Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
Dollars in millions; per-share amounts in dollars, diluted | 2023 | 2022 | Year on Year | 2023 | 2022 | Year on Year | |||||||||||||||||
GAAP Metrics | |||||||||||||||||||||||
Cash from Operating Activities (CFOA) | $3,216 | $3,664 | (12) | % | $5,570 | $4,043 | 38 | % | |||||||||||||||
Continuing EPS | 1.44 | 1.53 | (6) | % | 7.98 | (1.00) | F | ||||||||||||||||
Net EPS | 1.45 | 1.90 | (24) | % | 8.36 | 0.05 | F | ||||||||||||||||
Total Revenues | 19,423 | 16,828 | 15 | % | 67,954 | 58,100 | 17 | % | |||||||||||||||
Profit Margin | 10.3 | % | 9.4 | % | 90 bps | 15.0 | % | (1.4) | % | 1,640 bps | |||||||||||||
Non-GAAP Metrics | |||||||||||||||||||||||
Free Cash Flow (FCF)-a) | $2,961 | $3,338 | (11) | % | $5,150 | $3,059 | 68 | % | |||||||||||||||
Adjusted EPS-b) | 1.03 | 0.66 | 56 | % | 2.81 | 0.77 | F | ||||||||||||||||
Organic Revenues | 18,182 | 16,043 | 13 | % | 64,336 | 55,150 | 17 | % | |||||||||||||||
Adjusted Profit-c) | 1,773 | 1,366 | 30 | % | 5,662 | 3,159 | 79 | % | |||||||||||||||
Adjusted Profit Margin-c) | 9.6 | % | 8.5 | % | 110 bps | 8.8 | % | 5.7 | % | 310 bps | |||||||||||||
Adjusted Organic Profit Margin-c) | 10.0 | % | 9.5 | % | 50 bps | 9.2 | % | 6.1 | % | 310 bps |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
(In millions) | 2023 | 2022 | Year on Year | 2023 | 2022 | Year on Year | |||||||||||||||||
Orders | $10,620 | $9,682 | 10 | % | $38,077 | $31,106 | 22 | % | |||||||||||||||
Revenues | 8,520 | 7,615 | 12 | % | 31,770 | 26,050 | 22 | % | |||||||||||||||
Segment Profit/(Loss) | 1,598 | 1,434 | 11 | % | 6,115 | 4,775 | 28 | % | |||||||||||||||
Segment Profit/(Loss) Margin | 18.8 | % | 18.8 | % | 0 bps | 19.2 | % | 18.3 | % | 90 bps |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
(In millions) | 2023 | 2022 | Year on Year | 2023 | 2022 | Year on Year | |||||||||||||||||
Orders | $5,069 | $5,029 | 1 | % | $22,627 | $14,657 | 54 | % | |||||||||||||||
Revenues | 4,213 | 3,413 | 23 | % | 15,050 | 12,977 | 16 | % | |||||||||||||||
Segment Profit/(Loss) | (347) | (454) | 24 | % | (1,437) | (2,240) | 36 | % | |||||||||||||||
Segment Profit/(Loss) Margin | (8.2) | % | (13.3) | % | 510 bps | (9.5) | % | (17.3) | % | 780 bps |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
(In millions) | 2023 | 2022 | Year on Year | 2023 | 2022 | Year on Year | |||||||||||||||||
Orders | $5,728 | $5,442 | 5 | % | $18,479 | $17,826 | 4 | % | |||||||||||||||
Revenues | 5,786 | 5,030 | 15 | % | 17,731 | 16,262 | 9 | % | |||||||||||||||
Segment Profit/(Loss) | 759 | 692 | 10 | % | 1,449 | 1,217 | 19 | % | |||||||||||||||
Segment Profit/(Loss) Margin | 13.1 | % | 13.8 | % | (70) bps | 8.2 | % | 7.5 | % | 70 bps |
GENERAL ELECTRIC COMPANY CONDENSED STATEMENT OF EARNINGS (LOSS) (UNAUDITED) | |||||||||||||||||||||||||||||||||||
(In millions; per-share amounts in dollars) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||||||||||||||
2023 | 2022 | V% | 2023 | 2022 | V% | ||||||||||||||||||||||||||||||
Sales of equipment and services | $ | 18,514 | $ | 16,046 | 15 | % | $ | 64,565 | $ | 55,143 | 17 | % | |||||||||||||||||||||||
Insurance revenues | 909 | 783 | 3,389 | 2,957 | |||||||||||||||||||||||||||||||
Total revenues | 19,423 | 16,828 | 15 | % | 67,954 | 58,100 | 17 | % | |||||||||||||||||||||||||||
