405
35,504
Retained earnings 87,732
93,109
Less common stock held in treasury (82,797 ) (83,925 )
Total GE shareholders’ equity 28,316
30,981
Noncontrolling interests (Note 16) 1,545
20,500
Total equity 29,861
51,481
Total liabilities and equity $ 266,048
$ 311,072

GE~~2019 FORM 10-K~~ 64



~~FINANCIAL STATEMENTS~~

STATEMENT OF FINANCIAL POSITION (CONTINUED) GE(a)
GE Capital
December 31 (In millions, except share amounts) 2019
2018
2019
2018

Cash, cash equivalents and restricted cash $ 17,613
$ 16,632

$ 18,781
$ 14,492
Investment securities (Note 3) 10,008
187

38,514
33,393
Current receivables (Note 4) 13,883
10,262

—
—
Financing receivables – net (Note 5) —
—

6,979
13,628
Inventories (Note 6) 14,104
13,803

—
—
Other GE Capital receivables —
—

11,767
15,361
Property, plant and equipment – net (Note 7) 14,370
14,828

29,649
29,510
Operating lease assets (Note 7) 3,077
—
237
—
Receivable from GE Capital 19,142
22,513

—
—
Investment in GE Capital 15,299
11,412

—
—
Goodwill (Note 8) 25,895
33,070

839
904
Other intangible assets – net (Note 8) 10,461
11,942

192
236
Contract and other deferred assets (Note 9) 16,833
17,431

—
—
All other assets (Note 10) 8,399
8,578

8,648
9,869
Deferred income taxes (Note 15) 8,189
10,176

1,700
1,936
Assets of businesses held for sale (Note 2) 8,626
1,524

241
—
Assets of discontinued operations (Note 2) 202
59,169

3,907
4,610
Total assets $ 186,100
$ 231,526

$ 121,454
$ 123,939

Short-term borrowings (Note 11) $ 5,606
$ 5,147
$ 12,030
$ 4,999
Short-term borrowings assumed by GE (Note 11) 5,473
4,207
2,104
2,684
Accounts payable, principally trade accounts 17,702
17,579

886
1,171
Progress collections and deferred income (Note 9) 20,694
19,239

—
—
Other GE current liabilities (Note 14) 16,833
16,444

—
—
Non-recourse borrowings of consolidated securitization entities (Note 11) —
—

1,655
1,875
Long-term borrowings (Note 11) 15,085
20,804
26,175
36,154
Long-term borrowings assumed by GE (Note 11) 25,895
32,054
17,038
19,828
Operating lease liabilities (Note 7) 3,369
—
238
—
Insurance liabilities and annuity benefits (Note 12) —
—

40,232
35,994
Non-current compensation and benefits 31,208
31,461

472
459
All other liabilities (Note 14) 12,787
14,881

5,040
7,562
Liabilities of businesses held for sale (Note 2) 1,620
748

52
—
Liabilities of discontinued operations (Note 2) 106
17,481

97
1,800
Total liabilities 156,379
180,045

106,016
112,527

Preferred stock (5,939,875 shares outstanding at both
December 31, 2019 and December 31, 2018) 6
6

6
6
Common stock (8,738,434,000 and 8,702,227,000 shares outstanding
at December 31, 2019 and December 31, 2018, respectively) 702
702

—
—
Accumulated other comprehensive income (loss) – net attributable to GE (11,732 ) (14,414 )
(852 ) (783 )
Other capital 34,405
35,504

17,001
12,883
Retained earnings 87,732
93,109

(857 ) (694 )
Less common stock held in treasury (82,797 ) (83,925 )
—
—
Total GE shareholders’ equity 28,316
30,981

15,299
11,412
Noncontrolling interests (Note 16) 1,406
20,499

139
1
Total equity 29,721
51,480

15,438
11,412
Total liabilities and equity $ 186,100
$ 231,526

$ 121,454
$ 123,939

~~(a) Represents the adding together of all GE Industrial affiliates and GE Capital continuing operations on a one-line basis. See Note 1.~~

GE~~2019~~2022 FORM 10-K 6547



~~FINANCIAL STATEMENTS~~

STATEMENT OF CASH FLOWS Consolidated
For the years ended December 31 (In millions) 2019
2018
2017

Net earnings (loss) $ (4,912 ) $ (22,443 ) $ (8,849 )
(Earnings) loss from discontinued operations 5,335
1,363
312
Adjustments to reconcile net earnings (loss) to cash provided from
  operating activities:

Depreciation and amortization of property, plant and equipment (Note 7) 4,026
4,419
4,332
Amortization of intangible assets (Note 8) 1,569
2,163
1,862
Goodwill impairments (Note 8) 1,486
22,136
2,550
(Earnings) loss from continuing operations retained by GE Capital —
—
—
(Gains) losses on purchases and sales of business interests (Note 19) (53 ) (1,522 ) (1,024 )
Principal pension plans cost (Note 13) 3,878
4,226
3,687
Principal pension plans employer contributions (Note 13) (298 ) (6,283 ) (1,978 )
Other postretirement benefit plans (net) (Note 13) (1,228 ) (1,033 ) (888 )
Provision (benefit) for income taxes (Note 15) 726
93
(2,808 )
Cash recovered (paid) during the year for income taxes (1,950 ) (1,404 ) (1,924 )
Decrease (increase) in contract and other deferred assets 62
(81 ) (1,243 )
Decrease (increase) in GE current receivables (2,851 ) (358 ) (3,902 )
Decrease (increase) in inventories (1,109 ) (356 ) 324
Increase (decrease) in accounts payable 2,977
1,545
169
Increase (decrease) in GE progress collections 1,373
(571 ) 1,912
All other operating activities 1,388
1,317
13,308
Cash from (used for) operating activities – continuing operations 10,419
3,210
5,840
Cash from (used for) operating activities – discontinued operations (1,647 ) 1,768
714
Cash from (used for) operating activities 8,772
4,978
6,554

Additions to property, plant and equipment (5,813 ) (6,627 ) (6,642 )
Dispositions of property, plant and equipment 3,718
4,093
5,530
Additions to internal-use software (282 ) (320 ) (454 )
Net decrease (increase) in GE Capital financing receivables 1,117
1,796
805
Proceeds from sale of discontinued operations 5,864
29
1,464
Proceeds from principal business dispositions 4,683
8,425
3,208
Net cash from (payments for) principal businesses purchased (68 ) (1 ) (2,722 )
Capital contribution from GE to GE Capital —
—
—
All other investing activities 1,466
11,530
5,538
Cash from (used for) investing activities – continuing operations 10,684
18,925
6,728
Cash from (used for) investing activities – discontinued operations (1,745 ) (645 ) (1,349 )
Cash from (used for) investing activities 8,939
18,280
5,379

Net increase (decrease) in borrowings (maturities of 90 days or less) 280
(4,343 ) 1,699
Newly issued debt (maturities longer than 90 days) 2,185
3,120
10,879
Repayments and other reductions (maturities longer than 90 days) (16,567 ) (20,319 ) (25,220 )
Capital contribution from GE to GE Capital —
—
—
Net dispositions (purchases) of GE shares for treasury 29
(17 ) (2,550 )
Dividends paid to shareholders (649 ) (4,474 ) (8,650 )
All other financing activities (1,043 ) (1,312 ) (85 )
Cash from (used for) financing activities – continuing operations (15,764 ) (27,345 ) (23,927 )
Cash from (used for) financing activities – discontinued operations (368 ) (4,462 ) 5,443
Cash from (used for) financing activities (16,133 ) (31,807 ) (18,484 )
Effect of currency exchange rate changes on cash, cash equivalents
  and restricted cash
(50 ) (628 ) 891
Increase (decrease) in cash, cash equivalents and restricted cash 1,529
(9,176 ) (5,659 )
Cash, cash equivalents and restricted cash at beginning of year 35,548
44,724
50,384
Cash, cash equivalents and restricted cash at end of year 37,077
35,548
44,724
Less cash, cash equivalents and restricted cash of
  discontinued operations at end of year
638
4,424
7,901
Cash, cash equivalents and restricted cash of continuing operations
  at end of year
$ 36,439
$ 31,124
$ 36,823
Supplemental disclosure of cash flows information
Cash paid during the year for interest $ (3,816 ) $ (4,409 ) $ (4,211 )

GE~~2019 FORM 10-K~~ 66



~~FINANCIAL STATEMENTS~~

STATEMENT OF CASH FLOWS (CONTINUED) GE(a) GE Capital
For the years ended December 31 (In millions) 2019
2018
2017
2019
2018
2017

Net earnings (loss) $ (5,373 ) $ (22,931 ) $ (9,288 ) $ 123
$ (1,672 ) $ (6,643 )
(Earnings) loss from discontinued operations 5,335
1,363
319
(192 ) 1,670
312
Adjustments to reconcile net earnings (loss) to cash provided from
  operating activities:

Depreciation and amortization of property, plant and equipment (Note 7) 2,001
2,290
2,050
2,026
2,110
2,277
Amortization of intangible assets 1,512
2,109
1,796
57
53
65
Goodwill impairments (Note 8) 1,486
22,136
1,165
—
—
1,386
(Earnings) loss from continuing operations retained by GE Capital 530
489
10,781
—
—
—
(Gains) losses on purchases and sales of business interests (Note 19) (3 ) (1,234 ) (1,024 ) (50 ) (288 ) —
Principal pension plans cost (Note 13) 3,878
4,226
3,687
—
—
—
Principal pension plans employer contributions (Note 13) (298 ) (6,283 ) (1,978 ) —
—
—
Other postretirement benefit plans (net) (Note 13) (1,213 ) (1,015 ) (865 ) (15 ) (18 ) (23 )
Provision (benefit) for income taxes (Note 15) 1,309
467
3,493
(582 ) (374 ) (6,302 )
Cash recovered (paid) during the year for income taxes (1,904 ) (1,343 ) (2,188 ) (46 ) (61 ) 264
Decrease (increase) in contract and other deferred assets 62
(81 ) (1,243 ) —
—
—
Decrease (increase) in GE current receivables (3,904 ) (966 ) 1,040
—
—
—
Decrease (increase) in inventories (877 ) (364 ) 339
—
—
—
Increase (decrease) in accounts payable 684
1,595
(46 ) (44 ) 2
(75 )
Increase (decrease) in GE progress collections 1,317
(433 ) 1,938
—
—
—
All other operating activities (Note 24) 72
676
1,504
605
158
11,114
Cash from (used for) operating activities – continuing operations 4,614
701
11,479
1,881
1,582
2,374
Cash from (used for) operating activities – discontinued operations (49 ) 2,051
(195 ) (1,917 ) (415 ) (968 )
Cash from (used for) operating activities 4,565
2,752
11,284
(35 ) 1,166
1,407

Additions to property, plant and equipment (2,216 ) (2,234 ) (3,403 ) (3,830 ) (4,569 ) (3,680 )
Dispositions of property, plant and equipment 371
271
1,186
3,348
3,853
4,579
Additions to internal-use software (274 ) (306 ) (423 ) (8 ) (14 ) (31 )
Net decrease (increase) in GE Capital financing receivables (Note 24) —
—
—
3,389
9,986
2,897
Proceeds from sale of discontinued operations 5,864
—
—
—
29
1,464
Proceeds from principal business dispositions 1,083
6,047
3,086
3,938
2,011
—
Net cash from (payments for) principal businesses purchased (447 ) (1 ) (2,722 ) —
—
—
Capital contribution from GE to GE Capital (4,000 ) —
—
—
—
—
All other investing activities (Note 24) 3,675
(640 ) (9,439 ) 2,617
482
3,013
Cash from (used for) investing activities – continuing operations 4,056
3,138
(11,715 ) 9,453
11,777
8,242
Cash from (used for) investing activities – discontinued operations (3,449 ) (698 ) 2,312
2,023
186
(1,784 )
Cash from (used for) investing activities 607
2,439
(9,403 ) 11,476
11,964
6,458

Net increase (decrease) in borrowings (maturities of 90 days or less) (595 ) (987 ) 1,808
(256 ) (4,308 ) 69
Newly issued debt (maturities longer than 90 days) 31
6,570
16,267
2,154
3,045
1,909
Repayments and other reductions (maturities longer than 90 days) (6,458 ) (1,023 ) (5,579 ) (11,632 ) (19,836 ) (21,007 )
Capital contribution from GE to GE Capital —
—
—
4,000
—
—
Net dispositions (purchases) of GE shares for treasury (Note 24) 29
(17 ) (2,550 ) —
—
—
Dividends paid to shareholders (352 ) (4,179 ) (8,355 ) (455 ) (371 ) (4,311 )
All other financing activities (Note 24) (312 ) 1,107
290
(819 ) (2,408 ) (280 )
Cash from (used for) financing activities – continuing operations (7,658 ) 1,470
1,881
(7,007 ) (23,878 ) (23,619 )
Cash from (used for) financing activities – discontinued operations (368 ) (4,462 ) 3,534
(1 ) —
1,909
Cash from (used for) financing activities (8,026 ) (2,992 ) 5,415
(7,008 ) (23,878 ) (21,710 )
Effect of currency exchange rate changes on cash, cash equivalents
  and restricted cash
(56 ) (494 ) 444
6
(134 ) 447
Increase (decrease) in cash, cash equivalents and restricted cash (2,911 ) 1,706
7,739
4,439
(10,882 ) (13,399 )
Cash, cash equivalents and restricted cash at beginning of year 20,528
18,822
11,083
15,020
25,902
39,301
Cash, cash equivalents and restricted cash at end of year 17,617
20,528
18,822
19,460
15,020
25,902
Less cash, cash equivalents and restricted cash of
  discontinued operations at end of year
4
3,896
7,144
633
528
757
Cash, cash equivalents and restricted cash of continuing operations
  at end of year
$ 17,613
$ 16,632
$ 11,678
$ 18,826
$ 14,492
$ 25,145
Supplemental disclosure of cash flows information
Cash paid during the year for interest $ (1,975 ) $ (2,201 ) $ (2,347 ) $ (2,632 ) $ (2,883 ) $ (2,793 )

~~(a) Represents the adding together of all GE Industrial affiliates and the impact of GE Capital dividends on a one-line basis. See Note 1.~~

GE~~2019 FORM 10-K~~ 67



~~FINANCIAL STATEMENTS~~

GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
STATEMENT OF COMPREHENSIVE INCOME (LOSS)
For the years ended December 31 (In millions)
2019
2018
2017

Net earnings (loss) $ (4,912 ) $ (22,443 ) $ (8,849 )
Less net earnings (loss) attributable to noncontrolling interests 66
(89 ) (365 )
Net earnings (loss) attributable to the Company $ (4,979 ) $ (22,355 ) $ (8,484 )

Investment securities $ 100
$ 64
$ (776 )
Currency translation adjustments 1,275
(1,664 ) 2,178
Cash flow hedges 36
(51 ) 51
Benefit plans 1,229
1,416
2,782
Other comprehensive income (loss) 2,641
(235 ) 4,236
Less other comprehensive income (loss) attributable to noncontrolling interests (40 ) (225 ) 51
Other comprehensive income (loss) attributable to the Company $ 2,681
$ (10 ) $ 4,184

Comprehensive income (loss) $ (2,272 ) $ (22,678 ) $ (4,613 )
Less comprehensive income (loss) attributable to noncontrolling interests 26
(314 ) (314 )
Comprehensive income (loss) attributable to the Company $ (2,297 ) $ (22,364 ) $ (4,300 )

GENERAL ELECTRIC COMPANY AND CONSOLIDATED AFFILIATES
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (In millions)
2019
2018
2017

Preferred stock issued $ 6
$ 6
$ 6
Common stock issued $ 702
$ 702
$ 702

Beginning balance (14,414 ) (14,404 ) (18,588 )
Investment securities 100
63
(777 )
Currency translation adjustments 1,315
(1,472 ) 2,145
Cash flow hedges 35
(49 ) 50
Benefit plans 1,231
1,448
2,766
Accumulated other comprehensive income (loss) ending balance $ (11,732 ) $ (14,414 ) $ (14,404 )
Beginning balance 35,504
37,384
37,224
Gains (losses) on treasury stock dispositions (925 ) (759 ) (304 )
Stock-based compensation 475
413
358
Other changes (649 ) (1,534 ) 106
Other capital ending balance $ 34,405
$ 35,504
$ 37,384
Beginning balance 93,109
117,245
133,857
Net earnings (loss) attributable to the Company (4,979 ) (22,355 ) (8,484 )
Dividends and other transactions with shareholders (766 ) (4,042 ) (8,130 )
Changes in accounting (Note 1) 368
2,261
2
Retained earnings ending balance $ 87,732
$ 93,109
$ 117,245
Beginning balance (83,925 ) (84,902 ) (83,038 )
Purchases (57 ) (268 ) (3,849 )
Dispositions 1,186
1,244
1,985
Common stock held in treasury ending balance $ (82,797 ) $ (83,925 ) $ (84,902 )
GE shareholders' equity balance 28,316
30,981
56,031
Noncontrolling interests balance (Note 16) 1,545
20,500
17,468
Total equity balance at December 31(a) $ 29,861
$ 51,481
$ 73,499

~~(a)~~

Total equity balance decreased by $(43,638) million from December 31, 2017, primarily due to non-cash after-tax goodwill impairment charge of $(22,371) million in 2018, reduction of noncontrolling interest balance of $(15,836) million attributable to Baker Hughes Class A shareholders at December 31, 2017 and after-tax loss of $(8,238) million in discontinued operations due to deconsolidation of Baker Hughes in 2019, partially offset by after-tax gain of $2,508 million in discontinued operations due to spin-off and subsequent merger of our Transportation business with Wabtec in 2019.

GE~~2019 FORM 10-K~~ 68



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

FINANCIAL STATEMENT PRESENTATION.We present our financial statements in a three-column format, which allows investors to see our GE industrial operations separately from our financial services operations. We believe that this provides useful supplemental information to our consolidated financial statements. To the extent that we have transactions between GE and GE Capital, these transactions are made on arm's length terms, are reported in the respective columns of our financial statements and are eliminated in consolidation. ~~See Note 25 for further information.~~

Our financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP), which requires us to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations, financial position and ~~financial position.~~cash flows. Such changes could result in future impairments of goodwill, intangibles, long-lived assets and investment securities, revisions to estimated profitability on long-term product service agreements, incremental credit losses on receivables and debt securities, a change in the carrying amount of our tax assets and liabilities, or a change in our insurance liabilities and pension obligations as of the time of a relevant measurement event.

In preparing our Statement of Cash Flows, we make certain adjustments to reflect cash flows that cannot otherwise be calculated by changes in our Statement of Financial Position. These adjustments may include, but are not limited to, the effects of currency exchange, acquisitions and dispositions of businesses, businesses classified as held for sale, the timing of settlements to suppliers for property, plant and equipment, non-cash gains/losses and other balance sheet reclassifications.

We have reclassified certain prior-year amounts to conform to the current-year’s ~~presentation.~~presentation, including retrospective adjustments made in 2021 to present: the remainder of our former Capital segment within Corporate, sales of spare parts within Sales of services and the related costs as Costs of services sold, and earnings per share to reflect the reverse stock split. Unless otherwise noted, tables are presented in U.S. dollars in millions. Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions. Earnings per share amounts are computed independently for earnings from continuing operations, earnings from discontinued operations and net earnings. As a result, the sum of per-share amounts may not equal the total. Unless otherwise indicated, information in these notes to consolidated financial statements relates to continuing operations. Certain of our operations have been presented as discontinued. We present businesses whose disposal represents a strategic shift that has, or will have, a major effect on our operations and financial results as discontinued operations when the components meet the criteria for held for sale, are sold, or spun-off. See Note 2 for further information.

On January 3, 2023, General Electric Company (the Company or GE) completed the previously announced separation (the Separation) of its HealthCare business, into a separate, independent publicly traded company. See Note 28 for further information.

CONSOLIDATION. Our financial statements consolidate all of our affiliates, entities where we have a controlling financial interest, most often because we hold a majority voting interest, or where we are required to apply the variable interest entity (VIE) model

because we have the power to direct the most economically significant activities of entities. We reevaluate whether we have a controlling financial interest in all entities when our rights and interests change.

REVENUES FROM THE SALE OF ~~EQUIPMENT~~

EQUIPMENT. Performance Obligations Satisfied Over Time. We recognize revenue on agreements for the sale of customized goods including power generation equipment, long-term construction projects and military development contracts on an over-time basis as we customize the customer's equipment during the manufacturing or integration process and obtain right to payment for work performed.

We recognize revenue as we perform under the arrangements using the percentage of completion method, which is based on our costs incurred to date relative to our estimate of total expected costs. Our estimate of costs to be incurred to fulfill our promise to a customer is based on our history of manufacturing or constructing similar assets for customers and is updated routinely to reflect changes in quantity or pricing of the inputs. We provide for potential losses on these agreements when it is probable that we will incur the loss.

Our billing terms for these over-time contracts are generally based on achieving specified milestones. The differences between the timing of our revenue recognized (based on costs incurred) and customer billings (based on contractual terms) results in changes to our contract asset or contract liability positions. See Note 98 for further information.

Performance Obligations Satisfied at a Point in Time. We recognize revenue on agreements for non-customized equipment including commercial aircraft engines, healthcare equipment and other goods we manufacture on a standardized basis for sale to the market at the point in time that the customer obtains control of the ~~good,~~product, which is generally no earlier than when the customer has physical ~~possession of the product.~~possession. We use proof of delivery for certain large equipment with more complex logistics, whereas the delivery of other equipment is estimated based on historical averages of in-transit periods (i.e., time between shipment and delivery).

Where arrangements include customer acceptance provisions based on seller or customer-specified objective criteria, we recognize revenue when we have concluded that the customer has control of the ~~goods~~equipment and that acceptance is likely to occur. We do not provide for anticipated losses on point-in-time transactions prior to transferring control of the equipment to the customer.

Our billing terms for these point-in-time equipment contracts generally coincide with delivery to the customer; however, within certain businesses, we receive progress collections from customers for large equipment purchases, to generally reserve production slots.

2022 FORM 10-K 48

REVENUES FROM THE SALE OF SERVICES. Consistent with our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) discussion and the way we manage our businesses, we refer to sales under service agreements, which includes both goods (such as spare parts and equipment upgrades) and related services (such as monitoring, maintenance and repairs) as sales of “services,” which is an important part of our operations. We sometimes offer our customers financing discounts for the purchase of certain ~~GE products~~equipment when sold in contemplation of long-term service agreements. These sales are accounted for as financing arrangements when payments for the ~~products~~equipment are collected through higher usage-based fees from servicing the equipment. See Note 98 for further information.

Performance Obligations Satisfied Over Time. We enter into long-term service agreements with our customers primarily within our ~~Aviation~~Aerospace and Power segments. These agreements require us to provide preventative maintenance, overhauls, and standby "warranty-type" services that include certain levels of assurance regarding asset performance and uptime throughout the contract periods, which generally range from 5 to 25 ~~years~~.years. We account for items that are integral to the maintenance of the equipment as part of our performance obligation, unless the customer has a substantive right to make a separate purchasing decision (e.g., equipment upgrade).

GE~~2019 FORM 10-K~~ 69



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

We recognize revenue as we perform under the arrangements using the percentage of completion method which is based on our costs incurred to date relative to our estimate of total expected costs. Throughout the life of a contract, this measure of progress captures the nature, timing and extent of our underlying performance activities as our stand-ready services often fluctuate between routine inspections and maintenance, unscheduled service events and major overhauls at ~~pre-determined~~predetermined usage intervals. We provide for potential losses on these agreements when it is probable that we will incur the loss. Contract modifications that extend or revise contract terms are not uncommon and generally result in our recognizing the impact of the revised terms prospectively over the remaining life of the modified contract (i.e., effectively like a new contract).

Our billing terms for these arrangements are generally based on the utilization of the asset (e.g., per hour of usage) or upon the occurrence of a major maintenance event within the contract, such as an overhaul. The differences between the timing of our revenue recognized (based on costs incurred) and customer billings (based on contractual terms) results in changes to our contract asset or contract liability positions. See Note 98 for further information.

We also enter into long-term services agreements in our ~~Healthcare~~HealthCare and Renewable Energy segments. Revenues are recognized for these arrangements on a straight-line basis consistent with the nature, timing and extent of our services, which primarily relate to routine maintenance and as needed ~~product~~equipment repairs. We generally invoice periodically as services are provided.

Performance Obligations Satisfied at a Point in Time. We sell certain tangible products, largely spare parts, through our services businesses. We recognize revenues and bill our customers at the point in time that the customer obtains control of the good, which is at the point in time we deliver the spare part to the ~~customer~~.customer.

COLLABORATIVE ARRANGEMENTS. Our ~~Aviation~~Aerospace business enters into collaborative arrangements and joint ventures with manufacturers and suppliers of components used to build and maintain certain engines. Under these arrangements, GE and its collaborative partners share in the risks and rewards of these programs through various revenue, cost and profit sharing payment structures. GE recognizes revenue and costs for these arrangements based on the scope of work GE is responsible for transferring to its customers. GE’s payments to participants are primarily recorded as either cost of services sold (~~$1,939~~($2,898 million, ~~$1,809~~$2,125 million and ~~$1,884~~$2,407 million for the years ended December 31, ~~2019, 2018~~2022, 2021, and ~~2017,~~2020, respectively) or as cost of ~~goods~~equipment sold ($~~2,974~~658 million, ~~$3,097~~$751 million and ~~$2,806~~$1,093 million for the years ended December 31, ~~2019, 2018~~2022, 2021 and 20~~17,~~2020, respectively). Our most significant collaborative arrangement is with Safran Aircraft ~~engines,~~Engines, a subsidiary of Safran Group of France, which sells LEAP and CFM56 engines through CFM International, a jointly owned non-consolidated company. GE makes substantial sales of parts and services to CFM International based on ~~arm's length~~arms-length terms.

~~GE CAPITAL REVENUES FROM SERVICES.~~ INSURANCE REVENUES.~~We use the interest method to recognize~~ Insurance revenues are comprised primarily of premiums and investment income ~~on loans. Interest on loans includes origination, commitment and other non-refundable fees~~ related to ~~funding (recorded in earned income on the interest method). We stop accruing interest at the earlier of the time at which collection of an account becomes doubtful or the account becomes 90 days past~~our run-off Insurance business. For traditional long-duration insurance contracts, we report premiums as revenue when due. ~~Previously recognized interest income that was accrued but not collected from the borrower is reversed, unless the terms of the~~ ~~loan agreement permit capitalization of accrued interest to the principal balance. Payments~~Premiums received on ~~nonaccrual loans~~non-traditional long-duration insurance contracts and investment contracts, including annuities without significant mortality risk, are applied to reduce the principal balance of the loan. We resume accruing interest on nonaccrual loans only when payments are brought current according to the loan’s original terms and future payments are reasonably assured.

not reported as revenues but rather as deposit liabilities. We recognize ~~financing lease income~~revenues for charges and assessments on ~~the interest method~~these contracts, mostly for mortality, contract initiation, administration and surrender. Amounts credited to ~~produce a level yield on funds not yet recovered. Estimated unguaranteed residual values~~policyholder accounts are based upon management's best estimates of the value of the leased asset at the end of the lease term. We use various sources of data in determining these estimates, including information obtained from third parties, which is adjusted for the attributes of the specific asset under lease. Guarantees of residual values by unrelated third parties are included within minimum lease payments. Significant assumptions we use in estimating residual values include estimated net cash flows over the remaining lease term, anticipated results of future remarketing, and estimated future component part and scrap metal prices, discounted at an appropriate rate.

~~We recognize operating lease income on a straight-line basis over the terms of underlying leases.~~

charged to expense.

~~SALES OF BUSINESS INTERESTS IN WHICH WE LOSE CONTROL.~~
~~Gains or losses on sales of affiliate shares~~ ~~that result in our loss of a controlling financial interest are recorded in earnings~~. If we retain a noncontrolling interest in our former affiliate, we initially record our investment at fair value, and any subsequent adjustments to the carrying value of the investment are recorded in earnings.

~~SALES OF BUSINESS INTERESTS IN WHICH WE RETAIN CONTROL.~~ ~~Gains or losses on sales of affiliate shares where we retain a controlling financial interest are recorded in equity.~~

CASH, CASH EQUIVALENTS AND RESTRICTED CASH. Debt securities and money market instruments with original maturities of three months or less are included in cash, cash equivalents and restricted cash unless classified as available-for-sale investment securities. Restricted cash primarily comprised ~~collateral for receivables sold and~~ funds restricted in connection with certain ongoing litigation matters and amounted to ~~$589~~$745 million and ~~$388~~$317 million at December 31, ~~2019~~2022 and ~~December 31, 2018,~~2021, respectively.

INVESTMENT SECURITIES. We report investments in available-for-sale debt securities and certain equity securities at fair value. Unrealized gains and losses on available-for-sale debt securities are recorded to other comprehensive income, net of applicable taxes and adjustments related to our insurance liabilities. Unrealized gains and losses on equity securities with readily determinable fair values are recorded to earnings.

GE~~2019 FORM 10-K~~ 70



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

Although we generally do not have the intent to sell any specific debt securities in the ordinary course of managing our portfolio, we may sell debt securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements and the funding of claims and obligations to policyholders.

2022 FORM 10-K 49

We regularly review investment securities for impairment. For debt securities, if we do not intend to sell the security or it is not more likely than not that we will be required to sell the security before recovery of our amortized cost, we evaluate qualitative criteria, such as the financial health of and specific prospects for the issuer, to determine whether we do not expect to recover the amortized cost basis of the security. We also evaluate quantitative criteria including determining whether there has been an adverse change in expected future cash flows. If we do not expect to recover the entire amortized cost basis of the security, we consider the security to ~~be other-than-temporarily impaired (OTTI),~~contain an expected credit loss, and we record the difference between the security’s amortized cost basis and its recoverable amount in earnings as an allowance for credit loss and the difference between the security’s recoverable amount and fair value in other comprehensive income. If we intend to sell the security or it is more likely than not we will be required to sell the security before recovery of its amortized cost basis, the security is ~~also~~ considered ~~OTTI,~~impaired, and we recognize the entire difference between the security’s amortized cost basis and its fair value in earnings. See Note 3 for further information.

CURRENT RECEIVABLES. Amounts due from customers arising from the sales of ~~products~~equipment and services are recorded at the outstanding amount, less allowance for losses. We regularly monitor the recoverability of our receivables. See Note 4 for further information.

~~FINANCING RECEIVABLES.~~ALLOWANCE FOR CREDIT LOSSES. ~~Our~~When we record customer receivables, contract assets and financing receivables ~~portfolio consists of a variety of~~arising from revenue transactions, as well as commercial mortgage loans and ~~leases, including both larger-balance, non-homogeneous loans~~reinsurance recoverables in our run-off insurance operations, financial guarantees and ~~leases and smaller-balance homogeneous loans and leases. We routinely evaluate our entire portfolio~~certain commitments, we record an allowance for ~~potential specific~~ credit ~~or collection issues that might indicate an impairment. Losses on financing receivables are recognized when they are incurred, which requires us to make our best estimate of probable~~ losses for the current expected credit losses (CECL) inherent in the ~~portfolio. See Note 5~~asset over its expected life. The allowance for ~~further information.~~credit losses is a valuation account deducted from the amortized cost basis of the assets to present their net carrying value at the amount expected to be collected. Each period, the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets. We evaluate debt securities with unrealized losses to determine whether any of the losses arise from concerns about the issuer’s credit or the underlying collateral and record an allowance for credit losses, if required.

We estimate expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. When measuring expected credit losses, we pool assets with similar country risk and credit risk characteristics. Changes in the relevant information may significantly affect the estimates of expected credit losses.

INVENTORIES. All inventories are stated at lower of cost or realizable values. Cost of inventories is primarily determined on a first-in, first-out (FIFO) basis. See Note 65 for further information.

PROPERTY, PLANT AND EQUIPMENT. The cost of GE property, plant and equipment is generally depreciated on a straight-line basis over its estimated economic life. The cost of GE Capital equipment leased to others on operating leases is depreciated on a straight-line basis to estimated residual value over the lease term or over the estimated economic life of the equipment. See Note 76 for further information.

LEASE ~~ACCOUNTING.~~ We determine if an arrangement is a lease or a service contract at inception. Where an arrangement is a lease we determine if it is an operating lease or a finance lease. Subsequently, if the arrangement is modified we reevaluate our classification.

~~Lessee.~~ACCOUNTING FOR LESSEE ARRANGEMENTS. At lease commencement, we record a lease liability and corresponding right-of-use (ROU) asset. ~~Lease liabilities represent the present value of our future lease payments over the expected lease term which includes options~~Options to extend ~~or terminate~~ the lease are included as part of the ROU lease asset and liability when it is reasonably certain ~~those options~~the Company will ~~be exercised.~~exercise the option. We have elected to include lease and non-lease components in determining our lease liability for all leased assets except our vehicle leases. Non-lease components are generally services that the lessor performs for the Company associated with the leased asset. For those leases with payments based on an index, the lease liability is determined using the index at lease commencement. Lease payments based on increases in the index subsequent to lease commencement are recognized as variable lease expense as they occur. The present value of our lease liability is determined using our incremental collateralized borrowing rate at lease inception. ROU assets represent our right to control the use of the leased asset during the lease and are recognized in an amount equal to the lease liability. Over the lease term we use the effective interest rate method to account for the lease liability as lease payments are made and the ROU asset is amortized to earnings in a manner that results in a straight-line expense recognition in the Statement of Earnings. A ROU asset and lease liability is not recognized forFor leases with an initial term of 12 months or less, an ROU asset and ~~we recognize~~lease liability is not recognized and lease expense ~~for these leases~~is recognized on a straight-line basis over the lease term. We test ROU assets ~~at least annually for impairment or~~ whenever events or changes in circumstance indicate that the asset may be impaired.

~~Lessor.~~ Equipment leased to others under operating leases are included in Property, plant and equipment and leases classified as finance leases are included in Financing receivables on our Statement of Financial Position. ~~Finance lease receivables are tested for impairment as described in the Financing Receivables section above.~~ ~~See Notes 5 and 7 for further information.~~

GOODWILL AND OTHER INTANGIBLE ASSETS. We test goodwill at least annually for impairment at the reporting unit level. A reporting unit is the operating segment, or one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a single reporting unit if they have similar economic characteristics. We recognize an impairment charge if the carrying amount of a reporting unit exceeds its fair ~~value and the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill.~~value. When a portion of a reporting unit is disposed, goodwill is allocated to the gain or loss on disposition based on the relative fair values of the business or businesses disposed and the portion of the reporting unit that will be retained.

GE~~2019 FORM 10-K~~ 71



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

For other intangible assets that are not deemed indefinite-lived, cost is generally amortized on a straight-line basis over the asset’s estimated economic life, except for individually significant customer-related intangible assets that are amortized in relation to total related sales. Amortizable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. In these circumstances, they are tested for impairment based on undiscounted cash flows and, if impaired, written down to estimated fair value based on either discounted cash flows or appraised values. See Note 87 for further information.

~~ASSOCIATED COMPANIES.~~
For unconsolidated entities over which we have significant influence and have not elected the fair value option, we account for our interest as equity method investments, and our investments in, and advances to, associated companies are presented on a one-line basis in All other assets in our consolidated Statement of Financial Position, net of any impairment. We evaluate our equity method investments for impairment whenever events or changes in circumstance indicate that the carrying amounts of such investments may not be recoverable. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. Our share of the results of associated companies are presented on a one-line basis in Other income within continuing operations in our consolidated Statement of Earnings (Loss). See Note 10 for further information.

Where we adopt the fair value option for our investment in an associated company, our investment in and any advances to are recorded in Investment securities in our consolidated Statement of Financial Position and any subsequent changes in fair value are recognized in Other income within continuing operations in our consolidated Statement of Earnings (Loss). ~~See Note 3 for further information.~~

DERIVATIVES AND HEDGING. We use derivatives to manage a variety of risks, including risks related to interest rates, foreign exchange, certain equity investments and commodity prices. Accounting for derivatives as hedges requires that, at inception and over the term of the arrangement, the hedged item and related derivative meet the requirements for hedge accounting. In evaluating whether a particular relationship qualifies for hedge accounting, we test effectiveness at inception and each reporting period thereafter by determining whether changes in the fair value of the derivative offset, within a specified range, changes in the fair value of the hedged item. If fair value changes fail this test, we discontinue applying hedge accounting to that relationship prospectively. Fair values of both the derivative instrument and the hedged item are calculated using internal valuation models incorporating market-based assumptions, subject to third-party confirmation, as applicable. See Note 2122 for further information.

2022 FORM 10-K 50

DEFERRED INCOME TAXES. Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases, as well as from net operating loss and tax credit carryforwards, and are stated at enacted tax rates expected to be in effect when those taxes are paid or recovered. Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. We evaluate the recoverability of these future tax deductions and credits by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. To the extent we consider it more likely than not that a deferred tax asset will not be recovered, a valuation allowance is established. Deferred taxes, as needed, are provided for our investment in affiliates and associated companies when we plan to remit those earnings. See Note 15 for further information.

~~BUSINESSES AND ASSETS HELD FOR SALE.~~ Businesses and assets held for sale represent components that meet accounting requirements to be classified as held for sale and are presented as single asset and liability amounts in our financial statements with a valuation allowance, if necessary, to recognize the net carrying amount at the lower of cost or fair value, less cost to sell. Financing receivables that no longer qualify to be presented as held for investment are classified as assets held for sale and recognized in our financial statements at the lower of cost or fair value, less cost to sell, with that amount representing a new cost basis at the date of transfer.

The determination of fair value for businesses and assets held for sale involves significant judgments and assumptions. Development of estimates of fair values in this circumstance is complex and is dependent upon, among other factors, the nature of the potential sales transaction (for example, asset sale versus sale of legal entity), composition of assets and/or businesses in the disposal group, the comparability of the disposal group to market transactions and negotiations with third-party purchasers. Such factors bear directly on the range of potential fair values and the selection of the best estimates. Key assumptions were developed based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction. We review all businesses and assets held for sale each reporting period to determine whether the existing carrying amounts are fully recoverable in comparison to estimated fair values, less cost to sell. ~~See Note 2 for further information.~~

~~INVESTMENT CONTRACTS,~~ INSURANCE LIABILITIES AND ~~INSURANCE~~ ANNUITY BENEFITS. Our run-off insurance operations include providing insurance and reinsurance for life and health risks and providing certain annuity products. Primary product types include long-term care, structured settlement annuities, life and disability insurance contracts and investment contracts. Insurance contracts are contracts with significant mortality and/or morbidity risks, while investment contracts are contracts without such risks.

