GENERAL ELECTRIC CO
For the period ended Mar 31, 2024. Filed Apr 23, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed Apr 23, 2024
GE$337.91+0.7%Stored close · as of Nov 10, 2026
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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, (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) and (3) cash, specifically Free cash flow (FCF). 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 | |||||||||
| Three months ended March 31 | 2024 | 2023 | V% | 2024 | 2023 | V% | 2024 | 2023 | V pts |
| Aerospace (GAAP) | $8,064 | $6,981 | 16% | $1,529 | $1,326 | 15% | 19.0% | 19.0% | —pts |
| Less: acquisitions and business dispositions | — | — | — | — | |||||
| Less: foreign currency effect | 3 | 1 | (5) | 1 | |||||
| Aerospace organic (Non-GAAP) | $8,061 | $6,980 | 15% | $1,534 | $1,325 | 16% | 19.0% | 19.0% | —pts |
| Renewable Energy (GAAP) | $3,005 | $2,837 | 6% | $(226) | $(414) | 45% | (7.5)% | (14.6)% | 7.1pts |
| Less: acquisitions and business dispositions | — | — | — | — | |||||
| Less: foreign currency effect | 30 | (9) | (21) | (44) | |||||
| Renewable Energy organic (Non-GAAP) | $2,974 | $2,846 | 4% | $(206) | $(371) | 44% | (6.9)% | (13.0)% | 6.1pts |
| Power (GAAP) | $4,134 | $3,820 | 8% | $229 | $75 | F | 5.5% | 2.0% | 3.5pts |
| Less: acquisitions and business dispositions | 41 | — | 10 | — | |||||
| Less: foreign currency effect | 13 | 1 | (26) | (43) | |||||
| Power organic (Non-GAAP) | $4,080 | $3,818 | 7% | $245 | $119 | F | 6.0% | 3.1% | 2.9pts |
| 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 March 31 | ||
|---|---|---|---|
| 2024 | 2023 | V% | |
| Total revenues (GAAP) | $16,053 | $14,486 | 11% |
| Less: Insurance revenues (Note 13) | 879 | 791 | |
| Adjusted revenues (Non-GAAP) | $15,174 | $13,695 | 11% |
| Less: acquisitions and business dispositions | 42 | — | |
| Less: foreign currency effect(a) | 47 | (6) | |
| Organic revenues (Non-GAAP) | $15,085 | $13,701 | 10% |
| (a) Foreign currency impact was primarily driven by U.S. dollar currency exchange differences against the euro, British pound and Brazilian real for the three months ended March 31, 2024 compared to the three months ended March 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. | |||
| EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP) | Three months ended March 31 | ||
|---|---|---|---|
| 2024 | 2023 | V% | |
| Total equipment revenues (GAAP) | $5,935 | $5,287 | 12% |
| Less: acquisitions and business dispositions | 20 | — | |
| Less: foreign currency effect | 45 | (7) | |
| Equipment organic revenues (Non-GAAP) | $5,871 | $5,294 | 11% |
| Total services revenues (GAAP) | $9,239 | $8,407 | 10% |
| Less: acquisitions and business dispositions | 23 | — | |
| Less: foreign currency effect | 3 | 1 | |
| Services organic revenues (Non-GAAP) | $9,214 | $8,406 | 10% |
| 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. | |||
2024 1Q FORM 10-Q 14
| ADJUSTED PROFIT AND PROFIT MARGIN (NON-GAAP) | Three months ended March 31 | ||
|---|---|---|---|
| 2024 | 2023 | V% | |
| Total revenues (GAAP) | $16,053 | $14,486 | 11% |
| Less: Insurance revenues (Note 13) | 879 | 791 | |
| Adjusted revenues (Non-GAAP) | $15,174 | $13,695 | 11% |
| Total costs and expenses (GAAP) | $15,295 | $14,075 | 9% |
| Less: Insurance cost and expenses (Note 13) | 679 | 722 | |
| Less: interest and other financial charges(a) | 267 | 257 | |
| Less: non-operating benefit cost (income) | (362) | (385) | |
| Less: restructuring & other(a) | 218 | 151 | |
| Less: separation costs(a) | 355 | 205 | |
| Add: noncontrolling interests | 27 | (27) | |
| Add: EFS benefit from taxes | (62) | (51) | |
| Adjusted costs (Non-GAAP) | $14,102 | $13,047 | 8% |
| Other income (loss) (GAAP) | $1,109 | $6,081 | (82)% |
| Less: gains (losses) on retained and sold ownership interests and other equity securities(a) | 635 | 5,906 | |
| Less: gains (losses) on purchases and sales of business interests & other(a) | 4 | (55) | |
| Adjusted other income (loss) (Non-GAAP) | $470 | $230 | F |
| Profit (loss) (GAAP) | $1,866 | $6,492 | (71)% |
| Profit (loss) margin (GAAP) | 11.6% | 44.8% | (33.2)pts |
| Adjusted profit (loss) (Non-GAAP) | $1,542 | $877 | 76% |
| Adjusted profit (loss) margin (Non-GAAP) | 10.2% | 6.4% | 3.8pts |
| (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) | Three months ended March 31 | |||
