New York | 001-00035 | 14-0689340 | |||||||||||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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5 Necco Street | Boston, | MA | 02210 | ||||||||||||||||||||
(Address of principal executive offices) | (Zip Code) | ||||||||||||||||||||||
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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Common stock, par value $0.01 per share |
GE |
New York Stock Exchange |
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1.250% Notes due 2023 |
GE 23E |
New York Stock Exchange |
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0.875% Notes due 2025 |
GE 25 |
New York Stock Exchange |
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1.875% Notes due 2027 |
GE 27E |
New York Stock Exchange |
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1.500% Notes due 2029 |
GE 29 |
New York Stock Exchange |
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7 1/2% Guaranteed Subordinated Notes due 2035 |
GE /35 |
New York Stock Exchange |
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2.125% Notes due 2037 |
GE 37 |
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). | ||||||||
Emerging growth company | ☐ | |||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. | ☐ |
General Electric Company | |||||||||||
(Registrant) |
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Date: January 24, 2023 |
/s/ Thomas S. Timko | ||||||||||
Thomas S. Timko
Vice President, Chief Accounting Officer and Controller
Principal Accounting Officer
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Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
Dollars in millions; per-share amounts in dollars, diluted | 2022 | 2021 | Year on Year | 2022 | 2021 | Year on Year | |||||||||||||||||
GAAP Metrics | |||||||||||||||||||||||
Cash from Operating Activities (CFOA) | $4,571 | $2,415 | 89 | % | $5,864 | $888 | F | ||||||||||||||||
Continuing EPS | 1.99 | (3.24) | F | 0.53 | (3.25) | F | |||||||||||||||||
Net EPS | 1.93 | (3.55) | F | (0.05) | (6.16) | F | |||||||||||||||||
Total Revenues | 21,786 | 20,303 | 7 | % | 76,555 | 74,196 | 3 | % | |||||||||||||||
Profit Margin | 10.3 | % | (17.1) | % | 2,740 bps | 1.8 | % | (5.0) | % | 680 bps | |||||||||||||
Non-GAAP Metrics | |||||||||||||||||||||||
Free Cash Flow (FCF)-a) |
$4,286 | $3,708 | 16 | % | $4,758 | $1,889 | F | ||||||||||||||||
Adjusted EPS-b) |
1.24 | 0.82 | 51 | % | 2.62 | 1.71 | 53 | % | |||||||||||||||
Organic Revenues | 21,713 | 19,525 | 11 | % | 75,440 | 70,989 | 6 | % | |||||||||||||||
Adjusted Profit-c) |
2,162 | 1,575 | 37 | % | 5,835 | 4,608 | 27 | % | |||||||||||||||
Adjusted Profit Margin-c) |
10.3 | % | 8.1 | % | 220 bps | 7.9 | % | 6.5 | % | 140 bps | |||||||||||||
Adjusted Organic Profit Margin | 10.6 | % | 7.7 | % | 290 bps | 8.0 | % | 6.4 | % | 160 bps |
2022 Performance
GAAP, excluding
GE HealthCare results
|
2022 Performance
Non-GAAP, excluding
GE HealthCare results
|
2023 Outlook
Non-GAAP
|
||||||||||||||||||
Revenue growth |
+3% |
Organic revenue growth* |
+6% |
High single-digits |
||||||||||||||||
Continuing EPS |
$(1.11) |
Adjusted EPS* |
$0.77 |
$1.60 - $2.00 |
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Cash from Operating Activities |
$4.0 billion |
Free cash flow* |
$3.1 billion |
$3.4 - $4.2 billion |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | Year on Year | 2022 | 2021 | Year on Year | |||||||||||||||||
Orders | $9,682 | $7,705 | 26 | % | $31,106 | $25,589 | 22 | % | |||||||||||||||
Revenues | 7,615 | 6,080 | 25 | % | 26,050 | 21,310 | 22 | % | |||||||||||||||
Segment Profit/(Loss) | 1,434 | 1,218 | 18 | % | 4,775 | 2,882 | 66 | % | |||||||||||||||
Segment Profit/(Loss) Margin | 18.8 | % | 20.0 | % | (120) bps | 18.3 | % | 13.5 | % | 480 bps |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | Year on Year | 2022 | 2021 | Year on Year | |||||||||||||||||
Orders | $5,029 | $4,851 | 4 | % | $14,657 | $18,163 | (19) | % | |||||||||||||||
Revenues | 3,413 | 4,192 | (19) | % | 12,977 | 15,697 | (17) | % | |||||||||||||||
Segment Profit/(Loss) | (454) | (312) | (46) | % | (2,240) | (795) | U | ||||||||||||||||
Segment Profit/(Loss) Margin | (13.3) | % | (7.4) | % | (590) bps | (17.3) | % | (5.1) | % | (1,220) bps |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | Year on Year | 2022 | 2021 | Year on Year | |||||||||||||||||
Orders | $5,442 | $4,306 | 26 | % | $17,826 | $16,412 | 9 | % | |||||||||||||||
Revenues | 5,030 | 4,661 | 8 | % | 16,262 | 16,903 | (4) | % | |||||||||||||||
Segment Profit/(Loss) | 692 | 309 | F | 1,217 | 726 | 68 | % | ||||||||||||||||
Segment Profit/(Loss) Margin | 13.8 | % | 6.6 | % | 720 bps | 7.5 | % | 4.3 | % | 320 bps |
Three months ended December 31 | Twelve months ended December 31 | ||||||||||||||||||||||