For traditional long-duration insurance contracts, we report premiums as revenue when due. Premiums received on non-traditional long-duration insurance contracts and investment contracts, including annuities without significant mortality risk, are not reported as revenues but rather as deposit liabilities. We recognize revenues for charges and assessments on these contracts, mostly for mortality, contract initiation, administration and surrender. Amounts credited to policyholder accounts are charged to expense.

GE~~2019 FORM 10-K~~ 72



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

Liabilities for traditional long-duration insurance contracts ~~includes~~include both future policy benefit reserves and claims reserves. Future policy benefit reserves represent the present value of future policy benefits less the present value of future gross premiums based on actuarial assumptions. Liabilities for investment contracts equal the account value, that is, the amount that accrues to the benefit of the contract or policyholder including credited interest and assessments through the financial statement date.

Claim reserves are established when a claim is incurred or is estimated to have been incurred and ~~represents~~represent our best estimate of the present value of the ultimate obligations for future claim payments and claim adjustments expenses.

To the extent that unrealized gains on specific investment securities supporting our insurance contracts would result in a premium deficiency, should those gains be realized, an increase in future policy benefit reserves is recorded, with an offsetting after-tax reduction to net unrealized gains recorded in other comprehensive income.

Reinsurance recoverables are recorded when we cede insurance risk to third parties but are not relieved from our primary obligation to policyholders and cedents. When losses on ceded risks give rise to claims for recovery, we establish allowances for probable losses on such receivables from reinsurers as required. See Note 12 for further information.

POSTRETIREMENT BENEFIT PLANS. We sponsor a number of pension and retiree health and life insurance benefit plans that we present in three categories, principal pension plans, other pension plans and principal retiree benefit plans. We use a December 31 measurement date for these plans. On our ~~consolidated~~ Statement of Financial Position, we measure our plan assets at fair value and the obligations at the present value of the estimated payments to plan participants. Participants earn benefits based on their service and pay. Those estimated future payment amounts are determined based on assumptions. Differences between our actual results and what we assumed are recorded in a separate component of equity each period. These differences are amortized into earnings over the remaining average future service of active employees or the expected life of inactive participants, as applicable, who participate in the plan. See Note 13 for further information.

SUPPLY CHAIN FINANCE PROGRAMS. We evaluate supply chain finance programs to ensure where we use a third-party intermediary to settle our trade payables, their involvement does not change the nature, existence, amount, or timing of our trade payables and does not provide the Company with any direct economic benefit. If any characteristics of the trade payables change or we receive a direct economic benefit, we reclassify the trade payables as borrowings.

FAIR VALUE MEASUREMENTS. The following sections describe the valuation methodologies we use to measure financial and non-financial instruments accounted for at fair value including certain assets within our pension plans and retiree benefit plans. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These inputs establish a fair value hierarchy:

Level 1 – Quoted prices for identical instruments in active ~~markets.~~

markets; Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are ~~observable.~~

observable; and Level 3 – Significant inputs to the valuation model are unobservable.

RECURRING FAIR VALUE MEASUREMENTS. For financial assets and liabilities measured at fair value on a recurring basis, primarily investment securities and derivatives, fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. See Note 2021 for further information.

2022 FORM 10-K 51

Debt Securities. When available, we use quoted market prices to determine the fair value of debt securities which are included in Level 1. For our remaining debt securities, we obtain pricing information from an independent pricing vendor. The inputs and assumptions to the pricing vendor’s models are derived from market observable sources including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and other market-related data. These investments are included in Level 2. Our pricing vendors may also provide us with valuations that are based on significant unobservable inputs, and in those circumstances, we classify the investment securities in Level 3.

Annually, we conduct reviews of our primary pricing vendor to validate that the inputs used in that vendor’s pricing process are deemed to be market observable as defined in the standard. We believe that the prices received from our pricing vendor are representative of prices that would be received to sell the assets at the measurement date (exit prices) and are classified appropriately in the hierarchy.

GE~~2019 FORM 10-K~~ 73



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

We use non-binding broker quotes and other third-party pricing services as our primary basis for valuation when there is limited, or no, relevant market activity for a specific instrument or for other instruments that share similar characteristics. Debt securities priced in this manner are included in Level 3.

Equity securities with readily determinable fair values. These publicly traded equity securities are valued using quoted prices and are included in Level 1.

Derivatives. The majority of our derivatives are valued using internal models. The models maximize the use of market observable inputs including interest rate curves and both forward and spot prices for currencies and commodities. Derivative assets and liabilities included in Level 2 primarily represent interest rate swaps, cross-currency swaps and foreign currency and commodity forward and option contracts. ~~Derivative assets and liabilities included in Level 3 primarily represent equity derivatives and interest rate products that contain embedded optionality or prepayment features.~~

Investments in private equity, real estate and collective funds held within our pension plans. ~~These~~Most investments are generally valued using the net asset value (NAV) per share as a practical expedient for fair value provided certain criteria are met. The NAVs are determined based on the fair values of the underlying investments in the funds. Investments that are measured at fair value using the NAV practical expedient are not required to be classified in the fair value hierarchy. Investments classified within Level 3 primarily relate to real estate and private equities which are valued using unobservable inputs, primarily by discounting expected future cash flows, using comparative market multiples, third-party pricing sources, or a combination of these approaches as appropriate. See Note 13 for further information.

NONRECURRING FAIR VALUE MEASUREMENTS. Certain assets are measured at fair value on a nonrecurring basis. These assets may include loans and long-lived assets reduced to fair value upon classification as held for sale, impaired loans based on the fair value of the underlying collateral, impaired equity securities without readily determinable fair value, equity method investments and long-lived assets, and remeasured retained investments in formerly consolidated subsidiaries upon a change in control that results in the deconsolidation of that subsidiary and retention of a noncontrolling stake in the entity. Assets written down to fair value when impaired and retained investments are not subsequently adjusted to fair value unless further impairment occurs. ~~See Note 20 for further information.~~

Equity investments without readily determinable fair value and Associated companies. Equity investments without readily determinable fair value and associated companies are valued using market observable data such as transaction prices when available. When market observable data is unavailable, investments are valued using either a discounted cash flow model, comparative market multiples, third-party pricing sources or a combination of these approaches as appropriate. These investments are generally included in Level 3.

Long-lived Assets.Fair values of long-lived assets ~~including aircraft,~~ are primarily derived internally and are based on observed sales transactions for similar assets. In other instances for which we do not have comparable observed sales transaction data, collateral values are developed internally and corroborated by external appraisal information. Adjustments to third-party valuations may be performed in circumstances where market comparables are not specific to the attributes of the specific collateral or appraisal information may not be reflective of current market conditions due to the passage of time and the occurrence of market events since receipt of the ~~information~~.information.

ACCOUNTING CHANGES. OnThe adoption of the new guidance on accounting for long duration insurance contracts on January 1, ~~2019,~~2023 will significantly change the accounting for measurements of our long-duration insurance liabilities and reinsurance recoverables and materially affect our consolidated financial statements. We currently estimate a decrease in Shareholders’ equity at the transition date of January 1, 2021 from adoption of the new guidance to be in an after-tax range of $7 billion to $8 billion, including approximately $5.5 billion to $6 billion in Accumulated other comprehensive income (AOCI) and $1.5 billion to $2 billion in Retained earnings. As of December 31, 2022, we ~~adopted ASU No. 2016-02 and related amendments,~~ ~~Leases (Topic 842). Upon adoption, we recorded a $315 million increase~~estimate the after-tax decrease in Shareholders' equity to ~~retained earnings,~~be reduced to approximately $3 billion to $4 billion, primarily ~~attributable~~due to changes in the market interest rate environment subsequent to the release of deferred gains on sale-lease back transactions. Our ROU assets and lease liabilities for operating leases at adoption were $3,272 million and $3,459 million, respectively, excluding discontinued operations and businesses held for sale. After the adoption date, principal collections on financing leases are classified as Cash from operating activities in our consolidated Statement of Cash Flows. Previously, such flows were classified as Cash from investing activities. transition date.

~~On January 1, 2019, we adopted ASU No. 2017-12,~~ ~~Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities~~. The ASU requires certain changes to the presentation of hedge accounting in the financial statements and some new or modified disclosures. The ASU also simplifies the application of hedge accounting and expands the strategies that qualify for hedge accounting. The adoption had an immaterial effect on our financial statements.

NOTE 2. BUSINESSES HELD FOR SALE AND DISCONTINUED ~~OPERATIONS~~

~~ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE.~~OPERATIONS. In ~~August 2019,~~the first quarter of 2022, we ~~announced an agreement~~signed a non-binding memorandum of understanding to sell ~~PK AirFinance, an aviation lending~~a portion of our Steam business within our ~~Capital~~Power segment to ~~Apollo Global Management, LLC and Athene Holding Ltd.~~ ~~The sale of a substantial portion of the assets and liabilities was completed in~~Électricité de France S.A. (EDF). In the fourth quarter of 2022, we signed a binding agreement for ~~proceeds of $3,575 million,~~this transaction, and we ~~recognized a pre-tax gain of $50 million.~~ As of December 31, 2019, we had remaining assets of $241 million (including Cash, cash equivalents and restricted cash of $45 million) and liabilities of $52 million for this business classified as held for sale. We expect to complete the sale of these remaining assets in the first half of 2020.

In February 2019, we announced an agreement to sell our BioPharma business within our Healthcare segment to Danaher Corporation for total consideration of approximately $21,400 million, subject to certain adjustments. As of December 31, 2019, we had assets of $8,742 million (including goodwill of $5,549 million) and liabilities of $1,372 million for this business classified as held for sale. We expect to complete the sale, subject to regulatory approval, in the ~~first~~second half of 2023. Closing the transaction is expected to result in a significant gain.

In the fourth quarter of ~~2020.~~

2022, we classified our captive industrial insurance subsidiary, with assets of $638 million and liabilities of $372 million, into held for sale and recorded a loss of $17 million in Other income (loss) in our Statement of Earnings (Loss). We expect to complete the sale of this business, subject to regulatory approval, by the first half of 2024.

2022 FORM 10-K 52

In ~~2018,~~the fourth quarter of 2021, we ~~signed an agreement to sell Energy Financial Services' (EFS) debt origination~~completed the sale of GE's share of our boiler manufacturing business in China in our Power segment. In connection with the transaction, we recorded a loss on the disposal of this business of $170 million in Other income (loss) in our consolidated Statement of Earnings (Loss). See Note 19 for further information.

On March 31, 2020, we completed the sale of our BioPharma business within our ~~Capital~~HealthCare segment ~~to Starwood Property Trust, Inc. The sale was completed~~ for ~~proceeds~~total consideration of ~~$2,011~~$21,112 million (after certain working capital adjustments) and incurred $185 million of cash payments directly associated with the transaction. As a result, in 2020, we recognized a pre-tax gain of ~~$288 million.~~ $12,362 million ($11,213 million after-tax) in our Statement of Earnings (Loss).

GE~~2019 FORM 10-K~~ 74


ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE	December 31, 2022		December 31, 2021

Current receivables, inventories and contract assets	$	495	$	—
Non-current captive insurance investment securities	554		—
Property, plant and equipment and intangible assets - net	232		—
All other assets	94		—
Assets of businesses held for sale	$	1,374	$	—

~~FINANCIAL STATEMENTS~~Progress collections and deferred income	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~$	1,127	$	—
Insurance liabilities and annuity benefits	358		—
Accounts payable, equipment project payables and all other liabilities	458		—
Liabilities of businesses held for sale	$	1,944	$	—

In November 2017, the Company announced its intention to exit approximately $20 billion of industrial assets. Since this announcement, we have classified various businesses across our Power, Aviation, and Healthcare segments, and Corporate as held for sale. ~~In 2019, we closed certain of these transactions within Corporate and our Power and Aviation segments~~ ~~for total net proceeds of~~ ~~$1,070 million, re~~cognized a pre-tax gain of $214 million in Other income in our consolidated Statement of Earnings (Loss) and liquidated $548 million of our previously recorded valuation allowance. These transactions are subject to customary working capital and other post-close adjustments. In addition, we recorded an additional valuation allowance of $254 million for the remaining businesses in held for sale. ~~As of December 31, 2019, we have closed the sale of substantially all of these assets in accordance with the plan.~~

FINANCIAL INFORMATION FOR ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE
December 31 (In millions)
2019
2018

Current receivables $ 499
$ 184
Inventories 712
529
Financing receivables held for sale 197
—
Property, plant, and equipment – net and Operating leases 958
423
Goodwill and Other intangible assets - net 6,286
884
Valuation allowance (719 ) (1,013 )
Deferred income taxes 815
—
All other assets 400
622
Assets of businesses held for sale $ 9,149
$ 1,629

Accounts payable & Progress collections and deferred income $ 843
$ 428
Non-current compensation and benefits 466
152
All other liabilities 349
128
Liabilities of businesses held for sale $ 1,658
$ 708

DISCONTINUED ~~OPERATIONS.~~OPERATIONS ~~Discontinued operations include~~primarily comprise our ~~Baker Hughes~~GE Capital Aviation Services (GECAS) business, discontinued in 2021, our mortgage portfolio in Poland, and ~~Transportation segments and certain~~other trailing assets and liabilities ~~from legacy financial services businesses.~~associated with prior dispositions. Results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods ~~presented.~~presented and the notes to the financial statements have been adjusted on a retrospective basis.

~~In September 2019, pursuant to~~GECAS/AerCap. On November 1, 2021, we completed the combination of our announced plan of an orderly separation of Baker Hughes over time, we sold a total of 144.1 million shares in Baker Hughes for $3,037 million in cash (net of certain deal related costs), which reduced our ownership interest in Baker Hughes from 50.2% to 36.8%GECAS business with AerCap Holdings N.V. (AerCap). ~~As a result, we have~~ We deconsolidated ~~our Baker Hughes segment and~~this business, reclassified its results to discontinued operations for all periods presented and recognized a non-cash after-tax loss of ~~$8,715~~$3,882 million ~~($8,238 million after-tax). The loss represents~~in discontinued operations for the sum of the realized loss on sale of the 144.1 million shares as well as the loss upon deconsolidation, which represents the difference between the carrying value and fair value of our remaining interest as of the transaction date.year ended December 31, 2021.

We elected to account for our remaining interest in Baker Hughes (comprising our 36.8% ownership interest and a promissory note receivable) at fair value. The initial fair value of this investment was $9,587 million based on the Baker Hughes opening share price of $23.53 as of the transaction date and the fair value of the promissory note receivable of $706 million. Our investment is recorded in Investment securities in our consolidated Statement of Financial Position and related earnings or loss from subsequent changes in fair value will be recognized in Other income in continuing operations in our consolidated Statement of Earnings (Loss). See Note 3 for further information.

We have continuing involvement with ~~Baker Hughes~~AerCap, primarily through our ~~remaining~~ownership interest, ongoing ~~purchases and~~ sales or leases of products and services, ~~as well as the~~and transition services that we provide to ~~Baker Hughes. They also participated in GE Capital's supply chain finance program up~~AerCap. For the year ended December 31, 2022, we had direct and indirect sales of $162 million to ~~the date of separation. In addition, in the fourth quarter of 2019, we formed an aeroderivative joint venture (JV) with Baker Hughes relating~~AerCap, primarily related to ~~their respective aeroderivative gas turbine products~~engine services and ~~services. The JV has total assets net of liabilities of $613 million and is currently consolidated by GE. Since the date of the transaction, we had~~ sales, and purchases of ~~products and services with Baker Hughes and affiliates of $312~~$174 million ~~and $105 million, respectively.~~from AerCap, primarily related to engine leases. We ~~have collected~~paid net cash of ~~$1,016~~$48 million ~~from Baker Hughes~~to AerCap related to ~~these activities, including $494 million of repayments on the promissory note. In addition, in the fourth quarter of 2019 we received a dividend of $68 million from Baker Hughes.~~this activity.

In February 2019, we completed the spin-off and subsequent merger of our Transportation business with Wabtec, a U.S. rail equipment manufacturer. In the transaction, our shareholders received shares of Wabtec common stock representing an approximate 24.3% ownership interest in Wabtec common stock. We received $2,827 million in cash (net of certain deal related costs) as well as shares of Wabtec common stock and Wabtec non-voting convertible preferred stock that, together, represent approximately 24.9% ownership interest in Wabtec. In addition, we are entitled to additional cash consideration up to $470 million for tax benefits that Wabtec realizes from the transaction. We reclassified our Transportation segment to discontinued operations in the first quarter of 2019.

As part of the transaction, we recorded a gain of $3,471 million ($2,508 million after-tax) in discontinued operations and a net after-tax decrease of $852 million in additional paid in capital in connection with the spin-off of approximately 49.4% of Transportation to our shareholders. The decrease in additional paid in capital was net of $940 million of taxes, including $860 million of current taxes (of which $693 million was related to U.S. federal taxes)Bank BPH. The fair value of our interest in Wabtec’s common and preferred shares was $3,513 million based on the opening share price of $73.45 at the date of the transaction and was recorded in Investment securities in our consolidated Statement of Financial Position.

GE~~2019 FORM 10-K~~ 75



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

Discontinued operations for our financial services businesses primarily relate to the GE Capital Exit Plan (our plan, announced on April 10, 2015, to reduce the size of our financial services businesses) and were previously reported in our Capital segment. These discontinued operations primarily comprise our mortgage portfolio in Poland ~~residual assets and liabilities~~(Bank BPH) comprises floating rate residential mortgages, 85% of which are indexed to or denominated in foreign currencies (primarily Swiss francs). At December 31, 2022, the total portfolio had a carrying value, net of reserves, of $1,199 million. The portfolio is recorded at the lower of cost or fair value, less cost to sell, which reflects market yields as well as estimates with respect to ongoing litigation in Poland related to ~~our exited U.S. mortgage business (WMC),~~foreign currency-denominated mortgages and ~~trailing liabilities associated with the sale of our GE Capital businesses.~~

In January 2019, we announced an agreement in principle with the United States to settle the investigation by the U.S. Department of Justice (DOJ) regarding potential violations of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) by WMC and GE Capital, and in April 2019, the parties entered into a definitive settlement agreement. Under the agreement, which concludes this investigation, GE, without admitting liability or wrongdoing, paid the United States a civil penalty of $1,500 million.

~~In June 2019, GE Capital recorded in Earnings (loss)~~other factors. Loss from discontinued operations ~~net~~included $720 million, $509 million and $121 million non-cash pre-tax charges for the years ended December 31, 2022, 2021 and 2020, respectively, reflecting estimates with respect to ongoing litigation as well as market yields. To ensure appropriate capital levels, we made capital contributions in cash of ~~taxes~~$530 million and $360 million into Bank BPH during the second quarter of 2022 and fourth quarter of 2021, respectively. Future changes in ~~our consolidated Statement of Earnings (Loss), $332 million of tax benefits~~the estimated legal liabilities or market yields could result in further losses and ~~$46 million of net interest benefits due~~capital contributions related to ~~a decrease~~these loans in ~~our balance of unrecognized tax benefits.~~future reporting periods beyond the amounts that we currently estimate. See Note 1524 for further information.


RESULTS OF DISCONTINUED OPERATIONS For the year ended December 31, 2022	GECAS		Bank BPH & Other		Total
Total revenues	$	—	$	—	$	—
Cost of equipment and services sold	—		—		—
Other income, costs and expenses	—		(808)		(808)

Earnings (loss) of discontinued operations before income taxes	—		(808)		(808)
Benefit (provision) for income taxes	—		(32)		(32)
Earnings (loss) of discontinued operations, net of taxes(a)	—		(841)		(841)

Gain (loss) on disposal before income taxes	(18)		75		58
Benefit (provision) for income taxes	139		—		139
Gain (loss) on disposal, net of taxes	121		75		196

Earnings (loss) from discontinued operations, net of taxes	$	121	$	(765)	$	(644)

2022 FORM 10-K 53

RESULTS OF DISCONTINUED OPERATIONS
For the year ended December 31, 2019 (In millions)
Baker Hughes
Transportation and Other
GE Capital
Total

Sales of goods and services $ 16,047
$ 550
$ —
$ 16,598
GE Capital revenues and other income (loss) —
—
33
33
Cost of goods and services sold (13,317 ) (478 ) —
(13,795 )
Other costs and expenses (2,390 ) (19 ) (240 ) (2,650 )
—

Earnings (loss) of discontinued operations before income taxes 340
53
(207 ) 186
Benefit (provision) for income taxes(b) (176 ) (15 ) 344
153
Earnings (loss) of discontinued operations, net of taxes(a) 165
39
136
339

Gain (loss) on disposal before income taxes (8,715 ) 3,471
61
(5,183 )
Benefit (provision) for income taxes(b) 477
(963 ) (5 ) (491 )
Gain (loss) on disposal, net of taxes (8,238 ) 2,508
56
(5,675 )

—
Earnings (loss) from discontinued operations, net of taxes $ (8,074 ) $ 2,547
$ 192
$ (5,335 )


For the year ended December 31, 2021	GECAS		Bank BPH & Other		Total
Total revenues	$	—	$	—	$	—
Cost of equipment and services sold	(398)		—		(398)
Other income, costs and expenses	1,992		(599)		1,393

Earnings (loss) of discontinued operations before income taxes	1,594		(599)		995
Benefit (provision) for income taxes	(258)		(77)		(335)
Earnings (loss) of discontinued operations, net of taxes(a)	1,336		(676)		660

Gain (loss) on disposal before income taxes	(3,312)		65		(3,246)
Benefit (provision) for income taxes	(570)		(38)		(608)
Gain (loss) on disposal, net of taxes	(3,882)		27		(3,855)

Earnings (loss) from discontinued operations, net of taxes	$	(2,546)	$	(648)	$	(3,195)

For the year ended December 31, 2018 (In millions)

Sales of goods and services $ 22,859
$ 3,898
$ —
$ 26,757
GE Capital revenues and other income (loss) —
—
(1,347 ) (1,347 )
Cost of goods and services sold (19,198 ) (2,809 ) —
(22,007 )
Other costs and expenses (3,346 ) (607 ) (407 ) (4,360 )

Earnings (loss) of discontinued operations before income taxes 315
482
(1,755 ) (958 )
Benefit (provision) for income taxes(b) (347 ) (143 ) 82
(408 )
Earnings (loss) of discontinued operations, net of taxes(a) (33 ) 339
(1,673 ) (1,366 )

Gain (loss) on disposal before income taxes —
—
4
4
Benefit (provision) for income taxes(b) —
—
(1 ) (1 )
Gain (loss) on disposal, net of taxes —
—
3
3

Earnings (loss) from discontinued operations, net of taxes $ (33 ) $ 339
$ (1,670 ) $ (1,363 )

For the year ended December 31, 2017 (In millions)

Sales of goods and services $ 17,180
$ 3,935
$ —
$ 21,115
GE Capital revenues and other income (loss) —
—
174
174
Cost of goods and services sold (14,450 ) (2,990 ) —
(17,441 )
Other costs and expenses (2,993 ) (483 ) (910 ) (4,386 )

Earnings (loss) of discontinued operations before income taxes (264 ) 461
(735 ) (538 )
Benefit (provision) for income taxes(b) (59 ) (138 ) 295
97
Earnings (loss) of discontinued operations, net of taxes(a) (323 ) 323
(440 ) (441 )

Gain (loss) on disposal before income taxes —
—
306
306
Benefit (provision) for income taxes(b) —
—
(178 ) (178 )
Gain (loss) on disposal, net of taxes —
—
128
128

Earnings (loss) from discontinued operations, net of taxes $ (323 ) $ 323
$ (312 ) $ (312 )


For the year ended December 31, 2020
Total revenues	$	—	$	—	$	—
Cost of equipment and services sold	(2,555)		—		(2,555)
Other income, costs and expenses	1,781		(195)		1,586

Earnings (loss) of discontinued operations before income taxes	(773)		(195)		(968)
Benefit (provision) for income taxes	(13)		101		89
Earnings (loss) of discontinued operations, net of taxes(a)	(786)		(93)		(879)

Gain (loss) on disposal before income taxes	—		(31)		(31)
Benefit (provision) for income taxes	—		(1)		(1)
Gain (loss) on disposal, net of taxes	—		(32)		(32)

Earnings (loss) from discontinued operations, net of taxes	$	(786)	$	(125)	$	(911)

(a) Earnings (loss) of discontinued operations ~~attributable to the Company after income taxes was $279 million, $(1,367)~~from GECAS operations included zero, $359 million and ~~$(360)~~$2,545 million of depreciation and amortization for the years ended December 31, ~~2019, 2018~~2022, 2021 and ~~2017,~~2020, respectively. GECAS depreciation and amortization ceased on March 10, 2021.

(b) Total tax benefit (provision) for discontinued operations and disposals included current tax benefit (provision) of $1,260 million, $(508) million, and $(704) million, including current U.S. Federal tax benefit (provision) of $1,252 million, $156 million and $(313) million, and deferred tax benefit (provision) of $(1,599) million, $99 million and $624 million for the years ended December 31, 2019, 2018, and 2017, respectively.

GE~~2019 FORM 10-K~~ 76



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

December 31 (In millions)
2019
2018

Cash, cash equivalents and restricted cash $ 638
$ 4,424
Investment securities 202
522
Current receivables 81
6,258
Inventories —
5,419
Financing receivables held for sale (Polish mortgage portfolio) 2,485
2,745
Property, plant and equipment - net —
7,139
Goodwill and intangible assets - net —
31,622
Deferred income taxes 264
1,174
All other assets 439
4,550
Assets of discontinued operations(a) $ 4,109
$ 63,853

Accounts payable & Progress collections and deferred income $ 40
$ 6,806
All other liabilities 163
12,476
Liabilities of discontinued operations(b) $ 203
$ 19,281


ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS	December 31, 2022		December 31, 2021
Cash, cash equivalents and restricted cash	$	1,176	$	736
Financing receivables held for sale (Polish mortgage portfolio)	1,199		1,799
Property, plant, and equipment - net	73		88
All other assets	444		554
Assets of discontinued operations	$	2,892	$	3,177

Accounts payable and all other liabilities	$	1,137	$	887
Liabilities of discontinued operations	$	1,137	$	887

~~(a)~~ ~~Assets of discontinued operations included $54,596 million and $4,573 million related to our Baker Hughes and Transportation businesses, respectively as of December 31, 2018.~~

~~(b) Liabilities of discontinued operations included $15,535 million and~~ ~~$1,871 million related to our Baker Hughes and Transportation businesses, respectively as of December 31, 2018.~~

Included within All other liabilities of discontinued operations at December 31, 2019 and December 31, 2018 are intercompany tax receivables in the amount of $839 million and $1,141 million, respectively, primarily related to the financial services businesses that were part of the GE Capital Exit Plan, which are offset within All other liabilities of consolidated GE.

NOTE 3. INVESTMENT ~~SECURITIES~~SECURITIES.

All of our debt securities are classified as available-for-sale and substantially all are investment-grade ~~debt securities~~ supporting obligations to annuitants and policyholders in our run-off insurance operations. ~~Changes~~We manage the investments in our run-off insurance operations under strict investment guidelines, including limitations on asset class concentration, single issuer exposures, asset-liability duration variances, and other factors to meet credit quality, yield, liquidity and diversification requirements associated with servicing our insurance liabilities under reasonable circumstances. This process includes consideration of various asset allocation strategies and incorporates information from several external investment advisors to improve our investment yield subject to maintaining our ability to satisfy insurance liabilities when due, as well as considering our risk-based capital requirements, regulatory constraints, and tolerance for surplus volatility. Asset allocation planning is a dynamic process that considers changes in market conditions, risk appetite, liquidity needs and other factors, which are reviewed on a periodic basis by our investment team. On November 1, 2021, we received 111.5 million ordinary shares of AerCap (approximately 46% ownership interest) and an AerCap senior note as partial consideration in conjunction with the GECAS transaction, for which we have adopted the fair value ofoption. Our investment in Baker Hughes (BKR) comprises 7.0 million shares (approximately 1% ownership interest) at December 31, 2022. Both our ~~debt securities~~AerCap and BKR investments are recorded ~~to other comprehensive income.~~as Equity securities with readily determinable fair ~~values~~values. Investment securities held within insurance entities are ~~included within this caption~~classified as non-current as they support the long-duration insurance liabilities.

2022 FORM 10-K 54


	December 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)	$	—	$	—	$	—	$	7,403	$	—	$	—	$	—	$	8,287
Equity (Baker Hughes)	—		—		—		207		—		—		—		4,010
Current investment securities	$	—	$	—	$	—	$	7,609	$	—	$	—	$	—	$	12,297
Debt
U.S. corporate	$	26,921	$	675	$	(2,164)	$	25,432	$	25,182	$	5,502	$	(33)	$	30,652
Non-U.S. corporate	2,548		18		(300)		2,266		2,361		343		(4)		2,701
State and municipal	2,898		66		(241)		2,722		2,639		573		(6)		3,205
Mortgage and asset-backed	4,442		21		(290)		4,173		3,950		117		(47)		4,019
Government and agencies	1,172		2		(147)		1,026		1,086		104		(2)		1,188
Other equity	429		—		—		429		443		—		—		443
Non-current investment securities	$	38,410	$	781	$	(3,143)	$	36,048	$	35,662	$	6,639	$	(92)	$	42,209

The amortized cost of debt securities excludes accrued interest of $457 million and ~~changes~~$415 million at December 31, 2022 and 2021, respectively, which is reported in ~~their fair value are recorded in earnings.~~All other current assets.

2019 2018
December 31 (In millions) Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
fair value

Amortized
cost
Gross
unrealized
gains
Gross
unrealized
losses
Estimated
fair value

Debt

U.S. corporate $ 23,037
$ 4,636
$ (11 ) $ 27,661

$ 21,306
$ 2,257
$ (357 ) $ 23,206
Non-U.S. corporate 2,161
260
(1 ) 2,420

1,906
53
(76 ) 1,883
State and municipal 3,086
598
(15 ) 3,669

3,320
367
(54 ) 3,633
Mortgage and asset-backed 3,117
116
(4 ) 3,229

3,325
51
(54 ) 3,322
Government and agencies 1,391
126
—
1,516

1,314
62
(20 ) 1,357
Equity 10,025
—
—
10,025

107
—
—
107
Total $ 42,816
$ 5,736
$ (31 ) $ 48,521

$ 31,277
$ 2,792
$ (561 ) $ 33,508

The estimated fair ~~values~~value of investment securities at December 31, ~~2019 increased~~2022 decreased since December 31, ~~2018,~~2021, primarily due to ~~decreases in~~higher market yields and widening credit spreads, BKR share sales, and the ~~classification of~~mark-to-market effect on our equity interest in AerCap, partially offset by new insurance investments, including related to the recapture transaction, and the mark-to-market effect on our remaining equity interest in ~~Baker Hughes within investment securities. We elected to account~~BKR. See Note 12 for ~~our remaining Baker Hughes interest and a promissory note receivable at fair value. At December 31, 2019,~~further information about the recapture transaction.

Total estimated fair value of debt securities in an unrealized loss position were $21,482 million and $3,446 million, of which $3,275 million and $644 million had gross unrealized losses of $(835) million and $(42) million and had been in a loss position for 12 months or more at December 31, 2022 and 2021, respectively. Gross unrealized losses of $(3,143) million at December 31, 2022 included $(2,164) million related to U.S. corporate securities, $(182) million related to commercial mortgage-backed securities (CMBS) collateralized by pools of commercial mortgage loans on real estate, and $(106) million related to Asset-backed securities. The majority of our ~~interest~~U.S. corporate securities' gross unrealized losses were in ~~Baker Hughes was $9,888 million.~~

the consumer, electric, technology, insurance and energy industries. The majority of our CMBS and Asset-backed securities in an unrealized loss position have received investment-grade credit ratings from the major rating agencies. For our securities in an unrealized loss position, the losses are not indicative of credit losses, we currently do not intend to sell the investments, and it is not likely that we will be required to sell the investments before recovery of their amortized cost basis.

Net unrealized gains (losses) for equity securities with readily determinable fair values, which are recorded in Other income (loss) within continuing operations, were ~~$800~~$(65) million, ~~(including a gain of $793 million related to our interest in Baker Hughes), $(8)~~$1,656 million and ~~an insignificant amount~~$(1,670) million for the years ended December 31, ~~2019, 2018~~2022, 2021 and ~~2017,~~2020, respectively.

Proceeds from debt and equity securities sales, early redemptions by issuers and principal payments on the ~~Baker Hughes~~BKR promissory note totaled ~~$7,967~~$7,268 million, ~~$3,222~~$6,666 million and ~~$3,240~~$5,060 million for the years ended December 31, ~~2019, 2018,~~2022, 2021 and ~~2017,~~2020, respectively. Gross realized gains on ~~investment~~debt securities were ~~$115~~$34 million, ~~$249~~$69 million and ~~$243 million, and gross realized losses and impairments were $(203) million, $(41) million and $(24)~~$173 million for the years ended ~~2019, 2018~~December 31, 2022, 2021 and ~~2017,~~2020, respectively. ~~These~~Gross realized losses ~~included $(132)~~and impairments on debt securities were $(42) million, ~~related to the Wabtec sale as of December 31, 2019.~~

~~Gross unrealized losses of~~ $(11) million and ~~$(20)~~$(68) million ~~are~~for the years ended December 31, 2022, 2021 and 2020, respectively.

Cash flows associated with ~~debt~~purchases, dispositions and maturities of insurance investment securities with a fair value of $724 million and $274 million that have been in a loss position for less than 12 months and 12 months or more, respectively, at December 31, 2019. Gross unrealized losses of $(310) million and $(251) million are associated with debt securities with a fair value of $7,048 million, and $3,856 million that have been in a loss position for less than 12 months and 12 months or more, respectively, at December 31, 2018.as follows:


For the years ended December 31	2022		2021
Purchases of investment securities	$	(4,046)	$	(4,286)
Dispositions and maturities of investment securities	3,170		2,997
Net (purchases) dispositions of insurance investment securities	$	(876)	$	(1,290)

GE
~~2019 FORM 10-K~~ 77



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

Contractual maturities of ~~investments in available-for-sale~~our debt securities (excluding mortgage and asset-backed securities) at December 31, ~~2019~~2022 are as follows:

(In millions)
Amortized
cost

Estimated
fair value

Due
Within one year $ 514
$ 527
After one year through five years 2,615
2,766
After five years through ten years 6,614
7,599
After ten years 19,932
24,374


	Amortized cost		Estimated fair value
Within one year	$	413	$	409
After one year through five years	4,287		4,247
After five years through ten years	5,910		5,869
After ten years	22,928		20,920

We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations.

2022 FORM 10-K 55

In addition to the equity securities described above, we hold ~~$517~~$731 million and ~~$542~~$441 million of equity securities without readily determinable fair ~~value~~values at December 31, ~~2019~~2022 and ~~December 31, 2018,~~2021, respectively, that are classified inwithin non-current All other assets in our ~~consolidated~~ Statement of Financial Position. ~~We initially recognize these assets at cost~~Fair value adjustments, including impairments, recorded in earnings were $(11) million, $46 million and ~~have recorded insignificant fair value increases, net of impairment, to earnings~~$(141) million for the years ended December 31, ~~2019~~2022, 2021 and ~~2018, respectively~~2020, respectively.

Our run-off insurance operations have approximately $800 million of assets held by states or other regulatory bodies in statutorily required deposit accounts, and ~~cumulatively, based~~approximately $29,700 million of assets held in trust accounts, including $2,300 million to be added in the first quarter of 2023, associated with reinsurance contracts and reinsurance security trust agreements in place between either Employers Reassurance Corporation (ERAC) or Union Fidelity Life Insurance Company (UFLIC) as the reinsuring entity and a number of ceding insurers. Assets in these trusts are held by an independent trustee for the benefit of the ceding insurer, and are subject to various investment guidelines as set forth in the respective reinsurance contracts and trust agreements. Some of these trust agreements may allow a ceding company to withdraw trust assets from the trust and hold these assets on ~~observable transactions.~~ its balance sheet, in an account under its control for the benefit of ERAC or UFLIC which might allow the ceding company to exercise investment control over such assets.

NOTE 4. CURRENT AND LONG-TERM RECEIVABLES

Consolidated
GE
December 31 (In millions) 2019
2018

2019
2018

Power $ 4,689
$ 4,652

$ 3,289
$ 2,270
Renewable Energy 2,306
1,938

1,749
1,475
Aviation(a) 3,249
1,483

2,867
1,145
Healthcare 2,105
2,431

1,379
1,260
Corporate 246
238

223
205
Customer receivables 12,594
10,742

9,507
6,355
Sundry receivables 5,049
4,573

5,247
4,569
Allowance for losses (874 ) (670 )
(872 ) (662 )
Total current receivables $ 16,769
$ 14,645

$ 13,883
$ 10,262


CURRENT RECEIVABLES
December 31	2022		2021






Customer receivables	$	14,916	$	13,079
Revenue sharing program receivables(a)	1,326		1,166
Non-income based tax receivables	1,320		1,222
Supplier advances	711		596
Receivables from disposed businesses	115		148
Other sundry receivables	447		483

Allowance for credit losses(b)	(859)		(1,074)
Total current receivables	$	17,976	$	15,620

(a) ~~Increase~~Revenue sharing program receivables in ~~Aviation segment is~~Aerospace are amounts due from third parties who participate in engine programs by developing and supplying certain engine components through the life of the program. The participants share in program revenues, receive a share of customer progress payments and share costs related to discounts and warranties.

(b) Allowance for credit losses decreased primarily ~~driven by receivables from Boeing~~ due to ~~737 MAX temporary fleet grounding, with balance~~write-offs, recoveries and foreign currency impact, partially offset by net new provisions of ~~$1,397 million as~~$48 million.


December 31	2022		2021
Aerospace	$	7,784	$	5,812
Renewable Energy	2,415		2,218
Power	4,229		4,092
HealthCare	3,354		3,255
Corporate	195		244
Total current receivables	$	17,976	$	15,620

Sales of ~~December 31, 2019.~~

customer receivables.~~Current sundry~~ Previously, GE businesses sold customer receivables ~~include supplier advances, revenue sharing~~to our Working Capital Solutions (WCS) business. These programs were discontinued in 2021. Separately, the Company from time to time sells current or long-term receivables ~~other non-income based tax receivables, certain intercompany balances that eliminate upon consolidation and deferred purchase price. The deferred purchase price represents our retained~~to third parties in response to customer-sponsored requests or programs, to facilitate sales, or for risk ~~with respect~~mitigation purposes. Activity related to current customer receivables sold by GE businesses is as follows:


	2022		2021
	Third Parties		WCS		Third Parties
Balance at January 1	$	161	$	3,618	$	2,992
GE businesses sales to WCS	—		13,773		—
GE businesses sales to third parties(a)	2,061		—		1,415
WCS sales to third parties	—		(10,816)		10,816
Collections and other	(2,163)		(6,676)		(15,062)
Reclassification from long-term customer receivables	41		100		—
Balance at December 31	$	100	$	—	$	161

(a) The Company sold current customer receivables to third parties ~~through one of~~related primarily to our participation in customer-sponsored supply chain finance programs. Within these programs, primarily in Renewable Energy and Aerospace, the ~~receivable facilities.~~Company has no continuing involvement, fees associated with the transferred receivables are covered by the customer and cash is received at the original invoice due date.

