8-K/A
GENERAL ELECTRIC CO (GE)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
(Amendment No. 1)
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 2, 2024
General Electric Company
(Exact name of registrant as specified in its charter)
| New York | 001-00035 | 14-0689340 | ||
|---|---|---|---|---|
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) | ||
| 1 Neumann Way, | Evendale, | OH | 45215 | |
| (Address of principal executive offices) | (Zip Code) |
(Registrant’s telephone number, including area code) (617) 443-3000
_______________________________________________
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||
|---|---|---|---|---|---|
| Common stock, par value $0.01 per share | GE | New York Stock Exchange | |||
| 0.875% Notes due 2025 | GE 25 | New York Stock Exchange | |||
| 1.875% Notes due 2027 | GE 27E | New York Stock Exchange | |||
| 1.500% Notes due 2029 | GE 29 | New York Stock Exchange | |||
| 7 1/2% Guaranteed Subordinated Notes due 2035 | GE /35 | New York Stock Exchange | |||
| 2.125% Notes due 2037 | GE 37 | New York Stock Exchange | Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). | ||
| --- | --- | ||||
| Emerging growth company | ☐ | ||||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. | ☐ |
Introductory Note
On April 2, 2024 at 12:10 a.m. Eastern Time, General Electric Company completed the previously announced separation (the “Spin-Off”) of GE Vernova Inc. (“GE Vernova”). General Electric Company now operates as GE Aerospace (the “Company”). The Spin-Off of GE Vernova was achieved through the Company’s pro rata distribution of all of the outstanding shares of GE Vernova common stock to holders of record of the Company’s common stock. Each holder of record of the Company’s common stock received one share of GE Vernova common stock for every four shares of the Company’s common stock held on March 19, 2024, the record date for the distribution. In lieu of fractional shares of GE Vernova, shareholders of the Company will receive cash. On April 2, 2024, GE Vernova’s common stock began trading on the New York Stock Exchange under the ticker symbol “GEV.”
In this Amendment No. 1 the Company amends the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on April 2, 2024 (the “Original Form 8-K”) that reported the completion of the Spin-Off. The Original Form 8-K did not include the unaudited pro forma financial information of the Company reflecting the performance of the Company’s businesses after giving effect to the Spin-Off. This Amendment No. 1 to the Original Form 8-K is being filed to include such pro forma financial information as required under Item 9.01(b) of Form 8-K.
The Company no longer consolidates GE Vernova into its financial results. In connection with the Spin-Off, the historical results of GE Vernova and certain assets and liabilities included in the Spin-Off will be reported in the Company's consolidated financial statements as discontinued operations beginning in the second quarter of 2024.
Unaudited pro forma financial information included in this Amendment No. 1 to the Original Form 8-K has been presented to illustrate the estimated effects of the Spin-Off and is not necessarily indicative of the results of operations that the Company would have achieved had the Spin-Off been completed as of the dates indicated or of the results that may be obtained in the future.
Item 9.01 Financial Statements and Exhibits.
(b) Pro Forma Financial Information.
The following unaudited pro forma financial information of the Company is filed as Exhibit 99.1 to this Amendment No. 1 to the Original Form 8-K and is incorporated herein by reference:
•Unaudited Pro Forma Condensed Consolidated Statement of Financial Position as of December 31, 2023.
•Unaudited Pro Forma Condensed Consolidated Statements of Earnings (Loss) for each of the years ended December 31, 2023, 2022 and 2021.
•Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements.
(d) Exhibits.
99.1 General Electric Company Unaudited Pro Forma Condensed Consolidated Financial Statements.
- The cover page from this Amendment No. 1 to the Original Form 8-K, formatted in Inline XBRL.
(2)
Forward-Looking Statements
This document contains “forward-looking statements” — that is, statements related to future, not past, events. These forward- looking statements often address GE Aerospace’s expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “preliminary,” or “range.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and are subject to risks, uncertainties and assumptions. For GE Aerospace, particular areas where risks or uncertainties could cause GE Aerospace’s actual results to be materially different than those expressed in GE Aerospace’s forward-looking statements include: changes in macroeconomic and market conditions and market volatility, including risk of recession, inflation, geopolitical conflict; supply chain constraints or disruptions, interest rates, the value of securities and other financial assets (including GE Aerospace’s equity interest in GE HealthCare), commodity prices and exchange rates, and the impact of such changes and volatility on GE Aerospace’s business operations, financial results and financial position; GE Aerospace’s capital allocation plans, including the timing and amount of dividends, share repurchases, acquisitions, organic investments, and other priorities; and other factors that are described in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2023, as such description may be updated or amended in any future reports that GE Aerospace files with the SEC. These or other uncertainties may cause GE Aerospace’s actual future results to be materially different than those expressed in its forward-looking statements. GE Aerospace does not undertake to update its forward-looking statements.