|---|---|---|---|---|
| 2024 · 2023 · V% | ||||
| Adjusted profit (loss) (Non-GAAP) | $1,542 | $877 | 76% | |
| Less: acquisitions and business dispositions | 10 | (6) | ||
| Less: foreign currency effect(a) | (48) | (140) | ||
| Adjusted organic profit (loss) (Non-GAAP) | $1,581 | $1,023 | 55% | |
| Adjusted profit (loss) margin (Non-GAAP) | 10.2% | 6.4% | 3.8 | pts |
| Adjusted organic profit (loss) margin (Non-GAAP) | 10.5% | 7.5% | 3.0 | pts |
| (a) Included foreign currency positive effect on revenues of $47 million and negative effect on operating costs and other income (loss) of $96 million for the three months ended March 31, 2024. | ||||
| 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. | ||||
1Q 2024 FORM 10-Q 15
| ADJUSTED EARNINGS (LOSS) AND ADJUSTED INCOME TAX RATE (NON-GAAP) | Three months ended March 31 | |||
|---|---|---|---|---|
| 2024 | 2023 | |||
| (Per-share amounts in dollars) | Earnings | EPS | Earnings | EPS |
| Earnings (loss) from continuing operations (GAAP) (Note 18) | $1,522 | $1.38 | $6,097 | $5.56 |
| Insurance earnings (loss) (pre-tax) | 201 | 0.18 | 71 | 0.06 |
| Tax effect on Insurance earnings (loss) | (43) | (0.04) | (16) | (0.01) |
| Less: Insurance earnings (loss) (net of tax) (Note 13) | 158 | 0.14 | 54 | 0.05 |
| Earnings (loss) excluding Insurance (Non-GAAP) | $1,365 | $1.24 | $6,043 | $5.51 |
| Non-operating benefit (cost) income (pre-tax) (GAAP) | 362 | 0.33 | 385 | 0.35 |
| Tax effect on non-operating benefit (cost) income | (76) | (0.07) | (81) | (0.07) |
| Less: Non-operating benefit (cost) income (net of tax) | 286 | 0.26 | 304 | 0.28 |
| Gains (losses) on purchases and sales of business interests (pre-tax)(a) | 4 | — | (55) | (0.05) |
| Tax effect on gains (losses) on purchases and sales of business interests | 8 | 0.01 | 1 | — |
| Less: Gains (losses) on purchases and sales of business interests (net of tax) | 12 | 0.01 | (53) | (0.05) |
| Gains (losses) on retained and sold ownership interests and other equity securities (pre-tax)(a) | 635 | 0.58 | 5,906 | 5.39 |
| Tax effect on gains (losses) on retained and sold ownership interests and other equity securities(b)(c) | (1) | — | — | — |
| Less: Gains (losses) on retained and sold ownership interests and other equity securities (net of tax) | 633 | 0.57 | 5,906 | 5.39 |
| Restructuring & other (pre-tax)(a) | (218) | (0.20) | (151) | (0.14) |
| Tax effect on restructuring & other | 46 | 0.04 | 32 | 0.03 |
| Less: Restructuring & other (net of tax) | (172) | (0.16) | (119) | (0.11) |
| Separation costs (pre-tax)(a) | (355) | (0.32) | (205) | (0.19) |
| Tax effect on separation costs | 54 | 0.05 | (56) | (0.05) |
| Less: Separation costs (net of tax) | (301) | (0.27) | (261) | (0.24) |
| Less: Excise tax and accretion of preferred share redemption | — | — | (30) | (0.03) |
| Adjusted earnings (loss) (Non-GAAP) | $906 | $0.82 | $296 | $0.27 |
| Earnings (loss) from continuing operations before taxes (GAAP) | $1,866 | $6,492 | ||
| Less: Total adjustments above (pre-tax) | 628 | 5,950 | ||
| Adjusted earnings before taxes (Non-GAAP) | $1,238 | $542 | ||
| Provision (benefit) for income taxes (GAAP) | $318 | $271 | ||
| Less: Tax effect on adjustments above | 12 | 119 | ||
| Adjusted provision (benefit) for income taxes (Non-GAAP) | $306 | $152 | ||
| Income tax rate (GAAP) | 17.0% | 4.2% | ||
| Adjusted income tax rate (Non-GAAP) | 24.7% | 28.0% | ||
| (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 2024. | ||||
2024 1Q FORM 10-Q 16
| FREE CASH FLOWS (FCF) (NON-GAAP) | Three months ended March 31 | |
|---|---|---|
| 2024 | 2023 | |
| CFOA (GAAP) | $1,024 | $155 |
| Less: Insurance CFOA | 84 | 6 |
| CFOA excluding Insurance (Non-GAAP) | $939 | $149 |
| Add: gross additions to property, plant and equipment and internal-use software | (421) | (298) |
| Less: separation costs cash expenditures | (247) | (204) |
| Less: Corporate restructuring cash expenditures | (79) | (32) |
| Less: taxes related to business sales | (6) | (16) |
| Free cash flows (Non-GAAP) | $850 | $102 |
| We believe investors may find it useful to compare free cash flows* performance without the effects of cash flows for taxes related to business sales, operating activities related to our run-off Insurance operations, 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. | ||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.