New York | 001-00035 | 14-0689340 | |||||||||||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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One Financial Center, Suite 3700 | Boston, | MA | 02111 | ||||||||||||||||||||
(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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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: July 25, 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 June 30 | Six months ended June 30 | ||||||||||||||||||||||
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) | $311 | $490 | (37) | % | $465 | $(434) | F | ||||||||||||||||
Continuing EPS | 0.91 | (1.09) | F | 6.46 | (2.25) | F | |||||||||||||||||
Net EPS | (0.02) | (0.86) | 98 | % | 6.68 | (1.94) | F | ||||||||||||||||
Total Revenues | 16,699 | 14,127 | 18 | % | 31,185 | 26,802 | 16 | % | |||||||||||||||
Profit Margin | 8.3 | % | (6.8) | % | 1,510 bps | 25.3 | % | (8.0) | % | 3,330 bps | |||||||||||||
Non-GAAP Metrics | |||||||||||||||||||||||
Free Cash Flow (FCF)-a) |
$415 | $192 | F | $517 | $(976) | F | |||||||||||||||||
Adjusted EPS-b) |
0.68 | 0.36 | 89 | % | 0.95 | 0.26 | F | ||||||||||||||||
Organic Revenues | 15,919 | 13,376 | 19 | % | 29,848 | 25,294 | 18 | % | |||||||||||||||
Adjusted Profit-c) |
1,396 | 1,018 | 37 | % | 2,274 | 1,434 | 59 | % | |||||||||||||||
Adjusted Profit Margin-c) |
8.8 | % | 7.6 | % | 120 bps | 7.7 | % | 5.7 | % | 200 bps | |||||||||||||
Adjusted Organic Profit Margin-c) |
9.3 | % | 7.7 | % | 160 bps | 8.2 | % | 5.8 | % | 240 bps |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
(In millions) | 2023 | 2022 | Year on Year | 2023 | 2022 | Year on Year | |||||||||||||||||
Orders | $9,451 | $6,918 | 37 | % | $17,664 | $14,124 | 25 | % | |||||||||||||||
Revenues | 7,860 | 6,127 | 28 | % | 14,841 | 11,730 | 27 | % | |||||||||||||||
Segment Profit/(Loss) | 1,479 | 1,148 | 29 | % | 2,805 | 2,057 | 36 | % | |||||||||||||||
Segment Profit/(Loss) Margin | 18.8 | % | 18.7 | % | 10 bps | 18.9 | % | 17.5 | % | 140 bps |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
(In millions) | 2023 | 2022 | Year on Year | 2023 | 2022 | Year on Year | |||||||||||||||||
Orders | $8,289 | $3,109 | F | $13,641 | $5,901 | F | |||||||||||||||||
Revenues | 3,849 | 3,099 | 24 | % | 6,687 | 5,970 | 12 | % | |||||||||||||||
Segment Profit/(Loss) | (359) | (419) | 14 | % | (773) | (853) | 9 | % | |||||||||||||||
Segment Profit/(Loss) Margin | (9.3) | % | (13.5) | % | 420 bps | (11.6) | % | (14.3) | % | 270 bps |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||||||||||
(In millions) | 2023 | 2022 | Year on Year | 2023 | 2022 | Year on Year | |||||||||||||||||
Orders | $4,348 | $4,047 | 7 | % | $8,493 | $8,203 | 4 | % | |||||||||||||||
Revenues | 4,152 | 4,202 | (1) | % | 7,971 | 7,703 | 3 | % | |||||||||||||||
Segment Profit/(Loss) | 377 | 320 | 18 | % | 453 | 383 | 18 | % | |||||||||||||||
Segment Profit/(Loss) Margin | 9.1 | % | 7.6 | % | 150 bps | 5.7 | % | 5.0 | % | 70 bps |
ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) | |||||||||||||||||||||||||||||||||||
