UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission file number 001-00035

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) 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 $0.01 per share	GE	~~New York Stock Exchange~~
~~0.375% Notes due 2022~~	~~GE 22A~~	New York Stock Exchange
1.250% Notes due 2023	GE 23E	New York Stock Exchange
0.875% Notes due 2025	GE 25	New York Stock Exchange
1.875% Notes due 2027	GE 27E	New York Stock Exchange
1.500% Notes due 2029	GE 29	New York Stock Exchange
7 1/2% Guaranteed Subordinated Notes due 2035	GE /35	New York Stock Exchange
2.125% Notes due 2037	GE 37	New York Stock Exchange

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 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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

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 the 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	☐
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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

There were ~~1,100,664,978~~1,088,960,029 shares of common stock with a par value of $0.01 per share outstanding at March 31, ~~2022.~~2023.

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 ~~the COVID-19 pandemic~~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; ~~macroeconomic and market conditions and volatility; planned and potential transactions, including our plan~~impacts related to ~~pursue spin-offs of our Healthcare business and our combined Renewable Energy, Power and Digital businesses;~~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.

•our success in executing planned and ~~completing asset dispositions or other~~potential transactions, including our plan to pursue ~~spin-offs~~a spin-off of GE Vernova, and sales or other dispositions of our ~~Healthcare business~~equity interests in AerCap Holdings N.V. (AerCap) and ~~our combined Renewable Energy, Power and Digital businesses, and our plans to exit our equity ownership positions in Baker Hughes and AerCap,~~GE HealthCare, the timing ~~of closing~~ for such transactions, the ability to satisfy ~~closing conditions,~~any applicable pre-conditions, and the expected proceeds, consideration and benefits to GE;

•the continuing severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic and virus variants and resurgences; of businesses’ and governments’ responses to the pandemic, such as continued or new government-imposed lockdowns and travel restrictions; and of individual factors such as aviation passenger confidence, on our operations and personnel, on commercial activity and demand across our and our customers’ businesses, and on global supply chains;

•the extent to which the COVID-19 pandemic and related impacts, including global supply chain disruptions and price inflation, will continue to adversely impact our business operations, financial performance, results of operations, cash flows, financial position, the prices of our securities and the achievement of our strategic objectives;

•changes in macroeconomic and market conditions and market volatility, ~~(including developments and volatility arising from~~including impacts related to the COVID-19 ~~pandemic), including~~pandemic, risk of recession, inflation, supply chain constraints or disruptions, rising interest rates, perceived weakness or failures of banks, the value of securities and other financial assets (including our equity ~~ownership positions~~interests in ~~Baker Hughes and~~ AerCap and ~~expected equity interest in the Healthcare business after its spin-off)~~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 ~~position~~results and ~~performance;~~

•~~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;~~

•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 liquidity, funding profile, costs and competitivefinancial position;

•~~our liquidity and the amount and timing of our cash flows and earnings, which may be impacted by 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 Bank BPH, the amount and timing of any required capital contributions and any strategic actions that we may pursue;

•global economic trends, competition and geopolitical risks, including impacts from the ongoing conflict between Russia and Ukraine and the related sanctions and other measures, ~~changes~~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 ~~secular, cyclical~~demand for air travel and ~~competitive pressures in our Power business;~~other aviation industry dynamics related to the COVID-19 pandemic; pricing, cost, volume and the timing of ~~customer~~ investment by customers or industry participants and other factors in renewable energy markets; ~~demand for air travel and other dynamics related to the COVID-19 pandemic;~~ 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 ~~in improving operational performance~~ 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 ~~our Aviation business~~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 ~~extension~~the impact of the ~~U.S. wind Production Tax Credit)~~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 ~~changes,~~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" section ~~of this report and of~~in our Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022, as such descriptions may be updated or amended in any future reports we file with the SEC.

~~2022~~2023 1Q FORM 10-Q 3

ABOUT GENERAL ELECTRIC. General Electric Company (General Electric, GE or the Company) is a high-tech industrial company that operates worldwide through its ~~four~~three segments, ~~Aviation, Healthcare,~~Aerospace, Renewable Energy, and Power. Our products include commercial and military aircraft engines and systems; ~~healthcare systems and pharmaceutical diagnostics;~~ wind and other renewable energy generation equipment and grid solutions; and gas, steam, nuclear and other power generation equipment. We have significant global installed bases of equipment across these sectors, and services to support these products are also an important part of our business alongside new equipment sales.

The historical results of GE HealthCare and ~~Analysis of Financial Condition~~certain assets and ~~Results of Operations (MD&A) for more details about segment-level business descriptions, product and service offerings and competitive, regulatory and other trends, dynamics and developments. See also~~liabilities included in the ~~Consolidated Results section within MD&A and Note 2 to the~~spin-off are now reported in GE's consolidated financial statements as discontinued operations. We continue to refer to our reporting segments of Renewable Energy and Power, each of which are expected to become GE Vernova businesses, reflecting the organization and management of these businesses within GE today. Additionally, on January 1, 2023, we retrospectively adopted Accounting Standards Update No. 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for ~~information regarding our announced and recent business portfolio actions.~~Long-Duration Contracts. See Note 1 for further information.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A). The consolidated financial statements of General Electric Company 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. The MD&A should be read in conjunction with the Financial Statements and Notes to the consolidated financial statements.

CONSOLIDATED RESULTS

~~SIGNIFICANT DEVELOPMENTS. Share Buyback Authorization.~~ In the first quarter of 2022, GE’s Board of Directors authorized up to $3 billion of common share repurchases. GE expects to consider share repurchases as one of a number of potential capital allocation alternatives on an ongoing basis, along with organic and inorganic investments. There were no share repurchases during the three months ended March 31, 2022.

~~Steam Power.~~ 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 Électricité de France S.A. (EDF), which resulted in a reclassification of that business to held for sale. A non-cash, pre-tax impairment charge was taken related to the remaining business intangible and fixed assets of approximately $0.8 billion. This charge was recorded in continuing operations at Corporate. The sale transaction is expected to be finalized in the first half of 2023, subject to completion of the parties’ respective information and consultation processes and satisfaction of certain conditions, and closing the transaction is expected to result in a significant gain.

~~Russia and Ukraine.~~ In the first quarter of 2022, we recognized $0.2 billion of pre-tax charges primarily from impairments of receivables, inventory, contract assets and equity method investments directly resulting from the conflict between Russia and Ukraine and sanctions primarily related to our Aviation and Power businesses. As of March 31, 2022, we have approximately $0.6 billion of remaining assets, which relate to activity not subject to sanctions.

FIRST QUARTER ~~2022~~2023 RESULTS. Total revenues were ~~$17.0~~$14.5 billion, ~~flat~~up $1.8 billion for the quarter, driven primarily by ~~an increase~~increases at ~~Aviation, offset by decreases at Power~~Aerospace and ~~Renewable Energy.~~Power.

*Non-GAAP Financial Measure

~~2022 1Q FORM 10-Q~~ 4

*Non-GAAP Financial Measure

As of March 31, ~~2022~~2023, RPO increased ~~$0.9~~$5.5 billion (2%) from December 31, ~~2021,~~2022, primarily at ~~Aviation,~~Renewable Energy, from new orders at Grid and Onshore Wind exceeding sales; at Aerospace, from engines contracted under long-term service agreements that have now been put into service and ~~contract modifications; partially offset by decreases~~an increase in Commercial orders; and at Power, ~~from the continued wind down of the Steam Power new build coal business and sales outpacing new orders in~~driven by Gas Power services; at Healthcare, from the impact of contract renewal timing in services; and at Renewable Energy, primarily from sales exceeding new orders at Onshore Wind and the impact of a stronger U.S. dollar at Offshore Wind.equipment.

For the three months ended March 31, ~~2022~~2023, total revenues ~~were flat.~~increased $1.8 billion (14%). Equipment revenues ~~decreased,~~increased, primarily at Aerospace, due to an increase in commercial install and spare engine unit shipments; at Renewable Energy, due to higher revenue at Grid and Offshore Wind; and at Power, due to higher Gas Power Heavy-duty gas turbine deliveries. Services revenues increased, primarily at Aerospace, due to increased internal shop visit volume and commercial spare part shipments and higher prices, and at Power, due to growth in Gas Power non-contractual services, partially offset by a decrease at Renewable Energy, due to fewer ~~wind turbine~~repower unit deliveries at Onshore ~~Wind and lower revenue at Grid; at Power, due to decreased Gas Power equipment revenues on fewer HA shipments and Steam Power equipment on~~Wind.

For the three months ended March 31, ~~2022~~2023, continuing earnings ~~decreased $0.8~~increased $7.4 billion, primarily due to an increase in gains on equity securities of $6.1 billion, the nonrecurrence of the Steam asset sale impairment of $0.8 billion, ~~a net loss on~~an increase in segment profit of $0.4 billion, an increase in non-operating benefit income of $0.3 billion and the ~~value~~nonrecurrence of ~~equity securities of $0.6 billion compared to the prior year gain,~~ Russia and Ukraine charges of $0.2 billion. These increases were partially offset by an increase in provision for income tax of $0.2 billion and an increase in restructuring and other charges and separation costs of $0.1 billion, partially offset by a decrease in non-operating benefit costs of $0.6 billion, lower interest and other financial charges of $0.1 billion, higher profit on our run-off Insurance business of $0.1 billion and higher segment profit $0.1$0.2 billion. Adjusted earnings* ~~was~~were $0.3 billion, an increase of ~~$0.1~~$0.4 billion. Profit margin was ~~(3.1)%~~44.8%, ~~a decrease~~an increase from ~~1.4%, primarily due to the same net decreases as described above.~~(9.3)%. Adjusted profit* was $0.9 billion, an increase of ~~$0.2~~$0.5 billion organically*, due to increases at ~~Aviation and Power, partially offset by decreases~~Aerospace, Renewable Energy and ~~Healthcare.~~Power. Adjusted profit margin* was ~~5.8%~~6.4%, an increase of ~~110~~330 basis points organically*.

*Non-GAAP Financial Measure

~~2022~~2023 1Q FORM 10-Q 5

SEGMENT OPERATIONS. Refer to our Annual Report on Form 10-K for the year ended December 31, ~~2021,~~2022 for further information regarding our determination of segment profit for continuing operations and for our allocations of corporate costs to our segments.

(a) Includes interest and other financial charges of ~~$16~~$12 million and ~~$15~~$16 million and benefit for income taxes of ~~$47~~$51 million and ~~$31~~$47 million related to EFS within Corporate for the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, respectively.

~~AVIATION~~GE AEROSPACE. ~~Aviation’s~~Our results in the first quarter ~~2022~~of 2023 reflect ~~the~~ continued ~~recovery of the~~growth in demand for commercial market, although the global COVID-19 pandemic continues to have an adverse effect on the global airline industry, as well as on the global industrial supply chain with disruptions in material and labor.air travel. A key underlying driver of ~~Aviation’s~~our commercial engine and services business is global commercial air traffic, which in turn is driven by economic activity and consumer and business propensity to travel. Since the beginning of the pandemic in the first quarter of 2020, we have seen varied levels of recovery in global markets. Aviation regularly tracks global departures, which improved ~~39%~~21% during the first quarter of ~~2022~~2023 compared to the first quarter of ~~2021,~~2022, and now stands at approximately ~~75%~~97% of 2019 levels.

The air traffic growth trends vary by region given economic conditions, airline competition and government regulations. Consistent with industry projections, we estimate both narrowbody and widebody air traffic to return to 2019 levels ~~as of March 31, 2022. However, government travel restrictions, public health advisories, individuals' propensity to travel~~in late 2023 and ~~continued cases of~~grow in line with the virus drive varied levels of recovery regionally, due in large part to the emergence of COVID-19 virus variants. Aviation remains confident in the recovery, while actively monitoring the impact of travel restrictions, quarantine requirements, andglobal economic ~~and industry forecasts.~~conditions. 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. Current trends are in line with our recovery forecast, and we continue to expect domestic travel routes primarily served by single-aisle aircraft to recover before long-haul, international travel routes, which are primarily served by twin-aisle aircraft. Consistent with industry projections, Aviation continues to estimate single-aisle air traffic to recover to 2019 levels in early 2023, with twin-aisle air traffic recovering in early 2024, dependent on containing the spread of the virus, effective inoculation programs and government collaboration to encourage travel, particularly around reducing quarantine requirements.

~~2022~~2023 1Q FORM 10-Q 6

Aviation continues to take actions to protect its ability to serve its customers now and as the global airline industry recovers. Aviation’s deep history of innovation and technology leadership, commercial engine installed base of approximately 39,400 units, with approximately 10,900 units under long-term service agreements, and military engine installed base of approximately 26,200 units represents strong long-term fundamentals. Aviation expects to emerge from the current environment well-positioned to drive long-term profitable growth and cash generation over time.

For the three months ended March 31, ~~2022,~~2023, segment revenues were up ~~$0.6~~$1.4 billion ~~(12%~~(25%) and segment profit was up ~~$0.3~~$0.4 billion ~~(42%~~(46%).

RPO as of March 31, ~~2022~~2023 increased $2.2 billion (2%) from December 31, ~~2021, primarily~~2022, due to increases in both equipment and services. Equipment increased primarily due to an increase in Commercial orders since December 31, 2022. 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 ~~$0.6~~$1.4 billion ~~(12%~~(25%) organically*. Commercial Services revenues increased, primarily due to increased internal shop visit volume and ~~higher volume of~~ commercial spare part ~~shipments.~~shipments, and higher prices. Commercial Engines revenues ~~decreased,~~increased, primarily driven by ~~lower GEnx~~138 more commercial install and spare engine ~~production rates, supply chain constraints and product transition with fewer engine~~unit shipments, ~~on legacy programs, partially offset by more shipments on newer programs,~~ including 51127 more LEAP units versus the prior year. Military revenues ~~increased,~~decreased, primarily due to ~~88 more~~104 fewer engine shipments than the prior year, partially offset by product ~~mix.~~mix and growth in services.

~~HEALTHCARE.~~ ~~U.S. healthcare market demand continues to~~RENEWABLE ENERGY – will be ~~strong, however, Europe, the Middle East and Africa are still seeing the lingering effects~~part of COVID-19, and China has seen impacts in certain regions during the first quarter of 2022. We continue to see growth in hospital spending to increase capacity and improve quality of care. Both Healthcare Systems (HCS) and Pharmaceutical Diagnostics (PDx) demand has recovered to at or above pre-pandemic levels. We are experiencing substantial inflation and delays in sourcing key materials needed for our products, such as electronics and resins, delaying our ability to convert RPO to revenue. We have proactively managed sourcing and logistics, material and design costs to partially mitigate supply chain impacts. Delivering for our customers remains a top priority. In response to the inflation pressures we are experiencing, we have continued to manage price and value for our customers, as well as discretionary and structural cost in our business, in order to invest in research and development to drive long-term growth.

*Non-GAAP Financial Measure

~~2022 1Q FORM 10-Q~~ 7

We continue 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 announced a partnership with AliveCor to deliver medical-grade electrocardiograms (ECGs) taken by patients on an AliveCor device outside of the hospital setting, which will connect directly into GE Healthcare’s MUSE Cardiac Management System so physicians can view and evaluate clinical readings remotely. We received U.S. Food and Drug Administration pre-market approval for our End-tidal (Et) Control software for general anesthesia delivery on the Aisys CS2Vernova. ~~Anesthesia Delivery System.~~ The ~~Et Control software improves anesthesia delivery accuracy~~recently enacted Inflation Reduction Act of 2022 (IRA) introduces new and ~~simplifies workflows while reducing drug waste, lowering the cost of care and greenhouse gas emissions. We remain committed~~extends existing tax incentives for at least 10 years. The IRA is expected to ~~innovate and invest to create more integrated, efficient, and personalized precision healthcare.~~

RPO March 31, 2022 December 31, 2021
Equipment $ 4,282 $ 4,232
Services 10,118 10,375
Total RPO $ 14,399 $ 14,606

SEGMENT REVENUES AND PROFIT Three months ended March 31
2022 2021
Healthcare Systems $ 3,875 $ 3,825
Pharmaceutical Diagnostics 487 482
Total segment revenues $ 4,363 $ 4,308
Equipment $ 2,256 $ 2,227
Services 2,107 2,081
Total segment revenues $ 4,363 $ 4,308
Segment profit $ 538 $ 698
Segment profit margin 12.3 % 16.2 %

~~For the three months ended March 31, 2022, segment revenues were up $0.1 billion (1%) and segment profit was down $0.2 billion (23%).~~

~~RPO as of March 31, 2022 decreased $0.2 billion (1%) from December 31, 2021, primarily due to an increase in equipment orders, more than offset by the impact of contract renewal timing in services.~~

Revenues increased $0.1 billion (2%) organically*. Services revenues increased, driven by a return to pre-pandemic volume in PDx and the continued growth of HCS services. Equipment revenues were flat, driven by continued supply chain constraints, COVID-19 impacts in certain China regions and impacts from the Russia and Ukraine conflict.

~~RENEWABLE ENERGY.~~ ~~While we continue to expect long-term growth in U.S onshore wind, the expiry of U.S. Production Tax Credits (PTC) in 2021 and~~resolve recent U.S. policy uncertainty ~~together with rising inflation has~~that resulted in project delays and deferral of customer ~~investments. The~~investments in Onshore Wind and significantly increase near- and longer-term demand in the U.S. for onshore and offshore wind projects. While the offshore wind industry continues to expect ~~strong~~ global growth through the decade, cost pressures and the ability to compete with the rapid pace of innovation remain key challenges. Finally, our Grid Solutions business is positioned to support grid expansion and modernization needs. ~~We have experienced significant cost inflation in materials~~

Three months ended March 31
Onshore and Offshore sales in units 2022 2021
Wind Turbines 502 778
Wind Turbine Gigawatts 1.7 2.4
Repower units 151 —

*Non-GAAP Financial Measure

~~2022~~2023 1Q FORM 10-Q 87

RPO March 31, 2022 December 31, 2021
Equipment $ 18,728 $ 18,639
Services 12,682 12,872
Total RPO $ 31,410 $ 31,511
New product introductions account for a large portion of our RPO in Onshore and Offshore Wind, such as our 3 MW and 5 MW Onshore units, and our 12-14 MW Haliade-X Offshore units. Improving Onshore fleet availability and reducing the cost of new product platforms and blade technologies remain key priorities. We are also focused on our production capabilities and execution of our initial Haliade-X projects given the complexity and challenging nature of these new product introductions.

SEGMENT REVENUES AND PROFIT Three months ended March 31
2022 2021
Onshore Wind $ 1,906 $ 2,118
Grid Solutions equipment and services 668 795
Hydro, Offshore Wind and Hybrid Solutions 297 335
Total segment revenues $ 2,871 $ 3,248
Equipment $ 2,173 $ 2,844
Services 698 404
Total segment revenues $ 2,871 $ 3,248
Segment profit (loss) $ (434) $ (234)
Segment profit margin (15.1) % (7.2) %
At Grid, we observed strong European demand for High Voltage Direct Current (HVDC) solutions and are securing our position in the rapid growth offshore and onshore interconnection markets with products meeting the 2GW HVDC solution standard and developing new technology that solves for a denser, more resilient, stable and efficient electric grid and lower greenhouse gas emissions.


	Three months ended March 31

Onshore and Offshore sales in units		2023	2022
Wind Turbines		405	502
Wind Turbine Gigawatts		1.5	1.7
Repower units		50	151


RPO	March 31, 2023		December 31, 2022
Equipment	$	23,019	$	20,142
Services	12,775		12,688
Total RPO	$	35,795	$	32,830


SEGMENT REVENUES AND PROFIT	Three months ended March 31
		2023			2022




Onshore Wind		$	1,502		$	1,906
Grid Solutions equipment and services		824			668

Offshore Wind, Hydro and Hybrid Solutions		511			297
Total segment revenues		$	2,837		$	2,871

Equipment		$	2,311		$	2,173
Services		527			698
Total segment revenues		$	2,837		$	2,871

Segment profit (loss)		$	(414)		$	(434)
Segment profit margin		(14.6)		%	(15.1)		%

For the three months ended March 31, ~~2022,~~2023, segment revenues were down ~~$0.4 billion (12%)~~1% and segment losses were ~~up $0.2 billion (86%)~~down 5%.

RPO as of March 31, ~~2022 decreased $0.1~~2023 increased $3.0 billion (9%) from December 31, ~~2021~~2022 primarily from ~~sales~~new HVDC orders at Grid and orders exceeding ~~new orders~~revenue at Onshore Wind, primarily in North America.

Revenues increased $0.1 billion (5%) organically*, primarily from higher revenue at Grid and ~~the impact of a stronger U.S. dollar at~~ Offshore Wind, partially offset by new orders at Grid and Onshore Services exceeding sales. The decline in new equipment orders at Onshore Wind is primarily attributable to the U.S. market decline and increased commercial selectivity internationally.

~~Revenues decreased $0.3 billion (10%) organically* across all businesses, primarily from 276~~ fewer wind turbine and repower unit deliveries at Onshore Wind, primarily attributable to customer delays and ~~lower revenue~~deferrals during 2022 due to U.S. tax policy uncertainty.

Segment losses decreased 10% organically*, primarily attributable to higher volume at Grid ~~due to increased commercial selectivity,~~and improved pricing and impact of cost reduction initiatives at Onshore Wind and Grid, partially offset by higher ~~services revenue~~losses at ~~Onshore~~Offshore Wind ~~from a larger installed base~~associated with Haliade-X ramp up and ~~151 more repower unit deliveries.~~

~~Segment losses increased $0.2 billion (91%) organically*, primarily from~~ lower volume at Onshore Wind in the U.S. and Grid, lower margins at Onshore Wind and cost inflation across all businesses, partially offset by the impact of cost reduction initiatives. Onshore Wind results were adversely impacted by execution of lower margin RPO in North America and the impact of transitioning to newer product offerings internationally.Wind.