2022 FORM 10-K 56


LONG-TERM RECEIVABLES

December 31	2022		2021
Long-term customer receivables(a)	$	535	$	521
Financing receivables	386		592
Supplier advances	277		309
Non-income based tax receivables	241		245
Receivables from disposed businesses	51		150
Sundry receivables	406		440

Allowance for credit losses	(223)		(160)
Total long-term receivables	$	1,672	$	2,097

(a) The ~~balance of the deferred purchase price held by GE Capital at December 31, 2019 and 2018, was $421~~Company sold $86 million and $~~468~~$53 million ~~respectively.~~

~~Sales~~ of ~~GE current customer receivables.GE sales of~~long-term customer receivables to ~~GE Capital or~~ third parties ~~are made~~for the years ended December 31, 2022 and 2021, respectively, primarily in our Gas Power business for risk mitigation purposes.

NOTE 5. INVENTORIES, INCLUDING DEFERRED INVENTORY COSTS


December 31	2022		2021
Raw materials and work in process	$	10,356	$	8,710
Finished goods	5,030		4,927
Deferred inventory costs(a)	2,017		2,210
Inventories, including deferred inventory costs	$	17,403	$	15,847

(a) Represents cost deferral for shipped goods (such as components for wind turbine assemblies within our Renewable Energy segment) and labor and overhead costs on ~~arm's length terms~~time and ~~any discount~~material service contracts (primarily originating in Power and Aerospace) and other costs for which the criteria for revenue recognition has not yet been met.

NOTE 6. PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES


	Depreciable lives	Original Cost				Net Carrying Value
December 31	(in years)	2022		2021		2022		2021
Land and improvements	8	$	542	$	585	$	530	$	576
Buildings, structures and related equipment	8 - 40	7,913		8,311		3,483		3,728
Machinery and equipment	4 - 20	21,119		21,036		6,913		7,356
Leasehold costs and manufacturing plant under construction	1 - 10	2,059		1,971		1,415		1,343
ROU operating lease assets						2,137		2,606
Property, plant and equipment - net		$	31,633	$	31,904	$	14,478	$	15,609

In the first quarter of 2022, we signed a non-binding memorandum of understanding for GE Steam Power to sell a portion of its business to EDF, which resulted in a reclassification of that business to held for sale. As a result, we recognized a non-cash pre-tax impairment charge of $59 million related to ~~time value of money is recognized~~property, plant and equipment at our remaining Steam business within our Power segment. This charge was recorded by ~~GE when the customer receivables are sold. As of December 31, 2019~~Corporate in Selling, general, and 2018, GE sold approximately 51% and 66%, respectively, of its gross customer receivables to GE Capital or third parties. The performance of sold current receivables is similar to the performance of our other GE current receivables; delinquencies are not expected to be significant. Any difference between the carrying value of receivables sold and total cash collected is recognized as financing costs by GE in Interest and other financial chargesadministrative expenses in our consolidated Statement of Earnings (Loss). ~~Costs of $515 million and $616 million were recognized during the years ended December 31, 2019 and 2018, respectively.~~

GE~~2019 FORM 10-K~~ 78



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~Activity related to customer receivables sold by GE is as follows:~~

(In millions) GE Capital Third Parties GE Capital Third Parties
2019 2018

Balance at January 1 $ 4,386
$ 7,880
$ 9,656
$ 5,710
GE sales to GE Capital 40,988
—
50,318
—
GE sales to third parties —
6,370
—
5,481
GE Capital sales to third parties (28,073 ) 28,073
(30,904 ) 30,904
Collections and other (14,621 ) (35,567 ) (25,414 ) (34,216 )
Reclassification from long-term customer receivables 407
—
731
—
Balance at December 31 $ 3,087
(a) $ 6,757
$ 4,386
(a) $ 7,880

(a) At December 31, 2019 and 2018, $539 million and $1,380 million, respectively, of the current receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE cash flows from operating activities (CFOA) of claims by GE Capital on receivables sold with recourse has been insignificant for the years ended December 31, 2019 and 2018.

When GE sells customer receivables to GE Capital or third parties it accelerates the receipt of cash that would otherwise have been collected from customers. In any given period, the amount of cash received from sales of customer receivables compared to the cash GE would have otherwise collected had those customer receivables not been sold represents the cash generated or used in the period relating to this activity. Sales to GE Capital impact GE CFOA, while sales to third parties impact both GE and Consolidated CFOA. The impact of selling fewer customer receivables to GE Capital and those subsequently sold by GE Capital to third parties, including the effect of business dispositions, decreased GE’s CFOA by $2,099 million, $3,401 million and $138 million in the years ended December 31, 2019, 2018 and 2017, respectively.

~~LONG-TERM RECEIVABLES.~~ In certain circumstances, GE provides customers, primarily within our Power, Renewable Energy and Aviation businesses, with extended payment terms for the purchase of new equipment, purchases of upgrades and spare parts for our long-term service agreements. These long-term customer receivables are initially recorded at present value and have an average remaining duration of approximately three years and are included in All other assets in the consolidated Statement of Financial Position.

Consolidated GE
December 31 (In millions)
2019
2018

2019
2018

Long-term customer receivables $ 906
$ 1,442

$ 506
$ 559
Long-term sundry receivables 1,504
1,180

1,834
1,519
Allowance for losses (128 ) (145 )
(128 ) (145 )
Total long-term receivables $ 2,282
$ 2,477

$ 2,212
$ 1,933

Long-term sundry receivables include supplier advances, revenue sharing programs receivables, other non-income based tax receivables and certain intercompany balances that eliminate upon consolidation.

~~Sales of GE long-term customer receivables.~~Through the second quarter of 2018, sales of long-term customer receivables were primarily made to GE Capital, while subsequently, GE has sold an insignificant amount to third parties to transfer economic risk during both the years ended December 31, 2019 and 2018. Activity related to long-term customer receivables purchased by GE Capital is as follows:

GE Capital December 31 (In millions)
2019
2018

Balance at January 1 $ 883
$ 1,947
GE sales to GE Capital —
134
Sales, collections, accretion and other (75 ) (468 )
Reclassification to current customer receivables (407 ) (731 )
Balance at December 31(a) $ 400
$ 883

(a) At December 31, 2019 and 2018, $312 million and $628 million, respectively, of long-term customer receivables purchased and retained by GE Capital, had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE CFOA of claims by GE Capital on receivables sold with recourse have been insignificant for the years ended December 31, 2019 and 2018.

Similar to sales of current customer receivables, sales of long-term customer receivables can result in cash generation or use in our Statements of Cash Flows. The impact from the sale of long-term customer receivables to GE Capital, including those subsequently sold by GE Capital to third parties, decreased GE’s CFOA by $585 million, $878 million and increased GE's CFOA by $250 million in the years ended December 31, 2019, 2018 and 2017, respectively.

GE~~2019 FORM 10-K~~ 79



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~UNCONSOLIDATED RECEIVABLES FACILITIES~~. GE Capital has 2 revolving receivables facilities, with a total program size of $4,300 million, under which customer receivables purchased from GE are sold to third parties. In one of the facilities, upon the sale of receivables, we receive proceeds of cash and deferred purchase price and the Company’s remaining risk with respect to the sold receivables is limited to the balance of the deferred purchase price. In December 2018, we renegotiated the terms of this receivables facility. Effective January 2019, sales of receivables to the third-party purchasers and creation of deferred purchase price occur monthly rather than daily. As a result, both non-cash increases to the deferred purchase price and cash payments received on the deferred purchase price declined in 2019. In the other facility, upon the sale of receivables, we receive proceeds of cash only and therefore the Company has no remaining risk with respect to the sold receivables. Activity related to these facilities is included in GE Capital sales to third parties line in the sales of GE current customer receivables table above and is as follows:

For the years ended December 31 (In millions)
2019

2018

Customer receivables sold to receivables facilities $ 21,695

$ 23,984
Total cash purchase price for customer receivables 21,202

18,040
Cash collections re-invested to purchase customer receivables 18,012

15,095

Non-cash increases to deferred purchase price $ 257

$ 5,272
Cash payments received on deferred purchase price 303

5,192

~~CONSOLIDATED SECURITIZATION ENTITIES~~. GE Capital consolidates 3 VIEs that purchased customer receivables and long-term customer receivables from GE. At December 31, 2019 and 2018, these VIEs held current customer receivables of $2,080 million and $2,141 million and long-term customer receivables of $375 million and $678 million, respectively that were funded through the issuance of non-recourse debt to third parties. At December 31, 2019 and 2018, the outstanding debt under their respective debt facilities was $1,655 million and $1,875 million, respectively.

~~NOTE 5. FINANCING RECEIVABLES AND ALLOWANCES~~

Consolidated GE Capital
December 31 (In millions)
2019
2018
2019
2018

Loans, net of deferred income $ 1,098
$ 5,118

$ 4,927
$ 10,834
Investment in financing leases, net of deferred income 2,070
2,639

2,070
2,822

3,168
7,757

6,996
13,656
Allowance for losses (33 ) (58 )
(17 ) (28 )
Financing receivables – net $ 3,134
$ 7,699

$ 6,979
$ 13,628

~~Consolidated finance lease income was $173 million, $275 million and $274 million for the years ended December 31, 2019, 2018 and 2017, respectively.~~

NET INVESTMENT IN FINANCING LEASES Total financing leases
Direct financing and sales type leases(a)
Leveraged leases
December 31 (In millions)
2019
2018
2019
2018
2019
2018

Total minimum lease payments receivable $ 1,628
$ 2,719
$ 799
$ 1,421
$ 829
$ 1,298
Less principal and interest on third-party non-recourse debt (216 ) (474 ) —
—
(216 ) (474 )
Net minimum lease payments receivable 1,412
2,245
799
1,421
613
824
Less deferred income (178 ) (329 ) (139 ) (286 ) (39 ) (43 )
Discounted lease receivable 1,234
1,916
660
1,135
574
781
Estimated unguaranteed residual value of leased assets, net of deferred income 835
906
412
420
423
486
Investment in financing leases, net of deferred income(b) $ 2,070
$ 2,822
$ 1,072
$ 1,556
$ 997
$ 1,266

~~(a) Included $506 million and $399 million investment in sales type leases at December 31, 2019 and 2018, respectively.~~

~~(b) See Note 15 for deferred tax amounts related to financing leases.~~

CONTRACTUAL MATURITIES, DUE IN
(In millions)
2020
2021
2022
2023
2024
Thereafter
Total

Total loans $ 3,832
$ 511
$ 238
$ 113
$ 93
$ 140
$ 4,927
Net minimum lease payments receivable 303
270
194
281
198
166
1,412

~~We expect actual maturities to differ from contractual maturities, primarily as a result of prepayments.~~

GE~~2019 FORM 10-K~~ 80



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

We manage our GE Capital financing receivables portfolio using delinquency and nonaccrual data as key performance indicators. At December 31, 2019, 4.2%, 2.9% and 6.1% of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively, with the vast majority of nonaccrual financing receivables secured by collateral. At December 31, 2018, 2.4%, 1.8% and 0.9% of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively.

GE Capital financing receivables that comprise receivables purchased from GE are reclassified to either Current receivables or All other assets in the consolidated Statement of Financial Position. To the extent these receivables are purchased with full or limited recourse, they are excluded from the delinquency and nonaccrual data above. See Note 4 for further information.

~~NOTE 6. INVENTORIES~~

December 31 (In millions)
2019
2018

Raw materials and work in process $ 8,771
$ 8,057
Finished goods 5,333
5,746
Total inventories $ 14,104
$ 13,803

~~NOTE 7. PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES~~

Depreciable lives-new Original Cost
Net Carrying Value
December 31 (Dollars in millions)
(in years) 2019
2018

2019
2018

Land and improvements 8 $ 608
$ 700

$ 596
$ 673
Buildings, structures and related equipment 8-40 7,824
8,455

3,875
4,083
Machinery and equipment 4-20 20,082
19,425

8,360
8,048
Leasehold costs and manufacturing plant under construction 1-10 2,165
2,646

1,539
2,024
GE
$ 30,680
$ 31,225

$ 14,370
$ 14,828

Land and improvements, buildings, structures and related equipment 1-40 149
$ 153

29
$ 32
Equipment leased to others (ELTO)

Aircraft 15-20 35,507
36,476

21,414
22,201
Engines 15-20 4,113
3,234

3,283
2,489
Helicopters 15-20 5,474
5,230

4,709
4,660
All other 15-35 237
209

214
128
GE Capital(a)
$ 45,480
$ 45,302

$ 29,649
$ 29,510

Eliminations
(972 ) (909 )
(729 ) (728 )
Total
$ 75,187
$ 75,618

$ 43,290
$ 43,611

~~(a) Included $1,539 million and $1,397 million of original cost of assets leased to GE with accumulated amortization of $(251) million and $(241) million at December 31, 2019 and 2018, respectively.~~

Consolidated depreciation and amortization related to property, plant and equipment was $4,026 million, $4,419 million and $4,332 million for the years ended December 31, 2019, 2018 and 2017, respectively. Amortization of GE Capital ELTO was $2,019 million, $2,089 million and $2,190 million for the years ended December 31, 2019, 2018 and 2017, respectively.

~~Noncancellable future rentals due from customers for equipment on operating leases at December 31, 2019, are as follows:~~

(In millions) 2020
2021
2022
2023
2024
Thereafter
Total

$ 2,982
$ 2,625
$ 2,258
$ 1,820
$ 1,647
$ 5,652
$ 16,985

Operating lease income on our ELTO was $3,804 million, $4,075 million, and $4,144 million for the years ended December 31, 2019, 2018, and 2017, respectively, and comprises fixed lease income of $3,045 million, $3,243 million and $3,395 million and variable lease income of $759 million, $832 million and $748 million, respectively.

~~Operating~~ Lease ~~Assets and~~ Liabilities. Our ~~ROU assets and~~consolidated operating lease liabilities, ~~for operating leases were $2,896~~included in All other liabilities in our Statement of Financial Position, was $2,393 million and ~~$3,162~~$2,848 million, ~~respectively,~~ as of December 31, ~~2019.~~2022 and 2021, respectively. Substantially all of our operating leases have remaining lease terms of 1211 years or less, some of which may include options to extend.

OPERATING LEASE EXPENSE (In millions)
2019
2018
2017

Long-term (fixed) $ 834
$ 966
$ 1,003
Long-term (variable) 136
177
231
Short-term 206
133
131
Total operating lease expense $ 1,176
$ 1,276
$ 1,365


OPERATING LEASE EXPENSE	2022		2021		2020
Long-term (fixed)	$	755	$	770	$	827
Long-term (variable)	147		119		143
Short-term	153		192		206
Total operating lease expense	$	1,055	$	1,081	$	1,176

GE~~2019 FORM 10-K~~ 81



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

MATURITY OF LEASE LIABILITIES (In millions)
2020
2021
2022
2023
2024
Thereafter
Total

Undiscounted lease payments $ 766
$ 655
$ 561
$ 465
$ 375
$ 914
$ 3,737
Less: imputed interest (575 )
Total lease liability as of December 31, 2019 $ 3,162


MATURITY OF LEASE LIABILITIES	2023		2024		2025		2026		2027		Thereafter		Total
Undiscounted lease payments	$	687	$	567	$	397	$	291	$	206	$	603	$	2,751
Less: imputed interest													(357)
Total lease liability as of December 31, 2022													$	2,393

SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES (Dollars in millions)

Operating cash flows used for operating leases for the year ended December 31, 2019 $ 888
Right-of-use assets obtained in exchange for new lease liabilities for the year ended December 31, 2019 $ 746
Weighted-average remaining lease term at December 31, 2019 6.9 years
Weighted-average discount rate at December 31, 2019 4.9 %


SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES	2022			2021			2020
Operating cash flows used for operating leases	$	790		$	834		$	835
Right-of-use assets obtained in exchange for new lease liabilities	526			603			594
Weighted-average remaining lease term	6.2 years			7.2 years			6.7 years
Weighted-average discount rate	3.8		%	4.0		%	4.6		%

2022 FORM 10-K 57

NOTE 8.7. ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS

ACQUISITIONS. On December 21, 2021 our HealthCare business acquired BK Medical, a leader in surgical ultrasound imaging and guidance technology, for $1,455 million. The final purchase price allocation resulted in goodwill of $997 million, amortizable intangible assets of $398 million and indefinite-lived intangible assets of $23 million.

CHANGES IN GOODWILL BALANCES

2018 2019
(In millions) Balance at
December 31, 2017
Dispositions and
classifications
to held for sale
Impairments
Currency exchange and other
Balance at
December 31, 2018
Dispositions and classifications to held for sale
Impairments
Currency exchange and other
Balance at
December 31, 2019

Power $ 20,855
$ (1,903 ) $ (18,443 ) $ (369 ) $ 139
$ —
$ —
$ 6
$ 145
Renewable Energy 7,626
(3 ) (2,859 ) (35 ) 4,730
—
(1,486 ) 46
3,290
Aviation 10,008
(12 ) —
(158 ) 9,839
—
—
20
9,859
Healthcare 17,306
(21 ) —
(58 ) 17,226
(5,558 ) —
59
11,728
Capital(a) 984
—
—
(80 ) 904
(39 ) —
(26 ) 839
Corporate(b) 2,042
(81 ) (833 ) 9
1,136
—
—
(262 ) 873
Total $ 58,821
$ (2,020 ) $ (22,136 ) $ (691 ) $ 33,974
$ (5,597 ) $ (1,486 ) $ (157 ) $ 26,734

~~(a) Capital balance at December 31, 2019 is our GE Capital Aviation Services (GECAS) business.~~


CHANGES IN GOODWILL BALANCES

	Balance at December 31, 2020		Acquisitions		Currency exchange and other		Balance at December 31, 2021		Dispositions		Currency exchange and other		Balance at December 31, 2022
Aerospace	$	9,247	$	—	$	(234)	$	9,013	$	(6)	$	(171)	$	8,835
Renewable Energy	3,401		—		(169)		3,231		—		(30)		3,201
Power	146		—		(1)		145		—		(1)		144
HealthCare	11,855		1,064		(40)		12,879		—		(80)		12,799
Corporate(a)	876		43		(4)		914		—		(96)		818
Total	$	25,524	$	1,106	$	(448)	$	26,182	$	(6)	$	(378)	$	25,798

~~(b)~~(a) Corporate balance at December 31, ~~2019 is~~2022 and 2021 comprises our Digital business.

Goodwill balances decreased primarily as a result of transferring our BioPharma business within our Healthcare segment to held for sale and goodwill impairments at our Hydro and Grid Solutions equipment and services reporting units within our Renewable Energy segment.

In the ~~second~~fourth quarter of 2019, we reorganized our Grid Solutions reporting unit in our Power segment by separating our Grid Solutions software business from the Grid Solutions reporting unit. Our Grid Solutions software business was then moved into Corporate and combined with our Digital business. In addition, the remaining Grid Solutions reporting unit (now referred to as Grid Solutions equipment and services) was moved into our Renewable Energy segment as a separate reporting unit. As a result, we allocated goodwill between Grid Solutions software and the Grid Solutions equipment and services reporting units based on the relative fair values of each business. This resulted in $1,618 million of goodwill transferring from our Power segment to our Renewable Energy segment and our Digital business within Corporate in the amounts of $744 million and $874 million, respectively.

As a consequence of separating the two businesses, the Grid Solutions equipment and services reporting unit’s fair value was below its carrying value. Therefore, we conducted step two of the goodwill impairment test for this reporting unit using a current outlook.

In performing the second step, we identified unrecognized intangible assets primarily related to internally developed technology and trade name. The combination of these unrecognized intangibles, adjustments to the carrying value of other assets and liabilities, and reduced reporting unit fair value calculated in step one, resulted in an implied fair value of goodwill below the carrying value of goodwill for the Grid Solutions equipment and services reporting unit. Therefore, we recorded a non-cash goodwill impairment loss of $744 million in Goodwill impairments in our consolidated Statement of Earnings (Loss). ~~We determined the fair value of the Grid Solutions equipment and services reporting unit using a combination of the market and income approaches.~~ ~~After the impairment charge, there is no remaining goodwill associated with our Grid Solutions equipment and services reporting unit.~~

Further, in the second quarter of 2019, a portion of goodwill recorded at Corporate associated with our Digital acquisitions that was previously allocated to our Renewable Energy, Aviation and Healthcare segments in purchase accounting and for goodwill testing purposes was reflected in these segments in the table above.

GE~~2019 FORM 10-K~~ 82



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~In the third quarter of 2019,~~2022, we performed our annual impairment test. Based on the results of this test, the fair values of each of our reporting units exceeded their carrying values, ~~except~~however, we identified two reporting units for which the fair values were not substantially in excess of their carrying values. The fair values of our ~~Hydro~~Digital reporting unit ~~within our Renewable Energy segment. The Hydro reporting unit continued to experience declines in order growth~~at Corporate and increased project costs which resulted in downward revisions to our current and projected earnings and cash flows for this business. Therefore, we performed a step two analysis which resulted in a non-cash goodwill impairment loss of $742 million. We determined the fair value of the Hydro reporting unit using the income approach. We recorded the impairment loss in Goodwill impairments in our consolidated Statement of Earnings (Loss). After the impairment charge, there is 0 remaining goodwill associated with our Hydro reporting unit. All of the goodwill in this reporting unit was previously recorded as a result of the Alstom acquisition.

Subsequent to this year's third quarter testing, and in order to improve alignment of our annual goodwill impairment testing and strategic planning processes, we changed our annual testing date from the third quarter to the fourth quarter. Therefore, we retested the goodwill at each of our reporting units in the fourth quarter of 2019. Based on the results of this test, the fair value of all our reporting units exceeded their carrying values.

~~We continue to monitor the operating results and cash flow forecasts of our~~ Additive reporting unit in our ~~Aviation~~Aerospace segment ~~as the fair value of this reporting unit was not significantly~~were in excess of ~~its~~their carrying ~~value.~~values by 16% and 21%, respectively. At December 31, ~~2019,~~2022, our Digital and Additive reporting ~~unit~~units had goodwill of ~~$1,116 million.~~$818 million and $239 million, respectively.

We also continue to evaluate strategic options to accelerate the further reduction in the size of GE Capital, some of which could have a material charge depending on the timing, negotiated terms and conditions of any agreements, including $839 million of goodwill.

~~In 2018, we recognized a total non-cash goodwill impairment loss of $22,136 million in our Power Generation, Grid Solutions, and Hydro reporting units in our Power and Renewable Energy segments.~~

Determining the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. It is reasonably possible that the judgments and estimates described above could change in future periods.

2019 2018
INTANGIBLE ASSETS SUBJECT TO AMORTIZATION December 31 (In millions)
Gross carrying
amount
Accumulated
amortization
Net

Gross carrying
amount
Accumulated
amortization
Net

Customer-related(a) $ 6,770
$ (3,070 ) $ 3,701
$ 7,107
$ (2,768 ) $ 4,341
Patents and technology 8,180
(3,730 ) 4,450
9,166
(3,973 ) 5,192
Capitalized software 5,822
(3,651 ) 2,171
5,951
(3,643 ) 2,308
Trademarks & other 737
(406 ) 332
818
(481 ) 337
Total $ 21,510
$ (10,857 ) $ 10,653
$ 23,041
$ (10,865 ) $ 12,178


		2022						2021
INTANGIBLE ASSETS SUBJECT TO AMORTIZATION December 31	Useful lives (in years)	Gross carrying amount		Accumulated amortization		Net		Gross carrying amount		Accumulated amortization		Net
Customer-related(a)	3-15	$	6,063	$	(3,475)	$	2,587	$	6,400	$	(3,250)	$	3,150
Patents and technology	5-15	8,432		(5,018)		3,415		8,592		(4,361)		4,230
Capitalized software	3-10	5,288		(3,824)		1,464		5,764		(3,999)		1,765
Trademarks & other	2-50	419		(322)		97		449		(313)		136
Total		$	20,202	$	(12,639)	$	7,563	$	21,205	$	(11,923)	$	9,282

(a) Balance includes payments made to our customers, primarily within our ~~Aviation~~Aerospace business.


December 31	2022		2021
Aerospace	$	4,748	$	5,019
Renewable Energy	183		229
Power	958		1,965
HealthCare	1,520		1,847
Corporate	216		271
Total other intangible assets, net(a)	$	7,625	$	9,330

(a) Balances include indefinite-lived intangible assets.

Substantially all other intangible assets are subject to amortization. Intangible assets decreased $1,705 million in ~~the fourth quarter of 2019,~~2022, primarily as a result of amortization ~~impairments,~~partially offset by the acquisition of capitalized software and ~~the transfer~~patents and technology mainly at Aerospace and HealthCare of ~~BioPharma within our Healthcare segment to held for sale of $542~~$209 million. Consolidated amortization expense was ~~$1,569~~$1,742 million, ~~$2,163~~$1,138 million and ~~$1,862~~$1,336 million for the years ended December 31, ~~2019, 2018~~2022, 2021 and ~~2017,~~2020, respectively.

~~Included~~In the first quarter of 2022, we signed a non-binding memorandum of understanding for GE Steam Power to sell a portion of its business to EDF, which resulted in a reclassification of that business to held for sale. As a result, we recognized a non-cash pre-tax impairment charge of $765 million related to intangible assets at our remaining Steam business within ~~amortization expense for the years ended December 31, 2019 and December 31, 2018 were non-cash impairment charges recorded in Corporate and in~~ our Power ~~segment for $103 million and $428 million, respectively.~~segment. We determined the fair value of these intangible assets using an income approach. ~~These charges were~~This charge was recorded by Corporate in Selling, general, and administrative expenses in our consolidated Statement of Earnings (Loss).

Estimated ~~Consolidated~~consolidated annual pre-tax amortization for intangible assets over the next five calendar years are as follows:

ESTIMATED 5 YEAR CONSOLIDATED AMORTIZATION (In millions)
2020
2021
2022
2023
2024

Estimated annual pre-tax amortization $ 1,358
$ 1,274
$ 1,173
$ 1,081
$ 1,107


ESTIMATED 5 YEAR CONSOLIDATED AMORTIZATION	2023		2024		2025		2026		2027
Estimated annual pre-tax amortization	$	1,025	$	919	$	848	$	751	$	648

2022 FORM 10-K 58

During ~~2019,~~2022, we recorded additions to intangible assets subject to amortization of ~~$664~~$214 million with a weighted-average amortizable period of ~~5.4~~7.1 years, including capitalized software of ~~$555~~$172 million, with a weighted-average amortizable period of ~~5.2~~5.9 years.

GE~~2019 FORM 10-K~~ 83



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

NOTE 9.8. CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME

Contract and other deferred assets decreased ~~$629~~$1,907 million in ~~2019.~~the year ended December 31, 2022 primarily due to decreased long-term service agreements and the timing of billing milestones ahead of revenue recognition on long-term equipment contracts. Our long-term service agreements decreased primarily due to billings of ~~$11,508~~$11,665 million, ~~and a net unfavorable change in estimated profitability of $124 million at Power and $49 million at Aviation,~~partially offset by revenues recognized of ~~$11,082 million.~~$9,680 million and net favorable changes in estimated profitability of $85 million at Aerospace and $303 million at Power, primarily attributable to contractual increases in billings, partially offset by cost inflation.

December 31, 2019 (In millions)
Power Aviation Renewable Energy Healthcare Other Total

Revenues in excess of billings $ 5,342
$ 4,996
$ —
$ —
$ —
$ 10,338
Billings in excess of revenues (1,561 ) (3,719 ) —
—
—
(5,280 )
Long-term service agreements(a) $ 3,781
$ 1,278
$ —
$ —
$ —
$ 5,058
Short-term and other service agreements 190
316
43
169
—
717
Equipment contract revenues(b) 2,508
82
1,217
324
106
4,236
Total contract assets 6,478
1,675
1,260
492
106
10,011

Deferred inventory costs(c) 943
287
1,677
359
—
3,267
Nonrecurring engineering costs(d) 44
2,257
47
35
8
2,391
Customer advances and other(e) —
1,165
—
—
(32 ) 1,133
Contract and other deferred assets $ 7,465
$ 5,384
$ 2,985
$ 886
$ 82
$ 16,801


December 31, 2022	Aerospace		Renewable Energy		Power		HealthCare		Corporate		Total
Revenues in excess of billings	$	2,363	$	—	$	5,403	$	—	$	—	$	7,766
Billings in excess of revenues	(6,681)		—		(1,763)		—		—		(8,443)
Long-term service agreements	$	(4,318)	$	—	$	3,640	$	—	$	—	$	(677)
Short-term and other service agreements	391		108		56		174		245		973
Equipment contract revenues	42		955		1,348		447		—		2,792
Current contract assets	$	(3,884)	$	1,063	$	5,044	$	621	$	245	$	3,088

Nonrecurring engineering costs(a)	2,513		17		4		30		—		2,563
Customer advances and other(b)	2,519		—		724		204		—		3,447
Non-current contract and other deferred assets	$	5,032	$	17	$	728	$	234	$	—	$	6,010
Total contract and other deferred assets	$	1,148	$	1,079	$	5,772	$	854	$	245	$	9,098

December 31, 2018 (In millions)

Revenues in excess of billings $ 5,368
$ 5,412
$ —
$ —
$ —
$ 10,780
Billings in excess of revenues (1,693 ) (3,297 ) —
—
—
(4,989 )
Long-term service agreements(a) $ 3,675
$ 2,115
$ —
$ —
$ —
$ 5,790
Short-term and other service agreements 167
272
—
251
—
690
Equipment contract revenues(b) 2,761
80
1,174
320
64
4,400
Total contract assets 6,603
2,468
1,174
571
64
10,880

Deferred inventory costs(c) 1,003
673
1,267
360
5
3,309
Nonrecurring engineering costs(d) 43
1,916
85
34
17
2,095
Customer advances and other(e) —
1,146
—
—
—
1,146
Contract and other deferred assets $ 7,650
$ 6,204
$ 2,525
$ 966
$ 87
$ 17,431


December 31, 2021
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		87		80		166		256		928
Equipment contract revenues	33		1,297		1,709		287		—		3,326
Current contract assets	$	(2,881)	$	1,384	$	5,669	$	453	$	256	$	4,881

Nonrecurring engineering costs(a)	2,479		28		12		31		—		2,550
Customer advances and other(b)	2,620		—		801		154		—		3,574
Non-current contract and other deferred assets	$	5,099	$	28	$	813	$	184	$	—	$	6,124
Total contract and other deferred assets	$	2,218	$	1,412	$	6,482	$	637	$	256	$	11,005

~~(a)~~

(a) Included costs incurred prior to production (such as requisition engineering) for equipment production contracts, primarily within our Aerospace segment, which are amortized ratably over each unit produced.

(b) Included amounts due from customers at Aviation for the sales of engines, spare parts and services, which we will collect through higher usage-based fees from servicing equipment under long-term service agreements, totaling $1,712 million and $1,562 million as of December 31, 2019 and 2018, respectively. The corresponding discount is recorded within liabilities as Deferred income and amounted to $308 million and $310 million as of December 31, 2019 and 2018, respectively.


~~(b)~~	Included are amounts due from customers at Power for the sale of services upgrades, which we collect through incremental fixed or usage-based fees from servicing the equipment under long-term service agreements, totaling $909 million and $886 million as of December 31, 2019 and 2018, respectively.


~~(c)~~	Represents cost deferral for shipped goods (such as components for wind turbine assemblies within our Renewable Energy segment) and labor and overhead costs on time and material service contracts (primarily originating in Power and Aviation) and other costs for which the criteria for revenue recognition has not yet been met.


~~(d)~~	Included costs incurred prior to production (such as requisition engineering) for equipment production contracts, primarily within our Aviation segment, which are allocated ratably to each unit produced.

~~(e)~~

Included advances to and amounts due from customers at Aviation for the sale of engines, spare parts and services, which we will collect through incremental fees for goods and services to be delivered in future periods, totaling $986 million and $950 million as of December 31, 2019 and 2018, respectively. The corresponding discount is recorded within liabilities as Deferred income and amounted to $256 million and $223 million as of December 31, 2019 and 2018, respectively.

~~PROGRESS COLLECTIONS & DEFERRED INCOME~~. ~~Progress collections represent cash received~~ from customers at Aerospace for the sales of engines, spare parts and services, and at Power, for the sale of services upgrades, which we collect through incremental fixed or usage-based fees from servicing the equipment under ordinary commercial payment terms in advance of delivery. Progress collections on equipment contracts primarily comprise milestone payments received from customers prior to the manufacture and delivery of customized equipment orders. Other progress collections primarily comprise down payments from customers to reserve production slots for standardized inventory orders such as advance payments from customers when they place orders for wind turbines and blades within our Renewable Energy segment and payments from airframers and airlines for install and spare engines, respectively, within our Aviation segment. long-term service agreements.

Progress collections and deferred income increased ~~$1,456~~$763 million ~~in 2019~~ primarily due new collections received in excess of revenue recognition at Aerospace, including increased collections to ~~milestone payments received primarily~~support higher production, and at ~~Aviation and~~ Renewable ~~Energy. These increases were~~Energy, partially offset by a decrease at Power due to the ~~timing~~reclassification of ~~revenue recognition in excess~~a portion of ~~new collections received, primarily at Healthcare and Power.~~

our GE Steam Power business to held for sale. Revenues recognized for contracts included in a liability position at the beginning of the year were ~~$11,020~~$13,863 million and ~~$14,960~~$14,884 million for the ~~year~~years ended December 31, ~~2019~~2022 and ~~2018,~~2021, respectively.


December 31, 2022	Aerospace		Renewable Energy		Power		HealthCare		Corporate		Total
Progress collections on equipment contracts	$	74	$	2,464	$	3,973	$	—	$	—	$	6,511
Other progress collections	5,740		2,731		541		511		131		9,654

Current deferred income	233		208		13		1,391		107		1,952
Progress collections and deferred income	$	6,047	$	5,404	$	4,527	$	1,902	$	238	$	18,118
Non-current deferred income	1,110		183		104		597		12		2,006
Total Progress collections and deferred income	$	7,157	$	5,586	$	4,632	$	2,499	$	250	$	20,124

GE~~2019~~2022 FORM 10-K 8459



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~


December 31, 2021	Aerospace		Renewable Energy		Power		HealthCare		Corporate		Total
Progress collections on equipment contracts	$	142	$	1,843	$	5,198	$	—	$	—	$	7,183
Other progress collections	4,469		2,866		385		522		111		8,354

Current deferred income	170		198		33		1,336		99		1,835
Progress collections and deferred income	$	4,782	$	4,907	$	5,615	$	1,858	$	210	$	17,372
Non-current deferred income	1,090		194		110		592		3		1,989
Total Progress collections and deferred income	$	5,871	$	5,101	$	5,725	$	2,450	$	213	$	19,361

December 31, 2019 (In millions)
Power Aviation Renewable Energy Healthcare Other Total

Progress collections on equipment contracts $ 5,857
$ 115
$ 1,268
$ —
$ —
$ 7,240
Other progress collections 413
4,748
4,193
305
189
9,849
Total progress collections $ 6,270
$ 4,863
$ 5,461
$ 305
$ 189
$ 17,089
Deferred income(a) 49
1,528
284
1,647
98
3,606
GE Progress collections and deferred income
$ 6,319
$ 6,391
$ 5,745
$ 1,952
$ 287
$ 20,694

December 31, 2018 (In millions)

Progress collections on equipment contracts $ 5,536
$ 114
$ 1,325
$ —
$ —
$ 6,975
Other progress collections 691
4,034
3,557
299
201
8,783
Total progress collections $ 6,227
$ 4,148
$ 4,883
$ 299
$ 201
$ 15,758
Deferred income(a) 112
1,338
260
1,692
79
3,480
GE Progress collections and deferred income
$ 6,339
$ 5,486
$ 5,143
$ 1,991
$ 280
$ 19,239


~~(a)~~	~~Included in this balance are finance discounts associated with customer advances at Aviation of $564 million and $533 million as of December 31, 2019 and 2018, respectively.~~

NOTE ~~10.~~9. ALL OTHER ASSETS


December 31	2022		2021
Derivative instruments (Note 22)	$	482	$	684
Assets held for sale	95		208
Prepaid taxes and deferred charges	395		341
Cash collateral on derivatives	—		76
Accrued interest and investment income	457		426
Other	93		199
All other current assets	$	1,521	$	1,933

Equity method and other investments	8,554		7,840
Long-term receivables (Note 4)	1,672		2,097
Prepaid taxes and deferred charges	670		800
Insurance receivables	2,315		4,705
Insurance cash and cash equivalents(a)	619		353
Pension surplus	2,578		2,784
Other	591		461
All other non-current assets	$	16,998	$	19,040
Total All other assets	$	18,520	$	20,973

December 31 (In millions)
2019
2018

Equity method and other investments (Notes 3 and 26) $ 4,015
$ 4,003
Long-term receivables (Note 4) 2,212
1,933
Prepaid taxes and deferred charges 1,480
1,763
Derivative instruments (Note 21) 211
30
Other 481
849
Total GE $ 8,399
$ 8,578

Equity method and other investments (Notes 3 and 26) $ 2,227
$ 3,097
GECAS pre-delivery payments (Note 23) 2,934
3,086
Assets held for sale 2,294
2,762
Derivative instruments (Note 21) 529
175
Other 664
748
Total GE Capital $ 8,648
$ 9,869
Eliminations (586 ) (90 )
Total Consolidated $ 16,461
$ 18,357
(a) Cash and cash equivalents in our insurance entities are subject to regulatory restrictions and used for operations of those entities. Therefore, the balance is included in All other assets.

Equity method investments. Unconsolidated entities over which we have significant influence are accounted for as equity method investments and presented on a one-line basis in All other assets on our Statement of Financial Position. Equity method income includes our share of the results of unconsolidated entities, gains (loss) from sales and impairments of investments, which is included in Other income and in Insurance revenues in our Statement of Earnings (Loss). See Note 1 for further information.

