Cover Page
Cover Page shares in Thousands | 6 Months Ended |
Jun. 30, 2020shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2020 |
Document Transition Report | false |
Entity File Number | 001-00035 |
Entity Registrant Name | GENERAL ELECTRIC CO |
Entity Central Index Key | 0000040545 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | NY |
Entity Tax Identification Number | 14-0689340 |
Entity Address, Address Line One | 5 Necco Street |
Entity Address, City or Town | Boston |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 02210 |
City Area Code | 617 |
Local Phone Number | 443-3000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 8,753,289 |
Common Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common stock, par value $0.06 per share |
Trading Symbol | GE |
Security Exchange Name | NYSE |
0.375% Notes Due 2022 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.375% Notes due 2022 |
Trading Symbol | GE 22A |
Security Exchange Name | NYSE |
1.250% Notes Due 2023 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.250% Notes due 2023 |
Trading Symbol | GE 23E |
Security Exchange Name | NYSE |
0.875% Notes Due 2025 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.875% Notes due 2025 |
Trading Symbol | GE 25 |
Security Exchange Name | NYSE |
1.875% Notes Due 2027 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.875% Notes due 2027 |
Trading Symbol | GE 27E |
Security Exchange Name | NYSE |
1.500% Notes Due 2029 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.500% Notes due 2029 |
Trading Symbol | GE 29 |
Security Exchange Name | NYSE |
7.5% Guaranteed Subordinated Notes Due 2035 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 7 1/2% Guaranteed Subordinated Notes due 2035 |
Trading Symbol | GE /35 |
Security Exchange Name | NYSE |
2.125% Notes Due 2037 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 2.125% Notes due 2037 |
Trading Symbol | GE 37 |
Security Exchange Name | NYSE |
STATEMENT OF EARNINGS (LOSS) (U
STATEMENT OF EARNINGS (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||||
Revenues | |||||||
Revenues | $ 17,750 | $ 23,414 | $ 38,273 | $ 45,616 | |||
Costs and expenses | |||||||
Cost of sales | 15,083 | 17,412 | 30,778 | 33,620 | |||
Selling, general and administrative expenses | 3,079 | 3,425 | 6,144 | 6,827 | |||
Interest and other financial charges | 997 | 929 | 1,791 | 1,993 | |||
Insurance losses and annuity benefits | 564 | 638 | 1,199 | 1,249 | |||
Goodwill impairments (Note 8) | 1,717 | 744 | 1,717 | 744 | |||
Non-operating benefit costs | 598 | 561 | 1,216 | 1,129 | |||
Other costs and expenses | 129 | 166 | 238 | 238 | |||
Total costs and expenses | 22,166 | 23,874 | 43,084 | 45,801 | |||
Other income (Note 22) | 2,078 | 164 | 8,947 | 1,012 | |||
GE Capital earnings (loss) from continuing operations | 0 | 0 | 0 | 0 | |||
Earnings (loss) from continuing operations before income taxes | (2,339) | (296) | 4,136 | 827 | |||
Benefit (provision) for income taxes | 199 | 181 | 136 | 41 | |||
Earnings (loss) from continuing operations | (2,139) | (115) | 4,272 | 868 | |||
Earnings (loss) from discontinued operations, net of taxes | 7 | 219 | (171) | 2,881 | |||
Net earnings (loss) | (2,132) | 104 | 4,101 | 3,749 | |||
Less net earnings (loss) attributable to noncontrolling interests | (145) | (23) | (111) | 34 | |||
Net earnings (loss) attributable to the Company | (1,987) | 127 | 4,212 | 3,716 | |||
Preferred stock dividends | (192) | (188) | (235) | (228) | |||
Net earnings (loss) attributable to GE common shareholders | (2,179) | (61) | 3,977 | 3,488 | |||
Amounts attributable to GE common shareholders | |||||||
Earnings (loss) from continuing operations | (2,139) | (115) | 4,272 | 868 | |||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | (145) | (1) | (108) | 22 | |||
Earnings (loss) from continuing operations attributable to the Company | (1,995) | (114) | 4,381 | 846 | |||
Preferred stock dividends | (192) | (188) | (235) | (228) | |||
Earnings (loss) from continuing operations attributable to GE common shareowners | (2,186) | (302) | 4,146 | 618 | |||
Earnings (loss) from discontinued operations, net of taxes | 7 | 219 | (171) | 2,881 | |||
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | 0 | (23) | (2) | 11 | |||
Net earnings (loss) attributable to GE common shareholders | $ (2,179) | $ (61) | $ 3,977 | $ 3,488 | |||
Earnings (loss) per share from continuing operations (Note 16) | |||||||
Diluted earnings (loss) per share (in dollars per share) | $ (0.27) | $ (0.03) | $ 0.46 | $ 0.07 | |||
Basic earnings (loss) per share (in dollars per share) | (0.27) | (0.03) | 0.46 | 0.07 | |||
Net earnings (loss) per share (Note 16) | |||||||
Diluted earnings (loss) per share (in dollars per share) | (0.26) | (0.01) | 0.44 | 0.40 | |||
Basic earnings (loss) per share (in dollars per share) | (0.26) | (0.01) | 0.44 | 0.40 | |||
Dividends declared per common share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.02 | $ 0.02 | |||
Goods | |||||||
Revenues | |||||||
Sales | $ 10,732 | $ 14,101 | $ 23,096 | $ 27,351 | |||
Costs and expenses | |||||||
Cost of sales | 10,306 | 11,646 | 20,846 | 22,620 | |||
Services | |||||||
Revenues | |||||||
Sales | 5,328 | 7,269 | 11,778 | 14,277 | |||
Costs and expenses | |||||||
Cost of sales | 4,777 | 5,766 | 9,933 | 11,000 | |||
GE Capital revenues from services | |||||||
Revenues | |||||||
Revenues | 1,690 | 2,043 | 3,399 | 3,988 | |||
GE Capital | |||||||
Revenues | |||||||
Revenues | 1,845 | 2,321 | 3,768 | 4,548 | |||
Costs and expenses | |||||||
Selling, general and administrative expenses | 162 | 211 | 365 | 478 | |||
Interest and other financial charges | 657 | 646 | 1,161 | 1,323 | |||
Insurance losses and annuity benefits | 577 | 668 | 1,230 | 1,302 | |||
Goodwill impairments (Note 8) | 839 | 0 | 839 | 0 | |||
Non-operating benefit costs | 2 | 3 | 5 | 8 | |||
Other costs and expenses | 178 | 178 | 297 | 277 | |||
Total costs and expenses | 3,262 | 2,233 | 5,295 | 4,413 | |||
Other income (Note 22) | 0 | 0 | 0 | 0 | |||
GE Capital earnings (loss) from continuing operations | 0 | 0 | 0 | 0 | |||
Earnings (loss) from continuing operations before income taxes | (1,416) | 88 | (1,526) | 135 | |||
Benefit (provision) for income taxes | 133 | 11 | 257 | 139 | |||
Earnings (loss) from continuing operations | (1,283) | 99 | (1,270) | 273 | |||
Earnings (loss) from discontinued operations, net of taxes | 17 | 238 | (147) | 273 | |||
Net earnings (loss) | (1,266) | 336 | (1,417) | 547 | |||
Less net earnings (loss) attributable to noncontrolling interests | 2 | 0 | 2 | 0 | |||
Net earnings (loss) attributable to the Company | (1,268) | 336 | (1,418) | 547 | |||
Preferred stock dividends | (192) | (188) | (235) | (228) | |||
Net earnings (loss) attributable to GE common shareholders | (1,459) | 148 | (1,653) | 319 | |||
Amounts attributable to GE common shareholders | |||||||
Earnings (loss) from continuing operations | (1,283) | 99 | (1,270) | 273 | |||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | 2 | 0 | 2 | 0 | |||
Earnings (loss) from continuing operations attributable to the Company | (1,285) | 99 | (1,272) | 273 | |||
Preferred stock dividends | (192) | (188) | (235) | (228) | |||
Earnings (loss) from continuing operations attributable to GE common shareowners | (1,476) | (89) | (1,506) | 46 | |||
Earnings (loss) from discontinued operations, net of taxes | 17 | 238 | (147) | 273 | |||
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | 0 | 0 | 0 | 0 | |||
Net earnings (loss) attributable to GE common shareholders | (1,459) | 148 | (1,653) | 319 | |||
GE Capital | Goods | |||||||
Revenues | |||||||
Sales | 13 | 18 | 37 | 34 | |||
Costs and expenses | |||||||
Cost of sales | 10 | 14 | 28 | 27 | |||
GE Capital | Services | |||||||
Revenues | |||||||
Sales | 0 | 0 | 0 | 0 | |||
Costs and expenses | |||||||
Cost of sales | 835 | 512 | 1,370 | 999 | |||
GE Capital | GE Capital revenues from services | |||||||
Revenues | |||||||
Revenues | 1,833 | 2,303 | 3,731 | 4,514 | |||
GE | |||||||
Revenues | |||||||
Revenues | [1] | 16,066 | 21,416 | 34,910 | 41,740 | ||
Costs and expenses | |||||||
Selling, general and administrative expenses | [1] | 2,979 | 3,367 | 5,928 | 6,562 | ||
Interest and other financial charges | [1] | 396 | 382 | 766 | 902 | ||
Insurance losses and annuity benefits | [1] | 0 | 0 | 0 | 0 | ||
Goodwill impairments (Note 8) | [1] | 877 | 744 | 877 | 744 | ||
Non-operating benefit costs | [1] | 596 | 558 | 1,212 | 1,122 | ||
Other costs and expenses | [1] | 0 | 5 | 0 | (4) | ||
Total costs and expenses | [1] | 19,105 | 21,972 | 38,238 | 42,073 | ||
Other income (Note 22) | [1] | 2,116 | 172 | 8,990 | 1,024 | ||
GE Capital earnings (loss) from continuing operations | [1] | (1,476) | (89) | (1,506) | 46 | ||
Earnings (loss) from continuing operations before income taxes | [1] | (2,399) | (473) | 4,156 | 738 | ||
Benefit (provision) for income taxes | [1] | 66 | 170 | (121) | [2] | (97) | [2] |
Earnings (loss) from continuing operations | [1] | (2,333) | (303) | 4,035 | 640 | ||
Earnings (loss) from discontinued operations, net of taxes | [1] | 7 | 219 | (171) | [2] | 2,881 | [2] |
Net earnings (loss) | [1] | (2,325) | (84) | 3,865 | [2] | 3,522 | [2] |
Less net earnings (loss) attributable to noncontrolling interests | [1] | (147) | (23) | (113) | 33 | ||
Net earnings (loss) attributable to the Company | [1] | (2,179) | (61) | 3,977 | 3,488 | ||
Preferred stock dividends | [1] | 0 | 0 | 0 | 0 | ||
Net earnings (loss) attributable to GE common shareholders | [1] | (2,179) | (61) | 3,977 | 3,488 | ||
Amounts attributable to GE common shareholders | |||||||
Earnings (loss) from continuing operations | [1] | (2,333) | (303) | 4,035 | 640 | ||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | [1] | (147) | (1) | (110) | 22 | ||
Earnings (loss) from continuing operations attributable to the Company | [1] | (2,186) | (302) | 4,146 | 618 | ||
Preferred stock dividends | [1] | 0 | 0 | 0 | 0 | ||
Earnings (loss) from continuing operations attributable to GE common shareowners | [1] | (2,186) | (302) | 4,146 | 618 | ||
Earnings (loss) from discontinued operations, net of taxes | [1] | 7 | 219 | (171) | [2] | 2,881 | [2] |
Less net earnings (loss) attributable to noncontrolling interests, discontinued operations | [1] | 0 | (23) | (2) | 11 | ||
Net earnings (loss) attributable to GE common shareholders | [1] | (2,179) | (61) | 3,977 | 3,488 | ||
GE | Goods | |||||||
Revenues | |||||||
Sales | [1] | 10,728 | 14,117 | 23,087 | 27,432 | ||
Costs and expenses | |||||||
Cost of sales | [1] | 10,305 | 11,666 | 20,846 | 22,715 | ||
GE | Services | |||||||
Revenues | |||||||
Sales | [1] | 5,337 | 7,298 | 11,823 | 14,308 | ||
Costs and expenses | |||||||
Cost of sales | [1] | 3,952 | 5,250 | 8,608 | 10,031 | ||
GE | GE Capital revenues from services | |||||||
Revenues | |||||||
Revenues | [1] | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1] | Represents the adding together of all GE Industrial affiliates and GE Capital continuing operations on a one-line basis. See Note 1. | ||||||
[2] | Represents the adding together of all GE Industrial affiliates and the impact of GE Capital dividends on a one-line basis. See Note 1. |
STATEMENT OF FINANCIAL POSITION
STATEMENT OF FINANCIAL POSITION - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | ||
Assets | ||||
Cash, cash equivalents and restricted cash | $ 41,431 | $ 36,394 | ||
Investment securities (Note 3) | 47,117 | 48,521 | ||
Current receivables (Note 4) | 16,041 | 16,769 | ||
Financing receivables – net (Note 5) | 3,095 | 3,134 | ||
Inventories (Note 6) | 15,251 | 14,104 | ||
Other GE Capital receivables | 7,578 | 7,144 | ||
Property, plant and equipment – net (Note 7) | 45,503 | 46,186 | ||
Receivable from GE Capital | 0 | 0 | ||
Investment in GE Capital | 0 | 0 | ||
Goodwill (Note 8) | 24,951 | 26,734 | ||
Other intangible assets – net (Note 8) | 10,168 | 10,653 | ||
Contract and other deferred assets (Note 10) | 15,555 | 16,801 | ||
All other assets | 15,514 | 16,461 | ||
Deferred income taxes (Note 14) | 10,665 | 9,889 | ||
Assets of businesses held for sale (Note 2) | 0 | 9,149 | ||
Assets of discontinued operations (Note 2) | 3,617 | 4,109 | ||
Total assets | 256,487 | 266,048 | ||
Liabilities and equity | ||||
Short-term borrowings (Note 11) | 9,059 | 22,072 | ||
Short-term borrowings assumed by GE (Note 11) | 0 | 0 | ||
Accounts payable, principally trade accounts | 13,469 | 15,926 | ||
Progress collections and deferred income (Note 10) | 19,927 | 20,508 | ||
Other GE current liabilities | 16,535 | 15,753 | ||
Non-recourse borrowings of consolidated securitization entities (Note 11) | 396 | 1,655 | ||
Long-term borrowings (Note 11) | 72,423 | 67,155 | ||
Long-term borrowings assumed by GE (Note 11) | 0 | 0 | ||
Insurance liabilities and annuity benefits (Note 12) | 40,954 | 39,826 | ||
Non-current compensation and benefits | 30,906 | 31,687 | ||
All other liabilities | 17,330 | 19,745 | ||
Liabilities of businesses held for sale (Note 2) | 0 | 1,658 | ||
Liabilities of discontinued operations (Note 2) | 235 | 203 | ||
Total liabilities | 221,233 | 236,187 | ||
Preferred stock (5,939,875 shares outstanding at both June 30, 2020 and December 31, 2019) | 6 | 6 | ||
Common stock (8,753,289,000 and 8,738,434,000 shares outstanding at June 30, 2020 and December 31, 2019, respectively) | 702 | 702 | ||
Accumulated other comprehensive income (loss) – net attributable to GE | (10,194) | (11,732) | ||
Other capital | 34,292 | 34,405 | ||
Retained earnings | 91,188 | 87,732 | ||
Less common stock held in treasury | (82,320) | (82,797) | ||
Total GE shareholders’ equity | 33,674 | 28,316 | ||
Noncontrolling interests | 1,579 | 1,545 | ||
Total equity | 35,254 | 29,861 | ||
Total liabilities and equity | 256,487 | 266,048 | ||
GE Capital | ||||
Assets | ||||
Cash, cash equivalents and restricted cash | 16,003 | 18,781 | ||
Investment securities (Note 3) | 41,121 | 38,514 | ||
Current receivables (Note 4) | 0 | 0 | ||
Financing receivables – net (Note 5) | 6,959 | 6,979 | ||
Inventories (Note 6) | 0 | 0 | ||
Other GE Capital receivables | 10,456 | 11,767 | ||
Property, plant and equipment – net (Note 7) | 29,923 | 29,886 | ||
Receivable from GE Capital | 0 | 0 | ||
Investment in GE Capital | 0 | 0 | ||
Goodwill (Note 8) | 0 | 839 | ||
Other intangible assets – net (Note 8) | 159 | 192 | ||
Contract and other deferred assets (Note 10) | 0 | 0 | ||
All other assets | 7,934 | 8,648 | ||
Deferred income taxes (Note 14) | 1,900 | 1,700 | ||
Assets of businesses held for sale (Note 2) | 0 | 241 | ||
Assets of discontinued operations (Note 2) | 3,462 | 3,907 | ||
Total assets | 117,918 | 121,454 | ||
Liabilities and equity | ||||
Short-term borrowings (Note 11) | 4,601 | 12,030 | ||
Short-term borrowings assumed by GE (Note 11) | 3,237 | 2,104 | ||
Accounts payable, principally trade accounts | 1,010 | 886 | ||
Progress collections and deferred income (Note 10) | 0 | 0 | ||
Other GE current liabilities | 0 | 0 | ||
Non-recourse borrowings of consolidated securitization entities (Note 11) | 396 | 1,655 | ||
Long-term borrowings (Note 11) | 32,025 | 26,175 | ||
Long-term borrowings assumed by GE (Note 11) | 17,435 | 17,038 | ||
Insurance liabilities and annuity benefits (Note 12) | 41,416 | 40,232 | ||
Non-current compensation and benefits | 438 | 472 | ||
All other liabilities | 3,532 | 5,278 | ||
Liabilities of businesses held for sale (Note 2) | 0 | 52 | ||
Liabilities of discontinued operations (Note 2) | 84 | 97 | ||
Total liabilities | 104,174 | 106,016 | ||
Preferred stock (5,939,875 shares outstanding at both June 30, 2020 and December 31, 2019) | 6 | 6 | ||
Common stock (8,753,289,000 and 8,738,434,000 shares outstanding at June 30, 2020 and December 31, 2019, respectively) | 0 | 0 | ||
Accumulated other comprehensive income (loss) – net attributable to GE | (906) | (852) | ||
Other capital | 17,004 | 17,001 | ||
Retained earnings | (2,517) | (857) | ||
Less common stock held in treasury | 0 | 0 | ||
Total GE shareholders’ equity | 13,587 | 15,299 | ||
Noncontrolling interests | 157 | 139 | ||
Total equity | 13,744 | 15,438 | ||
Total liabilities and equity | 117,918 | 121,454 | ||
GE | ||||
Assets | ||||
Cash, cash equivalents and restricted cash | [1] | 25,428 | [2] | 17,613 |
Investment securities (Note 3) | [1] | 5,997 | 10,008 | |
Current receivables (Note 4) | [1] | 12,744 | 13,883 | |
Financing receivables – net (Note 5) | [1] | 0 | 0 | |
Inventories (Note 6) | [1] | 15,251 | 14,104 | |
Other GE Capital receivables | [1] | 0 | 0 | |
Property, plant and equipment – net (Note 7) | [1] | 16,718 | 17,447 | |
Receivable from GE Capital | [1] | 20,672 | 19,142 | |
Investment in GE Capital | [1] | 13,587 | 15,299 | |
Goodwill (Note 8) | [1] | 24,951 | 25,895 | |
Other intangible assets – net (Note 8) | [1] | 10,009 | 10,461 | |
Contract and other deferred assets (Note 10) | [1] | 15,587 | 16,833 | |
All other assets | [1] | 8,419 | 8,399 | |
Deferred income taxes (Note 14) | [1] | 8,765 | 8,189 | |
Assets of businesses held for sale (Note 2) | [1] | 0 | 8,626 | |
Assets of discontinued operations (Note 2) | [1] | 155 | 202 | |
Total assets | [1] | 178,283 | 186,100 | |
Liabilities and equity | ||||
Short-term borrowings (Note 11) | [1] | 1,737 | 5,606 | |
Short-term borrowings assumed by GE (Note 11) | [1] | 3,679 | 5,473 | |
Accounts payable, principally trade accounts | [1] | 13,809 | 17,702 | |
Progress collections and deferred income (Note 10) | [1] | 20,091 | 20,694 | |
Other GE current liabilities | [1] | 17,300 | 16,833 | |
Non-recourse borrowings of consolidated securitization entities (Note 11) | [1] | 0 | 0 | |
Long-term borrowings (Note 11) | [1] | 18,679 | 15,085 | |
Long-term borrowings assumed by GE (Note 11) | [1] | 21,719 | 25,895 | |
Insurance liabilities and annuity benefits (Note 12) | [1] | 0 | 0 | |
Non-current compensation and benefits | [1] | 30,460 | 31,208 | |
All other liabilities | [1] | 15,562 | 16,156 | |
Liabilities of businesses held for sale (Note 2) | [1] | 0 | 1,620 | |
Liabilities of discontinued operations (Note 2) | [1] | 151 | 106 | |
Total liabilities | [1] | 143,187 | 156,379 | |
Preferred stock (5,939,875 shares outstanding at both June 30, 2020 and December 31, 2019) | [1] | 6 | 6 | |
Common stock (8,753,289,000 and 8,738,434,000 shares outstanding at June 30, 2020 and December 31, 2019, respectively) | [1] | 702 | 702 | |
Accumulated other comprehensive income (loss) – net attributable to GE | [1] | (10,194) | (11,732) | |
Other capital | [1] | 34,292 | 34,405 | |
Retained earnings | [1] | 91,188 | 87,732 | |
Less common stock held in treasury | [1] | (82,320) | (82,797) | |
Total GE shareholders’ equity | [1] | 33,674 | 28,316 | |
Noncontrolling interests | [1] | 1,421 | 1,406 | |
Total equity | [1] | 35,096 | 29,721 | |
Total liabilities and equity | [1] | $ 178,283 | $ 186,100 | |
[1] | Represents the adding together of all GE Industrial affiliates and GE Capital continuing operations on a one-line basis. See Note 1. | |||
[2] | Represents the adding together of all GE Industrial affiliates and the impact of GE Capital dividends on a one-line basis. See Note 1. |
STATEMENT OF FINANCIAL POSITI_2
STATEMENT OF FINANCIAL POSITION (Parenthetical) - shares | Jun. 30, 2020 | Dec. 31, 2019 |
Preferred stock, shares outstanding | 5,939,875 | 5,939,875 |
Common stock, shares outstanding | 8,753,289,000 | 8,738,434,000 |
GE Capital | ||
Preferred stock, shares outstanding | 5,939,875 | 5,939,875 |
Common stock, shares outstanding | 8,747,092,000 | 8,738,434,000 |
GE | ||
Preferred stock, shares outstanding | 5,939,875 | 5,939,875 |
Common stock, shares outstanding | 8,747,092,000 | 8,738,434,000 |
STATEMENT OF CASH FLOWS (UNAUDI
STATEMENT OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | |||
Cash flows – operating activities | ||||
Net earnings (loss) | $ 4,101 | $ 3,749 | ||
(Earnings) loss from discontinued operations | 171 | (2,881) | ||
Adjustments to reconcile net earnings (loss) to cash provided from operating activities | ||||
Depreciation and amortization of property, plant and equipment (Note 7) | 2,281 | 1,965 | ||
Amortization of intangible assets (Note 8) | 648 | 724 | ||
Goodwill impairments (Note 8) | 1,717 | 744 | ||
(Earnings) loss from continuing operations retained by GE Capital | 0 | 0 | ||
(Gains) losses on purchases and sales of business interests (Note 22) | (12,482) | (214) | ||
(Gains) losses on equity securities (Note 22) | 4,031 | 54 | ||
Principal pension plans cost (Note 13) | 1,798 | 1,693 | ||
Principal pension plans employer contributions | (144) | (133) | ||
Other postretirement benefit plans (net) | (488) | (542) | ||
Provision (benefit) for income taxes | (136) | (41) | ||
Cash recovered (paid) during the year for income taxes | (622) | (1,067) | ||
Decrease (increase) in contract and other deferred assets | 501 | (548) | ||
Decrease (increase) in GE current receivables | (190) | (696) | ||
Decrease (increase) in inventories | (730) | (1,951) | ||
Increase (decrease) in accounts payable | (2,015) | 828 | ||
Increase (decrease) in GE progress collections | (670) | 66 | ||
All other operating activities | 911 | (223) | ||
Cash from (used for) operating activities – continuing operations | (1,319) | 1,528 | ||
Cash from (used for) operating activities – discontinued operations | (53) | (1,336) | ||
Cash from (used for) operating activities | (1,372) | 192 | ||
Cash flows – investing activities | ||||
Additions to property, plant and equipment | (1,614) | (2,946) | ||
Dispositions of property, plant and equipment | 1,054 | 1,912 | ||
Additions to internal-use software | (98) | (141) | ||
Net decrease (increase) in financing receivables | (164) | 377 | ||
Proceeds from sale of discontinued operations | 0 | 2,827 | ||
Proceeds from principal business dispositions | 20,854 | 1,058 | ||
Net cash from (payments for) principal businesses purchased | (7) | 0 | ||
Capital contribution from GE to GE Capital | 0 | 0 | ||
Sales of retained ownership interests in Wabtec | 0 | 1,799 | ||
All other investing activities | (1,516) | 2,620 | ||
Cash from (used for) investing activities – continuing operations | 18,509 | 2,266 | ||
Cash from (used for) investing activities – discontinued operations | (91) | 1,115 | ||
Cash from (used for) investing activities | 18,419 | 3,382 | ||
Cash flows – financing activities | ||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | (3,412) | (434) | ||
Newly issued debt (maturities longer than 90 days) | 14,228 | 1,462 | ||
Repayments and other debt reductions (maturities longer than 90 days) | (22,005) | (6,168) | ||
Capital contribution from GE to GE Capital | 0 | 0 | ||
Dividends paid to shareholders | (324) | (324) | ||
All other financing activities | (486) | (627) | ||
Cash from (used for) financing activities – continuing operations | (11,999) | (6,092) | ||
Cash from (used for) financing activities – discontinued operations | 1 | (469) | ||
Cash from (used for) financing activities | (11,998) | (6,561) | ||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (217) | 1 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | 4,831 | (2,986) | ||
Cash, cash equivalents and restricted cash at beginning of year | 37,077 | 35,548 | ||
Cash, cash equivalents and restricted cash at June 30 | 41,908 | 32,562 | ||
Less cash, cash equivalents and restricted cash of discontinued operations at June 30 | 477 | 3,732 | ||
Cash, cash equivalents and restricted cash of continuing operations at June 30 | 41,431 | 28,830 | ||
GE Capital | ||||
Cash flows – operating activities | ||||
Net earnings (loss) | (1,417) | 547 | ||
(Earnings) loss from discontinued operations | 147 | (273) | ||
Adjustments to reconcile net earnings (loss) to cash provided from operating activities | ||||
Depreciation and amortization of property, plant and equipment (Note 7) | 1,373 | 1,002 | ||
Amortization of intangible assets (Note 8) | 37 | 31 | ||
Goodwill impairments (Note 8) | 839 | 0 | ||
(Earnings) loss from continuing operations retained by GE Capital | 0 | 0 | ||
(Gains) losses on purchases and sales of business interests (Note 22) | (58) | 0 | ||
(Gains) losses on equity securities (Note 22) | 46 | (3) | ||
Principal pension plans cost (Note 13) | 0 | 0 | ||
Principal pension plans employer contributions | 0 | 0 | ||
Other postretirement benefit plans (net) | (17) | (1) | ||
Provision (benefit) for income taxes | (257) | (139) | ||
Cash recovered (paid) during the year for income taxes | (72) | (97) | ||
Decrease (increase) in contract and other deferred assets | 0 | 0 | ||
Decrease (increase) in GE current receivables | 0 | 0 | ||
Decrease (increase) in inventories | 0 | 0 | ||
Increase (decrease) in accounts payable | 4 | (1) | ||
Increase (decrease) in GE progress collections | 0 | 0 | ||
All other operating activities | 340 | 214 | ||
Cash from (used for) operating activities – continuing operations | 967 | 1,279 | ||
Cash from (used for) operating activities – discontinued operations | (79) | (1,702) | ||
Cash from (used for) operating activities | 889 | (423) | ||
Cash flows – investing activities | ||||
Additions to property, plant and equipment | (655) | (1,984) | ||
Dispositions of property, plant and equipment | 954 | 1,645 | ||
Additions to internal-use software | (3) | (4) | ||
Net decrease (increase) in financing receivables | 45 | 2,067 | ||
Proceeds from sale of discontinued operations | 0 | 0 | ||
Proceeds from principal business dispositions | 34 | 417 | ||
Net cash from (payments for) principal businesses purchased | 0 | 0 | ||
Capital contribution from GE to GE Capital | 0 | 0 | ||
Sales of retained ownership interests in Wabtec | 0 | 0 | ||
All other investing activities | 7,143 | (1,280) | ||
Cash from (used for) investing activities – continuing operations | 7,518 | 861 | ||
Cash from (used for) investing activities – discontinued operations | (60) | 1,764 | ||
Cash from (used for) investing activities | 7,458 | 2,625 | ||
Cash flows – financing activities | ||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | (205) | (656) | ||
Newly issued debt (maturities longer than 90 days) | 6,797 | 1,053 | ||
Repayments and other debt reductions (maturities longer than 90 days) | (17,392) | (5,840) | ||
Capital contribution from GE to GE Capital | 0 | 1,500 | ||
Dividends paid to shareholders | (232) | (225) | ||
All other financing activities | (231) | (561) | ||
Cash from (used for) financing activities – continuing operations | (11,264) | (4,728) | ||
Cash from (used for) financing activities – discontinued operations | 0 | (1) | ||
Cash from (used for) financing activities | (11,264) | (4,729) | ||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (62) | 9 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | (2,979) | (2,518) | ||
Cash, cash equivalents and restricted cash at beginning of year | 19,460 | 15,020 | ||
Cash, cash equivalents and restricted cash at June 30 | 16,480 | 12,502 | ||
Less cash, cash equivalents and restricted cash of discontinued operations at June 30 | 477 | 590 | ||
Cash, cash equivalents and restricted cash of continuing operations at June 30 | 16,003 | 11,913 | ||
GE | ||||
Cash flows – operating activities | ||||
Net earnings (loss) | [1],[2] | 3,865 | 3,522 | |
(Earnings) loss from discontinued operations | [1],[2] | 171 | (2,881) | |
Adjustments to reconcile net earnings (loss) to cash provided from operating activities | ||||
Depreciation and amortization of property, plant and equipment (Note 7) | [2] | 916 | 961 | |
Amortization of intangible assets (Note 8) | [2] | 611 | 693 | |
Goodwill impairments (Note 8) | [1] | 877 | 744 | |
(Earnings) loss from continuing operations retained by GE Capital | [2] | 1,506 | (46) | |
(Gains) losses on purchases and sales of business interests (Note 22) | [2] | (12,424) | (214) | |
(Gains) losses on equity securities (Note 22) | [2] | 3,986 | 57 | |
Principal pension plans cost (Note 13) | [2] | 1,798 | 1,693 | |
Principal pension plans employer contributions | [2] | (144) | (133) | |
Other postretirement benefit plans (net) | [2] | (471) | (541) | |
Provision (benefit) for income taxes | [1],[2] | 121 | 97 | |
Cash recovered (paid) during the year for income taxes | [2] | (550) | (970) | |
Decrease (increase) in contract and other deferred assets | [2] | 501 | (548) | |
Decrease (increase) in GE current receivables | [2] | 434 | (1,246) | |
Decrease (increase) in inventories | [2] | (692) | (1,822) | |
Increase (decrease) in accounts payable | [2] | (3,462) | 355 | |
Increase (decrease) in GE progress collections | [2] | (693) | 61 | |
All other operating activities | [2] | 386 | (849) | |
Cash from (used for) operating activities – continuing operations | [2] | (3,266) | (1,068) | |
Cash from (used for) operating activities – discontinued operations | [2] | 26 | 38 | |
Cash from (used for) operating activities | [2] | (3,240) | (1,029) | |
Cash flows – investing activities | ||||
Additions to property, plant and equipment | [2] | (1,002) | (1,116) | |
Dispositions of property, plant and equipment | [2] | 105 | 271 | |
Additions to internal-use software | [2] | (95) | (137) | |
Net decrease (increase) in financing receivables | [2] | 0 | 0 | |
Proceeds from sale of discontinued operations | [2] | 0 | 2,827 | |
Proceeds from principal business dispositions | [2] | 20,480 | 1,017 | |
Net cash from (payments for) principal businesses purchased | [2] | (7) | (417) | |
Capital contribution from GE to GE Capital | [1] | 0 | (1,500) | |
