General Electric (GE) 10-K risk factor changes: FY2020 vs FY2019

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[removed: FORM 10-K][added: FORM 10-K]

For the fiscal year [removed: ended December] [added: ended December] 31, [removed: 2019][added: 2020]

[removed: ][added: ]

GENERAL ELECTRIC [removed: COMPANY][added: COMPANY]

| New York | | | | [added: | | | | | | | |] 14-0689340 | [added: | |]

| (State or other jurisdiction of incorporation or organization) | | | | [added: | | | | | | | |] (I.R.S. Employer Identification No.) | [added: | |]

| 5 Necco Street, | [added: | |] Boston | [added: | |] MA | | [added: | | | |] 02210 | [added: | |]

| (Address of principal executive offices) | | | | [added: | | | | | | | |] (Zip Code) | [added: | |]

(Registrant’s telephone number, including area code) [removed: (617) 443-3000][added: (617) 443-3000]

| Title of each class | [added: | |] Trading Symbol(s) | [added: | |] Name of each exchange on which registered | [added: | |]

| Common stock, par value $0.06 per share | [added: | |] GE | [added: | |] New York Stock Exchange | [added: | |]

| [removed: Floating Rate] [added: 0.875%] Notes due [removed: 2020] [added: 2025] | [added: | |] GE [removed: 20E] [added: 25] | [added: | |] New York Stock Exchange | [added: | |]

| 0.375% Notes due 2022 | [added: | |] GE 22A | [added: | |] New York Stock Exchange | [added: | |]

| 1.250% Notes due 2023 | [added: | |] GE 23E | [added: | |] New York Stock Exchange | [added: | |]

| [removed: 0.875%] [added: 1.500%] Notes due [removed: 2025] [added: 2029] | [added: | |] GE [removed: 25] [added: 29] | [added: | |] New York Stock Exchange | [added: | |]

| 1.875% Notes due 2027 | [added: | |] GE 27E | [added: | |] New York Stock Exchange | [added: | |]

| [removed: 1.500%] [added: 2.125%] Notes due [removed: 2029] [added: 2037] | [added: | |] GE [removed: 29] [added: 37] | [added: | |] New York Stock Exchange | [added: | |]

| 7 1/2% Guaranteed Subordinated Notes due 2035 | [added: | |] GE /35 | [added: | |] New York Stock Exchange | [added: | |]

| Securities Registered Pursuant to Section 12(g) of the Act: | [added: | |]

| (Title of class) | [added: | |]

Yes [removed: þ No] ¨ [added: No þ]

| Large accelerated filer | [added: | |] ☑ | [added: | |] Accelerated filer | [added: | |] ☐ | [added: | |]

| Non-accelerated filer | [added: | |] ☐ | [added: | |] Smaller reporting company | [added: | |] ☐ | [added: | |]

| Emerging growth company | [added: | |] ☐ | | | [added: | | | | | |]

The aggregate market value of the outstanding common equity of the registrant not held by affiliates as of the last business day of the registrant’s most recently completed second fiscal quarter was at least [removed: $90.1] [added: $58.9] billion.

There were [removed: 8,740,232,000] [added: 8,767,942,000] shares of [removed: voting] common stock with a par value of $0.06 outstanding at January 31, [removed: 2020.][added: 2021.]

The definitive proxy statement relating to the registrant’s Annual Meeting of Shareholders, to be held May [removed: 5, 2020,] [added: 4, 2021,] is incorporated by reference into Part III to the extent described therein.

