# GE Aerospace: 10-K Risk Factor Changes 2026 vs 2025 > Source: U.S. Securities and Exchange Commission (EDGAR) > Generated: 2026-05-05 > All data extracted directly from official filings. No hallucinated content. ## Summary | Status | Count | |--------|-------| | New risks added | 3 | | Risks removed | 5 | | Risks modified | 38 | | Unchanged | 15 | --- ## New Risk: For the years ended December 31 (In millions) Currency translation adjustments Benefit plans Investment securities and cash flow hedges L Less: other comprehensive income (loss) attributable to noncontrolling interests Less: comprehensive income (loss) attributable to noncontrolling interests STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITYFor the years ended December 31 (In millions)202520242023Common stock issued$15 $15 $15 Beginning balance(3,861)(6,150)(2,272)Currency translation adjustments(43)2,151 2,270 Benefit plans(882)(1,120)(4,745)Investment securities and cash flow hedges749 (1,026)968 Long-duration insurance contracts(761)2,284 (2,371)Accumulated other comprehensive income (loss)$(4,798)$(3,861)$(6,150)Beginning balance24,266 26,962 34,173 Gains (losses) on treasury stock dispositions(1,048)(3,028)(1,845)Stock-based compensation371 361 355 Other changes(a)9 (29)(5,721)Other capital$23,599 $24,266 $26,962 Beginning balance80,488 86,553 83,001 Net income (loss) attributable to the Company8,704 6,556 9,482 Dividends and other transactions with shareholders(b)(1,529)(12,599)(5,937)Other - (21)6 Retained earnings$87,663 $80,488 $86,553 Beginning balance(81,566)(79,976)(81,209)Purchases(7,406)(5,826)(1,244)Dispositions1,170 4,236 2,477 Common stock held in treasury$(87,801)$(81,566)$(79,976)GE Aerospace shareholders' equity balance18,677 19,342 27,403 Noncontrolling interests balance(c)221 223 1,202 Total equity balance at December 31$18,898 $19,564 $28,605 --- ## New Risk: Balance at December 31, 2025 (a) Goodwill adjustments are primarily related to foreign currency exchange. In the fourth quarter of 2025, we performed our annual impairment test. Based on the results of this test, the fair values of each of our reporting units exceeded their carrying values. 20252024INTANGIBLE ASSETS SUBJECT TO AMORTIZATION December 31Useful lives (in years)Gross carryingamountAccumulatedamortizationNetGross carryingamountAccumulatedamortizationNetCustomer-related(a)5-20$3,992 $(2,313)$1,679 $3,850 $(2,083)$1,767 Patents and technology5-152,946 (916)2,031 2,744 (759)1,985 Capitalized software5-101,366 (859)507 1,296 (803)493 Trademarks & other1377 (67)9 70 (58)13 Total$8,380 $(4,155)$4,225 $7,960 $(3,703)$4,257 --- ## New Risk: December 31, 2025 Future policy benefit reserves Investment contracts Other Total December 31, 2024Future policy benefit reserves$24,675 $8,426 $1,018 $357 $34,476 Investment contracts - 719 - 621 1,340 Other - - 116 277 394 Total$24,675 $9,145 $1,134 $1,254 $36,209 --- ## Removed Risk: Liabilities of businesses held for sale *This risk factor was present in the 2025 filing and has been removed.* DISCONTINUED OPERATIONS primarily comprise 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. 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 (post separation) ended December 31, 2024, we had direct and indirect sales of $248 million to GE Vernova, primarily related to engine sales and parts. We collected net cash of $943 million related to the transition services agreement and sales of engines and parts in 2024. 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 have continuing involvement with GE HealthCare primarily through a transition services agreement, through which GE Aerospace and GE HealthCare continue to provide certain services to each other for a period of time following the separation, a tax matters agreement and a trademark licensing agreement. For the year ended December 31, 2024, we collected net cash of $230 million related to these activities. As of December 31, 2024, the transition services agreement was completed. 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. As previously reported, a settlement program was adopted and we recorded a charge of $1,014 million in the quarter ended June 30, 2023. The estimate of total losses for borrower litigation at Bank BPH was $2,461 million and $2,669 million as of December 31, 2024 and 2023, respectively. In order to maintain appropriate regulatory capital levels, in the quarter ended June 30, 2023, we made the previously reported non-cash capital contributions in the form of intercompany loan forgiveness of $1,797 million; no incremental contributions from GE Aerospace were required in 2024. For further information about factors that are relevant to the estimate of total losses for borrower litigation at Bank BPH, see Note 24. 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 December 31, 2024, the total portfolio had no carrying value, net of a valuation allowance. Earnings (loss) related to ongoing borrower litigation included zero, $1,189 million and $720 million in pre-tax charges for the years ended December 31, 2024, 2023 and 2022, respectively. 48 2024 FORM 10-K 48 2024 FORM 10-K 48 2024 FORM 10-K RESULTS OF DISCONTINUED OPERATIONSFor the year ended December 31, 2024 GE VernovaGE HealthCareBank BPH & OtherTotalTotal revenue$7,244 $ - $ - $7,244 Cost of equipment and services sold(6,074) - - (6,074)Other income, costs and expenses(1,299)21 (41)(1,320)Earnings (loss) of discontinued operations before income taxes(129)21 (41)(150)Benefit (provision) for income taxes27 (5)17 40 Earnings (loss) of discontinued operations, net of taxes(102)16 (24)(110)Gain (loss) on disposal before income taxes - - 21 21 Benefit (provision) for income taxes - - (1)(1)Gain (loss) on disposal, net of taxes - - 19 19 Earnings (loss) from discontinued operations, net of taxes$(102)$16 $(4)$(91) --- ## Removed Risk: Balance at December 31, 2024 *This risk factor was present in the 2025 filing and has been removed.* (a) Goodwill adjustments are primarily related to foreign currency exchange. Also in conjunction with the GE Vernova separation, the composition of our reporting units for evaluation of goodwill impairment has changed. As a result, we allocated goodwill among new and realigned reporting units using a relative fair value approach and performed assessments for the new reporting units. We assess the possibility that a reporting unit's fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates. In the third quarter of 2024, we performed an interim impairment test at our Colibrium Additive reporting unit within our Defense & Propulsion Technologies segment given declines in the additive manufacturing industry due to slower adoption of technology, which incorporated a combination of income and market valuation approaches. The results of the analysis indicated that the carrying value of the reporting unit was in excess of fair value and, therefore, we recorded a non-cash impairment loss of $251 million in Goodwill impairments in our Statement of Earnings (Loss). After the impairment charges there is no remaining goodwill in the reporting unit. Colibrium Additive is a critical business for current and future technology at GE Aerospace as we continue to focus on where it can create the most value. In the fourth quarter of 2024, we performed our annual impairment test. Based on the results of this test, the fair values of each of our reporting units exceeded their carrying values. 2024 FORM 10-K 53 2024 FORM 10-K 53 2024 FORM 10-K 53 20242023INTANGIBLE ASSETS SUBJECT TO AMORTIZATION December 31Useful lives (in years)Gross carryingamountAccumulatedamortizationNetGross carryingamountAccumulatedamortizationNetCustomer-related(a)3-15$3,850 $(2,083)$1,767 $3,845 $(1,898)$1,947 Patents and technology5-152,744 (759)1,985 3,000 (814)2,186 Capitalized software51,296 (803)493 1,287 (796)491 Trademarks & other1370 (58)13 73 (55)18 Total$7,960 $(3,703)$4,257 $8,205 $(3,563)$4,642 --- ## Removed Risk: December 31, 2024 *This risk factor was present in the 2025 filing and has been removed.* Future policy benefit reserves Investment contracts Other Total December 31, 2023Future policy benefit reserves$26,832 $9,357 $1,117 $382 $37,689 Investment contracts - 793 - 694 1,487 Other - - 116 285 400 Total$26,832 $10,150 $1,233 $1,361 $39,576 --- ## Removed Risk: NOTE 14. SALES DISCOUNTS AND ALLOWANCES & ALL OTHER LIABILITIES. *This risk factor was present in the 2025 filing and has been removed.* Sales discounts and allowances decreased $266 million in the year ended December 31, 2024, primarily due to higher payments from an increase in aircraft deliveries, partially offset by higher spare part shipments in Commercial Engines & Services. All other current liabilities and All other liabilities primarily includes employee compensation and benefits, equipment project and commercial liabilities, income taxes payable and uncertain tax positions, environmental, health and safety remediations, operating lease liabilities (see Note 6) and product warranties (see Note 24). All other current liabilities increased $60 million in the year ended December 31, 2024, primarily due to an increase in dividends payable of $211 million, an increase in other sundry liabilities at Commercial Engines and Services of $136 million, and an increase in equipment projects and other commercial liabilities of $99 million, partially offset by a decrease in employee compensation and benefits of $355 million. All other liabilities increased $620 million in the year ended December 31, 2024, primarily due to increases in uncertain and other income taxes and related liabilities of $494 million, Environmental, health and safety liabilities of $146 million and indemnity liabilities of $146 million, primarily related to GE Vernova, partially offset by a decrease in operating lease liabilities of $109 million. NOTE 15. INCOME TAXES. GE Aerospace files a consolidated U.S. federal income tax return which enables the company to use tax deductions and credits of one member of the group to reduce the tax that otherwise would have been payable by another member of the group. The effective tax rate reflects the benefit of these tax reductions in the consolidated return. Cash payments are made within the company for tax increases or reductions. . GE Aerospace files a consolidated U.S. federal income tax return which enables the company to use tax deductions and credits of one member of the group to reduce the tax that otherwise would have been payable by another member of the group. The effective tax rate reflects the benefit of these tax reductions in the consolidated return. Cash payments are made within the company for tax increases or reductions . Our businesses are subject to a wide variety of U.S. federal, state and foreign tax laws, regulations and policies. Changes to these laws or regulations may affect our tax liability, return on investments and business operations. On August 16, 2022, the U.S. enacted the Inflation Reduction Act that includes a new corporate alternative minimum tax based upon financial statement income (book minimum tax), and an excise tax on stock buybacks, among other provisions. The new book minimum tax is expected to slow but not eliminate the favorable tax impact of our deferred tax assets, resulting in higher cash tax in some years that would generate future tax credits. The impact of the book minimum tax will depend on our facts in each year and final guidance from the U.S. Department of the Treasury. The OECD (Organisation for Economic Co-operation and Development) has proposed a global minimum tax of 15% of reported profits (Pillar 2) that has been agreed upon in principle by over 140 countries. During 2023, many countries took steps to incorporate Pillar 2 model rule concepts into their domestic laws. Although the model rules provide a framework for applying the minimum tax, countries may enact Pillar 2 slightly differently than the model rules and on different timelines and may adjust domestic tax incentives in response to Pillar 2. In addition, in January 2025, the United States issued an executive order announcing opposition to aspects of these rules. Accordingly, we are still evaluating the potential consequences of Pillar 2 on our longer-term financial position. During 2024, we have incurred insignificant tax expenses in connection with Pillar 2. EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES202420232022U.S. earnings (loss)$4,809 $7,195 $(249)Non-U.S. earnings (loss)2,811 3,246 1,771 Total$7,620 $10,441 $1,522 2024 FORM 10-K 63 2024 FORM 10-K 63 2024 FORM 10-K 63 PROVISION (BENEFIT) FOR INCOME TAXES202420232022CurrentU.S. Federal$310 $(588)$(117)Non-U.S.423 314 307 U.S. State48 134 (48)DeferredU.S. Federal250 622 (382)Non-U.S.59 453 493 U.S. State(128)59 (84)Total$962 $994 $169 Income taxes paid were $852 million, $994 million and $1,128 million for the years ended December 31, 2024, 2023 and 2022, respectively, including payments reported in discontinued operations. RECONCILIATION OF U.S. FEDERAL STATUTORY INCOME TAX RATE TO ACTUAL INCOME TAX RATE202420232022AmountRateAmountRateAmountRateU.S. federal statutory income tax rate$1,600 21.0 %$2,193 21.0 %$320 21.0 %State Taxes, net of federal benefit123 1.6 152 1.5 (114)(7.5)Tax on global activities including exports(a)(92)(1.2)78 0.7 (29)(1.9)U.S. business credits(b)(242)(3.2)(254)(2.4)(198)(13.0)Retained and sold ownership interests(110)(1.4)(1,215)(11.6)2 0.1 All other - net(c)(317)(4.2)40 0.3 188 12.4 (638)(8.4)(1,199)(11.5)(151)(9.9)Actual income tax rate$962 12.6 %$994 9.5 %$169 11.1 % (a)For the years ended December 31, 2024, 2023 and 2022, respectively, the tax expense (benefit) related to the negotiated tax rate in Singapore was $(136) million, $(136) million and $(112) million, and the tax expense (benefit) related to cross-border tax payments and U.S. tax on non-U.S. subsidiaries was $88 million, $121 million and $15 million. (b)Primarily the credit for energy produced from renewable sources from tax equity investments and the credit for research performed in the U.S. (c)For the years ended December 31, 2024, 2023 and 2022, respectively, included $(246) million, $35 million and $127 million for separation income tax costs (benefits) of which zero, $38 million and $66 million was due to the repatriation of previously reinvested earnings. UNRECOGNIZED TAX POSITIONS. Annually, we file over 1,700 income tax returns in over 260 global taxing jurisdictions. As a multinational with operations around the world, we are under examination in many taxing jurisdictions and in some cases engaged in litigation, including our legacy businesses. The IRS is currently auditing our consolidated U.S. income tax returns for 2016-2020. A summary and reconciliation of our unrecognized tax benefits are as follows: UNRECOGNIZED TAX BENEFITS December 31202420232022Unrecognized tax benefits$2,824 $3,399 $3,951 Portion that, if recognized, would reduce tax expense and effective tax rate(a)2,110 2,708 3,072 Accrued interest on unrecognized tax benefits609 635 614 Accrued penalties on unrecognized tax benefits14 111 111 Reasonably possible reduction to the balance of unrecognized tax benefitsin succeeding 12 months0-3000-6100-650Portion that, if recognized, would reduce tax expense and effective tax rate(a)0-2700-5500-600 --- ## Removed Risk: NOTE 27. QUARTERLY INFORMATION (UNAUDITED) *This risk factor was present in the 2025 filing and has been removed.* First quarterSecond quarterThird quarterFourth quarter(Per-share amounts in dollars)20242023202420232024202320242023Total revenue$8,955 $7,836 $9,094 $8,755 $9,842 $9,302 $10,812 $9,456 Sales of equipment and services8,076 7,044 8,223 7,907 8,943 8,461 9,879 8,547 Cost of equipment and services sold5,747 4,998 5,574 5,693 6,226 5,992 6,761 6,256 Earnings (loss) from continuing operations1,744 6,709 1,322 1,256 1,695 307 1,897 1,176 Earnings (loss) from discontinued operations(178)772 (54)(1,218)147 31 (6)413 Net earnings (loss)1,565 7,481 1,268 37 1,842 338 1,891 1,588 Less net earnings (loss) attributable to noncontrolling interests27 (27)2 4 (10)(14)(8) - Net earnings (loss) attributable to the Company$1,539 $7,508 $1,266 $33 $1,852 $352 $1,899 $1,589 Per-share amounts - earnings (loss) from continuing operationsDiluted earnings (loss) per share$1.58 $5.98 $1.20 $1.09 $1.56 $0.20 $1.75 $1.08 Basic earnings (loss) per share1.59 6.02 1.21 1.10 1.57 0.20 1.77 1.09 Per-share amounts - earnings (loss) from discontinued operationsDiluted earnings (loss) per share(0.18)0.73 (0.05)(1.11)0.13 0.04 (0.01)0.37 Basic earnings (loss) per share(0.18)0.74 (0.05)(1.12)0.14 0.04 (0.01)0.37 Per-share amounts - net earnings (loss)Diluted earnings (loss) per share1.40 6.71 1.15 (0.02)1.70 0.24 1.75 1.44 Basic earnings (loss) per share1.41 6.76 1.16 (0.02)1.71 0.24 1.76 1.46 Dividends declared(a) - 0.08 0.56 0.08 0.28 0.08 0.28 0.08 Less net earnings (loss) attributable to noncontrolling interests Per-share amounts - earnings (loss) from continuing operations Per-share amounts - earnings (loss) from discontinued operations (a) Following the separation of GE Vernova, the Board of Directors declared a dividend of $0.28 per share in April 2024, which reflects our dividend as a standalone company, that was paid in April 2024. In June 2024, the Board of Directors declared a dividend of $0.28 per share that was paid in July 2024. Earnings-per-share amounts are computed independently each quarter for earnings (loss) from continuing operations, earnings (loss) from discontinued operations and net earnings (loss). As a result, the sum of each quarter's per-share amount may not equal the total per-share amount for the respective year; and the sum of per-share amounts from continuing operations and discontinued operations may not equal the total per-share amounts for net earnings (loss) for the respective quarters. --- ## Modified Risk: COMPONENTS OF THE NET DEFERRED INCOME TAX ASSET (LIABILITY) December 31 **Key changes:** - Updated: "loss carryforwards of $1,439 million and $1,362 million as of December 31, 2025 and 2024, respectively." - Updated: "state losses and credit carryforwards of $479 million and $490 million as of December 31, 2025 and 2024, respectively." - Updated: "state loss and credit carryforwards of $1,420 million and $1,364 million as of December 31, 2025 and 2024, respectively, related primarily to excess U.S." - Updated: "DEFERRED TAX ASSETS VALUATION ALLOWANCEBalance at December 31, 2022$(5,164)Additions charged to income tax expense - Reductions credited to income tax expense102 Other adjustments(a)1,646 Balance at December 31, 2023$(3,416)Additions charged to income tax expense(2)Reductions credited to income tax expense184 Other adjustments18 Balance at December 31, 2024$(3,216)Additions charged to income tax expense(2)Reductions credited to income tax expense71 Other adjustments(191)Balance at December 31, 2025$(3,338)" **Prior (2025):** Intangibles Depreciation (a)Included valuation allowances for non-U.S. loss carryforwards of $1,362 million and $1,465 million as of December 31, 2024 and 2023, respectively. The net deferred tax asset as of December 31, 2024 of $529 million relates to net operating losses that may be carried forward indefinitely. (b) Included valuation allowances for U.S. state losses and credit carryforwards of $490 million and $639 million as of December 31, 2024 and 2023, respectively. Of the $142 million of net deferred tax assets for U.S. state losses and credit carryforwards as of December 31, 2024, $33 million relates to state attributes that expire in various year ending from December 31, 2025 through December 31, 2027, $104 million relates to state attributes that expire various years ending from December 31, 2028 through December 31, 2044, and $5 million relates to state attributes that may be carried forward indefinitely. (c) Included valuation allowances related to assets other than non-U.S. loss carryforwards and U.S. state loss and credit carryforwards of $1,364 million and $1,312 million as of December 31, 2024 and 2023, respectively, related primarily to excess U.S. federal capital loss and foreign tax credit carryforwards. 2024 FORM 10-K 65 2024 FORM 10-K 65 2024 FORM 10-K 65 DEFERRED TAX ASSETS VALUATION ALLOWANCEBalance at December 31, 2021$(3,348)Additions charged to income tax expense(10)Reductions credited to income tax expense - Other adjustments(a)(1,806)Balance at December 31, 2022$(5,164)Additions charged to income tax expense - Reductions credited to income tax expense102 Other adjustments(b)1,646 Balance at December 31, 2023$(3,416)Additions charged to income tax expense(2)Reductions credited to income tax expense184 Other adjustments18 Balance at December 31, 2024$(3,216) **Current (2026):** Intangibles Depreciation (a)Included valuation allowances for non-U.S. loss carryforwards of $1,439 million and $1,362 million as of December 31, 2025 and 2024, respectively. The net deferred tax asset as of December 31, 2025 of $694 million relates to net operating losses that may be carried forward indefinitely. (b) Included valuation allowances for U.S. state losses and credit carryforwards of $479 million and $490 million as of December 31, 2025 and 2024, respectively. Of the $95 million of net deferred tax assets for U.S. state losses and credit carryforwards as of December 31, 2025, $12 million relates to state attributes that expire in various year ending from December 31, 2026 through December 31, 2028, $78 million relates to state attributes that expire various years ending from December 31, 2029 through December 31, 2045, and $5 million relates to state attributes that may be carried forward indefinitely. (c) Included valuation allowances related to assets other than non-U.S. loss carryforwards and U.S. state loss and credit carryforwards of $1,420 million and $1,364 million as of December 31, 2025 and 2024, respectively, related primarily to excess U.S. federal capital loss and foreign tax credit carryforwards. DEFERRED TAX ASSETS VALUATION ALLOWANCEBalance at December 31, 2022$(5,164)Additions charged to income tax expense - Reductions credited to income tax expense102 Other adjustments(a)1,646 Balance at December 31, 2023$(3,416)Additions charged to income tax expense(2)Reductions credited to income tax expense184 Other adjustments18 Balance at December 31, 2024$(3,216)Additions charged to income tax expense(2)Reductions credited to income tax expense71 Other adjustments(191)Balance at December 31, 2025$(3,338) --- ## Modified Risk: (Dividends per share in dollars) **Key changes:** - Updated: "AOCI before reclasses - net of taxes of $(157), $5 and $74 Reclasses from AOCI - net of taxes of $ - , $103 and $(626)(a) AOCI before reclasses - net of taxes of $(117), $22 and $(497) Reclasses from AOCI - net of taxes of $(137), $(269) and $(778)(a) AOCI before reclasses - net of taxes of $192 , $(271) and $248 Reclasses from AOCI - net of taxes of $7, $4 and $(7) AOCI before reclasses - net of taxes of $(202), $607 and $(630)" **Prior (2025):** AOCI before reclasses - net of taxes of $5, $74 and $144 Reclasses from AOCI - net of taxes of $103, $(626) and $ - (a) AOCI before reclasses - net of taxes of $22, $(497) and $597 Reclasses from AOCI - net of taxes of $(269), $(778), and $216(a) AOCI before reclasses - net of taxes of $(271), $248 and $(1,861) Reclasses from AOCI - net of taxes of $4, $(7) and $(20) AOCI before reclasses - net of taxes of $607, $(630) and $2,160 **Current (2026):** AOCI before reclasses - net of taxes of $(157), $5 and $74 Reclasses from AOCI - net of taxes of $ - , $103 and $(626)(a) AOCI before reclasses - net of taxes of $(117), $22 and $(497) Reclasses from AOCI - net of taxes of $(137), $(269) and $(778)(a) AOCI before reclasses - net of taxes of $192 , $(271) and $248 Reclasses from AOCI - net of taxes of $7, $4 and $(7) AOCI before reclasses - net of taxes of $(202), $607 and $(630) --- ## Modified Risk: NOTE 20. RESTRUCTURING CHARGES AND SEPARATION COSTS **Key changes:** - Updated: "RESTRUCTURING AND OTHER CHARGES202520242023Workforce reductions$(33)$107 $166 Plant closures & associated costs and other asset write-downs(51)74 84 Acquisition/disposition net charges and other - 366 10 $(84)$546 $260 Cost of equipment/services$6 $27 $10 Selling, general and administrative expenses(90)519 250 Total restructuring and other charges(a)$(84)$546 $260 Restructuring and other cash expenditures(b)$69 $507 $204 Acquisition/disposition net charges and other (a) For the year ended December 31, 2024, restructuring and other charges included cost of $363 million for the settlement of the Sjunde AP-Fonden shareholder lawsuit and also included income of $81 million as a result of a change in estimate of the post-employment severance benefit reserve in connection with the separation of GE Vernova." - Updated: "Post-separation, we continue to incur operational and transition costs related to ongoing separation activities, including employee costs, professional fees, costs to establish certain stand-alone functions and information technology systems, and other transformation and transaction costs to transition to a stand-alone public company." - Updated: "Additionally, we incurred $286 million pre-tax separation costs, recognized $86 million of net tax benefit and spent $239 million in cash, respectively, related to GE Vernova." - Updated: "(c)Included investment securities in our run-off insurance operations of $37,842 million and $37,352 million as of December 31, 2025 and 2024, respectively, which are Level 2 and 3." - Updated: "Balance atJanuary 1Net realized/unrealized gains(losses)(a)Purchases(b)Sales & Settlements(c)TransfersintoLevel 3Transfersout ofLevel 3(d)Balance atDecember 312025Investment securities$5,074 $27 $2,155 $(2,753)$13 $(1,293)$3,222 2024Investment securities$6,841 $20 $1,505 $(768)$12 $(2,536)$5,074" **Prior (2025):** RESTRUCTURING AND OTHER CHARGES. This table is inclusive of all restructuring charges in our segments and at Corporate & Other. Separately, in our reported segment results, 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 & Other. This table is inclusive of all restructuring charges in our segments and at Corporate & Other. Separately, in our reported segment results, 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 & Other. RESTRUCTURING AND OTHER CHARGES202420232022Workforce reductions$107 $166 $162 Plant closures & associated costs and other asset write-downs74 84 368 Acquisition/disposition net charges and other366 10 - $546 $260 $530 Cost of equipment/services$27 $10 $15 Selling, general and administrative expenses519 250 516 Total restructuring and other charges(a)$546 $260 $530 Restructuring and other cash expenditures(b)$507 $204 $116 Acquisition/disposition net charges and other (a) In the second quarter of 2024, included income of $81 million, as a result of a change in estimate of the post-employment severance benefit reserve in connection with the separation of GE Vernova. (b) Primarily related to the final settlement payment of $363 million for the Sjunde AP-Fonden shareholder lawsuit in the fourth quarter of 2024 and employee severance payments. The restructuring liability as of December 31, 2024, 2023 and 2022 was $242 million, $311 million and $273 million, respectively. Restructuring and other charges for new and ongoing programs primarily included exit activities announced in the fourth quarter of 2022 reflecting lower Corporate & Other shared-service and footprint needs as a result of the GE HealthCare and GE Vernova spin-offs. Additionally, in 2024, restructuring and other charges included costs of $363 million for the settlement of the Sjunde AP-Fonden shareholder lawsuit. See Note 24 for additional information. SEPARATION COSTS. In November 2021, the Company announced its plan to form three industry-leading, global public companies focused on the growth sectors of aerospace, healthcare and energy. As discussed in Note 2, we completed this plan with the spin of GE Vernova in the second quarter of 2024. Post-separation, we expect to continue to incur operational and transition costs related to ongoing separation activities, including employee costs, professional fees, costs to establish certain stand-alone functions and information technology systems, and other transformation and transaction costs to transition to a stand-alone public company. These costs are presented as separation costs in our Statement of Earnings (Loss). For the years ended December 31, 2024, 2023 and 2022, we incurred pre-tax separation expense of $492 million, $692 million and $625 million, and paid $800 million, $820 million and $134 million in cash, respectively. We recognized $349 million, $113 million and $4 million of net tax benefits for the years ended December 31, 2024, 2023 and 2022, respectively, including deferred tax benefits associated with state tax attributes and the tax benefit of losses on separation-related entity restructuring. The pre-tax separation costs specifically identifiable to GE HealthCare and GE Vernova are now reflected in discontinued operations. For the year ended December 31, 2024, we recognized $15 million in pre-tax income, $3 million of net tax expense, and spent $16 million in cash, respectively, related to GE HealthCare. In addition, we recognized pre-tax separation costs of $96 million, recognized $20 million of net tax benefit and spent $199 million in cash, respectively, related to GE Vernova. For the year ended December 31, 2023, we incurred $22 million in pre-tax costs, recognized $5 million of net tax benefit and spent $182 million in cash, respectively, related to GE HealthCare. Related to GE Vernova, we incurred $286 million pre-tax separation costs, recognized $86 million of net tax benefit and spent $239 million in cash for the year ended December 31, 2023. For the year ended December 31, 2022, we incurred $258 million in pre-tax costs, recognized $54 million of net tax benefit and spent $103 million in cash, respectively, related to GE HealthCare. Related to GE Vernova, we incurred $90 million pre-tax separation costs, recognized $19 million of net tax benefit and spent $24 million in cash for the year ended December 31, 2022. NOTE 21. FAIR VALUE MEASUREMENTS Our assets and liabilities measured at fair value on a recurring basis include debt securities mainly supporting obligations to annuitants and policyholders in our run-off insurance operations, our equity interests in AerCap and derivatives. Our assets and liabilities measured at fair value on a recurring basis include debt securities mainly supporting obligations to annuitants and policyholders in our run-off insurance operations, our equity interests in AerCap and derivatives. 2024 FORM 10-K 69 2024 FORM 10-K 69 2024 FORM 10-K 69 ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASISLevel 1Level 2Level 3(a)Nettingadjustment(b)Net balance(c)December 312024202320242023202420232024202320242023Investment securities$14 $4,767 $33,635 $32,098 $5,074 $6,841 $ - $ - $38,723 $43,706 Derivatives - - 243 270 - - (55)(28)188 243 Total assets$14 $4,767 $33,878 $32,368 $5,074 $6,841 $(55)$(28)$38,911 $43,949 Derivatives$ - $ - $131 $78 $ - $ - $(54)$(26)$77 $53 Other(d) - - 367 311 - - - - 367 311 Total liabilities$ - $ - $498 $389 $ - $ - $(54)$(26)$444 $364 (a)Included $1,627 million of U.S. corporate debt securities, $1,935 million of Mortgage and asset-backed debt securities, and the $982 million AerCap note at December 31, 2024. Included $3,873 million of U.S. corporate debt securities, $1,491 million of Mortgage and asset-backed debt securities, and the $944 million AerCap note at December 31, 2023. (b)The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk. (c)Included investment securities in our run-off insurance operations of $37,352 million and $37,592 million as of December 31, 2024 and 2023, respectively, which are Level 2 and 3. See Notes 3 and 22 for further information on the composition of our investment securities and derivative portfolios. (d)Primarily represents the liabilities associated with certain of our deferred incentive compensation plans. LEVEL 3 INSTRUMENTS. The majority of our Level 3 balances comprised debt securities classified as available-for-sale with changes in fair value recorded in Other comprehensive income. Balance atJanuary 1Net realized/unrealized gains(losses)(a)Purchases(b)Sales & SettlementsTransfersintoLevel 3Transfersout ofLevel 3(c)Balance atDecember 312024Investment securities$6,841 $20 $1,505 $(768)$12 $(2,536)$5,074 2023Investment securities$6,421 $195 $617 $(398)$37 $(30)$6,841 **Current (2026):** RESTRUCTURING AND OTHER CHARGES. This table is inclusive of all restructuring charges in our segments and at Corporate & Other. Separately, in our reported segment results, significant, higher-cost restructuring programs, primarily related to the separations, are excluded from measurement of segment operating performance for internal and external purposes; those excluded amounts are reported in Restructuring and other charges for Corporate & Other. This table is inclusive of all restructuring charges in our segments and at Corporate & Other. Separately, in our reported segment results, significant, higher-cost restructuring programs, primarily related to the separations, are excluded from measurement of segment operating performance for internal and external purposes; those excluded amounts are reported in Restructuring and other charges for Corporate & Other. RESTRUCTURING AND OTHER CHARGES202520242023Workforce reductions$(33)$107 $166 Plant closures & associated costs and other asset write-downs(51)74 84 Acquisition/disposition net charges and other - 366 10 $(84)$546 $260 Cost of equipment/services$6 $27 $10 Selling, general and administrative expenses(90)519 250 Total restructuring and other charges(a)$(84)$546 $260 Restructuring and other cash expenditures(b)$69 $507 $204 Acquisition/disposition net charges and other (a) For the year ended December 31, 2024, restructuring and other charges included cost of $363 million for the settlement of the Sjunde AP-Fonden shareholder lawsuit and also included income of $81 million as a result of a change in estimate of the post-employment severance benefit reserve in connection with the separation of GE Vernova. (b) Restructuring and other cash expenditures were primarily related to employee severance payments. Additionally, included $363 million for the final settlement payment for the Sjunde AP-Fonden shareholder lawsuit for the year ended December 31, 2024. See Note 24 for further information. The restructuring liability as of December 31, 2025, 2024 and 2023 was $91 million, $242 million and $311 million, respectively. For the years ended December 31, 2025, 2024 and 2023, restructuring and other charges for ongoing programs primarily included exit activities announced in the fourth quarter of 2022, reflecting lower Corporate & Other shared-service and footprint needs as a result of the GE HealthCare and GE Vernova spin-offs. During the fourth quarter of 2025, we substantially completed this separation-related restructuring activity. Based on the hiring needs and information technology capacity demands of the three public companies, we reduced our reserves by $164 million, which is reflected in the table above. SEPARATION COSTS. In November 2021, the Company announced its plan to form three industry-leading, global public companies focused on the growth sectors of aerospace, healthcare and energy. As discussed in Note 2, we completed this plan with the spin of GE Vernova in the second quarter of 2024. Post-separation, we continue to incur operational and transition costs related to ongoing separation activities, including employee costs, professional fees, costs to establish certain stand-alone functions and information technology systems, and other transformation and transaction costs to transition to a stand-alone public company. These costs are presented as separation costs in our Statement of Operations. 