Sales of retained ownership interests in Wabtec | [1] | 0 | 1,799 | |
All other investing activities | [2] | 207 | (111) | |
Cash from (used for) investing activities – continuing operations | [2] | 19,689 | 2,634 | |
Cash from (used for) investing activities – discontinued operations | [2] | (30) | (322) | |
Cash from (used for) investing activities | [2] | 19,659 | 2,312 | |
Cash flows – financing activities | ||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | [2] | (3,512) | (1,101) | |
Newly issued debt (maturities longer than 90 days) | [2] | 7,431 | 409 | |
Repayments and other debt reductions (maturities longer than 90 days) | [2] | (12,113) | (329) | |
Capital contribution from GE to GE Capital | [1] | 0 | 0 | |
Dividends paid to shareholders | [2] | (176) | (175) | |
All other financing activities | [2] | (83) | (79) | |
Cash from (used for) financing activities – continuing operations | [2] | (8,453) | (1,275) | |
Cash from (used for) financing activities – discontinued operations | [2] | 1 | (468) | |
Cash from (used for) financing activities | [2] | (8,453) | (1,743) | |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | [2] | (155) | (8) | |
Increase (decrease) in cash, cash equivalents and restricted cash | [2] | 7,811 | (468) | |
Cash, cash equivalents and restricted cash at beginning of year | [2] | 17,617 | 20,528 | |
Cash, cash equivalents and restricted cash at June 30 | [2] | 25,428 | 20,060 | |
Less cash, cash equivalents and restricted cash of discontinued operations at June 30 | [2] | 0 | 3,143 | |
Cash, cash equivalents and restricted cash of continuing operations at June 30 | [2] | $ 25,428 | [1] | $ 16,917 |
[1] | Represents the adding together of all GE Industrial affiliates and GE Capital continuing operations on a one-line basis. See Note 1. | |||
[2] | Represents the adding together of all GE Industrial affiliates and the impact of GE Capital dividends on a one-line basis. See Note 1. |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ (2,132) | $ 104 | $ 4,101 | $ 3,749 |
Less net earnings (loss) attributable to noncontrolling interests | (145) | (23) | (111) | 34 |
Net earnings (loss) attributable to the Company | (1,987) | 127 | 4,212 | 3,716 |
Other comprehensive income (loss) | ||||
Investment securities | 27 | 76 | (14) | 99 |
Currency translation adjustments | (57) | (141) | 78 | 283 |
Cash flow hedges | 53 | (25) | (158) | 12 |
Benefit plans | 604 | 639 | 1,640 | 1,183 |
Other comprehensive income (loss) | 627 | 547 | 1,545 | 1,577 |
Less: other comprehensive income (loss) attributable to noncontrolling interests | 2 | (85) | 7 | 15 |
Other comprehensive income (loss) attributable to the Company | 625 | 633 | 1,539 | 1,562 |
Comprehensive income (loss) | (1,505) | 651 | 5,647 | 5,326 |
Less: comprehensive income (loss) attributable to noncontrolling interests | (143) | (109) | (104) | 49 |
Comprehensive income (loss) attributable to the Company | $ (1,362) | $ 760 | $ 5,751 | $ 5,277 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Accumulated other comprehensive income (loss) | Investment securities | Currency translation adjustments | Cash flow hedges | Benefit plans | Other capital | Retained earnings | Common stock held in treasury | Changes in accountingRetained earnings |
Beginning balance at Dec. 31, 2018 | $ (14,414) | $ 35,504 | $ 93,109 | $ (83,925) | $ 368 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Other comprehensive income (loss) | $ 1,577 | $ 98 | $ 260 | $ 12 | $ 1,192 | |||||
Gains (losses) on treasury stock dispositions | (657) | |||||||||
Stock-based compensation | 264 | |||||||||
Other changes | (786) | |||||||||
Net earnings (loss) attributable to the Company | 3,716 | 3,716 | ||||||||
Dividends and other transactions with shareholders | (419) | |||||||||
Purchases | (45) | |||||||||
Dispositions | 834 | |||||||||
Ending balance at Jun. 30, 2019 | 56,129 | (12,852) | (5,874) | 26 | (7,063) | 34,324 | 96,773 | (83,137) | ||
Beginning balance at Mar. 31, 2019 | (13,485) | 34,345 | 96,921 | (83,328) | 0 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Other comprehensive income (loss) | 547 | 75 | (64) | (23) | 645 | |||||
Gains (losses) on treasury stock dispositions | (150) | |||||||||
Stock-based compensation | 124 | |||||||||
Other changes | 6 | |||||||||
Net earnings (loss) attributable to the Company | 127 | 127 | ||||||||
Dividends and other transactions with shareholders | (274) | |||||||||
Purchases | (7) | |||||||||
Dispositions | 198 | |||||||||
Ending balance at Jun. 30, 2019 | 56,129 | (12,852) | (5,874) | 26 | (7,063) | 34,324 | 96,773 | (83,137) | ||
Preferred stock issued | 6 | |||||||||
Common stock issued | 702 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
GE shareholders' equity balance | 35,816 | |||||||||
Noncontrolling interests balance (Note 15) | 20,312 | |||||||||
Preferred stock issued | 6 | |||||||||
Common stock issued | 702 | |||||||||
GE shareholders' equity balance | 28,316 | |||||||||
Noncontrolling interests balance (Note 15) | 1,545 | |||||||||
Beginning balance at Dec. 31, 2019 | 29,861 | (11,732) | 34,405 | 87,732 | (82,797) | (175) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Other comprehensive income (loss) | 1,545 | (14) | 75 | (158) | 1,636 | |||||
Gains (losses) on treasury stock dispositions | (412) | |||||||||
Stock-based compensation | 216 | |||||||||
Other changes | 83 | |||||||||
Net earnings (loss) attributable to the Company | 4,212 | 4,212 | ||||||||
Dividends and other transactions with shareholders | (581) | |||||||||
Purchases | (22) | |||||||||
Dispositions | 498 | |||||||||
Ending balance at Jun. 30, 2020 | 35,254 | (10,194) | 47 | (4,743) | (109) | (5,387) | 34,292 | 91,188 | (82,320) | |
Beginning balance at Mar. 31, 2020 | (10,819) | 34,296 | 93,615 | (82,516) | $ 0 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Other comprehensive income (loss) | 627 | 27 | (58) | 53 | 604 | |||||
Gains (losses) on treasury stock dispositions | (163) | |||||||||
Stock-based compensation | 111 | |||||||||
Other changes | 48 | |||||||||
Net earnings (loss) attributable to the Company | (1,987) | (1,987) | ||||||||
Dividends and other transactions with shareholders | (439) | |||||||||
Purchases | (8) | |||||||||
Dispositions | 204 | |||||||||
Ending balance at Jun. 30, 2020 | 35,254 | $ (10,194) | $ 47 | $ (4,743) | $ (109) | $ (5,387) | $ 34,292 | $ 91,188 | $ (82,320) | |
Preferred stock issued | 6 | |||||||||
Common stock issued | 702 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
GE shareholders' equity balance | 33,674 | |||||||||
Noncontrolling interests balance (Note 15) | $ 1,579 |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | 15 Months Ended |
Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Decrease in total equity balance | $ (20,875) | ||
Reduction of non-controlling interest | $ 19,095 | ||
After tax gain (loss) in discontinued operations | 2,553 | ||
Baker Hughes | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
After tax gain (loss) in discontinued operations | $ 0 | ||
BioPharma | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
After tax gain (loss) in discontinued operations | $ 11,199 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. We present our financial statements in a three-column format, which allows investors to see our GE industrial operations separately from our financial services operations. We believe that this provides useful supplemental information to our consolidated financial statements. To the extent that we have transactions between GE and GE Capital, these transactions are made on arm's length terms, are reported in the respective columns of our financial statements and are eliminated in consolidation. See Note 20 for further information. Our financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP), which requires us to make estimates based on assumptions about current and, for some estimates, future economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. In particular, a number of estimates have been and will continue to be affected by the ongoing Coronavirus Disease 2019 (COVID-19) pandemic. The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly changing and difficult to predict. As a result, our accounting estimates and assumptions may change over time in response to COVID-19. Such changes could result in future impairments of goodwill, intangibles, long-lived assets and investment securities, revisions to estimated profitability on long-term product service agreements, incremental credit losses on receivables and debt securities, a decrease in the carrying amount of our tax assets, or an increase in our insurance liabilities and pension obligations as of the time of a relevant measurement event. In preparing our Statement of Cash Flows, we make certain adjustments to reflect cash flows that cannot otherwise be calculated by changes in our Statement of Financial Position. These adjustments may include, but are not limited to, the effects of currency exchange, acquisitions and dispositions of businesses, businesses classified as held for sale, the timing of settlements to suppliers for property, plant and equipment, non-cash gains/losses and other balance sheet reclassifications. We have reclassified certain prior-period amounts to conform to the current-period’s presentation. Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions. Earnings per share amounts are computed independently for earnings from continuing operations, earnings from discontinued operations and net earnings. As a result, the sum of per-share amounts may not equal the total. Unless otherwise indicated, information in these notes to the consolidated financial statements relates to continuing operations. Certain of our operations have been presented as discontinued. We present businesses whose disposal represents a strategic shift that has, or will have, a major effect on our operations and financial results as discontinued operations when the components meet the criteria for held for sale, are sold, or spun-off. See Note 2 for further information. The accompanying consolidated financial statements and notes are unaudited. The results reported in these consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. These consolidated financial statements should be read in conjunction with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2019 . Our significant accounting policies are described in Note 1 of our aforementioned Annual Report. We include herein certain updates to those policies. Allowance for credit losses. When we record customer receivables, contract assets and financing receivables arising from revenue transactions, as well as commercial mortgage loans and reinsurance recoverables in GE Capital’s run-off insurance operations, financial guarantees and certain commitments, we record an allowance for credit losses for the current expected credit losses (CECL) inherent in the asset over its expected life. The allowance for credit losses is a valuation account deducted from the amortized cost basis of the assets to present their net carrying value at the amount expected to be collected. Each period the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets. We evaluate debt securities with unrealized losses to determine whether any of the losses arise from concerns about the issuer’s credit or the underlying collateral and record an allowance for credit losses, if required. We estimate expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. When measuring expected credit losses, we pool assets with similar country risk and credit risk characteristics. Changes in the relevant information may significantly affect the estimates of expected credit losses. ACCOUNTING CHANGES. On January 1, 2020, we adopted ASU No. 2016-13, Financial Instruments - Credit Losses (ASU 2016-13) . ASU 2016-13 requires us to prospectively record an allowance for credit losses for the current expected credit losses inherent in the asset over its expected life, replacing the incurred loss model that recognized losses only when they became probable and estimable. We recorded a $221 million increase in our allowance for credit losses and a $175 million decrease to retained earnings, net of tax, reflecting the cumulative effect on retained earnings. In March 2020, the SEC issued a final rule amending disclosure requirements for guarantors and issuers of registered guaranteed securities under SEC Regulation S-X, Rule 3-10. The final rule is effective for filings on or after January 4, 2021, however early application is permitted. As a result of the simplification provided by this rule, beginning with this quarterly report on Form 10-Q for the period ended June 30, 2020, we have elected to early adopt the disclosure requirements. |
BUSINESSES HELD FOR SALE AND DI
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS | NOTE 2. BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE. On March 31, 2020, we completed the sale of our BioPharma business within our Healthcare segment for total consideration of $ 21,149 million (after certain working capital adjustments). The consideration consisted of $20,732 million in cash and $417 million of pension liabilities that were assumed by Danaher. In addition, we incurred $154 million of cash payments directly associated with the transaction in the second quarter. As a result, we recognized a pre-tax gain of $12,341 million ( $11,199 million after tax) in our consolidated Statement of Earnings (Loss). In the first half of 2020, we sold all our remaining businesses classified as held for sale, including the remaining Lighting business within our Corporate segment and the remaining PK AirFinance business within our Capital segment. DISCONTINUED OPERATIONS . Discontinued operations primarily include our Baker Hughes and Transportation segments, and certain businesses in our GE Capital segment (our mortgage portfolio in Poland and trailing liabilities associated with the sale of our GE Capital businesses). Results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods presented. In September 2019, we reduced our ownership interest in Baker Hughes from 50.2% to 36.8% and reclassified its results to discontinued operations for all periods presented. We have continuing involvement with Baker Hughes (BKR) primarily through our remaining interest, ongoing purchases and sales of products and services, transition services that we provide to BKR, as well as an aeroderivative joint venture (JV) we formed with BKR in the fourth quarter of 2019. The JV is jointly controlled by GE and BKR and is consolidated by GE due to the significance of our investment in BKR. Our Aviation segment sells products and services to the JV. In turn, the JV sells products and services primarily to BKR and our Power segment. Transactions between the JV and GE businesses are eliminated in consolidation. In the first half of 2020, we had sales of $252 million to BKR for products and services from the JV and we collected cash of $225 million . If our investment in BKR is reduced to below 20% , we would no longer have significant influence in BKR and, as a result, we would not consolidate the JV. A potential deconsolidation of the JV is not expected to have a material impact on GE Industrial free cash flows. In addition, in the first half of 2020, we had sales of $265 million and purchases of $101 million with BKR for products and services outside of the JV. We collected net cash of $451 million from BKR related to sales, purchases and transition services. In addition, we received $130 million of repayments on the promissory note receivable from BKR and dividends of $136 million on our investment. In February 2019, we completed the spin-off and subsequent merger of our Transportation business with Wabtec. As a result, we recorded a gain of $3,471 million ( $2,508 million after-tax) in discontinued operations. RESULTS OF DISCONTINUED OPERATIONS (In millions) Baker Hughes Transportation GE Capital Total Three months ended June 30 2020 2019 2020 2019 2020 2019 2020 2019 Operations Sales of goods and services $ — $ 5,953 $ — $ — $ — $ — $ — $ 5,953 GE Capital revenues from services — — — — 71 (48 ) 71 (48 ) Cost of goods and services sold — (4,954 ) — — — — — (4,954 ) Other income, costs and expenses (3 ) (981 ) 1 3 (62 ) (16 ) (64 ) (993 ) Earnings (loss) of discontinued operations before income taxes (3 ) 18 1 3 10 (64 ) 8 (42 ) Benefit (provision) for income taxes 2 (33 ) — (7 ) 8 302 9 261 Earnings (loss) of discontinued operations, net of taxes(a) $ (1 ) $ (15 ) $ 1 $ (4 ) $ 17 $ 238 $ 17 $ 219 Disposal Gain (loss) on disposal before income taxes (10 ) — — — — — (10 ) — Benefit (provision) for income taxes — — — — — — — — Gain (loss) on disposal, net of taxes $ (10 ) $ — $ — $ — $ — $ (1 ) $ (10 ) $ (1 ) Earnings (loss) from discontinued operations, net of taxes $ (11 ) $ (15 ) $ 1 $ (4 ) $ 17 $ 238 $ 7 $ 219 (In millions) Baker Hughes Transportation GE Capital Total Six months ended June 30 2020 2019 2020 2019 2020 2019 2020 2019 Operations Sales of goods and services $ — $ 11,569 $ — $ 549 $ — $ — $ — $ 12,118 GE Capital revenues from services — — — — (5 ) (9 ) (5 ) (9 ) Cost of goods and services sold — (9,631 ) — (478 ) — — — (10,109 ) Other income, costs and expenses (3 ) (1,768 ) (3 ) (6 ) (146 ) (89 ) (152 ) (1,863 ) Earnings (loss) of discontinued operations before income taxes (3 ) 170 (3 ) 65 (151 ) (98 ) $ (157 ) $ 137 Benefit (provision) for income taxes (11 ) (116 ) 6 (19 ) 4 327 — 192 Earnings (loss) of discontinued operations, net of taxes(a) $ (14 ) $ 55 $ 4 $ 46 $ (147 ) $ 228 $ (157 ) $ 329 Disposal Gain (loss) on disposal before income taxes (13 ) — — 3,471 — 47 $ (13 ) $ 3,517 Benefit (provision) for income taxes — — — (963 ) — (2 ) — (964 ) Gain (loss) on disposal, net of taxes $ (13 ) $ — $ — $ 2,508 $ — $ 45 $ (13 ) $ 2,553 Earnings (loss) from discontinued operations, net of taxes $ (27 ) $ 55 $ 4 $ 2,554 $ (147 ) $ 273 $ (171 ) $ 2,881 (a) Earnings (loss) of discontinued operations attributable to the Company after income taxes was $17 million and $242 million for the three months ended June 30, 2020 and 2019, respectively. Earnings (loss) of discontinued operations attributable to the Company after income taxes was $(155) million and $317 million for the six months ended June 30, 2020 and 2019, respectively. ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS (In millions) June 30, 2020 December 31, 2019 Cash, cash equivalents and restricted cash $ 477 $ 638 Investment securities 91 202 Current receivables 61 81 Financing receivables held for sale (Polish mortgage portfolio) 2,398 2,485 Property, plant, and equipment 112 123 Deferred income taxes 213 264 All other assets 265 317 Assets of discontinued operations(a) $ 3,617 $ 4,109 Accounts payable & Progress collections and deferred income $ 15 $ 40 All other liabilities(b) 220 163 Liabilities of discontinued operations(a) $ 235 $ 203 (a) Assets and liabilities of discontinued operations included $3,462 million and $84 million related to GE Capital as of June 30, 2020, respectively. (b) Included within All other liabilities of discontinued operations at June 30, 2020 and December 31, 2019, are intercompany tax receivables in the amount of $829 million and $839 million , respectively, primarily related to the financial services businesses that were part of the GE Capital Exit Plan, which are offset within All other liabilities of Consolidated GE. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 3. INVESTMENT SECURITIES . All of our debt securities are classified as available-for-sale and substantially all are investment-grade debt securities supporting obligations to annuitants and policyholders in our run-off insurance operations. Changes in fair value of our debt securities are recorded in Other comprehensive income. Equity securities with readily determinable fair values are included within this caption and changes in their fair value are recorded in earnings. June 30, 2020 December 31, 2019 (In millions) Amortized Gross Gross Estimated Amortized Gross Gross Estimated Debt U.S. corporate $ 23,540 $ 5,771 $ (136 ) $ 29,175 $ 23,037 $ 4,636 $ (11 ) $ 27,661 Non-U.S. corporate 2,185 337 (5 ) 2,517 2,161 260 (1 ) 2,420 State and municipal 3,235 826 (22 ) 4,039 3,086 598 (15 ) 3,669 Mortgage and asset-backed 3,497 97 (136 ) 3,458 3,117 116 (4 ) 3,229 Government and agencies 1,257 206 — 1,463 1,391 126 — 1,516 Equity 6,465 — — 6,465 10,025 — — 10,025 Total $ 40,179 $ 7,237 $ (300 ) $ 47,117 $ 42,816 $ 5,736 $ (31 ) $ 48,521 The amortized cost of debt securities as of June 30, 2020, excludes accrued interest of $413 million , which is reported in Other GE Capital receivables. The estimated fair values of investment securities at June 30, 2020 decreased since December 31, 2019, primarily due to the mark-to-market effects on our remaining interest in BKR, partially offset by a decrease in market yields and new investments in our insurance business. The fair value of the remaining BKR interest and promissory note receivable was $5,910 million at June 30, 2020. Gross unrealized losses of $(271) million and $(29) million are associated with debt securities with a fair value of $3,066 million and $168 million that have been in a loss position for less than 12 months and 12 months or more, respectively, at June 30, 2020. Gross unrealized losses of $(11) million and $(20) million are associated with debt securities with a fair value of $724 million and $274 million that have been in a loss position for less than 12 months and 12 months or more, respectively, at December 31, 2019. At June 30, 2020, gross unrealized losses of $(300) million included $(136) million related to U.S. corporate securities, primarily in the energy industry, and $(113) million related to commercial mortgage-backed securities (CMBS). Substantially all of our CMBS in an unrealized loss position have received investment-grade credit ratings from the major rating agencies and are collateralized by pools of commercial mortgage loans on real estate. Net unrealized gains (losses) for equity securities with readily determinable fair values, which are recorded in Other income within continuing operations, were $1,929 million and $(51) million for the three months ended and $(3,843) million and $(42) million for the six months ended June 30, 2020 and 2019, respectively. The amount recognized in the six months ended June 30, 2020 primarily included a loss of $3,865 million related to our interest in BKR. Proceeds from debt and equity securities sales, early redemptions by issuers and principal payments on the BKR promissory note totaled $1,450 million and $2,913 million for the three months ended and $2,705 million and $4,334 million for the six months ended June 30, 2020 and 2019, respectively. Gross realized gains on investment securities were $82 million and $32 million for the three months ended and $128 million and $76 million for the six months ended June 30, 2020 and 2019, respectively. Gross realized losses and impairments were $(69) million and $(67) million for the three months ended and $(85) million and $(105) million for the six months ended June 30, 2020 and 2019, respectively. Contractual maturities of investments in debt securities (excluding mortgage and asset-backed securities) at June 30, 2020 are due as follows: (In millions) Amortized cost Estimated fair value Within one year $ 643 $ 657 After one year through five years 2,483 2,676 After five years through ten years 6,516 7,599 After ten years 20,575 26,261 We expect actual maturities to differ from contractual maturities because issuers have the right to call or prepay certain obligations. Substantially all our equity securities are classified within Level 1 and substantially all our debt securities are classified within Level 2, as their valuation is determined based on significant observable inputs. Investments with a fair value of $5,453 million and $5,210 million are classified within Level 3, as significant inputs to the valuation model are unobservable at June 30, 2020 and December 31, 2019, respectively. During the six months ended June 30, 2020 and 2019, there were no significant transfers into or out of Level 3. In addition to the equity securities described above, we hold $288 million and $517 million of equity securities without readily determinable fair value at June 30, 2020 and December 31, 2019, respectively, that are classified within All other assets in our consolidated Statement of Financial Position. Fair value adjustments, including impairments, recorded in earnings were $(65) million and $29 million for the three months ended and $(159) million and $23 million for the six months ended June 30, 2020 and 2019, respectively. |
CURRENT AND LONG-TERM RECEIVABL
CURRENT AND LONG-TERM RECEIVABLES | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
CURRENT AND LONG-TERM RECEIVABLES | NOTE 4. CURRENT AND LONG-TERM RECEIVABLES CURRENT RECEIVABLES Consolidated GE (In millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Customer receivables(a) $ 12,361 $ 12,594 $ 8,879 $ 9,507 Sundry receivables(b)(c) 4,840 5,049 5,021 5,247 Allowance for credit losses(d) (1,160 ) (874 ) (1,157 ) (872 ) Total current receivables $ 16,041 $ 16,769 $ 12,744 $ 13,883 (a) Includes Aviation receivables from CFM due to 737 MAX temporary fleet grounding of $1,367 million and $1,397 million as of June 30, 2020 and December 31, 2019, respectively. During 2020, CFM and Boeing reached an agreement to secure payment terms for engines delivered in 2019 and 2020, net of progress collections. Based on the agreement, the receivable is expected to be collected from Boeing through the first quarter of 2021. (b) Includes supplier advances, revenue sharing programs receivables in our Aviation business, other non-income based tax receivables, primarily value-added tax related to our operations in various countries outside of the U.S., receivables from disposed businesses, including receivables for transactional services agreements and certain intercompany balances that eliminate upon consolidation. Revenue sharing program receivables in Aviation are amounts due from third parties who participate in engine programs by developing and supplying certain engine components through the life of the program. The participants share in program revenues, receive a share of customer progress payments and share costs related to discounts and warranties. (c) Consolidated current receivables include deferred purchase price which represents our retained risk with respect to current customer receivables sold to third parties through one of the receivable facilities. The balance of the deferred purchase price held by GE Capital at June 30, 2020 and December 31, 2019 was $ 537 million and $ 421 million, respectively. (d) GE allowance for credit losses primarily increased due to net new provisions of $272 million , offset by write-offs and foreign currency impact. Sales of GE current customer receivables. When GE sells customer receivables to GE Capital or third parties it accelerates the receipt of cash that would otherwise have been collected from customers. In any given period, the amount of cash received from sales of customer receivables compared to the cash GE would have otherwise collected had those customer receivables not been sold represents the cash generated or used in the period relating to this activity. GE sales of customer receivables to GE Capital or third parties are made on arm's length terms and any discount related to time value of money is recognized by GE when the customer receivables are sold. As of June 30, 2020 and 2019, GE sold approximately 45% and 59% , respectively, of its gross customer receivables to GE Capital or third parties. Activity related to customer receivables sold by GE is as follows: (In millions) 2020 2019 GE Capital Third Parties GE Capital Third Parties Balance at January 1 $ 3,087 $ 6,757 $ 4,386 $ 7,880 GE sales to GE Capital 16,964 — 20,009 — GE sales to third parties 773 — 2,760 GE Capital sales to third parties (9,931 ) 9,931 (13,836 ) 13,836 Collections and other (6,807 ) (13,565 ) (7,140 ) (17,644 ) Reclassification from long-term customer receivables 170 — 209 — Balance at June 30 $ 3,482 (a) $ 3,897 $ 3,627 (a) $ 6,831 (a) At June 30, 2020 and 2019, $ 661 million and $ 964 million , respectively, of the current receivables purchased and retained by GE Capital had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE cash flows from operating activities (CFOA) of claims by GE Capital on receivables sold with recourse was insignificant for the six months ended June 30, 2020 and 2019. LONG-TERM RECEIVABLES Consolidated GE (In millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Long-term customer receivables(a) $ 688 $ 906 $ 465 $ 506 Long-term sundry receivables(b) 1,399 1,504 1,792 1,834 Allowance for credit losses (127 ) (128 ) (127 ) (128 ) Total long-term receivables $ 1,960 $ 2,282 $ 2,130 $ 2,212 (a) At June 30, 2020 and December 31, 2019, GE Capital held $223 million and $400 million , respectively, of GE long-term customer receivables, of which $197 million and $312 million had been purchased with recourse (i.e., GE retains all or some risk of default). GE sold an insignificant amount of long-term customer receivables during the six months ended June 30, 2020 and 2019. (b) Includes supplier advances, revenue sharing programs receivables, other non-income based tax receivables and certain intercompany balances that eliminate upon consolidation. UNCONSOLIDATED RECEIVABLES FACILITIES . GE Capital has two revolving receivables facilities, under which customer receivables purchased from GE are sold to third parties. In the first facility, which has a program size of $3,000 million , upon the sale of receivables, we receive proceeds of cash and deferred purchase price and the Company’s remaining risk with respect to the sold receivables is limited to the balance of the deferred purchase price. In the second facility, which has a program size of $800 million , upon the sale of receivables, we receive proceeds of cash only and therefore the Company has no remaining risk with respect to the sold receivables. The program size of the second facility decreased from $1,200 million to $800 million during the six months ended June 30, 2020. Activity related to these facilities is included in the GE Capital sales to third parties line in the sales of GE current customer receivables table above and is as follows: Six months ended June 30 (In millions) 2020 2019 Customer receivables sold to receivables facilities $ 7,679 $ 10,786 Total cash purchase price for customer receivables 7,240 10,497 Cash collections re-invested to purchase customer receivables 6,453 8,830 Non-cash increases to deferred purchase price $ 390 $ 137 Cash payments received on deferred purchase price 274 220 CONSOLIDATED SECURITIZATION ENTITIES . GE Capital consolidates three variable interest entities (VIEs) that purchased customer receivables and long-term customer receivables from GE. At June 30, 2020 and December 31, 2019, these VIEs held current customer receivables of $1,386 million and $2,080 million and long-term customer receivables of $217 million and $375 million , respectively. At June 30, 2020 and December 31, 2019, the outstanding non-recourse debt under their respective debt facilities was $396 million and $1,655 million , respectively. |
