PRELIMINARY UNAUDITED SUPPLEMENTAL CONSOLIDATED FINANCIAL POSITION INFORMATION | ||||||||
As of March 31, 2024 (in billions) | As Reported |
GE Vernova Separation(a)
| Accounting Adjustments | Revised | ||||
Cash, cash equivalents and restricted cash | $ | 18.4 | $ | (3.7) | $ | 0.2 | $ | 15.0 |
Investment securities | 3.7 | - | - | 3.7 | ||||
Current receivables | 15.1 | (7.6) | 0.7 | (b) | 8.2 | |||
Inventories, including deferred inventory costs | 17.6 | (8.8) | - | 8.8 | ||||
Current contract assets | 1.5 | (6.8) | 8.0 | (f) | 2.7 | |||
All other current assets | 1.6 | (1.1) | (c) | 0.5 | (i) | 1.1 | ||
Assets of businesses held for sale | 1.5 | (1.0) | - | 0.5 | ||||
Current assets | 59.6 | (29.0) | 9.4 | 40.0 | ||||
Investment securities | 38.7 | - | - | 38.7 | ||||
Property, plant and equipment - net | 12.3 | (5.2) | - | 7.1 | ||||
Goodwill | 13.3 | (4.4) | - | 8.9 | ||||
Other intangible assets - net | 5.5 | (1.0) | - | 4.6 | ||||
Contract and other deferred assets | 5.4 | (0.6) | - | 4.8 | ||||
All other assets | 17.0 | (5.6) | (c) | 1.2 | (d) | 12.6 | ||
Deferred income taxes | 10.3 | (2.9) | (c) | (0.5) | (d) | 6.9 | ||
Assets of discontinued operations | 1.7 | 48.7 | 0.5 | 50.9 | ||||
Total assets | $ | 163.9 | $ | - | $ | 10.6 | $ | 174.5 |
Short-term borrowings | 1.0 | - | (0.1) | (j) | 1.0 | |||
Accounts payable and equipment project payables | 15.2 | (8.1) | 0.7 | (b),(e) | 7.7 | |||
Progress collections | - | - | 6.3 | (f) | 6.3 | |||
Contract liabilities and current deferred income | 20.7 | (14.1) | 1.7 | (f),(k) | 8.3 | |||
Sales discounts and allowances | - | - | 3.6 | (g) | 3.6 | |||
All other current liabilities | 12.3 | (4.6) | (c) | (3.1) | (g),(i),(k),(l) | 4.6 | ||
Liabilities of businesses held for sale | 1.8 | (1.5) | - | 0.3 | ||||
Current liabilities | 51.1 | (28.4) | 9.2 | 31.9 | ||||
Deferred income | 1.3 | (0.2) | (0.1) | (k) | 1.0 | |||
Long-term borrowings | 19.5 | (0.3) | - | 19.2 | ||||
Insurance liabilities and annuity benefits | 37.9 | - | - | 37.9 | ||||
Non-current compensation and benefits | 11.0 | (3.3) | (c) | (0.3) | (l) | 7.5 | ||
All other liabilities | 10.9 | (3.9) | (0.3) | (k) | 6.6 | |||
Liabilities of discontinued operations | 1.2 | 36.1 | 2.0 | 39.2 | ||||
Total liabilities | 132.8 | - | 10.5 | 143.4 | ||||
Common stock | - | - | - | - | ||||
Accumulated other comprehensive income (loss) - net attributable to the Company | (5.6) | - | - | (5.6) | ||||
Other capital | 25.9 | - | - | 25.9 | ||||
Retained earnings | 88.1 | - | - | 88.1 | ||||
Less common stock held in treasury | (78.5) | - | - | (78.5) | ||||
Total shareholders' equity | 29.9 | - | - | 29.9 | ||||
Noncontrolling interests | 1.2 | - | - | 1.2 | ||||
Total equity | 31.1 | - | - | 31.1 | ||||
Total liabilities and equity | $ | 163.9 | $ | - | $ | 10.6 | $ | 174.5 |
PRELIMINARY UNAUDITED SUPPLEMENTAL CONSOLIDATED CASH FLOWS INFORMATION | ||||||||
As of March 31, 2024 (in billions) | As Reported | GE Vernova Separation(a) | Accounting Adjustments | Revised | ||||
Net earnings (loss) | $ | 1.6 | $ | - | $ | - | $ | 1.6 |
(Earnings) loss from discontinued operations activities | - | 0.1 | 0.1 | (e) | 0.2 | |||
Adjustments to reconcile net earnings (loss) to cash from (used for) operating activities: | ||||||||
Depreciation and amortization of property, plant and equipment | 0.4 | (0.2) | - | 0.2 | ||||
Amortization of intangible assets | 0.1 | (0.1) | - | 0.1 | ||||
(Gains) losses on retained and sold interests and other equity securities | (0.7) | - | - | (0.7) | ||||
Principal pension plans cost | (0.3) | 0.1 | (c) | - | (0.2) | |||
Principal pension plans employer contributions | (0.1) | - | (c) | - | - | |||
Other postretirement benefit plans (net) | (0.1) | - | (c) | - | (0.1) | |||
Provision (benefit) for income taxes | 0.3 | (0.1) | - | 0.2 | ||||
