filings.toolsItem 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
AUDITOR'S REPORT
Report of Independent Registered Public Accounting Firm
To the stockholders and the Board of Directors of GE Vernova Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated and combined statements of financial position of GE Vernova Inc. and subsidiaries (the
"Company") as of December 31, 2024, and 2023, the related consolidated and combined statements of income (loss), comprehensive
income (loss), changes in equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes
(collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the
financial position of the Company as of December 31, 2024, and 2023, and the results of its operations and its cash flows for each of the
three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of
America.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the
Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting
Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The
Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our
audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the
amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits
provides a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was
communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to
the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit
matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical
audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Sales of services - Revenue recognition on certain Power long-term service agreements - Refer to Note****s 2 and 9 t****o the financial
statements
Critical Audit Matter Description
The Company enters into long-term service agreements with customers within its Power segment. These agreements require the Company
to provide preventative and routine maintenance services, outage services, and stand-by “warranty-type” services, which generally range
from 5 to 25 years. Revenue for these agreements is recognized using the percentage of completion method, based on costs incurred
relative to total estimated costs over the contract term. As part of the revenue recognition process, the Company estimates both customer
payments that are expected to be received and costs to perform maintenance services over the contract term. Key assumptions within
those estimates that require significant judgment from management include: (a) how the customer will utilize the assets covered over the
contract term, (b) the expected timing and extent of future maintenance and outage services, (c) the future cost of materials, labor, and
other resources, and (d) forward looking information concerning market conditions.
Given the complexity involved with evaluating the estimates, which includes significant judgment necessary to estimate future costs,
auditing management’s key assumptions within the estimates required a high degree of auditor judgment and extensive audit effort,
including the involvement of professionals with specialized skills and industry knowledge.
How the Critical Audit Matter Was Addressed in the Audit
Our auditing procedures over the estimates and key assumptions described above related to the amount and timing of revenue recognition
of the long-term service agreements, within the Power segment, included the following, among others:
- We evaluated management’s risk assessment process through observation of key meetings, including inspection of
documentation, addressing contract status and current market conditions.
- We evaluated the appropriateness and consistency of management’s methods and key assumptions to develop cost estimates,
including expected timing and extent of future maintenance and outage services as well as the future cost of materials, labor and
other resources, all of which impact contract margin.
- We tested management’s utilization assumptions for timing and extent of future maintenance and overhaul services projected for
the contract term by comparing current estimates to historical information and forward-looking market conditions.
2024 FORM 10-K 50
- We tested management’s process for estimating the timing and amount of costs associated with maintenance, outage, and other
major events throughout the contract term, including comparing estimates to historical cost experience, performing a retrospective
review, performing analytical procedures, and utilizing specialists to evaluate engineering studies used by the Company to
estimate the useful life of capital parts of certain installed equipment.
| /s/ | DELOITTE & TOUCHE LLP |
| Boston, Massachusetts | |
| February 6, 2025 | |
| We have served as the Company's auditor since 2022. |
2024 FORM 10-K 51
| CONSOLIDATED AND COMBINED STATEMENT OF INCOME (LOSS) | |||
| For the years ended December 31 (In millions, except per share amounts) | 2024 | 2023 | 2022 |
| Sales of equipment | $18,952 | $18,258 | $15,819 |
| Sales of services | 15,983 | 14,981 | 13,835 |
| Total revenues | 34,935 | 33,239 | 29,654 |
| Cost of equipment | 17,989 | 18,705 | 16,972 |
| Cost of services | 10,861 | 9,716 | 9,224 |
| Gross profit | 6,085 | 4,818 | 3,458 |
| Selling, general, and administrative expenses | 4,632 | 4,845 | 5,360 |
| Research and development expenses | 982 | 896 | 979 |
| Operating income (loss) | 471 | (923) | (2,881) |
| Interest and other financial charges – net | 120 | (98) | (151) |
| Non-operating benefit income | 536 | 567 | 188 |
| Other income (expense) – net (Note 19) | 1,372 | 324 | 370 |
| Income (loss) before income taxes | 2,498 | (130) | (2,474) |
| Provision (benefit) for income taxes (Note 15) | 939 | 344 | 248 |
| Net income (loss) | 1,559 | (474) | (2,722) |
| Net loss (income) attributable to noncontrolling interests | (7) | 36 | (14) |
| Net income (loss) attributable to GE Vernova | $1,552 | $(438) | $(2,736) |
| Earnings (loss) per share attributable to GE Vernova (Note 18): | |||
| Basic | $5.65 | $(1.60) | $(10.00) |
| Diluted | $5.58 | $(1.60) | $(10.00) |
| Weighted-average number of common shares outstanding: | |||
| Basic | 275 | 274 | 274 |
| Diluted | 278 | 274 | 274 |
2024 FORM 10-K 52
| CONSOLIDATED AND COMBINED STATEMENT OF FINANCIAL POSITION | ||
| December 31 (In millions, except share and per share amounts) | 2024 | 2023 |
| Cash, cash equivalents, and restricted cash | $8,205 | $1,551 |
| Current receivables – net (Note 4) | 8,174 | 7,409 |
| Due from related parties (Note 24) | 4 | 80 |
| Inventories, including deferred inventory costs (Note 5) | 8,587 | 8,253 |
| Current contract assets (Note 9) | 8,621 | 8,339 |
| All other current assets (Note 10) | 562 | 352 |
| Assets of business held for sale (Note 3) | — | 1,444 |
| Current assets | 34,153 | 27,428 |
| Property, plant, and equipment – net (Note 6) | 5,150 | 5,228 |
| Goodwill (Note 8) | 4,263 | 4,437 |
| Intangible assets – net (Note 8) | 813 | 1,042 |
| Contract and other deferred assets (Note 9) | 555 | 621 |
| Equity method investments (Note 11) | 2,149 | 3,555 |
| Deferred income taxes (Note 15) | 1,639 | 1,582 |
| All other assets (Note 10) | 2,763 | 2,228 |
| Total assets | $51,485 | $46,121 |
| Accounts payable and equipment project payables (Note 12) | $8,578 | $7,900 |
| Due to related parties (Note 24) | 24 | 532 |
| Contract liabilities and deferred income (Note 9) | 17,587 | 15,074 |
| All other current liabilities (Note 14) | 5,496 | 4,352 |
| Liabilities of business held for sale (Note 3) | — | 1,448 |
| Current liabilities | 31,685 | 29,306 |
| Deferred income taxes (Note 15) | 827 | 382 |
| Non-current compensation and benefits | 3,264 | 3,273 |
| All other liabilities (Note 14) | 5,116 | 4,780 |
| Total liabilities | 40,892 | 37,741 |
| Commitments and contingencies (Note 22) | ||
| Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 275,880,314 shares outstanding as of December 31, 2024 | 3 | — |