66 2025 FORM 10-K 66 2025 FORM 10-K 66 2025 FORM 10-K For the years ended December 31, 2025, 2024 and 2023, we incurred pre-tax separation expense of $202 million, $492 million and $692 million, and paid $245 million, $800 million, and $820 million in cash, respectively. We recognized $129 million, $349 million and $113 million of net tax benefits for the years ended December 31, 2025, 2024 and 2023, respectively, including deferred tax benefits associated with a non-U.S. valuation allowance release and state tax attributes and the tax benefit of losses on separation-related entity restructuring. The pre-tax separation costs specifically identifiable to GE HealthCare and GE Vernova are reflected in discontinued operations. For the year ended December 31, 2025, costs, cash spend and taxes incurred were insignificant for both GE Healthcare and GE Vernova. For the year ended December 31, 2024, we incurred $15 million in pre-tax costs, recognized $3 million of net tax expense and spent $16 million in cash, respectively, related to GE HealthCare. Additionally, we incurred $96 million pre-tax separation costs, recognized $20 million of net tax benefit and spent $199 million in cash, respectively, related to GE Vernova. For the year ended December 31, 2023, we incurred $22 million in pre-tax costs, recognized $5 million of net tax benefit and spent $182 million in cash, respectively, related to GE HealthCare. Additionally, we incurred $286 million pre-tax separation costs, recognized $86 million of net tax benefit and spent $239 million in cash, respectively, related to GE Vernova. NOTE 21. FAIR VALUE MEASUREMENTS. Our assets and liabilities measured at fair value on a recurring basis include debt securities mainly supporting obligations to annuitants and policyholders in our run-off insurance operations and derivatives. Our assets and liabilities measured at fair value on a recurring basis include debt securities mainly supporting obligations to annuitants and policyholders in our run-off insurance operations and derivatives. ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASISLevel 1Level 2Level 3(a)Nettingadjustment(b)Net balance(c)December 312025202420252024202520242025202420252024Investment securities$655 $14 $34,911 $33,635 $3,222 $5,074 $ - $ - $38,788 $38,723 Derivatives - - 247 243 - - (60)(55)187 188 Total assets$655 $14 $35,158 $33,878 $3,222 $5,074 $(60)$(55)$38,975 $38,911 Derivatives$ - $ - $129 $131 $ - $ - $(58)$(54)$71 $77 Other(d) - - 400 367 - - - - 400 367 Total liabilities$ - $ - $530 $498 $ - $ - $(58)$(54)$472 $444 Derivatives Derivatives Derivatives Derivatives (a)Included $292 million of U.S. corporate debt securities and $2,530 million of Mortgage and asset-backed debt securities as of December 31, 2025. Included $1,627 million of U.S. corporate debt securities, $1,935 million of Mortgage and asset-backed debt securities and the $982 million AerCap note as of December 31, 2024. (b)The netting of derivative receivables and payables is permitted when a legally enforceable master netting agreement exists. Amounts include fair value adjustments related to our own and counterparty non-performance risk. (c)Included investment securities in our run-off insurance operations of $37,842 million and $37,352 million as of December 31, 2025 and 2024, respectively, which are Level 2 and 3. See Notes 3 and 22 for further information on the composition of our investment securities and derivative portfolios. (d)Primarily represents the liabilities associated with certain of our deferred incentive compensation plans. LEVEL 3 INSTRUMENTS. The majority of our Level 3 balances comprised debt securities classified as available-for-sale with changes in fair value recorded in Other comprehensive income. Balance atJanuary 1Net realized/unrealized gains(losses)(a)Purchases(b)Sales & Settlements(c)TransfersintoLevel 3Transfersout ofLevel 3(d)Balance atDecember 312025Investment securities$5,074 $27 $2,155 $(2,753)$13 $(1,293)$3,222 2024Investment securities$6,841 $20 $1,505 $(768)$12 $(2,536)$5,074 --- ## Modified Risk: NOTE 5. INVENTORIES, INCLUDING DEFERRED INVENTORY COSTS **Key changes:** - Updated: "December 3120252024Raw materials and work in process$9,354 $7,372 Finished goods1,542 1,459 Deferred inventory costs(a)972 932 Inventories, including deferred inventory costs$11,868 $9,763 Raw materials and work in process (a) Represents deferred labor and overhead costs on time and material service contracts and other costs of products and services for which the criteria for revenue recognition has not yet been met." **Prior (2025):** December 3120242023Raw materials and work in process$7,372 $6,531 Finished goods1,459 1,209 Deferred inventory costs(a)932 544 Inventories, including deferred inventory costs$9,763 $8,284 Raw materials and work in process (a) Represents deferred labor and overhead costs on time and material service contracts and other costs of products and services for which the criteria for revenue recognition has not yet been met. **Current (2026):** December 3120252024Raw materials and work in process$9,354 $7,372 Finished goods1,542 1,459 Deferred inventory costs(a)972 932 Inventories, including deferred inventory costs$11,868 $9,763 Raw materials and work in process (a) Represents deferred labor and overhead costs on time and material service contracts and other costs of products and services for which the criteria for revenue recognition has not yet been met. --- ## Modified Risk: NOTE 4. CURRENT AND LONG-TERM RECEIVABLES **Key changes:** - Updated: "CURRENT RECEIVABLESDecember 3120252024Customer receivables$9,269 $7,385 Revenue sharing and other partner receivables(a)1,322 1,113 Non-income based tax receivables165 128 Supplier advances867 546 Receivables from disposed businesses34 99 Other sundry receivables209 162 Allowance for credit losses(94)(106)Total current receivables$11,773 $9,327 (a) Revenue sharing and other partner receivables are primarily amounts due from revenue sharing partners who participate in engine programs by developing and supplying certain engine components through the life of the program or other partners who support our production or aftermarket activities." - Updated: "The Company sold current customer receivables to third parties and subsequently collected $133 million and $494 million in the years ended December 31, 2025 and 2024, respectively, related primarily to our participation in customer-sponsored supply chain finance programs." **Prior (2025):** CURRENT RECEIVABLESDecember 3120242023Customer receivables$7,385 $6,397 Revenue sharing and other partner receivables(a)1,113 1,252 Non-income based tax receivables128 129 Supplier advances546 401 Receivables from disposed businesses99 121 Other sundry receivables162 534 Allowance for credit losses(106)(132)Total current receivables$9,327 $8,703 (a) Revenue sharing and other partner receivables are primarily amounts due from revenue sharing partners who participate in engine programs by developing and supplying certain engine components through the life of the program or other partners who support our production or aftermarket activities. The revenue sharing partners share in program revenue, receive a share of customer progress payments and share costs related to discounts and warranties. Sales of customer receivables. From time to time, the Company sells current or long-term receivables to third parties in response to customer-sponsored requests or programs, to facilitate sales, or for risk mitigation purposes. The Company sold current customer receivables to third parties and subsequently collected $494 million and $520 million in the years ended December 31, 2024 and 2023, respectively, related primarily to our participation in customer-sponsored supply chain finance programs. Within these programs, primarily in the Commercial Engines & Services business, the Company has no continuing involvement; fees associated with the transferred receivables are covered by the customer and cash is received at the original invoice value and due date. LONG-TERM RECEIVABLESDecember 3120242023Long-term customer receivables$122 $163 Supplier advances50 32 Sundry receivables106 158 Allowance for credit losses(85)(4)Total long-term receivables $194 $349 Long-term customer receivables **Current (2026):** CURRENT RECEIVABLESDecember 3120252024Customer receivables$9,269 $7,385 Revenue sharing and other partner receivables(a)1,322 1,113 Non-income based tax receivables165 128 Supplier advances867 546 Receivables from disposed businesses34 99 Other sundry receivables209 162 Allowance for credit losses(94)(106)Total current receivables$11,773 $9,327 (a) Revenue sharing and other partner receivables are primarily amounts due from revenue sharing partners who participate in engine programs by developing and supplying certain engine components through the life of the program or other partners who support our production or aftermarket activities. The revenue sharing partners share in program revenue, receive a share of customer progress payments and share costs related to discounts and warranties. Sales of customer receivables. From time to time, the Company sells current or long-term receivables to third parties in response to customer-sponsored requests or programs, to facilitate sales, or for risk mitigation purposes. The Company sold current customer receivables to third parties and subsequently collected $133 million and $494 million in the years ended December 31, 2025 and 2024, respectively, related primarily to our participation in customer-sponsored supply chain finance programs. Within these programs, primarily in the Commercial Engines & Services segment, the Company has no continuing involvement; fees associated with the transferred receivables are covered by the customer and cash is received at the original invoice value and due date. LONG-TERM RECEIVABLESDecember 3120252024Long-term customer receivables$173 $122 Supplier advances94 50 Sundry receivables105 106 Allowance for credit losses(96)(85)Total long-term receivables $276 $194 Long-term customer receivables --- ## Modified Risk: AOCI at December 31 **Key changes:** - Updated: "(a) The total reclassifications from AOCI included $1,590 million, including currency translation of $2,174 million and benefit plans of $(584) million, net of taxes, in 2024 related to the separation of GE Vernova." - Updated: "Dividends on GE preferred stock totaled $237 million, including cash dividends of $236 million, for the year ended December 31, 2023." - Updated: "GE Aerospace common stock shares outstanding were 1,048,766,702 and 1,073,692,183 at December 31, 2025 and December 31, 2024, respectively." - Updated: "Restricted stock units (RSUs) represent the right to receive, upon vesting and lapse of restrictions, one share of GE Aerospace common stock for each unit granted." - Updated: "64 2025 FORM 10-K 64 2025 FORM 10-K 64 2025 FORM 10-K WEIGHTED AVERAGE GRANT DATE FAIR VALUE202520242023Stock options$79.55 $65.16 $36.10 RSUs212.45 160.70 89.6 PSUs221.46 150.05 89.44 Key assumptions used in the Black-Scholes valuation for stock options include: risk free rates of 4.1%, 4.6%, and 4.2%, dividend yields of 0.7%, 0.7%, and 0.4%, expected volatility of 36%, 36%, and 36%, expected lives of 6.1 years, 6.1 years, and 6.8 years, and strike prices of $202.16, $160.51, and $88.15 for 2025, 2024 and 2023, respectively." **Prior (2025):** (a)Includes reclassifications from AOCI related to the separations of GE Vernova and GE HealthCare. In the second quarter of 2024, reclassifications of $1,590 million, net of taxes, included currency translation of $2,174 million and benefit plans of $(584) million, related to GE Vernova. In the first quarter of 2023, reclassifications of $195 million, net of taxes, included currency translation of $2,234 million and benefit plans of $(2,030) million, related to GE HealthCare. Preferred stock. In September 2023, we redeemed the remaining $5,795 million of outstanding GE preferred stock. We redeemed $144 million of GE preferred stock in the year ended December 31, 2022. Dividends on GE preferred stock totaled $237 million and $289 million, including cash dividends of $236 million and $284 million, for the years ended December 31, 2023 and 2022, respectively. 66 2024 FORM 10-K 66 2024 FORM 10-K 66 2024 FORM 10-K Common stock. GE Aerospace's authorized common consists of 1,650 million shares having a par value of $0.01 each, with 1,462 million shares issued. Common stock shares outstanding were 1,073,692,183 and 1,088,415,995 at December 31, 2024 and December 31, 2023, respectively. We repurchased 32.0, 11.0 and 13.6 million shares for a total of $5,414 million, $1,135 million and $1,000 million for the years ended December 31, 2024, 2023 and 2022, respectively. This included repurchases of 12.5 million shares for $2,170 million using accelerated stock repurchases in 2024, which were utilized as a mechanism to achieve planned repurchase volumes within a quarter during closed windows. The Company's share repurchase program does not obligate it to acquire any specific number of shares. Under this program, shares may be purchased in the open market, in privately negotiated transactions, under accelerated share repurchase programs or under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended. NOTE 17. SHARE-BASED COMPENSATION. We grant stock options, restricted stock units and performance share units to employees under the 2022 Long-Term Incentive Plan. Grants made under all plans must be approved by the Management Development and Compensation Committee of GE Aerospace's Board of Directors, which is composed entirely of independent directors. We record compensation expense for awards expected to vest over the vesting period. We estimate forfeitures based on experience and adjust expense to reflect actual forfeitures. When options are exercised, restricted stock units vest and performance share awards are earned, we issue shares from treasury stock. We grant stock options, restricted stock units and performance share units to employees under the 2022 Long-Term Incentive Plan. Grants made under all plans must be approved by the Management Development and Compensation Committee of GE Aerospace's Board of Directors, which is composed entirely of independent directors. We record compensation expense for awards expected to vest over the vesting period. We estimate forfeitures based on experience and adjust expense to reflect actual forfeitures. When options are exercised, restricted stock units vest and performance share awards are earned, we issue shares from treasury stock. Stock options provide employees the opportunity to purchase GE Aerospace shares in the future at the market price of our stock on the date the award is granted (the strike price). The options become exercisable over the vesting period, typically three years, and expire 10 years from the grant date if not exercised. Restricted stock units (RSU) provide an employee with the right to receive one share of GE Aerospace stock when the restrictions lapse over the vesting period. Upon vesting, each RSU is converted into one share of GE Aerospace common stock for each unit. Performance stock units (PSU) and performance shares provide an employee with the right to receive shares of GE Aerospace stock based upon achievement of certain performance or market metrics. Upon vesting, each PSU earned is converted into shares of GE Aerospace common stock. We value stock options using a Black-Scholes option pricing model, RSUs using market price on grant date, and PSUs and performance shares using market price on grant date and a Monte Carlo simulation as needed based on performance metrics. In connection with the separation of GE Aerospace and GE Vernova, outstanding awards held by participants under the 2007 and 2022 Long-Term Incentive Plans were equitably converted into shares of GE Aerospace or GE Vernova Inc. awards as required, to preserve the intrinsic value of the awards prior to the separation. Adjustments to the stock-based compensation awards resulted in incremental compensation expense of $39 million. WEIGHTED AVERAGE GRANT DATE FAIR VALUE202420232022Stock options$65.16 $36.10 $34.03 RSUs160.70 89.60 87.68 PSUs150.05 89.44 95.40 Key assumptions used in the Black-Scholes valuation for stock options include: risk free rates of 4.6%, 4.2%, and 1.6%, dividend yields of 0.7%, 0.4%, and 0.4%, expected volatility of 36%, 36%, and 37%, expected lives of 6.1 years, 6.8 years, and 6.8 years, and strike prices of $160.51, $88.15, and $92.33 for 2024, 2023 and 2022, respectively. STOCK-BASED COMPENSATION ACTIVITYStock optionsRSUsShares (in thousands)Weighted average exercise priceWeighted average contractual term (in years)Intrinsic value (in millions)Shares (in thousands)Weighted average grant date fair valueWeighted average contractual term (in years)Intrinsic value (in millions)Outstanding at January 1, 202422,573 $122.35 8,103 $76.52 Spin-off adjustment(a)1,941 N/A(2,224)N/AGranted995 160.51 1,503 160.70 Exercised(13,401)111.31 (3,452)67.89 Forfeited(125)98.68 (324)91.53 Expired(1,066)152.97 N/AN/AOutstanding at December 31, 202410,917 $91.78 3.6$819 3,607 $103.70 1.6$602 Exercisable at December 31, 20249,829 $85.52 3.0$799 N/AN/AN/AN/AExpected to vest887 $146.70 9.2$18 3,199 $100.77 1.5$534 (a) The spin-off adjustment represents the net of shares converted into new GE Aerospace awards and shares converted and transferred to GE Vernova Inc. as a result of the April 2, 2024 separation of GE Vernova. Total outstanding target PSUs at December 31, 2024 were 1,104 thousand shares with a weighted average fair value of $129.79. The intrinsic value and weighted average contractual term of target PSUs outstanding were $184 million and 2.1 years, respectively. 2024 FORM 10-K 67 2024 FORM 10-K 67 2024 FORM 10-K 67 202420232022Compensation expense (after-tax)(a)$286 $192 $143 Cash received from stock options exercised1,492 565 62 Intrinsic value of stock options exercised and RSU/PSU/Performance shares vested1,754 561 170 (a)Unrecognized compensation cost related to unvested equity awards as of December 31, 2024 was $365 million, which will be amortized over a weighted average period of 1.2 years. Income tax benefit recognized in earnings on stock-based compensation was $152 million, $29 million and $(3) million in 2024, 2023 and 2022, respectively. **Current (2026):** (a) The total reclassifications from AOCI included $1,590 million, including currency translation of $2,174 million and benefit plans of $(584) million, net of taxes, in 2024 related to the separation of GE Vernova. In 2023, reclassifications of $195 million, net of taxes, included currency translation of $2,234 million and benefit plans of $(2,030) million related to GE HealthCare. Preferred stock. In September 2023, we redeemed the remaining $5,795 million of outstanding GE preferred stock. Dividends on GE preferred stock totaled $237 million, including cash dividends of $236 million, for the year ended December 31, 2023. Common stock. GE Aerospace's authorized common consists of 1,650 million shares having a par value of $0.01 each, with 1,462 million shares issued. GE Aerospace common stock shares outstanding were 1,048,766,702 and 1,073,692,183 at December 31, 2025 and December 31, 2024, respectively. We repurchased 30.0, 32.0 and 11.0 million shares for a total of $7,412 million, $5,414 million and $1,135 million for the years ended December 31, 2025, 2024 and 2023, respectively. This included repurchases of 20.1 million shares for $5,181 million in 2025 and 12.5 million shares for $2,170 million in 2024 using accelerated stock repurchases, which were utilized as a mechanism to achieve planned repurchase volumes within a quarter during closed windows. The Company's share repurchase program does not obligate it to acquire any specific number of shares. Under this program, shares may be purchased in the open market, in privately negotiated transactions, under accelerated share repurchase programs or under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended. NOTE 17. SHARE-BASED COMPENSATION. We grant stock options, restricted stock units and performance share units to employees under the 2022 Long-Term Incentive Plan. Grants made under all plans must be approved by the Management Development and Compensation Committee of GE Aerospace's Board of Directors, which is composed entirely of independent directors. We record compensation expense for awards expected to vest over the vesting period. We estimate forfeitures based on experience and adjust expense to reflect actual forfeitures. When options are exercised, restricted stock units vest and performance share awards are earned, we issue shares from treasury stock. We grant stock options, restricted stock units and performance share units to employees under the 2022 Long-Term Incentive Plan. Grants made under all plans must be approved by the Management Development and Compensation Committee of GE Aerospace's Board of Directors, which is composed entirely of independent directors. We record compensation expense for awards expected to vest over the vesting period. We estimate forfeitures based on experience and adjust expense to reflect actual forfeitures. When options are exercised, restricted stock units vest and performance share awards are earned, we issue shares from treasury stock. Stock options provide employees the opportunity to purchase GE Aerospace shares in the future at the market price of our stock on the date the award is granted (the strike price). The options become exercisable over the vesting period, typically three years, and expire 10 years from the grant date if not exercised. Restricted stock units (RSUs) represent the right to receive, upon vesting and lapse of restrictions, one share of GE Aerospace common stock for each unit granted. Performance stock units (PSUs) represent the right to receive, upon vesting and achievement of applicable performance or market conditions, shares of GE Aerospace common stock. We value stock options using a Black-Scholes option pricing model, RSUs using market price on grant date, and PSUs and performance shares using market price on grant date and a Monte Carlo simulation as needed based on performance metrics. 64 2025 FORM 10-K 64 2025 FORM 10-K 64 2025 FORM 10-K WEIGHTED AVERAGE GRANT DATE FAIR VALUE202520242023Stock options$79.55 $65.16 $36.10 RSUs212.45 160.70 89.6 PSUs221.46 150.05 89.44 Key assumptions used in the Black-Scholes valuation for stock options include: risk free rates of 4.1%, 4.6%, and 4.2%, dividend yields of 0.7%, 0.7%, and 0.4%, expected volatility of 36%, 36%, and 36%, expected lives of 6.1 years, 6.1 years, and 6.8 years, and strike prices of $202.16, $160.51, and $88.15 for 2025, 2024 and 2023, respectively. STOCK-BASED COMPENSATION ACTIVITYStock optionsRSUsShares (in thousands)Weighted average exercise priceWeighted average contractual term (in years)Intrinsic value (in millions)Shares (in thousands)Weighted average grant date fair valueWeighted average contractual term (in years)Intrinsic value (in millions)Outstanding at January 1, 202510,917 $91.78 3,607 $103.70 Granted569 202.16 380 212.45 Exercised(4,102)104.40 (1,459)67.10 Forfeited(83)172.13 (137)135.42 Expired(37)122.58 N/AN/AOutstanding at December 31, 20257,264 $92.22 3.8$1,568 2,391 $141.49 1.2$736 Exercisable at December 31, 20255,829 $72.33 2.6$1,374 N/AN/AN/AN/AExpected to vest1,265 $172.50 8.6$171 2,194 $139.74 1.2$676 Total outstanding target PSUs at December 31, 2025 were 1,482 thousand shares with a weighted average fair value of $157.45. The intrinsic value and weighted average contractual term of target PSUs outstanding were $456 million and 1.1 years, respectively. 202520242023Compensation expense (after-tax)(a)$325 $286 $192 Cash received from stock options exercised428 1,492 565 Intrinsic value of stock options exercised and RSU/PSU/Performance shares vested853 1,754 561 (a)Unrecognized compensation cost related to unvested equity awards as of December 31, 2025 was $303 million, which will be amortized over a weighted average period of 1.7 years. Income tax benefit recognized in net income on stock-based compensation was $165 million, $152 million and $29 million in 2025, 2024 and 2023, respectively. --- ## Modified Risk: Total average equivalent shares **Key changes:** - Updated: "(a) Included in 2025 and 2023 is a dilutive adjustment for the change in income for forward purchase contracts that may be settled in stock." - Updated: "For the years ended December 31, 2024 and 2023, application of two-class method treatment had an insignificant effect." **Prior (2025):** Potentially dilutive securities(b) (a) For the year ended December 31, 2023, included $(58) million related to excise tax on preferred share redemptions. (b) Outstanding stock awards are not included in the computation of diluted earnings (loss) per share because their effect was antidilutive. Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and historically have been included in the calculation pursuant to the two-class method. For the year ended December 31, 2024, such participating securities had an insignificant effect. Effective the second quarter of 2024, the Company calculates earnings per share using the treasury stock method. For the years ended December 31, 2023 and 2022, application of two-class method treatment had an insignificant effect. **Current (2026):** (a) Included in 2025 and 2023 is a dilutive adjustment for the change in income for forward purchase contracts that may be settled in stock. (b) For the year ended December 31, 2023, included $(58) million related to excise tax on preferred share redemptions. (c) Outstanding stock awards are not included in the computation of diluted earnings (loss) per share because their effect was antidilutive. 2025 FORM 10-K 65 2025 FORM 10-K 65 2025 FORM 10-K 65 Our unvested restricted stock unit awards that contain non-forfeitable rights to dividends or dividend equivalents are considered participating securities and historically have been included in the calculation pursuant to the two-class method. For the year ended December 31, 2025, such participating securities had an insignificant effect. Effective the second quarter of 2024, the Company calculates earnings per share using the treasury stock method. For the years ended December 31, 2024 and 2023, application of two-class method treatment had an insignificant effect. --- ## Modified Risk: NOTE 8. CONTRACT AND OTHER DEFERRED ASSETS, CONTRACT LIABILITIES AND DEFERRED INCOME & PROGRESS COLLECTIONS **Key changes:** - Updated: "Contract assets (liabilities) and other deferred assets (income), on a net basis, increased the net liability position by $414 million for the year ended December 31, 2025, primarily due to an increase in long-term service agreement liabilities of $1,022 million, partially offset by increases in long-term service agreement assets of $418 million and equipment and other service agreements of $111 million." - Updated: "The most significant program relates to DPT contracts for the Boeing 777X aircraft, which will be amortized once entered into service." **Prior (2025):** Contract assets (liabilities) and other deferred assets (income), on a net basis, increased the net liability position by $915 million for the year ended December 31, 2024, primarily due to an increase in long-term service agreements liabilities of $1,092 million, partially offset by an increase in equipment and other service agreements of $111 million. In aggregate, the net liability for long-term service agreements increased primarily due to billings of $8,594 million and net unfavorable changes in estimated profitability of $56 million, primarily in Commercial Engines & Services, partially offset by revenue recognized of $7,668 million. Revenue recognized for contracts included in a liability position at the beginning of the year were $6,336 million and $5,717 million for the years ended December 31, 2024 and 2023, respectively. CONTRACT ASSETS, LIABILITIES AND OTHER DEFERRED ASSETS AND INCOMEDecember 31, 2024December 31, 2023Long-term service agreements$2,374 $2,377 Equipment and other service agreements609 498 Current contract assets$2,982 $2,875 Nonrecurring engineering costs(a)$2,438 $2,444 Customer advances and other(b)2,393 2,342 Contract and other deferred assets4,831 4,785 Total contract and other deferred assets$7,814 $7,660 Long-term service agreement liabilities$8,994 $7,902 Current deferred income359 420 Contract liabilities and current deferred income$9,353 $8,322 Non-current deferred income1,013 975 Total contract liabilities and deferred income$10,366 $9,297 Contract assets (liabilities) and other deferred assets (income)$(2,552)$(1,637) Long-term service agreements Current contract assets Nonrecurring engineering costs(a) Customer advances and other(b) Long-term service agreement liabilities (a) Includes contract fulfillment costs for engineering and development incurred prior to production for equipment production contracts, primarily within our DPT segment, which are amortized ratably over each unit produced. We assess the recoverability of these costs and if we determine the costs are no longer probable of recovery, the asset is impaired. (b) Includes amounts due from customers within our CES segment for the sales of engines, spare parts and services, which we collect through fixed or usage-based billings from the sale of spare parts and servicing of equipment under long-term service agreements. Progress collections increased $519 million in the year ended December 31, 2024 primarily due to collections received in excess of settlements at CES. 54 2024 FORM 10-K 54 2024 FORM 10-K 54 2024 FORM 10-K NOTE 9. ALL OTHER ASSETS. All other current assets and All other assets primarily include equity method investments, Insurance cash and cash equivalents, receivables and other investments in our run-off insurance operations, pension surplus and prepaid taxes and other deferred charges. All other non-current assets increased $2,215 million in the year ended December 31, 2024, primarily due to an increase in equity method and other investments of $1,122 million, an increase in indemnity assets of $421 million, primarily related to GE Vernova, an increase in prepaid taxes and deferred charges of $214 million, an increase in Insurance receivables of $196 million, an increase in pension surplus of $157 million and an increase in Insurance cash and cash equivalents of $151 million. Insurance cash and cash equivalents was $934 million and $784 million at December 31, 2024 and December 31, 2023, respectively. All other current assets and All other assets primarily include equity method investments, Insurance cash and cash equivalents, receivables and other investments in our run-off insurance operations, pension surplus and prepaid taxes and other deferred charges. All other non-current assets increased $2,215 million in the year ended December 31, 2024, primarily due to an increase in equity method and other investments of $1,122 million, an increase in indemnity assets of $421 million, primarily related to GE Vernova, an increase in prepaid taxes and deferred charges of $214 million, an increase in Insurance receivables of $196 million, an increase in pension surplus of $157 million and an increase in Insurance cash and cash equivalents of $151 million. Insurance cash and cash equivalents was $934 million and $784 million at December 31, 2024 and December 31, 2023, respectively. **Current (2026):** Contract assets (liabilities) and other deferred assets (income), on a net basis, increased the net liability position by $414 million for the year ended December 31, 2025, primarily due to an increase in long-term service agreement liabilities of $1,022 million, partially offset by increases in long-term service agreement assets of $418 million and equipment and other service agreements of $111 million. In aggregate, the net liability for long-term service agreements increased primarily due to billings of $9,890 million and net unfavorable changes in estimated profitability of $213 million, including an estimated impact from tariffs and quarterly updates to contract margins, primarily in Commercial Engines & Services, partially offset by revenue recognized of $9,513 million. Revenue recognized for contracts included in a liability position at the beginning of the year were $7,778 million and $6,336 million for the years ended December 31, 2025 and 2024, respectively. CONTRACT ASSETS, LIABILITIES AND OTHER DEFERRED ASSETS AND INCOMEDecember 31, 2025December 31, 2024Long-term service agreements$2,792 $2,374 Equipment and other service agreements719 609 Current contract assets$3,511 $2,982 Nonrecurring engineering costs(a)$2,423 $2,438 Customer advances and other(b)2,497 2,393 Contract and other deferred assets4,920 4,831 Total contract and other deferred assets$8,431 $7,814 Long-term service agreement liabilities$10,016 $8,994 Current deferred income317 359 Contract liabilities and current deferred income$10,333 $9,353 Non-current deferred income1,065 1,013 Total contract liabilities and deferred income$11,398 $10,366 Contract assets (liabilities) and other deferred assets (income)$(2,966)$(2,552) Long-term service agreements Current contract assets Nonrecurring engineering costs(a) Customer advances and other(b) Long-term service agreement liabilities (a) Includes contract fulfillment costs for engineering and development incurred prior to production for equipment production contracts, primarily within our Defense & Propulsion Technologies (DPT) segment, which are amortized ratably over each unit produced. We assess the recoverability of these costs and if we determine the costs are no longer probable of recovery, the asset is impaired. The most significant program relates to DPT contracts for the Boeing 777X aircraft, which will be amortized once entered into service. (b) Includes amounts due from customers within our Commercial Engines & Services segment for the sales of engines, spare parts and services, which we collect through fixed or usage-based billings from the sale of spare parts and servicing of equipment under long-term service agreements. Progress collections increased $966 million in the year ended December 31, 2025, primarily due to collections received in excess of liquidations at Defense & Propulsion Technologies and Commercial Engines & Services. NOTE 9. ALL OTHER ASSETS. All other current assets and All other assets primarily include equity method investments, Insurance cash and cash equivalents, receivables and other investments in our run-off insurance operations, pension surplus, prepaid taxes and other deferred charges and indemnity assets. All other non-current assets increased $1,367 million in the year ended December 31, 2025, due to an increase in equity method and other investments of $695 million, an increase in Insurance cash and cash equivalents of $330 million and an increase in Insurance receivables of $152 million. Insurance cash and cash equivalents were $1,264 million and $934 million at December 31, 2025 and December 31, 2024, respectively. All other current assets and All other assets primarily include equity method investments, Insurance cash and cash equivalents, receivables and other investments in our run-off insurance operations, pension surplus, prepaid taxes and other deferred charges and indemnity assets. All other non-current assets increased $1,367 million in the year ended December 31, 2025, due to an increase in equity method and other investments of $695 million, an increase in Insurance cash and cash equivalents of $330 million and an increase in Insurance receivables of $152 million. Insurance cash and cash equivalents were $1,264 million and $934 million at December 31, 2025 and December 31, 2024, respectively. 