(3)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| General Electric Company | |
|---|---|
| (Registrant) | |
| Date: April 8, 2024 | /s/ Rahul Ghai |
| Rahul Ghai<br>Senior Vice President and Chief Financial Officer<br>Principal Financial Officer |
(4)
Document
Exhibit 99.1
GENERAL ELECTRIC COMPANY
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On April 2, 2024 at 12:10 a.m. Eastern Time, General Electric Company completed the previously announced separation (the “Separation”) of GE Vernova Inc. (the “Business” or “GE Vernova”). General Electric Company now operates as GE Aerospace (the “Company”). The Spin-Off of GE Vernova was achieved through the Company’s pro rata distribution (the “Distribution”) of all of the outstanding shares of GE Vernova common stock to holders of record of the Company’s common stock. Each holder of record of the Company’s common stock received one share of GE Vernova common stock for every four shares of the Company’s common stock held on March 19, 2024, the record date for the distribution. In lieu of fractional shares of GE Vernova, shareholders of the Company will receive cash. On April 2, 2024, GE Vernova’s common stock began trading on the New York Stock Exchange under the ticker symbol “GEV.” After the Distribution, the Company no longer consolidates GE Vernova into its financial results.
In connection with the Separation, the historical results of GE Vernova and certain assets and liabilities included in the Separation will be reported in the Company's consolidated financial statements as discontinued operations beginning in the second quarter of 2024.
The following unaudited pro forma condensed consolidated statement of financial position as of December 31, 2023 is presented as if the Separation, as described in the notes to these unaudited pro forma condensed consolidated financial statements, had occurred on December 31, 2023.
The unaudited pro forma condensed consolidated statement of earnings (loss) for each of the years ended December 31, 2023, 2022, and 2021 is presented as if the Separation had occurred on January 1, 2021. All adjustments shown on the unaudited pro forma condensed consolidated financial statements are transaction accounting adjustments.
The unaudited pro forma condensed consolidated statements of earnings (loss) are subject to the assumptions and adjustments described in the accompanying notes. These assumptions and adjustments are based on information presently available. The unaudited pro forma condensed consolidated statements of earnings (loss) are based on the historical financial statements of the Company's for the period presented and in the opinion of the Company's management, all adjustments and disclosures necessary for a fair presentation of the pro forma data have been made.
These unaudited pro forma condensed consolidated financial statements are presented for illustrative purposes only and are not necessarily indicative of the results of operations that would have been achieved had the events reflected been completed as of the dates indicated or of the results that may be obtained in the future. These unaudited pro forma condensed consolidated financial statements and the notes thereto should be read together with the Company's audited consolidated financial statements and the notes thereto as of and for the year ended December 31, 2023, and Management’s Discussion and Analysis included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.