| Additional paid-in capital | 9,733 | — |
| Retained earnings | 1,611 | — |
| Treasury common stock, 226,290 shares at cost | (43) | — |
| Net parent investment | — | 8,051 |
| Accumulated other comprehensive income (loss) – net attributable to GE Vernova (Note 16) | (1,759) | (635) |
| Total equity attributable to GE Vernova | 9,546 | 7,416 |
| Noncontrolling interests | 1,047 | 964 |
| Total equity | 10,593 | 8,380 |
| Total liabilities and equity | $51,485 | $46,121 |
2024 FORM 10-K 53
| CONSOLIDATED AND COMBINED STATEMENT OF CASH FLOWS | |||
| For the years ended December 31 (In millions) | 2024 | 2023 | 2022 |
| Net income (loss) | $1,559 | $(474) | $(2,722) |
| Adjustments to reconcile net income (loss) to cash from (used for) operating activities | |||
| Depreciation and amortization of property, plant, and equipment (Note 6) | 895 | 724 | 779 |
| Amortization of intangible assets (Note 8) | 277 | 240 | 1,018 |
| (Gains) losses on purchases and sales of business interests | (1,147) | (209) | (21) |
| Principal pension plans – net (Note 13) | (376) | (405) | — |
| Other postretirement benefit plans – net (Note 13) | (290) | (313) | (206) |
| Provision (benefit) for income taxes (Note 15) | 939 | 344 | 248 |
| Cash recovered (paid) during the year for income taxes | (623) | (2) | (91) |
| Changes in operating working capital: | |||
| Decrease (increase) in current receivables | (1,289) | (837) | (870) |
| Decrease (increase) in due from related parties | (8) | (2) | (4) |
| Decrease (increase) in inventories, including deferred inventory costs | (641) | (240) | (949) |
| Decrease (increase) in current contract assets | (409) | 113 | 353 |
| Increase (decrease) in accounts payable and equipment project payables | 1,066 | (663) | 643 |
| Increase (decrease) in due to related parties | (398) | (53) | 124 |
| Increase (decrease) in contract liabilities and current deferred income | 2,799 | 2,812 | 1,282 |
| All other operating activities | 229 | 151 | 302 |
| Cash from (used for) operating activities | 2,583 | 1,186 | (114) |
| Additions to property, plant, and equipment and internal-use software | (883) | (744) | (513) |
| Dispositions of property, plant, and equipment | 25 | 60 | 53 |
| Purchases of and contributions to equity method investments | (114) | (83) | (393) |
| Sales of and distributions from equity method investments | 244 | 232 | 340 |
| Proceeds from principal business dispositions | 813 | — | — |
| All other investing activities | (122) | (199) | 191 |
| Cash from (used for) investing activities | (37) | (734) | (322) |
| Net increase (decrease) in borrowings of maturities of 90 days or less | (23) | 16 | 15 |
| Transfers from (to) Parent | 2,933 | (361) | 947 |
| All other financing activities | 742 | (63) | (151) |
| Cash from (used for) financing activities | 3,652 | (408) | 811 |
| Effect of currency exchange rate changes on cash, cash equivalents, and restricted cash | (147) | 22 | (87) |
| Increase (decrease) in cash, cash equivalents, and restricted cash, including cash classified within businesses held for sale | 6,051 | 66 | 288 |
| Less: Net increase (decrease) in cash classified within businesses held for sale | (603) | 582 | 21 |
| Increase (decrease) in cash, cash equivalents, and restricted cash | 6,654 | (516) | 267 |
| Cash, cash equivalents, and restricted cash at beginning of year | 1,551 | 2,067 | 1,800 |
| Cash, cash equivalents, and restricted cash as of December 31 | $8,205 | $1,551 | $2,067 |
| Supplemental disclosure of cash flows information | |||
| Cash paid during the year for interest | $(74) | $(83) | $(77) |
2024 FORM 10-K 54
| CONSOLIDATED AND COMBINED STATEMENT OF COMPREHENSIVE INCOME (LOSS) | |||
| For the years ended December 31 (In millions) | 2024 | 2023 | 2022 |
| Net income (loss) attributable to GE Vernova | $1,552 | $(438) | $(2,736) |
| Net loss (income) attributable to noncontrolling interests | (7) | 36 | (14) |
| Net income (loss) | $1,559 | $(474) | $(2,722) |
| Other comprehensive income (loss): | |||
| Currency translation adjustments – net of taxes | (397) | 114 | (254) |
| Benefit plans – net of taxes | (730) | 640 | 78 |
| Cash flow hedges – net of taxes | 6 | 69 | (22) |
| Other comprehensive income (loss) | $(1,120) | $823 | $(198) |
| Comprehensive income (loss) | $439 | $349 | $(2,920) |
| Comprehensive loss (income) attributable to noncontrolling interests | (11) | 34 | (16) |
| Comprehensive income (loss) attributable to GE Vernova | $428 | $383 | $(2,936) |
2024 FORM 10-K 55
| CONSOLIDATED AND COMBINED STATEMENT OF CHANGES IN EQUITY | |||||||||
| Common stock | |||||||||
| (In millions) | Common shares outstanding | Par value | Additional paid-in capital | Retained earnings | Treasury common stock | Net parent investment | Accumulated other comprehensive income (loss) – net | Equity attributable to noncontrolling interests | Total equity |
| Balances as of January 1, 2024 | — | $— | $— | $— | $— | $8,051 | $(635) | $964 | $8,380 |
| Transfers from (to) Parent, including Spin-Off related adjustments | — | — | — | — | — | 794 | — | — | 794 |
| Issuance of common stock in connection with the Spin-Off and reclassification of net parent investment | 274 | 3 | 8,712 | — | — | (8,715) | — | — | — |
| Issuance of shares in connection with equity awards(a) | 2 | — | 52 | — | (40) | — | — | — | 12 |
| Share-based compensation expense | — | — | 155 | — | — | — | — | — | 155 |
| Dividends declared ($0.25 per common share) | — | — | — | (70) | — | — | — | — | (70) |
| Repurchase of common stock | — | — | — | — | (3) | — | — | — | (3) |
| Net income (loss) | — | — | — | 1,682 | — | (130) | — | 7 | 1,559 |
| Currency translation adjustments – net of taxes | — | — | — | — | — | — | (399) | 2 | (397) |
| Benefit plans – net of taxes | — | — | — | — | — | — | (732) | 2 | (730) |
| Cash flow hedges – net of taxes | — | — | — | — | — | — | 6 | — | 6 |
| Changes in equity attributable to noncontrolling interests(b) | — | — | 814 | — | — | — | — | 72 | 886 |
| Balances as of December 31, 2024 | 276 | $3 | $9,733 | $1,611 | $(43) | $— | $(1,759) | $1,047 | $10,593 |
| Balances as of January 1, 2023 | — | $— | $— | $— | $— | $12,106 | $(1,456) | $957 | $11,607 |
| Net income (loss) | — | — | — | — | — | (438) | — | (36) | (474) |
| Currency translation adjustments – net of taxes | — | — | — | — | — | — | 110 | 4 | 114 |
| Benefit plans – net of taxes | — | — | — | — | — | — | 642 | (2) | 640 |
| Cash flow hedges – net of taxes | — | — | — | — | — | — | 69 | — | 69 |
| Transfers from (to) Parent | — | — | — | — | — | (3,617) | — | — | (3,617) |
| Changes in equity attributable to noncontrolling interests | — | — | — | — | — | — | — | 41 | 41 |
| Balances as of December 31, 2023 | — | $— | $— | $— | $— | $8,051 | $(635) | $964 | $8,380 |
| Balances as of January 1, 2022 | — | $— | $— | $— | $— | $13,996 | $(1,256) | $989 | $13,729 |
| Net income (loss) | — | — | — | — | — | (2,736) | — | 14 | (2,722) |
| Currency translation adjustments – net of taxes | — | — | — | — | — | — | (253) | (1) | (254) |
| Benefit plans – net of taxes | — | — | — | — | — | — | 75 | 3 | 78 |
| Cash flow hedges – net of taxes | — | — | — | — | — | — | (22) | — | (22) |
| Transfers from (to) Parent | — | — | — | — | — | 846 | — | — | 846 |
| Changes in equity attributable to noncontrolling interests | — | — | — | — | — | — | — | (48) | (48) |
| Balances as of December 31, 2022 | — | $— | $— | $— | $— | $12,106 | $(1,456) | $957 | $11,607 |
(a) During the third quarter, restrictions lapsed on 435,719 shares of GE Vernova common stock in connection with the vesting of
performance shares originally awarded by General Electric Company, now operating as GE Aerospace. We withheld 218,290 shares of
GE Vernova common stock to satisfy tax withholding obligations, resulting in $40 million of Treasury common stock.