2025 FORM 10-K 51 2025 FORM 10-K 51 2025 FORM 10-K 51 --- ## Modified Risk: Total equity balance at December 31 **Key changes:** - Updated: "(a) Included a decrease of $5,795 million, substantially all in Other capital related to our redemption of GE preferred stock in the year ended December 31, 2023." - Updated: "Included an $11,375 million decrease in Retained earnings reflecting a distribution of all the shares of GE Vernova on April 2, 2024." - Updated: "2025 FORM 10-K 39 2025 FORM 10-K 39 2025 FORM 10-K 39" **Prior (2025):** (a) Included decreases of $5,795 million and $144 million, substantially all in Other capital related to our redemption of GE preferred stock in the years ended December 31, 2023 and 2022, respectively. (b) Included a $5,300 million decrease in Retained earnings reflecting a pro-rata distribution of approximately 80.1% of the shares of GE HealthCare on January 3, 2023. Included a $11,375 million decrease in Retained earnings reflecting a distribution of all the shares of GE Vernova on April 2, 2024. (c) Included a reclassification of $1,007 million of noncontrolling interests attributable to GE Vernova to Retained earnings as a result of the separation on April 2, 2024. 2024 FORM 10-K 41 2024 FORM 10-K 41 2024 FORM 10-K 41 **Current (2026):** (a) Included a decrease of $5,795 million, substantially all in Other capital related to our redemption of GE preferred stock in the year ended December 31, 2023. (b) Included a $5,300 million decrease in Retained earnings reflecting a pro-rata distribution of approximately 80.1% of the shares of GE HealthCare on January 3, 2023. Included an $11,375 million decrease in Retained earnings reflecting a distribution of all the shares of GE Vernova on April 2, 2024. (c) Included a reclassification of $1,007 million of noncontrolling interests attributable to GE Vernova to Retained earnings as a result of the separation on April 2, 2024. 2025 FORM 10-K 39 2025 FORM 10-K 39 2025 FORM 10-K 39 --- ## Modified Risk: NOTE 13. POSTRETIREMENT BENEFIT PLANS **Key changes:** - Updated: "54 2025 FORM 10-K 54 2025 FORM 10-K 54 2025 FORM 10-K DESCRIPTION OF OUR PLANSPlan CategoryParticipantsFundingCommentsPrincipal Pension PlansGE Aerospace Pension PlanCovers U.S." - Updated: "Benefits for employees who became executives before 2011 were frozen effective January 1, 2021, and thereafter these employees accrue the installment benefit.Other Pension Plans(a)6 U.S." - Updated: "GE Aerospace participants: ~40,000 retirees and dependents and ~10,000 active employeesWe fund retiree benefit plans on a pay-as-you-go basis and the retiree benefit insurance trust at our discretion.Participants share in the cost of the healthcare benefits." - Updated: "No contributions were required or made for the GE Aerospace Pension Plan during 2025 and based on our current assumptions, we do not anticipate having to make additional required contributions in the near future." - Updated: "In 2026, we expect to make payments of approximately $220 million for our GE Aerospace Supplementary Pension Plan benefits and remaining principal pension plans administrative costs." **Prior (2025):** PENSION BENEFITS AND RETIREE HEALTH AND LIFE BENEFITS. We sponsor a number of pension and retiree health and life insurance benefit plans that we present in three categories, principal pension plans, other pension plans and principal retiree benefit plans. Smaller pension plans with pension assets or obligations that have not reached $50 million and other retiree benefit plans are not presented. Effective January 1, 2023, certain postretirement benefit plans and liabilities were legally split or allocated between GE HealthCare, GE Vernova and GE Aerospace. In connection with the separations, net liabilities associated with GE's postretirement benefit plans, including a portion of the principal pension plans, other pension plans and the principal retiree benefit plans, were transferred to GE HealthCare and GE Vernova and are now reported in discontinued operations. See Note 2 for more information regarding the separations. The amounts that remain with GE Aerospace following the separations are shown as continuing operations in the aggregate rather than for each remaining split plan. Assumptions used in calculations, estimates of future benefit payments and funding, and other forward looking statements are for continuing operations unless otherwise noted. 2024 FORM 10-K 57 2024 FORM 10-K 57 2024 FORM 10-K 57 DESCRIPTION OF OUR PLANSPlan CategoryParticipantsFundingCommentsPrincipal Pension PlansGE Aerospace Pension PlanCovers U.S. GE Aerospace participants: ~79,000 retirees and beneficiaries, ~34,000 vested former employees and ~9,000 active employeesOur funding policy is to contribute amounts sufficient to meet minimum funding requirements under employee benefit and tax laws. We may decide to contribute additional amounts beyond this level.Closed to new participants since 2012. Benefits for employees with salaried benefits were frozen effective January 1, 2021, and thereafter these employees receive increased company contributions in the company sponsored defined contribution plan in lieu of participation in a defined benefit plan (announced October 2019). GE Aerospace Supplementary Pension PlanProvides supplementary benefits to higher-level, longer-service U.S. employeesUnfunded. We pay benefits on a pay-as-you-go basis from company cash.The annuity benefit has been closed to new participants since 2011 and has been replaced by an installment benefit (which was closed to new executives after 2020). Benefits for employees who became executives before 2011 were frozen effective January 1, 2021, and thereafter these employees accrue the installment benefit.Other Pension Plans(a)9 U.S. and non-U.S. pension plans with pension assets or obligations that have reached $50 millionCovers ~10,500 retirees and beneficiaries, ~10,300 vested former employees and ~600 active employeesOur funding policy is to contribute amounts sufficient to meet minimum funding requirements under employee benefit and tax laws in each country. We may decide to contribute additional amounts beyond this level. We pay benefits for some plans from company cash. In certain countries, benefit accruals have ceased and/or have been closed to new hires as of various dates.Principal Retiree Benefit PlansProvides health and life insurance benefits to certain eligible participantsCovers U.S. GE Aerospace participants: ~45,800 retirees and dependents and ~10,000 active employeesWe fund retiree benefit plans on a pay-as-you-go basis and the retiree benefit insurance trust at our discretion.Participants share in the cost of the healthcare benefits. Covers U.S. GE Aerospace participants: ~79,000 retirees and beneficiaries, ~34,000 vested former employees and ~9,000 active employees Other Pension Plans(a) 9 U.S. and non-U.S. pension plans with pension assets or obligations that have reached $50 million Covers ~10,500 retirees and beneficiaries, ~10,300 vested former employees and ~600 active employees Covers U.S. GE Aerospace participants: ~45,800 retirees and dependents and ~10,000 active employees (a) Plans for GE Aerospace that reach $50 million are not removed from the presentation unless part of a disposition or plan termination. FUNDING STATUS BY PLAN TYPEBenefit ObligationFair Value of AssetsDeficit/(Surplus)202420232024202320242023Principal Pension Plans:GE Aerospace Pension Plan (subject to regulatory funding)$21,010 $22,437 $19,020 $20,253 $1,990 $2,184 GE Aerospace Supplementary Pension Plan2,814 3,000 - - 2,814 3,000 23,824 25,437 19,020 20,253 4,804 5,184 Other Pension Plans:Subject to regulatory funding2,736 3,225 3,592 3,913 (856)(688)Not subject to regulatory funding404 440 - - 404 440 Principal retiree benefit plans for GE Aerospace1,202 1,289 6 8 1,196 1,281 Total plans subject to regulatory funding23,746 25,662 22,612 24,166 1,134 1,496 Total plans not subject to regulatory funding4,420 4,729 6 8 4,414 4,721 Total plans 28,166 30,391 22,618 24,174 5,548 6,217 Due to the spin-off of Vernova on April 2, 2024, as discussed in Note 1, we have excluded 2023 GE Vernova benefit obligations of $18,258, assets of $16,342, and a deficit of $1,916 from the above funding status by plan type chart. FUNDING. The Employee Retirement Income Security Act (ERISA) determines minimum funding requirements in the U.S. No contributions were required or made for the GE Aerospace Pension Plan during 2024 and based on our current assumptions, we do not anticipate having to make additional required contributions in the near future. On an ERISA basis, our estimate for 2024 is that the GE Aerospace Pension Plan was 85% funded and the U.S. GAAP funded status is 91%. 58 2024 FORM 10-K 58 2024 FORM 10-K 58 2024 FORM 10-K In 2025, we expect to make payments of approximately $210 million for our GE Aerospace Supplementary Pension Plan benefits and remaining principal pension plans administrative costs. We also expect to contribute approximately $40 million to other pension plans in 2025. We fund retiree benefit plans on a pay-as-you-go basis and the retiree benefit insurance trust at our discretion. We expect to contribute approximately $120 million to fund such benefits in 2025. COST OF OUR BENEFITS PLANS AND ASSUMPTIONS202420232022Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Components of expense (income)Service cost - operating$71 $22 $13 $94 $37 $17 $221 $86 $39 Interest cost1,401 227 71 1,892 422 111 2,069 398 108 Expected return on plan assets(1,751)(310) - (2,376)(587) - (3,142)(967) - Amortization of net loss (gain)(468)41 (82)(723)20 (124)1,422 101 (115)Amortization of prior service cost (credit)6 (1)(103)5 (4)(148)5 (8)(235)Curtailment / settlement loss (gain) - - - (6) - - (6) - Non-operating$(812)$(43)$(114)$(1,202)$(155)$(161)$354 $(482)$(242)Net periodic expense (income)$(741)$(21)$(101)$(1,108)$(118)$(144)$575 $(396)$(203)Less: discontinued operations(88)(12)(15)(377)(78)(57)270 (320)(134)Continuing operations - net periodic expense (income)$(653)$(9)$(86)$(731)$(40)$(87)$305 $(76)$(69)Weighted-average benefit obligations assumptionsDiscount rate5.67 %5.48 %5.51 %5.18 %3.93 %5.09 %5.53 %4.59 %5.43 %Compensation increases6.00 3.10 6.00 3.86 2.24 3.25 3.07 2.44 3.12 Initial healthcare trend rate(a)N/AN/A7.00 N/AN/A6.50 N/AN/A6.40 Weighted-average benefit cost assumptionsDiscount rate5.18 3.93 5.09 5.53 4.59 5.43 2.94 1.93 2.64 Expected rate of return on plan assets7.00 5.34 - 7.00 5.66 - 6.00 4.80 - (a) Current forecast is 7%, but is estimated to decline to 5% for 2034 and thereafter. Net periodic benefit income from continuing operations in 2025 is estimated to be approximately $725 million, which is a decrease of approximately $25 million as compared to 2024. The decrease is primarily due to investment performance offset by the impact of discount rates. The components of net periodic benefit costs, other than the service cost component, are included in Non-operating benefit cost (income) in our Statement of Earnings (Loss). 2024 FORM 10-K 59 2024 FORM 10-K 59 2024 FORM 10-K 59 PLAN FUNDED STATUS AND AMOUNTS RECORDED IN ACCUMULATED OTHER COMPREHENSIVE LOSS (INCOME)20242023Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Change in benefit obligationsBalance at January 1$36,217 $10,377 $2,055 $53,591 $13,916 $3,304 Service cost71 22 13 94 37 17 Interest cost1,401 227 71 1,892 422 111 Participant contributions8 4 21 10 19 31 Plan amendments - - - 49 - - Actuarial loss (gain) - net(1,049)(a)(435)(a)(15)(a)1,081 (a)526 (a)(5)Benefits paid(1,957)(305)(192)(2,503)(618)(254)Dispositions/acquisitions/other - net(10,867)(6,548)(751)(17,997)(4,387)(1,149)Exchange rate adjustments - (202) - - 462 - Balance at December 31$23,824 (b)$3,140 $1,202 (c)$36,217 $10,377 $2,055 Change in plan assetsBalance at January 1$29,744 $10,764 $8 $44,993 $14,663 $10 Actual return on plan assets440 (109) - 1,869 442 - Employer contributions216 60 169 212 161 221 Participant contributions8 4 21 10 19 31 Benefits paid(1,957)(305)(192)(2,503)(618)(254)Dispositions/acquisitions/other - net(9,431)(6,611) - (14,837)(4,439) - Exchange rate adjustments - (211) - - 536 - Balance at December 31$19,020 $3,592 $6 $29,744 $10,764 $8 Funded status - surplus (deficit)$(4,804)$452 $(1,196)$(6,473)$387 $(2,047)Amounts recorded inStatement of Financial PositionContinuing operations:Non-current assets - other$ - $876 $ - $ - $714 $ - Current liabilities - other(199)(34)(118)(194)(35)(128)Non-current liabilities - compensation and benefits (4,605)(390)(1,078)(4,990)(431)(1,153)Discontinued operations:Non-current assets - - - - 775 - Current and non-current liabilities - - - (1,289)(636)(766)Net amount recorded$(4,804)$452 $(1,196)$(6,473)$387 $(2,047)Amounts recorded in Accumulated other comprehensive loss (income)Prior service cost (credit)$(40)$9 $(455)$(25)$(16)$(909)Net loss (gain)(530)803(559)(1,454)1,680 (990)Total recorded in Accumulated other comprehensive loss (income)$(570)$812 $(1,014)$(1,479)$1,664 $(1,899) (a)Principally due to impact of discount rates. (b)The benefit obligation for the GE Aerospace Supplementary Pension Plan, which is unfunded, was $2,814 million at December 31, 2024. (c)The benefit obligation for retiree health plans for GE Aerospace was $716 million at December 31, 2024. ASSUMPTIONS USED IN CALCULATIONS. Our defined benefit pension plans are accounted for on an actuarial basis, which requires the selection of various assumptions, including a discount rate, a compensation assumption, an expected return on assets, mortality rates of participants and expectation of mortality improvement. Projected benefit obligations are measured as the present value of expected benefit payments. We discount those cash payments using a discount rate. We determine the discount rate using the weighted-average yields on high-quality fixed-income securities with maturities that correspond to the payment of benefits. Lower discount rates increase present values and generally increase subsequent-year pension expense; higher discount rates decrease present values and generally reduce subsequent-year pension expense. The compensation assumption is used to estimate the annual rate at which pay of plan participants will grow. If the rate of growth assumed increases, the size of the pension obligations will increase, as will the amount recorded in AOCI in our Statement of Financial Position and amortized into earnings in subsequent periods. 60 2024 FORM 10-K 60 2024 FORM 10-K 60 2024 FORM 10-K The expected return on plan assets is the estimated long-term rate of return that will be earned on the investments used to fund the benefit obligations. To determine the expected long-term rate of return on pension plan assets, we consider our asset allocation as well as historical and expected returns on various categories of plan assets. In developing future long-term return expectations for our principal benefit plans' assets, we formulate views on the future economic environment, both in the U.S. and abroad. We evaluate general market trends and historical relationships among a number of key variables that impact asset class returns such as expected earnings growth, inflation, valuations, yields and spreads, using both internal and external sources. We also take into account expected volatility by asset class and diversification across classes to determine expected overall portfolio results given our asset allocation. Based on our analysis, we have assumed a 7.00% long-term expected return on the GE Aerospace Pension Plan assets for cost recognition in 2024 and 2023. For 2025 cost recognition, based on GE Aerospace Pension Plan assets at December 31, 2024, we have assumed a 7.00% long-term expected return. The healthcare trend assumptions primarily apply to our pre-65 retiree medical plans. Most participants in our post-65 retiree plan have a fixed subsidy and therefore are not subject to healthcare inflation. We evaluate these critical assumptions at least annually on a plan and country-specific basis. We periodically evaluate other assumptions involving demographics factors such as retirement age and turnover, and update them to reflect our actual experience and expectations for the future. Actual results in any given year will often differ from actuarial assumptions because of economic and other factors. Differences between our actual results and what we assumed are recorded in AOCI each period. These differences are amortized into earnings over the remaining average future service of active participating employees or the expected life of inactive participants, as applicable. For the principal pension plans, gains and losses are amortized using a straight-line method with a separate layer for each year's gains and losses. For most other pension plans and principal retiree benefit plans, gains and losses are amortized using a straight-line or a corridor amortization method. SENSITIVITIES TO KEY ASSUMPTIONS. Fluctuations in discount rates can significantly impact pension cost and obligations. We would expect that a 25 basis point decrease in discount rate would increase our GE Aerospace principal pension plan cost in the following year by approximately $50 million and would also expect an increase in the GE Aerospace principal pension plan projected benefit obligation at year-end by approximately $550 million. The deficit sensitivity to the discount rate would be lower than the projected benefit obligation sensitivity as a result of the liability hedging program incorporated in the asset allocation. A 25 basis point decrease in the expected return on assets would increase GE Aerospace principal pension plan cost in the following year by approximately $50 million. THE COMPOSITION OF OUR PLAN ASSETS. The fair value of our pension plans' investments is presented below. The inputs and valuation techniques used to measure the fair value of these assets are described in Note 1 and have been applied consistently. The fair value of our pension plans' investments is presented below. The inputs and valuation techniques used to measure the fair value of these assets are described in Note 1 and have been applied consistently. 20242023Principal pension Other pension Principal pension Other pension Global equities$1,142 $217 $1,985 $1,152 Debt securitiesFixed income and cash investment funds1,412 1,463 1,764 4,188 U.S. corporate(a)3,091 34 6,599 145 Other debt securities(b)3,106 46 6,064 218 Real estate535 6 775 18 Private equities and other investments299 118 600 259 Total9,585 1,884 17,787 5,980 Plan assets measured at net asset valueGlobal equities$1,695 $217 $3,169 $612 Debt securities1,158 693 1,907 2,224 Real estate715 280 1,067 1,074 Private equities and other investments5,867 518 5,814 874 Total plan assets at fair value19,020 3,592 29,744 10,764 Less: discontinued operations - - 9,491 6,851 Total plan assets - continuing operations$19,020 $3,592 $20,253 $3,913 (a)Primarily represented investment-grade bonds of U.S. issuers from diverse industries. (b)Primarily represented investments in residential and commercial mortgage-backed securities, non-U.S. corporate and government bonds and U.S. government, federal agency, state and municipal debt. 2024 FORM 10-K 61 2024 FORM 10-K 61 2024 FORM 10-K 61 Plan assets that were measured at fair value using NAV as a practical expedient were excluded from the fair value hierarchy. Principal Pension Plans' investments with a fair value of $844 million and $1,203 million at December 31, 2024 and 2023, respectively, were classified within Level 3 and primarily relate to private equities and real estate. The remaining investments were substantially all considered Level 1 and 2. Investments with a fair value of $2,288 million and $4,034 million at December 31, 2024 and 2023, respectively, were classified within Level 1 and primarily relate to global equities and cash. Investments with a fair value of $6,235 million and $12,703 million at December 31, 2024 and 2023, respectively, were classified within Level 2 and primarily relate to debt securities. Other pension plans investments with a fair value of $9 million and $26 million at December 31, 2024 and 2023, respectively, were classified within Level 3 and primarily relate to private equities and real estate. The remaining investments were substantially all considered Level 1 and 2. Investments with a fair value of $28 million and $786 million at December 31, 2024 and 2023, respectively, were classified within Level 1 and primarily relate to global equities and cash. Investments with a fair value of $1,713 million and $4,913 million at December 31, 2024 and 2023, respectively, were classified within Level 2 and primarily relate to debt securities. Principal retiree benefit plan investments have a fair value of $6 million and $8 million at December 31, 2024 and 2023, respectively. There were no Level 3 principal retiree benefit plan investments held in 2024 and 2023. ASSET ALLOCATION OF PENSION PLANS2024 Target allocation2024 Actual allocationPrincipal PensionOther Pension (weighted average)Principal PensionOther Pension (weighted average)Global equities10.0 - 30.0%10 %15 %12 %Debt securities (including cash equivalents)19.0 - 87.569 46 62 Real estate1.0 - 10.07 7 8 Private equities & other investments12.0 - 40.014 32 18 10.0 - 30.0 19.0 - 87.5 1.0 - 10.0 12.0 - 40.0 Plan fiduciaries set investment policies and strategies for the principal pension plans and oversee their investment allocation, which includes selecting investment managers and setting long-term strategic targets. The plan fiduciaries' primary strategic investment objectives are balancing investment risk and return and monitoring the plan's liquidity position in order to meet near-term benefit payment and other cash needs. The plan has incorporated de-risking objectives and liability hedging programs as part of its long-term investment strategy and utilizes a combination of long-dated corporate bonds, treasuries, strips and derivatives to implement its investment strategies as well as for hedging asset and liability risks. Target allocation percentages are established at an asset class level by plan fiduciaries. Target allocation ranges are guidelines, not limitations, and occasionally plan fiduciaries will approve allocations above or below a target range. GE Aerospace and GE securities represented 0.8% and 0.5% of the Principal Pension Plans' assets at December 31, 2024 and 2023, respectively. ANNUALIZED RETURNS(a)1 year5 years10 years25 yearsGE Aerospace Pension Plan2.3 %2.2 %4.3 %4.7 % (a) Prior to 2023, the annualized returns represent the GE Pension Plan's returns. EXPECTED FUTURE BENEFIT PAYMENTS OF OUR BENEFIT PLANS(a)Principal pensionOther pensionPrincipal retiree benefit2025$1,800 $175 $130 20261,815 175 125 20271,825 180 120 20281,830 190 120 20291,830 195 120 2030-20348,960 1,045 510 (a) As of the measurement date of December 31, 2024. DEFINED CONTRIBUTION PLAN. We have a defined contribution plan for eligible U.S. employees that provides employer contributions which were $265 million, $342 million and $444 million for the years ended December 31, 2024, 2023 and 2022, respectively. Employer contributions for continuing operations were $230 million, $213 million and $207 million for the years ended December 31, 2024, 2023 and 2022, respectively. 62 2024 FORM 10-K 62 2024 FORM 10-K 62 2024 FORM 10-K COST OF POSTRETIREMENT BENEFIT PLANS AND CHANGES IN OTHER COMPREHENSIVE INCOMEFor the years ended December 31202420232022(Pre-tax)Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Cost (income) of postretirement benefit plans$(741)$(21)$(101)$(1,108)$(118)$(144)$575 $(396)$(203)Changes in other comprehensive loss (income)Prior service cost (credit) - current year - - - 49 - - - - - Net loss (gain) - current year (a)262 (52)(15)1,588 721 (5)(1,533)(128)(778)Reclassifications out of AOCICurtailment/settlement gain (loss) - - - - 6 - - 6 - Dispositions185 (761)715 1,989 (792)1,216 - - - Amortization of net gain (loss)468 (41)82 723 (20)124 (1,422)(101)115 Amortization of prior service credit (cost)(6)1 103 (5)4 148 (5)8 235 Total changes in other comprehensive loss (income)909 (853)885 4,344 (81)1,483 (2,960)(215)(428)Cost (income) of postretirement benefit plans and changes in other comprehensive loss (income)$168 $(874)$784 $3,236 $(199)$1,339 $(2,385)$(611)$(631) (a) Primarily due to impact of discount rates and investment performance. **Current (2026):** PENSION BENEFITS AND RETIREE HEALTH AND LIFE BENEFITS. We sponsor a number of pension and retiree health and life insurance benefit plans that we present in three categories, principal pension plans, other pension plans and principal retiree benefit plans. Smaller pension plans with pension assets or obligations that have not reached $50 million and other retiree benefit plans are not presented. Effective January 1, 2023, certain postretirement benefit plans and liabilities were legally split or allocated between GE HealthCare, GE Vernova and GE Aerospace. In connection with the separations, net liabilities associated with GE's postretirement benefit plans, including a portion of the principal pension plans, other pension plans and the principal retiree benefit plans, were transferred to GE HealthCare and GE Vernova and are now reported in discontinued operations. See Note 2 for more information regarding the separations. The amounts that remain with GE Aerospace following the separations are shown as continuing operations in the aggregate rather than for each remaining split plan. Assumptions used in calculations, estimates of future benefit payments and funding, and other forward looking statements are for continuing operations unless otherwise noted. 54 2025 FORM 10-K 54 2025 FORM 10-K 54 2025 FORM 10-K DESCRIPTION OF OUR PLANSPlan CategoryParticipantsFundingCommentsPrincipal Pension PlansGE Aerospace Pension PlanCovers U.S. GE Aerospace participants: ~79,000 retirees and beneficiaries, ~33,000 vested former employees and ~9,000 active employeesOur funding policy is to contribute amounts sufficient to meet minimum funding requirements under employee benefit and tax laws. We may decide to contribute additional amounts beyond this level.Closed to new participants since 2012. Benefits for employees with salaried benefits were frozen effective January 1, 2021, and thereafter these employees receive increased company contributions in the company sponsored defined contribution plan in lieu of participation in a defined benefit plan (announced October 2019). GE Aerospace Supplementary Pension PlanProvides supplementary benefits to higher-level, longer-service U.S. employeesUnfunded. We pay benefits on a pay-as-you-go basis from company cash.The annuity benefit has been closed to new participants since 2011 and has been replaced by an installment benefit (which was closed to new executives after 2020). Benefits for employees who became executives before 2011 were frozen effective January 1, 2021, and thereafter these employees accrue the installment benefit.Other Pension Plans(a)6 U.S. and non-U.S. pension plans with pension assets or obligations that have reached $50 millionCovers ~11,100 retirees and beneficiaries, ~10,300 vested former employees and ~800 active employeesOur funding policy is to contribute amounts sufficient to meet minimum funding requirements under employee benefit and tax laws in each country. We may decide to contribute additional amounts beyond this level. We pay benefits for some plans from company cash. In certain countries, benefit accruals have ceased and/or have been closed to new hires as of various dates.Principal Retiree Benefit PlansProvides health and life insurance benefits to certain eligible participantsCovers U.S. GE Aerospace participants: ~40,000 retirees and dependents and ~10,000 active employeesWe fund retiree benefit plans on a pay-as-you-go basis and the retiree benefit insurance trust at our discretion.Participants share in the cost of the healthcare benefits. Covers U.S. GE Aerospace participants: ~79,000 retirees and beneficiaries, ~33,000 vested former employees and ~9,000 active employees Other Pension Plans(a) 6 U.S. and non-U.S. pension plans with pension assets or obligations that have reached $50 million Covers ~11,100 retirees and beneficiaries, ~10,300 vested former employees and ~800 active employees Covers U.S. GE Aerospace participants: ~40,000 retirees and dependents and ~10,000 active employees (a) Plans for GE Aerospace that reach $50 million are not removed from the presentation unless part of a disposition or plan termination. FUNDING STATUS BY PLAN TYPEBenefit ObligationFair Value of AssetsDeficit/(Surplus)202520242025202420252024Principal Pension Plans:GE Aerospace Pension Plan (subject to regulatory funding)$21,053 $21,010 $19,216 $19,020 $1,837 $1,990 GE Aerospace Supplementary Pension Plan2,872 2,814 - - 2,872 2,814 23,925 23,824 19,216 19,020 4,709 4,804 Other Pension Plans:Subject to regulatory funding3,027 2,736 3,831 3,592 (804)(856)Not subject to regulatory funding397 404 - - 397 404 Principal retiree benefit plans for GE Aerospace (not subject to regulatory funding)1,135 1,202 5 6 1,130 1,196 Total plans subject to regulatory funding24,080 23,746 23,047 22,612 1,033 1,134 Total plans not subject to regulatory funding4,404 4,420 5 6 4,399 4,414 Total plans 28,484 28,166 23,052 22,618 5,432 5,548 FUNDING. The Employee Retirement Income Security Act (ERISA) determines minimum funding requirements in the U.S. No contributions were required or made for the GE Aerospace Pension Plan during 2025 and based on our current assumptions, we do not anticipate having to make additional required contributions in the near future. For 2025, the GE Aerospace Pension Plan U.S. GAAP funded status is 91%. In 2026, we expect to make payments of approximately $220 million for our GE Aerospace Supplementary Pension Plan benefits and remaining principal pension plans administrative costs. We also expect to contribute approximately $40 million to other pension plans in 2026. We fund retiree benefit plans on a pay-as-you-go basis and the retiree benefit insurance trust at our discretion. We expect to contribute approximately $115 million to fund such benefits in 2026. 2025 FORM 10-K 55 2025 FORM 10-K 55 2025 FORM 10-K 55 COST OF OUR BENEFITS PLANS AND ASSUMPTIONS202520242023Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Components of expense (income)Service cost - operating$59 $2 $13 $71 $22 $13 $94 $37 $17 Interest cost1,301 173 62 1,401 227 71 1,892 422 111 Expected return on plan assets(1,500)(207) - (1,751)(310) - (2,376)(587) - Amortization of net loss (gain)(506)30 (60)(468)41 (82)(723)20 (124)Amortization of prior service cost (credit)(9) - (81)6 (1)(103)5 (4)(148)Curtailment / settlement loss (gain) - - - - - (6) - Non-operating$(714)$(4)$(79)$(812)$(43)$(114)$(1,202)$(155)$(161)Net periodic expense (income)$(655)$(2)$(66)$(741)$(21)$(101)$(1,108)$(118)$(144)Less: discontinued operations - - - (88)(12)(15)(377)(78)(57)Continuing operations - net periodic expense (income)$(655)$(2)$(66)$(653)$(9)$(86)$(731)$(40)$(87)Weighted-average benefit obligations assumptionsDiscount rate5.38 %5.44 %5.10 %5.67 %5.48 %5.51 %5.18 %3.93 %5.09 %Compensation increases4.50 2.96 4.03 6.00 3.10 6.00 3.86 2.24 3.25 Initial healthcare trend rate(a)N/AN/A7.40 N/AN/A7.00 N/AN/A6.50 Weighted-average benefit cost assumptionsDiscount rate5.67 5.48 5.51 5.18 3.93 5.09 5.53 4.59 5.43 Expected rate of return on plan assets7.00 5.76 - 7.00 5.34 - 7.00 5.66 - (a) Current forecast is 7.4%, but is estimated to decline to 5% for 2034 and thereafter. Net periodic benefit income from continuing operations in 2026 is estimated to be approximately $655 million, which is a decrease of approximately $70 million as compared to 2025. The decrease is primarily due to investment performance offset by the impact of discount rates. The components of net periodic benefit costs, other than the service cost component, are included in Non-operating benefit cost (income) in our Statement of Operations. 56 2025 FORM 10-K 56 2025 FORM 10-K 56 2025 FORM 10-K PLAN FUNDED STATUS AND AMOUNTS RECORDED IN ACCUMULATED OTHER COMPREHENSIVE LOSS (INCOME)20252024Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Change in benefit obligationsBalance at January 1$23,824 $3,140 $1,202 $36,217 $10,377 $2,055 Service cost59 2 13 71 22 13 Interest cost1,301 173 62 1,401 227 71 Participant contributions7 - 18 8 4 21 Plan amendments36 135 (5) - - - Actuarial loss (gain) - net (a)472 (4)(12)(1,049)(435)(15)Benefits paid(1,774)(185)(143)(1,957)(305)(192)Dispositions/acquisitions/other - net - (24) - (10,867)(6,548)(751)Exchange rate adjustments - 187 - - (202) - Balance at December 31$23,925 (b)$3,424 $1,135 (c)$23,824 $3,140 $1,202 Change in plan assetsBalance at January 1$19,020 $3,592 $6 $29,744 $10,764 $8 Actual return on plan assets1,751 131 (1)440 (109) - Employer contributions212 41 125 216 60 169 Participant contributions7 - 18 8 4 21 Benefits paid(1,774)(185)(143)(1,957)(305)(192)Dispositions/acquisitions/other - net - 3 - (9,431)(6,611) - Exchange rate adjustments - 249 - - (211) - Balance at December 31$19,216 $3,831 $5 $19,020 $3,592 $6 Funded status - surplus (deficit)$(4,709)$407 $(1,130)$(4,804)$452 $(1,196)Amounts recorded inStatement of Financial PositionContinuing operations:Non-current assets - other$ - $822 $ - $ - $876 $ - Current liabilities - other(211)(31)(112)(199)(34)(118)Non-current liabilities - compensation and benefits (4,498)(384)(1,018)(4,605)(390)(1,078)Net amount recorded$(4,709)$407 $(1,130)$(4,804)$452 $(1,196)Amounts recorded in Accumulated other comprehensive loss (income)Prior service cost (credit)$5 $148 $(379)$(40)$9 $(455)Net loss (gain)197 900(510)(530)803 (559)Total recorded in Accumulated other comprehensive loss (income)$202 $1,048 $(889)$(570)$812 $(1,014) (a)Principally due to impact of discount rates. (b)The benefit obligation for the GE Aerospace Supplementary Pension Plan, which is unfunded, was $2,872 million at December 31, 2025. (c)The benefit obligation for retiree health plans for GE Aerospace was $660 million at December 31, 2025. ASSUMPTIONS USED IN CALCULATIONS. Our defined benefit pension plans are accounted for on an actuarial basis, which requires the selection of various assumptions, including a discount rate, a compensation assumption, an expected return on assets, mortality rates of participants and expectation of mortality improvement. Projected benefit obligations are measured as the present value of expected benefit payments. We discount those cash payments using a discount rate. We determine the discount rate using the weighted-average yields on high-quality fixed-income securities with maturities that correspond to the payment of benefits. Lower discount rates increase present values and generally increase subsequent-year pension expense; higher discount rates decrease present values and generally reduce subsequent-year pension expense. The compensation assumption is used to estimate the annual rate at which pay of plan participants will grow. If the rate of growth assumed increases, the size of the pension obligations will increase, as will the amount recorded in AOCI in our Statement of Financial Position and amortized into net income in subsequent periods. 