(1)
| UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| As of December 31, 2023 (in billions) | As Reported | GE Vernova Separation(a) | Transaction Accounting Adjustments | Proforma | |||||
| Cash, cash equivalents and restricted cash | $ | 17.0 | $ | (1.6) | $ | (2.0) | (b),(c) | $ | 13.3 |
| Investment securities | 5.7 | — | — | 5.7 | |||||
| Current receivables | 15.5 | (7.4) | 0.7 | (d) | 8.7 | ||||
| Inventories, including deferred inventory costs | 16.5 | (8.2) | — | 8.3 | |||||
| Current contract assets | 1.5 | (6.5) | 7.9 | (e) | 2.9 | ||||
| All other current assets | 3.6 | (2.4) | 0.5 | (f) | 1.8 | ||||
| Current assets | 59.8 | (26.2) | 7.1 | 40.7 | |||||
| Investment securities | 38.0 | — | — | 38.0 | |||||
| Property, plant and equipment – net | 12.5 | (5.2) | — | 7.2 | |||||
| Goodwill | 13.4 | (4.4) | — | 8.9 | |||||
| Other intangible assets – net | 5.7 | (1.0) | — | 4.6 | |||||
| Contract and other deferred assets | 5.4 | (0.6) | — | 4.8 | |||||
| All other assets | 17.7 | (5.4) | 1.6 | (c),(g),(h) | 13.9 | ||||
| Deferred income taxes | 10.6 | (2.9) | 0.2 | (h),(i),(j) | 7.8 | ||||
| Total assets | $ | 163.0 | $ | (45.9) | $ | 8.8 | $ | 126.0 | |
| Short-term borrowings | $ | 1.3 | $ | — | $ | (0.1) | (k) | $ | 1.1 |
| Accounts payable | 15.4 | (8.5) | 0.6 | (d),(l) | 7.5 | ||||
| Contract liabilities and current deferred income | 19.7 | (13.3) | 8.1 | (e),(m) | 14.5 | ||||
| Sales discounts and allowances | — | — | 3.7 | (n) | 3.7 | ||||
| All other current liabilities | 14.5 | (5.9) | (3.4) | ,(f),(i),(j),(m),(n) | 5.2 | ||||
| Current liabilities | 50.9 | (27.7) | 8.9 | 32.1 | |||||
| Deferred income | 1.3 | (0.2) | (0.2) | (m) | 1.0 | ||||
| Long-term borrowings | 19.7 | (0.3) | — | 19.4 | |||||
| Insurance liabilities and annuity benefits | 39.6 | — | — | 39.6 | |||||
| Non-current compensation and benefits | 11.2 | (3.3) | (0.3) | (i) | 7.7 | ||||
| All other liabilities | 11.7 | (4.4) | (0.1) | (g), (j), (m),(o) | 7.1 | ||||
| Total liabilities | 134.5 | (35.9) | 8.3 | 106.9 | |||||
| Common stock | — | — | — | — | |||||
| Accumulated other comprehensive income (loss) – net attributable to the Company | (6.2) | 0.9 | 0.7 | (i),(p) | (4.5) | ||||
| Other capital | 27.0 | (0.1) | — | 26.9 | |||||
| Retained earnings | 86.5 | (9.9) | (0.2) | (q) | 76.4 | ||||
| Less common stock held in treasury | (80.0) | — | — | (80.0) | |||||
| Total shareholders’ equity | 27.4 | (9.1) | 0.5 | 18.8 | |||||
| Noncontrolling interests | 1.2 | (1.0) | — | 0.2 | |||||
| Total equity | 28.6 | (10.0) | 0.5 | 19.1 | |||||
| Total liabilities and equity | $ | 163.0 | $ | (45.9) | $ | 8.8 | $ | 126.0 |
Amounts may not add due to rounding.
(2)
| UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (LOSS) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| For the year ended December 31, 2023<br>(In billions; per-share amounts in dollars) | As Reported | GE Vernova Separation(r) | Transaction Accounting Adjustments | Proforma | |||||
| Revenues | |||||||||
| Sales of equipment | $ | 26.8 | $ | (18.0) | $ | 0.5 | (s) | $ | 9.3 |
| Sales of services | 37.8 | (15.7) | 0.5 | (s) | 22.6 | ||||
| Insurance revenues | 3.4 | — | — | 3.4 | |||||
| Total revenues | 68.0 | (33.7) | 1.1 | 35.3 | |||||
| Costs and expenses | |||||||||
| Cost of equipment sold | 27.7 | (18.2) | 0.4 | (s),(t) | 9.9 | ||||
| Cost of services sold | 22.7 | (10.1) | 0.5 | (s),(t) | 13.0 | ||||
| Selling, general and administrative expenses | 9.2 | (4.7) | (0.4) | (o),(t),(u) | 4.1 | ||||
| Separation costs | 1.0 | — | (0.3) | (v) | 0.7 | ||||