~~POWER.~~POWER – will be part of GE Vernova. During the ~~current period, global gas generation and~~three months ended March 31, 2023, GE gas turbine utilization ~~were both up mid-single-digits~~grew low-single digits with strength in the U.S., while global electricity demand was down mid-single digits due to ~~retirements and availability~~a milder winter. Utilization of the fleet continues to follow growing gas power generation despite lower demand, capturing decreases coming from coal and ~~nuclear units and weather in select markets, even as the market manages through the uncertainty and disruptions from the conflict in Ukraine.~~resilient asset usage with a dynamic Europe environment. Looking ahead, we anticipate H-class units to be commissioned into the ~~power market to~~serviceable installed base. As we continue to work in emerging markets, there could be ~~impacted by overcapacity~~uncertainty in the ~~industry, continued price pressure from competition on servicing the installed base, and the uncertain~~ timing of deal closures due to financing and other complexities. Power has proactively managed the ~~complexities~~impact of ~~working in emerging markets, as well as~~inflationary pressure by deploying lean initiatives to drive cost productivity, partnering with our suppliers and adjusting the ~~ongoing impacts~~pricing of ~~COVID-19.~~our products and services. We expect the impact of inflation will continue to be challenging and we will continue to take actions to manage. Although market factors related to the 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), ~~to differing degrees across markets globally,~~ we expect the gas power market to remain stable over the next decade with gas power generation continuing to grow low-single-digits. We believe gas power will play a critical role in the energy ~~transition and are encouraged by the growth in Gas Power Services.~~transition. We remain focused on our underwriting discipline and risk management to ensure we are 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 non-binding memorandum of understanding for GE Steam Power to sell a portion of its business to Électricité de France S.A. (EDF), which resulted in a reclassification of that business to held for sale. In the fourth quarter of 2022, we signed a binding agreement and expect to complete the sale, subject to regulatory approvals and other customary closing conditions, in the second half of 2023. On April 3, 2023, our Gas Power business acquired Nexus Controls, a business specializing in aftermarket control system upgrades and controls field services that is expected to strengthen our quality, service, and delivery of our customers' assets.

*Non-GAAP Financial Measure

We continue to invest in new product ~~development, such as~~development. In Nuclear we are investing in the design of small modular reactors where we signed an agreement in the period for the deployment of the technology. In Gas Power, our HA-Turbines ~~and Nuclear small modular reactors.~~have over 1.8 million operating hours across the installed base. Our fundamentals remain strong with approximately ~~$67.8~~$69.4 billion in RPO, including 28 HA-Turbines, and a gas turbine installed base ~~greater than~~of approximately 7,000 units, including 80 HA-Turbines, which has nearly doubled since 2019, and approximately ~~1,750~~1,800 units under long-term service agreements. We also continue to invest for the long-term, including decarbonization pathways that will provide customers with cleaner, more reliable power.


RPO	March 31, 2023		December 31, 2022
Equipment	$	12,056	$	11,561
Services	57,382		57,420
Total RPO	$	69,438	$	68,981

*Non-GAAP Financial Measure

~~2022 1Q FORM 10-Q~~ 9

RPO March 31, 2022 December 31, 2021
Equipment $ 11,812 $ 12,169
Services 55,941 56,569
Total RPO $ 67,752 $ 68,738

For the three months ended March 31, ~~2022,~~2023, segment revenues were ~~down $0.4~~up $0.3 billion ~~(11%~~(9%) and segment profit was up ~~$0.1 billion.~~19%.

RPO as of March 31, ~~2022 decreased $1.0~~2023 increased $0.5 billion (1%) from December 31, ~~2021,~~2022, primarily driven by ~~the continued wind down of the Steam Power new build coal business, sales outpacing new orders in~~ Gas Power ~~contractual services and the impact of the Russia and Ukraine conflict at Power Conversion.~~equipment.

Revenues ~~decreased $0.2~~increased $0.4 billion ~~(6%~~(11%) organically*, primarily due to ~~decreased~~growth in Gas Power ~~equipment revenues on fewer HA shipments~~non-contractual services and Aeroderivatives and higher Gas Power Heavy-duty gas turbine deliveries, partially offset by a reduction in Steam Power equipment on the exit of new build ~~coal, partially offset by higher Gas Power Aeroderivative deliveries.~~coal.

Profit increased ~~$0.1 billion~~35% organically* primarily due to ~~increases~~growth in ~~Steam~~Gas Power ~~from prior year project and legal charges that did not repeat.~~non-contractual services.

CORPORATE. The Corporate amounts related to revenues and earnings include the results of disposed businesses, certain amounts not included in operating segment results because they are excluded from measurement of their operating performance for internal and external purposes and the elimination of intersegment activities. In addition, the Corporate 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.

Corporate includes the results of the GE Digital business and our remaining GE Capital businesses, our former financial services business, including our run-off Insurance business (see ~~Other Items - Insurance~~Note 13 for further information).

REVENUES AND OPERATING PROFIT (COST) Three months ended March 31
2022 2021
Corporate revenues $ 220 $ 227
Insurance revenues 767 755
Eliminations and other (285) (379)
Total Corporate revenues $ 702 $ 603
Gains (losses) on purchases and sales of business interests $ 4 $ 3
Gains (losses) on equity securities (219) 347
Restructuring and other charges (35) (106)
Separation costs (119) —
Steam asset sale impairment (Notes 6 and 7) (824) —
Russia and Ukraine charges (230) —
Insurance profit (loss) (Note 12) 225 138
Adjusted total corporate operating costs (Non-GAAP) (129) (221)
Total Corporate operating profit (cost) (GAAP) $ (1,328) $ 160
Less: gains (losses), impairments, Insurance, and restructuring & other (1,199) 382
Adjusted total corporate operating costs (Non-GAAP) $ (129) $ (221)
Functions & operations $ (78) $ (188)
Environmental, health and safety (EHS) and other items (51) (55)
Eliminations (1) 23
Adjusted total corporate operating costs (Non-GAAP) $ (129) $ (221)

*Non-GAAP Financial Measure

~~2022~~2023 1Q FORM 10-Q 109


REVENUES AND OPERATING PROFIT (COST)	Three months ended March 31
	2023		2022
GE Digital revenues	$	237	$	220
Insurance revenues (Note 13)	791		764
Eliminations and other	(181)		(284)
Total Corporate revenues	$	848	$	700

Gains (losses) on purchases and sales of business interests	$	(55)	$	4
Gains (losses) on equity securities	5,906		(219)
Restructuring and other charges (Note 20)	(151)		(35)
Separation costs (Note 20)	(205)		(99)
Steam asset sale impairment	—		(824)
Russia and Ukraine charges	—		(230)

Insurance profit (loss) (Note 13)	70		106
Adjusted total Corporate operating costs (Non-GAAP)	(109)		(122)
Total Corporate operating profit (cost) (GAAP)	$	5,456	$	(1,419)
Less: gains (losses), impairments, Insurance, and restructuring & other	5,565		(1,297)
Adjusted total Corporate operating costs (Non-GAAP)	$	(109)	$	(122)

Functions & operations	$	(145)	$	(71)
Environmental, health and safety (EHS) and other items	30		(51)
Eliminations	6		(1)
Adjusted total Corporate operating costs (Non-GAAP)	$	(109)	$	(122)

Adjusted total corporate operating costs* excludes gains (losses) on purchases and sales of business interests, significant, higher-cost restructuring programs, separation costs, gains (losses) on equity securities, impairments and our run-off Insurance business profit. We believe that adjusting corporate costs to exclude the effects of items that are not closely associated with ongoing corporate operations provides management and investors with a meaningful measure that increases the period-to-period comparability of our ongoing corporate costs.

For the three months ended March 31, ~~2022~~2023, , revenues increased by $0.1 billion due to lower intersegment eliminations. Corporate operating profit ~~decreased~~increased by ~~$1.5~~$6.9 billion due to $6.1 billion of higher gains on equity securities, primarily related to a gain on our GE HealthCare investment, lower losses on our AerCap investments, partially offset by lower gains on our Baker Hughes investments. Corporate operating profit increased as the result of a $0.8 billion of non-cash impairment charges related to property, plant and equipment and intangible assets as a result of reclassification of a portion of our Steam Power business to held for sale in the first quarter of ~~2022 (See Note 2). In addition,~~2022. Corporate operating profit ~~decreased~~also increased due to ~~a $0.6 billion change in gains (losses) on equity securities, primarily related to $1.7~~$0.2 billion of ~~mark to market losses on our AerCap shares and note, partially offset by $1.2 billion of higher mark to market gains on our BKR shares. Operating profit decreased $0.2 billion~~charges from contracts and recoverability of assets in connection with the conflict between Russia and Ukraine and resulting sanctions, primarily within our ~~Aviation~~Aerospace and Power businesses ~~and $0.1 billion~~in the first quarter of ~~incurred expenses related to business separation costs.~~2022. These decreases were partially offset by $0.1 billion of ~~lower restructuring and other charges in 2022, primarily related to our Aviation segment,~~higher separation costs and $0.1 billion of higher ~~income in our run-off Insurance business, primarily driven by lower claims~~restructuring and ~~strong investment results.~~other charges.

Adjusted total corporate operating costs* ~~decreased~~remained relatively flat due to core reductions and favorability from higher bank interest, partially offset by ~~$0.1 billion primarily as the result of favorable operating results in EFS and core reductions.~~foreign exchange dynamics.

OTHER CONSOLIDATED INFORMATION

~~RESTRUCTURING.~~RESTRUCTURING AND SEPARATION COSTS. 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,Significant, higher-cost restructuring programs are excluded from measurement of segment operating performance for internal and external purposes; those excluded amounts are reported in Restructuring and other charges for ~~Corporate (see the Corporate section).~~

RESTRUCTURING AND OTHER CHARGES Three months ended March 31
2022 2021
Workforce reductions $ 23 $ 211
Plant closures & associated costs and other asset write-downs 29 26
Acquisition/disposition net charges and other 12 5
Other (3) —
Total restructuring and other charges $ 61 $ 242
Cost of equipment/services $ 31 $ 101
Selling, general and administrative expenses 33 148
Other income (3) (7)
Total restructuring and other charges $ 61 $ 242
Aviation $ 5 $ 62
Healthcare 13 39
Renewable Energy 6 76
Power 34 49
Corporate 3 16
Total restructuring and other charges $ 61 $ 242
Restructuring and other charges cash expenditures $ 154 $ 223

~~SEPARATION COSTS.~~ ~~In November 2021, the company announced its plan to form three industry-leading, global public companies focused~~external purposes. See Note 20 for further information on the growth sectors of aviation, healthcare, and energy. Over the next two years, we expect to incur separation, transition, and operational costs of approximately $2 billion and net tax costs of less than $0.5 billion, which will depend on specifics of the transaction.

INTEREST AND OTHER FINANCIAL CHARGES were ~~$0.4~~$0.3 billion and ~~$0.5~~$0.4 billion for the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, respectively. The decrease was primarily due to lower average borrowings balances, partially offset by a lower allocation of interest expense to discontinued operations. Inclusive of interest expense in discontinued operations, total interest and other financial charges were $0.4 billion and $0.7 billion for the three months ended March 31, 2022 and 2021, respectively.balances. The primary components of interest and other financial charges are interest on short- and long-term borrowings.

*Non-GAAP Financial Measure

~~2022 1Q FORM 10-Q~~ 11

POSTRETIREMENT BENEFIT PLANS. Refer to Note 1314 for information about our pension and retiree benefit plans.

INCOME TAXES. For the three months ended March 31, ~~2022~~,2023, the ~~consolidated~~ income tax rate was ~~(38.8)%~~4.2% compared to ~~59.7%~~(2.5)% for the three months ended March 31, ~~2021.~~2022. The negative tax rate for 2022 reflects a tax ~~provision~~expense on a pre-tax loss.

The ~~consolidated~~ provision for income taxes was ~~$0.2~~$0.3 billion for the three months ended March 31, ~~2022~~2023 and ~~$0.1 billion~~an insignificant amount for the three months ended March 31, ~~2021.~~2022. The ~~provision increased~~increase in tax was primarily due to ~~a decrease in favorable audit resolutions outside~~ the ~~U.S. and an~~tax effect of the increase in ~~losses~~pre-tax income excluding gains (losses) on our interests in ~~foreign jurisdictions where they are not likely~~GE HealthCare, AerCap and Baker Hughes and separation costs.

For the three months ended March 31, 2023, the adjusted income tax rate* was 28.0% compared to ~~be utilized. There was not a significant benefit associated with the change from pre-tax income~~500.0% for the three months ended March 31, ~~2021 to a pre-tax loss~~2022. The adjusted provision (benefit) for ~~the three months ended March 31, 2022 as the pre-tax loss for 2022 included asset impairments~~income taxes* was $0.2 billion in 2023 and ~~a net loss on our interest~~an insignificant amount in ~~AerCap and Baker Hughes which included losses without tax benefit. Excluding these items, there was an~~2022. The increase in ~~pre-tax income from the three months ended March 31, 2021 compared~~tax was primarily due to the ~~three months ended March 31, 2022.~~tax effect of the increase in adjusted earnings before taxes*.

*Non-GAAP Financial Measure

2023 1Q FORM 10-Q 10

~~For the three months ended March 31, 2021~~,the consolidated income tax provision was $0.1 billion compared to $0.1 billion for the three months ended March 31, 2020. The provision increased slightly as there was a tax expense associated with the unrealized gain on our remaining interest in Baker Hughes in the first quarter of 2021 compared to a tax benefit associated with the unrealized loss recorded in the first quarter of 2020. This was largely offset by the nonrecurrence of the tax expense associated with the disposition of the BioPharma business in the first quarter of 2020.

DISCONTINUED OPERATIONS primarily comprise our former GE HealthCare business, our mortgage portfolio in Poland, our GE Capital Aviation Services (GECAS) business, ~~discontinued in 2021, our mortgage portfolio in Poland,~~ and other trailing assets and liabilities associated with prior dispositions. Results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods presented and the notes to the financial statements have been adjusted on a retrospective basis. See Note 2 for further information regarding our businesses in discontinued operations.

CAPITAL RESOURCES AND LIQUIDITY

FINANCIAL POLICY. We intend to maintain a disciplined financial policy with a sustainable investment-grade long-term credit rating. In the fourth quarter of 2021, the Company announced plans to form three industry-leading, global, investment-grade companies, each of which will determine their own financial policies, including capital allocation, dividend, mergers and acquisitions and ~~buy back~~share buyback decisions.

During the first quarter of 2023, the financial markets experienced disruption due to certain bank failures. Given the diversification and credit profile of GE’s exposure to banking counterparties, we do not foresee any material financial impact from this disruption at this time, we will continue to monitor and will take action as needed.

LIQUIDITY POLICY.We maintain a strong focus on liquidity and define our liquidity risk tolerance based on sources and uses to maintain a sufficient liquidity position to meet our business needs and financial obligations under both normal and stressed conditions. We believe that our consolidated liquidity and availability under our revolving credit facilities will be sufficient to meet our liquidity needs.

CONSOLIDATED LIQUIDITY. Our primary sources of liquidity consist of cash and cash equivalents, free cash flows* from our operating businesses, cash generated from asset sales and dispositions, and short-term borrowing facilities, including revolving credit facilities. Cash generation can be subject to variability based on many factors, including seasonality, receipt of down payments on large equipment orders, timing of billings on long-term contracts, timing of ~~Aviation-related~~Aerospace-related customer allowances, market conditions and our ability to execute dispositions. Total cash, cash equivalents and restricted cash was ~~$12.8~~$12.0 billion at March 31, ~~2022,~~2023, of which ~~$6.8~~$8.0 billion was held in the U.S. and ~~$6.0~~$4.0 billion was held outside the U.S.

Cash held in non-U.S. entities has generally been reinvested in active foreign business operations; however, substantially all of our unrepatriated earnings were subject to U.S. federal tax and, if there is a change in reinvestment, we would expect to be able to repatriate available cash (excluding amounts held in countries with currency controls) without additional federal tax cost. Any foreign withholding tax on a repatriation to the U.S. would potentially be partially offset by a U.S. foreign tax credit. With regards to our announcement to form three public companies, ~~we expect that~~the planning for and execution of ~~this separation will~~the separations has impacted and is expected to continue to impact indefinite reinvestment. The impact of ~~that change~~such changes will be recorded when there is a specific change in ability and intent to reinvest earnings.

Cash, cash equivalents and restricted cash at March 31, ~~2022~~2023 included ~~$2.3~~$1.6 billion of cash held in countries with currency control restrictions (including a total of $0.1 billion in Russia and Ukraine) and ~~$0.4~~$0.8 billion of restricted use cash. Cash held in countries with currency controls represents amounts held in countries that may restrict the transfer of funds to the U.S. or limit our ability to transfer funds to the U.S. without incurring substantial costs. Restricted use cash represents amounts that are not available to fund operations, and primarily comprised funds restricted in connection with certain ongoing litigation matters. Excluded from cash, cash equivalents and restricted cash was ~~$0.8~~$0.7 billion of cash in our run-off Insurance business, which was classified as All other assets in the Statement of Financial Position.

~~In connection with the program we launched in 2020 to fully monetize our Baker Hughes position over approximately three years, we received proceeds of $1.3 billion in~~During the first quarter of ~~2022. In addition,~~2023, we received total proceeds of $1.8 billion from the sale of AerCap shares. We expect to fully monetize our stake in AerCap over time. We received proceeds of $0.2 billion in the first quarter of 2023, and have now fully monetized our Baker Hughes position. As part of the spin-off of GE HealthCare completed in the first quarter of 2023, we retained an approximately 19.9% stake of GE HealthCare common stock. We intend to exit our stake in GE HealthCare over time, in an orderly manner.

WeFollowing approval of a statutory permitted accounting practice in 2018 by our primary insurance regulator, the Kansas Insurance Department (KID), we provided a total of ~~$11.4~~$13.2 billion of capital contributions to our insurance subsidiaries, ~~since 2018,~~ including ~~$2.0~~$1.8 billion in the first quarter of ~~2022, and~~2023. We expect to provide ~~further~~the final capital ~~contributions~~contribution of approximately ~~$3.6~~$1.8 billion ~~through 2024. These contributions are subject to ongoing monitoring by~~in the ~~Kansas Insurance Department (KID), and the total amount to be contributed could increase or decrease, or the timing could be accelerated, based upon the results~~first quarter of ~~reserve adequacy testing or a decision by KID to modify the schedule~~2024, pending completion of ~~contributions set forth in January 2018. We are required to maintain specified capital levels at these insurance subsidiaries under capital maintenance agreements.~~our December 31, 2023 statutory reporting process. See Note 13 for further information.

*Non-GAAP Financial Measure

On March 6, 2022, ~~1Q FORM 10-Q~~ 12the Board of Directors authorized the repurchase of up to $3 billion of our common stock. In connection with this authorization, we repurchased 3.2 million shares for $0.3 billion during the three months ended March 31, 2023. Additionally, during the first quarter of 2023, we elected to redeem 3 million of our outstanding shares of GE series D preferred stock for total cash spend of $3.0 billion.

BORROWINGS. Consolidated total borrowings were ~~$33.6~~$22.4 billion and ~~$35.2~~$24.1 billion at March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively, a decrease of $1.6 billion. The reduction in borrowings was driven ~~primarily~~ by $1.8 billion of net ~~repayments~~maturities and ~~maturities~~repayments of debt, ~~of $1.2~~partially offset by $0.2 billion ~~and $0.3 billion~~primarily related to changes in foreign exchange rates.

We have in place committed revolving credit facilities totaling ~~$14.4~~$13.9 billion at March 31, ~~2022,~~2023, comprising a $10.0 billion unused back-up revolving syndicated credit facility and a total of ~~$4.4~~$3.9 billion of bilateral revolving credit facilities.

*Non-GAAP Financial Measure

2023 1Q FORM 10-Q 11

CREDIT RATINGS AND CONDITIONS. We have relied, and may continue to rely, on the short- and long-term debt capital markets to fund, among other things, a significant portion of our operations. The cost and availability of debt financing is influenced by our credit ratings. Moody’s Investors Service (Moody’s), Standard and Poor’s Global Ratings (S&P), and Fitch Ratings (Fitch) currently issue ratings on our short- and long-term debt. Our credit ratings as of the date of this filing are set forth in the ~~table below.~~following table.


	Moody's	S&P	Fitch
Outlook	Negative	~~CreditWatch Negative~~Stable	Stable
Short term	P-2	A-2	F3F2
Long term	Baa1	BBB+	BBB

We are disclosing our credit ratings and any current quarter updates to these ratings to enhance understanding of our sources of liquidity and the effects of our ratings on our costs of funds and access to liquidity. Our ratings may be subject to a revision or withdrawal at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating. For a description of some of the potential consequences of a reduction in our credit ratings, see the Financial Risks section of Risk Factors in ~~this report.~~our Annual Report on Form 10-K for the year ended December 31, 2022.

Substantially all of the Company's debt agreements in place at March 31, ~~2022~~2023 do not contain material credit rating covenants. Our unused back-up revolving syndicated credit facility and certain of our bilateral revolving credit facilities contain a customary net debt-to-EBITDA financial covenant, which we satisfied at March 31, ~~2022.~~2023.

The Company may from time to time enter into agreements that contain minimum ratings requirements. The following table provides a summary of the maximum estimated liquidity impact in the event of further downgrades below each stated ratings level.


Triggers Below	At March 31, ~~2022~~2023
BBB+/A-2/P-2	$	4118
BBB/A-3/P-3	~~247~~167
BBB-	~~1,093~~1,197
BB+ and below	~~494~~577

Our most significant contractual ratings requirements are related to ordinary course commercial activities. The timing within the quarter of the potential liquidity impact of these areas may differ, as can the remedies to resolving any potential breaches of required ratings levels.