2025 FORM 10-K 57 2025 FORM 10-K 57 2025 FORM 10-K 57 The expected return on plan assets is the estimated long-term rate of return that will be earned on the investments used to fund the benefit obligations. To determine the expected long-term rate of return on pension plan assets, we consider our asset allocation as well as historical and expected returns on various categories of plan assets. In developing future long-term return expectations for our principal benefit plans' assets, we formulate views on the future economic environment, both in the U.S. and abroad. We evaluate general market trends and historical relationships among a number of key variables that impact asset class returns such as expected net income growth, inflation, valuations, yields and spreads, using both internal and external sources. We also take into account expected volatility by asset class and diversification across classes to determine expected overall portfolio results given our asset allocation. Based on our analysis, we have assumed a 7.00% long-term expected return on the GE Aerospace Pension Plan assets for cost recognition in 2025 and 2024. The healthcare trend assumptions primarily apply to our pre-65 retiree medical plans. Most participants in our post-65 retiree plan have a fixed subsidy and therefore are not subject to healthcare inflation. We evaluate these critical assumptions at least annually on a plan and country-specific basis. We periodically evaluate other assumptions involving demographics factors such as retirement age and turnover, and update them to reflect our actual experience and expectations for the future. Actual results in any given year will often differ from actuarial assumptions because of economic and other factors. Differences between our actual results and what we assumed are recorded in AOCI each period. These differences are amortized into net income over the remaining average future service of active participating employees or the expected life of inactive participants, as applicable. For the principal pension plans, gains and losses are amortized using a straight-line method with a separate layer for each year's gains and losses. For most other pension plans and principal retiree benefit plans, gains and losses are amortized using a straight-line or a corridor amortization method. SENSITIVITIES TO KEY ASSUMPTIONS. Fluctuations in discount rates can significantly impact pension cost and obligations. We would expect that a 25 basis point decrease in discount rate would increase our GE Aerospace principal pension plan cost in the following year by approximately $45 million and would also expect an increase in the GE Aerospace principal pension plan projected benefit obligation at year-end by approximately $570 million. The deficit sensitivity to the discount rate would be lower than the projected benefit obligation sensitivity as a result of the liability hedging program incorporated in the asset allocation. A 25 basis point decrease in the expected return on assets would increase GE Aerospace principal pension plan cost in the following year by approximately $50 million. PLAN ASSETS. The fair value of our pension plans' investments are presented below. The inputs and valuation techniques used to measure the fair value of these assets are described in Note 1 and have been applied consistently. The fair value of our pension plans' investments are presented below. The inputs and valuation techniques used to measure the fair value of these assets are described in Note 1 and have been applied consistently. Level 1Level 2Level 3Assets measured at NAVTotal2025202420252024202520242025202420252024Asset CategoryGlobal equity$1,200 $1,156 $230 $203 $2,410 $1,912 $3,840 $3,271 Fixed income and cash investment funds952 1,299 1,617 1,448 2,569 2,747 U.S. corporate(a)2,496 3,125 2,496 3,125 Other debt securities(b)2,957 3,152 2,263 1,851 5,220 5,003 Real estate449 541 934 995 1,383 1,536 Private equities and other investments246 312 7,079 6,385 7,325 6,697 Derivatives, net(c)(67)(139)12 20 (55)(119)Cash284 297 Payables(400)(440)Receivables385 495 $2,085 $2,316 $7,312 $7,948 $695 $853 $12,686 $11,143 $23,047 $22,612 (a)Primarily represented investment-grade bonds of U.S. issuers from diverse industries. (b)Primarily represented in the Level 2 investments are residential and commercial mortgage-backed securities, non-U.S. corporate and government bonds and U.S. government, federal agency, state and municipal debt. (c)Derivatives include derivative assets with a fair value of $51 million and $37 million and derivative liabilities with a fair value of $106 million and $156 million as of December 31, 2025 and 2024, respectively. Derivative instruments may include exchange-traded futures contracts, interest rate swaps, options on futures and swaps, currency contracts and credit default swaps. 58 2025 FORM 10-K 58 2025 FORM 10-K 58 2025 FORM 10-K Included in Level 1 are Principal Pension Plans investments with a fair value of $2,061 million and $2,288 million, as well as Other Pension Plan of $24 million and $28 million at December 31, 2025 and 2024, respectively. Included in Level 2 are Principal Pension Plans investments with a fair value of $5,300 million and $6,235 million, as well as Other Pension Plan of $2,012 million and $1,713 million of December 31, 2025 and 2024, respectively. Included in Level 3 are Principal Pension Plans investments with a fair value of $687 million and $844 million, as well as Other Pension Plan of $8 million and $9 million at December 31, 2025 and 2024, respectively. Included in Assets measured at net asset value are Principal Pension Plans investments with a fair value of $11,039 million and $9,435, as well as Other Pension Plan of $1,647 million and $1,708 million at December 31, 2025 and 2024, respectively. Included in cash, payables, and receivables are Principal Pension Plans assets of $129 million and $218 million, as well as Other Pension Plan of $140 million and $134 million at December 31, 2025 and 2024, respectively. Principal retiree benefit assets had a fair value of $5 million and $6 million at December 31, 2025 and 2024, respectively. There were no Level 3 principal retiree benefit plan investments held in 2025 and 2024. ASSET ALLOCATION OF PENSION PLANS2025 Target allocation2025 Actual allocationPrincipal PensionOther Pension (weighted average)Principal PensionOther Pension (weighted average)Global equities10.0 - 30.0%14 %18 %12 %Debt securities (including cash equivalents)19.0 - 87.565 41 65 Real estate1.0 - 10.06 6 7 Private equities & other investments12.0 - 44.015 35 16 10.0 - 30.0 19.0 - 87.5 1.0 - 10.0 12.0 - 44.0 Plan fiduciaries set investment policies and strategies for the principal pension plans and oversee their investment allocation, which includes selecting investment managers and setting long-term strategic targets. The plan fiduciaries' primary strategic investment objectives are balancing investment risk and return and monitoring the plan's liquidity position in order to meet near-term benefit payment and other cash needs. The plan has incorporated de-risking objectives and liability hedging programs as part of its long-term investment strategy and utilizes a combination of long-dated corporate bonds, treasuries, strips and derivatives to implement its investment strategies as well as for hedging asset and liability risks. Target allocation percentages are established at an asset class level by plan fiduciaries. Target allocation ranges are guidelines, not limitations, and occasionally plan fiduciaries will approve allocations above or below a target range. GE Aerospace securities represented 1.4% and 0.8% of the Principal Pension Plans' assets at December 31, 2025 and 2024, respectively. EXPECTED FUTURE BENEFIT PAYMENTS OF OUR BENEFIT PLANS(a)Principal pensionOther pensionPrincipal retiree benefit2026$1,815 $190 $120 20271,820 190 115 20281,825 200 115 20291,825 205 110 20301,820 210 110 2031-20358,825 1,115 465 (a) As of the measurement date of December 31, 2025. DEFINED CONTRIBUTION PLAN. We have a defined contribution plan for eligible U.S. employees that provides employer contributions which were $264 million, $265 million and $342 million for the years ended December 31, 2025, 2024 and 2023, respectively. Employer contributions for continuing operations were $264 million, $230 million and $213 million for the years ended December 31, 2025, 2024 and 2023, respectively. 2025 FORM 10-K 59 2025 FORM 10-K 59 2025 FORM 10-K 59 COST OF POSTRETIREMENT BENEFIT PLANS AND CHANGES IN OTHER COMPREHENSIVE INCOMEFor the years ended December 31202520242023(Pre-tax)Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Principal pension Other pension Principal retiree benefit Cost (income) of postretirement benefit plans$(655)$(2)$(66)$(741)$(21)$(101)$(1,108)$(118)$(144)Changes in other comprehensive loss (income)Prior service cost (credit) - current year36 135 (5) - - - 49 - - Net loss (gain) - current year (a)221 132 (11)262 (52)(15)1,588 721 (5)Reclassifications out of AOCICurtailment/settlement gain (loss) - - - - - - - 6 - Dispositions - - - 185 (761)715 1,989 (792)1,216 Amortization of net gain (loss)506 (30)60 468 (41)82 723 (20)124 Amortization of prior service credit (cost)9 - 81 (6)1 103 (5)4 148 Total changes in other comprehensive loss (income)772 237 125 909 (853)885 4,344 (81)1,483 Cost (income) of postretirement benefit plans and changes in other comprehensive loss (income)$117 $235 $59 $168 $(874)$784 $3,236 $(199)$1,339 (a) Primarily due to impact of discount rates and investment performance. NOTE 14. SALES DISCOUNTS AND ALLOWANCES & ALL OTHER LIABILITIES. Sales discounts and allowances increased by $562 million in the year ended December 31, 2025, primarily due to accruals on product reserves and spare part discounts outpacing payments to airline customers in Commercial Engines & Services. Sales discounts and allowances increased by $562 million in the year ended December 31, 2025, primarily due to accruals on product reserves and spare part discounts outpacing payments to airline customers in Commercial Engines & Services. All other current liabilities and All other liabilities primarily includes employee compensation and benefits, equipment project and commercial liabilities, uncertain and other income taxes and related liabilities, environmental, health and safety remediations and operating lease liabilities (see Note 6). All other current liabilities increased by $265 million in the year ended December 31, 2025, primarily related to an increase in employee compensation and benefits of $331 million. All other liabilities increased $901 million in the year ended December 31, 2025, primarily due to an increase in uncertain and other income taxes and related liabilities of $696 million, an increase in equipment projects and other commercial liabilities of $120 million and an increase in environmental, health and safety liabilities of $101 million. NOTE 15. INCOME TAXES. GE Aerospace files a consolidated U.S. federal income tax return which enables the company to use tax deductions and credits of one member of the group to reduce the tax that otherwise would have been payable by another member of the group. The effective tax rate reflects the benefit of these tax reductions in the consolidated return. Cash payments are made within the company for tax increases or reductions. . GE Aerospace files a consolidated U.S. federal income tax return which enables the company to use tax deductions and credits of one member of the group to reduce the tax that otherwise would have been payable by another member of the group. The effective tax rate reflects the benefit of these tax reductions in the consolidated return. Cash payments are made within the company for tax increases or reductions . Our businesses are subject to a wide variety of U.S. federal, state and foreign tax laws, regulations and policies. Changes to these laws or regulations may affect our tax liability, return on investments and business operations. On July 4, 2025, the reconciliation bill, commonly referred to as the One Big Beautiful Bill Act (OBBBA), was signed into law in the U.S., which includes a broad range of tax reform provisions. Beginning in 2025, the OBBBA provides an elective deduction for domestic research and development expenses, a reinstatement of elective 100% first-year bonus depreciation and repeal of non-U.S. corporations' fiscal year end. Some impacts of the OBBBA will not be realized until 2026 and forward, such as a more favorable tax rate on Foreign-Derived Deduction Eligible Income and income from non-U.S. subsidiaries (Net CFC Tested Income). In 2025, we incurred $131 million of tax expense in connection with OBBBA. Due to the nature of the tax law changes, the company has not realized an impact in the Statement of Operations related to deferred taxes. We will continue to monitor the impact of the OBBBA and the range of potential outcomes, which will depend on our facts in each year and anticipated guidance from the U.S. Department of the Treasury. As members of the OECD (Organisation for Economic Co-operation and Development) over 140 countries have agreed in principle to a global minimum tax of 15% of reported profits (Pillar 2). The OECD have published model rules on Pillar 2. Many countries have now incorporated Pillar 2 model rule concepts into their domestic laws. Although the model rules provide a framework for applying the minimum tax, countries may enact Pillar 2 slightly differently than the model rules and on different timelines and may adjust domestic tax incentives in response to Pillar 2. In January 2025, the U.S. issued an executive order announcing opposition to aspects of these rules. In June 2025, the G7 countries agreed that U.S. Multi-National Entities (MNEs) should be excluded from certain aspects of the Pillar 2 global minimum tax rules (the G7 Statement) in exchange for the U.S. not imposing retaliatory taxes. On January 5, 2026, the OECD/G20 announced the Side-by-Side (SbS) package, implemented as administrative guidance and modifying the operation of Pillar 2 rules. The package introduces simplifications and new safe harbors for U.S. and other multinational companies where domestic and international tax systems meet robust requirements to coexist with Pillar 2 which would fully exempt U.S.-parented groups from the application of two of the three Pillar 2 top up taxes. The SbS package also extends the current Transitional Country-by-Country Reporting (CbCR) Safe Harbor by one year, through the end of fiscal year of 2027. We continue to refine the effective tax rate and cash tax impact for Pillar 2 in light of legislative changes in multiple countries. During 2025, we have incurred $129 million of tax expenses in connection with the incorporation of the Pillar 2 model rules, which we have considered as part of the effective tax rate. 60 2025 FORM 10-K 60 2025 FORM 10-K 60 2025 FORM 10-K INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES202520242023U.S. income (loss)$6,659 $4,809 $7,195 Non-U.S. income (loss)3,341 2,811 3,246 Total$10,000 $7,620 $10,441 INCOME TAX PAYMENTS2025U.S. Federal(a)$150 U.S. State(a)7 Non-U.S: Singapore178 United Kingdom78 Ireland60 Hungary52 Italy46 India36 Other Non-U.S.132Total income taxes paid (received), continuing operations$739 (a) Includes the benefit of the OBBBA. For the year ended December 31, 2025, income taxes paid (received) in discontinued operations was $(154) million. Income taxes paid were $852 million and $994 million for the years ended December 31, 2024 and 2023, respectively, including payments reported in discontinued operations. PROVISION (BENEFIT) FOR INCOME TAXES202520242023CurrentU.S. Federal$671 $310 $(588)Non-U.S.709 423 314 U.S. State(72)48 134 DeferredU.S. Federal(35)250 622 Non-U.S.32 59 453 U.S. State100 (128)59 Total$1,405 $962 $994 RECONCILIATION OF U.S. FEDERAL STATUTORY INCOME TAX RATE TO EFFECTIVE INCOME TAX RATE2025AmountRateU.S. federal statutory income tax rate$2,100 21.0 %State and local income taxes, net of federal income tax effect(a)74 0.7 %Foreign tax effects: Singapore Statutory rate difference between foreign and U.S.(70)(0.7)% Local taxes at a rate different than the statutory rate(b) (37)(0.4)% Other 53 0.5 % Other foreign jurisdictions68 0.7 %Effect of cross-border tax laws Foreign-derived intangible income(338)(3.4)% Other7 0.1 %Tax credits Energy-related tax credits(213)(2.1)% R&D credit(354)(3.5)%Change in valuation allowances(91)(0.9)%Nontaxable or nondeductible items(54)(0.5)%Changes in unrecognized tax benefits258 2.6 %Other adjustments2 - %Effective income tax rate$1,405 14.1 % (a) State and local taxes in FL, MA, KS, TN and CA comprise the majority of this category. (b) The tax expense (benefit) related to the negotiated tax rate in Singapore was reduced by $121 million of the global minimum tax under Pillar 2. 2025 FORM 10-K 61 2025 FORM 10-K 61 2025 FORM 10-K 61 Below is a tabular rate reconciliation previously disclosed for the year ended December 31, 2024 and 2023. RECONCILIATION OF U.S. FEDERAL STATUTORY INCOME TAX RATE TO EFFECTIVE INCOME TAX RATE20242023AmountRateAmountRateU.S. federal statutory income tax rate$1,600 21.0 %$2,193 21.0 %State Taxes, net of federal benefit123 1.6 152 1.5 Tax on global activities including exports(a)(92)(1.2)78 0.7 U.S. business credits(b)(242)(3.2)(254)(2.4)Retained and sold ownership interests(110)(1.4)(1,215)(11.6)All other - net(c)(317)(4.2)40 0.3 (638)(8.4)(1,199)(11.5)Effective income tax rate$962 12.6 %$994 9.5 % (a)For the years ended December 31, 2024 and 2023, the tax expense (benefit) related to the negotiated tax rate in Singapore was $(136) million and $(136) million, respectively, and the tax expense (benefit) related to cross-border tax payments and U.S. tax on non-U.S. subsidiaries was $88 million and $121 million, respectively. (b)Primarily the credit for energy produced from renewable sources from tax equity investments and the credit for research performed in the U.S. (c)For the years ended December 31, 2024 and 2023, included $(246) million and $35 million, respectively, for separation income tax costs (benefits), of which zero and $38 million was due to the repatriation of previously reinvested net income. UNRECOGNIZED TAX POSITIONS. Annually, we file over 500 income tax returns in over 200 global taxing jurisdictions. As a multinational with operations around the world, we are under examination in many taxing jurisdictions and in some cases engaged in litigation, including our legacy businesses. The IRS is currently auditing our consolidated U.S. income tax returns for 2016-2020. A summary and reconciliation of our unrecognized tax benefits are as follows: UNRECOGNIZED TAX BENEFITS December 31202520242023Unrecognized tax benefits$3,056 $2,824 $3,399 Portion that, if recognized, would reduce tax expense and effective tax rate(a)2,381 2,110 2,708 Accrued interest on unrecognized tax benefits656 609 635 Accrued penalties on unrecognized tax benefits11 14 111 --- ## Modified Risk: NOTE 25. SEGMENT AND GEOGRAPHIC INFORMATION & REMAINING PERFORMANCE OBLIGATION **Key changes:** - Removed: "On April 2, 2024, and in conjunction with the GE Vernova separation, we implemented an organizational change to align our reportable segments more closely with our business structure." - Removed: "In connection with our segment reporting change, we have recast previously reported amounts across all reportable segments to conform to current segment presentation." - Updated: "See About GE Aerospace for a description of our reporting segments as of December 31, 2025." - Updated: "Segment profit excludes results reported as discontinued operations and the portion of net income or loss attributable to noncontrolling interests of consolidated subsidiaries, and as such only includes the portion of net income or loss attributable to our share of the consolidated net income or loss of consolidated subsidiaries." - Updated: "2025 FORM 10-K 71 2025 FORM 10-K 71 2025 FORM 10-K 71 REVENUETotal revenueIntersegment revenueExternal revenueYears ended December 31202520242023202520242023202520242023Commercial Engines & Services$33,314 $26,881 $23,855 $62 $216 $559 $33,252 $26,666 $23,296 Defense & Propulsion Technologies10,554 9,478 8,961 1,686 1,453 1,253 8,868 8,025 7,708 Corporate & Other1,987 2,343 2,532 (1,748)(1,669)(1,812)3,735 4,011 4,344 Total revenue$45,855 $38,702 $35,348 $ - $ - $ - $45,855 $38,702 $35,348 Corporate & Other 202520242023Years ended December 31EquipmentServicesTotalEquipmentServicesTotalEquipmentServicesTotalCommercial Engines & Services$8,304 $25,010 $33,314 $7,106 $19,775 $26,881 $6,169 $17,686 $23,855 Defense & Propulsion Technologies5,128 5,426 10,554 4,208 5,270 9,478 4,000 4,961 8,961 Total segment revenue$13,433 $30,436 $43,868 $11,315 $25,045 $36,360 $10,170 $22,647 $32,816 Total sales of equipment and services to agencies of the U.S." **Prior (2025):** SEGMENT INFORMATION. On April 2, 2024, and in conjunction with the GE Vernova separation, we implemented an organizational change to align our reportable segments more closely with our business structure. In connection with our segment reporting change, we have recast previously reported amounts across all reportable segments to conform to current segment presentation. We have two reportable segments and three operating segments. Operating segments are aggregated into a reportable segment if the operating segments have similar quantitative economic characteristics and if the operating segments are similar in the following qualitative characteristics: (i) nature of products and services; (ii) nature of production processes; (iii) type or class of customer for their products and services; (iv) methods used to distribute the products or provide services; and (v) if applicable, the nature of the regulatory environment. We have aggregated Defense & Systems and Propulsion & Additive Technology into one reportable segment (Defense & Propulsion Technologies) based on similarity in economic characteristics, other qualitative factors and the objectives and principals of ASC 280, Segment Reporting. This is consistent with how our chief operating decision maker (CODM), who is our Chief Executive Officer (CEO), allocates resources and makes decisions. Segment accounting policies are the same as described and referenced in Note 1. See About GE Aerospace for a description of our reporting segments as of December 31, 2024. Segment revenue includes sales of equipment and services by our segments. Segment profit is determined based on performance measures used by our CODM. Our CODM uses segment profit or loss to assess performance and allocate resources to each segment, primarily through periodic budgeting and segment performance reviews. In connection with that assessment, our CODM may exclude matters, such as charges for impairments, significant, higher-cost restructuring programs, costs associated with separation activities, manufacturing footprint rationalization and other similar expenses, acquisition costs and other related charges, certain gains and losses from acquisitions or dispositions and certain litigation settlements. Segment profit excludes results reported as discontinued operations and the portion of earnings or loss attributable to noncontrolling interests of consolidated subsidiaries, and as such only includes the portion of earnings or loss attributable to our share of the consolidated earnings or loss of consolidated subsidiaries. Certain corporate costs, including those related to shared services, employee benefits and information technology, are allocated to our segments based on usage or their relative net cost of operations. See the Corporate & Other section within MD&A for further information about costs excluded from segment profit. The Company does not report total assets by segment for internal or external reporting purposes as the Company's CODM does not assess performance, make strategic decisions, or allocate resources based on assets. 74 2024 FORM 10-K 74 2024 FORM 10-K 74 2024 FORM 10-K REVENUETotal revenueIntersegment revenueExternal revenueYears ended December 31202420232022202420232022202420232022Commercial Engines & Services$26,881 $23,855 $18,813 $216 $559 $451 $26,666 $23,296 $18,362 Defense & Propulsion Technologies9,478 8,961 7,989 1,453 1,253 1,017 8,025 7,708 6,972 Corporate & Other2,343 2,532 2,337 (1,669)(1,812)(1,468)4,011 4,344 3,805 Total revenue$38,702 $35,348 $29,139 $ - $ - $ - $38,702 $35,348 $29,139 Corporate & Other 202420232022Years ended December 31EquipmentServicesTotalEquipmentServicesTotalEquipmentServicesTotalCommercial Engines & Services$7,106 $19,775 $26,881 $6,169 $17,686 $23,855 $5,125 $13,688 $18,813 Defense & Propulsion Technologies4,208 5,270 9,478 4,000 4,961 8,961 3,405 4,584 7,989 Total segment revenue$11,315 $25,045 $36,360 $10,170 $22,647 $32,816 $8,530 $18,272 $26,802 Total sales of equipment and services to agencies of the U.S. Government were 12%, 14% and 15% of total revenue for the years ended December 31, 2024, 2023 and 2022, respectively. EXPENSES, PROFIT AND EARNINGS For the years ended December 31202420232022Commercial Engines & ServicesCost of revenue$17,703 $16,575 $13,329 Selling, general and administrative expenses1,678 1,386 1,119 Research and development993 736 543 Other segment expenses (income)(a)(548)(484)(342)Total Commercial Engines & Services expenses19,826 18,213 14,649 Defense & Propulsion TechnologiesCost of revenue7,237 6,929 5,971 Selling, general and administrative expenses954 893 810 Research and development301 277 271 Other segment expenses (income)(a)(75)(46)(39)Total Defense & Propulsion Technologies expenses8,417 8,053 7,013 Commercial Engines & Services7,055 5,643 4,164 Defense & Propulsion Technologies1,061 908 976 Total segment profit (loss)8,116 6,551 5,139 Corporate & Other(89)3,943 (1,876)Interest and other financial charges(986)(1,029)(1,339)Debt extinguishment costs - - (465)Non-operating benefit income (cost)842 978 60 Goodwill impairments(251) - - Benefit (provision) for income taxes(962)(994)(169)Preferred stock dividends - (295)(289)Earnings (loss) from continuing operations attributable to common shareholders6,670 9,154 1,061 Earnings (loss) from discontinued operations attributable to common shareholders(114)33 (1,014)Net earnings (loss) attributable to common shareholders$6,556 $9,188 $48 **Current (2026):** SEGMENT INFORMATION. We have two reportable segments and three operating segments. Operating segments are aggregated into a reportable segment if the operating segments have similar quantitative economic characteristics and if the operating segments are similar in the following qualitative characteristics: (i) nature of products and services; (ii) nature of production processes; (iii) type or class of customer for their products and services; (iv) methods used to distribute the products or provide services; and (v) if applicable, the nature of the regulatory environment. We have aggregated Defense & Systems and Propulsion & Additive Technology into one reportable segment (Defense & Propulsion Technologies) based on similarity in economic characteristics, other qualitative factors and the objectives and principals of ASC 280, Segment Reporting. This is consistent with how our chief operating decision maker (CODM), who is our Chief Executive Officer (CEO), allocates resources and makes decisions. Segment accounting policies are the same as described and referenced in Note 1. See About GE Aerospace for a description of our reporting segments as of December 31, 2025. Segment revenue includes sales of equipment and services by our segments. Segment profit is determined based on performance measures used by our CODM. Our CODM uses segment profit or loss to assess performance and allocate resources to each segment, primarily through periodic budgeting and segment performance reviews. In connection with that assessment, our CODM may exclude matters, such as charges for impairments, significant, higher-cost restructuring programs, costs associated with separation activities, manufacturing footprint rationalization and other similar expenses, acquisition costs and other related charges, certain gains and losses from acquisitions or dispositions and certain litigation settlements. Segment profit excludes results reported as discontinued operations and the portion of net income or loss attributable to noncontrolling interests of consolidated subsidiaries, and as such only includes the portion of net income or loss attributable to our share of the consolidated net income or loss of consolidated subsidiaries. Certain corporate costs, including those related to shared services, employee benefits and information technology, are allocated to our segments based on usage or their relative net cost of operations. See the Corporate & Other section within MD&A for further information about costs excluded from segment profit. The Company does not report total assets by segment for internal or external reporting purposes as the Company's CODM does not assess performance, make strategic decisions, or allocate resources based on assets. 2025 FORM 10-K 71 2025 FORM 10-K 71 2025 FORM 10-K 71 REVENUETotal revenueIntersegment revenueExternal revenueYears ended December 31202520242023202520242023202520242023Commercial Engines & Services$33,314 $26,881 $23,855 $62 $216 $559 $33,252 $26,666 $23,296 Defense & Propulsion Technologies10,554 9,478 8,961 1,686 1,453 1,253 8,868 8,025 7,708 Corporate & Other1,987 2,343 2,532 (1,748)(1,669)(1,812)3,735 4,011 4,344 Total revenue$45,855 $38,702 $35,348 $ - $ - $ - $45,855 $38,702 $35,348 Corporate & Other 202520242023Years ended December 31EquipmentServicesTotalEquipmentServicesTotalEquipmentServicesTotalCommercial Engines & Services$8,304 $25,010 $33,314 $7,106 $19,775 $26,881 $6,169 $17,686 $23,855 Defense & Propulsion Technologies5,128 5,426 10,554 4,208 5,270 9,478 4,000 4,961 8,961 Total segment revenue$13,433 $30,436 $43,868 $11,315 $25,045 $36,360 $10,170 $22,647 $32,816 Total sales of equipment and services to agencies of the U.S. Government were 10%, 12% and 14% of total revenue for the years ended December 31, 2025, 2024 and 2023, respectively. EXPENSES, PROFIT AND INCOME For the years ended December 31202520242023Commercial Engines & ServicesCost of revenue$21,998 $17,703 $16,575 Selling, general and administrative expenses1,845 1,678 1,386 Research and development1,287 993 736 Other segment expenses (income)(a)(677)(548)(484)Total Commercial Engines & Services expenses24,453 19,826 18,213 Defense & Propulsion TechnologiesCost of revenue7,910 7,237 6,929 Selling, general and administrative expenses1,088 954 893 Research and development308 301 277 Other segment expenses (income)(a)(48)(75)(46)Total Defense & Propulsion Technologies expenses9,258 8,417 8,053 Commercial Engines & Services8,861 7,055 5,643 Defense & Propulsion Technologies1,296 1,061 908 Total segment profit (loss)10,157 8,116 6,551 Corporate & Other(96)(89)3,943 Interest and other financial charges(843)(986)(1,029)Non-operating benefit income (cost)788 842 978 Goodwill impairments - (251) - Benefit (provision) for income taxes(1,405)(962)(994)Preferred stock dividends - - (295)Net income (loss) from continuing operations attributable to common shareholders8,601 6,670 9,154 Net income (loss) from discontinued operations attributable to common shareholders103 (114)33 Net income (loss) attributable to common shareholders$8,704 $6,556 $9,188 --- ## Modified Risk: UNRECOGNIZED TAX BENEFITS December 31 **Key changes:** - Updated: "(a) Some portion of such reduction may be reported as discontinued operations." - Updated: "We also have not provided deferred taxes on cumulative net income of non-U.S." - Updated: "We reassess reinvestment of net income on an ongoing basis." **Prior (2025):** Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months 0-300 0-610 0-650 0-270 0-550 0-600 (a) Some portion of such reduction may be reported as discontinued operations. UNRECOGNIZED TAX BENEFITS RECONCILIATION202420232022Balance at January 1$3,399 $3,951 $4,224 Additions for tax positions of the current year68 109 62 Additions for tax positions of prior years77 156 120 Reductions for tax positions of prior years(a)(649)(710)(393)Settlements with tax authorities(14)(56)(8)Expiration of the statute of limitations(57)(51)(54)Balance at December 31$2,824 $3,399 $3,951 (a) Included $(612) million due to the spin of GE Vernova for 2024 and $(577) million due to the spin of GE HealthCare for 2023. 