(b) Primarily relates to proceeds from the sales of an approximately 24% equity interest in GE Vernova T&D India Ltd, a power transmission
and distribution solution provider, in the year ended December 31, 2024, net of directly attributable taxes of $245 million.
2024 FORM 10-K 56
NOTE 1**.** ORGANIZATION AND BASIS OF PRESENTATION
Organization. On April 2, 2024, General Electric Company, which now operates as GE Aerospace (GE or Parent) completed the previously
announced spin-off (the Spin-Off) of GE Vernova Inc. (the Company, GE Vernova, our, we, or us). The Spin-Off was completed through a
distribution of all the Company's outstanding common stock to holders of record of GE's common stock as of the close of business on
March 19, 2024 (the Distribution), which resulted in the issuance of approximately 274 million shares of common stock. As a result of the
Distribution, the Company became an independent public company. Our common stock is listed under the symbol “GEV” on the New York
Stock Exchange. In connection with the Spin-Off, GE contributed cash of $515 million to GE Vernova to fund future operations and
transferred restricted cash of $325 million to us such that the Company’s cash balance upon completion of the Spin-Off was approximately
$4,200 million. See Note 22 for further information.
In connection with the Spin-Off, GE Vernova entered into several agreements with GE, including a separation and distribution agreement
that sets forth certain agreements with GE regarding the principal actions to be taken in connection with the Spin-Off, including the transfer
of assets and assumption of liabilities, and establishes certain rights and obligations between the Company and GE, including procedures
with respect to claims subject to indemnification and related matters. Other agreements we entered into that govern aspects of our
relationship with GE following the Spin-Off include:
- Transition Services Agreement – governs all matters relating to the provision of services between the Company and GE on a
transitional basis. The services the Company receives include support for digital technology, human resources, supply chain,
finance, and real estate services, among others, that are generally intended to be provided for a period no longer than two years
following the Spin-Off.
- Tax Matters Agreement – governs the respective rights, responsibilities, and obligations between the Company and GE with
respect to all tax matters (excluding employee-related taxes covered under the Employee Matters Agreement), in addition to
certain restrictions which generally prohibit us from taking or failing to take any action in the two-year period following the
Distribution that would prevent the Distribution from qualifying as tax-free for U.S. federal income tax purposes, including
limitations on our ability to pursue certain strategic transactions. The agreement specifies the portion of tax liability for which the
Company will bear contractual responsibility, and the Company and GE will each agree to indemnify each other against any
amounts for which such indemnified party is not responsible.
- Certain other agreements related to employee matters, trademark license, intellectual property, real estate matters, and framework
investments.
Unless the context otherwise requires, references to the Company, GE Vernova, our, we, and us, refer to (i) GE’s renewable energy, power,
and digital businesses prior to the Spin-Off and (ii) GE Vernova Inc. and its subsidiaries following the Spin-Off.
GE Vernova is a global leader in the electric power industry, with products and services that generate, transfer, orchestrate, convert, and
store electricity. We design, manufacture, deliver, and service technologies to create a more reliable and sustainable electric power system,
enabling electrification and decarbonization, underpinning the progress and prosperity of the communities we serve. We report our financial
results across three business segments:
- Our Power segment includes design, manufacture, and servicing of gas, nuclear, hydro, and steam technologies, providing a
critical foundation of dispatchable, flexible, stable, and reliable power.
-
Our Wind segment includes our wind generation technologies, inclusive of onshore and offshore wind turbines and blades.
-
Our Electrification segment includes grid solutions, power conversion, electrification software, and solar and storage solutions
technologies required for the transmission, distribution, conversion, storage, and orchestration of electricity from point of
generation to point of consumption.
Basis of Presentation**.** For periods prior to the Spin-Off, the combined financial statements have been derived from the consolidated
financial statements and accounting records of GE, including the historical cost basis of assets and liabilities comprising the Company, as
well as the historical revenues, direct costs, and allocations of indirect costs attributable to the operations of the Company, using the
historical accounting policies applied by GE. These combined financial statements do not purport to reflect what the results of operations,
comprehensive income, financial position, or cash flows would have been had the Company operated as a separate, stand-alone entity
during the periods prior to the Spin-Off.
The consolidated and combined financial statements have been prepared in accordance with U.S. generally accepted accounting principles
(U.S. GAAP) and present the historical results of operations, comprehensive income and losses, and cash flows for the years ended
December 31, 2024, 2023, and 2022 and the financial position as of December 31, 2024 and 2023. We have reclassified certain prior-year
amounts to conform to the current-year's presentation. The information in tables throughout the footnotes is presented in millions of U.S.
dollars unless otherwise stated. Certain columns and rows may not add due to the use of rounded numbers. Percentages presented are
calculated from the underlying numbers in millions.
All intercompany balances and transactions within the Company have been eliminated in the consolidated and combined financial
statements. As described in Note 24, transactions between the Company and GE have been included in these consolidated and combined
financial statements. Certain financing transactions with GE are deemed to have been settled immediately through Net parent investment in
the Consolidated and Combined Statement of Financial Position and are accounted for as a financing activity in the Consolidated and
Combined Statement of Cash Flows as Transfers from (to) Parent.