| Research and development | 1.9 | (0.9) | — | 1.0 | |||||
| Interest and other financial charges | 1.1 | (0.1) | — | 1.0 | |||||
| Debt extinguishment costs | — | — | — | — | |||||
| Insurance losses, annuity benefits and other costs | 2.9 | — | — | 2.9 | |||||
| Non-operating benefit costs (income) | (1.6) | 0.6 | — | (1.0) | |||||
| Total costs and expenses | 64.9 | (33.5) | 0.3 | 31.7 | |||||
| Other income | 7.1 | (0.2) | (0.2) | (t),(x) | 6.7 | ||||
| Earnings (loss) from continuing operations before income taxes | 10.2 | (0.4) | 0.6 | 10.4 | |||||
| Benefit (provision) for income taxes | (1.2) | 0.2 | — | (y) | (1.0) | ||||
| Earnings (loss) from continuing operations | 9.0 | (0.2) | 0.6 | 9.4 | |||||
| Less net earnings (loss) attributable to noncontrolling interests | — | — | — | — | |||||
| Preferred stock dividends and other | (0.3) | — | — | (0.3) | |||||
| Net earnings (loss) from continuing operations attributable to common shareholders | $ | 8.8 | $ | (0.2) | $ | 0.6 | $ | 9.1 | |
| Per-share amounts | |||||||||
| Earnings (loss) from continuing operations | |||||||||
| Diluted earnings (loss) per share | $ | 7.98 | $ | 8.30 | |||||
| Basic earnings (loss) per share | $ | 8.06 | $ | 8.38 | |||||
| Average equivalent shares (in millions) | |||||||||
| Diluted | 1,099 | 1,099 | |||||||
| Basic | 1,089 | 1,089 |
Amounts may not add due to rounding.
(3)
| UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (LOSS) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| For the year ended December 31, 2022<br>(In billions; per-share amounts in dollars) | As Reported | GE Vernova Separation(r) | Transaction Accounting Adjustments | Proforma | |||||
| Sales of equipment | $ | 22.3 | $ | (14.9) | $ | 0.4 | (s) | $ | 7.8 |
| Sales of services | 32.8 | (15.1) | 0.7 | (s) | 18.3 | ||||
| Insurance revenues | 3.0 | — | — | 3.0 | |||||
| Total revenues | 58.1 | (30.1) | 1.1 | 29.1 | |||||
| Cost of equipment sold | 23.7 | (15.8) | 0.2 | (s),(t) | 8.2 | ||||
| Cost of services sold | 20.5 | (10.3) | 0.6 | (s),(t) | 10.8 | ||||
| Selling, general and administrative expenses | 9.2 | (4.6) | (0.9) | (s),(t) | 3.7 | ||||
| Separation costs | 0.7 | — | (0.1) | (v) | 0.6 | ||||
| Research and development | 1.8 | (1.0) | — | 0.8 | |||||
| Interest and other financial charges | 1.5 | (0.2) | — | 1.3 | |||||
| Debt extinguishment costs | 0.5 | — | — | 0.5 | |||||
| Insurance losses, annuity benefits and other costs | 2.6 | — | 2.6 | ||||||
| Non-operating benefit costs (income) | (0.4) | 0.3 | 0.1 | (w) | (0.1) | ||||
| Total costs and expenses | 60.1 | (31.5) | (0.1) | 28.4 | |||||
| Other income | 1.2 | (0.4) | — | 0.8 | |||||
| Earnings (loss) from continuing operations before income taxes | (0.8) | 1.1 | 1.2 | 1.5 | |||||
| Benefit (provision) for income taxes | — | 0.1 | (0.2) | (y) | (0.2) | ||||
| Earnings (loss) from continuing operations | (0.8) | 1.2 | 1.0 | 1.3 | |||||
| Less net earnings (loss) attributable to noncontrolling interests | — | — | — | — | |||||
| Preferred stock dividends and other | (0.3) | — | — | (0.3) | |||||
| Net earnings (loss) from continuing operations attributable to common shareholders | $ | (1.1) | $ | 1.2 | $ | 1.0 | $ | 1.1 | |
| Per-share amounts | |||||||||
| Earnings (loss) from continuing operations | |||||||||
| Diluted earnings (loss) per share | $ | (1.00) | $ | 0.96 | |||||
| Basic earnings (loss) per share | $ | (1.00) | $ | 0.96 | |||||
| Average equivalent shares (in millions) | |||||||||
| Diluted | 1,096 | 1,101 | |||||||
| Basic | 1,096 | 1,096 |
Amounts may not add due to rounding.
