Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
Dollars in millions; per-share amounts in dollars, diluted | 2021 | 2020 | Year on Year | 2021 | 2020 | Year on Year | |||||||||||||||||
GAAP Metrics | |||||||||||||||||||||||
Cash from Operating Activities (CFOA) | $2,415 | $2,901 | (17) | % | $888 | $1,025 | (13) | % | |||||||||||||||
Continuing EPS | (3.24) | 2.05 | U | (3.25) | 5.46 | U | |||||||||||||||||
Net EPS | (3.55) | 2.20 | U | (6.16) | 4.63 | U | |||||||||||||||||
Total Revenues | 20,303 | 21,033 | (3) | % | 74,196 | 75,833 | (2) | % | |||||||||||||||
Profit Margin | (17.1) | % | 12.3 | % | (2,940) bps | (5.0) | % | 7.9 | % | (1,290) bps | |||||||||||||
Non-GAAP Metrics | |||||||||||||||||||||||
Free Cash Flow (FCF)-a) | $3,708 | $4,392 | (16) | % | $1,889 | $635 | F | ||||||||||||||||
Adjusted EPS-b) | 0.82 | 0.49 | 67 | % | 1.71 | (0.07) | F | ||||||||||||||||
Organic Revenues | 19,586 | 20,216 | (3) | % | 70,125 | 71,589 | (2) | % | |||||||||||||||
Adjusted Profit-c) | 1,575 | 1,232 | 28 | % | 4,608 | 2,246 | F | ||||||||||||||||
Adjusted Profit Margin-c) | 8.1 | % | 6.1 | % | 200 bps | 6.5 | % | 3.1 | % | 340 bps |
Investor Outlook March 10, 2021 | 2Q Earnings July 27, 2021 | 3Q Earnings October 26, 2021 | 2021 Actuals January 25, 2022 | |||||||||||
GE Industrial organic revenue* | Low single-digit growth | Low single-digit growth | ~Flat | (2)% | ||||||||||
Adj. GE Industrial profit margin* | 250+ bps expansion | 250+ bps expansion | 350+ bps expansion | 390 bps expansion | ||||||||||
Adj. earnings per share* | $1.20–$2.00-a) | $1.20–$2.00-a) | $1.80–$2.10 | $2.12 | ||||||||||
GE Industrial free cash flow* | $2.5–$4.5 billion | $3.5–5.0 billion | $3.75–$4.75 billion | $5.1 billion-b) |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | Year on Year | 2021 | 2020 | Year on Year | |||||||||||||||||
Orders | $7,705 | $6,331 | 22 | % | $25,589 | $21,590 | 19 | % | |||||||||||||||
Revenues | 6,080 | 5,847 | 4 | % | 21,310 | 22,042 | (3) | % | |||||||||||||||
Segment Profit/(Loss) | 1,218 | 564 | F | 2,882 | 1,229 | F | |||||||||||||||||
Segment Profit/(Loss) Margin | 20.0 | % | 9.6 | % | 1,040 bps | 13.5 | % | 5.6 | % | 790 bps |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | Year on Year | 2021 | 2020 | Year on Year | |||||||||||||||||
Orders | $5,303 | $4,983 | 6 | % | $19,596 | $18,645 | 5 | % | |||||||||||||||
Revenues | 4,625 | 4,823 | (4) | % | 17,725 | 18,009 | (2) | % | |||||||||||||||
Segment Profit/(Loss) | 762 | 949 | (20) | % | 2,966 | 3,060 | (3) | % | |||||||||||||||
Segment Profit/(Loss) Margin | 16.5 | % | 19.7 | % | (320) bps | 16.7 | % | 17.0 | % | (30) bps |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | Year on Year | 2021 | 2020 | Year on Year | |||||||||||||||||
Orders | $4,851 | $6,292 | (23) | % | $18,163 | $16,328 | 11 | % | |||||||||||||||
Revenues | 4,192 | 4,442 | (6) | % | 15,697 | 15,666 | — | % | |||||||||||||||
Segment Profit/(Loss) | (312) | (87) | U | (795) | (715) | (11) | % | ||||||||||||||||
Segment Profit/(Loss) Margin | (7.4) | % | (2.0) | % | (540) bps | (5.1) | % | (4.6) | % | (50) bps |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | Year on Year | 2021 | 2020 | Year on Year | |||||||||||||||||
Orders | $4,306 | $5,616 | (23) | % | $16,412 | $15,986 | 3 | % | |||||||||||||||
Revenues | 4,661 | 5,383 | (13) | % | 16,903 | 17,589 | (4) | % | |||||||||||||||
Segment Profit/(Loss) | 309 | 306 | 1 | % | 726 | 274 | F | ||||||||||||||||
Segment Profit/(Loss) Margin | 6.6 | % | 5.7 | % | 90 bps | 4.3 | % | 1.6 | % | 270 bps |
GENERAL ELECTRIC COMPANY | |||||||||||||||||||||||||||||||||||
CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED) | |||||||||||||||||||||||||||||||||||
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||||||||||||||
2021 | 2020 | V% | 2021 | 2020 | V% | ||||||||||||||||||||||||||||||
Sales of equipment and services | $ | 19,492 | $ | 20,264 | (4) | % | $ | 71,090 | $ | 72,969 | (3) | % | |||||||||||||||||||||||
Insurance revenues | 811 | 769 | 3,106 | 2,865 | |||||||||||||||||||||||||||||||
Total revenues | 20,303 | 21,033 | (3) | % | 74,196 | 75,833 | (2) | % | |||||||||||||||||||||||||||
Cost of sales | 14,338 | 15,770 | 53,896 | 57,871 | |||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 3,202 | 3,248 | 11,707 | 12,592 | |||||||||||||||||||||||||||||||
Research and development | 705 | 635 | 2,497 | 2,565 | |||||||||||||||||||||||||||||||
Interest and other financial charges | 426 | 421 | 1,876 | 2,068 | |||||||||||||||||||||||||||||||
Debt extinguishment costs | 5,108 | 95 | 6,524 | 301 | |||||||||||||||||||||||||||||||
Insurance liabilities and annuity benefits | 603 | 573 | 2,283 | 2,397 | |||||||||||||||||||||||||||||||
Goodwill impairments | — | — | — | 877 | |||||||||||||||||||||||||||||||
Non-operating benefit costs | 408 | 610 | 1,782 | 2,430 | |||||||||||||||||||||||||||||||
Other costs and expenses | 45 | 45 | 136 | 159 | |||||||||||||||||||||||||||||||
Total costs and expenses | 24,836 | 21,396 | 16 | % | 80,702 | 81,259 | (1) | % | |||||||||||||||||||||||||||
Other income | 1,066 | 2,944 | 2,823 | 11,396 | |||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes | (3,467) | 2,580 | U | (3,683) | 5,970 | U | |||||||||||||||||||||||||||||
Benefit (provision) for income taxes | (37) | (102) | 286 | 487 | |||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | (3,504) | 2,479 | U | (3,396) | 6,457 | U | |||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of taxes | (339) | 161 | (3,195) | (911) | |||||||||||||||||||||||||||||||
Net earnings (loss) | (3,843) | 2,640 | U | (6,591) | 5,546 | U | |||||||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests | 1 | 3 | (71) | (158) | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to the Company | (3,843) | 2,636 | U | (6,520) | 5,704 | U | |||||||||||||||||||||||||||||
Preferred stock dividends | (56) | (194) | (237) | (474) | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | (3,900) | $ | 2,442 | U | $ | (6,757) | $ | 5,230 | U | |||||||||||||||||||||||||