FINANCING RECEIVABLES AND ALLOW
FINANCING RECEIVABLES AND ALLOWANCES | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES AND ALLOWANCES | NOTE 5. FINANCING RECEIVABLES AND ALLOWANCES Consolidated GE Capital (In millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Loans, net of deferred income $ 1,212 $ 1,098 $ 5,049 $ 4,927 Investment in financing leases, net of deferred income 1,955 2,070 1,955 2,070 3,167 3,168 7,004 6,996 Allowance for losses (72 ) (33 ) (45 ) (17 ) Financing receivables – net $ 3,095 $ 3,134 $ 6,959 $ 6,979 Consolidated finance lease income was $34 million and $45 million in the three months ended June 30, 2020 and 2019, respectively, and $78 million and $91 million in the six months ended June 30, 2020 and 2019, respectively. We manage our GE Capital financing receivables portfolio using delinquency and nonaccrual data as key performance indicators. At June 30, 2020, 8.5% , 4.7% and 4.6% of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively, with the vast majority of nonaccrual financing receivables secured by collateral. At December 31, 2019, 4.2% , 2.9% and 6.1% of financing receivables were over 30 days past due, over 90 days past due and on nonaccrual, respectively. GE Capital financing receivables that comprise receivables purchased from GE are reclassified to either Current receivables or All other assets in our consolidated Statement of Financial Position. To the extent these receivables are purchased with full or limited recourse, they are excluded from the delinquency and nonaccrual data above. See Note 4 for further information. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 6. INVENTORIES (In millions) June 30, 2020 December 31, 2019 Raw materials and work in process $ 8,976 $ 8,771 Finished goods 6,275 5,333 Total inventories $ 15,251 $ 14,104 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 7. PROPERTY, PLANT AND EQUIPMENT (In millions) June 30, 2020 December 31, 2019 Original cost $ 76,137 $ 75,187 Less accumulated depreciation and amortization (33,317 ) (31,897 ) Property, plant and equipment – net $ 42,821 $ 43,290 Consolidated depreciation and amortization on property, plant and equipment was $1,290 million and $970 million for the three months ended June 30, 2020 and 2019 , respectively, and $2,281 million and $1,965 million in the six months ended June 30, 2020 and 2019, respectively. During the three and six months ended June 30, 2020, our GECAS business recognized pre-tax impairments of $292 million and $337 million , respectively, on its fixed-wing aircraft operating lease portfolio. Pre-tax impairments were insignificant for the three and six months ended June 30, 2019. We determined the fair values of these assets using primarily the income approach. These charges are included in costs of services sold within the Statement of Earnings (Loss) and within our Capital segment. Income on our operating lease portfolio, primarily from our GECAS business, was $795 million and $1,017 million for the three months ended June 30, 2020 and 2019, respectively, and comprised fixed lease income of $714 million and $774 million and variable lease income of $82 million and $243 million , respectively. Income on our operating lease portfolio was $1,672 million and $1,949 million for the six months ended June 30, 2020 and 2019, respectively, and comprises fixed lease income of $1,419 million and $1,539 million and variable lease income of $253 million and $411 million , respectively. Operating Lease Assets and Liabilities. Our consolidated Right of use operating lease (ROU) assets, included within property, plant and equipment in our Statement of Financial Position were $2,683 million and $2,896 million , as of June 30, 2020 and December 31, 2019, respectively. Our consolidated operating lease liabilities, included in All other liabilities in our Statement of Financial Position, were $2,930 million and $3,162 million , as of June 30, 2020 and December 31, 2019, respectively, which included GE Industrial operating lease liabilities of $3,117 million and $3,369 million , respectively. OPERATING LEASE EXPENSE Three months ended June 30 Six months ended June 30 (In millions) 2020 2019 2020 2019 Long-term (fixed) $ 183 $ 219 $ 360 $ 445 Long-term (variable) 24 27 45 71 Short-term 54 43 123 90 Total operating lease expense $ 261 $ 289 $ 528 $ 606 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL (In millions) January 1, 2020 Impairments Currency exchange Balance at Power $ 145 $ — $ — $ 145 Renewable Energy 3,290 — (67 ) 3,223 Aviation 9,859 (877 ) 8 8,989 Healthcare 11,728 — (4 ) 11,723 Capital 839 (839 ) — — Corporate 873 — (3 ) 871 Total $ 26,734 $ (1,717 ) $ (66 ) $ 24,951 We test goodwill for impairment annually in the fourth quarter. In assessing the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates, we consider all available evidence, including (i) the results of our impairment testing from the most recent testing date (in particular, the magnitude of the excess of fair value over carrying value observed), (ii) downward revisions to internal forecasts or decreases in market multiples (and the magnitude thereof), if any, and (iii) declines in market capitalization below book value (and the magnitude and duration of those declines), if any. Due to the impact of recent events, including challenges from declines in current market conditions, we performed an interim impairment test at our Additive reporting unit within our Aviation segment and GECAS reporting unit within our Capital segment in the second quarter of 2020, both of which incorporated a combination of income and market valuation approaches. The results of the analysis indicated that carrying values of both reporting units were in excess of their respective fair values. Therefore, we recorded non-cash impairment losses of $877 million and $839 million for the Additive and GECAS reporting units, respectively, in the caption Goodwill impairments in our consolidated Statement of Earnings (Loss). All of the goodwill in Additive was the result of the Arcam AB and Concept Laser GmBH acquisitions in 2016. Of the $839 million of goodwill for GECAS, $729 million arose from the acquisition of Milestone Aviation, our helicopter leasing business, in 2015. After the impairment charges, there is $222 million goodwill remaining in our Additive reporting unit and no goodwill remaining in our GECAS reporting unit. Since the fair value of our Additive reporting unit now equals its carrying value, we will continue to monitor the remaining goodwill in this reporting unit for impairment in future periods. Also, in the second quarter of 2020, we performed an analysis of the impact of recent events, including business and industry specific considerations, on the fair value of our Grid Solutions software reporting unit in our Digital business within Corporate and concluded an interim impairment test was not required. While the goodwill of this reporting unit is not currently impaired there can be no assurances that goodwill will not be impaired in future periods. We will continue to monitor the operating results, cash flow forecasts and challenges from declines in current market conditions, as well as impacts of COVID-19 for this reporting unit as its fair value is not significantly in excess of its carrying value. At June 30, 2020, goodwill in our Grid Solutions software reporting unit was $871 million . OTHER INTANGIBLE ASSETS - NET (In millions) June 30, 2020 December 31, 2019 Intangible assets subject to amortization $ 10,168 $ 10,653 Intangible assets decreased in the second quarter of 2020, primarily as a result of amortization . Consolidated amortization expense was $308 million and $357 million in the three months ended June 30, 2020 and 2019, respectively, and $ 648 million and $724 million |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | NOTE 9. REVENUES. The equipment and services revenues classification in the table below is consistent with our segment MD&A presentation. EQUIPMENT & SERVICES REVENUES Three months ended June 30 (In millions) 2020 2019 Equipment Services Total Equipment Services Total Power $ 1,488 $ 2,669 $ 4,156 $ 1,463 $ 3,218 $ 4,681 Renewable Energy 2,722 783 3,505 2,867 760 3,627 Aviation 2,031 2,352 4,384 3,033 4,844 7,877 Healthcare 2,050 1,843 3,893 2,838 2,095 4,934 Corporate items and industrial eliminations 9 120 129 69 229 298 Total GE Industrial revenues $ 8,299 $ 7,767 $ 16,066 $ 10,269 $ 11,147 $ 21,416 Six months ended June 30 (In millions) 2020 2019 Equipment Services Total Equipment Services Total Power $ 2,994 $ 5,187 $ 8,181 $ 3,039 $ 6,259 $ 9,298 Renewable Energy 5,298 1,401 6,698 4,848 1,317 6,165 Aviation 4,475 6,801 11,276 6,146 9,685 15,831 Healthcare 4,749 3,872 8,620 5,492 4,125 9,616 Corporate items and industrial eliminations (39 ) 174 135 352 478 830 Total GE Industrial revenues $ 17,476 $ 17,434 $ 34,910 $ 19,878 $ 21,863 $ 41,740 REVENUES Three months ended June 30 Six months ended June 30 (In millions) 2020 2019 2020 2019 Gas Power $ 3,077 $ 3,246 $ 5,936 $ 6,510 Power Portfolio 1,079 1,434 2,244 2,788 Power $ 4,156 $ 4,681 $ 8,181 $ 9,298 Onshore Wind $ 2,487 $ 2,450 $ 4,612 $ 3,891 Grid Solutions equipment and services 812 935 1,652 1,852 Hydro, Offshore Wind and other 205 242 435 422 Renewable Energy $ 3,505 $ 3,627 $ 6,698 $ 6,165 Commercial Engines & Services $ 2,232 $ 5,848 $ 7,009 $ 11,797 Military 1,161 976 2,121 2,013 Systems & Other 990 1,052 2,146 2,021 Aviation $ 4,384 $ 7,877 $ 11,276 $ 15,831 Healthcare Systems $ 3,523 $ 3,589 $ 6,971 $ 7,021 Pharmaceutical Diagnostics 370 517 820 1,003 BioPharma — 828 830 1,593 Healthcare $ 3,893 $ 4,934 $ 8,620 $ 9,616 Corporate items and industrial eliminations 129 298 135 830 Total GE Industrial revenues $ 16,066 $ 21,416 $ 34,910 $ 41,740 Capital 1,845 2,321 3,768 4,548 GE Capital-GE eliminations $ (162 ) $ (323 ) $ (406 ) $ (672 ) Consolidated revenues $ 17,750 $ 23,414 $ 38,273 $ 45,616 REMAINING PERFORMANCE OBLIGATION . As of June 30, 2020, the aggregate amount of the contracted revenues allocated to our unsatisfied (or partially unsatisfied) performance obligations was $227,598 million . We expect to recognize revenue as we satisfy our remaining performance obligations as follows: (1) equipment-related remaining performance obligation of $44,411 million, of which 63% , 83% and 97% is expected to be satisfied within 1 , 2 and 5 years , respectively, and the remaining thereafter; and (2) services-related remaining performance obligation of $183,188 million, of which 11% , 43% , 67% and 82% 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. |
CONTRACT AND OTHER DEFERRED ASS
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME | 6 Months Ended |
Jun. 30, 2020 | |
Contractors [Abstract] | |
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME | NOTE 10. CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME Contract and other deferred assets decrease d $1,246 million in the first half of 2020 . Our long-term service agreements decrease d primarily due to billings of $4,527 million and a net unfavorable change in estimated profitability of $791 million at Aviation and $22 million at Power, offset by revenues recognized of $4,670 million . The decrease in long-term service agreements at Aviation included a $536 million pre-tax charge to reflect the cumulative impacts of changes to billing and cost assumptions for certain long-term service agreements, reflecting lower engine utilization, anticipated customer fleet restructuring and contract modifications. Additional adjustments could occur in future periods and could be material for certain long-term service agreements if actual customer operating behavior differs significantly from Aviation's current estimates. June 30, 2020 (In millions) Power Aviation Renewable Energy Healthcare Other Total Revenues in excess of billings $ 5,323 $ 4,404 $ — $ — $ — $ 9,728 Billings in excess of revenues (1,505 ) (3,910 ) — — — (5,415 ) Long-term service agreements(a) 3,818 494 — — — 4,312 Short-term and other service agreements 152 343 41 187 37 759 Equipment contract revenues(b) 2,415 76 1,249 307 155 4,202 Total contract assets 6,385 913 1,290 494 192 9,273 Deferred inventory costs 933 475 982 339 — 2,730 Nonrecurring engineering costs 24 2,355 41 32 — 2,452 Customer advances and other(c) — 1,132 — — (32 ) 1,100 Contract and other deferred assets $ 7,342 $ 4,875 $ 2,313 $ 865 $ 160 $ 15,555 December 31, 2019 (In millions) Revenues in excess of billings $ 5,342 $ 4,996 $ — $ — $ — $ 10,338 Billings in excess of revenues (1,561 ) (3,719 ) — — — (5,280 ) Long-term service agreements(a) 3,781 1,278 — — — 5,058 Short-term and other service agreements 190 316 43 169 — 717 Equipment contract revenues(b) 2,508 82 1,217 324 106 4,236 Total contract assets 6,478 1,675 1,260 492 106 10,011 Deferred inventory costs 943 287 1,677 359 — 3,267 Nonrecurring engineering costs 44 2,257 47 35 8 2,391 Customer advances and other(c) — 1,165 — — (32 ) 1,133 Contract and other deferred assets $ 7,465 $ 5,384 $ 2,985 $ 886 $ 82 $ 16,801 (a) Included amounts due from customers at Aviation for the sales of engines, spare parts and services, which we will collect through higher usage-based fees from servicing equipment under long-term service agreements, totaling $1,791 million and $1,712 million as of June 30, 2020 and December 31, 2019 , respectively. The corresponding discount is recorded within liabilities as Deferred income and amounted to $297 million and $308 million as of June 30, 2020 and December 31, 2019 , respectively. (b) Included are amounts due from customers at Power for the sale of services upgrades, which we collect through incremental fixed or usage-based fees from servicing the equipment under long-term service agreements, totaling $862 million and $909 million as of June 30, 2020 and December 31, 2019 , respectively. (c) Included advances to and amounts due from customers at Aviation for the sale of engines, spare parts and services, which we will collect through incremental fees for goods and services to be delivered in future periods, totaling $955 million and $986 million as of June 30, 2020 and December 31, 2019 , respectively. The corresponding discount is recorded within liabilities as Deferred income and amounted to $262 million and $256 million as of June 30, 2020 and December 31, 2019 , respectively. Progress collections and deferred income decrease d $604 million in the first half of 2020 primarily due to the timing of revenue recognition in excess of new collections received, primarily at Power and Renewable Energy. These decreases were partially offset by early payments received at our Aviation Military equipment business of $708 million in the second quarter of 2020 as part of the U.S. Department of Defense's efforts to support vendors in its supply chain during the pandemic. Revenues recognized for contracts included in liability position at the beginning of the year were $6,585 million and $7,498 million for the six months ended June 30, 2020 and 2019 , respectively . June 30, 2020 (In millions) Power Aviation Renewable Energy Healthcare Other Total Progress collections on equipment contracts $ 5,011 $ 152 $ 1,184 $ — $ — $ 6,347 Other progress collections 431 5,324 3,716 343 171 9,985 Total progress collections 5,441 5,476 4,901 343 171 16,332 Deferred income(a) 48 1,569 329 1,691 121 3,759 GE Progress collections and deferred income $ 5,489 $ 7,046 $ 5,230 $ 2,034 $ 292 $ 20,091 December 31, 2019 (In millions) Progress collections on equipment contracts $ 5,857 $ 115 $ 1,268 $ — $ — $ 7,240 Other progress collections 413 4,748 4,193 305 189 9,849 Total progress collections 6,270 4,863 5,461 305 189 17,089 Deferred income(a) 49 1,528 284 1,647 98 3,606 GE Progress collections and deferred income $ 6,319 $ 6,391 $ 5,745 $ 1,952 $ 287 $ 20,694 (a) Included in this balance are finance discounts associated with customer advances at Aviation of $560 million and $564 million as of June 30, 2020 and December 31, 2019 , respectively. |
BORROWINGS
BORROWINGS | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
BORROWINGS | NOTE 11. BORROWINGS (In millions) June 30, 2020 December 31, 2019 Commercial paper $ 505 $ 3,008 Current portion of long-term borrowings 38 766 Current portion of long-term borrowings assumed by GE 3,679 5,473 Other 1,194 1,832 Total GE short-term borrowings $ 5,416 $ 11,079 Current portion of long-term borrowings $ 4,000 $ 11,226 Intercompany payable to GE 3,237 2,104 Other 601 804 Total GE Capital short-term borrowings $ 7,837 $ 14,134 Eliminations (4,195 ) (3,140 ) Total short-term borrowings $ 9,059 $ 22,072 Senior notes $ 18,387 $ 14,762 Senior notes assumed by GE 20,046 23,024 Subordinated notes assumed by GE 1,673 2,871 Other 293 324 Total GE long-term borrowings $ 40,398 $ 40,980 Senior notes $ 31,253 $ 25,371 Subordinated notes 188 178 Intercompany payable to GE 17,435 17,038 Other 584 626 Total GE Capital long-term borrowings $ 49,460 $ 43,213 Eliminations (17,435 ) (17,038 ) Total long-term borrowings $ 72,423 $ 67,155 Non-recourse borrowings of consolidated securitization entities 396 1,655 Total borrowings $ 81,878 $ 90,882 At June 30, 2020 , the outstanding GE Capital borrowings that had been assumed by GE as part of the GE Capital Exit Plan was $25,398 million ( $3,679 million short term and $21,719 million long term), for which GE has an offsetting Receivable from GE Capital of $20,672 million . The difference of $4,726 million ( $442 million in short-term borrowings and $4,284 million in long-term borrowings) represents the amount of borrowings GE Capital had funded with available cash to GE via intercompany loans in lieu of GE issuing borrowings externally. GE repaid a total of $7.5 billion of intercompany loans from GE Capital in the second quarter of 2020. At June 30, 2020 , total GE borrowings of $25,142 million comprised GE-issued borrowings of $20,416 million and intercompany loans from GE Capital to GE of $4,726 million as described above. GE has provided a full and unconditional guarantee on the payment of the principal and interest on all tradable senior and subordinated outstanding long-term debt securities issued by GE Capital. This guarantee applies to $32,426 million and $34,683 million of GE Capital debt at June 30, 2020 and December 31, 2019, respectively. Non-recourse borrowings of consolidated securitization entities included an insignificant amount and $1,569 million of current portion of long-term borrowings at June 30, 2020 and December 31, 2019, respectively. See Notes 4 and 18 for further information. In the second quarter of 2020, GE issued a total of $7,500 million in aggregate principal amount of senior unsecured debt, comprising $1,000 million of 3.450% Notes due 2027, $1,250 million of 3.625% Notes due 2030, $1,500 million of 4.250% Notes due 2040, and $3,750 million of 4.350% Notes due 2050, and used these proceeds in addition to a portion of the proceeds from the BioPharma sale to repay a total of $7,500 million of intercompany loans to GE Capital and to complete a tender offer to purchase $4,237 million in aggregate principal amount of certain GE unsecured debt, comprising $2,046 million of 2.700% Notes due 2022, €934 million ( $1,011 million equivalent) of 0.375% Notes due 2022, €425 million ( $460 million equivalent) of 1.250% Notes due 2023, €376 million ( $407 million equivalent) of floating-rate Notes due 2020, and $312 million of 3.375% Notes due 2024. The total cash consideration paid for these purchases was $4,282 million and the total carrying amount of the purchased notes was $4,228 million , resulting in a loss of $63 million (including $9 million of fees and other costs associated with the tender) which was recorded in Interest and other financial charges in the GE Statement of Earnings (Loss). In addition to the purchase price, GE paid any accrued and unpaid interest on the purchased notes through the date of purchase. In the second quarter of 2020 , GE Capital issued a total of $6,000 million in aggregate principal amount of senior unsecured debt with maturities ranging from 2025 to 2032, and used these proceeds in addition to the proceeds received from repayments of intercompany loans from GE to complete tender offers to purchase a total of $9,787 million in aggregate principal amount of certain senior unsecured debt. The total cash consideration paid for these purchases was $9,950 million and the total carrying amount of the purchased notes was $9,827 million , resulting in a total loss of $143 million (including $20 million of fees and other costs associated with the tender) which was recorded in Interest and other financial charges in the GE Capital Statement of Earnings (Loss). In addition to the purchase price, GE Capital paid any accrued and unpaid interest on the purchased notes through the date of purchase. See Note 17 for further information about borrowings and associated interest rate swaps. |
INSURANCE LIABILITIES AND ANNUI
INSURANCE LIABILITIES AND ANNUITY BENEFITS | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
INSURANCE LIABILITIES AND ANNUITY BENEFITS | NOTE 12. INSURANCE LIABILITIES AND ANNUITY BENEFITS. Insurance liabilities and annuity benefits comprise mainly obligations to annuitants and insureds in our run-off insurance activities. June 30, 2020 (In millions) Long-term care insurance contracts Structured settlement annuities & life insurance contracts Other Other adjustments(a) Total Future policy benefit reserves $ 16,794 $ 9,385 $ 179 $ 6,873 $ 33,231 Claim reserves 4,330 282 1,087 — 5,699 Investment contracts — 1,085 1,044 — 2,129 Unearned premiums and other 27 187 143 — 357 21,151 10,939 2,453 6,873 41,416 Eliminations — — (462 ) — (462 ) Total $ 21,151 $ 10,939 $ 1,991 $ 6,873 $ 40,954 December 31, 2019 (In millions) Future policy benefit reserves $ 16,755 $ 9,511 $ 183 $ 5,655 $ 32,104 Claim reserves 4,238 252 1,125 — 5,615 Investment contracts — 1,136 1,055 — 2,191 Unearned premiums and other 30 196 96 — 322 21,023 11,095 2,459 5,655 40,232 Eliminations — — (406 ) — (406 ) Total $ 21,023 $ 11,095 $ 2,053 $ 5,655 $ 39,826 (a) To the extent that unrealized gains on specific investment securities supporting our insurance contracts would result in a premium deficiency should those gains be realized, an increase in future policy benefit reserves is recorded, with an after-tax reduction of net unrealized gains recognized through Accumulated other comprehensive income (loss) (AOCI) in our consolidated Statement of Earnings (Loss). The increase in insurance liabilities and annuity benefits of $1,128 million from December 31, 2019 to June 30, 2020, is primarily due to an adjustment of $1,218 million resulting from an increase in unrealized gains on investment securities that would result in a premium deficiency should those gains be realized. Claim reserves included incurred claims of $945 million and $981 million , of which insignificant amounts related to the recognition of adjustments to prior year claim reserves arising from our periodic reserve evaluation for the six months ended June 30, 2020 and 2019, respectively. Paid claims were $888 million and $824 million in the six months ended June 30, 2020 and 2019, respectively. Reinsurance recoverables are recorded when we cede insurance risk to third parties but are not relieved from our primary obligation to policyholders and cedents. These amounts, net of allowances of $1,430 million and $1,355 million , are included in Other GE Capital receivables in our consolidated Statement of Financial Position and amounted to $2,465 million and $2,416 million at June 30, 2020 and December 31, 2019, respectively. |
POSTRETIREMENT BENEFIT PLANS