(4)
| UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (LOSS) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| For the year ended December 31, 2021<br>(In billions; per-share amounts in dollars) | As Reported | GE Vernova Separation(r) | Transaction Accounting Adjustments | Proforma | |||||
| Sales of equipment | $ | 25.1 | $ | (18.3) | $ | 0.7 | (s) | $ | 7.5 |
| Sales of services | 28.3 | (15.2) | 0.9 | (s) | 13.9 | ||||
| Insurance revenues | 3.1 | — | — | 3.1 | |||||
| Total revenues | 56.5 | (33.5) | 1.6 | 24.6 | |||||
| Cost of equipment sold | 25.2 | (18.0) | 0.5 | (s),(t) | 7.6 | ||||
| Cost of services sold | 18.2 | (10.2) | 0.8 | (s) | 8.8 | ||||
| Selling, general and administrative expenses | 8.2 | (4.8) | (0.1) | (s),(t) | 3.3 | ||||
| Separation costs | — | — | — | — | |||||
| Research and development | 1.7 | (1.0) | — | 0.7 | |||||
| Interest and other financial charges | 1.8 | (0.2) | 0.1 | (s) | 1.7 | ||||
| Debt extinguishment costs | 6.5 | — | — | 6.5 | |||||
| Insurance losses, annuity benefits and other costs | 2.2 | — | — | 2.2 | |||||
| Non-operating benefit costs (income) | 1.1 | (0.2) | 0.1 | (w) | 1.0 | ||||
| Total costs and expenses | 64.9 | (34.5) | 1.4 | 31.7 | |||||
| Other income | 2.7 | (0.4) | 0.1 | (s) | 2.4 | ||||
| Earnings (loss) from continuing operations before income taxes | (5.7) | 0.6 | 0.3 | (4.7) | |||||
| Benefit (provision) for income taxes | 0.8 | (0.1) | — | (y) | 0.6 | ||||
| Earnings (loss) from continuing operations | (4.9) | 0.5 | 0.3 | (4.1) | |||||
| Less net earnings (loss) attributable to noncontrolling interests | (0.1) | 0.1 | — | — | |||||
| Preferred stock dividends and other | (0.2) | — | — | (0.2) | |||||
| Net earnings (loss) from continuing operations attributable to common shareholders | $ | (5.1) | $ | 0.4 | $ | 0.3 | $ | (4.4) | |
| Per-share amounts | |||||||||
| Earnings (loss) from continuing operations | |||||||||
| Diluted earnings (loss) per share | $ | (4.62) | $ | (3.98) | |||||
| Basic earnings (loss) per share | $ | (4.62) | $ | (3.98) | |||||
| Average equivalent shares (in millions) | |||||||||
| Diluted | 1,098 | 1,098 | |||||||
| Basic | 1,098 | 1,098 |
Amounts may not add due to rounding.
(5)
NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following items resulted in transaction accounting adjustments in the unaudited pro forma condensed consolidated financial information:
| (a) | Adjustments represent the removal of assets and liabilities attributable to the GE Vernova Separation. | ||
|---|---|---|---|
| (b) | Adjustment represents net cash contributed to GE Vernova of 1.7 billion to be used for future operations such that GE Vernova’s cash balance on the date of completion of the Separation was 4.2 billion, inclusive of 0.6 billion reported in Assets of business held for sale within All other assets as of December 31, 2023. | ||
| (c) | Adjustment represents the transfer of restricted cash of 0.3 billion from the Company to GE Vernova in connection with certain legal matters related to historical operations of the Company, and a corresponding indemnification asset recorded for 0.3 billion in All other assets that reflects the expected return of the cash to the Company in a future reporting period once these legal matters are resolved. | ||
| (d) | 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 as follows: | ||
| Year ended <br>Dec. 31, 2023 | |||
| $ | 0.7 | ||
| $ | 0.7 | ||
| (e) | 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. This account has been renamed as it now reflects long-term service agreements in a liability position, in addition to progress collections and current deferred income. | ||
| (f) | Adjustment represents the transfer of derivative assets and liabilities attributable to GE Vernova from the Company. | ||
