The consolidated financial statements of General Electric Company (the Company) combine the industrial manufacturing and services businesses of General Electric Company (GE)GE with the financial services businesses of GE Capital Global Holdings, LLC (GE Capital or Financial Services)Services and are prepared in conformity with U.S. generally accepted accounting principles (GAAP). 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 MD&A are based on continuing operations unless otherwise noted. The MD&A should be read in conjunction with the Financial Statements and Notes to the consolidated financial statements. For purposes of the financial statement display of sales and costs of sales in our consolidated Statement of Earnings (Loss), “goods” is required by SEC regulations to include all sales of tangible products, and "services" must include all other sales, including other services activities. Throughout MD&A we refer to sales under product services agreements and sales of 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 believe that 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 ServicesGE Capital operations. We believe that this provides useful information to investors. When used in this report, unless otherwise indicated by the context, we use thethese terms to mean the following:

In the accompanying analysis of financial information, we sometimes use information derived from consolidated financial data but not presented in our financial statements prepared in accordance with GAAP. Certain of 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.

While factors related directly and indirectly to the COVID-19 pandemic have begun impacting operations and financial performance at varying levels across all our businesses, the most significant financial impact to date has been at our Aviation segment and our GE Capital Aviation Services (GECAS) aircraft leasing business within our PowerCapital segment. The COVID-19 pandemic is having a material adverse effect on the global airline industry, resulting in reduced flight schedules worldwide, an increased number of idle aircraft, lower utilization, workforce reductions and declining financial performance within the airline industry, as well as requests for government financial assistance by various industry participants. This has decreased demand for higher margin services revenues within our Aviation segment directly impacting our profitability and Corporatecash flows during the three months ended March 31, 2020. Our Healthcare segment experienced increased demand for total net proceedscertain types of $0.6products and services, including respiratory, computed tomography (CT), monitoring solutions, x-ray, anesthesia and point-of-care ultrasound product lines, partially offset by decreased demand in other parts of the business where hospitals and other customers have deferred services amidst the COVID-19 pandemic. Our other businesses were also adversely impacted by market developments, including delays or cancellations of new projects, new orders and related down payments. In addition, workplace, travel and supply chain disruptions have caused delays of deliveries and the achievement of other billing milestones directly impacting our profitability and cash flows for the three months ended March 31, 2020. We anticipate many of these impacts experienced in the latter part of first quarter of 2020 related to demand, profitability and cash flows will continue in future periods depending on the severity and duration of the pandemic. For additional details about impacts related to Aviation and GECAS, Healthcare and our other businesses, refer to the respective segment sections within MD&A.

During the three months ended March 31, 2020, COVID-19 factors described above negatively impacted GE cash from operating activities (CFOA) and Industrial free cash flows (FCF)* by approximately $1 billion, GE Industrial profit by approximately $0.8 billion and recognized a pre-tax gainGE Capital earnings by approximately $0.1 billion. Excluding restructuring of $0.2$0.1 billion, inadjusted GE Industrial profit* was negatively impacted by $0.7 billion.

See the caption "Other income" in our consolidated Statement of Earnings (Loss). These transactions are subject to customary working capitalConsolidated Results, and other post-close adjustments. See Note 2Critical Accounting Estimates sections within MD&A, as well as Notes 3, 10 and 12 to the consolidated financial statements for further information.

GE CFOA fromof continuing operations was $(0.9)$(1.7) billion and $(1.1)$(0.6) billion for the three months ended March 31, 2020 and 2019, and 2018, respectively. The increase in GE CFOA isdecreased primarily due to lower net disbursements for equipment project costs and no GE Pension Plan contributions in 2019 compared to $0.3 billion in 2018, partially offset by higher cash used for working capital and lower net income, primarily due to COVID-19 impacts, compared to 2019, partially offset by lower cash used for contract and& other deferred assets compared to 2018. Adjustedassets. GE Industrial free cash flows (FCF)*flows* were $(1.2)$(2.2) billion and $(1.8)$(1.2) billion for the three months ended March 31, 20192020 and 2018,2019, respectively. The decrease in cash used was primarily due to lower net disbursements for equipment project costs and lower additions to property, plant and equipment and internal-use software, partially offset by higher cash used for working capital and contract and other deferred assets compared to 2018.the same decreases in GE CFOA as noted above. See the Capital Resources and Liquidity - Statement of Cash Flows section within this MD&A for further information.

While we navigate the overall market fornear-term impacts of the COVID-19 pandemic, we will continue to invest in new product development, such as our HA-Turbines, and upgrades as these are critical to our customers and the long-term strategy of the business. Our fundamentals remain strong with approximately $85 billion in backlog and a gas units will be between 25 to 30 gigawatts per year.turbine installed base greater than 7,000 units.