Amounts attributable to GE common shareholders: | |||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | (3,504) | $ | 2,479 | U | $ | (3,396) | $ | 6,457 | U | |||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | 1 | 1 | (71) | (158) | |||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to the Company | (3,504) | 2,478 | U | (3,325) | 6,615 | U | |||||||||||||||||||||||||||||
Preferred stock dividends | (56) | (194) | (237) | (474) | |||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to GE common shareholders | (3,561) | 2,284 | U | (3,562) | 6,141 | U | |||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations attributable to GE common shareholders | (339) | 159 | (3,195) | (911) | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | (3,900) | $ | 2,442 | U | $ | (6,757) | $ | 5,230 | U | |||||||||||||||||||||||||
Per-share amounts - earnings (loss) from continuing operations | |||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | (3.24) | $ | 2.05 | U | $ | (3.25) | $ | 5.46 | U | |||||||||||||||||||||||||
Basic earnings (loss) per share | $ | (3.24) | $ | 2.07 | U | $ | (3.25) | $ | 5.46 | U | |||||||||||||||||||||||||
Per-share amounts - net earnings (loss) | |||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | (3.55) | $ | 2.20 | U | $ | (6.16) | $ | 4.63 | U | |||||||||||||||||||||||||
Basic earnings (loss) per share | $ | (3.55) | $ | 2.22 | U | $ | (6.16) | $ | 4.63 | U | |||||||||||||||||||||||||
Total average equivalent shares | |||||||||||||||||||||||||||||||||||
Diluted | 1,099 | 1,097 | — | % | 1,098 | 1,095 | — | % | |||||||||||||||||||||||||||
Basic | 1,099 | 1,095 | — | % | 1,098 | 1,094 | — | % | |||||||||||||||||||||||||||
GENERAL ELECTRIC COMPANY | |||||||||||||||||||||||||||||||||||
SUMMARY OF REPORTABLE SEGMENTS (UNAUDITED) | |||||||||||||||||||||||||||||||||||
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||||||||||||||
Aviation | $ | 6,080 | $ | 5,847 | 4 | % | $ | 21,310 | $ | 22,042 | (3) | % | |||||||||||||||||||||||
Healthcare | 4,625 | 4,823 | (4) | % | 17,725 | 18,009 | (2) | % | |||||||||||||||||||||||||||
Renewable Energy | 4,192 | 4,442 | (6) | % | 15,697 | 15,666 | — | % | |||||||||||||||||||||||||||
Power | 4,661 | 5,383 | (13) | % | 16,903 | 17,589 | (4) | % | |||||||||||||||||||||||||||
Total segment revenues(a) | 19,558 | 20,495 | (5) | % | 71,635 | 73,306 | (2) | % | |||||||||||||||||||||||||||
Corporate | 745 | 538 | 38 | % | 2,561 | 2,528 | 1 | % | |||||||||||||||||||||||||||
Total revenues | $ | 20,303 | $ | 21,033 | (3) | % | $ | 74,196 | $ | 75,833 | (2) | % | |||||||||||||||||||||||
Aviation | $ | 1,218 | $ | 564 | F | $ | 2,882 | $ | 1,229 | F | |||||||||||||||||||||||||
Healthcare | 762 | 949 | (20) | % | 2,966 | 3,060 | (3) | % | |||||||||||||||||||||||||||
Renewable Energy | (312) | (87) | U | (795) | (715) | (11) | % | ||||||||||||||||||||||||||||
Power | 309 | 306 | 1 | % | 726 | 274 | F | ||||||||||||||||||||||||||||
Total segment profit (loss)(a) | 1,979 | 1,732 | 14 | % | 5,778 | 3,848 | 50 | % | |||||||||||||||||||||||||||
Corporate(b) | 531 | 2,030 | (74) | % | 892 | 8,061 | (89) | % | |||||||||||||||||||||||||||
Goodwill impairments | — | — | — | % | — | (877) | F | ||||||||||||||||||||||||||||
Interest and other financial charges | (410) | (411) | — | % | (1,813) | (2,018) | 10 | % | |||||||||||||||||||||||||||
Debt extinguishment costs | (5,108) | (95) | U | (6,524) | (301) | U | |||||||||||||||||||||||||||||
Non-operating benefit costs | (408) | (610) | 33 | % | (1,782) | (2,430) | 27 | % | |||||||||||||||||||||||||||
Benefit (provision) for income taxes | (88) | (168) | 48 | % | 124 | 333 | (63) | % | |||||||||||||||||||||||||||
Preferred stock dividends | (56) | (194) | 71 | % | (237) | (474) | 50 | % | |||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to GE common shareholders | (3,561) | 2,284 | U | (3,562) | 6,141 | U | |||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations attributable to GE common shareholders | (339) | 159 | U | (3,195) | (911) | U | |||||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | (3,900) | $ | 2,442 | U | $ | (6,757) | $ | 5,230 | U |
GENERAL ELECTRIC COMPANY STATEMENT OF FINANCIAL POSITION (UNAUDITED) | ||||||||||||||
December 31 (Dollars in millions) | 2021 | 2020 | ||||||||||||
Cash, cash equivalents and restricted cash(a)(b) | $ | 15,770 | $ | 36,530 | ||||||||||
Investment securities | 12,297 | 7,319 | ||||||||||||
Current receivables | 15,620 | 16,691 | ||||||||||||
Inventories, including deferred inventory costs | 15,847 | 15,890 | ||||||||||||
Current contract assets | 4,881 | 5,764 | ||||||||||||
All other current assets | 1,933 | 2,659 | ||||||||||||
Current assets | 66,348 | 84,853 | ||||||||||||
Investment securities | 42,209 | 42,549 | ||||||||||||
Property, plant and equipment – net | 15,609 | 16,699 | ||||||||||||
Goodwill | 26,182 | 25,524 | ||||||||||||
Other intangible assets – net | 9,330 | 9,671 | ||||||||||||
Contract and other deferred assets | 6,124 | 5,888 | ||||||||||||
All other assets | 19,040 | 16,025 | ||||||||||||
Deferred income taxes | 10,855 | 14,253 | ||||||||||||
Assets of discontinued operations | 3,177 | 40,749 | ||||||||||||
Total assets | $ | 198,874 | $ | 256,211 | ||||||||||
Short-term borrowings | $ | 4,361 | $ | 4,713 | ||||||||||
Accounts payable and equipment project accruals | 16,243 | 16,458 | ||||||||||||
Progress collections and deferred income | 17,372 | 18,371 | ||||||||||||
All other current liabilities | 13,977 | 15,071 | ||||||||||||
Current liabilities | 51,953 | 54,613 | ||||||||||||
Deferred income | 1,989 | 1,801 | ||||||||||||
Long-term borrowings | 30,824 | 70,189 | ||||||||||||
Insurance liabilities and annuity benefits | 37,166 | 42,191 | ||||||||||||
Non-current compensation and benefits | 21,202 | 29,677 | ||||||||||||
All other liabilities | 13,240 | 14,781 | ||||||||||||
Liabilities of discontinued operations | 887 | 5,886 | ||||||||||||
GE shareholders’ equity | 40,310 | 35,552 | ||||||||||||
Noncontrolling interests | 1,302 | 1,522 | ||||||||||||
Total liabilities and equity | $ | 198,874 | $ | 256,211 |
GE INDUSTRIAL ORGANIC REVENUES (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||
