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

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

The separation was structured as a tax-free spin-off and was achieved through GE's pro-rata distribution of all of the outstanding shares of GE Vernova to holders of GE common stock. In connection with the separation, the historical results of our Power, Renewable Energy and Digital businesses and certain assets and liabilities included in the separation will be reported in our consolidated financial statements as discontinued operations beginning in the second quarter of 2024. Upon separation, the Company now operates through two reportable segments: Commercial Engines and Services and Defense and Propulsion Technologies. See Note 24 for further information.

Prior to the separation, GE operated worldwide through its three segments,segments; Aerospace, Renewable Energy and Power. Our products include commercial and defense aircraft engines and systems; 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.

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

Continuing earnings (loss) per share was $0.91.$1.38. Excluding the results from our run-off Insurance business,operations, non-operating benefit income, gains (losses) on retainedpurchases and sold ownershipsales of business interests, non-operating benefit costs, Russia and Ukraine charges, separationgains (losses) on equity securities, restructuring costs and restructuringseparation costs, Adjusted earnings per share* was $0.68.$0.82. For the three months ended June 30, 2023,March 31, 2024, profit margin was 8.3%11.6% and profit was up $2.4down $4.6 billion, primarily due to an increasea decrease in gains on retained and sold ownership interests of $1.9$5.3 billion, primarily related to our GE HealthCare Technologies Inc. (GE HealthCare) equity position, and an increase in separation costs of $0.2 billion. These decreases were partially offset by an increase in segment profit of $0.4$0.5 billion, the nonrecurrence of preferred stock dividends of $0.1 billion, an increase in non-operating benefit income of $0.3 billion and a decrease in interest and other financial charges of $0.1 billion. These increases were partially offset by Russia and Ukraine charges of $0.2 billion, an increase in restructuring and other chargesAdjusted total corporate operating profit* of $0.1 billion and an increase in separation costsInsurance profit of $0.1 billion. Adjusted organic profit* increased $0.4$0.6 billion, driven primarily by increases at Aerospaceall segments and Renewable Energy.higher Adjusted total Corporate operating profit*.

Cash flows from operating activities (CFOA) were $0.5$1.0 billion and $(0.4)$0.2 billion for the sixthree months ended June 30,March 31, 2024 and 2023, and 2022, respectively. CFOA increased primarily due to an increase in net income (after adjusting for depreciation of property, plant, and equipment, amortization of intangible assets and non-cash (gains) losses related to our retained and sold ownership interests in GE HealthCare, AerCap and Baker Hughes) and an increase in cash received in working capital, partially offset by a decrease in cash used for working capital, which includes certain separation cash expenditures.All other operating activities. Free cash flows* (FCF) were $0.5$0.9 billion and $(1.0)$0.1 billion for the sixthree months ended June 30,March 31, 2024 and 2023, and 2022, respectively. FCF* increased primarily due to the same reasons as noted for CFOA above, after adjusting for an increase in separation cash expenditures, which are excluded from FCF*.above. See the Capital Resources and Liquidity - Statement of Cash Flows section for further information.

Remaining performance obligation (RPO) includes unfilled customer orders for equipment, excluding any purchase order that provides the customer with the ability to cancel or terminate without incurring a substantive penalty. Services RPO includes the estimated life of contract sales related to long-term service agreements which remain unsatisfied at the end of the reporting period, the estimated amount of unsatisfied performance obligations for time and material agreements, material services agreements, spare parts under purchase order, multi-year maintenance programs and other services agreements, excluding any order that provides the customer with the ability to cancel or terminate without incurring a substantive penalty. See Note 8 for further information.

Excluding the change in Insurance revenues, the net effects of acquisitions, and dispositions and the effects of a weaker U.S. dollar,foreign currency, organic revenues* increased $2.5$1.4 billion (19%(10%), with equipment revenues up $1.5$0.6 billion (28%(11%) and services revenues up $1.1$0.8 billion (13%(10%). Organic revenues* increased at Aerospace, Power and Renewable Energy, partially offset by a decrease at Power.Energy.