POSTRETIREMENT BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | NOTE 13. POSTRETIREMENT BENEFIT PLANS. We sponsor a number of pension and retiree health and life insurance benefit plans that we present in three categories, principal pension plans, other pension plans and principal retiree benefit plans. Principal pension plans represent the GE Pension Plan and the GE Supplementary Pension Plan. Other pension plans include U.S. and non-U.S. pension plans with pension assets or obligations greater than $50 million . Principal retiree benefit plans provide health and life insurance benefits to certain eligible participants and these participants share in the cost of the healthcare benefits. Smaller pension plans with pension assets or obligations less than $50 million and other retiree benefit plans are not presented. EFFECT ON OPERATIONS OF BENEFIT PLANS. The components of benefit plans costs other than the service cost are included in the caption Non-operating benefit costs in our consolidated Statement of Earnings (Loss). Principal pension plans Three months ended June 30 Six months ended June 30 (In millions) 2020 2019 2020 2019 Service cost for benefits earned $ 192 $ 160 $ 345 $ 318 Prior service cost amortization 37 34 74 67 Expected return on plan assets (748 ) (862 ) (1,496 ) (1,725 ) Interest cost on benefit obligations 589 723 1,176 1,449 Net actuarial loss amortization 851 770 1,699 1,533 Curtailment/settlement loss (gain) — — — 51 Benefit plans cost $ 921 $ 825 $ 1,798 $ 1,693 Principal retiree benefit plans income was $22 million and $30 million for the three months ended June 30, 2020 and 2019, and $54 million and $91 million for the six months ended June 30, 2020 and 2019, respectively, which includes a curtailment gain of $33 million in 2019 resulting from the Transportation transaction. Other pension plans cost were immaterial for the three months ended June 30, 2020 and 2019, and for the six months ended June 30, 2020 and 2019. We also have a defined contribution plan for eligible U.S. employees that provides discretionary contributions. Defined contribution plan costs were $87 million and $90 million for the three months ended June 30, 2020 and 2019, and $182 million and $191 million for the six months ended June 30, 2020 and 2019, respectively. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14. INCOME TAXES. Our consolidated effective income tax rate was (3.3)% and (5.0)% during the six months ended June 30, 2020 and 2019, respectively. The negative rates for 2020 and 2019 reflect tax benefits on pre-tax income. The rate for 2020 is lower than the U.S. statutory rate primarily due to the lower tax rate on the sale of our BioPharma business. The low tax rate on the sale reflects gain outside the U.S. taxed at lower than 21% and because we recorded $633 million of the tax associated with preparatory steps for the transaction in the fourth quarter of 2019. This was partially offset by the largely non-deductible goodwill impairment charges associated with our Additive business within our Aviation segment and our GECAS business within our Capital segment. The rate for 2019 benefited from favorable audit resolutions, U.S. business credits and the lower-taxed disposition of our Digital ServiceMax business. This was partially offset by the cost of global activities, including the base erosion and global intangible low tax income provisions and from a largely non-deductible goodwill impairment charge associated with our Grid Solutions equipment and services business within our Renewable Energy segment. The Internal Revenue Service (IRS) is currently auditing our consolidated U.S. income tax returns for 2014-2015 and 2016-2018. It is possible the 2014-2015 audit will be completed in the next 12 months. The United Kingdom tax authorities disallowed interest deductions claimed by GE Capital for the years 2004-2015 that could result in a potential impact of approximately $1 billion , which includes a possible assessment of tax and reduction of deferred tax assets, not including interest and penalties. We are contesting the disallowance. We comply with all applicable tax laws and judicial doctrines of the United Kingdom and believe that the entire benefit is more likely than not to be sustained on its technical merits. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 15. SHAREHOLDERS’ EQUITY ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Three months ended June 30 Six months ended June 30 (In millions) 2020 2019 2020 2019 Beginning balance $ 20 $ (16 ) $ 61 $ (39 ) AOCI before reclasses – net of taxes of $8, $(23), $7 and $15(a) 34 94 41 121 Reclasses from AOCI – net of taxes of $(2), $(5), $(14) and $(6) (7 ) (18 ) (55 ) (22 ) AOCI 27 76 (14 ) 99 Less AOCI attributable to noncontrolling interests — — — 1 Investment securities AOCI ending balance $ 47 $ 60 $ 47 $ 60 Beginning balance $ (4,685 ) $ (5,810 ) $ (4,818 ) $ (6,134 ) AOCI before reclasses – net of taxes of $25, $13, $20 and $39 (58 ) (308 ) (613 ) (1 ) Reclasses from AOCI – net of taxes of $0, $0, $0 and $(4)(b) 1 167 691 284 AOCI (57 ) (141 ) 78 283 Less AOCI attributable to noncontrolling interests 1 (77 ) 3 22 Currency translation adjustments AOCI ending balance $ (4,743 ) $ (5,874 ) $ (4,743 ) $ (5,874 ) Beginning balance $ (163 ) $ 49 $ 49 $ 13 AOCI before reclasses – net of taxes of $(24), $(8), $(69) and $3 40 (50 ) (222 ) (16 ) Reclasses from AOCI – net of taxes of $(1), $4, $8 and $1(b) 13 25 64 28 AOCI 53 (25 ) (158 ) 12 Less AOCI attributable to noncontrolling interests — (1 ) — 1 Cash flow hedges AOCI ending balance $ (109 ) $ 26 $ (109 ) $ 26 Beginning balance $ (5,991 ) $ (7,708 ) $ (7,024 ) $ (8,254 ) AOCI before reclasses – net of taxes of $(2), $13, $28 and $(35) (74 ) 7 145 (111 ) Reclasses from AOCI – net of taxes of $187, $164, $426 and $347(b) 678 632 1,495 1,294 AOCI 604 639 1,640 1,183 Less AOCI attributable to noncontrolling interests — (6 ) 3 (8 ) Benefit plans AOCI ending balance $ (5,387 ) $ (7,063 ) $ (5,387 ) $ (7,063 ) AOCI at June 30 $ (10,194 ) $ (12,852 ) $ (10,194 ) $ (12,852 ) (a) Included adjustments of $(2,229) million and $(1,054) million for the three months ended June 30, 2020 and 2019, respectively and $(962) million and $(2,011) million for the six months ended June 30, 2020 and 2019, respectively, related to insurance liabilities and annuity benefits in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment security gains been realized. See Note 12 for further information. (b) The total reclassification from AOCI included $836 million , including currency translation of $688 million , net of taxes, for the six months ended June 30, 2020, related to the sale of our BioPharma business within our Healthcare segment. In 2016, we issued $5,694 million of GE Series D preferred stock, which are callable on January 21, 2021. In addition to Series D, $250 million of existing GE Series A, B and C preferred stock are also outstanding. The total carrying value of GE preferred stock at June 30, 2020 was $5,826 million and will increase to $5,944 million by the respective call dates through periodic accretion. See our Annual Report on Form 10-K for the year ended December 31, 2019 for further information. Noncontrolling interests in equity of consolidated affiliates amounted to $1,579 million and $1,545 million at June 30, 2020 and December 31, 2019, respectively. Redeemable noncontrolling interests, presented within All other liabilities in our consolidated Statement of Financial Position, include common shares issued by our affiliates that are redeemable at the option of the holder of those interests and amounted to $474 million and $439 million as of June 30, 2020 and December 31, 2019, respectively. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE INFORMATION | NOTE 16. EARNINGS PER SHARE INFORMATION Three months ended June 30 2020 2019 (Earnings for per-share calculation, in millions; per-share amounts in dollars) Diluted Basic Diluted Basic Earnings from continuing operations $ (1,995 ) $ (1,995 ) $ (114 ) $ (114 ) Preferred stock dividends (192 ) (192 ) (188 ) (188 ) Accretion of redeemable noncontrolling interests, net of tax(a) (135 ) (135 ) — — Earnings from continuing operations attributable to common shareholders (2,322 ) (2,322 ) (302 ) (302 ) Earnings (loss) from discontinued operations 7 7 241 241 Net earnings (loss) attributable to GE common shareholders $ (2,314 ) $ (2,314 ) $ (61 ) $ (61 ) Shares of GE common stock outstanding 8,750 8,750 8,724 8,724 Employee compensation-related shares (including stock options) — — — — Total average equivalent shares 8,750 8,750 8,724 8,724 Earnings per share from continuing operations $ (0.27 ) $ (0.27 ) $ (0.03 ) $ (0.03 ) Earnings (loss) per share from discontinued operations — — 0.03 0.03 Net earnings (loss) per share (0.26 ) (0.26 ) (0.01 ) (0.01 ) Potentially dilutive securities(b) 459 486 Six months ended June 30 2020 2019 (Earnings for per-share calculation; in millions; per-share amounts in dollars) Diluted Basic Diluted Basic Earnings from continuing operations $ 4,370 $ 4,370 $ 828 $ 843 Preferred stock dividends (235 ) (235 ) (228 ) (228 ) Accretion of redeemable noncontrolling interests, net of tax(a) $ (135 ) $ (135 ) — — Earnings from continuing operations attributable to common shareholders $ 4,000 $ 4,000 $ 600 $ 616 Earnings (loss) from discontinued operations (168 ) (168 ) 2,845 2,861 Net earnings attributable to GE common shareholders $ 3,832 $ 3,832 $ 3,461 $ 3,476 Shares of GE common stock outstanding 8,746 8,746 8,716 8,716 Employee compensation-related shares (including stock options) 6 — 13 — Total average equivalent shares 8,752 8,746 8,730 8,716 Earnings from continuing operations $ 0.46 $ 0.46 $ 0.07 $ 0.07 Loss from discontinued operations (0.02 ) (0.02 ) 0.33 0.33 Net earnings 0.44 0.44 0.40 0.40 Potentially dilutive securities(b) 440 468 (a) Represents accretion adjustment of redeemable noncontrolling interests in our Additive business within our Aviation segment. (b) Outstanding stock awards not included in the computation of diluted earnings per share because their effect was antidilutive. Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities, and, therefore, are included in the computation of earnings per share pursuant to the two-class method. For the three months ended June 30, 2020 and 2019, as a result of the loss from continuing operations, losses were not allocated to the participating securities. For the six months ended June 30, 2020 and 2019, application of this treatment had an insignificant effect. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 17. FINANCIAL INSTRUMENTS. The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and the vast majority of our liabilities’ fair value are considered Level 2. June 30, 2020 December 31, 2019 (In millions) Carrying Estimated Carrying Estimated Assets Loans and other receivables $ 3,668 $ 3,722 $ 4,113 $ 4,208 Liabilities Borrowings (Note 11) 81,878 83,054 90,882 97,754 Investment contracts (Note 12) 2,129 2,597 2,191 2,588 The lower fair value in relation to carrying value for borrowings at June 30, 2020 compared to December 31, 2019 was driven primarily by widening GE credit spreads, partially offset by a decline in market interest rates. Unlike the carrying amount, estimated fair value of borrowings included $863 million and $1,106 million of accrued interest at June 30, 2020 and December 31, 2019, respectively. Assets and liabilities that are reflected in the accompanying financial statements at fair value are not included in the above disclosures; such items include cash and equivalents, investment securities and derivative financial instruments . DERIVATIVES AND HEDGING. Our policy requires that derivatives are used solely for managing risks and not for speculative purposes. Total gross notional was $89,801 million ( $44,760 million in GE Capital and $45,041 million in GE) and $98,018 million ( $55,704 million in GE Capital and $42,314 million in GE) at June 30, 2020 and December 31, 2019, respectively. GE Capital notional relates primarily to managing interest rate and currency risk between financial assets and liabilities, and GE notional relates primarily to managing currency risk. FAIR VALUE OF DERIVATIVES June 30, 2020 December 31, 2019 (In millions) Gross Notional All other assets All other liabilities Gross Notional All other assets All other liabilities Interest rate contracts $ 20,790 $ 2,081 $ 9 $ 23,918 $ 1,636 $ 11 Currency exchange contracts 6,457 58 194 7,044 99 46 Derivatives accounted for as hedges $ 27,247 $ 2,139 $ 203 $ 30,961 $ 1,734 $ 57 Interest rate contracts $ 717 $ 9 $ 7 $ 3,185 $ 18 $ 12 Currency exchange contracts 60,356 750 1,018 62,165 697 744 Other contracts 1,482 87 30 1,706 123 40 Derivatives not accounted for as hedges $ 62,554 $ 846 $ 1,055 $ 67,056 $ 838 $ 796 Gross derivatives $ 89,801 $ 2,985 $ 1,257 $ 98,018 $ 2,572 $ 853 Netting and credit adjustments $ (704 ) $ (710 ) $ (546 ) $ (546 ) Cash collateral adjustments (1,212 ) (149 ) (1,286 ) (105 ) Net derivatives recognized in statement of financial position $ 1,069 $ 398 $ 740 $ 202 Net accrued interest $ 118 $ 15 $ 182 $ 1 Securities held as collateral (720 ) — (469 ) — Net amount $ 467 $ 413 $ 452 $ 203 Fair value of derivatives in our consolidated Statement of Financial Position excludes accrued interest. Cash collateral adjustments excluded excess collateral received and posted of $104 million and $998 million at June 30, 2020 , respectively, and $104 million and $603 million at December 31, 2019, respectively. Securities held as collateral excluded excess collateral received of $37 million and $27 million at June 30, 2020 and December 31, 2019, respectively. FAIR VALUE HEDGES. We use derivatives to hedge the effects of interest rate and currency exchange rate changes on our borrowings. At June 30, 2020 , the cumulative amount of hedging adjustments of $6,503 million (including $2,342 million on discontinued hedging relationships) was included in the carrying amount of the hedged liability of $46,255 million . At June 30, 2019, the cumulative amount of hedging adjustments of $4,221 million (including $2,568 million on discontinued hedging relationships) was included in the carrying amount of the hedged liability of $58,344 million . The cumulative amount of hedging adjustments was primarily recorded in long-term borrowings. CASH FLOW HEDGES. Changes in the fair value of cash flow hedges are recorded in AOCI and recorded in earnings in the period in which the hedged transaction occurs. The gain (loss) recognized in AOCI was $53 million and $(49) million for the three months ended June 30, 2020 and 2019, respectively, and $(260) million and $(2) million for the six months ended June 30, 2020 and 2019, respectively. These amounts were primarily related to currency exchange and interest rate contracts. The total amount in AOCI related to cash flow hedges of forecasted transactions was a $118 million loss at June 30, 2020 . We expect to reclassify $85 million of loss to earnings in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. For all periods presented we recognized an immaterial amount related to hedged forecasted transactions and firm commitments that did not occur by the end of the originally specified period. At June 30, 2020 and 2019, the maximum term of derivative instruments that hedge forecasted transactions was 15 years and 13 years , respectively. NET INVESTMENT HEDGES. For these hedges, the portion of the fair value changes of the derivatives or debt instruments that relates to changes in spot currency exchange rates is recorded in a separate component of AOCI. The portion of the fair value changes of the derivatives related to differences between spot and forward rates is recorded in earnings each period. The amounts recorded in AOCI affect earnings if the hedged investment is sold, substantially liquidated, or control is lost. The total gain (loss) recognized in AOCI on hedging instruments for the three months ended June 30, 2020 and 2019 was $(90) million and $86 million , and for the six months ended June 30, 2020 and 2019 was $68 million and $18 million , respectively, predominantly from foreign currency debt. For all periods presented we recognized an immaterial amount excluded from assessment and recognized in earnings. The carrying value of foreign currency debt designated as net investment hedges was $7,743 million and $12,421 million at June 30, 2020 and 2019, respectively. The gain (loss) reclassified from AOCI into earnings was immaterial for both the three and six months ended June 30, 2020 and 2019, respectively. EFFECTS OF DERIVATIVES ON EARNINGS. All derivatives are marked to fair value on our balance sheet, whether they are designated in a hedging relationship for accounting purposes or are used as economic hedges. For derivatives not designated as hedging instruments, substantially all of the gain or loss recognized in earnings is offset by either the current period change in value of underlying exposures, which is recorded in earnings in the current period or a future period when the recording of the exposures occur. The table below presents the effect of our derivative financial instruments in the consolidated Statement of Earnings: Three months ended June 30, 2020 Three months ended June 30, 2019 (In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income Total amounts presented in the consolidated Statement of Earnings $ 17,750 $ 15,083 $ 997 $ 3,079 $ 2,078 $ 23,414 $ 17,412 $ 929 $ 3,425 $ 164 Total effect of cash flow hedges $ 15 $ (13 ) $ (12 ) $ (2 ) $ — $ (15 ) $ (5 ) $ (9 ) $ — $ — Hedged items $ (122 ) $ (659 ) Derivatives designated as hedging instruments 109 646 Total effect of fair value hedges $ (12 ) $ (14 ) Interest rate contracts $ (12 ) $ — $ (4 ) $ — $ — $ (14 ) $ — $ (14 ) $ — $ — Currency exchange contracts (95 ) 16 — 104 (32 ) (433 ) (31 ) — (17 ) (27 ) Other — — — 97 11 — — 27 — (12 ) Total effect of derivatives not designated as hedges $ (107 ) $ 16 $ (4 ) $ 201 $ (21 ) $ (447 ) $ (31 ) $ 13 $ (17 ) $ (39 ) Six months ended June 30, 2020 Six months ended June 30, 2019 (In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income Total amounts presented in the consolidated Statement of Earnings $ 38,273 $ 30,778 $ 1,791 $ 6,144 $ 8,947 $ 45,616 $ 33,620 $ 1,993 $ 6,827 $ 1,012 Total effect of cash flow hedges $ (6 ) $ (38 ) $ (23 ) $ (5 ) $ — $ 5 $ (14 ) $ (19 ) $ (1 ) $ — Hedged items $ (2,601 ) $ (1,186 ) Derivatives designated as hedging instruments 2,620 1,161 Total effect of fair value hedges $ 19 $ (25 ) Interest rate contracts $ (35 ) $ — $ (13 ) $ — $ — $ (18 ) $ — $ (29 ) $ — $ — Currency exchange contracts (616 ) 29 — 159 (21 ) (43 ) (22 ) — (62 ) (25 ) Other — — — (63 ) (11 ) — — 123 — 1 Total effect of derivatives not designated as hedges $ (652 ) $ 29 $ (13 ) $ 95 $ (32 ) $ (62 ) $ (22 ) $ 94 $ (62 ) $ (24 ) The amount excluded for cash flow hedges was $7 million and zero for the three months ended June 30, 2020 and 2019, respectively, and $22 million and zero for the six months ended June 30, 2020 and 2019, respectively. This amount is recognized primarily in Revenues in our consolidated Statement of Earnings (Loss). COUNTERPARTY CREDIT RISK. We manage the risk that counterparties will default and not make payments to us according to the terms of our agreements on an individual counterparty basis. Where we have agreed to netting of derivative exposures with a counterparty, we net our exposures with that counterparty and apply the value of collateral posted to us to determine the exposure. We actively monitor these net exposures against defined limits and take appropriate actions in response, including requiring additional collateral. Our exposures to counterparties (including accrued interest), net of collateral we held, was $317 million and $368 million at June 30, 2020 and December 31, 2019, respectively. Counterparties' exposures to our derivative liability (including accrued interest), net of collateral posted by us, was $375 million and $159 million at June 30, 2020 and December 31, 2019, respectively. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 6 Months Ended |
Jun. 30, 2020 | |
Variable Interest Entities [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 18. VARIABLE INTEREST ENTITIES. In addition to the three VIEs detailed in Note 4, in our consolidated Statement of Financial Position, we have assets of $2,621 million and $2,134 million and liabilities of $1,553 million and $1,233 million at June 30, 2020, and December 31, 2019, respectively, from other consolidated VIEs. These entities were created to help our customers facilitate or finance the purchase of GE goods and services. These entities have no features that could expose us to losses that would significantly exceed the difference between the consolidated assets and liabilities. Substantially all the assets of our consolidated VIEs at June 30, 2020, can only be used to settle the liabilities of those VIEs. Our investments in unconsolidated VIEs were $2,194 million and $1,937 million at June 30, 2020, and December 31, 2019, respectively. These investments are primarily owned by GE Capital businesses, $589 million and $621 million of which were owned by Energy Financial Services, comprising equity method investments, and $1,222 million and $896 million of which were owned by our run-off insurance operations, primarily comprising investment securities at June 30, 2020 and December 31, 2019, respectively. The increase in investments in unconsolidated VIEs in our run-off insurance operations reflects implementation of our revised reinvestment plan, which incorporates the introduction of strategic initiatives to invest in higher-yielding asset classes. 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 19. |
COMMITMENTS, GUARANTEES, PRODUC
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES | NOTE 19. COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES COMMITMENTS . The GECAS business within the Capital segment has placed multiple-year orders for various Boeing, Airbus and other aircraft manufacturers with list prices approximating $ 27,836 million (including 292 new aircraft with estimated delivery dates of 14% in 2020, 22% in 2021 and 64% in 2022 through 2026) and secondary orders with airlines for used aircraft approximating $ 2,292 million (including 53 used aircraft with estimated delivery dates of 29% in 2020, 60% in 2021 and 11% in 2022) at June 30, 2020 . When we purchase aircraft, it is at a contractual price, which is usually less than the aircraft manufacturer’s list price and excludes any pre-delivery payments made in advance. As of June 30, 2020 , we have made $3,424 million of pre-delivery payments to aircraft manufacturers. During April 2020, GECAS agreed with Boeing to restructure its 737 MAX orderbook including previously canceled positions, resulting in 78 orders now remaining. GE Capital had total investment commitments of $2,722 million at June 30, 2020 . The commitments primarily comprise project financing investments in thermal and wind energy projects of $1,114 million and investments by our run-off insurance operations in investment securities and other assets of $1,581 million , included within these commitments are obligations to make additional investments in unconsolidated VIEs of $248 million and $1,298 million , respectively. See Note 18 for further information. As of June 30, 2020 , in our Aviation segment, we have committed to provide financing assistance of $ 2,010 million for future customer acquisitions of aircraft equipped with our engines. GUARANTEES. For further information, see our Annual Report on Form 10-K for the year ended December 31, 2019 . 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 $2,036 million and $2,165 million at June 30, 2020 and December 31, 2019, respectively. LEGAL MATTERS. The following information supplements and amends the discussion of Legal Matters in Note 23 in our Annual Report on Form 10-K for the year ended December 31, 2019 and in Note 19 in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020; refer to those discussions for information about previously reported legal matters that are not updated below. 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 matters. In November 2015, we acquired the Thermal, Renewables and Grid businesses from Alstom. Prior to the acquisition, the seller was the subject of two significant cases involving anti-competitive activities and improper payments: (1) in January 2007, Alstom was fined €65 million by the European Commission for participating in a gas insulated switchgear cartel that operated from 1988 to 2004 (that fine was later reduced to €59 million ), and (2) in December 2014, Alstom pled guilty in the United States to multiple violations of the Foreign Corrupt Practices Act and paid a criminal penalty of $772 million . As part of GE’s accounting for the acquisition, we established a reserve amounting to $858 million for legal and compliance matters related to the legacy business practices that were the subject of these and related cases in various jurisdictions, including the previously reported legal proceedings in Israel that are described below. The reserve balance was $856 million and $875 million at June 30, 2020 and December 31, 2019, respectively. Regardless of jurisdiction, the allegations relate to claimed anti-competitive conduct or improper payments in the pre-acquisition period as the source of legal violations and/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 reserve established. The estimation of this reserve involved significant judgment and 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 reserve. Damages sought may include disgorgement of profits on the underlying business transactions, fines and/or penalties, interest, or other forms of resolution. Factors that can affect the ultimate amount of losses associated with these and related matters include the way cooperation is assessed and valued, prosecutorial discretion in the determination of damages, formulas for determining fines and 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 September 2013, the Israeli Antitrust Authority issued a decision whereby Alstom, Siemens AG and ABB Ltd. were held liable for an alleged anti-competitive arrangement in the gas-insulated switchgears market in Israel. While there was no fine in connection with that decision, claimants brought two civil actions in 2013 seeking damages of approximately $950 million and $600 million , respectively, related to the alleged conduct underlying the decision that were pending before the Central District Court in Israel. The court in March 2020 approved a settlement agreement among the parties that became final in June, and GE is paying approximately $47 million in the conclusion of these matters. Shareholder and related lawsuits. In February 2019, two putative class actions (the Birnbaum case and the Sheet Metal Workers Local 17 Trust Funds case) were filed in the U.S. District Court for the Southern District of New York naming as defendants GE and current and former GE executive officers. In April 2019, the court issued an order consolidating these two actions. In June 2019, the lead plaintiff filed an amended consolidated complaint. It alleges violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 based on alleged misstatements regarding GE's H-class turbines and goodwill related to GE's Power business. The lawsuit seeks damages on behalf of shareholders who acquired GE stock between December 4, 2017 and December 6, 2018. In August 2019, the lead plaintiff filed a second amended complaint. In May 2020 the court granted GE's motion to dismiss the case, and in June 2020 the plaintiffs filed an appeal with the Second Circuit. ENVIRONMENTAL, HEALTH AND SAFETY MATTERS. For further information, see our Annual Report on Form 10-K for the year ended December 31, 2019 . |
INTERCOMPANY TRANSACTIONS
INTERCOMPANY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
INTERCOMPANY TRANSACTIONS | NOTE 20. INTERCOMPANY TRANSACTIONS . Presented below is a walk of intercompany eliminations from the combined GE and GE Capital totals to the consolidated cash flows. Six months ended June 30 (In millions) 2020 2019 Combined GE and GE Capital cash from (used for) operating activities - continuing operations $ (2,298 ) $ 211 GE current receivables sold to GE Capital(a) (452 ) 560 GE long-term receivables sold to GE Capital(b) 177 269 Supply chain finance programs(c) 1,457 473 Other reclassifications and eliminations (202 ) 14 Consolidated cash from (used for) operating activities - continuing operations $ (1,319 ) $ 1,528 Combined GE and GE Capital cash from (used for) investing activities - continuing operations $ 27,207 $ 3,495 GE current receivables sold to GE Capital 270 (1,297 ) GE long-term receivables sold to GE Capital(b) (177 ) (269 ) Supply chain finance programs(c) (1,457 ) (473 ) GE Capital long-term loans to GE (7,500 ) — Capital contribution from GE to GE Capital — 1,500 Other reclassifications and eliminations 167 (689 ) Consolidated cash from (used for) investing activities - continuing operations $ 18,509 $ 2,266 Combined GE and GE Capital cash from (used for) financing activities - continuing operations $ (19,717 ) $ (6,004 ) GE current receivables sold to GE Capital 183 737 GE Capital long-term loans to GE 7,500 — Capital contribution from GE to GE Capital — (1,500 ) Other reclassifications and eliminations 36 674 Consolidated cash from (used for) financing activities - continuing operations $ (11,999 ) $ (6,092 ) (a) I ncluded the elimination of $7,494 million payments to GE for current receivables purchased and retained by GE Capital and the related reclassification to CFOA of $7,042 million due to GE Capital collections and other activity in our consolidated statement of cash flows for the six months ended June 30, 2020. Included the elimination of $7,165 million payments and the reclassification to CFOA of $7,725 million collections and other activity for the six months ended June 30, 2019 . (b) Primarily included the reclassification of long-term receivables purchased and retained by GE Capital to current receivables. (c) Represents the elimination of net payments from GE to GE Capital related to the funded participation in a supply chain finance program with GE Capital. The reduction of the GE liability associated with this program is primarily as a result of GE Capital's sale of the program platform to MUFG Union Bank, N.A. (MUFG) in 2019. Cash payments received on the Receivable facility deferred purchase price are reflected as Cash from investing activities in the GE Capital and Consolidated columns of our consolidated Statement of Cash Flows. Sales of customer receivables from GE to GE Capital are classified as Cash from operating activities in the GE column of our Statement of Cash Flows. See Note 4 for further information. |
BAKER HUGHES SUMMARIZED FINANCI
BAKER HUGHES SUMMARIZED FINANCIAL INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
BAKER HUGHES SUMMARIZED FINANCIAL INFORMATION | NOTE 21. BAKER HUGHES SUMMARIZED FINANCIAL INFORMATION. We account for our remaining interest in Baker Hughes (comprising 377.4 million shares and a promissory note receivable) at fair value. At June 30, 2020, the fair value of our interest in Baker Hughes was $5,910 million . Since the date of deconsolidation, we have not sold any shares of Baker Hughes and recognized a pre-tax unrealized gain of $1,846 million ( $1,552 million after-tax) and a pre-tax unrealized loss of $3,865 million ( $3,080 million after-tax) for the three and six months ended June 30, 2020, respectively, based on a share price of $15.39 . See Notes 2 and 3 for further information. Summarized financial information of Baker Hughes is as follows. Three months ended June 30, 2020 Six months ended June 30, 2020 Revenues $ 4,736 $ 10,160 Gross profit 678 1,433 Net income (loss) (355 ) (16,453 ) Net income (loss) attributable to the entity (201 ) (10,411 ) Baker Hughes is a SEC registrant with separate filing requirements, and its financial information can be obtained from www.sec.gov or www.bakerhughes.com. |
OTHER INCOME