(In millions) | Revenues | Segment profit (loss) | Profit margin | ||||||||||||||||||||||||||||||||
Three months ended June 30 | 2023 | 2022 | V% | 2023 | 2022 | V% | 2023 | 2022 | V bps | ||||||||||||||||||||||||||
Aerospace (GAAP) | $ | 7,860 | $ | 6,127 | 28 | % | $ | 1,479 | $ | 1,148 | 29 | % | 18.8 | % | 18.7 | % | 10 bps | ||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | 2 | (3) | 38 | 7 | |||||||||||||||||||||||||||||||
Aerospace organic (Non-GAAP) | $ | 7,858 | $ | 6,130 | 28 | % | $ | 1,441 | $ | 1,142 | 26 | % | 18.3 | % | 18.6 | % | (30) bps | ||||||||||||||||||
Renewable Energy (GAAP) | $ | 3,849 | $ | 3,099 | 24 | % | $ | (359) | $ | (419) | 14 | % | (9.3) | % | (13.5) | % | 420 bps | ||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (78) | 4 | (74) | 18 | |||||||||||||||||||||||||||||||
Renewable Energy organic (Non-GAAP) | $ | 3,928 | $ | 3,095 | 27 | % | $ | (285) | $ | (437) | 35 | % | (7.3) | % | (14.1) | % | 680 bps | ||||||||||||||||||
Power (GAAP) | $ | 4,152 | $ | 4,202 | (1) | % | $ | 377 | $ | 320 | 18 | % | 9.1 | % | 7.6 | % | 150 bps | ||||||||||||||||||
Less: acquisitions | 31 | — | (17) | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (20) | (15) | (10) | (44) | |||||||||||||||||||||||||||||||
Power organic (Non-GAAP) | $ | 4,141 | $ | 4,217 | (2) | % | $ | 405 | $ | 364 | 11 | % | 9.8 | % | 8.6 | % | 120 bps | ||||||||||||||||||
ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) | |||||||||||||||||||||||||||||||||||
(In millions) | Revenue | Segment profit (loss) | Profit margin | ||||||||||||||||||||||||||||||||
Six months ended June 30 | 2023 | 2022 | V% | 2023 | 2022 | V% | 2023 | 2022 | V bps | ||||||||||||||||||||||||||
Aerospace (GAAP) | $ | 14,841 | $ | 11,730 | 27 | % | $ | 2,805 | $ | 2,057 | 36 | % | 18.9 | % | 17.5 | % | 140bps | ||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (3) | (4) | 69 | 11 | |||||||||||||||||||||||||||||||
Aerospace organic (Non-GAAP) | $ | 14,844 | $ | 11,734 | 27 | % | $ | 2,736 | $ | 2,046 | 34 | % | 18.4 | % | 17.4 | % | 100bps | ||||||||||||||||||
Renewable Energy (GAAP) | $ | 6,687 | $ | 5,970 | 12 | % | $ | (773) | $ | (853) | 9 | % | (11.6) | % | (14.3) | % | 270bps | ||||||||||||||||||
Less: acquisitions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (237) | 11 | (96) | 18 | |||||||||||||||||||||||||||||||
Renewable Energy organic (Non-GAAP) | $ | 6,924 | $ | 5,959 | 16 | % | $ | (677) | $ | (870) | 22 | % | (9.8) | % | (14.6) | % | 480bps | ||||||||||||||||||
Power (GAAP) | $ | 7,971 | $ | 7,703 | 3 | % | $ | 453 | $ | 383 | 18 | % | 5.7 | % | 5.0 | % | 70bps | ||||||||||||||||||
Less: acquisitions | 31 | — | (17) | — | |||||||||||||||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||||||||||||||
Less: foreign currency effect | (87) | (31) | (47) | (64) | |||||||||||||||||||||||||||||||
Power organic (Non-GAAP) | $ | 8,028 | $ | 7,734 | 4 | % | $ | 517 | $ | 447 | 16 | % | 6.4 | % | 5.8 | % | 60bps | ||||||||||||||||||
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 June 30 | Six months ended June 30 | |||||||||||||||||||||