64 2024 FORM 10-K 64 2024 FORM 10-K 64 2024 FORM 10-K We classify interest on tax deficiencies as interest expense; we classify income tax penalties as provision for income taxes. For the years ended December 31, 2024, 2023 and 2022, we recognized $137 million, $28 million and $36 million, respectively of interest expense (income) related to tax deficiencies. We also recognized an insignificant amount, $7 million and $(26) million of tax expense (income) related to income tax penalties for the years ended December 31, 2024, 2023 and 2022, respectively. DEFERRED INCOME TAXES. We have not recorded a provision for the deferred taxes related to the U.S. tax on foreign earnings enacted in the Tax Cuts and Jobs Act of 2017 ("global intangible low tax income"). We also have not provided deferred taxes on cumulative net earnings of non-U.S. affiliates and associated companies of approximately $10.2 billion that have been reinvested indefinitely. Due to U.S. tax reform, substantially all of our unrepatriated net earnings have been subject to U.S. tax and accordingly we expect to have the ability repatriate available non-U.S. cash without significant additional tax cost. Most of these earnings have been reinvested in active non-U.S. business operations and it is not practicable to determine the income tax liability that would be payable if such earnings were not reinvested indefinitely. We reassess reinvestment of earnings on an ongoing basis. In 2024, 2023 and 2022 in connection with the execution of the Company's plans to prepare for the spin-off of GE HealthCare and GE Vernova, we incurred zero, $38 million and $66 million of tax, respectively, due to repatriation of previously reinvested earnings. The following table presents our net deferred tax assets and net deferred tax liabilities attributable to different tax jurisdictions or different tax paying components. DEFERRED INCOME TAXES December 3120242023Total assets$7,479 $7,891 Total liabilities(368)(389)Net deferred income tax asset (liability)$7,111 $7,502 **Current (2026):** (a) Some portion of such reduction may be reported as discontinued operations. UNRECOGNIZED TAX BENEFITS RECONCILIATION202520242023Balance at January 1$2,824 $3,399 $3,951 Additions for tax positions of the current year347 68 109 Additions for tax positions of prior years93 77 156 Reductions for tax positions of prior years(a)(168)(649)(710)Settlements with tax authorities(30)(14)(56)Expiration of the statute of limitations(10)(57)(51)Balance at December 31$3,056 $2,824 $3,399 (a) Included $(612) million due to the spin of GE Vernova for 2024 and $(577) million due to the spin of GE HealthCare for 2023. We classify interest on tax deficiencies as interest expense; we classify income tax penalties as provision for income taxes. For the years ended December 31, 2025, 2024 and 2023, we recognized $43 million, $137 million and $28 million, respectively, of interest expense (income) related to tax deficiencies. We also recognized $(2) million, an insignificant amount and $7 million of tax expense (income) related to income tax penalties for the years ended December 31, 2025, 2024 and 2023, respectively. interest expense (income) interest expense (income) interest expense (income) DEFERRED INCOME TAXES. We have not recorded a provision for the deferred taxes related to the U.S. tax on foreign earnings enacted in the Tax Cuts and Jobs Act of 2017 ("global intangible low tax income"). We also have not provided deferred taxes on cumulative net income of non-U.S. affiliates and associated companies that have been reinvested indefinitely. Due to U.S. tax reform, substantially all of our unrepatriated net income have been subject to U.S. tax and accordingly we expect to have the ability to repatriate available non-U.S. cash without significant additional tax cost. Most of these earnings have been reinvested in active non-U.S. business operations and it is not practicable to determine the income tax liability that would be payable if such earnings were not reinvested indefinitely. We reassess reinvestment of net income on an ongoing basis. During the fourth quarter of 2025, we incurred $55 million of withholding tax expense associated with the expected repatriation of certain previously reinvested earnings. 62 2025 FORM 10-K 62 2025 FORM 10-K 62 2025 FORM 10-K The following table presents our net deferred tax assets and net deferred tax liabilities attributable to different tax jurisdictions or different tax paying components. DEFERRED INCOME TAXES December 3120252024Total assets$7,883 $7,479 Total liabilities(424)(368)Net deferred income tax asset (liability)$7,459 $7,111 --- ## Modified Risk: Liabilities of discontinued operations(b) **Key changes:** - Updated: "(a) Included $1,123 million and $1,324 million of cash, cash equivalents and restricted cash related to Bank BPH as of December 31, 2025 and 2024, respectively." - Updated: "Our current investment securities were zero and $982 million as of December 31, 2025 and 2024, respectively." - Updated: "The estimated fair value of non-current investment securities at December 31, 2025 increased since December 31, 2024, primarily due to lower market yields partially offset by net proceeds from debt/equity securities sales and redemptions." - Updated: "corporate securities' gross unrealized losses were in the consumer, electric, technology, communication and energy industries." - Updated: "For the years ended December 31202520242023Net unrealized gains (losses) for equity securities with readily determinable fair value (RDFV)$313 $320 $6,413 Proceeds from debt/equity securities sales and redemptions4,922 9,099 12,595 Gross realized gains on debt securities35 75 52 Gross realized losses and impairments on debt securities(76)(66)(66) Cash flows associated with purchases, dispositions and maturities of insurance investment securities are as follows: For the years ended December 3120252024Purchases of investment securities$(4,050)$(7,132)Dispositions and maturities of investment securities4,475 6,168 Net (purchases) dispositions of insurance investment securities$425 $(963) Contractual maturities of our debt securities (excluding mortgage and asset-backed securities) at December 31, 2025 are as follows: Amortized costEstimated fair valueWithin one year$843 $847 After one year through five years3,460 3,561 After five years through ten years5,269 5,498 After ten years24,762 22,845 We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations." **Prior (2025):** (a) Included $1,324 million and $1,391 million of cash, cash equivalents and restricted cash related to Bank BPH as of December 31, 2024 and 2023, respectively. (b) Included $1,594 million and $1,963 million of valuation allowances against financing receivables held for sale, of which $1,517 million and $1,712 million related to estimated borrower litigation losses, and $944 million and $957 million in All other liabilities, related to estimated borrower litigation losses for Bank BPH's foreign currency-denominated mortgage portfolio, as of December 31, 2024 and 2023, respectively. Accordingly, total estimated losses related to borrower litigation were $2,461 million and $2,669 million as of December 31, 2024 and 2023, respectively. As a result of the settlement program, the valuation allowance completely offsets the financing receivables balance as of December 31, 2024. (c) Included $102 million and $46,233 million of assets and $148 million and $38,021 million of liabilities for GE Vernova as of December 31, 2024 and 2023, respectively. NOTE 3. INVESTMENT SECURITIES. The majority of our investment securities are held within our run-off insurance operations and are classified as non-current as they support the long-duration insurance liabilities and include debt securities all classified as available-for-sale, substantially all of which are investment-grade. The majority of our investment securities are held within our run-off insurance operations and are classified as non-current as they support the long-duration insurance liabilities and include debt securities all classified as available-for-sale, substantially all of which are investment-grade. We sold our remaining equity shares in GE HealthCare during the fourth quarter of 2024. Our senior note from AerCap, for which we have adopted the fair value option and matures in the fourth quarter of 2025, is still outstanding as of December 31, 2024. December 31, 2024December 31, 2023AmortizedcostGrossunrealizedgainsGrossunrealizedlossesEstimatedfair value AmortizedcostGrossunrealizedgainsGrossunrealizedlossesEstimatedfair value Equity (GE HealthCare)$ - $ - $ - $ - $ - $ - $ - $4,761 Equity note (AerCap) - - - 982 - - - 944 Current investment securities$ - $ - $ - $982 $ - $ - $ - $5,706 DebtU.S. corporate$28,456 $546 $(2,309)$26,692 $27,495 $1,034 $(1,606)$26,923 Non-U.S. corporate2,970 23 (302)2,691 2,529 34 (209)2,353 State and municipal2,409 22 (235)2,196 2,828 79 (185)2,723 Mortgage and asset-backed5,007 47 (183)4,870 4,827 34 (291)4,571 Government and agencies1,180 4 (118)1,066 1,213 3 (116)1,100 Other equity225 - - 225 331 - - 331 Non-current investment securities$40,248 $641 $(3,148)$37,741 $39,222 $1,183 $(2,406)$38,000 Equity (GE HealthCare) The amortized cost of debt securities excludes accrued interest of $473 million and $466 million at December 31, 2024 and 2023, respectively, which is reported in All other current assets. , which is reported in All other current assets. , which is reported in All other current assets. The estimated fair value of investment securities at December 31, 2024 decreased since December 31, 2023, primarily due to share sales of our GE HealthCare equity interest and lower investment values due to higher market yields partially offset by new investments at our run-off insurance operations. 50 2024 FORM 10-K 50 2024 FORM 10-K 50 2024 FORM 10-K Total estimated fair value of debt securities in an unrealized loss position were $21,876 million and $18,730 million, of which $14,011 million and $17,146 million had gross unrealized losses of $(2,795) million and $(2,370) million and had been in a loss position for 12 months or more at December 31, 2024 and 2023, respectively. Gross unrealized losses at December 31, 2024 included $(119) million related to commercial mortgage-backed securities (CMBS) collateralized by pools of commercial mortgage loans on real estate, and $(52) million related to asset-backed securities. The majority of our CMBS and asset-backed securities in an unrealized loss position have received investment-grade credit ratings from the major rating agencies. The majority of our U.S. and non-U.S. corporate securities' gross unrealized losses were in the consumer, electric, technology and energy industries. For our securities in an unrealized loss position, the losses are not indicative of credit losses, we currently do not intend to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis. For the years ended December 31202420232022Net unrealized gains (losses) for equity securities with readily determinable fair value (RDFV)$320 $6,413 $(42)Proceeds from debt/equity securities sales and early redemptions9,099 12,595 7,240 Gross realized gains on debt securities75 52 34 Gross realized losses on debt securities(66)(66)(42) Cash flows associated with purchases, dispositions and maturities of insurance investment securities are as follows: For the years ended December 3120242023Purchases of investment securities$(7,132)$(5,163)Dispositions and maturities of investment securities6,168 4,176 Net (purchases) dispositions of insurance investment securities$(963)$(986) Contractual maturities of our debt securities (excluding mortgage and asset-backed securities) at December 31, 2024 are as follows: Amortized costEstimated fair valueWithin one year$814 $814 After one year through five years4,003 4,065 After five years through ten years5,160 5,160 After ten years25,039 22,607 We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations. In addition to the equity securities described above, we held $1,439 million and $974 million of equity securities without RDFV including $1,410 million and $939 million at our run-off insurance operations at December 31, 2024 and 2023, respectively, that are classified within All other assets in our Statement of Financial Position. Fair value adjustments, including impairments, recorded in earnings were $159 million and $70 million for the years ended December 31, 2024 and 2023, respectively, and insignificant for December 31, 2022. These are primarily limited partnership investments in private equity, infrastructure and real estate funds that are measured at net asset value per share (or equivalent) as a practical expedient to estimated fair value and are excluded from the fair value hierarchy. These limited partnership investments are generally not eligible for redemption and generally cannot be sold without approval of the general partner. Distribution from each fund will be received as the underlying investments of the funds are liquidated at the discretion of the general partner. These investments are generally considered illiquid and our ability to receive the most recent net asset value in a sale would be determined by external market factors. Our run-off insurance operations have approximately $700 million of assets held by states or other regulatory bodies in statutorily required deposit accounts, and approximately $29,800 million of assets held in trust accounts associated with reinsurance contracts and reinsurance security trust agreements in place between either Employers Reassurance Corporation (ERAC) or Union Fidelity Life Insurance Company (UFLIC) as the reinsuring entity and a number of ceding insurers. Assets in these trusts are held by an independent trustee for the benefit of the ceding insurer, and are subject to various investment guidelines as set forth in the respective reinsurance contracts and trust agreements. Some of these trust agreements may allow a ceding company to withdraw trust assets from the trust and hold these assets on its balance sheet, in an account under its control for the benefit of ERAC or UFLIC which might allow the ceding company to exercise investment control over such assets. 2024 FORM 10-K 51 2024 FORM 10-K 51 2024 FORM 10-K 51 **Current (2026):** (a) Included $1,123 million and $1,324 million of cash, cash equivalents and restricted cash related to Bank BPH as of December 31, 2025 and 2024, respectively. The decrease was primarily driven by purchases of investment securities to meet liquidity needs, which are recorded in All Other Assets. (b) Included $1,389 million and $1,594 million of valuation allowances against financing receivables held for sale, of which $1,389 million and $1,517 million related to estimated borrower litigation losses, and $945 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 December 31, 2025 and 2024, respectively. Accordingly, total estimated losses related to borrower litigation were $2,334 million and $2,461 million as of December 31, 2025 and 2024, respectively, with the decrease driven by utilization offset by foreign exchange movements. The valuation allowance completely offsets the financing receivables balance as of December 31, 2025 and 2024. NOTE 3. INVESTMENT SECURITIES. Our current investment securities were zero and $982 million as of December 31, 2025 and 2024, respectively. Our AerCap senior note matured during the fourth quarter of 2025. Our current investment securities were zero and $982 million as of December 31, 2025 and 2024, respectively. Our AerCap senior note matured during the fourth quarter of 2025. Substantially all of our non-current investment securities are held within our run-off insurance operations and support the long-duration insurance liabilities. The portfolio includes debt securities, which substantially all are investment grade, and are classified as available-for-sale. 2025 FORM 10-K 47 2025 FORM 10-K 47 2025 FORM 10-K 47 December 31, 2025December 31, 2024AmortizedcostGrossunrealizedgainsGrossunrealizedlossesEstimatedfair value AmortizedcostGrossunrealizedgainsGrossunrealizedlossesEstimatedfair value DebtU.S. corporate$27,658 $825 $(1,969)$26,513 $28,456 $546 $(2,309)$26,692 Non-U.S. corporate2,909 41 (242)2,707 2,970 23 (302)2,691 State and municipal2,751 46 (192)2,605 2,409 22 (235)2,196 Mortgage and asset-backed5,202 69 (121)5,151 5,007 47 (183)4,870 Government and agencies1,015 4 (95)924 1,180 4 (118)1,066 Equity887 - - 887 225 - - 225 Non-current investment securities$40,422 $985 $(2,619)$38,788 $40,248 $641 $(3,148)$37,741 The amortized cost of debt securities excludes accrued interest of $473 million and $473 million at December 31, 2025 and 2024, respectively, which is reported in All other current assets. , which is reported in All other current assets. , which is reported in All other current assets. The estimated fair value of non-current investment securities at December 31, 2025 increased since December 31, 2024, primarily due to lower market yields partially offset by net proceeds from debt/equity securities sales and redemptions. Total estimated fair value of debt securities in an unrealized loss position were $18,484 million and $21,876 million, of which $14,656 million and $14,011 million had gross unrealized losses of $(2,525) million and $(2,795) million and have been in a loss position for 12 months or more at December 31, 2025 and 2024, respectively. The majority of our U.S. and non-U.S. corporate securities' gross unrealized losses were in the consumer, electric, technology, communication and energy industries. The majority of our commercial mortgage-backed securities and asset-backed securities in an unrealized loss position have received investment-grade credit ratings from the major rating agencies. For our securities in an unrealized loss position, the losses are not indicative of credit losses, we currently do not intend to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis. For the years ended December 31202520242023Net unrealized gains (losses) for equity securities with readily determinable fair value (RDFV)$313 $320 $6,413 Proceeds from debt/equity securities sales and redemptions4,922 9,099 12,595 Gross realized gains on debt securities35 75 52 Gross realized losses and impairments on debt securities(76)(66)(66) Cash flows associated with purchases, dispositions and maturities of insurance investment securities are as follows: For the years ended December 3120252024Purchases of investment securities$(4,050)$(7,132)Dispositions and maturities of investment securities4,475 6,168 Net (purchases) dispositions of insurance investment securities$425 $(963) Contractual maturities of our debt securities (excluding mortgage and asset-backed securities) at December 31, 2025 are as follows: Amortized costEstimated fair valueWithin one year$843 $847 After one year through five years3,460 3,561 After five years through ten years5,269 5,498 After ten years24,762 22,845 We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations. In addition to the equity securities described above, we held $1,911 million and $1,439 million of equity securities without RDFV including $1,881 million and $1,410 million within our run-off insurance operations at December 31, 2025 and 2024, respectively, that are classified within All other assets in our Statement of Financial Position. Fair value adjustments, net of impairments, recorded in income were $194 million, $159 million and $70 million for the years ended December 31, 2025, 2024 and 2023, respectively. These are primarily limited partnership investments in private equity, infrastructure and real estate funds that are measured at net asset value per share (or equivalent) as a practical expedient to estimated fair value and are excluded from the fair value hierarchy. These limited partnership investments are generally not eligible for redemption and generally cannot be sold without approval of the general partner. Distributions from each fund will be received as the underlying investments of the funds are liquidated at the discretion of the general partner. These investments are generally considered illiquid and our ability to receive the most recent net asset value in a sale would be determined by external market factors. 48 2025 FORM 10-K 48 2025 FORM 10-K 48 2025 FORM 10-K Our run-off insurance operations have approximately $800 million of assets held by states or other regulatory bodies in statutorily required deposit accounts, and approximately $29,900 million of assets held in trust accounts associated with reinsurance contracts and reinsurance security trust agreements in place between either Employers Reassurance Corporation (ERAC) or Union Fidelity Life Insurance Company (UFLIC) as the reinsuring entity and a number of ceding insurers. Assets in these trusts are held by an independent trustee for the benefit of the ceding insurer, and are subject to various investment guidelines as set forth in the respective reinsurance contracts and trust agreements. Some of these trust agreements may allow a ceding company to withdraw trust assets from the trust and hold these assets on its balance sheet, in an account under its control for the benefit of ERAC or UFLIC which might allow the ceding company to exercise investment control over such assets. --- ## Modified Risk: NOTE 16. SHAREHOLDERS' EQUITY **Key changes:** - Updated: "ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dividends per share in dollars)202520242023Beginning balance$(1,472)$(3,623)$(5,893)AOCI before reclasses - net of taxes of $(157), $5 and $74(43)36 12 Reclasses from AOCI - net of taxes of $ - , $103 and $(626)(a) - 2,093 2,262 AOCI(43)2,129 2,274 Less AOCI attributable to noncontrolling interests - (22)4 Currency translation adjustments AOCI$(1,515)$(1,472)$(3,623)Beginning balance$665 $1,786 $6,531 AOCI before reclasses - net of taxes of $(117), $22 and $(497)(393)(8)(1,874)Reclasses from AOCI - net of taxes of $(137), $(269) and $(778)(a)(489)(1,119)(2,873)AOCI(882)(1,127)(4,747)Less AOCI attributable to noncontrolling interests - (7)(2)Benefit plans AOCI$(217)$665 $1,786 Beginning balance$(1,985)$(959)$(1,927)AOCI before reclasses - net of taxes of $192 , $(271) and $248763 (1,017)1,046 Reclasses from AOCI - net of taxes of $7, $4 and $(7)(14)1 (78)AOCI749 (1,016)968 Less AOCI attributable to noncontrolling interests - 12 - Investment securities and cash flow hedges AOCI $(1,236)$(1,985)$(959)Beginning balance$(1,070)$(3,354)$(983)AOCI before reclasses - net of taxes of $(202), $607 and $(630)(761)2,284 (2,371)AOCI(761)2,284 (2,371)Long-duration insurance contracts AOCI$(1,831)$(1,070)$(3,354)AOCI at December 31$(4,798)$(3,861)$(6,150)Dividends declared per common share$1.44 $1.12 $0.32" **Prior (2025):** ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)(Dividends per share in dollars)202420232022Beginning balance$(3,623)$(5,893)$(4,569)AOCI before reclasses - net of taxes of $5, $74 and $14436 12 (1,326)Reclasses from AOCI - net of taxes of $103, $(626) and $ - (a)2,093 2,262 - AOCI2,129 2,274 (1,326)Less AOCI attributable to noncontrolling interests(22)4 (2)Currency translation adjustments AOCI$(1,472)$(3,623)$(5,893)Beginning balance$1,786 $6,531 $3,646 AOCI before reclasses - net of taxes of $22, $(497) and $597(8)(1,874)2,117 Reclasses from AOCI - net of taxes of $(269), $(778), and $216(a)(1,119)(2,873)772 AOCI(1,127)(4,747)2,889 Less AOCI attributable to noncontrolling interests(7)(2)3 Benefit plans AOCI$665 $1,786 $6,531 Beginning balance$(959)$(1,927)$5,172 AOCI before reclasses - net of taxes of $(271), $248 and $(1,861)(1,017)1,046 (7,135)Reclasses from AOCI - net of taxes of $4, $(7) and $(20)1 (78)36 AOCI(1,016)968 (7,099)Less AOCI attributable to noncontrolling interests12 - - Investment securities and cash flow hedges AOCI $(1,985)$(959)$(1,927)Beginning balance$(3,354)$(983)$(9,109)AOCI before reclasses - net of taxes of $607, $(630) and $2,160 2,284 (2,371)8,126 AOCI2,284 (2,371)8,126 Long-duration insurance contracts AOCI$(1,070)$(3,354)$(983)AOCI at December 31$(3,861)$(6,150)$(2,272)Dividends declared per common share$1.12 $0.32 $0.32 **Current (2026):** ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Dividends per share in dollars)202520242023Beginning balance$(1,472)$(3,623)$(5,893)AOCI before reclasses - net of taxes of $(157), $5 and $74(43)36 12 Reclasses from AOCI - net of taxes of $ - , $103 and $(626)(a) - 2,093 2,262 AOCI(43)2,129 2,274 Less AOCI attributable to noncontrolling interests - (22)4 Currency translation adjustments AOCI$(1,515)$(1,472)$(3,623)Beginning balance$665 $1,786 $6,531 AOCI before reclasses - net of taxes of $(117), $22 and $(497)(393)(8)(1,874)Reclasses from AOCI - net of taxes of $(137), $(269) and $(778)(a)(489)(1,119)(2,873)AOCI(882)(1,127)(4,747)Less AOCI attributable to noncontrolling interests - (7)(2)Benefit plans AOCI$(217)$665 $1,786 Beginning balance$(1,985)$(959)$(1,927)AOCI before reclasses - net of taxes of $192 , $(271) and $248763 (1,017)1,046 Reclasses from AOCI - net of taxes of $7, $4 and $(7)(14)1 (78)AOCI749 (1,016)968 Less AOCI attributable to noncontrolling interests - 12 - Investment securities and cash flow hedges AOCI $(1,236)$(1,985)$(959)Beginning balance$(1,070)$(3,354)$(983)AOCI before reclasses - net of taxes of $(202), $607 and $(630)(761)2,284 (2,371)AOCI(761)2,284 (2,371)Long-duration insurance contracts AOCI$(1,831)$(1,070)$(3,354)AOCI at December 31$(4,798)$(3,861)$(6,150)Dividends declared per common share$1.44 $1.12 $0.32 --- ## Modified Risk: (a)1. Financial Statements **Key changes:** - Updated: "Included in the "Financial Statements and Supplementary Data" section of this report: Management's Annual Report on Internal Control Over Financial Reporting Reports of Independent Registered Public Accounting Firm Statement of Operations for the years ended December 31, 2025, 2024 and 2023 Statement of Financial Position at December 31, 2025 and 2024 Statement of Cash Flows for the years ended December 31, 2025, 2024 and 2023 Statement of Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023 Statement of Changes in Shareholders' Equity for the years ended December 31, 2025, 2024 and 2023 Notes to consolidated financial statements Management's Discussion and Analysis of Financial Condition and Results of Operations - Summary of Operating Segments" **Prior (2025):** Included in the "Financial Statements and Supplementary Data" section of this report: Management's Annual Report on Internal Control Over Financial Reporting Reports of Independent Registered Public Accounting Firm Statement of Earnings (Loss) for the years ended December 31, 2024, 2023 and 2022 Statement of Financial Position at December 31, 2024 and 2023 Statement of Cash Flows for the years ended December 31, 2024, 2023 and 2022 Statement of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and 2022 Statement of Changes in Shareholders' Equity for the years ended December 31, 2024, 2023 and 2022 Notes to consolidated financial statements Management's Discussion and Analysis of Financial Condition and Results of Operations - Summary of Operating Segments **Current (2026):** Included in the "Financial Statements and Supplementary Data" section of this report: Management's Annual Report on Internal Control Over Financial Reporting Reports of Independent Registered Public Accounting Firm Statement of Operations for the years ended December 31, 2025, 2024 and 2023 Statement of Financial Position at December 31, 2025 and 2024 Statement of Cash Flows for the years ended December 31, 2025, 2024 and 2023 Statement of Comprehensive Income (Loss) for the years ended December 31, 2025, 2024 and 2023 Statement of Changes in Shareholders' Equity for the years ended December 31, 2025, 2024 and 2023 Notes to consolidated financial statements Management's Discussion and Analysis of Financial Condition and Results of Operations - Summary of Operating Segments --- ## Modified Risk: Total liabilities and equity **Key changes:** - Updated: "2025 FORM 10-K 37 2025 FORM 10-K 37 2025 FORM 10-K 37 STATEMENT OF CASH FLOWSFor the years ended December 31 (In millions)202520242023Net income (loss)$8,698 $6,566 $9,445 Net (income) loss from discontinued operations activities(103)91 3 Adjustments to reconcile net income (loss) to cash from (used for) operating activities:Depreciation and amortization of property, plant and equipment (Note 6)863 834 797 Amortization of intangible assets (Note 7)357 350 382 Goodwill impairments (Note 7) - 251 - (Gains) losses on equity securities (Note 19)(508)(719)(5,846)Principal pension plans (benefit) cost (Note 13)(655)(653)(755)Principal pension plans employer contributions(211)(210)(184)Other postretirement benefit plans (net)(230)(299)(348)Provision (benefit) for income taxes (Note 15)1,405 962 994 Cash recovered (paid) during the year for income taxes (Note 15)(739)(334)(1,041)Changes in operating working capital:Decrease (increase) in current receivables(2,437)(1,076)(210)Decrease (increase) in inventories, including deferred inventory costs(1,981)(1,528)(1,321)Decrease (increase) in current contract assets(511)(112)(27)Increase (decrease) in contract liabilities and current deferred income1,066 1,066 1,226 Increase (decrease) in progress collections 838 531 242 Increase (decrease) in accounts payable 1,993 688 713 Increase (decrease) in sales discounts and allowances (Note 14)562 (266)(203)All other operating activities136 (326)743 Cash from (used for) operating activities - continuing operations8,543 5,817 4,609 Cash from (used for) operating activities - discontinued operations(6)(1,107)580 Cash from (used for) operating activities8,537 4,710 5,189 Additions to property, plant and equipment and internal-use software(1,273)(1,032)(862)Dispositions of property, plant and equipment123 114 60 Proceeds from principal business dispositions - 499 - Net cash from (payments for) principal businesses purchased(360)(135)(41)Sales of retained ownership interests - 5,250 9,004 Net (purchases) dispositions of insurance investment securities (Note 3)425 (963)(986)All other investing activities309 (4,289)519 Cash from (used for) investing activities - continuing operations(776)(556)7,693 Cash from (used for) investing activities - discontinued operations(377)(1,110)(3,726)Cash from (used for) investing activities(1,153)(1,666)3,967 Net increase (decrease) in borrowings (maturities of 90 days or less)25 2 (71)Newly issued debt (maturities longer than 90 days)1,985 - - Repayments and other debt reductions (maturities longer than 90 days)(1,811)(788)(3,282)Dividends paid to shareholders(1,452)(1,008)(589)Redemption of preferred stock - - (5,795)Purchases of common stock for treasury(7,551)(5,827)(1,233)All other financing activities120 992 459 Cash from (used for) financing activities - continuing operations(8,682)(6,628)(10,511)Cash from (used for) financing activities - discontinued operations - (98)1,899 Cash from (used for) financing activities(8,682)(6,726)(8,613)Effect of currency exchange rate changes on cash, cash equivalents and restricted cash201 (193)120 Increase (decrease) in cash, cash equivalents and restricted cash(1,097)(3,875)664 Cash, cash equivalents and restricted cash at beginning of year15,880 19,755 19,092 Cash, cash equivalents and restricted cash at December 3114,782 15,880 19,755 Less cash, cash equivalents and restricted cash of discontinued operations at December 31(1,126)(1,327)(3,762)Cash, cash equivalents and restricted cash of continuing operations at December 31$13,657 $14,553 $15,993 Supplemental disclosure of cash flows informationCash paid during the year for interest$(882)$(969)$(1,067) Increase (decrease) in accounts payable Additions to property, plant and equipment and internal-use software Cash, cash equivalents and restricted cash at December 31 Less cash, cash equivalents and restricted cash of discontinued operations at December 31 Cash, cash equivalents and restricted cash of continuing operations at December 31 38 2025 FORM 10-K 38 2025 FORM 10-K 38 2025 FORM 10-K STATEMENT OF COMPREHENSIVE INCOME (LOSS)For the years ended December 31 (In millions)202520242023Net income (loss)$8,698 $6,566 $9,445 Less: net income (loss) attributable to noncontrolling interests(6)11 (37)Net income (loss) attributable to the Company$8,704 $6,556 $9,482 Currency translation adjustments(43)2,131 2,274 Benefit plans(882)(1,128)(4,747)Investment securities and cash flow hedges749 (1,016)968 Long-duration insurance contracts(761)2,284 (2,371)L Less: other comprehensive income (loss) attributable to noncontrolling interests - (17)2 Other comprehensive income (loss) attributable to the Company$(937)$2,289 $(3,878)Comprehensive income (loss)$7,761 $8,838 $5,569 Less: comprehensive income (loss) attributable to noncontrolling interests(6)(7)(35)Comprehensive income (loss) attributable to the Company$7,767 $8,845 $5,604" **Prior (2025):** 2024 FORM 10-K 39 2024 FORM 10-K 39 2024 FORM 10-K 39 STATEMENT OF CASH FLOWSFor the years ended December 31 (In millions)202420232022Net earnings (loss)$6,566 $9,445 $403 (Earnings) loss from discontinued operations activities91 3 949 Adjustments to reconcile net earnings (loss) to cash from (used for) operating activities:Depreciation and amortization of property, plant and equipment834 797 846 Amortization of intangible assets (Note 7)350 382 338 Goodwill impairments (Note 7)251 - - (Gains) losses on equity securities (Note 19)(719)(5,846)56 Debt extinguishment costs - - 465 Principal pension plans (benefit) cost (Note 13)(653)(755)305 Principal pension plans employer contributions(210)(184)(173)Other postretirement benefit plans (net)(299)(348)(332)Provision (benefit) for income taxes (Note 15)962 994 169 Cash recovered (paid) during the year for income taxes(334)(1,041)(547)Changes in operating working capital:Decrease (increase) in current receivables(1,076)(210)(1,875)Decrease (increase) in inventories, including deferred inventory costs(1,528)(1,321)(980)Decrease (increase) in current contract assets(112)(27)36 Increase (decrease) in contract liabilities and current deferred income1,066 1,226 1,075 Increase (decrease) in progress collections 531 242 1,187 Increase (decrease) in accounts payable 688 713 1,639 Increase (decrease) in sales discounts and allowances(266)(203)47 All other operating activities(326)743 418 Cash from (used for) operating activities - continuing operations5,817 4,609 4,027 Cash from (used for) operating activities - discontinued operations(1,107)580 1,889 Cash from (used for) operating activities4,710 5,189 5,917 Additions to property, plant and equipment and internal-use software(1,032)(862)(662)Dispositions of property, plant and equipment114 60 153 Proceeds from principal business dispositions499 - 15 Net cash from (payments for) principal businesses purchased(135)(41)(30)Sales of retained ownership interests5,250 9,004 4,717 Net (purchases) dispositions of insurance investment securities(963)(986)(876)All other investing activities(4,289)519 7,053 Cash from (used for) investing activities - continuing operations(556)7,693 10,369 Cash from (used for) investing activities - discontinued operations(1,110)(3,726)(8,099)Cash from (used for) investing activities(1,666)3,967 2,270 Net increase (decrease) in borrowings (maturities of 90 days or less)2 (71)42 Newly issued debt (maturities longer than 90 days) - - - Repayments and other debt reductions (maturities longer than 90 days)(788)(3,282)(11,088)Dividends paid to shareholders(1,008)(589)(639)Cash received (paid) for debt extinguishment costs - - 338 Redemption of preferred stock - (5,795)(144)Purchases of common stock for treasury(5,827)(1,233)(1,048)All other financing activities992 459 (1,000)Cash from (used for) financing activities - continuing operations(6,628)(10,511)(13,540)Cash from (used for) financing activities - discontinued operations(98)1,899 7,955 Cash from (used for) financing activities(6,726)(8,613)(5,585)Effect of currency exchange rate changes on cash, cash equivalents and restricted cash(193)120 (369)Increase (decrease) in cash, cash equivalents and restricted cash(3,875)664 2,232 Cash, cash equivalents and restricted cash at beginning of year19,755 19,092 16,859 Cash, cash equivalents and restricted cash at December 3115,880 19,755 19,092 Less cash, cash equivalents and restricted cash of discontinued operations at December 31(1,327)(3,762)(4,868)Cash, cash equivalents and restricted cash of continuing operations at December 31$14,553 $15,993 $14,223 Supplemental disclosure of cash flows informationCash paid during the year for interest$(969)$(1,067)$(1,561) Increase (decrease) in accounts payable Additions to property, plant and equipment and internal-use software Cash, cash equivalents and restricted cash at December 31 Less cash, cash equivalents and restricted cash of discontinued operations at December 31 Cash, cash equivalents and restricted cash of continuing operations at December 31 40 2024 FORM 10-K 40 2024 FORM 10-K 40 2024 FORM 10-K STATEMENT OF COMPREHENSIVE INCOME (LOSS)For the years ended December 31 (In millions)202420232022Net earnings (loss)$6,566 $9,445 $403 Less: net earnings (loss) attributable to noncontrolling interests11 (37)67 Net earnings (loss) attributable to the Company$6,556 $9,482 $336 Currency translation adjustments2,131 2,274 (1,326)Benefit plans(1,128)(4,747)2,889 Investment securities and cash flow hedges(1,016)968 (7,099)Long-duration insurance contracts2,284 (2,371)8,126 Less: other comprehensive income (loss) attributable to noncontrolling interests(17)2 