OTHER INCOME | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME | NOTE 22. OTHER INCOME Three months ended June 30 Six months ended June 30 (In millions) 2020 2019 2020 2019 Purchases and sales of business interests(a) $ 52 $ (39 ) $ 12,424 $ 214 Licensing and royalty income 31 80 73 120 Associated companies 31 82 69 121 Net interest and investment income(b) 1,955 23 (3,677 ) 160 Other items 48 26 101 410 GE $ 2,116 $ 172 $ 8,990 $ 1,024 Eliminations (38 ) (8 ) (43 ) (13 ) Total $ 2,078 $ 164 $ 8,947 $ 1,012 (a) Included a pre-tax gain of $12,341 million on the sale of BioPharma for the six months ended June 30, 2020. Included a pre-tax gain of $223 million on the sale of ServiceMax for the six months ended June 30, 2019. See Note 2 for further information. (b) Included a pre-tax unrealized gain of $1,846 million and a pre-tax unrealized loss of $3,865 million for the three and six months ended June 30, 2020, respectively, related to our interest in Baker Hughes in 2020. See Note 3 for further information. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | We present our financial statements in a three-column format, which allows investors to see our GE industrial operations separately from our financial services operations. We believe that this provides useful supplemental information to our consolidated financial statements. To the extent that we have transactions between GE and GE Capital, these transactions are made on arm's length terms, are reported in the respective columns of our financial statements and are eliminated in consolidation. See Note 20 for further information. Our financial statements are prepared in conformity with U.S. generally accepted accounting principles (GAAP), which requires us to make estimates based on assumptions about current and, for some estimates, future economic and market conditions which affect reported amounts and related disclosures in our financial statements. Although our current estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations and financial position. In particular, a number of estimates have been and will continue to be affected by the ongoing Coronavirus Disease 2019 (COVID-19) pandemic. The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly changing and difficult to predict. As a result, our accounting estimates and assumptions may change over time in response to COVID-19. Such changes could result in future impairments of goodwill, intangibles, long-lived assets and investment securities, revisions to estimated profitability on long-term product service agreements, incremental credit losses on receivables and debt securities, a decrease in the carrying amount of our tax assets, or an increase in our insurance liabilities and pension obligations as of the time of a relevant measurement event. In preparing our Statement of Cash Flows, we make certain adjustments to reflect cash flows that cannot otherwise be calculated by changes in our Statement of Financial Position. These adjustments may include, but are not limited to, the effects of currency exchange, acquisitions and dispositions of businesses, businesses classified as held for sale, the timing of settlements to suppliers for property, plant and equipment, non-cash gains/losses and other balance sheet reclassifications. |
Reclassifications | We have reclassified certain prior-period amounts to conform to the current-period’s presentation. Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying numbers in millions. Earnings per share amounts are computed independently for earnings from continuing operations, earnings from discontinued operations and net earnings. As a result, the sum of per-share amounts may not equal the total. Unless otherwise indicated, information in these notes to the consolidated financial statements relates to continuing operations. Certain of our operations have been presented as discontinued. We present businesses whose disposal represents a strategic shift that has, or will have, a major effect on our operations and financial results as discontinued operations when the components meet the criteria for held for sale, are sold, or spun-off. See Note 2 for further information. |
Allowance for credit losses | When we record customer receivables, contract assets and financing receivables arising from revenue transactions, as well as commercial mortgage loans and reinsurance recoverables in GE Capital’s run-off insurance operations, financial guarantees and certain commitments, we record an allowance for credit losses for the current expected credit losses (CECL) inherent in the asset over its expected life. The allowance for credit losses is a valuation account deducted from the amortized cost basis of the assets to present their net carrying value at the amount expected to be collected. Each period the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets. We evaluate debt securities with unrealized losses to determine whether any of the losses arise from concerns about the issuer’s credit or the underlying collateral and record an allowance for credit losses, if required. We estimate expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. When measuring expected credit losses, we pool assets with similar country risk and credit risk characteristics. Changes in the relevant information may significantly affect the estimates of expected credit losses. |
Accounting changes | On January 1, 2020, we adopted ASU No. 2016-13, Financial Instruments - Credit Losses (ASU 2016-13) . ASU 2016-13 requires us to prospectively record an allowance for credit losses for the current expected credit losses inherent in the asset over its expected life, replacing the incurred loss model that recognized losses only when they became probable and estimable. We recorded a $221 million increase in our allowance for credit losses and a $175 million decrease to retained earnings, net of tax, reflecting the cumulative effect on retained earnings. In March 2020, the SEC issued a final rule amending disclosure requirements for guarantors and issuers of registered guaranteed securities under SEC Regulation S-X, Rule 3-10. The final rule is effective for filings on or after January 4, 2021, however early application is permitted. As a result of the simplification provided by this rule, beginning with this quarterly report on Form 10-Q for the period ended June 30, 2020, we have elected to early adopt the disclosure requirements. |
BUSINESSES HELD FOR SALE AND _2
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Financial Information for Discontinued Operations | RESULTS OF DISCONTINUED OPERATIONS (In millions) Baker Hughes Transportation GE Capital Total Three months ended June 30 2020 2019 2020 2019 2020 2019 2020 2019 Operations Sales of goods and services $ — $ 5,953 $ — $ — $ — $ — $ — $ 5,953 GE Capital revenues from services — — — — 71 (48 ) 71 (48 ) Cost of goods and services sold — (4,954 ) — — — — — (4,954 ) Other income, costs and expenses (3 ) (981 ) 1 3 (62 ) (16 ) (64 ) (993 ) Earnings (loss) of discontinued operations before income taxes (3 ) 18 1 3 10 (64 ) 8 (42 ) Benefit (provision) for income taxes 2 (33 ) — (7 ) 8 302 9 261 Earnings (loss) of discontinued operations, net of taxes(a) $ (1 ) $ (15 ) $ 1 $ (4 ) $ 17 $ 238 $ 17 $ 219 Disposal Gain (loss) on disposal before income taxes (10 ) — — — — — (10 ) — Benefit (provision) for income taxes — — — — — — — — Gain (loss) on disposal, net of taxes $ (10 ) $ — $ — $ — $ — $ (1 ) $ (10 ) $ (1 ) Earnings (loss) from discontinued operations, net of taxes $ (11 ) $ (15 ) $ 1 $ (4 ) $ 17 $ 238 $ 7 $ 219 (In millions) Baker Hughes Transportation GE Capital Total Six months ended June 30 2020 2019 2020 2019 2020 2019 2020 2019 Operations Sales of goods and services $ — $ 11,569 $ — $ 549 $ — $ — $ — $ 12,118 GE Capital revenues from services — — — — (5 ) (9 ) (5 ) (9 ) Cost of goods and services sold — (9,631 ) — (478 ) — — — (10,109 ) Other income, costs and expenses (3 ) (1,768 ) (3 ) (6 ) (146 ) (89 ) (152 ) (1,863 ) Earnings (loss) of discontinued operations before income taxes (3 ) 170 (3 ) 65 (151 ) (98 ) $ (157 ) $ 137 Benefit (provision) for income taxes (11 ) (116 ) 6 (19 ) 4 327 — 192 Earnings (loss) of discontinued operations, net of taxes(a) $ (14 ) $ 55 $ 4 $ 46 $ (147 ) $ 228 $ (157 ) $ 329 Disposal Gain (loss) on disposal before income taxes (13 ) — — 3,471 — 47 $ (13 ) $ 3,517 Benefit (provision) for income taxes — — — (963 ) — (2 ) — (964 ) Gain (loss) on disposal, net of taxes $ (13 ) $ — $ — $ 2,508 $ — $ 45 $ (13 ) $ 2,553 Earnings (loss) from discontinued operations, net of taxes $ (27 ) $ 55 $ 4 $ 2,554 $ (147 ) $ 273 $ (171 ) $ 2,881 (a) Earnings (loss) of discontinued operations attributable to the Company after income taxes was $17 million and $242 million for the three months ended June 30, 2020 and 2019, respectively. Earnings (loss) of discontinued operations attributable to the Company after income taxes was $(155) million and $317 million for the six months ended June 30, 2020 and 2019, respectively. ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS (In millions) June 30, 2020 December 31, 2019 Cash, cash equivalents and restricted cash $ 477 $ 638 Investment securities 91 202 Current receivables 61 81 Financing receivables held for sale (Polish mortgage portfolio) 2,398 2,485 Property, plant, and equipment 112 123 Deferred income taxes 213 264 All other assets 265 317 Assets of discontinued operations(a) $ 3,617 $ 4,109 Accounts payable & Progress collections and deferred income $ 15 $ 40 All other liabilities(b) 220 163 Liabilities of discontinued operations(a) $ 235 $ 203 (a) Assets and liabilities of discontinued operations included $3,462 million and $84 million related to GE Capital as of June 30, 2020, respectively. (b) Included within All other liabilities of discontinued operations at June 30, 2020 and December 31, 2019, are intercompany tax receivables in the amount of $829 million and $839 million , respectively, primarily related to the financial services businesses that were part of the GE Capital Exit Plan, which are offset within All other liabilities of Consolidated GE. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities | June 30, 2020 December 31, 2019 (In millions) Amortized Gross Gross Estimated Amortized Gross Gross Estimated Debt U.S. corporate $ 23,540 $ 5,771 $ (136 ) $ 29,175 $ 23,037 $ 4,636 $ (11 ) $ 27,661 Non-U.S. corporate 2,185 337 (5 ) 2,517 2,161 260 (1 ) 2,420 State and municipal 3,235 826 (22 ) 4,039 3,086 598 (15 ) 3,669 Mortgage and asset-backed 3,497 97 (136 ) 3,458 3,117 116 (4 ) 3,229 Government and agencies 1,257 206 — 1,463 1,391 126 — 1,516 Equity 6,465 — — 6,465 10,025 — — 10,025 Total $ 40,179 $ 7,237 $ (300 ) $ 47,117 $ 42,816 $ 5,736 $ (31 ) $ 48,521 |
Contractual Maturities of Investment in Available-for-Sale Debt Securities (Excluding Mortgage and Asset-Backed Securities) | Contractual maturities of investments in debt securities (excluding mortgage and asset-backed securities) at June 30, 2020 are due as follows: (In millions) Amortized cost Estimated fair value Within one year $ 643 $ 657 After one year through five years 2,483 2,676 After five years through ten years 6,516 7,599 After ten years 20,575 26,261 |
CURRENT AND LONG-TERM RECEIVA_2
CURRENT AND LONG-TERM RECEIVABLES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Receivables | Activity related to customer receivables sold by GE is as follows: (In millions) 2020 2019 GE Capital Third Parties GE Capital Third Parties Balance at January 1 $ 3,087 $ 6,757 $ 4,386 $ 7,880 GE sales to GE Capital 16,964 — 20,009 — GE sales to third parties 773 — 2,760 GE Capital sales to third parties (9,931 ) 9,931 (13,836 ) 13,836 Collections and other (6,807 ) (13,565 ) (7,140 ) (17,644 ) Reclassification from long-term customer receivables 170 — 209 — Balance at June 30 $ 3,482 (a) $ 3,897 $ 3,627 (a) $ 6,831 (a) At June 30, 2020 and 2019, $ 661 million and $ 964 million , respectively, of the current receivables purchased and retained by GE Capital had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE cash flows from operating activities (CFOA) of claims by GE Capital on receivables sold with recourse was insignificant for the six months ended June 30, 2020 and 2019. LONG-TERM RECEIVABLES Consolidated GE (In millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Long-term customer receivables(a) $ 688 $ 906 $ 465 $ 506 Long-term sundry receivables(b) 1,399 1,504 1,792 1,834 Allowance for credit losses (127 ) (128 ) (127 ) (128 ) Total long-term receivables $ 1,960 $ 2,282 $ 2,130 $ 2,212 (a) At June 30, 2020 and December 31, 2019, GE Capital held $223 million and $400 million , respectively, of GE long-term customer receivables, of which $197 million and $312 million had been purchased with recourse (i.e., GE retains all or some risk of default). GE sold an insignificant amount of long-term customer receivables during the six months ended June 30, 2020 and 2019. (b) Includes supplier advances, revenue sharing programs receivables, other non-income based tax receivables and certain intercompany balances that eliminate upon consolidation. CURRENT RECEIVABLES Consolidated GE (In millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Customer receivables(a) $ 12,361 $ 12,594 $ 8,879 $ 9,507 Sundry receivables(b)(c) 4,840 5,049 5,021 5,247 Allowance for credit losses(d) (1,160 ) (874 ) (1,157 ) (872 ) Total current receivables $ 16,041 $ 16,769 $ 12,744 $ 13,883 (a) Includes Aviation receivables from CFM due to 737 MAX temporary fleet grounding of $1,367 million and $1,397 million as of June 30, 2020 and December 31, 2019, respectively. During 2020, CFM and Boeing reached an agreement to secure payment terms for engines delivered in 2019 and 2020, net of progress collections. Based on the agreement, the receivable is expected to be collected from Boeing through the first quarter of 2021. (b) Includes supplier advances, revenue sharing programs receivables in our Aviation business, other non-income based tax receivables, primarily value-added tax related to our operations in various countries outside of the U.S., receivables from disposed businesses, including receivables for transactional services agreements and certain intercompany balances that eliminate upon consolidation. Revenue sharing program receivables in Aviation are amounts due from third parties who participate in engine programs by developing and supplying certain engine components through the life of the program. The participants share in program revenues, receive a share of customer progress payments and share costs related to discounts and warranties. (c) Consolidated current receivables include deferred purchase price which represents our retained risk with respect to current customer receivables sold to third parties through one of the receivable facilities. The balance of the deferred purchase price held by GE Capital at June 30, 2020 and December 31, 2019 was $ 537 million and $ 421 million, respectively. (d) GE allowance for credit losses primarily increased due to net new provisions of $272 million , offset by write-offs and foreign currency impact. Activity related to these facilities is included in the GE Capital sales to third parties line in the sales of GE current customer receivables table above and is as follows: Six months ended June 30 (In millions) 2020 2019 Customer receivables sold to receivables facilities $ 7,679 $ 10,786 Total cash purchase price for customer receivables 7,240 10,497 Cash collections re-invested to purchase customer receivables 6,453 8,830 Non-cash increases to deferred purchase price $ 390 $ 137 Cash payments received on deferred purchase price 274 220 Consolidated GE Capital (In millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Loans, net of deferred income $ 1,212 $ 1,098 $ 5,049 $ 4,927 Investment in financing leases, net of deferred income 1,955 2,070 1,955 2,070 3,167 3,168 7,004 6,996 Allowance for losses (72 ) (33 ) (45 ) (17 ) Financing receivables – net $ 3,095 $ 3,134 $ 6,959 $ 6,979 |
FINANCING RECEIVABLES AND ALL_2
FINANCING RECEIVABLES AND ALLOWANCES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Financing Receivables, Net | Activity related to customer receivables sold by GE is as follows: (In millions) 2020 2019 GE Capital Third Parties GE Capital Third Parties Balance at January 1 $ 3,087 $ 6,757 $ 4,386 $ 7,880 GE sales to GE Capital 16,964 — 20,009 — GE sales to third parties 773 — 2,760 GE Capital sales to third parties (9,931 ) 9,931 (13,836 ) 13,836 Collections and other (6,807 ) (13,565 ) (7,140 ) (17,644 ) Reclassification from long-term customer receivables 170 — 209 — Balance at June 30 $ 3,482 (a) $ 3,897 $ 3,627 (a) $ 6,831 (a) At June 30, 2020 and 2019, $ 661 million and $ 964 million , respectively, of the current receivables purchased and retained by GE Capital had been sold by GE to GE Capital with recourse (i.e., GE retains all or some risk of default). The effect on GE cash flows from operating activities (CFOA) of claims by GE Capital on receivables sold with recourse was insignificant for the six months ended June 30, 2020 and 2019. LONG-TERM RECEIVABLES Consolidated GE (In millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Long-term customer receivables(a) $ 688 $ 906 $ 465 $ 506 Long-term sundry receivables(b) 1,399 1,504 1,792 1,834 Allowance for credit losses (127 ) (128 ) (127 ) (128 ) Total long-term receivables $ 1,960 $ 2,282 $ 2,130 $ 2,212 (a) At June 30, 2020 and December 31, 2019, GE Capital held $223 million and $400 million , respectively, of GE long-term customer receivables, of which $197 million and $312 million had been purchased with recourse (i.e., GE retains all or some risk of default). GE sold an insignificant amount of long-term customer receivables during the six months ended June 30, 2020 and 2019. (b) Includes supplier advances, revenue sharing programs receivables, other non-income based tax receivables and certain intercompany balances that eliminate upon consolidation. CURRENT RECEIVABLES Consolidated GE (In millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Customer receivables(a) $ 12,361 $ 12,594 $ 8,879 $ 9,507 Sundry receivables(b)(c) 4,840 5,049 5,021 5,247 Allowance for credit losses(d) (1,160 ) (874 ) (1,157 ) (872 ) Total current receivables $ 16,041 $ 16,769 $ 12,744 $ 13,883 (a) Includes Aviation receivables from CFM due to 737 MAX temporary fleet grounding of $1,367 million and $1,397 million as of June 30, 2020 and December 31, 2019, respectively. During 2020, CFM and Boeing reached an agreement to secure payment terms for engines delivered in 2019 and 2020, net of progress collections. Based on the agreement, the receivable is expected to be collected from Boeing through the first quarter of 2021. (b) Includes supplier advances, revenue sharing programs receivables in our Aviation business, other non-income based tax receivables, primarily value-added tax related to our operations in various countries outside of the U.S., receivables from disposed businesses, including receivables for transactional services agreements and certain intercompany balances that eliminate upon consolidation. Revenue sharing program receivables in Aviation are amounts due from third parties who participate in engine programs by developing and supplying certain engine components through the life of the program. The participants share in program revenues, receive a share of customer progress payments and share costs related to discounts and warranties. (c) Consolidated current receivables include deferred purchase price which represents our retained risk with respect to current customer receivables sold to third parties through one of the receivable facilities. The balance of the deferred purchase price held by GE Capital at June 30, 2020 and December 31, 2019 was $ 537 million and $ 421 million, respectively. (d) GE allowance for credit losses primarily increased due to net new provisions of $272 million , offset by write-offs and foreign currency impact. Activity related to these facilities is included in the GE Capital sales to third parties line in the sales of GE current customer receivables table above and is as follows: Six months ended June 30 (In millions) 2020 2019 Customer receivables sold to receivables facilities $ 7,679 $ 10,786 Total cash purchase price for customer receivables 7,240 10,497 Cash collections re-invested to purchase customer receivables 6,453 8,830 Non-cash increases to deferred purchase price $ 390 $ 137 Cash payments received on deferred purchase price 274 220 Consolidated GE Capital (In millions) June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Loans, net of deferred income $ 1,212 $ 1,098 $ 5,049 $ 4,927 Investment in financing leases, net of deferred income 1,955 2,070 1,955 2,070 3,167 3,168 7,004 6,996 Allowance for losses (72 ) (33 ) (45 ) (17 ) Financing receivables – net $ 3,095 $ 3,134 $ 6,959 $ 6,979 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In millions) June 30, 2020 December 31, 2019 Raw materials and work in process $ 8,976 $ 8,771 Finished goods 6,275 5,333 Total inventories $ 15,251 $ 14,104 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | (In millions) June 30, 2020 December 31, 2019 Original cost $ 76,137 $ 75,187 Less accumulated depreciation and amortization (33,317 ) (31,897 ) Property, plant and equipment – net $ 42,821 $ 43,290 |
Schedule of Operating Lease Expense and Supplemental Information | OPERATING LEASE EXPENSE Three months ended June 30 Six months ended June 30 (In millions) 2020 2019 2020 2019 Long-term (fixed) $ 183 $ 219 $ 360 $ 445 Long-term (variable) 24 27 45 71 Short-term 54 43 123 90 Total operating lease expense $ 261 $ 289 $ 528 $ 606 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill Balances | GOODWILL (In millions) January 1, 2020 Impairments Currency exchange Balance at Power $ 145 $ — $ — $ 145 Renewable Energy 3,290 — (67 ) 3,223 Aviation 9,859 (877 ) 8 8,989 Healthcare 11,728 — (4 ) 11,723 Capital 839 (839 ) — — Corporate 873 — (3 ) 871 Total $ 26,734 $ (1,717 ) $ (66 ) $ 24,951 |
Intangible Assets Subject to Amortization | OTHER INTANGIBLE ASSETS - NET (In millions) June 30, 2020 December 31, 2019 Intangible assets subject to amortization $ 10,168 $ 10,653 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenues | EQUIPMENT & SERVICES REVENUES Three months ended June 30 (In millions) 2020 2019 Equipment Services Total Equipment Services Total Power $ 1,488 $ 2,669 $ 4,156 $ 1,463 $ 3,218 $ 4,681 Renewable Energy 2,722 783 3,505 2,867 760 3,627 Aviation 2,031 2,352 4,384 3,033 4,844 7,877 Healthcare 2,050 1,843 3,893 2,838 2,095 4,934 Corporate items and industrial eliminations 9 120 129 69 229 298 Total GE Industrial revenues $ 8,299 $ 7,767 $ 16,066 $ 10,269 $ 11,147 $ 21,416 Six months ended June 30 (In millions) 2020 2019 Equipment Services Total Equipment Services Total Power $ 2,994 $ 5,187 $ 8,181 $ 3,039 $ 6,259 $ 9,298 Renewable Energy 5,298 1,401 6,698 4,848 1,317 6,165 Aviation 4,475 6,801 11,276 6,146 9,685 15,831 Healthcare 4,749 3,872 8,620 5,492 4,125 9,616 Corporate items and industrial eliminations (39 ) 174 135 352 478 830 Total GE Industrial revenues $ 17,476 $ 17,434 $ 34,910 $ 19,878 $ 21,863 $ 41,740 REVENUES Three months ended June 30 Six months ended June 30 (In millions) 2020 2019 2020 2019 Gas Power $ 3,077 $ 3,246 $ 5,936 $ 6,510 Power Portfolio 1,079 1,434 2,244 2,788 Power $ 4,156 $ 4,681 $ 8,181 $ 9,298 Onshore Wind $ 2,487 $ 2,450 $ 4,612 $ 3,891 Grid Solutions equipment and services 812 935 1,652 1,852 Hydro, Offshore Wind and other 205 242 435 422 Renewable Energy $ 3,505 $ 3,627 $ 6,698 $ 6,165 Commercial Engines & Services $ 2,232 $ 5,848 $ 7,009 $ 11,797 Military 1,161 976 2,121 2,013 Systems & Other 990 1,052 2,146 2,021 Aviation $ 4,384 $ 7,877 $ 11,276 $ 15,831 Healthcare Systems $ 3,523 $ 3,589 $ 6,971 $ 7,021 Pharmaceutical Diagnostics 370 517 820 1,003 BioPharma — 828 830 1,593 Healthcare $ 3,893 $ 4,934 $ 8,620 $ 9,616 Corporate items and industrial eliminations 129 298 135 830 Total GE Industrial revenues $ 16,066 $ 21,416 $ 34,910 $ 41,740 Capital 1,845 2,321 3,768 4,548 GE Capital-GE eliminations $ (162 ) $ (323 ) $ (406 ) $ (672 ) Consolidated revenues $ 17,750 $ 23,414 $ 38,273 $ 45,616 |
CONTRACT AND OTHER DEFERRED A_2
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Contractors [Abstract] | |
Contract with Customer, Asset and Liability | June 30, 2020 (In millions) Power Aviation Renewable Energy Healthcare Other Total Revenues in excess of billings $ 5,323 $ 4,404 $ — $ — $ — $ 9,728 Billings in excess of revenues (1,505 ) (3,910 ) — — — (5,415 ) Long-term service agreements(a) 3,818 494 — — — 4,312 Short-term and other service agreements 152 343 41 187 37 759 Equipment contract revenues(b) 2,415 76 1,249 307 155 4,202 Total contract assets 6,385 913 1,290 494 192 9,273 Deferred inventory costs 933 475 982 339 — 2,730 Nonrecurring engineering costs 24 2,355 41 32 — 2,452 Customer advances and other(c) — 1,132 — — (32 ) 1,100 Contract and other deferred assets $ 7,342 $ 4,875 $ 2,313 $ 865 $ 160 $ 15,555 December 31, 2019 (In millions) Revenues in excess of billings $ 5,342 $ 4,996 $ — $ — $ — $ 10,338 Billings in excess of revenues (1,561 ) (3,719 ) — — — (5,280 ) Long-term service agreements(a) 3,781 1,278 — — — 5,058 Short-term and other service agreements 190 316 43 169 — 717 Equipment contract revenues(b) 2,508 82 1,217 324 106 4,236 Total contract assets 6,478 1,675 1,260 492 106 10,011 Deferred inventory costs 943 287 1,677 359 — 3,267 Nonrecurring engineering costs 44 2,257 47 35 8 2,391 Customer advances and other(c) — 1,165 — — (32 ) 1,133 Contract and other deferred assets $ 7,465 $ 5,384 $ 2,985 $ 886 $ 82 $ 16,801 (a) Included amounts due from customers at Aviation for the sales of engines, spare parts and services, which we will collect through higher usage-based fees from servicing equipment under long-term service agreements, totaling $1,791 million and $1,712 million as of June 30, 2020 and December 31, 2019 , respectively. The corresponding discount is recorded within liabilities as Deferred income and amounted to $297 million and $308 million as of June 30, 2020 and December 31, 2019 , respectively. (b) Included are amounts due from customers at Power for the sale of services upgrades, which we collect through incremental fixed or usage-based fees from servicing the equipment under long-term service agreements, totaling $862 million and $909 million as of June 30, 2020 and December 31, 2019 , respectively. (c) Included advances to and amounts due from customers at Aviation for the sale of engines, spare parts and services, which we will collect through incremental fees for goods and services to be delivered in future periods, totaling $955 million and $986 million as of June 30, 2020 and December 31, 2019 , respectively. The corresponding discount is recorded within liabilities as Deferred income and amounted to $262 million and $256 million as of June 30, 2020 and December 31, 2019 , respectively. June 30, 2020 (In millions) Power Aviation Renewable Energy Healthcare Other Total Progress collections on equipment contracts $ 5,011 $ 152 $ 1,184 $ — $ — $ 6,347 Other progress collections 431 5,324 3,716 343 171 9,985 Total progress collections 5,441 5,476 4,901 343 171 16,332 Deferred income(a) 48 1,569 329 1,691 121 3,759 GE Progress collections and deferred income $ 5,489 $ 7,046 $ 5,230 $ 2,034 $ 292 $ 20,091 December 31, 2019 (In millions) Progress collections on equipment contracts $ 5,857 $ 115 $ 1,268 $ — $ — $ 7,240 Other progress collections 413 4,748 4,193 305 189 9,849 Total progress collections 6,270 4,863 5,461 305 189 17,089 Deferred income(a) 49 1,528 284 1,647 98 3,606 GE Progress collections and deferred income $ 6,319 $ 6,391 $ 5,745 $ 1,952 $ 287 $ 20,694 (a) Included in this balance are finance discounts associated with customer advances at Aviation of $560 million and $564 million as of June 30, 2020 and December 31, 2019 , respectively. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | (In millions) June 30, 2020 December 31, 2019 Commercial paper $ 505 $ 3,008 Current portion of long-term borrowings 38 766 Current portion of long-term borrowings assumed by GE 3,679 5,473 Other 1,194 1,832 Total GE short-term borrowings $ 5,416 $ 11,079 Current portion of long-term borrowings $ 4,000 $ 11,226 Intercompany payable to GE 3,237 2,104 Other 601 804 Total GE Capital short-term borrowings $ 7,837 $ 14,134 Eliminations (4,195 ) (3,140 ) Total short-term borrowings $ 9,059 $ 22,072 Senior notes $ 18,387 $ 14,762 Senior notes assumed by GE 20,046 23,024 Subordinated notes assumed by GE 1,673 2,871 Other 293 324 Total GE long-term borrowings $ 40,398 $ 40,980 Senior notes $ 31,253 $ 25,371 Subordinated notes 188 178 Intercompany payable to GE 17,435 17,038 Other 584 626 Total GE Capital long-term borrowings $ 49,460 $ 43,213 Eliminations (17,435 ) (17,038 ) Total long-term borrowings $ 72,423 $ 67,155 Non-recourse borrowings of consolidated securitization entities 396 1,655 Total borrowings $ 81,878 $ 90,882 |
INSURANCE LIABILITIES AND ANN_2
INSURANCE LIABILITIES AND ANNUITY BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Schedule of Insurance and Investment Contract Liabilities | June 30, 2020 (In millions) Long-term care insurance contracts Structured settlement annuities & life insurance contracts Other Other adjustments(a) Total Future policy benefit reserves $ 16,794 $ 9,385 $ 179 $ 6,873 $ 33,231 Claim reserves 4,330 282 1,087 — 5,699 Investment contracts — 1,085 1,044 — 2,129 Unearned premiums and other 27 187 143 — 357 21,151 10,939 2,453 6,873 41,416 Eliminations — — (462 ) — (462 ) Total $ 21,151 $ 10,939 $ 1,991 $ 6,873 $ 40,954 December 31, 2019 (In millions) Future policy benefit reserves $ 16,755 $ 9,511 $ 183 $ 5,655 $ 32,104 Claim reserves 4,238 252 1,125 — 5,615 Investment contracts — 1,136 1,055 — 2,191 Unearned premiums and other 30 196 96 — 322 21,023 11,095 2,459 5,655 40,232 Eliminations — — (406 ) — (406 ) Total $ 21,023 $ 11,095 $ 2,053 $ 5,655 $ 39,826 (a) To the extent that unrealized gains on specific investment securities supporting our insurance contracts would result in a premium deficiency should those gains be realized, an increase in future policy benefit reserves is recorded, with an after-tax reduction of net unrealized gains recognized through Accumulated other comprehensive income (loss) (AOCI) in our consolidated Statement of Earnings (Loss). |
POSTRETIREMENT BENEFIT PLANS (T