GE~~2019 FORM 10-K~~ 85



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~NOTE 11. BORROWINGS~~

December 31 (Dollars in millions)
2019
2018

Amount
Average Rate
Amount
Average Rate
Commercial paper $ 3,008
1.62 % $ 3,005
1.64 %
Current portion of long-term borrowings 766
0.36
60
4.02
Current portion of long-term borrowings assumed by GE 5,473
3.71
4,207
3.76
Other 1,832
2,081

Total GE short-term borrowings $ 11,079
$ 9,354

Current portion of long-term borrowings 11,226
3.01 % 3,984
2.00 %
Intercompany payable to GE 2,104
2,684

Other 804
1,015

Total GE Capital short-term borrowings $ 14,134
$ 7,684

Eliminations (3,140 ) (4,262 )
Total short-term borrowings $ 22,072
$ 12,776

Maturities Amount
Average Rate
Amount
Average Rate
Senior notes 2022-2044 $ 14,762
2.11 % $ 20,387
2.28 %
Senior notes assumed by GE 2021-2054 23,024
4.17
29,218
4.30
Subordinated notes assumed by GE 2021-2037 2,871
3.68
2,836
3.64
Other 324
417

Total GE long-term borrowings $ 40,980
$ 52,858

Senior notes 2021-2042 $ 25,371
3.66 % $ 35,105
3.49 %
Subordinated notes 178
165

Intercompany payable to GE 17,038
19,828

Other 626
885

Total GE Capital long-term borrowings $ 43,213
$ 55,982

Eliminations (17,038 ) (19,892 )
Total long-term borrowings $ 67,155
$ 88,949

Non-recourse borrowings of
consolidated securitization entities
2020-2021 1,655
1.34 % 1,875
2.05 %
Total borrowings $ 90,882
$ 103,599


	Equity method investment balance				Equity method income (loss)
December 31	2022		2021		2022		2021		2020
Aerospace	$	1,931	$	2,000	$	149	$	58	$	(41)

Renewable Energy	752		739		32		39		13
Power	960		977		89		23		43
HealthCare	182		223		13		27		7
Corporate(a)	3,991		3,451		103		68		23
Total consolidated	$	7,815	$	7,391	$	386	$	215	$	46

(a) Equity method investments within Corporate include investments held by EFS of $1,975 million and $1,943 million and held by our run-off insurance operations of $1,980 million and $1,480 million as of December 31, ~~2019, the outstanding GE Capital borrowings that had been assumed by GE as part of the GE Capital Exit Plan was $31,368 million ($5,473 million short term~~2022 and ~~$25,895 million long term), for which GE has an offsetting Receivable from GE Capital of $19,142 million.~~ 2021, respectively.

2022 FORM 10-K 60

NOTE 10. BORROWINGS



December 31		2022				2021
		Amount		Average Rate		Amount		Average Rate
Current portion of long-term borrowings
Senior notes issued by GE		$	473	1.04	%	$	1,249	1.39	%
Senior and subordinated notes assumed by GE		1,973		1.50		1,645		2.05
Senior notes issued by GE Capital		1,188		1.54		1,370		0.63
Other		124				97
Total short-term borrowings		$	3,757			$	4,361

	Maturities	Amount		Average Rate		Amount		Average Rate
Senior notes issued by GE	2024-2052	$	12,927	4.75	%	$	5,373	2.87	%
Senior and subordinated notes assumed by GE	2024-2054	8,406		4.71		11,306		3.73
Senior notes issued by GE Capital	2024-2042	6,289		3.95		13,274		4.26
Other		971				870
Total long-term borrowings		$	28,593			$	30,824
Total borrowings		$	32,350			$	35,186

The difference of $12,226 million ($3,369 million in short-term borrowings and $8,857 million in long-term borrowings) represents the amount of borrowings GE Capital had funded with available cash to GE via intercompany loans in lieu of GE issuing borrowings externally. In 2019, GE repaid $1,523 million of maturing intercompany loans from GE Capital.

~~At December 31, 2019, total GE borrowings of $32,917 million comprised GE-issued borrowings of $20,691 million and intercompany loans from GE Capital to GE of $12,226 million as described above.~~

GECompany has provided a full and unconditional guarantee on the payment of the principal and interest on all ~~tradable~~ senior and subordinated outstanding long-term debt securities ~~and all commercial paper~~ issued ~~or guaranteed~~ by ~~GE Capital. At December 31, 2019, the Guarantee applies to $34,683 million~~subsidiaries of GE Capital, ~~debt.~~our former financial services business. This guarantee applied to $5,258 million and $13,719 million of senior notes and other debt issued by GE Capital at December 31, 2022 and 2021, respectively.

~~On September 30, 2019,~~In the fourth quarter of 2022, GE ~~completed~~HealthCare issued a ~~tender offer to purchase $4,846~~total of $8,250 million in aggregate principal amount of ~~certain~~ senior unsecured debt, comprising $1,000 million of 5.55% Notes due 2024, $1,500 million of 5.60% Notes due 2025, $1,750 million of 5.65% Notes due 2027, $1,250 million of ~~4.500%~~5.857% Notes due ~~2044, $1,144~~2030, $1,750 million of ~~4.125%~~5.905% Notes due ~~2042, €992~~2032, and $1,000 million ~~($1,101 million equivalent)~~ of ~~2.125%~~6.377% Notes due 2037, €784 million ($870 million equivalent) of 1.500% Notes due 2029, €374 million ($415 million equivalent) of 1.875% Notes due 2027, and €59 million ($66 million equivalent) of 1.250% Notes due 2023. The total cash consideration paid for these purchases was $5,031 million and2052. GE used the ~~total carrying amount~~majority of the ~~purchased notes was $4,787 million, resulting in~~proceeds to complete a ~~loss~~debt tender to repurchase a total of ~~$255 million (including $12~~$7,234 million of accrued fees and other costs associated with the tender) which was recorded in Interest and other financial charges in the GE Statement of Earnings (Loss). In addition to the purchase price, GE paid any accrued and unpaid interest on the purchased notes through the date of purchase.

~~Non-recourse borrowings of consolidated securitization entities included $1,569 million and $225~~debt, comprising $6,106 million of ~~current portion~~Capital issued debt with maturities ranging from 2032 through 2035, and $1,128 million of ~~long-term borrowings at December 31, 2019 and 2018, respectively. See Notes 4 and 22 for further information.~~

GE assumed debt due 2032. See Note 2122 for further information about borrowings and associated interest rate swaps.

GE~~2019 FORM 10-K~~ 86



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

Long-term debt maturities over the next five years follow.


	2023			2024		2025		2026		2027
Debt issued by GE	$	473		$	1,217	$	2,357	$	49	$	2,450
Debt assumed by GE	1,973			512		237		1,136		222
Debt issued by GE Capital	1,188		(a)	112		694		149		624

(a)Fixed and floating rate notes of $363 million contain put options with exercise dates in 2023, which have final maturity beyond 2034.

The total interest payments on consolidated borrowings are estimated to be $1,367 million, $1,289 million, $1,195 million, $1,052 million and $988 million for 2023, 2024, 2025, 2026 and 2027, respectively.

NOTE 11. ACCOUNTS PAYABLE AND EQUIPMENT PROJECT PAYABLES

(In millions) 2020
2021
2022
2023
2024

GE excluding assumed debt $ 766
$ 47
$ 4,994
$ 1,360
$ 773
GE Capital debt assumed by GE(a) 5,473
4,685
1,954
2,842
918
GE Capital other debt 11,226 (b) 1,930
2,215
2,418
117


~~(a)~~	Of these maturities, $3,369 million, $442 million, 0, 0 and $528 million for 2020, 2021, 2022, 2023 and 2024 respectively, were effectively transferred to GE through intercompany loans with right of offset.


~~(b)~~	~~Fixed and floating rate notes of $443 million contain put options with exercise dates in 2020, which have final maturity beyond 2024.~~


December 31	2022		2021
Trade payables	$	12,479	$	10,970
Supply chain finance programs	4,081		3,402
Equipment project payables(a)	1,469		1,341
Non-income based tax payables	616		531
Accounts payable and equipment project payables	$	18,644	$	16,243

(a) Primarily related to projects in our Power and Renewable Energy segments.

NOTE 12. INSURANCE LIABILITIES AND ANNUITY ~~BENEFITS~~BENEFITS.

Insurance liabilities and annuity benefits comprise ~~mainly~~substantially all obligations to annuitants and insureds in our run-off insurance operations. Our insurance operations (net of eliminations) generated revenues of $2,954 million, $3,106 million and $2,865 million, profit was $60 million, $566 million and $197 million and net earnings was $44 million, $444 million and $143 million for the years ended December 31, 2022, 2021 and 2020, respectively. These operations were supported by assets of $44,197 million and $49,894 million at December 31, 2022 and 2021, respectively. A summary of our insurance contracts is presented below:

December 31, 2019 (In millions)
Long-term care insurance contracts Structured settlement annuities & life insurance contracts Other
contracts Other adjustments(a) Total

Future policy benefit reserves $ 16,755
$ 9,511
$ 183
$ 5,655
$ 32,104
Claim reserves(b) 4,238
252
1,125

5,615
Investment contracts(c) —
1,136
1,055
—
2,191
Unearned premiums and other 30
196
96
—
322

21,023
11,095
2,459
5,655
40,232
Eliminations —
—
(406 ) —
(406 )
Total $ 21,023
$ 11,095
$ 2,053
$ 5,655
$ 39,826

December 31, 2018 (In millions)

Future policy benefit reserves $ 16,029
$ 9,495
$ 169
$ 2,247
$ 27,940
Claim reserves(b) 3,917
230
1,178
—
5,324
Investment contracts(c) —
1,239
1,149
—
2,388
Unearned premiums and other 34
205
103
—
342

19,980
11,169
2,599
2,247
35,994
Eliminations —
—
(432 ) —
(432 )
Total $ 19,980
$ 11,169
$ 2,167
$ 2,247
$ 35,562


~~(a)~~	To the extent that unrealized gains on specific investment securities supporting our insurance contracts would result in a premium deficiency should those gains be realized, an increase in future policy benefit reserves is recorded, with an after-tax reduction of net unrealized gains recognized through Other comprehensive income in our consolidated Statement of Earnings (Loss).


~~(b)~~	Other contracts included claim reserves of $342 million and $346 million related to short-duration contracts at Electric Insurance Company, net of eliminations, at December 31, 2019 and December 31, 2018, respectively.


~~(c)~~	~~Investment contracts are contracts without significant mortality or morbidity risks.~~

We annually perform premium deficiency testing in the aggregate across our run-off insurance portfolio. We performed this year’s testing in the third quarter of 2019, consistent with our historical practice prior to 2017 when we reconstructed our claim cost curves. These procedures included updating experience studies since our last test completed in the fourth quarter of 2018, independent actuarial analysis and review of industry benchmarks. As we experienced a premium deficiency in 2018, our 2019 premium deficiency testing started with a zero margin and, accordingly, any net adverse development would result in a future charge to earnings. Using our most recent future policy benefit reserve assumptions, including changes to our assumptions related to discount rate and future premium rate increases, as described below, we identified a premium deficiency resulting in a $972 million non-cash pre-tax charge to earnings in the third quarter 2019.

GE~~2019~~2022 FORM 10-K 8761



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~


December 31, 2022	Long-term care		Structured settlement annuities & life		Other contracts		Other adjustments(a)		Total
Future policy benefit reserves	$	17,357	$	8,678	$	187	$	—	$	26,223
Claim reserves	4,596		254		307		—		5,156
Investment contracts	—		864		907		—		1,771
Unearned premiums and other	18		174		5		—		197


Total	$	21,971	$	9,970	$	1,406	$	—	$	33,347


December 31, 2021
Future policy benefit reserves	$	17,097	$	8,902	$	188	$	3,394	$	29,581
Claim reserves(b)	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

(a) The ~~increase to future policy benefit reserves resulting from our 2019 testing was primarily attributable to the following key assumption changes:~~

•

~~We have observed~~decrease in Other adjustments of $3,394 million is a significant decline in market interest rates this year, which has resulted in a lower discount rate and adversely impacted our reserve margin by $1,344 million. As noted above, our discount rate is based upon the actual yields on our investment portfolio and our forecasted reinvestment rates, which comprise the future rates at which we expect to invest proceeds from investment maturities, net of operating cash flows, and projected future capital contributions. Market interest rates have declined by approximately 130 basis points since our 2018 premium deficiency test, with 60 basis points of this reduction occurring since the second quarter 2019. Although the movement in market rates impacts the reinvestment rate, it does not materially impact the actual yield on our existing investments. Furthermore, our assumed reinvestment rate on future fixed income investments is based both on current expected long-term average rates and market interest rates. Thus, a decline in market interest rates will not result in an equivalent decline in our discount rate assumption. Our discount rate assumption for purposes of performing the premium deficiency assessment resulted in weighted average rate of 5.74% compared to 6.04% in 2018. This decline in the discount rate from 2018 to 2019 reflected a lower reinvestment rate increasing to an expected long-term average investment yield over a longer period, lower prospective expected returns on higher yielding assets classes introduced with our 2018 strategic initiatives, and slightly lower actual yields on our investment security portfolio.

•

Higher levels of projected long-term care premium rate increases due to larger rate filings by some ceding companies than previously planned, which favorably impacted our reserve margin by $263 million. Since our premium deficiency testing performed in 2018, we have implemented approximately $200 million of previously approved rate increase actions. Our 2019 premium deficiency test includes approximately $2,000 million of anticipated future premium increases or benefit reductions associated with future in-force rate actions. This represents an increase of $300 million from our 2018 premium deficiency test to account for actions that are: (a) approved and not yet implemented, (b) filed but not yet approved, and (c) estimated on future filings through 2028, and includes the effect of the lower discount rate mentioned above.

Certain future adverse changes in our assumptions could result in the unlocking of reserves, resetting of actuarial assumptions to current assumptions, an increase to future policy benefit reserves and a charge to earnings. Any favorable changes to these assumptions could result in additional margin in our premium deficiency test and higher income over the remaining duration of the ~~portfolio, including higher~~decline in unrealized gains on investment ~~income.~~ securities.

(b) Other contracts included claim reserves of $242 million related to short-duration contracts at Electric Insurance Company (EIC), net of eliminations, at December 31, 2021. EIC is a property and casualty insurance company primarily providing insurance to GE and its employees.

Claim reserve activity included incurred claims of ~~$1,873~~$1,481 million, ~~$2,106~~$1,699 million and ~~$2,020~~$1,801 million, of which ~~$(36) million, $(46) million and $135 million~~insignificant amounts related to the recognition of adjustments to prior year claim reserves arising from our periodic reserve evaluation in the years ended December 31, ~~2019, 2018~~2022, 2021 and ~~2017,~~2020, respectively. Paid claims were ~~$1,626~~$1,518 million, ~~$1,937~~$1,709 million and ~~$1,670~~$1,728 million in the years ended December 31, ~~2019, 2018~~2022, 2021 and ~~2017,~~2020, respectively. ~~The vast majority of paid claims relate to prior year insured events primarily as a result of the length of time long-term care policyholders remain on claim.~~

~~When insurance companies cede insurance risk to third parties, such as reinsurers, they~~

Reinsurance recoveries are not relieved of their primary obligation to policyholders and cedents. When losses on ceded risks give rise to claims for recovery, we establish allowances for probable losses on such receivables from reinsurers as required. The vast majority of our remaining net reinsurance recoverables are secured by assets held in a trust for which we are the beneficiary. ~~Reinsurance recoverables, net of allowances of $1,355 million and $1,090 million, are included in Other GE Capital receivables in our consolidated Statement of Financial Position,~~ ~~and amounted to $2,416 million and $2,271 million at December 31, 2019 and December 31, 2018, respectively.~~

~~We recognize reinsurance recoveries~~recorded as a reduction of ~~Insurance~~insurance losses and annuity benefits in our ~~consolidated~~ Statement of Earnings (Loss)~~. Reinsurance recoveries were $362~~ and amounted to $321 million, ~~$324~~$351 million and ~~$454~~$350 million for the years ended December 31, ~~2019, 2018~~2022, 2021 and ~~2017,~~2020, respectively.

Reinsurance recoverables, net of allowances of an insignificant amount and $1,654 million, are included in non-current All other assets in our Statement of Financial Position, and amounted to $132 million and $2,651 million at December 31, 2022 and 2021, respectively.

In the third quarter of 2022, we agreed to terminate substantially all long-term care insurance exposures previously ceded to a single reinsurance company (recapture transaction) and recorded an increase to our allowance for credit losses on such reinsurance recoverables of $415 million (pre-tax) ($328 million (after-tax)) which is unrelated to changes in claim experience or projections of future policy benefit reserves. Upon closing of the recapture transaction in the fourth quarter of 2022, we received a net portfolio of investment securities with an estimated fair value of $2,396 million in complete settlement of reinsurance recoverables previously recognized under retrocession agreements with the reinsurance company, which represented substantially all of our reinsurance recoverables balance as of September 30, 2022 and recorded an incremental loss of $56 million (pre-tax) ($44 million (after-tax)).

The recapture transaction reduces both our financial and operational risks by removing the future inherent risk of collectability of reinsurance recoverables, eliminating retrocession contracts having complex terms and conditions, assuming direct control of the portfolio of investment securities held in a trust for our benefit and redeploying those assets consistent with our portfolio realignment strategy and establishing administration service standards intended to enhance claim administration and innovation efforts. The effect of the recapture agreement does not increase our long-term care insurance liabilities as under the existing retrocession agreements we were not previously relieved of our primary obligation to companies from which we originally assumed the liabilities. In addition, we do not expect changes to projected statutory funding as a result of the recapture transaction.

Premium Deficiency Testing. We completed our annual premium deficiency testing in the aggregate across our run-off insurance portfolio in the third quarter of 2022. These procedures included updating certain experience studies since our last test completed in the third quarter of 2021, independent actuarial analysis (principally on long-term care insurance exposures) and review of industry benchmarks. Using updated assumptions, the 2022 premium deficiency testing results indicated a positive margin of about 10% of the related future policy benefit reserves recorded at September 30, 2022, or approximately equivalent to the 2021 premium deficiency testing results. The premium deficiency testing margin in 2022 was impacted by a lower discount rate in our ERAC portfolio due to the recapture transaction, as explained above, partially offset by higher prevailing benchmark interest rates in the U.S. The portfolio of investment securities expected to be received from the recapture transaction were assumed to be invested at yields below ERAC’s current portfolio yield before ultimately grading to the long-term average investment yield as we reinvest the portfolio over time. This effect was partially offset by the net impact from assumed moderately higher near-term mortality related to COVID-19 in the aggregate across our run-off insurance products (i.e., for life insurance products, higher mortality increases the present value of expected future benefit payments, while for annuity and long-term care insurance contracts, higher mortality decreases the present value of expected future benefit payments). Excluding the net impact from assumed moderately higher near-term mortality related to COVID-19, we have made no substantial change to our assumptions concerning morbidity, morbidity improvement, mortality, mortality improvement, terminations, or long-term care insurance premium rate increases in 2022. We regularly monitor emerging experience and industry developments, including these factors, to help us refine all our reserve assumptions, which may result in future changes to those assumptions.

2022 FORM 10-K 62

Statutory accounting practices, not GAAP, determine the required statutory capital levels of our ~~insurance legal entities and, therefore, may affect the amount or timing of capital contributions that may be required from GE Capital to its~~ insurance legal entities. Statutory accounting practices are set forth by the National Association of Insurance Commissioners (NAIC) as well as state laws, regulation and general administrative rules and differ in certain respects from GAAP. ~~The~~We annually perform statutory asset adequacy testing and expect our December 31, 2022 testing process to be completed in the first quarter of 2023, the results of which may affect the amount or timing of capital contributions from GE to the insurance legal entities.

Following approval of a statutory permitted accounting practice in 2018 ~~and 2019 premium deficiency results described above were recorded on a GAAP basis. The adverse impact on~~by our statutory additional actuarial reserves (AAR) arising from our revised assumptions in 2017, including the collectability of reinsurance recoverables, is expected to require GE Capital to contribute approximately $14,500 million additional capital to its run-off insurance operations in 2018-2024. For statutory accounting purposes,primary regulator, the Kansas Insurance Department (KID), ~~approved our request for~~we provided a ~~permitted accounting practice to recognize the 2017 AAR increase over a seven-year period. GE Capital provided~~total of $11,400 million of capital contributions to ~~its~~our run-off insurance ~~subsidiaries of $2,000 million, $1,900 million and $3,500 million in the first quarters of 2020, 2019 and 2018, respectively. GE Capital expects~~subsidiaries. We expect to provide further capital contributions of approximately ~~$7,000~~$3,600 million through 2024 (of which approximately $1,800 million is expected to be contributed in the first quarter of 2023, pending completion of our December 31, 2022 statutory reporting process, which includes asset adequacy testing), subject to ongoing monitoring by KID. GE is a party to capital maintenance agreements with its run-off insurance subsidiaries ~~whereby~~under which GE ~~will~~is required to maintain their statutory capital levels at 300% of their year-end Authorized Control Level risk-based capital requirements as defined from time to time by the NAIC.

GE~~2019 FORM 10-K~~ 88



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

NOTE 13. POSTRETIREMENT BENEFIT PLANS

PENSION BENEFITS AND RETIREE HEALTH AND LIFE BENEFITS.

We sponsor a number of pension and retiree health and life insurance benefit plans that we present in 3three categories, principal pension plans, other pension plans and principal retiree benefit plans. Smaller pension plans with pension assets or obligations ~~less than~~that have not reached $50 million and other retiree benefit plans are not presented. ~~We use~~Information in this Note is as of a December 31 measurement date for these plans and does not reflect the impact of the GE HealthCare Separation, including the legal split and the transfer of certain postretirement benefit plans. See Note 28 for information regarding the legal split and the transfer of certain postretirement benefit plans to GE HealthCare in connection with the Separation.

DESCRIPTION OF OUR PLANS

Plan Category

Participants

Funding

Comments

Principal Pension Plans

GE Pension Plan

Covers U.S. participants ~177,000 retirees and beneficiaries, ~82,500 vested former employees and ~23,000 active employees

Our funding policy is to contribute amounts sufficient to meet minimum funding requirements under employee benefit and tax laws. We may decide to contribute additional amounts beyond this level.

This plan has been closed to new participants since 2012. Benefits for ~20,000 employees with salaried benefits were frozen effective January 1, 2021, and thereafter these employees receive increased company contributions in the company sponsored defined contribution plan in lieu of participation in a defined benefit plan (announced October 2019).

GE Supplementary Pension Plan

Provides supplementary benefits to higher-level, longer-service U.S. employees

This plan is unfunded. We pay benefits from company cash.

The annuity benefit has been closed to new participants since 2011 and has been replaced by an installment benefit (which was closed to new executives after 2020). Benefits for ~700 employees who became executives before 2011 were frozen effective January 1, 2021, and thereafter these employees accrue the installment benefit.

Other Pension Plans(a)

41 U.S. and non-U.S. pension plans with pension assets or obligations that have reached $50 million

Covers ~58,000 retirees and beneficiaries, ~48,500 vested former employees and ~14,000 active employees

Our funding policy is to contribute amounts sufficient to meet minimum funding requirements under employee benefit and tax laws in each country. We may decide to contribute additional amounts beyond this level. We pay benefits for some plans from company cash.

In certain countries, benefit accruals have ceased and/or have been closed to new hires as of various dates.

Principal Retiree Benefit Plans

Provides health and life insurance benefits to certain eligible participants

Covers U.S. participants ~151,500 retirees and dependents and ~21,500 active employees

We fund retiree health benefits on a pay-as-you-go basis and the retiree life insurance trust at our discretion.

Participants share in the cost of the healthcare benefits.

(a) Plans that reach $50 million are not removed from the presentation unless part of a disposition or plan termination.

~~Principal pension plans represent~~

2022 FORM 10-K 63


FUNDING STATUS BY PLAN TYPE	Benefit Obligation				Fair Value of Assets				Deficit/(Surplus)
	2022		2021		2022		2021		2022		2021
Principal Pension Plans:
GE Pension Plan (subject to regulatory funding)	$	48,134	$	65,073	$	44,993	$	60,990	$	3,141	$	4,083
GE Supplementary Pension Plan (not subject to regulatory funding)	5,457		7,226		—		—		5,457		7,226
	53,591		72,299		44,993		60,990		8,598		11,309
Other Pension Plans:
Subject to regulatory funding	12,078		19,698		14,512		22,280		(2,434)		(2,582)
Not subject to regulatory funding	1,838		2,558		151		210		1,687		2,348
Principal retiree benefit plans (not subject to regulatory funding)	3,304		4,308		10		42		3,294		4,266

Total plans subject to regulatory funding	60,212		84,771		59,505		83,270		707		1,501
Total plans not subject to regulatory funding	10,599		14,092		161		252		10,438		13,840
Total plans	$	70,811	$	98,863	$	59,666	$	83,522	$	11,145	$	15,341

FUNDING. The Employee Retirement Income Security Act (ERISA) determines minimum funding requirements in the U.S. No contributions were required or made for the GE Pension Plan during 2022 or 2021 and based on our current assumptions, we do not anticipate having to make additional required contributions to the ~~GE Supplementary Pension Plan. The~~plan in the near future. On an ERISA basis, our estimate is that the GE Pension Plan was 92.8% and 107.3% funded for 2022 and 2021, respectively. The GAAP funded status is ~~a defined~~93.5% and 93.7% for 2022 and 2021, respectively.

As of the measurement date of December 31, we would expect to pay approximately $370 million for benefit plan that covers approximately 245,500 retirees and beneficiaries, approximately 97,000 vested former employees and approximately 31,500 active employees. This plan has been closed to new participants since 2012.

~~The~~payments under our GE Supplementary Pension Plan ~~is an unfunded plan that provides supplementary benefits~~and administrative expenses of our principal pension plans and would expect to ~~higher-level, longer-service employees. The GE Supplementary Pension Plan annuity benefit has been closed~~contribute approximately $170 million to ~~new participants since 2011 and has been replaced by an installment benefit.~~

~~Other~~other pension plans in ~~2019 included 44 U.S.~~2023. We fund retiree health benefits on a pay-as-you-go basis and non-U.S. pension plans with pension assets or obligations greater than $50 million which cover approximately 57,000 retirees and beneficiaries, approximately 54,000 vested former employees and approximately 22,000 active employees. Principalthe retiree ~~benefit plans provide health and~~ life insurance ~~benefits to certain eligible participants, and these participants share in the cost~~trust at our discretion. As of the ~~healthcare~~measurement date of December 31, we would expect to contribute approximately $365 million in 2023 to fund such benefits. ~~Principal retiree benefit plans cover approximately 176,000 retirees and dependents.~~

~~In October 2019, we approved changes to our principal pension plans. The GE~~ ACTIONS. Pension ~~Plan~~ benefits for approximately ~~20,000 employees with salaried~~2,700 United Kingdom (UK) participants have been frozen effective January 1, 2022. In addition, pension benefits for approximately 800 Canadian participants will be frozen effective ~~January 1, 2021, and thereafter these employees will receive increased company contributions in the company sponsored defined contribution plan in lieu of participation in~~December 31, 2023. These transactions were reflected as a ~~defined benefit plan. As a result, we recognized a non-cash pre-tax~~ curtailment loss ~~of $298 million~~ in the fourth quarter of 2019 as non-operating benefit costs. In addition, the GE Supplementary Pension Plan benefits for approximately 700 employees who became executives before 2011 will be frozen effective January 1, 2021 and thereafter these employees will accrue the installment benefit currently offered to new executives since 2011. The change in the GE Supplementary Pension Plan reduced the projected benefit obligation by $297 million and has been treated as a plan amendment that is being amortized over future periods.upon announcement.

As result, we remeasured the pension assets and obligations for the principal pension plans as of October 1, 2019, which resulted in a net actuarial loss of $4,735 million, which was recorded in Accumulated other comprehensive income. The net actuarial loss was primarily due to a reduction in the discount rate since December 31, 2018, offset by our asset performance up to the remeasurement date and the impact of the freeze for the GE Pension Plan.

Finally, we offered approximately 100,000 former U.S. employees with a vested benefit in the GE Pension Plan a limited-time option to take a lump sum distribution in lieu of future monthly payments. In December 2019, lump sum distributions of $2,657 million were made from the GE Pension Trust.

At December 31, 2019, we completed our annual year-end measurement of the funded status of the principal pension plans which resulted in a net actuarial gain of $3,898 million which was recorded in Accumulated Other Comprehensive Income. The net actuarial gain was primarily due to the impact of the lump-sum distributions, an increase in the discount rate since the remeasurement date, asset performance in the fourth quarter and updated mortality assumptions.

For the year ended December 31, 2019, we recognized a net actuarial loss of $837 million which is a result of a $4,735 million net actuarial loss from remeasurement as of October 1, 2019 and a $3,898 million net actuarial gain from our annual year-end measurement.

GE~~2019 FORM 10-K~~ 89



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~


COST OF OUR BENEFITS PLANS AND ASSUMPTIONS
	2019										2018									2017
(Dollars in millions)	Principal pension			Other pension			Principal retiree benefit				Principal pension			Other pension			Principal retiree benefit			Principal pension			Other pension			Principal retiree benefit

COST OF OUR BENEFITS PLANS																													COST OF OUR BENEFITS PLANS	2022									2021									2020
AND ASSUMPTIONS																													AND ASSUMPTIONS	Principal pension			Other pension			Principal retiree benefit			Principal pension			Other pension			Principal retiree benefit			Principal pension			Other pension			Principal retiree benefit
Components of expense (income)										��																			Components of expense (income)
Service cost - operating	$	654		$	246		$	58			$	888		$	323		$	63		$	1,055		$	542		$	94		Service cost - operating	$	221		$	86		$	39		$	237		$	233		$	44		$	657		$	243		$	59
Interest cost	2,780			542			202				2,658			548			196			2,856			561			224			Interest cost	2,069			398			108			1,951			383			103			2,350			422			150
Expected return on plan assets	(3,428		)	(1,144		)	(21		)		(3,248		)	(1,285		)	(29		)	(3,390		)	(1,176		)	(36		)	Expected return on plan assets	(3,142)			(967)			—			(3,049)			(1,194)			—			(2,993)			(1,082)			(11)
Amortization of net actuarial loss (gain)	3,439			319			(118		)		3,785			312			(79		)	2,812			418			(80		)
Amortization of net loss (gain)																													Amortization of net loss (gain)	1,422			101			(115)			3,483			403			(79)			3,399			434			(82)
Amortization of prior service cost (credit)	135			3			(232		)		143			(9		)	(230		)	290			(5		)	(171		)	Amortization of prior service cost (credit)	5			(8)			(235)			28			(3)			(236)			146			1			(234)
Curtailment / settlement loss (gain)(a)	349			13			(38		)		34			1			—			64			24			4
Curtailment / settlement loss (gain)																													Curtailment / settlement loss (gain)	—			(6)			—			—			76			—			—			12			—
Non-operating	3,275			(267		)	(207		)		3,372			(433		)	(142		)	2,632			(178		)	(59		)	Non-operating	$	354		$	(482)		$	(242)		$	2,413		$	(335)		$	(212)		$	2,902		$	(213)		$	(177)
Net periodic expense (income)	$	3,929		$	(21	)	$	(149	)		$	4,260		$	(110	)	$	(79	)	$	3,687		$	364		$	35		Net periodic expense (income)	$	575		$	(396)		$	(203)		$	2,650		$	(102)		$	(168)		$	3,559		$	30		$	(118)
Weighted-average assumptions used to determine benefit obligations
Weighted-average benefit obligations assumptions																													Weighted-average benefit obligations assumptions
Discount rate	3.36		%	1.97		%	3.05		%		4.34		%	2.75		%	4.12		%	3.64		%	2.41		%	3.43		%	Discount rate	5.53		%	4.59		%	5.43		%	2.94		%	1.93		%	2.64		%	2.61		%	1.44		%	2.15		%
Compensation increases	2.95			3.16			3.75				3.60			3.16			3.60			3.55			3.09			3.55			Compensation increases	3.07			2.44			3.12			3.05			2.35			2.63			2.95			3.06			2.82
Initial healthcare trend rate(b)	N/A			N/A			5.90				N/A			N/A			6.00			N/A			N/A			6.00
Weighted-average assumptions used to determine benefit cost
Discount rate(c)	4.07			2.75			4.12				3.64			2.41			3.43			4.11			2.55			3.75
Initial healthcare trend rate(a)																													Initial healthcare trend rate(a)	N/A						6.40			N/A						5.70			N/A						5.90
Weighted-average benefit cost assumptions																													Weighted-average benefit cost assumptions
Discount rate																													Discount rate	2.94			1.93			2.64			2.61			1.44			2.15			3.36			1.97			3.05
Expected rate of return on plan assets	6.75			6.76			7.00				6.75			6.75			7.00			7.50			6.75			7.00			Expected rate of return on plan assets	6.00			4.80			—			6.25			5.69			1.25			6.25			6.10			7.00

GE~~2019~~2022 FORM 10-K 9670

DEFERRED INCOME TAXES December 31 (In millions)
2019
2018

GE $ 12,807
$ 14,479
GE Capital 5,124
6,214
Total assets 17,931
20,693
GE (4,618 ) (4,302 )
GE Capital (3,424 ) (4,278 )
Eliminations —
4
Total liabilities (8,042 ) (8,576 )
Net deferred income tax asset (liability) $ 9,889
$ 12,117


COMPONENTS OF THE NET DEFERRED INCOME TAX ASSET (LIABILITY) December 31	2022		2021
Deferred tax assets
Accrued expenses and reserves	$	2,538	$	2,635
Progress collections, contract assets and deferred items	2,520		2,093
Deferred expenses	1,925		1,597
Principal pension plans	1,806		2,375
Insurance company loss reserves	1,782		1,700
Non-U.S. loss carryforwards(a)	1,240		1,354
Other compensation and benefits	975		1,397
Investment securities	516		(1,278)
Principal retiree benefit plans	692		896
Other(b)	703		1,329
Total deferred tax assets	$	14,697	$	14,098
Deferred tax liabilities
Investment in global operations	$	(1,011)	$	(1,775)
Other	(1,981)		(1,468)
Total deferred tax liabilities	(2,992)		(3,243)
Net deferred income tax asset (liability)	$	11,705	$	10,855

(a)Net of valuation allowances of $7,171 million and $7,081 million as of December 31, 2022 and 2021, respectively. Of the net deferred tax asset as of December 31, 2022 of $1,240 million, $8 million relates to net operating loss carryforwards that expire in various years ending from December 31, 2023 through December 31, 2025; $427 million relates to net operating losses that expire in various years ending from December 31, 2026 through December 31, 2042; and $805 million relates to net operating loss carryforwards that may be carried forward indefinitely.

COMPONENTS OF THE NET DEFERRED INCOME TAX ASSET (LIABILITY)
December 31 (In millions)
2019
2018

Principal pension plans $ 4,016
$ 3,883
Other non-current compensation and benefits 2,206
2,431
Provision for expenses 1,990
2,208
Intangible assets 1,315
820
Retiree insurance plans 1,023
1,006
Non-U.S. loss carryforwards(a) 602
1,362
U.S. credit carryforwards(b) 74
74
Baker Hughes investment (1,256 ) 721
Contract assets (1,232 ) (1,781 )
Depreciation (823 ) (855 )
Other – net(c) 274
307
GE 8,189
10,176
Operating leases (2,218 ) (2,690 )
Financing leases (477 ) (599 )
Intangible assets (10 ) (16 )
Insurance company loss reserves 1,715
1,386
Non-U.S. loss carryforwards(a) 1,274
1,231
U.S. credit carryforwards(b) 785
2,491
Other – net(c) 631
133
GE Capital 1,700
1,936
Eliminations —
4
Net deferred income tax asset (liability) $ 9,889
$ 12,117

~~(a)~~

Net of valuation allowances of $4,801 million and $3,799 million for GE and $201 million and $767 million for GE Capital as of December 31, 2019 and 2018, respectively. Of the net deferred tax asset as of December 31, 2019 of $1,876 million, $3 million relates to net operating loss carryforwards that expire in various years ending from December 31, 2020 through December 31, 2022; $193 million relates to net operating losses that expire in various years ending from December 31, 2023 through December 31, 2039 and $1,680 million relates to net operating loss carryforwards that may be carried forward indefinitely.


(b)	Of the net deferred tax asset as of December 31, 2019 of $859 million for U.S. credit carryforwards, $74 million expires in the years ending December 31, 2030 through 2032 and $785 million expires in various years ending from December 31, 2036 through December 31, 2039.

~~(c)~~ Included valuation allowances related to assets other than non-U.S. loss carryforwards of ~~$1,897~~$3,325 million and ~~$1,002~~$1,653 million ~~for GE and $248 million and $131 million for GE Capital~~ as of December 31, ~~2019~~2022 and ~~2018,~~2021, respectively.

GE~~2019 FORM 10-K~~ 97



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

These primarily relate to excess capital loss carryforwards.