FOREIGN ~~EXCHANGE.~~EXCHANGE AND INTEREST RATE RISK. As a result of our global operations, we generate and incur a significant portion of our revenues and expenses in currencies other than the U.S. dollar. Such principal currencies include the euro, the Chinese renminbi, the Indian rupee and ~~Japanese yen,~~the British pound sterling, among others. The effects of foreign currency fluctuations on earnings was less than $0.1 billion for both the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022. See Note 1921 for further information about our risk exposures, our use of derivatives, and the effects of this activity on our financial statements.

STATEMENT OF CASH FLOWS

CASH FLOWS FROM CONTINUING OPERATIONS. The most significant source of cash in CFOA is customer-related activities, the largest of which is collecting cash resulting from product or services sales. The most significant operating use of cash is to pay our suppliers, employees, tax authorities and post retirement plans.

Cash ~~used for~~from operating activities was ~~$0.5~~$0.2 billion in ~~2022, a decrease~~2023, an increase of $~~2.1~~1.1 billion compared ~~with 2021,~~to 2022, primarily due to: a decrease in financial services-related cash collateral paid net of settlements on derivative contracts of $1.6 billion, which is a standard market practice to minimize derivative counterparty exposures; a decrease in cash used for All other operating activities primarily due to the nonrecurrence of settlements of factoring related liabilities of $0.4 billion, an increase in ~~Aviation-related customer allowance accruals~~net income (after adjusting for depreciation of ~~$0.3 billion (compared~~property, plant, and equipment, amortization of intangible assets and non-cash (gains) losses related to ~~an insignificant~~our retained ownership interests in GE HealthCare, AerCap, and Baker Hughes) primarily in our Aerospace business; and a decrease ~~in 2021) and the nonrecurrence of the settlement of an Alstom legacy legal matter of $0.2 billion in 2021; partially offset by an increase~~ in cash used for working capital of ~~$0.4~~$0.5 billion. The components of All other operating activities were as follows:


Three months ended March 31	2023		2022
Increase (decrease) in Aerospace-related customer allowance accruals	$	135	$	282
Net interest and other financial charges/(cash paid)	(79)		31
Increase (decrease) in employee benefit liabilities	125		(113)
Net restructuring and other charges/(cash expenditures)	(1)		(106)
Other	(54)		(5)
All other operating activities	$	125	$	89

The cash impacts from changes in working capital compared to prior year were as follows: current receivables of ~~$(1.7)~~$1.1 billion, driven by higher ~~volume and lower~~ collections, partially offset by ~~decreases in sales of receivables to third parties in 2021;~~higher volume; inventories, including deferred inventory, of ~~$(0.3)~~$(0.5) billion, driven by ~~lower~~higher material purchases, partially offset by higher liquidations; current contract assets of ~~$0.5~~$(0.2) billion, driven by higher billings on our long-term service agreements, partially offset by higher revenue recognition on those agreements; accounts payable and equipment project ~~accruals~~payables of ~~$0.4~~$0.1 billion, driven by ~~lower~~higher volume, partially offset by higher disbursements related to purchases of materials in prior ~~periods~~periods; and progress collections and current deferred income of ~~$0.7 billion, driven by lower liquidations.~~less than $0.1 billion.

~~2022~~2023 1Q FORM 10-Q 1312

Cash ~~used for~~from investing activities was ~~$0.5~~$1.3 billion in ~~2022,~~2023, an increase of $1.3 billion compared ~~with 2021,~~to 2022, primarily due to: ~~lower~~higher cash received related to net settlements between our continuing operations and businesses in discontinued operations ~~(primarily GECAS)~~ of $0.9 billion, which primarily related to GE HealthCare in connection with the spin-off (a component of All other investing activities); ~~an increase in purchases of insurance investment securities of $0.6 billion; partially offset by~~and an increase in proceeds of ~~$0.6~~$0.7 billion from the sales of our retained ownership ~~interest~~interests in AerCap and Baker Hughes. Cash used for additions to property, plant and equipment and internal-use software, which are components of free cash flows*, was ~~$0.4~~$0.3 billion in both ~~2022~~2023 and ~~2021.~~2022.

Cash used for financing activities was ~~$1.5~~$5.2 billion in ~~2022, a decrease~~2023, an increase of ~~$0.1~~$3.8 billion compared ~~with 2021,~~to 2022, primarily due to: ~~lower~~cash paid for redemption of GE preferred stock of $3.0 billion in 2023; higher net debt maturities of $0.6 billion; and an increase in purchases of GE common stock for treasury of $0.3 billion.

CASH FLOWS FROM DISCONTINUED OPERATIONS

Cash used for operating activities of discontinued operations was $0.4 billion in 2023, an increase of $0.8 billion compared with 2022, primarily driven by higher disbursements related to purchases of materials in prior periods, a decrease in net income and higher separation costs related to our former GE HealthCare business.

Cash used for investing activities of discontinued operations ~~billion; partially offset~~was $3.1 billion in 2023, an increase of $2.7 billion compared with 2022, primarily driven by ~~lower~~the deconsolidation of GE HealthCare cash ~~received on derivatives hedging foreign currency debt~~and equivalents of ~~$0.1~~$1.8 billion and higher net settlements between our discontinued operations and businesses in continuing operations of $0.9 billion.

~~SUPPLY CHAIN FINANCE PROGRAMS~~Cash from financing activities of discontinued operations ~~. We facilitate voluntary supply chain finance programs~~was $2.0 billion in 2023, an increase of $2.0 billion compared with ~~third parties, which provide participating suppliers~~2022, primarily driven by GE HealthCare's long-term debt issuance in connection with the ~~opportunity to sell their GE receivables to third parties at the sole discretion~~spin-off of both the suppliers and the third parties. At March 31, 2022 and December 31, 2021, included in accounts payable was $3.3 billion and $3.4 billion, respectively, of supplier invoices that are subject to the third-party programs. Total supplier invoices paid through these third-party programs were $1.9 billion and $1.6 billion for the three months ended March 31, 2022 and 2021, respectively.$2.0 billion.

CRITICAL ACCOUNTING ESTIMATES. Refer to the Other Items - Insurance section for further discussion of the accounting estimates and assumptions in our insurance reserves and their sensitivity to change. See Notes 1 and 13 for further information. Please refer to the Critical Accounting Estimates ~~and Other Items sections within MD&A~~ and Note 1 to the consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 for aadditional discussion of ~~our~~ accounting policies and critical accounting estimates.

OTHER ITEMS

~~NEW ACCOUNTING STANDARDS.~~INSURANCE. The run-off insurance operations of North American Life and Health (NALH) include Employers Reassurance Corporation (ERAC) and Union Fidelity Life Insurance Company (UFLIC). ERAC primarily assumed 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 assumed long-term care insurance, structured settlement annuities with and without life contingencies and variable annuities from Genworth Financial ~~Accounting Standards Board issued~~Inc. (Genworth) and has been closed to new ~~guidance on accounting for long-duration insurance contracts that is effective for our interim and annual periods beginning~~business since 2004.

On January 1, 2023, we adopted Accounting Standards Update No. 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (ASU 2018-12). See Notes 1 and ~~applied retrospectively~~13 for further information.

Key Portfolio Characteristics

Long-term care insurance contracts. The long-term care insurance contracts we reinsure provide coverage at varying levels of benefits to ~~January 1, 2021~~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.

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


December 31, 2022	ERAC			UFLIC			Total
GAAP: Ending balance of reserves at locked-in rate	$	17,750		$	5,318		$	23,068
Gross statutory 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
GAAP: Ending balance of reserves at locked-in rate per policy (in actual dollars)	$	97,700		$	101,100		$	98,500
GAAP: Ending balance of reserves at locked-in rate per covered life (in actual dollars)	73,500			101,100			78,400
Statutory: Gross reserves per policy (in actual dollars)(a)	135,800			120,800			132,400
Statutory: Gross reserves per covered life (in actual dollars)(a)	102,200			120,800			105,500
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

(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 13.

*Non-GAAP Financial Measure

2023 1Q FORM 10-Q 13

Structured settlement annuities. We reinsure approximately 26,000 structured settlement annuities with an average attained age of 55. These structured settlement annuities were primarily underwritten on impaired lives (i.e., shorter-than- average life expectancies) at origination and have projected payments extending decades into the ~~transition date)~~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). Unlike long-term care insurance, structured settlement annuities offer no ability to require additional premiums or reduce benefits.

Life Insurance contracts. 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. At December 31, 2022, across our U.S. and Canadian life insurance portfolio, we reinsure approximately $59 billion of net amount at risk (i.e., difference between the death benefit and any accrued cash value) from approximately 1.4 million policies with an average attained age of 61. In 2022, our incurred claims were approximately $0.5 billion with an average individual claim of approximately $46,000. The covered products primarily include permanent life insurance and 20- and 30-year level term insurance. We ~~will adopt the new guidance using the modified retrospective transition method where permitted. We expect adoption~~anticipate a significant portion of the ~~new guidance will significantly change~~20-year level term policies, which represent approximately 17% of the net amount of risk, to lapse through 2024 as the policies reach the end of their 20-year level premium period.

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 benefits to be paid to or on behalf of policyholders and related expenses less the present value of future net premiums and are estimated based on actuarial assumptions such as mortality, morbidity, terminations, and expenses. The liability is measured for ~~measurements~~each group of contracts (i.e. cohorts) using current cash flow assumptions.

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. We review at least annually in the third quarter, future policy benefit reserves cash flow assumptions, except related claim expenses which remain locked-in, and if the review concludes that the assumptions need to be updated, future policy benefit reserves are adjusted retroactively to the ASU2018-12 transition date based on the revised net premium ratio using actual historical experience, updated cash flow assumptions, and the locked-in discount rate with the effect of those changes recognized in current period earnings. Our annual review procedures include updating certain experience studies since our last completed review, independent actuarial analysis (principally on long-term care insurance exposures) and review of industry benchmarks. The review of experience and assumptions is a comprehensive and complex process that 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 ~~long-duration~~run-off insurance ~~liabilities~~operations consists of reinsurance from multiple ceding insurance entities pursuant to treaties having complex terms and ~~materially affect our consolidated financial statements~~conditions. The review relies on claim and ~~require changes~~policy information provided by these ceding entities and considers the reinsurance treaties and underlying policies. In order to ~~our actuarial, accounting~~utilize that information for purposes of completing experience studies covering all key assumptions, we perform detailed procedures to conform and ~~financial reporting processes; systems;~~validate the data received from the ceding entities. Our long-term care insurance portfolio includes coverage where credible claim experience for higher attained ages is still emerging, and ~~internal controls.~~ 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.

The ~~new guidance requires~~primary cash flow assumptions used in the ~~measurement~~annual review include:

Morbidity. Morbidity assumptions used in estimating future policy benefit reserves are based on estimates of ~~various~~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 insurance ~~liabilities~~exposures, estimating expected future costs includes assessments of incidence (probability of a claim), utilization (amount of available benefits expected to be ~~reviewed at least annually~~incurred) and ~~updated if~~continuance (how long the claim will last, including claim terminations due to death or recovery).

Rate of Change in Morbidity. Our review incorporates our best estimates of projected future changes in the morbidity rates reflected in our base claim incidence rates. 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 actuarial judgment considers factors such as the work performed by internal and external independent actuarial experts engaged to advise us in our annual review, the observed actual experience orin our portfolios measured against our base assumptions, industry developments, and other ~~evidence indicates previous assumptions warrant revision with any required changes recorded in earnings. These changes will result~~trends, including advances in the ~~elimination~~state of medical care and health-care technology development.

Terminations. Terminations include active life mortality and lapse. 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. Lapse refers to the rate at which the underlying policies are cancelled due to non-payment of premiums by a policyholder. Lapse 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.

Future long-term care premium ~~deficiency testing~~rate increases. Substantially all long-term care insurance policies that are currently premium paying 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. 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 ~~shadow adjustments. Under~~precedents in establishing our current expectations.

2023 1Q FORM 10-Q 14

Included in Insurance losses and annuity benefits in our Statement of Earnings (Loss) for the ~~new guidance,~~years ended December 31, 2022 and 2021, are favorable pre-tax adjustments of $404 million and $408 million, respectively, from updating the net premium ratio after updating for actual historical experience each quarter and updating of future cash flow assumptions in the third quarter of each year.

Sensitivities. The following table provides sensitivities with respect to the impact of changes of key cash flow assumptions underlying our future policy benefit reserves using the locked-in discount rate assumption and have been estimated across the entire product line rather than at an individual cohort level. As our insurance operations are in run-off, the locked-in discount rate at the ASU 2018-12 transition date is the discount rate ~~will be equivalent to~~used for the ~~upper-medium grade (i.e., single A) fixed-income instrument yield reflecting the duration characteristics~~computation of interest accretion on future policy benefit reserves. Many of our assumptions are interdependent and require evaluation individually and in the aggregate across all insurance ~~liabilities and is required to be updated~~products. Small changes in ~~each reporting period with changes recorded~~the amounts used in ~~Accumulated other comprehensive income (AOCI). At~~ the ~~transition date, we expect the most substantial impact to~~sensitivities could result in ~~a material decrease~~materially different outcomes from those reflected below. In addition, the effects of changes to ~~shareholders’ equity, primarily from a reduction in AOCI attributable to remeasuring~~cash flow assumptions underlying our ~~insurance liabilities using the single A rate, which is lower than our current locked-in discount rate,~~future policy benefit reserves may be partially ~~offset by the removal of shadow adjustments. This reduction to AOCI will be significantly greater than that derived by applying the overall discount rate sensitivity disclosed~~or wholly reflected in the ~~GAAP Reserve Sensitivities within~~period in which the ~~Other Items section of our Annual Report on Form 10-K for the year ended December 31, 2021.~~assumptions are changed and/or over future periods and may vary across cohorts.

2021 assumption

2022 assumption

Hypothetical change in 2022 assumption

Estimated adverse impact to projected present value of future cash flows

(In millions, pre-tax)

Morbidity:

Long-term care insurance incidence rates

Based on company experience

5% increase in incidence rates

$600

Long-term care insurance claim continuance

Based on company experience

5% reduction in disabled life deaths

$1,200

Long-term care insurance utilization

Based on company experience and affected by future cost of care inflation

5% increase in utilization

$1,100

Long-term care insurance morbidity improvement

Decreases with attained age, ends at age 100

25 basis point reduction by age with 0% floor
No morbidity improvement

$300

$1,300

Active life terminations:

Long-term care insurance mortality

Based on company experience

5% reduction in mortality

$300

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

Life insurance mortality

Based on company experience

5% increase in mortality

$300

In conjunction with adoption of the new guidance, we are in process of converting our long-term care insurance claim cost projection models to first principles models. Based on the lower level of grouping of contracts required under the new guidance, combined with the more granular nature of first principles models, the effect on the transition adjustment related to the new guidance may be greater than under our current claim cost models and mayWhile higher assumed inflation, holding all other assumptions constant, would result in ~~an additional decrease in Shareholders’ equity, primarily from a reduction in Retained earnings attributable~~unfavorable impacts to ~~certain long-term care insurance groupings where~~ the projected present value of future cash flows ~~exceeds~~in the ~~reserves at the transition date.~~table above, it would be expected to be mitigated by more long-term care insurance policies reaching contractual daily or monthly benefit caps and by increased investment income from higher portfolio yields.

AsOur run-off insurance subsidiaries are required to prepare statutory financial statements in accordance with statutory accounting practices. Statutory accounting practices are set forth by the ~~new guidance is only applicable to the measurements~~National Association of ~~our long-duration insurance liabilities under~~Insurance Commissioners (NAIC) as well as state laws, regulation and general administrative rules and can differ in certain respects from GAAP and ~~first principles models, in isolation, may~~would result in ~~some initial variances~~several of the sensitivities described in ~~assumptions that reduce~~the table above being less impactful on our ~~GAAP~~statutory reserves.

See Capital Resources and Liquidity and Notes 1, 3 and 13 for further information related to our run-off insurance ~~premium deficiency margin, we expect to maintain a positive GAAP margin and do not expect changes to statutory insurance reserves, regulatory capital requirements or projected funding.~~operations.

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 organic revenues by segment; organic ~~revenues,~~revenues; and equipment and services organic revenues and (2) profit, specifically organic profit and profit margin by segment; Adjusted profit and profit margin; Adjusted organic profit and profit margin; Adjusted earnings (loss); Adjusted income tax rate; and Adjusted earnings (loss) per share (EPS), and (3) cash flows, specifically free cash flows (FCF). The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow.

2023 1Q FORM 10-Q 15


ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP)
	Revenues						Segment profit (loss)						Profit margin
Three months ended March 31	2023		2022		V%		2023		2022		V%		2023		2022		V pts
Aerospace (GAAP)	$	6,981	$	5,603	25	%	$	1,326	$	908	46	%	19.0	%	16.2	%	2.8pts
Less: acquisitions	—		—				—		—
Less: business dispositions	—		—				—		—
Less: foreign currency effect	(6)		(1)				30		4
Aerospace organic (Non-GAAP)	$	6,987	$	5,604	25	%	$	1,295	$	904	43	%	18.5	%	16.1	%	2.4pts

Renewable Energy (GAAP)	$	2,837	$	2,871	(1)	%	$	(414)	$	(434)	5	%	(14.6)	%	(15.1)	%	0.5pts
Less: acquisitions	—		—				—		—
Less: business dispositions	—		—				—		—
Less: foreign currency effect	(159)		7				(22)		—
Renewable Energy organic (Non-GAAP)	$	2,997	$	2,863	5	%	$	(392)	$	(434)	10	%	(13.1)	%	(15.2)	%	2.1pts

Power (GAAP)	$	3,820	$	3,501	9	%	$	75	$	63	19	%	2.0	%	1.8	%	0.2pts
Less: acquisitions	—		—				—		—
Less: business dispositions	—		—				—		—
Less: foreign currency effect	(67)		(16)				(37)		(20)
Power organic (Non-GAAP)	$	3,887	$	3,517	11	%	$	112	$	83	35	%	2.9	%	2.4	%	0.5pts
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.


ORGANIC REVENUES (NON-GAAP)	Three months ended March 31
	2023		2022		V%
Total revenues (GAAP)	$	14,486	$	12,675	14	%
Less: Insurance revenues	791		764
Adjusted revenues (Non-GAAP)	$	13,695	$	11,910	15	%
Less: acquisitions	—		1
Less: business dispositions	—		—
Less: foreign currency effect(a)	(235)		(9)
Organic revenues (Non-GAAP)	$	13,929	$	11,919	17	%

(a) Foreign currency impact in 2023 was primarily driven by U.S. dollar appreciation against the euro, Chinese renminbi 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)	Three months ended March 31
	2023		2022		V%
Total equipment revenues (GAAP)	$	5,287	$	4,608	15	%
Less: acquisitions	—		—
Less: business dispositions	—		—
Less: foreign currency effect	(170)		(1)
Equipment organic revenues (Non-GAAP)	$	5,458	$	4,609	18	%

Total services revenues (GAAP)	$	8,407	$	7,302	15	%
Less: acquisitions	—		1
Less: business dispositions	—		—
Less: foreign currency effect	(64)		(8)
Services organic revenues (Non-GAAP)	$	8,471	$	7,309	16	%
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.

2023 1Q FORM 10-Q 16


ADJUSTED PROFIT AND PROFIT MARGIN (NON-GAAP)	Three months ended March 31
		2023		2022		V%
Total revenues (GAAP)		$	14,486	$	12,675	14%
Less: Insurance revenues (Note 13)		791		764
Adjusted revenues (Non-GAAP)		$	13,695	$	11,910	15%

Total costs and expenses (GAAP)		$	14,075	$	13,904	1%
Less: Insurance cost and expenses (Note 13)		722		658
Less: interest and other financial charges(a)		257		371
Less: non-operating benefit cost (income)		(385)		(105)
Less: restructuring & other(a)		151		38

Less: separation costs(a)		205		99
Less: Steam asset sale impairment(a)		—		824
Less: Russia and Ukraine charges(a)		—		230


Add: noncontrolling interests		(27)		14
Add: EFS benefit from taxes		(51)		(47)
Adjusted costs (Non-GAAP)		$	13,047	$	11,755	11%

Other income (loss) (GAAP)		$	6,081	$	49	F
Less: gains (losses) on equity securities(a)		5,906		(219)
Less: restructuring & other(a)		—		3
Less: gains (losses) on purchases and sales of business interests(a)		(55)		4
Adjusted other income (loss) (Non-GAAP)		$	230	$	260	(12)%

Profit (loss) (GAAP)		$	6,492	$	(1,180)	F
Profit (loss) margin (GAAP)		44.8%		(9.3)%		54.1pts

Adjusted profit (loss) (Non-GAAP)		$	877	$	415	F
Adjusted profit (loss) margin (Non-GAAP)		6.4%		3.5%		2.9pts

(a) See the Corporate and Other Consolidated Information sections for further information.
We believe that adjusting profit to exclude the effects of items that are not closely associated with ongoing operations provides management and investors with a meaningful measure that increases the period-to-period comparability. Gains (losses) and restructuring and other items are impacted by the timing and magnitude of gains associated with dispositions, and the timing and magnitude of costs associated with restructuring and other activities.


ADJUSTED ORGANIC PROFIT (NON-GAAP)	Three months ended March 31
	2023			2022			V%
Adjusted profit (loss) (Non-GAAP)	$	877		$	415		F
Less: acquisitions	(6)			(5)
Less: business dispositions	—			—
Less: foreign currency effect(a)	(81)			(14)
Adjusted organic profit (loss) (Non-GAAP)	$	964		$	434		F

Adjusted profit (loss) margin (Non-GAAP)	6.4		%	3.5		%	2.9	pts
Adjusted organic profit (loss) margin (Non-GAAP)	6.9		%	3.6		%	3.3	pts

(a) Included foreign currency negative effect on revenues of $235 million and positive effect on operating costs and other income (loss) of $154 million for the three months ended March 31, 2023.
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.