GE Industrial revenues (GAAP) | $ | 19,499 | $ | 20,271 | (4) | % | $ | 71,136 | $ | 73,100 | (3) | % | |||||||||||
Less: acquisitions | — | (6) | 19 | (67) | |||||||||||||||||||
Less: business dispositions | (33) | 54 | (33) | 1,447 | |||||||||||||||||||
Less: foreign currency effect | (78) | — | 964 | — | |||||||||||||||||||
GE Industrial organic revenues (Non-GAAP) | $ | 19,610 | $ | 20,223 | (3) | % | $ | 70,186 | $ | 71,720 | (2) | % | |||||||||||
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, as these activities can obscure underlying trends. |
ADJUSTED GE INDUSTRIAL PROFIT AND PROFIT MARGIN | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||||||||||||||
(EXCLUDING CERTAIN ITEMS) (NON-GAAP) (Dollars in millions) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||||||||||||||
GE Industrial revenues (GAAP) | $ | 19,499 | $ | 20,271 | (4) | % | $ | 71,136 | $ | 73,100 | (3) | % | |||||||||||||||||||||||
GE Industrial costs and expenses (GAAP) | $ | 19,770 | $ | 20,310 | (3) | % | $ | 72,118 | $ | 77,252 | (7) | % | |||||||||||||||||||||||
Less: interest and other financial charges | 148 | 254 | 901 | 1,270 | |||||||||||||||||||||||||||||||
Less: debt extinguishment costs | 1,076 | — | 1,721 | 63 | |||||||||||||||||||||||||||||||
Less: non-operating benefit costs | 409 | 609 | 1,785 | 2,424 | |||||||||||||||||||||||||||||||
Less: restructuring & other | (14) | 157 | 387 | 693 | |||||||||||||||||||||||||||||||
Less: Steam asset impairment | — | — | — | 363 | |||||||||||||||||||||||||||||||
Less: SEC settlement charge | — | — | — | 100 | |||||||||||||||||||||||||||||||
Less: goodwill impairments | — | — | — | 728 | |||||||||||||||||||||||||||||||
Add: noncontrolling interests | 6 | — | 28 | (161) | |||||||||||||||||||||||||||||||
GE Industrial adjusted costs (Non-GAAP) | $ | 18,157 | $ | 19,289 | (6) | % | $ | 67,351 | $ | 71,450 | (6) | % | |||||||||||||||||||||||
GE Industrial Other income (GAAP) | 477 | 2,964 | (84) | % | 2,237 | 11,444 | (80) | % | |||||||||||||||||||||||||||
Less: gains (losses) on equity securities | (46) | 2,636 | 1,209 | (1,891) | |||||||||||||||||||||||||||||||
Less: restructuring & other | — | — | 7 | 13 | |||||||||||||||||||||||||||||||
Less: gains (losses) on purchases and sales of business interests | 115 | 21 | (44) | 12,452 | |||||||||||||||||||||||||||||||
GE Industrial adjusted other income (Non-GAAP) | $ | 409 | $ | 307 | 33 | % | $ | 1,064 | $ | 871 | 22 | % | |||||||||||||||||||||||
GE Industrial profit (loss) (GAAP) | $ | 206 | $ | 2,925 | (93) | % | $ | 1,255 | $ | 7,291 | (83) | % | |||||||||||||||||||||||
GE Industrial profit (loss) margin (GAAP) | 1.1 | % | 14.4 | % | (1,330)bps | 1.8 | % | 10.0 | % | (820)bps | |||||||||||||||||||||||||
GE Industrial adjusted profit (loss) (Non-GAAP) | $ | 1,751 | $ | 1,289 | 36 | % | $ | 4,849 | $ | 2,520 | 92 | % | |||||||||||||||||||||||
GE Industrial adjusted profit (loss) margin (Non-GAAP) | 9.0 | % | 6.4 | % | 260bps | 6.8 | % | 3.4 | % | 340bps | |||||||||||||||||||||||||
We believe that adjusting industrial profit to exclude the effects of items that are not closely associated with ongoing operations provides management and investors with a meaningful measure that increases the period-to-period comparability. Gains (losses) and restructuring and other items are impacted by the timing and magnitude of gains associated with dispositions, and the timing and magnitude of costs associated with restructuring and other activities. |
GE INDUSTRIAL ADJUSTED ORGANIC PROFIT (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||
GE Industrial adjusted profit (loss) (Non-GAAP) | $ | 1,751 | $ | 1,289 | 36 | % | $ | 4,849 | $ | 2,520 | 92 | % | |||||||||||
Less: acquisitions | (24) | (6) | (29) | 15 | |||||||||||||||||||
Less: business dispositions | (2) | 12 | (2) | 367 | |||||||||||||||||||
Less: foreign currency effect | (13) | — | 16 | — | |||||||||||||||||||
GE Industrial adjusted organic profit (loss) (Non-GAAP) | $ | 1,791 | $ | 1,283 | 40 | % | $ | 4,865 | $ | 2,138 | F | ||||||||||||
GE Industrial adjusted profit (loss) margin (Non-GAAP) | 9.0 | % | 6.4 | % | 260bps | 6.8 | % | 3.4 | % | 340bps | |||||||||||||
GE Industrial adjusted organic profit (loss) margin (Non-GAAP) | 9.1 | % | 6.3 | % | 280bps | 6.9 | % | 3.0 | % | 390bps |
ADJUSTED EARNINGS (LOSS) (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||
Consolidated earnings (loss) from continuing operations (GAAP) | $ | (3,561) | $ | 2,251 | U | $ | (3,571) | $ | 5,975 | U | |||||||||||||
Less: GE Capital earnings (loss) from continuing operations (GAAP) | (3,543) | (232) | (4,431) | (924) | |||||||||||||||||||
GE Industrial earnings (loss) (Non-GAAP) | $ | (17) | $ | 2,483 | U | $ | 859 | $ | 6,899 | (88) | % | ||||||||||||
Non-operating benefits costs (pre-tax) (GAAP) | $ | (409) | $ | (609) | $ | (1,785) | $ | (2,424) | |||||||||||||||
Tax effect on non-operating benefit costs | 86 | 128 | 375 | 509 | |||||||||||||||||||
Less: non-operating benefit costs (net of tax) | (323) | (481) | (1,410) | (1,915) | |||||||||||||||||||
Gains (losses) on purchases and sales of business interests (pre-tax) | 115 | 21 | (44) | 12,452 | |||||||||||||||||||
Tax effect on gains (losses) on purchases and sales of business interests | (24) | (4) | 6 | (1,257) | |||||||||||||||||||
Less: gains (losses) on purchases and sales of business interests (net of tax) | 91 | 17 | (37) | 11,195 | |||||||||||||||||||
Gains (losses) on equity securities (pre-tax) | (46) | 2,636 | 1,209 | (1,891) | |||||||||||||||||||
Tax effect on gains (losses) on equity securities(a) | (27) | (297) | 128 | 637 | |||||||||||||||||||
Less: gains (losses) on equity securities (net of tax) | (73) | 2,338 | 1,338 | (1,255) | |||||||||||||||||||
Restructuring & other (pre-tax) | 14 | (157) | (380) | (680) | |||||||||||||||||||
Tax effect on restructuring & other | (1) | 33 | 35 | 151 | |||||||||||||||||||
Less: restructuring & other (net of tax) | 14 | (124) | (346) | (529) | |||||||||||||||||||
Debt extinguishment costs (pre-tax) | (1,076) | — | (1,721) | (63) | |||||||||||||||||||