(In millions) | 2023 | 2022 | V% | 2023 | 2022 | V% | |||||||||||||||||
Total revenues (GAAP) | $ | 16,699 | $ | 14,127 | 18 | % | $ | 31,185 | $ | 26,802 | 16 | % | |||||||||||
Less: Insurance revenues | 847 | 766 | 1,639 | 1,530 | |||||||||||||||||||
Adjusted revenues (Non-GAAP) | $ | 15,852 | $ | 13,361 | 19 | % | $ | 29,546 | $ | 25,272 | 17 | % | |||||||||||
Less: acquisitions | 31 | — | 31 | 1 | |||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||
Less: foreign currency effect | (98) | (14) | (333) | (24) | |||||||||||||||||||
Organic revenues (Non-GAAP) | $ | 15,919 | $ | 13,376 | 19 | % | $ | 29,848 | $ | 25,294 | 18 | % | |||||||||||
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 June 30 | Six months ended June 30 | |||||||||||||||||||||
(In millions) |
2023 | 2022 | V% | 2023 | 2022 | V% | |||||||||||||||||
Total revenues (GAAP) | $ | 16,699 | $ | 14,127 | 18% | $ | 31,185 | $ | 26,802 | 16 | % | ||||||||||||
Less: Insurance revenues | 847 | 766 | 1,639 | 1,530 | |||||||||||||||||||
Adjusted revenues (Non-GAAP) | $ | 15,852 | $ | 13,361 | 19% | $ | 29,546 | $ | 25,272 | 17 | % | ||||||||||||
Total costs and expenses (GAAP) | $ | 16,001 | $ | 13,866 | 15% | $ | 30,076 | $ | 27,770 | 8 | % | ||||||||||||
Less: Insurance cost and expenses | 784 | 709 | 1,505 | 1,368 | |||||||||||||||||||
Less: interest and other financial charges | 254 | 353 | 511 | 724 | |||||||||||||||||||
Less: non-operating benefit cost (income) | (402) | (101) | (787) | (206) | |||||||||||||||||||
Less: restructuring & other | 138 | 35 | 289 | 73 | |||||||||||||||||||
Less: separation costs | 226 | 148 | 431 | 247 | |||||||||||||||||||
Less: Steam asset sale impairment | — | 1 | — | 825 | |||||||||||||||||||
Less: Russia and Ukraine charges | 190 | — | 190 | 230 | |||||||||||||||||||
Add: noncontrolling interests | 4 | 7 | (24) | 21 | |||||||||||||||||||
Add: EFS benefit from taxes | (60) | (61) | (111) | (108) | |||||||||||||||||||
Adjusted costs (Non-GAAP) | $ | 14,755 | $ | 12,666 | 16% | $ | 27,802 | $ | 24,421 | 14 | % | ||||||||||||
Other income (loss) (GAAP) | $ | 692 | $ | (1,227) | F | $ | 6,773 | $ | (1,178) | F | |||||||||||||
Less: gains (losses) on retained and sold ownership interests and other equity securities | 356 | (1,552) | 6,262 | (1,770) | |||||||||||||||||||
Less: restructuring & other | — | — | — | 3 | |||||||||||||||||||
Less: gains (losses) on purchases and sales of business interests | 36 | 2 | (19) | 6 | |||||||||||||||||||
Adjusted other income (loss) (Non-GAAP) | $ | 300 | $ | 323 | (7)% | $ | 530 | $ | 583 | (9) | % | ||||||||||||
Profit (loss) (GAAP) | $ | 1,390 | $ | (966) | F | $ | 7,882 | $ | (2,146) | F | |||||||||||||
Profit (loss) margin (GAAP) | 8.3 | % | (6.8) | % | 1,510 | bps | 25.3 | % | (8.0) | % | 3,330bps | ||||||||||||
Adjusted profit (loss) (Non-GAAP) | $ | 1,396 | $ | 1,018 | 37% | $ | 2,274 | $ | 1,434 | 59 | % | ||||||||||||
Adjusted profit (loss) margin (Non-GAAP) | 8.8 | % | 7.6 | % | 120 | bps | 7.7 | % | 5.7 | % | 200bps | ||||||||||||
