COVER
COVER - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 17, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-41966 | |
Entity Registrant Name | GE Vernova Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 92-2646542 | |
Entity Address, Address Line One | 58 Charles Street, | |
Entity Address, City or Town | Cambridge, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02141 | |
City Area Code | 617 | |
Local Phone Number | 674-7555 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | GEV | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 274,802,034 | |
Amendment Flag | false | |
Entity Central Index Key | 0001996810 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 |
CONSOLIDATED AND COMBINED STATE
CONSOLIDATED AND COMBINED STATEMENT OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Sales | $ 8,204 | $ 8,119 | $ 15,463 | $ 14,941 |
Cost of sales | 6,502 | 6,973 | 12,611 | 12,876 |
Gross profit | 1,702 | 1,147 | 2,852 | 2,065 |
Selling, general, and administrative expenses | 938 | 1,272 | 2,140 | 2,458 |
Research and development expenses | 237 | 216 | 474 | 418 |
Operating income (loss) | 527 | (341) | 238 | (811) |
Interest and other financial charges – net | 60 | (21) | 46 | (42) |
Non-operating benefit income | 134 | 143 | 269 | 282 |
Other income (expense) – net (Note 19) | 881 | 193 | 954 | 129 |
Income (loss) before income taxes | 1,602 | (27) | 1,507 | (442) |
Provision (benefit) for income taxes (Note 15) | 322 | 122 | 333 | 53 |
Net income (loss) | 1,280 | (149) | 1,174 | (495) |
Net loss (income) attributable to noncontrolling interests | 14 | (2) | (10) | 30 |
Net income (loss) attributable to GE Vernova | $ 1,294 | $ (150) | $ 1,164 | $ (465) |
Earnings (loss) per share attributable to GE Vernova (Note 18): | ||||
Basic (in dollars per share) | $ 4.72 | $ (0.55) | $ 4.25 | $ (1.70) |
Diluted (in dollars per share) | $ 4.65 | $ (0.55) | $ 4.22 | $ (1.70) |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 274 | 274 | 274 | 274 |
Diluted (in shares) | 278 | 274 | 276 | 274 |
Equipment | ||||
Sales | $ 4,194 | $ 4,388 | $ 7,811 | $ 7,877 |
Cost of sales | 3,853 | 4,621 | 7,545 | 8,196 |
Services | ||||
Sales | 4,010 | 3,732 | 7,652 | 7,065 |
Cost of sales | $ 2,649 | $ 2,352 | $ 5,066 | $ 4,680 |
CONSOLIDATED AND COMBINED STA_2
CONSOLIDATED AND COMBINED STATEMENT OF FINANCIAL POSITION (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Cash, cash equivalents, and restricted cash | $ 5,779 | $ 1,551 |
Inventories, including deferred inventory costs (Note 5) | 9,346 | 8,253 |
Current contract assets (Note 9) | 8,702 | 8,339 |
All other current assets (Note 10) | 463 | 352 |
Assets of business held for sale (Note 3) | 0 | 1,444 |
Current assets | 30,722 | 27,428 |
Property, plant, and equipment – net (Note 6) | 5,168 | 5,228 |
Goodwill (Note 8) | 4,354 | 4,437 |
Intangible assets – net (Note 8) | 925 | 1,042 |
Contract and other deferred assets (Note 9) | 614 | 621 |
Equity method investments (Note 11) | 2,405 | 3,555 |
Deferred income taxes (Note 15) | 1,383 | 1,582 |
All other assets (Note 10) | 2,480 | 2,228 |
Total assets | 48,052 | 46,121 |
Contract liabilities and deferred income (Note 9) | 16,536 | 15,074 |
All other current liabilities (Note 14) | 4,644 | 4,352 |
Liabilities of business held for sale (Note 3) | 0 | 1,448 |
Current liabilities | 29,065 | 29,306 |
Deferred income taxes (Note 15) | 674 | 382 |
Non-current compensation and benefits | 3,224 | 3,273 |
All other liabilities (Note 14) | 5,040 | 4,780 |
Total liabilities | 38,003 | 37,741 |
Commitments and contingencies (Note 22) | ||
Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 274,701,743 shares issued and outstanding as of June 30, 2024 | 3 | 0 |
Additional paid-in capital | 8,801 | 0 |
Retained earnings | 1,294 | 0 |
Net parent investment | 0 | 8,051 |
Accumulated other comprehensive income (loss) – net attributable to GE Vernova (Note 16) | (1,031) | (635) |
Total equity attributable to GE Vernova | 9,067 | 7,416 |
Noncontrolling interests | 982 | 964 |
Total equity | 10,049 | 8,380 |
Total liabilities and equity | 48,052 | 46,121 |
Nonrelated party | ||
Current receivables - net | 6,419 | 7,409 |
Accounts payable and equipment project payables | 7,841 | 7,900 |
Related party | ||
Current receivables - net | 12 | 80 |
Accounts payable and equipment project payables | $ 44 | $ 532 |
CONSOLIDATED AND COMBINED STA_3
CONSOLIDATED AND COMBINED STATEMENT OF FINANCIAL POSITION (UNAUDITED) (Parenthetical) | Jun. 30, 2024 $ / shares shares |
Statement of Financial Position [Abstract] | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 |
Common stock, shares issued (in shares) | 274,701,743 |
Common stock, shares outstanding (in shares) | 274,701,743 |
CONSOLIDATED AND COMBINED STA_4
CONSOLIDATED AND COMBINED STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows – operating activities | ||
Net income (loss) | $ 1,174 | $ (495) |
Adjustments to reconcile net income (loss) to cash from (used for) operating activities | ||
Depreciation and amortization of property, plant, and equipment (Note 6) | 379 | 347 |
Amortization of intangible assets (Note 8) | 126 | 123 |
(Gains) losses on purchases and sales of business interests | (851) | (95) |
Principal pension plans – net (Note 13) | (186) | (202) |
Other postretirement benefit plans – net (Note 13) | (121) | (163) |
Provision (benefit) for income taxes (Note 15) | 333 | 53 |
Cash recovered (paid) during the year for income taxes | (173) | (12) |
Changes in operating working capital: | ||
Decrease (increase) in current receivables | 683 | 282 |
Decrease (increase) in due from related parties | (6) | (1) |
Decrease (increase) in inventories, including deferred inventory costs | (1,288) | (1,165) |
Decrease (increase) in current contract assets | (408) | (5) |
Increase (decrease) in accounts payable and equipment project payables | 94 | (86) |
Increase (decrease) in due to related parties | (384) | 54 |
Increase (decrease) in contract liabilities and current deferred income | 1,596 | 788 |
All other operating activities | (430) | (401) |
Cash from (used for) operating activities | 535 | (978) |
Cash flows – investing activities | ||
Additions to property, plant, and equipment and internal-use software | (374) | (283) |
Dispositions of property, plant, and equipment | 13 | 44 |
Purchases of and contributions to equity method investments | (108) | (40) |
Sales of and distributions from equity method investments | 31 | 33 |
Proceeds from principal business dispositions | 639 | 0 |
All other investing activities | 51 | (196) |
Cash from (used for) investing activities | 252 | (441) |
Cash flows – financing activities | ||
Net increase (decrease) in borrowings of maturities of 90 days or less | (23) | 29 |
Transfers from (to) Parent | 2,964 | 959 |
All other financing activities | (36) | (46) |
Cash from (used for) financing activities | 2,904 | 942 |
Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash | (66) | 9 |
Increase (decrease) in cash, cash equivalents, and restricted cash, including cash classified within businesses held for sale | 3,625 | (468) |
Less: Net increase (decrease) in cash classified within businesses held for sale | (603) | (21) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 4,228 | (447) |
Cash, cash equivalents, and restricted cash at beginning of year | 1,551 | 2,067 |
Cash, cash equivalents, and restricted cash as of June 30 | $ 5,779 | $ 1,620 |
CONSOLIDATED AND COMBINED STA_5
CONSOLIDATED AND COMBINED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) attributable to GE Vernova | $ 1,294 | $ (150) | $ 1,164 | $ (465) |
Net loss (income) attributable to noncontrolling interests | 14 | (2) | (10) | 30 |
Net income (loss) | 1,280 | (149) | 1,174 | (495) |
Other comprehensive income (loss): | ||||
Currency translation adjustments – net of taxes | (117) | 59 | (106) | 122 |
Benefit plans – net of taxes | (271) | (84) | (340) | 1,575 |
Cash flow hedges – net of taxes | 43 | 2 | 51 | 19 |
Other comprehensive income (loss) | (346) | (23) | (395) | 1,715 |
Comprehensive income (loss) | 934 | (171) | 779 | 1,220 |
Comprehensive loss (income) attributable to noncontrolling interests | (4) | 0 | (11) | 34 |
Comprehensive income (loss) attributable to GE Vernova | $ 930 | $ (172) | $ 767 | $ 1,255 |
CONSOLIDATED AND COMBINED STA_6
CONSOLIDATED AND COMBINED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Retained earnings, excluding net parent investment | Net parent investment | Accumulated other comprehensive income (loss) – net | Equity attributable to noncontrolling interests |
Beginning balance (in shares) at Dec. 31, 2022 | 0 | |||||||
Beginning balance at Dec. 31, 2022 | $ 11,607 | $ 0 | $ 0 | $ 0 | $ 12,106 | $ (1,456) | $ 957 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (495) | (465) | (30) | |||||
Currency translation adjustments – net of taxes | 122 | 124 | (2) | |||||
Benefit plans – net of taxes | 1,575 | 1,577 | (2) | |||||
Cash flow hedges – net of taxes | 19 | 19 | ||||||
Transfers from (to) Parent | (2,030) | (2,030) | ||||||
Changes in equity attributable to noncontrolling interests | 4 | 4 | ||||||
Ending balance (in shares) at Jun. 30, 2023 | 0 | |||||||
Ending balance at Jun. 30, 2023 | 10,802 | $ 0 | 0 | 0 | 9,611 | 264 | 927 | |
Beginning balance (in shares) at Mar. 31, 2023 | 0 | |||||||
Beginning balance at Mar. 31, 2023 | 10,412 | $ 0 | 0 | 0 | 9,199 | 285 | 928 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (149) | (150) | 2 | |||||
Currency translation adjustments – net of taxes | 59 | 61 | (2) | |||||
Benefit plans – net of taxes | (84) | (84) | ||||||
Cash flow hedges – net of taxes | 2 | 2 | ||||||
Transfers from (to) Parent | 562 | 562 | ||||||
Changes in equity attributable to noncontrolling interests | (1) | (1) | ||||||
Ending balance (in shares) at Jun. 30, 2023 | 0 | |||||||
Ending balance at Jun. 30, 2023 | 10,802 | $ 0 | 0 | 0 | 9,611 | 264 | 927 | |
Beginning balance (in shares) at Dec. 31, 2023 | 0 | |||||||
Beginning balance at Dec. 31, 2023 | 8,380 | $ 0 | 0 | 0 | 8,051 | (635) | 964 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Transfers from (to) Parent, including Spin-Off-related adjustments | 794 | 794 | ||||||
Issuance of common stock in connection with the Spin-Off and reclassification of net parent investment (in shares) | 274,000,000 | |||||||
Issuance of common stock in connection with the Spin-Off and reclassification of net parent investment | 0 | $ 3 | 8,712 | (8,715) | ||||
Issuance of common stock in connection with employee stock plans (in shares) | 1,000,000 | |||||||
Issuance of common stock in connection with employee stock plans | 35 | 35 | ||||||
Share-based compensation expense | 54 | 54 | ||||||
Net income (loss) | 1,174 | $ 1,294 | (130) | 10 | ||||
Currency translation adjustments – net of taxes | (106) | (106) | ||||||
Benefit plans – net of taxes | (340) | (341) | 1 | |||||
Cash flow hedges – net of taxes | 51 | 51 | ||||||
Changes in equity attributable to noncontrolling interests | $ 7 | 7 | ||||||
Ending balance (in shares) at Jun. 30, 2024 | 274,701,743 | 275,000,000 | ||||||
Ending balance at Jun. 30, 2024 | $ 10,049 | $ 3 | 8,801 | 1,294 | 0 | (1,031) | 982 | |
Beginning balance (in shares) at Mar. 31, 2024 | 0 | |||||||
Beginning balance at Mar. 31, 2024 | 9,980 | $ 0 | 0 | 0 | 9,659 | (686) | 1,007 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Transfers from (to) Parent, including Spin-Off-related adjustments | (944) | (944) | ||||||
Issuance of common stock in connection with the Spin-Off and reclassification of net parent investment (in shares) | 274,000,000 | |||||||
Issuance of common stock in connection with the Spin-Off and reclassification of net parent investment | 0 | $ 3 | 8,712 | (8,715) | ||||
Issuance of common stock in connection with employee stock plans (in shares) | 1,000,000 | |||||||
Issuance of common stock in connection with employee stock plans | 35 | 35 | ||||||
Share-based compensation expense | 54 | 54 | ||||||
Net income (loss) | 1,280 | 1,294 | (14) | |||||
Currency translation adjustments – net of taxes | (117) | (117) | (1) | |||||
Benefit plans – net of taxes | (271) | (271) | ||||||
Cash flow hedges – net of taxes | 43 | 43 | ||||||
Changes in equity attributable to noncontrolling interests | $ (10) | (10) | ||||||
Ending balance (in shares) at Jun. 30, 2024 | 274,701,743 | 275,000,000 | ||||||
Ending balance at Jun. 30, 2024 | $ 10,049 | $ 3 | $ 8,801 | $ 1,294 | $ 0 | $ (1,031) | $ 982 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Organization. On April 2, 2024 (the Distribution Date), General Electric Company, which now operates as GE Aerospace (GE or Parent) completed the previously announced spin-off (the Spin-Off) of GE Vernova (the Company, GE Vernova, our, we, or us). The Spin-Off was completed through a distribution of all the Company's outstanding common stock to holders of record of GE's common stock as of the close of business on March 19, 2024 (the Distribution), which resulted in the issuance of approximately 274 million shares of common stock. As a result of the Distribution, the Company became an independent public company. Our common stock is listed under the symbol “GEV” on the New York Stock Exchange. In connection with the Spin-Off, GE contributed cash of $515 million to GE Vernova to fund future operations and transferred restricted cash of $325 million to us such that the Company’s cash balance upon completion of the Spin-Off was approximately $4,200 million. See Note 22 for further information. In connection with the Spin-Off, GE Vernova entered into several agreements with GE, including a separation and distribution agreement that sets forth certain agreements with GE regarding the principal actions to be taken in connection with the Spin-Off, including the transfer of assets and assumption of liabilities, and establishes certain rights and obligations between the Company and GE, including procedures with respect to claims subject to indemnification and related matters. Other agreements we entered into that govern aspects of our relationship with GE following the Spin-Off include: • Transition Services Agreement – governs all matters relating to the provision of services between the Company and GE on a transitional basis. The services the Company receives include support for digital technology, human resources, supply chain, finance, and real estate services, among others, that are generally intended to be provided for a period no longer than two years following the Spin-Off. • Tax Matters Agreement – governs the respective rights, responsibilities, and obligations between the Company and GE with respect to all tax matters (excluding employee-related taxes covered under the Employee Matters Agreement), in addition to certain restrictions which generally prohibit us from taking or failing to take any action in the two-year period following the Distribution that would prevent the Distribution from qualifying as tax-free for U.S. federal income tax purposes, including limitations on our ability to pursue certain strategic transactions. The agreement specifies the portion of tax liability for which the Company will bear contractual responsibility, and the Company and GE will each agree to indemnify each other against any amounts for which such indemnified party is not responsible. • Certain other agreements related to employee matters, trademark license, intellectual property, real estate matters, and framework investments. Unless the context otherwise requires, references to the Company, GE Vernova, our, we, and us, refer to (i) GE’s renewable energy, power, and digital businesses prior to the Spin-Off and (ii) GE Vernova Inc. and its subsidiaries following the Spin-Off. Basis of Presentation . For periods prior to the Spin-Off, the unaudited combined financial statements were derived from the consolidated financial statements and accounting records of GE, including the historical cost basis of assets and liabilities comprising the Company, as well as the historical revenues, direct costs, and allocations of indirect costs attributable to the operations of the Company, using the historical accounting policies applied by GE. The unaudited combined financial statements do not purport to reflect what the results of operations, comprehensive income, financial position, or cash flows would have been had the Company operated as a separate, stand-alone entity during the periods prior to the Spin-Off. We have prepared the accompanying unaudited consolidated and combined financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) applicable to interim financial statements. Accordingly, certain information related to our significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted. These unaudited consolidated and combined financial statements reflect, in the opinion of management, all material adjustments (which include only normally recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations, and cash flows for the periods presented. These unaudited consolidated and combined financial statements should be read in conjunction with our audited combined financial statements, corresponding notes, and significant accounting policies for the year ended December 31, 2023, included in our information statement dated March 8, 2024, which was furnished as Exhibit 99.1 to a Current Report on Form 8-K furnished with the SEC on March 8, 2024 (the Information Statement). The information presented in tables throughout the footnotes is presented in millions of U.S. dollars unless otherwise stated. Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions. All intercompany balances and transactions within the Company have been eliminated in the consolidated and combined financial statements. As described in Note 24, transactions between the Company and GE have been included in these consolidated and combined financial statements. Certain financing transactions with GE are deemed to have been settled immediately through Net parent investment in the Consolidated and Combined Statement of Financial Position and are accounted for as a financing activity in the Consolidated and Combined Statement of Cash Flows as Transfers from (to) Parent. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Estimates and Assumptions. The preparation of the consolidated and combined financial statements in conformity with U.S. GAAP requires management 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 the consolidated and combined financial statements. We believe these assumptions to be reasonable under the circumstances, and 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. |
DISPOSITIONS AND BUSINESSES HEL
DISPOSITIONS AND BUSINESSES HELD FOR SALE | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISPOSITIONS AND BUSINESSES HELD FOR SALE | DISPOSITIONS AND BUSINESSES HELD FOR SALE . During the second quarter of 2024, our Steam Power business completed the sale of part of its nuclear activities to Electricité de France S.A. (EDF). In connection with the disposition, we received net cash proceeds of $639 million, subject to customary working capital and other post-close adjustments. As a result, we recognized a pre-tax gain of $853 million (after-tax gain of $845 million), recorded in Other income (expense) – net in our Consolidated and Combined Statement of Income (Loss). See Notes 15, 16 and 19 for further information. The major components of assets and liabilities of the business held for sale in the Company’s Consolidated and Combined Statement of Financial Position are summarized as follows: ASSETS AND LIABILITIES OF BUSINESS HELD FOR SALE June 30, 2024 December 31, 2023 Cash and cash equivalents $ — $ 603 Current receivables, inventories, and contract assets — 551 Property, plant, and equipment and intangibles – net — 237 Other assets — 53 Assets of business held for sale $ — $ 1,444 Contract liabilities and deferred income $ — $ 1,001 Accounts payable and equipment project payables — 177 Other liabilities — 270 Liabilities of business held for sale $ — $ 1,448 |