(in millions) | 2022 | 2021 | Year on Year | 2022 | 2021 | Year on Year | |||||||||||||||||
Orders | $5,281 | $5,303 | — | % | $19,862 | $19,596 | 1 | % | |||||||||||||||
Revenues | 4,966 | 4,625 | 7 | % | 18,461 | 17,725 | 4 | % | |||||||||||||||
Segment Profit/(Loss) | 804 | 762 | 6 | % | 2,705 | 2,966 | (9) | % | |||||||||||||||
Segment Profit/(Loss) Margin | 16.2 | % | 16.5 | % | (30) bps | 14.7 | % | 16.7 | % | (200) 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 |
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2022 | 2021 | V% | 2022 | 2021 | V% | ||||||||||||||||||||||||||||||
Sales of equipment and services | $ | 21,011 | $ | 19,493 | 8 | % | $ | 73,602 | $ | 71,090 | 4 | % | |||||||||||||||||||||||
Insurance revenues | 775 | 811 | 2,954 | 3,106 | |||||||||||||||||||||||||||||||
Total revenues | 21,786 | 20,303 | 7 | % | 76,555 | 74,196 | 3 | % | |||||||||||||||||||||||||||
Cost of sales | 15,467 | 14,338 | 55,535 | 53,896 | |||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 3,543 | 3,213 | 12,781 | 11,716 | |||||||||||||||||||||||||||||||
Separation costs | 419 | — | 973 | — | |||||||||||||||||||||||||||||||
Research and development | 789 | 705 | 2,813 | 2,497 | |||||||||||||||||||||||||||||||
Interest and other financial charges | 416 | 426 | 1,607 | 1,876 | |||||||||||||||||||||||||||||||
Debt extinguishment costs | 465 | 5,108 | 465 | 6,524 | |||||||||||||||||||||||||||||||
Insurance losses, annuity benefits and other costs | 759 | 637 | 2,734 | 2,410 | |||||||||||||||||||||||||||||||
Non-operating benefit cost (income) | (136) | 408 | (532) | 1,782 | |||||||||||||||||||||||||||||||
Total costs and expenses | 21,721 | 24,836 | (13) | % | 76,375 | 80,702 | (5) | % | |||||||||||||||||||||||||||
Other income (loss) | 2,172 | 1,066 | 1,231 | 2,823 | |||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations before income taxes | 2,237 | (3,467) | F | 1,412 | (3,683) | F | |||||||||||||||||||||||||||||
Benefit (provision) for income taxes | 65 | (37) | (476) | 286 | |||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | 2,302 | (3,504) | F | 936 | (3,396) | F | |||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of taxes | (64) | (339) | (644) | (3,195) | |||||||||||||||||||||||||||||||
Net earnings (loss) | 2,238 | (3,843) | F | 292 | (6,591) | F | |||||||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests | 16 | 1 | 67 | (71) | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to the Company | 2,222 | (3,843) | F | 225 | (6,520) | F | |||||||||||||||||||||||||||||
Preferred stock dividends | (97) | (56) | (289) | (237) | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | 2,125 | $ | (3,900) | F | $ | (64) | $ | (6,757) | 99 | % | ||||||||||||||||||||||||
Amounts attributable to GE common shareholders: | |||||||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations | $ | 2,302 | $ | (3,504) | F | $ | 936 | $ | (3,396) | F | |||||||||||||||||||||||||
Less net earnings (loss) attributable to noncontrolling interests, continuing operations | 16 | 1 | 67 | (71) | |||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to the Company | 2,286 | (3,504) | F | 869 | (3,325) | F | |||||||||||||||||||||||||||||
Preferred stock dividends | (97) | (56) | (289) | (237) | |||||||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to GE common shareholders | 2,190 | (3,561) | F | 581 | (3,562) | F | |||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations attributable to GE common shareholders | (64) | (339) | (644) | (3,195) | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders | $ | 2,125 | $ | (3,900) | F | $ | (64) | $ | (6,757) | 99 | % | ||||||||||||||||||||||||
Per-share amounts - earnings (loss) from continuing operations | |||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 1.99 | $ | (3.24) | F | $ | 0.53 | $ | (3.25) | F | |||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 2.01 | $ | (3.24) | F | $ | 0.53 | $ | (3.25) | F | |||||||||||||||||||||||||
Per-share amounts - net earnings (loss) | |||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | 1.93 | $ | (3.55) | F | $ | (0.05) | $ | (6.16) | 99 | % | ||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 1.95 | $ | (3.55) | F | $ | (0.06) | $ | (6.16) | 99 | % | ||||||||||||||||||||||||
Total average equivalent shares | |||||||||||||||||||||||||||||||||||
Diluted | 1,097 | 1,099 | — | % | 1,101 | 1,098 | — | % | |||||||||||||||||||||||||||
Basic | 1,091 | 1,099 | (1) | % | 1,096 | 1,098 | — | % | |||||||||||||||||||||||||||
GENERAL ELECTRIC COMPANY | |||||||||||||||||||||||||||||||||||
SUMMARY OF REPORTABLE SEGMENTS (UNAUDITED) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||||||||||||||
(In millions) | 2022 | 2021 | V% | 2022 | 2021 | V% | |||||||||||||||||||||||||||||
