GENERAL ELECTRIC CO
For the period ended Sep 30, 2024. Filed Oct 22, 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.
Sep 30, 2024 · Filed Oct 22, 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, Adjusted revenues, (2) profit, specifically, Operating profit and Operating profit margin; Adjusted earnings (loss); Adjusted earnings (loss) per share (EPS) and Adjusted effective income tax rate, and (3) cash flows, specifically free cash flows (FCF). The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow.
2024 3Q FORM 10-Q 12
| OPERATING PROFIT AND PROFIT MARGIN (NON-GAAP) | Three months ended September 30 | Nine months ended September 30 | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | V% | 2024 | 2023 | V% | |
| Total revenues (GAAP) | $9,842 | $9,302 | 6% | $27,890 | $25,893 | 8% |
| Less: Insurance revenues (Note 12) | 899 | 842 | 2,649 | 2,480 | ||
| Adjusted revenues (Non-GAAP) | $8,943 | $8,461 | 6% | $25,241 | $23,412 | 8% |
| Total costs and expenses (GAAP) | $8,970 | $8,124 | 10% | $24,529 | $22,883 | 7% |
| Less: Insurance cost and expenses (Note 12) | 728 | 742 | 2,108 | 2,248 | ||
| Less: U.S. tax equity cost and expenses | 5 | — | 9 | — | ||
| Less: interest and other financial charges(a) | 251 | 270 | 762 | 767 | ||
| Less: non-operating benefit cost (income) | (207) | (244) | (628) | (731) | ||
| Less: restructuring & other(a) | 378 | 44 | 525 | 130 | ||
| Less: goodwill impairments(a) | 251 | — | 251 | — | ||
| Less: separation costs(a) | 74 | 147 | 408 | 474 | ||
| Add: noncontrolling interests | (10) | 1 | (5) | 7 | ||
| Adjusted costs (Non-GAAP) | $7,481 | $7,166 | 4% | $21,089 | $20,003 | 5% |
| Other income (loss) (GAAP) | $1,021 | $(845) | F | $1,965 | $5,755 | (66)% |
| Less: U.S. tax equity | (48) | (34) | (121) | (108) | ||
| Less: gains (losses) on retained and sold ownership interests and other equity securities(a) | 357 | (1,110) | 598 | 5,155 | ||
| Less: gains (losses) on purchases and sales of business interests(a) | 356 | — | 375 | (108) | ||
| Adjusted other income (loss) (Non-GAAP) | $356 | $299 | 19% | $1,112 | $817 | 36% |
| Profit (loss) (GAAP) | $1,893 | $333 | F | $5,327 | $8,765 | (39)% |
| Profit (loss) margin (GAAP) | 19.2% | 3.6% | 1,560 bps | 19.1% | 33.9% | (1,480) bps |
| Operating profit (loss) (Non-GAAP) | $1,818 | $1,594 | 14% | $5,265 | $4,226 | 25% |
| Operating profit (loss) margin (Non-GAAP) | 20.3% | 18.8% | 150 bps | 20.9% | 18.1% | 280 bps |
| (a) See the Corporate & Other 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. We also use Operating profit* as a performance metric at the company level for our annual executive incentive plan for 2024. | ||||||
2024 3Q FORM 10-Q 13
| ADJUSTED EARNINGS (LOSS) AND ADJUSTED EFFECTIVE INCOME TAX RATE (NON-GAAP) · Three months ended September 30 · Nine months ended September 30 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2024 · 2023 · 2024 · 2023 | ||||||||
| (Per-share amounts in dollars) | Earnings | EPS | Earnings | EPS | Earnings | EPS | Earnings | EPS |
| Earnings (loss) from continuing operations (GAAP) (Note 17) | $1,705 | $1.56 | $215 | $0.20 | $4,766 | $4.34 | $7,966 | $7.25 |
| Insurance earnings (loss) (pre-tax) | 172 | 0.16 | 100 | 0.09 | 543 | 0.49 | 235 | 0.21 |
| Tax effect on Insurance earnings (loss) | (37) | (0.03) | (23) | (0.02) | (116) | (0.11) | (54) | (0.05) |
| Less: Insurance earnings (loss) (net of tax) (Note 12) | 135 | 0.12 | 77 | 0.07 | 427 | 0.39 | 181 | 0.17 |
| U.S. tax equity earnings (loss) (pre-tax) | (59) | (0.05) | (47) | (0.04) | (154) | (0.14) | (143) | (0.13) |
| Tax effect on U.S. tax equity earnings (loss) | 70 | 0.06 | 54 | 0.05 | 189 | 0.17 | 173 | 0.16 |
| Less: U.S. tax equity earnings (loss) (net of tax) | 11 | 0.01 | 8 | 0.01 | 35 | 0.03 | 31 | 0.03 |
| Non-operating benefit (cost) income (pre-tax) (GAAP) | 207 | 0.19 | 244 | 0.22 | 628 | 0.57 | 731 | 0.67 |