For periods prior to the Spin-Off, the Consolidated and Combined Statement of Financial Position reflects all of the assets and liabilities of
GE that are specifically identifiable as being directly attributable to the Company, including Net parent investment as a component of equity.
Net parent investment represents GE’s historical investment in the Company and includes accumulated net income and losses attributable
to the Company, and the net effect of transactions with GE and its subsidiaries.
2024 FORM 10-K 57
For periods prior to the Spin-Off, GE used a centralized approach to cash management and financing of its operations. These
arrangements may not be reflective of the way the Company would have financed its operations had it been a separate, stand-alone entity
during the periods prior to the Spin-Off. The GE centralized cash management arrangements are excluded from the asset and liability
balances in the Consolidated and Combined Statement of Financial Position for periods prior to the Spin-Off. These amounts have instead
been included in Net parent investment as a component of equity. GE’s third-party debt and, unless specifically attributable, the related
interest expense, has not been attributed to the Company because the Company is not the legal obligor of the debt and the borrowings are
not specifically identifiable to the Company. See Note 24 for further information.
For periods prior to the Spin-Off, the Consolidated and Combined Statement of Income (Loss) includes expense allocations for certain
corporate, infrastructure, and shared services expenses provided by GE on a centralized basis (GE Corporate Costs), including, but not
limited to, finance, supply chain, human resources, IT, insurance, employee benefits, and other expenses that are either specifically
identifiable or clearly applicable to the Company. These expenses have been allocated to the Company on the basis of direct usage when
identifiable, with the remainder allocated on a pro rata basis using an applicable measure of headcount, revenue, or other allocation
methodologies that are considered to be a reasonable reflection of the utilization of services provided or the benefit received by GE
Vernova during the periods prior to the Spin-Off. However, the GE Corporate Costs allocations may not be indicative of the actual expense
that would have been incurred had the Company operated as an independent, stand-alone public entity. See Note 24 for further
information.
NOTE 2**.** SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Estimates and Assumptions. The preparation of the consolidated and combined financial statements in conformity with U.S. GAAP
requires management to make estimates based on assumptions about current, and for some estimates, future, economic and market
conditions which affect reported amounts and related disclosures in the consolidated and combined financial statements. We believe these
assumptions to be reasonable under the circumstances and although our current estimates contemplate current and expected future
conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our
results of operations, financial position and cash flows.
Estimates are used for, but are not limited to, determining revenue from contracts with customers, recoverability of inventory, long-lived
assets and investments, valuation of goodwill and intangible assets, useful lives used in depreciation and amortization, income taxes and
related valuation allowances, accruals for contingencies including legal, product warranties and environmental, asset retirement obligations,
actuarial assumptions used to determine costs of pension and postretirement benefits, valuation and recoverability of receivables, valuation
of derivatives, and valuation of assets acquired, liabilities assumed, and contingent consideration as a result of acquisitions.
Revenues from the Sale of Equipment. Sales of equipment include the sales of gas turbines, wind turbines and repower units, and other
power generation equipment related to energy production as well as substation solutions, high-voltage direct current (HVDC) solutions,
transformers, and switchgears for the transmission and distribution of electricity.
Performance Obligations Satisfied Over Time. We recognize revenue on agreements for the sale of customized goods including power
generation equipment and long-term construction contracts on an over-time basis as we customize the customer’s equipment during the
manufacturing or integration process and obtain right to payment for work performed.
We recognize revenue as we perform under the arrangements using the percentage of completion method, which is based on our costs
incurred to date relative to our estimate of total expected costs and the transaction price to which we expect to be entitled. Variable
consideration is included in the transaction price if, in our judgment, it is expected that a significant future reversal of cumulative revenue
under the contract will not occur. Some of our contracts with customers for the sale of equipment contain clauses for the payment of
liquidated damages related to milestones established for on-time delivery or meeting certain performance specifications. On an ongoing
basis, we evaluate the probability and magnitude of liquidated damages. This is factored into our estimate of variable consideration using
the expected value method taking into consideration progress towards meeting contractual milestones, specified liquidated damages rates,
if applicable, and history of paying liquidated damages to the customer or similar customers. Our estimate of costs to be incurred to fulfill
our promise to a customer is based on our history of manufacturing or constructing similar assets for customers and is updated routinely to
reflect changes in quantity or cost of the inputs. In certain projects, such as new product introductions, the underlying technology or
promise to the customer is unique to what we have historically promised and reliably estimating the total cost to fulfill the promise to the
customer requires a significant level of judgment. Where the profit from a contract cannot be estimated reliably, revenue is only recognized
equaling the cost incurred to the extent that it is probable that the costs will be recovered. We provide for a potential loss on these
agreements when it is expected that we will incur such loss.
During the years ended December 31, 2024 and 2023, primarily as a result of changes in product and project cost estimates, we recorded
incremental contract losses for certain Offshore Wind contracts of $1,005 million and $379 million, respectively. The incremental contract
losses in 2024 primarily relate to the estimated impact of changes in execution timelines, project-related commercial liabilities, costs to
remediate quality issues including the removal of previously installed blades at the Vineyard Wind project, and additional project-related
supply chain and manufacturing costs. Further changes in our execution timelines or other adverse developments could result in further
losses beyond the amounts that we currently estimate.
Our billing terms for these over-time contracts are generally based on achieving specified milestones. The differences between the timing of
our revenue recognized (based on costs incurred) and customer billings (based on contractual terms) results in changes to our contract
asset or contract liability positions. See Note 9 for further information.
Performance Obligations Satisfied at a Point in Time**.** We recognize revenue on agreements for non-customized equipment and other
goods we manufacture on a standardized basis for sale to the market at the point in time that the customer obtains control of the product,
which is generally no earlier than when the customer has physical possession. We recognize revenue based on the transaction price to
which we expect to be entitled based on our history and estimates regarding variable consideration such as performance and delivery
2024 FORM 10-K 58
commitments. We use proof of delivery for certain large equipment with more complex logistics, whereas the delivery of other equipment is
estimated based on historical averages of in-transit periods (i.e., time between shipment and delivery).
Where arrangements include customer acceptance provisions based on seller or customer-specified objective criteria, we recognize
revenue when we have concluded that the customer has control of the equipment, and that acceptance is likely to occur. We do not
provide for anticipated losses on point-in-time transactions prior to transferring control of the equipment to the customer.
Our billing terms for these point-in-time equipment contracts generally coincide with delivery to the customer; however, we receive progress
collections from customers for large equipment purchases to generally reserve production slots.
Revenues from the Sale of Services**.** Sales of services include sales from contracts that include the sales of parts and labor associated
with servicing customers’ installed base in addition to software related offerings, extended warranties, equipment upgrades, and other
service-type activities. Consistent with the way we manage our businesses and interact with customers, we refer to sales under service
agreements, which includes both goods (such as spare parts and equipment upgrades) and related services (such as monitoring,
maintenance and repairs) as sales of “services,” which is an important part of our operations. See Note 9 for further information.