Aerospace | $ | 7,615 | $ | 6,080 | 25 | % | $ | 26,050 | $ | 21,310 | 22 | % | |||||||||||||||||||||||
Renewable Energy | 3,413 | 4,192 | (19) | % | 12,977 | 15,697 | (17) | % | |||||||||||||||||||||||||||
Power | 5,030 | 4,661 | 8 | % | 16,262 | 16,903 | (4) | % | |||||||||||||||||||||||||||
HealthCare | 4,966 | 4,625 | 7 | % | 18,461 | 17,725 | 4 | % | |||||||||||||||||||||||||||
Total segment revenues(a) | 21,024 | 19,558 | 7 | % | 73,749 | 71,635 | 3 | % | |||||||||||||||||||||||||||
Corporate | 762 | 745 | 2 | % | 2,806 | 2,561 | 10 | % | |||||||||||||||||||||||||||
Total revenues | $ | 21,786 | $ | 20,303 | 7 | % | $ | 76,555 | $ | 74,196 | 3 | % | |||||||||||||||||||||||
Aerospace | $ | 1,434 | $ | 1,218 | 18 | % | $ | 4,775 | $ | 2,882 | 66 | % | |||||||||||||||||||||||
Renewable Energy | (454) | (312) | (46) | % | (2,240) | (795) | U | ||||||||||||||||||||||||||||
Power | 692 | 309 | F | 1,217 | 726 | 68 | % | ||||||||||||||||||||||||||||
HealthCare | 804 | 762 | 6 | % | 2,705 | 2,966 | (9) | % | |||||||||||||||||||||||||||
Total segment profit (loss)(a) | 2,476 | 1,979 | 25 | % | 6,456 | 5,778 | 12 | % | |||||||||||||||||||||||||||
Corporate(b) | 533 | 531 | — | % | (3,413) | 892 | U | ||||||||||||||||||||||||||||
Interest and other financial charges | (407) | (410) | 1 | % | (1,552) | (1,813) | 14 | % | |||||||||||||||||||||||||||
Debt extinguishment costs | (465) | (5,108) | 91 | % | (465) | (6,524) | 93 | % | |||||||||||||||||||||||||||
Non-operating benefit income (cost) | 136 | (408) | F | 532 | (1,782) | F | |||||||||||||||||||||||||||||
Benefit (provision) for income taxes | 12 | (88) | F | (689) | 124 | U | |||||||||||||||||||||||||||||
Preferred stock dividends | (97) | (56) | (73) | % | (289) | (237) | (22) | % | |||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to GE common shareholders |
2,190 | (3,561) | F | 581 | (3,562) | F | |||||||||||||||||||||||||||||
Earnings (loss) from discontinued operations attributable to GE common shareholders | (64) | (339) | 81 | % | (644) | (3,195) | 80 | % | |||||||||||||||||||||||||||
Net earnings (loss) attributable to GE common shareholders |
$ | 2,125 | $ | (3,900) | F | $ | (64) | $ | (6,757) | 99 | % |
GENERAL ELECTRIC COMPANY STATEMENT OF FINANCIAL POSITION (UNAUDITED) | ||||||||||||||
(In millions) | December 31, 2022 | December 31, 2021 | ||||||||||||
Cash, cash equivalents and restricted cash(a)(b) | $ | 17,262 | $ | 15,770 | ||||||||||
Investment securities | 7,609 | 12,297 | ||||||||||||
Current receivables | 17,976 | 15,620 | ||||||||||||
Inventories, including deferred inventory costs | 17,403 | 15,847 | ||||||||||||
Current contract assets | 3,088 | 4,881 | ||||||||||||
All other current assets | 1,521 | 1,933 | ||||||||||||
Assets of businesses held for sale | 1,374 | — | ||||||||||||
Current assets | 66,234 | 66,348 | ||||||||||||
Investment securities | 36,048 | 42,209 | ||||||||||||
Property, plant and equipment – net | 14,478 | 15,609 | ||||||||||||
Goodwill | 25,798 | 26,182 | ||||||||||||
Other intangible assets – net | 7,625 | 9,330 | ||||||||||||
Contract and other deferred assets | 6,010 | 6,124 | ||||||||||||
All other assets | 16,998 | 19,040 | ||||||||||||
Deferred income taxes | 11,705 | 10,855 | ||||||||||||
Assets of discontinued operations | 2,892 | 3,177 | ||||||||||||
Total assets | $ | 187,788 | $ | 198,874 | ||||||||||
Short-term borrowings | $ | 3,757 | $ | 4,361 | ||||||||||
Accounts payable and equipment project payables | 18,644 | 16,243 | ||||||||||||
Progress collections and deferred income | 18,118 | 17,372 | ||||||||||||
All other current liabilities | 14,485 | 13,977 | ||||||||||||
Liabilities of businesses held for sale | 1,944 | — | ||||||||||||
Current liabilities | 56,947 | 51,953 | ||||||||||||
Deferred income | 2,006 | 1,989 | ||||||||||||
Long-term borrowings | 28,593 | 30,824 | ||||||||||||
Insurance liabilities and annuity benefits | 33,347 | 37,166 | ||||||||||||
Non-current compensation and benefits | 16,021 | 21,202 | ||||||||||||
All other liabilities | 12,154 | 13,240 | ||||||||||||
Liabilities of discontinued operations | 1,137 | 887 | ||||||||||||
GE shareholders’ equity | 36,366 | 40,310 | ||||||||||||
Noncontrolling interests | 1,216 | 1,302 | ||||||||||||
Total liabilities and equity | $ | 187,788 | $ | 198,874 |
ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) | |||||||||||||||||||||||||||||||||||
(In millions) | Revenues | Segment profit (loss) | Profit margin | ||||||||||||||||||||||||||||||||
Three months ended December 31 | 2022 | 2021 | V% | 2022 | 2021 | V% | 2022 | 2021 | V bps | ||||||||||||||||||||||||||
Aerospace (GAAP) | $ | 7,615 | $ | 6,080 | 25 | % | $ | 1,434 | $ | 1,218 | 18 | % | 18.8 | % | 20.0 | % | (120)bps | ||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (29) | (1) | 12 | (2) | |||||||||||||||||||||||||||||||