Tax effect on debt extinguishment costs(b) | 242 | — | 377 | 13 | |||||||||||||||||||
Less: debt extinguishment costs (net of tax) | (834) | — | (1,344) | (50) | |||||||||||||||||||
Steam asset impairments (pre-tax) | — | — | — | (363) | |||||||||||||||||||
Tax effect on Steam asset impairments | — | — | — | 37 | |||||||||||||||||||
Less: Steam asset impairments (net of tax) | — | — | — | (326) | |||||||||||||||||||
Goodwill impairments (pre-tax) | — | — | — | (728) | |||||||||||||||||||
Tax effect on goodwill impairments | — | — | — | (23) | |||||||||||||||||||
Less: goodwill impairments (net of tax) | — | — | — | (751) | |||||||||||||||||||
Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) | — | (10) | (9) | (151) | |||||||||||||||||||
Less: SEC settlement charge (pre-tax and net of tax) | — | — | — | (100) | |||||||||||||||||||
Less: U.S. tax reform enactment adjustment | — | — | — | (51) | |||||||||||||||||||
Adjusted GE Industrial earnings (loss) (Non-GAAP) | $ | 1,109 | $ | 742 | 49 | % | $ | 2,668 | $ | 832 | F | ||||||||||||
GE Capital earnings (loss) from continuing operations (GAAP) | (3,543) | (232) | U | (4,431) | (924) | U | |||||||||||||||||
Gains (losses) on equity securities (pre-tax) | 711 | — | 711 | — | |||||||||||||||||||
Tax effect on gains (losses) on equity securities(a) | — | — | — | — | |||||||||||||||||||
Less: gains (losses) on equity securities (net of tax) | 711 | — | 711 | — | |||||||||||||||||||
Debt extinguishment costs (pre-tax) | (4,032) | (95) | (4,803) | (238) | |||||||||||||||||||
Tax effect on debt extinguishment costs(b) | (110) | 20 | 53 | 44 | |||||||||||||||||||
Less: debt extinguishment costs (net of tax) | (4,141) | (75) | (4,750) | (194) | |||||||||||||||||||
Less: SEC settlement charge (pre-tax and net of tax) | — | (100) | — | (100) | |||||||||||||||||||
Less: U.S. tax reform enactment adjustment | — | — | 8 | 2 | |||||||||||||||||||
Less: Tax benefit related to BioPharma sale | — | 47 | — | 143 | |||||||||||||||||||
Less: Tax loss related to GECAS transaction | (11) | — | (54) | — | |||||||||||||||||||
Adjusted GE Capital earnings (loss) (Non-GAAP) | $ | (103) | $ | (104) | 1 | % | $ | (346) | $ | (775) | 55 | % | |||||||||||
Adjusted earnings (loss) (Non-GAAP) | $ | 1,006 | $ | 638 | 58 | % | $ | 2,322 | $ | 57 | F | ||||||||||||
(a) Includes tax benefits available to offset the tax on gains in equity securities. | |||||||||||||||||||||||
(b) Includes related tax valuation allowances. |
ADJUSTED EARNINGS (LOSS) PER SHARE (EPS) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(NON-GAAP) (In dollars) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||
Consolidated earnings (loss) from continuing operations (GAAP) | $ | (3.24) | $ | 2.05 | U | $ | (3.25) | $ | 5.46 | U | |||||||||||||
Less: GE Capital earnings (loss) from continuing operations (GAAP) | (3.23) | (0.21) | (4.04) | (0.84) | |||||||||||||||||||
GE Industrial earnings (loss) (Non-GAAP) | $ | (0.02) | $ | 2.26 | U | $ | 0.78 | $ | 6.30 | (88) | % | ||||||||||||
Non-operating benefits costs (pre-tax) (GAAP) | $ | (0.37) | $ | (0.55) | $ | (1.63) | $ | (2.21) | |||||||||||||||
Tax effect on non-operating benefit costs | 0.08 | 0.12 | 0.34 | 0.46 | |||||||||||||||||||
Less: non-operating benefit costs (net of tax) | (0.29) | (0.44) | (1.29) | (1.75) | |||||||||||||||||||
Gains (losses) on purchases and sales of business interests (pre-tax) | 0.10 | 0.02 | (0.04) | 11.37 | |||||||||||||||||||
Tax effect on gains (losses) on purchases and sales of business interests | (0.02) | — | 0.01 | (1.15) | |||||||||||||||||||
Less: gains (losses) on purchases and sales of business interests (net of tax) | 0.08 | 0.02 | (0.03) | 10.22 | |||||||||||||||||||
Gains (losses) on equity securities (pre-tax) | (0.04) | 2.40 | 1.10 | (1.73) | |||||||||||||||||||
Tax effect on gains (losses) on equity securities(a) | (0.02) | (0.27) | 0.12 | 0.58 | |||||||||||||||||||
Less: gains (losses) on equity securities (net of tax) | (0.07) | 2.13 | 1.22 | (1.15) | |||||||||||||||||||
Restructuring & other (pre-tax) | 0.01 | (0.14) | (0.35) | (0.62) | |||||||||||||||||||
Tax effect on restructuring & other | — | 0.03 | 0.03 | 0.14 | |||||||||||||||||||
Less: restructuring & other (net of tax) | 0.01 | (0.11) | (0.31) | (0.48) | |||||||||||||||||||
Debt extinguishment costs (pre-tax) | (0.98) | — | (1.57) | (0.06) | |||||||||||||||||||
Tax effect on debt extinguishment costs(b) | 0.22 | — | 0.34 | 0.01 | |||||||||||||||||||
Less: debt extinguishment costs (net of tax) | (0.76) | — | (1.22) | (0.05) | |||||||||||||||||||
Steam asset impairments (pre-tax) | — | — | — | (0.33) | |||||||||||||||||||
Tax effect on Steam asset impairments | — | — | — | 0.03 | |||||||||||||||||||
Less: Steam asset impairments (net of tax) | — | — | — | (0.30) | |||||||||||||||||||
Goodwill impairments (pre-tax) | — | — | — | (0.66) | |||||||||||||||||||
Tax effect on goodwill impairments | — | — | — | (0.02) | |||||||||||||||||||
Less: goodwill impairments (net of tax) | — | — | — | (0.69) | |||||||||||||||||||
Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) | — | (0.01) | (0.01) | (0.14) | |||||||||||||||||||
Less: SEC settlement charge (pre-tax and net of tax) | — | — | — | (0.09) | |||||||||||||||||||
Less: U.S. tax reform enactment adjustment | — | — | — | (0.05) | |||||||||||||||||||
Adjusted GE Industrial earnings (loss) (Non-GAAP) | $ | 1.01 | $ | 0.68 | 49 | % | $ | 2.43 | $ | 0.76 | F | ||||||||||||
GE Capital earnings (loss) from continuing operations (GAAP) | (3.23) | (0.21) | U | (4.04) | (0.84) | U | |||||||||||||||||
Gains (losses) on equity securities (pre-tax) | 0.65 | — | 0.65 | — | |||||||||||||||||||
Tax effect on gains (losses) on equity securities(a) | — | — | — | — | |||||||||||||||||||
Less: gains (losses) on equity securities (net of tax) | 0.65 | — | 0.65 | — | |||||||||||||||||||
Debt extinguishment costs (pre-tax) | (3.67) | (0.09) | (4.38) | (0.22) | |||||||||||||||||||
Tax effect on debt extinguishment costs(b) | (0.10) | 0.02 | 0.05 | 0.04 | |||||||||||||||||||