NOTE 16. SHAREHOLDERS’ EQUITY




ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	2022		2021		2020






Beginning balance	$	(4,562)	$	(4,386)	$	(4,818)
AOCI before reclasses – net of taxes of $127, $(91) and $(25)	(1,355)		(104)		(255)
Reclasses from AOCI – net of taxes of $—, $87 and $—(a)	—		(71)		691
AOCI	(1,355)		(174)		435
Less AOCI attributable to noncontrolling interests	(2)		2		2
Currency translation adjustments AOCI	$	(5,915)	$	(4,562)	$	(4,386)

Beginning balance	$	3,646	$	(5,395)	$	(7,024)
AOCI before reclasses – net of taxes of $597, $1,643 and $(283)	2,117		6,225		(1,256)
Reclasses from AOCI – net of taxes of $216, $793 and $805(a)	772		2,819		2,888
AOCI	2,889		9,044		1,632
Less AOCI attributable to noncontrolling interests	3		3		4
Benefit plans AOCI	$	6,531	$	3,646	$	(5,395)

Beginning balance	$	2,498	$	32	$	109
AOCI before reclasses – net of taxes of $(1,141), $615 and $21(b)	(4,461)		2,422		(39)
Reclasses from AOCI – net of taxes of $(20), $23 and $(25)(a)	36		44		(39)
AOCI	(4,425)		2,466		(78)

Investment securities and cash flow hedges AOCI	$	(1,927)	$	2,498	$	32

AOCI at December 31	$	(1,311)	$	1,582	$	(9,749)

Dividends declared per common share	$	0.32	$	0.32	$	0.32

(a)The total reclassification from AOCI included $836 million, including currency translation of $688 million, net of taxes, in 2020,

related to the sale of our BioPharma business within our HealthCare segment.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (In millions)
2019
2018
2017

Beginning balance $ (39 ) $ (102 ) $ 674
Other comprehensive income (loss) (OCI) before reclassifications – net of deferred taxes of $32, $41 and $(335)(a) 141
87
(627 )
Reclassifications from OCI – net of deferred taxes of $(11), $(6) and $(81) (42 ) (23 ) (149 )
Other comprehensive income (loss) 100
64
(776 )
Less OCI attributable to noncontrolling interests —
—
1
Investment securities ending balance $ 61
$ (39 ) $ (102 )

Beginning balance $ (6,134 ) $ (4,661 ) $ (6,806 )
OCI before reclassifications – net of deferred taxes of $(98), $29 and $(537) 41
(2,076 ) 846
Reclassifications from OCI – net of deferred taxes of $(9), $89 and $(543)(b) 1,234
412
1,333
Other comprehensive income (loss) 1,275
(1,664 ) 2,179
Less OCI attributable to noncontrolling interests (40 ) (192 ) 35
Currency translation adjustments ending balance $ (4,818 ) $ (6,134 ) $ (4,661 )

Beginning balance $ 13
$ 62
$ 12
OCI before reclassifications – net of deferred taxes of $6, $(26) and $31 (21 ) (149 ) 171
Reclassifications from OCI – net of deferred taxes of $2, $4 and $(28) 58
98
(120 )
Other comprehensive income (loss) 37
(51 ) 51
Less OCI attributable to noncontrolling interests 2
(2 ) 1
Cash flow hedges ending balance $ 49
$ 13
$ 62

Beginning balance $ (8,254 ) $ (9,702 ) $ (12,469 )
OCI before reclassifications – net of deferred taxes of $(355), $115 and $32 (1,820 ) 71
550
Reclassifications from OCI – net of deferred taxes of $852, $2,610 and $1,111 3,048
1,345
2,232
Other comprehensive income (loss) 1,228
1,416
2,782
Less OCI attributable to noncontrolling interests (2 ) (32 ) 15
Benefit plans ending balance $ (7,024 ) $ (8,254 ) $ (9,702 )

Accumulated other comprehensive income (loss) at December 31 $ (11,732 ) $ (14,414 ) $ (14,404 )

~~(a)~~ (b)Included adjustments of ~~$(2,693)~~$2,674 million, ~~$1,825~~$3,535 million and ~~$(1,259)~~$(1,979) million ~~in 2019, 2018~~for the years ended December 31, 2022, 2021 and ~~2017,~~2020, respectively, related to insurance liabilities and annuity benefits in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment security gains been realized. See Note 12 for further information.

~~(b) Currency translation gains~~

2022 FORM 10-K 71

Preferred stock. GE has 50 million authorized shares of preferred stock ($1.00 par value), of which 5,795,444 shares are outstanding as of December 31, 2022 and ~~losses included $1,066 million, 0~~5,939,875 shares are outstanding as of both December 31, 2021 and ~~$483 million in 2019, 2018 and 2017, respectively, in earnings (loss) from discontinued operations, net of taxes.~~

~~In 2016, we issued $5,694~~2020. Preferred stock outstanding comprises $5,550 million of GE Series D preferred stock, ~~which are callable on January 21, 2021. In~~in addition to ~~Series D, $250~~$245 million of existing GE Series A, B and C preferred ~~stock are also outstanding.~~stock. The total carrying value of GE preferred stock at December 31, ~~2019~~2022 was ~~$5,738 million and will increase to $5,944 million by the respective call dates through periodic accretion.~~$5,795 million. Dividends on GE preferred stock are payable semi-annually in June and December and accretion is recorded on a quarterly basis. Dividends on GE preferred stock totaled ~~$460~~$289 million, including cash dividends of ~~$295~~$284 million, ~~$447~~$237 million, including cash dividends of ~~$295~~$220 million, and ~~$436~~$474 million, including cash dividends of $295 million, for the years ended December 31, ~~2019, 2018~~2022, 2021 and ~~2017,~~2020, respectively.

In conjunction with the 2016 exchange of GE Capital preferred stock into GE preferred stock, GE Capital issued preferred stock to GE for which the amount and terms mirrored the GE external preferred stock. In 2018, GE Capital and GE exchanged the existing Series D preferred stock issued to GE for new Series D preferred stock, which is mandatorily convertible into GE Capital Common stock on On January 21, ~~2021. After this conversion, GE Capital will no longer pay preferred dividends to GE. The exchange of GE Capital Series D preferred stock has no impact on~~2021, the GE Series D preferred stock ~~which remains~~became callable and its dividends converted from 5% fixed rate to 3-month LIBOR plus 3.33%. As of the filing date of this Form 10-K for ~~$5,694 million on January 21, 2021 or thereafter on dividend payment dates. Additionally, there were no changes to~~ the ~~existing~~year ended December 31, 2022, the GE Series ~~A, B or C~~D preferred stock ~~issued~~has not been called. From time to ~~GE.~~

~~GE has 50.0 million authorized~~time we repurchase outstanding shares of preferred stock, ~~($1.00 par value),~~and we repurchased $144 million of ~~which 5,939,875, 5,939,875 and 5,939,875 shares are outstanding as of~~GE Series D preferred stock in the year ended December 31, ~~2019, 2018 and 2017, respectively. GE’s~~2022.

Common stock. GE's authorized common stock consists of ~~13,200~~1,650 million shares having a par value of ~~$0.06~~$0.01 each, with ~~11,694~~1,462 million shares issued. ~~Under our share purchase programs we~~Common stock shares outstanding were 1,089,107,878 and 1,099,027,213 at December 31, 2022 and 2021, respectively. We repurchased ~~shares of 1.1~~13.6 million and ~~19.5~~0.5 million shares, for a total of ~~$10~~$1,000 million and ~~$235~~$36 million for the years ended ~~2019 and 2018, respectively.~~

~~Noncontrolling interests in equity of consolidated affiliates amounted to $1,545 million and $20,500 million, including 0 and $19,239 million attributable to Baker Hughes Class A shareholders at~~ December 31, ~~2019~~2022 and ~~2018,~~2021, respectively. See Note 2 for further information related to the Baker Hughes transaction. Net earnings (loss) attributable to noncontrolling interests were $33 million, $203 million and $(47) million in 2019, 2018 and 2017, respectively. Dividends attributable to noncontrolling interests were $(331) million, $(362) million and $(222) million in 2019, 2018 and 2017, respectively.

GE~~2019 FORM 10-K~~ 98



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

Redeemable noncontrolling interests. Our redeemable noncontrolling interests, presented inwithin All other liabilities in our ~~consolidated~~ Statement of Financial Position, include common shares issued by our affiliates that are redeemable at the option of the holder of those interests and amounted to ~~$439~~$132 million and ~~$378~~$148 million, primarily related to our HealthCare segment, as of December 31, ~~2019~~2022 and ~~2018,~~2021, respectively. ~~Net earnings (loss) attributable to redeemable noncontrolling interests was $33 million, $(291) million and $(320) million for the years ended December 31, 2019, 2018 and 2017, respectively.~~ ~~On October 2, 2018, we settled the redeemable noncontrolling interest balance associated with~~3~~joint ventures with Alstom for a payment amount of $3,105 million in accordance with contractual payment terms.~~

~~Common dividends from GE Capital to GE totaled 0, 0 and $4,105 million (including cash dividends of $4,016 million) for the years ended December 31, 2019, 2018 and 2017, respectively.~~

NOTE 17. SHARE-BASED ~~COMPENSATION~~COMPENSATION.

We grant stock options, restricted stock units and performance share units to employees under the 2007 and 2022 Long-Term Incentive ~~Plan.~~Plans. Grants made under all plans must be approved by the Management Development and Compensation Committee of GE’s Board of Directors, which is composed entirely of independent directors. We record compensation expense for awards expected to vest over the vesting period. We estimate forfeitures based on experience and adjust expense to reflect actual forfeitures. When options are exercised, ~~and~~ restricted stock units vest, and performance share awards are earned, we issue shares from treasury stock.

Stock options provide employees the opportunity to purchase GE shares in the future at the market price of our stock on the date the award is granted (the strike price). The options become exercisable over the vesting period, ~~(typically~~typically three or ~~five~~ years,) and expire 10 years from the grant date if not exercised. Restricted stock units (RSU) provide an employee with the right to receive ~~shares~~one share of GE stock when the restrictions lapse over the vesting period. Upon vesting, each RSU is converted into one share of GE common stock ~~on a 1-for-one basis.~~for each unit. Performance share units (PSU) and performance shares provide an employee with the right to receive shares of GE stock based upon achievement of certain performance or market metrics. Upon vesting, ~~(if applicable),~~ each PSU earned is converted into shares of GE common ~~stock on a one-for-one basis.~~stock. We value stock options using a Black-Scholes option pricing model, RSUs using market price on grant date, and PSUs and performance shares using ~~both~~ market price on grant date and a Monte Carlo simulation as needed based on performance metrics.

WEIGHTED AVERAGE GRANT DATE FAIR VALUE
2019
2018
2017

Stock Options
$ 3.48
$ 3.00
$ 3.81
RSUs
10.12
13.96
24.89
PSUs
10.73
4.80
N/A


WEIGHTED AVERAGE GRANT DATE FAIR VALUE	2022		2021		2020
Stock options	$	34.03	$	40.64	$	28.64
RSUs	87.68		104.98		63.28
PSUs/Performance shares	95.40		108.51		63.28

Key assumptions used in the ~~Black Scholes~~Black-Scholes valuation for stock options include: risk free rates of ~~2.5%~~1.6%, ~~2.8%~~1.1%, and ~~2.3%~~1.0%, dividend yields of 0.4%, ~~2.3%~~0.3%, and ~~3.3%~~0.4%, expected volatility of ~~33%~~37%, ~~32%~~40%, and ~~28%~~36%, expected lives of ~~6.0~~6.8 years,, ~~5.9~~ 6.2 years,, and ~~6.3~~6.1 years,, and strike prices of ~~$10.00~~, ~~$12.13~~,$92.33, $105.12, and ~~$18.97~~$84.48 for ~~2019, 2018,~~ 2022, 2021, and ~~2017,~~2020, respectively.


STOCK-BASED COMPENSATION ACTIVITY	Stock options						RSUs
	Shares (in thousands)	Weighted average exercise price		Weighted average contractual term (in years)	Intrinsic value (in millions)		Shares (in thousands)	Weighted average grant date fair value		Weighted average contractual term (in years)	Intrinsic value (in millions)
Outstanding at January 1, 2022	38,414	$	144.97				8,057	$	77.90
Granted	435	92.33					4,110	87.68
Exercised	(951)	64.45					(1,630)	89.08
Forfeited	(266)	95.12					(850)	81.92
Expired	(6,609)	165.67					N/A	N/A
Outstanding at December 31, 2022	31,023	$	142.68	3.8	$	88	9,687	$	79.82	1.2	$	812
Exercisable at December 31, 2022	28,723	$	146.94	3.4	$	83	N/A	N/A		N/A	N/A
Expected to vest	2,151	$	90.14	7.7	$	5	8,476	$	80.03	1.2	$	710

STOCK-BASED COMPENSATION ACTIVITY Stock Options
RSUs
Shares (in millions)
Weighted average exercise price
Weighted average contractual term (in years) Intrinsic value (in millions)

Shares (in millions)
Weighted average grant date fair value
Weighted average contractual term (in years) Intrinsic value (in millions)

Outstanding at January 1, 2019 466
$ 19.59

29
$ 18.07

Spin-off adjustment (a) 17
N/A

1
N/A

Granted 34
10.00

16
10.12

Exercised (7 ) 9.36

(15 ) 17.04

Forfeited (11 ) 13.66

(3 ) 15.40

Expired (41 ) 17.24

N/A
N/A

Outstanding at December 31, 2019 458
$ 18.66
4.6 $ 185

28
$ 13.29
1.4 $ 315
Exercisable at December 31, 2019 335
$ 21.03
3.1 $ —

N/A
N/A
N/A N/A
Expected to vest 113
$ 12.36
8.5 $ 165

26
$ 13.45
1.3 $ 285

2022 FORM 10-K 72


~~(a)~~	In connection with the spin-off of GE Transportation and pursuant to the anti-dilution provisions of the 2007 Long Term Incentive Plan, the Company made adjustments to exercise price and the number of shares to preserve the intrinsic value of the awards prior to the separation. The adjustments to the stock-based compensation awards did not result in additional compensation expense.

Total outstanding target PSUs and performance shares at December 31, ~~2019~~2022 were ~~12 million~~3,667 thousand shares with a weighted average fair value of ~~$7.39.~~$78.31. The intrinsic value and weighted average contractual term of target PSUs and performance shares outstanding were ~~$128~~$307 million and 1.7 years, respectively.


	2022		2021		2020
Compensation expense (after-tax)(a)(b)	$	305	$	361	$	353
Cash received from stock options exercised	62		93		6
Intrinsic value of stock options exercised and RSU/PSUs vested	170		217		81

(a)~~2.3 years, respectively.~~ Unrecognized compensation cost related to unvested equity awards as of December 31, 2022 was $420 million, which will be amortized over a weighted average period of 1.0 year.

GE(b)Income tax benefit recognized in earnings was $17 million, $9 million and $10 million in 2022, 2021, and 2020, respectively.~~2019 FORM 10-K~~ 99



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

(In millions) 2019
2018
2017

Compensation expense (after-tax)(a)(b) $ 400
$ 336
$ 241
Cash received from stock options exercised 69
24
528
Intrinsic value of stock options exercised and RSUs vested

154
83
493


~~(a)~~	~~Unrecognized compensation cost related to unvested equity awards as of December 31, 2019 was $515 million, which will be amortized over a weighted average period of~~ ~~1.1 years.~~


~~(b)~~	~~Income tax benefit recognized in earnings was $20 million, $40 million and $138 million in 2019, 2018, and 2017, respectively.~~

NOTE 18. EARNINGS PER SHARE INFORMATION

2019
2018
2017
(In millions; per-share amounts in dollars) Diluted
Basic

Diluted
Basic

Diluted
Basic

Earnings (loss) from continuing operations for
  per-share calculation
$ 416
$ 416

$ (20,997 ) $ (20,997 )
$ (8,270 ) $ (8,270 )
Preferred stock dividends (460 ) (460 )
(447 ) (447 )
(436 ) (436 )
Earnings (loss) from continuing operations attributable to
common shareholders for per-share calculation $ (45 ) $ (45 )
$ (21,445 ) $ (21,445 )
$ (8,706 ) $ (8,706 )
Earnings (loss) from discontinued operations for
  per-share calculation
(5,396 ) (5,396 )
(1,372 ) (1,372 )
(251 ) (251 )
Net earnings (loss) attributable to GE common
  shareholders for per-share calculation
(5,440 ) (5,440 )
(22,809 ) (22,809 )
(8,944 ) (8,944 )

Shares of GE common stock outstanding 8,724
8,724

8,691
8,691

8,687
8,687
Employee compensation-related shares (including
stock options) and warrants(a)
—
—

—
—

—
—
Total average equivalent shares 8,724
8,724

8,691
8,691

8,687
8,687

Earnings (loss) from continuing operations $ (0.01 ) $ (0.01 )
$ (2.47 ) $ (2.47 )
$ (1.00 ) $ (1.00 )
Earnings (loss) from discontinued operations (0.62 ) (0.62 )
(0.16 ) (0.16 )
(0.03 ) (0.03 )
Net earnings (loss) (0.62 ) (0.62 )
(2.62 ) (2.62 )
(1.03 ) (1.03 )

Potentially dilutive securities(a)
450

420

119


	2022				2021				2020
(Earnings for per-share calculation, shares in millions, per-share amounts in dollars)	Diluted		Basic		Diluted		Basic		Diluted		Basic


Earnings (loss) from continuing operations	$	869	$	869	$	(3,326)	$	(3,326)	$	6,601	$	6,601
Preferred stock dividends	(289)		(289)		(237)		(237)		(474)		(474)
Accretion of redeemable noncontrolling interests, net of tax	—		—		(9)		(9)		(151)		(151)
Accretion of preferred share repurchase	4		4		—		—		—		—
Earnings (loss) from continuing operations attributable to common shareholders	584		584		(3,571)		(3,571)		5,975		5,975
Earnings (loss) from discontinued operations	(644)		(644)		(3,195)		(3,195)		(909)		(909)
Net earnings (loss) attributable to GE common shareholders	(60)		(60)		(6,766)		(6,766)		5,066		5,066

Shares of GE common stock outstanding	1,096		1,096		1,098		1,098		1,094		1,094
Employee compensation-related shares (including stock options)	6		—		—		—		1		—
Total average equivalent shares	1,101		1,096		1,098		1,098		1,095		1,094

Earnings (loss) from continuing operations	$	0.53	$	0.53	$	(3.25)	$	(3.25)	$	5.46	$	5.46
Earnings (loss) from discontinued operations	(0.58)		(0.59)		(2.91)		(2.91)		(0.83)		(0.83)
Net earnings (loss) per share	(0.05)		(0.06)		(6.16)		(6.16)		4.63		4.63

Potentially dilutive securities(a)	44				41				56

(a) ~~All outstanding~~Outstanding stock awards ~~are~~ not included in the computation of diluted earnings (loss) per share because their effect was ~~antidilutive due to the loss from continuing operations.~~antidilutive.

Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and, therefore, are included in the computation of earnings per share pursuant to the two-class method. For the ~~years~~year ended December 31, ~~2019, 2018 and 2017,~~2022, application of this treatment had an insignificant effect. For the year ended December 31, 2021, as a result of ~~excess dividends in respect to~~ the ~~current period earnings,~~loss from continuing operations, losses were not allocated to the participating securities. For the year ended December 31, 2020, application of this treatment had an insignificant effect.

NOTE 19. OTHER INCOME (LOSS)



	2022		2021		2020
Purchases and sales of business interests(a)	$	66	$	(40)	$	12,468
Licensing and royalty income	203		192		161
Equity method income	233		(96)		7
Investment in Baker Hughes realized and unrealized gain (loss)	912		938		(2,037)
Investment in and note with AerCap unrealized gain (loss)	(865)		711		—
Other net interest and investment income (loss)(b)	456		621		590
Other items	226		497		207
Total other income (loss)	$	1,231	$	2,823	$	11,396

(a) Included a pre-tax loss of $170 million related to the sale of our boiler manufacturing business in China in our Power segment in 2021. Included a pre-tax gain of $12,362 million on the sale of our BioPharma business in 2020. See Note 2 for further information.

(b) Included interest income associated with customer advances of $162 million, $167 million and $146 million in 2022, 2021 and 2020, respectively. See Note 8 for further information.

~~Earnings-per-share~~

2022 FORM 10-K 73

NOTE 20. RESTRUCTURING CHARGES AND SEPARATION COSTS

RESTRUCTURING AND OTHER CHARGES. This table is inclusive of all restructuring charges in our segments and at Corporate, and the charges are shown below for the business where they originated. Separately, in our reported segment results, significant, higher-cost restructuring programs are excluded from measurement of segment operating performance for internal and external purposes; those excluded amounts are ~~computed independently~~reported in Restructuring and other charges for ~~earnings (loss) from continuing operations, earnings (loss) from discontinued operations~~Corporate.



RESTRUCTURING AND OTHER CHARGES	2022		2021		2020
Workforce reductions	$	348	$	695	$	856
Plant closures & associated costs and other asset write-downs	615		145		332
Acquisition/disposition net charges and other	30		(21)		66
Total restructuring and other charges	$	993	$	819	$	1,254

Cost of equipment/services	$	250	$	394	$	570
Selling, general and administrative expenses	774		499		697
Other (income) loss	(31)		(75)		(13)
Total restructuring and other charges	$	993	$	819	$	1,254

Aerospace	$	20	$	70	$	397
Renewable Energy	177		204		213
Power	155		369		236
HealthCare	148		155		137
Corporate	494		20		270
Total restructuring and other charges	$	993	$	819	$	1,254
Restructuring and other charges cash expenditures	$	492	$	781	$	1,175

An analysis of changes in the liability for restructuring follows.



	2022		2021		2020
Balance at January 1	$	1,026	$	1,337	$	1,746
Additions	578		655		860
Payments	(385)		(670)		(997)
Remeasurement	(4)		(245)		(212)
Effect of foreign currency and other	(31)		(52)		(60)
Balance at December 31 (a)	$	1,183	$	1,026	$	1,337

(a) Includes actuarial determined post-employment severance benefits reserve of $475 million, $464 million and ~~net earnings (loss).~~$722 million as of December 31, 2022, 2021 and 2020, respectively.

For the year ended December 31, 2022, restructuring and other initiatives primarily included exit activities related to the restructuring program announced in the fourth quarter reflecting lower Corporate shared-service and footprint needs as GE HealthCare prepared to become independent. It also includes exit activities associated with the plan announced in October 2022 to undertake a restructuring program across our businesses planned to be part of GE Vernova, primarily reflecting the selectivity strategy to operate in fewer markets and to simplify and standardize product variants at Renewable Energy. We recorded total charges of $993 million, consisting of $416 million primarily in non-cash impairment, accelerated depreciation and other charges, not reflected in the table above, and $578 million primarily in employee workforce reduction and contract related charges, which are reflected in the table above. We incurred $492 million in cash outflows related to restructuring actions, primarily for employee severance payments.

For the year ended December 31, 2021, restructuring and other initiatives primarily included exit activities at our Power business related to our new coal build wind-down actions, which included the exit of certain product lines, closing certain manufacturing and office facilities and other workforce reduction programs. We recorded total charges of $819 million, consisting of $164 million primarily in non-cash impairment, accelerated depreciation and other charges, not reflected in the table above, and $655 million primarily in employee workforce reduction charges, which are reflected in the table above. We incurred $781 million in cash outflows related to restructuring actions, primarily for employee severance payments.

For the year ended December 31, 2020, restructuring and other initiatives primarily included actions related to the impacts of the COVID-19 pandemic on our Aerospace business and Corporate cost reduction programs, which included closing certain manufacturing and office facilities and other workforce reduction programs. We recorded total charges of $1,254 million, consisting of $394 million in non-cash asset impairments and other charges, not reflected in the table above, and $860 million primarily in workforce reduction charges, which are reflected in the table above. We incurred $1,175 million in cash outflows related to restructuring actions, primarily for employee severance payments.

SEPARATION COSTS. In November 2021, the company announced its plan to form three industry-leading, global public companies focused on the growth sectors of aviation, healthcare, and energy. As a result of this plan, we expect to incur separation, transition, and operational costs, which will depend on specifics of the ~~sum of per-share amounts from continuing operations and discontinued operations may not equal the total per-share amounts for net earnings.~~transactions.

2022 FORM 10-K 74

We incurred pre-tax separation costs of $973 million, primarily related to employee costs, costs to establish certain stand-alone functions and information technology systems, professional fees, and other transformation and transaction costs to transition to three stand-alone public companies, for the year ended December 31, 2022. These costs are presented as separation costs in our consolidated Statement of Earnings (Loss). In addition, we incurred $71 million of net tax benefit, including taxes associated with planned legal entity restructuring and changes to indefinite reinvestment of foreign earnings, for the year ended December 31, 2022. We spent $261 million in cash for the year ended December 31, 2022.

NOTE ~~19. OTHER INCOME~~

(In millions) 2019
2018
2017

Purchases and sales of business interests(a) $ 3
$ 1,234
$ 1,024
Licensing and royalty income 256
218
188
Associated companies 206
21
208
Net interest and investment income(b) 1,220
562
358
Other items 515
282
115
GE 2,200
2,317
1,893
Eliminations 22
4
189
Total $ 2,222
$ 2,321
$ 2,083

~~(a)~~

Included a pre-tax gain of $224 million on the sale of ServiceMax partially offset by charges to the valuation allowance on businesses classified as held for sale of $245 million in 2019. Included pre-tax gains of $737 million on the sale of Distributed Power, $681 million on the sale of Value-Based Care and $267 million on the sale of Industrial Solutions, partially offset by charges to the valuation allowance on businesses classified as held for sale of $554 million in 2018. Included a pre-tax gain of $1,931 million on the sale of our Water business, partially offset by charges to the valuation allowance on businesses classified as held for sale of $1,000 million in 2017. See Note 2 for further information.


~~(b)~~	Included unrealized gain of $793 million related to our interest in Baker Hughes in 2019. Included interest income associated with customer advances of $143 million, $136 million and $105 million in 2019, 2018 and 2017, respectively. See Notes 1, 3 and 9.

GE~~2019 FORM 10-K~~ ~~100~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~NOTE 20.~~21. FAIR VALUE MEASUREMENTS

~~RECURRING FAIR VALUE MEASUREMENTS.~~Our assets and liabilities measured at fair value on a recurring basis include ~~investment~~debt securities mainly supporting obligations to annuitants and policyholders in our run-off insurance operations, ~~derivatives,~~our equity interests in AerCap and ~~our remaining equity interest in~~ Baker ~~Hughes.~~ Hughes, and derivatives.


ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS
	Level 1				Level 2				Level 3(a)				Netting adjustment(d)				Net balance(b)
December 31	2022		2021		2022		2021		2022		2021		2022		2021		2022		2021
Investment securities	$	6,754	$	11,434	$	30,483	$	35,849	$	6,421	$	7,222	$	—	$	—	$	43,657	$	54,506
Derivatives	—		—		1,340		1,357		1		17		(859)		(691)		482		684
Total assets	$	6,754	$	11,434	$	31,823	$	37,207	$	6,421	$	7,239	$	(859)	$	(691)	$	44,139	$	55,189

Derivatives	$	—	$	—	$	1,444	$	891	$	7	$	1	$	(862)	$	(681)	$	589	$	212
Other(c)	—		—		627		863		—		—		—		—		627		863
Total liabilities	$	—	$	—	$	2,071	$	1,754	$	7	$	1	$	(862)	$	(681)	$	1,216	$	1,075

ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS December 31 (In millions)

Level 1 Level 2 Level 3(a) Netting
adjustment(d) Net balance(b)
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018

Investment securities $ 9,704
$ 88
$ 33,606
$ 29,408
$ 5,210
$ 4,013
$ —
$ —
$ 48,521
$ 33,508
Derivatives —
—
2,561
2,197
11
8
(1,832 ) (2,001 ) 740
205
Total assets $ 9,704
$ 88
$ 36,167
$ 31,605
$ 5,221
$ 4,021
$ (1,832 ) $ (2,001 ) $ 49,261
$ 33,713

Derivatives $ —
$ —
$ 834
$ 1,814
$ 19
$ 6
$ (651 ) $ (1,234 ) $ 202
$ 586
Other(c) —
—
807
722
—
—
—
—
807
722
Total liabilities $ —
$ —
$ 1,641
$ 2,535
$ 19
$ 6
$ (651 ) $ (1,234 ) $ 1,009
$ 1,308
(a)Included $3,548 million of U.S. corporate debt securities, $1,386 million of Mortgage and asset-backed debt securities, and the $900 million AerCap note at December 31, 2022. Included $4,228 million of U.S. corporate debt securities, $1,427 million of Mortgage and asset-backed debt securities, and the $993 million AerCap note at December 31, 2021.

~~(a)~~

~~Included debt securities classified within Level~~

(b)See Notes 3 and 22 for further information on the composition of our investment securities and derivative portfolios.

(c)Primarily represents the liabilities associated with certain of our deferred incentive compensation plans.

(d)The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk.

~~$3,977 million of U.S. corporate and $330 million~~ ~~of Government and agencies securities at December 31, 2019, and~~ ~~$3,498 million~~ ~~of U.S. corporate and~~ ~~$292 million~~ ~~of Government and agencies securities at December 31, 2018.~~


~~(b)~~	~~See Notes 3 and 21 for further information on the composition of our investment securities and derivative portfolios.~~


~~(c)~~	~~Primarily represents the liabilities associated with certain of our deferred incentive compensation plans.~~


~~(d)~~	The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk.

LEVEL 3 INSTRUMENTS. The majority of our Level 3 balances comprised debt securities classified as available-for-sale with changes in fair value recorded in ~~other~~Other comprehensive income.

(In millions) Balance at
January 1
Net realized/unrealized gains(losses)(a)
Purchases(b)
Sales & Settlements
Transfers
into
Level 3
Transfers
out of
Level 3
Balance at
December 31

2019
Investment securities $ 4,013
$ 399
$ 2,159
$ (1,308 ) $ —
$ (53 ) $ 5,210
2018
Investment securities $ 4,109
$ (231 ) $ 729
$ (333 ) $ 2
$ (262 ) $ 4,013


~~(a)~~	~~Primarily included net unrealized gains (losses) of $404 million and $(231) million in other comprehensive income for the years ended December 31, 2019 and December 31, 2018, respectively.~~


~~(b)~~	~~Included $975 million and $615 million of U.S. corporate debt securities for the years ended December 31, 2019 and 2018, respectively.~~


	Balance at January 1		Net realized/unrealized gains(losses)(a)		Purchases(b)		Sales & Settlements		Transfers into Level 3		Transfers out of Level 3		Balance at December 31
2022
Investment securities	$	7,222	$	(1,002)	$	973	$	(628)	$	57	$	(201)	$	6,421




2021
Investment securities	$	5,866	$	(261)	$	2,589	$	(943)	$	6	$	(35)	$	7,222

~~NONRECURRING FAIR VALUE MEASUREMENTS.~~ (a)~~The following table represents fair values (as measured at~~Primarily included net unrealized gains (losses) of $(994) million and $(288) million in Other comprehensive income for the ~~time~~years ended December 31, 2022 and 2021, respectively.

(b)Included $508 million of U.S. corporate debt securities and $302 million of Mortgage and asset-backed debt securities for the year ended December 31, 2022. Included $1,084 million of Mortgage and asset-backed debt securities and $1,000 million AerCap senior note received as partial consideration on the completion of the ~~adjustment)~~GECAS transaction for ~~those assets remeasured to fair value on a nonrecurring basis during~~ the ~~fiscal~~ year ~~and were still held at~~ended December 31, ~~2019 and 2018.~~ 2021.

Remeasured during the years ended December 31
2019 2018
(In millions) Level 2 Level 3 Level 2 Level 3

Financing receivables and financing receivables held for sale $ —
$ 21
$ —
$ 47
Equity securities without readily determinable fair value and equity method investments —
306
479
874
Long-lived assets 12
412
152
422
Goodwill —
—
—
2,440
Total $ 12
$ 739
$ 631
$ 3,783

GE~~2019 FORM 10-K~~ ~~101~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~At December 31, 2019 and 2018, certain~~The majority of these Level 3 ~~assets with recurring~~securities are fair ~~value measurements of $4,933 million and $3,893 million, respectively, and nonrecurring measurements of $377 million and $483 million, respectively, were~~ valued using non-binding broker quotes or other third-party ~~sources.~~ ~~These fair value measurements~~sources that utilize a number of different unobservable inputs not subject to meaningful aggregation. ~~In addition, certain equity securities without readily determinable fair value and equity method investments with a fair value totaling~~

~~$36 million~~ ~~and~~ ~~$572 million~~ at December 31, 2019 and 2018, respectively, were valued using the income approach, for which discount rates were determined based on inputs that market participants would use when pricing investments, including credit and liquidity risk. An increase in the discount rates would result in a decrease in the fair values. The range of discount rates used to price these investments was ~~12%~~-~~16%, with a weighted average of~~ ~~15%~~ ~~and~~ ~~6.5%~~-~~35%, with a weighted average of~~ ~~8.9%~~ ~~at December 31, 2019 and 2018, respectively. Other Level 3 assets with recurring and nonrecurring fair value measurements are not material individually or in the aggregate.~~

NOTE ~~21.~~22. FINANCIAL ~~INSTRUMENTS~~INSTRUMENTS.

The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and the vast majority of our liabilities’ fair value are considered Level 2.


		December 31, 2022				December 31, 2021
		Carrying amount (net)		Estimated fair value		Carrying amount (net)		Estimated fair value
Assets	Loans and other receivables	$	2,695	$	2,560	$	2,706	$	2,853

Liabilities	Borrowings (Note 10)	$	32,350	$	31,410	$	35,186	$	41,207
	Investment contracts (Note 12)	1,771		1,822		1,909		2,282

December 31, 2019 December 31, 2018
(In millions) Carrying
amount
(net)
Estimated
fair value
Carrying
amount
(net)
Estimated
fair value

Assets

Loans and other receivables $ 4,113
$ 4,208
$ 8,811
$ 8,829
Liabilities

Borrowings (Note 11) $ 90,882
$ 97,754
$ 103,599
$ 100,492
Investment contracts (Note 12) 2,191
2,588
2,388
2,630

~~Unlike the carrying amount, estimated fair value of borrowings included $1,106 million and $1,324 million of accrued interest at~~

~~December 31, 2019 and 2018, respectively.~~

Assets and liabilities that are reflected in the accompanying financial statements at fair value are not included in the above disclosures; such items include cash and equivalents, investment securities and derivative financial instruments.

2022 FORM 10-K 75

DERIVATIVES AND HEDGING. Our policy requires that derivatives are used solely for managing risks and not for speculative purposes. ~~Total gross notional was $98,018 million ($55,704 million in GE Capital~~We use derivatives to manage currency risks related to foreign exchange, and ~~$42,314 million in GE) and $117,104 million ($79,082 million in GE Capital and $38,022 million in GE) at December 31, 2019 and 2018, respectively. GE Capital notional relates primarily to managing~~ interest rate and currency risk between financial assets and liabilities, and ~~GE notional relates primarily to managing currency risk.~~certain equity investments and commodity prices.

~~GE and GE Capital~~We use cash flow hedges primarily to reduce or eliminate the effects of foreign exchange rate ~~changes. In addition, GE Capital uses~~changes, net investment hedges to hedge investments in foreign operations as well as fair value hedges to hedge the effects of interest rate and currency changes on debt it has ~~issued as well as net investment hedges to hedge investments in foreign operations. Both GE and GE Capital~~issued. We also use derivatives not designated as hedges from an accounting standpoint (and therefore we do not apply hedge accounting to the relationship) but otherwise serve the same economic purpose as other hedging arrangements. We use economic hedges when we have exposures to currency exchange risk for which we are unable to meet the requirements for hedge accounting or when changes in the carrying amount of the hedged item are already recorded in earnings in the same period as the derivative making hedge accounting unnecessary. Even though the derivative is an effective economic hedge, there may be a net effect on earnings in each period due to differences in the timing of earnings recognition between the derivative and the hedged item.

GE~~2019 FORM 10-K~~ ~~102~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

The table below provides additional information about how derivatives are reflected in our financial statements. Derivative assets and liabilities are recorded at fair value exclusive of interest earned or owed on interest rate derivatives, which is presented separately in our consolidated Statement of Financial Position. Cash collateral and securities held as collateral represent assets that have been provided by our derivative counterparties as security for amounts they owe us (derivatives that are in an asset position).

December 31, 2019 December 31, 2018
(In millions) Gross Notional
All other assets
All other liabilities
Gross Notional
All other assets
All other liabilities

Interest rate contracts $ 23,918
$ 1,636
$ 11
$ 22,904
$ 1,335
$ 23
Currency exchange contracts 7,044
99
46
7,854
175
114
Derivatives accounted for as hedges $ 30,961
$ 1,734
$ 57
$ 30,758
$ 1,511
$ 138

Interest rate contracts $ 3,185
$ 18
$ 12
$ 6,198
$ 28
$ 2
Currency exchange contracts 62,165
697
744
77,544
653
1,472
Other contracts 1,706
123
40
2,604
13
209
Derivatives not accounted for as hedges $ 67,056
$ 838
$ 796
$ 86,346
$ 695
$ 1,682

Gross derivatives $ 98,018
$ 2,572
$ 853
$ 117,104
$ 2,205
$ 1,820

Netting and credit adjustments $ (546 ) $ (546 ) $ (959 ) $ (967 )
Cash collateral adjustments (1,286 ) (105 ) (1,042 ) (267 )
Net derivatives recognized in Statement of Financial Position $ 740
$ 202
$ 205
$ 586

Net accrued interest $ 182
$ 1
$ 205
$ 1
Securities held as collateral (469 ) —
(235 ) —
Net amount $ 452
$ 203
$ 174
$ 587


FAIR VALUE OF DERIVATIVES	December 31, 2022						December 31, 2021
	Gross Notional		All other assets		All other liabilities		Gross Notional		All other assets		All other liabilities
Currency exchange contracts	$	8,484	$	164	$	312	$	7,214	$	114	$	122
Interest rate contracts							2,071		75		4
Derivatives accounted for as hedges	$	8,484	$	164	$	312	$	9,285	$	188	$	126

Currency exchange contracts	$	56,950	$	977	$	1,118	$	64,097	$	794	$	756
Interest rate contracts	43		—		1		1,369		5		1
Other contracts	914		200		20		1,674		387		10
Derivatives not accounted for as hedges	$	57,907	$	1,178	$	1,139	$	67,140	$	1,186	$	767

Gross derivatives	$	66,392	$	1,341	$	1,451	$	76,425	$	1,374	$	893

Netting and credit adjustments			$	(859)	$	(862)			$	(637)	$	(639)
Cash collateral adjustments			—		—				(54)		(42)
Net derivatives recognized in statement of financial position			$	482	$	589			$	684	$	212

Net accrued interest			$	—	$	(4)			$	10	$	5
Securities held as collateral			—		—				(2)		—
Net amount			$	482	$	585			$	691	$	217

Fair value of derivatives in our consolidated Statement of Financial Position excluded accrued interest. Cash collateral adjustments excluded excess collateral received and posted of $104 million and $603 million at December 31, 2019, respectively, and $3 million and $439 million at December 31, 2018, respectively. Securities held as collateral excluded excess collateral received with a fair value of $27 million and 0 at December 31, 2019 and 2018, respectively.

FAIR VALUE HEDGES.~~We use derivatives~~ As of December 31, 2022, all fair value hedges were terminated due to ~~hedge~~exposure management actions, including debt maturities. Gains (losses) associated with the ~~effects~~terminated hedging relationships will continue to amortize into interest expense until the bonds mature. The cumulative amount of ~~interest rate and currency exchange rate changes~~hedging adjustments of $1,240 million (all on ~~our borrowings.~~discontinued hedging relationships) was included in the carrying amount of the previously hedged liability of $9,933 million. At December 31, ~~2019,~~2021, the cumulative amount of hedging adjustments of ~~$4,234~~$2,072 million (including ~~$2,458~~$2,073 million on discontinued hedging relationships) was included in the carrying amount of the previously hedged liability of $54,723 million. At December 31, 2018, the cumulative amount of hedging adjustments of $3,255 million (including $2,731 million on discontinued hedging relationships) was included in the carrying amount of the hedged liability of $59,651$16,819 million. The cumulative amount of hedging adjustments was primarily recorded in long-term borrowings.