Cost of sales | 14,396 | 12,440 | 50,392 | 44,272 | |||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 2,524 | 2,664 | 9,195 | 9,173 | |||||||||||||||||||||||||||||||
Separation costs | 320 | 296 | 978 | 715 | |||||||||||||||||||||||||||||||
Research and development | 551 | 518 | 1,907 | 1,786 | |||||||||||||||||||||||||||||||
Interest and other financial charges | 296 | 347 | 1,118 | 1,477 | |||||||||||||||||||||||||||||||
Debt extinguishment costs | — | 465 | — | 465 | |||||||||||||||||||||||||||||||
Insurance losses, annuity benefits and other costs | 758 | 799 | 2,886 | 2,592 | |||||||||||||||||||||||||||||||
Non-operating benefit cost (income) | (402) | (107) | (1,585) | (409) | |||||||||||||||||||||||||||||||
Total costs and expenses | 18,442 | 17,421 | 6 | % | 64,891 | 60,071 | 8 | % | |||||||||||||||||||||||||||
Other income (loss) | 1,029 | 2,172 | 7,129 | 1,172 | |||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes | 2,009 | 1,580 | 27 | % | 10,191 | (799) | F | ||||||||||||||||||||||||||||
Benefit (provision) for income taxes | (421) | 206 | (1,162) | 3 | |||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | 1,589 | 1,786 | (11) | % | 9,029 | (795) | F | ||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of taxes | 3 | 427 | 414 | 1,202 | |||||||||||||||||||||||||||||||
Net earnings (loss) | 1,591 | 2,213 | (28) | % | 9,443 | 407 | F | ||||||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests | — | 16 | (37) | 67 | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to the Company | 1,591 | 2,197 | (28) | % | 9,481 | 339 | F | ||||||||||||||||||||||||||||
Preferred stock dividends | — | (97) | (295) | (289) | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | 1,591 | $ | 2,100 | (24) | % | $ | 9,186 | $ | 51 | F | ||||||||||||||||||||||||
Amounts attributable to GE common shareholders: | |||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 1,589 | $ | 1,786 | (11) | % | $ | 9,029 | $ | (795) | F | ||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | — | (3) | (38) | 16 | |||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to the Company | 1,589 | 1,789 | (11) | % | 9,067 | (811) | F | ||||||||||||||||||||||||||||
Preferred stock dividends | — | (97) | (295) | (289) | |||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to GE common shareholders | 1,589 | 1,692 | (6) | % | 8,772 | (1,100) | F | ||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations attributable to GE common shareholders | 3 | 408 | 414 | 1,151 | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | 1,591 | $ | 2,100 | (24) | % | $ | 9,186 | $ | 51 | F | ||||||||||||||||||||||||
Per-share amounts - earnings (loss) from continuing operations | |||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 1.44 | $ | 1.53 | (6) | % | $ | 7.98 | $ | (1.00) | F | ||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 1.46 | $ | 1.55 | (6) | % | $ | 8.06 | $ | (1.00) | F | ||||||||||||||||||||||||
Per-share amounts - net earnings (loss) | |||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 1.45 | $ | 1.90 | (24) | % | $ | 8.36 | $ | 0.05 | F | ||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 1.46 | $ | 1.93 | (24) | % | $ | 8.44 | $ | 0.05 | F | ||||||||||||||||||||||||
Total average equivalent shares | |||||||||||||||||||||||||||||||||||
Diluted | 1,100 | 1,097 | — | % | 1,099 | 1,096 | — | % | |||||||||||||||||||||||||||
Basic | 1,088 | 1,091 | — | % | 1,089 | 1,096 | (1) | % | |||||||||||||||||||||||||||