| Tax effect on non-operating benefit (cost) income | (43) | (0.04) | (51) | (0.05) | (132) | (0.12) | (154) | (0.14) |
| Less: Non-operating benefit (cost) income (net of tax) | 164 | 0.15 | 193 | 0.18 | 496 | 0.45 | 578 | 0.53 |
| Gains (losses) on purchases and sales of business interests (pre-tax)(a) | 356 | 0.33 | — | — | 375 | 0.34 | (108) | (0.10) |
| Tax effect on gains (losses) on purchases and sales of business interests | (10) | (0.01) | (6) | (0.01) | (5) | — | (3) | — |
| Less: Gains (losses) on purchases and sales of business interests (net of tax) | 346 | 0.32 | (6) | (0.01) | 371 | 0.34 | (111) | (0.10) |
| Gains (losses) on retained and sold ownership interests and other equity securities (pre-tax)(a) | 357 | 0.33 | (1,110) | (1.01) | 598 | 0.54 | 5,155 | 4.69 |
| 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) | 357 | 0.33 | (1,110) | (1.01) | 597 | 0.54 | 5,155 | 4.69 |
| Restructuring & other (pre-tax)(a) | (378) | (0.35) | (44) | (0.04) | (525) | (0.48) | (130) | (0.12) |
| Tax effect on restructuring & other | 79 | 0.07 | 9 | 0.01 | 110 | 0.10 | 27 | 0.02 |
| Less: Restructuring & other (net of tax) | (298) | (0.27) | (35) | (0.03) | (415) | (0.38) | (103) | (0.09) |
| Goodwill impairments (pre-tax)(a) | (251) | (0.23) | — | — | (251) | (0.23) | — | — |
| Tax effect on goodwill impairments | — | — | — | — | — | — | — | — |
| Less: goodwill impairments (net of tax) | (251) | (0.23) | — | — | (251) | (0.23) | — | — |
| Separation costs (pre-tax)(a) | (74) | (0.07) | (147) | (0.13) | (408) | (0.37) | (474) | (0.43) |
| Tax effect on separation costs | 61 | 0.06 | 247 | 0.22 | 311 | 0.28 | 244 | 0.22 |
| Less: Separation costs (net of tax) | (13) | (0.01) | 100 | 0.09 | (97) | (0.09) | (230) | (0.21) |
| Less: Excise tax and accretion of preferred share redemption | — | — | (28) | (0.03) | — | — | (58) | (0.05) |
| Adjusted earnings (loss) (Non-GAAP) | $1,255 | $1.15 | $1,016 | $0.92 | $3,602 | $3.28 | $2,523 | $2.30 |
| Earnings (loss) from continuing operations before taxes (GAAP) | $1,893 | $333 | $5,327 | $8,765 | ||||
| Less: Total adjustments above (pre-tax) | 330 | (1,004) | 807 | 5,266 | ||||
| Adjusted earnings before taxes (Non-GAAP) | $1,563 | $1,337 | $4,520 | $3,498 | ||||
| Provision (benefit) for income taxes (GAAP) | $198 | $26 | $567 | $493 | ||||
| Less: Tax effect on adjustments above | (121) | (231) | (357) | (235) | ||||
| Adjusted provision (benefit) for income taxes (Non-GAAP) | $318 | $257 | $923 | $728 | ||||
| Effective income tax rate (GAAP) | 10.5% | 7.8% | 10.6% | 5.6% | ||||
| Adjusted effective income tax rate (Non-GAAP) | 20.3% | 19.2% | 20.4% | 20.8% | ||||
| (a) See the Corporate & Other 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 effective income 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 performance stock units granted in 2024. | ||||||||
2024 3Q FORM 10-Q 14
| FREE CASH FLOWS (FCF) (NON-GAAP) | Nine months ended September 30 | |
|---|---|---|
| 2024 | 2023 | |
| Cash flows from operating activities (CFOA) (GAAP) | $4,499 | $3,354 |
| Add: gross additions to property, plant and equipment and internal-use software | (765) | (612) |
| Less: separation cash expenditures | (716) | (617) |
| Less: Corporate & Other restructuring cash expenditures | (123) | (128) |
| Free cash flows (FCF) (Non-GAAP) | $4,572 | $3,487 |
| We believe investors may find it useful to compare free cash flows* performance without the effects of separation cash expenditures and Corporate & Other restructuring cash expenditures (associated with the separation-related program announced in the fourth quarter of 2022). We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flows. We also use FCF* as a performance metric at the company level for our annual executive incentive plan and performance stock units granted in 2024. | ||
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