Less: debt extinguishment costs (net of tax) | (3.77) | (0.07) | (4.33) | (0.18) | |||||||||||||||||||
Less: SEC settlement charge (pre-tax and net of tax) | — | (0.09) | — | (0.09) | |||||||||||||||||||
Less: U.S. tax reform enactment adjustment | — | — | 0.01 | — | |||||||||||||||||||
Less: Tax benefit related to BioPharma sale | — | 0.04 | — | 0.13 | |||||||||||||||||||
Less: Tax loss related to GECAS transaction | (0.01) | — | (0.05) | — | |||||||||||||||||||
Adjusted GE Capital earnings (loss) (Non-GAAP) | $ | (0.09) | $ | (0.09) | — | % | $ | (0.31) | $ | (0.71) | 56 | % | |||||||||||
Adjusted earnings (loss) (Non-GAAP) | $ | 0.92 | $ | 0.58 | 59 | % | $ | 2.12 | $ | 0.05 | F | ||||||||||||
(a) Includes tax benefits available to offset the tax on gains in equity securities. | |||||||||||||||||||||||
(b) Includes related tax valuation allowances. |
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total. | |||||||||||||||||||||||
The service cost of our pension and other benefit plans are included in adjusted earnings (loss)*, which represents the ongoing cost of providing pension benefits to our employees. The components of non-operating benefit costs are mainly driven by capital allocation decisions and market performance, and we manage these separately from the operational performance of our businesses. Gains (losses) and restructuring and other items are impacted by the timing and magnitude of gains associated with dispositions, and the timing and magnitude of costs associated with restructuring and other activities. We believe that the retained costs in Adjusted earnings (loss)* provides management and investors a useful measure to evaluate the performance of the total company, and increases period-to-period comparability. We believe that presenting Adjusted Industrial earnings (loss)* separately for our financial services businesses also provides management and investors with useful information about the relative size of our industrial and financial services businesses in relation to the total company. |
GE INDUSTRIAL FREE CASH FLOWS (FCF) (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | V$ | 2021 | 2020 | V$ | |||||||||||||||||
GE Industrial CFOA (GAAP) | $ | 2,362 | $ | 1,921 | $ | 441 | $ | 1,530 | $ | (1,254) | $ | 2,784 | |||||||||||
Add: gross additions to property, plant and equipment | (354) | (276) | (78) | (1,250) | (1,579) | 329 | |||||||||||||||||
Add: gross additions to internal-use software | (31) | (23) | (9) | (107) | (143) | 36 | |||||||||||||||||
Less: GE Pension Plan funding | — | (2,500) | 2,500 | — | (2,500) | 2,500 | |||||||||||||||||
Less: CFOA impact from factoring programs discontinued in 2021 | (2,041) | — | (2,041) | (5,108) | — | (5,108) | |||||||||||||||||
Less: taxes related to business sales | 195 | (245) | 440 | 189 | (1,082) | 1,271 | |||||||||||||||||
GE Industrial free cash flows (Non-GAAP) | $ | 3,822 | $ | 4,367 | $ | (545) | $ | 5,092 | $ | 606 | $ | 4,487 | |||||||||||
Less: prior period CFOA impact from factoring programs discontinued in 2021(a) | — | (1,377) | 1,377 | (739) | (3,361) | 2,622 | |||||||||||||||||
GE Industrial free cash flows excluding discontinued factoring (Non-GAAP) | $ | 3,822 | $ | 5,744 | $ | (1,922) | $ | 5,831 | $ | 3,967 | $ | 1,864 | |||||||||||
(a) Represents the CFOA impact from cash that GE would have otherwise collected had customer receivables not been previously sold in factoring programs that have now been discontinued. | |||||||||||||||||||||||
We believe investors may find it useful to compare GE Industrial's free cash flows* performance without the effects of cash used for taxes related to business sales, the factoring program discontinuation and pension plan funding. We believe this measure will better allow management and investors to evaluate the capacity of our industrial operations to generate free cash flows. |
ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Revenues | Segment profit (loss) | Profit margin | ||||||||||||||||||||||||||||||||
Three months ended December 31 | 2021 | 2020 | V% | 2021 | 2020 | V% | 2021 | 2020 | V bps | ||||||||||||||||||||||||||
Aviation (GAAP) | $ | 6,080 | $ | 5,847 | 4 | % | $ | 1,218 | $ | 564 | F | 20.0 | % | 9.6 | % | 1,040bps | |||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | 8 | — | 10 | — | |||||||||||||||||||||||||||||||
Aviation organic (Non-GAAP) | $ | 6,072 | $ | 5,847 | 4 | % | $ | 1,209 | $ | 564 | F | 19.9 | % | 9.6 | % | 1,030bps | |||||||||||||||||||
Healthcare (GAAP) | $ | 4,625 | $ | 4,823 | (4) | % | $ | 762 | $ | 949 | (20) | % | 16.5 | % | 19.7 | % | (320)bps | ||||||||||||||||||
Less: acquisitions | — | (23) | (24) | (7) | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (27) | — | 4 | — | |||||||||||||||||||||||||||||||
Healthcare organic (Non-GAAP) | $ | 4,651 | $ | 4,846 | (4) | % | $ | 783 | $ | 956 | (18) | % | 16.8 | % | 19.7 | % | (290)bps | ||||||||||||||||||
Renewable Energy (GAAP) | $ | 4,192 | $ | 4,442 | (6) | % | $ | (312) | $ | (87) | U | (7.4) | % | (2.0) | % | (540)bps | |||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (24) | — | 2 | — | |||||||||||||||||||||||||||||||
Renewable Energy organic (Non-GAAP) | $ | 4,217 | $ | 4,442 | (5) | % | $ | (313) | $ | (87) | U | (7.4) | % | (2.0) | % | (540)bps | |||||||||||||||||||
Power (GAAP) | $ | 4,661 | $ | 5,383 | (13) | % | $ | 309 | $ | 306 | 1 | % | 6.6 | % | 5.7 | % | 90bps | ||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | 26 | 204 | (2) | 5 | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (34) | — | (35) | — | |||||||||||||||||||||||||||||||
Power organic (Non-GAAP) | $ | 4,669 | $ | 5,179 | (10) | % | $ | 347 | $ | 301 | 15 | % | 7.4 | % | 5.8 | % | 160bps | ||||||||||||||||||
ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) | |||||||||||||||||||||||||||||||||||
(Dollars in millions) | Revenues | Segment profit (loss) | Profit margin | ||||||||||||||||||||||||||||||||
Twelve months ended December 31 | 2021 | 2020 | V% | 2021 | 2020 | V% | 2021 | 2020 | V bps | ||||||||||||||||||||||||||