CASH FLOW ~~HEDGES.~~ ~~We use cash flow hedging primarily~~HEDGES AND NET INVESTMENT HEDGES


	Gain (loss) recognized in AOCI for the year ended December 31
		2022		2021		2020
Cash flow hedges(a)		$	(206)	$	(86)	$	(61)
Net investment hedges(b)		230		487		(675)

(a) Primarily related to ~~reduce or eliminate the effects~~currency exchange contracts.

(b) The carrying value of ~~foreign exchange rate changes on purchase and sale contracts in our industrial businesses and to convert~~ foreign currency debt ~~that we have issued in our financial services business back to our functional currency.~~ designated as net investment hedges was $3,329 million and $4,061 million at December 31, 2022 and 2021, respectively. The total reclassified from AOCI into earnings was zero, $(87) million and zero for the years ended December 31, 2022, 2021 and 2020, respectively.

Changes in the fair value of cash flow hedges are recorded in ~~Accumulated other comprehensive income (AOCI) in our consolidated Statement of Financial Position~~AOCI and recorded in earnings in the period in which the hedged transaction occurs. ~~The gain (loss) recognized in AOCI was $25 million, $(154) million and $199 million for the years ended December~~ ~~31, 2019,~~ ~~2018 and 2017, respectively. The gain (loss) reclassified from AOCI to earnings was $(60) million, $(102) million and $149 million for the years ended December~~ ~~31, 2019,~~ ~~2018 and 2017, respectively. These amounts were primarily related to currency exchange and interest rate contracts.~~

The total amount in AOCI related to cash flow hedges of forecasted transactions was a ~~$110~~$111 million ~~gain~~loss at December 31, ~~2019.~~2022. We expect to reclassify ~~$16~~$106 million of ~~gain~~loss to earnings in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. For the years ended December 31, 2019, 2018 and 2017, we recognized insignificant gains and losses related to hedged forecasted transactions and firm commitments that did not occur by the end of the originally specified period. At December 31, ~~2019, 2018 and 2017,~~2022, the maximum term of derivative instruments that hedge forecasted transactions was ~~13 years, 14 years and 15 years, respectively.~~

approximately 12 years.

~~NET INVESTMENT HEDGES.~~

2022 FORM 10-K We invest in foreign operations that conduct their financial services activities in currencies other than the U.S. dollar. We hedge the currency risk associated with those investments primarily using non-derivative instruments such as debt denominated in a foreign currency and short-term currency exchange contracts under which we receive U.S. dollars and pay foreign currency. For these hedges, the portion of the fair value changes of the derivatives or debt instruments that relates to changes in spot currency exchange rates is recorded in a separate component of AOCI. The portion of the fair value changes of the derivatives related to differences between spot and forward rates is recorded in earnings each period. The amounts recorded in AOCI affect earnings if the hedged investment is sold, substantially liquidated, or control is lost.76

GE~~2019 FORM 10-K~~ ~~103~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

The total gain (loss) recognized in AOCI on hedging instruments for the years ended December 31, 2019, 2018 and 2017 was $120 million, $646 million and $(1,852) million, respectively, comprising $(36) million, $162 million and $(277) million on currency exchange contracts and $156 million, $484 million and $(1,575) million on foreign currency debt, respectively. The total gain (loss) excluded from assessment and recognized in earnings was $27 million, $23 million and $19 million for the years ended December 31, 2019, 2018 and 2017, respectively.

~~The carrying value of foreign currency debt designated as net investment hedges was $9,190 million, $12,458 million and $13,028 at~~

December 31, 2019, 2018 and 2017 respectively. The total reclassified from AOCI into earnings was $7 million, $(1) million and $125 million for the years ended December 31, 2019, 2018 and 2017, respectively.

~~EFFECTS OF DERIVATIVES ON EARNINGS.~~ All derivatives are marked to fair value on our balance sheet, whether they are designated in a hedging relationship for accounting purposes or are used as economic hedges. For derivatives not designated as hedging instruments, substantially all of the gain or loss recognized in earnings is offset by either the current period change in value of underlying exposures which is recorded in earnings in the current period or a future period when the recording of the exposures occur.

The table below presents the ~~effect~~gains (losses) of our derivative financial instruments in the ~~consolidated~~ Statement of Earnings (Loss):


	2022										2021

	Revenues		Debt Extinguishment Costs		Interest Expense		SG&A		Other(a)		Revenues		Debt Extinguishment Costs		Interest Expense		SG&A		Other(a)
	$	76,555	$	465	$	1,607	$	12,781	$	56,766	$	74,196	$	6,524	$	1,876	$	11,716	$	56,719

Effect of cash flow hedges	$	(23)	$	—	$	(20)	$	(2)	$	(34)	$	27	$	—	$	(40)	$	1	$	(67)

Hedged items					127								70		1,413
Derivatives designated as hedging instruments					(143)								(66)		(1,549)
Effect of fair value hedges					$	(16)							$	3	$	(135)

Currency exchange contracts	$	5	$	—	$	—	$	(133)	$	(737)	$	(6)	$	(16)	$	(18)	$	(127)	$	44
Interest rate, commodity and equity contracts(b)	1		159		(4)		(135)		161		1		52		(3)		183		191
Effect of derivatives not designated as hedges	$	7	$	159	$	(4)	$	(269)	$	(575)	$	(5)	$	35	$	(22)	$	56	$	235

2019 2018
(In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income

Total amounts presented in
  the consolidated Statement
  of Earnings (Loss)
$ 95,214
$ 70,029
$ 4,227
$ 13,949
$ 2,222
$ 97,012
$ 72,818
$ 4,766
$ 14,643
$ 2,321

Total effect of cash flow
  hedges
$ 5
$ (24 ) $ (37 ) $ (3 ) $ —
$ (53 ) $ (10 ) $ (39 ) $ —
$ —

Hedged items $ (1,276 ) $ 617

Derivatives designated as
  hedging instruments
1,229
(724 )
Total effect of fair value
  hedges
$ (48 ) $ (107 )

Interest rate contracts $ (24 ) $ —
$ (50 ) $ —
$ —
$ (72 ) $ —
$ (4 ) $ —
$ —
Currency exchange contracts 180
(35 ) —
(6 ) (59 ) (1,303 ) (520 ) —
—
(47 )
Other (2 ) —
195
—
1
(1 ) —
(95 ) —
(10 )
Total effect of derivatives
  not designated as hedges
$ 154
$ (35 ) $ 145
$ (6 ) $ (58 ) $ (1,375 ) $ (520 ) $ (99 ) $ —
$ (56 )
(a) Amounts are inclusive of cost of sales and other income (loss).

(b) SG&A was primarily driven by hedges of deferred incentive compensation, Other Income (loss) by hedges of Baker Hughes equity sale, and Debt Extinguishment Costs by hedges of debt tenders. These hedging programs were to offset the earnings impact of the underlying.

COUNTERPARTY CREDIT RISK.Fair values of our derivatives can change significantly from period to period based on, among other factors, market movements and changes in our positions. We manage counterparty credit risk (the risk that counterparties will default and not make payments to us according to the terms of our agreements) on an individual counterparty basis. Where we have agreed to netting of derivative exposures with a counterparty, we net our exposures with that counterparty and apply the value of collateral posted to us to determine the exposure. We actively monitor these net exposures against defined limits and take appropriate actions in response, including requiring additional collateral. Our exposures to counterparties (including accrued interest), net of collateral we held, was ~~$368~~$308 million and ~~$95~~$564 million at December 31, ~~2019~~2022 and ~~2018,~~December 31, 2021, respectively. Counterparties' exposures to our derivative liability (including accrued interest), net of collateral posted by us, was ~~$159~~$505 million and ~~$571~~$159 million at December 31, ~~2019~~2022 and ~~2018,~~December 31, 2021, respectively.

NOTE ~~22.~~23. VARIABLE INTEREST ~~ENTITIES~~ENTITIES.

In ~~addition to the 3 VIEs detailed in Note 4,~~our Statement of Financial Position, we have ~~other consolidated VIEs with~~ assets of ~~$2,663~~$401 million and ~~$2,321~~$491 million and liabilities of ~~$1,137~~$206 million and ~~$1,611~~$206 million at December 31, ~~2019~~2022 and ~~2018, respectively. The increase~~December 31, 2021, respectively, in consolidated ~~VIE assets is primarily due~~Variable Interest Entities (VIEs). These entities were created to help our customers facilitate or finance the ~~formation~~purchase of ~~the aeroderivative JV described in Note 2. These entities~~GE equipment and services and have no features that could expose us to losses that would significantly exceed the difference between the consolidated assets and liabilities. ~~Substantially all the assets of our consolidated VIEs at December 31, 2019 can only be used to settle the liabilities of those VIEs.~~

Our investments in unconsolidated VIEs were ~~$1,937~~$5,917 million and ~~$2,346~~$5,034 million at December 31, ~~2019~~2022 and ~~2018,~~December 31, 2021, respectively. ~~These~~Of these investments, ~~are primarily owned by GE Capital businesses, $621~~$1,481 million and ~~$1,670~~$1,481 million ~~of which~~ were owned by EFS, ~~comprised of~~comprising equity method investments, primarily renewable energy tax equity investments, at December 31, 2022 and ~~$896~~December 31, 2021, respectively. In addition, $4,219 million and ~~0 of which~~$3,333 million were owned by our run-off insurance operations, primarily comprising ~~investment securities,~~of equity method investments at December 31, ~~2019~~2022 and ~~2018,~~December 31, 2021, respectively. The increase in investments in unconsolidated VIEs in our run-off insurance operations reflects ~~implementation of our revised reinvestment plan which incorporates the introduction of~~ strategic initiatives to invest in higher-yielding asset classes. Our maximum exposure to loss in respect of unconsolidated VIEs is increased by our commitments to make additional investments in these entities described in Note ~~23.~~24.

GE~~2019 FORM 10-K~~ ~~104~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

NOTE ~~23.~~24. COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES

COMMITMENTS.The GECAS business within our Capital segment has placed multiple-year orders for various Boeing, Airbus and other aircraft manufacturers with list prices approximating $36,313 million, excluding pre-delivery payments made in advance, (including 366 new aircraft with delivery dates of 16% in 2020, 19% in 2021 and 65% in 2022 through 2026) and secondary orders with airlines for used aircraft of approximately $2,419 million (including 55 used aircraft with delivery dates of 71% in 2020, 20% in 2021 and 9% in 2022) at December 31, 2019. When we purchase aircraft, it is at a contractual price, which is usually less than the aircraft manufacturer’s list price. As of December 31, 2019, we have made $2,934 million of pre-delivery payments to aircraft manufacturers.

~~GE Capital~~ We had total investment commitments of ~~$2,648~~$3,877 million at December 31, ~~2019.~~2022. The commitments primarily comprise ~~project financing investments in thermal and wind energy projects of $1,225 million and~~ investments by our run-off insurance operations in investment securities and other assets of ~~$1,394~~$3,778 million and included within these commitments are obligations to make ~~additional~~ investments in unconsolidated VIEs of ~~$217 million and $996 million, respectively.~~$3,773 million. See Note 2223 for further information.

As of December 31, ~~2019,~~2022, in our ~~Aviation~~Aerospace segment, we have committed to provide financing assistance of ~~$2,269~~$2,390 million of future customer acquisitions of aircraft equipped with our engines.

GUARANTEES.At December 31, ~~2019,~~2022, we were committed under the following guarantee arrangements:

Credit ~~Support.~~support. ~~At December 31, 2019, we~~We have provided ~~$1,565~~$1,143 million of credit support on behalf of certain customers or associated companies, predominantly joint ventures and partnerships, using arrangements such as standby letters of credit and performance guarantees. The liability for such credit support was ~~$35 million at December 31, 2019.~~ $32 million.

Indemnification ~~Agreements –~~agreements - Continuing ~~Operations~~Operations.~~. At December 31, 2019, we~~ We have ~~$1,611~~$534 million of ~~other~~ indemnification commitments, including representations and warranties in sales of ~~businesses or~~business assets, for which we recorded a liability of ~~$192~~$80 million.

Indemnification ~~Agreements –~~agreements - Discontinued ~~Operations.~~Operations ~~At December 31, 2019, we~~. We have provided specific indemnities to buyers of ~~GE Capital’s~~ assets of our business that, in the aggregate, represent a maximum potential claim of ~~$1,032~~$717 million with ~~the~~ related reserves of $142 million, which incorporates our evaluation of risk and the likelihood of making payments under the indemnities. The recognized liabilities represent the estimated fair value of the indemnities when issued as adjusted for any subsequent probable and estimable losses. Approximately 44% of these exposures are expected to be resolved within the next year, while substantially all indemnifications are expected to be resolved within the next ten years.$77 million.

2022 FORM 10-K 77

PRODUCT WARRANTIES.We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates are forecasts that are based on the best available information, mostly historical claims experience, claims costs may differ from amounts provided. An analysis of changes in the liability for product warranties follows.

(In millions) 2019
2018
2017

Balance at January 1 $ 2,192
$ 2,103
$ 1,743
Current-year provisions 713
945
929
Expenditures (715 ) (788 ) (708 )
Other changes (26 ) (69 ) 139
Balance at December 31 $ 2,165
$ 2,192
$ 2,103


	2022		2021		2020
Balance at January 1	$	1,891	$	2,054	$	2,165
Current-year provisions(a)	1,319		862		788
Expenditures	(967)		(945)		(913)
Other changes	(90)		(81)		14
Balance at December 31	$	2,153	$	1,891	$	2,054

(a) The increase in current-year provisions is primarily related to Renewable Energy, which was substantially all due to changes in estimates on pre-existing warranties and related to the deployment of repairs and other corrective measures.

GE
~~2019 FORM 10-K~~ ~~105~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

LEGAL MATTERS. InIn the normal course of our business, we are involved from time to time in various arbitrations, class actions, commercial litigation, investigations and other legal, regulatory or governmental actions, including the significant matters described below that could have a material impact on our results of operations. In many proceedings, including the specific matters described below, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the size or range of the possible loss, and accruals for legal matters are not recorded until a loss for a particular matter is considered probable and reasonably estimable. Given the nature of legal matters and the complexities involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors, the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery or other procedural considerations will affect the outcome, the settlement posture of other parties and other factors that may have a material effect on the outcome. For these matters, unless otherwise specified, we do not believe it is possible to provide a meaningful estimate of loss at this time. Moreover, it is not uncommon for legal matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated.

~~WMC.~~During the fourth quarter of 2007, we completed the sale of WMC, our U.S. mortgage business. WMC substantially discontinued all new loan originations by the second quarter of 2007, and was never a loan servicer. In connection with the sale, WMC retained certain representation and warranty obligations related to loans sold to third parties prior to the disposal of the business and contractual obligations to repurchase previously sold loans that had an early payment default. All claims received by WMC for early payment default have either been resolved or are no longer being pursued. The remaining claims that were active during 2019 were brought by securitization trustees or administrators seeking recovery from WMC for alleged breaches of representations and warranties on mortgage loans that serve as collateral for residential mortgage-backed securities (RMBS). These claims were resolved as part of the Chapter 11 bankruptcy case described below.

In April 2019, WMC commenced a case under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. WMC subsequently filed a Chapter 11 plan seeking an efficient and orderly resolution of all claims, demands, rights, and/or liabilities to be asserted by or against WMC as the debtor. GE Capital provided approximately $14 million of debtor-in-possession financing to fund administrative expenses associated with the Chapter 11 proceeding. In August 2019, we reached a settlement with WMC to resolve potential claims that WMC may have had against certain GE entities. This settlement was incorporated into and approved as part of the Chapter 11 plan that the Bankruptcy Court approved in November 2019. The Chapter 11 plan also incorporated the resolution of the claims at issue in the previously reported lawsuit that the TMI Trust Company (TMI), as successor to Law Debenture Trust Company of New York, brought against WMC in the United States District Court for the District of Connecticut with respect to approximately $800 million of mortgage loans. The Chapter 11 plan became effective in December 2019, and GE Capital’s membership interests in WMC were extinguished pursuant to the plan. In total, we paid approximately $207 million to WMC in connection with the settlement of potential claims that WMC may have had against us, as discussed above. As of December 31, 2019, we had no further liabilities to WMC. As a condition to the settlement agreement described above, GE Capital provided WMC $39.5 million of exit financing that is secured by other remaining assets of WMC.

Alstom legacy legal matters. ~~On November 2,~~In 2015, we acquired the ~~Thermal,~~Steam Power, Renewables and Grid businesses from ~~Alstom. Prior~~Alstom, which prior to ~~the~~our acquisition ~~the seller was~~were the subject of 2 significant cases involving anti-competitive activities and improper ~~payments: (1) in January 2007, Alstom was fined €65~~payments. We had reserves of $455 million ~~by the European Commission for participating in a gas insulated switchgear cartel that operated from 1988 to 2004 (that fine was later reduced to €59 million),~~ and ~~(2) in~~$567 million at December ~~2014, Alstom pled guilty in the United States to multiple violations of the Foreign Corrupt Practices Act~~31, 2022 and ~~paid a criminal penalty of $772 million. As part of GE’s accounting for the acquisition, we established a reserve amounting to $858 million~~2021, respectively, for legal and compliance matters related to the legacy business practices that were the subject of ~~these and related~~ cases in various ~~jurisdictions, including the previously reported legal proceedings~~jurisdictions. Allegations in ~~Israel and Slovenia that are described below. The reserve balance was $875 million and $889 million at December 31, 2019 and 2018, respectively.~~

~~Regardless of jurisdiction, the allegations~~these cases relate to claimed anti-competitive conduct or improper payments in the pre-acquisition period as the source of legal violations ~~and/~~or damages. Given the significant litigation and compliance activity related to these matters and our ongoing efforts to resolve them, it is difficult to assess whether the disbursements will ultimately be consistent with the reserve established. The estimation of this reserve ~~involved significant judgment and~~ may not reflect the full range of uncertainties and unpredictable outcomes inherent in litigation and investigations of this nature, and at this time we are unable to develop a meaningful estimate of the range of reasonably possible additional losses beyond the amount of this reserve. ~~Damages sought may include disgorgement of profits on the underlying business transactions, fines and/or penalties, interest, or other forms of resolution.~~ Factors that can affect the ultimate amount of losses associated with these and related matters include the way cooperation is assessed and valued, prosecutorial discretion in the determination of damages, formulas for determining disgorgement, fines ~~and~~or penalties, the duration and amount of legal and investigative resources applied, political and social influences within each jurisdiction, and tax consequences of any settlements or previous deductions, among other considerations. Actual losses arising from claims in these and related matters could exceed the amount provided.

GE~~2019 FORM 10-K~~ ~~106~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

In September 2013, the Israeli Antitrust Authority issued a decision whereby Alstom, Siemens AG and ABB Ltd. were held liable for an alleged anti-competitive arrangement in the gas-insulated switchgears market in Israel. While there was no fine in connection with that decision, claimants brought civil actions in 2013 seeking damages of approximately $950 million and $600 million, respectively, related to the alleged conduct underlying the decision that are pending before the Central District Court in Israel. The parties have been working to finalize a settlement, which is subject to court approval, and we anticipate a decision from the court in the first half of 2020.

In connection with alleged improper payments by Alstom relating to contracts won in 2006 and 2008 for work on a state-owned power plant in Šoštanj, Slovenia, the power plant owner in January 2017 filed an arbitration claim for damages of approximately $430 million before the International Chamber of Commerce Court of Arbitration in Vienna, Austria. In February 2017, a government investigation in Slovenia of the same underlying conduct proceeded to an investigative phase overseen by a judge of the Celje District Court.

Shareholder and related lawsuits.Since November 2017, several putative shareholder class actions under the federal securities laws have been filed against GE and certain affiliated individuals and consolidated into a single action currently pending in the U.S. District Court for the Southern District of New York (the Hachem case). In October 2019, the lead plaintiff filed a fifth amended consolidated class action complaint naming as defendants GE and current and former GE executive officers. It alleges violations of Sections 10(b) and 20(a) and Rule 10b-5 of the Securities Exchange Act of 1934 related to insurance reserves and accounting for long-term service agreements and seeks damages on behalf of shareholders who acquired GE stock between February 27, 2013 and January 23, 2018. GE filed a motion to dismiss in December 2019. In January 2021, the court granted defendants’ motion to dismiss as to the majority of the claims. Specifically, the court dismissed all claims related to insurance reserves, as well as all claims related to accounting for long-term service agreements, with the exception of certain claims about historic disclosures related to factoring in the Power business that survive as to GE and its former CFO Jeffrey S. Bornstein. All other individual defendants have been dismissed from the case. In April 2022, the court granted the plaintiffs' motion for class certification for shareholders who acquired stock between February 26, 2016 and January 23, 2018, and granted the plaintiffs’ request to amend their complaint. In September 2022, GE filed a motion for summary judgment on the plaintiffs' remaining claims.

Since February 2018, multiple shareholder derivative lawsuits have ~~also~~ been filed against current and former GE executive officers and members of GE’s Board of Directors and GE (as nominal defendant). ~~NaN shareholder derivative lawsuits are currently pending: the Bennett case, which was filed in Massachusetts state court, and the Cuker case, which was filed in New York state court.~~ These lawsuits have alleged violations of securities laws, breaches of fiduciary duties, unjust enrichment, waste of corporate assets, abuse of control and gross mismanagement, although the specific matters underlying the allegations in the lawsuits have varied. Two shareholder derivative lawsuits are currently pending: the Lindsey and Priest/Tola cases, which were filed in New York state court. The allegations in ~~the Bennett case~~these two cases relate to substantially the same facts as those underlying the securities class action described above, and the allegations in the Cuker case relate to alleged corruption in China. The Bennett complaint also includes a claim for professional negligence and accounting malpractice against GE’s auditor, KPMG.Hachem case. The plaintiffs seek unspecified damages and improvements in GE’s corporate governance and internal procedures. The ~~Bennett~~Lindsey case has been stayed ~~pending final resolution~~by agreement of ~~another shareholder derivative lawsuit (the Gammel case) that was previously dismissed. In August 2019,~~ the ~~Cuker plaintiffs filed an amended complaint. In September 2019,~~parties, and GE filed a motion to dismiss the ~~amended complaint.~~

Priest/Tola complaint in March 2021.

In June 2018, a lawsuit (the Bezio case) was filed in New York state court derivatively on behalf of participants in GE’s 401(k) plan (the GE Retirement Savings Plan (RSP)), and alternatively as a class action on behalf of shareholders who acquired GE stock between February 26, 2013 and January 24, 2018, alleging violations of Section 11 of the Securities Act of 1933 based on alleged misstatements and omissions related to insurance reserves and performance of GE’s business segments in a GE RSP registration statement and documents incorporated therein by reference. In November 2018, the plaintiffs filed an amended derivative complaint naming as defendants GE, former GE executive officers and Fidelity Management Trust Company, as trustee for the GE RSP. In January 2019, GE filed a motion to dismiss, and in November 2019, the court dismissed the remaining claims and the plaintiffs filed a notice of appeal. In December 2019, the plaintiffs filed a second amended derivative complaint, and in January 2020, GE filed a motion to dismiss.

2022 FORM 10-K 78

In July 2018, a putative class action (the Mahar case) was filed in New York state court naming as defendants GE, former GE executive officers, a former member of GE’s Board of Directors and KPMG. It alleged violations of Sections 11, 12 and 15 of the Securities Act of 1933 based on alleged misstatements related to insurance reserves and performance of GE’s business segments in GE Stock Direct Plan registration statements and documents incorporated therein by reference and seeks damages on behalf of shareholders who acquired GE stock between July 20, 2015 and July 19, 2018 through the GE Stock Direct Plan. In February 2019, this case was dismissed. In March 2019, plaintiffs filed an amended derivative complaint naming the same defendants. In April 2019, GE filed a motion to dismiss the amended complaint. In October 2019, the court denied GE's motion to dismiss and stayed the case pending the outcome of the Hachem case. In November 2019, the plaintiffs moved to re-argue to challenge the stay, and GE cross-moved to re-argue the denial of the motion to dismiss and filed a notice of appeal.

~~In October 2018, a putative class action (the Houston case) was filed~~The court denied both motions for re-argument, and in ~~New York state court naming as defendants GE, certain GE subsidiaries and current and former GE executive officers and employees. It alleges violations~~November 2020, the Appellate Division First Department affirmed the court's denial of Sections 11, 12 and 15 of the Securities Act of 1933 and seeks damages on behalf of purchasers of senior notes issued in 2016 and rescission of transactions involving those notes. This case has been stayed pending resolution of theGE's motion to ~~dismiss the Hachem case.~~

dismiss. In December 2018, a putative class action (the Varga case) was filed in the U.S. District Court for the Northern District of New York naming GE and a former GE executive officer as defendants in connection with the oversight of the GE RSP. It alleges that the defendants breached fiduciary duties under the Employee Retirement Income Security Act of 1974 (ERISA) by failing to advise GE RSP participants that GE Capital insurance subsidiaries were allegedly under-reserved and continued to retain a GE stock fund as an investment option in the GE RSP. The plaintiffs seek unspecified damages on behalf of a class of GE RSP participants and beneficiaries from January ~~1, 2010 through January 19, 2018 or later. In April 2019,~~2021, GE filed a motion for leave to ~~dismiss.~~

GE~~2019 FORM 10-K~~ ~~107~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~In February 2019, 2 putative class actions (the Birnbaum case and~~appeal to the ~~Sheet Metal Workers Local 17 Trust Funds case) were filed in the U.S. District Court for the Southern District of~~ New York ~~naming as defendants GE~~Court of Appeals, and current and former GE executive officers. In April 2019, the court issued an order consolidating these two actions. In June 2019, the lead plaintiff filed an amended consolidated complaint. It alleges violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 based on alleged misstatements regarding GE's H-class turbines and goodwill related to GE's Power business. The lawsuit seeks damages on behalf of shareholders who acquired GE stock between December 4, 2017 and December 6, 2018. In August 2019, the lead plaintiff filed a second amended complaint. In September 2019, GE filed athat motion ~~to dismiss the second amended complaint.~~was denied in March 2021.

In February 2019, a securities action (the Touchstone case) was filed in the U.S. District Court for the Southern District of New York naming as defendants GE and current and former GE executive officers. It alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Section 1707.43 of the Ohio Securities Act and common law fraud based on alleged misstatements regarding insurance reserves, GE Power’s revenue recognition practices related to long term service agreements, GE’s acquisition of Alstom, and the goodwill recognized in connection with that transaction. The lawsuit seeks damages on behalf of 6six institutional investors who purchased GE common stock between August 1, 2014 and October 30, 2018 and rescission of those purchases. ~~This case has been stayed pending resolution of~~In May 2021, the plaintiffs filed an amended complaint, and GE in June 2021 filed a motion to dismiss that complaint. In September 2022, the ~~Hachem~~court granted GE’s motion to the dismiss the plaintiffs’ case with no opportunity to replead their case. In January 2023, the plaintiffs filed an appeal of the court’s dismissal of their case with the U.S. Court of Appeals for the Second Circuit.

As previously reported by Baker Hughes, in March 2019, 2two derivative lawsuits were filed in the Delaware Court of Chancery naming as defendants GE, directors of Baker Hughes (including former members of GE’s Board of Directors and current and former GE executive officers) and Baker Hughes (as nominal defendant), and the court issued an order consolidating these two actions (the Schippnick case). The complaint as amended in May 2019 alleges, among other things, that GE and the Baker Hughes directors breached their fiduciary duties, and that GE was unjustly enriched by entering into transactions and agreements related to GE's sales of approximately 12% of its ownership interest in Baker Hughes in November 2018. The complaint seeks declaratory relief, disgorgement of profits, an award of damages, pre- and post-judgment interest and attorneys’ fees and costs. In May 2019, the plaintiffs voluntarily dismissed their claims against the directors who were members of the Baker Hughes Conflicts Committee and a former Baker Hughes director. In October 2019, the Court denied the remaining defendants’ motions to dismiss, except with respect to the unjust enrichment claim against GE, which has been dismissed. In November 2019, the defendants filed their answer to the complaint, and a special litigation committee of the Baker Hughes Board of Directors moved for an order staying all proceedings in this action pending completion of the committee's investigation of the allegations and claims asserted in the complaint. In ~~December 2019,~~October 2020, the ~~court granted a six-month stay.~~

In August 2019, a putative class action (the Tri-State case) was filed in the Delaware Court of Chancery naming as defendants GE and the former Board of Directors of Baker Hughes Incorporated (BHI). It alleges fraud, aiding and abetting breaches of fiduciary duty, and aiding and abetting breaches of duty of disclosure by GE based on allegations regarding financial statements that GE provided the former BHI board, management and shareholders in connection with BHI’s merger with GE’s Oil and Gas Business in July 2017. The plaintiff seeks damages on behalf of BHI shareholders during the period between October 7, 2016 and July 5, 2017. In October 2019, the City of Providencespecial litigation committee filed a complaint containing allegations substantially similar to those in the Tri-State complaint. The cases were consolidated in November 2019, and in December 2019, the plaintiffs filed an amended consolidated complaint which is similar to the prior complaints but does not include fraud claims against GE.

~~These cases are at an early stage; we believe we have defenses to the claims and are responding accordingly.~~

~~SEC investigation.~~In late November 2017, staff of the Boston office of the U.S. Securities & Exchange Commission (SEC) notified us that they are conducting an investigation of GE’s revenue recognition practices and internal controls over financial reporting related to long-term service agreements. Following our investor update in January 2018 about the increase in future policy benefit reserves for GE Capital’s run-off insurance operations, the SEC staff expanded the scope of its investigation to encompass the reserve increase and the process leading to the reserve increase. Following our announcement in October 2018 about the expected non-cash goodwill impairment charge related to GE’s Power business, the SEC expanded the scope of its investigation to include that charge as well. We are providing documents and other information requested by the SEC staff, and we are cooperatingreport with the ~~ongoing investigation. Staff from~~Court recommending that the ~~DOJ are also investigating these matters, and we are providing them with requested documents and information as well.~~ derivative action be terminated. In January 2021, the special committee filed a motion to terminate the action.

~~Other~~ GE Retirement Savings Plan class ~~actions.~~actions~~NaN~~. Four putative class action lawsuits have been filed regarding the oversight of the GE RSP, and those class actions have been consolidated into a single action in the U.S. District Court for the District of Massachusetts. The consolidated complaint names as defendants GE, GE Asset Management, current and former GE and GE Asset Management executive officers and employees who served on fiduciary bodies responsible for aspects of the GE RSP during the class period. Like similar lawsuits that have been brought against other companies in recent years, this action alleges that the defendants breached their fiduciary duties under ~~ERISA~~the Employee Retirement Income Security Act (ERISA) in their oversight of the GE RSP, principally by retaining 5five proprietary funds that plaintiffs allege were underperforming as investment options for plan participants and by charging higher management fees than some alternative funds. The plaintiffs seek unspecified damages on behalf of a class of GE RSP participants and beneficiaries from September 26, 2011 through the date of any judgment. In August and December 2018, the court issued orders dismissing 1one count of the complaint and denying GE's motion to dismiss the remaining counts. ~~We believe we have defenses to~~In September 2022, both GE and the ~~claims and are responding accordingly.~~plaintiffs filed motions for summary judgment on the remaining claims.

GE~~2019 FORM 10-K~~ ~~108~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

Bank ~~BPH.~~ BPH. As previously reported, ~~GE Capital’s subsidiary~~ Bank BPH, along with other Polish banks, has been subject to ongoing litigation in Poland related to its portfolio of floating rate residential ~~mortgages,~~mortgage loans, with cases brought by individual borrowers seeking relief related to their foreign ~~currency-denominated mortgages~~currency indexed or denominated mortgage loans in various courts throughout Poland. ~~Approximately 86%~~At December 31, 2022, approximately 85% of the Bank BPH portfolio is indexed to or denominated in foreign currencies (primarily Swiss francs), and the total portfolio had a carrying value, net of ~~$2.5 billion at December 31, 2019. In October 2019, the European Court~~reserves, of ~~Justice (ECJ) issued a decision about the approach~~$1,199 million. We continue to remedy in a case involving another Polish bank’s foreign currency loans, and in January 2020, a pending case involving a Bank BPH loan was referred to the ECJ. While there remains significant uncertainty as to how the prior ECJ decision, or a future decision on the Bank BPH case, will influence the Polish courts as they consider individual cases, we are observingobserve an increase in the number of lawsuits being brought against Bank BPH and other banks in Poland, ~~with similar portfolios that may~~and we expect this to continue in future reporting periods.

2022 FORM 10-K 79

We estimate potential losses for Bank BPH in connection with borrower litigation cases that are pending by recording legal reserves, as well as in connection with potential future cases or other adverse developments as part of our ongoing valuation of the Bank BPH portfolio, which we record at the lower of cost or fair value, less cost to sell. The total amount of estimated losses was $1,359 million and $755 million at December 31, 2022 and 2021, respectively. We update our assumptions underlying the amount of estimated losses based primarily on the number of lawsuits filed and estimated to be filed in the future, whether liability will be established in lawsuits and the nature of the remedy ordered by courts if liability is established. The increase in the amount of estimated losses during 2022 was driven primarily by increases in the number of lawsuits filed and estimated to be filed in the future and increased findings of liability. We expect the trends we have previously reported of an increasing number of lawsuits being filed, more findings of liability and more severe remedies being ordered against Polish banks (including Bank BPH) to continue in future reporting periods, although Bank BPH is unable at this time to develop a meaningful estimate of reasonably possible losses associated with active and inactive Bank BPH mortgage loans beyond the amounts currently recorded. Additional factors may also ~~believe there is~~affect our estimated losses over time, including: potentially significant judicial decisions or binding resolutions by the European Court of Justice (ECJ) or the Polish Supreme Court; the impact of any of these or other future or recent decisions or resolutions (including an expected ECJ ruling that could adversely impact the remedy cost to Polish banks upon a ~~potential for unifying rules of decision to emerge regarding both the~~ finding of liability, and ~~approach~~the Polish Supreme Court binding resolution delivered verbally in May 2021 with written reasoning issued in July 2021) on how Polish courts will interpret and apply the law in particular cases and how borrower behavior may change in response, neither of which are known immediately upon the issuance of a decision or resolution; financial, economic and other conditions in Poland that may adversely affect borrowers; uncertainty related to ~~remedy that could change our estimate~~a proposal by the Chairman of the Polish Financial Supervisory Authority in December 2020 that banks voluntarily offer borrowers an opportunity to convert their foreign currency indexed or denominated mortgage loans to Polish zlotys using an exchange rate applicable at the date of loan origination, and about the various settlement strategies or other approaches that Polish banks have increasingly adopted or will adopt, or that Bank BPH may adopt in the future, in response to this proposal or other factors, the approaches that regulators and other government authorities will adopt in response, the receptivity of borrowers to settlement offers; and the financial and capital impact on banks that adopt settlement programs; and any potential ~~effects~~legislation that may be passed in Poland relating to foreign exchange indexed or denominated mortgage loans. In addition, there is continued uncertainty arising from investigations of ~~borrower litigation.~~the Polish Office of Competition and Consumer Protection (UOKiK), including existing or anticipated UOKiK and court decisions resulting from those investigations, particularly UOKiK's investigation into the adequacy of disclosure of foreign exchange risk by banks (including BPH) and the legality under Polish law of unlimited foreign exchange risk on customers. Future adverse developments inrelated to any of the ~~potential for legislative relief~~foregoing, or ~~in litigation across~~other adverse developments such as actions by regulators, legislators or other governmental authorities (including UOKiK), likely would have a material adverse effect on Bank BPH and the ~~Polish banking industry~~carrying value of its mortgage loan portfolio as ~~a result of ECJ decisions or otherwise could~~well as result in additional required capital contributions to Bank BPH or significant losses ~~related to these loans in future reporting periods.~~beyond the amounts that we currently estimate.

ENVIRONMENTAL, HEALTH AND SAFETY ~~MATTERS.~~MATTERS. Our operations, like operations of other companies engaged in similar businesses, involve the use, disposal and cleanup of substances regulated under environmental protection laws and nuclear decommissioning regulations. We have obligations for ongoing and future environmental remediation activities, such as the Housatonic River cleanup described below, and may incur additional liabilities in connection with previously remediated sites, such as natural resource damages for the Hudson River where GE completed dredging in 2019. Additionally, like many other industrial companies, we and our subsidiaries are defendants in various lawsuits related to alleged worker exposure to asbestos or other hazardous materials. Liabilities for environmental remediation, nuclear decommissioning and worker exposure claims exclude possible insurance recoveries. It is reasonably possible that our exposure will exceed amounts accrued. However, due to uncertainties about the status of laws, regulations, technology and information related to individual sites and lawsuits, such amounts are not reasonably estimable. Total reserves related to environmental remediation, nuclear decommissioning and worker exposure claims were ~~$2,484~~$2,686 million and ~~$2,172~~$2,660 million at December 31, ~~2019~~2022 and ~~2018,~~2021, respectively.

As previously reported, in 2000, GE and the Environmental Protection Agency (EPA) entered into a consent decree relating to PCB cleanup of the Housatonic River in Massachusetts. Following EPA’s release in September 2015 of an intended final remediation decision, GE and EPA engaged in mediation and the first step of the dispute resolution process contemplated by the consent decree. In October 2016, ~~the~~ EPA issued its final decision pursuant to the consent ~~decree, which GE and several other interested parties appealed to~~decree. In January 2018, the EPA’s Environmental Appeals Board (EAB)~~. The EAB issued its decision in January 2018, affirming parts of EPA’s decision and granting relief to GE on certain significant elements of its challenge. The EAB~~ remanded the decision back to the EPA with instruction to ~~address those elements and~~ reissue a revised final ~~remedy,~~remedy. After successful mediation with key stakeholders (including EPA, GE, certain towns, and EPA convened a mediation process with GE and interested stakeholders. In February 2020, EPA announced an agreement between EPA and many of the mediation stakeholders, including GE, concerning a revised Housatonic River remedy. EPA will next propose this remedy forenvironmental groups), public comment and ~~then finalize a~~further review by the EAB, the final revised ~~remedy.~~permit (issued in January 2021) became effective in March 2022. In May 2022, two environmental advocacy groups petitioned the U.S. Court of Appeals for the First Circuit to review the EPA’s final permit. As of December 31, ~~2019,~~2022 and based on its assessment of current facts and circumstances and its defenses, GE believes that it has recorded adequate reserves to cover future obligations associated with the proposed final remedy.