GENERAL ELECTRIC COMPANY | |||||||||||||||||||||||||||||||||||
SUMMARY OF REPORTABLE SEGMENTS (UNAUDITED) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||||||||||||||
(In millions) | 2023 | 2022 | V% | 2023 | 2022 | V% | |||||||||||||||||||||||||||||
Aerospace | $ | 8,520 | $ | 7,615 | 12 | % | $ | 31,770 | $ | 26,050 | 22 | % | |||||||||||||||||||||||
Renewable Energy | 4,213 | 3,413 | 23 | % | 15,050 | 12,977 | 16 | % | |||||||||||||||||||||||||||
Power | 5,786 | 5,030 | 15 | % | 17,731 | 16,262 | 9 | % | |||||||||||||||||||||||||||
Total segment revenues(a) | 18,518 | 16,058 | 15 | % | 64,551 | 55,289 | 17 | % | |||||||||||||||||||||||||||
Corporate | 905 | 770 | 18 | % | 3,403 | 2,812 | 21 | % | |||||||||||||||||||||||||||
Total revenues | $ | 19,423 | $ | 16,828 | 15 | % | $ | 67,954 | $ | 58,100 | 17 | % | |||||||||||||||||||||||
Aerospace | $ | 1,598 | $ | 1,434 | 11 | % | $ | 6,115 | $ | 4,775 | 28 | % | |||||||||||||||||||||||
Renewable Energy | (347) | (454) | 24 | % | (1,437) | (2,240) | 36 | % | |||||||||||||||||||||||||||
Power | 759 | 692 | 10 | % | 1,449 | 1,217 | 19 | % | |||||||||||||||||||||||||||
Total segment profit (loss)(a) | 2,010 | 1,672 | 20 | % | 6,126 | 3,751 | 63 | % | |||||||||||||||||||||||||||
Corporate(b) | (73) | 658 | U | 3,785 | (2,875) | F | |||||||||||||||||||||||||||||
Interest and other financial charges | (287) | (337) | 15 | % | (1,073) | (1,423) | 25 | % | |||||||||||||||||||||||||||
Debt extinguishment costs | — | (465) | F | — | (465) | F | |||||||||||||||||||||||||||||
Non-operating benefit income (cost) | 402 | 107 | F | 1,585 | 409 | F | |||||||||||||||||||||||||||||
Benefit (provision) for income taxes | (462) | 153 | U | (1,357) | (210) | U | |||||||||||||||||||||||||||||
Preferred stock dividends | — | (97) | F | (295) | (289) | (2) | % | ||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to GE common shareholders | 1,589 | 1,692 | (6) | % | 8,772 | (1,100) | F | ||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations attributable to GE common shareholders | 3 | 408 | (99) | % | 414 | 1,151 | (64) | % | |||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | 1,591 | $ | 2,100 | (24) | % | $ | 9,186 | $ | 51 | F |
GENERAL ELECTRIC COMPANY STATEMENT OF FINANCIAL POSITION (UNAUDITED) | ||||||||||||||
(In millions) | December 31, 2023 | December 31, 2022 | ||||||||||||
Cash, cash equivalents and restricted cash(a)(b) | $ | 16,967 | $ | 15,810 | ||||||||||
Investment securities | 5,706 | 7,609 | ||||||||||||
Current receivables | 15,466 | 14,831 | ||||||||||||
Inventories, including deferred inventory costs | 16,528 | 14,891 | ||||||||||||
Current contract assets | 1,500 | 2,467 | ||||||||||||
All other current assets | 1,647 | 1,400 | ||||||||||||
Assets of businesses held for sale | 1,985 | 1,374 | ||||||||||||
Current assets | 59,799 | 58,384 | ||||||||||||
Investment securities | 38,000 | 36,027 | ||||||||||||
Property, plant and equipment – net | 12,494 | 12,192 | ||||||||||||
Goodwill | 13,385 | 12,999 | ||||||||||||
Other intangible assets – net | 5,695 | 6,105 | ||||||||||||
Contract and other deferred assets | 5,406 | 5,776 | ||||||||||||
All other assets | 15,997 | 15,477 | ||||||||||||
Deferred income taxes | 10,575 | 10,001 | ||||||||||||
Assets of discontinued operations | 1,695 | 31,890 | ||||||||||||
Total assets | $ | 163,045 | $ | 188,851 | ||||||||||
Short-term borrowings | $ | 1,253 | $ | 3,739 | ||||||||||