| (g) | To support GE Vernova in selling products and services globally, the Company often entered into contracts on behalf of GE Vernova or issued parent company guarantees or trade finance instruments supporting the performance of what were subsidiary legal entities transacting directly with customers, in addition to providing similar credit support for non-customer related activities of GE Vernova (collectively “credit support”). In preparation for the Separation, GE Vernova began working to seek novation or assignment of GE credit support from the Company to GE Vernova. For credit support that remains outstanding at Separation, GE Vernova is obligated to use reasonable best efforts to terminate or replace, and obtain a full release of GE’s obligations and liabilities under all such credit support. Beginning in 2025, GE Vernova will pay a quarterly fee to the Company based on amounts related to the credit support. This adjustment of 0.1 billion reflects the present value of fees the Company estimates it will receive from GE Vernova over the estimated life of these credit support agreements. A liability of 0.2 billion recorded represents the Company's stand ready obligation to perform under these agreements. | ||
| (h) | 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. | ||
| (i) | 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 as follows: | ||
| Year ended <br>Dec. 31, 2023 | |||
| $ | (0.1) | ||
| $ | (0.1) | ||
| $ | (0.3) | ||
| $ | (0.2) | ||
| (j) | Adjustments represent the transfer of tax liabilities attributable to GE Vernova as follows: | ||
| Year ended <br>Dec. 31, 2023 | |||
| $ | 0.4 | ||
| $ | (0.3) | ||
| $ | 0.1 | ||
| (k) | Adjustment represents the transfer of short-term debt attributable to GE Vernova from the Company. |
All values are in US Dollars.
(6)
| (l) | Adjustment represents separation cost liabilities of 0.1 billion incurred by the Company that were attributable to GE Vernova. | |||||
|---|---|---|---|---|---|---|
| (m) | Adjustment represents reclassification of deferred income of 0.2 billion and operating lease liabilities of 0.3 billion attributable to GE Aerospace from non-current liabilities to current liabilities. | |||||
| (n) | Adjustment represents the reclassification of sales discounts and allowances from all other current liabilities to its own financial statement line item. | |||||
| (o) | Adjustment reflects severance costs of 0.1 billion to be incurred by the Company related to the Separation. | |||||
| (p) | Adjustment represents currency translation loss of 0.9 billion attributable to the GE Vernova business transferred to retained earnings. | |||||
| (q) | Represents the effect of adjustments described in notes (b) through (p) on retained earnings. | |||||
| (r) | Adjustments reflect the removal of revenues, costs and expenses and related taxes of GE Vernova. | |||||
| (s) | Income statement adjustments primarily related to the reversal of intercompany eliminations for 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 as follows: | |||||
| Year ended Dec. 31, 2023 | Year ended <br>Dec. 31, 2022 | Year ended <br>Dec. 31, 2021 | ||||
| 0.5 0.4 0.0 | $ | 0.4 | $ | 0.7 | ||
| $ | 0.7 | $ | 0.9 | |||
| $ | 0.4 | $ | 0.7 | |||
| $ | 0.7 | $ | 0.9 | |||
| $ | 0.1 | $ | 0.2 | |||
| $ | — | $ | 0.1 | |||
| $ | — | $ | 0.1 | |||
| (t) | Adjustments primarily reflect restructuring cost incurred by the Company on behalf of GE Vernova as follows: | |||||
| Year ended Dec. 31, 2023 | Year ended <br>Dec. 31, 2022 | Year ended <br>Dec. 31, 2021 | ||||
| $ | (0.2) | $ | (0.2) | |||
| $ | (0.1) | $ | — | |||
| $ | (1.0) | $ | (0.2) | |||
| $ | — | $ | — | |||
| (u) | Adjustment represents 0.1 billion impairment of assets related to the Russia and Ukraine conflict transferred to GE Vernova. | |||||
| (v) | Adjustment represents separation costs incurred by the Company that were attributable to GE Vernova. | |||||
| (w) | Adjustment represents non-operating (costs) income for employee related obligations attributable to GE Vernova. | |||||
| (x) | Adjustment primarily represents 0.1 billion of losses associated with renewable tax equity investments transferred by GE Vernova to the Company prior to Separation. | |||||
| (y) | Adjustment represents the estimated income tax impact of the pro forma transaction accounting adjustments at the applicable statutory income tax rates in effect within the respective tax jurisdictions during the periods presented, tax aspects of global activities attributable to GE Vernova, and tax impact associated with renewable tax equity investments transferred by GE Vernova to the Company prior to separation. |
All values are in US Dollars.
(7)