1 Other comprehensive income (loss) attributable to the Company$2,289 $(3,878)$2,589 Comprehensive income (loss)$8,838 $5,569 $2,993 Less: comprehensive income (loss) attributable to noncontrolling interests(7)(35)68 Comprehensive income (loss) attributable to the Company$8,845 $5,604 $2,925 Currency translation adjustments Benefit plans Investment securities and cash flow hedges Less: other comprehensive income (loss) attributable to noncontrolling interests Less: comprehensive income (loss) attributable to noncontrolling interests STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITYFor the years ended December 31 (In millions)202420232022Preferred stock issued$ - $ - $6 Common stock issued$15 $15 $15 Beginning balance(6,150)(2,272)(4,860)Currency translation adjustments2,151 2,270 (1,324)Benefit plans(1,120)(4,745)2,886 Investment securities and cash flow hedges(1,026)968 (7,099)Long-duration insurance contracts2,284 (2,371)8,126 Accumulated other comprehensive income (loss)$(3,861)$(6,150)$(2,272)Beginning balance26,962 34,173 34,691 Gains (losses) on treasury stock dispositions(3,028)(1,845)(741)Stock-based compensation361 355 362 Other changes(a)(29)(5,721)(139)Other capital$24,266 $26,962 $34,173 Beginning balance86,553 83,001 83,229 Net earnings (loss) attributable to the Company6,556 9,482 336 Dividends and other transactions with shareholders(b)(12,599)(5,937)(642)Other(21)6 77 Retained earnings$80,488 $86,553 $83,001 Beginning balance(79,976)(81,209)(81,093)Purchases(5,826)(1,244)(1,048)Dispositions4,236 2,477 931 Common stock held in treasury$(81,566)$(79,976)$(81,209)GE Aerospace shareholders' equity balance19,342 27,403 33,714 Noncontrolling interests balance(c)223 1,202 1,216 Total equity balance at December 31$19,564 $28,605 $34,930 Investment securities and cash flow hedges GE Aerospace shareholders' equity balance **Current (2026):** 2025 FORM 10-K 37 2025 FORM 10-K 37 2025 FORM 10-K 37 STATEMENT OF CASH FLOWSFor the years ended December 31 (In millions)202520242023Net income (loss)$8,698 $6,566 $9,445 Net (income) loss from discontinued operations activities(103)91 3 Adjustments to reconcile net income (loss) to cash from (used for) operating activities:Depreciation and amortization of property, plant and equipment (Note 6)863 834 797 Amortization of intangible assets (Note 7)357 350 382 Goodwill impairments (Note 7) - 251 - (Gains) losses on equity securities (Note 19)(508)(719)(5,846)Principal pension plans (benefit) cost (Note 13)(655)(653)(755)Principal pension plans employer contributions(211)(210)(184)Other postretirement benefit plans (net)(230)(299)(348)Provision (benefit) for income taxes (Note 15)1,405 962 994 Cash recovered (paid) during the year for income taxes (Note 15)(739)(334)(1,041)Changes in operating working capital:Decrease (increase) in current receivables(2,437)(1,076)(210)Decrease (increase) in inventories, including deferred inventory costs(1,981)(1,528)(1,321)Decrease (increase) in current contract assets(511)(112)(27)Increase (decrease) in contract liabilities and current deferred income1,066 1,066 1,226 Increase (decrease) in progress collections 838 531 242 Increase (decrease) in accounts payable 1,993 688 713 Increase (decrease) in sales discounts and allowances (Note 14)562 (266)(203)All other operating activities136 (326)743 Cash from (used for) operating activities - continuing operations8,543 5,817 4,609 Cash from (used for) operating activities - discontinued operations(6)(1,107)580 Cash from (used for) operating activities8,537 4,710 5,189 Additions to property, plant and equipment and internal-use software(1,273)(1,032)(862)Dispositions of property, plant and equipment123 114 60 Proceeds from principal business dispositions - 499 - Net cash from (payments for) principal businesses purchased(360)(135)(41)Sales of retained ownership interests - 5,250 9,004 Net (purchases) dispositions of insurance investment securities (Note 3)425 (963)(986)All other investing activities309 (4,289)519 Cash from (used for) investing activities - continuing operations(776)(556)7,693 Cash from (used for) investing activities - discontinued operations(377)(1,110)(3,726)Cash from (used for) investing activities(1,153)(1,666)3,967 Net increase (decrease) in borrowings (maturities of 90 days or less)25 2 (71)Newly issued debt (maturities longer than 90 days)1,985 - - Repayments and other debt reductions (maturities longer than 90 days)(1,811)(788)(3,282)Dividends paid to shareholders(1,452)(1,008)(589)Redemption of preferred stock - - (5,795)Purchases of common stock for treasury(7,551)(5,827)(1,233)All other financing activities120 992 459 Cash from (used for) financing activities - continuing operations(8,682)(6,628)(10,511)Cash from (used for) financing activities - discontinued operations - (98)1,899 Cash from (used for) financing activities(8,682)(6,726)(8,613)Effect of currency exchange rate changes on cash, cash equivalents and restricted cash201 (193)120 Increase (decrease) in cash, cash equivalents and restricted cash(1,097)(3,875)664 Cash, cash equivalents and restricted cash at beginning of year15,880 19,755 19,092 Cash, cash equivalents and restricted cash at December 3114,782 15,880 19,755 Less cash, cash equivalents and restricted cash of discontinued operations at December 31(1,126)(1,327)(3,762)Cash, cash equivalents and restricted cash of continuing operations at December 31$13,657 $14,553 $15,993 Supplemental disclosure of cash flows informationCash paid during the year for interest$(882)$(969)$(1,067) Increase (decrease) in accounts payable Additions to property, plant and equipment and internal-use software Cash, cash equivalents and restricted cash at December 31 Less cash, cash equivalents and restricted cash of discontinued operations at December 31 Cash, cash equivalents and restricted cash of continuing operations at December 31 38 2025 FORM 10-K 38 2025 FORM 10-K 38 2025 FORM 10-K STATEMENT OF COMPREHENSIVE INCOME (LOSS)For the years ended December 31 (In millions)202520242023Net income (loss)$8,698 $6,566 $9,445 Less: net income (loss) attributable to noncontrolling interests(6)11 (37)Net income (loss) attributable to the Company$8,704 $6,556 $9,482 Currency translation adjustments(43)2,131 2,274 Benefit plans(882)(1,128)(4,747)Investment securities and cash flow hedges749 (1,016)968 Long-duration insurance contracts(761)2,284 (2,371)L Less: other comprehensive income (loss) attributable to noncontrolling interests - (17)2 Other comprehensive income (loss) attributable to the Company$(937)$2,289 $(3,878)Comprehensive income (loss)$7,761 $8,838 $5,569 Less: comprehensive income (loss) attributable to noncontrolling interests(6)(7)(35)Comprehensive income (loss) attributable to the Company$7,767 $8,845 $5,604 --- ## Modified Risk: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on DerivativesAmount of Gain (Loss) Reclassified from AOCI into Net Income2025202420252024Cash flow hedges(a)$133 $(64)$45 $16 Net investment hedges(798)348 - - **Key changes:** - Updated: "(a) Consist of currency exchange contracts and cross-currency interest rate swaps, primarily recognized in Costs of equipment or services sold in our Statement of Operations." - Updated: "The cumulative net gains related to hedging adjustments of $969 million and $1,037 million on discontinued hedges were included primarily in long-term borrowings of $8,286 million and $8,387 million as of December 31, 2025 and December 31, 2024, respectively, and will continue to amortize into interest expense until the borrowings mature." - Updated: "Our exposures to counterparties (including accrued interest) were $187 million and $188 million at December 31, 2025 and December 31, 2024, respectively." - Updated: "In our Statement of Financial Position, we have assets of $170 million and $141 million and liabilities of $144 million and $131 million at December 31, 2025 and December 31, 2024, respectively, in consolidated Variable Interest Entities (VIEs)." - Updated: "In our Statement of Financial Position, we have assets of $170 million and $141 million and liabilities of $144 million and $131 million at December 31, 2025 and December 31, 2024, respectively, in consolidated Variable Interest Entities (VIEs)." **Prior (2025):** (a) Primarily currency exchange contracts, and recognized in Costs of equipment or services sold in the Statement of Earnings (Loss). We expect to reclassify a $30 million loss from AOCI to earnings in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. (b) The carrying value of foreign currency debt designated as net investment hedges was $5,199 million and $4,726 million at December 31, 2024 and 2023, respectively. FAIR VALUE HEDGES. We used fair value hedges to hedge the effects of interest rate and currency changes on debt we issued. All fair value hedges were terminated in 2022 due to exposure management actions. The cumulative net gains related to hedging adjustments of $1,037 million and $1,162 million on discontinued hedges were included primarily in long-term borrowings of $8,387 and $9,253 million as of December 31, 2024 and 2023, respectively, and will continue to amortize into interest expense until the borrowings mature. long-term borrowings long-term borrowings COUNTERPARTY CREDIT RISK. Our exposures to counterparties (including accrued interest) was $188 and $241 million at December 31, 2024 and 2023, respectively. Counterparties' exposures to our derivative liability (including accrued interest), was $77 million and $53 million at December 31, 2024 and 2023, respectively. NOTE 23. VARIABLE INTEREST ENTITIES. In our Statement of Financial Position, we have assets of $141 million and $115 million and liabilities of $131 million and $140 million at December 31, 2024 and December 31, 2023, respectively, in consolidated Variable Interest Entities (VIEs). These VIEs are primarily associated with a legacy business in Corporate & Other and have no features that could expose us to losses that would significantly exceed the difference between the consolidated assets and liabilities. In our Statement of Financial Position, we have assets of $141 million and $115 million and liabilities of $131 million and $140 million at December 31, 2024 and December 31, 2023, respectively, in consolidated Variable Interest Entities (VIEs). These VIEs are primarily associated with a legacy business in Corporate & Other and have no features that could expose us to losses that would significantly exceed the difference between the consolidated assets and liabilities. 2024 FORM 10-K 71 2024 FORM 10-K 71 2024 FORM 10-K 71 Our investments in unconsolidated VIEs were $8,131 million and $6,577 million at December 31, 2024 and December 31, 2023, respectively. Of these investments, $1,280 million and $1,205 million were owned for U.S. tax equity, comprising equity method investments primarily related to onshore renewable energy projects, at December 31, 2024 and December 31, 2023, respectively. In addition, $6,665 million and $5,151 million were owned by our run-off insurance operations, primarily comprised of equity method investments at December 31, 2024 and December 31, 2023, respectively. The increase in investments in unconsolidated VIEs in our run-off insurance operations reflects strategic initiatives to invest in higher-yielding asset classes. Our maximum exposure to loss in respect of unconsolidated VIEs is increased by our commitments to make additional investments in these entities described in Note 24. **Current (2026):** (a) Consist of currency exchange contracts and cross-currency interest rate swaps, primarily recognized in Costs of equipment or services sold in our Statement of Operations. FAIR VALUE HEDGES. We used fair value hedges to hedge the effects of interest rate and currency changes on debt we issued. All fair value hedges were terminated in 2022 due to exposure management actions. The cumulative net gains related to hedging adjustments of $969 million and $1,037 million on discontinued hedges were included primarily in long-term borrowings of $8,286 million and $8,387 million as of December 31, 2025 and December 31, 2024, respectively, and will continue to amortize into interest expense until the borrowings mature. long-term borrowings long-term borrowings COUNTERPARTY CREDIT RISK. Our exposures to counterparties (including accrued interest) were $187 million and $188 million at December 31, 2025 and December 31, 2024, respectively. Counterparties' exposures to our derivative liability (including accrued interest), were $71 million and $77 million at December 31, 2025 and December 31, 2024, respectively. NOTE 23. VARIABLE INTEREST ENTITIES. In our Statement of Financial Position, we have assets of $170 million and $141 million and liabilities of $144 million and $131 million at December 31, 2025 and December 31, 2024, respectively, in consolidated Variable Interest Entities (VIEs). These VIEs are primarily associated with a legacy business in Corporate & Other and have no features that could expose us to losses that would significantly exceed the difference between the consolidated assets and liabilities. In our Statement of Financial Position, we have assets of $170 million and $141 million and liabilities of $144 million and $131 million at December 31, 2025 and December 31, 2024, respectively, in consolidated Variable Interest Entities (VIEs). These VIEs are primarily associated with a legacy business in Corporate & Other and have no features that could expose us to losses that would significantly exceed the difference between the consolidated assets and liabilities. Our investments in unconsolidated VIEs were $8,976 million and $8,131 million at December 31, 2025 and December 31, 2024, respectively. Of these investments, $1,114 million and $1,280 million were in our U.S. tax equity portfolio, comprising equity method investments related to onshore renewable energy projects, at December 31, 2025 and December 31, 2024, respectively. In addition, $7,660 million and $6,665 million were in our run-off insurance operations, primarily comprised of equity method investments at December 31, 2025 and December 31, 2024, respectively. The increase in investments in unconsolidated VIEs in our run-off insurance operations reflects strategic initiatives to invest in higher-yielding asset classes. Our maximum exposure to loss with respect to unconsolidated VIEs is increased by our commitments to make additional investments in these entities described in Note 24. --- ## Modified Risk: For the year ended December 31, 2024 **Key changes:** - Updated: "For the year ended December 31, 2023GE VernovaBank BPH & OtherTotalTotal revenue$33,265 $ - $33,265 Cost of equipment and services sold(28,205) - (28,205)Other income, costs and expenses(5,306)(1,301)(6,607)Net Income (loss) of discontinued operations before income taxes(246)(1,301)(1,547)Benefit (provision) for income taxes(a)(171)1,710 1,539 Net Income (loss) of discontinued operations, net of taxes(417)409 (8)Gain (loss) on disposal before income taxes - 6 6 Benefit (provision) for income taxes - - - Gain (loss) on disposal, net of taxes - 6 6 Net Income (loss) from discontinued operations, net of taxes$(417)$414 $(3)" **Prior (2025):** GE Vernova For the year ended December 31, 2023GE VernovaGE HealthCareBank BPH & OtherTotalTotal revenue$33,265 $ - $ - $33,265 Cost of equipment and services sold(28,205) - - (28,205)Other income, costs and expenses(5,306)(50)(1,252)(6,607)Earnings (loss) of discontinued operations before income taxes(246)(50)(1,252)(1,547)Benefit (provision) for income taxes(171)1,706 4 1,539 Earnings (loss) of discontinued operations, net of taxes(417)1,656 (1,248)(8)Gain (loss) on disposal before income taxes - - 6 6 Benefit (provision) for income taxes - - - - Gain (loss) on disposal, net of taxes - - 6 6 Earnings (loss) from discontinued operations, net of taxes$(417)$1,656 $(1,242)$(3) **Current (2026):** For the year ended December 31, 2023GE VernovaBank BPH & OtherTotalTotal revenue$33,265 $ - $33,265 Cost of equipment and services sold(28,205) - (28,205)Other income, costs and expenses(5,306)(1,301)(6,607)Net Income (loss) of discontinued operations before income taxes(246)(1,301)(1,547)Benefit (provision) for income taxes(a)(171)1,710 1,539 Net Income (loss) of discontinued operations, net of taxes(417)409 (8)Gain (loss) on disposal before income taxes - 6 6 Benefit (provision) for income taxes - - - Gain (loss) on disposal, net of taxes - 6 6 Net Income (loss) from discontinued operations, net of taxes$(417)$414 $(3) --- ## Modified Risk: Accounts payable **Key changes:** - Added: "(a) Revenue sharing and other partner payables are primarily amounts due to revenue sharing and joint venture partners who participate in engine programs by developing and supplying certain engine components through the life of the program or other partners who support our production or aftermarket activities." - Added: "The revenue sharing partners share in program revenue, receive a share of customer progress payments and share costs related to discounts and warranties." - Updated: "Total supplier invoices paid through these third-party programs were $3,918 million and $3,798 million for the years ended December 31, 2025 and 2024, respectively." - Updated: "Insurance liabilities and annuity benefits are comprised of obligations to annuitants and insureds in our run-off insurance operations." - Updated: "Insurance liabilities and annuity benefits are comprised of obligations to annuitants and insureds in our run-off insurance operations." **Prior (2025):** We facilitate voluntary supply chain finance programs with third parties, which provide participating suppliers the opportunity to sell their GE Aerospace receivables to third parties at the sole discretion of both the suppliers and the third parties. Total supplier invoices paid through these third-party programs were $3,798 million and $3,110 million for the years ended December 31, 2024 and 2023, respectively. GE Aerospace has no costs associated with this program. NOTE 12. INSURANCE LIABILITIES AND ANNUITY BENEFITS. Insurance liabilities and annuity benefits comprise substantially all obligations to annuitants and insureds in our run-off insurance operations. Our insurance operations (net of eliminations) generated revenue of $3,581 million, $3,389 million and $2,957 million, profit was $1,022 million, $332 million and $205 million and net earnings was $806 million, $260 million and $159 million, for the years ended December 31, 2024, 2023 and 2022, respectively. These operations were primarily supported by investment securities of $37,352 million and $37,592 million, limited partnerships of $4,321 million and $3,300 million, a diversified commercial mortgage loan portfolio substantially all collateralized by first liens on U.S. commercial real estate properties of $1,887 million and $1,947 million (net of allowance for credit losses of $46 million and $48 million), and residential mortgage loans of $251 million and $0 million (net of allowance for credit losses of an insignificant amount), as of December 31, 2024 and 2023, respectively. As of December 31, 2024, the commercial mortgage loan portfolio had one delinquent loan, no non-accrual loans and about one-third of the portfolio was held in the office sector, which had a weighted average loan-to-value ratio of 69%, debt service coverage of 1.7, and no scheduled maturities through 2025. A summary of our insurance liabilities and annuity benefits is presented below. Insurance liabilities and annuity benefits comprise substantially all obligations to annuitants and insureds in our run-off insurance operations. Our insurance operations (net of eliminations) generated revenue of $3,581 million, $3,389 million and $2,957 million, profit was $1,022 million, $332 million and $205 million and net earnings was $806 million, $260 million and $159 million, for the years ended December 31, 2024, 2023 and 2022, respectively. These operations were primarily supported by investment securities of $37,352 million and $37,592 million, limited partnerships of $4,321 million and $3,300 million, a diversified commercial mortgage loan portfolio substantially all collateralized by first liens on U.S. commercial real estate properties of $1,887 million and $1,947 million (net of allowance for credit losses of $46 million and $48 million), and residential mortgage loans of $251 million and $0 million (net of allowance for credit losses of an insignificant amount), as of December 31, 2024 and 2023, respectively. As of December 31, 2024, the commercial mortgage loan portfolio had one delinquent loan, no non-accrual loans and about one-third of the portfolio was held in the office sector, which had a weighted average loan-to-value ratio of 69%, debt service coverage of 1.7, and no scheduled maturities through 2025. A summary of our insurance liabilities and annuity benefits is presented below. 2024 FORM 10-K 55 2024 FORM 10-K 55 2024 FORM 10-K 55 December 31, 2024Long-term careStructured settlement annuitiesLifeOther contractsTotalFuture policy benefit reserves$24,675 $8,426 $1,018 $357 $34,476 Investment contracts - 719 - 621 1,340 Other - - 116 277 394 Total$24,675 $9,145 $1,134 $1,254 $36,209 **Current (2026):** (a) Revenue sharing and other partner payables are primarily amounts due to revenue sharing and joint venture partners who participate in engine programs by developing and supplying certain engine components through the life of the program or other partners who support our production or aftermarket activities. The revenue sharing partners share in program revenue, receive a share of customer progress payments and share costs related to discounts and warranties. We facilitate voluntary supply chain finance programs with third parties, which provide participating suppliers the opportunity to sell their GE Aerospace receivables to third parties at the sole discretion of both the suppliers and the third parties. Total supplier invoices paid through these third-party programs were $3,918 million and $3,798 million for the years ended December 31, 2025 and 2024, respectively. GE Aerospace has no costs associated with this program. NOTE 12. INSURANCE LIABILITIES AND ANNUITY BENEFITS. Insurance liabilities and annuity benefits are comprised of obligations to annuitants and insureds in our run-off insurance operations. Our insurance operations (net of eliminations) generated revenue of $3,533 million, $3,581 million and $3,389 million, profit was $992 million, $1,022 million and $332 million and net income was $877 million, $806 million and $260 million for the years ended December 31, 2025, 2024 and 2023, respectively. These operations were primarily supported by investment securities, substantially all debt securities, of $37,842 million and $37,352 million, limited partnerships of $5,089 million and $4,321 million, a diversified commercial mortgage loan portfolio collateralized by first liens on U.S. commercial real estate properties of $1,802 million and $1,887 million (net of allowance for credit losses of $19 million and $46 million) and residential mortgage loans of $395 million and $251 million (net of allowance for credit losses of an insignificant amount), as of December 31, 2025 and December 31, 2024, respectively. As of December 31, 2025, the commercial mortgage loan portfolio had no delinquent or non-accrual loans and about one-fourth of the portfolio was held in the office sector, which had a weighted average loan-to-value ratio of 59%, debt service coverage of 1.6, and an insignificant amount of scheduled maturities through 2026. A summary of our insurance liabilities and annuity benefits is presented below. Insurance liabilities and annuity benefits are comprised of obligations to annuitants and insureds in our run-off insurance operations. Our insurance operations (net of eliminations) generated revenue of $3,533 million, $3,581 million and $3,389 million, profit was $992 million, $1,022 million and $332 million and net income was $877 million, $806 million and $260 million for the years ended December 31, 2025, 2024 and 2023, respectively. T hese operations were primarily supported by investment securities, substantially all debt securities, of $37,842 million and $37,352 million, limited partnerships of $5,089 million and $4,321 million, a diversified commercial mortgage loan portfolio collateralized by first liens on U.S. commercial real estate properties of $1,802 million and $1,887 million (net of allowance for credit losses of $19 million and $46 million) and residential mortgage loans of $395 million and $251 million (net of allowance for credit losses of an insignificant amount), as of December 31, 2025 and December 31, 2024, respectively. As of December 31, 2025, the commercial mortgage loan portfolio had no delinquent or non-accrual loans and about one-fourth of the portfolio was held in the office sector, which had a weighted average loan-to-value ratio of 59%, debt service coverage of 1.6, and an insignificant amount of scheduled maturities through 2026. A summary of our insurance liabilities and annuity benefits is presented below. 52 2025 FORM 10-K 52 2025 FORM 10-K 52 2025 FORM 10-K December 31, 2025Long-term careStructured settlement annuitiesLifeOther contractsTotalFuture policy benefit reserves$25,792 $8,383 $906 $357 $35,438 Investment contracts - 647 - 493 1,140 Other - - 113 203 316 Total$25,792 $9,031 $1,019 $1,053 $36,894 --- ## Modified Risk: Total liabilities **Key changes:** - Updated: "Common stock (1,048,766,702 and 1,073,692,183 shares outstanding at December 31, 2025 and December 31, 2024, respectively) (Note 16) Other capital Retained earnings Less common stock held in treasury" **Prior (2025):** Common stock (1,073,692,183 and 1,088,415,995 shares outstanding at December 31, 2024 and 2023, respectively) (Note 16) Other capital Retained earnings Less common stock held in treasury **Current (2026):** Common stock (1,048,766,702 and 1,073,692,183 shares outstanding at December 31, 2025 and December 31, 2024, respectively) (Note 16) Other capital Retained earnings Less common stock held in treasury --- ## Modified Risk: Balance atDecember 31 **Key changes:** - Updated: "(a)Primarily included net unrealized gains (losses) of $5 million and $(29) million in Other comprehensive income for the years ended December 31, 2025 and 2024, respectively." - Updated: "(c)Included $(1,080) million of Mortgage and asset-backed debt securities and $(600) million of U.S." - Updated: "2025 FORM 10-K 67 2025 FORM 10-K 67 2025 FORM 10-K 67 The majority of these Level 3 securities are fair valued using non-binding broker quotes or other third-party sources that utilize a number of different unobservable inputs not subject to meaningful aggregation." - Updated: "Substantially all of these assets are considered Level 3 and substantially all these liabilities' fair value are considered Level 2." - Updated: "Substantially all of these assets are considered Level 3 and substantially all these liabilities' fair value are considered Level 2." **Prior (2025):** (a)Primarily included net unrealized gains (losses) of $(29) million and $134 million in Other comprehensive income for the years ended December 31, 2024 and 2023, respectively. (b)Included $491 million of U.S. corporate debt securities and $600 million of Mortgage and asset-backed debt securities for the year ended December 31, 2024. Included $379 million of U.S. corporate debt securities and $177 million of Mortgage and asset-backed debt securities for the year ended December 31, 2023. (c)Transfers out of Level 3 during the year ended December 31, 2024, related to increases in the observability of external information used in determining fair value. These transfers were in our run-off insurance operations and primarily included certain investments in private placement U.S. and non-U.S. corporate debt securities. The majority of these Level 3 securities are fair valued using non-binding broker quotes or other third-party sources that utilize a number of different unobservable inputs not subject to meaningful aggregation. NOTE 22. FINANCIAL INSTRUMENTS. The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and the vast majority of our liabilities' fair value are considered Level 2. The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered to be Level 3 and the vast majority of our liabilities' fair value are considered Level 2. December 31, 2024December 31, 2023Carryingamount(net)Estimatedfair valueCarryingamount(net)Estimatedfair valueAssetsLoans and other receivables$2,261 $1,981 $2,110 $2,055 LiabilitiesBorrowings (Note 10)19,273 18,805 20,525 20,218 Investment contracts(a)1,375 1,432 1,535 1,616 (a) Primarily related to our run-off insurance operations. See Note 12 for further information. Assets and liabilities that are reflected in the accompanying financial statements at fair value are not included in the above disclosures; such items include cash and cash equivalents, investment securities (Note 3) and derivative financial instruments below. DERIVATIVES AND HEDGING. Our policy requires that derivatives are used solely for managing risks and not for speculative purposes. We use derivatives to manage risks related to foreign currency exchange (including foreign equity investments), interest rates and commodity prices. 70 2024 FORM 10-K 70 2024 FORM 10-K 70 2024 FORM 10-K We use currency exchange contracts (including cross-currency swaps) for net investment hedges to hedge investments in our foreign operations, or for cash flow hedges primarily to reduce or eliminate the effects of foreign exchange rate changes. Gains and losses on derivatives used in qualified hedges are initially recognized in our Statement of Other Comprehensive Income (Loss) except for interest on cross-currency swaps. For cross-currency swaps, we recognize the periodic interest settlements within Interest and other financial charges in the Statement of Earnings (Loss), and the cash flows associated with these periodic interest settlements are classified as operating activities in the Statement of Cash Flows. Settlements from termination of all qualified hedges are classified in the Statement of Cash Flows following the nature of the hedged items (e.g., investing activities for derivatives used to hedge investments in our foreign operations). We also use derivatives for economic hedges when we have exposures to currency exchange risk for which we are unable to meet the requirements for hedge accounting or when changes in the carrying amount of the hedged item are already recorded in earnings in the same period as the derivative making hedge accounting unnecessary. Even though the derivative is an effective economic hedge, there may be a net effect on earnings in each period due to differences in the timing of earnings recognition between the derivative and the hedged item. FAIR VALUE OF DERIVATIVESDecember 31, 2024December 31, 2023Gross NotionalAll other current assetsAll other current liabilitiesGross NotionalAll other current assetsAll other current liabilitiesQualifying currency exchange contracts(a)$2,289 $44 $40 $1,613 $26 $22 Non-qualifying currency exchange contracts and other(b)6,759 199 91 16,277 245 56 Gross derivatives$9,047 $243 $131 $17,890 $271 $78 Netting and credit adjustments$(55)$(54)$(28)$(26)Net derivatives recognized in statement of financial position$188 $77 $243 $53 All other current assets All other current liabilities All other current assets All other current liabilities (a) Gains (losses) on interest settlements related to cross-currency swaps included in our Statement of Earnings (Loss) are $2 million and $0 million for the years ended December 31, 2024 and 2023, respectively. (b) Gains (losses) included in our Statement of Earnings (Loss) are $105 million and $136 million for the years ended December 31, 2024 and 2023, respectively, primarily in SG&A, driven by hedges of deferred incentive compensation and foreign exchange fluctuation. These amounts are offset by the remeasurement of the underlying exposure through earnings. **Current (2026):** (a)Primarily included net unrealized gains (losses) of $5 million and $(29) million in Other comprehensive income for the years ended December 31, 2025 and 2024, respectively. (b)Included $356 million of U.S. corporate debt securities and $1,764 million of Mortgage and asset-backed debt securities for the year ended December 31, 2025. Included $491 million of U.S. corporate debt securities and $600 million of Mortgage and asset-backed debt securities for the year ended December 31, 2024. (c)Included $(1,080) million of Mortgage and asset-backed debt securities and $(600) million of U.S. corporate debt securities for the year ended December 31, 2025. Included $(95) million of Mortgage and asset-backed debt securities and $(621) million of U.S. corporate debt securities the year ended December 31, 2024. (d)Transfers out of Level 3 during the years ended December 31, 2025 and 2024, related to increases in the observability of external information used in determining fair value. These transfers were in our run-off insurance operations and primarily included certain investments in private placement U.S. and non-U.S. corporate debt securities. 