Accounts payable and equipment project payables | 15,408 | 15,399 | ||||||||||||
Progress collections and deferred income | 19,677 | 16,216 | ||||||||||||
All other current liabilities | 12,712 | 12,130 | ||||||||||||
Liabilities of businesses held for sale | 1,826 | 1,944 | ||||||||||||
Current liabilities | 50,876 | 49,428 | ||||||||||||
Deferred income | 1,339 | 1,409 | ||||||||||||
Long-term borrowings | 19,711 | 20,320 | ||||||||||||
Insurance liabilities and annuity benefits | 39,624 | 36,845 | ||||||||||||
Non-current compensation and benefits | 11,214 | 10,400 | ||||||||||||
All other liabilities | 10,508 | 11,063 | ||||||||||||
Liabilities of discontinued operations | 1,193 | 24,474 | ||||||||||||
GE shareholders’ equity | 27,378 | 33,696 | ||||||||||||
Noncontrolling interests | 1,202 | 1,216 | ||||||||||||
Total liabilities and equity | $ | 163,045 | $ | 188,851 |
ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | Revenues | Segment profit (loss) | Profit margin | |||||||||||||||||||||||||||||||||||||||||||||||
Three months ended December 31 | 2023 | 2022 | V% | 2023 | 2022 | V% | 2023 | 2022 | V pts | |||||||||||||||||||||||||||||||||||||||||
Aerospace (GAAP) | $ | 8,520 | $ | 7,615 | 12 | % | $ | 1,598 | $ | 1,434 | 11 | % | 18.8 | % | 18.8 | % | 0 bps | |||||||||||||||||||||||||||||||||
Less: acquisitions and business dispositions | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | 10 | (9) | 8 | (43) | ||||||||||||||||||||||||||||||||||||||||||||||
Aerospace organic (Non-GAAP) | $ | 8,510 | $ | 7,624 | 12 | % | $ | 1,590 | $ | 1,477 | 8 | % | 18.7 | % | 19.4 | % | (70) bps | |||||||||||||||||||||||||||||||||
Renewable Energy (GAAP) | $ | 4,213 | $ | 3,413 | 23 | % | $ | (347) | $ | (454) | 24 | % | (8.2) | % | (13.3) | % | 510 bps | |||||||||||||||||||||||||||||||||
Less: acquisitions and business dispositions | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | 159 | 19 | (52) | (21) | ||||||||||||||||||||||||||||||||||||||||||||||
Renewable Energy organic (Non-GAAP) | $ | 4,053 | $ | 3,394 | 19 | % | $ | (295) | $ | (433) | 32 | % | (7.3) | % | (12.8) | % | 550 bps | |||||||||||||||||||||||||||||||||
Power (GAAP) | $ | 5,786 | $ | 5,030 | 15 | % | $ | 759 | $ | 692 | 10 | % | 13.1 | % | 13.8 | % | (70) bps | |||||||||||||||||||||||||||||||||
Less: acquisitions and business dispositions | 66 | — | 16 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | 93 | (8) | 2 | (77) | ||||||||||||||||||||||||||||||||||||||||||||||
Power organic (Non-GAAP) | $ | 5,627 | $ | 5,038 | 12 | % | $ | 741 | $ | 769 | (4) | % | 13.2 | % | 15.3 | % | (210) bps | |||||||||||||||||||||||||||||||||
ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | Revenues | Segment profit (loss) | Profit margin | |||||||||||||||||||||||||||||||||||||||||||||||
Twelve months ended December 31 | 2023 | 2022 | V% | 2023 | 2022 | V% | 2023 | 2022 | V pts | |||||||||||||||||||||||||||||||||||||||||
Aerospace (GAAP) | $ | 31,770 | $ | 26,050 | 22 | % | $ | 6,115 | $ | 4,775 | 28 | % | 19.2 | % | 18.3 | % | 90 bps | |||||||||||||||||||||||||||||||||
Less: acquisitions and business dispositions | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | 15 | (18) | 78 | (38) | ||||||||||||||||||||||||||||||||||||||||||||||
Aerospace organic (Non-GAAP) | $ | 31,755 | $ | 26,067 | 22 | % | $ | 6,037 | $ | 4,813 | 25 | % | 19.0 | % | 18.5 | % | 50 bps | |||||||||||||||||||||||||||||||||