Performance Obligations Satisfied Over Time. We enter into long-term service agreements, which we refer to as contractual service
agreements, with our customers within our Power segment. These agreements require us to provide preventative and routine maintenance,
outage services, and standby “warranty type” services that include certain levels of assurance regarding asset performance and uptime
throughout the contract periods, which generally range from 5 to 25 years. We account for items that are integral to the maintenance of the
equipment as part of our performance obligation unless the customer has a substantive right to make a separate purchasing decision for
services such as equipment upgrades. When determined to be a separate performance obligation, revenue for equipment upgrades is
recognized over time as our performance enhances the customer’s asset.
We recognize revenue as we perform under these arrangements using the percentage of completion method, which is based on our costs
incurred to date relative to our estimate of total expected costs and the transaction price to which we expect to be entitled under the terms
of the contract. Throughout the life of a contract, this measure of progress captures the nature, timing and extent of our underlying
performance activities as our stand-ready services often fluctuate between routine inspections and maintenance, unscheduled service
events and major outages at predetermined usage intervals. We provide for a potential loss on these agreements when it is expected that
we will incur such loss.
Our billing terms for these arrangements are generally based on the customers’ utilization of the equipment (e.g., per hour of usage) and
upon the occurrence of a major maintenance event within the contract, such as an outage. The differences between the timing of our
revenue recognized (based on costs incurred) and customer billings (based on contractual terms) result in changes to our contract asset or
contract liability positions. See Note 9 for further information.
We also enter into long-term service agreements, which we refer to as flexible service agreements, in our Wind segment. Revenues are
recognized for these arrangements on a straight-line basis consistent with the nature, timing and extent of our services, which primarily
relate to routine maintenance and as needed equipment repairs. We generally invoice periodically as services are provided.
Performance Obligations Satisfied at a Point in Time. We sell certain tangible products, largely spare parts, through our services
businesses. We recognize revenues and bill our customers at the point in time that the customer obtains control of the good, which is at the
point in time we deliver the spare part to the customer.
Cash, Cash Equivalents and Restricted Cash**.** Short-term investments and money market instruments with original maturities of three
months or less are included in Cash, cash equivalents, and restricted cash. Restricted cash primarily relates to funds restricted in
connection with contractual and legal restrictions and amounted to $438 million and $50 million as of December 31, 2024 and 2023,
respectively. See Note 22 for further information.
Customer Receivables. Amounts due from customers arising from the sales of equipment and services are recorded at the outstanding
amount, less allowance for losses. We regularly monitor the recoverability of our receivables. See Note 4 for further information.
Allowance for Credit Losses. When we record customer receivables, contract assets, and financing receivables, as well as financial
guarantees and certain commitments, we record an allowance for credit losses for the current expected credit losses inherent in the asset
over its expected life. The allowance for credit losses is a valuation account deducted from the amortized cost basis of the assets to
present the assets’ net carrying value at the amount expected to be collected. In each period, the allowance for credit losses is adjusted
through earnings to reflect expected credit losses over the remaining lives of the assets.
We estimate expected credit losses based on relevant information about past events, including historical experience, current conditions,
and reasonable and supportable forecasts that affect the collectability of the reported amount. When measuring expected credit losses, we
pool assets with similar country risk and credit risk characteristics. Changes in the relevant information may significantly affect the
estimates of expected credit losses.
Inventories**.** All inventories are stated at lower of cost or realizable values. Cost of inventories is primarily determined on a first-in, first-out
basis. Write-downs for excess, slow moving, and obsolete inventory are recorded as necessary. To determine these amounts, inventory
quantities on-hand are regularly reviewed and compared to historical utilization and estimates of future product demand, market conditions,
and technological developments. See Note 5 for further information.
Property, Plant, and Equipment. The cost of property, plant, and equipment is generally depreciated on a straight-line basis over its
estimated economic life. See Note 6 for further information.
2024 FORM 10-K 59
Leases**.** At lease commencement, we record a lease liability and corresponding right-of-use (ROU) asset, included in Property, plant, and
equipment. Options to extend the lease are included as part of the ROU asset and liability when it is reasonably certain the Company will
exercise the option. We have elected to include lease and non-lease components in determining our lease liability for all leased assets
except our vehicle leases. Non-lease components are generally services that the lessor performs for the Company associated with the
leased asset. As the Company’s leases typically do not provide an implicit rate, the present value of our lease liability is determined using
the Company’s incremental collateralized borrowing rate at lease commencement. For leases with an initial term of 12 months or less, an
ROU asset and lease liability are not recognized and lease expense is recognized on a straight-line basis over the lease term. Certain of
our leases include provisions for variable lease payments which are based on, but not limited to, maintenance, insurance, taxes, index
escalations, and usage based amounts. The Company recognizes variable lease payments not included in its lease liabilities in the period
in which the obligation for those payments is incurred. We test ROU assets whenever events or changes in circumstance indicate that the
asset may be impaired. See Notes 6 and 7 for further information.
Goodwill and Other Intangible Assets. We test goodwill for impairment at the reporting unit level annually in the fourth quarter of each
year using October 1st as the measurement date. We also test goodwill for impairment when an event occurs or circumstances change that
would more likely than not reduce the fair value of a reporting unit below its carrying value. We recognize an impairment charge if the
carrying amount of a reporting unit exceeds its fair value.
For other intangible assets, cost is generally amortized on a straight-line basis over the asset’s estimated economic life. Amortizable
intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amounts
may not be recoverable. In these circumstances, they are tested for impairment based on undiscounted cash flows and, if impaired, written
down to estimated fair value based on either discounted cash flows or appraised values. See Note 8 for further information.
Derivatives and Hedging. We use derivatives to reduce the earnings, equity, and cash flow volatility associated with risks related to
foreign currency and commodity prices. We use derivatives solely for managing risks and do not use derivatives for speculative purposes.
Accounting for derivatives as hedges requires that, at inception and over the term of the arrangement, the hedged item and related
derivative meet the requirements for hedge accounting. In evaluating whether a particular relationship qualifies for hedge accounting, we
test effectiveness at inception and each reporting period thereafter by determining whether changes in the fair value of the derivative
instrument offset, within a specified range, changes in the fair value of the hedged item. If fair value changes fail this test, we discontinue
the application of hedge accounting to that relationship prospectively. Fair value of both the derivative instrument and the hedged item are
calculated using internal valuation models incorporating market-based assumptions.
We use economic hedges when we have exposures to foreign exchange and commodity risk for which we are unable to meet the
requirements for hedge accounting. These derivatives are not designated as hedges from an accounting standpoint but otherwise serve the
same economic purpose as other hedging arrangements. Although derivatives may be effective economic hedges, there may be a net
effect on earnings in each period due to differences in the timing of earnings recognition between the derivatives and the hedged items.
See Note 20 for further information.
