GENERAL ELECTRIC CO
For the period ended Dec 31, 2023. Filed Feb 2, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Feb 2, 2024
GE$337.91+0.7%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES. We believe that presenting non-GAAP financial measures provides management and investors useful measures to evaluate performance and trends of the total company and its businesses. This includes adjustments in recent periods to GAAP financial measures to increase period-to-period comparability following actions to strengthen our overall financial position and how we manage our business. In addition, management recognizes that certain non-GAAP terms may be interpreted differently by other companies under different circumstances. In various sections of this report we have made reference to the following non-GAAP financial measures in describing our (1) revenues, specifically organic revenues by segment; organic revenues; and equipment and services organic revenues and (2) profit, specifically organic profit and profit margin by segment; Adjusted profit and profit margin; Adjusted organic profit and profit margin; Adjusted earnings (loss); Adjusted income tax rate; and Adjusted earnings (loss) per share (EPS). The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow.
| ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Revenues · Segment profit (loss) · Profit margin | |||||||||
| 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% | 0.9pts |
| 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% | 0.5pts |
| Renewable Energy (GAAP) | $15,050 | $12,977 | 16% | $(1,437) | $(2,240) | 36% | (9.5)% | (17.3)% | 7.8pts |
| 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)% | 9.2pts |
| Power (GAAP) | $17,731 | $16,262 | 9% | $1,449 | $1,217 | 19% | 8.2% | 7.5% | 0.7pts |
| 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% | 0.2pts |
| 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) | 2023 | 2022 | V% |
|---|---|---|---|
| Total revenues (GAAP) | $67,954 | $58,100 | 17% |
| Less: Insurance revenues (Note 12) | 3,389 | 2,957 | |
| Adjusted revenues (Non-GAAP) | $64,565 | $55,143 | 17% |
| Less: acquisitions and business dispositions | 155 | 1 | |
| Less: foreign currency effect(a) | 74 | (8) | |
| Organic revenues (Non-GAAP) | $64,336 | $55,150 | 17% |
| (a) Foreign currency impact was primarily driven by U.S. dollar depreciation against the euro, Brazilian real and Mexican peso for the year ended December 31, 2023. | |||
| 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 operations, acquisitions, dispositions and foreign currency, which includes translational and transactional impacts, as these activities can obscure underlying trends. | |||
2023 FORM 10-K 23
| EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP) | 2023 | 2022 | V% |
|---|---|---|---|
| Total equipment revenues (GAAP) | $26,793 | $22,334 | 20% |
| Less: acquisitions and business dispositions | 64 | — | |
| Less: foreign currency effect | 62 | 7 | |
| Equipment organic revenues (Non-GAAP) | $26,667 | $22,327 | 19% |
| Total services revenues (GAAP) | $37,772 | $32,808 | 15% |
| Less: acquisitions and business dispositions | 91 | 1 | |
| Less: foreign currency effect | 12 | (15) | |
| Services organic revenues (Non-GAAP) | $37,669 | $32,823 | 15% |
| 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) | 2023 | 2022 |
|---|---|---|
| Total revenues (GAAP) | $67,954 | $58,100 |
| Less: Insurance revenues (Note 12) | 3,389 | 2,957 |
| Adjusted revenues (Non-GAAP) | $64,565 | $55,143 |
| Total costs and expenses (GAAP) | $64,891 | $60,071 |
| Less: Insurance cost and expenses (Note 12) | 3,057 | 2,753 |
| Less: interest and other financial charges(a) | 1,073 | 1,423 |
| Less: non-operating benefit cost (income) | (1,585) | (409) |
| Less: restructuring & other(a) | 679 | 836 |
| Less: debt extinguishment costs(a) | — | 465 |
| Less: separation costs(a) | 978 | 715 |
| Less: Steam asset sale impairment(a) | — | 824 |
| Less: Russia and Ukraine charges(a) | 190 | 263 |
| Add: noncontrolling interests | (38) | 16 |
| Add: EFS benefit from taxes | (195) | (213) |
| Adjusted costs (Non-GAAP) | $60,268 | $53,004 |
| Other income (loss) (GAAP) | $7,129 | $1,172 |
| Less: gains (losses) on retained and sold ownership interests and other equity securities(a) | 5,773 | 76 |
| Less: restructuring & other(a) | — | 31 |
| Less: gains (losses) on purchases and sales of business interests(a) | (9) | 45 |