Renewable Energy (GAAP) | $ | 15,050 | $ | 12,977 | 16 | % | $ | (1,437) | $ | (2,240) | 36 | % | (9.5) | % | (17.3) | % | 780 bps | |||||||||||||||||||||||||||||||||
Less: acquisitions and business dispositions | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | (6) | 57 | (200) | 5 | ||||||||||||||||||||||||||||||||||||||||||||||
Renewable Energy organic (Non-GAAP) | $ | 15,056 | $ | 12,920 | 17 | % | $ | (1,237) | $ | (2,245) | 45 | % | (8.2) | % | (17.4) | % | 920 bps | |||||||||||||||||||||||||||||||||
Power (GAAP) | $ | 17,731 | $ | 16,262 | 9 | % | $ | 1,449 | $ | 1,217 | 19 | % | 8.2 | % | 7.5 | % | 70 bps | |||||||||||||||||||||||||||||||||
Less: acquisitions and business dispositions | 152 | — | 21 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Less: foreign currency effect | 65 | (48) | (74) | (152) | ||||||||||||||||||||||||||||||||||||||||||||||
Power organic (Non-GAAP) | $ | 17,514 | $ | 16,310 | 7 | % | $ | 1,503 | $ | 1,369 | 10 | % | 8.6 | % | 8.4 | % | 20 bps | |||||||||||||||||||||||||||||||||
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, which includes translational and transactional impacts, as these activities can obscure underlying trends. |
ORGANIC REVENUES (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(In millions) | 2023 | 2022 | V% | 2023 | 2022 | V% | |||||||||||||||||
Total revenues (GAAP) | $ | 19,423 | $ | 16,828 | 15 | % | $ | 67,954 | $ | 58,100 | 17 | % | |||||||||||
Less: Insurance revenues (Note 12) | 909 | 783 | 3,389 | 2,957 | |||||||||||||||||||
Adjusted revenues (Non-GAAP) | $ | 18,514 | $ | 16,045 | 15 | % | $ | 64,565 | $ | 55,143 | 17 | % | |||||||||||
Less: acquisitions and business dispositions | 68 | — | 155 | 1 | |||||||||||||||||||
Less: foreign currency effect | 265 | 2 | 74 | (8) | |||||||||||||||||||
Organic revenues (Non-GAAP) | $ | 18,182 | $ | 16,043 | 13 | % | $ | 64,336 | $ | 55,150 | 17 | % | |||||||||||
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of revenues from our run-off Insurance business, acquisitions, dispositions and foreign currency, which includes translational and transactional impacts, as these activities can obscure underlying trends. |
ADJUSTED PROFIT AND PROFIT MARGIN (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(In millions) | 2023 | 2022 | V% | 2023 | 2022 | V% | |||||||||||||||||
Total revenues (GAAP) | $ | 19,423 | $ | 16,828 | 15% | $ | 67,954 | $ | 58,100 | 17 | % | ||||||||||||
Less: Insurance revenues | 909 | 783 | 3,389 | 2,957 | |||||||||||||||||||
Adjusted revenues (Non-GAAP) | $ | 18,514 | $ | 16,045 | 15% | $ | 64,565 | $ | 55,143 | 17 | % | ||||||||||||
Total costs and expenses (GAAP) | $ | 18,442 | $ | 17,421 | 6% | $ | 64,891 | $ | 60,071 | 8 | % | ||||||||||||
Less: Insurance cost and expenses | 810 | 842 | 3,057 | 2,753 | |||||||||||||||||||
Less: interest and other financial charges | 287 | 337 | 1,073 | 1,423 | |||||||||||||||||||
Less: non-operating benefit cost (income) | (402) | (107) | (1,585) | (409) | |||||||||||||||||||
Less: restructuring & other | 241 | 660 | 679 | 836 | |||||||||||||||||||
Less: debt extinguishment costs | — | 465 | — | 465 | |||||||||||||||||||
Less: separation costs | 320 | 296 | 978 | 715 | |||||||||||||||||||
Less: Steam asset sale impairment | — | (1) | — | 824 | |||||||||||||||||||
Less: Russia and Ukraine charges | — | — | 190 | 263 | |||||||||||||||||||