2025 FORM 10-K 67 2025 FORM 10-K 67 2025 FORM 10-K 67 The majority of these Level 3 securities are fair valued using non-binding broker quotes or other third-party sources that utilize a number of different unobservable inputs not subject to meaningful aggregation. NOTE 22. FINANCIAL INSTRUMENTS. The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered Level 3 and substantially all these liabilities' fair value are considered Level 2. The following table provides information about assets and liabilities not carried at fair value and excludes finance leases, equity securities without readily determinable fair value and non-financial assets and liabilities. Substantially all of these assets are considered Level 3 and substantially all these liabilities' fair value are considered Level 2. December 31, 2025December 31, 2024Carryingamount(net)Estimatedfair valueCarryingamount(net)Estimatedfair valueAssetsLoans and other receivables(a)$2,197 $2,153 $2,261 $1,981 LiabilitiesBorrowings (Note 10)20,494 20,558 19,273 18,805 Investment contracts(a)1,140 1,199 1,375 1,432 (a) Primarily related to our run-off insurance operations. See Note 12 for further information. Assets and liabilities that are reflected in the accompanying financial statements at fair value are not included in the above disclosures; such items include cash and cash equivalents, investment securities (see Note 3) and derivative financial instruments below. DERIVATIVES AND HEDGING. Per our policy, derivatives are used solely for managing risks and not for speculative purposes. We use derivatives to manage risks related to foreign currency exchange (including foreign equity investments), interest rates and commodity prices. We use foreign currency forward and cross-currency interest rate swap contracts designated as cash flow hedges primarily to reduce the effects of foreign exchange rate changes. The gains or losses on derivatives that are designated as cash flow hedges are initially recorded in Statement of Other Comprehensive Income (Loss) and subsequently reclassified to earnings when the hedged transaction affects earnings. We expect to reclassify $46 million of gains from AOCI to earnings in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. We use our foreign currency debt and cross-currency interest rate swaps in net investment hedges to hedge currency exposure of our net investments in foreign operations. Gains and losses on net investment hedges are initially recorded in the Statement of Other Comprehensive Income (Loss). The carrying value of foreign currency debt designated as net investment hedges was $4,958 million and $5,199 million at December 31, 2025 and 2024, respectively. For cross-currency interest rate swaps in qualified hedging relationships, we recognize the periodic interest settlements within Interest and other financial charges in the Statement of Operations. Such interest amounts were $27 million and $2 million for the years ended December 31, 2025 and 2024, respectively. The cash flows associated with these periodic interest settlements are classified as operating activities in the Statement of Cash Flows. We also use derivatives for economic hedges when we have exposures to currency exchange risk for which we are unable to meet the requirements for hedge accounting or when changes in the carrying amount of the hedged item are already recorded in income in the same period as the derivative making hedge accounting unnecessary. Even though the derivative is an effective economic hedge, there may be a net effect on income in each period due to differences in the timing of income recognition between the derivative and the hedged item. FAIR VALUE OF DERIVATIVESDecember 31, 2025December 31, 2024Classification(a)Gross NotionalFair Value - AssetsFair Value - LiabilitiesGross NotionalFair Value - AssetsFair Value - LiabilitiesQualifying currency exchange contractsCurrent$2,125 $38 $17 $1,873 $36 $40 Qualifying cross currency interest rate swapsNon-Current3,079 20 62 416 8 - Current471 17 39 - - - Non-qualifying currency exchange contracts and other(b)Current4,983 172 12 6,759 199 91 Gross derivatives$10,659 $247 $129 $9,047 $243 $131 Netting and credit adjustments$(60)$(58)$(55)$(54)Net derivatives recognized in statement of financial position$187 $71 $188 $77 (a) The fair values of Derivatives indicated as current are components of All other current assets and All other current Liabilities. Fair values of Derivatives indicated as non-current are components of All other assets and All other liabilities in the Statement of Financial Position. (b) Gains (losses) included in our Statement of Operations are $243 million and $105 million for years ended December 31, 2025 and 2024, respectively, primarily in SG&A, driven by hedges of foreign currency exchange and deferred employee compensation. Substantially all of these amounts are offset by the remeasurement of the underlying exposure through income. 68 2025 FORM 10-K 68 2025 FORM 10-K 68 2025 FORM 10-K --- ## Modified Risk: INTANGIBLE ASSETS SUBJECT TO AMORTIZATION December 31 **Key changes:** - Updated: "5-20 5-15 5-10 13 (a) Balance includes payments made to our customers, primarily within our Commercial Engines & Services segment." **Prior (2025):** 3-15 5-15 5 13 (a) Balance includes payments made to our customers, primarily within our Commercial Engines & Services segment. Intangible assets decreased $385 million in 2024, primarily as a result of amortization. Consolidated amortization expense was $350 million, $382 million and $338 million for the years ended December 31, 2024, 2023 and 2022, respectively. Estimated consolidated annual pre-tax amortization for intangible assets over the next five calendar years are as follows: ESTIMATED 5 YEAR CONSOLIDATED AMORTIZATION20252026202720282029Estimated annual pre-tax amortization$348 $343 $329 $322 $323 During 2024, we recorded additions to intangible assets subject to amortization of $136 million with a weighted-average amortizable period of 6.38 years, including capitalized software of $118 million, with a weighted-average amortizable period of 5 years. **Current (2026):** 5-20 5-15 5-10 13 (a) Balance includes payments made to our customers, primarily within our Commercial Engines & Services segment. 50 2025 FORM 10-K 50 2025 FORM 10-K 50 2025 FORM 10-K Intangible assets decreased $32 million in 2025, primarily as a result of amortization, offset by acquisitions within our Defense & Propulsion Technologies segment, additions of capitalized software and foreign currency exchange. Consolidated amortization expense was $357 million, $350 million and $382 million for the years ended December 31, 2025, 2024 and 2023, respectively. Estimated consolidated annual pre-tax amortization for intangible assets over the next five calendar years are as follows: ESTIMATED 5 YEAR CONSOLIDATED AMORTIZATION20262027202820292030Estimated annual pre-tax amortization351356357376371 During 2025, we recorded additions to intangible assets subject to amortization of $266 million with a weighted-average amortizable period of 12.47 years, including capitalized software of $119 million, with a weighted-average amortizable period of 7 years. --- ## Modified Risk: EXPENSES, PROFIT AND INCOME For the years ended December 31 **Prior (2025):** (a) Other segment expenses (income) primarily includes equity method income, interest income and licensing and royalty income. **Current (2026):** (a) Other segment expenses (income) primarily includes equity method income, interest income and licensing and royalty income. --- ## Modified Risk: December 31, 2024 **Key changes:** - Updated: "December 31, 2025December 31, 2024Present value of expected net premiumsLong-term careStructured settlement annuitiesLifeLong-term careStructured settlement annuitiesLifeBalance, beginning of year$4,144 $ - $4,318 $4,063 $ - $4,803 Beginning balance at locked-in discount rate3,991 - 4,415 3,745 - 4,773 Effect of changes in cash flow assumptions355 - 4 465 - (1)Effect of actual variances from expected experience(a)(19) - (2,681)(26) - 8 Adjusted beginning of year balance4,327 - 1,738 4,184 - 4,780 Interest accrual 221 - 164 209 - 177 Net premiums collected(408) - (292)(403) - (309)Effect of foreign currency - - 103 - - (234)Ending balance at locked-in discount rate4,140 - 1,714 3,991 - 4,415 Effect of changes in discount rate assumptions287 - 119 154 - (97)Balance, end of year$4,426 $ - $1,833 $4,144 $ - $4,318 Present value of expected future policy benefitsBalance, beginning of year$28,820 $8,426 $5,336 $30,895 $9,357 $5,921 Beginning balance at locked-in discount rate27,448 8,301 5,411 27,144 8,561 5,847 Effect of changes in cash flow assumptions375 (37)43 238 - 24 Effect of actual variances from expected experience(a)161 19 (2,795)25 (36)(1)Adjusted beginning of year balance27,985 8,283 2,659 27,406 8,525 5,870 Interest accrual1,511 429 204 1,485 441 218 Benefit payments(1,519)(664)(392)(1,443)(664)(430)Effect of foreign currency - - 111 - - (246)Ending balance at locked-in discount rate27,976 8,048 2,582 27,448 8,301 5,411 Effect of changes in discount rate assumptions2,242 335 157 1,371 125 (76)Balance, end of year$30,218 $8,383 $2,739 $28,820 $8,426 $5,336 Net future policy benefit reserves$25,792 $8,383 $906 $24,675 $8,426 $1,018 Less: Reinsurance recoverables, net of allowance for credit losses(162) - (151)(169) - (32)Net future policy benefit reserves, after reinsurance recoverables$25,630 $8,383 $755 $24,507 $8,426 $985 Weighted-average duration of liability (years)(b)11.110.15.911.710.35.3Weighted-average interest accretion rate5.6%5.4%5.3%5.6%5.4%5.1%Current discount rate5.3%5.3%4.9%5.6%5.5%5.1%Gross premiums or assessments recognized during period$463 $ - $306 $479 $ - $353 Expected future gross premiums, undiscounted7,533 - 3,114 7,548 - 11,343 Expected future gross premiums, discounted(b)4,854 - 1,937 4,745 - 5,205 Expected future benefit payments, undiscounted61,336 17,807 4,117 62,001 18,589 10,336 Expected future benefit payments, discounted(b)30,218 8,383 2,739 28,820 8,426 5,336 (a) Substantially all of Life reflects novations executed during the year ended December 31, 2025, in connection with the Canadian life and health insurance portfolio reinsurance transaction." - Updated: "On February 3, 2025, we closed the Canadian life and health insurance portfolio reinsurance transaction that was announced in 2024." - Updated: "Statutory accounting practices are set forth by the National Association of Insurance Commissioners (NAIC) as well as state laws, regulation and general administrative rules and differ in certain respects from GAAP." **Prior (2025):** Future policy benefit reserves Investment contracts Other Total The following tables summarize balances of and changes in future policy benefit reserves. December 31, 2024December 31, 2023Present value of expected net premiumsLong-term careStructured settlement annuitiesLifeLong-term careStructured settlement annuitiesLifeBalance, beginning of year$4,063 $ - $4,803 $4,059 $ - $4,828 Beginning balance at locked-in discount rate3,745 - 4,773 3,958 - 5,210 Effect of changes in cash flow assumptions465 - (1)(4) - (77)Effect of actual variances from expected experience(26) - 8 (22) - (300)Adjusted beginning of year balance4,184 - 4,780 3,932 - 4,833 Interest accrual 209 - 177 207 - 192 Net premiums collected(403) - (309)(394) - (315)Effect of foreign currency - - (234) - - 64 Ending balance at locked-in discount rate3,991 - 4,415 3,745 - 4,773 Effect of changes in discount rate assumptions154 - (97)318 - 30 Balance, end of year$4,144 $ - $4,318 $4,063 $ - $4,803 Present value of expected future policy benefitsBalance, beginning of year$30,895 $9,357 $5,921 $28,316 $8,860 $5,868 Beginning balance at locked-in discount rate27,144 8,561 5,847 27,026 8,790 6,247 Effect of changes in cash flow assumptions238 - 24 (45)(16)49 Effect of actual variances from expected experience25 (36)(1)(13)19 (241)Adjusted beginning of year balance27,406 8,525 5,870 26,968 8,793 6,055 Interest accrual1,485 441 218 1,454 454 232 Benefit payments(1,443)(664)(430)(1,278)(687)(508)Effect of foreign currency - - (246) - - 67 Ending balance at locked-in discount rate27,448 8,301 5,411 27,144 8,561 5,847 Effect of changes in discount rate assumptions1,371 125 (76)3,752 797 74 Balance, end of year$28,820 $8,426 $5,336 $30,895 $9,357 $5,921 Net future policy benefit reserves$24,675 $8,426 $1,018 $26,832 $9,357 $1,117 Less: Reinsurance recoverables, net of allowance for credit losses(169) - (32)(166) - (33)Net future policy benefit reserves, after reinsurance recoverables$24,507 $8,426 $985 $26,666 $9,357 $1,084 Weighted-average duration of liability (years)(a)11.710.35.312.811.35.3Weighted-average interest accretion rate5.6%5.4%5.1%5.5%5.4%5.0%Current discount rate5.6%5.5%5.1%4.9%4.8%4.7%Gross premiums or assessments recognized during period$479 $ - $353 $496 $ - $363 Expected future gross premiums, undiscounted7,548 - 11,343 7,379 - 12,388 Expected future gross premiums, discounted(a)4,745 - 5,205 4,895 - 5,800 Expected future benefit payments, undiscounted62,001 18,589 10,336 63,126 19,291 11,202 Expected future benefit payments, discounted(a)28,820 8,426 5,336 30,895 9,357 5,921 (a) Determined using the current discount rate as of December 31, 2024 and 2023. Our 2024 and 2023 annual reviews of future policy benefit reserves cash flow assumptions resulted in immaterial charges to net earnings, indicating claims experience continues to develop consistently with our models. 56 2024 FORM 10-K 56 2024 FORM 10-K 56 2024 FORM 10-K Included in Insurance losses and annuity benefits in our Statement of Earnings (Loss) for the years ended December 31, 2024 and 2023 are favorable and unfavorable pre-tax adjustments of $196 million and $(155) million, respectively, from updating the net premium ratio (i.e., the percentage of projected gross premiums required to cover expected policy benefits and related expenses) after updating for actual historical experience each quarter and updating of future cash flow assumptions. Included in these amounts for the years ended December 31, 2024 and 2023, are unfavorable adjustments of $109 million and $335 million, respectively, due to insufficient gross premiums (i.e., net premium ratio exceeded 100%), related to certain cohorts in our long-term care and life insurance portfolios. These adjustments are primarily attributable to increases in the net premium ratio as a result of updating future cash flow assumptions on cohorts where the beginning of the period net premium ratio exceeded 100%. As of December 31, 2024 and 2023, policyholders account balances totaled $1,574 million and $1,725 million, respectively. As our insurance operations are in run-off, changes in policyholder account balances for the years ended December 31, 2024 and 2023 are primarily attributed to surrenders, withdrawals, and benefit payments of $432 million and $489 million, partially offset by net additions from separate accounts and interest credited of $276 million and $245 million, respectively. Interest on policyholder account balances is generally credited at minimum guaranteed rates, primarily between 3.0% and 6.0% at both December 31, 2024 and 2023. Reinsurance recoveries are recorded as a reduction of Insurance losses, annuity benefits and other costs in our Statement of Earnings (Loss) and amounted to $104 million, $108 million and $321 million for the years ended December 31, 2024, 2023 and 2022, respectively. Reinsurance recoverables, net of allowances of insignificant amounts, are included in non-current All other assets in our Statement of Financial Position, and amounted to $216 million and $213 million as of December 31, 2024 and 2023, respectively. Statutory accounting practices, not GAAP, determine the required statutory capital levels of our insurance legal entities. Statutory accounting practices are set forth by the National Association of Insurance Commissioners as well as state laws, regulation and general administrative rules and differ in certain respects from GAAP. We annually perform statutory asset adequacy testing, the results of which may affect the amount or timing of capital contributions from GE Aerospace to the insurance legal entities. Following approval of a statutory permitted accounting practice in 2018 by our primary regulator, the Kansas Insurance Department, we have since provided a total of $15,035 million of capital contributions to our run-off insurance subsidiaries, including the final contribution of $1,820 million in the first quarter of 2024. GE Aerospace is a party to capital maintenance agreements with its run-off insurance subsidiaries under which GE Aerospace is required to maintain their statutory capital levels at 300% of their year-end Authorized Control Level risk-based capital requirements as defined from time to time by the NAIC. In June 2024, we signed an agreement to exit our Canadian life and health insurance portfolio, which had reserves of $213 million at December 31, 2024, via an assumption reinsurance transaction. We received regulatory approval in December 2024 and expect the transaction to close in the first quarter of 2025. See Notes 1, 3 and 9 for further information related to our run-off insurance operations. **Current (2026):** Future policy benefit reserves Investment contracts Other Total The following tables summarize balances of and changes in future policy benefit reserves. December 31, 2025December 31, 2024Present value of expected net premiumsLong-term careStructured settlement annuitiesLifeLong-term careStructured settlement annuitiesLifeBalance, beginning of year$4,144 $ - $4,318 $4,063 $ - $4,803 Beginning balance at locked-in discount rate3,991 - 4,415 3,745 - 4,773 Effect of changes in cash flow assumptions355 - 4 465 - (1)Effect of actual variances from expected experience(a)(19) - (2,681)(26) - 8 Adjusted beginning of year balance4,327 - 1,738 4,184 - 4,780 Interest accrual 221 - 164 209 - 177 Net premiums collected(408) - (292)(403) - (309)Effect of foreign currency - - 103 - - (234)Ending balance at locked-in discount rate4,140 - 1,714 3,991 - 4,415 Effect of changes in discount rate assumptions287 - 119 154 - (97)Balance, end of year$4,426 $ - $1,833 $4,144 $ - $4,318 Present value of expected future policy benefitsBalance, beginning of year$28,820 $8,426 $5,336 $30,895 $9,357 $5,921 Beginning balance at locked-in discount rate27,448 8,301 5,411 27,144 8,561 5,847 Effect of changes in cash flow assumptions375 (37)43 238 - 24 Effect of actual variances from expected experience(a)161 19 (2,795)25 (36)(1)Adjusted beginning of year balance27,985 8,283 2,659 27,406 8,525 5,870 Interest accrual1,511 429 204 1,485 441 218 Benefit payments(1,519)(664)(392)(1,443)(664)(430)Effect of foreign currency - - 111 - - (246)Ending balance at locked-in discount rate27,976 8,048 2,582 27,448 8,301 5,411 Effect of changes in discount rate assumptions2,242 335 157 1,371 125 (76)Balance, end of year$30,218 $8,383 $2,739 $28,820 $8,426 $5,336 Net future policy benefit reserves$25,792 $8,383 $906 $24,675 $8,426 $1,018 Less: Reinsurance recoverables, net of allowance for credit losses(162) - (151)(169) - (32)Net future policy benefit reserves, after reinsurance recoverables$25,630 $8,383 $755 $24,507 $8,426 $985 Weighted-average duration of liability (years)(b)11.110.15.911.710.35.3Weighted-average interest accretion rate5.6%5.4%5.3%5.6%5.4%5.1%Current discount rate5.3%5.3%4.9%5.6%5.5%5.1%Gross premiums or assessments recognized during period$463 $ - $306 $479 $ - $353 Expected future gross premiums, undiscounted7,533 - 3,114 7,548 - 11,343 Expected future gross premiums, discounted(b)4,854 - 1,937 4,745 - 5,205 Expected future benefit payments, undiscounted61,336 17,807 4,117 62,001 18,589 10,336 Expected future benefit payments, discounted(b)30,218 8,383 2,739 28,820 8,426 5,336 (a) Substantially all of Life reflects novations executed during the year ended December 31, 2025, in connection with the Canadian life and health insurance portfolio reinsurance transaction. (b) Determined using the current discount rate as of December 31, 2025 and 2024. 2025 FORM 10-K 53 2025 FORM 10-K 53 2025 FORM 10-K 53 As of December 31, 2025 and 2024, policyholders account balances totaled $1,375 million and $1,574 million, respectively. As our insurance operations are in run-off, changes in policyholder account balances for the years ended December 31, 2025 and 2024 are primarily attributed to surrenders, withdrawals and benefit payments of $464 million and $432 million, partially offset by net additions from separate accounts and interest credited of $261 million and $276 million, respectively. Interest on policyholder account balances is generally credited at minimum guaranteed rates, primarily between 3.0% and 6.0% at both December 31, 2025 and 2024, respectively. Reinsurance recoveries are recorded as a reduction of Insurance losses, annuity benefits and other costs in our Statement of Operations and amounted to $348 million, $104 million and $108 million for the years ended December 31, 2025, 2024 and 2023, respectively. Reinsurance recoverables, net of allowances of insignificant amounts, are included in non-current All other assets in our Statement of Financial Position, and amounted to $324 million and $216 million as of December 31, 2025 and 2024, respectively. Our 2025 annual review of future policy benefit reserves cash flow assumptions resulted in an increase in net future policy benefit reserves, after reinsurance recoverables and a pre-tax charge to net income of $126 million ($100 million, after-tax), primarily related to long-term care cost of care inflation and lower policy terminations or benefit reductions related to premium rate increases assumptions, partially offset by favorable experience, including mortality. Our 2024 annual review of future policy benefit reserves cash flow assumptions resulted in an immaterial charge to net income. Included in Insurance losses, annuity benefits and other costs in our Statement of Operations for the years ended December 31, 2025 and 2024 are unfavorable and favorable pre-tax adjustments of $(107) million and $196 million respectively, from updating the net premium ratio (i.e., the percentage of projected gross premiums required to cover expected policy benefits and related expenses) after updating for actual historical experience each quarter and updating of future cash flow assumptions. Included in these amounts for the years ended December 31, 2025 and 2024, are unfavorable adjustments of $175 million and $109 million, respectively, due to insufficient gross premiums (i.e., net premium ratio exceeded 100%), related to certain cohorts in our long-term care and life insurance portfolios. These adjustments are primarily attributable to increases in the net premium ratio as a result of updating future cash flow assumptions on cohorts where the beginning of the period net premium ratio exceeded 100%. On February 3, 2025, we closed the Canadian life and health insurance portfolio reinsurance transaction that was announced in 2024. We received a ceding commission of $128 million with the resulting gain deferred and amortized over the remaining life of the policies or earlier should the underlying treaties be novated. Included in Insurance losses, annuity benefits and other costs in our Statement of Operations for the year ended December 31, 2025, is a benefit of $331 million, related to executed novations, resulting in an insignificant remaining deferred gain balance as of December 31, 2025. Statutory accounting practices, not GAAP, determine the required statutory capital levels of our insurance legal entities. Statutory accounting practices are set forth by the National Association of Insurance Commissioners (NAIC) as well as state laws, regulation and general administrative rules and differ in certain respects from GAAP. As of December 31, 2025, there are no prescribed or permitted statutory accounting practices applicable to the entities. GE Aerospace is a party to capital maintenance agreements (CMAs) with its run-off insurance subsidiaries under which GE Aerospace is required to maintain their statutory capital levels at 300% of their year-end Authorized Control Level risk-based capital requirements as defined from time to time by the NAIC. There were no payments made to the run-off insurance subsidiaries under the CMAs for the year ended December 31, 2025. As of December 31, 2025, our insurance legal entities are restricted from the payment of dividends to their direct parent without prior approval of the commissioner of the Kansas Insurance Department. See Notes 1, 3 and 9 for further information related to our run-off insurance operations. --- ## Modified Risk: NOTE 6. PROPERTY, PLANT AND EQUIPMENT AND OPERATING LEASES **Key changes:** - Updated: "Depreciable livesOriginal CostNet Carrying ValueDecember 31(in years)2025202420252024Land and improvements8$139 $131 $137 $129 Buildings, structures and related equipment8 - 403,295 3,146 1,411 1,369 Machinery and equipment4 - 2012,757 11,533 4,432 3,851 Leasehold costs and manufacturing plant under construction1 - 101,197 1,084 989 872 ROU operating lease assets1,018 1,057 Property, plant and equipment - net$17,388 $15,894 $7,987 $7,277 8 - 40 4 - 20 1 - 10 ROU operating lease assets ROU operating lease assets 2025 FORM 10-K 49 2025 FORM 10-K 49 2025 FORM 10-K 49 Property, plant andequipment additionsDepreciation and amortizationDecember 31202520242023202520242023Commercial Engines & Services$498 $431 $343 $402 $370 $356 Defense & Propulsion Technologies184 135 145 153 150 147 Corporate and Other(a)471 353 278 307 314 294 Total$1,153 $920 $766 $863 $834 $797 (a) Includes supply chain Operating Lease Liabilities." - Updated: "All other current liabilities All other current liabilities All other liabilities All other liabilities OPERATING LEASE EXPENSE202520242023Long-term (fixed)$309 $326 $364 Long-term (variable)30 111 26 Short-term47 45 115 Total operating lease expense$385 $482 $506 MATURITY OF LEASE LIABILITIES20262027202820292030ThereafterTotalUndiscounted lease payments$278 $221 $176 $154 $117 $377 $1,323 Less: imputed interest(260)Total lease liability as of December 31, 2025$1,063" **Prior (2025):** Depreciable livesOriginal CostNet Carrying ValueDecember 31(in years)2024202320242023Land and improvements8$131 $128 $129 $126 Buildings, structures and related equipment8 - 403,146 3,062 1,369 1,358 Machinery and equipment4 - 2011,533 11,160 3,851 3,876 Leasehold costs and manufacturing plant under construction1 - 101,084 989 872 727 ROU operating lease assets1,057 1,160 Property, plant and equipment - net$15,894 $15,338 $7,277 $7,246 8 - 40 4 - 20 1 - 10 ROU operating lease assets ROU operating lease assets Property, plant andequipment additionsDepreciation and amortizationDecember 31202420232022202420232022Commercial Engines & Services$431 $343 $160 $370 $356 $362 Defense & Propulsion Technologies135 145 149 150 147 144 Corporate and Other (including supply chain)353 278 265 314 294 341 Total$920 $766 $574 $834 $797 $846 52 2024 FORM 10-K 52 2024 FORM 10-K 52 2024 FORM 10-K Operating Lease Liabilities. Our current operating lease liabilities, included in All other current liabilities in our Statement of Financial Position were $283 million and $308 million, as of December 31, 2024 and 2023, respectively. Our non-current operating lease liabilities, included in All other liabilities in our Statement of Financial Position, were $822 million and $931 million, as of December 31, 2024 and 2023, respectively. Substantially all of our operating leases have remaining lease terms of 10 years or less, some of which may include options to extend. All other current liabilities All other current liabilities All other liabilities All other liabilities OPERATING LEASE EXPENSE202420232022Long-term (fixed)$326 $364 $428 Long-term (variable)111 26 13 Short-term45 115 88 Total operating lease expense$482 $506 $529 MATURITY OF LEASE LIABILITIES20252026202720282029ThereafterTotalUndiscounted lease payments$276 $239 $185 $143 $128 $398 $1,369 Less: imputed interest(247)Total lease liability as of December 31, 2024$1,122 **Current (2026):** Depreciable livesOriginal CostNet Carrying ValueDecember 31(in years)2025202420252024Land and improvements8$139 $131 $137 $129 Buildings, structures and related equipment8 - 403,295 3,146 1,411 1,369 Machinery and equipment4 - 2012,757 11,533 4,432 3,851 Leasehold costs and manufacturing plant under construction1 - 101,197 1,084 989 872 ROU operating lease assets1,018 1,057 Property, plant and equipment - net$17,388 $15,894 $7,987 $7,277 8 - 40 4 - 20 1 - 10 ROU operating lease assets ROU operating lease assets 2025 FORM 10-K 49 2025 FORM 10-K 49 2025 FORM 10-K 49 Property, plant andequipment additionsDepreciation and amortizationDecember 31202520242023202520242023Commercial Engines & Services$498 $431 $343 $402 $370 $356 Defense & Propulsion Technologies184 135 145 153 150 147 Corporate and Other(a)471 353 278 307 314 294 Total$1,153 $920 $766 $863 $834 $797 (a) Includes supply chain Operating Lease Liabilities. Our current operating lease liabilities, included in All other current liabilities in our Statement of Financial Position were $280 million and $283 million, as of December 31, 2025 and 2024, respectively. Our non-current operating lease liabilities, included in All other liabilities in our Statement of Financial Position, were $783 million and $822 million, as of December 31, 2025 and 2024, respectively. Substantially all of our operating leases have remaining lease terms of 10 years or less, some of which may include options to extend. All other current liabilities All other current liabilities All other liabilities All other liabilities OPERATING LEASE EXPENSE202520242023Long-term (fixed)$309 $326 $364 Long-term (variable)30 111 26 Short-term47 45 115 Total operating lease expense$385 $482 $506 MATURITY OF LEASE LIABILITIES20262027202820292030ThereafterTotalUndiscounted lease payments$278 $221 $176 $154 $117 $377 $1,323 Less: imputed interest(260)Total lease liability as of December 31, 2025$1,063 --- ## Modified Risk: Total lease liability as of December 31, 2025 **Key changes:** - Updated: "SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES202520242023Operating cash flows used for operating leases$329 $352 $427 Right-of-use assets obtained in exchange for new lease liabilities238 196 275 Weighted-average remaining lease term7.6 years7.8 years7.7 yearsWeighted-average discount rate4.7 %4.6 %4.5 %" **Prior (2025):** SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES202420232022Operating cash flows used for operating leases$352 $427 $456 Right-of-use assets obtained in exchange for new lease liabilities196 275 264 Weighted-average remaining lease term7.8 years7.7 years8.4 yearsWeighted-average discount rate4.6 %4.5 %4.4 % **Current (2026):** SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES202520242023Operating cash flows used for operating leases$329 $352 $427 Right-of-use assets obtained in exchange for new lease liabilities238 196 275 Weighted-average remaining lease term7.6 years7.8 years7.7 yearsWeighted-average discount rate4.7 %4.6 %4.5 % --- ## Modified Risk: Definition and Limitations of Internal Control over Financial Reporting **Key changes:** - Updated: "/s/ DELOITTE & TOUCHE LLP Cincinnati, OhioJanuary 29, 2026 /s/ DELOITTE & TOUCHE LLP 2025 FORM 10-K 35 2025 FORM 10-K 35 2025 FORM 10-K 35 STATEMENT OF OPERATIONS(In millions; per-share amounts in dollars)202520242023Sales of equipment$12,159 $10,274 $9,318 Sales of services30,163 24,847 22,641 Insurance revenue (Note 12)3,533 3,581 3,389 Total revenue45,855 38,702 35,348 Cost of equipment sold12,382 10,341 9,900 Cost of services sold16,586 13,967 13,039 Selling, general and administrative expenses4,088 4,437 4,045 Separation costs202 492 692 Research and development1,580 1,286 1,011 Interest and other financial charges843 986 1,029 Insurance losses, annuity benefits and other costs (Note 12)2,449 2,429 2,886 Goodwill impairments (Note 7) - 251 - Non-operating benefit cost (income)(788)(842)(978)Total costs and expenses37,342 33,346 31,625 Other income (loss) (Note 19)1,487 2,264 6,718 Income (loss) from continuing operations before income taxes10,000 7,620 10,441 Benefit (provision) for income taxes (Note 15)(1,405)(962)(994)Net income (loss) from continuing operations8,595 6,657 9,448 Income (loss) from discontinued operations, net of taxes (Note 2)103 (91)(3)Net income (loss)8,698 6,566 9,445 Less net income (loss) attributable to noncontrolling interests(6)11 (37)Net income (loss) attributable to the Company8,704 6,556 9,482 Preferred stock dividends and other - - (295)Net income (loss) attributable to common shareholders$8,704 $6,556 $9,188 Amounts attributable to common shareholdersNet income (loss) from continuing operations$8,595 $6,657 $9,448 Less net income (loss) attributable to noncontrolling interests, continuing operations(6)(13)(1)Net income (loss) from continuing operations attributable to the Company8,601 6,670 9,449 Preferred stock dividends and other - - (295)Net income (loss) from continuing operations attributable to common shareholders8,601 6,670 9,154 Net income (loss) from discontinued operations attributableto common shareholders103 (114)33 Net income (loss) attributable to common shareholders$8,704 $6,556 $9,188 Earnings (loss) per share from continuing operations (Note 18)Diluted earnings (loss) per share$8.05 $6.09 $8.33 Basic earnings (loss) per share$8.11 $6.15 $8.41 Net earnings (loss) per share (Note 18)Diluted earnings (loss) per share$8.14 $5.99 $8.36 Basic earnings (loss) per share$8.20 $6.04 $8.44 36 2025 FORM 10-K 36 2025 FORM 10-K 36 2025 FORM 10-K STATEMENT OF FINANCIAL POSITIONDecember 31 (In millions)20252024Cash, cash equivalents and restricted cash$12,392 $13,619 Investment securities (Note 3) - 982 Current receivables (Note 4)11,773 9,327 Inventories, including deferred inventory costs (Note 5)11,868 9,763 Current contract assets (Note 8)3,511 2,982 All other current assets (Note 9)1,052 962 Current assets40,596 37,635 Investment securities (Note 3)38,788 37,741 Property, plant and equipment - net (Note 6)7,987 7,277 Goodwill (Note 7)9,060 8,538 Other intangible assets - net (Note 7)4,225 4,257 Contract and other deferred assets (Note 8)4,920 4,831 All other assets (Note 9)15,277 13,910 Deferred income taxes (Note 15)7,459 7,111 Assets of discontinued operations (Note 2)1,855 1,841 Total assets$130,169 $123,140 Short-term borrowings (Note 10)$1,686 $2,039 Accounts payable (Note 11)10,078 7,909 Progress collections (Note 8)7,662 6,695 Contract liabilities and deferred income (Note 8)10,333 9,353 Sales discounts and allowances (Note 14)4,037 3,475 All other current liabilities (Note 14)5,185 4,920 Current liabilities38,980 34,392 Deferred income (Note 8)1,065 1,013 Long-term borrowings (Note 10)18,808 17,234 Insurance liabilities and annuity benefits (Note 12)36,894 36,209 Non-current compensation and benefits6,833 7,035 All other liabilities (Note 14)7,276 6,376 Liabilities of discontinued operations (Note 2)1,413 1,317 Total liabilities111,271 103,576 Common stock (1,048,766,702 and 1,073,692,183 shares outstanding at December 31, 2025 and December 31, 2024, respectively) (Note 16)15 15 Accumulated other comprehensive income (loss) - net attributable to the Company (Note 16)(4,798)(3,861)Other capital23,599 24,266 Retained earnings87,663 80,488 Less common stock held in treasury(87,801)(81,566)Total shareholders' equity18,677 19,342 Noncontrolling interests221 223 Total equity18,898 19,564 Total liabilities and equity$130,169 $123,140 Assets of discontinued operations (Note 2)" **Prior (2025):** A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ DELOITTE & TOUCHE LLP Cincinnati, OhioFebruary 3, 2025 /s/ DELOITTE & TOUCHE LLP 2024 FORM 10-K 37 2024 FORM 10-K 37 2024 FORM 10-K 37 STATEMENT OF EARNINGS (LOSS)For the years ended December 31 (In millions; per-share amounts in dollars)202420232022Sales of equipment$10,274 $9,318 $7,837 Sales of services24,847 22,641 18,345 Insurance revenue (Note 12)3,581 3,389 2,957 Total revenue38,702 35,348 29,139 Cost of equipment sold10,341 9,900 8,151 Cost of services sold13,967 13,039 10,836 Selling, general and administrative expenses4,437 4,045 3,672 Separation costs492 692 625 Research and development1,286 1,011 808 Interest and other financial charges986 1,029 1,339 Debt extinguishment costs - - 465 Insurance losses, annuity benefits and other costs (Note 12)2,429 2,886 2,592 Goodwill impairments (Note 7)251 - - Non-operating benefit cost (income)(842)(978)(60)Total costs and expenses33,346 31,625 28,428 Other income (loss) (Note 19)2,264 6,718 811 Earnings (loss) from continuing operations before income taxes7,620 10,441 1,522 Benefit (provision) for income taxes (Note 15)(962)(994)(169)Earnings (loss) from continuing operations6,657 9,448 1,353 Earnings (loss) from discontinued operations, net of taxes (Note 2)(91)(3)(949)Net earnings (loss)6,566 9,445 403 Less net earnings (loss) attributable to noncontrolling interests11 (37)67 Net earnings (loss) attributable to the Company6,556 9,482 336 Preferred stock dividends and other - (295)(289)Net earnings (loss) attributable to common shareholders$6,556 $9,188 $48 Amounts attributable to common shareholdersEarnings (loss) from continuing operations$6,657 $9,448 $1,353 Less net earnings (loss) attributable to noncontrolling interests, continuing operations(13)(1)2 Earnings (loss) from continuing operations attributable to the Company6,670 9,449 1,350 Preferred stock dividends and other - (295)(289)Earnings (loss) from continuing operations attributable to common shareholders6,670 9,154 1,061 Earnings (loss) from discontinued operations attributableto common shareholders(114)33 (1,014)Net earnings (loss) attributable to common shareholders$6,556 $9,188 $48 Earnings (loss) per share from continuing operations (Note 18)Diluted earnings (loss) per share$6.09 $8.33 $0.97 Basic earnings (loss) per share$6.15 $8.41 $0.97 Net earnings (loss) per share (Note 18)Diluted earnings (loss) per share$5.99 $8.36 $0.05 Basic earnings (loss) per share$6.04 $8.44 $0.05 38 2024 FORM 10-K 38 2024 FORM 10-K 38 2024 FORM 10-K STATEMENT OF FINANCIAL POSITIONDecember 31 (In millions)20242023Cash, cash equivalents and restricted cash$13,619 $15,204 Investment securities (Note 3)982 5,706 Current receivables (Note 4)9,327 8,703 Inventories, including deferred inventory costs (Note 5)9,763 8,284 Current contract assets (Note 8)2,982 2,875 All other current assets (Note 9)962 1,244 Assets of businesses held for sale (Note 2) - 541 Current assets37,635 42,556 Investment securities (Note 3)37,741 38,000 Property, plant and equipment - net (Note 6)7,277 7,246 Goodwill (Note 7)8,538 8,948 Other intangible assets - net (Note 7)4,257 4,642 Contract and other deferred assets (Note 8)4,831 4,785 All other assets (Note 9)13,910 11,695 Deferred income taxes (Note 15)7,111 7,502 Assets of discontinued operations (Note 2)1,841 47,927 Total assets$123,140 $173,300 Short-term borrowings (Note 10)$2,039 $1,108 Accounts payable (Note 11)7,909 7,516 Progress collections (Note 8)6,695 6,177 Contract liabilities and deferred income (Note 8)9,353 8,322 Sales discounts and allowances (Note 14)3,475 3,741 All other current liabilities (Note 14)4,920 4,860 Liabilities of businesses held for sale (Note 2) - 378 Current liabilities34,392 32,103 Deferred income (Note 8)1,013 975 Long-term borrowings (Note 10)17,234 19,417 Insurance liabilities and annuity benefits (Note 12)36,209 39,576 Non-current compensation and benefits7,035 7,656 All other liabilities (Note 14)6,376 5,756 Liabilities of discontinued operations (Note 2)1,317 39,213 Total liabilities103,576 144,695 Common stock (1,073,692,183 and 1,088,415,995 shares outstanding at December 31, 2024 and 2023, respectively) (Note 16)15 15 Accumulated other comprehensive income (loss) - net attributable to the Company (Note 16)(3,861)(6,150)Other capital24,266 26,962 Retained earnings80,488 86,553 Less common stock held in treasury(81,566)(79,976)Total shareholders' equity19,342 27,403 Noncontrolling interests223 1,202 Total equity19,564 28,605 Total liabilities and equity$123,140 $173,300 Assets of discontinued operations (Note 2) **Current (2026):** A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ DELOITTE & TOUCHE LLP Cincinnati, OhioJanuary 29, 2026 /s/ DELOITTE & TOUCHE LLP 2025 FORM 10-K 35 2025 FORM 10-K 35 2025 FORM 10-K 35 STATEMENT OF OPERATIONS(In millions; per-share amounts in dollars)202520242023Sales of equipment$12,159 $10,274 $9,318 Sales of services30,163 24,847 22,641 Insurance revenue (Note 12)3,533 3,581 3,389 Total revenue45,855 38,702 35,348 Cost of equipment sold12,382 10,341 9,900 Cost of services sold16,586 13,967 13,039 Selling, general and administrative expenses4,088 4,437 4,045 Separation costs202 492 692 Research and development1,580 1,286 1,011 Interest and other financial charges843 986 1,029 Insurance losses, annuity benefits and other costs (Note 12)2,449 2,429 2,886 Goodwill impairments (Note 7) - 251 - Non-operating benefit cost (income)(788)(842)(978)Total costs and expenses37,342 33,346 31,625 Other income (loss) (Note 19)1,487 2,264 6,718 Income (loss) from continuing operations before income taxes10,000 7,620 10,441 Benefit (provision) for income taxes (Note 15)(1,405)(962)(994)Net income (loss) from continuing operations8,595 6,657 9,448 Income (loss) from discontinued operations, net of taxes (Note 2)103 (91)(3)Net income (loss)8,698 6,566 9,445 Less net income (loss) attributable to noncontrolling interests(6)11 (37)Net income (loss) attributable to the Company8,704 6,556 9,482 Preferred stock dividends and other - - (295)Net income (loss) attributable to common shareholders$8,704 $6,556 $9,188 Amounts attributable to common shareholdersNet income (loss) from continuing operations$8,595 $6,657 $9,448 Less net income (loss) attributable to noncontrolling interests, continuing operations(6)(13)(1)Net income (loss) from continuing operations attributable to the Company8,601 6,670 9,449 Preferred stock dividends and other - - (295)Net income (loss) from continuing operations attributable to common shareholders8,601 6,670 9,154 Net income (loss) from discontinued operations attributableto common shareholders103 (114)33 Net income (loss) attributable to common shareholders$8,704 $6,556 $9,188 Earnings (loss) per share from continuing operations (Note 18)Diluted earnings (loss) per share$8.05 $6.09 $8.33 Basic earnings (loss) per share$8.11 $6.15 $8.41 Net earnings (loss) per share (Note 18)Diluted earnings (loss) per share$8.14 $5.99 $8.36 Basic earnings (loss) per share$8.20 $6.04 $8.44 36 2025 FORM 10-K 36 2025 FORM 10-K 36 2025 FORM 10-K STATEMENT OF FINANCIAL POSITIONDecember 31 (In millions)20252024Cash, cash equivalents and restricted cash$12,392 $13,619 Investment securities (Note 3) - 982 Current receivables (Note 4)11,773 9,327 Inventories, including deferred inventory costs (Note 5)11,868 9,763 Current contract assets (Note 8)3,511 2,982 All other current assets (Note 9)1,052 962 Current assets40,596 37,635 Investment securities (Note 3)38,788 37,741 Property, plant and equipment - net (Note 6)7,987 7,277 Goodwill (Note 7)9,060 8,538 Other intangible assets - net (Note 7)4,225 4,257 Contract and other deferred assets (Note 8)4,920 4,831 All other assets (Note 9)15,277 13,910 Deferred income taxes (Note 15)7,459 7,111 Assets of discontinued operations (Note 2)1,855 1,841 Total assets$130,169 $123,140 Short-term borrowings (Note 10)$1,686 $2,039 Accounts payable (Note 11)10,078 7,909 Progress collections (Note 8)7,662 6,695 Contract liabilities and deferred income (Note 8)10,333 9,353 Sales discounts and allowances (Note 14)4,037 3,475 All other current liabilities (Note 14)5,185 4,920 Current liabilities38,980 34,392 Deferred income (Note 8)1,065 1,013 Long-term borrowings (Note 10)18,808 17,234 Insurance liabilities and annuity benefits (Note 12)36,894 36,209 Non-current compensation and benefits6,833 7,035 All other liabilities (Note 14)7,276 6,376 Liabilities of discontinued operations (Note 2)1,413 1,317 Total liabilities111,271 103,576 Common stock (1,048,766,702 and 1,073,692,183 shares outstanding at December 31, 2025 and December 31, 2024, respectively) (Note 16)15 15 Accumulated other comprehensive income (loss) - net attributable to the Company (Note 16)(4,798)(3,861)Other capital23,599 24,266 Retained earnings87,663 80,488 Less common stock held in treasury(87,801)(81,566)Total shareholders' equity18,677 19,342 Noncontrolling interests221 223 Total equity18,898 19,564 Total liabilities and equity$130,169 $123,140 Assets of discontinued operations (Note 2) --- ## Modified Risk: NOTE 11. ACCOUNTS PAYABLE **Key changes:** - Updated: "December 3120252024Trade payables$5,734 $4,565 Supply chain finance programs1,247 1,259 Revenue sharing and other partner payables(a)2,553 1,689 Sundry payables544 397 Accounts payable $10,078 $7,909 Supply chain finance programs Supply chain finance programs Sundry payables" **Prior (2025):** December 3120242023Trade payables$6,254 $5,290 Supply chain finance programs1,259 1,472 Sundry payables397 754 Accounts payable $7,909 $7,516 Supply chain finance programs Supply chain finance programs Sundry payables **Current (2026):** December 3120252024Trade payables$5,734 $4,565 Supply chain finance programs1,247 1,259 Revenue sharing and other partner payables(a)2,553 1,689 Sundry payables544 397 Accounts payable $10,078 $7,909 Supply chain finance programs Supply chain finance programs Sundry payables --- ## Modified Risk: DEFERRED TAX ASSETS VALUATION ALLOWANCE **Key changes:** - Updated: "(a) Primarily related to utilization of losses against capital gains, including gains reported in discontinued operations." - Added: "2025 FORM 10-K 63 2025 FORM 10-K 63 2025 FORM 10-K 63" **Prior (2025):** (a) Primarily related to excess capital losses generated during the year. (b) Primarily related to utilization of losses against capital gains, including gains reported in discontinued operations. See Note 2 for further information. **Current (2026):** (a) Primarily related to utilization of losses against capital gains, including gains reported in discontinued operations. See Note 2 for further information. 2025 FORM 10-K 63 2025 FORM 10-K 63 2025 FORM 10-K 63 --- ## Modified Risk: NOTE 19. OTHER INCOME (LOSS) **Key changes:** - Updated: "202520242023Investment in GE HealthCare realized and unrealized gain (loss)$ - $480 $5,639 Investment in and note with AerCap realized and unrealized gain (loss)21 38 129 Investment in Baker Hughes realized and unrealized gain (loss) - - 10 Gains (losses) on retained and sold ownership interests$21 $518 $5,778 Other net interest and investment income (loss)(a)(b)946 813 637 Licensing and royalty income175 210 148 Equity method income216 173 169 Purchases and sales of business interests(c)6 399 (105)Other items123 151 92 Total other income (loss)$1,487 $2,264 $6,718 Total other income (loss) (a) Included interest income associated with customer advances of $144 million, $132 million and $127 million for the years ended December 31, 2025, 2024 and 2023, respectively." - Updated: "(b) Included investment income of $295 million related to our investment in BETA Technologies, Inc." **Prior (2025):** 202420232022Investment in GE HealthCare realized and unrealized gain (loss)$480 $5,639 $ - Investment in and note with AerCap realized and unrealized gain (loss)38 129 (865)Investment in Baker Hughes realized and unrealized gain (loss) - 10 912 Gains (losses) on retained and sold ownership interests$518 $5,778 $47 Other net interest and investment income (loss)(a)813 637 466 Licensing and royalty income210 148 115 Equity method income173 169 70 Purchases and sales of business interests(b)399 (105)38 Other items151 92 74 Total other income (loss)$2,264 $6,718 $811 Total other income (loss) (a) Included interest income associated with customer advances of $132 million, $127 million and $129 million in 2024, 2023 and 2022, respectively. See Note 8 for further information. (b) Included a pre-tax gain of $347 million related to the sale of our non-core licensing business in Corporate in 2024. During the year ended December 31, 2024, we received total proceeds of $5,242 million from the disposition of 61.6 million shares of GE HealthCare and have now fully monetized our position. 68 2024 FORM 10-K 68 2024 FORM 10-K 68 2024 FORM 10-K **Current (2026):** 202520242023Investment in GE HealthCare realized and unrealized gain (loss)$ - $480 $5,639 Investment in and note with AerCap realized and unrealized gain (loss)21 38 129 Investment in Baker Hughes realized and unrealized gain (loss) - - 10 Gains (losses) on retained and sold ownership interests$21 $518 $5,778 Other net interest and investment income (loss)(a)(b)946 813 637 Licensing and royalty income175 210 148 Equity method income216 173 169 Purchases and sales of business interests(c)6 399 (105)Other items123 151 92 Total other income (loss)$1,487 $2,264 $6,718 Total other income (loss) (a) Included interest income associated with customer advances of $144 million, $132 million and $127 million for the years ended December 31, 2025, 2024 and 2023, respectively. See Note 8 for further information. (b) Included investment income of $295 million related to our investment in BETA Technologies, Inc. for the year ended December 31, 2025. (c) Included a pre-tax gain of $347 million related to the sale of our non-core licensing business in Corporate for the year ended December 31, 2024. --- ## Modified Risk: NOTE 26. SUMMARIZED FINANCIAL INFORMATION **Key changes:** - Updated: "Unconsolidated entities over which we have significant influence are accounted for as equity method investments and presented on a one-line basis in either All other assets or Investment Securities on our Statement of Financial Position." - Updated: "For the years ended December 31202520242023(a)Revenue$48,024 $35,342 $41,403 Gross profit (loss)1,239 1,229 4,093 Net income (loss)3,538 3,243 4,768 Net income (loss) attributable to the entity3,525 3,199 4,731 2025 2023(a) (a) Includes AerCap Gross profit (loss) of $3,096 million and Net income (loss) attributable to the entity of $2,525 million for the year ended December 31, 2023." **Prior (2025):** Equity method investments. Unconsolidated entities over which we have significant influence are accounted for as equity method investments and presented on a one-line basis in All other assets on our Statement of Financial Position. Equity method income includes our share of the results of unconsolidated entities, gains (loss) from sales and impairments of investments, which is included in Other income and in Insurance revenue in our Statement of Earnings (Loss). See Notes 1, 9 and 19 for further information. Equity method investmentbalance (Note 9)Equity method income (loss) (Note 19)December 3120242023202420232022Commercial Engines & Services$1,610 $1,551 $301 $276 $139 Defense & Propulsion Technologies186 175 8 8 8 Corporate & Other(a)4,451 3,863 147 61 75 Total$6,247 $5,590 $456 $345 $223 2024 2024 2022 (a) Equity method investments within Corporate & Other include investments held by run-off insurance operations of $2,933 million and $2,383 million and U.S. tax equity of $1,280 million and $1,227 million as of December 31, 2024 and 2023, respectively. Summarized financial information of these equity method investments is as follows. For the years ended December 3120242023(a)2022(a)Revenue$35,342 $41,403 $31,454 Gross profit (loss)1,229 4,093 107 Net income (loss)3,243 4,768 210 Net income (loss) attributable to the entity3,199 4,731 188 2024 2022(a) (a) Includes AerCap Gross profit (loss) of $3,096 million and $(447) million and Net income (loss) attributable to the entity of $2,525 million and $(1,132) million for the years ended December 31, 2023 and 2022, respectively. On November 16, 2023, we sold our remaining equity interest in AerCap and only the note remains outstanding. As of December 3120242023Current assets$19,688 $18,565 Total assets$54,116 $48,281 Current liabilities$17,437 $16,468 Total liabilities$23,868 $22,266 Noncontrolling interests$200 $176 2024 76 2024 FORM 10-K 76 2024 FORM 10-K 76 2024 FORM 10-K **Current (2026):** Equity method investments. Unconsolidated entities over which we have significant influence are accounted for as equity method investments and presented on a one-line basis in either All other assets or Investment Securities on our Statement of Financial Position. Equity method income includes our share of the results of unconsolidated entities, gains (loss) from sales and impairments of investments, which is included in Other income and in Insurance revenue in our Statement of Operations. See Notes 1, 3, 9 and 19 for further information. Equity method investmentbalanceIncome (loss) from equity method investmentsDecember 3120252024202520242023Commercial Engines & Services$1,682 $1,610 $376 $301 $276 Defense & Propulsion Technologies189 186 (2)8 8 Corporate & Other(a)5,244 4,451 518 147 61 Total$7,115 $6,247 $892 $456 $345 2025 2025 2023 (a) Equity method investments within Corporate & Other include investments held by run-off insurance operations of $3,230 million and $2,933 million, U.S. tax equity of $1,114 million and $1,280 million and investment securities of $645 million and zero as of December 31, 2025 and 2024, respectively. Summarized financial information of these equity method investments is as follows. For the years ended December 31202520242023(a)Revenue$48,024 $35,342 $41,403 Gross profit (loss)1,239 1,229 4,093 Net income (loss)3,538 3,243 4,768 Net income (loss) attributable to the entity3,525 3,199 4,731 2025 2023(a) (a) Includes AerCap Gross profit (loss) of $3,096 million and Net income (loss) attributable to the entity of $2,525 million for the year ended December 31, 2023. On November 16, 2023, we sold our remaining equity interest in AerCap and the senior note matured in the fourth quarter of 2025. December 3120252024Current assets$26,213 $19,688 Total assets$67,218 $54,116 Current liabilities$23,159 $17,437 Total liabilities$32,513 $23,868 Noncontrolling interests$336 $200 2025 2025 FORM 10-K 73 2025 FORM 10-K 73 2025 FORM 10-K 73 --- ## Modified Risk: NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS **Key changes:** - Updated: "Commercial Engines & ServicesDefense & Propulsion TechnologiesTotalBalance at December 31, 2023 $6,472 $2,476 $8,948 Goodwill impairment - (251)(251)Goodwill adjustments(a)(131)(28)(159)Balance at December 31, 2024$6,341 $2,197 $8,538 Goodwill acquisition - 148 148 Goodwill adjustments(a)303 72 374 Balance at December 31, 2025$6,644 $2,417 $9,060" **Prior (2025):** In conjunction with the GE Vernova separation, we changed our segment reporting structure. As a result, all prior period balances for those segments were updated to reflect this change. Changes in the carrying value of Goodwill for years ending December 31, 2024, 2023 and 2022 were as follows: Commercial Engines & ServicesDefense & Propulsion TechnologiesTotalBalance at December 31, 2022 $6,386 $2,449 $8,835 Goodwill adjustments(a)86 26 113 Balance at December 31, 2023$6,472 $2,476 $8,948 Goodwill impairment - (251)(251)Goodwill adjustments(a)(131)(28)(159)Balance at December 31, 2024$6,341 $2,197 $8,538 **Current (2026):** Commercial Engines & ServicesDefense & Propulsion TechnologiesTotalBalance at December 31, 2023 $6,472 $2,476 $8,948 Goodwill impairment - (251)(251)Goodwill adjustments(a)(131)(28)(159)Balance at December 31, 2024$6,341 $2,197 $8,538 Goodwill acquisition - 148 148 Goodwill adjustments(a)303 72 374 Balance at December 31, 2025$6,644 $2,417 $9,060 --- ## Modified Risk: DEFERRED INCOME TAXES December 31 **Key changes:** - Updated: "COMPONENTS OF THE NET DEFERRED INCOME TAX ASSET (LIABILITY) December 3120252024Deferred tax assets Insurance company loss reserves$2,398 $2,349 Progress collections, Contract assets, Contract liabilities and deferred items1,764 1,435 Accrued expenses and reserves1,278 1,231 Deferred expenses1,231 1,398 Other compensation and benefits580 510 Principal pension plans989 1,009 Non-U.S." **Prior (2025):** COMPONENTS OF THE NET DEFERRED INCOME TAX ASSET (LIABILITY) December 3120242023Deferred tax assets Insurance company loss reserves$2,349 $3,185 Progress collections, Contract assets, Contract liabilities and deferred items1,435 1,632 Accrued expenses and reserves1,231 1,241 Deferred expenses1,398 1,235 Other compensation and benefits510 521 Principal pension plans1,009 1,146 Non-U.S. loss carryforwards(a)1,891 1,879 Capital losses carryforward849 582 State deferred tax assets(b)762 813 Other1,514 1,490 Total deferred tax assets$12,948 $13,724 Valuation allowance(a)(b)(c)(3,216)(3,416)Total deferred tax assets after valuation allowance9,732 10,308 Deferred tax liabilities Intangibles$(1,049)$(1,129) Depreciation(712)(635) Investment in securities(661)(645) Other(199)(397)Total deferred tax liabilities(2,621)(2,806)Net deferred income tax asset (liability)$7,111 $7,502 **Current (2026):** COMPONENTS OF THE NET DEFERRED INCOME TAX ASSET (LIABILITY) December 3120252024Deferred tax assets Insurance company loss reserves$2,398 $2,349 Progress collections, Contract assets, Contract liabilities and deferred items1,764 1,435 Accrued expenses and reserves1,278 1,231 Deferred expenses1,231 1,398 Other compensation and benefits580 510 Principal pension plans989 1,009 Non-U.S. loss carryforwards(a)2,133 1,891 Capital losses carryforward881 849 State deferred tax assets(b)684 762 Other1,522 1,514 Total deferred tax assets$13,460 $12,948 Valuation allowance(a)(b)(c)(3,338)(3,216)Total deferred tax assets after valuation allowance$10,122 $9,732 Deferred tax liabilities Intangibles$(1,097)$(1,049) Depreciation(732)(712) Investment in securities(640)(661) Other(194)(199)Total deferred tax liabilities(2,663)(2,621)Net deferred income tax asset (liability)$7,459 $7,111 --- ## Modified Risk: GEOGRAPHIC INFORMATION **Key changes:** - Updated: "Years ended December 31202520242023U.S.$18,194 $17,340 $17,105 Non-U.S.Europe8,603 7,800 7,248 Asia10,819 7,237 5,734 Americas3,664 2,593 1,862 Middle East and Africa4,575 3,734 3,399 Total Non-U.S.$27,661 $21,363 $18,243 Total geographic revenue$45,855 $38,702 $35,348 Non-U.S." **Prior (2025):** Years ended December 31202420232022U.S.$17,340 $17,105 $15,540 Non-U.S.Europe7,800 7,248 5,029 China region3,634 2,625 1,919 Asia (excluding China region)3,602 3,109 2,254 Americas2,593 1,862 1,803 Middle East and Africa3,734 3,399 2,594 Total Non-U.S.$21,363 $18,243 $13,599 Total geographic revenue$38,702 $35,348 $29,139 Non-U.S. revenue as a % of total revenue55 %52 %47 % 2024 FORM 10-K 75 2024 FORM 10-K 75 2024 FORM 10-K 75 December 31 20242023U.S.$5,166 $5,215 Non-U.S.Europe1,171 1,194 Asia497 500 Americas431 332 Other Global12 4 Total Non-U.S.$2,111 $2,031 Property, plant and equipment - net (Note 6)$7,277 $7,246 REMAINING PERFORMANCE OBLIGATION. As of December 31, 2024, the aggregate amount of the contracted revenue allocated to our unsatisfied (or partially unsatisfied) performance obligations was $171,635 million. We expect to recognize revenue as we satisfy our remaining performance obligations as follows: 1) equipment-related remaining performance obligation of $22,509 million of which 43%, 64% and 94% is expected to be recognized within 1, 2 and 5 years, respectively, and the remaining thereafter; and 2) services-related remaining performance obligations of $149,127 million of which 12%, 41%, 68% and 85% is expected to be recognized within 1, 5, 10 and 15 years, respectively, and the remaining thereafter. Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related remaining performance obligations. **Current (2026):** Years ended December 31202520242023U.S.$18,194 $17,340 $17,105 Non-U.S.Europe8,603 7,800 7,248 Asia10,819 7,237 5,734 Americas3,664 2,593 1,862 Middle East and Africa4,575 3,734 3,399 Total Non-U.S.$27,661 $21,363 $18,243 Total geographic revenue$45,855 $38,702 $35,348 Non-U.S. revenue as a % of total revenue60 %55 %52 % 72 2025 FORM 10-K 72 2025 FORM 10-K 72 2025 FORM 10-K December 31 20252024U.S.$5,736 $5,166 Non-U.S.Europe1,257 1,171 Asia505 497 Americas479 431 Other Global11 12 Total Non-U.S.$2,252 $2,111 Property, plant and equipment - net (Note 6)$7,987 $7,277 REMAINING PERFORMANCE OBLIGATION. As of December 31, 2025, the aggregate amount of the contracted revenue allocated to our unsatisfied (or partially unsatisfied) performance obligations was $190,564 million. We expect to recognize revenue as we satisfy our remaining performance obligations as follows: 1) equipment-related remaining performance obligation of $27,534 million of which 34%, 57% and 89% is expected to be recognized within 1, 2 and 5 years, respectively, and the remaining thereafter; and 2) services-related remaining performance obligations of $163,029 million of which 12%, 42%, 69% and 86% is expected to be recognized within 1, 5, 10 and 15 years, respectively, and the remaining thereafter. Contract modifications could affect both the timing to complete as well as the amount to be received as we fulfill the related remaining performance obligations. --- ## Modified Risk: NOTE 18. EARNINGS PER SHARE (EPS) INFORMATION **Key changes:** - Updated: "202520242023(Earnings for per-share calculation, shares in millions, per-share amounts in dollars)DilutedBasicDilutedBasicDilutedBasicNet income (loss) from continuing operations(a)$8,598 $8,601 $6,670 $6,670 $9,446 $9,449 Preferred stock dividends and other and accretion of preferred share repurchase(b) - - - - (295)(295)Net income (loss) from continuing operations attributable to common shareholders(a)8,598 8,601 6,670 6,670 9,151 9,154 Net income (loss) from discontinued operations103 103 (114)(114)33 33 Net income (loss) attributable to common shareholders(a)8,701 8,704 6,556 6,556 9,184 9,187 Shares of common stock outstanding1,061 1,061 1,085 1,085 1,089 1,089 Employee compensation-related shares (including stock options)8 - 10 - 10 - Total average equivalent shares1,068 1,061 1,094 1,085 1,099 1,089 EPS from continuing operations$8.05 $8.11 $6.09 $6.15 $8.33 $8.41 EPS from discontinued operations0.10 0.10 (0.10)(0.11)0.03 0.03 Net EPS8.14 8.20 5.99 6.04 8.36 8.44 Potentially dilutive securities(c)1 6 24 Employee compensation-related shares (including stock options)" **Prior (2025):** 202420232022(Earnings for per-share calculation, shares in millions, per-share amounts in dollars)DilutedBasicDilutedBasicDilutedBasicEarnings (loss) from continuing operations$6,670 $6,670 $9,446 $9,449 $1,350 $1,350 Preferred stock dividends and other and accretion of preferred share repurchase(a) - - (295)(295)(285)(285)Earnings (loss) from continuing operations attributable to common shareholders 6,670 6,670 9,151 9,154 1,065 1,065 Earnings (loss) from discontinued operations (114)(114)33 33 (1,014)(1,014)Net earnings (loss) attributable to common shareholders 6,556 6,556 9,184 9,187 51 51 Shares of common stock outstanding1,085 1,085 1,089 1,089 1,096 1,096 Employee compensation-related shares (including stock options)10 - 10 - 6 - Total average equivalent shares1,094 1,085 1,099 1,089 1,101 1,096 Earnings (loss) from continuing operations$6.09 $6.15 $8.33 $8.41 $0.97 $0.97 Earnings (loss) from discontinued operations(0.10)(0.11)0.03 0.03 (0.92)(0.93)Net earnings (loss) per share5.99 6.04 8.36 8.44 0.05 0.05 Potentially dilutive securities(b)6 24 44 Preferred stock dividends and other and accretion of preferred share repurchase(a) Earnings (loss) from discontinued operations Employee compensation-related shares (including stock options) **Current (2026):** 202520242023(Earnings for per-share calculation, shares in millions, per-share amounts in dollars)DilutedBasicDilutedBasicDilutedBasicNet income (loss) from continuing operations(a)$8,598 $8,601 $6,670 $6,670 $9,446 $9,449 Preferred stock dividends and other and accretion of preferred share repurchase(b) - - - - (295)(295)Net income (loss) from continuing operations attributable to common shareholders(a)8,598 8,601 6,670 6,670 9,151 9,154 Net income (loss) from discontinued operations103 103 (114)(114)33 33 Net income (loss) attributable to common shareholders(a)8,701 8,704 6,556 6,556 9,184 9,187 Shares of common stock outstanding1,061 1,061 1,085 1,085 1,089 1,089 Employee compensation-related shares (including stock options)8 - 10 - 10 - Total average equivalent shares1,068 1,061 1,094 1,085 1,099 1,089 EPS from continuing operations$8.05 $8.11 $6.09 $6.15 $8.33 $8.41 EPS from discontinued operations0.10 0.10 (0.10)(0.11)0.03 0.03 Net EPS8.14 8.20 5.99 6.04 8.36 8.44 Potentially dilutive securities(c)1 6 24 Employee compensation-related shares (including stock options) --- ## Modified Risk: For the year ended December 31, 2023 **Key changes:** - Updated: "(a) Includes a tax benefit related to GE Healthcare for the year ended December 31, 2023 relating to a retroactive 2023 Internal Revenue Service (IRS) guidance concerning foreign tax credits and accounting method changes, completion of the 2022 U.S." - Updated: "ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONSDecember 31, 2025December 31, 2024Cash, cash equivalents and restricted cash(a)$1,126 $1,327 Current receivables35 13 Property, plant, and equipment - net 26 40 All other assets648 438 Deferred income taxes21 24 Assets of discontinued operations(b)$1,855 $1,841 Accounts payable$35 $30 Non-current compensation and benefits32 33 All other liabilities1,347 1,254 Liabilities of discontinued operations(b)$1,413 $1,317 Cash, cash equivalents and restricted cash(a) All other assets Accounts payable All other liabilities" **Prior (2025):** Earnings (loss) of discontinued operations, net of taxes The tax benefit for the year ended December 31, 2023 for GE HealthCare relates to retroactive 2023 Internal Revenue Service (IRS) guidance concerning foreign tax credits and accounting method changes and completion of the 2022 U.S. federal tax return, as well as net tax benefit resulting from preparatory steps for the spin-off. 2024 FORM 10-K 49 2024 FORM 10-K 49 2024 FORM 10-K 49 ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONSDecember 31, 2024December 31, 2023Cash, cash equivalents and restricted cash(a)$1,327 $3,762 Current receivables13 7,324 Inventories, including deferred inventory costs - 8,245 Goodwill - 4,437 Other intangible assets - net - 1,053 Contract and other deferred assets - 8,959 Property, plant, and equipment - net 40 5,306 All other assets438 5,750 Deferred income taxes24 3,093 Assets of discontinued operations(b)(c)$1,841 $47,927 Accounts payable$30 $8,475 Contract liabilities, progress collections & deferred income - 15,255 Long-term borrowings - 294 Non-current compensation and benefits33 3,589 All other liabilities1,254 11,600 Liabilities of discontinued operations(b)(c)$1,317 $39,213 Cash, cash equivalents and restricted cash(a) All other assets Accounts payable All other liabilities **Current (2026):** (a) Includes a tax benefit related to GE Healthcare for the year ended December 31, 2023 relating to a retroactive 2023 Internal Revenue Service (IRS) guidance concerning foreign tax credits and accounting method changes, completion of the 2022 U.S. federal tax return, as well as net tax benefit resulting from preparatory steps for the spin-off. ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONSDecember 31, 2025December 31, 2024Cash, cash equivalents and restricted cash(a)$1,126 $1,327 Current receivables35 13 Property, plant, and equipment - net 26 40 All other assets648 438 Deferred income taxes21 24 Assets of discontinued operations(b)$1,855 $1,841 Accounts payable$35 $30 Non-current compensation and benefits32 33 All other liabilities1,347 1,254 Liabilities of discontinued operations(b)$1,413 $1,317 Cash, cash equivalents and restricted cash(a) All other assets Accounts payable All other liabilities --- ## Modified Risk: NOTE 10. BORROWINGS **Key changes:** - Updated: "December 3120252024MaturitiesAmountAverage RateAmountAverage RateCurrent portion of long-term borrowings Senior notes2026$1,504 4.00 %$1,9524.03 % Subordinated notes and other2026157 87 Other short-term 25 - Total short-term borrowings$1,686 $2,039 MaturitiesAmountAverage RateAmountAverage RateSenior notes(a)2027 - 2050$16,773 4.00 %$15,467 4.03 %Subordinated notes2035 - 20371,456 4.40 %1,330 4.43 %Other580 437 Total long-term borrowings$18,808 $17,234 Total borrowings$20,494 $19,273 (a) In the third quarter of 2025, GE Aerospace issued a total of $2,000 million in aggregate principal amount of senior unsecured debt, comprised of $1,000 million of 4.3% senior notes due 2030, and $1,000 million of 4.9% senior notes due 2036 (collectively, the "Notes")." **Prior (2025):** December 3120242023MaturitiesAmountAverage RateAmountAverage RateCurrent portion of long-term borrowings Senior unsecured2025$1,952 4.03 %$1,0443.99 % Subordinated notes and other202587 27 Other short-term - 37 Total short-term borrowings$2,039 $1,108 MaturitiesAmountAverage RateAmountAverage RateSenior unsecured2026 - 2055$15,467 4.03 %$17,509 3.99 %Subordinated notes2035 - 20371,330 4.43 %1,383 4.43 %Other437 525 Total long-term borrowings$17,234 $19,417 Total borrowings$19,273 $20,525 Long-term debt maturities are below: 20252026202720282029ThereafterTotalLong-term debt maturities2,039 (a)1,304 1,493 452 1,445 12,540 19,273 (a) Fixed and floating rate notes of $315 million contain put options with exercise dates in 2025, which contractually mature after 2025. **Current (2026):** December 3120252024MaturitiesAmountAverage RateAmountAverage RateCurrent portion of long-term borrowings Senior notes2026$1,504 4.00 %$1,9524.03 % Subordinated notes and other2026157 87 Other short-term 25 - Total short-term borrowings$1,686 $2,039 MaturitiesAmountAverage RateAmountAverage RateSenior notes(a)2027 - 2050$16,773 4.00 %$15,467 4.03 %Subordinated notes2035 - 20371,456 4.40 %1,330 4.43 %Other580 437 Total long-term borrowings$18,808 $17,234 Total borrowings$20,494 $19,273 (a) In the third quarter of 2025, GE Aerospace issued a total of $2,000 million in aggregate principal amount of senior unsecured debt, comprised of $1,000 million of 4.3% senior notes due 2030, and $1,000 million of 4.9% senior notes due 2036 (collectively, the "Notes"). Interest payments on the Notes are due semi-annually until maturity. See Note 22 for further information about borrowings and associated hedges. Long-term debt maturities are below: 20262027202820292030ThereafterTotalLong-term debt maturities1,661 (a)1,693 480 1,639 1,700 13,296 20,469 (a) Fixed and floating rate notes of $324 million contain put options with exercise dates in 2026, which contractually mature after 2026. --- ## Modified Risk: For the year ended December 31, 2025 **Key changes:** - Updated: "GE Vernova 46 2025 FORM 10-K 46 2025 FORM 10-K 46 2025 FORM 10-K For the year ended December 31, 2024GE VernovaBank BPH & OtherTotalTotal revenue$7,244 $ - $7,244 Cost of equipment and services sold(6,074) - (6,074)Other income, costs and expenses(1,299)(21)(1,320)Net Income (loss) of discontinued operations before income taxes(129)(21)(150)Benefit (provision) for income taxes27 13 40 Net Income (loss) of discontinued operations, net of taxes(102)(8)(110)Gain (loss) on disposal before income taxes - 21 21 Benefit (provision) for income taxes - (1)(1)Gain (loss) on disposal, net of taxes - 19 19 Net Income (loss) from discontinued operations, net of taxes$(102)$12 $(91)" **Prior (2025):** Earnings (loss) of discontinued operations, net of taxes For the year ended December 31, 2022GE VernovaGE HealthCareBank BPH & OtherTotalTotal revenue$29,645 $18,457 $ - $48,102 Cost of equipment and services sold(25,981)(11,265) - (37,246)Other income, costs and expenses(5,985)(4,842)(808)(11,636)Earnings (loss) of discontinued operations before income taxes(2,322)2,350 (808)(780)Benefit (provision) for income taxes171 (521)(32)(382)Earnings (loss) of discontinued operations, net of taxes(2,151)1,829 (841)(1,163)Gain (loss) on disposal before income taxes - 6 58 64 Benefit (provision) for income taxes - 11 139 150 Gain (loss) on disposal, net of taxes - 17 196 213 Earnings (loss) from discontinued operations, net of taxes$(2,151)$1,846 $(644)$(949) **Current (2026):** GE Vernova 46 2025 FORM 10-K 46 2025 FORM 10-K 46 2025 FORM 10-K For the year ended December 31, 2024GE VernovaBank BPH & OtherTotalTotal revenue$7,244 $ - $7,244 Cost of equipment and services sold(6,074) - (6,074)Other income, costs and expenses(1,299)(21)(1,320)Net Income (loss) of discontinued operations before income taxes(129)(21)(150)Benefit (provision) for income taxes27 13 40 Net Income (loss) of discontinued operations, net of taxes(102)(8)(110)Gain (loss) on disposal before income taxes - 21 21 Benefit (provision) for income taxes - (1)(1)Gain (loss) on disposal, net of taxes - 19 19 Net Income (loss) from discontinued operations, net of taxes$(102)$12 $(91) --- *Data sourced from SEC EDGAR. Last updated 2026-05-05.*