Cash recovered (paid) during the year for income taxes | (0.1) | 0.4 | - | 0.2 | ||||
Changes in operating working capital: | ||||||||
Decrease (increase) in current receivables | 0.2 | (0.5) | 0.5 | (b) | 0.3 | |||
Decrease (increase) in inventories, including deferred inventory costs | (1.2) | 0.7 | - | (0.5) | ||||
Decrease (increase) in current contract assets | (0.1) | 0.3 | (f) | (0.1) | (f) | 0.2 | ||
Increase (decrease) in contract liabilities and current deferred income | 1.1 | (0.9) | (f) | (0.2) | (f) | - | ||
Increase (decrease) in progress collections | - | - | 0.2 | (f) | 0.2 | |||
Increase (decrease) in accounts payable and equipment project accruals | 0.1 | 0.5 | (0.4) | (b)(e) | 0.2 | |||
Increase (decrease) in sales discounts and allowances | - | - | (0.1) | (g) | (0.1) | |||
All other operating activities(h)
| (0.3) | 0.1 | 0.1 | (c),(g) | (0.1) | |||
Cash from (used for) operating activities - continuing operations | 1.0 | 0.5 | 0.1 | 1.6 | ||||
Cash from (used for) operating activities - discontinued operations | - | (0.5) | (0.1) | (0.6) | ||||
Cash from (used for) operating activities | 1.0 | - | - | 1.0 | ||||
1.0 | ||||||||
Additions to property, plant and equipment and internal-use software | (0.4) | 0.2 | - | (0.2) | ||||
Dispositions of property, plant and equipment | - | - | - | - | ||||
Dispositions of retained ownership interests | 2.6 | - | - | 2.6 | ||||
Net (purchases) dispositions of insurance investment securities | (1.1) | - | - | (1.1) | ||||
All other investing activities | (0.3) | (2.3) | 0.3 | (2.4) | ||||
Cash from (used for) investing activities - continuing operations | 0.8 | (2.1) | 0.3 | (1.1) | ||||
Cash from (used for) investing activities - discontinued operations | - | 2.1 | (0.3) | 1.9 | ||||
Cash from (used for) investing activities | 0.8 | - | - | 0.8 | ||||
Net increase (decrease) in borrowings (maturities of 90 days or less) | - | - | - | - | ||||
Newly issued debt (maturities longer than 90 days) | - | - | - | - | ||||
Repayments and other debt reductions (maturities longer than 90 days) | (0.3) | 0.1 | - | (0.2) | ||||
Dividends paid to shareholders | (0.1) | - | - | (0.1) | ||||
Purchases of common stock for treasury | (0.3) | - | - | (0.3) | ||||
All other financing activities | 0.5 | - | - | 0.6 | ||||
Cash from (used for) financing activities - continuing operations | (0.2) | 0.1 | - | (0.1) | ||||
Cash from (used for) financing activities - discontinued operations | - | (0.1) | - | (0.1) | ||||
Cash from (used for) financing activities | (0.2) | - | - | (0.2) | ||||
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (0.1) | - | - | (0.1) | ||||
Increase (decrease) in cash, cash equivalents and restricted cash | 1.5 | - | - | 1.5 | ||||
Cash, cash equivalents and restricted cash at beginning of year | 19.8 | - | - | 19.8 | ||||
Cash, cash equivalents and restricted cash at March 31 | 21.3 | - | - | 21.3 | ||||
Less cash, cash equivalents and restricted cash of discontinued operations at March 31 | (1.4) | (3.7) | 0.2 | (4.9) | ||||
Cash, cash equivalents and restricted cash of continuing operations at March 31 | $ | 19.9 | $ | (3.7) | $ | 0.2 | $ | 16.4 |
PRELIMINARY UNAUDITED SUPPLEMENTAL CONSOLIDATED EARNINGS INFORMATION | |||||||||
As of March 31, 2024 (in billions) | As Reported | GE Vernova Separation(a) | Accounting Adjustments | Revised | |||||
Sales of equipment | $ | 5.9 | $ | (3.6) | $ | 0.1 | (b) | $ | 2.4 |
Sales of services | 9.2 | (3.7) | 0.1 | (b) | 5.7 | ||||
Insurance revenues | 0.9 | - | - | 0.9 | |||||
Total revenues | 16.1 | (7.3) | 0.2 | 9.0 | |||||
Cost of equipment sold | 6.0 | (3.7) | 0.2 | (b) | 2.5 | ||||
Cost of services sold | 5.6 | (2.3) | - | (b) | 3.3 | ||||
Selling, general and administrative expenses | 2.3 | (1.2) | (0.1) | (e) | 1.0 | ||||
Separation costs | 0.4 | - | (0.1) | (e) | 0.3 | ||||