CURRENT AND LONG-TERM RECEIVABL
CURRENT AND LONG-TERM RECEIVABLES | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
CURRENT AND LONG-TERM RECEIVABLES | CURRENT AND LONG-TERM RECEIVABLES CURRENT RECEIVABLES – NET June 30, 2024 December 31, 2023 Customer receivables $ 5,021 $ 5,952 Non-income based tax receivables 1,071 1,048 Supplier advances and other receivables 853 924 Other receivables $ 1,923 $ 1,972 Allowance for credit losses (525) (515) Total current receivables – net $ 6,419 $ 7,409 Activity in the allowance for credit losses related to current receivables for the six months ended June 30, 2024 and 2023 consists of the following: ALLOWANCE FOR CREDIT LOSSES 2024 2023 Balance as of January 1 $ 515 $ 674 Net additions (releases) charged to costs and expenses 19 (2) Write-offs, net (9) (54) Foreign exchange and other 1 10 Balance as of June 30 $ 525 $ 628 Sales of customer receivables. 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. The Company sold current customer receivables to third parties and subsequently collected $550 million and $501 million in the six months ended June 30, 2024 and 2023, respectively. Within these programs, primarily related to our participation in customer-sponsored supply chain finance programs in Wind, 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 six months ended June 30, 2023 was $77 million in our Gas Power business within our Power segment, primarily for risk mitigation purposes. LONG-TERM RECEIVABLES June 30, 2024 December 31, 2023 Long-term customer receivables $ 284 $ 316 Supplier advances 225 243 Non-income based tax receivables 107 136 Other receivables 276 190 Allowance for credit losses (177) (184) Total long-term receivables – net $ 715 $ 701 |
INVENTORIES, INCLUDING DEFERRED
INVENTORIES, INCLUDING DEFERRED INVENTORY COSTS | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, INCLUDING DEFERRED INVENTORY COSTS | INVENTORIES, INCLUDING DEFERRED INVENTORY COSTS June 30, 2024 December 31, 2023 Raw materials and work in process $ 5,300 $ 4,685 Finished goods 2,809 2,514 Deferred inventory costs(a) 1,237 1,054 Inventories, including deferred inventory costs $ 9,346 $ 8,253 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT, AND EQUIPMENT June 30, 2024 December 31, 2023 Original cost $ 12,099 $ 11,907 Less: Accumulated depreciation and amortization (7,580) (7,347) Right-of-use operating lease assets 649 668 Property, plant, and equipment – net $ 5,168 $ 5,228 Depreciation and amortization related to property, plant, and equipment was $191 million and $170 million in the three months ended and $379 million and $347 million in the six months ended June 30, 2024 and 2023, respectively. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
LEASES | LEASES. Our operating lease liabilities, included in All other current liabilities All other liabilities All other current liabilities All other liabilities |
LEASES | LEASES. Our operating lease liabilities, included in All other current liabilities All other liabilities All other current liabilities All other liabilities |
ACQUISITIONS, GOODWILL, AND OTH
ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS | ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS Acquisitions. In the second quarter of 2023, our Gas Power business acquired Nexus Controls, a business specializing in aftermarket control system upgrades and controls field services. GOODWILL Power Wind Electrification Total Balance as of January 1, 2024 $ 308 $ 3,204 $ 925 $ 4,437 Currency exchange and other 2 (83) (3) (83) Balance as of June 30, 2024 $ 311 $ 3,122 $ 921 $ 4,354 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. In the second quarter of 2024, we did not identify any reporting units that required an interim impairment test. Intangible assets. All intangible assets are subject to amortization. Intangible assets decreased $117 million during the six months ended June 30, 2024, primarily as a result of amortization. Amortization expense was $63 million and $68 million in the three months ended and $126 million and $123 million in the six months ended June 30, 2024 and 2023, respectively. |
ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS | ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS Acquisitions. In the second quarter of 2023, our Gas Power business acquired Nexus Controls, a business specializing in aftermarket control system upgrades and controls field services. GOODWILL Power Wind Electrification Total Balance as of January 1, 2024 $ 308 $ 3,204 $ 925 $ 4,437 Currency exchange and other 2 (83) (3) (83) Balance as of June 30, 2024 $ 311 $ 3,122 $ 921 $ 4,354 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. In the second quarter of 2024, we did not identify any reporting units that required an interim impairment test. Intangible assets. All intangible assets are subject to amortization. Intangible assets decreased $117 million during the six months ended June 30, 2024, primarily as a result of amortization. Amortization expense was $63 million and $68 million in the three months ended and $126 million and $123 million in the six months ended June 30, 2024 and 2023, respectively. |
CONTRACT AND OTHER DEFERRED ASS
CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME | 6 Months Ended |
Jun. 30, 2024 | |
Contractors [Abstract] | |
CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME | CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME. Contract assets reflect revenue recognized on contracts in excess of billings based on contractual terms. Contract liabilities primarily represent cash received from customers under ordinary commercial payment terms in advance of delivery of equipment orders or servicing of customers’ installed base. Contract and other deferred assets increased $357 million in the six months ended June 30, 2024 primarily due to the timing of revenue recognition ahead of billing milestones on equipment and other service agreements and increased contractual service agreement assets related to our Gas Power business within our Power segment. Contract liabilities and deferred income increased $1,482 million in the six months ended June 30, 2024 primarily due to new collections received in excess of revenue recognition at Power, Wind, and Electrification. Net contractual service agreements increased primarily due to revenues recognized of $2,537 million, partially offset by billings of $2,300 million and net unfavorable changes in estimated profitability of $89 million. Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately $5,283 million and $4,960 million for the six months ended June 30, 2024 and 2023, respectively. CONTRACT AND OTHER DEFERRED ASSETS As of June 30, 2024 Power Wind Electrification Total Contractual service agreement assets $ 5,346 $ — $ — $ 5,346 Equipment and other service agreement assets 1,696 595 1,065 3,356 Current contract assets $ 7,042 $ 595 $ 1,065 $ 8,702 Non-current contract and other deferred assets(a) 593 11 11 614 Total contract and other deferred assets $ 7,635 $ 606 $ 1,076 $ 9,316 As of December 31, 2023 Power Wind Electrification Total Contractual service agreement assets $ 5,201 $ — $ — $ 5,201 Equipment and other service agreement assets 1,679 392 1,067 3,138 Current contract assets $ 6,880 $ 392 $ 1,067 $ 8,339 Non-current contract and other deferred assets(a) 602 14 5 621 Total contract and other deferred assets $ 7,482 $ 406 $ 1,072 $ 8,960 (a) Primarily represents amounts due from customers at Gas Power for the sale of services upgrades, which we collect through incremental fixed or usage-based fees from servicing the equipment under contractual service agreements. CONTRACT LIABILITIES AND DEFERRED INCOME As of June 30, 2024 Power Wind Electrification Total Contractual service agreement liabilities $ 1,806 $ — $ — $ 1,806 Equipment and other service agreement liabilities 6,327 4,970 3,154 14,452 Current deferred income 10 169 98 277 Contract liabilities and current deferred income $ 8,143 $ 5,140 $ 3,252 $ 16,536 Non-current deferred income 49 118 26 193 Total contract liabilities and deferred income $ 8,192 $ 5,258 $ 3,278 $ 16,728 As of December 31, 2023 Power Wind Electrification Total Contractual service agreement liabilities $ 1,810 $ — $ — $ 1,810 Equipment and other service agreement liabilities 5,732 4,819 2,352 12,903 Current deferred income 20 228 113 361 Contract liabilities and current deferred income $ 7,562 $ 5,047 $ 2,465 $ 15,074 Non-current deferred income 48 90 35 173 Total contract liabilities and deferred income $ 7,610 $ 5,137 $ 2,500 $ 15,247 Remaining Performance Obligation . As of June 30, 2024, the aggregate amount of the contracted revenues allocated to our unsatisfied (or partially unsatisfied) performance obligations were $115,476 million. We expect to recognize revenue as we satisfy our remaining performance obligations as follows: (1) Equipment-related remaining performance obligations of $41,561 million of which 47%, 69%, and 91% is expected to be recognized within 1, 2, and 5 years, respectively, and the remaining thereafter. (2) Services-related remaining performance obligations of $73,915 million of which 17%, 52%, 77%, and 91% is expected to be recognized within 1, 5, 10, and 15 years, respectively, and the remaining thereafter. Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related remaining performance obligations. |
CURRENT AND ALL OTHER ASSETS
CURRENT AND ALL OTHER ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
CURRENT AND ALL OTHER ASSETS | CURRENT AND ALL OTHER ASSETS. All other current assets primarily include financing receivables, prepaid taxes and deferred charges, and derivative instruments (see Note 20). All other current assets increased $112 million for the six months ended June 30, 2024. All other assets primarily include pension surplus, long-term receivables (see Note 4), and prepaid taxes and deferred charges. All other assets increased $252 million in the six months ended June 30, 2024, primarily due to increases in pension assets and prepaid taxes and deferred charges. |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS Equity method Equity method income (loss) Three months ended June 30 Six months ended June 30 June 30, 2024 December 31, 2023 2024 2023 2024 2023 Power $ 1,034 $ 1,003 $ 28 $ 34 $ 40 $ 45 Wind 48 46 — — 1 (3) Electrification 824 788 12 24 42 37 Corporate(a) 500 1,718 (40) (51) (38) (141) Total $ 2,405 $ 3,555 $ 1 $ 7 $ 45 $ (63) (a) In connection with the Spin-Off, GE retained renewable energy U.S. tax equity investments of $1,244 million in limited liability companies, which generate renewable energy tax credits, and any tax attributes from historical tax equity investing activity. Tax benefits related to these investments of $53 million were recognized during the three months ended March 31, 2024 and $55 million and $100 million were recognized during the three and six months ended June 30, 2023, respectively, in Provision (benefit) for income taxes in the Consolidated and Combined Statement of Income (Loss). In connection with GE retaining the renewable energy U.S. tax equity investments, we recognized a $136 million benefit related to deferred intercompany profit from historical equipment sales to the related investees in Cost of equipment in the Consolidated and Combined Statement of Income (Loss) during the three months ended June 30, 2024. See Note 23 for further information. |
ACCOUNTS PAYABLE AND EQUIPMENT
ACCOUNTS PAYABLE AND EQUIPMENT PROJECT PAYABLES | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
ACCOUNTS PAYABLE AND EQUIPMENT PROJECT PAYABLES | ACCOUNTS PAYABLE AND EQUIPMENT PROJECT PAYABLES June 30, 2024 December 31, 2023 Trade payables $ 4,700 $ 4,701 Supply chain finance programs 1,626 1,642 Equipment project payables 1,057 1,096 Non-income based tax payables 458 461 Accounts payable and equipment project payables $ 7,841 $ 7,900 |
POSTRETIREMENT BENEFIT PLANS
POSTRETIREMENT BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS. GE Vernova sponsored plans, including those allocated to GE Vernova in connection with the Spin-Off, are presented in three categories: principal pension plans, other pension plans, and principal retiree benefit plans. Refer to Note 13 in the audited combined financial statements included in the Information Statement for further information for the year ended December 31, 2023. The components of benefit plans cost (income) other than the service cost are included in the caption Non-operating benefit income in our Consolidated and Combined Statement of Income (Loss). 2024 2023 Three months ended June 30 Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Service cost – operating $ 7 $ 8 $ 1 $ 7 $ 7 $ 2 Interest cost 139 56 9 140 62 10 Expected return on plan assets (187) (82) — (189) (87) — Amortization of net loss (gain) (45) 8 (11) (54) 1 (11) Amortization of prior service cost (credit) 2 (2) (15) 1 (2) (15) Curtailment/settlement gain — (10) — — (2) — Non-operating benefit costs (income) $ (92) $ (30) $ (16) $ (102) $ (28) $ (16) Net periodic expense (income) $ (85) $ (22) $ (15) $ (96) $ (21) $ (14) 2024 2023 Six months ended June 30 Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Service cost – operating $ 13 $ 16 $ 3 $ 13 $ 16 $ 3 Interest cost 274 113 18 281 123 21 Expected return on plan assets (372) (166) — (378) (173) — Amortization of net loss (gain) (92) 16 (21) (105) 2 (23) Amortization of prior service cost (credit) 3 (3) (30) 2 (3) (30) Curtailment/settlement gain — (10) — — (4) — Non-operating benefit costs (income) $ (186) $ (51) $ (32) $ (200) $ (55) $ (32) Net periodic expense (income) $ (173) $ (34) $ (30) $ (188) $ (40) $ (28) Defined Contribution Plan. Following the Spin-Off, GE Vernova now sponsors a defined contribution plan for its eligible U.S. employees that is similar to the corresponding GE-sponsored defined contribution plan that was in effect prior to the Spin-Off. Expenses associated with their participation in GE Vernova's plan beginning on April 2, 2024 and in GE's plan through April 1, 2024 and during 2023 represent the employer contributions for GE Vernova employees and were $45 million and $40 million for the three months ended and $81 million and $71 million for the six months ended June 30, 2024 and 2023, respectively. |
CURRENT AND ALL OTHER LIABILITI
CURRENT AND ALL OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
CURRENT AND ALL OTHER LIABILITIES | CURRENT AND ALL OTHER LIABILITIES . All other current liabilities primarily include liabilities related to employee compensation and benefits, equipment projects and other commercial liabilities, product warranties (see Note 22), restructuring liabilities (see Note 23), liabilities related to business disposition activities, and indemnifications in connection with the Spin-Off (see Note 22). All other current liabilities increased $293 million in the six months ended June 30, 2024, primarily due to liabilities related to business disposition activities and indemnification liabilities, partially offset by decreases in employee compensation and benefit liabilities. All other liabilities primarily include liabilities related to product warranties (see Note 22), legal liabilities (see Note 22), asset retirement obligations (see Note 22), operating lease liabilities (see Note 7), equipment projects and other commercial liabilities, and indemnifications in connection with the Spin-Off (see Note 22). All other liabilities increased $260 million in the six months ended June 30, 2024, primarily due to an increase in indemnification liabilities. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES. The Company’s income tax provision through March 31, 2024 was prepared based on a separate return basis. Following the Spin-off, the Company's income tax provision is prepared on a stand-alone basis. Our effective tax rate was 20.1% for the three months ended June 30, 2024. The effective tax rate was lower than the U.S. statutory rate of 21% primarily due to a lower effective tax rate on a foreign pre-tax gain from the sale of a portion of Steam Power nuclear activities to EDF, partially offset by losses providing no tax benefit in certain jurisdictions, and an increase in income tax expense due to the reduction of certain U.S. tax attributes that are not part of the Company's stand-alone operations. Our effective tax rate was 22.1% for the six months ended June 30, 2024. The effective tax rate was higher than the U.S. statutory rate of 21% primarily due to losses providing no tax benefit in certain jurisdictions, partially offset by a pre-tax gain with an insignificant tax impact from the sale of a portion of Steam Power nuclear activities to EDF. We recorded an income tax expense on a pre-tax loss in the three and six months ended June 30, 2023 due to taxes in profitable jurisdictions and losses providing no tax benefit in other jurisdictions. The Company's portion of income taxes for U.S. and certain foreign jurisdictions prior to the separation were deemed settled at the date of the Spin-Off. We recognized $287 million of foreign deferred tax liabilities transferred from GE related to separation activities. Refer to Note 1 for further information relating to the Tax Matters Agreement. The OECD (Organization for Economic Co-operation and Development) has proposed a global minimum tax of 15% of reported profits (Pillar 2) that has been agreed upon in principle by over 140 countries. During 2023, many countries took steps to incorporate Pillar 2 model rule concepts into their domestic laws. Although the model rules provide a framework for applying the minimum tax, countries may enact Pillar 2 slightly differently than the model rules and on different timelines and may adjust domestic tax incentives in response to Pillar 2. Accordingly, we continue to evaluate the potential consequences of Pillar 2 on our longer-term financial position. In 2024, we expect to incur insignificant tax expenses in connection with Pillar 2. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) Currency translation adjustment Benefit plans Cash flow hedges Total AOCI Balance as of April 1, 2024 $ (1,324) $ 604 $ 34 $ (686) Transfer or allocation of benefit plans – net of taxes of $—, $(207), and $— — (207) — (207) AOCI before reclasses – net of taxes of $45, $25, and $— (6) 9 33 36 Reclasses from AOCI – net of taxes of $—, $(1), and $— (a) (111) (74) 9 (176) Less: AOCI attributable to noncontrolling interests (1) — — (1) Balance as of June 30, 2024 $ (1,441) $ 333 $ 77 $ (1,031) Balance as of April 1, 2023 $ (1,381) $ 1,692 $ (26) $ 285 Transfer or allocation of benefit plans – net of taxes of $—, $(2), and $— — (4) — (4) AOCI before reclasses – net of taxes of $6, $(32), and $— 59 (1) (3) 55 Reclasses from AOCI – net of taxes of $—, $(1), and $— — (79) 6 (73) Less: AOCI attributable to noncontrolling interests (2) — — (2) Balance as of June 30, 2023 $ (1,320) $ 1,608 $ (24) $ 264 Balance as of January 1, 2024 $ (1,335) $ 674 $ 26 $ (635) Transfer or allocation of benefit plans – net of taxes of $—, $(207), and $— — (207) — (207) AOCI before reclasses – net of taxes of $33, $10, and $— (b) 5 8 29 42 Reclasses from AOCI – net of taxes of $—, $(2), and $— (a) (111) (141) 22 (230) Less: AOCI attributable to noncontrolling interests — 1 — 1 Balance as of June 30, 2024 $ (1,441) $ 333 $ 77 $ (1,031) Balance as of January 1, 2023 $ (1,445) $ 32 $ (43) $ (1,456) Transfer or allocation of benefit plans – net of taxes of $—, $68, and $— — 1,698 — 1,698 AOCI before reclasses – net of taxes of $6, $(20), and $— 103 33 8 145 Reclasses from AOCI – net of taxes of $—, $(1), and $— 18 (157) 11 (128) Less: AOCI attributable to noncontrolling interests (2) (2) — (4) Balance as of June 30, 2023 $ (1,320) $ 1,608 $ (24) $ 264 (a) The total reclassification of accumulated other comprehensive income (loss) included $111 million of currency translation adjustment related to the sale of a portion of Steam Power nuclear activities to EDF. See Notes 3 and 19 for further information. (b) Currency translation adjustment includes $39 million of accumulated other comprehensive income (loss) allocated to GE Vernova in connection with the Spin-Off. Common Stock. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION . We grant stock options, restricted stock units (RSUs), and performance share units (PSUs) to employees under the 2024 Long-Term Incentive Plan (LTIP). The Compensation and Human Capital Committee of the Board of Directors approves grants under the LTIP. Under the LTIP, we are authorized to issue up to approximately 25 million shares. We record compensation expense for awards expected to vest over the vesting period. We estimate forfeitures based on experience and adjust expense to reflect actual forfeitures. When options are exercised, RSUs vest, and PSUs are earned, we issue shares from authorized unissued common stock. Stock options provide awardees the opportunity to purchase shares of GE Vernova common stock in the future at the market price of our common stock on the date the award is granted (the strike price). The options become exercisable over the vesting period, typically becoming fully vested in either 3 or 4 years from the date of grant, and generally expire 10 years from the grant date if not exercised. RSUs entitle the awardee to receive shares of GE Vernova common stock upon vesting. PSUs entitle an awardee to receive shares of GE Vernova common stock upon certification by the Company's Compensation and Human Capital Committee of the level of performance achievement of the applicable performance metrics over a defined performance period. We value stock options using a Black-Scholes option pricing model, RSUs using the market price of our common stock on the grant date, and PSUs using the market price of our common stock on the grant date and a Monte Carlo simulation as needed based on performance metrics. The following tables provide the weighted average fair value of options, RSUs, and PSUs granted to employees during the three months ended June 30, 2024 and the related stock option valuation assumptions used in the Black-Scholes model. WEIGHTED AVERAGE GRANT DATE FAIR VALUE (In dollars) June 30, 2024 Stock options $ 69.56 RSUs 166.35 PSUs 160.85 KEY ASSUMPTIONS USED IN THE BLACK-SCHOLES VALUATION FOR STOCK OPTIONS June 30, 2024 Risk-free interest rate 4.3 % Dividend yield — Expected volatility 30 % Expected term (in years) 6.8 Strike price (in dollars) $170.03 For new awards granted in 2024, the expected volatility was derived from a peer group’s blended historical and implied volatility as GE Vernova does not have sufficient historical volatility based on the expected term of the underlying options. The expected term of the stock options was determined using the simplified method. The risk-free interest rate was determined using the implied yield currently available for zero-coupon U.S. government issues with a remaining term approximating the expected life of the options. SHARE-BASED COMPENSATION ACTIVITY Stock options RSUs Shares (in thousands) Weighted average exercise price (in dollars) Weighted average contractual term (in years) Intrinsic value (in millions) Shares (in thousands) Weighted average grant date fair value (in dollars) Weighted average vesting period (in years) Intrinsic value (in millions) Outstanding at April 2, 2024(a) 2,514 $ 101.32 3,797 $ 59.34 Granted 1,450 170.03 653 166.35 Exercised (412) 121.40 (288) 59.14 Forfeited — — (38) 64.78 Expired (9) 123.71 N/A N/A Outstanding at June 30, 2024 3,544 $ 127.04 6.0 $ 158 4,124 $ 76.76 1.4 $ 707 Exercisable at June 30, 2024 1,964 $ 99.28 3.0 $ 142 N/A N/A N/A N/A Expected to vest 1,078 $ 158.76 9.7 $ 14 3,771 $ 75.21 1.3 $ 647 (a) On April 2, 2024 , the Company began trading as an independent, publicly traded company under the stock symbol “GEV” on the New York Stock Exchange . The shares outstanding as of April 2, 2024 pertain to GE equity-based awards issued by GE in prior periods to employees of the Company that were converted to GE Vernova equity-based awards as part of the Spin-Off. The conversion to GE Vernova awards was considered a modification of the original award. Incremental fair value recognized was immaterial. Total outstanding target PSUs as of June 30, 2024 were 1,162 thousand shares with a weighted average fair value of $142.60. The intrinsic value and weighted average vesting period of PSUs outstanding were $199 million and 1.9 years, respectively. Share-based compensation expense is recognized within Cost of equipment, Cost of services, Selling, general, and administrative expenses, and Research and development expenses, as appropriate, in the Consolidated and Combined Statement of Income (Loss). SHARE-BASED COMPENSATION EXPENSE Three months ended June 30, 2024 Share-based compensation expense (pre-tax) $ 54 Income tax benefits (14) Share-based compensation expense (after-tax) $ 40 OTHER SHARE-BASED COMPENSATION DATA June 30, 2024 Unrecognized compensation expense as of June 30, 2024(a) $ 330 Cash received from stock options exercised for the three months ended June 30, 2024 50 Intrinsic value of stock options exercised and RSUs/PSUs vested in the three months ended June 30, 2024 71 |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE INFORMATION | EARNINGS PER SHARE INFORMATION. On April 2, 2024, there were approximately 274 million shares of GE Vernova common stock outstanding. The computation of basic and diluted earnings (loss) per common share for all periods through April 1, 2024 was calculated using 274 million common shares and is net of Net loss (income) attributable to noncontrolling interests . For periods prior to the Spin-Off, there were no dilutive equity instruments as there were no equity awards of GE Vernova outstanding prior to the Spin-Off. The dilutive effect of outstanding stock options, restricted stock units, and performance share units is reflected in the denominator for diluted EPS using the treasury stock method. Three months ended June 30 Six months ended June 30 (In millions, except per share amounts) 2024 2023 2024 2023 Numerator: Net income (loss) $ 1,280 $ (149) $ 1,174 $ (495) Net loss (income) attributable to noncontrolling interests 14 (2) (10) 30 Net income (loss) attributable to GE Vernova $ 1,294 $ (150) $ 1,164 $ (465) Denominator: Basic weighted-average shares outstanding 274 274 274 274 Dilutive effect of common stock equivalents 5 — 2 — Diluted weighted-average shares outstanding 278 274 276 274 Basic earnings (loss) per share $ 4.72 $ (0.55) $ 4.25 $ (1.70) Diluted earnings (loss) per share $ 4.65 $ (0.55) $ 4.22 $ (1.70) Antidilutive securities(a) 2 — 2 — |
OTHER INCOME (EXPENSE) - NET
OTHER INCOME (EXPENSE) - NET | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (EXPENSE) - NET | OTHER INCOME (EXPENSE) – NET Three months ended June 30 Six months ended June 30 2024 2023 2024 2023 Equity method investment income (loss) (Note 11) $ 1 $ 7 $ 45 $ (63) Net interest and investment income (loss) 21 17 27 26 Purchases and sales of business interests(a) 855 93 851 95 Derivative instruments (Note 20) (10) (4) (13) (26) Licensing income 2 62 13 72 Other – net 12 17 30 25 Total other income (expense) – net $ 881 $ 193 $ 954 $ 129 (a) Included a pre-tax gain of $853 million related to the sale of a portion of Steam Power nuclear activities to EDF in the three and six months ended June 30, 2024. See Notes 3, 15 and 16 for further information. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Loans and Other Receivables. The Company’s financial assets not carried at fair value primarily consist of loan receivables and non-current customer and other receivables. The net carrying amount was $498 million and $328 million as of June 30, 2024 and December 31, 2023, respectively. The estimated fair value was $495 million and $324 million as of June 30, 2024 and December 31, 2023, respectively. All of these assets are considered to be Level 3. Derivatives and Hedging. Our primary objective in executing and holding derivatives is to reduce the earnings and cash flow volatility associated with fluctuations in foreign currency exchange rates and commodity prices over the terms of our customer contracts. These hedge contracts reduce, but do not entirely eliminate, the impact of foreign currency exchange rate and commodity price movements. The Company does not enter into or hold derivative instruments for speculative trading purposes. We use foreign currency contracts to reduce the volatility of cash flows related to forecasted revenues, expenses, assets, and liabilities. These contracts are generally one Cash Flow Hedges. The total amount in AOCI related to cash flow hedges was a net $77 million gain as of June 30, 2024, of which a net gain of $34 million related to our share of AOCI recognized at our non-consolidated joint ventures. We expect to reclassify $51 million of pre-tax net losses associated with designated cash flow hedges to earnings in the next 12 months, contemporaneously with the earnings effects of the related forecasted transactions. The Company reclassified net gains (losses) from AOCI into earnings of $(9) million and $(6) million for the three months ended and $(22) million and $(11) million for the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, the maximum length of time over which we are hedging forecasted transactions was approximately 11 years. Net Investment Hedges. We enter into foreign exchange forwards designated as the hedging instruments in net investment hedging relationships in order to mitigate the foreign currency risk attributable to the translation of the Company’s net investment in certain non USD-functional subsidiaries and/or equity method investees. The total amount in AOCI related to net investment hedges was a net gain of $34 million as of June 30, 2024. The following table presents the gross fair values of our outstanding derivative instruments as of the dates indicated: GROSS FAIR VALUE OF OUTSTANDING DERIVATIVE INSTRUMENTS As of June 30, 2024 Gross Notional All other current assets All other assets All other current liabilities All other liabilities Foreign currency exchange contracts accounted for as hedges $ 4,728 $ 50 $ 129 $ 40 $ 54 Foreign currency exchange contracts 35,250 303 119 307 134 Commodity and other contracts 455 16 17 9 2 Derivatives not accounted for as hedges $ 35,706 $ 318 $ 136 $ 316 $ 136 Total gross derivatives $ 40,434 $ 368 $ 264 $ 357 $ 190 Netting adjustment(a) $ (271) $ (132) $ (269) $ (132) Net derivatives recognized in the Consolidated and Combined Statement of Financial Position $ 97 $ 133 $ 88 $ 59 As of December 31, 2023 Foreign currency exchange contracts accounted for as hedges $ 5,035 $ 39 $ 91 $ 28 $ 41 Foreign currency exchange contracts 33,832 361 169 364 142 Commodity and other contracts 476 10 8 16 1 Derivatives not accounted for as hedges $ 34,308 $ 371 $ 177 $ 380 $ 143 Total gross derivatives $ 39,343 $ 410 $ 268 $ 408 $ 184 Netting adjustment(a) $ (334) $ (150) $ (334) $ (150) Net derivatives recognized in the Consolidated and Combined Statement of Financial Position $ 76 $ 118 $ 74 $ 34 (a) The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk. PRE-TAX GAINS (LOSSES) RECOGNIZED IN OCI RELATED TO CASH FLOW AND NET INVESTMENT HEDGES Three months ended June 30 Six months ended June 30 2024 2023 2024 2023 Cash flow hedges $ 23 $ 2 $ 36 $ 11 Net investment hedges 1 1 4 (4) The tables below show the effect of our derivative financial instruments in the Consolidated and Combined Statement of Income (Loss): 2024 Three months ended June 30 Sales of equipment and services Cost of equipment and services Selling, general, and administrative expenses Other income (expense) – net Total amount of income and expense in the Consolidated and Combined Statement of Income (Loss) $ 8,204 $ 6,502 $ 938 $ 881 Foreign currency exchange contracts (4) 6 — — Interest rate contracts — — — — Effects of cash flow hedges $ (4) $ 6 $ — $ — Foreign currency exchange contracts (6) (12) (39) (10) Commodity and other contracts — (5) (4) — Effect of derivatives not designated as hedges $ (6) $ (18) $ (43) $ (10) 2023 Three months ended June 30 Sales of equipment and services Cost of equipment and services Selling, general, and administrative expenses Other income (expense) – net Total amount of income and expense in the Consolidated and Combined Statement of Income (Loss) $ 8,119 $ 6,973 $ 1,272 $ 193 Foreign currency exchange contracts (1) 2 — — Interest rate contracts — — — (2) Effects of cash flow hedges $ (1) $ 2 $ — $ (2) Foreign currency exchange contracts (1) 54 (31) (4) Commodity and other contracts — 14 — 1 Effect of derivatives not designated as hedges $ (1) $ 68 $ (31) $ (3) 2024 Six months ended June 30 Sales of equipment and services Cost of equipment and services Selling, general, and administrative expenses Other income (expense) – net Total amount of income and expense in the Consolidated and Combined Statement of Income (Loss) $ 15,463 $ 12,611 $ 2,140 $ 954 Foreign currency exchange contracts (7) 14 — — Interest rate contracts — — — — Effects of cash flow hedges $ (7) $ 14 $ — $ — Foreign currency exchange contracts (6) 17 (44) (13) Commodity and other contracts — (5) (15) — Effect of derivatives not designated as hedges $ (6) $ 12 $ (59) $ (13) 2023 Six months ended June 30 Sales of equipment and services Cost of equipment and services Selling, general, and administrative expenses Other income (expense) – net Total amount of income and expense in the Consolidated and Combined Statement of Income (Loss) $ 14,941 $ 12,876 $ 2,458 $ 129 Foreign currency exchange contracts (6) 3 — — Interest rate contracts — — — (2) Effects of cash flow hedges $ (6) $ 3 $ — $ (2) Foreign currency exchange contracts — 81 (31) (26) Commodity and other contracts — 25 — 1 Effect of derivatives not designated as hedges $ — $ 106 $ (31) $ (25) The amount excluded for cash flow hedges was a gain (loss) of $10 million and $(5) million for the three months ended and $11 million and $(9) million for the six months ended June 30, 2024 and 2023, respectively. This amount is recognized in Sales of equipment, Sales of services, Cost of equipment, and Cost of services in our Consolidated and Combined Statement of Income (Loss). |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2024 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES . In our Consolidated and Combined Statement of Financial Position, we have assets of $77 million and $122 million and liabilities of $119 million and $156 million as of June 30, 2024 and December 31, 2023, respectively, from consolidated variable interest entities (VIEs). These entities were created to help our customers facilitate or finance the purchase of GE Vernova equipment and services, and to manage our insurance exposure through an insurance captive, and have no features that could expose us to losses that would significantly exceed the difference between the consolidated assets and liabilities. Our investments in unconsolidated VIEs were $114 million and $1,323 million as of June 30, 2024 and December 31, 2023, respectively. Of these investments, $59 million and $1,272 million as of June 30, 2024 and December 31, 2023, respectively, were owned by our Financial Services business. At December 31, 2023, these investments were substantially all related to renewable energy U.S. tax equity investments that were subsequently retained by GE in connection with the Spin-Off. See Note 11 for further information. Our maximum exposure to loss in respect of unconsolidated VIEs is increased by our commitments to make additional investments in these entities described in Note 22. |
COMMITMENTS, GUARANTEES, PRODUC
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES | COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES Commitments. We had total investment commitments of $70 million and unfunded lending commitments of $68 million at June 30, 2024. The commitments primarily consist of obligations to make investments or provide funding by our Financial Services and Gas Power businesses. See Note 21 for further information. Guarantees. As of June 30, 2024, we were committed under the following guarantee arrangements: Credit support. We have provided $726 million of credit support on behalf of certain customers or associated companies, predominantly joint ventures and partnerships, using arrangements such as standby letters of credit and performance guarantees, and a line of credit to support our consolidated subsidiaries. The liability for such credit support was $6 million. In addition, prior to the Spin-Off, GE provided parent company guarantees to GE Vernova in certain jurisdictions. See Note 24 for further information. Indemnification agreements. We have $905 million of indemnification commitments, including obligations arising from the Spin-Off, our commercial contracts, and agreements governing the sale of business assets, for which we recorded a liability of $698 million. The liability is primarily associated with cash and deposits of which $325 million is cash transferred to the Company from GE as part of the Spin-Off that is restricted in connection with certain legal matters related to legacy GE operations. The liability reflects the use of these funds to settle any associated obligations and the return of any remaining cash to GE in a future reporting period once resolved. In addition, the liability includes $303 million of indemnifications in connection with agreements entered into with GE related to the Spin-Off, including the tax matters agreement. Product Warranties. We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates are forecasts that are based on the best available information, mostly historical claims experience, claims costs may differ from amounts provided. The liability for product warranties was $1,292 million and $1,414 million as of June 30, 2024 and December 31, 2023, respectively. Legal Matters. In the normal course of our business, we are involved from time to time in various arbitrations, class actions, commercial litigation, investigations, and other legal, regulatory, or governmental actions, including the significant matters described below that could have a material impact on our results of operations. In many proceedings, including the specific matters described below, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the size or range of the possible loss, and accruals for legal matters are not recorded until a loss for a particular matter is considered probable and reasonably estimable. Given the nature of legal matters and the complexities involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors, the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery or other procedural considerations will affect the outcome, the settlement posture of other parties, and other factors that may have a material effect on the outcome. For these matters, unless otherwise specified, we do not believe it is possible to provide a meaningful estimate of loss at this time. Moreover, it is not uncommon for legal matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated. Alstom Legacy Legal Matters. In November 2015, we acquired the power and grid businesses of Alstom, which prior to the acquisition was the subject of significant cases involving anti-competitive activities and improper payments. The estimated liability balance was $327 million and $393 million at June 30, 2024 and December 31, 2023, respectively, for legal and compliance matters related to the legacy business practices that were the subject of cases in various jurisdictions. Allegations in these cases relate to claimed anti-competitive conduct or improper payments in the pre-acquisition period as the source of legal violations or damages. Given the significant litigation and compliance activity related to these matters and our ongoing efforts to resolve them, it is difficult to assess whether the disbursements will ultimately be consistent with the estimated liability established. The estimation of this liability may not reflect the full range of uncertainties and unpredictable outcomes inherent in litigation and investigations of this nature, and at this time we are unable to develop a meaningful estimate of the range of reasonably possible additional losses beyond the amount of this estimated liability. Factors that can affect the ultimate amount of losses associated with these and related matters include formulas for determining disgorgement, fines and/or penalties, the duration and amount of legal and investigative resources applied, political and social influences within each jurisdiction, and tax consequences of any settlements or previous deductions, among other considerations. Actual losses arising from claims in these and related matters could exceed the amount provided. In June 2024, we executed a settlement agreement with the Government of the Kingdom of Saudi Arabia, represented by The Ministry of Energy (MOE) in connection with certain Alstom steam power construction projects with Saudi Electric Company (SE) won between 1998 and 2008. In November 2015, prior to its acquisition by GE, Alstom had paid a fine and pled guilty to charges brought by the U.S. Department of Justice under the U.S. Foreign Corrupt Practices Act, including in relation to conduct related to two of these SE steam power projects. In December 2015, following the acquisition of Alstom by GE, SE contacted GE seeking recompense for alleged reputational damage and in December 2021, the Saudi Arabia National Anti-Corruption Commission became involved and initiated an investigation. The settlement of approximately $267 million consists of $141 million in cash payments to the MOE and the remainder as a credit note to SE, and releases GE Vernova, GE and their respective affiliates from civil and criminal liabilities related to this matter after the settlement obligations are met. Approximately $62 million of the cash settlement was paid in the second quarter and the remainder will be payable quarterly through September 2026. Environmental and Asset Retirement Obligations. Our operations involve the use, disposal, and cleanup of substances regulated under environmental protection laws and nuclear decommissioning regulations. We have obligations for ongoing and future environmental remediation activities and may incur additional liabilities in connection with previously remediated sites. Additionally, like many other industrial companies, we and our subsidiaries are defendants in various lawsuits related to alleged worker exposure to asbestos or other hazardous materials. Liabilities for environmental remediation, nuclear decommissioning, and worker exposure claims exclude possible insurance recoveries. It is reasonably possible that our exposure will exceed amounts accrued. However, due to uncertainties about the status of laws, regulations, technology, and information related to individual sites and lawsuits, such amounts are not reasonably estimable. Our reserves related to environmental remediation and worker exposure claims recorded in All other liabilities were $136 million and $127 million as of June 30, 2024 and December 31, 2023, respectively. We record asset retirement obligations associated with the retirement of tangible long-lived assets as a liability in the period in which the obligation is incurred and its fair value can be reasonably estimated. These obligations primarily represent nuclear decommissioning, legal obligations to return leased premises to their initial state, or dismantle and repair specific alterations for certain leased sites. The liability is measured at the present value of the obligation when incurred and is adjusted in subsequent periods. Corresponding asset retirement costs are capitalized as part of the carrying value of the related long-lived assets and depreciated over the asset’s useful life. Our asset retirement obligations were $588 million and $581 million as of June 30, 2024 and December 31, 2023, respectively, and are recorded in All other liabilities in our Consolidated and Combined Statement of Financial Position. Of these amounts, $522 million and $519 million were related to nuclear decommissioning obligations. Changes in the liability balance due to settlement, accretion, and revisions in fair value were not material for the six months ended June 30, 2024. |
RESTRUCTURING CHARGES AND SEPAR
RESTRUCTURING CHARGES AND SEPARATION COSTS | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES AND SEPARATION COSTS | RESTRUCTURING CHARGES AND SEPARATION COSTS Restructuring and Other Charges. This table is inclusive of all restructuring charges and the charges are shown below for the business where they originated. Separately, in our reported segment results, major 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. See Note 25 for further information. RESTRUCTURING AND OTHER CHARGES Three months ended June 30 Six months ended June 30 2024 2023 2024 2023 Workforce reductions $ 35 $ 60 $ 111 $ 105 Plant closures and associated costs and other asset write-downs 24 27 91 84 Acquisition/disposition net charges and other 3 12 8 22 Total restructuring and other charges $ 62 $ 99 $ 210 $ 211 Cost of equipment and services $ 15 $ 26 $ 120 $ 58 Selling, general, and administrative expenses 47 73 90 153 Total restructuring and other charges $ 62 $ 99 $ 210 $ 211 Power $ 48 $ 21 $ 97 $ 42 Wind 13 69 102 121 Electrification 7 5 17 35 Other (6) 4 (6) 13 Total restructuring and other charges(a) $ 62 $ 99 $ 210 $ 211 (a) Includes $23 million and $40 million for the three months ended and $93 million and $106 million for the six months ended June 30, 2024 and 2023, respectively, primarily in non-cash impairment, accelerated depreciation, and other charges not reflected in the liability table below. Liabilities associated with restructuring activities were recorded in All other current liabilities, All other liabilities, and Non-current compensation and benefits. RESTRUCTURING LIABILITIES 2024 2023 Balance as of January 1 $ 276 $ 283 Additions 117 105 Payments (135) (118) Foreign exchange and other 88 3 Balance as of June 30 $ 346 $ 273 In addition to the continued impacts of ongoing initiatives, restructuring primarily included exit activities associated with the plan announced in October 2022 to undertake a restructuring program across our Wind businesses, primarily reflecting the selectivity strategy to operate in fewer markets and to simplify and standardize product variants. The estimated cost of this multi-year restructuring program was approximately $600 million, with the majority recognized in the first half of 2023. This plan was expanded during the third quarter of 2023 to include the consolidation of the global footprint and related resources at our Power businesses to better serve our customers. Separation Costs. In connection with the Spin-Off, the Company recognized separation costs (benefits) of $(91) million for the three months ended June 30, 2024 in our Consolidated and Combined Statement of Income (Loss). Separation costs (benefits) include system implementations, advisory fees, one-time stock option grant, and other one-time costs, which are primarily recorded in Selling, general, and administrative costs. In addition, in connection with GE retaining certain renewable energy U.S. tax equity investments as part of the Spin-Off, the Company recognized a $136 million benefit related to deferred intercompany profit from historical equipment sales to the related investees, recorded in Cost of equipment. See Note 11 for further information. |
RELATED PARTIES
RELATED PARTIES | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES Aero Alliance. Aero Alliance is our joint venture with Baker Hughes Company that supports our customers through the fulfillment of aeroderivative engines, spare parts, repairs, and maintenance services. Purchases of parts and services from the joint venture were $212 million and $156 million for the three months ended and $363 million and $273 million for the six months ended June 30, 2024 and 2023, respectively. The Company owed Aero Alliance $44 million and $34 million as of June 30, 2024 and December 31, 2023, respectively. These amounts have been recorded in Due to related parties on the Consolidated and Combined Statement of Financial Position. Prolec GE. Prolec GE is our joint venture with Xignux, which manufactures a wide range of transformers available for generation, transmission, and distribution applications. To fund a historical acquisition, Prolec GE issued notes that included certain change in control provisions that allowed the note holders to accept prepayment of such notes by Prolec GE as a result of the GE Vernova Spin-Off. If some or all of the note holders accepted to receive prepayment of the outstanding notes, Prolec GE would have needed to refinance the notes. The Company may have been required to provide financing to Prolec GE to satisfy the prepayment conditions if other refinancing options had not been obtained prior to the note holders calling such notes. Prolec GE was able to refinance the notes that were subject to prepayment, thereby relieving GE Vernova of its funding commitment. Financial Services Investments. Our Financial Services business invests in project infrastructure entities where we do not hold a controlling financial interest, including renewable tax equity vehicles. These entities generally purchase equipment from our Wind and Power segments, and we have recognized revenues of $121 million for the three months ended June 30, 2023 and $4 million and $142 million for the six months ended June 30, 2024 and 2023, respectively, for sales to these entities. Revenues for sales to these entities for the three months ended June 30, 2024 were not significant as GE retained the renewable energy U.S. tax equity investments. See Note 11 for further information. Corporate Allocations. Prior to the Spin-Off, GE historically provided the Company with significant corporate, infrastructure, and shared services. Some of these services continue to be provided by GE to the Company on a temporary basis following the Spin-Off under the Transition Services Agreement. Accordingly, for periods prior to the Spin-Off, certain GE Corporate Costs have been charged to the Company based on allocation methodologies as follows: a. Centralized services such as public relations, investor relations, treasury and cash management, executive management, security, government relations, community outreach, and corporate internal audit services were charged to the Company on a pro rata basis of GE’s estimates of each business’s usage at the beginning of the fiscal year and were recorded in Selling, general, and administrative expenses. Costs of $19 million and $39 million for the three and six months ended June 30, 2023, respectively, were recorded in the Consolidated and Combined Statement of Income (Loss). Costs allocated to the Company for the three months ended March 31, 2024 were not significant as GE Vernova had established standalone capabilities for such services. b. Information technology, finance, insurance, research, supply chain, human resources, tax, and facilities activities were charged to the Company based on headcount, revenue, or other allocation methodologies. Costs for these services of $181 million and $364 million were charged to the Company for the three and six months ended June 30, 2023, respectively. Costs for these services of $100 million were charged to the Company for the three months ended March 31, 2024. Such costs are primarily included in Selling, general, and administrative expenses and Research and development expenses in the Consolidated and Combined Statement of Income (Loss). c. Costs associated with employee medical insurance totaling $31 million and $59 million were charged for the three and six months ended June 30, 2023, respectively. Costs associated with employee medical insurance totaling $30 million were charged to the Company for the three months ended March 31, 2024. Costs were charged to the Company based on employee headcount and are recorded in Cost of equipment, Cost of services, Selling, general, and administrative expenses, or Research and development expenses in the Consolidated and Combined Statement of Income (Loss) based on the employee population. Additionally, GE granted various employee benefits to its employees, including prior to the Spin-Off to those of the Company, under the GE Long-Term Incentive Plan. These benefits primarily included stock options and restricted stock units. Compensation expense associated with this plan was $26 million and $59 million for the three and six months ended June 30, 2023, respectively. Compensation expense associated with this plan was $34 million for the three months ended March 31, 2024. Such expense is included primarily in Selling, general, and administrative expenses in the Consolidated and Combined Statement of Income (Loss). These costs were charged directly to the Company based on the specific employees receiving awards. Finally, while GE’s third-party debt had not been attributed to the Company, GE allocated a portion of interest expense related to its third-party debt for funding provided by GE to the Company for certain investments held by Financial Services. The interest was allocated based on the GE-funded ending net investment position each reporting period. Interest allocated was $10 million and $19 million for the three and six months ended June 30, 2023, respectively. Interest allocated was $7 million for the three months ended March 31, 2024. Such expense is included in Interest and other financial charges – net in the Consolidated and Combined Statement of Income (Loss). Management believes that the expense and cost allocations were determined on a basis that is a reasonable reflection of the utilization of services provided or the benefit received by the Company. The amounts that would have been, or will be incurred, on a stand-alone basis could materially differ from the amounts allocated due to economies of scale, difference in management judgment, a requirement for more or fewer employees, or other factors. Management does not believe, however, that it is practicable to estimate what these expenses would have been had the Company operated as an independent entity, including any expenses associated with obtaining any of these services from unaffiliated entities. In addition, the future results of operations, financial position, and cash flows could differ materially from the historical results presented herein. Parent Company Credit Support. GE provided the Company with parent credit support in certain jurisdictions. To support the Company in selling products and services globally, GE often entered into contracts on behalf of GE Vernova or issued parent company guarantees or trade finance instruments supporting the performance of what were subsidiary legal entities transacting directly with customers, in addition to providing similar credit support for some non-customer related activities of GE Vernova. There are no known instances historically where payments or performance from GE were required under parent company guarantees relating to GE Vernova customer contracts. Transfer of Tax Credits to GE. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The following table disaggregates total revenues to external customers for sales of equipment and sales of services by segment: 2024 2023 Three months ended June 30 Equipment Services Total Equipment Services Total Power $ 1,284 $ 3,129 $ 4,413 $ 1,132 $ 2,961 $ 4,093 Wind 1,660 393 2,052 2,243 355 2,598 Electrification 1,246 475 1,721 1,011 415 1,426 Other 4 13 17 2 — 2 Total revenues $ 4,194 $ 4,010 $ 8,204 $ 4,388 $ 3,732 $ 8,119 2024 2023 Six months ended June 30 Equipment Services Total Equipment Services Total Power $ 2,468 $ 5,952 $ 8,420 $ 2,297 $ 5,577 $ 7,874 Wind 2,887 799 3,686 3,657 691 4,348 Electrification 2,450 878 3,328 1,919 796 2,715 Other 6 23 30 4 1 4 Total revenues $ 7,811 $ 7,652 $ 15,463 $ 7,877 $ 7,065 $ 14,941 Intersegment sales were $119 million and $115 million for the three months ended and $197 million and $205 million for the six months ended June 30, 2024 and 2023, respectively. Intersegment revenues are recognized on the same basis of accounting as such revenue is recognized on a consolidated and combined basis. TOTAL SEGMENT REVENUES BY BUSINESS UNIT Three months ended June 30 Six months ended June 30 2024 2023 2024 2023 Gas Power $ 3,459 $ 3,051 $ 6,500 $ 5,933 Nuclear Power 222 212 450 434 Hydro Power 182 220 363 397 Steam Power 592 648 1,176 1,189 Power $ 4,455 $ 4,131 $ 8,490 $ 7,953 Onshore Wind $ 1,560 $ 2,174 $ 2,619 $ 3,597 Offshore Wind 353 285 794 534 LM Wind Power 149 142 288 221 Wind $ 2,062 $ 2,601 $ 3,701 $ 4,352 Grid Solutions $ 1,142 $ 966 $ 2,251 $ 1,801 Power Conversion 313 217 548 400 Electrification Software 223 213 428 431 Solar & Storage Solutions 113 109 214 204 Electrification $ 1,790 $ 1,505 $ 3,441 $ 2,836 Total segment revenues $ 8,307 $ 8,237 $ 15,632 $ 15,140 SEGMENT EBITDA Three months ended June 30 Six months ended June 30 2024 2023 2024 2023 Power $ 613 $ 466 $ 958 $ 643 Wind (117) (259) (289) (519) Electrification 129 31 195 1 $ 626 $ 238 $ 864 $ 125 Corporate and other(a) (101) (35) (150) (107) Restructuring and other charges (62) (93) (210) (203) Purchases and sales of business interests 847 86 842 86 Russia and Ukraine charges(b) — (95) — (95) Separation (costs) benefits(c) 91 — 91 — Arbitration refund(d) 254 — 254 — Non-operating benefit income 134 143 269 282 Depreciation and amortization(e) (237) (218) (445) (422) Interest and other financial charges – net(f) 61 (8) 58 (16) Benefit (provision) for income taxes (333) (167) (397) (145) Net income (loss) $ 1,280 $ (149) $ 1,174 $ (495) (a) Includes interest and other financial charges of $1 million and $13 million and benefit for income taxes of $11 million and $45 million for the three months ended June 30, 2024 and 2023, respectively, as well as interest and other financial charges of $11 million and $25 million and benefit for income taxes of $64 million and $92 million for the six months ended June 30, 2024 and 2023, respectively, related to the Financial Services business as this business is managed on an after-tax basis due to its strategic investments in renewable energy tax equity vehicles. (b) Related to pre-tax charges primarily from impairments of receivables, inventory, contract assets, and equity method investments directly resulting from the ongoing conflict between Russia and Ukraine and sanctions, primarily related to our Power business. (c) Costs incurred in the Spin-Off and separation from GE, including system implementations, advisory fees, one-time stock option grant, and other one-time costs. In addition, includes $136 million benefit related to deferred intercompany profit that was recognized upon GE retaining the renewable energy U.S. tax equity investments. (d) Represents cash refund received in connection with an arbitration proceeding, constituting the payments previously made to the Fund, and excludes $52 million related to the interest on such amounts that was recorded in Interest and other financial charges – net. (e) Excludes depreciation and amortization expense related to Restructuring and other charges. (f) Consists of interest and other financial charges, net of interest income, other than financial interest related to our normal business operations primarily with customers. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 1,294 | $ (150) | $ 1,164 | $ (465) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation . For periods prior to the Spin-Off, the unaudited combined financial statements were derived from the consolidated financial statements and accounting records of GE, including the historical cost basis of assets and liabilities comprising the Company, as well as the historical revenues, direct costs, and allocations of indirect costs attributable to the operations of the Company, using the historical accounting policies applied by GE. The unaudited combined financial statements do not purport to reflect what the results of operations, comprehensive income, financial position, or cash flows would have been had the Company operated as a separate, stand-alone entity during the periods prior to the Spin-Off. We have prepared the accompanying unaudited consolidated and combined financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) applicable to interim financial statements. Accordingly, certain information related to our significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted. These unaudited consolidated and combined financial statements reflect, in the opinion of management, all material adjustments (which include only normally recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations, and cash flows for the periods presented. These unaudited consolidated and combined financial statements should be read in conjunction with our audited combined financial statements, corresponding notes, and significant accounting policies for the year ended December 31, 2023, included in our information statement dated March 8, 2024, which was furnished as Exhibit 99.1 to a Current Report on Form 8-K furnished with the SEC on March 8, 2024 (the Information Statement). The information presented in tables throughout the footnotes is presented in millions of U.S. dollars unless otherwise stated. Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions. |
Consolidation | All intercompany balances and transactions within the Company have been eliminated in the consolidated and combined financial statements. As described in Note 24, transactions between the Company and GE have been included in these consolidated and combined financial statements. Certain financing transactions with GE are deemed to have been settled immediately through Net parent investment in the Consolidated and Combined Statement of Financial Position and are accounted for as a financing activity in the Consolidated and Combined Statement of Cash Flows as Transfers from (to) Parent. |
Estimates and Assumptions | Estimates and Assumptions. The preparation of the consolidated and combined financial statements in conformity with U.S. GAAP requires management 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 the consolidated and combined financial statements. We believe these assumptions to be reasonable under the circumstances, and 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. |
DISPOSITIONS AND BUSINESSES H_2
DISPOSITIONS AND BUSINESSES HELD FOR SALE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Financial Information for Assets and Liabilities of Businesses Held for Sale | The major components of assets and liabilities of the business held for sale in the Company’s Consolidated and Combined Statement of Financial Position are summarized as follows: ASSETS AND LIABILITIES OF BUSINESS HELD FOR SALE June 30, 2024 December 31, 2023 Cash and cash equivalents $ — $ 603 Current receivables, inventories, and contract assets — 551 Property, plant, and equipment and intangibles – net — 237 Other assets — 53 Assets of business held for sale $ — $ 1,444 Contract liabilities and deferred income $ — $ 1,001 Accounts payable and equipment project payables — 177 Other liabilities — 270 Liabilities of business held for sale $ — $ 1,448 |
CURRENT AND LONG-TERM RECEIVA_2
CURRENT AND LONG-TERM RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of Receivables | CURRENT RECEIVABLES – NET June 30, 2024 December 31, 2023 Customer receivables $ 5,021 $ 5,952 Non-income based tax receivables 1,071 1,048 Supplier advances and other receivables 853 924 Other receivables $ 1,923 $ 1,972 Allowance for credit losses (525) (515) Total current receivables – net $ 6,419 $ 7,409 Activity in the allowance for credit losses related to current receivables for the six months ended June 30, 2024 and 2023 consists of the following: ALLOWANCE FOR CREDIT LOSSES 2024 2023 Balance as of January 1 $ 515 $ 674 Net additions (releases) charged to costs and expenses 19 (2) Write-offs, net (9) (54) Foreign exchange and other 1 10 Balance as of June 30 $ 525 $ 628 LONG-TERM RECEIVABLES June 30, 2024 December 31, 2023 Long-term customer receivables $ 284 $ 316 Supplier advances 225 243 Non-income based tax receivables 107 136 Other receivables 276 190 Allowance for credit losses (177) (184) Total long-term receivables – net $ 715 $ 701 |
INVENTORIES, INCLUDING DEFERR_2
INVENTORIES, INCLUDING DEFERRED INVENTORY COSTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | June 30, 2024 December 31, 2023 Raw materials and work in process $ 5,300 $ 4,685 Finished goods 2,809 2,514 Deferred inventory costs(a) 1,237 1,054 Inventories, including deferred inventory costs $ 9,346 $ 8,253 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | June 30, 2024 December 31, 2023 Original cost $ 12,099 $ 11,907 Less: Accumulated depreciation and amortization (7,580) (7,347) Right-of-use operating lease assets 649 668 Property, plant, and equipment – net $ 5,168 $ 5,228 |
ACQUISITIONS, GOODWILL, AND O_2
ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | GOODWILL Power Wind Electrification Total Balance as of January 1, 2024 $ 308 $ 3,204 $ 925 $ 4,437 Currency exchange and other 2 (83) (3) (83) Balance as of June 30, 2024 $ 311 $ 3,122 $ 921 $ 4,354 |
CONTRACT AND OTHER DEFERRED A_2
CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Contractors [Abstract] | |
Schedule of Contract with Customer, Asset and Liability | CONTRACT AND OTHER DEFERRED ASSETS As of June 30, 2024 Power Wind Electrification Total Contractual service agreement assets $ 5,346 $ — $ — $ 5,346 Equipment and other service agreement assets 1,696 595 1,065 3,356 Current contract assets $ 7,042 $ 595 $ 1,065 $ 8,702 Non-current contract and other deferred assets(a) 593 11 11 614 Total contract and other deferred assets $ 7,635 $ 606 $ 1,076 $ 9,316 As of December 31, 2023 Power Wind Electrification Total Contractual service agreement assets $ 5,201 $ — $ — $ 5,201 Equipment and other service agreement assets 1,679 392 1,067 3,138 Current contract assets $ 6,880 $ 392 $ 1,067 $ 8,339 Non-current contract and other deferred assets(a) 602 14 5 621 Total contract and other deferred assets $ 7,482 $ 406 $ 1,072 $ 8,960 (a) Primarily represents amounts due from customers at Gas Power for the sale of services upgrades, which we collect through incremental fixed or usage-based fees from servicing the equipment under contractual service agreements. CONTRACT LIABILITIES AND DEFERRED INCOME As of June 30, 2024 Power Wind Electrification Total Contractual service agreement liabilities $ 1,806 $ — $ — $ 1,806 Equipment and other service agreement liabilities 6,327 4,970 3,154 14,452 Current deferred income 10 169 98 277 Contract liabilities and current deferred income $ 8,143 $ 5,140 $ 3,252 $ 16,536 Non-current deferred income 49 118 26 193 Total contract liabilities and deferred income $ 8,192 $ 5,258 $ 3,278 $ 16,728 As of December 31, 2023 Power Wind Electrification Total Contractual service agreement liabilities $ 1,810 $ — $ — $ 1,810 Equipment and other service agreement liabilities 5,732 4,819 2,352 12,903 Current deferred income 20 228 113 361 Contract liabilities and current deferred income $ 7,562 $ 5,047 $ 2,465 $ 15,074 Non-current deferred income 48 90 35 173 Total contract liabilities and deferred income $ 7,610 $ 5,137 $ 2,500 $ 15,247 |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Equity method Equity method income (loss) Three months ended June 30 Six months ended June 30 June 30, 2024 December 31, 2023 2024 2023 2024 2023 Power $ 1,034 $ 1,003 $ 28 $ 34 $ 40 $ 45 Wind 48 46 — — 1 (3) Electrification 824 788 12 24 42 37 Corporate(a) 500 1,718 (40) (51) (38) (141) Total $ 2,405 $ 3,555 $ 1 $ 7 $ 45 $ (63) (a) In connection with the Spin-Off, GE retained renewable energy U.S. tax equity investments of $1,244 million in limited liability companies, which generate renewable energy tax credits, and any tax attributes from historical tax equity investing activity. Tax benefits related to these investments of $53 million were recognized during the three months ended March 31, 2024 and $55 million and $100 million were recognized during the three and six months ended June 30, 2023, respectively, in Provision (benefit) for income taxes in the Consolidated and Combined Statement of Income (Loss). In connection with GE retaining the renewable energy U.S. tax equity investments, we recognized a $136 million benefit related to deferred intercompany profit from historical equipment sales to the related investees in Cost of equipment in the Consolidated and Combined Statement of Income (Loss) during the three months ended June 30, 2024. See Note 23 for further information. |
ACCOUNTS PAYABLE AND EQUIPMEN_2
ACCOUNTS PAYABLE AND EQUIPMENT PROJECT PAYABLES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Equipment Project Payables | June 30, 2024 December 31, 2023 Trade payables $ 4,700 $ 4,701 Supply chain finance programs 1,626 1,642 Equipment project payables 1,057 1,096 Non-income based tax payables 458 461 Accounts payable and equipment project payables $ 7,841 $ 7,900 |
POSTRETIREMENT BENEFIT PLANS (T
POSTRETIREMENT BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of benefit plans cost (income) other than the service cost are included in the caption Non-operating benefit income in our Consolidated and Combined Statement of Income (Loss). 2024 2023 Three months ended June 30 Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Service cost – operating $ 7 $ 8 $ 1 $ 7 $ 7 $ 2 Interest cost 139 56 9 140 62 10 Expected return on plan assets (187) (82) — (189) (87) — Amortization of net loss (gain) (45) 8 (11) (54) 1 (11) Amortization of prior service cost (credit) 2 (2) (15) 1 (2) (15) Curtailment/settlement gain — (10) — — (2) — Non-operating benefit costs (income) $ (92) $ (30) $ (16) $ (102) $ (28) $ (16) Net periodic expense (income) $ (85) $ (22) $ (15) $ (96) $ (21) $ (14) 2024 2023 Six months ended June 30 Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Service cost – operating $ 13 $ 16 $ 3 $ 13 $ 16 $ 3 Interest cost 274 113 18 281 123 21 Expected return on plan assets (372) (166) — (378) (173) — Amortization of net loss (gain) (92) 16 (21) (105) 2 (23) Amortization of prior service cost (credit) 3 (3) (30) 2 (3) (30) Curtailment/settlement gain — (10) — — (4) — Non-operating benefit costs (income) $ (186) $ (51) $ (32) $ (200) $ (55) $ (32) Net periodic expense (income) $ (173) $ (34) $ (30) $ (188) $ (40) $ (28) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Currency translation adjustment Benefit plans Cash flow hedges Total AOCI Balance as of April 1, 2024 $ (1,324) $ 604 $ 34 $ (686) Transfer or allocation of benefit plans – net of taxes of $—, $(207), and $— — (207) — (207) AOCI before reclasses – net of taxes of $45, $25, and $— (6) 9 33 36 Reclasses from AOCI – net of taxes of $—, $(1), and $— (a) (111) (74) 9 (176) Less: AOCI attributable to noncontrolling interests (1) — — (1) Balance as of June 30, 2024 $ (1,441) $ 333 $ 77 $ (1,031) Balance as of April 1, 2023 $ (1,381) $ 1,692 $ (26) $ 285 Transfer or allocation of benefit plans – net of taxes of $—, $(2), and $— — (4) — (4) AOCI before reclasses – net of taxes of $6, $(32), and $— 59 (1) (3) 55 Reclasses from AOCI – net of taxes of $—, $(1), and $— — (79) 6 (73) Less: AOCI attributable to noncontrolling interests (2) — — (2) Balance as of June 30, 2023 $ (1,320) $ 1,608 $ (24) $ 264 Balance as of January 1, 2024 $ (1,335) $ 674 $ 26 $ (635) Transfer or allocation of benefit plans – net of taxes of $—, $(207), and $— — (207) — (207) AOCI before reclasses – net of taxes of $33, $10, and $— (b) 5 8 29 42 Reclasses from AOCI – net of taxes of $—, $(2), and $— (a) (111) (141) 22 (230) Less: AOCI attributable to noncontrolling interests — 1 — 1 Balance as of June 30, 2024 $ (1,441) $ 333 $ 77 $ (1,031) Balance as of January 1, 2023 $ (1,445) $ 32 $ (43) $ (1,456) Transfer or allocation of benefit plans – net of taxes of $—, $68, and $— — 1,698 — 1,698 AOCI before reclasses – net of taxes of $6, $(20), and $— 103 33 8 145 Reclasses from AOCI – net of taxes of $—, $(1), and $— 18 (157) 11 (128) Less: AOCI attributable to noncontrolling interests (2) (2) — (4) Balance as of June 30, 2023 $ (1,320) $ 1,608 $ (24) $ 264 (a) The total reclassification of accumulated other comprehensive income (loss) included $111 million of currency translation adjustment related to the sale of a portion of Steam Power nuclear activities to EDF. See Notes 3 and 19 for further information. (b) Currency translation adjustment includes $39 million of accumulated other comprehensive income (loss) allocated to GE Vernova in connection with the Spin-Off. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Weighted Average Grant Date Fair Value and Share-Based Compensation Activity | The following tables provide the weighted average fair value of options, RSUs, and PSUs granted to employees during the three months ended June 30, 2024 and the related stock option valuation assumptions used in the Black-Scholes model. WEIGHTED AVERAGE GRANT DATE FAIR VALUE (In dollars) June 30, 2024 Stock options $ 69.56 RSUs 166.35 PSUs 160.85 SHARE-BASED COMPENSATION ACTIVITY Stock options RSUs Shares (in thousands) Weighted average exercise price (in dollars) Weighted average contractual term (in years) Intrinsic value (in millions) Shares (in thousands) Weighted average grant date fair value (in dollars) Weighted average vesting period (in years) Intrinsic value (in millions) Outstanding at April 2, 2024(a) 2,514 $ 101.32 3,797 $ 59.34 Granted 1,450 170.03 653 166.35 Exercised (412) 121.40 (288) 59.14 Forfeited — — (38) 64.78 Expired (9) 123.71 N/A N/A Outstanding at June 30, 2024 3,544 $ 127.04 6.0 $ 158 4,124 $ 76.76 1.4 $ 707 Exercisable at June 30, 2024 1,964 $ 99.28 3.0 $ 142 N/A N/A N/A N/A Expected to vest 1,078 $ 158.76 9.7 $ 14 3,771 $ 75.21 1.3 $ 647 (a) On April 2, 2024 , the Company began trading as an independent, publicly traded company under the stock symbol “GEV” on the New York Stock Exchange . The shares outstanding as of April 2, 2024 pertain to GE equity-based awards issued by GE in prior periods to employees of the Company that were converted to GE Vernova equity-based awards as part of the Spin-Off. The conversion to GE Vernova awards was considered a modification of the original award. Incremental fair value recognized was immaterial. |
Schedule of Stock Options Valuation Assumptions | KEY ASSUMPTIONS USED IN THE BLACK-SCHOLES VALUATION FOR STOCK OPTIONS June 30, 2024 Risk-free interest rate 4.3 % Dividend yield — Expected volatility 30 % Expected term (in years) 6.8 Strike price (in dollars) $170.03 |
Schedule of Compensation Expense and Other Stock-Based Compensation Data | SHARE-BASED COMPENSATION EXPENSE Three months ended June 30, 2024 Share-based compensation expense (pre-tax) $ 54 Income tax benefits (14) Share-based compensation expense (after-tax) $ 40 OTHER SHARE-BASED COMPENSATION DATA June 30, 2024 Unrecognized compensation expense as of June 30, 2024(a) $ 330 Cash received from stock options exercised for the three months ended June 30, 2024 50 Intrinsic value of stock options exercised and RSUs/PSUs vested in the three months ended June 30, 2024 71 |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | Three months ended June 30 Six months ended June 30 (In millions, except per share amounts) 2024 2023 2024 2023 Numerator: Net income (loss) $ 1,280 $ (149) $ 1,174 $ (495) Net loss (income) attributable to noncontrolling interests 14 (2) (10) 30 Net income (loss) attributable to GE Vernova $ 1,294 $ (150) $ 1,164 $ (465) Denominator: Basic weighted-average shares outstanding 274 274 274 274 Dilutive effect of common stock equivalents 5 — 2 — Diluted weighted-average shares outstanding 278 274 276 274 Basic earnings (loss) per share $ 4.72 $ (0.55) $ 4.25 $ (1.70) Diluted earnings (loss) per share $ 4.65 $ (0.55) $ 4.22 $ (1.70) Antidilutive securities(a) 2 — 2 — |
OTHER INCOME (EXPENSE) - NET (T
OTHER INCOME (EXPENSE) - NET (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income (Expense) | Three months ended June 30 Six months ended June 30 2024 2023 2024 2023 Equity method investment income (loss) (Note 11) $ 1 $ 7 $ 45 $ (63) Net interest and investment income (loss) 21 17 27 26 Purchases and sales of business interests(a) 855 93 851 95 Derivative instruments (Note 20) (10) (4) (13) (26) Licensing income 2 62 13 72 Other – net 12 17 30 25 Total other income (expense) – net $ 881 $ 193 $ 954 $ 129 (a) Included a pre-tax gain of $853 million related to the sale of a portion of Steam Power nuclear activities to EDF in the three and six months ended June 30, 2024. See Notes 3, 15 and 16 for further information. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Assets | The following table presents the gross fair values of our outstanding derivative instruments as of the dates indicated: GROSS FAIR VALUE OF OUTSTANDING DERIVATIVE INSTRUMENTS As of June 30, 2024 Gross Notional All other current assets All other assets All other current liabilities All other liabilities Foreign currency exchange contracts accounted for as hedges $ 4,728 $ 50 $ 129 $ 40 $ 54 Foreign currency exchange contracts 35,250 303 119 307 134 Commodity and other contracts 455 16 17 9 2 Derivatives not accounted for as hedges $ 35,706 $ 318 $ 136 $ 316 $ 136 Total gross derivatives $ 40,434 $ 368 $ 264 $ 357 $ 190 Netting adjustment(a) $ (271) $ (132) $ (269) $ (132) Net derivatives recognized in the Consolidated and Combined Statement of Financial Position $ 97 $ 133 $ 88 $ 59 As of December 31, 2023 Foreign currency exchange contracts accounted for as hedges $ 5,035 $ 39 $ 91 $ 28 $ 41 Foreign currency exchange contracts 33,832 361 169 364 142 Commodity and other contracts 476 10 8 16 1 Derivatives not accounted for as hedges $ 34,308 $ 371 $ 177 $ 380 $ 143 Total gross derivatives $ 39,343 $ 410 $ 268 $ 408 $ 184 Netting adjustment(a) $ (334) $ (150) $ (334) $ (150) Net derivatives recognized in the Consolidated and Combined Statement of Financial Position $ 76 $ 118 $ 74 $ 34 |