Add: noncontrolling interests | — | (3) | (38) | 16 | |||||||||||||||||||
Add: EFS benefit from taxes | (41) | (53) | (195) | (213) | |||||||||||||||||||
Adjusted costs (Non-GAAP) | $ | 17,145 | $ | 14,872 | 15% | $ | 60,268 | $ | 53,004 | 14 | % | ||||||||||||
Other income (loss) (GAAP) | $ | 1,029 | $ | 2,172 | (53) | % | $ | 7,129 | $ | 1,172 | F | ||||||||||||
Less: gains (losses) on retained and sold ownership interests and other equity securities | 621 | 1,935 | 5,773 | 76 | |||||||||||||||||||
Less: restructuring & other | — | 28 | — | 31 | |||||||||||||||||||
Less: gains (losses) on purchases and sales of business interests | 4 | 17 | (9) | 45 | |||||||||||||||||||
Adjusted other income (loss) (Non-GAAP) | $ | 404 | $ | 192 | F | $ | 1,365 | $ | 1,020 | 34 | % | ||||||||||||
Profit (loss) (GAAP) | $ | 2,009 | $ | 1,580 | 27 | % | $ | 10,191 | $ | (799) | F | ||||||||||||
Profit (loss) margin (GAAP) | 10.3 | % | 9.4 | % | 90 bps | 15.0 | % | (1.4) | % | 1,640 bps | |||||||||||||
Adjusted profit (loss) (Non-GAAP) | $ | 1,773 | $ | 1,366 | 30 | % | $ | 5,662 | $ | 3,159 | 79 | % | |||||||||||
Adjusted profit (loss) margin (Non-GAAP) | 9.6 | % | 8.5 | % | 110 | bps | 8.8 | % | 5.7 | % | 310 bps | ||||||||||||
We believe that adjusting profit to exclude the effects of items that are not closely associated with ongoing operations provides management and investors with a meaningful measure that increases the period-to-period comparability. Gains (losses) and restructuring and other items are impacted by the timing and magnitude of gains associated with dispositions, and the timing and magnitude of costs associated with restructuring and other activities. |
ADJUSTED ORGANIC PROFIT (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(In millions) | 2023 | 2022 | V% | 2023 | 2022 | V% | |||||||||||||||||
Adjusted profit (loss) (Non-GAAP) | $ | 1,773 | $ | 1,366 | 30% | $ | 5,662 | $ | 3,159 | 79 | % | ||||||||||||
Less: acquisitions and business dispositions | 13 | — | 12 | (5) | |||||||||||||||||||
Less: foreign currency effect | (57) | (151) | (294) | (189) | |||||||||||||||||||
Adjusted organic profit (loss) (Non-GAAP) | $ | 1,818 | $ | 1,517 | 20% | $ | 5,944 | $ | 3,353 | 77 | % | ||||||||||||
Adjusted profit (loss) margin (Non-GAAP) | 9.6 | % | 8.5 | % | 110 | bps | 8.8 | % | 5.7 | % | 310 bps | ||||||||||||
Adjusted organic profit (loss) margin (Non-GAAP) | 10.0 | % | 9.5 | % | 50 | bps | 9.2 | % | 6.1 | % | 310 bps | ||||||||||||
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, which includes translational and transactional impacts, as these activities can obscure underlying trends. |
ADJUSTED EARNINGS (LOSS) (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||||||||
(In millions, Per-share amounts in dollars) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Earnings | EPS | Earnings | EPS | Earnings | EPS | Earnings | EPS | ||||||||||||||||||||||
Earnings (loss) from continuing operations (GAAP) | $ | 1,589 | $ | 1.44 | $ | 1,680 | $ | 1.53 | $ | 8,769 | $ | 7.98 | $ | (1,097) | $ | (1.00) | |||||||||||||
Insurance earnings (loss) (pre-tax) | 99 | 0.09 | (59) | (0.05) | 334 | 0.30 | 210 | 0.19 | |||||||||||||||||||||
Tax effect on Insurance earnings (loss) | (20) | (0.02) | 9 | 0.01 | (74) | (0.07) | (52) | (0.05) | |||||||||||||||||||||
Less: Insurance earnings (loss) (net of tax) | 78 | 0.07 | (49) | (0.05) | 260 | 0.24 | 159 | 0.15 | |||||||||||||||||||||