We continue to experience inflation pressure in our supply chain, as well as delays in sourcing key materials needed for our products and skilled labor shortages.products. This has delayed our ability to convert RPO to revenue and negatively impacted our profit margins.revenue. While we expect the impact of inflation to continue to be challenging, we have taken and continue to take actions to limit this pressure, including lean initiatives to drive cost productivity, partnering with our suppliers and adjusting the pricing of our products and services. Also, because we operate in many countries around the world, we are subject to complex global geopolitical forces. Due to an expansion of U.S. sanctions related to the ongoing Russia and Ukraine conflict, we recorded a charge of $0.2 billion in the three months ended June 30, 2023, primarily related to our Power segment, and as a result our remaining net asset exposure to Russia is not material.

As it relates to the defense environment, we continue to forecast strong demand creating future growth opportunities for our Defense business (previously referred to as our Military business).opportunities. The U.S. Department of Defense and foreign governments have continued flight operations and have allocated budgets to upgrade and modernize their existing fleets, including support for next generation large-combat engine architecture such as Aerospace’s XA100 program.

We increased our Commercial and Defensetotal engine unit sales in the second quarter of 2023 compared to units in the first quarter of 2024 compared to the first quarter of 2023. GlobalHowever, global material availability and skilled labor shortagessupplier delivery performance continue to cause disruptions for usour suppliers and our suppliersfor us, and have impacted our production and delivery. We continue to partner with our customers on future production rates. We are investing in both our manufacturing facilities and our supply chain to increase production and strengthen quality to better support our customers in the long-term. Aerospace is proactively managing the impact of inflationary pressure by deploying lean initiativesFLIGHT DECK to drive cost productivity, partnering with our suppliers and adjusting the pricing of our products and services. We expect the impact of inflation will continue, and we are taking actions to mitigate the impact.

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

We continue to take actions to serve our customers as demand in the global airline industry increases. OurAerospace has a deep history of innovation and technology leadership and aleadership. Our commercial and defense engine installed base, including units produced by joint ventures, of approximately 67,00070,000 units, with approximately 12,30012,700 units under long-term service agreements, represents strong long-term fundamentals.supports recurring, profitable services growth for the future. We believe these strong fundamentals position Aerospace is well-positioned to drivegenerate long-term profitable growth and higher cash generationflow over time.

Profit increased $0.3$0.2 billion (26%(16%) organically*, primarily due to benefits from higher prices and increased commercial spare part shipments and internal shop visit volume, and higher prices.shipments. These increases in profit were partially offset by an unfavorable change in estimated profitability of our long-term service agreements of $0.2 billion, additional growth investment and inflation in our supply chain, product mix and the nonrecurrence of prior year net favorable changes in estimated profitability of long-term service agreements.

At Onshore Wind, we are focused on improving our overall quality and fleet availability throughavailability. We are reducing product variants and deploying repairs and other corrective measures across the fleet. WeConcurrently, we intend to operate in fewer marketsgeographies and focus on those markets that align better with better pricingour products and margins. Concurrently, wemanufacturing footprint. We are undertaking a restructuring program to reduce our operating costs. Our financial results are dependent on costs to address fleet availability and quality at Onshore Wind and the execution of cost reduction initiatives and pricing actions to mitigate the inflationary environment across all our businesses. Furthermore, we are observingrealizing the favorable impact of IRA benefits that reducethe Inflation Reduction Act of 2022 (IRA) through a reduction in product costs as qualifying turbines manufactured in the U.S. in 2023 are delivered. Approximately halfThe IRA introduces new, and extends existing, tax incentives for at least 10 years and is expected to significantly increase near- and longer-term demand in the United States for onshore and offshore wind projects. More than 70% of Onshore Wind’s equipment RPO is associated with U.S. projects where we expect to receive IRA benefits.benefits as incremental qualifying turbines are delivered. Finally, we are continuing our restructuring program to reduce our operating costs and are seeing the benefits both operationally and financially.