POSTRETIREMENT BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Effect on Operations of Pension Plans | Principal pension plans Three months ended June 30 Six months ended June 30 (In millions) 2020 2019 2020 2019 Service cost for benefits earned $ 192 $ 160 $ 345 $ 318 Prior service cost amortization 37 34 74 67 Expected return on plan assets (748 ) (862 ) (1,496 ) (1,725 ) Interest cost on benefit obligations 589 723 1,176 1,449 Net actuarial loss amortization 851 770 1,699 1,533 Curtailment/settlement loss (gain) — — — 51 Benefit plans cost $ 921 $ 825 $ 1,798 $ 1,693 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Shareowners' Equity | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Three months ended June 30 Six months ended June 30 (In millions) 2020 2019 2020 2019 Beginning balance $ 20 $ (16 ) $ 61 $ (39 ) AOCI before reclasses – net of taxes of $8, $(23), $7 and $15(a) 34 94 41 121 Reclasses from AOCI – net of taxes of $(2), $(5), $(14) and $(6) (7 ) (18 ) (55 ) (22 ) AOCI 27 76 (14 ) 99 Less AOCI attributable to noncontrolling interests — — — 1 Investment securities AOCI ending balance $ 47 $ 60 $ 47 $ 60 Beginning balance $ (4,685 ) $ (5,810 ) $ (4,818 ) $ (6,134 ) AOCI before reclasses – net of taxes of $25, $13, $20 and $39 (58 ) (308 ) (613 ) (1 ) Reclasses from AOCI – net of taxes of $0, $0, $0 and $(4)(b) 1 167 691 284 AOCI (57 ) (141 ) 78 283 Less AOCI attributable to noncontrolling interests 1 (77 ) 3 22 Currency translation adjustments AOCI ending balance $ (4,743 ) $ (5,874 ) $ (4,743 ) $ (5,874 ) Beginning balance $ (163 ) $ 49 $ 49 $ 13 AOCI before reclasses – net of taxes of $(24), $(8), $(69) and $3 40 (50 ) (222 ) (16 ) Reclasses from AOCI – net of taxes of $(1), $4, $8 and $1(b) 13 25 64 28 AOCI 53 (25 ) (158 ) 12 Less AOCI attributable to noncontrolling interests — (1 ) — 1 Cash flow hedges AOCI ending balance $ (109 ) $ 26 $ (109 ) $ 26 Beginning balance $ (5,991 ) $ (7,708 ) $ (7,024 ) $ (8,254 ) AOCI before reclasses – net of taxes of $(2), $13, $28 and $(35) (74 ) 7 145 (111 ) Reclasses from AOCI – net of taxes of $187, $164, $426 and $347(b) 678 632 1,495 1,294 AOCI 604 639 1,640 1,183 Less AOCI attributable to noncontrolling interests — (6 ) 3 (8 ) Benefit plans AOCI ending balance $ (5,387 ) $ (7,063 ) $ (5,387 ) $ (7,063 ) AOCI at June 30 $ (10,194 ) $ (12,852 ) $ (10,194 ) $ (12,852 ) (a) Included adjustments of $(2,229) million and $(1,054) million for the three months ended June 30, 2020 and 2019, respectively and $(962) million and $(2,011) million for the six months ended June 30, 2020 and 2019, respectively, related to insurance liabilities and annuity benefits in our run-off insurance operations to reflect the effects that would have been recognized had the related unrealized investment security gains been realized. See Note 12 for further information. (b) The total reclassification from AOCI included $836 million , including currency translation of $688 million , net of taxes, for the six months ended June 30, 2020, related to the sale of our BioPharma business within our Healthcare segment. |
EARNINGS PER SHARE INFORMATION
EARNINGS PER SHARE INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three months ended June 30 2020 2019 (Earnings for per-share calculation, in millions; per-share amounts in dollars) Diluted Basic Diluted Basic Earnings from continuing operations $ (1,995 ) $ (1,995 ) $ (114 ) $ (114 ) Preferred stock dividends (192 ) (192 ) (188 ) (188 ) Accretion of redeemable noncontrolling interests, net of tax(a) (135 ) (135 ) — — Earnings from continuing operations attributable to common shareholders (2,322 ) (2,322 ) (302 ) (302 ) Earnings (loss) from discontinued operations 7 7 241 241 Net earnings (loss) attributable to GE common shareholders $ (2,314 ) $ (2,314 ) $ (61 ) $ (61 ) Shares of GE common stock outstanding 8,750 8,750 8,724 8,724 Employee compensation-related shares (including stock options) — — — — Total average equivalent shares 8,750 8,750 8,724 8,724 Earnings per share from continuing operations $ (0.27 ) $ (0.27 ) $ (0.03 ) $ (0.03 ) Earnings (loss) per share from discontinued operations — — 0.03 0.03 Net earnings (loss) per share (0.26 ) (0.26 ) (0.01 ) (0.01 ) Potentially dilutive securities(b) 459 486 Six months ended June 30 2020 2019 (Earnings for per-share calculation; in millions; per-share amounts in dollars) Diluted Basic Diluted Basic Earnings from continuing operations $ 4,370 $ 4,370 $ 828 $ 843 Preferred stock dividends (235 ) (235 ) (228 ) (228 ) Accretion of redeemable noncontrolling interests, net of tax(a) $ (135 ) $ (135 ) — — Earnings from continuing operations attributable to common shareholders $ 4,000 $ 4,000 $ 600 $ 616 Earnings (loss) from discontinued operations (168 ) (168 ) 2,845 2,861 Net earnings attributable to GE common shareholders $ 3,832 $ 3,832 $ 3,461 $ 3,476 Shares of GE common stock outstanding 8,746 8,746 8,716 8,716 Employee compensation-related shares (including stock options) 6 — 13 — Total average equivalent shares 8,752 8,746 8,730 8,716 Earnings from continuing operations $ 0.46 $ 0.46 $ 0.07 $ 0.07 Loss from discontinued operations (0.02 ) (0.02 ) 0.33 0.33 Net earnings 0.44 0.44 0.40 0.40 Potentially dilutive securities(b) 440 468 (a) Represents accretion adjustment of redeemable noncontrolling interests in our Additive business within our Aviation segment. (b) Outstanding stock awards not included in the computation of diluted earnings per share because their effect was antidilutive. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated Fair Value of Assets and Liabilities | The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and the vast majority of our liabilities’ fair value are considered Level 2. June 30, 2020 December 31, 2019 (In millions) Carrying Estimated Carrying Estimated Assets Loans and other receivables $ 3,668 $ 3,722 $ 4,113 $ 4,208 Liabilities Borrowings (Note 11) 81,878 83,054 90,882 97,754 Investment contracts (Note 12) 2,129 2,597 2,191 2,588 |
Fair Value of Derivative Assets | FAIR VALUE OF DERIVATIVES June 30, 2020 December 31, 2019 (In millions) Gross Notional All other assets All other liabilities Gross Notional All other assets All other liabilities Interest rate contracts $ 20,790 $ 2,081 $ 9 $ 23,918 $ 1,636 $ 11 Currency exchange contracts 6,457 58 194 7,044 99 46 Derivatives accounted for as hedges $ 27,247 $ 2,139 $ 203 $ 30,961 $ 1,734 $ 57 Interest rate contracts $ 717 $ 9 $ 7 $ 3,185 $ 18 $ 12 Currency exchange contracts 60,356 750 1,018 62,165 697 744 Other contracts 1,482 87 30 1,706 123 40 Derivatives not accounted for as hedges $ 62,554 $ 846 $ 1,055 $ 67,056 $ 838 $ 796 Gross derivatives $ 89,801 $ 2,985 $ 1,257 $ 98,018 $ 2,572 $ 853 Netting and credit adjustments $ (704 ) $ (710 ) $ (546 ) $ (546 ) Cash collateral adjustments (1,212 ) (149 ) (1,286 ) (105 ) Net derivatives recognized in statement of financial position $ 1,069 $ 398 $ 740 $ 202 Net accrued interest $ 118 $ 15 $ 182 $ 1 Securities held as collateral (720 ) — (469 ) — Net amount $ 467 $ 413 $ 452 $ 203 |
Fair Value of Derivative Liabilities | FAIR VALUE OF DERIVATIVES June 30, 2020 December 31, 2019 (In millions) Gross Notional All other assets All other liabilities Gross Notional All other assets All other liabilities Interest rate contracts $ 20,790 $ 2,081 $ 9 $ 23,918 $ 1,636 $ 11 Currency exchange contracts 6,457 58 194 7,044 99 46 Derivatives accounted for as hedges $ 27,247 $ 2,139 $ 203 $ 30,961 $ 1,734 $ 57 Interest rate contracts $ 717 $ 9 $ 7 $ 3,185 $ 18 $ 12 Currency exchange contracts 60,356 750 1,018 62,165 697 744 Other contracts 1,482 87 30 1,706 123 40 Derivatives not accounted for as hedges $ 62,554 $ 846 $ 1,055 $ 67,056 $ 838 $ 796 Gross derivatives $ 89,801 $ 2,985 $ 1,257 $ 98,018 $ 2,572 $ 853 Netting and credit adjustments $ (704 ) $ (710 ) $ (546 ) $ (546 ) Cash collateral adjustments (1,212 ) (149 ) (1,286 ) (105 ) Net derivatives recognized in statement of financial position $ 1,069 $ 398 $ 740 $ 202 Net accrued interest $ 118 $ 15 $ 182 $ 1 Securities held as collateral (720 ) — (469 ) — Net amount $ 467 $ 413 $ 452 $ 203 |
Effects of Derivatives on Earnings | The table below presents the effect of our derivative financial instruments in the consolidated Statement of Earnings: Three months ended June 30, 2020 Three months ended June 30, 2019 (In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income Total amounts presented in the consolidated Statement of Earnings $ 17,750 $ 15,083 $ 997 $ 3,079 $ 2,078 $ 23,414 $ 17,412 $ 929 $ 3,425 $ 164 Total effect of cash flow hedges $ 15 $ (13 ) $ (12 ) $ (2 ) $ — $ (15 ) $ (5 ) $ (9 ) $ — $ — Hedged items $ (122 ) $ (659 ) Derivatives designated as hedging instruments 109 646 Total effect of fair value hedges $ (12 ) $ (14 ) Interest rate contracts $ (12 ) $ — $ (4 ) $ — $ — $ (14 ) $ — $ (14 ) $ — $ — Currency exchange contracts (95 ) 16 — 104 (32 ) (433 ) (31 ) — (17 ) (27 ) Other — — — 97 11 — — 27 — (12 ) Total effect of derivatives not designated as hedges $ (107 ) $ 16 $ (4 ) $ 201 $ (21 ) $ (447 ) $ (31 ) $ 13 $ (17 ) $ (39 ) Six months ended June 30, 2020 Six months ended June 30, 2019 (In millions) Revenues Cost of sales Interest Expense SG&A Other Income Revenues Cost of sales Interest Expense SG&A Other Income Total amounts presented in the consolidated Statement of Earnings $ 38,273 $ 30,778 $ 1,791 $ 6,144 $ 8,947 $ 45,616 $ 33,620 $ 1,993 $ 6,827 $ 1,012 Total effect of cash flow hedges $ (6 ) $ (38 ) $ (23 ) $ (5 ) $ — $ 5 $ (14 ) $ (19 ) $ (1 ) $ — Hedged items $ (2,601 ) $ (1,186 ) Derivatives designated as hedging instruments 2,620 1,161 Total effect of fair value hedges $ 19 $ (25 ) Interest rate contracts $ (35 ) $ — $ (13 ) $ — $ — $ (18 ) $ — $ (29 ) $ — $ — Currency exchange contracts (616 ) 29 — 159 (21 ) (43 ) (22 ) — (62 ) (25 ) Other — — — (63 ) (11 ) — — 123 — 1 Total effect of derivatives not designated as hedges $ (652 ) $ 29 $ (13 ) $ 95 $ (32 ) $ (62 ) $ (22 ) $ 94 $ (62 ) $ (24 ) |
INTERCOMPANY TRANSACTIONS (Tabl
INTERCOMPANY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Intercompany Eliminations | Presented below is a walk of intercompany eliminations from the combined GE and GE Capital totals to the consolidated cash flows. Six months ended June 30 (In millions) 2020 2019 Combined GE and GE Capital cash from (used for) operating activities - continuing operations $ (2,298 ) $ 211 GE current receivables sold to GE Capital(a) (452 ) 560 GE long-term receivables sold to GE Capital(b) 177 269 Supply chain finance programs(c) 1,457 473 Other reclassifications and eliminations (202 ) 14 Consolidated cash from (used for) operating activities - continuing operations $ (1,319 ) $ 1,528 Combined GE and GE Capital cash from (used for) investing activities - continuing operations $ 27,207 $ 3,495 GE current receivables sold to GE Capital 270 (1,297 ) GE long-term receivables sold to GE Capital(b) (177 ) (269 ) Supply chain finance programs(c) (1,457 ) (473 ) GE Capital long-term loans to GE (7,500 ) — Capital contribution from GE to GE Capital — 1,500 Other reclassifications and eliminations 167 (689 ) Consolidated cash from (used for) investing activities - continuing operations $ 18,509 $ 2,266 Combined GE and GE Capital cash from (used for) financing activities - continuing operations $ (19,717 ) $ (6,004 ) GE current receivables sold to GE Capital 183 737 GE Capital long-term loans to GE 7,500 — Capital contribution from GE to GE Capital — (1,500 ) Other reclassifications and eliminations 36 674 Consolidated cash from (used for) financing activities - continuing operations $ (11,999 ) $ (6,092 ) (a) I ncluded the elimination of $7,494 million payments to GE for current receivables purchased and retained by GE Capital and the related reclassification to CFOA of $7,042 million due to GE Capital collections and other activity in our consolidated statement of cash flows for the six months ended June 30, 2020. Included the elimination of $7,165 million payments and the reclassification to CFOA of $7,725 million collections and other activity for the six months ended June 30, 2019 . (b) Primarily included the reclassification of long-term receivables purchased and retained by GE Capital to current receivables. (c) Represents the elimination of net payments from GE to GE Capital related to the funded participation in a supply chain finance program with GE Capital. The reduction of the GE liability associated with this program is primarily as a result of GE Capital's sale of the program platform to MUFG Union Bank, N.A. (MUFG) in 2019. |
BAKER HUGHES SUMMARIZED FINAN_2
BAKER HUGHES SUMMARIZED FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Associated Companies Summarized Financial Information | Summarized financial information of Baker Hughes is as follows. Three months ended June 30, 2020 Six months ended June 30, 2020 Revenues $ 4,736 $ 10,160 Gross profit 678 1,433 Net income (loss) (355 ) (16,453 ) Net income (loss) attributable to the entity (201 ) (10,411 ) |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income | Three months ended June 30 Six months ended June 30 (In millions) 2020 2019 2020 2019 Purchases and sales of business interests(a) $ 52 $ (39 ) $ 12,424 $ 214 Licensing and royalty income 31 80 73 120 Associated companies 31 82 69 121 Net interest and investment income(b) 1,955 23 (3,677 ) 160 Other items 48 26 101 410 GE $ 2,116 $ 172 $ 8,990 $ 1,024 Eliminations (38 ) (8 ) (43 ) (13 ) Total $ 2,078 $ 164 $ 8,947 $ 1,012 (a) Included a pre-tax gain of $12,341 million on the sale of BioPharma for the six months ended June 30, 2020. Included a pre-tax gain of $223 million on the sale of ServiceMax for the six months ended June 30, 2019. See Note 2 for further information. (b) Included a pre-tax unrealized gain of $1,846 million and a pre-tax unrealized loss of $3,865 million for the three and six months ended June 30, 2020, respectively, related to our interest in Baker Hughes in 2020. See Note 3 for further information. |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounting Changes (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate2016-13Member | |
Retained earnings | $ 91,188 | $ 87,732 |
Cumulative effect adjustment | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase in allowance for credit losses | 221 | |
Retained earnings | $ (175) |
BUSINESSES HELD FOR SALE AND _3
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Assets and Liabilities of Businesses Held for Sale, Narrative (Details) - BioPharma $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Pretax gain on sale | $ 12,341 | |
Disposed of by sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Consideration | $ 21,149 | 21,149 |
Consideration, cash | 20,732 | 20,732 |
Consideration, pension liabilities assumed | 417 | 417 |
Cash payments associated with transaction | $ 154 | 154 |
Pretax gain on sale | 12,341 | |
Gain on sale, after tax | $ 11,199 |
BUSINESSES HELD FOR SALE AND _4
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Discontinued Operations, Narrative (Details) - USD ($) $ in Millions | Aug. 31, 2019 | Feb. 25, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain (loss) on disposal before income taxes | $ (10) | $ 0 | $ (13) | $ 3,517 | ||||
Gain (loss) on disposal, net of taxes | (10) | (1) | (13) | 2,553 | ||||
Baker Hughes | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain (loss) on disposal before income taxes | (10) | 0 | (13) | 0 | ||||
Gain (loss) on disposal, net of taxes | (10) | $ (8,238) | 0 | (13) | 0 | |||
Transportation | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain (loss) on disposal before income taxes | 0 | 0 | 0 | 3,471 | ||||
Gain (loss) on disposal, net of taxes | $ 0 | $ 0 | 0 | $ 2,508 | ||||
Transportation | Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain (loss) on disposal before income taxes | $ 3,471 | |||||||
Gain (loss) on disposal, net of taxes | $ 2,508 | |||||||
Baker Hughes | Baker Hughes | Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Ownership interest (as a percentage) | 50.20% | 36.80% | ||||||
Baker Hughes excluding joint venture | Investee | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sales of products and services | 265 | |||||||
Purchases of products and services | 101 | |||||||
Cash collected from affiliate | 451 | |||||||
Dividend received | 136 | |||||||
Baker Hughes excluding joint venture | Notes Payable, Other Payables | Baker Hughes Promissory Note | Investee | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Cash collected from affiliate | 130 | |||||||
Baker Hughes | Aeroderivative Joint Venture | Investee | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sales of products and services | 252 | |||||||
Cash collected from affiliate | $ 225 |
BUSINESSES HELD FOR SALE AND _5
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS - Financial Information for Discontinued Operations (Details) - USD ($) $ in Millions | Feb. 25, 2019 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Operations | |||||||
Sales of goods and services | $ 0 | $ 5,953 | $ 0 | $ 12,118 | |||
GE Capital revenues and other income (loss) | 71 | (48) | (5) | (9) | |||
Cost of goods and services sold | 0 | (4,954) | 0 | (10,109) | |||
Other income, costs and expenses | (64) | (993) | 152 | 1,863 | |||
Earnings (loss) of discontinued operations before income taxes | 8 | (42) | (157) | 137 | |||
Benefit (provision) for income taxes | 9 | 261 | 0 | 192 | |||
Earnings (loss) of discontinued operations, net of taxes | 219 | (157) | 329 | ||||
Disposal | |||||||
Gain (loss) on disposal before income taxes | (10) | 0 | (13) | 3,517 | |||
Benefit (provision) for income taxes | 0 | 0 | 0 | (964) | |||
Gain (loss) on disposal, net of taxes | (10) | (1) | (13) | 2,553 | |||
Earnings (loss) from discontinued operations, net of taxes | 7 | 219 | (171) | 2,881 | |||
Earnings (loss) of discontinued operations attributable to the Company after income taxes | 17 | 242 | (155) | 317 | |||
Assets | |||||||
Assets | 3,617 | 3,617 | $ 4,109 | ||||
Liabilities | |||||||
Liabilities | 235 | 235 | 203 | ||||
Baker Hughes disposal group | |||||||
Operations | |||||||
Sales of goods and services | 0 | 5,953 | 0 | 11,569 | |||
GE Capital revenues and other income (loss) | 0 | 0 | 0 | 0 | |||
Cost of goods and services sold | 0 | (4,954) | 0 | (9,631) | |||
Other income, costs and expenses | (3) | (981) | (3) | (1,768) | |||
Earnings (loss) of discontinued operations before income taxes | (3) | 18 | (3) | 170 | |||
Benefit (provision) for income taxes | 2 | (33) | (11) | (116) | |||
Earnings (loss) of discontinued operations, net of taxes | (1) | (15) | (14) | 55 | |||
Disposal | |||||||
Gain (loss) on disposal before income taxes | (10) | 0 | (13) | 0 | |||
Benefit (provision) for income taxes | 0 | 0 | 0 | 0 | |||
Gain (loss) on disposal, net of taxes | (10) | $ (8,238) | 0 | (13) | 0 | ||
Earnings (loss) from discontinued operations, net of taxes | (11) | (15) | (27) | 55 | |||
Transportation | |||||||
Operations | |||||||
Sales of goods and services | 0 | 0 | 0 | 549 | |||
GE Capital revenues and other income (loss) | 0 | 0 | 0 | 0 | |||
Cost of goods and services sold | 0 | 0 | 0 | (478) | |||
Other income, costs and expenses | 1 | 3 | (3) | (6) | |||
Earnings (loss) of discontinued operations before income taxes | 1 | 3 | (3) | 65 | |||
Benefit (provision) for income taxes | 0 | (7) | 6 | (19) | |||
Earnings (loss) of discontinued operations, net of taxes | 1 | (4) | 4 | 46 | |||
Disposal | |||||||
Gain (loss) on disposal before income taxes | 0 | 0 | 0 | 3,471 | |||
Benefit (provision) for income taxes | 0 | 0 | 0 | (963) | |||
Gain (loss) on disposal, net of taxes | 0 | 0 | 0 | 2,508 | |||
Earnings (loss) from discontinued operations, net of taxes | 1 | (4) | 4 | 2,554 | |||
GE Capital | |||||||
Operations | |||||||
Sales of goods and services | 0 | 0 | 0 | 0 | |||
GE Capital revenues and other income (loss) | 71 | (48) | (5) | (9) | |||
Cost of goods and services sold | 0 | 0 | 0 | 0 | |||
Other income, costs and expenses | (62) | (16) | (146) | (89) | |||
Earnings (loss) of discontinued operations before income taxes | 10 | (64) | (151) | (98) | |||
Benefit (provision) for income taxes | 8 | 302 | 4 | 327 | |||
Earnings (loss) of discontinued operations, net of taxes | 17 | 238 | (147) | 228 | |||
Disposal | |||||||
Gain (loss) on disposal before income taxes | 0 | 0 | 0 | 47 | |||
Benefit (provision) for income taxes | 0 | 0 | 0 | (2) | |||
Gain (loss) on disposal, net of taxes | 0 | (1) | 0 | 45 | |||
Earnings (loss) from discontinued operations, net of taxes | 17 | $ 238 | (147) | $ 273 | |||
Discontinued Operations | |||||||
Assets | |||||||
Cash, cash equivalents and restricted cash | 477 | 477 | 638 | ||||
Investment securities | 91 | 91 | 202 | ||||
Current receivables | 61 | 61 | 81 | ||||
Financing receivables held for sale (Polish mortgage portfolio) | 2,398 | 2,398 | 2,485 | ||||
Property, plant, and equipment | 112 | 112 | 123 | ||||
Deferred income taxes | 213 | 213 | 264 | ||||
All other assets | 265 | 265 | 317 | ||||
Assets | 3,617 | 3,617 | 4,109 | ||||
Liabilities | |||||||
Accounts payable & Progress collections and deferred income | 15 | 15 | 40 | ||||
All other liabilities | 220 | 220 | 163 | ||||
Liabilities | 235 | 235 | 203 | ||||
Discontinued Operations | Transportation | |||||||
Disposal | |||||||
Gain (loss) on disposal before income taxes | $ 3,471 | ||||||
Gain (loss) on disposal, net of taxes | $ 2,508 | ||||||
Discontinued Operations | GE Capital | |||||||
Assets | |||||||
Assets | 3,462 | 3,462 | |||||
Liabilities | |||||||
Liabilities | 84 | 84 | |||||
GE Capital Exit Plan | Discontinued Operations | |||||||
Liabilities | |||||||
Discontinued operations, intercompany tax receivables | $ 829 | $ 829 | $ 839 |
INVESTMENT SECURITIES - Schedul
INVESTMENT SECURITIES - Schedule of Investment Securities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Gross unrealized gains | $ 7,237 | $ 5,736 |
Gross unrealized losses | (300) | (31) |
Equity | 6,465 | 10,025 |
Amortized cost | 40,179 | 42,816 |
Estimated fair value | 47,117 | 48,521 |
U.S. corporate | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 23,540 | 23,037 |
Gross unrealized gains | 5,771 | 4,636 |
Gross unrealized losses | (136) | (11) |
Estimated fair value | 29,175 | 27,661 |
Non-U.S. corporate | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 2,185 | 2,161 |
Gross unrealized gains | 337 | 260 |
Gross unrealized losses | (5) | (1) |
Estimated fair value | 2,517 | 2,420 |
State and municipal | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 3,235 | 3,086 |
Gross unrealized gains | 826 | 598 |
Gross unrealized losses | (22) | (15) |
Estimated fair value | 4,039 | 3,669 |
Mortgage and asset-backed | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 3,497 | 3,117 |
Gross unrealized gains | 97 | 116 |
Gross unrealized losses | (136) | (4) |
Estimated fair value | 3,458 | 3,229 |
Government and agencies | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized cost | 1,257 | 1,391 |
Gross unrealized gains | 206 | 126 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | $ 1,463 | $ 1,516 |
INVESTMENT SECURITIES - Narrati
INVESTMENT SECURITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Accrued interest | $ 413 | $ 413 | |||
Equity securities | 6,465 | 6,465 | $ 10,025 | ||
Gross unrealized losses, less than 12 months | (271) | (271) | (11) | ||
Gross unrealized losses, 12 months or more | (29) | (29) | (20) | ||
Estimated fair value, less than 12 months | 3,066 | 3,066 | 724 | ||
Estimated fair value, 12 months or more | 168 | 168 | 274 | ||
Gross unrealized losses | (300) | (300) | (31) | ||
Net unrealized gains (losses) recorded to earnings | 1,929 | $ (51) | (3,843) | $ (42) | |
Proceeds from investment securities sales and early redemptions by issuers | 1,450 | 2,913 | 2,705 | 4,334 | |
Debt and equity securities, realized gain | 82 | 32 | 128 | 76 | |
Debt and equity securities, realized losses | (69) | (67) | (85) | (105) | |
Equity securities without readily determinable fair values | 288 | 288 | 517 | ||
Fair value adjustments, including impairment | (65) | $ 29 | (159) | $ 23 | |
Level 3 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investments with a fair value | 5,453 | 5,453 | 5,210 | ||
Baker Hughes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Equity securities | 5,910 | 5,910 | |||
Net unrealized gains (losses) recorded to earnings | 1,846 | (3,865) | |||
CMBS | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Gross unrealized losses | (113) | (113) | |||
U.S. corporate | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Gross unrealized losses | $ (136) | $ (136) | $ (11) |
INVESTMENT SECURITIES - Contrac
INVESTMENT SECURITIES - Contractual Maturities (Details) $ in Millions | Jun. 30, 2020USD ($) |
Amortized cost | |
Within one year | $ 643 |
After one year through five years | 2,483 |
After five years through ten years | 6,516 |
After ten years | 20,575 |
Estimated fair value | |
Within one year | 657 |
After one year through five years | 2,676 |
After five years through ten years | 7,599 |
After ten years | $ 26,261 |
CURRENT AND LONG-TERM RECEIVA_3
CURRENT AND LONG-TERM RECEIVABLES - Schedule of Current Receivables (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Customer receivables | $ 12,361 | $ 12,594 | |
Sundry receivables | 4,840 | 5,049 | |
Allowance for credit losses | (1,160) | (874) | |
Total current receivables | 16,041 | 16,769 | |
Increase in allowance for credit losses | 272 | ||
GE Capital | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
DPP balance | 537 | 421 | |
GE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Customer receivables | 8,879 | 9,507 | |
Sundry receivables | 5,021 | 5,247 | |
Allowance for credit losses | (1,157) | (872) | |
Total current receivables | [1] | 12,744 | 13,883 |
Aviation | Operating Segments | Boeing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Customer receivables | $ 1,367 | $ 1,397 | |
[1] | Represents the adding together of all GE Industrial affiliates and GE Capital continuing operations on a one-line basis. See Note 1. |
CURRENT AND LONG-TERM RECEIVA_4
CURRENT AND LONG-TERM RECEIVABLES - Sales of GE Current Customer Receivables, Narrative (Details) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
GE | Current Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of receivables sold | 45.00% | 59.00% |
CURRENT AND LONG-TERM RECEIVA_5
CURRENT AND LONG-TERM RECEIVABLES - Sales of GE Current Customer Receivables (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Movement in Accounts Receivable from Securitization [Roll Forward] | ||
Increase in current receivables | $ 190 | $ 696 |
GE | Current Receivables | GE Capital | ||
Movement in Accounts Receivable from Securitization [Roll Forward] | ||
Balance at beginning of period | 3,087 | 4,386 |
GE sales | 16,964 | 20,009 |
GE Capital sales to third parties | (9,931) | (13,836) |
Collections and other | (6,807) | (7,140) |
Reclassification from long-term customer receivables | 170 | 209 |
Balance at end of period | 3,482 | 3,627 |
GE | Current Receivables | Third Parties | ||
Movement in Accounts Receivable from Securitization [Roll Forward] | ||
Balance at beginning of period | 6,757 | 7,880 |
GE sales | 773 | 2,760 |
GE Capital sales to third parties | 9,931 | 13,836 |
Collections and other | (13,565) | (17,644) |
Reclassification from long-term customer receivables | 0 | 0 |
Balance at end of period | 3,897 | 6,831 |
GE | Current Receivables with Recourse | GE Capital | ||
Movement in Accounts Receivable from Securitization [Roll Forward] | ||
Balance at end of period | $ 661 | $ 964 |
CURRENT AND LONG-TERM RECEIVA_6
CURRENT AND LONG-TERM RECEIVABLES - Schedule of Long-term Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Long-term customer receivables | $ 688 | $ 906 |
Long-term sundry receivables | 1,399 | 1,504 |
Allowance for credit losses | (127) | (128) |
Total long-term receivables | 1,960 | 2,282 |
GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Long-term customer receivables | 465 | 506 |
Long-term sundry receivables | 1,792 | 1,834 |
Allowance for credit losses | (127) | (128) |
Total long-term receivables | 2,130 | 2,212 |
GE Capital | GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total long-term receivables | 223 | 400 |
Noncurrent Receivables with Recourse | GE Capital | GE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Customer receivables | $ 197 | $ 312 |
CURRENT AND LONG-TERM RECEIVA_7
CURRENT AND LONG-TERM RECEIVABLES - Unconsolidated Receivables Facilities (Details) | 6 Months Ended | ||
Jun. 30, 2020USD ($)receivable_facility | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
GE Capital | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of receivables facility | receivable_facility | 2 | ||
Third Parties | GE | Current Receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Customer receivables sold to receivables facilities | $ 7,679,000,000 | $ 10,786,000,000 | |
Total cash purchase price for customer receivables | 7,240,000,000 | 10,497,000,000 | |
Cash collections re-invested to purchase customer receivables | 6,453,000,000 | 8,830,000,000 | |
Non-cash increases to deferred purchase price | 390,000,000 | 137,000,000 | |
Cash payments received on deferred purchase price | 274,000,000 | $ 220,000,000 | |
Receivables Facility One | GE Capital | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Facility program size | 3,000,000,000 | ||