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 June 30 | Six months ended June 30 | |||||||||||||||||||||
(In millions) |
2023 | 2022 | V% | 2023 | 2022 | V% | |||||||||||||||||
Adjusted profit (loss) (Non-GAAP) | $ | 1,396 | $ | 1,018 | 37% | $ | 2,274 | $ | 1,434 | 59 | % | ||||||||||||
Less: acquisitions | (17) | — | (23) | (5) | |||||||||||||||||||
Less: business dispositions | — | — | — | — | |||||||||||||||||||
Less: foreign currency effect | (63) | (13) | (143) | (27) | |||||||||||||||||||
Adjusted organic profit (loss) (Non-GAAP) | $ | 1,477 | $ | 1,032 | 43% | $ | 2,441 | $ | 1,466 | 67 | % | ||||||||||||
Adjusted profit (loss) margin (Non-GAAP) | 8.8 | % | 7.6 | % | 120 | bps | 7.7 | % | 5.7 | % | 200bps | ||||||||||||
Adjusted organic profit (loss) margin (Non-GAAP) | 9.3 | % | 7.7 | % | 160 | bps | 8.2 | % | 5.8 | % | 240bps | ||||||||||||
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)
(In millions, Per-share amounts in dollars)
|
Three months ended June 30 | Six months ended June 30 | |||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
Earnings | EPS | Earnings | EPS | Earnings | EPS | Earnings | EPS | ||||||||||||||||||||||
Earnings (loss) from continuing operations (GAAP) | $ | 996 | $ | 0.91 | $ | (1,201) | $ | (1.09) | $ | 7,091 | $ | 6.46 | $ | (2,476) | $ | (2.25) | |||||||||||||
Insurance earnings (loss) (pre-tax) | 64 | 0.06 | 60 | 0.05 | 135 | 0.12 | 168 | 0.15 | |||||||||||||||||||||
Tax effect on Insurance earnings (loss) | (15) | (0.01) | (14) | (0.01) | (31) | (0.03) | (38) | (0.03) | |||||||||||||||||||||
Less: Insurance earnings (loss) (net of tax) | 50 | 0.05 | 46 | 0.04 | 104 | 0.09 | 130 | 0.12 | |||||||||||||||||||||
Earnings (loss) excluding Insurance (Non-GAAP) | $ | 946 | $ | 0.86 | $ | (1,246) | $ | (1.13) | $ | 6,987 | $ | 6.37 | $ | (2,606) | $ | (2.37) | |||||||||||||
Non-operating benefit (cost) income (pre-tax) (GAAP) | 402 | 0.37 | 101 | 0.09 | 787 | 0.72 | 206 | 0.19 | |||||||||||||||||||||
Tax effect on non-operating benefit (cost) income | (84) | (0.08) | (21) | (0.02) | (165) | (0.15) | (43) | (0.04) | |||||||||||||||||||||
Less: Non-operating benefit (cost) income (net of tax) | 318 | 0.29 | 80 | 0.07 | 622 | 0.57 | 163 | 0.15 | |||||||||||||||||||||
Gains (losses) on purchases and sales of business interests (pre-tax) | 36 | 0.03 | 2 | — | (19) | (0.02) | 6 | 0.01 | |||||||||||||||||||||
Tax effect on gains (losses) on purchases and sales of business interests | (17) | (0.02) | 17 | 0.02 | (15) | (0.01) | 17 | 0.02 | |||||||||||||||||||||
Less: Gains (losses) on purchases and sales of business interests (net of tax) | 19 | 0.02 | 19 | 0.02 | (34) | (0.03) | 22 | 0.02 | |||||||||||||||||||||
Gains (losses) on retained and sold ownership interests and other equity securities (pre-tax) | 356 | 0.32 | (1,552) | (1.41) | 6,262 | 5.71 | (1,770) | (1.61) | |||||||||||||||||||||
Tax effect on gains (losses) on retained and sold ownership interests and other equity securities(a)(b) | 1 | — | 14 | 0.01 | 1 | — | (6) | (0.01) | |||||||||||||||||||||