The Offshore Wind industry, where we expect global growth through the coming decades, currently faces challenges as companies attempt to increase output and reduce cost. In our Offshore Wind business, we continue to experience pressure related to our product introductions, suchand project costs as we deliver out the existing backlog. Although we are deploying countermeasures to combat these pressures and are committed to driving productivity and cost improvement for our 3 MW and 5 MW Onshore units, and our 12-14 MW Haliade-X Offshore units, account for a large portion of our RPOnew larger turbines, changes in Onshore and Offshore Wind. Improving onshore fleet availability and reducing the cost of new product platforms and blade technologies remain key priorities. We are also focusedexecution timelines or other adverse developments likely could have an adverse effect on our productioncash collection timelines and supply chain capabilities at Offshore Wind given the complexitycontract profitability, and challenging nature of these large new product introductions and are closely monitoring our initial Haliade-X projects, as further cost and execution challenges could result in future project charges.further losses beyond the amounts that we currently estimate.

Segment losses decreased $0.2 billion (22%(44%) organically*, primarily attributabledue to Onshore Wind through improved pricing manufacturing productivity and the impact of cost reduction initiatives atactivities. Additionally, Grid Solutions profit increased due to higher volume, improved pricing and Onshore Windproductivity.

During the three months ended March 31, 2024, GE gas turbine utilization was up low single digits, with strength in the U.S. from overall demand increase, partially offset by higher losses at Offshore Wind associated with Haliade-X ramplower utilization in Europe due to continued nuclear and hydro recoveries as well as new renewables capacity growth. Global electricity demand was up and project charges.low-single digits.

In the first quarter of 2022, we signed a non-binding memorandum of understanding for GE Steam Power to sell a part of its nuclear activities to ÉlectricitéElectricité 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 expectto sell a portion of our Steam business to EDF. We are working with EDF to complete the sale as soon as possible, subject to regulatory approvals and other customary closing conditions, inconditions. In the second halfquarter 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.

We continue to invest in new product development. In Nuclear, we have signed an agreement with a customer for the deployment of small modular nuclear reactionreactor technology, the first commercial contract in North America, with the potential to enable reductions in nuclear power plant costs and cycle times. In Gas Power, our HA-Turbines have over 1.9 million operating hours. Our fundamentals remain strong with approximately $69.4 billion in RPO, including 25 HA-Turbines, and a gas turbine installed base of approximately 7,000 units, including 85 HA-Turbines, which has nearly doubled since 2019, and approximately 1,700 units under long-term service agreements with an average life of 10 years. We alsowe continue to invest for the long-term, including decarbonization pathways that will provide customers with cleaner, more reliable power. Our fundamentals remain strong with approximately $71.8 billion in RPO and a gas turbine installed base of approximately 7,000 units with approximately 1,700 units under long-term service agreements with an average remaining contract life of approximately 10 years. This includes 29 HA-Turbines in RPO and 94 HA-Turbines in the installed base with over two million operating hours.

Corporate includes the results of the GE Digital business, which is part of GE Vernova, and our remaining financial services business, including our run-off Insurance businessoperations (see Note 13 for further information).

Adjusted total corporate operating costs*profit (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 businessoperations 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.

The provision for income taxes was $0.3 billion for both the three months ended June 30, 2023March 31, 2024 and $0.2 billion for2023. The insignificant change in the three months ended June 30, 2022. The increase in tax provision was primarily due to thean increase in tax effect ofexpense related to the increase in pre-tax income excluding gains (losses)and losses on our retained and sold ownership interests, and an increaseoffset by a decrease in losses in foreign jurisdictions where they are not likely to be utilized.tax expenses associated with separation activities.

For the three months ended June 30, 2023,March 31, 2024, the adjusted income tax rate* was 25.4%24.7% compared to 23.7%28.0% for the three months ended June 30, 2022.March 31, 2023. The adjusted provision (benefit) for income taxes* was $0.3 billion for the three months ended June 30, 2023 and $0.1$0.2 billion for the three months ended June 30, 2022.March 31, 2024 and 2023, respectively. The increase in tax was primarily due to the tax effect of the increase in adjusted earnings before taxes* and an increase in losses in foreign jurisdictions where they are not likely to be utilized.