Expenditures for site remediation, nuclear decommissioning and worker exposure claims amounted to approximately ~~$236~~$231 million, ~~$214~~$193 million and ~~$227~~$180 million for the years ended December 31, ~~2019, 2018,~~2022, 2021 and ~~2017,~~2020, respectively. We presently expect that such expenditures will be approximately ~~$350~~$250 million and ~~$250~~$300 million in ~~2020~~2023 and ~~2021,~~2024, respectively.

GE~~2019 FORM 10-K~~ ~~109~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~NOTE 24. CASH FLOWS INFORMATION~~

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

Amounts reported in the Proceeds from sales of discontinued operations and Proceeds from principal business dispositions captions in our consolidated Statement of Cash Flows are net of cash transferred and included certain deal-related costs. Amounts reported in the Net cash from (payments for) principal businesses purchased caption are net of cash acquired and included certain deal-related costs and debt assumed and immediately repaid in acquisitions.

GE For the years ended December 31 (In millions)
2019
2018
2017

Increase (decrease) in employee benefit liabilities(a) $ 227
$ 587
$ (68 )
Other gains on investing activities (723 ) (378 ) (138 )
Restructuring and other charges(b) 1,144
2,244
2,781
Restructuring and other cash expenditures (1,157 ) (1,474 ) (1,484 )
Increase (decrease) in equipment project accruals (314 ) (939 ) (212 )
Baker Hughes Class B dividends received 282
494
251
Other(c) 613
142
374
All other operating activities $ 72
$ 676
$ 1,504

Derivative settlements (net) $ (14 ) $ (947 ) $ (1,016 )
Investments in intangible assets (net) (30 ) (496 ) (321 )
Other investments (net)(d) 791
726
(1,404 )
Sales of retained ownership interests in Wabtec 3,383
—
—
Other(e) (455 ) 77
(6,698 )
All other investing activities $ 3,675
$ (640 ) $ (9,439 )

Disposition of Baker Hughes noncontrolling interests $ —
$ 4,373
$ 308
Acquisition of noncontrolling interests(f) (28 ) (3,345 ) (135 )
Other(g) (284 ) 79
117
All other financing activities $ (312 ) $ 1,107
$ 290

Open market purchases under share repurchase program $ (10 ) $ (245 ) $ (3,506 )
Other purchases (47 ) (23 ) (67 )
Dispositions 84
250
1,021
Net dispositions (purchases) of GE shares for treasury $ 29
$ (17 ) $ (2,550 )


~~(a)~~	~~Included non-cash adjustments for stock-based compensation expenses.~~


~~(b)~~	~~Excluded non-cash adjustments reflected as Depreciation and amortization of property, plant and equipment or Amortization of intangible assets in our consolidated Statement of Cash Flows.~~


~~(c)~~	Included other adjustments to net income, such as write-downs of assets and the impacts of acquisition accounting and changes in other assets and other liabilities classified as operating activities, such as the timing of payments of customer allowances.


~~(d)~~	~~Included the provision of a promissory note to Baker Hughes in 2017 and subsequent principal collections in 2018 and 2019. See Note 2.~~


~~(e)~~	Included net activity related to settlements between our continuing operations and discontinued operations. In 2017, this was primarily driven by funding in order to complete the Baker Hughes acquisition.


~~(f)~~	Primarily included the acquisition of Alstom's interest in the grid technology, renewable energy, and global nuclear and French steam power joint ventures for $(3,105) million in the fourth quarter of 2018. See Note 16.


~~(g)~~	~~Primarily included debt tender expenditures of $(255) million incurred to purchase GE long-term debt in 2019.~~

GE~~2019 FORM 10-K~~ ~~110~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

GE CAPITAL For the years ended December 31 (In millions)
2019
2018
2017

Cash collateral and settlements received (paid) on derivative contracts $ 1,263
$ (708 ) $ 836
Increase (decrease) in other liabilities (1,470 ) 240
(798 )
Other(a) 811
627
11,076
All other operating activities $ 605
$ 158
$ 11,114

Increase in loans to customers $ (15,022 ) $ (30,207 ) $ (45,251 )
Principal collections from customers - loans 18,083
37,237
47,471
Investment in equipment for financing leases (18 ) (306 ) (585 )
Principal collections from customers - financing leases(b) —
802
1,011
Sales of financing receivables 345
2,458
251
Net decrease (increase) in GE Capital financing receivables $ 3,389
$ 9,986
$ 2,897

Purchases of investment securities $ (6,205 ) $ (5,775 ) $ (2,867 )
Dispositions and maturities of investment securities 4,589
8,309
10,001
Decrease (increase) in other assets - investments 1,347
(4,516 ) (8,497 )
Other(c) 2,886
2,464
4,375
All other investing activities $ 2,617
$ 482
$ 3,013

Short-term (91 to 365 days) $ (10,515 ) $ (14,251 ) $ (18,591 )
Long-term (longer than one year) (991 ) (5,460 ) (2,054 )
Principal payments - non-recourse, leveraged leases (126 ) (125 ) (362 )
Repayments and other reductions (maturities longer than 90 days) $ (11,632 ) $ (19,836 ) $ (21,007 )

Redemption of investment contracts $ (279 ) $ (268 ) $ (344 )
Settlements paid on derivative contracts (864 ) (2,235 ) (212 )
Other 324
95
276
All other financing activities $ (819 ) $ (2,408 ) $ (280 )


~~(a)~~	~~Primarily included non-cash adjustments for insurance-related charges recorded in 2019 and 2017.~~


~~(b)~~	~~In 2019, per ASU No. 2016-02,~~ ~~Leases,~~ ~~principal collections from customers on financing leases is classified as cash from operating activities.~~


~~(c)~~	Primarily included cash related to our current receivables and supply chain finance programs and net activity related to settlements between our continuing operations (primarily our treasury operations) and businesses in discontinued operations.

GE~~2019 FORM 10-K~~ ~~111~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~NOTE 25. INTERCOMPANY TRANSACTIONS~~

Transactions between related companies may include, but are not limited to, the following: GE Capital working capital services to GE, including current receivables and supply chain finance programs; GE Capital finance transactions, including related GE guarantees to GE Capital; GE Capital financing of GE long-term receivables; and aircraft engines, power equipment and renewable energy equipment manufactured by GE that are installed on GE Capital investments, including leased equipment.

In addition to the above transactions that primarily enable growth for the GE businesses, there are routine related party transactions, which include, but are not limited to, the following: expenses related to parent-subsidiary pension plans; buildings and equipment leased between GE and GE Capital, including sale-leaseback transactions; information technology (IT) and other services sold to GE Capital by GE; settlements of tax liabilities; and various investments, loans and allocations of GE corporate overhead costs.

~~Presented below is a walk of intercompany eliminations from the combined GE and GE Capital totals to the consolidated cash flows.~~

(In millions) 2019
2018
2017

Combined GE and GE Capital cash from (used for) operating activities - continuing operations $ 6,495
$ 2,282
$ 13,853
  GE current receivables sold to GE Capital 1,081
5
(4,435 )
  GE long-term receivables sold to GE Capital 468
1,079
(250 )
Supply chain finance programs(a) 2,289
(18 ) 302
GE Capital common dividends to GE —
—
(4,016 )
Other reclassifications and eliminations 86
(138 ) 387
Consolidated cash from (used for) operating activities-continuing operations $ 10,419
$ 3,210
$ 5,840

Combined GE and GE Capital cash from (used for) investing activities - continuing operations $ 13,509
$ 14,915
$ (3,473 )
  GE current receivables sold to GE Capital (1,677 ) (839 ) 4,561
  GE long-term receivables sold to GE Capital (468 ) (1,079 ) 250
Supply chain finance programs(a) (2,289 ) 18
(302 )
  GE Capital loans to GE —
6,479
7,271
  Repayment of GE Capital loans by GE (1,523 ) —
(1,329 )
  Capital contribution from GE to GE Capital 4,000
—
—
  Other reclassifications and eliminations (868 ) (570 ) (251 )
Consolidated cash from (used for) investing activities-continuing operations $ 10,684
$ 18,925
$ 6,728

Combined GE and GE Capital cash from (used for) financing activities - continuing operations $ (14,665 ) $ (22,408 ) $ (21,738 )
  GE current receivables sold to GE Capital 596
835
(127 )
  GE Capital common dividends to GE —
—
4,016
  GE Capital loans to GE —
(6,479 ) (7,271 )
  Repayment of GE Capital loans by GE 1,523
—
1,329
Capital contribution from GE to GE Capital (4,000 ) —
—
  Other reclassifications and eliminations 782
706
(136 )
Consolidated cash from (used for) financing activities-continuing operations $ (15,764 ) $ (27,345 ) $ (23,927 )


~~(a)~~	Represents the reduction of the GE liability associated with the funded participation in a supply chain finance program with GE Capital, primarily as a result of GE Capital's sale of the program platform to MUFG Union Bank, N.A. (MUFG) in 2019.

~~GE current receivables sold to GE Capital excludes~~ ~~$303 million~~, ~~$5,192 million~~ ~~and~~ ~~$4,411 million~~ related to cash payments received on the Receivable facility deferred purchase price in the years ended December 31, 2019, 2018 and 2017, respectively, which are reflected as Cash from investing activities in the GE Capital and Consolidated columns of our consolidated Statement of Cash Flows. Sales of current and long-term receivables from GE to GE Capital are classified as Cash from operating activities in the GE column of our Statement of Cash Flows. See Note 4 for further information.

GE~~2019 FORM 10-K~~ ~~112~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

NOTE ~~26.~~25. OPERATING SEGMENTS

BASIS FOR PRESENTATION. Our operating businesses are organized based on the nature of markets and customers. Segment accounting policies are the same as described and referenced in Note 1. ~~Segment results for our financial services businesses reflect the discrete tax effect of transactions.~~

A description of our operating segments as of December 31, ~~2019,~~2022 can be found in the ~~Summary of Operating Segments~~Segment Operations section within MD&A.

2022 FORM 10-K 80

Years ended December 31
Total revenues(a) Intersegment revenues(b) External revenues
REVENUES (In millions)
2019
2018
2017
2019
2018
2017
2019
2018
2017

Power $ 18,625
$ 22,150
$ 29,426
$ 357
$ 152
$ 326
$ 18,267
$ 21,997
$ 29,100
Renewable Energy 15,337
14,288
14,321
139
186
242
15,198
14,102
14,080
Aviation 32,875
30,566
27,013
758
375
459
32,117
30,191
26,554
Healthcare 19,942
19,784
19,017
—
—
—
19,942
19,784
19,017
Total industrial segment revenues 86,778
86,789
89,776
1,254
714
1,027
85,524
86,075
88,749
Capital 8,741
9,551
9,070
971
1,384
1,558
7,770
8,167
7,512
Corporate items
and eliminations
(305 ) 673
433
(2,225 ) (2,097 ) (2,585 ) 1,920
2,770
3,018
Total $ 95,214
$ 97,012
$ 99,279
$ —
$ —
$ —
$ 95,214
$ 97,012
$ 99,279


~~(a)~~	~~Revenues of GE businesses include income from sales of goods and services to customers.~~


~~(b)~~	~~Sales from one component to another generally are priced at equivalent commercial selling prices.~~


REVENUES	Total revenues						Intersegment revenues						External revenues
Years ended December 31	2022		2021		2020		2022		2021		2020		2022		2021		2020
Aerospace	$	26,050	$	21,310	$	22,042	$	660	$	1,036	$	1,445	$	25,390	$	20,274	$	20,597

Renewable Energy	12,977		15,697		15,666		80		138		142		12,896		15,559		15,523
Power	16,262		16,903		17,589		267		345		352		15,995		16,558		17,237
HealthCare	18,461		17,725		18,009		—		1		1		18,461		17,724		18,008
Corporate	2,806		2,561		2,528		(1,008)		(1,520)		(1,941)		3,814		4,081		4,468
Total	$	76,555	$	74,196	$	75,833	$	—	$	—	$	—	$	76,555	$	74,196	$	75,833

~~The~~


	Years ended December 31
	2022						2021						2020
	Equipment		Services		Total		Equipment		Services		Total		Equipment		Services		Total
Aerospace	$	7,842	$	18,207	$	26,050	$	7,531	$	13,780	$	21,310	$	8,582	$	13,460	$	22,042

Renewable Energy	10,191		2,785		12,977		13,224		2,473		15,697		12,859		2,807		15,666
Power	4,737		11,526		16,262		5,035		11,868		16,903		6,707		10,883		17,589
HealthCare	9,643		8,818		18,461		9,104		8,620		17,725		9,992		8,017		18,009
Total segment revenues	$	32,413	$	41,336	$	73,749	$	34,894	$	36,741	$	71,635	$	38,140	$	35,166	$	73,306


SEGMENT REVENUES	Years ended December 31
	2022		2021		2020
Commercial Engines & Services	$	18,665	$	14,360	$	14,479
Military	4,410		4,136		4,572
Systems & Other	2,975		2,814		2,991
Aerospace	$	26,050	$	21,310	$	22,042






Onshore Wind	$	8,373	$	11,026	$	10,881
Grid Solutions equipment and services	3,086		3,207		3,585

Hydro, Offshore Wind and Hybrid Solutions	1,518		1,464		1,200
Renewable Energy	$	12,977	$	15,697	$	15,666

Gas Power	$	12,072	$	12,080	$	12,655
Steam Power	2,643		3,241		3,557
Power Conversion, Nuclear and other	1,547		1,582		1,378
Power	$	16,262	$	16,903	$	17,589

Healthcare Systems	$	16,489	$	15,694	$	15,387
Pharmaceutical Diagnostics	1,972		2,031		1,792
BioPharma	—		—		830
HealthCare	$	18,461	$	17,725	$	18,009

Total segment revenues	$	73,749	$	71,635	$	73,306
Corporate	$	2,806	$	2,561	$	2,528

Total revenues	$	76,555	$	74,196	$	75,833

Revenues are classified according to the region to which equipment and services ~~revenues classification in~~are sold. For purposes of this analysis, the ~~table below~~U.S. is ~~consistent with our segment MD&A presentation.~~

Years ended December 31
2019 2018 2017
(In millions) Equipment Services Total Equipment Services Total Equipment Services Total

Power $ 6,247
$ 12,378
$ 18,625
$ 8,077
$ 14,073
$ 22,150
$ 12,909
$ 16,517
$ 29,426

Renewable Energy 12,267
3,069
15,337
11,419
2,870
14,288
13,969
352
14,321

Aviation 12,804
20,071
32,875
11,499
19,067
30,566
10,215
16,797
27,013

Healthcare 11,585
8,357
19,942
11,422
8,363
19,784
10,771
8,246
19,017

Total industrial segment revenues $ 42,904
$ 43,875
$ 86,778
$ 42,416
$ 44,372
$ 86,789
$ 47,864
$ 41,913
$ 89,776

SEGMENT REVENUES Years ended December 31
(In millions)
2019
2018
2017

Gas Power $ 13,122

$ 13,296

$17,100
Power Portfolio 5,503

8,853

12,326
Power $ 18,625
$ 22,150
$ 29,426

Onshore Wind $ 10,421
$ 8,220
$ 8,055
Grid Solutions equipment and services 4,062
4,772
5,117
Other 855
1,296
1,149
Renewable Energy $ 15,337
$ 14,288
$ 14,321

Commercial $ 24,217
$ 22,724
$ 19,709
Military 4,389
4,103
3,991
Systems & Other 4,269
3,740
3,314
Aviation $ 32,875
$ 30,566
$ 27,013

Healthcare Systems $ 14,648
$ 14,886
$ 14,460
Life Sciences 5,294
4,898
4,557
Healthcare $ 19,942
$ 19,784
$ 19,017

Total industrial segment revenues $ 86,778
$ 86,789
$ 89,776
Capital(a) 8,741
9,551
9,070
Corporate items and eliminations (305 ) 673
433
Consolidated revenues $ 95,214
$ 97,012
$ 99,279

~~(a)~~ ~~Substantially all of our revenues at GE Capital are outside~~presented separately from the remainder of the ~~scope of ASC 606.~~Americas.


Year ended December 31, 2022	Aerospace			Renewable Energy			Power			HealthCare			Corporate		Total
U.S.	$	10,722		$	6,265		$	5,121		$	8,078		$	2,850	$	33,036
Non-U.S.
Europe	6,013			3,023			3,484			3,697			68		16,284
China region	2,154			216			1,173			2,525			(5)		6,062
Asia (excluding China region)	2,731			1,396			2,101			2,225			(129)		8,324
Americas	1,713			1,120			1,931			1,038			(14)		5,788
Middle East and Africa	2,719			956			2,453			897			36		7,060
Total Non-U.S.	$	15,328		$	6,711		$	11,142		$	10,383		$	(44)	$	43,519
Total geographic revenues	$	26,050		$	12,977		$	16,262		$	18,461		$	2,806	$	76,555
Non-U.S. revenues as a % of total revenues	59		%	52		%	69		%	56		%			57		%

Revenues from customers located in the United States were $39,372 million, $39,876 million and $41,468 million for the years ended December 31, 2019, 2018 and 2017, respectively. Revenues from customers located outside the United States were $55,843 million, $57,136 million and $57,811 million for the years ended December 31, 2019, 2018 and 2017, respectively.

GE~~2019~~2022 FORM 10-K ~~113~~81



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~


Year ended December 31, 2021	Aerospace			Renewable Energy			Power			HealthCare			Corporate		Total
U.S.	$	9,675		$	7,275		$	6,186		$	7,229		$	2,473	$	32,838
Non-U.S.
Europe	3,920			3,651			3,621			3,702			52		14,946
China region	2,419			464			1,145			2,700			16		6,744
Asia (excluding China region)	1,758			1,959			2,090			2,345			(45)		8,107
Americas	1,310			1,009			1,239			923			(4)		4,476
Middle East and Africa	2,228			1,340			2,622			826			69		7,085
Total Non-U.S.	$	11,635		$	8,422		$	10,717		$	10,496		$	88	$	41,358
Total geographic revenues	$	21,310		$	15,697		$	16,903		$	17,725		$	2,561	$	74,196
Non-U.S. revenues as a % of total revenues	55		%	54		%	63		%	59		%			56		%


Year ended December 31, 2020
U.S.	$	11,239		$	7,846		$	6,186		$	7,611		$	2,336	$	35,217
Non-U.S.
Europe	4,288			3,047			2,895			3,952			159		14,342
China region	2,078			1,156			1,253			2,455			35		6,978
Asia (excluding China region)	1,842			1,484			2,707			2,264			(55)		8,241
Americas	882			819			1,483			879			1		4,064
Middle East and Africa	1,713			1,314			3,064			848			52		6,991
Total Non-U.S.	$	10,803		$	7,820		$	11,403		$	10,398		$	192	$	40,616
Total geographic revenues	$	22,042		$	15,666		$	17,589		$	18,009		$	2,528	$	75,833
Non-U.S. revenues as a % of total revenues	49		%	50		%	65		%	58		%			54		%

REMAINING PERFORMANCE OBLIGATION. As of December 31, ~~2019,~~2022, the aggregate amount of the contracted revenues allocated to our unsatisfied (or partially unsatisfied) performance obligations was ~~$245,434~~$250,997 million. We expect to recognize revenue as we satisfy our remaining performance obligations as follows: 1) equipment-related remaining performance obligation of ~~$48,487~~$48,936 million of which ~~58%~~59%, ~~76%~~81% and ~~88%~~98% is expected to be recognized within 1, 2 and 5 years, respectively, and the remaining thereafter; and 2) services-related remaining performance obligations of ~~$196,947~~$202,061 million of which ~~14%~~13%, 46%, ~~72%~~70% and ~~83%~~84% is expected to be recognized within 1, 5, 10 and 15 years, respectively, and the remaining thereafter. Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related remaining performance obligations.

Total sales of ~~goods~~equipment and services to agencies of the U.S. Government were 5%6%, 5%6% and 4%7% of GEtotal revenues for the years ended December 31, ~~2019, 2018~~2022, 2021 and ~~2017,~~2020, respectively. Within our ~~Aviation~~Aerospace segment, defense-related sales were 5%, 4%5% and 4%6% of GEtotal revenues for the years ended December 31, ~~2019, 2018~~2022, 2021 and ~~2017,~~2020, respectively.

PROFIT AND EARNINGS For the years ended December 31 (In millions)
2019
2018
2017

Power $ 386
$ (808 ) $ 1,894
Renewable Energy (666 ) 292
728
Aviation 6,820
6,466
5,370
Healthcare 3,896
3,698
3,488
Total industrial segment profit 10,436
9,647
11,479
Capital (530 ) (489 ) (6,765 )
Total segment profit 9,906
9,158
4,714
Corporate items and eliminations (2,212 ) (2,837 ) (3,798 )
GE goodwill impairments (1,486 ) (22,136 ) (1,165 )
GE interest and other financial charges (2,115 ) (2,415 ) (2,538 )
GE non-operating benefit costs (2,828 ) (2,740 ) (2,409 )
GE provision for income taxes (1,309 ) (467 ) (3,493 )
Earnings (loss) from continuing operations attributable to GE common shareholders (44 ) (21,438 ) (8,689 )
Earnings (loss) from discontinued operations, net of taxes (5,335 ) (1,363 ) (312 )
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations 60
1
(81 )
Earnings (loss) from discontinued operations, net of taxes and noncontrolling interests (5,395 ) (1,364 ) (231 )
Consolidated net earnings (loss) attributable to GE common shareholders $ (5,439 ) $ (22,802 ) $ (8,920 )

Interest and other financial charges Benefit (provision) for income taxes
For the years ended December 31 (In millions)
2019
2018
2017
2019
2018
2017

Capital $ 2,532
$ 2,982
$ 3,145
$ 582
$ 374
$ 6,302
Corporate items and eliminations(a) 1,695
1,784
1,510
(1,309 ) (467 ) (3,493 )
Total $ 4,227
$ 4,766
$ 4,655
$ (726 ) $ (93 ) $ 2,808


~~(a)~~	~~Included amounts for Power, Renewable Energy, Aviation and Healthcare, for which our measure of segment profit excludes interest and other financial charges and income taxes.~~


PROFIT AND EARNINGS For the years ended December 31	2022		2021		2020
Aerospace	$	4,775	$	2,882	$	1,229

Renewable Energy	(2,240)		(795)		(715)
Power	1,217		726		274
HealthCare	2,705		2,966		3,060

Total segment profit (loss)	6,456		5,778		3,848
Corporate(a)	(3,413)		892		8,061
Interest and other financial charges	(1,552)		(1,813)		(2,018)
Debt extinguishment costs	(465)		(6,524)		(301)
Non-operating benefit income (cost)	532		(1,782)		(2,430)
Goodwill impairments	—		—		(877)
Benefit (provision) for income taxes	(689)		124		333
Preferred stock dividends	(289)		(237)		(474)
Earnings (loss) from continuing operations attributable to GE common shareholders	581		(3,562)		6,141


Earnings (loss) from discontinued operations attributable to GE common shareholders	(644)		(3,195)		(911)
Net earnings (loss) attributable to GE common shareholders	$	(64)	$	(6,757)	$	5,230

Assets Property, plant and
equipment additions(a) Depreciation and amortization(b)
At December 31 For the years ended December 31 For the years ended December 31
(In millions) 2019
2018
2017
2019
2018
2017
2019
2018
2017

Power $ 26,731
$ 27,389
$ 55,827
$ 277
$ 358
$ 1,018
$ 880
$ 1,307
$ 1,228
Renewable Energy 15,935
16,400
18,466
455
303
677
425
474
382
Aviation 41,647
38,021
37,473
1,031
1,070
1,426
1,150
1,042
979
Healthcare 30,514
28,048
28,408
395
378
393
702
832
806
Capital(c) 117,546
119,329
150,805
3,830
4,569
3,680
2,083
2,163
2,342
Corporate items
and eliminations(d)
29,565
18,032
10,758
(175 ) (46 ) (64 ) 355
763
456
Total continuing $ 261,939
$ 247,219
$ 301,737
$ 5,813
$ 6,632
$ 7,130
$ 5,595
$ 6,582
$ 6,193


~~(a)~~	~~Additions to property, plant and equipment include amounts relating to principal businesses purchased.~~


~~(b)~~	~~Included amortization expense related to intangible assets.~~


~~(c)~~	~~Included Capital deferred income taxes that are presented as assets for purposes of our balance sheet presentation.~~


~~(d)~~	~~Included GE deferred income taxes that are presented as assets for purposes of our balance sheet presentation.~~

GE~~2019 FORM 10-K~~ ~~114~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~Total assets~~(a) Includes interest and other financial charges of ~~Power, Renewable Energy, Aviation, Healthcare, Capital and Corporate at December 31, 2019, include investments in and advances to associated companies of $565~~$54 million, ~~$630 million, $2,073 million, $245 million, $2,159~~$63 million and ~~$45 million, respectively. Investments in and advances to associated companies contributed approximately $(4) million, $(2) million, $204 million, $19 million, $324~~$50 million and ~~$(11)~~benefit for income taxes of $213 million, $162 million and $154 million related to ~~pre-tax income~~EFS within Corporate for the ~~year~~years ended December 31, ~~2019~~2022, 2021, and 2020, respectively.

2022 FORM 10-K 82


	Assets						Property, plant and equipment additions(a)						Depreciation and amortization
	At December 31						For the years ended December 31						For the years ended December 31
	2022		2021		2020		2022		2021		2020		2022		2021		2020
Aerospace	$	39,243	$	38,298	$	38,634	$	543	$	445	$	737	$	1,037	$	1,074	$	1,142

Renewable Energy	15,719		14,804		15,927		275		349		302		412		432		413
Power	22,173		23,569		24,453		210		189		245		506		692		749
HealthCare	26,070		24,770		22,229		310		278		256		640		641		628
Corporate(b)(c)	81,692		94,256		114,220		34		25		40		948		168		531
Total continuing	$	184,896	$	195,697	$	215,463	$	1,371	$	1,286	$	1,579	$	3,543	$	3,009	$	3,464

(a)Additions to property, plant and equipment include amounts relating to principal businesses purchased.

(b)Depreciation and amortization included the Steam asset sale impairment in the first quarter of ~~Power, Renewable Energy, Aviation, Healthcare, Capital and Corporate, respectively.~~2022.

(c)Included deferred income taxes that are presented as assets for purposes of our Statement of Financial Position presentation.

We classify certain assets that cannot meaningfully be associated with specific geographic areas as “Other Global” for this purpose.

December 31 (In millions)
2019
2018

U.S. $ 144,405
$ 126,566
Non-U.S.
Europe 70,565
70,007
Asia 22,089
22,355
Americas 13,435
12,871
Other Global 11,445
15,420
Total Non-U.S. $ 117,534
$ 120,653
Total assets (Continuing Operations) $ 261,939
$ 247,219


December 31	2022		2021
U.S.	$	126,005	$	130,956
Non-U.S.
Europe	36,603		42,213
Asia	11,317		11,534
Americas	6,405		6,406
Other Global	4,566		4,588
Total Non-U.S.	$	58,892	$	64,741
Total assets (Continuing operations)	$	184,896	$	195,697

The ~~increase~~decrease in ~~total~~ continuing assets ~~from December 31, 2018 to December 31, 2019 is~~in 2022 was primarily ~~due to the deconsolidation~~driven by decreases in estimated fair value of our ~~Baker Hughes segment~~debt securities, depreciation and ~~classification of our retained~~ ~~interest in Baker Hughes within investment securities, as well as lower sales of receivables~~amortization on property, plant and equipment and intangible assets, including the Steam asset sale impairment, and the ~~effect~~effects of ~~adopting new leasing standards.~~

a stronger U.S. dollar. Property, plant and equipment – net associated with operations based in the United States were ~~$11,992 million, $11,868~~$7,508 million and ~~$12,393~~$8,411 million at December 31, ~~2019, 2018~~2022 and ~~2017,~~2021, respectively. Property, plant and equipment – net associated with operations based outside the United States were ~~$31,298 million, $31,743~~$6,970 million and ~~$33,576~~$7,198 million at December 31, ~~2019, 2018~~2022 and ~~2017,~~2021, respectively.

~~NOTE 27. GUARANTOR FINANCIAL INFORMATION~~

GE Capital International Funding Company Unlimited Company (the Issuer) previously issued senior unsecured registered notes that are fully and unconditionally, jointly and severally guaranteed by both the Company and GE Capital International Holdings Limited (each a Guarantor, and together, the Guarantors). The Company is required to provide certain financial information regarding the Issuer and the Guarantors of the registered securities, specifically Condensed Consolidating Statements of Earnings and Comprehensive Income, Condensed Consolidating Statements of Financial Position and Condensed Consolidating Statements of Cash Flows for:


•	~~General Electric Company (the Parent Company Guarantor)~~ ~~– prepared with investments in subsidiaries accounted for under the equity method of accounting and excluding any inter-segment eliminations;~~


•	~~GE Capital International Funding Company Unlimited Company (the Subsidiary Issuer)~~ ~~– finance subsidiary that issued the guaranteed notes for debt;~~


•	~~GE Capital International Holdings Limited (GECIHL)(the Subsidiary Guarantor)~~ ~~– prepared with investments in non-guarantor subsidiaries accounted for under the equity method of accounting;~~


•	~~Non-Guarantor Subsidiaries~~ ~~– prepared on an aggregated basis excluding any elimination or consolidation adjustments and includes predominantly all non-cash adjustments for cash flows;~~


•	~~Consolidating Adjustments~~ – adjusting entries necessary to consolidate the Parent Company Guarantor with the Subsidiary Issuer, the Subsidiary Guarantor and Non-Guarantor Subsidiaries and in the comparative periods, this category includes the impact of new accounting policies adopted as described in Note 1; and


•	~~Consolidated~~ ~~– prepared on a consolidated basis.~~

GE~~2019 FORM 10-K~~ ~~115~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEAR ENDED DECEMBER 31, 2019

(In millions)
Parent
Company
Guarantor

Subsidiary
Issuer

Subsidiary
Guarantor

Non-
Guarantor
Subsidiaries

Consolidating
Adjustments

Consolidated

Sales of goods and services $ 28,078
$ —
$ —
$ 154,927
$ (95,518 ) $ 87,487
GE Capital revenues from services —
964
64
9,949
(3,250 ) 7,728
Total revenues 28,078
964
64
164,876
(98,768 ) 95,214

Interest and other financial charges 1,612
980
1,405
1,975
(1,745 ) 4,227
Other costs and expenses 32,563
1
—
166,371
(106,876 ) 92,059
Total costs and expenses 34,175
981
1,406
168,346
(108,622 ) 96,287
Other income (3,853 ) —
—
30,453
(24,378 ) 2,222
Equity in earnings (loss) of affiliates 5,923
—
1,290
75,445
(82,658 ) —
Earnings (loss) from continuing
operations before income taxes
(4,028 ) (17 ) (52 ) 102,427
(97,182 ) 1,149
Benefit (provision) for income taxes (1,143 ) 1
—
(228 ) 643
(726 )
Earnings (loss) from continuing operations (5,170 ) (16 ) (52 ) 102,200
(96,539 ) 423
Earnings (loss) from discontinued
operations, net of taxes
192
—
59
—
(5,585 ) (5,335 )
Net earnings (loss) (4,979 ) (16 ) 7
102,200
(102,124 ) (4,912 )
Less net earnings (loss) attributable to
noncontrolling interests
—
—
—
7
59
66
Net earnings (loss) attributable to
the Company
(4,979 ) (16 ) 7
102,192
(102,184 ) (4,979 )
Other comprehensive income 2,681
—
(1,022 ) 2,280
(1,258 ) 2,681
Comprehensive income (loss) attributable to the Company $ (2,297 ) $ (16 ) $ (1,015 ) $ 104,472
$ (103,441 ) $ (2,297 )

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEAR ENDED DECEMBER 31, 2018

(In millions)
Parent
Company
Guarantor

Subsidiary
Issuer

Subsidiary
Guarantor

Non-
Guarantor
Subsidiaries

Consolidating
Adjustments

Consolidated

Sales of goods and services $ 34,972
$ —
$ —
$ 164,691
$ (110,723 ) $ 88,940
GE Capital revenues from services —
917
1,038
9,531
(3,414 ) 8,072
Total revenues 34,972
917
1,038
174,222
(114,136 ) 97,012

Interest and other financial charges 1,728
911
2,560
2,459
(2,893 ) 4,766
Other costs and expenses 47,471
—
1
186,262
(118,180 ) 115,554
Total costs and expenses 49,199
911
2,561
188,721
(121,073 ) 120,320
Other income 3,910
—
—
29,268
(30,857 ) 2,321
Equity in earnings (loss) of affiliates (11,404 ) —
1,554
240,036
(230,186 ) —
Earnings (loss) from continuing
operations before income taxes
(21,721 ) 6
31
254,803
(254,106 ) (20,987 )
Benefit (provision) for income taxes 1,092
5
—
(2,381 ) 1,191
(93 )
Earnings (loss) from continuing operations (20,629 ) 11
31
252,422
(252,915 ) (21,080 )
Earnings (loss) from discontinued
operations, net of taxes
(1,726 ) —
(39 ) —
401
(1,363 )
Net earnings (loss) (22,355 ) 11
(8 ) 252,422
(252,514 ) (22,443 )
Less net earnings (loss) attributable to
noncontrolling interests
—
—
—
(204 ) 116
(89 )
Net earnings (loss) attributable to
the Company
(22,355 ) 11
(8 ) 252,627
(252,629 ) (22,355 )
Other comprehensive income (10 ) —
(82 ) (2,840 ) 2,922
(10 )
Comprehensive income (loss) attributable to the Company $ (22,364 ) $ 11
$ (90 ) $ 249,786
$ (249,707 ) $ (22,364 )

GE~~2019 FORM 10-K~~ ~~116~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

CONDENSED CONSOLIDATING STATEMENT OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEAR ENDED DECEMBER 31, 2017

(In millions)
Parent
Company
Guarantor

Subsidiary
Issuer

Subsidiary
Guarantor

Non-
Guarantor
Subsidiaries

Consolidating
Adjustments

Consolidated

Sales of goods and services $ 35,551
$ —
$ —
$ 161,172
$ (104,782 ) $ 91,942
GE Capital revenues from services —
703
800
9,888
(4,053 ) 7,337
Total revenues 35,551
703
800
171,060
(108,835 ) 99,279

Interest and other financial charges 1,644
652
2,006
3,343
(2,990 ) 4,655
Other costs and expenses 38,765
—
18
177,223
(107,954 ) 108,052
Total costs and expenses 40,409
653
2,023
180,566
(110,943 ) 112,707
Other income (959 ) —
—
75,291
(72,249 ) 2,083
Equity in earnings (loss) of affiliates 553
—
1,938
109,521
(112,012 ) —
Earnings (loss) from continuing
operations before income taxes
(5,263 ) 50
714
175,307
(182,152 ) (11,345 )
Benefit (provision) for income taxes (2,896 ) (5 ) 115
5,877
(282 ) 2,808
Earnings (loss) from continuing operations (8,159 ) 45
829
181,184
(182,435 ) (8,536 )
Earnings (loss) from discontinued
operations, net of taxes
(325 ) —
41
4
(32 ) (312 )
Net earnings (loss) (8,484 ) 45
870
181,187
(182,467 ) (8,849 )
Less net earnings (loss) attributable to
noncontrolling interests
—
—
—
(137 ) (228 ) (365 )
Net earnings (loss) attributable to
the Company
(8,484 ) 45
870
181,324
(182,239 ) (8,484 )
Other comprehensive income 4,184
—
567
(7,552 ) 6,985
4,184
Comprehensive income (loss) attributable to the Company $ (4,300 ) $ 45
$ 1,436
$ 173,773
$ (175,254 ) $ (4,300 )

CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2019

(In millions)
Parent
Company
Guarantor

Subsidiary
Issuer

Subsidiary
Guarantor

Non-
Guarantor
Subsidiaries

Consolidating
Adjustments

Consolidated

Cash, cash equivalents and restricted cash $ 10,591
$ —
$ —
$ 26,438
$ (636 ) $ 36,394
Receivables - net 47,170
17,726
230
61,026
(99,104 ) 27,047
Investment in subsidiaries 147,397
—
40,408
421,613
(609,418 ) —
All other assets 28,377
236
—
291,995
(118,000 ) 202,607
Total assets $ 233,535
$ 17,961
$ 40,638
$ 801,071
$ (827,158 ) $ 266,048

Short-term borrowings $ 135,172
$ —
$ 2,981
$ 9,712
$ (125,792 ) $ 22,072
Long-term and non-recourse borrowings 40,660
16,771
24,417
34,262
(47,301 ) 68,809
All other liabilities 66,808
161
70
146,972
(68,705 ) 145,306
Total liabilities 242,640
16,932
27,468
190,946
(241,799 ) 236,187

Total liabilities and equity $ 233,535
$ 17,961
$ 40,638
$ 801,071
$ (827,158 ) $ 266,048

GE~~2019 FORM 10-K~~ ~~117~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

CONDENSED CONSOLIDATING STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2018

(In millions)
Parent
Company
Guarantor

Subsidiary
Issuer

Subsidiary
Guarantor

Non-
Guarantor
Subsidiaries

Consolidating
Adjustments

Consolidated

Cash, cash equivalents and restricted cash $ 9,561
$ —
$ —
$ 25,975
$ (4,412 ) $ 31,124
Receivables - net 30,466
17,467
2,792
69,268
(90,504 ) 29,488
Investment in subsidiaries 176,239
—
45,832
733,535
(955,605 ) —
All other assets 29,615
12
—
359,063
(138,230 ) 250,460
Total assets $ 245,881
$ 17,479
$ 48,623
$ 1,187,841
$ (1,188,751 ) $ 311,072

Short-term borrowings $ 150,426
$ —
$ 9,854
$ 9,649
$ (157,153 ) $ 12,776
Long-term and non-recourse borrowings 59,800
16,115
24,341
41,066
(50,498 ) 90,824
All other liabilities 43,872
336
245
153,160
(41,622 ) 155,992
Total liabilities 254,098
16,452
34,439
203,875
(249,273 ) 259,591

Total liabilities and equity $ 245,881
$ 17,479
$ 48,623
$ 1,187,841
$ (1,188,751 ) $ 311,072

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2019

(In millions)
Parent
Company
Guarantor

Subsidiary
Issuer

Subsidiary
Guarantor

Non-
Guarantor
Subsidiaries

Consolidating
Adjustments

Consolidated

Cash from (used for) operating activities(a) $ 5,526
$ 137
$ (1,685 ) $ 33,515
$ (28,721 ) $ 8,772

Cash from (used for) investing activities 32,210
(137 ) 6,223
400,190
(429,548 ) 8,939

Cash from (used for) financing activities (36,706 ) —
(4,538 ) (436,933 ) 462,045
(16,133 )
Effect of currency exchange rate changes
on cash, cash equivalents and restricted cash
—
—
—
(50 ) —
(50 )
Increase (decrease) in cash, cash equivalents and restricted cash 1,030
—
—
(3,277 ) 3,776
1,529
Cash, cash equivalents and restricted cash at beginning of year 9,561
—
—
30,399
(4,412 ) 35,548
Cash, cash equivalents and restricted cash at end of year 10,591
—
—
27,121
(636 ) 37,077
Less cash, cash equivalents and restricted cash of discontinued operations at end of year —
—
—
638
—
638
Cash, cash equivalents and restricted cash of continuing operations at end of year $ 10,591
$ —
$ —
$ 26,484
$ (636 ) $ 36,439


~~(a)~~	~~Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $(1,282) million.~~

GE~~2019 FORM 10-K~~ ~~118~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2018

(In millions)
Parent
Company
Guarantor

Subsidiary
Issuer

Subsidiary
Guarantor

Non-
Guarantor
Subsidiaries

Consolidating
Adjustments

Consolidated

Cash from (used for) operating activities(a) $ 42,950
$ (387 ) $ 34,361
$ 328,029
$ (399,976 ) $ 4,978

Cash from (used for) investing activities 1,292
457
27,415
(297,621 ) 286,736
18,280

Cash from (used for) financing activities (38,154 ) (70 ) (61,779 ) (48,782 ) 116,979
(31,807 )
Effect of currency exchange rate changes
on cash, cash equivalents and restricted cash
—
—
—
(628 ) —
(628 )
Increase (decrease) in cash, cash equivalents and restricted cash 6,089
—
(3 ) (19,002 ) 3,739
(9,176 )
Cash, cash equivalents and restricted cash at beginning of year 3,472
—
3
49,400
(8,151 ) 44,724
Cash, cash equivalents and restricted cash at end of year 9,561
—
—
30,399
(4,412 ) 35,548
Less cash, cash equivalents and restricted cash of discontinued operations at end of year —
—
—
4,424
—
4,424
Cash, cash equivalents and restricted cash of continuing operations at end of year $ 9,561
$ —
$ —
$ 25,975
$ (4,412 ) $ 31,124


~~(a)~~	~~Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $1,991 million.~~

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2017

(In millions)
Parent
Company
Guarantor

Subsidiary
Issuer

Subsidiary
Guarantor

Non-
Guarantor
Subsidiaries

Consolidating
Adjustments

Consolidated

Cash from (used for) operating activities(a) $ (29,441 ) $ 52
$ 4,305
$ 149,385
$ (117,747 ) $ 6,554

Cash from (used for) investing activities (4,432 ) (52 ) (1,871 ) (222,298 ) 234,032
5,379

Cash from (used for) financing activities 34,616
—
(2,473 ) 70,782
(121,410 ) (18,484 )
Effect of currency exchange rate changes
on cash, cash equivalents and restricted cash
—
—
—
891
—
891
Increase (decrease) in cash, cash equivalents and restricted cash 743
—
(39 ) (1,239 ) (5,125 ) (5,659 )
Cash, cash equivalents and restricted cash at beginning of year 2,729
—
41
50,640
(3,026 ) 50,384
Cash, cash equivalents and restricted cash at end of year 3,472
—
3
49,400
(8,151 ) 44,724
Less cash, cash equivalents and restricted cash of discontinued operations at end of year —
—
—
7,901
—
7,901
Cash, cash equivalents and restricted cash of continuing operations at end of year $ 3,472
$ —
$ 3
$ 41,499
$ (8,151 ) $ 36,823


~~(a)~~	~~Parent Company Guarantor cash flows included cash from (used for) operating activities of discontinued operations of $239 million.~~

NOTE ~~28. BAKER HUGHES~~26. SUMMARIZED FINANCIAL INFORMATION

~~In September 2019, we deconsolidated our Baker Hughes segment and elected to~~. We account for our remaining interest in Baker Hughes (comprising ~~377.4~~7 million shares ~~and a promissory note receivable)~~with approximately 1% ownership interest as of December 31, 2022) at fair value. ~~At December 31, 2019, the~~As of November 3, 2021, our investment in BKR ownership reduced below 20%, and as a result, we no longer have significant influence in BKR. The fair value of our interest in Baker Hughes at December 31, 2022 and 2021 was ~~$9,888 million. Since the date of deconsolidation, we have not sold any shares of Baker Hughes~~$207 million and $4,010 million, respectively. We recognized ana realized and unrealized pre-tax gain of ~~$793~~$912 million ~~for the period ended December 31, 2019~~($702 million after-tax) based on a share price of ~~$25.63.~~$29.53, a realized and unrealized pre-tax gain of $938 million ($696 million after-tax) based on a share price of $24.06, and a realized and unrealized pre-tax loss of $2,037 million ($1,562 million after-tax) based on a share price of $20.85 for the years ended December 31, 2022, 2021 and 2020, respectively. The 2022 gain, 2021 gain and 2020 loss included a $109 million pre-tax derivative gain, a $129 million pre-tax derivative gain and a $54 million pre-tax derivative loss, respectively, associated with the forward sale of Baker Hughes shares pursuant to our previously announced program to monetize our Baker Hughes position. During the years ended December 31, 2022, 2021 and 2020, we completed forward sales of 160 million, 183 million and 28 million shares and received proceeds of $4,717 million, $4,145 million and $417 million, respectively. In January 2023, we sold our remaining 7 million shares and received net proceeds of $216 million. See Notes 2, 3 and 319 for further information.