| [removed: TABLE] [added: TABLE] OF [removed: CONTENTS] [added: CONTENTS] | | [added: | | | |]

| | [added: | |] Page | [added: | |]

| [removed: About] [added: [About] General [removed: Electric] [added: Electric](#id348b41460ad4867960687efa04c98df_10)] | [removed: [3](#s8D740A5AE8305FCAB4EA859746530CE4)] | [added: | [4](#id348b41460ad4867960687efa04c98df_10) | | |]

| [Management’s Discussion and Analysis of Financial Condition and Results of Operations [removed: (MD&A)](#sC9113241D1255E41A91324DDF58B62D1)] [added: (MD&A)](#id348b41460ad4867960687efa04c98df_13)] | [removed: [4](#s0E779B314DF554BFA1B1AFEF81C4B9BB)] | [added: | [5](#id348b41460ad4867960687efa04c98df_13) | | |]

| [Consolidated [removed: Results](#sB7EACF62E7DE5CAA8E95C8E1757B36F8)] [added: Results](#id348b41460ad4867960687efa04c98df_19)] | [removed: [4](#sF1A5BD69CBB6506998A843CB8257B9DF)] | [added: | [6](#id348b41460ad4867960687efa04c98df_19) | | |]

| [Segment [removed: Operations](#s7381BD2155A25ACEA92F2BA1661C5AA8)] [added: Operations](#id348b41460ad4867960687efa04c98df_25)] | [removed: [8](#s03BA57EE10D354D9A23D9F67AE94227E)] | [added: | [9](#id348b41460ad4867960687efa04c98df_25) | | |]

| [removed: [Corporate Items] [added: Corporate items] and [removed: Eliminations](#sBB85EC94346D5F8997C851F77ECA528F)] [added: eliminations] | [removed: [20](#s02D2697D17BE540B9B87ACE99565025D)] | [added: | 31 | | | 28 | | | | | | 5 | | | (11) | | | (99) | | |]

| [Other Consolidated [removed: Information](#sD76BAE65E8F15CD8801A6FEE76A8EACE)] [added: Information](#id348b41460ad4867960687efa04c98df_49)] | [removed: [22](#sAE4B759ACC445C19B3CFE9B9762163ED)] | [added: | [21](#id348b41460ad4867960687efa04c98df_49) | | |]

| [removed: Capital] [added: [Capital] Resources and [removed: Liquidity] [added: Liquidity](#id348b41460ad4867960687efa04c98df_52)] | [removed: [25](#s880B4C1A4FA0518AA0AA93C2AD8B9D93)] | [added: | [24](#id348b41460ad4867960687efa04c98df_52) | | |]

| [Critical Accounting [removed: Estimates](#s6F250B539203522BA4B892D3FD9D4873)] [added: Estimates](#id348b41460ad4867960687efa04c98df_67)] | [removed: [34](#sf445a7173d2f4341955e18018674da7e)] | [added: | [31](#id348b41460ad4867960687efa04c98df_67) | | |]

| [Other [removed: Items](#sE374FEFFEDBE5DBD82A0BDC414609B15)] [added: Items](#id348b41460ad4867960687efa04c98df_73)] | [removed: [37](#sE87E05D4E291576CBBC7307C53EED142)] | [added: | [33](#id348b41460ad4867960687efa04c98df_73) | | |]

| [removed: Non-GAAP] [added: [Non-GAAP] Financial [removed: Measures] [added: Measures](#id348b41460ad4867960687efa04c98df_76)] | [removed: [43](#sECCACDF046055A7597E271AEC343D7FA)] | [added: | [39](#id348b41460ad4867960687efa04c98df_76) | | |]

[removed: | [Other Financial Data](#s99A04311DC6A56C3BCB6CB7BB88834D4) | [49](#sC2D59BB3B49458E4A678023A3B378EB5) |][added: OTHER FINANCIAL DATA]

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.☑

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| [Consolidated Statement of Comprehensive Income (Loss)](#id348b41460ad4867960687efa04c98df_115) | | | [62](#id348b41460ad4867960687efa04c98df_115) | | |

| [Consolidated Statement of Changes in Shareholders' Equity](#id348b41460ad4867960687efa04c98df_118) | | | [62](#id348b41460ad4867960687efa04c98df_118) | | |

| [Note 6 Inventories, Including Deferred Inventory Costs](#id348b41460ad4867960687efa04c98df_145) | | | [74](#id348b41460ad4867960687efa04c98df_145) | | |

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| [Note 24 Intercompany Transactions](#id348b41460ad4867960687efa04c98df_244) | | | [102](#id348b41460ad4867960687efa04c98df_244) | | |

| [Note 25 Operating Segments](#id348b41460ad4867960687efa04c98df_247) | | | [102](#id348b41460ad4867960687efa04c98df_247) | | |