2023 1Q FORM 10-Q 17


ADJUSTED EARNINGS (LOSS) AND ADJUSTED INCOME TAX RATE (NON-GAAP) (Per-share amounts in dollars)	2023				2022
Three months ended March 31	Earnings		EPS		Earnings		EPS
Earnings (loss) from continuing operations (GAAP) (Note 18)	$	6,097	$	5.56	$	(1,276)	$	(1.16)
Insurance earnings (loss) (pre-tax)	71		0.06		108		0.10
Tax effect on Insurance earnings (loss)	(16)		(0.01)		(24)		(0.02)
Less: Insurance earnings (loss) (net of tax) (Note 13)	54		0.05		84		0.08
Earnings (loss) excluding Insurance (Non-GAAP)	$	6,043	$	5.51	$	(1,360)	$	(1.24)
Non-operating benefit (cost) income (pre-tax) (GAAP)	385		0.35		105		0.10
Tax effect on non-operating benefit (cost) income	(81)		(0.07)		(22)		(0.02)
Less: Non-operating benefit (cost) income (net of tax)	304		0.28		83		0.08
Gains (losses) on purchases and sales of business interests (pre-tax)(a)	(55)		(0.05)		4		—
Tax effect on gains (losses) on purchases and sales of business interests	1		—		(1)		—
Less: Gains (losses) on purchases and sales of business interests (net of tax)	(53)		(0.05)		3		—
Gains (losses) on equity securities (pre-tax)(a)	5,906		5.39		(219)		(0.20)
Tax effect on gains (losses) on equity securities(b)(c)	—		—		(20)		(0.02)
Less: Gains (losses) on equity securities (net of tax)	5,906		5.39		(239)		(0.22)
Restructuring & other (pre-tax)(a)	(151)		(0.14)		(35)		(0.03)
Tax effect on restructuring & other	32		0.03		8		0.01
Less: Restructuring & other (net of tax)	(119)		(0.11)		(27)		(0.02)



Separation costs (pre-tax)(a)	(205)		(0.19)		(99)		(0.09)
Tax effect on separation costs	(56)		(0.05)		(24)		(0.02)
Less: Separation costs (net of tax)	(261)		(0.24)		(123)		(0.11)
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)	—		—		(230)		(0.21)
Tax effect on Russia and Ukraine charges	—		—		15		0.01
Less: Russia and Ukraine charges (net of tax)	—		—		(215)		(0.20)









Less: Excise tax on preferred stock redemption	(30)		(0.03)		—		—
Adjusted earnings (loss) (Non-GAAP)	$	296	$	0.27	$	(102)	$	(0.09)

Earnings (loss) from continuing operations before taxes (GAAP)	$	6,492			$	(1,180)
Less: Total adjustments above (pre-tax)	5,950				(1,190)
Adjusted earnings before taxes (Non-GAAP)	$	542			$	9

Provision (benefit) for income taxes (GAAP)	$	271			$	29
Less: Tax effect on adjustments above	119				(16)
Adjusted provision (benefit) for income taxes (Non-GAAP)	$	152			$	45

Income tax rate (GAAP)	4.2%				(2.5)%
Adjusted income tax rate (Non-GAAP)	28.0%				500.0%

(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 cost in Adjusted earnings and the Adjusted tax rate* provides management and investors a useful measure to evaluate the performance of the total company and increases period-to-period comparability. We also use Adjusted EPS* as a performance metric at the company level for our annual executive incentive plan for 2023.

*Non-GAAP Financial Measure

~~2022~~2023 1Q FORM 10-Q 1418

ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP)
Revenues Segment profit (loss) Profit margin
Three months ended March 31 2022 2021 V% 2022 2021 V% 2022 2021 V pts
Aviation (GAAP) $ 5,603 $ 4,992 12 % $ 908 $ 641 42 % 16.2 % 12.8 % 3.4pts
Less: acquisitions — — — —
Less: business dispositions — — — —
Less: foreign currency effect (9) 1 16 1
Aviation organic (Non-GAAP) $ 5,612 $ 4,991 12 % $ 892 $ 640 39 % 15.9 % 12.8 % 3.1pts
Healthcare (GAAP) $ 4,363 $ 4,308 1 % $ 538 $ 698 (23) % 12.3 % 16.2 % (3.9)pts
Less: acquisitions 66 — (29) —
Less: business dispositions — — — —
Less: foreign currency effect (86) — (29) (1)
Healthcare organic (Non-GAAP) $ 4,383 $ 4,308 2 % $ 595 $ 700 (15) % 13.6 % 16.2 % (2.6)pts
Renewable Energy (GAAP) $ 2,871 $ 3,248 (12) % $ (434) $ (234) (86) % (15.1) % (7.2) % (7.9)pts
Less: acquisitions — (11) — (4)
Less: business dispositions — — — —
Less: foreign currency effect (60) 1 17 7
Renewable Energy organic (Non-GAAP) $ 2,931 $ 3,258 (10) % $ (451) $ (236) (91) % (15.4) % (7.2) % (8.2)pts
Power (GAAP) $ 3,501 $ 3,921 (11) % $ 63 $ (87) F 1.8 % (2.2) % 4.0pts
Less: acquisitions — — — —
Less: business dispositions — 155 — —
Less: foreign currency effect (69) (17) (5) (23)
Power organic (Non-GAAP) $ 3,570 $ 3,782 (6) % $ 68 $ (64) F 1.9 % (1.7) % 3.6pts
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, which includes translational and transactional impacts, as these activities can obscure underlying trends.


FREE CASH FLOWS (FCF) (NON-GAAP)	Three months ended March 31
	2023		2022
CFOA (GAAP)	$	155	$	(924)
Less: Insurance CFOA	6		(15)
CFOA excluding Insurance (Non-GAAP)	$	149	$	(909)
Add: gross additions to property, plant and equipment	(279)		(239)
Add: gross additions to internal-use software	(20)		(22)
Less: separation cash expenditures	(204)		(3)
Less: Corporate restructuring cash expenditures	(32)		—
Less: taxes related to business sales	(16)		—
Free cash flows (Non-GAAP)	$	102	$	(1,169)

We believe investors may find it useful to compare free cash flows* performance without the effects of CFOA related to our run-off Insurance business, separation cash expenditures, Corporate restructuring cash expenditures (associated with the separation-related program announced in October 2022) and taxes related to business sales. We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flows.

ORGANIC REVENUES (NON-GAAP) Three months ended March 31
2022 2021 V%
Total revenues (GAAP) $ 17,040 $ 17,071 — %
Less: Insurance revenues 767 755
Adjusted revenues (Non-GAAP) $ 16,272 $ 16,316 — %
Less: acquisitions 67 (11)
Less: business dispositions — 46
Less: foreign currency effect(a) (227) (15)
Organic revenues (Non-GAAP) $ 16,433 $ 16,295 1 %
(a) Foreign currency impact in 2022 was primarily driven by U.S. Dollar depreciation against the euro, Japanese yen, and Indian rupee.
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.

EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP) Three months ended March 31
2022 2021 V%
Total equipment revenues (GAAP) $ 6,864 $ 7,971 (14) %
Less: acquisitions 65 —
Less: business dispositions — (62)
Less: foreign currency effect (131) (7)
Equipment organic revenues (Non-GAAP) $ 6,931 $ 8,040 (14) %
Total services revenues (GAAP) $ 9,408 $ 8,345 13 %
Less: acquisitions 1 (11)
Less: business dispositions — 108
Less: foreign currency effect (96) (8)
Services organic revenues (Non-GAAP) $ 9,502 $ 8,255 15 %
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 1Q FORM 10-Q~~ 15

ADJUSTED PROFIT AND PROFIT MARGIN (NON-GAAP) Three months ended March 31
2022 2021 V%
Total revenues (GAAP) $ 17,040 $ 17,071 — %
Less: Insurance revenues 767 755
Adjusted revenues (Non-GAAP) $ 16,272 $ 16,316 — %
Total costs and expenses (GAAP) $ 17,638 $ 17,506 1 %
Less: Insurance cost and expenses 543 618
Less: interest and other financial charges 390 485
Less: non-operating benefit cost (income) (137) 430
Less: restructuring & other(a) 38 113
Less: separation costs(a) 119 —
Less: Steam asset sale impairment(a) 824 —
Less: Russia and Ukraine charges(a) 230 —
Add: noncontrolling interests 28 5
Add: EFS benefit from taxes (47) (31)
Adjusted costs (Non-GAAP) $ 15,611 $ 15,834 (1) %
Other income (GAAP) $ 73 $ 673 (89) %
Less: gains (losses) on equity securities(a) (219) 347
Less: restructuring & other(a) 3 7
Less: gains (losses) on purchases and sales of business interests(a) 4 3
Adjusted other income (Non-GAAP) $ 285 $ 317 (10) %
Profit (loss) (GAAP) $ (525) $ 238 U
Profit (loss) margin (GAAP) (3.1) % 1.4 % (4.5)pts
Adjusted profit (loss) (Non-GAAP) $ 946 $ 798 19 %
Adjusted profit (loss) margin (Non-GAAP) 5.8 % 4.9 % 0.9pts
(a) See the Corporate and Other Consolidated Information sections for further information.
We believe that adjusting profit to exclude the effects of items that are not closely associated with ongoing operations provides management and investors with a meaningful measure that increases the period-to-period comparability. Gains (losses) and restructuring and other items are impacted by the timing and magnitude of gains associated with dispositions, and the timing and magnitude of costs associated with restructuring and other activities.

ADJUSTED ORGANIC PROFIT (NON-GAAP) Three months ended March 31
2022 2021 V%
Adjusted profit (loss) (Non-GAAP) $ 946 $ 798 19 %
Less: acquisitions (34) (4)
Less: business dispositions — 4
Less: foreign currency effect 1 (5)
Adjusted organic profit (loss) (Non-GAAP) $ 979 $ 803 22 %
Adjusted profit (loss) margin (Non-GAAP) 5.8 % 4.9 % 0.9 pts
Adjusted organic profit (loss) margin (Non-GAAP) 6.0 % 4.9 % 1.1 pts
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 1Q FORM 10-Q~~ 16

ADJUSTED EARNINGS (LOSS) (NON-GAAP) Three months ended March 31
2022 2021 V%
Earnings (loss) from continuing operations (GAAP)(a) $ (809) $ 20 U
Insurance earnings (pre-tax) 227 142
Tax effect on Insurance earnings (49) (31)
Less: Insurance earnings (net of tax) 178 111
Earnings (loss) excluding Insurance (Non-GAAP) $ (987) $ (91) U
Non-operating benefit (cost) income (pre-tax) (GAAP) 137 (430)
Tax effect on non-operating benefit (cost) income (29) 90
Less: non-operating benefit (cost) income (net of tax) 108 (340)
Gains (losses) on purchases and sales of business interests (pre-tax)(a) 4 3
Tax effect on gains (losses) on purchases and sales of business interests (1) (1)
Less: gains (losses) on purchases and sales of business interests (net of tax) 3 2
Gains (losses) on equity securities (pre-tax)(a) (219) 347
Tax effect on gains (losses) on equity securities(b)(c) (20) (118)
Less: gains (losses) on equity securities (net of tax) (239) 229
Restructuring & other (pre-tax)(a) (35) (106)
Tax effect on restructuring & other 8 22
Less: restructuring & other (net of tax) (27) (84)
Separation costs (pre-tax)(a) (119) —
Tax effect on separation costs (20) —
Less: separation costs (net of tax) (139) —
Steam asset sale impairment (pre-tax)(a) (824) —
Tax effect on Steam asset sale impairment 84 —
Less: Steam asset sale impairment (net of tax) (740) —
Russia and Ukraine charges (pre-tax)(a) (230) —
Tax effect on Russia and Ukraine charges 15 —
Less: Russia and Ukraine charges (net of tax) (215) —
Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) — 2
Less: Tax loss related to GECAS transaction — (44)
Adjusted earnings (loss) (Non-GAAP) $ 262 $ 142 85 %
(a) See the Corporate section for further information.
(b) Includes tax benefits available to offset the tax on gains in equity securities.
(c) Includes related tax valuation allowances.

~~2022 1Q FORM 10-Q~~ 17

ADJUSTED EARNINGS (LOSS) PER SHARE (EPS) (NON-GAAP) Three months ended March 31
(In dollars) 2022 2021 V%
Earnings (loss) per share from continuing operations (GAAP)(a) $ (0.74) $ 0.02 U
Insurance earnings (pre-tax) 0.21 0.13
Tax effect on Insurance earnings (0.04) (0.03)
Less: Insurance earnings (net of tax) 0.16 0.10
Earnings (loss) per share excluding Insurance (Non-GAAP) $ (0.90) $ (0.08) U
Non-operating benefit (cost) income (pre-tax) (GAAP) 0.12 (0.39)
Tax effect on non-operating benefit (cost) income (0.03) 0.08
Less: non-operating benefit (cost) income (net of tax) 0.10 (0.31)
Gains (losses) on purchases and sales of business interests (pre-tax)(a) — —
Tax effect on gains (losses) on purchases and sales of business interests — —
Less: gains (losses) on purchases and sales of business interests (net of tax) — —
Gains (losses) on equity securities (pre-tax)(a) (0.20) 0.32
Tax effect on gains (losses) on equity securities(b)(c) (0.02) (0.11)
Less: gains (losses) on equity securities (net of tax) (0.22) 0.21
Restructuring & other (pre-tax)(a) (0.03) (0.10)
Tax effect on restructuring & other 0.01 0.02
Less: restructuring & other (net of tax) (0.02) (0.08)
Separation costs (pre-tax)(a) (0.11) —
Tax effect on separation costs (0.02) —
Less: separation costs (net of tax) (0.13) —
Steam asset sale impairment (pre-tax)(a) (0.75) —
Tax effect on Steam asset sale impairment 0.08 —
Less: Steam asset sale impairment (net of tax) (0.67) —
Russia and Ukraine charges (pre-tax)(a) (0.21) —
Tax effect on Russia and Ukraine charges 0.01 —
Less: Russia and Ukraine charges (net of tax) (0.20) —
Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) — —
Less: Tax loss related to GECAS transaction — (0.04)
Adjusted earnings (loss) per share (Non-GAAP) $ 0.24 $ 0.13 85 %
(a) See the Corporate section for further information.
(b) Includes tax benefits available to offset the tax on gains in equity securities.
(c) Includes related tax valuation allowances.
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
The service cost for our pension and other benefit plans are included in adjusted earnings*, which represents the ongoing cost of providing pension benefits to our employees. The components of non-operating benefit costs are mainly driven by capital allocation decisions and market performance. We believe the retained costs in Adjusted earnings* and Adjusted EPS* provides management and investors a useful measure to evaluate the performance of the total company and increases period-to-period comparability. We also use Adjusted EPS* as a performance metric at the company level for our annual executive incentive plan for 2022.

FREE CASH FLOWS (FCF) (NON-GAAP) Three months ended March 31
2022 2021
CFOA (GAAP) $ (535) $ (2,640)
Less: Insurance CFOA (15) 60
CFOA excluding Insurance (Non-GAAP) $ (520) $ (2,699)
Add: gross additions to property, plant and equipment (340) (332)
Add: gross additions to internal-use software (23) (24)
Less: separation costs cash expenditures (3) —
Less: CFOA impact from receivables factoring and supply chain finance eliminations — 306
Free cash flows (Non-GAAP) $ (880) $ (3,361)
We believe investors may find it useful to compare free cash flows* performance without the effects of cash used for operating activities related to our run-off Insurance business, separation costs cash expenditures and eliminations related to our receivables factoring and supply chain finance programs. We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flows. The CFOA impact from receivables factoring and supply chain finance eliminations represents activity related to those internal programs previously facilitated for our industrial segments by our Working Capital Solutions business. We completed the exit from all internal factoring and supply chain finance programs in 2021.

*Non-GAAP Financial Measure

~~2022 1Q FORM 10-Q~~ 18

CONTROLS AND ~~PROCEDURES.~~PROCEDURES. Under the direction of our Chief Executive Officer and Chief Financial Officer, we evaluated our disclosure controls and procedures and internal control over financial reporting and concluded that (i) our disclosure controls and procedures were effective as of March 31, ~~2022,~~2023, and (ii) no change in internal control over financial reporting occurred during the quarter ended March 31, ~~2022,~~2023, that has materially affected, or is reasonably likely to materially affect, such internal control over financial reporting.

OTHER FINANCIAL DATA

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS. On March 6, 2022, the Board of Directors authorized up to $3 billion of common share repurchases. ~~There were no share repurchases~~We repurchased 3,225 thousand shares for $276 million during the three months ended March 31, ~~2022.~~2023 under this authorization.


Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of our share repurchase authorization	Approximate dollar value of shares that may yet be purchased under our share repurchase authorization
(Shares in thousands)

2023
January	—	$	—	—
February	1,786	84.23		1,786
March	1,438	87.62		1,438
Total	3,225	$	85.74	3,225	$	1,749

~~RISK FACTORS.~~ The risk factor set forth below updates the risk factors in our Annual Report on Form 10-K for the year ended December 31, 2021. These risk factors could materially affect our business, financial position and results of operations.

~~Global macro-environment - Our growth is subject to global economic, political and geopolitical risks.~~
~~We operate in virtually every part of the world, serve customers in over 175 countries and received 56% of our revenues for 2021 from outside the United States. Our operations and the execution of ou~~r business plans and strategies are subject to the effects of global economic trends, geopolitical risks and demand or supply shocks from events that could include war, a major terrorist attack, natural disasters or actual or threatened public health emergencies (such as COVID-19, including virus variants and resurgences and responses to those developments such as continued or new government-imposed lockdowns and travel restrictions). They are also affected by local and regional economic environments, supply chain constraints and policies in the U.S. and other markets that we serve, including interest rates, monetary policy, inflation, economic growth, recession, commodity prices, currency volatility, currency controls or other limitations on the ability to expatriate cash, sovereign debt levels and actual or anticipated defaults on sovereign debt. For example, the ongoing conflict between Russia and Ukraine and the related sanctions and other measures imposed by the European Union, the U.S. and other countries and organizations in response have led, and may continue to lead, to disruption and instability in global markets, supply chains and industries that could negatively impact our businesses, financial condition and results of operations. Additionally, changes in local economic conditions or outlooks, such as lower rates of investment or economic growth in China, Europe or other key markets, affect the demand for or profitability of our products and services outside the U.S., and the impact on the Company could be significant given the extent of our activities outside the United States. Political changes and trends such as populism, protectionism, economic nationalism and sentiment toward multinational companies and resulting tariffs, export controls or other trade barriers, or changes to tax or other laws and policies, have been and may continue to be disruptive and costly to our businesses, and these can interfere with our global operating model, supply chain, production costs, customer relationships and competitive position. Further escalation of specific trade tensions, including intensified decoupling between the U.S. and China, or in global trade conflict more broadly could be harmful to global economic growth or to our business in or with China or other countries, and related decreases in confidence or investment activity in the global markets would adversely affect our business performance. We also do business in many emerging market jurisdictions where economic, political and legal risks are heightened.