Less: Gains (losses) on retained and sold ownership interests and other equity securities (net of tax) | 357 | 0.33 | (1,537) | (1.40) | 6,263 | 5.71 | (1,776) | (1.62) | |||||||||||||||||||||
Restructuring & other (pre-tax) | (138) | (0.13) | (35) | (0.03) | (289) | (0.26) | (70) | (0.06) | |||||||||||||||||||||
Tax effect on restructuring & other | 29 | 0.03 | 7 | 0.01 | 61 | 0.06 | 15 | 0.01 | |||||||||||||||||||||
Less: Restructuring & other (net of tax) | (109) | (0.10) | (28) | (0.03) | (228) | (0.21) | (55) | (0.05) | |||||||||||||||||||||
Separation costs (pre-tax) | (226) | (0.21) | (148) | (0.14) | (431) | (0.39) | (247) | (0.23) | |||||||||||||||||||||
Tax effect on separation costs | 35 | 0.03 | 16 | 0.01 | (21) | (0.02) | (8) | (0.01) | |||||||||||||||||||||
Less: Separation costs (net of tax) | (192) | (0.17) | (132) | (0.12) | (453) | (0.41) | (256) | (0.23) | |||||||||||||||||||||
Steam asset sale impairment (pre-tax) | — | — | (1) | — | — | — | (825) | (0.75) | |||||||||||||||||||||
Tax effect on Steam asset sale impairment | — | — | — | — | — | — | 84 | 0.08 | |||||||||||||||||||||
Less: Steam asset sale impairment (net of tax) | — | — | (1) | — | — | — | (741) | (0.67) | |||||||||||||||||||||
Russia and Ukraine charges (pre-tax) | (190) | (0.17) | — | — | (190) | (0.17) | (230) | (0.21) | |||||||||||||||||||||
Tax effect on Russia and Ukraine charges | (5) | — | — | — | (5) | — | 15 | 0.01 | |||||||||||||||||||||
Less: Russia and Ukraine charges (net of tax) | (195) | (0.18) | — | — | (195) | (0.18) | (215) | (0.20) | |||||||||||||||||||||
Less: U.S. and foreign tax law change enactment | — | — | (37) | (0.03) | — | — | (37) | (0.03) | |||||||||||||||||||||
Less: Excise tax on preferred stock redemption | — | — | — | — | (30) | (0.03) | — | — | |||||||||||||||||||||
Adjusted earnings (loss) (Non-GAAP) | $ | 748 | $ | 0.68 | $ | 391 | $ | 0.36 | $ | 1,042 | $ | 0.95 | $ | 289 | $ | 0.26 | |||||||||||||
(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 June 30 | Six months ended June 30 | |||||||||||||||||||||
(In millions) | 2023 | 2022 | V$ | 2023 | 2022 | V$ | |||||||||||||||||
CFOA (GAAP) | $ | 311 | $ | 490 | $ | (179) | $ | 465 | $ | (434) | $ | 899 | |||||||||||
Less: Insurance CFOA | 72 | 70 | 78 | 55 | |||||||||||||||||||
CFOA excluding Insurance (Non-GAAP) | $ | 239 | $ | 420 | $ | (181) | $ | 387 | $ | (489) | $ | 877 | |||||||||||
Add: gross additions to property, plant and equipment and internal-use software | (364) | (287) | (663) | (549) | |||||||||||||||||||
Less: separation cash expenditures | (372) | (10) | (576) | (12) | |||||||||||||||||||
Less: Corporate restructuring cash expenditures | (75) | — | (108) | — | |||||||||||||||||||
Less: taxes related to business sales | (93) | (50) | (109) | (50) | |||||||||||||||||||
Free cash flows (Non-GAAP) | $ | 415 | $ | 192 | $ | 223 | $ | 517 | $ | (976) | $ | 1,494 | |||||||||||
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. |
2023 GUIDANCE: 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 and AerCap, 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 GUIDANCE: 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. |