Aerospace organic (Non-GAAP) | $ | 7,645 | $ | 6,082 | 26 | % | $ | 1,421 | $ | 1,221 | 16 | % | 18.6 | % | 20.1 | % | (150)bps | ||||||||||||||||||
Renewable Energy (GAAP) | $ | 3,413 | $ | 4,192 | (19) | % | $ | (454) | $ | (312) | (46) | % | (13.3) | % | (7.4) | % | (590)bps | ||||||||||||||||||
Less: acquisitions | — | (12) | — | (4) | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (260) | 2 | (18) | 81 | |||||||||||||||||||||||||||||||
Renewable Energy organic (Non-GAAP) | $ | 3,673 | $ | 4,202 | (13) | % | $ | (435) | $ | (388) | (12) | % | (11.8) | % | (9.2) | % | (260)bps | ||||||||||||||||||
Power (GAAP) | $ | 5,030 | $ | 4,661 | 8 | % | $ | 692 | $ | 309 | F | 13.8 | % | 6.6 | % | 720bps | |||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | 26 | — | (2) | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (182) | (1) | (54) | (24) | |||||||||||||||||||||||||||||||
Power organic (Non-GAAP) | $ | 5,212 | $ | 4,636 | 12 | % | $ | 746 | $ | 336 | F | 14.3 | % | 7.2 | % | 710bps | |||||||||||||||||||
HealthCare (GAAP) | $ | 4,966 | $ | 4,625 | 7 | % | $ | 804 | $ | 762 | 6 | % | 16.2 | % | 16.5 | % | (30)bps | ||||||||||||||||||
Less: acquisitions | 63 | — | 2 | (11) | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (288) | — | (79) | 3 | |||||||||||||||||||||||||||||||
HealthCare organic (Non-GAAP) | $ | 5,191 | $ | 4,625 | 12 | % | $ | 881 | $ | 770 | 14 | % | 17.0 | % | 16.6 | % | 40bps |
ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) | |||||||||||||||||||||||||||||||||||
(In millions) | Revenue | Segment profit (loss) | Profit margin | ||||||||||||||||||||||||||||||||
Twelve months ended December 31 | 2022 | 2021 | V% | 2022 | 2021 | V% | 2022 | 2021 | V bps | ||||||||||||||||||||||||||
Aerospace (GAAP) | $ | 26,050 | $ | 21,310 | 22 | % | $ | 4,775 | $ | 2,882 | 66 | % | 18.3 | % | 13.5 | % | 480bps | ||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (80) | — | 101 | 3 | |||||||||||||||||||||||||||||||
Aerospace organic (Non-GAAP) | $ | 26,129 | $ | 21,311 | 23 | % | $ | 4,674 | $ | 2,879 | 62 | % | 17.9 | % | 13.5 | % | 440bps | ||||||||||||||||||
Renewable Energy (GAAP) | $ | 12,977 | $ | 15,697 | (17) | % | $ | (2,240) | $ | (795) | U | (17.3) | % | (5.1) | % | (1,220)bps | |||||||||||||||||||
Less: acquisitions | — | (55) | — | (17) | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (702) | 2 | 55 | 52 | |||||||||||||||||||||||||||||||
Renewable Energy organic (Non-GAAP) | $ | 13,678 | $ | 15,749 | (13) | % | $ | (2,295) | $ | (831) | U | (16.8) | % | (5.3) | % | (1,150)bps | |||||||||||||||||||
Power (GAAP) | $ | 16,262 | $ | 16,903 | (4) | % | $ | 1,217 | $ | 726 | 68 | % | 7.5 | % | 4.3 | % | 320bps | ||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | 502 | — | (2) | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (503) | (5) | (78) | (40) | |||||||||||||||||||||||||||||||
Power organic (Non-GAAP) | $ | 16,765 | $ | 16,405 | 2 | % | $ | 1,295 | $ | 768 | 69 | % | 7.7 | % | 4.7 | % | 300bps | ||||||||||||||||||
HealthCare (GAAP) | $ | 18,461 | $ | 17,725 | 4 | % | $ | 2,705 | $ | 2,966 | (9) | % | 14.7 | % | 16.7 | % | (200)bps | ||||||||||||||||||
Less: acquisitions | 238 | — | (54) | (16) | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (772) | — | (169) | (14) | |||||||||||||||||||||||||||||||
HealthCare organic (Non-GAAP) | $ | 18,994 | $ | 17,725 | 7 | % | $ | 2,928 | $ | 2,995 | (2) | % | 15.4 | % | 16.9 | % | (150)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) | 2022 | 2021 | V% | 2022 | 2021 | V% | |||||||||||||||||
Total revenues (GAAP) | $ | 21,786 | $ | 20,303 | 7 | % | $ | 76,555 | $ | 74,196 | 3 | % | |||||||||||
Less: Insurance revenues | 775 | 811 | 2,954 | 3,106 | |||||||||||||||||||
Adjusted revenues (Non-GAAP) | $ | 21,011 | $ | 19,492 | 8 | % | $ | 73,602 | $ | 71,090 | 4 | % | |||||||||||
Less: acquisitions | 64 | (12) | 241 | (55) | |||||||||||||||||||
Less: business dispositions | — | (21) | — | 158 | |||||||||||||||||||
Less: foreign currency effect | (765) | — | (2,079) | (3) | |||||||||||||||||||
Organic revenues (Non-GAAP) | $ | 21,713 | $ | 19,525 | 11 | % | $ | 75,440 | $ | 70,989 | 6 | % | |||||||||||
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. |
POWER SERVICES ORGANIC REVENUES (NON-GAAP) | Three months ended December 31 | ||||||||||
(In millions) | 2022 | 2021 | V% | ||||||||
Power services revenues (GAAP) | $ | 3,409 | $ | 3,307 | 3 | % | |||||
Less: acquisitions | — | — | |||||||||
Less: business dispositions | — | 26 | |||||||||
Less: foreign currency effect | (79) | — | |||||||||
Power services organic revenues (Non-GAAP) | $ | 3,487 | $ | 3,281 | 6 | % | |||||