*Non-GAAP Financial Measure

~~2022~~2023 1Q FORM 10-Q 19


STATEMENT OF EARNINGS (LOSS) (UNAUDITED)	STATEMENT OF EARNINGS (LOSS) (UNAUDITED)	Three months ended March 31				STATEMENT OF EARNINGS (LOSS) (UNAUDITED)	Three months ended March 31
(In millions; per-share amounts in dollars)		2022		2021
(In millions, per-share amounts in dollars)						(In millions, per-share amounts in dollars)	2023		2022
Sales of equipment	Sales of equipment	$	6,864	$	7,971	Sales of equipment	$	5,287	$	4,608
Sales of services	Sales of services	9,408		8,345		Sales of services	8,407		7,302
Insurance revenues		767		755
Insurance revenues (Note 13)						Insurance revenues (Note 13)	791		764
Total revenues (Note 8)	Total revenues (Note 8)	17,040		17,071		Total revenues (Note 8)	14,486		12,675

Cost of equipment sold	Cost of equipment sold	6,749		7,579		Cost of equipment sold	5,605		5,148
Cost of services sold	Cost of services sold	5,704		4,958		Cost of services sold	5,124		4,626
Selling, general and administrative expenses	Selling, general and administrative expenses	3,651		2,894		Selling, general and administrative expenses	2,142		2,725
Separation costs		119		—
Separation costs (Note 20)						Separation costs (Note 20)	205		99
Research and development	Research and development	641		561		Research and development	431		403
Interest and other financial charges	Interest and other financial charges	406		500		Interest and other financial charges	269		387

Insurance losses, annuity benefits and other costs (Note 12)		504		583
Insurance losses, annuity benefits and other costs (Note 13)						Insurance losses, annuity benefits and other costs (Note 13)	684		620

Non-operating benefit cost (income)	Non-operating benefit cost (income)	(137)		430		Non-operating benefit cost (income)	(385)		(105)

Total costs and expenses	Total costs and expenses	17,638		17,506		Total costs and expenses	14,075		13,904

Other income (Note 18)		73		673
Other income (loss) (Note 19)						Other income (loss) (Note 19)	6,081		49

Earnings (loss) from continuing operations before income taxes	Earnings (loss) from continuing operations before income taxes	(525)		238		Earnings (loss) from continuing operations before income taxes	6,492		(1,180)
Benefit (provision) for income taxes		(204)		(142)
Benefit (provision) for income taxes (Note 16)						Benefit (provision) for income taxes (Note 16)	(271)		(29)
Earnings (loss) from continuing operations	Earnings (loss) from continuing operations	(729)		97		Earnings (loss) from continuing operations	6,221		(1,209)
Earnings (loss) from discontinued operations, net of taxes (Note 2)	Earnings (loss) from discontinued operations, net of taxes (Note 2)	(286)		(2,894)		Earnings (loss) from discontinued operations, net of taxes (Note 2)	1,257		101
Net earnings (loss)	Net earnings (loss)	(1,014)		(2,798)		Net earnings (loss)	7,478		(1,108)
Less net earnings (loss) attributable to noncontrolling interests	Less net earnings (loss) attributable to noncontrolling interests	28		5		Less net earnings (loss) attributable to noncontrolling interests	(27)		28
Net earnings (loss) attributable to the Company	Net earnings (loss) attributable to the Company	(1,042)		(2,802)		Net earnings (loss) attributable to the Company	7,506		(1,136)
Preferred stock dividends		(52)		(72)
Preferred stock dividends and other						Preferred stock dividends and other	(145)		(52)
Net earnings (loss) attributable to GE common shareholders	Net earnings (loss) attributable to GE common shareholders	$	(1,094)	$	(2,874)	Net earnings (loss) attributable to GE common shareholders	$	7,360	$	(1,188)

Amounts attributable to GE common shareholders	Amounts attributable to GE common shareholders					Amounts attributable to GE common shareholders
Earnings (loss) from continuing operations	Earnings (loss) from continuing operations	$	(729)	$	97	Earnings (loss) from continuing operations	$	6,221	$	(1,209)
Less net earnings (loss) attributable to noncontrolling interests,	Less net earnings (loss) attributable to noncontrolling interests,					Less net earnings (loss) attributable to noncontrolling interests,
continuing operations	continuing operations	28		5		continuing operations	(27)		14
Earnings (loss) from continuing operations attributable to the Company	Earnings (loss) from continuing operations attributable to the Company	(757)		92		Earnings (loss) from continuing operations attributable to the Company	6,248		(1,224)
Preferred stock dividends		(52)		(72)
Preferred stock dividends and other						Preferred stock dividends and other	(145)		(52)
Earnings (loss) from continuing operations attributable	Earnings (loss) from continuing operations attributable					Earnings (loss) from continuing operations attributable
to GE common shareholders	to GE common shareholders	(809)		20		to GE common shareholders	6,103		(1,276)

Earnings (loss) from discontinued operations attributable	Earnings (loss) from discontinued operations attributable					Earnings (loss) from discontinued operations attributable
to GE common shareholders	to GE common shareholders	(286)		(2,894)		to GE common shareholders	1,257		88
Net earnings (loss) attributable to GE common shareholders	Net earnings (loss) attributable to GE common shareholders	$	(1,094)	$	(2,874)	Net earnings (loss) attributable to GE common shareholders	$	7,360	$	(1,188)

Earnings (loss) per share from continuing operations (Note 17)
Earnings (loss) per share from continuing operations (Note 18)						Earnings (loss) per share from continuing operations (Note 18)
Diluted earnings (loss) per share	Diluted earnings (loss) per share	$	(0.74)	$	0.02	Diluted earnings (loss) per share	$	5.56	$	(1.16)
Basic earnings (loss) per share	Basic earnings (loss) per share	$	(0.74)	$	0.02	Basic earnings (loss) per share	$	5.60	$	(1.16)

Net earnings (loss) per share (Note 17)
Net earnings (loss) per share (Note 18)						Net earnings (loss) per share (Note 18)
Diluted earnings (loss) per share	Diluted earnings (loss) per share	$	(0.99)	$	(2.61)	Diluted earnings (loss) per share	$	6.71	$	(1.08)
Basic earnings (loss) per share	Basic earnings (loss) per share	$	(0.99)	$	(2.62)	Basic earnings (loss) per share	$	6.76	$	(1.08)

~~2022~~2023 1Q FORM 10-Q 20

STATEMENT OF FINANCIAL POSITION (UNAUDITED)
(In millions, except share amounts) March 31, 2022 December 31, 2021
Cash, cash equivalents and restricted cash(a) $ 12,842 $ 15,770
Investment securities (Note 3) 10,779 12,297
Current receivables (Note 4) 16,050 15,620
Inventories, including deferred inventory costs (Note 5) 16,570 15,847
Current contract assets (Note 9) 4,246 4,881
All other current assets (Note 10) 2,065 1,933
Assets of businesses held for sale (Note 2) 747 —
Current assets 63,299 66,348
Investment securities (Note 3) 39,845 42,209
Property, plant and equipment – net (Note 6) 15,036 15,609
Goodwill (Note 7) 26,047 26,182
Other intangible assets – net (Note 7) 8,290 9,330
Contract and other deferred assets (Note 9) 6,159 6,124
All other assets (Note 10) 19,767 19,040
Deferred income taxes (Note 15) 10,583 10,855
Assets of discontinued operations (Note 2) 2,935 3,177
Total assets $ 191,961 $ 198,874
Short-term borrowings (Note 11) $ 4,985 $ 4,361
Accounts payable and equipment project accruals 16,206 16,243
Progress collections and deferred income (Note 9) 16,206 17,372
All other current liabilities (Note 14) 14,216 13,977
Liabilities of businesses held for sale (Note 2) 1,732 —
Current liabilities 53,344 51,953
Deferred income (Note 9) 1,953 1,989
Long-term borrowings (Note 11) 28,649 30,824
Insurance liabilities and annuity benefits (Note 12) 33,626 37,166
Non-current compensation and benefits 20,636 21,202
All other liabilities (Note 14) 12,477 13,240
Liabilities of discontinued operations (Note 2) 993 887
Total liabilities 151,678 157,262
Preferred stock (5,939,875 shares outstanding at both March 31, 2022
and December 31, 2021) 6 6
Common stock (1,100,664,978 and 1,099,027,213 shares outstanding
at March 31, 2022 and December 31, 2021, respectively) 15 15
Accumulated other comprehensive income (loss) – net attributable to GE 1,341 1,582
Other capital 34,391 34,691
Retained earnings 83,927 85,110
Less common stock held in treasury (80,673) (81,093)
Total GE shareholders’ equity 39,005 40,310
Noncontrolling interests (Note 16) 1,278 1,302
Total equity 40,283 41,612
Total liabilities and equity $ 191,961 $ 198,874

(a) Excluded $795 million and $353 million at March 31, 2022 and December 31, 2021, respectively, in our run-off Insurance business, which is subject to regulatory restrictions. This balance is included in All other assets. See Note 10 for further information.


STATEMENT OF FINANCIAL POSITION (UNAUDITED)
(In millions)	March 31, 2023		December 31, 2022


Cash, cash equivalents and restricted cash	$	12,001	$	15,810
Investment securities (Note 3)	12,814		7,609
Current receivables (Note 4)	14,212		14,831

Inventories, including deferred inventory costs (Note 5)	16,198		14,891


Current contract assets (Note 9)	2,244		2,467
All other current assets (Note 10)	1,464		1,400
Assets of businesses held for sale (Note 2)	1,353		1,374
Current assets	60,286		58,384

Investment securities (Note 3)	38,262		36,027


Property, plant and equipment – net (Note 6)	12,170		12,192

Goodwill (Note 7)	13,107		12,999
Other intangible assets – net (Note 7)	5,990		6,105
Contract and other deferred assets (Note 9)	5,631		5,776
All other assets (Note 10)	15,888		15,477
Deferred income taxes (Note 16)	10,344		10,001
Assets of discontinued operations (Note 2)	2,793		31,890
Total assets	$	164,472	$	188,851

Short-term borrowings (Note 11)	$	2,262	$	3,739

Accounts payable and equipment project payables (Note 12)	15,063		15,399
Progress collections and deferred income (Note 9)	16,586		16,216
All other current liabilities (Note 15)	12,313		12,130
Liabilities of businesses held for sale (Note 2)	1,953		1,944
Current liabilities	48,177		49,428

Deferred income (Note 9)	1,500		1,409
Long-term borrowings (Note 11)	20,159		20,320

Insurance liabilities and annuity benefits (Note 13)	39,082		36,845
Non-current compensation and benefits	10,244		10,400
All other liabilities (Note 15)	10,937		11,063
Liabilities of discontinued operations (Note 2)	1,551		24,474
Total liabilities	131,649		153,938

Preferred stock (Note 17)	3		6
Common stock (Note 17)	15		15
Accumulated other comprehensive income (loss) – net attributable to GE (Note 17)	(3,289)		(2,272)
Other capital	30,729		34,173
Retained earnings	84,955		82,983
Less common stock held in treasury	(80,762)		(81,209)
Total GE shareholders’ equity	31,652		33,696
Noncontrolling interests	1,171		1,216
Total equity	32,823		34,912
Total liabilities and equity	$	164,472	$	188,851

~~2022~~2023 1Q FORM 10-Q 21

~~2022~~2023 1Q FORM 10-Q 22

(a) Represents the net after-tax change in future policy benefit reserves and related reinsurance recoverables from updating the discount rate. See Notes 1 and 13 for further information.

(a) Included $3,000 million decrease substantially all in Other capital related to our redemption of GE Series D preferred stock in the first quarter of 2023.

(b) Included $5,300 million decrease in Retained earnings reflecting a pro-rata distribution of approximately 80.1% of the shares of GE HealthCare on January 3, 2023.

~~2022~~2023 1Q FORM 10-Q 23

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

INSURANCE.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 ~~accounting policies~~mortality and/or morbidity risks, while investment contracts are ~~described~~contracts without such risks. Insurance revenues are comprised primarily of premiums and investment income. 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, administration and surrender. Interest credited to policyholder accounts is charged to expense.

2023 1Q FORM 10-Q 24

ADOPTIONS OF NEW ACCOUNTING STANDARDS. On January 1, 2023, we adopted Accounting Standards Update No. 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts. The new guidance for measuring the liability for future policy benefits and related reinsurance recoverable asset was adopted on a modified retrospective basis such that those balances were adjusted to conform to the new guidance at the January 1, 2021 transition date.


	Retained Earnings		AOCI
December 31, 2020	$	92,247	$	(9,749)
Liability for future policy benefits, including removal of related balances in AOCI	(1,853)		(8,806)
Reinsurance recoverables, net of allowance for credit losses	48		3,542
Other contracts, including market risk benefits	(202)		(14)
Effect of transition adjustments	$	(2,007)	$	(5,278)
Adjusted balance, January 1, 2021	$	90,240	$	(15,027)


	Long-term care		Structured settlement annuities		Life		Other contracts(a)		Other adjustments		Total
December 31, 2020	$	21,378	$	9,124	$	517	$	3,012	$	8,160	$	42,191
Change in discount rate assumptions	14,654		4,369		283		—		—		19,306
Change in cash flow assumptions (effect of insufficient gross premiums) and elimination of negative reserves	1,545		39		761		—		—		2,345
Adjustment for removal of related balances in AOCI	—		—		—		—		(8,160)		(8,160)
Market risk benefits and other	—		—		—		269		—		269
Adjusted balance, January 1, 2021	37,577		13,532		1,561		3,281		—		55,951
Less: reinsurance recoverables, net	7,036		—		15		44		—		7,095
Adjusted balance, January 1, 2021, net of reinsurance recoverables	$	30,541	$	13,532	$	1,546	$	3,237	$	—	$	48,856

2023 1Q FORM 10-Q 25

NOTE 2. BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS. In the first quarter of 2022, we signed a non-binding memorandum of understanding to sell a portion of our Steam business within our Power segment to Électricité de France S.A. (EDF). WeIn the fourth quarter of 2022, we signed a binding agreement for this transaction, and we expect to complete the sale, subject to regulatory ~~approval,~~approvals and other customary closing conditions, in the second half of 2023. Closing the transaction is expected to result in a significant gain.


~~ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE~~	~~March 31, 2022~~		~~December 31, 2021~~
~~Current receivables, inventories and contract assets~~	$	~~516~~	$	—
~~Property, plant and equipment and intangible assets - net~~	~~186~~		—
~~All other assets~~	45		—
~~Assets of businesses held for sale~~	$	~~747~~	$	—

~~Progress collections and deferred income~~	$	~~1,280~~	$	—
~~Accounts payable and equipment project accruals and all other liabilities~~	~~452~~		—
~~Liabilities of businesses held for sale~~	$	~~1,732~~	$	—


ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE	March 31, 2023		December 31, 2022

Current receivables, inventories and contract assets	$	527	$	495
Non-current captive insurance investment securities	578		554
Property, plant and equipment and intangible assets - net	240		232
Valuation allowance on disposal group classified as held for sale	(72)		(17)
All other assets	80		111
Assets of businesses held for sale	$	1,353	$	1,374

Progress collections and deferred income	$	1,101	$	1,127
Insurance liabilities and annuity benefits	340		358
Accounts payable, equipment project payables and other current liabilities	421		371
All other liabilities	90		87
Liabilities of businesses held for sale	$	1,953	$	1,944

~~GECAS/AerCap.~~GE HealthCare. On ~~November 1, 2021~~January 3, 2023, we completed the ~~combination~~previously announced separation of our ~~GECAS~~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. In connection with ~~AerCap Holdings N.V. (AerCap). We deconsolidated this business, reclassified its~~the Separation, the historical results ~~to discontinued operations for all periods presented~~of GE HealthCare and ~~recognized a non-cash after-tax loss of $2,755 million in discontinued operations~~certain assets and liabilities included in the ~~first quarter of 2021.~~Separation are reported in GE's consolidated financial statements as discontinued operations.

~~2022~~2023 1Q FORM 10-Q 2426

Bank BPH. The mortgage portfolio in Poland (Bank BPH) comprises floating rate residential mortgages, ~~87%~~86% of which are indexed to or denominated in foreign currencies (primarily Swiss francs). At March 31, ~~2022,~~2023, the total portfolio had a carrying value, net of reserves, of ~~$1,592 million with a 2.12% 90-day delinquency rate and an average loan to value ratio of approximately 58.3%.~~$1,126 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 foreign currency-denominated mortgages and other factors. Loss from discontinued operations included $175 million and $233 million non-cash pre-tax charges for the three months ended March 31, 2023 and 2022, ~~included $233 million non-cash pre-tax charges,~~respectively, reflecting estimates with respect to ongoing litigation as well as market yields. To ensure appropriate capital levels, during the first quarter of 2023, we made a non-cash capital contribution in the form of intercompany loan forgiveness of $198 million. We made a cash capital contribution of $530 million into Bank BPH in the twelve months ended December 31, 2022. Future changes in the estimated legal liabilities or market yields could result in further ~~losses and~~ capital contributions ~~related to these loans~~and losses in future reporting ~~periods.~~periods beyond the amounts that we currently estimate. See Note 2123 for further information.

RESULTS OF DISCONTINUED OPERATIONS Three months ended March 31
2022 2021
Operations
Cost of equipment and services sold $ — $ (368)
Other income, costs and expenses (250) 247
Earnings (loss) of discontinued operations before income taxes $ (250) $ (121)
Benefit (provision) for income taxes (18) (29)
Earnings (loss) of discontinued operations, net of taxes(a) $ (268) $ (149)
Disposal
Gain (loss) on disposal before income taxes $ (23) $ (2,702)
Benefit (provision) for income taxes 5 (43)
Gain (loss) on disposal, net of taxes $ (18) $ (2,745)
Earnings (loss) from discontinued operations, net of taxes $ (286) $ (2,894)
GECAS/AerCap. We have continuing involvement with AerCap, primarily through our ownership interest, ongoing sales or leases of products and services, and transition services that we provide to AerCap. For the three months ended March 31, 2023, we had direct and indirect sales of $48 million to AerCap, primarily related to engine services and sales, and purchases of $67 million from AerCap, primarily related to engine leases. We paid net cash of $88 million to AerCap related to this activity.

Three months ended March 31

(a) ~~Included 0 and $177 million from GECAS operations, including 0 and $359 million of depreciation and amortization,~~The tax benefit for the three months ended March 31, ~~2022~~2023 for GE HealthCare relates to preparatory steps for the spin-off, which resulted in taxable gain offset by a deferred tax asset and ~~2021, respectively. Depreciation and amortization ceased on March 10, 2021.~~the reversal of valuation allowances for capital loss carryovers utilized against a portion of the gain.

(a) Included $889 million of valuation allowance against financing receivables held for sale (including $645 million related to foreign currency-denominated mortgage litigation) and $895 million of litigation reserves recorded in All other liabilities in Poland at March 31, 2023.

(b) Included $133 million and $28,998 million of assets and $279 million and $23,337 million of liabilities for GE HealthCare as of March 31, 2023 and December 31, 2022, respectively.

2023 1Q FORM 10-Q 27

NOTE 3. INVESTMENT SECURITIES. All of our debt securities are classified as available-for-sale and substantially all are investment-grade supporting obligations to annuitants and policyholders in our run-off insurance operations. ~~On November 1, 2021, we received 111.5~~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. Our investment in GE HealthCare comprised 90.3 million shares (approximately 19.9% ownership interest) at March 31, 2023. Our investment in AerCap comprised 79.7 million ordinary shares ~~of AerCap~~ (approximately ~~46%~~33% ownership interest) at March 31, 2023 and an AerCap senior note, ~~as partial consideration in conjunction with the GECAS transaction,~~ for which we have adopted the fair value option. We sold our remaining shares in Baker Hughes (BKR) during the first quarter of 2023. Our ~~investment in BKR comprises 116.5 million shares (approximately 11% ownership interest) as of March 31, 2022. Both our~~GE HealthCare, AerCap and BKR investments are recorded as Equity securities with readily determinable fair values. ~~We classify investment securities as current or non-current based on our intent regarding the usage of proceeds from those investments.~~ Investment securities held within insurance entities are classified as non-current as they support the long-duration insurance liabilities.

~~2022 1Q FORM 10-Q~~ 25

2023 1Q FORM 10-Q 28

Contractual maturities of our debt securities (excluding mortgage and asset-backed securities) at March 31, ~~2022~~2023 are as follows:

NOTE 4. CURRENT AND LONG-TERM RECEIVABLES

CURRENT RECEIVABLES March 31, 2022 December 31, 2021
Customer receivables $ 13,505 $ 13,079
Non-income based tax receivables 1,311 1,222
Revenue sharing program receivables(a) 1,256 1,166
Supplier advances 441 596
Receivables from disposed businesses 148 148
Other sundry receivables 488 483
Allowance for credit losses(b) (1,099) (1,074)
Total current receivables $ 16,050 $ 15,620

(b) Allowance for credit losses increased primarily due to net new provisions of ~~$45~~$20 million, partially offset by write-offs, recoveries and foreign currency impact.


	March 31, 2023		December 31, 2022
Aerospace	$	7,667	$	7,784
Renewable Energy	2,129		2,415
Power	3,940		4,229
Corporate	477		404
Total current receivables	$	14,212	$	14,831

Sales of customer receivables. ~~Previously, GE businesses sold customer receivables to our Working Capital Solutions (WCS) business. These programs were discontinued in 2021. Separately, the Company from~~From time to time, the Company sells current or long-term receivables to third parties in response to customer-sponsored requests or programs, to facilitate sales, or for risk mitigation purposes. ~~Activity related to current customer receivables sold by GE businesses is as follows:~~

~~2022 1Q FORM 10-Q~~ 26

2022 2021
Third Parties WCS Third Parties
Balance at January 1 $ 161 $ 3,618 $ 2,992
GE businesses sales to WCS — 7,044 —
GE businesses sales to third parties(a) 351 — 124
WCS sales to third parties — (3,826) 3,826
Collections and other (367) (3,765) (4,360)
Reclassification from long-term customer receivables 36 63 —
Balance at March 31 $ 181 $ 3,134 $ 2,582

~~(a)~~ The Company sold current customer receivables to third parties and subsequently collected $464 million and $347 million in the three months ended March 31, 2023 and 2022, respectively, related primarily to our participation in customer-sponsored supply chain finance programs. Within these programs, primarily in Renewable Energy and Aerospace, the 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. Included in the sales of customer receivables in the first quarter of 2023, was $77 million in our Gas Power business, primarily for risk mitigation purposes.

(a) The Company sold ~~$79 million~~zero and ~~$31~~$79 million of long-term customer receivables to third parties infor the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, respectively, primarily in our Gas Power business for risk mitigation purposes.

2023 1Q FORM 10-Q 29

NOTE 5. INVENTORIES, INCLUDING DEFERRED INVENTORY COSTS

March 31, 2022 December 31, 2021
Raw materials and work in process $ 9,155 $ 8,710
Finished goods 5,307 4,927
Deferred inventory costs(a) 2,108 2,210
Inventories, including deferred inventory costs $ 16,570 $ 15,847


	March 31, 2023		December 31, 2022
Raw materials and work in process	$	10,000	$	9,191
Finished goods	4,223		3,937
Deferred inventory costs(a)	1,975		1,764
Inventories, including deferred inventory costs	$	16,198	$	14,891

(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 time and material service contracts (primarily originating in Power and ~~Aviation)~~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

March 31, 2022 December 31, 2021
Original cost $ 31,531 $ 31,904
Less accumulated depreciation and amortization (18,935) (18,901)
Right-of-use operating lease assets 2,440 2,606
Property, plant and equipment – net $ 15,036 $ 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 property, plant and equipment at our remaining Steam business within our Power segment. This charge was recorded by Corporate in Selling, general, and administrative expenses in our consolidated Statement of Earnings (Loss).


	March 31, 2023		December 31, 2022
Original cost	$	26,957	$	26,641
Less accumulated depreciation and amortization	(16,640)		(16,303)
Right-of-use operating lease assets	1,853		1,854
Property, plant and equipment – net	$	12,170	$	12,192

Operating Lease Liabilities. Our consolidated operating lease liabilities, included in All other liabilities in our Statement of Financial Position, was ~~$2,679~~$2,083 million and ~~$2,848~~$2,089 million, as of March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively. Expense on our operating lease portfolio, primarily from our long-term fixed leases, was ~~$272~~$195 million and ~~$281~~$227 million for the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, respectively.