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 potentiallymay be at least partially offset by a U.S. foreign tax credit. With regards to our announcement to form three public companies, the planning for and execution of the separations has impacted and is expected to continue to impact indefinite reinvestment. The impact of 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 June 30, 2023March 31, 2024 included $1.7$1.5 billion of cash held in countries with currency control restrictions (including a total of $0.1 billion in Russia and Ukraine) and $0.4 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 $0.7$1.4 billion of cash in our run-off Insurance business,operations, which was classified as All other assets in the Statement of Financial Position.

During the first half of 2023, we received total proceeds of $1.9 billion from the sale of AerCap shares. We expect to fully monetize our stake in AerCap over time, in an orderly manner. During the first quarter of 2023, we received proceeds of $0.2 billion 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. During the secondfirst quarter of 2023,2024, we received total proceeds of $2.2$2.6 billion from the disposition of 28.831.1 million shares of GE HealthCare. As of March 31, 2024, our remaining interest in GE HealthCare of 30.5 million shares is subject to a contractual lock-up restriction through May 15, 2024. We intend to exit our remaining stake in GE HealthCare over time, in an orderly manner. See Notes 3 and 19 for further information.

Following approval of a statutory permitted accounting practice in 2018 by our primary insurance regulator, the Kansas Insurance Department (KID), we have since provided a total of $13.2$15.0 billion of capital contributions to our insurance subsidiaries, including the final contribution of $1.8 billion in the first quarter of 2023. We expect to provide the final capital contribution of up to $1.8 billion in the first quarter of 2024, pending completion of our December 31, 2023 statutory reporting process.2024. See Note 13 for further information.

On March 6, 2022, the Board of Directors authorized theto repurchase of up to $3$3.0 billion of our common stock. In connection with this authorization, we repurchased 6.21.1 million shares for $0.6$0.1 billion during the six months ended June 30, 2023. Additionally, during the first quarter of 2023, we elected2024 and 24.9 million shares for $2.2 billion life to redeem 3 milliondate. On March 7, 2024, the Company announced that the Board of Directors had authorized the repurchase of up to $15.0 billion of our common stock, which replaces the Company's prior $3.0 billion share repurchase authorization.

On April 5, 2024, the Board of Directors declared a $0.28 per share dividend on the outstanding sharescommon stock of GE series D preferred stock for total cash spendthe Company, payable on April 25, 2024, to shareholders of $3.0 billion. On July 25, 2023, we announced our intention to redeem the remaining 2.8 million outstanding sharesrecord at close of GE preferred stockbusiness on SeptemberApril 15, 2023 for expected total cash spend of approximately $2.8 billion.2024.

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. Prior to the spin-off of GE Vernova, rating agencies have reviewed our ratings. As a result, Moody's changed its outlook from stable to positive. Fitch changed its long term rating from BBB to BBB+. 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 our Annual Report on Form 10-K for the year ended December 31, 2022.Factors.

Substantially all of the Company's debt agreements in place at June 30, 2023March 31, 2024 do not contain material credit rating covenants. Our unused back-up revolving syndicated credit facility and certain of our bilateral revolving credit facilities containcontains a customary net debt-to-EBITDA financial covenant, which we satisfied at June 30, 2023.March 31, 2024.

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.

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.

The net increase in cash impactsreceived from changes in working capital of $0.6 billion compared to prior year were as follows: current receivables of $1.2$(0.3) billion, driven by higher collections,volume partially offset by higher volume;collections; inventories, including deferred inventory, of $0.1 billion, driven by higher liquidationslower material purchases partially offset by higher material purchases;lower liquidations; current contract assets of $0.3$(0.4) billion, driven by higher revenue recognition partially offset by higher billings on our long-term equipment contracts and long-term service agreements partially offset by higher revenue recognition on those agreements;and net unfavorable changes in estimated profitability; accounts payable and equipment project payables of $(1.1)$0.3 billion driven by higher disbursements related to purchases of materials in prior periodsvolume partially offset by higher volume; anddisbursements; progress collections and current deferred income of less than $0.1$0.9 billion driven by higher collections partially offset by higher liquidations.collections.