Earnings (loss) excluding Insurance (Non-GAAP) | $ | 1,511 | $ | 1.37 | $ | 1,730 | $ | 1.58 | $ | 8,509 | $ | 7.74 | $ | (1,255) | $ | (1.15) | |||||||||||||
Non-operating benefit (cost) income (pre-tax) (GAAP) | 402 | 0.37 | 107 | 0.10 | 1,585 | 1.44 | 409 | 0.37 | |||||||||||||||||||||
Tax effect on non-operating benefit (cost) income | (84) | (0.08) | (22) | (0.02) | (333) | (0.30) | (86) | (0.08) | |||||||||||||||||||||
Less: Non-operating benefit (cost) income (net of tax) | 317 | 0.29 | 85 | 0.08 | 1,252 | 1.14 | 323 | 0.30 | |||||||||||||||||||||
Gains (losses) on purchases and sales of business interests (pre-tax) | 4 | — | 17 | 0.02 | (9) | (0.01) | 45 | 0.04 | |||||||||||||||||||||
Tax effect on gains (losses) on purchases and sales of business interests | (1) | — | 1 | — | (24) | (0.02) | 57 | 0.05 | |||||||||||||||||||||
Less: Gains (losses) on purchases and sales of business interests (net of tax) | 3 | — | 18 | 0.02 | (32) | (0.03) | 102 | 0.09 | |||||||||||||||||||||
Gains (losses) on retained and sold ownership interests and other equity securities (pre-tax) | 621 | 0.56 | 1,935 | 1.76 | 5,773 | 5.25 | 76 | 0.07 | |||||||||||||||||||||
Tax effect on gains (losses) on retained and sold ownership interests and other equity securities(a)(b) | — | — | (3) | — | 1 | — | (17) | (0.02) | |||||||||||||||||||||
Less: Gains (losses) on retained and sold ownership interests and other equity securities (net of tax) | 621 | 0.56 | 1,933 | 1.76 | 5,774 | 5.26 | 58 | 0.05 | |||||||||||||||||||||
Restructuring & other (pre-tax) | (241) | (0.22) | (633) | (0.58) | (679) | (0.62) | (806) | (0.74) | |||||||||||||||||||||
Tax effect on restructuring & other | 51 | 0.05 | 139 | 0.13 | 143 | 0.13 | 176 | 0.16 | |||||||||||||||||||||
Less: Restructuring & other (net of tax) | (190) | (0.17) | (494) | (0.45) | (536) | (0.49) | (630) | (0.58) | |||||||||||||||||||||
Debt extinguishment costs (pre-tax) | — | — | (465) | (0.42) | — | — | (465) | (0.42) | |||||||||||||||||||||
Tax effect on debt extinguishment costs | — | — | 68 | 0.06 | — | — | 68 | 0.06 | |||||||||||||||||||||
Less: Debt extinguishment costs (net of tax) | — | — | (397) | (0.36) | — | — | (397) | (0.36) | |||||||||||||||||||||
Separation costs (pre-tax) | (320) | (0.29) | (296) | (0.27) | (978) | (0.89) | (715) | (0.65) | |||||||||||||||||||||
Tax effect on separation costs | (59) | (0.05) | (7) | (0.01) | 197 | 0.18 | 23 | 0.02 | |||||||||||||||||||||
Less: Separation costs (net of tax) | (378) | (0.34) | (304) | (0.28) | (781) | (0.71) | (692) | (0.63) | |||||||||||||||||||||
Steam asset sale impairment (pre-tax) | — | — | 1 | — | — | — | (824) | (0.75) | |||||||||||||||||||||
Tax effect on Steam asset sale impairment | — | — | — | — | — | — | 84 | 0.08 | |||||||||||||||||||||
Less: Steam asset sale impairment (net of tax) | — | — | — | — | — | — | (740) | (0.68) | |||||||||||||||||||||
Russia and Ukraine charges (pre-tax) | — | — | — | — | (190) | (0.17) | (263) | (0.24) | |||||||||||||||||||||
Tax effect on Russia and Ukraine charges | — | — | — | — | (5) | — | 15 | 0.01 | |||||||||||||||||||||
Less: Russia and Ukraine charges (net of tax) | — | — | — | — | (195) | (0.18) | (248) | (0.23) | |||||||||||||||||||||
Less: Excise tax and accretion of preferred share redemption | — | — | — | — | (58) | (0.05) | 4 | — | |||||||||||||||||||||