~~2022 1Q FORM 10-Q~~ 27

NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS


GOODWILL	GOODWILL	January 1, 2022		Currency exchange and other		Balance at March 31, 2022		GOODWILL	January 1, 2023		Currency exchange and other		Balance at March 31, 2023
Aviation		$	9,013	$	(71)	$	8,942
Healthcare		12,879		(39)		12,840
Aerospace								Aerospace	$	8,835	$	64	$	8,899
Renewable Energy	Renewable Energy	3,231		62		3,294		Renewable Energy	3,201		42		3,243
Power	Power	145		—		144		Power	144		—		144

Corporate(a)	Corporate(a)	914		(87)		827		Corporate(a)	818		2		821
Total	Total	$	26,182	$	(135)	$	26,047	Total	$	12,999	$	108	$	13,107

(a) Corporate balance comprises our Digital business.

~~In assessing~~We assess the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates, we consider all available evidence, including (i) the results of our impairment testing from the most recent testing date, (ii) downward revisions to internal forecasts or decreases in market multiples, if any, and (iii) declines in market capitalization.dates. In the first quarter of ~~2022,~~2023, we did not identify any reporting units that required an interim impairment test. However, we continue to monitor the operating results and cash flow forecasts of our Digital reporting unit at Corporate and our Additive reporting unit in our Aerospace segment as the fair value of these reporting units were not significantly in excess of their carrying values based on the results of our most recent annual impairment test, performed in the fourth quarter of 2022. At March 31, 2023, our Digital and Additive reporting units had goodwill of $821 million and $244 million, respectively.

~~Substantially all other intangible assets are subject to amortization.~~ Intangible assets decreased ~~$1,040~~$115 million during the three months ended March 31, ~~2022,~~2023, primarily as a result of amortization partially offset by changes in foreign exchange rates of $23 million and additions of capitalized software mainly at ~~Aviation~~Aerospace of $20 million. Consolidated amortization expense was $140 million and ~~Healthcare of $48 million.~~$922 million in the three months ended March 31, 2023 and 2022, respectively. Included within consolidated amortization expense for the three months ended March 31, 2022 was a non-cash pre-tax impairment charge of $765 million. ~~Consolidated amortization expense was $1,025 million and $301 million in the three months ended March 31, 2022 and 2021, respectively.~~

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 aFor further information on this non-cash pre-tax impairment charge, ~~of $765 million related~~refer to ~~intangible assets at~~ our ~~remaining Steam business within our Power segment. We determined~~Annual Report on Form 10-K for the ~~fair value of these intangible assets using an income approach. This charge was recorded by Corporate in Selling, general, and administrative expenses in our consolidated Statement of Earnings (Loss).~~year ended December 31, 2022.

~~NOTE 8. REVENUES.~~

EQUIPMENT & SERVICES REVENUES
Three months ended March 31 2022 2021
Equipment Services Total Equipment Services Total
Aviation $ 1,654 $ 3,949 $ 5,603 $ 1,847 $ 3,145 $ 4,992
Healthcare 2,256 2,107 4,363 2,227 2,081 4,308
Renewable Energy 2,173 698 2,871 2,844 404 3,248
Power 965 2,536 3,501 1,241 2,679 3,921
Total segment revenues $ 7,048 $ 9,290 $ 16,337 $ 8,159 $ 8,309 $ 16,468

~~2022~~2023 1Q FORM 10-Q 2830

REVENUES Three months ended March 31
2022 2021
Commercial Engines & Services $ 3,853 $ 3,354
Military 1,036 956
Systems & Other 714 682
Aviation $ 5,603 $ 4,992
Healthcare Systems $ 3,875 $ 3,825
Pharmaceutical Diagnostics 487 482
Healthcare $ 4,363 $ 4,308
Onshore Wind $ 1,906 $ 2,118
Grid Solutions equipment and services 668 795
Hydro, Offshore Wind and Hybrid Solutions 297 335
Renewable Energy $ 2,871 $ 3,248
Gas Power $ 2,489 $ 2,829
Steam Power 636 706
Power Conversion, Nuclear and other 377 385
Power $ 3,501 $ 3,921
Total segment revenues 16,337 16,468
Corporate 702 603
Total revenues $ 17,040 $ 17,071
NOTE 8. REVENUES


EQUIPMENT & SERVICES REVENUES
Three months ended March 31	2023						2022
	Equipment		Services		Total		Equipment		Services		Total
Aerospace	$	1,974	$	5,007	$	6,981	$	1,654	$	3,949	$	5,603

Renewable Energy	2,311		527		2,837		2,173		698		2,871
Power	1,102		2,718		3,820		965		2,536		3,501

Total segment revenues	$	5,387	$	8,252	$	13,638	$	4,792	$	7,183	$	11,975


REVENUES	Three months ended March 31
	2023		2022
Commercial Engines & Services	$	5,194	$	3,853
Military	1,018		1,036
Systems & Other	770		714
Aerospace	$	6,981	$	5,603





Onshore Wind	$	1,502	$	1,906
Grid Solutions equipment and services	824		668

Offshore Wind, Hydro and Hybrid Solutions	511		297
Renewable Energy	$	2,837	$	2,871

Gas Power	$	2,867	$	2,489
Steam Power	541		636
Power Conversion, Nuclear and other	412		377
Power	$	3,820	$	3,501

Total segment revenues	$	13,638	$	11,975

Corporate	$	848	$	700

Total revenues	$	14,486	$	12,675

REMAINING PERFORMANCE OBLIGATION. As of March 31, ~~2022,~~2023, the aggregate amount of the contracted revenues allocated to our unsatisfied (or partially unsatisfied) performance obligations was ~~$240,740~~$242,054 million. We expect to recognize revenue as we satisfy our remaining performance obligations as follows: (1) equipment-related remaining performance obligation of ~~$45,687~~$47,991 million, of which ~~56%~~55%, ~~82%~~80% and ~~98%~~97% is expected to be satisfied within 1, 2 and 5 years, respectively; and (2) services-related remaining performance obligation of ~~$195,053~~$194,063 million, of which ~~11%~~12%, ~~41%~~43%, ~~63%~~68% and ~~81%~~83% is expected to be recognized within 1, 5, 10 and 15 years, respectively, and the remaining thereafter.

NOTE 9. CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME

Contract and other deferred assets decreased ~~$600~~$368 million in the three months ended March 31, ~~2022~~2023 primarily due to ~~decreased~~a decrease in long-term service agreements, ~~and~~partially offset by the timing of ~~billing milestones~~revenue recognition ahead of ~~revenue recognition~~billing milestones on long-term equipment contracts. Our long-term service agreements decreased primarily due to billings of ~~$2,772~~$3,155 million, partially offset by revenues recognized of $2,579 million and net favorable changes in estimated profitability of $53 million at Aerospace and net unfavorable changes in estimated profitability of ~~$16~~$12 million at ~~Aviation and $20 million at Power, partially offset by revenues recognized of $2,329 million.~~Power.


March 31, 2022		Aviation		Healthcare		Renewable Energy		Power		Corporate		Total
March 31, 2023														March 31, 2023	Aerospace		Renewable Energy		Power		Corporate		Total
Revenues in excess of billings	Revenues in excess of billings	$	2,289	$	—	$	—	$	5,394	$	—	$	7,683	Revenues in excess of billings	$	2,603	$	—	$	5,317	$	—	$	7,920
Billings in excess of revenues	Billings in excess of revenues	(5,852)		—		—		(1,662)		—		(7,514)		Billings in excess of revenues	(7,288)		—		(1,807)		—		(9,095)
Long-term service agreements	Long-term service agreements	$	(3,564)	$	—	$	—	$	3,732	$	—	$	168	Long-term service agreements	$	(4,685)	$	—	$	3,510	$	—	$	(1,176)
Short-term and other service agreements	Short-term and other service agreements	383		172		112		94		16		778		Short-term and other service agreements	456		129		66		277		927
Equipment contract revenues	Equipment contract revenues	35		303		1,231		1,513		217		3,300		Equipment contract revenues	27		1,009		1,457		—		2,493
Current contract assets	Current contract assets	$	(3,145)	$	475	$	1,343	$	5,339	$	233	$	4,246	Current contract assets	$	(4,203)	$	1,138	$	5,032	$	277	$	2,244

Nonrecurring engineering costs(a)	Nonrecurring engineering costs(a)	2,516		30		24		10		—		2,580		Nonrecurring engineering costs(a)	2,521		19		2		—		2,542
Customer advances and other(b)	Customer advances and other(b)	2,625		158		—		796		—		3,579		Customer advances and other(b)	2,389		—		700		—		3,089
Non-current contract and other deferred assets	Non-current contract and other deferred assets	$	5,141	$	189	$	24	$	806	$	—	$	6,159	Non-current contract and other deferred assets	$	4,910	$	19	$	702	$	—	$	5,631
Total contract and other deferred assets	Total contract and other deferred assets	$	1,996	$	664	$	1,367	$	6,145	$	233	$	10,405	Total contract and other deferred assets	$	707	$	1,157	$	5,734	$	277	$	7,875

~~2022~~2023 1Q FORM 10-Q 2931

(b) Included amounts due 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 long-term service agreements.

Progress collections and deferred income ~~decreased $1,201~~increased $461 million primarily due to ~~the reclassification of a portion of our GE Steam Power business to held for sale, partially offset by the timing of~~ new collections received in excess of revenue recognition ~~primarily~~ at ~~Aviation.~~Power and Renewable Energy, partially offset by net liquidations at Aerospace. Revenues recognized for contracts included in a liability position at the beginning of the year were ~~$4,638~~$4,468 million and ~~$5,984~~$3,997 million for the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, respectively.

December 31, 2021
Progress collections on equipment contracts $ 142 $ — $ 1,843 $ 5,198 $ — $ 7,183
Other progress collections 4,469 522 2,866 385 111 8,354
Current deferred income 170 1,336 198 33 99 1,835
Progress collections and deferred income $ 4,782 $ 1,858 $ 4,907 $ 5,615 $ 210 $ 17,372
Non-current deferred income 1,090 592 194 110 3 1,989
Total Progress collections and deferred income $ 5,871 $ 2,450 $ 5,101 $ 5,725 $ 213 $ 19,361


December 31, 2022
Progress collections on equipment contracts	$	74	$	2,464	$	3,973	$	—	$	6,511
Other progress collections	5,740		2,731		541		131		9,143

Current deferred income	233		208		13		107		562
Progress collections and deferred income	$	6,047	$	5,404	$	4,527	$	238	$	16,216
Non-current deferred income	1,110		183		104		12		1,409
Total Progress collections and deferred income	$	7,157	$	5,586	$	4,632	$	250	$	17,625

NOTE 10. ALL OTHER ASSETS. All other current assets and All other assets primarily include equity method and other investments, long-term customer and sundry receivables (see Note 4), cash and cash equivalents and receivables in our run-off insurance operations and prepaid taxes and other deferred charges. All other non-current assets increased ~~$727~~$412 million in the three months ended March 31, ~~2022,~~2023, primarily due to ~~increases~~an increase in equity method and other investments of $180 million, an increase in long-term receivables of $122 million and an increase in Insurance cash and cash equivalents of ~~$441 million, equity method~~$68 million. Insurance cash and ~~other investments of $187~~cash equivalents was $687 million and ~~pension surplus of $183 million.~~$619 million at March 31, 2023 and December 31, 2022, respectively.

2023 1Q FORM 10-Q 32

March 31, 2022 December 31, 2021
Current portion of long-term borrowings
   Senior notes issued by GE $ 1,228 $ 1,249
   Senior and subordinated notes assumed by GE 2,516 1,645
   Senior notes issued by GE Capital 1,099 1,370
Other 142 97
Total short-term borrowings $ 4,985 $ 4,361
Senior notes issued by GE $ 5,232 $ 5,373
Senior and subordinated notes assumed by GE 10,196 11,306
Senior notes issued by GE Capital 12,348 13,274
Other 873 870
Total long-term borrowings $ 28,649 $ 30,824
Total borrowings $ 33,633 $ 35,186


	March 31, 2023		December 31, 2022


Current portion of long-term borrowings
Senior notes issued by GE	$	609	$	464
Senior and subordinated notes assumed by GE	947		1,973
Senior notes issued by GE Capital	592		1,188
Other	114		115
Total short-term borrowings	$	2,262	$	3,739


Senior notes issued by GE	$	4,653	$	4,724
Senior and subordinated notes assumed by GE	8,383		8,406
Senior notes issued by GE Capital	6,262		6,289
Other	861		901
Total long-term borrowings	$	20,159	$	20,320
Total borrowings	$	22,421	$	24,059

~~2022 1Q FORM 10-Q~~ 30

NOTE 12. ACCOUNTS PAYABLE AND EQUIPMENT PROJECT PAYABLES

(a) Primarily related to projects in our Power and Renewable Energy segments.

NOTE ~~12.~~13. INSURANCE LIABILITIES AND ANNUITY BENEFITS. Insurance liabilities and annuity benefits comprise substantially all obligations to annuitants and insureds in our run-off insurance operations. Our insurance operations (net of eliminations) generated revenues of ~~$767~~$791 million and ~~$755~~$764 million, profit ~~of $225~~was $70 million and ~~$138~~$106 million and net earnings ~~of $178~~was $54 million and ~~$111~~$84 million for the three months ended March 31, 2023 and 2022, respectively. For the years ended December 31, 2022 and 2021 our insurance operations (net of eliminations) generated revenues of $2,957 million and $3,101 million, profit was $205 million and $798 million and net earnings was $159 million and $627 million, respectively. These operations were supported by assets of ~~$48,378~~$47,981 million, $45,031 million and ~~$49,894~~$56,037 million at March 31, 2023, December 31, 2022 and ~~December 31,~~ 2021, respectively. A summary of our insurance ~~contracts~~liabilities and annuity benefits is presented below:

March 31, 2022 Long-term care Structured settlement annuities & life Other contracts Other adjustments(a) Total
Future policy benefit reserves $ 17,112 $ 8,811 $ 191 $ — $ 26,114
Claim reserves 4,526 267 551 — 5,344
Investment contracts — 933 950 — 1,883
Unearned premiums and other 12 187 86 — 285
Total $ 21,650 $ 10,198 $ 1,778 $ — $ 33,626

December 31, 2021
Future policy benefit reserves $ 17,097 $ 8,902 $ 188 $ 3,394 $ 29,581
Claim reserves 4,546 258 585 — 5,389
Investment contracts — 955 954 — 1,909
Unearned premiums and other 15 184 89 — 287
Total $ 21,658 $ 10,299 $ 1,815 $ 3,394 $ 37,166

~~(a) The decrease in Other adjustments of $3,394 million is a result of the decline in unrealized gains on investment securities.~~


March 31, 2023	Long-term care		Structured settlement annuities		Life		Other contracts(a)		Total
Future policy benefit reserves	$	26,054	$	9,349	$	1,045	$	428	$	36,876
Investment contracts	—		846		—		821		1,667
Other	—		—		178		361		539


Total	$	26,054	$	10,194	$	1,223	$	1,610	$	39,082

2023 1Q FORM 10-Q 33

2023 1Q FORM 10-Q 34


	March 31, 2023				March 31, 2022				December 31, 2022				December 31, 2021
	Undiscounted		Discounted(a)		Undiscounted		Discounted(a)		Undiscounted		Discounted(a)		Undiscounted		Discounted(a)
Long-term care
Gross premiums	$	7,924	$	5,105	$	8,052	$	5,599	$	7,985	$	4,918	$	8,173	$	6,187
Benefit payments	64,944		30,271		67,254		35,277		65,217		28,316		67,516		40,296

Structured settlement annuities
Benefit payments	19,745		9,349		20,482		10,848		19,936		8,860		20,666		12,328
Life
Gross premiums	13,537		6,104		14,676		7,311		13,754		5,916		14,579		8,275
Benefit payments	11,800		6,025		12,709		7,058		12,020		5,868		12,702		7,923

(a) Determined using the current discount rate as of March 31, 2023 and 2022 and December 31, 2022 and 2021.

2023 1Q FORM 10-Q 35

The recapture transaction reduces both our financial and operational risks by ~~assets~~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.

Statutory accounting practices, not GAAP, determine the required statutory capital levels of our insurance legal entities. Statutory accounting practices are set forth by the ~~beneficiary.~~National Association of Insurance Commissioners (NAIC) as well as state laws, regulation and general administrative rules and differ in certain respects from GAAP. We annually perform statutory asset adequacy testing, the results of which may affect the amount or timing of capital contributions from GE to the insurance legal entities.

2023 1Q FORM 10-Q 36

Following approval of a statutory permitted accounting practice in 2018 by our primary regulator, the Kansas Insurance Department (KID), we provided a total of $13,215 million of capital contributions to our run-off insurance subsidiaries, including $1,815 million in the first quarter of 2023. In accordance with the terms of the 2018 statutory permitted accounting practice, we expect to provide the final capital contribution of approximately $1,820 million in the first quarter of 2024, pending completion of our December 31, 2023 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 under which GE 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.

See Notes 1 and 3 for further information related to our run-off insurance operations.

NOTE ~~13.~~14. POSTRETIREMENT BENEFIT PLANS.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. Please refer to Note 1213 to the consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 for ~~a discussion~~further information about our plans before the Separation. In connection with the Separation, certain of ~~our~~these plans were split into three and net liabilities of approximately $4.0 billion associated with GE’s postretirement benefit ~~plans.~~plans were transferred to GE HealthCare. Information about the plans remaining with GE after the Separation is provided below.

DESCRIPTION OF OUR PLANS

Plan Category

Participants

Funding

Comments

Principal Pension Plans

GE Energy Pension Plan and GE Aerospace Pension Plan

Covers U.S. participants ~115,000 retirees and beneficiaries, ~50,000 vested former employees and ~16,500 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.

Closed to new participants since 2012. Benefits for 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 Energy Supplementary Pension Plan GE Aerospace Supplementary Pension Plan

Provides supplementary benefits to higher-level, longer-service U.S. employees

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 employees who became executives before 2011 were frozen effective January 1, 2021, and thereafter these employees accrue the installment benefit.

Other Pension Plans(a)

35 U.S. and non-U.S. pension plans with pension assets or obligations that have reached $50 million

Covers ~42,500 retirees and beneficiaries, ~29,500 vested former employees and ~8,000 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 of Power and Renewable Energy (will be part of GE Vernova, GE's portfolio of energy businesses) and Aerospace ~93,500 retirees and dependents and ~15,500 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.

PRINCIPAL PENSION PLANS Three months ended March 31
2022 2021
Service cost for benefits earned $ 49 $ 64
Prior service cost amortization 2 7
Expected return on plan assets (786) (763)
Interest cost on benefit obligations 517 486
Net actuarial loss amortization 361 864
Benefit plans cost $ 143 $ 658

2023 1Q FORM 10-Q 37


PRINCIPAL PENSION PLANS	Three months ended March 31
	2023		2022
Service cost for benefits earned	$	21	$	49

Expected return on plan assets	(594)		(786)
Interest cost on benefit obligations	474		517
Net actuarial loss amortization and other	(172)		363
Net periodic expense (income)	(271)		143
Less discontinued operations	$	—	$	49
Continuing operations – net periodic expense (income)	$	(271)	$	94

~~2022 1Q FORM 10-Q~~ 31Post Separation, we expect to pay approximately $230 million in total for benefit payments under our GE Energy Supplementary Pension Plan and GE Aerospace Supplementary Pension Plan and administrative expenses of our principal pension plans and expect to contribute approximately $100 million to other pension plans in 2023. We fund retiree health benefits on a pay-as-you-go basis and the retiree life insurance trust at our discretion. Post Separation, we would expect to contribute approximately $230 million in 2023 to fund such benefits.

NOTE ~~14.~~15. CURRENT AND ALL OTHER LIABILITIES. All other current liabilities and All other liabilities primarily includes liabilities for customer sales allowances, equipment project and commercial liabilities, loss contracts, employee compensation and benefits, income taxes payable and uncertain tax positions, operating lease liabilities (see Note 6), environmental, health and safety remediations and product warranties (see Note ~~21)~~23). All other current liabilities increased ~~$239~~$183 million in the three months ended March 31, ~~2022,~~2023, primarily due to ~~increases in sales allowances of $277 million and~~ taxes payable of ~~$278~~$175 million, sales discounts and allowances of $135 million and equipment projects and other commercial liabilities of $120 million partially offset by ~~a decrease in employee compensation and benefit liabilities~~derivative instruments of ~~$432~~$195 million. All other liabilities decreased ~~$763~~$125 million in the three months ended March ~~31. 2022,~~31, 2023, primarily due to ~~decreases in uncertain~~decreased equipment projects and other ~~income taxes and related~~commercial liabilities of ~~$369 million and operating lease liabilities of $169~~$181 million.