Aviation (GAAP) | $ | 21,310 | $ | 22,042 | (3) | % | $ | 2,882 | $ | 1,229 | F | 13.5 | % | 5.6 | % | 790bps | |||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | 48 | — | (48) | |||||||||||||||||||||||||||||||
Less: foreign currency effect | 21 | — | (18) | — | |||||||||||||||||||||||||||||||
Aviation organic (Non-GAAP) | $ | 21,289 | $ | 21,994 | (3) | % | $ | 2,900 | $ | 1,277 | F | 13.6 | % | 5.8 | % | 780bps | |||||||||||||||||||
Healthcare (GAAP) | $ | 17,725 | $ | 18,009 | (2) | % | $ | 2,966 | $ | 3,060 | (3) | % | 16.7 | % | 17.0 | % | (30)bps | ||||||||||||||||||
Less: acquisitions | 19 | (96) | (29) | (43) | |||||||||||||||||||||||||||||||
Less: business dispositions | — | 911 | — | 373 | |||||||||||||||||||||||||||||||
Less: foreign currency effect | 308 | — | 114 | — | |||||||||||||||||||||||||||||||
Healthcare organic (Non-GAAP) | $ | 17,398 | $ | 17,194 | 1 | % | $ | 2,881 | $ | 2,729 | 6 | % | 16.6 | % | 15.9 | % | 70bps | ||||||||||||||||||
Renewable Energy (GAAP) | $ | 15,697 | $ | 15,666 | — | % | $ | (795) | $ | (715) | (11) | % | (5.1) | % | (4.6) | % | (50)bps | ||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | 33 | — | (4) | |||||||||||||||||||||||||||||||
Less: foreign currency effect | 414 | — | (39) | — | |||||||||||||||||||||||||||||||
Renewable Energy organic (Non-GAAP) | $ | 15,283 | $ | 15,633 | (2) | % | $ | (756) | $ | (711) | (6) | % | (4.9) | % | (4.5) | % | (40)bps | ||||||||||||||||||
Power (GAAP) | $ | 16,903 | $ | 17,589 | (4) | % | $ | 726 | $ | 274 | F | 4.3 | % | 1.6 | % | 270bps | |||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | 26 | 220 | (2) | 7 | |||||||||||||||||||||||||||||||
Less: foreign currency effect | 203 | — | (59) | — | |||||||||||||||||||||||||||||||
Power organic (Non-GAAP) | $ | 16,674 | $ | 17,370 | (4) | % | $ | 788 | $ | 267 | F | 4.7 | % | 1.5 | % | 320bps | |||||||||||||||||||
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, as these activities can obscure underlying trends. |
ORGANIC REVENUES (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||
Total revenues (GAAP) | $ | 20,303 | $ | 21,033 | (3) | % | $ | 74,196 | $ | 75,833 | (2) | % | |||||||||||
Less: Insurance revenues | 811 | 769 | 3,106 | 2,865 | |||||||||||||||||||
Adjusted revenues (Non-GAAP) | $ | 19,492 | $ | 20,264 | (4) | % | $ | 71,090 | $ | 72,969 | (3) | % | |||||||||||
Less: acquisitions | — | (6) | 19 | (67) | |||||||||||||||||||
Less: business dispositions | (33) | 54 | (33) | 1,447 | |||||||||||||||||||
Less: foreign currency effect | (61) | — | 979 | — | |||||||||||||||||||
Organic revenues (Non-GAAP) | $ | 19,586 | $ | 20,216 | (3) | % | $ | 70,125 | $ | 71,589 | (2) | % | |||||||||||
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, as these activities can obscure underlying trends. |
HEALTHCARE SYSTEMS ORGANIC REVENUES (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||
Healthcare Systems revenues (GAAP) | $ | 4,121 | $ | 4,331 | (5) | % | $ | 15,694 | $ | 15,387 | 2 | % | |||||||||||
Less: acquisitions | — | (23) | — | (92) | |||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||
Less: foreign currency effect | (27) | — | 254 | — | |||||||||||||||||||
Healthcare Systems organic revenues (Non-GAAP) | $ | 4,149 | $ | 4,354 | (5) | % | $ | 15,439 | $ | 15,479 | — | % |
PDX ORGANIC REVENUES (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||
PDx revenues (GAAP) | $ | 503 | $ | 492 | 2 | % | $ | 2,031 | $ | 1,792 | 13 | % | |||||||||||
Less: acquisitions | — | — | 19 | (4) | |||||||||||||||||||
Less: business dispositions | — | — | — | 81 | |||||||||||||||||||
Less: foreign currency effect | — | — | 53 | — | |||||||||||||||||||
PDx organic revenues (Non-GAAP) | $ | 503 | $ | 492 | 2 | % | $ | 1,959 | $ | 1,714 | 14 | % | |||||||||||
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, as these activities can obscure underlying trends. |
ADJUSTED PROFIT AND PROFIT MARGIN | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||||||||||||||
(EXCLUDING CERTAIN ITEMS) (NON-GAAP) (Dollars in millions) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||||||||||||||
Total revenues (GAAP) | $ | 20,303 | $ | 21,033 | (3) | % | $ | 74,196 | $ | 75,833 | (2) | % | |||||||||||||||||||||||
Less: Insurance revenues | 811 | 769 | 3,106 | 2,865 | |||||||||||||||||||||||||||||||
Adjusted revenues (Non-GAAP) | $ | 19,492 | $ | 20,264 | (4) | % | $ | 71,090 | $ | 72,969 | (3) | % | |||||||||||||||||||||||
Total costs and expenses (GAAP) | $ | 24,836 | $ | 21,396 | 16 | % | $ | 80,702 | $ | 81,259 | (1) | % | |||||||||||||||||||||||
Less: Insurance cost and expenses | 671 | 639 | 2,540 | 2,668 | |||||||||||||||||||||||||||||||
Less: interest and other financial charges | 410 | 411 | 1,813 | 2,018 | |||||||||||||||||||||||||||||||
Less: debt extinguishment costs | 5,108 | 95 | 6,524 | 301 | |||||||||||||||||||||||||||||||
Less: non-operating benefit costs | 408 | 610 | 1,782 | 2,430 | |||||||||||||||||||||||||||||||
Less: restructuring & other | 54 | 157 | 455 | 693 | |||||||||||||||||||||||||||||||
Less: Steam asset impairment | — | — | — | 363 | |||||||||||||||||||||||||||||||
Less: SEC settlement charge | — | 100 | — | 200 | |||||||||||||||||||||||||||||||
Less: goodwill impairments | — | — | — | 728 | |||||||||||||||||||||||||||||||
Add: noncontrolling interests | 1 | 1 | (71) | (158) | |||||||||||||||||||||||||||||||
Add: EFS benefit from taxes | (51) | (67) | (162) | (154) | |||||||||||||||||||||||||||||||
Adjusted costs (Non-GAAP) | $ | 18,135 | $ | 19,319 | (6)% | $ | 67,354 | $ | 71,546 | (6) | % | ||||||||||||||||||||||||
Other income (GAAP) | 1,066 | 2,944 | (64) | % | 2,823 | 11,396 | (75) | % | |||||||||||||||||||||||||||
Less: gains (losses) on equity securities | 665 | 2,636 | 1,921 | (1,891) | |||||||||||||||||||||||||||||||
Less: restructuring & other | 68 | — | 75 | 13 | |||||||||||||||||||||||||||||||
Less: gains (losses) on purchases and sales of business interests | 115 | 21 | (44) | 12,452 | |||||||||||||||||||||||||||||||
Adjusted other income (Non-GAAP) | $ | 218 | $ | 287 | (24) | % | $ | 871 | $ | 823 | 6 | % | |||||||||||||||||||||||
Profit (loss) (GAAP) | $ | (3,467) | $ | 2,580 | U | $ | (3,683) | $ | 5,970 | U | |||||||||||||||||||||||||