| Adjusted other income (loss) (Non-GAAP) | $1,365 | $1,020 |
| Profit (loss) (GAAP) | $10,191 | $(799) |
| Profit (loss) margin (GAAP) | 15.0% | (1.4)% |
| Adjusted profit (loss) (Non-GAAP) | $5,662 | $3,159 |
| Adjusted profit (loss) margin (Non-GAAP) | 8.8% | 5.7% |
| (a) See the Corporate and Other Consolidated Information sections for further information. | ||
| 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) · 2023 · 2022 · V% | ||||
|---|---|---|---|---|
| Adjusted profit (loss) (Non-GAAP) | $5,662 | $3,159 | 79% | |
| Less: acquisitions and business dispositions | 12 | (5) | ||
| Less: foreign currency effect(a) | (294) | (189) | ||
| Adjusted organic profit (loss) (Non-GAAP) | $5,944 | $3,353 | 77% | |
| Adjusted profit (loss) margin (Non-GAAP) | 8.8% | 5.7% | 3.1 | pts |
| Adjusted organic profit (loss) margin (Non-GAAP) | 9.2% | 6.1% | 3.1 | pts |
| (a) Included foreign currency positive effect on revenues of $74 million and negative effect on operating costs and other income (loss) of $368 million for the year ended December 31, 2023. | ||||
| 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. | ||||
2023 FORM 10-K 24
| ADJUSTED EARNINGS (LOSS) AND ADJUSTED INCOME TAX RATE (NON-GAAP) | 2023 | 2022 | ||
|---|---|---|---|---|
| (Per-share amounts in dollars) | Earnings | EPS | Earnings | EPS |
| Earnings (loss) from continuing operations (GAAP) (Note 18) | $8,769 | $7.98 | $(1,097) | $(1.00) |
| Insurance earnings (loss) (pre-tax) | 334 | 0.30 | 210 | 0.19 |
| Tax effect on Insurance earnings (loss) | (74) | (0.07) | (52) | (0.05) |
| Less: Insurance earnings (loss) (net of tax) (Note 12) | 260 | 0.24 | 159 | 0.15 |
| Earnings (loss) excluding Insurance (Non-GAAP) | $8,509 | $7.74 | $(1,255) | $(1.15) |
| Non-operating benefit (cost) income (pre-tax) (GAAP) | 1,585 | 1.44 | 409 | 0.37 |
| Tax effect on non-operating benefit (cost) income | (333) | (0.30) | (86) | (0.08) |
| Less: Non-operating benefit (cost) income (net of tax) | 1,252 | 1.14 | 323 | 0.30 |
| Gains (losses) on purchases and sales of business interests (pre-tax)(a) | (9) | (0.01) | 45 | 0.04 |
| Tax effect on gains (losses) on purchases and sales of business interests | (24) | (0.02) | 57 | 0.05 |
| Less: Gains (losses) on purchases and sales of business interests (net of tax) | (32) | (0.03) | 102 | 0.09 |
| Gains (losses) on retained and sold ownership interests and other equity securities (pre-tax)(a) | 5,773 | 5.25 | 76 | 0.07 |
| Tax effect on gains (losses) on retained and sold ownership interests and other equity securities(b)(c) | 1 | — | (17) | (0.02) |
| Less: Gains (losses) on retained and sold ownership interests and other equity securities (net of tax) | 5,774 | 5.26 | 58 | 0.05 |
| Restructuring & other (pre-tax)(a) | (679) | (0.62) | (806) | (0.74) |
| Tax effect on restructuring & other | 143 | 0.13 | 176 | 0.16 |
| Less: Restructuring & other (net of tax) | (536) | (0.49) | (630) | (0.58) |
| Debt extinguishment costs (pre-tax)(a) | — | — | (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)(a) | (978) | (0.89) | (715) | (0.65) |
| Tax effect on separation costs | 197 | 0.18 | 23 | 0.02 |
| Less: Separation costs (net of tax) | (781) | (0.71) | (692) | (0.63) |
| Steam asset sale impairment (pre-tax)(a) | — | — | (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)(a) | (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 | — | — | 126 | 0.11 |
| Adjusted earnings (loss) (Non-GAAP) | $3,085 | $2.81 | $839 | $0.77 |
| Earnings (loss) from continuing operations before taxes (GAAP) | $10,191 | $(799) | ||
| Less: Total adjustments above (pre-tax) | 5,836 | (2,332) | ||
| Adjusted earnings before taxes (Non-GAAP) | $4,355 | $1,534 | ||
| Provision (benefit) for income taxes (GAAP) | $1,162 | $(3) | ||
| Less: Tax effect on adjustments above | 95 | (393) | ||
| Adjusted provision (benefit) for income taxes (Non-GAAP) | $1,067 | $389 | ||
| Income tax rate (GAAP) | 11.4% | 0.4% | ||
| Adjusted income tax rate (Non-GAAP) | 24.5% | 25.4% | ||
| (a) See the Corporate and Other Consolidated Information sections for further information. | ||||
| (b) Includes tax benefits available to offset the tax on gains (losses) on equity securities. | ||||
| (c) 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* and the Adjusted tax rate* 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. | ||||
2023 FORM 10-K 25
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.