GE’s Internet address at www.ge.com, Investor Relations website at www.ge.com/investor-relations and power generation services. The Renewable Energy segment provides wind turbine platforms, hardware and software, offshore wind turbines, solutions, products and services to hydropower industry, blades for onshore and offshore wind turbines, and high voltage equipment. The Aviation segment provides jet engines and turboprops for commercial airframes, maintenance, component repair, and overhaul services,our corporate blog at www.gereports.com, as well as replacement parts, additive machinesGE’s Facebook page, Twitter accounts and materials, and engineering services. The Healthcare segment provides healthcare technologies in medical imaging, digital solutions, patient monitoring, and diagnostics, drug discovery, biopharmaceutical manufacturing technologies and performance enhancement solutions. The Capital segment leases and finances aircraft, aircraft engines and helicopters, providesother social media, including @GE_Reports, contain a significant amount of information about GE, including financial and underwriting solutions,other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and manages our run-off insurance operations.new information is posted.

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 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 these terms to mean the following:

This document contains “forward-looking statements” - that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain.

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 3indirectly to the COVID-19 pandemic have been impacting operations and financial performance at varying levels across all our businesses, the most significant impact to date has been at our Aviation segment and our GE Capital Aviation Services (GECAS) aircraft leasing business within our Capital segment. The 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 service revenues within our Aviation segment directly impacting our profitability and cash flows during 2020. Our Healthcare segment experienced increased demand for certain types of products and services, including ventilators, monitoring solutions, x-ray, anesthesia and point-of-care ultrasound product lines, partially offset by decreased demand in other parts of the business as patients have postponed certain procedures and hospitals have deferred spending. 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 nine months ended September 30, 2020. We anticipate many of these impacts 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.

Each of GE's businesses and Corporate are taking cost and cash actions to manage risk and proactively mitigate the financial impact from COVID-19, as supply and demand dynamics continue to shift. In 2020, we are targeting more than $2 billion in operational cost out and more than $3 billion in cash preservation actions across the company, including more than $1 billion in cost out and more than $2 billion in cash preservation actions at Aviation, to right-size its cost structure and preserve its ability to serve customers. To date, we have realized about 75% of savings from actions at the total company level. During the nine months ended September 30, 2020, excluding business dispositions, we reduced consolidated financial statementsheadcount by approximately 15,600, including 8,800 at Aviation and 2,100 at Power.

At this time, GE cannot forecast the full duration and magnitude of COVID-19 impacts, or the pace of recovery from the pandemic across our end markets, operations, and supply chains. See the Risk Factors section in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 for further information.information about related risks and uncertainties.

Continuing earnings (loss) per share was $(0.15)$(0.13). Excluding unrealized gains (losses), Steam asset impairments, non-operating benefit costs, gains (losses) on business dispositions, restructuring and other charges goodwill impairments, unrealized gains (losses) on investments debt extinguishment costs and insurance premium deficiency test charge,U.S. tax reform, Adjusted earnings per share* was $0.15.$0.06.

GE CFOAcash flows from continuing operationsoperating activities (CFOA) was $0.1$(3.2) billion and $(4.5)$0.1 billion for the nine months ended September 30, 20192020 and 2018,2019, respectively. GE CFOA increaseddecreased primarily due to no GE Pension Plan contributions in 2019 compared to $6.0 billion in 2018 and lower net disbursements for equipment project costs, partially offset byincome, primarily due to COVID-19 impacts, higher cash used for working capital compared to 2018.and higher cash paid for taxes, partially offset by changes in contract and other deferred assets, and increases in equipment project cost accruals and deferred income. GE Industrial Free Cash Flowsfree cash flows (FCF)* were $(1.6)$(3.8) billion and $(0.3)$(1.6) billion for the nine months ended September 30, 2020 and 2019, and 2018, respectively. The increase in cash used wasGE Industrial FCF decreased primarily due to lower net income and higher cash used for working capital, compared to 2018, partially offset by lower net disbursements forchanges in contract and other deferred assets, increases in equipment project costs comparedcost accruals and deferred income and a decrease in additions to 2018.property, plant and equipment and internal-use software. 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 is unfilled customer orders for products and product services (expected life of contract sales for product services).

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.penalty. We plan to continue reporting backlog as we believe that it is a useful metric for investors, given its relevance to total orders. See Note 9 to the consolidated financial statements for further information.

Adjustments to reported backlog of $(145.5)$156.9 billion as of September 30, 20192020 are largely driven by adjustments of $(133.7)$148.4 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;cancelable; (2) our services backlog includes contracts that are cancelable without substantive penalty, primarily time and materials contracts; (3) backlog includes engines contracted under long-term service agreements, even if the engines have not yet been put into service. These adjustments to reported backlog are expected to be satisfied beyond one year.

As of September 30, 2019,2020, GECAS owned 29 of these aircraft, 2526 of which are leasedcontracted for lease to various lesseesairlines that remain obligated to make contractual rental payments. In addition, GECAS has made pre-delivery payments to Boeing related to 15077 of these aircraft on order and has made financing commitments to acquire a further 1917 aircraft under purchase and leaseback contracts with airlines. During 2020, GECAS agreed with Boeing to restructure its 737 MAX orderbook including previously canceled positions, resulting in 77 orders now remaining.

As of September 30, 2019,2020, we havehad approximately $2.5 billion of net assets ($4.4 billion of assets and $1.8 billion of liabilities) related to the 737 MAX program that primarily comprisescomprised Aviation accounts receivable offset by progress collections and GECAS pre-delivery payments and owned aircraft subject to lease offset by progress collections.lease. No impairment charges were incurred related to the 737 MAX aircraft and related balances, in the first nine months of 2019 as we continue to believe these assets are fully recoverable.recoverable over their contractual or useful lives. We continue to monitor these737 MAX return to service and return to delivery developments with our airline customers, lessees and Boeing.

Power continues to right size its business to better align with market demand and driving its businesses with an operational rigor and discipline that is focused on each segment’s relative net cost of operations.

We 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 $79 billion in backlog and a gas turbine installed base greater than 7,000 units, including approximately 1,800 units under long-term service agreements.