Less: U.S. and foreign tax law change enactment | — | — | 163 | 0.15 | — | — | 126 | 0.11 | |||||||||||||||||||||
Adjusted earnings (loss) (Non-GAAP) | $ | 1,138 | $ | 1.03 | $ | 725 | $ | 0.66 | $ | 3,085 | $ | 2.81 | $ | 839 | $ | 0.77 | |||||||||||||
(a) Includes tax benefits available to offset the tax on gains (losses) on 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 cost in Adjusted earnings* provides management and investors a useful measure to evaluate the performance of the total company and increases period-to-period comparability. We also use Adjusted EPS* as a performance metric at the company level for our annual executive incentive plan for 2023. |
FREE CASH FLOWS (FCF) (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(In millions) | 2023 | 2022 | V$ | 2023 | 2022 | V$ | |||||||||||||||||
CFOA (GAAP) | $ | 3,216 | $ | 3,664 | $ | (448) | $ | 5,570 | $ | 4,043 | $ | 1,526 | |||||||||||
Less: Insurance CFOA | 67 | 88 | 191 | 136 | |||||||||||||||||||
CFOA excluding Insurance (Non-GAAP) | $ | 3,149 | $ | 3,576 | $ | (427) | $ | 5,378 | $ | 3,907 | $ | 1,471 | |||||||||||
Add: gross additions to property, plant and equipment and internal-use software | (531) | (373) | (1,595) | (1,174) | |||||||||||||||||||
Less: separation cash expenditures | (308) | (86) | (1,060) | (158) | |||||||||||||||||||
Less: Corporate restructuring cash expenditures | (49) | (38) | (177) | (38) | |||||||||||||||||||
Less: taxes related to business sales | 15 | (10) | (130) | (129) | |||||||||||||||||||
Free cash flows (Non-GAAP) | $ | 2,961 | $ | 3,338 | $ | (377) | $ | 5,150 | $ | 3,059 | $ | 2,092 | |||||||||||
We believe investors may find it useful to compare free cash flows* performance without the effects of CFOA related to our run-off Insurance business, separation cash expenditures, Corporate restructuring cash expenditures (associated with the separation-related program announced in October 2022) and taxes related to business sales. We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flows. |
2024 GUIDANCE: FIRST QUARTER 2024 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 2024 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 GE HealthCare 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. |
2024 GUIDANCE: GE VERNOVA 2024 FREE CASH FLOWS (FCF) (NON-GAAP) | |||||
(In billions) | 2024 | ||||
CFOA (GAAP) | $1.5 - $1.9 | ||||
Add: gross additions to property, plant and equipment and internal-use software | ~(0.8) | ||||
Free cash flows (Non-GAAP) | $0.7 - $1.1 | ||||
We believe investors may find it useful to compare free cash flows* performance including the effects of expenditures related to property, plant and equipment and internal-use software. We believe this measure will better allow management and investors to evaluate the amount of cash generated from our operations after reinvesting in the business. |
2024 GUIDANCE: 2024 GE AEROSPACE OPERATING PROFIT (NON-GAAP) | ||||||||||||||||||||
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for GE Aerospace operating profit* in 2024 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 GE HealthCare 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. |
2024 GUIDANCE: 2024 GE AEROSPACE FCF (NON-GAAP) | |||||||||||||||||
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for GE Aerospace free cash flows* in 2024 without unreasonable effort due to the uncertainty of timing for separation related cash expenditures. |