Profit (loss) margin (GAAP) | (17.1) | % | 12.3 | % | (2,940)bps | (5.0) | % | 7.9 | % | (1,290)bps | |||||||||||||||||||||||||
Adjusted profit (loss) (Non-GAAP) | $ | 1,575 | $ | 1,232 | 28 | % | $ | 4,608 | $ | 2,246 | F | ||||||||||||||||||||||||
Adjusted profit (loss) margin (Non-GAAP) | 8.1 | % | 6.1 | % | 200bps | 6.5 | % | 3.1 | % | 340bps | |||||||||||||||||||||||||
We believe that adjusting profit to exclude the effects of items that are not closely associated with ongoing operations provides management and investors with a meaningful measure that increases the period-to-period comparability. Gains (losses) and restructuring and other items are impacted by the timing and magnitude of gains associated with dispositions, and the timing and magnitude of costs associated with restructuring and other activities. |
ADJUSTED ORGANIC PROFIT | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(NON-GAAP) (Dollars in millions) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||
Adjusted profit (loss) (Non-GAAP) | $ | 1,575 | $ | 1,232 | 28 | % | $ | 4,608 | $ | 2,246 | F | ||||||||||||
Less: acquisitions | (24) | (6) | (29) | 15 | |||||||||||||||||||
Less: business dispositions | (2) | 12 | (2) | 367 | |||||||||||||||||||
Less: foreign currency effect | 1 | — | 28 | — | |||||||||||||||||||
Adjusted organic profit (loss) (Non-GAAP) | $ | 1,601 | $ | 1,226 | 31 | % | $ | 4,611 | $ | 1,863 | F | ||||||||||||
Adjusted profit (loss) margin (Non-GAAP) | 8.1 | % | 6.1 | % | 200bps | 6.5 | % | 3.1 | % | 340bps | |||||||||||||
Adjusted organic profit (loss) margin (Non-GAAP) | 8.2 | % | 6.1 | % | 210bps | 6.6 | % | 2.6 | % | 400bps | |||||||||||||
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, as these activities can obscure underlying trends. |
ADJUSTED EARNINGS (LOSS) (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||
Earnings (loss) from continuing operations (GAAP) | $ | (3,561) | $ | 2,251 | U | $ | (3,571) | $ | 5,975 | U | |||||||||||||
Insurance earnings (pre-tax) | 140 | 132 | 570 | 193 | |||||||||||||||||||
Tax effect on Insurance earnings | (30) | (29) | (126) | (50) | |||||||||||||||||||
Less: Insurance earnings (net of tax) | 110 | 102 | 444 | 143 | |||||||||||||||||||
Earnings (loss) excluding Insurance (Non-GAAP) | $ | (3,670) | $ | 2,148 | U | $ | (4,015) | $ | 5,832 | U | |||||||||||||
Non-operating benefits costs (pre-tax) (GAAP) | (408) | (610) | (1,782) | (2,430) | |||||||||||||||||||
Tax effect on non-operating benefit costs | 86 | 128 | 374 | 510 | |||||||||||||||||||
Less: non-operating benefit costs (net of tax) | (323) | (482) | (1,408) | (1,920) | |||||||||||||||||||
Gains (losses) on purchases and sales of business interests (pre-tax) | 115 | 21 | (44) | 12,452 | |||||||||||||||||||
Tax effect on gains (losses) on purchases and sales of business interests | (24) | (4) | 6 | (1,257) | |||||||||||||||||||
Less: gains (losses) on purchases and sales of business interests (net of tax) | 91 | 17 | (37) | 11,195 | |||||||||||||||||||
Gains (losses) on equity securities (pre-tax) | 665 | 2,636 | 1,921 | (1,891) | |||||||||||||||||||
Tax effect on gains (losses) on equity securities(a) | (27) | (297) | 128 | 637 | |||||||||||||||||||
Less: gains (losses) on equity securities (net of tax) | 638 | 2,338 | 2,049 | (1,255) | |||||||||||||||||||
Restructuring & other (pre-tax) | 14 | (157) | (380) | (680) | |||||||||||||||||||
Tax effect on restructuring & other | (1) | 33 | 35 | 151 | |||||||||||||||||||
Less: restructuring & other (net of tax) | 14 | (124) | (346) | (529) | |||||||||||||||||||
Debt extinguishment costs (pre-tax) | (5,108) | (95) | (6,524) | (301) | |||||||||||||||||||
Tax effect on debt extinguishment costs(b) | 133 | 20 | 430 | 57 | |||||||||||||||||||
Less: debt extinguishment costs (net of tax) | (4,975) | (75) | (6,094) | (244) | |||||||||||||||||||
Steam asset impairments (pre-tax) | — | — | — | (363) | |||||||||||||||||||
Tax effect on Steam asset impairments | — | — | — | 37 | |||||||||||||||||||
Less: Steam asset impairments (net of tax) | — | — | — | (326) | |||||||||||||||||||
Goodwill impairments (pre-tax) | — | — | — | (728) | |||||||||||||||||||
Tax effect on goodwill impairments | — | — | — | (23) | |||||||||||||||||||
Less: goodwill impairments (net of tax) | — | — | — | (751) | |||||||||||||||||||
Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) | — | (10) | (9) | (151) | |||||||||||||||||||
Less: SEC settlement charge (pre-tax and net of tax) | — | (100) | — | (200) | |||||||||||||||||||
Less: U.S. tax reform enactment adjustment | — | — | 8 | (49) | |||||||||||||||||||
Less: Tax benefit related to BioPharma sale | — | 47 | — | 143 | |||||||||||||||||||
Less: Tax loss related to GECAS transaction | (11) | — | (54) | — | |||||||||||||||||||
Adjusted earnings (loss) (Non-GAAP) | $ | 896 | $ | 536 | 67 | % | $ | 1,876 | $ | (81) | F | ||||||||||||
(a) Included tax benefits available to offset the tax on gains in equity securities. | |||||||||||||||||||||||
(b) Includes related tax valuation allowances. |
ADJUSTED EARNINGS (LOSS) PER SHARE (EPS) (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(In dollars) | 2021 | 2020 | V% | 2021 | 2020 | V% | |||||||||||||||||
Earnings (loss) from continuing operations (GAAP) | $ | (3.24) | $ | 2.05 | U | $ | (3.25) | $ | 5.46 | U | |||||||||||||
Insurance earnings (pre-tax) | 0.13 | 0.12 | 0.52 | 0.18 | |||||||||||||||||||
Tax effect on Insurance earnings | (0.03) | (0.03) | (0.11) | (0.05) | |||||||||||||||||||
Less: Insurance earnings (net of tax) | 0.10 | 0.09 | 0.40 | 0.13 | |||||||||||||||||||
Earnings (loss) excluding Insurance (Non-GAAP) | $ | (3.34) | $ | 1.96 | U | $ | (3.66) | $ | 5.32 | U | |||||||||||||
Non-operating benefits costs (pre-tax) (GAAP) | (0.37) | (0.56) | (1.62) | (2.22) | |||||||||||||||||||
Tax effect on non-operating benefit costs | 0.08 | 0.12 | 0.34 | 0.47 | |||||||||||||||||||
Less: non-operating benefit costs (net of tax) | (0.29) | (0.44) | (1.28) | (1.75) | |||||||||||||||||||