NOTE ~~15.~~16. INCOME TAXES. Our ~~consolidated effective~~ income tax rate was ~~(38.8)%~~4.2% and ~~59.7%~~(2.5)% for the three months ended March 31, 2023 and 2022, respectively. The low tax rate for 2023 was primarily due to the unrealized gain on our investment in GE HealthCare, which is expected to be recovered tax-free. We intend to dispose of our investment in a manner consistent with the tax-free treatment confirmed in our Internal Revenue Service (IRS) ruling in connection with the spin of GE HealthCare. This was partially offset by separation income tax costs including disallowed expenses and ~~2021, respectively.~~valuation allowances related to the spin of GE HealthCare and by losses in foreign jurisdictions that are not likely to be utilized. The tax rate for 2022 reflects a tax provision on a pre-tax loss. The rate was negative primarily due to non-tax benefited asset impairment charges, losses in foreign jurisdictions ~~where they~~that are not likely to be utilized and the ~~global intangible minimum tax provisions, non-tax benefited asset impairment charges and the~~ net unrealized capital loss on our interest in AerCap and Baker Hughes for which the loss could not be tax benefited. ~~The rate for 2021 is higher than~~

On August 16, 2022, the U.S. ~~statutory rate primarily due~~enacted the Inflation Reduction Act that includes a new Corporate Alternative Minimum Tax (CAMT) based upon financial statement income, an excise tax on stock buybacks and tax incentives for energy and climate initiatives, among other provisions. The new CAMT is expected to slow but not eliminate the ~~cost~~favorable tax impact of ~~global activities, including~~our deferred tax assets, resulting in higher cash tax in some years that would generate future tax benefits. The impact of CAMT will depend on our facts in each year and anticipated guidance from the ~~base erosion and global minimum tax provisions and from tax expense associated with~~U.S. Department of the ~~unrealized gain~~Treasury. We currently do not expect to incur CAMT in our remaining interest in Baker Hughes. This was partially offset by an adjustment to decrease the 2021 three-month tax rate to be in-line with the lower expected full-year rate and by U.S. business credits.2023.

The ~~Internal Revenue Service (IRS)~~IRS is currently auditing our consolidated U.S. income tax returns for 2016-2018.

2023 1Q FORM 10-Q 38

NOTE ~~16.~~17. SHAREHOLDERS’ EQUITY


							Three months ended March 31
		Three months ended March 31
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dividends per share in dollars)	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dividends per share in dollars)	2022		2021		ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dividends per share in dollars)		2023		2022

Beginning balance	Beginning balance	$	(4,562)	$	(4,386)	Beginning balance		$	(5,893)	$	(4,569)
AOCI before reclasses – net of taxes of $94 and $(57)		(166)		110
Reclasses from AOCI – net of taxes of $— and $—		—		—
AOCI before reclasses – net of taxes of $(5) and $90						AOCI before reclasses – net of taxes of $(5) and $90		152		(181)
Reclasses from AOCI – net of taxes of $(626) and $0(a)						Reclasses from AOCI – net of taxes of $(626) and $0(a)		2,234		—
AOCI	AOCI	(166)		110		AOCI		2,387		(181)
Less AOCI attributable to noncontrolling interests	Less AOCI attributable to noncontrolling interests	(4)		2		Less AOCI attributable to noncontrolling interests		(1)		(4)
Currency translation adjustments AOCI	Currency translation adjustments AOCI	$	(4,724)	$	(4,278)	Currency translation adjustments AOCI		$	(3,505)	$	(4,746)

Beginning balance	Beginning balance	$	3,646	$	(5,395)	Beginning balance		$	6,531	$	3,646
AOCI before reclasses – net of taxes of $25 and $(47)		54		16
Reclasses from AOCI – net of taxes of $55 and $194		186		689
AOCI before reclasses – net of taxes of $(13) and $25						AOCI before reclasses – net of taxes of $(13) and $25		(84)		54
Reclasses from AOCI – net of taxes of $(594) and $55(a)						Reclasses from AOCI – net of taxes of $(594) and $55(a)		(2,235)		186
AOCI	AOCI	240		705		AOCI		(2,319)		240
Less AOCI attributable to noncontrolling interests	Less AOCI attributable to noncontrolling interests	2		1		Less AOCI attributable to noncontrolling interests		(2)		2
Benefit plans AOCI	Benefit plans AOCI	$	3,884	$	(4,691)	Benefit plans AOCI		$	4,214	$	3,884

Beginning balance	Beginning balance	$	2,498	$	32	Beginning balance		$	(1,927)	$	5,172
AOCI before reclasses – net of taxes of $(88) and $(3)(a)		(312)		10
Reclasses from AOCI – net of taxes of $1 and $14		(5)		34
AOCI before reclasses – net of taxes of $188 and $(801)						AOCI before reclasses – net of taxes of $188 and $(801)		718		(2,993)
Reclasses from AOCI – net of taxes of $0 and $1(a)						Reclasses from AOCI – net of taxes of $0 and $1(a)		(12)		(5)
AOCI	AOCI	(317)		44		AOCI		706		(2,998)

Investment securities and cash flow hedges AOCI	Investment securities and cash flow hedges AOCI	$	2,181	$	76	Investment securities and cash flow hedges AOCI		$	(1,222)	$	2,174

Beginning balance						Beginning balance		$	(983)	$	(9,109)
AOCI before reclasses – net of taxes of $(477) and $979						AOCI before reclasses – net of taxes of $(477) and $979		(1,793)		3,682

AOCI						AOCI		(1,793)		3,682
Long-duration insurance contracts AOCI						Long-duration insurance contracts AOCI		$	(2,776)	$	(5,427)

AOCI at March 31	AOCI at March 31	$	1,341	$	(8,893)	AOCI at March 31		$	(3,289)	$	(4,115)

Dividends declared per common share	Dividends declared per common share	$	0.08	$	0.08	Dividends declared per common share		$	0.08	$	0.08


			Page

Forward-Looking Statements			3
About General Electric			4
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)			4
Consolidated Results			4
Segment Operations			6
Corporate			109
Other Consolidated Information			1110
Capital ~~Resources~~Resources and Liquidity			1211
Critical Accounting Estimates			14
~~New Accounting Standards~~			1413

Non-GAAP Financial Measures			1415
Controls and Procedures			19
Other Financial Data			19
~~Risk Factors~~			19




Financial Statements and Notes			20
Statement of Earnings (Loss)			20
Statement of Financial Position			21
Statement of Cash Flows			22
Statement of Comprehensive Income (Loss)			23
Statement of Changes in Shareholders' Equity			23
Note 1 Basis of Presentation and Summary of Significant Accounting Policies			24
Note 2 Businesses Held for Sale and Discontinued Operations			2426
Note 3 Investment Securities			2528
Note 4 Current and Long-Term Receivables			2629
Note 5 Inventories, Including Deferred Inventory Costs			2730
Note 6 Property, Plant and Equipment and Operating Leases			2730
Note 7 G ~~oodwill~~Goodwill and Other Intangible Assets			2830
Note 8 Revenues			2831
Note 9 Contract and Other Deferred Assets & Progress Collections and Deferred Income			2931
Note 10 All Other Assets			30
~~Note 1~~1 ~~Borrowings~~			30
~~Note~~ 1 2 ~~Insurance Liabilities and Annuity Benefits~~			31
~~Note 1~~3 ~~Postretirement Benefit Plans~~			31
~~Note~~ 1 4 ~~Current and All Other Liabilities~~			32
N ~~ote 1~~5 ~~Income Taxes~~			32
Note 1 61 ~~Shareholders' Equity~~			32

~~Note 17 Earnings Per Share Information~~			33

~~Note~~ 18 ~~Other Income~~Borrowings			33
Note 1 92 ~~Financial Instruments~~Accounts Payable and Equipment Project Payables			33
Note 1 3 Insurance Liabilities and Annuity Benefits			33
Note 1 4 Postretirement Benefit Plans			37
Note 1 5 Current and All Other Liabilities			38
Note 1 6 Income Taxes			38
Note 1 7 Shareholders' Equity			39

Note 18 Earnings Per Share Information			39
Note 19 Other Income (Loss)			40
Note 20 Restructuring Charges and Separation Costs			40

Note 2 1 Financial Instruments			41
Note 2 2 Variable Interest Entities			3543
Note 2 13 Commitments, Guarantees, Product Warranties and Other Loss Contingencies			3543






Exhibits			3745

Form 10-Q Cross Reference Index			3745

Signatures			3745


		Three months ended March 31
					Three months ended March 31
Sales in units, except where noted	Sales in units, except where noted	2022	2021			Sales in units, except where noted	2023		2022
Commercial Engines(a)	Commercial Engines(a)	343	359			Commercial Engines(a)	481		343
LEAP Engines(b)	LEAP Engines(b)	239	188			LEAP Engines(b)	366		239
Military Engines	Military Engines	184	96			Military Engines	80		184
Spare Parts Rate(c)	Spare Parts Rate(c)	22.8	13.2			Spare Parts Rate(c)	$	31.1	$	22.8
(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.	(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.			(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.


			Three months ended March 31			Three months ended March 31

Sales in units	Sales in units			2022	2021		Sales in units	2023	2022
GE Gas Turbines	GE Gas Turbines			20	11		GE Gas Turbines	23	20
Heavy-Duty Gas Turbines(a)	Heavy-Duty Gas Turbines(a)			13	11		Heavy-Duty Gas Turbines(a)	18	13
HA-Turbines(b)	HA-Turbines(b)			2	5		HA-Turbines(b)	4	2
Aeroderivatives(a)	Aeroderivatives(a)			7	—		Aeroderivatives(a)	5	7

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


STATEMENT OF CASH FLOWS (UNAUDITED)	STATEMENT OF CASH FLOWS (UNAUDITED)	Three months ended March 31				STATEMENT OF CASH FLOWS (UNAUDITED)	Three months ended March 31
(In millions)						(In millions)	2023		2022

(In millions)		2022		2021
Net earnings (loss)	Net earnings (loss)	$	(1,014)	$	(2,798)	Net earnings (loss)	$	7,478	$	(1,108)

(Earnings) loss from discontinued operations		286		2,894
Adjustments to reconcile net earnings (loss)
to cash from (used for) operating activities
(Earnings) loss from discontinued operations activities						(Earnings) loss from discontinued operations activities	(1,257)		(101)
Adjustments to reconcile net earnings (loss) to cash from (used for) operating activities						Adjustments to reconcile net earnings (loss) to cash from (used for) operating activities
Depreciation and amortization of property, plant and equipment	Depreciation and amortization of property, plant and equipment	460		452		Depreciation and amortization of property, plant and equipment	367		403
Amortization of intangible assets (Note 7)	Amortization of intangible assets (Note 7)	1,025		301		Amortization of intangible assets (Note 7)	140		922

(Gains) losses on purchases and sales of business interests (Note 18)		(15)		(3)
(Gains) losses on equity securities (Note 18)		214		(296)
(Gains) losses on purchases and sales of business interests						(Gains) losses on purchases and sales of business interests	52		(15)
(Gains) losses on equity securities						(Gains) losses on equity securities	(5,906)		206

Principal pension plans cost (Note 13)		143		658
Principal pension plans employer contributions (Note 13)		(79)		(74)
Other postretirement benefit plans (net) (Note 13)		(329)		(289)
Provision (benefit) for income taxes (Note 15)		204		142
Principal pension plans cost (Note 14)						Principal pension plans cost (Note 14)	(271)		94
Principal pension plans employer contributions						Principal pension plans employer contributions	(52)		(49)
Other postretirement benefit plans (net)						Other postretirement benefit plans (net)	(181)		(224)
Provision (benefit) for income taxes						Provision (benefit) for income taxes	271		29
Cash recovered (paid) during the year for income taxes	Cash recovered (paid) during the year for income taxes	(192)		(322)		Cash recovered (paid) during the year for income taxes	(172)		(24)
Changes in operating working capital:	Changes in operating working capital:					Changes in operating working capital:
Decrease (increase) in current receivables	Decrease (increase) in current receivables	(749)		946		Decrease (increase) in current receivables	536		(610)
Decrease (increase) in inventories, including deferred inventory costs	Decrease (increase) in inventories, including deferred inventory costs	(990)		(722)		Decrease (increase) in inventories, including deferred inventory costs	(1,275)		(732)
Decrease (increase) in current contract assets	Decrease (increase) in current contract assets	442		(35)		Decrease (increase) in current contract assets	294		473
Increase (decrease) in accounts payable and equipment project accruals		75		(349)
Increase (decrease) in accounts payable and equipment project payables						Increase (decrease) in accounts payable and equipment project payables	(201)		(293)
Increase (decrease) in progress collections and current deferred income	Increase (decrease) in progress collections and current deferred income	246		(425)		Increase (decrease) in progress collections and current deferred income	205		173
Financial services derivatives net collateral/settlement	Financial services derivatives net collateral/settlement	(155)		(1,737)		Financial services derivatives net collateral/settlement	3		(155)
All other operating activities	All other operating activities	(103)		(982)		All other operating activities	125		89
Cash from (used for) operating activities – continuing operations	Cash from (used for) operating activities – continuing operations	(535)		(2,640)		Cash from (used for) operating activities – continuing operations	155		(924)
Cash from (used for) operating activities – discontinued operations	Cash from (used for) operating activities – discontinued operations	(21)		680		Cash from (used for) operating activities – discontinued operations	(413)		369
Cash from (used for) operating activities	Cash from (used for) operating activities	(556)		(1,959)		Cash from (used for) operating activities	(259)		(556)

Additions to property, plant and equipment	Additions to property, plant and equipment	(340)		(332)		Additions to property, plant and equipment	(279)		(239)
Dispositions of property, plant and equipment	Dispositions of property, plant and equipment	30		34		Dispositions of property, plant and equipment	7		28
Additions to internal-use software	Additions to internal-use software	(23)		(24)		Additions to internal-use software	(20)		(22)

Proceeds from principal business dispositions		—		1

Sales of retained ownership interests	Sales of retained ownership interests	1,302		735		Sales of retained ownership interests	2,025		1,302
Net (purchases) dispositions of insurance investment securities	Net (purchases) dispositions of insurance investment securities	(1,344)		(712)		Net (purchases) dispositions of insurance investment securities	(1,556)		(1,344)
All other investing activities	All other investing activities	(82)		1,144		All other investing activities	1,096		239
Cash from (used for) investing activities – continuing operations	Cash from (used for) investing activities – continuing operations	(456)		847		Cash from (used for) investing activities – continuing operations	1,273		(37)
Cash from (used for) investing activities – discontinued operations	Cash from (used for) investing activities – discontinued operations	12		(646)		Cash from (used for) investing activities – discontinued operations	(3,068)		(407)
Cash from (used for) investing activities	Cash from (used for) investing activities	(444)		202		Cash from (used for) investing activities	(1,796)		(444)

Net increase (decrease) in borrowings (maturities of 90 days or less)	Net increase (decrease) in borrowings (maturities of 90 days or less)	47		(319)		Net increase (decrease) in borrowings (maturities of 90 days or less)	1		45
Newly issued debt (maturities longer than 90 days)	Newly issued debt (maturities longer than 90 days)	—		314		Newly issued debt (maturities longer than 90 days)	9		—
Repayments and other debt reductions (maturities longer than 90 days)	Repayments and other debt reductions (maturities longer than 90 days)	(1,268)		(1,513)		Repayments and other debt reductions (maturities longer than 90 days)	(1,815)		(1,267)

Dividends paid to shareholders	Dividends paid to shareholders	(140)		(148)		Dividends paid to shareholders	(203)		(140)

Redemption of GE preferred stock						Redemption of GE preferred stock	(3,000)		—
Purchases of GE common stock for treasury						Purchases of GE common stock for treasury	(309)		(39)
All other financing activities	All other financing activities	(98)		57		All other financing activities	87		(30)
Cash from (used for) financing activities – continuing operations	Cash from (used for) financing activities – continuing operations	(1,459)		(1,608)		Cash from (used for) financing activities – continuing operations	(5,230)		(1,431)
Cash from (used for) financing activities – discontinued operations	Cash from (used for) financing activities – discontinued operations	—		3		Cash from (used for) financing activities – discontinued operations	1,999		(28)
Cash from (used for) financing activities	Cash from (used for) financing activities	(1,459)		(1,605)		Cash from (used for) financing activities	(3,232)		(1,459)
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	(75)		(131)		Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	65		(75)
Increase (decrease) in cash, cash equivalents and restricted cash	Increase (decrease) in cash, cash equivalents and restricted cash	(2,534)		(3,494)		Increase (decrease) in cash, cash equivalents and restricted cash	(5,220)		(2,534)
Cash, cash equivalents and restricted cash at beginning of year	Cash, cash equivalents and restricted cash at beginning of year	16,859		37,608		Cash, cash equivalents and restricted cash at beginning of year	19,092		16,859
Cash, cash equivalents and restricted cash at March 31	Cash, cash equivalents and restricted cash at March 31	14,325		34,115		Cash, cash equivalents and restricted cash at March 31	13,871		14,325
Less cash, cash equivalents and restricted cash of discontinued operations at March 31	Less cash, cash equivalents and restricted cash of discontinued operations at March 31	688		625		Less cash, cash equivalents and restricted cash of discontinued operations at March 31	1,180		1,223
Cash, cash equivalents and restricted cash of continuing operations at March 31	Cash, cash equivalents and restricted cash of continuing operations at March 31	$	13,636	$	33,490	Cash, cash equivalents and restricted cash of continuing operations at March 31	$	12,691	$	13,101


EARNINGS (LOSS) AND EARNINGS (LOSS) PER SHARE	EARNINGS (LOSS) AND EARNINGS (LOSS) PER SHARE	Three months ended March 31				EARNINGS (LOSS) AND EARNINGS (LOSS) PER SHARE	Three months ended March 31
(Per-share in dollars and diluted)	(Per-share in dollars and diluted)	2022		2021		(Per-share in dollars and diluted)		2023		2022
Continuing earnings (loss) attributable to GE common shareholders	Continuing earnings (loss) attributable to GE common shareholders	$	(809)	$	20	Continuing earnings (loss) attributable to GE common shareholders		$	6,103	$	(1,276)
Continuing earnings (loss) per share	Continuing earnings (loss) per share	$	(0.74)	$	0.02	Continuing earnings (loss) per share		$	5.56	$	(1.16)


		Three Months Ended March 31
SUMMARY OF REPORTABLE SEGMENTS	SUMMARY OF REPORTABLE SEGMENTS		2022		2021		V	%	SUMMARY OF REPORTABLE SEGMENTS	Three months ended March 31
Aviation			$	5,603	$	4,992	12	%
Healthcare			4,363		4,308		1	%
										2023		2022		V	%
Aerospace									Aerospace	$	6,981	$	5,603	25	%
Renewable Energy	Renewable Energy		2,871		3,248		(12)	%	Renewable Energy	2,837		2,871		(1)	%
Power	Power		3,501		3,921		(11)	%	Power	3,820		3,501		9	%
Total segment revenues	Total segment revenues		16,337		16,468		(1)	%	Total segment revenues	13,638		11,975		14	%
Corporate	Corporate		702		603		16	%	Corporate	848		700		21	%
Total revenues	Total revenues		$	17,040	$	17,071	—	%	Total revenues	$	14,486	$	12,675	14	%

Aviation			$	908	$	641	42	%
Healthcare			538		698		(23)	%
Aerospace									Aerospace	$	1,326	$	908	46	%
Renewable Energy	Renewable Energy		(434)		(234)		(85)	%	Renewable Energy	(414)		(434)		5	%
Power	Power		63		(87)		F		Power	75		63		19	%
Total segment profit (loss)	Total segment profit (loss)		1,075		1,019		5	%	Total segment profit (loss)	987		538		83	%
Corporate(a)	Corporate(a)		(1,328)		160		U		Corporate(a)	5,456		(1,419)		F

Interest and other financial charges	Interest and other financial charges		(390)		(485)		20	%	Interest and other financial charges	(257)		(371)		31	%

Non-operating benefit income (cost)	Non-operating benefit income (cost)		137		(430)		F		Non-operating benefit income (cost)	385		105		F

Benefit (provision) for income taxes	Benefit (provision) for income taxes		(251)		(173)		(45)	%	Benefit (provision) for income taxes	(322)		(76)		U
Preferred stock dividends	Preferred stock dividends		(52)		(72)		28	%	Preferred stock dividends	(145)		(52)		U
Earnings (loss) from continuing operations attributable to GE common shareholders	Earnings (loss) from continuing operations attributable to GE common shareholders		(809)		20		U		Earnings (loss) from continuing operations attributable to GE common shareholders	6,103		(1,276)		F

Earnings (loss) from discontinued operations attributable to GE common shareholders	Earnings (loss) from discontinued operations attributable to GE common shareholders		(286)		(2,894)		90	%	Earnings (loss) from discontinued operations attributable to GE common shareholders	1,257		88		F
Net earnings (loss) attributable to GE common shareholders	Net earnings (loss) attributable to GE common shareholders		$	(1,094)	$	(2,874)	62	%	Net earnings (loss) attributable to GE common shareholders	$	7,360	$	(1,188)	F


RESTRUCTURING AND OTHER CHARGES	Three months ended March 31
	2022		2021
Workforce reductions	$	23	$	211
Plant closures & associated costs and other asset write-downs	29		26
Acquisition/disposition net charges and other	12		5
Other	(3)		—
Total restructuring and other charges	$	61	$	242

Cost of equipment/services	$	31	$	101
Selling, general and administrative expenses	33		148
Other income	(3)		(7)
Total restructuring and other charges	$	61	$	242

Aviation	$	5	$	62
Healthcare	13		39
Renewable Energy	6		76
Power	34		49
Corporate	3		16


Total restructuring and other charges	$	61	$	242
Restructuring and other charges cash expenditures	$	154	$	223


ADJUSTED EARNINGS (LOSS) PER SHARE (EPS) (NON-GAAP)	Three months ended March 31
(In dollars)	2022		2021		V%
Earnings (loss) per share from continuing operations (GAAP)(a)	$	(0.74)	$	0.02	U
Insurance earnings (pre-tax)	0.21		0.13
Tax effect on Insurance earnings	(0.04)		(0.03)
Less: Insurance earnings (net of tax)	0.16		0.10
Earnings (loss) per share excluding Insurance (Non-GAAP)	$	(0.90)	$	(0.08)	U
Non-operating benefit (cost) income (pre-tax) (GAAP)	0.12		(0.39)
Tax effect on non-operating benefit (cost) income	(0.03)		0.08
Less: non-operating benefit (cost) income (net of tax)	0.10		(0.31)
Gains (losses) on purchases and sales of business interests (pre-tax)(a)	—		—
Tax effect on gains (losses) on purchases and sales of business interests	—		—
Less: gains (losses) on purchases and sales of business interests (net of tax)	—		—
Gains (losses) on equity securities (pre-tax)(a)	(0.20)		0.32
Tax effect on gains (losses) on equity securities(b)(c)	(0.02)		(0.11)
Less: gains (losses) on equity securities (net of tax)	(0.22)		0.21
Restructuring & other (pre-tax)(a)	(0.03)		(0.10)
Tax effect on restructuring & other	0.01		0.02
Less: restructuring & other (net of tax)	(0.02)		(0.08)
Separation costs (pre-tax)(a)	(0.11)		—
Tax effect on separation costs	(0.02)		—
Less: separation costs (net of tax)	(0.13)		—
Steam asset sale impairment (pre-tax)(a)	(0.75)		—
Tax effect on Steam asset sale impairment	0.08		—
Less: Steam asset sale impairment (net of tax)	(0.67)		—
Russia and Ukraine charges (pre-tax)(a)	(0.21)		—
Tax effect on Russia and Ukraine charges	0.01		—
Less: Russia and Ukraine charges (net of tax)	(0.20)		—
Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax)	—		—

Less: Tax loss related to GECAS transaction	—		(0.04)
Adjusted earnings (loss) per share (Non-GAAP)	$	0.24	$	0.13	85	%

(a) See the Corporate section for further information.
(b) Includes tax benefits available to offset the tax on gains in equity securities.
(c) Includes related tax valuation allowances.

Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
The service cost for our pension and other benefit plans are included in adjusted earnings, which represents the ongoing cost of providing pension benefits to our employees. The components of non-operating benefit costs are mainly driven by capital allocation decisions and market performance. We believe the retained costs in Adjusted earnings and Adjusted EPS* provides management and investors a useful measure to evaluate the performance of the total company and increases period-to-period comparability. We also use Adjusted EPS* as a performance metric at the company level for our annual executive incentive plan for 2022.


STATEMENT OF FINANCIAL POSITION (UNAUDITED)
(In millions, except share amounts)	March 31, 2022		December 31, 2021


Cash, cash equivalents and restricted cash(a)	$	12,842	$	15,770
Investment securities (Note 3)	10,779		12,297
Current receivables (Note 4)	16,050		15,620

Inventories, including deferred inventory costs (Note 5)	16,570		15,847


Current contract assets (Note 9)	4,246		4,881
All other current assets (Note 10)	2,065		1,933
Assets of businesses held for sale (Note 2)	747		—
Current assets	63,299		66,348

Investment securities (Note 3)	39,845		42,209


Property, plant and equipment – net (Note 6)	15,036		15,609

Goodwill (Note 7)	26,047		26,182
Other intangible assets – net (Note 7)	8,290		9,330
Contract and other deferred assets (Note 9)	6,159		6,124
All other assets (Note 10)	19,767		19,040
Deferred income taxes (Note 15)	10,583		10,855
Assets of discontinued operations (Note 2)	2,935		3,177
Total assets	$	191,961	$	198,874

Short-term borrowings (Note 11)	$	4,985	$	4,361

Accounts payable and equipment project accruals	16,206		16,243
Progress collections and deferred income (Note 9)	16,206		17,372
All other current liabilities (Note 14)	14,216		13,977
Liabilities of businesses held for sale (Note 2)	1,732		—
Current liabilities	53,344		51,953

Deferred income (Note 9)	1,953		1,989
Long-term borrowings (Note 11)	28,649		30,824

Insurance liabilities and annuity benefits (Note 12)	33,626		37,166
Non-current compensation and benefits	20,636		21,202
All other liabilities (Note 14)	12,477		13,240
Liabilities of discontinued operations (Note 2)	993		887
Total liabilities	151,678		157,262

Preferred stock (5,939,875 shares outstanding at both March 31, 2022 and December 31, 2021)	6		6
Common stock (1,100,664,978 and 1,099,027,213 shares outstanding at March 31, 2022 and December 31, 2021, respectively)	15		15
Accumulated other comprehensive income (loss) – net attributable to GE	1,341		1,582
Other capital	34,391		34,691
Retained earnings	83,927		85,110
Less common stock held in treasury	(80,673)		(81,093)
Total GE shareholders’ equity	39,005		40,310
Noncontrolling interests (Note 16)	1,278		1,302
Total equity	40,283		41,612
Total liabilities and equity	$	191,961	$	198,874


RESULTS OF DISCONTINUED OPERATIONS	Three months ended March 31
	2022		2021
Operations

Cost of equipment and services sold	$	—	$	(368)
Other income, costs and expenses	(250)		247

Earnings (loss) of discontinued operations before income taxes	$	(250)	$	(121)
Benefit (provision) for income taxes	(18)		(29)
Earnings (loss) of discontinued operations, net of taxes(a)	$	(268)	$	(149)

Disposal
Gain (loss) on disposal before income taxes	$	(23)	$	(2,702)
Benefit (provision) for income taxes	5		(43)
Gain (loss) on disposal, net of taxes	$	(18)	$	(2,745)

Earnings (loss) from discontinued operations, net of taxes	$	(286)	$	(2,894)


	2023						2022
RESULTS OF DISCONTINUED OPERATIONS Three months ended March 31	GE HealthCare		Bank BPH & Other		Total			GE HealthCare		Bank BPH & Other		Total
Total revenues	$	—	$	—	$	—		$	4,361	$	—	$	4,361
Cost of equipment and services sold	—		—		—			(2,679)		—		(2,679)
Other income, costs and expenses	(20)		(201)		(221)			(1,146)		(250)		(1,396)

Earnings (loss) of discontinued operations before income taxes	(20)		(201)		(221)			536		(250)		286
Benefit (provision) for income taxes(a)	1,479		(1)		1,478			(150)		(18)		(167)
Earnings (loss) of discontinued operations, net of taxes	1,459		(202)		1,257			387		(268)		119

Gain (loss) on disposal before income taxes	—		—		—			—		(23)		(23)
Benefit (provision) for income taxes	—		—		—			—		5		5
Gain (loss) on disposal, net of taxes	—		—		—			—		(18)		(18)

Earnings (loss) from discontinued operations, net of taxes	$	1,459	$	(202)	$	1,257		$	387	$	(286)	$	101


ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS	ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS	March 31, 2022		December 31, 2021		ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS	March 31, 2023		December 31, 2022
Cash, cash equivalents and restricted cash	Cash, cash equivalents and restricted cash	$	688	$	736	Cash, cash equivalents and restricted cash	$	1,180	$	2,627
Financing receivables held for sale (Polish mortgage portfolio)		1,592		1,799
Current receivables						Current receivables	13		3,361
Inventories, including deferred inventory costs						Inventories, including deferred inventory costs	—		2,512
Goodwill						Goodwill	—		12,799
Other intangible assets - net						Other intangible assets - net	—		1,520
Contract and other deferred assets						Contract and other deferred assets	—		854
Financing receivables held for sale (Polish mortgage portfolio)(a)						Financing receivables held for sale (Polish mortgage portfolio)(a)	1,126		1,200
Property, plant, and equipment - net	Property, plant, and equipment - net	84		88		Property, plant, and equipment - net	69		2,379
All other assets	All other assets	571		554		All other assets	344		2,109
Assets of discontinued operations		$	2,935	$	3,177
Deferred income taxes						Deferred income taxes	62		2,528
Assets of discontinued operations(b)						Assets of discontinued operations(b)	$	2,793	$	31,890

Accounts payable and all other liabilities		$	993	$	887
Liabilities of discontinued operations		$	993	$	887
Accounts payable and equipment project payables						Accounts payable and equipment project payables	$	102	$	3,487
Progress collections and deferred income						Progress collections and deferred income	—		2,499
Long-term borrowings						Long-term borrowings	—		8,273
Non-current compensation and benefits						Non-current compensation and benefits	36		5,658
All other liabilities(a)						All other liabilities(a)	1,413		4,556
Liabilities of discontinued operations(b)						Liabilities of discontinued operations(b)	$	1,551	$	24,474


		Amortized cost		Estimated fair value			Amortized cost		Estimated fair value
Within one year	Within one year	$	827	$	832	Within one year	$	1,057	$	1,052
After one year through five years	After one year through five years	3,856		4,006		After one year through five years	4,762		4,753
After five years through ten years	After five years through ten years	6,323		6,853		After five years through ten years	5,726		5,793
After ten years	After ten years	21,631		23,763		After ten years	23,323		22,052


	2022		2021
	Third Parties		WCS		Third Parties
Balance at January 1	$	161	$	3,618	$	2,992
GE businesses sales to WCS	—		7,044		—
GE businesses sales to third parties(a)	351		—		124
WCS sales to third parties	—		(3,826)		3,826
Collections and other	(367)		(3,765)		(4,360)
Reclassification from long-term customer receivables	36		63		—
Balance at March 31	$	181	$	3,134	$	2,582


LONG-TERM RECEIVABLES	LONG-TERM RECEIVABLES	March 31, 2022		December 31, 2021		LONG-TERM RECEIVABLES	March 31, 2023		December 31, 2022

Long-term customer receivables(a)	Long-term customer receivables(a)	$	433	$	521	Long-term customer receivables(a)	$	448	$	457
Financing receivables		559		592
Supplier advances	Supplier advances	289		309		Supplier advances	279		266
Non-income based tax receivables	Non-income based tax receivables	272		245		Non-income based tax receivables	236		213
Receivables from disposed businesses		150		150
Financing receivables						Financing receivables	147		82
Sundry receivables	Sundry receivables	441		440		Sundry receivables	429		400

Allowance for credit losses	Allowance for credit losses	(172)		(160)		Allowance for credit losses	(182)		(183)
Total long-term receivables	Total long-term receivables	$	1,973	$	2,097	Total long-term receivables	$	1,358	$	1,236


December 31, 2021
Progress collections on equipment contracts	$	142	$	—	$	1,843	$	5,198	$	—	$	7,183
Other progress collections	4,469		522		2,866		385		111		8,354

Current deferred income	170		1,336		198		33		99		1,835
Progress collections and deferred income	$	4,782	$	1,858	$	4,907	$	5,615	$	210	$	17,372
Non-current deferred income	1,090		592		194		110		3		1,989
Total Progress collections and deferred income	$	5,871	$	2,450	$	5,101	$	5,725	$	213	$	19,361


	March 31, 2023		December 31, 2022
Trade payables	$	10,049	$	10,033
Supply chain finance programs	3,454		3,689
Equipment project payables(a)	1,109		1,236
Non-income based tax payables	451		441
Accounts payable and equipment project payables	$	15,063	$	15,399


March 31, 2022	Long-term care		Structured settlement annuities & life		Other contracts		Other adjustments(a)		Total
Future policy benefit reserves	$	17,112	$	8,811	$	191	$	—	$	26,114
Claim reserves	4,526		267		551		—		5,344
Investment contracts	—		933		950		—		1,883
Unearned premiums and other	12		187		86		—		285


Total	$	21,650	$	10,198	$	1,778	$	—	$	33,626


December 31, 2021
Future policy benefit reserves	$	17,097	$	8,902	$	188	$	3,394	$	29,581
Claim reserves	4,546		258		585		—		5,389
Investment contracts	—		955		954		—		1,909
Unearned premiums and other	15		184		89		—		287


Total	$	21,658	$	10,299	$	1,815	$	3,394	$	37,166


December 31, 2022
Future policy benefit reserves	$	24,256	$	8,860	$	1,040	$	437	$	34,593
Investment contracts	—		860		—		849		1,708
Other	—		—		178		365		544


Total	$	24,256	$	9,720	$	1,218	$	1,651	$	36,845


	March 31, 2023						March 31, 2022
Present value of expected net premiums	Long-term care		Structured settlement annuities		Life			Long-term care		Structured settlement annuities		Life
Balance, beginning of year	$	4,059	$	—	$	4,828		$	5,652	$	—	$	6,622
Beginning balance at locked-in discount rate	3,958		—		5,210			4,451		—		5,443
Effect of changes in cash flow assumptions	—		—		—			—		—		—
Effect of actual variances from expected experience	29		—		(35)			(130)		—		2
Adjusted beginning of year balance	3,987		—		5,175			4,321		—		5,445
Interest accrual	53		—		50			59		—		52
Net premiums collected	(103)		—		(73)			(113)		—		(83)
Effect of foreign currency	—		—		(23)			—		—		73
Ending balance at locked-in discount rate	3,937		—		5,129			4,267		—		5,487
Effect of changes in discount rate assumptions	281		—		(149)			696		—		396
Balance, end of year	$	4,217	$	—	$	4,979		$	4,963	$	—	$	5,883

Present value of expected future policy benefits
Balance, beginning of year	$	28,316	$	8,860	$	5,868		$	40,296	$	12,328	$	7,923
Beginning balance at locked-in discount rate	27,026		8,790		6,247			27,465		9,024		6,560
Effect of changes in cash flow assumptions	(11)		—		—			—		—		—
Effect of actual variances from expected experience	30		(1)		2			(130)		(3)		19
Adjusted beginning of year balance	27,046		8,789		6,250			27,335		9,021		6,579
Interest accrual	363		115		60			365		119		62
Benefit payments	(309)		(174)		(138)			(274)		(162)		(148)
Effect of foreign currency	—		—		(24)			—		—		77
Ending balance at locked-in discount rate	27,100		8,730		6,148			27,425		8,978		6,570
Effect of changes in discount rate assumptions	3,171		619		(123)			7,852		1,870		488
Balance, end of year	$	30,271	$	9,349	$	6,025		$	35,277	$	10,848	$	7,058
Net future policy benefit reserves	$	26,054	$	9,349	$	1,045		$	30,314	$	10,848	$	1,175
Less: Reinsurance recoverables, net of allowance for credit losses	(204)		—		(57)			(5,154)		—		(81)
Net future policy benefit reserves, after reinsurance recoverables	$	25,850	$	9,349	$	988		$	25,160	$	10,848	$	1,094


FAIR VALUE OF DERIVATIVES	FAIR VALUE OF DERIVATIVES	March 31, 2022						December 31, 2021						FAIR VALUE OF DERIVATIVES	March 31, 2023						December 31, 2022
		Gross Notional		All other assets		All other liabilities		Gross Notional		All other assets		All other liabilities			Gross Notional		All other assets		All other liabilities		Gross Notional		All other assets		All other liabilities
Interest rate contracts		$	1,473	$	47	$	3	$	2,071	$	75	$	4
Currency exchange contracts	Currency exchange contracts	6,420		139		192		7,214		114		122		Currency exchange contracts	$	4,648	$	138	$	100	$	5,112	$	132	$	146

Derivatives accounted for as hedges	Derivatives accounted for as hedges	$	7,893	$	186	$	195	$	9,285	$	188	$	126	Derivatives accounted for as hedges	$	4,648	$	138	$	100	$	5,112	$	132	$	146

Currency exchange contracts														Currency exchange contracts	$	58,595	$	917	$	871	$	51,885	$	946	$	1,082
Interest rate contracts	Interest rate contracts	$	155	$	6	$	—	$	1,369	$	5	$	1	Interest rate contracts	30		—		—		43		—		1
Currency exchange contracts		63,817		1,123		1,236		64,097		794		756
Other contracts	Other contracts	2,239		389		28		1,674		387		10		Other contracts	652		154		9		858		197		13
Derivatives not accounted for as hedges	Derivatives not accounted for as hedges	$	66,211	$	1,518	$	1,264	$	67,140	$	1,186	$	767	Derivatives not accounted for as hedges	$	59,277	$	1,071	$	880	$	52,786	$	1,143	$	1,095

Gross derivatives	Gross derivatives	$	74,104	$	1,704	$	1,459	$	76,425	$	1,374	$	893	Gross derivatives	$	63,925	$	1,208	$	980	$	57,898	$	1,275	$	1,241

Netting and credit adjustments	Netting and credit adjustments			$	(975)	$	(978)			$	(637)	$	(639)	Netting and credit adjustments			$	(756)	$	(755)			$	(821)	$	(820)
Cash collateral adjustments				—		(87)				(54)		(42)

Net derivatives recognized in statement of financial position	Net derivatives recognized in statement of financial position			$	729	$	394			$	684	$	212	Net derivatives recognized in statement of financial position			$	452	$	225			$	454	$	420

Net accrued interest				$	3	$	10			$	10	$	5
Securities held as collateral				(2)		—				(2)		—
Net amount				$	731	$	403			$	691	$	217


	Gain (loss) recognized in AOCI for the three months ended March 31
	2022		2021
Cash flow hedges(a)	$	(5)	$	36
Net investment hedges(b)	112		272


Gain (loss) recognized in AOCI	Three months ended March 31
	2023		2022
Cash flow hedges(a)	$	28	$	(47)
Net investment hedges(b)	(62)		112


								Three months ended March 31, 2023								Three months ended March 31, 2022
		Three months ended March 31, 2022									Three months ended March 31, 2021
		Revenues		Interest Expense		SG&A			Other(a)			Revenues		Interest Expense			SG&A		Other(a)			Revenues		Interest Expense		SG&A		Other(a)		Revenues		Interest Expense		SG&A		Other(a)
		$	17,040	$	406	$	3,651		$	12,526		$	17,071	$	500		$	2,894	$	13,211		$	14,486	$	269	$	2,142	$	16,810	$	12,675	$	387	$	2,725	$	9,823

Effect of cash flow hedges	Effect of cash flow hedges	$	3	$	(7)	$	—		$	(21)		$	7	$	(8)		$	—	$	(32)	Effect of cash flow hedges	$	1	$	(2)	$	—	$	(2)	$	3	$	(7)	$	—	$	(32)

Hedged items	Hedged items			78										1,843							Hedged items											78
Derivatives designated as hedging instruments	Derivatives designated as hedging instruments			(87)										(1,899)							Derivatives designated as hedging instruments											(87)
Effect of fair value hedges	Effect of fair value hedges			$	(9)									$	(56)						Effect of fair value hedges											$	(9)

Interest rate contracts(b)		$	1	0					$	20		$	1	$	(9)		0		$	(1)
Currency exchange contracts	Currency exchange contracts	1		0		(68)			(79)			0		0			59		342		Currency exchange contracts	$	2	$	—	$	76	$	(47)	$	1			$	(68)	$	(81)
Other		0		0		(37)			4			0		0			55		19
Interest rate, commodity and equity contracts(b)																					Interest rate, commodity and equity contracts(b)			—		39		(11)		1				(37)		15
Effect of derivatives not designated as hedges	Effect of derivatives not designated as hedges	$	1	$	—	$	(105)		$	(55)		$	1	$	(9)		$	114	$	359	Effect of derivatives not designated as hedges	$	2	$	—	$	115	$	(58)	$	1	$	—	$	(105)	$	(66)


	Exhibit ~~10(a).~~2. Separation and Distribution Agreement, dated November 7, 2022 by and between General Electric Company and GE HealthCare Technologies Inc. (f/k/a GE Healthcare Holding LLC), as amended (Incorp orated by reference to Exhibit 2.1 to GE's Current Report on Form 8-K, dated Jan uary 4 , 2023 (Commission f ile no. 001-00035)).†
Exhibit 10(a ). Form of Agr eement of Stock Option Gr ants to Executive Officers under the General Electric Company 2022 Long-Term Incentive Plan, as of March 2023.*
Exhibit 10(b ). Form of Agreement for Restricted Stock ~~Option~~ Unit Grants to Executive Officers under the General Electric Company ~~2007~~2022 Long-Term Incentive Plan, as of March 2023.*
Exhibit 10(c ). Form of Agreement for Performance Stock Unit Grants to Execu tive Officers unde r the G eneral Electric Company 2022 Long-Term Incentive Plan, as of March ~~2022.~~2023.*
	~~Exhibit 10(b).~~ ~~Form of Agreement for Restricted Stock Unit Grants to Executive Officers~~ ~~under the~~ ~~General Electric Company 2007 Long-Term Incentive Plan, as of March 2022.~~
	~~Exhibit 10(c).~~ ~~Form of~~ ~~Agreement for Performance Stock Unit Grants to Executive~~ ~~Officers~~ ~~under the General Electric Company 2007 Long-Term Incentive Plan, as of March 202~~2.
	Exhibit 10(d ). ~~Amendment No. 2~~,Tax Matters Agreement, dated as of ~~March 15, 2022, to the Employment Agreement~~January 2, 2023, by and between ~~H. Lawrence Culp, Jr. and~~ General Electric Company ~~dated as of October 1, 2018 (Incorporated~~and GE HealthCare Technologies Inc. (f/k/a GE Healthcare Holding LLC)(Incorporated by reference to Exhibit 10.1 to GE's Current Report on Form 8-K, dated ~~March 17, 2022~~January 4 , 2023 (Commission file ~~number 001-00035~~)no. 001-00035)).†
	Exhibit 11.Computation of Per Share Earnings. Data is provided in Note 1718 of this Report.*
	Exhibit 31(a).Certification Pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as ~~Amended~~Amended.*.
	Exhibit 31(b).Certification Pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as ~~Amended~~Amended.*.
	Exhibit 32.Certification Pursuant to 18 U.S.C. Section ~~1350~~1350.*.
	Exhibit 101. The following materials from General Electric Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, ~~2022,~~2023, formatted in XBRL (eXtensible Business Reporting Language); (i) Statement of Earnings (Loss) for the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, (ii) Statement of Financial Position at March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, (iii) Statement of Cash Flows for the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, (iv) Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, (v) Statement of Changes in Shareholders' Equity for the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, and (vi) Notes to Consolidated Financial Statements.
	Exhibit 104. Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
		*Filed electronically herewith


April ~~26, 2022~~25, 2023						/s/ Thomas S. Timko
Date						Thomas S. Timko Vice President, Chief Accounting Officer and Controller Principal Accounting Officer