GE~~2019 FORM 10-K~~ ~~119~~



~~FINANCIAL STATEMENTS~~	~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

Summarized financial information of Baker Hughes is as follows.


For the years ended December 31	2022(a)		2021(b)		2020
Revenues	$	—	$	16,997	$	20,705
Gross Profit	—		3,276		3,199
Net income (loss)	—		(546)		(15,761)
Net income (loss) attributable to the entity	—		(407)		(9,940)

(a) As of November 3, 2021, our investment in BKR reduced below 20%, and as a result, we no longer have significant influence.

(b) Financial information is from January 1, 2021 to November 3, 2021 (date investment in BKR reduced below 20%).

On November 1, 2021, we received 111.5 million ordinary shares of AerCap (approximately 46% ownership interest) and an AerCap senior note as partial consideration in conjunction with the GECAS transaction, for which we have adopted the fair value option. The fair value of our interest in AerCap, including the note, at December 31, 2022 and 2021 was $7,403 million and $8,287 million, respectively. We recognized an unrealized pre-tax loss of $865 million ($1,052 million after-tax) based on a share price of $58.32 and an unrealized pre-tax and after-tax gain of $711 million based on a share price of $65.42 related to our interest in AerCap for the years ended December 31, 2022 and 2021, respectively. See Notes 2, 3 and 19 for further information. Given AerCap summarized financial information is not available as of the date of ~~deconsolidation~~this filing, this information is reported on a one quarter lag. Summarized financial information of AerCap is as follows.

2022 FORM 10-K 83

From September 16 to December 31, 2019 (In millions)

Revenues $ 7,751
Gross Profit 1,558
Net income (loss) 120
Net income (loss) attributable to the entity 60


For the year ended December 31	2022(a)
Revenues	$	6,627
Net income (loss)	(1,128)
Net income (loss) attributable to the entity	(1,132)

(a) As we are unable to obtain monthly financial data for AerCap to match the exact period of ownership, we reported summarized financial information for AerCap starting October 1, 2021 instead of November 1, 2021.

December 31, 2019 (In millions)

Current $ 15,222
Noncurrent 38,147
Total assets $ 53,369

Current $ 10,014
Noncurrent 8,857
Total liabilities $ 18,871
Noncontrolling interests $ 12,570


As of December 31	2022(a)
Flight equipment held for operating leases, net	$	54,611
Other	15,200
Total assets	$	69,811

Debt	$	47,350
Other	6,817
Total liabilities	$	54,167
Noncontrolling interests	$	77

(a) Financial information is from September 30, 2022.

Baker Hughes ~~is a~~and AerCap are SEC ~~registrant~~registrants with separate filing requirements, and ~~its~~their respective financial information can be obtained from ~~www.sec.gov or www.bakerhughes.com.~~www.sec.gov.

GE, within its Aerospace segment, has interests in certain joint ventures formed to manufacture and service commercial jet engines and engine parts, collectively referred to herein as the Commercial Aerospace Joint Ventures. These interests include: CFM International Inc., CFM International SA and CFM Materials, LP, joint operations of the CFM56 and LEAP engine programs with Safran Aircraft Engines, a subsidiary of Safran Group of France; Engine Alliance, LLC, a joint operation of the GP7200 engine program with Raytheon Technologies Corporation via their Pratt & Whitney segment; GE Honda Aero Engines, LLC, a joint operation of the HF120 engine program with Honda Aero, Inc; and Advanced Atomization Technologies, LLC, a joint operation for engine fuel nozzles with Parker-Hannifin Corporation. GE recognizes revenue on sales to these Commercial Aerospace Joint Ventures upon the transfer of its products and services, of which the timing and the amount of revenue recognized could be different than that of the joint ventures. Summarized financial information of these Commercial Aerospace Joint Ventures is as follows.


For the years ended December 31	2022		2021		2020
Revenues	$	23,317	$	17,118	$	15,931
Gross Profit	312		284		359
Net income (loss)	249		(123)		327
Net income (loss) attributable to the entity	237		(140)		312


As of December 31	2022		2021
Current assets	$	13,328	$	8,845
Total assets	$	14,327	$	9,941
Current liabilities	$	12,828	$	8,435
Total liabilities	$	12,887	$	8,470
Noncontrolling interests	$	153	$	147

2022 FORM 10-K 84

NOTE ~~29.~~27. QUARTERLY INFORMATION (UNAUDITED)


	First quarter				Second quarter				Third quarter				Fourth quarter
(Per-share amounts in dollars)	2022		2021		2022		2021		2022		2021		2022		2021
Total revenues	$	17,040	$	17,071	$	18,646	$	18,253	$	19,084	$	18,569	$	21,786	$	20,303
Sales of equipment and services	16,272		16,316		17,880		17,470		18,438		17,813		21,011		19,492
Cost of equipment and services sold	12,453		12,538		13,244		13,618		14,371		13,401		15,467		14,338
Earnings (loss) from continuing operations	(729)		97		(561)		(571)		(76)		582		2,302		(3,504)
Earnings (loss) from discontinued operations	(286)		(2,894)		(210)		(564)		(85)		602		(64)		(339)
Net earnings (loss)	(1,014)		(2,798)		(771)		(1,135)		(160)		1,184		2,238		(3,843)
Less net earnings (loss) attributable to noncontrolling interests	28		5		19		(3)		4		(73)		16		1
Net earnings (loss) attributable to the Company	$	(1,042)	$	(2,802)	$	(790)	$	(1,131)	$	(165)	$	1,257	$	2,222	$	(3,843)
Per-share amounts – earnings (loss) from continuing operations
Diluted earnings (loss) per share	$	(0.74)	$	0.02	$	(0.59)	$	(0.57)	$	(0.14)	$	0.54	$	1.99	$	(3.24)
Basic earnings (loss) per share	(0.74)		0.02		(0.59)		(0.57)		(0.14)		0.54		2.01		(3.24)
Per-share amounts – earnings (loss) from discontinued operations
Diluted earnings (loss) per share	(0.26)		(2.63)		(0.19)		(0.51)		(0.08)		0.54		(0.06)		(0.31)
Basic earnings (loss) per share	(0.26)		(2.64)		(0.19)		(0.51)		(0.08)		0.55		(0.06)		(0.31)
Per-share amounts – net earnings (loss)
Diluted earnings (loss) per share	(0.99)		(2.61)		(0.78)		(1.08)		(0.21)		1.08		1.93		(3.55)
Basic earnings (loss) per share	(0.99)		(2.62)		(0.78)		(1.08)		(0.21)		1.09		1.95		(3.55)
Dividends declared	0.08		0.08		0.08		0.08		0.08		0.08		0.08		0.08

First quarter Second quarter Third quarter Fourth quarter
(In millions; per-share amounts in dollars) 2019
2018
2019
2018
2019
2018
2019
2018

Consolidated operations
Earnings (loss) from continuing operations $ 983
$ 446
$ (115 ) $ 791
$ (1,290 ) $ (23,014 ) $ 845
$ 697
Earnings (loss) from discontinued operations 2,663
(1,559 ) 219
(122 ) (8,093 ) 155
(123 ) 163
Net earnings (loss) 3,645
(1,113 ) 104
669
(9,383 ) (22,859 ) 721
860
Less net earnings (loss) attributable to
noncontrolling interests
57
34
(23 ) (132 ) 40
(90 ) (7 ) 99
Net earnings (loss) attributable to
the Company
$ 3,588
$ (1,147 ) $ 127
$ 800
$ (9,423 ) $ (22,769 ) $ 728
$ 761
Per-share amounts – earnings (loss) from
continuing operations

Diluted earnings (loss) per share $ 0.10
$ 0.03
$ (0.03 ) $ 0.08
$ (0.15 ) $ (2.64 ) $ 0.07
$ 0.06
Basic earnings (loss) per share 0.10
0.03
(0.03 ) 0.08
(0.15 ) (2.64 ) 0.08
0.06
Per-share amounts – earnings (loss)
from discontinued operations

Diluted earnings (loss) per share 0.30
(0.17 ) 0.03
(0.01 ) (0.93 ) 0.02
(0.02 ) 0.01
Basic earnings (loss) per share 0.30
(0.17 ) 0.03
(0.01 ) (0.93 ) 0.02
(0.01 ) 0.01
Per-share amounts – net earnings (loss)
Diluted earnings (loss) per share 0.40
(0.14 ) (0.01 ) 0.07
(1.08 ) (2.62 ) 0.06
0.07
Basic earnings (loss) per share 0.41
(0.14 ) (0.01 ) 0.07
(1.08 ) (2.62 ) 0.06
0.07
Dividends declared 0.01
0.12
0.01
0.12
0.01
0.12
0.01
0.01

Selected data
GE
Sales of goods and services $ 20,324
$ 21,138
$ 21,416
$ 22,190
$ 21,519
$ 21,273
$ 24,460
$ 24,437
Gross profit from sales 4,494
4,879
4,500
5,100
4,660
3,924
5,780
4,261
GE Capital
Total revenues 2,227
2,173
2,321
2,429
2,097
2,473
2,096
2,476
Earnings (loss) from continuing operations
attributable to the Company
175
(179 ) 99
(22 ) (603 ) 58
259
101

~~For GE, gross profit from sales is sales of goods and services less costs of goods and services sold.~~

Earnings-per-share amounts are computed independently each quarter for earnings (loss) from continuing operations, earnings (loss) from discontinued operations and net earnings (loss). As a result, the sum of each quarter’s per-share amount may not equal the total per-share amount for the respective year; and the sum of per-share amounts from continuing operations and discontinued operations may not equal the total per-share amounts for net earnings (loss) for the respective quarters.

GENOTE 28. SUBSEQUENT EVENT. ~~2019 FORM 10-K~~ ~~120~~On January 3, 2023 (the Distribution Date), GE completed the previously announced separation of its HealthCare business, into a separate, independent publicly traded company, GE HealthCare Technologies, Inc. (GE HealthCare). The Separation was structured as a tax-free spin-off, and was achieved through GE's pro-rata distribution of approximately 80.1% of the outstanding shares of GE HealthCare to holders of GE common stock. On the Distribution Date, each holder of record of GE common stock received one share of GE HealthCare common stock for every three shares of GE common stock held. As a result of the Separation, GE HealthCare became an independent public company that trades under the symbol “GEHC” on The Nasdaq Stock Market LLC and we will no longer consolidate GE HealthCare into our financial results.



~~FORWARD-LOOKING STATEMENTS~~

~~FORWARD-LOOKING STATEMENTS~~

~~Our public communications~~In connection with the Separation, the historical results of GE HealthCare and ~~SEC filings may contain~~certain assets and liabilities included in the Separation will be reported in GE's consolidated financial statements ~~related to future, not past, events. These forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such~~ as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "estimate," "forecast," "target," "preliminary," or "range." Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about our expected financial performance, including cash flows, revenues, organic growth, margins, earnings and earnings per share; macroeconomic and market conditions; planned and potential business or asset dispositions; our de-leveraging plans, including leverage ratios and targets,discontinued operations beginning in the ~~timing and nature~~first quarter of ~~actions to reduce indebtedness and our credit ratings and outlooks; GE's and~~2023. GE ~~Capital's funding and liquidity; our businesses’ cost structures and plans to reduce costs; restructuring, goodwill impairment or other financial charges; or tax rates.~~

~~For us, particular uncertainties that could cause our actual results to be materially different than those expressed~~will prospectively measure its retained ownership interest of approximately 19.9% in ~~our forward-looking statements include:~~

~~our success in executing and completing, including obtaining regulatory approvals and satisfying other closing conditions for, announced~~ GE ~~Industrial and GE Capital business or asset dispositions or other transactions, including the planned sale of our BioPharma business within our Healthcare segment and plan to exit our~~HealthCare common stock at fair value. This equity ownership ~~position in Baker Hughes, the timing of closing for those transactions and the expected proceeds and benefits to GE;~~

~~our de-leveraging and capital allocation plans, including with respect to actions to reduce our indebtedness, the timing and amount of GE dividends, organic investments, and other priorities;~~

~~further downgrades of our current short- and long-term credit ratings or ratings outlooks, or changes in rating application or methodology,~~interest and the related earnings impact onfrom subsequent changes in its fair value will be recognized in continuing operations. In addition, we expect to fully monetize our ~~liquidity, funding profile, costs and competitive position;~~stake in GE HealthCare over time.

~~GE’s liquidity and the amount and timing of our GE Industrial cash flows and earnings, which may be impacted by customer, competitive, contractual and other dynamics and conditions;~~

~~GE Capital's capital and liquidity needs, including~~Also in connection with the Separation, the Company entered into various agreements to effect the Separation and provide a framework for the relationship between GE ~~Capital’s run-off insurance operations~~ and ~~discontinued operations;~~GE HealthCare, including a Separation and Distribution Agreement (SDA), a Tax Matters Agreement and a Transition Services Agreement (TSA).

In connection with the ~~amount~~Separation and ~~timing~~as a result of ~~required capital contributions~~the legal split of certain plans as set forth in Note 13, net liabilities of approximately $4.0 billion associated with GE's postretirement benefit plans, including a portion of the principal pension plans, the principal retiree benefit plans and other pension plans were transferred to GE HealthCare. Deferred compensation arrangements and other compensation and benefits obligations of approximately $0.7 billion were also transferred to GE HealthCare. The legal split and transfer of the ~~insurance operations~~plans and ~~strategic actions that we may pursue;~~ the related liabilities and obligations to GE HealthCare will impact our assumptions and projections used to determine the funding and costs of ~~conditions~~GE’s remaining plans.

In connection with the Separation, GE received $1.5 billion of cash funded by GE HealthCare's additional $2.0 billion of indebtedness incurred on January 3, 2023.

2022 FORM 10-K 85

Following the Separation, GE has remaining performance and bank guarantees on behalf of its former HealthCare business. Under the SDA, GE HealthCare is obligated to use reasonable best efforts to replace GE as the guarantor on or terminate all such credit support instruments. Until such termination or replacement, in the ~~financial~~event of non-fulfillment of contractual obligations by the relevant obligor(s), GE could be obligated to make payments under the applicable instruments. Under the SDA, GE HealthCare is obligated to reimburse and indemnify GE for any such payments. As of January 3, 2023, GE’s maximum aggregate exposure under such credit ~~markets on~~support instruments is approximately $0.5 billion. Most of these guarantees are not expected to remain in effect as of December 2023. In addition, GE ~~Capital's ability~~also has an obligation under the TSA to ~~sell financial assets; the availability and cost of funding; and~~indemnify GE ~~Capital's exposure to particular counterparties and markets;~~

global economic trends, competition and geopolitical risks, including changes in the rates of investment or economic growth in key markets we serve, or an escalation of trade tensions such as those between the U.S. and China;

changes in macroeconomic and market conditions, particularly interest rates as it relates to our pension and run-off insurance liabilities, as well as the value of stocks and other financial assets (including our equity ownership positions in Baker Hughes), oil and other commodity prices and exchange rates;

market developments or customer actions that may affect levels of demand and the financial performance of the major industries and customers we serve, such as secular, cyclical and competitive pressures in our Power business, pricing and other pressures in the renewable energy market, levels of demandHealthCare for ~~air travel and other customer dynamics such as early aircraft retirements, conditions in key geographic markets and other shifts in the competitive landscape for our products and services;~~

~~the length and severity of the recent coronavirus outbreak, including its impacts across our businesses on demand, operations in China and our global supply chains;~~

operational execution by our businesses, including our ability to improve the operations and execution of our Power and Renewable Energy businesses, and the continued strength of our Aviation business;

changes in law, regulation or policy that may affect our businesses, such as trade policy and tariffs, regulation related to climate change and the effects of U.S. tax reform and other tax law changes;

~~our decisions about investments in new products, services and platforms, and our ability to launch new products in a cost-effective manner;~~

~~our ability to increase margins through implementation of operational changes, restructuring and other cost reduction measures;~~

~~the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of Alstom, SEC and other investigative and legal proceedings;~~

~~the impact of actual or potential failures of our products or third-party products with which our products are integrated, such as the fleet grounding of the Boeing 737 MAX and the timing~~certain of its ~~return to service, and related reputational effects;~~

~~the impact~~technology costs of ~~potential information technology, cybersecurity or data security breaches; and~~

~~the other factors that~~approximately $0.1 billion, which are ~~described in "Risk Factors" in this form 10-K report.~~

~~These or other uncertainties may cause our actual future results~~expected to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. This document includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.incurred by GE HealthCare within the first year following the Separation.

GE~~2019 FORM 10-K~~ ~~121~~



~~OTHER INFORMATION~~

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Information about our Executive Officers (As of February 1, ~~2020)~~

2023)

Date assumed

Executive

Name

Position

Age

Officer Position

~~Date assumed~~

~~Executive~~

~~Name~~

~~Position~~

~~Age~~

~~Officer Position~~

H. Lawrence Culp, Jr.

Chairman of the Board & Chief Executive Officer, GE;

5659

October 2018

~~Jamie S. Miller~~

CEO, GE Aerospace

Carolina Dybeck Happe

Senior Vice President & Chief Financial Officer, GE

5150

~~November 2017~~March 2020

L. Kevin Cox

Senior Vice President, Chief Human Resources Officer, GE

February 2019

Michael J. Holston

Senior Vice President, General Counsel & Secretary, GE

5760

April 2018

~~David L. Joyce~~

~~Vice Chairman of General Electric Company;~~

~~September 2016~~

John Slattery

Senior Vice President, GE;

September 2020

Executive Vice President & Chief Commercial Officer, GE Aerospace

Russell Stokes

Senior Vice President, GE;

September 2018

President & CEO, Commercial Engines and Services, GE ~~Aviation~~Aerospace

Scott L. ~~Kevin Cox~~Strazik

Senior Vice President, ~~Chief Human Resources Officer~~GE;

5644

~~February~~January 2019

~~Kieran P. Murphy~~

~~Senior Vice President of General Electric Company;~~

~~September 2018~~

~~President & CEO, GE Healthcare~~

~~Jérôme X. Pécresse~~

~~Senior Vice President of General Electric Company;~~

~~September 2018~~

~~President & CEO, GE Renewable Energy~~

~~Russell Stokes~~

~~Senior Vice President of General Electric Company;~~

~~September 2018~~

President & CEO, GE Power ~~Portfolio~~and GE Renewable Energy;

~~Scott L. Strazik~~

~~Senior Vice President of General Electric Company;~~

~~January 2019~~

~~CEO, GE Gas Power~~

Thomas S. Timko

Vice President, Controller & Chief Accounting Officer, GE

5154

September 2018

All Executive Officers are elected by the Board of Directors for an initial term that continues until the Board meeting immediately preceding the next annual statutory meeting of shareholders, and thereafter are elected for one-year terms or until their successors have been elected. ~~All~~Other than Messrs. Culp, Cox, Holston, Slattery and Timko and Ms. Dybeck Happe, the Executive Officers have been executives of General Electric Company for ~~the last~~at least five ~~years except for Messrs. Culp, Cox, Holston, Pécresse and Timko.~~years.

Prior to joining GE in April 2018 as an independent director and being elected to the position of Chairman and CEO in October 2018, Mr. Culp served as CEO at Danaher Corp. (2001-2014); as a senior advisor at Danaher Corp. (2014-2016); as a senior lecturer at Harvard Business School (2015-2018); and as a senior adviser at Bain Capital Private Equity, LP (2017-2018).

Prior to joining GE in March 2020, Ms. Dybeck Happe had been Chief Financial Officer of A.P. Moller - Maersk A/S since 2019 after serving as Chief Financial Officer of Assa Abloy AB since 2012 until 2018.

Prior to joining GE in February 2019, Mr. Cox had been Chief Human Resources Officer at American Express since 2005.

Prior to joining GE in April 2018, Mr. Holston had been general counsel at Merck since 2015, after joining the drugmaker as chief ethics and compliance officer in 2012.

Prior to joining GE in ~~November 2015 with~~July 2020, Mr. Slattery had been President and Chief Executive Officer of Commercial Aviation for Embraer, S.A. since 2016 after serving as the ~~acquisition of Alstom, Mr. Pécresse was an Executive Vice President of Alstom~~Chief Commercial Officer for Embraer Commercial Aviation since ~~June 2011.~~2012.

Prior to joining GE in September 2018, Mr. Timko was Vice President, Controller and Chief Accounting Officer at General Motors since 2013.

The remaining information called for by this item is incorporated by reference to “Election of Directors,” “Other Governance Policies & Practices”, “Board Committees”, and “Board Operations” in our definitive proxy statement for our ~~2020~~2023 Annual Meeting of Shareholders to be held May ~~5, 2020,~~3, 2023, which will be filed within 120 days of the end of our fiscal year ended December 31, ~~2019~~2022 (the ~~2020~~2023 Proxy Statement).

GE~~2019 FORM 10-K~~ ~~122~~



~~OTHER INFORMATION~~

2022 FORM 10-K 86



(In billions)	2019		2018		2017

Equipment	$	79.0	$	77.1	$	75.1
Services	325.6		273.5		256.8
Total backlog	$	404.6	$	350.6	$	331.9



Equipment	$	45.0	$	49.3	$	48.8
Services	45.3		45.5		46.5
Total orders	$	90.3	$	94.8	$	95.3



December 31, 2019 (In billions)	Equipment			Services			Total

Backlog	$	79.0		$	325.6		$	404.6
Adjustments	(30.5		)	(128.7		)	(159.1		)
Remaining performance obligation	$	48.5		$	196.9		$	245.4



SUMMARY OF REPORTABLE SEGMENTS	2022		2021		2020
Aerospace	$	26,050	$	21,310	$	22,042
Renewable Energy	12,977		15,697		15,666
Power	16,262		16,903		17,589
HealthCare	18,461		17,725		18,009
Total segment revenues	73,749		71,635		73,306
Corporate	2,806		2,561		2,528
Total revenues	$	76,555	$	74,196	$	75,833

Aerospace	$	4,775	$	2,882	$	1,229
Renewable Energy	(2,240)		(795)		(715)
Power	1,217		726		274
HealthCare	2,705		2,966		3,060
Total segment profit (loss)	6,456		5,778		3,848
Corporate(a)	(3,413)		892		8,061
Interest and other financial charges	(1,552)		(1,813)		(2,018)
Debt extinguishment costs	(465)		(6,524)		(301)
Non-operating benefit income (cost)	532		(1,782)		(2,430)
Goodwill impairments	—		—		(877)
Benefit (provision) for income taxes	(689)		124		333
Preferred stock dividends	(289)		(237)		(474)
Earnings (loss) from continuing operations attributable to GE common shareholders	581		(3,562)		6,141


Earnings (loss) from discontinued operations attributable to GE common shareholders	(644)		(3,195)		(911)
Net earnings (loss) attributable to GE common shareholders	$	(64)	$	(6,757)	$	5,230



	Orders		Sales
(In units)	2019	2018	2019	2018

GE Gas Turbines	74	52	53	59
Heavy-Duty Gas Turbines(a)	63	43	38	42
HA-Turbines(b)	18	10	11	12
Aeroderivatives(a)	11	9	15	17
GE Gas Turbine Gigawatts(c)	13.6	8.0
(a) Heavy-Duty Gas Turbines and Aeroderivatives are subsets of GE Gas Turbines. (b) HA-Turbines are a subset of Heavy-Duty Gas Turbines. (c) Gigawatts reported associated with financial orders in the periods presented.



Gas Power	$	13.1	$	13.3	$	17.1
Power Portfolio	5.5		8.9		12.3
Total segment revenues	$	18.6	$	22.1	$	29.4



Equipment	$	6.2		$	8.1		$	12.9
Services	12.4			14.1			16.5
Total segment revenues(a)	$	18.6		$	22.1		$	29.4

Segment profit(b)	$	0.4		$	(0.8	)	$	1.9
Segment profit margin	2.1		%	(3.6		)%	6.4		%



Onshore Wind	$	10.4	$	8.2	$	8.1
Grid Solutions equipment and services	4.1		4.8		5.1
Other	0.9		1.3		1.1
Total segment revenues	$	15.3	$	14.3	$	14.3



	Orders		Sales
(In units, except where noted)	2019	2018	2019		2018

Commercial Engines	2,390	4,772	2,863		2,825
GEnx Engines(a)	164	407	296		251
LEAP Engines(a)	1,568	3,637	1,736		1,118
Military Engines	801	751	717		674
Spares Rate(b)			$	31.0	$	27.5
(a) GEnx and LEAP engines are subsets of Commercial Engines (b) Commercial externally shipped spares and spares used in time & material shop visits in millions of dollars per day.



Commercial	$	24.2	$	22.7	$	19.7
Military	4.4		4.1		4.0
Systems & Other	4.3		3.7		3.3
Total segment revenues	$	32.9	$	30.6	$	27.0



Equipment	$	12.8		$	11.5		$	10.2
Services	20.1			19.1			16.8
Total segment revenues(a)	$	32.9		$	30.6		$	27.0
Segment profit(b)	$	6.8		$	6.5		$	5.4
Segment profit margin	20.7		%	21.2		%	19.9		%



Healthcare Systems	$	14.6	$	14.9	$	14.5
Life Sciences	5.3		4.9		4.6
Total segment revenues	$	19.9	$	19.8	$	19.0



Equipment	$	11.6		$	11.4		$	10.8
Services	8.4			8.4			8.2
Total segment revenues(a)	$	19.9		$	19.8		$	19.0
Segment profit(b)	$	3.9		$	3.7		$	3.5
Segment profit margin	19.5		%	18.7		%	18.3		%



(In millions)	2019			2018			2017

Revenues
Corporate revenues	$	1,791		$	2,783		$	2,897
Eliminations and other	(2,096		)	(2,110		)	(2,464		)
Total Corporate Items and Eliminations	$	(305	)	$	673		$	433

Operating profit (cost)
Gains (losses) on disposals and held for sale businesses	$	4		$	1,370		$	926
Restructuring and other charges	(1,315		)	(2,952		)	(3,023		)
Unrealized gains (losses)(a)	793			—			—
Goodwill impairments (Note 8)	(1,486		)	(22,136		)	(1,165		)
Adjusted total corporate operating costs (Non-GAAP)	(1,693		)	(1,255		)	(1,701		)
Total Corporate Items and Eliminations (GAAP)	$	(3,698	)	$	(24,973	)	$	(4,963	)
Less: gains (losses), impairments and restructuring & other	(2,004		)	(23,719		)	(3,262		)
Adjusted total corporate operating costs (Non-GAAP)	$	(1,693	)	$	(1,255	)	$	(1,701	)



Cost of product/services	$	0.4	$	1.1	$	1.8
Selling, general and administrative expenses	1.0		1.7		1.2
Other income	—		0.1		0.1
Total restructuring and other charges	$	1.3	$	3.0	$	3.0



Power	$	0.4	$	1.3	$	0.9
Renewable Energy	0.2		0.3		0.3
Aviation	—		—		0.1
Healthcare	0.2		0.2		0.3
Corporate	0.6		1.1		1.5
Total restructuring and other charges by business	$	1.3	$	3.0	$	3.0



	Costs						Gains (Losses)
(In billions)	2019		2018		2017		2019		2018			2017

Power	$	0.4	$	20.5	$	2.0	$	—	$	1.0		$	1.9
Renewable Energy	1.7		3.3		0.3		—		—			—
Aviation	—		—		0.1		—		(0.1		)	(0.3		)
Healthcare	0.2		0.2		0.3		—		0.8			—
Total segments	$	2.2	$	24.0	$	2.7	$	—	$	1.7		$	1.6
Corporate Items and Eliminations	0.6		1.1		1.5		0.8		(0.3		)	(0.7		)
Total Industrial	$	2.8	$	25.1	$	4.2	$	0.8	$	1.4		$	0.9



INTEREST AND OTHER FINANCIAL CHARGES (In billions)	2019		2018		2017

GE	$	2.1	$	2.4	$	2.5
GE Capital	2.5		3.0		3.1
Consolidated	$	4.2	$	4.8	$	4.7


CONSOLIDATED (Dollars in billions)	2019			2018			2017

INCOME TAXES										INCOME TAXES	2022			2021			2020
Effective tax rate (ETR)	63.2		%	(0.4		)%	24.8		%	Effective tax rate (ETR)	33.7		%	7.8		%	(8.2)		%
Provision (benefit) for income taxes	$	0.7		$	0.1		$	(2.8	)	Provision (benefit) for income taxes	$	476		$	(286)		$	(487)
Cash income taxes paid(a)	2.2			1.9			2.4			Cash income taxes paid(a)	$	1,128		$	1,330		$	1,291



BENEFIT/(EXPENSE) FROM GLOBAL OPERATIONS (In billions)	2019			2018			2017

Benefit/(expense) of foreign tax rate difference on non-U.S. earnings	$	—		$	(0.3	)	$	0.5
Benefit of audit resolutions	0.1			0.2			—
Other	(1.1		)	(0.9		)	2.9
Total benefit/(expense)	$	(1.0	)	$	(1.0	)	$	3.4


(BENEFIT)/EXPENSE FROM GLOBAL OPERATIONS	2022		2021		2020
Foreign tax rate difference on non-U.S. earnings	$	44	$	137	$	(104)
Audit resolutions	(23)		(81)		(129)
Other	321		99		186
Total (benefit)/expense	$	342	$	155	$	(47)



GE EFFECTIVE TAX RATE (EXCLUDING GE CAPITAL EARNINGS) (Dollars in billions)	2019			2018			2017

GE ETR, excluding GE Capital earnings*	72.7		%	(2.3		)%	271.0		%
GE provision for income taxes	$	1.3		$	0.5		$	3.5



GE CAPITAL EFFECTIVE TAX RATE (Dollars in billions)	2019			2018			2017

GE Capital ETR	89.3		%	99.7		%	49.9		%
GE Capital provision (benefit) for income taxes	$	(0.6	)	$	(0.4	)	$	(6.3	)


	GE funded							Customer and Partner funded(b)						Total R&D
	2022			2021		2020		2022		2021		2020		2022		2021		2020
Aerospace	$	806		$	664	$	707	$	1,160	$	972	$	1,090	$	1,965	$	1,637	$	1,797
Renewable Energy	519			546		466		22		15		19		540		561		485
Power	299			294		317		83		34		13		383		329		330
HealthCare	1,026			816		845		29		32		27		1,056		847		872
Corporate(a)	163			177		231		135		134		106		297		311		336
Total	$	2,813	(c)	$	2,497	$	2,565	$	1,429	$	1,187	$	1,255	$	4,242	$	3,685	$	3,820



FINANCIAL INFORMATION FOR DISCONTINUED OPERATIONS (In billions)	2019			2018			2017

Earnings (loss) of discontinued operations, net of taxes	$	0.3		$	(1.4	)	$	(0.4	)
Gain (loss) on disposal, net of taxes	(5.7		)	—			0.1
Earnings (loss) from discontinued operations, net of taxes	$	(5.3	)	$	(1.4	)	$	(0.3	)



(In billions)	December 31, 2019			December 31, 2019

GE	$	17.6	U.S.	$	14.9
GE Capital	18.8		Non-U.S.	21.4
Consolidated	$	36.4	Consolidated	$	36.4



December 31, 2019 (In billions)	GE			GE Capital			Consolidated(a)

Total short- and long-term borrowings	$	52.1		$	39.9		$	90.9

Debt assumed by GE from GE Capital	(31.4		)	31.4			—
Intercompany loans with right of offset	12.2			(12.2		)	—
Total intercompany payable (receivable) between GE and GE Capital	(19.1		)	19.1			—

Total borrowings adjusted for assumed debt and intercompany loans	$	32.9		$	59.0		$	90.9


~~(a)~~	~~Included elimination of other GE borrowings from GE Capital, primarily related to timing of cash settlements associated with GE receivables monetization programs.~~



GE (In billions)	December 31, 2019		December 31, 2018		GE Capital (In billions)	December 31, 2019			December 31, 2018
Commercial paper	$	3.0	$	3.0	Commercial paper	$	—		$	—
GE senior notes	15.5		20.4		Senior and subordinated notes	36.5			39.1
Intercompany loans from GE Capital	12.2		13.7		Senior and subordinated notes assumed by GE	31.4			36.3
Other GE borrowings	2.2		2.6		Intercompany loans to GE	(12.2		)	(13.7		)
					Other GE Capital borrowings(a)	3.4			3.9
					Total GE Capital
Total GE adjusted borrowings	$	32.9	$	39.7	adjusted borrowings	$	59.0		$	65.5



GE COMMITTED AND AVAILABLE CREDIT FACILITIES (In billions)	December 31, 2019		December 31, 2018

Unused back-up revolving credit facility	$	20.0	$	20.0
Revolving credit facilities (exceeding one year)	18.9		23.9
Bilateral revolving credit facilities (364-day)	3.1		3.6
Total committed credit facilities	$	42.0	$	47.5
Less offset provisions	6.7		6.7
Total net available credit facilities	$	35.3	$	40.8