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| [Signatures](#id348b41460ad4867960687efa04c98df_280) | | | [112](#id348b41460ad4867960687efa04c98df_280) | | |

- the continuing severity, magnitude and duration of the COVID-19 pandemic, including impacts of the pandemic, of businesses’ and governments’ responses to the pandemic and of individual factors such as aviation passenger confidence on our operations and personnel, and on commercial activity and demand across our and our customers’ businesses, and on global supply chains;

- the extent to which the COVID-19 pandemic and related impacts will continue to adversely impact our business operations, financial performance, results of operations, financial position, the prices of our securities and the achievement of our strategic objectives;

GE 2020 FORM 10-K 3

See the Segment Operations section within Management’s Discussion and Analysis of Financial Condition (MD&A) for segment business descriptions and product and service offerings.

The strength and talent of our workforce are critical to the success of our businesses, and we continually strive to attract, develop and retain personnel commensurate with the needs of our businesses in their operating environments.

The Company’s human capital management priorities are designed to support the execution of our business strategy and improve organizational effectiveness.

We monitor various factors across our priorities, including as a part of our business operating reviews during the year.

The priorities focus on:

- Protecting the health and safety of our workforce: GE is committed to establishing and maintaining effective health and safety standards and protocols across our businesses, ensuring continuous process improvement and providing ongoing education.

- Sustaining a Company culture based in leadership behaviors of humility, transparency and focus with a commitment to unyielding integrity: GE’s organizational culture supports talent attraction, engagement and retention and ensures our ways of working are strongly connected to our goals.

- Developing and managing our talent to best support our organizational goals: GE’s approach to talent management aims to ensure strong individual and company performance; our development offerings are designed to support these goals.

- Promoting inclusion and diversity across the enterprise: GE is committed to fostering an inclusive culture, where everyone feels empowered to do their best work.

Compared to the year-end 2019 figure of 205,000, the number of those employed at year-end 2020 decreased primarily as a result of restructuring, including actions at GE businesses to manage risk and proactively mitigate the financial impact from COVID-19 and efforts to reduce Corporate costs, and business exits.

GE’s relationship with employee-representative organizations outside the U.S. takes many forms, including in Europe where GE engages employees’ representatives’ bodies such as works councils and trade unions in accordance with local law.

GE 2020 FORM 10-K 4

Unless otherwise noted, tables are presented in U.S. dollars in millions.

Results for the years ended December 31, 2020 versus 2019 are discussed within this report.

Refer to our Annual Report on Form 10-K for the year ended December 31, 2019 for discussions of results for the years ended December 31, 2019 versus 2018.

Effective December 31, 2020, in order to enhance our financial statement presentation, we voluntarily made the following reporting changes for all periods presented:

- changed our presentation of GE Industrial restructuring program costs.

Previously these costs were recorded within Corporate Items and Eliminations.

Now these costs are recorded within segment profit, except for significant, higher-cost programs that continue to be recorded within Corporate Items and Eliminations.

This change better aligns restructuring expense with cash spend at the segments, driving accountability in both managing costs and benefits;

- changed the presentation of our Statement of Financial Position to reflect the classification of assets and liabilities into current and non-current and revised the definition of operating working capital in our Statement of Cash Flows, to drive increased transparency to operational drivers for near- and long-term cash needs and enhanced linkage to free cash flows metrics;

- began presenting research and development (R&D) expenses separately as part of costs and expenses in our consolidated Statement of Earnings (Loss) to provide increased transparency to R&D spend and trends as part of GE's total investment in innovation.

These costs were previously reported in costs of goods and services sold; and

- ceased reporting GE Capital as an equity method investment within the GE Industrial column.