Research and development | 0.5 | (0.2) | - | 0.3 | |||||
Interest and other financial charges | 0.3 | - | - | 0.3 | |||||
Insurance losses, annuity benefits and other costs | 0.6 | - | - | 0.6 | |||||
Non-operating benefit cost (income) | (0.4) | 0.1 | (c) | - | (0.2) | ||||
Total costs and expenses | 15.3 | (7.3) | - | 8.0 | |||||
Other income (loss) | 1.1 | - | (0.1) | 1.0 | |||||
Earnings (loss) from continuing operations before income taxes | 1.9 | - | 0.2 | 2.0 | |||||
Benefit (provision) for income taxes | (0.3) | 0.1 | - | (0.2) | |||||
Earnings (loss) from continuing operations | 1.5 | - | 0.2 | 1.7 | |||||
Earnings (loss) from discontinued operations, net of taxes | - | - | (0.2) | (0.2) | |||||
Net earnings (loss) | 1.6 | - | - | 1.6 | |||||
Less net earnings (loss) attributable to noncontrolling interests | - | - | - | - | |||||
Net earnings (loss) attributable to the Company | 1.5 | - | - | 1.5 | |||||
Preferred stock dividends and other | - | - | - | - | |||||
Net earnings (loss) attributable to common shareholders | $ | 1.5 | $ | - | $ | - | $ | 1.5 | |
Per-share amounts | |||||||||
Earnings (loss) per share from continuing operations | |||||||||
Diluted earnings (loss) per share | $ | 1.38 | $ | 1.58 | |||||
Basic earnings (loss) per share | $ | 1.39 | $ | 1.59 | |||||
Average equivalent shares (in millions) | |||||||||
Diluted | 1,103 | 1,103 | |||||||
Basic | 1,091 | 1,091 |
SEGMENT REVENUES - COMMERCIAL ENGINES AND SERVICES | Q1'23 | Q2'23 | Q3'23 | Q4'23 | ||||
Equipment | $ | 1.3 | $ | 1.6 | $ | 1.6 | $ | 1.7 |
Services | 3.9 | 4.1 | 4.9 | 4.8 | ||||
Total segment revenues | $ | 5.2 | $ | 5.7 | $ | 6.5 | $ | 6.4 |
SEGMENT REVENUES - DEFENSE AND PROPULSION TECHNOLOGIES | Q1'23 | Q2'23 | Q3'23 | Q4'23 | ||||
Equipment | $ | 0.9 | $ | 1.1 | $ | 0.9 | $ | 1.1 |
Services | 1.1 | 1.2 | 1.3 | 1.3 | ||||
Total segment revenues | $ | 2.0 | $ | 2.4 | $ | 2.2 | $ | 2.4 |
ADJUSTED EARNINGS (LOSS) (NON-GAAP) | Three months ended March 31, 2024 | |||
(In billions; per-share amounts in dollars) | Earnings | EPS | ||
Earnings (loss) from continuing operations (GAAP) | $ | 1.7 | $ | 1.58 |
Insurance earnings (loss) (pre-tax) | 0.2 | 0.18 | ||
Tax effect on Insurance earnings (loss) | - | (0.04) | ||
Less: Insurance earnings (loss) (net of tax) | 0.2 | 0.14 | ||
U.S. tax equity earnings (loss) (pre-tax) | - | (0.04) | ||
Tax effect on U.S. tax equity earnings (loss) | 0.1 | 0.05 | ||
Less: U.S. tax equity earnings (loss) (net of tax) | - | 0.01 | ||
Non-operating benefit (cost) income (pre-tax) (GAAP) | 0.2 | 0.20 | ||
Tax effect on non-operating benefit (cost) income | - | (0.04) | ||
Less: Non-operating benefit (cost) income (net of tax) | 0.2 | 0.16 | ||
Gains (losses) on purchases and sales of business interests (pre-tax) | - | 0.01 | ||
Tax effect on gains (losses) on purchases and sales of business interests | - | 0.01 | ||
Less: Gains (losses) on purchases and sales of business interests (net of tax) | - | 0.02 | ||
Gains (losses) on retained and sold ownership interests and other equity securities (pre-tax) | 0.6 | 0.58 | ||
Tax effect on gains (losses) on retained and sold ownership interests and other equity securities | - | - | ||
Less: Gains (losses) on retained and sold ownership interests and other equity securities (net of tax) | 0.6 | 0.57 | ||
Restructuring & other (pre-tax) | (0.1) | (0.06) | ||
Tax effect on restructuring & other | - | 0.01 | ||
Less: Restructuring & other (net of tax) | (0.1) | (0.05) | ||
Separation costs (pre-tax) | (0.3) | (0.23) | ||
Tax effect on separation costs | - | 0.03 | ||
Less: Separation costs (net of tax) | (0.2) | (0.20) | ||
Less: Excise tax and accretion of preferred share redemption | - | - | ||
Adjusted earnings (loss) (Non-GAAP) | $ | 1.0 | $ | 0.93 |
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. |