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 PROFIT AND PROFIT MARGIN (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(In millions) |
2022 | 2021 | V% | 2022 | 2021 | V% | |||||||||||||||||
Total revenues (GAAP) | $ | 21,786 | $ | 20,303 | 7 | % | $ | 76,555 | $ | 74,196 | 3 | % | |||||||||||
Less: Insurance revenues | 775 | 811 | 2,954 | 3,106 | |||||||||||||||||||
Adjusted revenues (Non-GAAP) | $ | 21,011 | $ | 19,492 | 8 | % | $ | 73,602 | $ | 71,090 | 4 | % | |||||||||||
Total costs and expenses (GAAP) | $ | 21,721 | $ | 24,836 | (13) | % | $ | 76,375 | $ | 80,702 | (5) | % | |||||||||||
Less: Insurance cost and expenses | 802 | 671 | 2,894 | 2,540 | |||||||||||||||||||
Less: interest and other financial charges | 407 | 410 | 1,552 | 1,813 | |||||||||||||||||||
Less: non-operating benefit cost (income) | (136) | 408 | (532) | 1,782 | |||||||||||||||||||
Less: restructuring & other | 693 | 54 | 949 | 455 | |||||||||||||||||||
Less: debt extinguishment costs | 465 | 5,108 | 465 | 6,524 | |||||||||||||||||||
Less: separation costs | 419 | — | 973 | — | |||||||||||||||||||
Less: Steam asset sale impairment | (1) | — | 824 | — | |||||||||||||||||||
Less: Russia and Ukraine charges | — | — | 263 | — | |||||||||||||||||||
Add: noncontrolling interests | 16 | 1 | 67 | (71) | |||||||||||||||||||
Add: EFS benefit from taxes | (53) | (51) | (213) | (162) | |||||||||||||||||||
Adjusted costs (Non-GAAP) | $ | 19,035 | $ | 18,135 | 5 | % | $ | 68,840 | $ | 67,354 | 2% | ||||||||||||
Other income (loss) (GAAP) | $ | 2,172 | $ | 1,066 | F | $ | 1,231 | $ | 2,823 | (56) | % | ||||||||||||
Less: gains (losses) on equity securities | 1,935 | 665 | 76 | 1,921 | |||||||||||||||||||
Less: restructuring & other | 28 | 68 | 31 | 75 | |||||||||||||||||||
Less: gains (losses) on purchases and sales of business interests | 24 | 115 | 51 | (44) | |||||||||||||||||||
Adjusted other income (loss) (Non-GAAP) | $ | 186 | $ | 218 | (15) | % | $ | 1,074 | $ | 871 | 23 | % | |||||||||||
Profit (loss) (GAAP) | $ | 2,237 | $ | (3,467) | F | $ | 1,412 | $ | (3,683) | F | |||||||||||||
Profit (loss) margin (GAAP) | 10.3 | % | (17.1) | % | 2,740bps | 1.8 | % | (5.0) | % | 680bps | |||||||||||||
Adjusted profit (loss) (Non-GAAP) | $ | 2,162 | $ | 1,575 | 37 | % | $ | 5,835 | $ | 4,608 | 27 | % | |||||||||||
Adjusted profit (loss) margin (Non-GAAP) | 10.3 | % | 8.1 | % | 220bps | 7.9 | % | 6.5 | % | 140bps | |||||||||||||
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) |
2022 | 2021 | V% | 2022 | 2021 | V% | |||||||||||||||||
Adjusted profit (loss) (Non-GAAP) | $ | 2,162 | $ | 1,575 | 37 | % | $ | 5,835 | $ | 4,608 | 27 | % | |||||||||||
Less: acquisitions | 2 | (15) | (72) | (32) | |||||||||||||||||||
Less: business dispositions | — | 1 | — | 14 | |||||||||||||||||||
Less: foreign currency effect | (139) | 90 | (104) | 70 | |||||||||||||||||||
Adjusted organic profit (loss) (Non-GAAP) | $ | 2,299 | $ | 1,498 | 53 | % | $ | 6,011 | $ | 4,556 | 32 | % | |||||||||||
Adjusted profit (loss) margin (Non-GAAP) | 10.3 | % | 8.1 | % | 220 | bps | 7.9 | % | 6.5 | % | 140bps | ||||||||||||
Adjusted organic profit (loss) margin (Non-GAAP) | 10.6 | % | 7.7 | % | 290 | bps | 8.0 | % | 6.4 | % | 160bps | ||||||||||||
We believe Adjusted organic profit* provides 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) | 2022 | 2021 | V% | 2022 | 2021 | V% | |||||||||||||||||
Earnings (loss) from continuing operations (GAAP) | $ | 2,178 | $ | (3,561) | F | $ | 584 | $ | (3,571) | F | |||||||||||||
Insurance earnings (loss) (pre-tax) | (26) | 140 | 65 | 570 | |||||||||||||||||||
Tax effect on Insurance earnings (loss) | 3 | (30) | (21) | (126) | |||||||||||||||||||
Less: Insurance earnings (loss) (net of tax) | (24) | 110 | 44 | 444 | |||||||||||||||||||
Earnings (loss) excluding Insurance (Non-GAAP) | $ | 2,202 | $ | (3,670) | F | $ | 540 | $ | (4,015) | F | |||||||||||||
Non-operating benefit (cost) income (pre-tax) (GAAP) | 136 | (408) | 532 | (1,782) | |||||||||||||||||||
Tax effect on non-operating benefit (cost) income | (29) | 86 | (112) | 374 | |||||||||||||||||||
Less: Non-operating benefit (cost) income (net of tax) | 107 | (323) | 420 | (1,408) | |||||||||||||||||||
Gains (losses) on purchases and sales of business interests (pre-tax) | 24 | 115 | 51 | (44) | |||||||||||||||||||
Tax effect on gains (losses) on purchases and sales of business interests | (1) | (24) | 67 | 6 | |||||||||||||||||||
Less: Gains (losses) on purchases and sales of business interests (net of tax) | 23 | 91 | 118 | (37) | |||||||||||||||||||
Gains (losses) on equity securities (pre-tax) | 1,935 | 665 | 76 | 1,921 | |||||||||||||||||||
Tax effect on gains (losses) on equity securities(a)(b) | (3) | (27) | (17) | 128 | |||||||||||||||||||