The onshore wind market in the U.S. continues to experience megawatt growth assee a positive impact from the Production Tax Credit (PTC) cycle and customer preference has shifted from 1.X-2.X modelsshifting 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 continued to stabilize in the quarterhas stabilized due to demand caused by the anticipated expirationprogressive phase-down of Production Tax Credits (PTCs)PTCs in the U.S. in, which has recently been extended by one year to include projects meeting certain criteria by 2020 and auction stabilization in international markets.that will be completed through 2024. We expect a significantto continue high levels of production ramp for 20192020 deliveries at Onshore Wind and are closely monitoring our operational riskexecution during this period including risks of delivery delays and possible project postponements due to COVID-19 or otherwise.

The grid market continues to be challenging as we execute.continue to experience order declines in the High Voltage Direct Current (HVDC) and High Voltage (HV) product lines. Both the Grid Solutions equipment and services (Grid) and Hydro businesses are executing their turnaround plans.

Looking ahead, Aviation’s operational and financial performance is impacted by demand for passenger air travel, demand for freight, oil prices, fleet retirements, and demand for new aircraft. We monitor and forecast each of these factors as cost productivitypart of Aviation’s long-term planning process, which may result in additional business restructuring actions. Given the uncertainty related to the severity and higher volume.length of the global COVID-19 pandemic and the impact on these factors across the aviation sector, Aviation could be required to record additional charges, impairments, or other adverse financial impacts in future periods.

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

The increase in profit was primarilyglobal healthcare market has continued to expand, driven by volumemacro trends relating to growing and aging populations, increasing chronic and lifestyle-related diseases, accelerating demand for healthcare in emerging markets, 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 synergies delivered from combiningacross each of our Oil & Gas business with Baker Hughes Incorporated and lower restructuring and other charges of $0.3 billion.global markets.

The Healthcare Systems globalequipment market over the long term continues to expand at low single digitsingle-digit rates or better, while demand continues for services on new equipment as well as on our existing installed base. However, there is short-term variation driven by strengthmarket-specific political, environmental and economic cycles. Growth in emerging markets as these economiesis driven by long-term trends of expanding demand and access to healthcare. Developed markets are expected to remain steady in the near term driven by macro trends in the healthcare industry.

Dynamics related to tariffs tempered China's 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. We continue to expand their population’s access to healthcare,take mitigating actions including moving our sourcing and slower growthmanufacturing for these parts outside of China. With softening in developed markets. recent U.S.-China trade relations and continued mitigation actions there has been some moderation in tariffs in both U.S. and China.

The Life Sciences market, which encompasses BioprocessPharmaceutical Diagnostics and Pharmaceutical diagnostics,BioPharma, continues to be strong. The Bioprocess market is growing at a high single digit rate, driven by growth in biologic drugs. The Pharmaceutical diagnosticsDiagnostics business is positioned in the contrast agent and nuclear tracer markets. This market is expected to grow at low- to mid-single digit rates,over the long-term, driven by continued diagnostic imaging procedure growth and increasing contrast and tracer-enhancementtracer-enhanced biomarkers of these same procedures, as these products help to increase the precision of the diagnostic information provided to clinicians. Effective January 1, 2019,However, in the Healthcare Equipment Finance (HEF) financingshort-term the reduction in procedures not related to COVID-19 has temporarily reduced demand. We disposed of the BioPharma business withinon March 31, 2020.

We continue focusing on creating new products and solutions as well as expanding uses of existing offerings that are tailored to the different needs of our Capital segment was transferredglobal customers. In the first quarter of 2020, we introduced the LOGIQ™ E10 Series ultrasound that is powered by advanced algorithms and the same artificial intelligence technology behind advanced gaming. It can process 10 times more data and generate images faster than our previous ultrasound systems to our Healthcare segmenthelp clinicians bring fast, precise answers to their patients. We continue to ramp production of critical medical equipment used to diagnose and is presented within Healthcare Systems.treat COVID-19 patients, respiratory, computed tomography (CT), monitoring solutions, x-ray, anesthesia and point-of-care ultrasound product lines.

GE Capital paid no common dividends in 2018made capital contributions to its insurance subsidiaries of $2.0 billion and $1.9 billion in the first quarterquarters of 2020 and 2019, respectively, and does not expectexpects to makeprovide further capital contributions of approximately $7 billion through 2024. See the Critical Accounting Estimates section within MD&A for further information.

As of March 31, 2020, GECAS has received deferral requests (primarily short term in nature) from approximately 75% of its airline customers operating in approximately 64 countries and expects to continue to receive requests for rent deferrals and/or lease restructures from its global airline customers as a result of COVID-19 and related market impacts. An extended disruption of regional or international travel could result in an increase in these types of requests in future periods, which could result in an increase to the foreseeable future.trade receivable balance. As GECAS evaluates future lease restructures, there is a risk of lease modifications that could have a material adverse effect on GECAS operations, financial position and cash flows. Additionally, the portfolio utilization in our helicopter business was 86% as of March 31, 2020.

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