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| 2.125% Notes due 2037 | GE 37 | New York Stock Exchange |

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| Note 6 Inventories | [81](#sBEAE8201876653BBA0337AC59906730D) |

| Note 24 Cash Flows Information | [110](#s75CD78E23BAA54408293837C7CC4A7C6) |

| Note 25 Intercompany Transactions | [112](#s4747A76AF3EF5414919BC0952CE9B9D6) |

| Note 26 Operating Segments | [113](#s4188916E7ACE5BEAACF211A5EF25FD5F) |

| Note 27 Guarantor Financial Information | [115](#s86DE8FB0195157ED9C49A48C26CA7990) |

| Note 29 Quarterly Information (unaudited) | [120](#sC476ED01E3655708ABA276325BD92892) |

| [Signatures](#s7E9ED2D938A75A8E8A33DA864E068ABB) | [127](#s1B1F8C1F952D517184C8D5965D6AC1B5) |

| ABOUT GENERAL ELECTRIC | | |

ABOUT GENERAL ELECTRIC

The Power segment offers technologies, solutions, and services related to energy production, including gas and steam turbines, generators, and power generation services.

The Renewable Energy segment provides wind turbine platforms, hardware and software, offshore wind turbines, solutions, products and services to hydropower industry, blades for onshore and offshore wind turbines, and high voltage equipment.

The Aviation segment provides jet engines and turboprops for commercial and military airframes, maintenance, component repair, and overhaul services, as well as replacement parts, additive machines and materials, and engineering services.

The Capital segment leases and finances aircraft, aircraft engines and helicopters, provides financial and underwriting solutions, and manages our run-off insurance operations.

A majority of such employees are represented by union locals that are affiliated with the IUE-CWA, The Industrial Division of the Communication Workers of America, AFL-CIO, CLC.

In August 2019, most of GE's U.S. unions, including the IUE-CWA, ratified new four-year labor agreements to replace the current agreements.

GE 2019 FORM 10-K 3

| MD&A | | |

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)

| • | GE – the adding together of all affiliates except GE Capital, whose continuing operations are presented on a one-line basis, giving effect to the elimination of transactions among such affiliates. As GE presents the continuing operations of GE Capital on a one-line basis, any intercompany profits resulting from transactions between GE and GE Capital are eliminated at the GE level. We present the results of GE in the center column of our consolidated Statements of Earnings (Loss), Financial Position and Cash Flows. |

| • | GE Industrial – GE excluding the continuing operations of GE Capital. We believe that this provides investors with a view as to the results of our industrial businesses and corporate items. |

| • | Industrial segment – the sum of our four industrial reportable segments, without giving effect to the elimination of transactions among such segments or between these segments and our financial services segment. This provides investors with a view as to the results of our industrial segments, without inter-segment eliminations and corporate items. |

This document contains “forward-looking statements” - for details about the uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements, see the Risk Factors and Forward-Looking Statements sections.

As a result of these actions, we recognized a pre-tax increase in non-operating benefit costs of $0.6 billion in the fourth quarter of 2019.

As a result of our testing, we identified a premium deficiency resulting in a $1.0 billion pre-tax ($0.8 billion after-tax) charge to earnings.

In the third quarter of 2019, we completed a tender offer to purchase $4.8 billion of GE senior unsecured debt.

GE 2019 FORM 10-K 4

| MD&A | CONSOLIDATED RESULTS | |

As a result, we reclassified our Transportation segment to discontinued operations in the first quarter of 2019, for all periods presented, and recorded a gain of $3.5 billion ($2.5 billion after-tax) in discontinued operations.

Total proceeds from the sale of the business, including the sale of Wabtec common stock during 2019 were $6.2 billion.

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| Part II | | | | | [added: | | | | | | | | | |]

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| Part III | | | | | [added: | | | | | | | | | |]

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| Part IV | | | | | [added: | | | | | | | | | |]

[removed: | Signatures | | | | 127 |][added: SIGNATURES]

[removed: | (a) | Incorporated] [added: (a)Incorporated] by reference to “Compensation” in the [removed: 2020] [added: 2021] Proxy Statement. [removed: |]

[removed: | (b) | Incorporated] [added: (b)Incorporated] by reference to “Stock Ownership Information” in the [removed: 2020] [added: 2021] Proxy Statement. [removed: |]