Less: Gains (losses) on equity securities (net of tax) | 1,933 | 638 | 58 | 2,049 | |||||||||||||||||||
Restructuring & other (pre-tax) | (665) | 14 | (918) | (380) | |||||||||||||||||||
Tax effect on restructuring & other | 145 | (1) | 199 | 35 | |||||||||||||||||||
Less: Restructuring & other (net of tax) | (520) | 14 | (719) | (346) | |||||||||||||||||||
Debt extinguishment costs (pre-tax) | (465) | (5,108) | (465) | (6,524) | |||||||||||||||||||
Tax effect on debt extinguishment costs | 68 | 133 | 68 | 430 | |||||||||||||||||||
Less: Debt extinguishment costs (net of tax) | (397) | (4,975) | (397) | (6,094) | |||||||||||||||||||
Separation costs (pre-tax) | (419) | — | (973) | — | |||||||||||||||||||
Tax effect on separation costs | 18 | — | 77 | — | |||||||||||||||||||
Less: Separation costs (net of tax) | (401) | — | (896) | — | |||||||||||||||||||
Steam asset sale impairment (pre-tax) | 1 | — | (824) | — | |||||||||||||||||||
Tax effect on Steam asset sale impairment | — | — | 84 | — | |||||||||||||||||||
Less: Steam asset sale impairment (net of tax) | — | — | (740) | — | |||||||||||||||||||
Russia and Ukraine charges (pre-tax) | — | — | (263) | — | |||||||||||||||||||
Tax effect on Russia and Ukraine charges | — | — | 15 | — | |||||||||||||||||||
Less: Russia and Ukraine charges (net of tax) | — | — | (248) | — | |||||||||||||||||||
Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) | — | — | — | (9) | |||||||||||||||||||
Less: Accretion of preferred share repurchase (pre-tax and net of tax) | — | — | 3 | — | |||||||||||||||||||
Less: U.S. and foreign tax law change enactment | 95 | — | 58 | 8 | |||||||||||||||||||
Less: Tax loss related to GECAS transaction | — | (11) | — | (54) | |||||||||||||||||||
Adjusted earnings (loss) (Non-GAAP) | $ | 1,360 | $ | 896 | 52 | % | $ | 2,881 | $ | 1,876 | 54 | % | |||||||||||
(a) Includes tax benefits available to offset the tax on gains (losses) on 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) | 2022 | 2021 | V% | 2022 | 2021 | V% | |||||||||||||||||
Earnings (loss) per share from continuing operations (GAAP) | $ | 1.99 | $ | (3.24) | F | $ | 0.53 | $ | (3.25) | F | |||||||||||||
Insurance earnings (loss) (pre-tax) | (0.02) | 0.13 | 0.06 | 0.52 | |||||||||||||||||||
Tax effect on Insurance earnings (loss) | — | (0.03) | (0.02) | (0.11) | |||||||||||||||||||
Less: Insurance earnings (loss) (net of tax) | (0.02) | 0.10 | 0.04 | 0.40 | |||||||||||||||||||
Earnings (loss) per share excluding Insurance (Non-GAAP) | $ | 2.01 | $ | (3.34) | F | $ | 0.49 | $ | (3.66) | F | |||||||||||||
Non-operating benefit (cost) income (pre-tax) (GAAP) | 0.12 | (0.37) | 0.48 | (1.62) | |||||||||||||||||||
Tax effect on non-operating benefit (cost) income | (0.03) | 0.08 | (0.10) | 0.34 | |||||||||||||||||||
Less: Non-operating benefit (cost) income (net of tax) | 0.10 | (0.29) | 0.38 | (1.28) | |||||||||||||||||||
Gains (losses) on purchases and sales of business interests (pre-tax) | 0.02 | 0.10 | 0.05 | (0.04) | |||||||||||||||||||
Tax effect on gains (losses) on purchases and sales of business interests | — | (0.02) | 0.06 | 0.01 | |||||||||||||||||||
Less: Gains (losses) on purchases and sales of business interests (net of tax) | 0.02 | 0.08 | 0.11 | (0.03) | |||||||||||||||||||
Gains (losses) on equity securities (pre-tax) | 1.76 | 0.61 | 0.07 | 1.75 | |||||||||||||||||||
Tax effect on gains (losses) on equity securities(a)(b) | — | (0.02) | (0.02) | 0.12 | |||||||||||||||||||
Less: Gains (losses) on equity securities (net of tax) | 1.76 | 0.58 | 0.05 | 1.87 | |||||||||||||||||||
Restructuring & other (pre-tax) | (0.61) | 0.01 | (0.83) | (0.35) | |||||||||||||||||||
Tax effect on restructuring & other | 0.13 | — | 0.18 | 0.03 | |||||||||||||||||||
Less: Restructuring & other (net of tax) | (0.47) | 0.01 | (0.65) | (0.31) | |||||||||||||||||||
Debt extinguishment costs (pre-tax) | (0.42) | (4.65) | (0.42) | (5.94) | |||||||||||||||||||
Tax effect on debt extinguishment costs | 0.06 | 0.12 | 0.06 | 0.39 | |||||||||||||||||||
Less: Debt extinguishment costs (net of tax) | (0.36) | (4.53) | (0.36) | (5.55) | |||||||||||||||||||
Separation costs (pre-tax) | (0.38) | — | (0.88) | — | |||||||||||||||||||
Tax effect on separation costs | 0.02 | — | 0.07 | — | |||||||||||||||||||
Less: Separation costs (net of tax) | (0.37) | — | (0.81) | — | |||||||||||||||||||
Steam asset sale impairment (pre-tax) | — | — | (0.75) | — | |||||||||||||||||||
Tax effect on Steam asset sale impairment | — | — | 0.08 | — | |||||||||||||||||||
Less: Steam asset sale impairment (net of tax) | — | — | (0.67) | — | |||||||||||||||||||
Russia and Ukraine charges (pre-tax) | — | — | (0.24) | — | |||||||||||||||||||
Tax effect on Russia and Ukraine charges | — | — | 0.01 | — | |||||||||||||||||||