Schedule of Fair Value of Derivative Liabilities | The following table presents the gross fair values of our outstanding derivative instruments as of the dates indicated: GROSS FAIR VALUE OF OUTSTANDING DERIVATIVE INSTRUMENTS As of June 30, 2024 Gross Notional All other current assets All other assets All other current liabilities All other liabilities Foreign currency exchange contracts accounted for as hedges $ 4,728 $ 50 $ 129 $ 40 $ 54 Foreign currency exchange contracts 35,250 303 119 307 134 Commodity and other contracts 455 16 17 9 2 Derivatives not accounted for as hedges $ 35,706 $ 318 $ 136 $ 316 $ 136 Total gross derivatives $ 40,434 $ 368 $ 264 $ 357 $ 190 Netting adjustment(a) $ (271) $ (132) $ (269) $ (132) Net derivatives recognized in the Consolidated and Combined Statement of Financial Position $ 97 $ 133 $ 88 $ 59 As of December 31, 2023 Foreign currency exchange contracts accounted for as hedges $ 5,035 $ 39 $ 91 $ 28 $ 41 Foreign currency exchange contracts 33,832 361 169 364 142 Commodity and other contracts 476 10 8 16 1 Derivatives not accounted for as hedges $ 34,308 $ 371 $ 177 $ 380 $ 143 Total gross derivatives $ 39,343 $ 410 $ 268 $ 408 $ 184 Netting adjustment(a) $ (334) $ (150) $ (334) $ (150) Net derivatives recognized in the Consolidated and Combined Statement of Financial Position $ 76 $ 118 $ 74 $ 34 |
Schedule of Derivative Instruments in OCI | PRE-TAX GAINS (LOSSES) RECOGNIZED IN OCI RELATED TO CASH FLOW AND NET INVESTMENT HEDGES Three months ended June 30 Six months ended June 30 2024 2023 2024 2023 Cash flow hedges $ 23 $ 2 $ 36 $ 11 Net investment hedges 1 1 4 (4) |
Schedule of Derivative Instruments in Earnings | The tables below show the effect of our derivative financial instruments in the Consolidated and Combined Statement of Income (Loss): 2024 Three months ended June 30 Sales of equipment and services Cost of equipment and services Selling, general, and administrative expenses Other income (expense) – net Total amount of income and expense in the Consolidated and Combined Statement of Income (Loss) $ 8,204 $ 6,502 $ 938 $ 881 Foreign currency exchange contracts (4) 6 — — Interest rate contracts — — — — Effects of cash flow hedges $ (4) $ 6 $ — $ — Foreign currency exchange contracts (6) (12) (39) (10) Commodity and other contracts — (5) (4) — Effect of derivatives not designated as hedges $ (6) $ (18) $ (43) $ (10) 2023 Three months ended June 30 Sales of equipment and services Cost of equipment and services Selling, general, and administrative expenses Other income (expense) – net Total amount of income and expense in the Consolidated and Combined Statement of Income (Loss) $ 8,119 $ 6,973 $ 1,272 $ 193 Foreign currency exchange contracts (1) 2 — — Interest rate contracts — — — (2) Effects of cash flow hedges $ (1) $ 2 $ — $ (2) Foreign currency exchange contracts (1) 54 (31) (4) Commodity and other contracts — 14 — 1 Effect of derivatives not designated as hedges $ (1) $ 68 $ (31) $ (3) 2024 Six months ended June 30 Sales of equipment and services Cost of equipment and services Selling, general, and administrative expenses Other income (expense) – net Total amount of income and expense in the Consolidated and Combined Statement of Income (Loss) $ 15,463 $ 12,611 $ 2,140 $ 954 Foreign currency exchange contracts (7) 14 — — Interest rate contracts — — — — Effects of cash flow hedges $ (7) $ 14 $ — $ — Foreign currency exchange contracts (6) 17 (44) (13) Commodity and other contracts — (5) (15) — Effect of derivatives not designated as hedges $ (6) $ 12 $ (59) $ (13) 2023 Six months ended June 30 Sales of equipment and services Cost of equipment and services Selling, general, and administrative expenses Other income (expense) – net Total amount of income and expense in the Consolidated and Combined Statement of Income (Loss) $ 14,941 $ 12,876 $ 2,458 $ 129 Foreign currency exchange contracts (6) 3 — — Interest rate contracts — — — (2) Effects of cash flow hedges $ (6) $ 3 $ — $ (2) Foreign currency exchange contracts — 81 (31) (26) Commodity and other contracts — 25 — 1 Effect of derivatives not designated as hedges $ — $ 106 $ (31) $ (25) |
RESTRUCTURING CHARGES AND SEP_2
RESTRUCTURING CHARGES AND SEPARATION COSTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | This table is inclusive of all restructuring charges and the charges are shown below for the business where they originated. Separately, in our reported segment results, major 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. See Note 25 for further information. RESTRUCTURING AND OTHER CHARGES Three months ended June 30 Six months ended June 30 2024 2023 2024 2023 Workforce reductions $ 35 $ 60 $ 111 $ 105 Plant closures and associated costs and other asset write-downs 24 27 91 84 Acquisition/disposition net charges and other 3 12 8 22 Total restructuring and other charges $ 62 $ 99 $ 210 $ 211 Cost of equipment and services $ 15 $ 26 $ 120 $ 58 Selling, general, and administrative expenses 47 73 90 153 Total restructuring and other charges $ 62 $ 99 $ 210 $ 211 Power $ 48 $ 21 $ 97 $ 42 Wind 13 69 102 121 Electrification 7 5 17 35 Other (6) 4 (6) 13 Total restructuring and other charges(a) $ 62 $ 99 $ 210 $ 211 (a) Includes $23 million and $40 million for the three months ended and $93 million and $106 million for the six months ended June 30, 2024 and 2023, respectively, primarily in non-cash impairment, accelerated depreciation, and other charges not reflected in the liability table below. RESTRUCTURING LIABILITIES 2024 2023 Balance as of January 1 $ 276 $ 283 Additions 117 105 Payments (135) (118) Foreign exchange and other 88 3 Balance as of June 30 $ 346 $ 273 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | The following table disaggregates total revenues to external customers for sales of equipment and sales of services by segment: 2024 2023 Three months ended June 30 Equipment Services Total Equipment Services Total Power $ 1,284 $ 3,129 $ 4,413 $ 1,132 $ 2,961 $ 4,093 Wind 1,660 393 2,052 2,243 355 2,598 Electrification 1,246 475 1,721 1,011 415 1,426 Other 4 13 17 2 — 2 Total revenues $ 4,194 $ 4,010 $ 8,204 $ 4,388 $ 3,732 $ 8,119 2024 2023 Six months ended June 30 Equipment Services Total Equipment Services Total Power $ 2,468 $ 5,952 $ 8,420 $ 2,297 $ 5,577 $ 7,874 Wind 2,887 799 3,686 3,657 691 4,348 Electrification 2,450 878 3,328 1,919 796 2,715 Other 6 23 30 4 1 4 Total revenues $ 7,811 $ 7,652 $ 15,463 $ 7,877 $ 7,065 $ 14,941 TOTAL SEGMENT REVENUES BY BUSINESS UNIT Three months ended June 30 Six months ended June 30 2024 2023 2024 2023 Gas Power $ 3,459 $ 3,051 $ 6,500 $ 5,933 Nuclear Power 222 212 450 434 Hydro Power 182 220 363 397 Steam Power 592 648 1,176 1,189 Power $ 4,455 $ 4,131 $ 8,490 $ 7,953 Onshore Wind $ 1,560 $ 2,174 $ 2,619 $ 3,597 Offshore Wind 353 285 794 534 LM Wind Power 149 142 288 221 Wind $ 2,062 $ 2,601 $ 3,701 $ 4,352 Grid Solutions $ 1,142 $ 966 $ 2,251 $ 1,801 Power Conversion 313 217 548 400 Electrification Software 223 213 428 431 Solar & Storage Solutions 113 109 214 204 Electrification $ 1,790 $ 1,505 $ 3,441 $ 2,836 Total segment revenues $ 8,307 $ 8,237 $ 15,632 $ 15,140 SEGMENT EBITDA Three months ended June 30 Six months ended June 30 2024 2023 2024 2023 Power $ 613 $ 466 $ 958 $ 643 Wind (117) (259) (289) (519) Electrification 129 31 195 1 $ 626 $ 238 $ 864 $ 125 Corporate and other(a) (101) (35) (150) (107) Restructuring and other charges (62) (93) (210) (203) Purchases and sales of business interests 847 86 842 86 Russia and Ukraine charges(b) — (95) — (95) Separation (costs) benefits(c) 91 — 91 — Arbitration refund(d) 254 — 254 — Non-operating benefit income 134 143 269 282 Depreciation and amortization(e) (237) (218) (445) (422) Interest and other financial charges – net(f) 61 (8) 58 (16) Benefit (provision) for income taxes (333) (167) (397) (145) Net income (loss) $ 1,280 $ (149) $ 1,174 $ (495) (a) Includes interest and other financial charges of $1 million and $13 million and benefit for income taxes of $11 million and $45 million for the three months ended June 30, 2024 and 2023, respectively, as well as interest and other financial charges of $11 million and $25 million and benefit for income taxes of $64 million and $92 million for the six months ended June 30, 2024 and 2023, respectively, related to the Financial Services business as this business is managed on an after-tax basis due to its strategic investments in renewable energy tax equity vehicles. (b) Related to pre-tax charges primarily from impairments of receivables, inventory, contract assets, and equity method investments directly resulting from the ongoing conflict between Russia and Ukraine and sanctions, primarily related to our Power business. (c) Costs incurred in the Spin-Off and separation from GE, including system implementations, advisory fees, one-time stock option grant, and other one-time costs. In addition, includes $136 million benefit related to deferred intercompany profit that was recognized upon GE retaining the renewable energy U.S. tax equity investments. (d) Represents cash refund received in connection with an arbitration proceeding, constituting the payments previously made to the Fund, and excludes $52 million related to the interest on such amounts that was recorded in Interest and other financial charges – net. (e) Excludes depreciation and amortization expense related to Restructuring and other charges. (f) Consists of interest and other financial charges, net of interest income, other than financial interest related to our normal business operations primarily with customers. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | ||||
Apr. 02, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Sale of stock, number of shares issued (in shares) | 274 | ||||
Transfers from (to) Parent | $ 515 | $ 2,964 | $ 959 | ||
Transfer from parent, restricted | 325 | ||||
Cash, cash equivalents, and restricted cash | $ 4,200 | $ 5,779 | $ 1,620 | $ 1,551 | $ 2,067 |
Transition Services Agreement | |||||
Related Party Transaction [Line Items] | |||||
Period following distribution date | 2 years | ||||
Tax Matters Agreement | |||||
Related Party Transaction [Line Items] | |||||
Period following distribution date | 2 years |
DISPOSITIONS AND BUSINESSES H_3
DISPOSITIONS AND BUSINESSES HELD FOR SALE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from principal business dispositions | $ 639 | $ 0 | |
Disposed of by sale, not discontinued operations | Steam business, nuclear activities disposal | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from principal business dispositions | $ 639 | ||
Pre-tax gain (loss) on sale | 853 | ||
Gain (loss) on sale, after tax | $ 845 |
DISPOSITIONS AND BUSINESSES H_4
DISPOSITIONS AND BUSINESSES HELD FOR SALE - Schedule of Financial Information for Assets and Liabilities of Businesses Held for Sale (Details) - Held for sale - Steam business, nuclear activities disposal - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 0 | $ 603 |
Current receivables, inventories, and contract assets | 0 | 551 |
Property, plant, and equipment and intangibles – net | 0 | 237 |
Other assets | 0 | 53 |
Assets of business held for sale | 0 | 1,444 |
Liabilities | ||
Contract liabilities and deferred income | 0 | 1,001 |
Accounts payable and equipment project payables | 0 | 177 |
Other liabilities | 0 | 270 |
Liabilities of business held for sale | $ 0 | $ 1,448 |
CURRENT AND LONG-TERM RECEIVA_3
CURRENT AND LONG-TERM RECEIVABLES - Schedule of Current Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit losses | $ (525) | $ (515) | $ (628) | $ (674) |
Nonrelated party | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Customer receivables | 5,021 | 5,952 | ||
Non-income based tax receivables | 1,071 | 1,048 | ||
Supplier advances and other receivables | 853 | 924 | ||
Other receivables | 1,923 | 1,972 | ||
Allowance for credit losses | (525) | (515) | ||
Total current receivables – net | $ 6,419 | $ 7,409 |
CURRENT AND LONG-TERM RECEIVA_4
CURRENT AND LONG-TERM RECEIVABLES - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Allowance For Credit Losses [Roll Forward] | ||
Beginning balance | $ 515 | $ 674 |
Net additions (releases) charged to costs and expenses | 19 | (2) |
Write-offs, net | (9) | (54) |
Foreign exchange and other | 1 | 10 |
Ending balance | $ 525 | $ 628 |
CURRENT AND LONG-TERM RECEIVA_5
CURRENT AND LONG-TERM RECEIVABLES - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sale of current customer receivables | $ 550 | $ 501 |
Gas Power business | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Sale of current customer receivables | $ 77 |
CURRENT AND LONG-TERM RECEIVA_6
CURRENT AND LONG-TERM RECEIVABLES - Schedule of Long-Term Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Receivables [Abstract] | ||
Long-term customer receivables | $ 284 | $ 316 |
Supplier advances | 225 | 243 |
Non-income based tax receivables | 107 | 136 |
Other receivables | 276 | 190 |
Allowance for credit losses | (177) | (184) |
Total long-term receivables – net | $ 715 | $ 701 |
INVENTORIES, INCLUDING DEFERR_3
INVENTORIES, INCLUDING DEFERRED INVENTORY COSTS (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 5,300 | $ 4,685 |
Finished goods | 2,809 | 2,514 |
Deferred inventory costs | 1,237 | 1,054 |
Inventories, including deferred inventory costs | $ 9,346 | $ 8,253 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Abstract] | ||
Original cost | $ 12,099 | $ 11,907 |
Less: Accumulated depreciation and amortization | (7,580) | (7,347) |
Right-of-use operating lease assets | $ 649 | $ 668 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position | Property, plant, and equipment – net | Property, plant, and equipment – net |
Property, plant, and equipment – net | $ 5,168 | $ 5,228 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and amortization | $ 191 | $ 170 | $ 379 | $ 347 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Leases [Abstract] | |||||
Operating lease liability | $ 693 | $ 693 | $ 718 | ||
Operating lease liability, current, balance sheet location | All other current liabilities (Note 14) | All other current liabilities (Note 14) | All other current liabilities (Note 14) | ||
Operating lease liability, noncurrent, balance sheet location | All other liabilities (Note 14) | All other liabilities (Note 14) | All other liabilities (Note 14) | ||
Operating lease expense | $ 60 | $ 83 | $ 135 | $ 159 | |
Finance lease liability | $ 286 | $ 286 | $ 311 | ||
Finance lease liability, current, balance sheet location | All other current liabilities (Note 14) | All other current liabilities (Note 14) | All other current liabilities (Note 14) | ||
Finance lease liability, noncurrent, balance sheet location | All other liabilities (Note 14) | All other liabilities (Note 14) | All other liabilities (Note 14) |
ACQUISITIONS, GOODWILL, AND O_3
ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill | |
Balance at beginning of period | $ 4,437 |
Currency exchange and other | (83) |
Balance at end of period | 4,354 |
Operating segments | Power | |
Goodwill | |
Balance at beginning of period | 308 |
Currency exchange and other | 2 |
Balance at end of period | 311 |
Operating segments | Wind | |
Goodwill | |
Balance at beginning of period | 3,204 |
Currency exchange and other | (83) |
Balance at end of period | 3,122 |
Operating segments | Electrification | |
Goodwill | |
Balance at beginning of period | 925 |
Currency exchange and other | (3) |
Balance at end of period | $ 921 |
ACQUISITIONS, GOODWILL, AND O_4
ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Decrease in intangible assets | $ 117 | |||
Amortization of intangible assets | $ 63 | $ 68 | $ 126 | $ 123 |
CONTRACT AND OTHER DEFERRED A_3
CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME- Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Capitalized Contract Cost [Line Items] | ||
Increase (decrease) in contract and other deferred assets | $ 357 | |
Increase (decrease) in contract liabilities and deferred income | 1,482 | |
Increase (decrease) to net contractual service agreements due to revenues recognized | 2,537 | |
Increase (decrease) to net contractual service agreements due to billings | (2,300) | |
Increase (decrease) to net contractual service agreements due to net favorable (unfavorable) change in estimated profitability | (89) | |
Revenue recognized included in contract liability | 5,283 | $ 4,960 |
Performance obligations expected to be satisfied | 115,476 | |
Equipment | ||
Capitalized Contract Cost [Line Items] | ||
Performance obligations expected to be satisfied | $ 41,561 | |
Equipment | Performance obligation satisfaction, period one | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||
Capitalized Contract Cost [Line Items] | ||
Performance obligation expected to be satisfied (as a percent) | 47% | |
Performance obligations expected to be satisfied, expected timing | 1 year | |
Equipment | Performance obligation satisfaction, period two | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||
Capitalized Contract Cost [Line Items] | ||
Performance obligation expected to be satisfied (as a percent) | 69% | |
Performance obligations expected to be satisfied, expected timing | 2 years | |
Equipment | Performance obligation satisfaction, period three | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||
Capitalized Contract Cost [Line Items] | ||
Performance obligation expected to be satisfied (as a percent) | 91% | |
Performance obligations expected to be satisfied, expected timing | 5 years | |
Services | ||
Capitalized Contract Cost [Line Items] | ||
Performance obligations expected to be satisfied | $ 73,915 | |
Services | Performance obligation satisfaction, period one | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||
Capitalized Contract Cost [Line Items] | ||
Performance obligation expected to be satisfied (as a percent) | 17% | |
Performance obligations expected to be satisfied, expected timing | 1 year | |
Services | Performance obligation satisfaction, period two | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||
Capitalized Contract Cost [Line Items] | ||
Performance obligation expected to be satisfied (as a percent) | 52% | |
Performance obligations expected to be satisfied, expected timing | 5 years | |
Services | Performance obligation satisfaction, period three | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||
Capitalized Contract Cost [Line Items] | ||
Performance obligation expected to be satisfied (as a percent) | 77% | |
Performance obligations expected to be satisfied, expected timing | 10 years | |
Services | Performance obligation satisfaction, period four | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||
Capitalized Contract Cost [Line Items] | ||
Performance obligation expected to be satisfied (as a percent) | 91% | |
Performance obligations expected to be satisfied, expected timing | 15 years |
CONTRACT AND OTHER DEFERRED A_4
CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME - Schedule of Contract Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current contract assets | $ 8,702 | $ 8,339 |
Non-current contract and other deferred assets | 614 | 621 |
Total contract and other deferred assets | 9,316 | 8,960 |
Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current contract assets | 5,346 | 5,201 |
Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current contract assets | 3,356 | 3,138 |
Power | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current contract assets | 7,042 | 6,880 |
Non-current contract and other deferred assets | 593 | 602 |
Total contract and other deferred assets | 7,635 | 7,482 |
Power | Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current contract assets | 5,346 | 5,201 |
Power | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current contract assets | 1,696 | 1,679 |
Wind | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current contract assets | 595 | 392 |
Non-current contract and other deferred assets | 11 | 14 |
Total contract and other deferred assets | 606 | 406 |
Wind | Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current contract assets | 0 | 0 |
Wind | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current contract assets | 595 | 392 |
Electrification | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current contract assets | 1,065 | 1,067 |
Non-current contract and other deferred assets | 11 | 5 |
Total contract and other deferred assets | 1,076 | 1,072 |
Electrification | Services | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current contract assets | 0 | 0 |
Electrification | Equipment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current contract assets | $ 1,065 | $ 1,067 |
CONTRACT AND OTHER DEFERRED A_5
CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME - Schedule of Contract Liabilities and Deferred Income (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Capitalized Contract Cost [Line Items] | ||
Current deferred income | $ 277 | $ 361 |
Contract liabilities and current deferred income | 16,536 | 15,074 |
Non-current deferred income | 193 | 173 |
Total contract liabilities and deferred income | 16,728 | 15,247 |
Services | ||
Capitalized Contract Cost [Line Items] | ||
Service agreement liabilities | 1,806 | 1,810 |
Equipment | ||
Capitalized Contract Cost [Line Items] | ||
Service agreement liabilities | 14,452 | 12,903 |
Power | ||
Capitalized Contract Cost [Line Items] | ||
Current deferred income | 10 | 20 |
Contract liabilities and current deferred income | 8,143 | 7,562 |
Non-current deferred income | 49 | 48 |
Total contract liabilities and deferred income | 8,192 | 7,610 |
Power | Services | ||
Capitalized Contract Cost [Line Items] | ||
Service agreement liabilities | 1,806 | 1,810 |
Power | Equipment | ||
Capitalized Contract Cost [Line Items] | ||
Service agreement liabilities | 6,327 | 5,732 |
Wind | ||
Capitalized Contract Cost [Line Items] | ||
Current deferred income | 169 | 228 |
Contract liabilities and current deferred income | 5,140 | 5,047 |
Non-current deferred income | 118 | 90 |
Total contract liabilities and deferred income | 5,258 | 5,137 |
Wind | Services | ||
Capitalized Contract Cost [Line Items] | ||
Service agreement liabilities | 0 | 0 |
Wind | Equipment | ||
Capitalized Contract Cost [Line Items] | ||
Service agreement liabilities | 4,970 | 4,819 |
Electrification | ||
Capitalized Contract Cost [Line Items] | ||
Current deferred income | 98 | 113 |
Contract liabilities and current deferred income | 3,252 | 2,465 |
Non-current deferred income | 26 | 35 |
Total contract liabilities and deferred income | 3,278 | 2,500 |
Electrification | Services | ||
Capitalized Contract Cost [Line Items] | ||
Service agreement liabilities | 0 | 0 |
Electrification | Equipment | ||
Capitalized Contract Cost [Line Items] | ||
Service agreement liabilities | $ 3,154 | $ 2,352 |
CURRENT AND ALL OTHER ASSETS (D
CURRENT AND ALL OTHER ASSETS (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Increase (decrease) in other current assets | $ 112 |
Increase (decrease) in other assets | $ 252 |
EQUITY METHOD INVESTMENTS (Deta
EQUITY METHOD INVESTMENTS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment balance | $ 2,405 | $ 2,405 | $ 3,555 | |||
Equity method income (loss) | 1 | $ 7 | 45 | $ (63) | ||
Provision (benefit) for income taxes | 322 | 122 | 333 | 53 | ||
Separation costs (benefits) | (91) | |||||
Equipment | Cost of equipment and services | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Separation costs (benefits) | (136) | |||||
Operating segments | Power | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment balance | 1,034 | 1,034 | 1,003 | |||
Equity method income (loss) | 28 | 34 | 40 | 45 | ||
Operating segments | Wind | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment balance | 48 | 48 | 46 | |||
Equity method income (loss) | 0 | 0 | 1 | (3) | ||
Operating segments | Electrification | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment balance | 824 | 824 | 788 | |||
Equity method income (loss) | 12 | 24 | 42 | 37 | ||
Other | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment balance | 500 | 500 | $ 1,718 | |||
Equity method income (loss) | (40) | (51) | (38) | (141) | ||
Other | Renewable energy tax equity investments | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment balance | $ 1,244 | $ 1,244 | ||||
Provision (benefit) for income taxes | $ (53) | $ (55) | $ (100) |
ACCOUNTS PAYABLE AND EQUIPMEN_3
ACCOUNTS PAYABLE AND EQUIPMENT PROJECT PAYABLES - Schedule of Accounts Payable and Equipment Project Payables (Details) - Nonrelated party - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Supplier Finance Program [Line Items] | ||
Trade payables | $ 4,700 | $ 4,701 |
Supply chain finance programs | 1,626 | 1,642 |
Equipment project payables | 1,057 | 1,096 |
Non-income based tax payables | 458 | 461 |
Accounts payable and equipment project payables | $ 7,841 | $ 7,900 |
ACCOUNTS PAYABLE AND EQUIPMEN_4
ACCOUNTS PAYABLE AND EQUIPMENT PROJECT PAYABLES - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Payables and Accruals [Abstract] | ||
Supply chain finance program, payments | $ 1,791 | $ 2,921 |
POSTRETIREMENT BENEFIT PLANS -
POSTRETIREMENT BENEFIT PLANS - Effect on Operations of Pension Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Principal pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost – operating | $ 7,000 | $ 7,000 | $ 13,000 | $ 13,000 |
Interest cost | 139,000 | 140,000 | 274,000 | 281,000 |
Expected return on plan assets | (187,000) | (189,000) | (372,000) | (378,000) |
Amortization of net loss (gain) | (45,000) | (54,000) | (92,000) | (105,000) |
Amortization of prior service cost (credit) | 2,000 | 1,000 | 3,000 | 2,000 |
Curtailment/settlement gain | 0 | 0 | 0 | 0 |
Non-operating benefit costs (income) | (92,000) | (102,000) | (186,000) | (200,000) |
Net periodic expense (income) | (85,000) | (96,000) | (173,000) | (188,000) |
Other pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost – operating | 8,000 | 7,000 | 16,000 | 16,000 |
Interest cost | 56,000 | 62,000 | 113,000 | 123,000 |
Expected return on plan assets | (82,000) | (87,000) | (166,000) | (173,000) |
Amortization of net loss (gain) | 8,000 | 1,000 | 16,000 | 2,000 |
Amortization of prior service cost (credit) | (2,000) | (2,000) | (3,000) | (3,000) |
Curtailment/settlement gain | (10,000) | (2,000) | (10,000) | (4,000) |
Non-operating benefit costs (income) | (30,000) | (28,000) | (51,000) | (55,000) |
Net periodic expense (income) | (22,000) | (21,000) | (34,000) | (40,000) |
Principal retiree benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost – operating | 1,000 | 2,000 | 3,000 | 3,000 |
Interest cost | 9,000 | 10,000 | 18,000 | 21,000 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net loss (gain) | (11,000) | (11,000) | (21,000) | (23,000) |
Amortization of prior service cost (credit) | (15,000) | (15,000) | (30,000) | (30,000) |
Curtailment/settlement gain | 0 | 0 | 0 | 0 |
Non-operating benefit costs (income) | (16,000) | (16,000) | (32,000) | (32,000) |
Net periodic expense (income) | $ (15,000) | $ (14,000) | $ (30,000) | $ (28,000) |
POSTRETIREMENT BENEFIT PLANS _2
POSTRETIREMENT BENEFIT PLANS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Retirement Benefits [Abstract] | ||||
Defined contribution plan costs | $ 45 | $ 40 | $ 81 | $ 71 |
CURRENT AND ALL OTHER LIABILI_2
CURRENT AND ALL OTHER LIABILITIES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Other Liabilities Disclosure [Abstract] | |
Increase (decrease) in other current liabilities | $ 293 |
Increase (decrease) in all other liabilities | $ 260 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Apr. 02, 2024 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 20.10% | 22.10% | |
Foreign deferred tax liabilities | $ 287 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | $ 9,980 | $ 10,412 | $ 8,380 | $ 11,607 |
Transfer or allocation of benefit plans – net of taxes | (207) | (4) | (207) | 1,698 |
AOCI before reclass, net of taxes | 36 | 55 | 42 | 145 |
Reclass from AOCI, net of taxes | (176) | (73) | (230) | (128) |
Less: AOCI attributable to noncontrolling interests | (1) | (2) | 1 | (4) |
Ending balance | 10,049 | 10,802 | 10,049 | 10,802 |
Total AOCI | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (686) | 285 | (635) | (1,456) |
Ending balance | (1,031) | 264 | (1,031) | 264 |
Currency translation adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (1,324) | (1,381) | (1,335) | (1,445) |
Transfer or allocation of benefit plans – net of taxes | 0 | 0 | 0 | 0 |
AOCI before reclass, net of taxes | (6) | 59 | 5 | 103 |
Reclass from AOCI, net of taxes | (111) | 0 | (111) | 18 |
Less: AOCI attributable to noncontrolling interests | (1) | (2) | 0 | (2) |
Ending balance | (1,441) | (1,320) | (1,441) | (1,320) |
Transfer or allocation of benefit plans, tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) before reclass, tax | 45 | 6 | 33 | 6 |
Reclass from AOCI, taxes | 0 | 0 | 0 | 0 |
Spin-Off related adjustments | 39 | |||
Currency translation adjustment | Steam business, nuclear activities disposal | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Reclass from AOCI, net of taxes | 111 | |||
Benefit plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 604 | 1,692 | 674 | 32 |
Transfer or allocation of benefit plans – net of taxes | (207) | (4) | (207) | 1,698 |
AOCI before reclass, net of taxes | 9 | (1) | 8 | 33 |
Reclass from AOCI, net of taxes | (74) | (79) | (141) | (157) |
Less: AOCI attributable to noncontrolling interests | 0 | 0 | 1 | (2) |
Ending balance | 333 | 1,608 | 333 | 1,608 |
Transfer or allocation of benefit plans, tax | (207) | (2) | (207) | 68 |
Other comprehensive income (loss) before reclass, tax | 25 | (32) | 10 | (20) |
Reclass from AOCI, taxes | (1) | (1) | (2) | (1) |
Cash flow hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 34 | (26) | 26 | (43) |
Transfer or allocation of benefit plans – net of taxes | 0 | 0 | 0 | 0 |
AOCI before reclass, net of taxes | 33 | (3) | 29 | 8 |
Reclass from AOCI, net of taxes | 9 | 6 | 22 | 11 |
Less: AOCI attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Ending balance | 77 | (24) | 77 | (24) |
Transfer or allocation of benefit plans, tax | 0 | 0 | 0 | |
Other comprehensive income (loss) before reclass, tax | 0 | 0 | 0 | 0 |
Reclass from AOCI, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) - Narrative (Details) - shares | Jun. 30, 2024 | Apr. 02, 2024 |
Equity [Abstract] | ||
Common stock, shares outstanding (in shares) | 274,701,743 | 274,085,523 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized for issuance | 25,000 |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period | 10 years |
Stock options | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Stock options | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units outstanding (in shares) | 1,162 |
Units outstanding (in dollars per share) | $ / shares | $ 142.60 |
Intrinsic value, outstanding | $ | $ 199 |
Weighted average vesting period, outstanding | 1 year 10 months 24 days |
SHARE-BASED COMPENSATION - Weig
SHARE-BASED COMPENSATION - Weighted Average Grant Date Fair Value (Details) - $ / shares | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value of stock options (in dollars per share) | $ 69.56 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value (in dollars per share) | 166.35 | $ 166.35 |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value (in dollars per share) | $ 160.85 |
SHARE-BASED COMPENSATION - Sche
SHARE-BASED COMPENSATION - Schedule of Stock Options Valuation Assumptions (Details) - Stock options | 3 Months Ended |
Jun. 30, 2024 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 4.30% |
Dividend yield | 0% |
Expected volatility | 30% |
Expected term (in years) | 6 years 9 months 18 days |
Strike price (in dollars per share) | $ 170.03 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-Based Compensation Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | |
Shares (in thousands) | ||
Outstanding at beginning of period (in shares) | 2,514 | |
Granted (in shares) | 1,450 | |
Exercised (in shares) | (412) | |
Forfeited (in shares) | 0 | |
Expired (in shares) | (9) | |
Outstanding at end of period (in shares) | 3,544 | 3,544 |
Exercisable (in shares) | 1,964 | 1,964 |
Expected to vest (in shares) | 1,078 | 1,078 |
Weighted average exercise price (in dollars) | ||
Outstanding at beginning of period (in dollars per share) | $ 101.32 | |
Granted (in dollars per share) | 170.03 | |
Exercised (in dollars per share) | 121.40 | |
Forfeited (in dollars per share) | 0 | |
Expired (in dollars per share) | 123.71 | |
Outstanding at end of period (in dollars per share) | $ 127.04 | 127.04 |
Exercisable (in dollars per share) | 99.28 | 99.28 |
Expected to vest (in dollars per share) | $ 158.76 | $ 158.76 |
Weighted average contractual term (in years) | ||
Stock options, weighted average remaining contractual term, outstanding | 6 years | |
Stock options, weighted average remaining contractual term, exercisable | 3 years | |
Stock options, weighted average remaining contractual term, expected to vest | 9 years 8 months 12 days | |
Intrinsic value (in millions) | ||
Stock options, intrinsic value, outstanding | $ 158 | $ 158 |
Stock options, intrinsic value, exercisable | 142 | 142 |
Stock options, intrinsic value, expected to vest | $ 14 | $ 14 |
RSUs | ||
Shares (in thousands) | ||
Outstanding at beginning of period (in shares) | 3,797 | |
Granted (in shares) | 653 | |
Exercised (in shares) | (288) | |
Forfeited (in shares) | (38) | |
Outstanding at end of period (in shares) | 4,124 | 4,124 |
Expected to vest (in shares) | 3,771 | 3,771 |
Weighted average grant date fair value (in dollars) | ||
Outstanding at beginning of period (in dollars per share) | $ 59.34 | |
Granted (in dollars per share) | $ 166.35 | 166.35 |
Exercised (in dollars per share) | 59.14 | |
Forfeited (in dollars per share) | 64.78 | |
Outstanding at end of period (in dollars per share) | 76.76 | 76.76 |
Expected to vest (in dollars per share) | $ 75.21 | $ 75.21 |
Weighted average vesting period (in years) | ||
Weighted average vesting period, outstanding | 1 year 4 months 24 days | |
Weighted average vesting period, expected to vest | 1 year 3 months 18 days | |
Intrinsic value (in millions) | ||
Intrinsic value, outstanding | $ 707 | $ 707 |
Intrinsic value, expected to vest | $ 647 | $ 647 |
SHARE-BASED COMPENSATION - Sc_2
SHARE-BASED COMPENSATION - Schedule of Share-Based Compensation Expense (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Share-based compensation expense (pre-tax) | $ 54 |
Income tax benefits | (14) |
Share-based compensation expense (after-tax) | $ 40 |
SHARE-BASED COMPENSATION - Sc_3
SHARE-BASED COMPENSATION - Schedule of Other Share-Based Compensation Data (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Unrecognized compensation expense | $ 330 |
Cash received from stock options exercised | 50 |
Intrinsic value of stock options exercised and RSUs/PSUs vested | $ 71 |
Weighted average period of recognition | 1 year 3 months 18 days |
EARNINGS PER SHARE INFORMATIO_2
EARNINGS PER SHARE INFORMATION - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Apr. 02, 2024 | |
Earnings Per Share [Abstract] | |||||
Common stock, shares outstanding (in shares) | 274,701,743 | 274,701,743 | 274,085,523 | ||
Basic weighted-average shares outstanding (in shares) | 274,000,000 | 274,000,000 | 274,000,000 | 274,000,000 | |
Diluted weighted-average shares outstanding (in shares) | 278,000,000 | 274,000,000 | 276,000,000 | 274,000,000 |
EARNINGS PER SHARE INFORMATIO_3
EARNINGS PER SHARE INFORMATION - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||
Net income (loss) | $ 1,280 | $ (149) | $ 1,174 | $ (495) |
Net loss (income) attributable to noncontrolling interests | 14 | (2) | (10) | 30 |
Net income (loss) attributable to GE Vernova | $ 1,294 | $ (150) | $ 1,164 | $ (465) |
Denominator: | ||||
Basic weighted-average shares outstanding (in shares) | 274 | 274 | 274 | 274 |
Dilutive effect of common stock equivalents (in shares) | 5 | 0 | 2 | 0 |
Diluted weighted-average shares outstanding (in shares) | 278 | 274 | 276 | 274 |
Basic earnings (loss) per share (in dollars per share) | $ 4.72 | $ (0.55) | $ 4.25 | $ (1.70) |
Diluted earnings (loss) per share (in dollars per share) | $ 4.65 | $ (0.55) | $ 4.22 | $ (1.70) |
Antidilutive securities (in shares) | 2 | 0 | 2 | 0 |
OTHER INCOME (EXPENSE) - NET (D
OTHER INCOME (EXPENSE) - NET (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Equity method investment income (loss) (Note 11) | $ 1 | $ 7 | $ 45 | $ (63) |
Net interest and investment income (loss) | 21 | 17 | 27 | 26 |
Purchases and sales of business interests | 855 | 93 | 851 | 95 |
Derivative instruments (Note 20) | (10) | (4) | (13) | (26) |
Licensing income | 2 | 62 | 13 | 72 |
Other – net | 12 | 17 | 30 | 25 |
Total other income (expense) – net | 881 | $ 193 | $ 954 | $ 129 |
Steam business, nuclear activities disposal | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pre-tax gain on disposition of business | $ 853 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Reclassified net gains (losses) from AOCI into earnings | $ 176 | $ 73 | $ 230 | $ 128 | |
AOCI related to net investment hedges | 34 | 34 | |||
Gain (loss) from cash flow effectiveness | 10 | (5) | 11 | (9) | |
Cash flow hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Reclassified net gains (losses) from AOCI into earnings | $ (9) | $ (6) | $ (22) | $ (11) | |
Foreign currency contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, remaining maturity (up to) | 15 years | 15 years | |||
Cash flow hedges | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
AOCI, cash flow hedge, cumulative gain (loss) | $ 77 | $ 77 | |||
Pre-tax loss to be reclassified to earnings in next 12 months | $ 51 | ||||
Maximum length of time hedged in cash flow hedge | 11 years | ||||
Cash flow hedges | Non-consolidated joint ventures | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
AOCI, cash flow hedge, cumulative gain (loss) | 34 | $ 34 | |||
Minimum | Foreign currency contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, term of contract | 1 month | ||||
Maximum | Foreign currency contracts | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, term of contract | 10 months | ||||
Carrying amount (net) | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Loans and other receivables | 498 | $ 498 | $ 328 | ||
Estimated fair value | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Loans and other receivables | $ 495 | $ 495 | $ 324 |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Fair Value of Derivatives (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Gross Notional | $ 40,434 | $ 39,343 |
