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DISCONTINUED OPERATIONS | 9 Months Ended
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Sep. 30, 2025
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | 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. GE Vernova. On April 2, 2024, we completed the previously announced separation of GE Vernova. The separation was structured as a tax-free spin-off and was achieved through the Company's pro-rata distribution of all the outstanding shares of GE Vernova to holders of the Company's common stock. In connection with the GE Vernova separation, the historical results of GE Vernova and certain assets and liabilities included in the separation are reported in GE Aerospace consolidated financial statements as discontinued operations. In addition, the Company contributed $515 million of cash to fund GE Vernova’s future operations such that GE Vernova’s cash balance on the date of separation was $4,242 million. We have continuing involvement with GE Vernova primarily through ongoing sales of products, a transition services agreement, through which GE Aerospace and GE Vernova continue to provide certain services to each other for a period of time following the separation, a separation and distribution agreement, including performance and financial guarantees, a tax matters agreement and a trademark licensing agreement. For the nine months ended September 30, 2025, we had direct and indirect sales of $249 million to GE Vernova, primarily related to engine sales and parts. We collected net cash of $609 million related to the transition services agreement and sales of engines and parts for the nine months ended September 30, 2025. GE HealthCare. On January 3, 2023, we completed the previously announced separation of our HealthCare business, into a separate, independent, publicly traded company, GE HealthCare Technologies Inc. (GE HealthCare). The separation was structured as a tax-free spin-off and was achieved through the Company's pro-rata distribution of approximately 80.1% of the outstanding shares of GE HealthCare to holders of the Company's common stock. In connection with the separation, the historical results of GE HealthCare and certain assets and liabilities included in the separation are reported in GE Aerospace consolidated financial statements as discontinued operations. We had continuing involvement with GE HealthCare primarily through a transition services agreement, which was completed as of December 31, 2024, through which GE Aerospace and GE HealthCare continued to provide certain services to each other for a period of time following the separation. In addition, we have a tax matters agreement and a trademark licensing agreement. For the nine months ended September 30, 2025, we collected net cash of $51 million related to these activities, primarily in the first quarter of 2025. Bank BPH. As previously reported, Bank BPH, along with other Polish banks, has been subject to ongoing litigation in Poland related to its portfolio of floating rate residential mortgage loans, with cases brought by individual borrowers seeking relief related to their foreign currency indexed or denominated mortgage loans in various courts throughout Poland. The estimate of total losses for borrower litigation at Bank BPH was $2,476 million and $2,461 million as of September 30, 2025 and December 31, 2024, respectively, with the increase primarily driven by foreign exchange movements. No incremental contributions from GE Aerospace were required during the nine months ended September 30, 2025. For further information about factors that are relevant to the estimate of total losses for borrower litigation at Bank BPH, see Note 22. Future changes or adverse developments could increase our estimate of total losses and potentially require future cash contributions to Bank BPH. The Bank BPH financing receivable portfolio is recorded at the lower of cost or fair value, less cost to sell, which reflects market yields and estimates with respect to ongoing borrower litigation. At September 30, 2025, the total portfolio had no carrying value, net of a valuation allowance. Income (loss) related to ongoing borrower litigation was insignificant in pre-tax charges for the three and nine months ended September 30, 2025 and zero for the three and nine months ended September 30, 2024.