Less: Russia and Ukraine charges (net of tax) | — | — | (0.23) | — | |||||||||||||||||||
Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) | — | — | — | (0.01) | |||||||||||||||||||
Less: Accretion of preferred share repurchase (pre-tax and net of tax) | — | — | — | — | |||||||||||||||||||
Less: U.S. and foreign tax law change enactment | 0.09 | — | 0.05 | 0.01 | |||||||||||||||||||
Less: Tax loss related to GECAS transaction | — | (0.01) | — | (0.05) | |||||||||||||||||||
Adjusted earnings (loss) per share (Non-GAAP) | $ | 1.24 | $ | 0.82 | 51 | % | $ | 2.62 | $ | 1.71 | 53 | % | |||||||||||
(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 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 2022. |
FREE CASH FLOWS (FCF) (NON-GAAP) | Three months ended December 31 | Twelve months ended December 31 | |||||||||||||||||||||
(In millions) | 2022 | 2021 | V$ | 2022 | 2021 | V$ | |||||||||||||||||
CFOA (GAAP) | $ | 4,571 | $ | 2,415 | $ | 2,156 | $ | 5,864 | $ | 888 | $ | 4,976 | |||||||||||
Less: Insurance CFOA | 88 | 46 | 136 | 86 | |||||||||||||||||||
CFOA excluding Insurance (Non-GAAP) | $ | 4,483 | $ | 2,369 | $ | 2,114 | $ | 5,728 | $ | 802 | $ | 4,926 | |||||||||||
Add: gross additions to property, plant and equipment | (414) | (355) | (1,371) | (1,250) | |||||||||||||||||||
Add: gross additions to internal-use software | (35) | (33) | (113) | (111) | |||||||||||||||||||
Less: separation cash expenditures | (143) | — | (261) | — | |||||||||||||||||||
Less: Corporate restructuring cash expenditures | (38) | — | (38) | — | |||||||||||||||||||
Less: taxes related to business sales | (71) | — | (214) | (6) | |||||||||||||||||||
Less: CFOA impact from factoring programs discontinued in 2021 | — | (2,041) | — | (5,108) | |||||||||||||||||||
Less: CFOA impact from receivables factoring and supply chain finance eliminations | — | 314 | — | 2,666 | |||||||||||||||||||
Free cash flows (Non-GAAP) | $ | 4,286 | $ | 3,708 | $ | 578 | $ | 4,758 | $ | 1,889 | $ | 2,869 | |||||||||||
Less: prior period CFOA impact from factoring programs discontinued in 2021(a) | — | — | — | (739) | |||||||||||||||||||
Free cash flows excluding discontinued factoring (Non-GAAP) | $ | 4,286 | $ | 3,708 | $ | 578 | $ | 4,758 | $ | 2,628 | $ | 2,130 | |||||||||||
(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 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), taxes related to business sales and eliminations related to our receivables factoring and supply chain finance programs. We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flows. The CFOA impact from receivables factoring and supply chain finance eliminations represents activity related to those internal programs previously facilitated for our industrial segments by our Working Capital Solutions business. We completed the exit from all internal factoring and supply chain finance programs in 2021. |
CFOA (GAAP) AND FREE CASH FLOWS (FCF) BY SEGMENT (NON-GAAP) | ||||||||||||||||||||||||||||||||||||||
Twelve months ended December 31, 2022 |
Aerospace | Renewable Energy | Power | HealthCare | Corporate | Total | ||||||||||||||||||||||||||||||||
CFOA (GAAP) | $ | 5,514 | $ | (1,759) | $ | 2,078 | $ | 2,435 | $ | (2,404) | $ | 5,864 | ||||||||||||||||||||||||||
Less: Insurance CFOA | — | — | 136 | 136 | ||||||||||||||||||||||||||||||||||
CFOA excl. Insurance (Non-GAAP) | $ | 5,514 | $ | (1,759) | $ | 2,078 | $ | 2,435 | $ | (2,540) | $ | 5,728 | ||||||||||||||||||||||||||
Add: gross additions to property, plant and equipment | (543) | (275) | (210) | (310) | (34) | (1,371) | ||||||||||||||||||||||||||||||||
Add: gross additions to internal-use software | (81) | (7) | (18) | — | (7) | (113) | ||||||||||||||||||||||||||||||||
Less: Separation cash expenditures | — | — | — | — | (261) | (261) | ||||||||||||||||||||||||||||||||
Less: Corporate restructuring cash expenditures | — | — | — | — | (38) | (38) | ||||||||||||||||||||||||||||||||
Less: taxes related to business sales | — | — | — | — | (214) | (214) | ||||||||||||||||||||||||||||||||
Free cash flows (Non-GAAP) | $ | 4,890 | $ | (2,040) | $ | 1,850 | $ | 2,125 | $ | (2,068) | $ | 4,758 | ||||||||||||||||||||||||||
ORGANIC REVENUES EXCLUDING GE HEALTHCARE (NON-GAAP) | Twelve months ended December 31 | ||||||||||
(In millions) | 2022 | 2021 | V% | ||||||||
Total revenues excluding GE Healthcare (GAAP) | $ | 58,096 | $ | 56,474 | 3 | % | |||||
Less: Insurance revenues | 2,954 | 3,106 | |||||||||
Adjusted revenues excluding GE HealthCare (Non-GAAP) | $ | 55,143 | $ | 53,368 | 3 | % | |||||
Less: acquisitions | 2 | (55) | |||||||||
Less: business dispositions | — | 158 | |||||||||
Less: foreign currency effect | (1,307) | (2) | |||||||||
Organic revenues excluding GE HealthCare (Non-GAAP) | $ | 56,448 | $ | 53,267 | 6 | % | |||||