All other current assets | ||
All other current assets | ||
Gross derivatives | 368 | 410 |
Netting adjustment | (271) | (334) |
Net derivatives recognized in the Consolidated and Combined Statement of Financial Position | 97 | 76 |
All other assets | ||
All other current assets | ||
Gross derivatives | 264 | 268 |
Netting adjustment | (132) | (150) |
Net derivatives recognized in the Consolidated and Combined Statement of Financial Position | 133 | 118 |
All other current liabilities | ||
All other current liabilities | ||
Gross derivatives | 357 | 408 |
Netting adjustment | (269) | (334) |
Net derivatives recognized in the Consolidated and Combined Statement of Financial Position | 88 | 74 |
All other liabilities | ||
All other current liabilities | ||
Gross derivatives | 190 | 184 |
Netting adjustment | (132) | (150) |
Net derivatives recognized in the Consolidated and Combined Statement of Financial Position | 59 | 34 |
Derivatives accounted for as hedges | ||
Derivative [Line Items] | ||
Gross Notional | 4,728 | 5,035 |
Derivatives accounted for as hedges | All other current assets | ||
All other current assets | ||
Gross derivatives | 50 | 39 |
Derivatives accounted for as hedges | All other assets | ||
All other current assets | ||
Gross derivatives | 129 | 91 |
Derivatives accounted for as hedges | All other current liabilities | ||
All other current liabilities | ||
Gross derivatives | 40 | 28 |
Derivatives accounted for as hedges | All other liabilities | ||
All other current liabilities | ||
Gross derivatives | 54 | 41 |
Derivatives not accounted for as hedges | ||
Derivative [Line Items] | ||
Gross Notional | 35,706 | 34,308 |
Derivatives not accounted for as hedges | All other current assets | ||
All other current assets | ||
Gross derivatives | 318 | 371 |
Derivatives not accounted for as hedges | All other assets | ||
All other current assets | ||
Gross derivatives | 136 | 177 |
Derivatives not accounted for as hedges | All other current liabilities | ||
All other current liabilities | ||
Gross derivatives | 316 | 380 |
Derivatives not accounted for as hedges | All other liabilities | ||
All other current liabilities | ||
Gross derivatives | 136 | 143 |
Derivatives not accounted for as hedges | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Gross Notional | 35,250 | 33,832 |
Derivatives not accounted for as hedges | Foreign currency exchange contracts | All other current assets | ||
All other current assets | ||
Gross derivatives | 303 | 361 |
Derivatives not accounted for as hedges | Foreign currency exchange contracts | All other assets | ||
All other current assets | ||
Gross derivatives | 119 | 169 |
Derivatives not accounted for as hedges | Foreign currency exchange contracts | All other current liabilities | ||
All other current liabilities | ||
Gross derivatives | 307 | 364 |
Derivatives not accounted for as hedges | Foreign currency exchange contracts | All other liabilities | ||
All other current liabilities | ||
Gross derivatives | 134 | 142 |
Derivatives not accounted for as hedges | Commodity and other contracts | ||
Derivative [Line Items] | ||
Gross Notional | 455 | 476 |
Derivatives not accounted for as hedges | Commodity and other contracts | All other current assets | ||
All other current assets | ||
Gross derivatives | 16 | 10 |
Derivatives not accounted for as hedges | Commodity and other contracts | All other assets | ||
All other current assets | ||
Gross derivatives | 17 | 8 |
Derivatives not accounted for as hedges | Commodity and other contracts | All other current liabilities | ||
All other current liabilities | ||
Gross derivatives | 9 | 16 |
Derivatives not accounted for as hedges | Commodity and other contracts | All other liabilities | ||
All other current liabilities | ||
Gross derivatives | $ 2 | $ 1 |
FINANCIAL INSTRUMENTS - Effects
FINANCIAL INSTRUMENTS - Effects of Derivatives on AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Cash flow hedges | $ 23 | $ 2 | $ 36 | $ 11 |
Net investment hedges | $ 1 | $ 1 | $ 4 | $ (4) |
FINANCIAL INSTRUMENTS - Effec_2
FINANCIAL INSTRUMENTS - Effects of Derivatives on Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Sales | $ 8,204 | $ 8,119 | $ 15,463 | $ 14,941 |
Cost of equipment and services | 6,502 | 6,973 | 12,611 | 12,876 |
Selling, general, and administrative expenses | 938 | 1,272 | 2,140 | 2,458 |
Other income (expense) – net | 881 | 193 | 954 | 129 |
Sales of equipment and services | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effects of cash flow hedges | (4) | (1) | (7) | (6) |
Effect of derivatives not designated as hedges | (6) | (1) | (6) | 0 |
Cost of equipment and services | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effects of cash flow hedges | 6 | 2 | 14 | 3 |
Effect of derivatives not designated as hedges | (18) | 68 | 12 | 106 |
Selling, general, and administrative expenses | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effects of cash flow hedges | 0 | 0 | 0 | 0 |
Effect of derivatives not designated as hedges | (43) | (31) | (59) | (31) |
Other income (expense) – net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effects of cash flow hedges | 0 | (2) | 0 | (2) |
Effect of derivatives not designated as hedges | (10) | (3) | (13) | (25) |
Foreign currency exchange contracts | Sales of equipment and services | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effects of cash flow hedges | (4) | (1) | (7) | (6) |
Effect of derivatives not designated as hedges | (6) | (1) | (6) | 0 |
Foreign currency exchange contracts | Cost of equipment and services | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effects of cash flow hedges | 6 | 2 | 14 | 3 |
Effect of derivatives not designated as hedges | (12) | 54 | 17 | 81 |
Foreign currency exchange contracts | Selling, general, and administrative expenses | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effects of cash flow hedges | 0 | 0 | 0 | 0 |
Effect of derivatives not designated as hedges | (39) | (31) | (44) | (31) |
Foreign currency exchange contracts | Other income (expense) – net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effects of cash flow hedges | 0 | 0 | 0 | 0 |
Effect of derivatives not designated as hedges | (10) | (4) | (13) | (26) |
Interest rate contracts | Sales of equipment and services | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effects of cash flow hedges | 0 | 0 | 0 | 0 |
Interest rate contracts | Cost of equipment and services | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effects of cash flow hedges | 0 | 0 | 0 | 0 |
Interest rate contracts | Selling, general, and administrative expenses | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effects of cash flow hedges | 0 | 0 | 0 | 0 |
Interest rate contracts | Other income (expense) – net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effects of cash flow hedges | 0 | (2) | 0 | (2) |
Commodity and other contracts | Sales of equipment and services | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Commodity and other contracts | Cost of equipment and services | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect of derivatives not designated as hedges | (5) | 14 | (5) | 25 |
Commodity and other contracts | Selling, general, and administrative expenses | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect of derivatives not designated as hedges | (4) | 0 | (15) | 0 |
Commodity and other contracts | Other income (expense) – net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Effect of derivatives not designated as hedges | $ 0 | $ 1 | $ 0 | $ 1 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Variable Interest Entity [Line Items] | ||
Assets | $ 48,052 | $ 46,121 |
Liabilities | 38,003 | 37,741 |
Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 77 | 122 |
Liabilities | 119 | 156 |
Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 114 | 1,323 |
Unconsolidated VIEs | Financial Services | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 59 | $ 1,272 |
COMMITMENTS, GUARANTEES, PROD_2
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 02, 2024 | Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Guarantor Obligations [Line Items] | |||||
Investment commitments | $ 70 | $ 70 | $ 70 | ||
Unfunded lending commitments | 68 | 68 | 68 | ||
Transfer from parent, restricted | $ 325 | ||||
Liability for product warranties | 1,292 | 1,292 | 1,292 | $ 1,414 | |
Environmental remediation and worker exposure claims | 136 | 136 | 136 | 127 | |
Asset retirement obligation | 588 | 588 | 588 | 581 | |
Nuclear decommissioning obligations | 522 | 522 | 522 | 519 | |
Alstom legacy matters | |||||
Guarantor Obligations [Line Items] | |||||
Loss contingency accrual | 327 | 327 | 327 | $ 393 | |
Settlement, amount awarded to other party | 267 | ||||
Alstom legacy matters | The Ministry of Energy | |||||
Guarantor Obligations [Line Items] | |||||
Settlement, amount awarded to other party | 141 | ||||
Payments for legal settlements | 62 | ||||
Credit support | |||||
Guarantor Obligations [Line Items] | |||||
Maximum exposure | 726 | 726 | 726 | ||
Guarantee obligations, liability | 6 | 6 | 6 | ||
Indemnification agreements | |||||
Guarantor Obligations [Line Items] | |||||
Maximum exposure | 905 | 905 | 905 | ||
Guarantee obligations, liability | 698 | 698 | 698 | ||
Transfer from parent, restricted | 325 | ||||
Indemnification agreements | GE | |||||
Guarantor Obligations [Line Items] | |||||
Guarantee obligations, liability | $ 303 | $ 303 | $ 303 |
RESTRUCTURING CHARGES AND SEP_3
RESTRUCTURING CHARGES AND SEPARATION COSTS - Schedule of Restructuring and Other Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 62 | $ 99 | $ 210 | $ 211 |
Cost of equipment and services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 15 | 26 | 120 | 58 |
Selling, general, and administrative expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 47 | 73 | 90 | 153 |
Operating segments | Power | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 48 | 21 | 97 | 42 |
Operating segments | Wind | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 13 | 69 | 102 | 121 |
Operating segments | Electrification | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 7 | 5 | 17 | 35 |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | (6) | 4 | (6) | 13 |
Workforce reductions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 35 | 60 | 111 | 105 |
Plant closures and associated costs and other asset write-downs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 24 | 27 | 91 | 84 |
Acquisition/disposition net charges and other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | 3 | 12 | 8 | 22 |
Non-cash asset impairment, accelerated depreciation and other charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 23 | $ 40 | $ 93 | $ 106 |
RESTRUCTURING CHARGES AND SEP_4
RESTRUCTURING CHARGES AND SEPARATION COSTS - Changes in Restructuring Liability (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 276 | $ 283 |
Additions | 117 | 105 |
Payments | (135) | (118) |
Foreign exchange and other | 88 | 3 |
Ending balance | $ 346 | $ 273 |
RESTRUCTURING CHARGES AND SEP_5
RESTRUCTURING CHARGES AND SEPARATION COSTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2024 | Oct. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Separation costs (benefits) | $ (91) | |
Equipment | Cost of equipment and services | ||
Restructuring Cost and Reserve [Line Items] | ||
Separation costs (benefits) | $ (136) | |
Wind business restructuring program | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring, expected cost | $ 600 |
RELATED PARTIES (Details)
RELATED PARTIES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | ||||||
Sales | $ 8,204 | $ 8,119 | $ 15,463 | $ 14,941 | ||
Share-based compensation expense (pre-tax) | 54 | |||||
Interest and other financial charges – net | (60) | 21 | (46) | 42 | ||
Inflation Reduction Act, advanced manufacturing tax credit | 51 | 65 | 74 | 92 | ||
Aero Alliance | ||||||
Related Party Transaction [Line Items] | ||||||
Purchases of products and services | 212 | 156 | 363 | 273 | ||
Centralized services | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, amount | $ 0 | 19 | 39 | |||
Information technology, finance, insurance and other services | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, amount | 100 | 181 | 364 | |||
Employee medical insurance | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, amount | 30 | 31 | 59 | |||
Tax credit reimbursement | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, amount | 249 | |||||
Related party | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable and equipment project payables | 44 | 44 | $ 532 | |||
Sales | 0 | 121 | 4 | 142 | ||
Share-based compensation expense (pre-tax) | 34 | 26 | 59 | |||
Interest and other financial charges – net | $ 7 | $ 10 | $ 19 | |||
Related party | Aero Alliance | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable and equipment project payables | $ 44 | $ 44 | $ 34 |
SEGMENT INFORMATION - Disaggreg
SEGMENT INFORMATION - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 8,204 | $ 8,119 | $ 15,463 | $ 14,941 |
Equipment | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 4,194 | 4,388 | 7,811 | 7,877 |
Services | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 4,010 | 3,732 | 7,652 | 7,065 |
Operating segments | Power | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 4,413 | 4,093 | 8,420 | 7,874 |
Operating segments | Power | Equipment | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,284 | 1,132 | 2,468 | 2,297 |
Operating segments | Power | Services | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 3,129 | 2,961 | 5,952 | 5,577 |
Operating segments | Wind | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,052 | 2,598 | 3,686 | 4,348 |
Operating segments | Wind | Equipment | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,660 | 2,243 | 2,887 | 3,657 |
Operating segments | Wind | Services | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 393 | 355 | 799 | 691 |
Operating segments | Electrification | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,721 | 1,426 | 3,328 | 2,715 |
Operating segments | Electrification | Equipment | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,246 | 1,011 | 2,450 | 1,919 |
Operating segments | Electrification | Services | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 475 | 415 | 878 | 796 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 17 | 2 | 30 | 4 |
Other | Equipment | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 4 | 2 | 6 | 4 |
Other | Services | ||||
Segment Reporting Information [Line Items] | ||||
Sales | $ 13 | $ 0 | $ 23 | $ 1 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 8,204 | $ 8,119 | $ 15,463 | $ 14,941 |
Intersegment | ||||
Segment Reporting Information [Line Items] | ||||
Sales | $ 119 | $ 115 | $ 197 | $ 205 |
SEGMENT INFORMATION - Segment R
SEGMENT INFORMATION - Segment Revenue by Business Unit (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 8,204 | $ 8,119 | $ 15,463 | $ 14,941 |
Operating segments, inclusive of intersegment sales | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 8,307 | 8,237 | 15,632 | 15,140 |
Operating segments, inclusive of intersegment sales | Power | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 4,455 | 4,131 | 8,490 | 7,953 |
Operating segments, inclusive of intersegment sales | Power | Gas Power | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 3,459 | 3,051 | 6,500 | 5,933 |
Operating segments, inclusive of intersegment sales | Power | Nuclear Power | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 222 | 212 | 450 | 434 |
Operating segments, inclusive of intersegment sales | Power | Hydro Power | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 182 | 220 | 363 | 397 |
Operating segments, inclusive of intersegment sales | Power | Steam Power | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 592 | 648 | 1,176 | 1,189 |
Operating segments, inclusive of intersegment sales | Wind | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 2,062 | 2,601 | 3,701 | 4,352 |
Operating segments, inclusive of intersegment sales | Wind | Onshore Wind | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,560 | 2,174 | 2,619 | 3,597 |
Operating segments, inclusive of intersegment sales | Wind | Offshore Wind | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 353 | 285 | 794 | 534 |
Operating segments, inclusive of intersegment sales | Wind | LM Wind Power | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 149 | 142 | 288 | 221 |
Operating segments, inclusive of intersegment sales | Electrification | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,790 | 1,505 | 3,441 | 2,836 |
Operating segments, inclusive of intersegment sales | Electrification | Grid Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,142 | 966 | 2,251 | 1,801 |
Operating segments, inclusive of intersegment sales | Electrification | Power Conversion | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 313 | 217 | 548 | 400 |
Operating segments, inclusive of intersegment sales | Electrification | Electrification Software | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 223 | 213 | 428 | 431 |
Operating segments, inclusive of intersegment sales | Electrification | Solar & Storage Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Sales | $ 113 | $ 109 | $ 214 | $ 204 |
SEGMENT INFORMATION - Segment E
SEGMENT INFORMATION - Segment EBITDA (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | $ (62) | $ (99) | $ (210) | $ (211) |
Separation (costs) benefits | 91 | |||
Interest and other financial charges – net | 60 | (21) | 46 | (42) |
Benefit (provision) for income taxes | (322) | (122) | (333) | (53) |
Net income (loss) | 1,280 | (149) | 1,174 | (495) |
Cost of equipment and services | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | (15) | (26) | (120) | (58) |
Equipment | Cost of equipment and services | ||||
Segment Reporting Information [Line Items] | ||||
Separation (costs) benefits | 136 | |||
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 626 | 238 | 864 | 125 |
Corporate and other | ||||
Segment Reporting Information [Line Items] | ||||
Corporate and other | (101) | (35) | (150) | (107) |
Restructuring and other charges | 6 | (4) | 6 | (13) |
Corporate and other | Financial Services | ||||
Segment Reporting Information [Line Items] | ||||
Interest and other financial charges – net | (1) | (13) | (11) | (25) |
Benefit (provision) for income taxes | 11 | 45 | 64 | 92 |
Segment reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | (62) | (93) | (210) | (203) |
Purchases and sales of business interests | 847 | 86 | 842 | 86 |
Russia and Ukraine charges | 0 | (95) | 0 | (95) |
Separation (costs) benefits | 91 | 0 | 91 | 0 |
Arbitration refund | 254 | 0 | 254 | 0 |
Non-operating benefit income | 134 | 143 | 269 | 282 |
Depreciation and amortization | (237) | (218) | (445) | (422) |
Interest and other financial charges – net | 61 | (8) | 58 | (16) |
Benefit (provision) for income taxes | (333) | (167) | (397) | (145) |
Arbitration, interest | 52 | 52 | ||
Power | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 613 | 466 | 958 | 643 |
Restructuring and other charges | (48) | (21) | (97) | (42) |
Wind | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | (117) | (259) | (289) | (519) |
Restructuring and other charges | (13) | (69) | (102) | (121) |
Electrification | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment EBITDA | 129 | 31 | 195 | 1 |
Restructuring and other charges | $ (7) | $ (5) | $ (17) | $ (35) |