Receivables Facility Two | GE Capital | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Facility program size | $ 800,000,000 | $ 1,200,000,000 |
CURRENT AND LONG-TERM RECEIVA_8
CURRENT AND LONG-TERM RECEIVABLES - Consolidated Securitization Entities (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2020USD ($)entity | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | $ 256,487 | $ 266,048 |
Liabilities | 221,233 | 236,187 |
Consolidated VIE | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | 2,621 | 2,134 |
Liabilities | $ 1,553 | 1,233 |
Consolidated VIE | GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of VIEs | entity | 3 | |
Consolidated VIE | GE Capital | Receivables | Current Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | $ 1,386 | 2,080 |
Consolidated VIE | GE Capital | Receivables | Noncurrent Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets | 217 | 375 |
Consolidated VIE | GE Capital | Debt | Debt Facilities | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Liabilities | $ 396 | $ 1,655 |
FINANCING RECEIVABLES AND ALL_3
FINANCING RECEIVABLES AND ALLOWANCES - Schedule of Financing Receivables, Net (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables – net | $ 3,095 | $ 3,134 |
Financing Receivables Portfolio Segment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 3,167 | 3,168 |
Allowance for losses | (72) | (33) |
Financing receivables – net | 3,095 | 3,134 |
Financing Receivables Portfolio Segment | Loans, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 1,212 | 1,098 |
Financing Receivables Portfolio Segment | Investment in financing leases, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 1,955 | 2,070 |
Financing Receivables Portfolio Segment | GE Capital | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 7,004 | 6,996 |
Allowance for losses | (45) | (17) |
Financing receivables – net | 6,959 | 6,979 |
Financing Receivables Portfolio Segment | GE Capital | Loans, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | 5,049 | 4,927 |
Financing Receivables Portfolio Segment | GE Capital | Investment in financing leases, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing receivables, net of deferred income | $ 1,955 | $ 2,070 |
FINANCING RECEIVABLES AND ALL_4
FINANCING RECEIVABLES AND ALLOWANCES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Finance lease income | $ 34 | $ 45 | $ 78 | $ 91 | |
GE Capital | Financing Receivables Portfolio Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percent of financing receivables over 30 days past due | 8.50% | 8.50% | 4.20% | ||
Percent of financing receivables over 90 days past due | 4.70% | 4.70% | 2.90% | ||
Percent of financing receivables on nonaccrual | 4.60% | 4.60% | 6.10% |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and work in process | $ 8,976 | $ 8,771 |
Finished goods | 6,275 | 5,333 |
Total inventories | $ 15,251 | $ 14,104 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||||
Original cost | $ 76,137 | $ 76,137 | $ 75,187 | ||
Less accumulated depreciation and amortization | (33,317) | (33,317) | (31,897) | ||
Property, plant and equipment – net | 42,821 | 42,821 | $ 43,290 | ||
Consolidated depreciation and amortization on property, plant and equipment | 1,290 | $ 970 | 2,281 | $ 1,965 | |
Operating lease income | 795 | 1,017 | 1,672 | 1,949 | |
Fixed lease income | 714 | 774 | 1,419 | 1,539 | |
Variable lease income | $ 82 | $ 243 | $ 253 | $ 411 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities | |||
Capital | GECAS | Aircraft and engines leased to others | |||||
Property, Plant and Equipment [Line Items] | |||||
Pre-tax impairment charges | $ 292 | $ 337 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Operating Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Right-of-use assets | $ 2,683 | $ 2,896 |
Lease liabilities | 2,930 | 3,162 |
GE Industrial | ||
Property, Plant and Equipment [Line Items] | ||
Lease liabilities | $ 3,117 | $ 3,369 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT - Operating Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Long-term (fixed) | $ 183 | $ 219 | $ 360 | $ 445 |
Long-term (variable) | 24 | 27 | 45 | 71 |
Short-term | 54 | 43 | 123 | 90 |
Total Operating lease expense | $ 261 | $ 289 | $ 528 | $ 606 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in Goodwill Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill | ||||
Balance at beginning of period | $ 26,734 | |||
Impairments | $ (1,717) | $ (744) | (1,717) | $ (744) |
Currency exchange and other | (66) | |||
Balance at end of period | 24,951 | 24,951 | ||
Operating Segments | Power | ||||
Goodwill | ||||
Balance at beginning of period | 145 | |||
Impairments | 0 | |||
Currency exchange and other | 0 | |||
Balance at end of period | 145 | 145 | ||
Operating Segments | Renewable Energy | ||||
Goodwill | ||||
Balance at beginning of period | 3,290 | |||
Impairments | 0 | |||
Currency exchange and other | (67) | |||
Balance at end of period | 3,223 | 3,223 | ||
Operating Segments | Aviation | ||||
Goodwill | ||||
Balance at beginning of period | 9,859 | |||
Impairments | (877) | |||
Currency exchange and other | 8 | |||
Balance at end of period | 8,989 | 8,989 | ||
Operating Segments | Healthcare | ||||
Goodwill | ||||
Balance at beginning of period | 11,728 | |||
Impairments | 0 | |||
Currency exchange and other | (4) | |||
Balance at end of period | 11,723 | 11,723 | ||
Operating Segments | Capital | ||||
Goodwill | ||||
Balance at beginning of period | 839 | |||
Impairments | (839) | |||
Currency exchange and other | 0 | |||
Balance at end of period | 0 | 0 | ||
Corporate | ||||
Goodwill | ||||
Balance at beginning of period | 873 | |||
Impairments | 0 | |||
Currency exchange and other | (3) | |||
Balance at end of period | $ 871 | $ 871 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill, Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2015 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||||||
Goodwill impairments (Note 8) | $ 1,717,000,000 | $ 744,000,000 | $ 1,717,000,000 | $ 744,000,000 | ||
Goodwill | 24,951,000,000 | 24,951,000,000 | $ 26,734,000,000 | |||
Operating Segments | Aviation | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairments (Note 8) | 877,000,000 | |||||
Goodwill | 8,989,000,000 | 8,989,000,000 | 9,859,000,000 | |||
Operating Segments | Aviation | Additive Reporting Unit | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairments (Note 8) | 877,000,000 | |||||
Goodwill | 222,000,000 | 222,000,000 | ||||
Operating Segments | Capital | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairments (Note 8) | 839,000,000 | |||||
Goodwill | 0 | 0 | 839,000,000 | |||
Operating Segments | Capital | GECAS | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairments (Note 8) | 839,000,000 | |||||
Goodwill | 0 | 0 | ||||
Corporate | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairments (Note 8) | 0 | |||||
Goodwill | 871,000,000 | 871,000,000 | $ 873,000,000 | |||
Corporate | Grid Solutions Reporting Unit | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 871,000,000 | $ 871,000,000 | ||||
Milestone Aviation | Operating Segments | Capital | GECAS | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairments (Note 8) | $ 729,000,000 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets - Net (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets subject to amortization | $ 10,168 | $ 10,653 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Other Intangible Assets, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 308 | $ 357 | $ 648 | $ 724 |
REVENUES - Equipment and Servic
REVENUES - Equipment and Services Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
GE Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 16,066 | $ 21,416 | $ 34,910 | $ 41,740 |
GE Industrial | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 8,299 | 10,269 | 17,476 | 19,878 |
GE Industrial | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 7,767 | 11,147 | 17,434 | 21,863 |
Operating segments | GE Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 16,066 | 21,416 | 34,910 | 41,740 |
Operating segments | Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,156 | 4,681 | 8,181 | 9,298 |
Operating segments | Power | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,488 | 1,463 | 2,994 | 3,039 |
Operating segments | Power | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,669 | 3,218 | 5,187 | 6,259 |
Operating segments | Renewable Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,505 | 3,627 | 6,698 | 6,165 |
Operating segments | Renewable Energy | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,722 | 2,867 | 5,298 | 4,848 |
Operating segments | Renewable Energy | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 783 | 760 | 1,401 | 1,317 |
Operating segments | Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,384 | 7,877 | 11,276 | 15,831 |
Operating segments | Aviation | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,031 | 3,033 | 4,475 | 6,146 |
Operating segments | Aviation | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,352 | 4,844 | 6,801 | 9,685 |
Operating segments | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,893 | 4,934 | 8,620 | 9,616 |
Operating segments | Healthcare | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,050 | 2,838 | 4,749 | 5,492 |
Operating segments | Healthcare | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,843 | 2,095 | 3,872 | 4,125 |
Corporate items and eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 129 | 298 | 135 | 830 |
Corporate items and eliminations | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 9 | 69 | (39) | 352 |
Corporate items and eliminations | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 120 | $ 229 | $ 174 | $ 478 |
REVENUES - Sub-Segment Revenues
REVENUES - Sub-Segment Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | $ 17,750 | $ 23,414 | $ 38,273 | $ 45,616 |
GE Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 16,066 | 21,416 | 34,910 | 41,740 |
Operating segments | GE Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 16,066 | 21,416 | 34,910 | 41,740 |
Operating segments | Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,156 | 4,681 | 8,181 | 9,298 |
Operating segments | Power | Gas Power | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,077 | 3,246 | 5,936 | 6,510 |
Operating segments | Power | Power Portfolio | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,079 | 1,434 | 2,244 | 2,788 |
Operating segments | Renewable Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,505 | 3,627 | 6,698 | 6,165 |
Operating segments | Renewable Energy | Onshore Wind | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,487 | 2,450 | 4,612 | 3,891 |
Operating segments | Renewable Energy | Grid Solutions equipment and services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 812 | 935 | 1,652 | 1,852 |
Operating segments | Renewable Energy | Hydro, Offshore Wind and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 205 | 242 | 435 | 422 |
Operating segments | Aviation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 4,384 | 7,877 | 11,276 | 15,831 |
Operating segments | Aviation | Commercial Engines & Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,232 | 5,848 | 7,009 | 11,797 |
Operating segments | Aviation | Military | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 1,161 | 976 | 2,121 | 2,013 |
Operating segments | Aviation | Systems & Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 990 | 1,052 | 2,146 | 2,021 |
Operating segments | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,893 | 4,934 | 8,620 | 9,616 |
Operating segments | Healthcare | Healthcare Systems | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,523 | 3,589 | 6,971 | 7,021 |
Operating segments | Healthcare | Pharmaceutical Diagnostics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 370 | 517 | 820 | 1,003 |
Operating segments | Healthcare | BioPharma | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 0 | 828 | 830 | 1,593 |
Operating segments | Capital | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated Revenues | 1,845 | 2,321 | 3,768 | 4,548 |
Corporate items and eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 129 | 298 | 135 | 830 |
Consolidated Revenues | $ (162) | $ (323) | $ (406) | $ (672) |
REVENUES - Remaining Performanc
REVENUES - Remaining Performance Obligation (Details) $ in Millions | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 227,598 |
Equipment | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | 44,411 |
Services | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations expected to be satisfied | $ 183,188 |
REVENUES - Remaining Performa_2
REVENUES - Remaining Performance Obligation (Percentage and Period) (Details) | Jun. 30, 2020 |
Equipment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 63.00% |
Performance obligations expected to be satisfied, expected timing | 1 year |
Equipment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 83.00% |
Performance obligations expected to be satisfied, expected timing | 2 years |
Equipment | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 97.00% |
Performance obligations expected to be satisfied, expected timing | 5 years |
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 11.00% |
Performance obligations expected to be satisfied, expected timing | 1 year |
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 43.00% |
Performance obligations expected to be satisfied, expected timing | 5 years |
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2030-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 67.00% |
Performance obligations expected to be satisfied, expected timing | 10 years |
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2035-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied (as a percent) | 82.00% |
Performance obligations expected to be satisfied, expected timing | 15 years |
CONTRACT AND OTHER DEFERRED A_3
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Capitalized Contract Cost [Line Items] | ||
Decrease in contract and other deferred assets | $ 1,246 | |
Revenue recognized included in contract liability | 6,585 | $ 7,498 |
Power and Renewable Energy | ||
Capitalized Contract Cost [Line Items] | ||
Increase (decrease) in progress collections and deferred income due to timing of revenue recognition | (604) | |
Long-term | Services | ||
Capitalized Contract Cost [Line Items] | ||
Decrease due to billings | 4,527 | |
Increase due to revenues recognized | 4,670 | |
Long-term | Services | Aviation | ||
Capitalized Contract Cost [Line Items] | ||
Decrease due to billings | 791 | |
Non-cash pre-tax charge | (536) | |
Long-term | Services | Power | ||
Capitalized Contract Cost [Line Items] | ||
Decrease due to billings | 22 | |
GE | Operating Segments | Aviation | ||
Capitalized Contract Cost [Line Items] | ||
Early payments received | $ 708 |
CONTRACT AND OTHER DEFERRED A_4
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME - Schedule of Contract Assets (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contract and other deferred assets | $ 15,555 | $ 16,801 | |
GE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contract and other deferred assets | [1] | 15,587 | 16,833 |
Operating Segments | GE | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 9,273 | 10,011 | |
Deferred inventory costs | 2,730 | 3,267 | |
Nonrecurring engineering costs | 2,452 | 2,391 | |
Customer advances and other | 1,100 | 1,133 | |
Contract and other deferred assets | 15,555 | 16,801 | |
Operating Segments | GE | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 9,728 | 10,338 | |
Billings in excess of revenues | (5,415) | (5,280) | |
Operating Segments | GE | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 4,312 | 5,058 | |
Operating Segments | GE | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 759 | 717 | |
Operating Segments | GE | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 4,202 | 4,236 | |
Operating Segments | GE | Power | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 6,385 | 6,478 | |
Deferred inventory costs | 933 | 943 | |
Nonrecurring engineering costs | 24 | 44 | |
Customer advances and other | 0 | 0 | |
Contract and other deferred assets | 7,342 | 7,465 | |
Operating Segments | GE | Power | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 5,323 | 5,342 | |
Billings in excess of revenues | (1,505) | (1,561) | |
Operating Segments | GE | Power | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 3,818 | 3,781 | |
Operating Segments | GE | Power | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 152 | 190 | |
Operating Segments | GE | Power | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 2,415 | 2,508 | |
Operating Segments | GE | Power | Products and services, incremental fees | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Customer advances and other | 862 | 909 | |
Operating Segments | GE | Aviation | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 913 | 1,675 | |
Deferred inventory costs | 475 | 287 | |
Nonrecurring engineering costs | 2,355 | 2,257 | |
Customer advances and other | 1,132 | 1,165 | |
Contract and other deferred assets | 4,875 | 5,384 | |
Operating Segments | GE | Aviation | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 4,404 | 4,996 | |
Billings in excess of revenues | (3,910) | (3,719) | |
Operating Segments | GE | Aviation | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 494 | 1,278 | |
Operating Segments | GE | Aviation | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 343 | 316 | |
Operating Segments | GE | Aviation | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 76 | 82 | |
Operating Segments | GE | Aviation | Products and services, higher usage-based fees | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Billings in excess of revenues | (297) | (308) | |
Total contract assets | 1,791 | 1,712 | |
Operating Segments | GE | Aviation | Products and services, incremental fees | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Billings in excess of revenues | (262) | (256) | |
Customer advances and other | 955 | 986 | |
Operating Segments | GE | Renewable Energy | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 1,290 | 1,260 | |
Deferred inventory costs | 982 | 1,677 | |
Nonrecurring engineering costs | 41 | 47 | |
Customer advances and other | 0 | 0 | |
Contract and other deferred assets | 2,313 | 2,985 | |
Operating Segments | GE | Renewable Energy | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 0 | 0 | |
Billings in excess of revenues | 0 | 0 | |
Operating Segments | GE | Renewable Energy | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 0 | 0 | |
Operating Segments | GE | Renewable Energy | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 41 | 43 | |
Operating Segments | GE | Renewable Energy | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 1,249 | 1,217 | |
Operating Segments | GE | Healthcare | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 494 | 492 | |
Deferred inventory costs | 339 | 359 | |
Nonrecurring engineering costs | 32 | 35 | |
Customer advances and other | 0 | 0 | |
Contract and other deferred assets | 865 | 886 | |
Operating Segments | GE | Healthcare | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 0 | 0 | |
Billings in excess of revenues | 0 | 0 | |
Operating Segments | GE | Healthcare | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 0 | 0 | |
Operating Segments | GE | Healthcare | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 187 | 169 | |
Operating Segments | GE | Healthcare | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 307 | 324 | |
Operating Segments | GE | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 192 | 106 | |
Deferred inventory costs | 0 | 0 | |
Nonrecurring engineering costs | 0 | 8 | |
Customer advances and other | (32) | (32) | |
Contract and other deferred assets | 160 | 82 | |
Operating Segments | GE | Other | Service agreements | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revenues in excess of billings | 0 | 0 | |
Billings in excess of revenues | 0 | 0 | |
Operating Segments | GE | Other | Service agreements | Long-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 0 | 0 | |
Operating Segments | GE | Other | Service agreements | Short-term | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | 37 | 0 | |
Operating Segments | GE | Other | Equipment contract revenue | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total contract assets | $ 155 | $ 106 | |
[1] | Represents the adding together of all GE Industrial affiliates and GE Capital continuing operations on a one-line basis. See Note 1. |
CONTRACT AND OTHER DEFERRED A_5
CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME - Progress Collections and Deferred Income (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | |
Capitalized Contract Cost [Line Items] | |||
Total progress collections & deferred income | $ 19,927 | $ 20,508 | |
GE | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections & deferred income | [1] | 20,091 | 20,694 |
Operating Segments | GE | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 16,332 | 17,089 | |
Deferred income | 3,759 | 3,606 | |
Total progress collections & deferred income | 20,091 | 20,694 | |
Operating Segments | GE | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 6,347 | 7,240 | |
Operating Segments | GE | Other | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 9,985 | 9,849 | |
Operating Segments | GE | Power | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 5,441 | 6,270 | |
Deferred income | 48 | 49 | |
Total progress collections & deferred income | 5,489 | 6,319 | |
Operating Segments | GE | Power | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 5,011 | 5,857 | |
Operating Segments | GE | Power | Other | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 431 | 413 | |
Operating Segments | GE | Aviation | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 5,476 | 4,863 | |
Deferred income | 1,569 | 1,528 | |
Total progress collections & deferred income | 7,046 | 6,391 | |
Finance discounts | 560 | 564 | |
Operating Segments | GE | Aviation | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 152 | 115 | |
Operating Segments | GE | Aviation | Other | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 5,324 | 4,748 | |
Operating Segments | GE | Renewable Energy | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 4,901 | 5,461 | |
Deferred income | 329 | 284 | |
Total progress collections & deferred income | 5,230 | 5,745 | |
Operating Segments | GE | Renewable Energy | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 1,184 | 1,268 | |
Operating Segments | GE | Renewable Energy | Other | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 3,716 | 4,193 | |
Operating Segments | GE | Healthcare | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 343 | 305 | |
Deferred income | 1,691 | 1,647 | |
Total progress collections & deferred income | 2,034 | 1,952 | |
Operating Segments | GE | Healthcare | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 0 | 0 | |
Operating Segments | GE | Healthcare | Other | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 343 | 305 | |
Operating Segments | GE | Other | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 171 | 189 | |
Deferred income | 121 | 98 | |
Total progress collections & deferred income | 292 | 287 | |
Operating Segments | GE | Other | Equipment | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | 0 | 0 | |
Operating Segments | GE | Other | Other | |||
Capitalized Contract Cost [Line Items] | |||
Total progress collections | $ 171 | $ 189 | |
[1] | Represents the adding together of all GE Industrial affiliates and GE Capital continuing operations on a one-line basis. See Note 1. |
BORROWINGS - Schedule of Borrow
BORROWINGS - Schedule of Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Short-term borrowings | ||
Short-term borrowings | $ 9,059 | $ 22,072 |
Eliminations | (4,195) | (3,140) |
Long-term borrowings | ||
Borrowings | 72,423 | 67,155 |
Eliminations | (17,435) | (17,038) |
Total borrowings | 81,878 | 90,882 |
GE | ||
Short-term borrowings | ||
Short-term borrowings | 5,416 | 11,079 |
Long-term borrowings | ||
Borrowings | 40,398 | 40,980 |
GE | Senior notes | ||
Long-term borrowings | ||
Borrowings | 18,387 | 14,762 |
GE | Senior notes assumed by GE | ||
Long-term borrowings | ||
Borrowings | 20,046 | 23,024 |
GE | Subordinated notes assumed by GE | ||
Long-term borrowings | ||
Borrowings | 1,673 | 2,871 |
GE | Other | ||
Long-term borrowings | ||
Borrowings | 293 | 324 |
GE | Commercial paper | ||
Short-term borrowings | ||
Short-term borrowings | 505 | 3,008 |
GE | Current portion of long-term borrowings | ||
Short-term borrowings | ||
Short-term borrowings | 38 | 766 |
GE | Current portion of long-term borrowings assumed by GE | ||
Short-term borrowings | ||
Short-term borrowings | 3,679 | 5,473 |
GE | Other | ||
Short-term borrowings | ||
Short-term borrowings | 1,194 | 1,832 |
GE Capital | ||
Short-term borrowings | ||
Short-term borrowings | 7,837 | 14,134 |
Long-term borrowings | ||
Borrowings | 49,460 | 43,213 |
GE Capital | Senior notes | ||
Long-term borrowings | ||
Borrowings | 31,253 | 25,371 |
GE Capital | Subordinated notes assumed by GE | ||
Long-term borrowings | ||
Borrowings | 188 | 178 |
GE Capital | Intercompany payable to GE | ||
Long-term borrowings | ||
Borrowings | 17,435 | 17,038 |
GE Capital | Other | ||
Long-term borrowings | ||
Borrowings | 584 | 626 |
GE Capital | Non-recourse borrowings of consolidated securitization entities | ||
Long-term borrowings | ||
Borrowings | 396 | 1,655 |
GE Capital | Current portion of long-term borrowings | ||
Short-term borrowings | ||
Short-term borrowings | 4,000 | 11,226 |
GE Capital | Intercompany payable to GE | ||
Short-term borrowings | ||
Short-term borrowings | 3,237 | 2,104 |
GE Capital | Other | ||
Short-term borrowings | ||
Short-term borrowings | $ 601 | $ 804 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) € in Millions | 3 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2020EUR (€) | Dec. 31, 2019USD ($) | ||
Guarantor Obligations [Line Items] | ||||
Short-term borrowings assumed by GE | $ 0 | $ 0 | ||
Long-term borrowings assumed by GE | 0 | 0 | ||
GE Capital | ||||
Guarantor Obligations [Line Items] | ||||
Receivable from related parties | 20,672,000,000 | |||
GE | ||||
Guarantor Obligations [Line Items] | ||||
Total borrowings | 25,142,000,000 | |||
Short-term borrowings assumed by GE | [1] | 3,679,000,000 | 5,473,000,000 | |
Long-term borrowings assumed by GE | [1] | 21,719,000,000 | 25,895,000,000 | |
GE | GE Issued Borrowings | ||||
Guarantor Obligations [Line Items] | ||||
Total borrowings | 20,416,000,000 | |||
GE | Intercompany Loan | GE Capital | ||||
Guarantor Obligations [Line Items] | ||||
Total borrowings | 4,726,000,000 | |||
Short-term borrowings | 442,000,000 | |||
Long-term borrowings | 4,284,000,000 | |||
Repayment of intercompany loans | 7,500,000,000 | |||
GE Capital | ||||
Guarantor Obligations [Line Items] | ||||
Short-term borrowings assumed by GE | 3,237,000,000 | 2,104,000,000 | ||
Long-term borrowings assumed by GE | 17,435,000,000 | 17,038,000,000 | ||
GE Capital | Non-recourse borrowings of consolidated securitization entities | ||||
Guarantor Obligations [Line Items] | ||||
Debt assumed by GE upon merger | 32,426,000,000 | 34,683,000,000 | ||
GE Capital | GE Capital Exit Plan | ||||
Guarantor Obligations [Line Items] | ||||
Total borrowings | 25,398,000,000 | |||
Short-term borrowings assumed by GE | 3,679,000,000 | |||
Long-term borrowings assumed by GE | 21,719,000,000 | |||
Non-recourse borrowings of consolidated securitization entities | GE Capital | ||||
Guarantor Obligations [Line Items] | ||||
Short-term borrowings | $ 1,569,000,000 | |||
Unsecured debt | ||||
Guarantor Obligations [Line Items] | ||||
Total borrowings | 4,228,000,000 | |||
Purchased notes | 4,237,000,000 | |||
Cash consideration paid for debt purchases | 4,282,000,000 | |||
Loss on repurchase of debt | 63,000,000 | |||
Fees and other costs associated with tender | 9,000,000 | |||
Unsecured debt | April 2020 Notes | ||||
Guarantor Obligations [Line Items] | ||||
Aggregate principal amount | 7,500,000,000 | |||
Unsecured debt | Notes due 2027 | ||||
Guarantor Obligations [Line Items] | ||||
Aggregate principal amount | $ 1,000,000,000 | |||
Debt interest rate | 3.45% | 3.45% | ||
Unsecured debt | Notes due 2030 | ||||
Guarantor Obligations [Line Items] | ||||
Aggregate principal amount | $ 1,250,000,000 | |||
Debt interest rate | 3.625% | 3.625% | ||
Unsecured debt | Notes due 2040 | ||||
Guarantor Obligations [Line Items] | ||||
Aggregate principal amount | $ 1,500,000,000 | |||
Debt interest rate | 4.25% | 4.25% | ||
Unsecured debt | Notes due 2050 | ||||
Guarantor Obligations [Line Items] | ||||
Aggregate principal amount | $ 3,750,000,000 | |||
Debt interest rate | 4.35% | 4.35% | ||
Unsecured debt | 2.700% Notes due 2022 | ||||
Guarantor Obligations [Line Items] | ||||
Debt interest rate | 2.70% | 2.70% | ||
Purchased notes | $ 2,046,000,000 | |||
Unsecured debt | 0.375% due 2022 | ||||
Guarantor Obligations [Line Items] | ||||
Debt interest rate | 0.375% | 0.375% | ||
Purchased notes | $ 1,011,000,000 | € 934 | ||
Unsecured debt | 1.250% Notes due 2023 | ||||
Guarantor Obligations [Line Items] | ||||