Gains (losses) on purchases and sales of business interests (pre-tax) | 0.10 | 0.02 | (0.04) | 11.37 | |||||||||||||||||||
Tax effect on gains (losses) on purchases and sales of business interests | (0.02) | — | 0.01 | (1.15) | |||||||||||||||||||
Less: gains (losses) on purchases and sales of business interests (net of tax) | 0.08 | 0.02 | (0.03) | 10.22 | |||||||||||||||||||
Gains (losses) on equity securities (pre-tax) | 0.61 | 2.40 | 1.75 | (1.73) | |||||||||||||||||||
Tax effect on gains (losses) on equity securities(a) | (0.02) | (0.27) | 0.12 | 0.58 | |||||||||||||||||||
Less: gains (losses) on equity securities (net of tax) | 0.58 | 2.13 | 1.87 | (1.15) | |||||||||||||||||||
Restructuring & other (pre-tax) | 0.01 | (0.14) | (0.35) | (0.62) | |||||||||||||||||||
Tax effect on restructuring & other | — | 0.03 | 0.03 | 0.14 | |||||||||||||||||||
Less: restructuring & other (net of tax) | 0.01 | (0.11) | (0.31) | (0.48) | |||||||||||||||||||
Debt extinguishment costs (pre-tax) | (4.65) | (0.09) | (5.94) | (0.27) | |||||||||||||||||||
Tax effect on debt extinguishment costs(b) | 0.12 | 0.02 | 0.39 | 0.05 | |||||||||||||||||||
Less: debt extinguishment costs (net of tax) | (4.53) | (0.07) | (5.55) | (0.22) | |||||||||||||||||||
Steam asset impairments (pre-tax) | — | — | — | (0.33) | |||||||||||||||||||
Tax effect on Steam asset impairments | — | — | — | 0.03 | |||||||||||||||||||
Less: Steam asset impairments (net of tax) | — | — | — | (0.30) | |||||||||||||||||||
Goodwill impairments (pre-tax) | — | — | — | (0.66) | |||||||||||||||||||
Tax effect on goodwill impairments | — | — | — | (0.02) | |||||||||||||||||||
Less: goodwill impairments (net of tax) | — | — | — | (0.69) | |||||||||||||||||||
Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) | — | (0.01) | (0.01) | (0.14) | |||||||||||||||||||
Less: SEC settlement charge (pre-tax and net of tax) | — | (0.09) | — | (0.18) | |||||||||||||||||||
Less: U.S. tax reform enactment adjustment | — | — | 0.01 | (0.05) | |||||||||||||||||||
Less: Tax benefit related to BioPharma sale | — | 0.04 | — | 0.13 | |||||||||||||||||||
Less: Tax loss related to GECAS transaction | (0.01) | — | (0.05) | — | |||||||||||||||||||
Adjusted earnings (loss) (Non-GAAP) | $ | 0.82 | $ | 0.49 | 67 | % | $ | 1.71 | $ | (0.07) | F | ||||||||||||
(a) Included tax benefits available to offset the tax on gains in equity securities. | |||||||||||||||||||||||
(b) Includes related tax valuation allowances. | |||||||||||||||||||||||
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total. | |||||||||||||||||||||||
The service cost for our pension and other benefit plans are included in adjusted earnings*, which represents the ongoing cost of providing pension benefits to our employees. The components of non-operating benefit costs are mainly driven by capital allocation decisions and market performance. We believe the retained costs in Adjusted earnings* and Adjusted EPS* provides management and investors a useful measure to evaluate the performance of the total company and increases period-to-period comparability. We also use Adjusted EPS* as a performance metric at the company level for our annual executive incentive plan for 2021. |
FREE CASH FLOWS (FCF) (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(In millions) | 2021 | 2020 | V$ | 2021 | 2020 | V$ | |||||||||||||||||
CFOA (GAAP) | $ | 2,415 | $ | 2,901 | $ | (486) | $ | 888 | $ | 1,025 | $ | (137) | |||||||||||
Less: Insurance CFOA | 46 | 73 | (27) | 86 | (80) | 167 | |||||||||||||||||
CFOA excluding Insurance (Non-GAAP) | $ | 2,369 | $ | 2,828 | $ | (459) | $ | 802 | $ | 1,105 | $ | (304) | |||||||||||
Add: gross additions to property, plant and equipment | (355) | (276) | (79) | (1,250) | (1,579) | 329 | |||||||||||||||||
Add: gross additions to internal-use software | (33) | (25) | (8) | (111) | (151) | 39 | |||||||||||||||||
Less: GE Pension Plan funding | — | (2,500) | 2,500 | — | (2,500) | 2,500 | |||||||||||||||||
Less: CFOA impact from factoring programs discontinued in 2021 | (2,041) | — | (2,041) | (5,108) | — | (5,108) | |||||||||||||||||
Less: CFOA impact from receivables factoring and supply chain finance eliminations | 314 | 660 | (346) | 2,666 | 1,419 | 1,246 | |||||||||||||||||
Less: taxes related to business sales | — | (26) | 26 | (6) | (178) | 172 | |||||||||||||||||
Free cash flows (Non-GAAP) | $ | 3,708 | $ | 4,392 | $ | (684) | $ | 1,889 | $ | 635 | $ | 1,254 | |||||||||||
Less: prior period CFOA impact from factoring programs discontinued in 2021-a) | — | (1,377) | 1,377 | (739) | (3,361) | 2,622 | |||||||||||||||||
Free cash flows excluding discontinued factoring (Non-GAAP) | $ | 3,708 | $ | 5,769 | $ | (2,061) | $ | 2,628 | $ | 3,996 | $ | (1,368) | |||||||||||
(a) Represents the CFOA impact from cash that GE would have otherwise collected had customer receivables not been previously sold in factoring programs that have now been discontinued. | |||||||||||||||||||||||
We believe investors may find it useful to compare free cash flows* performance without the effects of cash used for taxes related to business sales, the factoring program discontinuation, pension plan funding and receivables factoring and supply chain finance eliminations. We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flows. |
2022 OUTLOOK: 2022 ADJUSTED EPS (NON-GAAP) | ||||||||||||||||||||
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Adjusted EPS* in 2022 without unreasonable effort due to the uncertainty of timing of any gains or losses related to acquisitions & dispositions, the timing and magnitude of the financial impact related to the mark-to-market of our remaining investment in AerCap and Baker Hughes, and the timing and magnitude of restructuring expenses. Although we have attempted to estimate the amount of gains and restructuring charges for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful. |
2022 OUTLOOK: 2022 FREE CASH FLOWS (NON-GAAP) | |||||||||||||||||
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for free cash flows* in 2022 without unreasonable effort due to the uncertainty of timing of deal taxes related to business sales. |