RESULTS OF DISCONTINUED OPERATIONS Three months ended September 30 | 2025 |  | 2024
GE Vernova |  | Bank BPH & Other | Total |  | GE Vernova |  | Bank BPH & Other | Total
Total revenue | $ | — |  |  | $ | — |  | $ | — |  |  | $ | — |  |  | $ | — |  | $ | — |
Cost of equipment and services sold | — |  |  | — |  | — |  |  | — |  |  | — |  | — |
Other income, costs and expenses | 1 |  |  | (7) |  | (6) |  |  | (1) |  |  | 6 |  | 5 |
Net income (loss) of discontinued operations before income taxes | 1 |  |  | (7) |  | (6) |  |  | (1) |  |  | 6 |  | 5 |
Benefit (provision) for income taxes | (2) |  |  | (9) |  | (11) |  |  | 136 |  |  | 1 |  | 137 |
Net income (loss) of discontinued operations, net of taxes | (1) |  |  | (16) |  | (17) |  |  | 135 |  |  | 7 |  | 142 |
Gain (loss) on disposal before income taxes | — |  |  | — |  | — |  |  | — |  |  | 6 |  | 6 |
Benefit (provision) for income taxes | — |  |  | — |  | — |  |  | — |  |  | (1) |  | (1) |
Gain (loss) on disposal, net of taxes | — |  |  | — |  | — |  |  | — |  |  | 6 |  | 6 |
Net income (loss) from discontinued operations, net of taxes | $ | (1) |  |  | $ | (16) |  | $ | (17) |  |  | $ | 135 |  |  | $ | 12 |  | $ | 147 |
RESULTS OF DISCONTINUED OPERATIONS Nine months ended September 30 | 2025 |  | 2024
GE Vernova |  | Bank BPH & Other | Total |  | GE Vernova |  | Bank BPH & Other | Total
Total revenue | $ | — |  |  | $ | — |  | $ | — |  |  | $ | 7,244 |  |  | $ | — |  | $ | 7,244 |
Cost of equipment and services sold | — |  |  | — |  | — |  |  | (6,074) |  |  | — |  | (6,074) |
Other income, costs and expenses | 2 |  |  | (3) |  | — |  |  | (1,300) |  |  | 20 |  | (1,280) |
Net income (loss) of discontinued operations before income taxes | 2 |  |  | (3) |  | — |  |  | (130) |  |  | 20 |  | (110) |
Benefit (provision) for income taxes | (2) |  |  | 13 |  | 10 |  |  | 4 |  |  | 4 |  | 8 |
Net income (loss) of discontinued operations, net of taxes | — |  |  | 10 |  | 10 |  |  | (126) |  |  | 24 |  | (102) |
Gain (loss) on disposal before income taxes | — |  |  | 4 |  | 4 |  |  | — |  |  | 18 |  | 18 |
Benefit (provision) for income taxes | — |  |  | — |  | — |  |  | — |  |  | (1) |  | (1) |
Gain (loss) on disposal, net of taxes | — |  |  | 4 |  | 4 |  |  | — |  |  | 17 |  | 17 |
Net income (loss) from discontinued operations, net of taxes | $ | — |  |  | $ | 14 |  | $ | 14 |  |  | $ | (126) |  |  | $ | 41 |  | $ | (85) |
ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS | September 30, 2025 | December 31, 2024
Cash, cash equivalents and restricted cash(a) | $ | 1,171 |  | $ | 1,327 |
Current receivables | 28 |  | 13 |
Property, plant and equipment - net | 30 |  | 40 |
All other assets | 719 |  | 438 |
Deferred income taxes | 8 |  | 24 |
Assets of discontinued operations(b) | $ | 1,957 |  | $ | 1,841 |
Accounts payable | $ | 27 |  | $ | 30 |
Non-current compensation and benefits | 33 |  | 33 |
All other liabilities | 1,230 |  | 1,254 |
Liabilities of discontinued operations(b) | $ | 1,290 |  | $ | 1,317 |
(a) Included $1,168 million and $1,324 million of cash, cash equivalents and restricted cash related to Bank BPH as of September 30, 2025 and December 31, 2024, respectively, with the decrease primarily driven by purchases of investment securities in the third quarter which are recorded in All Other Assets. (b) Included $1,488 million and $1,594 million of valuation allowances against financing receivables held for sale, of which $1,488 million and $1,517 million related to estimated borrower litigation losses, and $988 million and $944 million in All other liabilities related to estimated borrower litigation losses for Bank BPH’s foreign currency-denominated mortgage portfolio as of September 30, 2025 and December 31, 2024, respectively. Accordingly, total estimated losses related to borrower litigation were $2,476 million and $2,461 million as of September 30, 2025 and December 31, 2024, respectively, with the increase driven by foreign exchange movements. The valuation allowance completely offsets the financing receivables balance as of September 30, 2025 and December 31, 2024.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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