FREE CASH FLOWS (FCF) (NON-GAAP)
(In billions)
| Three months ended March 31, 2024 | |
Cash from operating activities - continuing operations (GAAP) | $ | 1.6 |
Add: gross additions to property, plant and equipment and internal-use software | (0.2) | |
Less: separation cash expenditures | (0.2) | |
Less: Corporate restructuring cash expenditures | (0.1) | |
Free cash flows (Non-GAAP) | $ | 1.7 |
We believe investors may find it useful to compare free cash flows* performance without the effects of cash flows for separation cash expenditures and Corporate restructuring cash expenditures (associated with the separation-related program announced in October 2022). We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flows*. |
(a) |
Represents the reclassification of balances and results attributable to the GE Vernova Separation to discontinued operations. |
(b) | Adjustments primarily represent the reversal of intercompany eliminations related to the sale of equipment and services from the Company to GE Vernova and the transfer of intercompany eliminations related to transactions between GE Vernova entities from the Company to GE Vernova. |
(c) |
Adjustments reflect the transfer of a portion of the Company's postretirement benefit plans, including a portion of GE's Principal Pension Plans, the GE Principal Retiree Benefit Plans and Other Pension Plans, and deferred compensation arrangements and other compensation and benefits obligations and the related costs and cash expenditures to GE Vernova.
|
(d) | Adjustment represents Renewable Energy tax equity investments of $1.2 billion that were transferred from GE Vernova to the Company prior to the Separation along with related deferred tax liabilities of $0.2 billion. In addition, we reclassified $0.3 billion of deferred tax assets related to GE Vernova to discontinued operations. |
(e) | Adjustment reflects separation costs and cash expenditures and restructuring and other charges incurred by the Company that were directly attributable to the GE Vernova business. |
(f) |
As a result of the Separation, if long-term service agreements continue to be presented as net assets, total customer contracts would be in a liability position. This adjustment represents the reclassification of long-term service agreements in a liability position to Contract liabilities and current deferred income, and the financial statement line item was renamed as such. In addition, Progress collections was reclassified from Progress collections and deferred income to its own financial statement line item. |
(g) | Adjustment represents the reclassification of sales discounts and allowances from all other current liabilities to its own financial statement line item. |
(h) | Includes (gains) losses on purchases and sales of business interests and Financial services derivatives net collateral/settlement as presented in our 2023 10-K. |
(i) |
Adjustment represents change in intercompany eliminations related to derivative assets and liabilities attributable to GE Vernova. |
(j) |
Adjustment represents the transfer of short-term debt attributable to GE Vernova from the Company. |
(k) | Adjustment represents reclassification of deferred income of $0.1 billion and operating lease liabilities of $0.3 billion attributable to GE Aerospace from non-current liabilities to current liabilities. |
(l) |
In connection with the Separation, current compensation and benefits obligations with respect to additional employee-related obligations of active and former employees along with non-current benefit obligations pertaining to severance liabilities were transferred from the Company to GE Vernova. |
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GE Aerospace - General Electric Company published this content on 21 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 June 2024 13:05:06 UTC.