Equity Method Investments. Investments in which we have the ability to exercise significant influence, but do not control, are accounted
for under the equity method of accounting. While a voting percentage of 20% is generally presumed to demonstrate significant influence,
other indicators such as board representation or participation in policy-making processes are considered in determining whether significant
influence exists. Equity method investments are assessed for other-than-temporary impairment when events occur or circumstances
change that indicate it is more likely than not the fair value of the asset is below its carrying value. Our proportionate interest in any intra-
entity profits or losses of an equity method investment are eliminated until the related profit and losses are realized by the investee. Our
share of the results of equity method investments is recognized within Other (income) expense – net in the Consolidated and Combined
Statement of Income (Loss). See Note 11 for further information.
Variable Interest Entities. Arrangements in which voting or similar rights may not be indicative of control are reviewed under the guidance
for variable interest entities (VIEs). We consolidate VIEs for which we are the primary beneficiary, and if we are not the primary beneficiary
and an ownership interest is held, the VIE is generally accounted for under the equity method of accounting. When assessing the
determination of the primary beneficiary, we consider all relevant facts and circumstances, including our power to direct the activities of the
VIE that most significantly impact its economic performance and the obligation to absorb the expected losses and/or the right to receive the
expected returns of the VIE. See Note 21 for further information.
Income Taxes**.** Prior to the Spin-off, GE Vernova was included in the consolidated U.S. federal, state, and foreign income tax returns of
GE, where eligible, through April 2, 2024. The Company's provision for income taxes for the periods 2022, 2023, and the first quarter of
2024 was prepared using the separate return method. On a separate return basis, actual transactions included in the consolidated and
combined financial statements of GE may not be included in the GE Vernova consolidated and combined financial statements. Similarly,
the tax treatment of certain items reflected in the consolidated and combined financial statements of GE Vernova may not be reflected in
the consolidated and combined financial statements and tax returns of GE. Therefore, items such as tax loss carryforwards, tax credit
carryforwards, and valuation allowances may exist in the separate GE Vernova consolidated and combined financial statements that may
or may not exist in GE’s consolidated and combined financial statements. Following the Spin-off, GE Vernova will file tax returns
independently and the Company's provision for income taxes is prepared on a stand-alone basis. As a result, the deferred income taxes
and effective tax rate reported in 2024 may differ from those reported in the historical periods prior to the Spin-off.
We only recognize the tax benefits from income tax positions that have a greater than 50 percent likelihood of being sustained upon
examination by the taxing authorities. A liability is recorded for uncertain tax positions when there is a 50 percent or less likelihood such tax
position would be sustained based on its technical merits. We re-evaluate uncertain tax positions upon changes in facts and circumstances,
changes in tax law or guidance, and upon effective settlement of issues with tax authorities. We classify interest on tax deficiencies or
overpayments as interest expense or income in Interest and other financial charges – net and income tax penalties as a Provision (benefit)
for income taxes in the Consolidated and Combined Statement of Income (Loss).
2024 FORM 10-K 60
We record deferred taxes on the future tax consequences of differences between the financial statement carrying value of our assets and
liabilities and their respective tax basis. The realization of deferred tax assets depends on sufficient sources of taxable income. Possible
sources of taxable income include taxable income in carry-back periods, the future reversal of existing taxable temporary differences
recorded as a deferred tax liability, tax-planning strategies that generate future income, and projected future taxable income. If, based upon
all available evidence, both positive and negative, it is more likely than not such deferred tax assets will not be realized, a valuation
allowance is recorded to adjust the deferred tax assets to the net amount which is more likely than not to be realized.
See Note 15 for further information.
Postretirement Benefit Plans. Certain employees, former employees, and retirees of the Company participate in postretirement benefit
plans sponsored by the Company.
Management presents these plans sponsored by the Company in three categories: principal pension plans, other pension plans, and
principal retiree benefit plans. Plan assets are categorized for disclosure purposes in accordance with the fair value hierarchy. Benefits are
calculated using significant inputs to the actuarial models that measure benefit obligations and related effects on operations. The Company
evaluates critical assumptions, including discount rates and expected return on assets, at least annually on a plan and country-specific
basis. Actual results in any given year often will differ from actuarial assumptions because of economic and other factors.
Projected benefit obligations are measured as the present value of expected payments. We discount those cash payments using the
weighted average of market-observed yields for high-quality fixed-income securities with maturities that correspond to the expected timing
of benefit payments. Generally, lower discount rates increase present values and increase subsequent-year pension expense, while higher
discount rates decrease present values and decrease subsequent-year pension expense. The components of net periodic benefit costs,
other than the service cost component, are recognized within Non-operating benefit income in the Consolidated and Combined Statement
of Income (Loss). The Company delays recognition of gains and losses and subsequently amortizes these amounts into earnings over the
remaining average future service of active employees or the expected life of inactive participants, as applicable, who participate in the plan.
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. See Note 13 for further information.
Loss Contingencies. Loss contingencies are existing conditions, situations or circumstances involving uncertainty as to possible loss that
will ultimately be resolved when future events occur or fail to occur. Such contingencies include, but are not limited to warranties,
environmental obligations, litigation, regulatory investigations and proceedings, and losses resulting from other events and developments.
When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss.
When there appears to be a range of possible costs with equal likelihood, liabilities are based on the low end of such range. Disclosure is
provided for material loss contingencies when a loss is probable but a reasonable estimate cannot be made, and when it is reasonably
possible that a loss will be incurred or the amount of a loss will exceed the recorded provision. We regularly review contingencies to
determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or range of loss can be
made See Note 22 for further information.
Supply Chain Finance Programs. We evaluate supply chain finance programs to ensure where we use a third party intermediary to settle
our trade payables, their involvement does not change the nature, existence, amount, or timing of our trade payables and does not provide
the Company with any direct economic benefit. If any characteristics of the trade payables change or we receive a direct economic benefit,
we reclassify the trade payables as borrowings.
Accounts Payable and Equipment Project Payables. Accounts payable and equipment project payables include amounts due to
suppliers and liabilities for costs and expenses incurred or accrued for which invoices have not been received.
Fair Value Measurements. The following sections describe the valuation methodologies we use to measure financial and non-financial
instruments accounted for at fair value, including certain assets within our pension plans and retiree benefit plans. Observable inputs reflect
market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These inputs establish a fair
value hierarchy:
Level 1 - Quoted prices for identical instruments in active markets;
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that
are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable; and
Level 3 - Significant inputs to the valuation model are unobservable.
Recurring Fair Value Measurements. For financial assets and liabilities measured at fair value on a recurring basis, fair value is the price
we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In
the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market
observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a
hypothetical transaction that occurs at the measurement date.
Derivatives. Derivative assets and liabilities primarily represent foreign currency and commodity forward contracts. The majority of our
derivatives are valued using internal models. The models maximize the use of market observable inputs including interest rate curves and
both forward and spot prices for currencies and commodities and therefore are considered Level 2. See Note 20 for further information.
