GENERAL ELECTRIC CO

RESTRUCTURING AND SEPARATION COSTS. Significant, higher-cost restructuring programs, primarily related to the separations, are excluded from measurement of segment operating performance for internal and external purposes; those excluded amounts are reported in Restructuring and other charges for Corporate. In addition, we incur costs associated with separation activities, which are also excluded from measurement of segment operating performance for internal and external purposes. See Note 19 for further information on restructuring and separation costs.

INTEREST AND OTHER FINANCIAL CHARGES were $0.2 billion for both the three months ended June 30, 2025 and 2024, and $0.4 billion and $0.5 billion for the six months ended June 30, 2025 and 2024, respectively. The primary components of interest and other financial charges are interest on short-term and long-term borrowings and interest on tax deficiencies.

POSTRETIREMENT BENEFIT PLANS. Refer to Note 13 for information about our pension and retiree benefit plans.

INCOME TAXES. For the three months ended June 30, 2025, the effective income tax rate was 16.2% compared to 8.6% for the three months ended June 30, 2024.

The provision for income taxes was $0.4 billion and $0.1 billion for the three months ended June 30, 2025 and 2024, respectively. The increase in the tax provision was primarily due to higher net income before taxes, and a decrease in tax benefits associated with separation activities, partially offset by lower non-taxable losses on our retained and sold ownership interests for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

For the three months ended June 30, 2025, the adjusted effective income tax rate* was 18.7% compared to 20.3% for the three months ended June 30, 2024. The decrease was primarily due to higher U.S. business tax credits and favorable audit settlements, partially offset by taxes on global income, including global minimum taxes (Pillar 2). The adjusted provision (benefit) for income taxes* was $0.4 billion and $0.3 billion for the three months ended June 30, 2025 and 2024, respectively. The change in the tax provision was primarily due to higher adjusted net income before taxes* for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

For the six months ended June 30, 2025, the effective income tax rate was 14.5% compared to 10.7% for the six months ended June 30, 2024. See Note 15 for further information.

The provision for income taxes was $0.7 billion for the six months ended June 30, 2025 and $0.4 billion for the six months ended June 30, 2024. The increase in the tax provision was primarily due to higher net income before taxes, a decrease in tax benefits associated with separation activities, lower non-taxable gains on our retained and sold ownership interests, and an increase in global minimum tax (Pillar 2), partially offset by tax benefits associated with realized foreign tax credits on the reinsurance transaction (see Note 12), and favorable audit resolutions for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

For the six months ended June 30, 2025, the adjusted effective income tax rate* was 18.2% compared to 20.5% for the six months ended June 30, 2024. The decrease was primarily due to higher U.S. business tax credits and favorable audit settlements, partially offset by taxes on global income, including global minimum taxes (Pillar 2). The adjusted provision (benefit) for income taxes* was $0.7 billion and $0.6 billion for the six months ended June 30, 2025 and 2024, respectively. The change in the tax provision was primarily due to higher adjusted net income before taxes* and an increase in global minimum tax (Pillar 2), partially offset by favorable audit resolutions for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

82025 2Q FORM 10-Q

DISCONTINUED OPERATIONS. Our former GE Vernova and GE HealthCare businesses, our mortgage portfolio in Poland (Bank BPH) and other trailing assets and liabilities associated with prior dispositions are included in discontinued operations. Results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods presented and the notes to the financial statements have been adjusted on a retrospective basis. See Note 2 for further information regarding our businesses in discontinued operations.