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. We are also presenting these measures excluding the results of GE HealthCare to provide investors with a relevant comparison for GE's future results following the GE HealthCare spin-off in January 2023. |
ADJUSTED EARNINGS AND EPS EXCLUDING GE HEALTHCARE (NON-GAAP) | Twelve months ended December 31 | |||||||
(In millions; per-share amounts in dollars) | 2022 | |||||||
Earnings | EPS | |||||||
Earnings (loss) from continuing operations excluding GE HealthCare (GAAP) | $ | (1,211) | $ | (1.11) | ||||
Insurance earnings (loss) (pre-tax) | 65 | 0.06 | ||||||
Tax effect on Insurance earnings (loss) | (21) | (0.02) | ||||||
Less: Insurance earnings (loss) (net of tax) | 44 | 0.04 | ||||||
Earnings (loss) per share excluding Insurance and GE HealthCare (Non-GAAP) | $ | (1,255) | $ | (1.15) | ||||
Non-operating benefit (cost) income (pre-tax) (GAAP) | 409 | 0.37 | ||||||
Tax effect on non-operating benefit (cost) income | (86) | (0.08) | ||||||
Less: Non-operating benefit (cost) income (net of tax) | 323 | 0.30 | ||||||
Gains (losses) on purchases and sales of business interests (pre-tax) | 45 | 0.04 | ||||||
Tax effect on gains (losses) on purchases and sales of business interests | 57 | 0.05 | ||||||
Less: Gains (losses) on purchases and sales of business interests (net of tax) | 102 | 0.09 | ||||||
Gains (losses) on equity securities (pre-tax) | 76 | 0.07 | ||||||
Tax effect on gains (losses) on equity securities(a)(b) | (17) | (0.02) | ||||||
Less: Gains (losses) on equity securities (net of tax) | 58 | 0.05 | ||||||
Restructuring & other (pre-tax) | (806) | (0.74) | ||||||
Tax effect on restructuring & other | 176 | 0.16 | ||||||
Less: Restructuring & other (net of tax) | (630) | (0.58) | ||||||
Debt extinguishment costs (pre-tax) | (465) | (0.42) | ||||||
Tax effect on debt extinguishment costs | 68 | 0.06 | ||||||
Less: Debt extinguishment costs (net of tax) | (397) | (0.36) | ||||||
Separation costs (pre-tax) | (715) | (0.65) | ||||||
Tax effect on separation costs | 23 | 0.02 | ||||||
Less: Separation costs (net of tax) | (692) | (0.63) | ||||||
Steam asset sale impairment (pre-tax) | (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) | (263) | (0.24) | ||||||
Tax effect on Russia and Ukraine charges | 15 | 0.01 | ||||||
Less: Russia and Ukraine charges (net of tax) | (248) | (0.23) | ||||||
Less: Accretion of preferred share repurchase (pre-tax and net of tax) | 3 | — | ||||||
Less: U.S. and foreign tax law change enactment | 126 | 0.11 | ||||||
Adjusted earnings (loss) per share excluding GE HealthCare (Non-GAAP) | $ | 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 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 2022. We are also presenting these measures excluding the results of GE HealthCare to provide investors with a relevant comparison for GE's future results following the GE HealthCare spin-off in January 2023. |
FREE CASH FLOWS (FCF) EXCLUDING GE HEALTHCARE (NON-GAAP) | Twelve months ended December 31 | ||||
(In millions) | 2022 | ||||
CFOA excluding GE HealthCare (GAAP) | $ | 4,023 | |||
Less: Insurance CFOA | 136 | ||||
CFOA excluding Insurance and GE HealthCare (Non-GAAP) | $ | 3,887 | |||
Add: gross additions to property, plant and equipment | (1,061) | ||||
Add: gross additions to internal-use software | (113) | ||||
Less: separation cash expenditures | (178) | ||||
Less: Corporate restructuring cash expenditures | (38) | ||||
Less: taxes related to business sales | (129) | ||||
Free cash flows excluding GE HealthCare (Non-GAAP) | $ | 3,059 | |||
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), taxes related to business sales and eliminations related to our receivables factoring and supply chain finance programs. We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flows. The CFOA impact from receivables factoring and supply chain finance eliminations represents activity related to those internal programs previously facilitated for our industrial segments by our Working Capital Solutions business. We completed the exit from all internal factoring and supply chain finance programs in 2021. We are also presenting these measures excluding the results of GE HealthCare to provide investors with a relevant comparison for GE's future results following the GE HealthCare spin-off in January 2023. |
2023 OUTLOOK: 2023 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 2023 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, 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. |
2023 OUTLOOK: 2023 FCF (NON-GAAP) | |||||||||||||||||
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for free cash flows* in 2023 without unreasonable effort due to the uncertainty of timing of taxes related to business sales. |