Debt interest rate | 1.25% | 1.25% | ||
Purchased notes | $ 460,000,000 | € 425 | ||
Unsecured debt | Floating-rate Notes due 2020 | ||||
Guarantor Obligations [Line Items] | ||||
Purchased notes | $ 407,000,000 | € 376 | ||
Unsecured debt | 3.375% Notes due 2024 | ||||
Guarantor Obligations [Line Items] | ||||
Debt interest rate | 3.375% | 3.375% | ||
Purchased notes | $ 312,000,000 | |||
Unsecured debt | GE Capital | April 2020 Notes | ||||
Guarantor Obligations [Line Items] | ||||
Total borrowings | 9,827,000,000 | |||
Cash consideration paid for debt purchases | 9,950,000,000 | |||
Loss on repurchase of debt | 143,000,000 | |||
Fees and other costs associated with tender | 20,000,000 | |||
Unsecured debt | GE Capital | Senior unsecured debt due 2025 to 2032 | ||||
Guarantor Obligations [Line Items] | ||||
Aggregate principal amount | 6,000,000,000 | |||
Unsecured debt | GE Capital | Purchased Notes | ||||
Guarantor Obligations [Line Items] | ||||
Purchased notes | $ 9,787,000,000 | |||
[1] | Represents the adding together of all GE Industrial affiliates and GE Capital continuing operations on a one-line basis. See Note 1. |
INSURANCE LIABILITIES AND ANN_3
INSURANCE LIABILITIES AND ANNUITY BENEFITS - Schedule of Investment Contracts, Insurance Liabilities and Insurance Annuity Benefits (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Future policy benefit reserves | $ 33,231 | $ 32,104 |
Other adjustments | 6,873 | 5,655 |
Claim reserves | 5,699 | 5,615 |
Investment contracts | 2,129 | 2,191 |
Unearned premiums and other | 357 | 322 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 41,416 | 40,232 |
Eliminations | (462) | (406) |
Total | 40,954 | 39,826 |
Long-term care insurance contracts | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Future policy benefit reserves | 16,794 | 16,755 |
Claim reserves | 4,330 | 4,238 |
Investment contracts | 0 | 0 |
Unearned premiums and other | 27 | 30 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 21,151 | 21,023 |
Total | 21,151 | 21,023 |
Structured settlement annuities & life insurance contracts | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Future policy benefit reserves | 9,385 | 9,511 |
Claim reserves | 282 | 252 |
Investment contracts | 1,085 | 1,136 |
Unearned premiums and other | 187 | 196 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 10,939 | 11,095 |
Total | 10,939 | 11,095 |
Other contracts | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Future policy benefit reserves | 179 | 183 |
Claim reserves | 1,087 | 1,125 |
Investment contracts | 1,044 | 1,055 |
Unearned premiums and other | 143 | 96 |
Future policy benefit reserves, investment contracts, claim reserves and unearned premiums and other | 2,453 | 2,459 |
Eliminations | (462) | (406) |
Total | $ 1,991 | $ 2,053 |
INSURANCE LIABILITIES AND ANN_4
INSURANCE LIABILITIES AND ANNUITY BENEFITS - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Insurance [Abstract] | |||
Increase in insurance liabilities and annuity benefits | $ 1,128 | ||
Adjustment to insurance liabilities and annuity benefits | 1,218 | ||
Claims incurred | 945 | $ 981 | |
Paid claims | 888 | $ 824 | |
Reinsurance recoverables, allowances | 1,430 | $ 1,355 | |
Reinsurance recoverables, net | $ 2,465 | $ 2,416 |
POSTRETIREMENT BENEFIT PLANS -
POSTRETIREMENT BENEFIT PLANS - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)category | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)category | Jun. 30, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of categories | category | 3 | 3 | ||
Defined contribution plan costs | $ 87 | $ 90 | $ 182 | $ 191 |
Other pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Threshold to be included in other pension plans | 50 | 50 | ||
Principal retiree benefit plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plans cost (income) | $ (22) | $ (30) | (54) | $ (91) |
Curtailment/settlement loss (gain) | $ (33) |
POSTRETIREMENT BENEFIT PLANS _2
POSTRETIREMENT BENEFIT PLANS - Effect on Operations of Pension Plans (Details) - Principal pension plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost for benefits earned | $ 192 | $ 160 | $ 345 | $ 318 |
Prior service cost amortization | 37 | 34 | 74 | 67 |
Expected return on plan assets | (748) | (862) | (1,496) | (1,725) |
Interest cost on benefit obligations | 589 | 723 | 1,176 | 1,449 |
Net actuarial loss amortization | 851 | 770 | 1,699 | 1,533 |
Curtailment/settlement loss (gain) | 0 | 0 | 0 | 51 |
Plans cost (income) | $ 921 | $ 825 | $ 1,798 | $ 1,693 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Contingency [Line Items] | |||
Effective income tax rate | (3.30%) | (5.00%) | |
Tax associated with preparatory steps for the transaction | $ 633 | ||
GE Capital | Foreign Tax Authority | Her Majesty's Revenue and Customs (HMRC) | |||
Income Tax Contingency [Line Items] | |||
Potential impact on disallowance of interest deductions | $ 1,000 |
SHAREHOLDERS' EQUITY - Schedule
SHAREHOLDERS' EQUITY - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | $ 29,861 | |||
Other comprehensive income (loss) | $ 627 | $ 547 | 1,545 | $ 1,577 |
Ending balance | 35,254 | 56,129 | 35,254 | 56,129 |
Adjustments to investment securities before reclassifications | (2,229) | (1,054) | (962) | (2,011) |
Accumulated other comprehensive income (loss) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (10,819) | (13,485) | (11,732) | (14,414) |
Ending balance | (10,194) | (12,852) | (10,194) | (12,852) |
Investment securities including noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 20 | (16) | 61 | (39) |
Other comprehensive income (loss) before reclassifications | 34 | 94 | 41 | 121 |
Other comprehensive income (loss) before reclassifications, deferred taxes | 8 | (23) | 7 | 15 |
Reclassifications from other comprehensive income | (7) | (18) | (55) | (22) |
Reclassifications from other comprehensive income, deferred taxes | (2) | (5) | (14) | (6) |
Other comprehensive income (loss) | 27 | 76 | (14) | 99 |
Investment securities attributable to noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) | 0 | 0 | 0 | 1 |
Investment securities | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) | 27 | 75 | (14) | 98 |
Ending balance | 47 | 47 | ||
Currency translation adjustments including noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (4,685) | (5,810) | (4,818) | (6,134) |
Other comprehensive income (loss) before reclassifications | (58) | (308) | (613) | (1) |
Other comprehensive income (loss) before reclassifications, deferred taxes | 25 | 13 | 20 | 39 |
Reclassifications from other comprehensive income | 1 | 167 | 691 | 284 |
Reclassifications from other comprehensive income, deferred taxes | 0 | 0 | 0 | (4) |
Other comprehensive income (loss) | (57) | (141) | 78 | 283 |
Currency translation adjustments attributable to noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) | 1 | (77) | 3 | 22 |
Currency translation adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) | (58) | (64) | 75 | 260 |
Ending balance | (4,743) | (5,874) | (4,743) | (5,874) |
Cash flow hedges including noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (163) | 49 | 49 | 13 |
Other comprehensive income (loss) before reclassifications | 40 | (50) | (222) | (16) |
Other comprehensive income (loss) before reclassifications, deferred taxes | (24) | (8) | (69) | 3 |
Reclassifications from other comprehensive income | 13 | 25 | 64 | 28 |
Reclassifications from other comprehensive income, deferred taxes | (1) | 4 | 8 | 1 |
Other comprehensive income (loss) | 53 | (25) | (158) | 12 |
Cash flow hedges attributable to noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) | 0 | (1) | 0 | 1 |
Cash flow hedges | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) | 53 | (23) | (158) | 12 |
Ending balance | (109) | 26 | (109) | 26 |
Benefit plans including noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (5,991) | (7,708) | (7,024) | (8,254) |
Other comprehensive income (loss) before reclassifications | (74) | 7 | 145 | (111) |
Other comprehensive income (loss) before reclassifications, deferred taxes | (2) | 13 | 28 | (35) |
Reclassifications from other comprehensive income | 678 | 632 | 1,495 | 1,294 |
Reclassifications from other comprehensive income, deferred taxes | 187 | 164 | 426 | 347 |
Other comprehensive income (loss) | 604 | 639 | 1,640 | 1,183 |
Benefit plans attributable to noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) | 0 | (6) | 3 | (8) |
Benefit plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Other comprehensive income (loss) | 604 | 645 | 1,636 | 1,192 |
Ending balance | $ (5,387) | $ (7,063) | (5,387) | $ (7,063) |
BioPharma | Benefit plans including noncontrolling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Reclassifications from other comprehensive income | (836) | |||
Currency translation, net of taxes | $ 688 |
SHAREHOLDERS' EQUITY - Narrativ
SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||||
Preferred stock issued | $ 6 | $ 6 | $ 6 | |
Noncontrolling interests | 1,579 | 1,545 | $ 20,312 | |
Redeemable noncontrolling interests | 474 | $ 439 | ||
GE | ||||
Class of Stock [Line Items] | ||||
Preferred stock issued | 5,826 | |||
Increased preferred stock | $ 5,944 | |||
GE | Series D Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock issued | $ 5,694 | |||
GE | Series A, B and C Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, value outstanding | $ 250 |
EARNINGS PER SHARE INFORMATIO_2
EARNINGS PER SHARE INFORMATION (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Diluted | ||||
Earnings from continuing operations for per-share calculation | $ (1,995) | $ (114) | $ 4,370 | $ 828 |
Preferred stock dividends | (192) | (188) | (235) | (228) |
Accretion of redeemable noncontrolling interests, net of tax | (135) | 0 | (135) | 0 |
Earnings from continuing operations attributable to common shareowners for per-share calculation | (2,322) | (302) | 4,000 | 600 |
Earnings (loss) from discontinued operations for per-share calculation | 7 | 241 | (168) | 2,845 |
Net earnings (loss) attributable to GE common shareowners for per-share calculation | $ (2,314) | $ (61) | $ 3,832 | $ 3,461 |
Employee compensation-related shares (including stock options) (in shares) | 0 | 0 | 6 | 13 |
Total average equivalent shares (in shares) | 8,750 | 8,724 | 8,752 | 8,730 |
Earnings per share from continuing operations (in dollars per share) | $ (0.27) | $ (0.03) | $ 0.46 | $ 0.07 |
Earnings (loss) per share from discontinued operations (in dollars per share) | 0 | 0.03 | (0.02) | 0.33 |
Net earnings (loss) per share (in dollars per share) | $ (0.26) | $ (0.01) | $ 0.44 | $ 0.40 |
Potentially dilutive securities | 459 | 486 | 440 | 468 |
Basic | ||||
Earnings from continuing operations for per-share calculation | $ (1,995) | $ (114) | $ 4,370 | $ 843 |
Preferred stock dividends | (192) | (188) | (235) | (228) |
Accretion of redeemable noncontrolling interests, net of tax | (135) | 0 | (135) | 0 |
Earnings from continuing operations attributable to common shareowners for per-share calculation | (2,322) | (302) | 4,000 | 616 |
Earnings (loss) from discontinued operations for per-share calculation | 7 | 241 | (168) | 2,861 |
Net earnings (loss) attributable to GE common shareowners for per-share calculation | $ (2,314) | $ (61) | $ 3,832 | $ 3,476 |
Total average equivalent shares (in shares) | 8,750 | 8,724 | 8,746 | 8,716 |
Earnings per share from continuing operations (in dollars per share) | $ (0.27) | $ (0.03) | $ 0.46 | $ 0.07 |
Earnings (loss) per share from discontinued operations (in dollars per share) | 0 | 0.03 | (0.02) | 0.33 |
Net earnings (loss) per share (in dollars per share) | $ (0.26) | $ (0.01) | $ 0.44 | $ 0.40 |
FINANCIAL INSTRUMENTS - Assets
FINANCIAL INSTRUMENTS - Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Liabilities | ||
Borrowings (Note 11) | $ 81,878 | $ 90,882 |
Investment contracts (Note 12) | 2,129 | 2,191 |
Carrying amount (net) | ||
Assets | ||
Loans and other receivables | 3,668 | 4,113 |
Liabilities | ||
Borrowings (Note 11) | 81,878 | 90,882 |
Investment contracts (Note 12) | 2,129 | 2,191 |
Estimated fair value | ||
Assets | ||
Loans and other receivables | 3,722 | 4,208 |
Liabilities | ||
Borrowings (Note 11) | 83,054 | 97,754 |
Investment contracts (Note 12) | 2,597 | 2,588 |
Accrued interest | $ 863 | $ 1,106 |
FINANCIAL INSTRUMENTS - Derivat
FINANCIAL INSTRUMENTS - Derivatives and Hedging, Narrative (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Total gross notional amount | $ 89,801,000,000 | $ 98,018,000,000 |
Excess cash collateral received | 104,000,000 | 104,000,000 |
Excess cash collateral posted | 998,000,000 | 603,000,000 |
Excess securities collateral received | 37,000,000 | 27,000,000 |
GE | ||
Derivative [Line Items] | ||
Total gross notional amount | 45,041,000,000 | 42,314,000,000 |
GE Capital | ||
Derivative [Line Items] | ||
Total gross notional amount | $ 44,760,000,000 | $ 55,704,000,000 |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Value of Derivatives (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Gross Notional | $ 89,801 | $ 98,018 |
All other assets | ||
Gross derivatives | 2,985 | 2,572 |
Netting and credit adjustments | (704) | (546) |
Cash collateral adjustments | (1,212) | (1,286) |
Net derivatives recognized in statement of financial position | 1,069 | 740 |
Net accrued interest | 118 | 182 |
Securities held as collateral | (720) | (469) |
Net amount | 467 | 452 |
All other liabilities | ||
Gross derivatives | 1,257 | 853 |
Netting and credit adjustments | (710) | (546) |
Cash collateral adjustments | (149) | (105) |
Net derivatives recognized in statement of financial position | 398 | 202 |
Net accrued interest | 15 | 1 |
Securities held as collateral | 0 | 0 |
Net amount | 413 | 203 |
Derivatives accounted for as hedges | ||
Derivative [Line Items] | ||
Gross Notional | 27,247 | 30,961 |
All other assets | ||
Gross derivatives | 2,139 | 1,734 |
All other liabilities | ||
Gross derivatives | 203 | 57 |
Derivatives accounted for as hedges | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Notional | 20,790 | 23,918 |
All other assets | ||
Gross derivatives | 2,081 | 1,636 |
All other liabilities | ||
Gross derivatives | 9 | 11 |
Derivatives accounted for as hedges | Currency exchange contracts | ||
Derivative [Line Items] | ||
Gross Notional | 6,457 | 7,044 |
All other assets | ||
Gross derivatives | 58 | 99 |
All other liabilities | ||
Gross derivatives | 194 | 46 |
Derivatives not accounted for as hedges | ||
Derivative [Line Items] | ||
Gross Notional | 62,554 | 67,056 |
All other assets | ||
Gross derivatives | 846 | 838 |
All other liabilities | ||
Gross derivatives | 1,055 | 796 |
Derivatives not accounted for as hedges | Interest rate contracts | ||
Derivative [Line Items] | ||
Gross Notional | 717 | 3,185 |
All other assets | ||
Gross derivatives | 9 | 18 |
All other liabilities | ||
Gross derivatives | 7 | 12 |
Derivatives not accounted for as hedges | Currency exchange contracts | ||
Derivative [Line Items] | ||
Gross Notional | 60,356 | 62,165 |
All other assets | ||
Gross derivatives | 750 | 697 |
All other liabilities | ||
Gross derivatives | 1,018 | 744 |
Derivatives not accounted for as hedges | Other contracts | ||
Derivative [Line Items] | ||
Gross Notional | 1,482 | 1,706 |
All other assets | ||
Gross derivatives | 87 | 123 |
All other liabilities | ||
Gross derivatives | $ 30 | $ 40 |
FINANCIAL INSTRUMENTS - Fair _2
FINANCIAL INSTRUMENTS - Fair Value Hedges (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Jun. 30, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cumulative amount of fair value hedging adjustments | $ 6,503 | $ 4,221 |
Cumulative amount of fair value hedging on discontinued hedging relationships | 2,342 | 2,568 |
Hedged liability | $ 46,255 | $ 58,344 |
FINANCIAL INSTRUMENTS - Cash Fl
FINANCIAL INSTRUMENTS - Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Gain (loss) recognized in AOCI | $ 53 | $ (49) | $ (260) | $ (2) |
Pre-tax loss included in AOCI related to cash flow hedges of forecasted transactions | 118 | |||
Amount of loss expected to be transferred to earnings as an expense | $ 85 | |||
Maximum term of hedged forecasted transactions | 15 years | 13 years |
FINANCIAL INSTRUMENTS - Net Inv
FINANCIAL INSTRUMENTS - Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative [Line Items] | ||||
Gain (loss) recognized in AOCI on hedging instruments | $ (90) | $ 86 | $ 68 | $ 18 |
Foreign currency debt | ||||
Derivative [Line Items] | ||||
Carrying value designated as net investment hedges | $ 7,743 | $ 12,421 | $ 7,743 | $ 12,421 |
FINANCIAL INSTRUMENTS - Effects
FINANCIAL INSTRUMENTS - Effects of Derivative Financial Instruments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Revenues | $ 17,750,000,000 | $ 23,414,000,000 | $ 38,273,000,000 | $ 45,616,000,000 |
Cost of sales | 15,083,000,000 | 17,412,000,000 | 30,778,000,000 | 33,620,000,000 |
Interest and other financial charges | 997,000,000 | 929,000,000 | 1,791,000,000 | 1,993,000,000 |
SG&A | 3,079,000,000 | 3,425,000,000 | 6,144,000,000 | 6,827,000,000 |
Other income (Note 22) | 2,078,000,000 | 164,000,000 | 8,947,000,000 | 1,012,000,000 |
Fair Value Hedges | ||||
Amount excluded for cash flow hedges | 7,000,000 | 0 | 22,000,000 | 0 |
Revenues | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | 15,000,000 | (15,000,000) | (6,000,000) | 5,000,000 |
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (107,000,000) | (447,000,000) | (652,000,000) | (62,000,000) |
Cost of sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | (13,000,000) | (5,000,000) | (38,000,000) | (14,000,000) |
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 16,000,000 | (31,000,000) | 29,000,000 | (22,000,000) |
Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | (12,000,000) | (9,000,000) | (23,000,000) | (19,000,000) |
Fair Value Hedges | ||||
Hedged items | (122,000,000) | (659,000,000) | (2,601,000,000) | (1,186,000,000) |
Derivatives designated as hedging instruments | 109,000,000 | 646,000,000 | 2,620,000,000 | 1,161,000,000 |
Total effect of fair value hedges | (12,000,000) | (14,000,000) | 19,000,000 | (25,000,000) |
Total effect of derivatives not designated as hedges | (4,000,000) | 13,000,000 | (13,000,000) | 94,000,000 |
SG&A | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | (2,000,000) | 0 | (5,000,000) | (1,000,000) |
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 201,000,000 | (17,000,000) | 95,000,000 | (62,000,000) |
Other Income | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total effect of cash flow hedges | 0 | 0 | 0 | 0 |
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (21,000,000) | (39,000,000) | (32,000,000) | (24,000,000) |
Interest rate contracts | Revenues | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (12,000,000) | (14,000,000) | (35,000,000) | (18,000,000) |
Interest rate contracts | Cost of sales | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Interest rate contracts | Interest Expense | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (4,000,000) | (14,000,000) | (13,000,000) | (29,000,000) |
Interest rate contracts | SG&A | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Interest rate contracts | Other Income | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Currency exchange contracts | Revenues | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (95,000,000) | (433,000,000) | (616,000,000) | (43,000,000) |
Currency exchange contracts | Cost of sales | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 16,000,000 | (31,000,000) | 29,000,000 | (22,000,000) |
Currency exchange contracts | Interest Expense | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Currency exchange contracts | SG&A | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 104,000,000 | (17,000,000) | 159,000,000 | (62,000,000) |
Currency exchange contracts | Other Income | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | (32,000,000) | (27,000,000) | (21,000,000) | (25,000,000) |
Other | Revenues | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Other | Cost of sales | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 0 | 0 | 0 |
Other | Interest Expense | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 0 | 27,000,000 | 0 | 123,000,000 |
Other | SG&A | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | 97,000,000 | 0 | (63,000,000) | 0 |
Other | Other Income | ||||
Fair Value Hedges | ||||
Total effect of derivatives not designated as hedges | $ 11,000,000 | $ (12,000,000) | $ (11,000,000) | $ 1,000,000 |
FINANCIAL INSTRUMENTS - Counter
FINANCIAL INSTRUMENTS - Counterparty Credit Risk (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Net amount | $ 413 | $ 203 |
Counterparty Credit Risk | ||
Derivative [Line Items] | ||
Exposure to counterparties including interest net collateral, excluding embedded derivatives | 317 | 368 |
Net amount | $ 375 | $ 159 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2020USD ($)entity | Dec. 31, 2019USD ($) | |
Variable Interest Entity [Line Items] | ||
Assets | $ 256,487 | $ 266,048 |
Liabilities | 221,233 | 236,187 |
Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,621 | 2,134 |
Liabilities | 1,553 | 1,233 |
Unconsolidated VIEs | ||
Variable Interest Entity [Line Items] | ||
Assets | 2,194 | 1,937 |
Unconsolidated VIEs | EFS | ||
Variable Interest Entity [Line Items] | ||
Assets | 589 | 621 |
Unconsolidated VIEs | Insurance | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 1,222 | $ 896 |
GE Capital | Consolidated VIE | ||
Variable Interest Entity [Line Items] | ||
Number of VIEs | entity | 3 |
COMMITMENTS, GUARANTEES, PROD_2
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Commitments (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2020USD ($)aircraft | Apr. 30, 2020aircraft | |
GE Capital | Investment Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | $ 2,722 | |
GE Capital | Thermal and Wind Energy Projects | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 1,114 | |
GE Capital | Run-off Insurance Operations | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 1,581 | |
GE Capital | Thermal and Wind Energy Projects, Unconsolidated VIE Investment Commitment | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 248 | |
GE Capital | Run-off Insurance Operations, Unconsolidated VIE Investment Commitment | ||
Long-term Purchase Commitment [Line Items] | ||
Commitments | 1,298 | |
GECAS | Aircraft with GE Engines | ||
Long-term Purchase Commitment [Line Items] | ||
Long-term purchase commitments | 27,836 | |
Advances for pre-delivery payments | $ 3,424 | |
Orders remaining | aircraft | 78 | |
GECAS | New Aircraft | ||
Long-term Purchase Commitment [Line Items] | ||
Number of aircrafts for delivery | aircraft | 292 | |
Percentage of aircrafts to be delivered | 14.00% | |
Percentage of aircrafts to be delivered in second year | 22.00% | |
Percentage of aircrafts to be delivered in third year and thereafter | 64.00% | |
GECAS | Used Aircraft | ||
Long-term Purchase Commitment [Line Items] | ||
Long-term purchase commitments | $ 2,292 | |
Number of aircrafts for delivery | aircraft | 53 | |
Percentage of aircrafts to be delivered | 29.00% | |
Percentage of aircrafts to be delivered in second year | 60.00% | |
Percentage of aircrafts to be delivered in third year and thereafter | 11.00% | |
Aviation | ||
Long-term Purchase Commitment [Line Items] | ||
Financial assistance commitment | $ 2,010 |
COMMITMENTS, GUARANTEES, PROD_3
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Product Warranties (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Liability for product warranties | $ 2,036 | $ 2,165 |
COMMITMENTS, GUARANTEES, PROD_4
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES - Alstom Legacy Matters (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020USD ($) | Nov. 30, 2015significant_case | Dec. 31, 2014USD ($) | Jan. 31, 2007EUR (€) | Dec. 31, 2013USD ($) | Dec. 31, 2019USD ($) | Nov. 02, 2015USD ($) | |
Alstom Legacy Matters | |||||||
Loss Contingencies [Line Items] | |||||||
Number of significant cases involving anti-competitive activities and improper payments | significant_case | 2 | ||||||
Damages sought | € | € 65 | ||||||
Reduced fine | € | € 59 | ||||||
Amount paid | $ 772 | ||||||
Reserve established for legal and compliance matters | $ 856 | $ 875 | $ 858 | ||||
Siemens AG | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought | $ 950 | ||||||
Amount paid | $ 47 | ||||||
ABB Ltd. | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought | $ 600 |
INTERCOMPANY TRANSACTIONS (Deta
INTERCOMPANY TRANSACTIONS (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Related Party Transaction [Line Items] | ||
Consolidated cash from (used for) operating activities - continuing operations | $ (1,319) | $ 1,528 |
Consolidated cash from (used for) investing activities - continuing operations | 18,509 | 2,266 |
Consolidated cash from (used for) financing activities - continuing operations | (11,999) | (6,092) |
GE and GE Capital totals | ||
Related Party Transaction [Line Items] | ||
Consolidated cash from (used for) operating activities - continuing operations | (2,298) | 211 |
Consolidated cash from (used for) investing activities - continuing operations | 27,207 | 3,495 |
Consolidated cash from (used for) financing activities - continuing operations | (19,717) | (6,004) |
GE and GE Capital totals | Affiliated Entity | Capital contribution from GE to GE Capital | ||
Related Party Transaction [Line Items] | ||
Consolidated cash from (used for) investing activities - continuing operations | 0 | 1,500 |
Consolidated cash from (used for) financing activities - continuing operations | 0 | (1,500) |
GE and GE Capital totals | Affiliated Entity | GE current receivables sold to GE Capital | ||
Related Party Transaction [Line Items] | ||
Consolidated cash from (used for) operating activities - continuing operations | (452) | 560 |
Consolidated cash from (used for) investing activities - continuing operations | 270 | (1,297) |
Consolidated cash from (used for) financing activities - continuing operations | 183 | 737 |
Volume of current receivables sold to related party | 7,494 | 7,165 |
Collections on current receivables sold to related party | 7,042 | 7,725 |
GE and GE Capital totals | Affiliated Entity | GE long-term receivables sold to GE Capital | ||
Related Party Transaction [Line Items] | ||
Consolidated cash from (used for) operating activities - continuing operations | 177 | 269 |
Consolidated cash from (used for) investing activities - continuing operations | (177) | (269) |
GE and GE Capital totals | Affiliated Entity | Supply chain finance programs | ||
Related Party Transaction [Line Items] | ||
Consolidated cash from (used for) operating activities - continuing operations | 1,457 | 473 |
Consolidated cash from (used for) investing activities - continuing operations | (1,457) | (473) |
GE and GE Capital totals | Affiliated Entity | GE Capital long-term loans to GE | ||
Related Party Transaction [Line Items] | ||
Consolidated cash from (used for) investing activities - continuing operations | (7,500) | 0 |
Consolidated cash from (used for) financing activities - continuing operations | 7,500 | 0 |
Other reclassifications and eliminations | ||
Related Party Transaction [Line Items] | ||
Consolidated cash from (used for) operating activities - continuing operations | (202) | 14 |
Consolidated cash from (used for) investing activities - continuing operations | 167 | (689) |
Consolidated cash from (used for) financing activities - continuing operations | $ 36 | $ 674 |
BAKER HUGHES SUMMARIZED FINAN_3
BAKER HUGHES SUMMARIZED FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Pre-tax unrealized gain (loss) | $ 1,929 | $ (51) | $ (3,843) | $ (42) |
Revenues | 17,750 | 23,414 | 38,273 | 45,616 |
Net income (loss) | (2,132) | 104 | 4,101 | 3,749 |
Net income (loss) attributable to the entity | (1,987) | $ 127 | 4,212 | $ 3,716 |
Baker Hughes | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | 4,736 | 10,160 | ||
Gross profit | 678 | 1,433 | ||
Net income (loss) | (355) | (16,453) | ||
Net income (loss) attributable to the entity | $ (201) | $ (10,411) | ||
Baker Hughes | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Remaining interest (in shares) | 377.4 | 377.4 | ||
Fair value of investment | $ 5,910 | $ 5,910 | ||
Pre-tax unrealized gain (loss) | 1,846 | (3,865) | ||
After-tax change in unrealized gain (loss) | $ 1,552 | $ (3,080) | ||
Share price (in dollars per share) | $ 15.39 | $ 15.39 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total | $ 2,078 | $ 164 | $ 8,947 | $ 1,012 |
Pre-tax unrealized gain (loss) | 1,929 | (51) | (3,843) | (42) |
BioPharma | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pretax gain on sale | 12,341 | |||
ServiceMax | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pretax gain on sale | 223 | |||
GE | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Purchases and sales of business interests | 52 | (39) | 12,424 | 214 |
Sales | 31 | 80 | 73 | 120 |
Associated companies | 31 | 82 | 69 | 121 |
Net interest and investment income | 1,955 | 23 | (3,677) | 160 |
Other items | 48 | 26 | 101 | 410 |
Total | 2,116 | 172 | 8,990 | 1,024 |
Eliminations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Total | (38) | $ (8) | (43) | $ (13) |
Baker Hughes | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pre-tax unrealized gain (loss) | $ 1,846 | $ (3,865) |