Nonrecurring Fair Value Measurements. Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets
and liabilities may include loans and long-lived assets reduced to fair value upon classification as held for sale, impaired equity method
investments, loans, and long-lived assets, assets acquired and liabilities assumed in connection with business combinations, and
remeasured retained investments in formerly combined subsidiaries upon a change in control that results in the deconsolidation of that
2024 FORM 10-K 61
subsidiary and retention of a noncontrolling stake in the entity. Assets written down to fair value when impaired and retained investments
are not subsequently adjusted to fair value unless further impairment occurs.
Equity Method Investments. Equity method investments are initially recorded at cost and are adjusted in each period for the Company’s
share of the investee’s income or loss and dividends paid. In instances of impairment, equity method investments are written down to fair
value using market observable data such as quoted prices when available. When market observable data is unavailable, investments are
valued using either a discounted cash flow model, comparative market multiples, third-party pricing sources or a combination of these
approaches, as appropriate. These investments are generally valued using Level 3 inputs.
Financing Receivables. When financing receivables are held for sale, we generally use market data, including pricing on recently closed
market transactions, to value financing receivables. Such financing receivables are valued using Level 2 inputs. When the data is
unobservable, we use valuation methodologies using current market interest rate data adjusted for inherent credit risk. Such financing
receivables are valued using Level 3 inputs.
Long-lived Assets. Fair values of long-lived assets are primarily derived internally and are corroborated by available external appraisal
information as applicable. These assets are generally valued using Level 3 inputs.
Restructuring Cost****s. We record liabilities for costs associated with exit or disposal activities in the period in which the liability is incurred.
Employee termination costs are accrued when the restructuring actions are probable and estimable. Costs for one-time termination benefits
in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future
service period. See Note 23 for further information.
Research and Developmen****t. The Company conducts research and development (R&D) activities to continually enhance our existing
products and services, develop new products and services to meet our customers’ changing needs and requirements, and address new
market opportunities. This includes internal R&D expenses as well as expenses incurred for R&D services from third parties. R&D costs are
expensed as incurred.
Government Assistance**.** We receive grants, incentives, and refundable tax credits from various federal, state, local, and foreign
governments in exchange for compliance with certain conditions relating to our activities in a specific jurisdiction which encourage
investment, job creation and retention, and environmental objectives including renewable energy production and emissions reductions. We
recognize government incentives as a reduction to the related expense or asset when there is reasonable assurance that the Company will
comply with the conditions of the incentive, the incentive is received or is probable of receipt, and the amount is determinable. Government
grants resulted in reductions of $52 million, $71 million, and $56 million to research and development expenses for the years ended
December 31, 2024, 2023, and 2022, respectively. As a result of the advanced manufacturing credits provided by the Inflation Reduction
Act, which went into effect in 2023, our Wind business also recognized a $319 million and $234 million reduction to cost of equipment for
the years ended December 31, 2024 and 2023, respectively, and recorded $301 million and $230 million as of December 31, 2024 and
2023, respectively, in Current receivables - net and All other assets in our Consolidated and Combined Statement of Financial Position.
Foreign Currency. We determine the functional currency of foreign subsidiaries based on their primary operations that generate and
expend cash. The functional currency for many of our international operations is the local currency, and for other international operations,
the functional currency is the U.S. dollar. When the functional currency is not the U.S. dollar, asset and liability accounts are translated at
period-end exchange rates, and the Company translates functional currency income and expense amounts to their U.S. dollar equivalents
using average exchange rates for the period. The U.S. dollar effects that arise from changing translation rates from functional currencies
are recorded in Accumulated other comprehensive income (loss) – net attributable to GE Vernova (AOCI) in the Consolidated and
Combined Statement of Financial Position.
Gains and losses from foreign currency transactions, such as those resulting from the settlement of monetary items in the non-functional
currency and those resulting from remeasurements of monetary items, are included in Cost of equipment, Cost of services and Selling,
general, and administrative expenses depending on the underlying nature of the item. Net gains (losses) from foreign currency transactions
were $20 million, $80 million, and $57 million for the years ended December 31, 2024, 2023, and 2022, respectively.
Recently Issued Accounting Pronouncements**.** In November 2024, the Financial Accounting Standards Board (FASB) issued ASU No.
2024-03, Disaggregation of Income Statement Expenses (DISE). The new standard requires disclosure about specific types of expenses
included in the expense captions presented on the face of the income statement as well as disclosure about selling expenses. The ASU is
effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early
adoption permitted. We are currently evaluating the impact that this guidance will have on the disclosures within our consolidated and
combined financial statements.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The
amendments require disclosure of specific categories in the rate reconciliation and provide additional information for reconciling items that
meet a quantitative threshold and further disaggregation of income taxes paid for individually significant jurisdictions. The ASU is effective
for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact that this guidance
will have on the disclosures within our consolidated and combined financial statements.
NOTE 3**.** DISPOSITIONS AND BUSINESSES HELD FOR SALE**.** During the second quarter of 2024, our Steam Power business
completed the sale of part of its nuclear activities to Electricité de France S.A. (EDF). In connection with the disposition, we received net
cash proceeds of $639 million, subject to customary working capital and other post-close adjustments. As a result, we recognized a pre-tax
gain of $964 million (after-tax gain of $956 million), recorded in Other income (expense) – net in our Consolidated and Combined
Statement of Income (Loss) for the year ended December 31, 2024. See Notes 15, 16 and 19 for further information.
The major components of assets and liabilities of the business held for sale in the Company’s Consolidated and Combined Statement of
Financial Position are summarized as follows:
2024 FORM 10-K 62
| ASSETS AND LIABILITIES OF BUSINESS HELD FOR SALE December 31 | 2024 | 2023 |
| Cash and cash equivalents | $— | $603 |
| Current receivables, inventories, and contract assets | — | 551 |
| Property, plant, and equipment and intangibles – net | — | 237 |
| Other assets | — | 53 |
| Assets of business held for sale | $— | $1,444 |
| Contract liabilities and deferred income | $— | $1,001 |
| Accounts payable and equipment project payables | — | 177 |
| Other liabilities | — | 270 |
| Liabilities of business held for sale | $— | $1,448 |
NOTE 4**.** CURRENT AND LONG-TERM RECEIVABLES
| CURRENT RECEIVABLES – NET December 31 | 2024 | 2023 |
| Customer receivables | $6,310 | $5,952 |
| Non-income based tax receivables | 814 | 1,048 |
| Supplier advances and other receivables | 1,514 | 924 |
| Other receivables | $2,328 | $1,972 |
| Allowance for credit losses | (464) | (515) |
| Total current receivables – net | $8,174 | $7,409 |
Activity in the allowance for credit losses related to current receivables for the years ended December 31, 2024, 2023, and 2022 consists of
the following:
| ALLOWANCE FOR CREDIT LOSSES | 2024 | 2023 | 2022 |
| Balance as of January 1 | $515 | $674 | $771 |
| Net additions (releases) charged to costs and expenses | 33 | (7) | 9 |
| Write-offs, net | (36) | (163) | (11) |
| Foreign exchange and other (a) | (48) | 11 | (95) |
| Balance as of December 31 | $464 | $515 | $674 |
(a) Includes a reclassification of $73 million from current to long-term allowance due to a revised customer settlement schedule for the year
ended December 31, 2022.