[removed: | (c) | Incorporated] [added: (c)Incorporated] by reference to “Related Person Transactions” and “How We Assess Director Independence” in the [removed: 2020] [added: 2021] Proxy Statement. [removed: |]

[removed: | (d) | Incorporated] [added: (d)Incorporated] by reference to “Independent Auditor Information” in the [removed: 2020] [added: 2021] Proxy Statement. [removed: |]

[removed: SIGNATURES][added: | Signatures | | | | | | | | | | | | 112 | | |]

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this annual report on Form 10-K for the fiscal year ended December 31, [removed: 2019,] [added: 2020,] to be signed on its behalf by the undersigned, and in the capacities indicated, thereunto duly authorized in the City of Boston and Commonwealth of Massachusetts on the [removed: 24th] [added: 12th] day of February [removed: 2020.][added: 2021.]

| | [removed: Jamie S. Miller] [added: | | Carolina Dybeck Happe] Senior Vice President and Chief Financial Officer [removed: (Principal Financial Officer)] | [added: | | | | | | | | | | | | | |]

| | [added: | |] Signer | | [added: | | | |] Title | | [added: | | | |] Date | [added: | |]

| | [added: | |] /s/ Thomas S. Timko | | [added: | | | |] Principal Accounting Officer | | [added: | | | |] February [removed: 24, 2020] [added: 12, 2021] | [added: | |]

| | [added: | |] Thomas S. Timko Vice President, Chief Accounting Officer and Controller | | | | | [added: | | | | | | | | | |]

| | [added: | |] /s/ H. Lawrence Culp, Jr. | | [added: | | | |] Principal Executive Officer | | [added: | | | |] February [removed: 24, 2020] [added: 12, 2021] | [added: | |]

| | [added: | |] H. Lawrence Culp, Jr.* Chairman of the Board of Directors | | | | | [added: | | | | | | | | | |]

| | [added: | |] Sébastien M. Bazin* | | [added: | | | |] Director | | | [added: | | | | | |]

| | [added: | |] Francisco D'Souza* | | [added: | | | |] Director | | | [added: | | | | | |]

| | [added: | |] Edward P. Garden* | | [added: | | | |] Director | | | [added: | | | | | |]

| | [added: | |] Thomas W. Horton* | | [added: | | | |] Director | | | [added: | | | | | |]

| | [added: | |] Risa Lavizzo-Mourey* | | [added: | | | |] Director | | | [added: | | | | | |]

| | [added: | |] Catherine A. Lesjak* | | [added: | | | |] Director | | | [added: | | | | | |]

| | [added: | |] Paula Rosput Reynolds* | | [added: | | | |] Director | | | [added: | | | | | |]

| | [added: | |] Leslie F. Seidman* | | [added: | | | |] Director | | | [added: | | | | | |]

| | [added: | |] James S. Tisch* | | [added: | | | |] Director | | | [added: | | | | | |]

| | [added: | |] A majority of the Board of Directors | | | | | [added: | | | | | | | | | |]

| *By | [added: | |] /s/ Christoph A. Pereira | | | | | [added: | | | | | | | | | |]

| | [added: | |] Christoph A. Pereira Attorney-in-fact | | | | | [added: | | | | | | | | | |]

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GE 2020 FORM 10-K 111

| By | | | /s/ Thomas S. Timko | | |

| | | | Thomas S. Timko Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer) | | |

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| | | | /s/ Carolina Dybeck Happe | | | | | | Principal Financial Officer | | | | | | February 12, 2021 | | |

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| | | | Ashton B. Carter | | | | | | Director | | | | | | | | |

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| | | | February 12, 2021 | | | | | | | | | | | | | | |

GE 2020 FORM 10-K 112

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GE 2019 FORM 10-K 126

| By | /s/ Jamie S. Miller |

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| | /s/ Jamie S. Miller | | Principal Financial Officer | | February 24, 2020 |

| | Jamie S. Miller Senior Vice President and Chief Financial Officer | | | | |

| | February 24, 2020 | | | | |

GE 2019 FORM 10-K 127