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 $1,647 million, $1,590 million, and $1,624 million in the years ended December 31,
2024, 2023, and 2022, respectively. Within these programs, primarily related to our participation in customer-sponsored supply chain
finance programs in Wind, 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 due date. Included in the sales of customer receivables in the year ended
December 31, 2023 was $82 million in our Gas Power business within our Power segment, primarily for risk mitigation purposes.
| LONG-TERM RECEIVABLES – NET December 31 | 2024 | 2023 |
| Long-term customer receivables | $282 | $316 |
| Supplier advances | 285 | 243 |
| Non-income based tax receivables | 74 | 136 |
| Other receivables | 247 | 190 |
| Allowance for credit losses | (142) | (184) |
| Total long-term receivables – net | $745 | $701 |
NOTE 5**.** INVENTORIES, INCLUDING DEFERRED INVENTORY COSTS
| December 31 | 2024 | 2023 |
| Raw materials and work in process | $5,328 | $4,685 |
| Finished goods | 2,490 | 2,514 |
| Deferred inventory costs(a) | 769 | 1,054 |
| Inventories, including deferred inventory costs | $8,587 | $8,253 |
(a) Represents cost deferral for shipped goods (such as components for wind turbine assemblies in our Wind segment) and labor and
overhead costs on time and material service contracts (primarily originating in our Power segment) and other costs where the criteria for
revenue recognition have not yet been met.
2024 FORM 10-K 63
NOTE 6**.** PROPERTY, PLANT, AND EQUIPMENT
| Depreciable lives (in years) | Original Cost | Net Carrying Value | ||||
| December 31 | 2024 | 2023 | 2024 | 2023 | ||
| Land and improvements | 8 | $337 | $352 | $323 | $341 | |
| Buildings, structures, and related equipment | 8-40 | 3,171 | 3,278 | 1,339 | 1,494 | |
| Machinery and equipment(a) | 4-20 | 7,938 | 7,763 | 2,284 | 2,399 | |
| Leasehold costs and manufacturing plant under construction | 1-10 | 762 | 514 | 533 | 326 | |
| ROU operating lease assets(b) | 671 | 668 | ||||
| Property, plant, and equipment – net | $12,207 | $11,907 | $5,150 | $5,228 |
(a)Includes equipment we own that is leased to customers and is stated at cost less accumulated depreciation with a carrying value of
$374 million and $422 million as of December 31, 2024 and 2023, respectively.
(b)See Note 7 for further information.
Depreciation and amortization related to property, plant, and equipment was $895 million, $724 million, and $779 million for the years
ended December 31, 2024, 2023, and 2022, respectively.
In the third quarter of 2024, we recognized a non-cash pre-tax impairment charge of $108 million related to property, plant, and equipment
due to restructuring at our Hydro Power business, which is included in depreciation and amortization. This charge was recorded in Cost of
sales in our Consolidated and Combined Statement of Income (Loss). See Note 23 for further information.
In the first quarter of 2022, we signed a non-binding memorandum of understanding to sell part of the nuclear activities in our Steam Power
business to EDF, which resulted in a reclassification of that business to held for sale. As a result, we recognized a non-cash pre-tax
impairment charge of $59 million related to property, plant, and equipment at our remaining Steam Power business, of which $41 million is
included in depreciation and amortization. We determined the fair value of these assets using an income approach when testing for
impairment. This charge was recorded in Selling, general, and administrative expenses in our Consolidated and Combined Statement of
Income (Loss).
NOTE 7**.** LEASES
Operating Lease Liabilities. The Company leases certain logistics, office, and manufacturing facilities, as well as vehicles and other
equipment. Certain of the Company’s leases may include options to extend. Our operating lease liabilities are included in All other current
liabilities and All other liabilities in our Consolidated and Combined Statement of Financial Position, as detailed below.
| December 31 | 2024 | 2023 |
| Current portion of operating lease liability | $163 | $193 |
| Noncurrent portion of operating lease liability | 562 | 525 |
| Total operating lease liability | $725 | $718 |
| OPERATING LEASE EXPENSE | 2024 | 2023 | 2022 |
| Long-term (fixed) | $194 | $205 | $225 |
| Long-term (variable) | 47 | 49 | 53 |
| Short-term | 25 | 63 | 62 |
| Total operating lease expense | $265 | $317 | $340 |
| MATURITY OF LEASE LIABILITIES | 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total |
| Undiscounted lease payments | $188 | $146 | $114 | $86 | $60 | $256 | $850 |
| Less: Imputed interest | (125) | ||||||
| Total lease liability as of December 31, 2024 | $725 |
| SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES | 2024 | 2023 | 2022 |
| Operating cash flows used for operating leases | $242 | $214 | $229 |
| Right-of-use assets obtained in exchange for new lease liabilities | 259 | 278 | 183 |
| Weighted-average remaining lease term as of December 31 | 7.3 years | 7.1 years | 6.7 years |
| Weighted-average discount rate as of December 31 | 4.4% | 4.0% | 3.5% |
Finance Lease Liabilities. Our finance lease liabilities are included in All other current liabilities and All other liabilities in our Consolidated
and Combined Statement of Financial Position, as detailed below. Our finance leases have a weighted-average remaining lease term of
13.1 years and a weighted-average discount rate of 2.9% as of December 31, 2024.
2024 FORM 10-K 64
| December 31 | 2024 | 2023 |
| Current portion of finance lease liability | $18 | $27 |
| Noncurrent portion of finance lease liability | 248 | 284 |
| Total finance lease liability | $266 | $311 |
NOTE 8**.** ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS
Acquisitions**.** In the second quarter of 2023, our Gas Power business acquired Nexus Controls, a business specializing in aftermarket
control system upgrades and controls field services.
| CHANGES IN GOODWILL BALANCES | Power | Wind | Electrification | Total |
| Balance at December 31, 2022 | $144 | $3,118 | $902 | $4,164 |
| Acquisitions(a) | 164 | — | 22 | 186 |
| Currency exchange and other | — | 86 | 1 | 87 |
| Balance at December 31, 2023 | $308 | $3,204 | $925 | $4,437 |
| Currency exchange and other | 3 | (170) | (7) | (174) |
| Balance at December 31, 2024 | $310 | $3,035 | $918 | $4,263 |
(a) Includes Gas Power's acquisition of Nexus Controls.
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 significantly exceeded their carrying values. Determining the fair values of reporting units requires the use of estimates and
significant judgments that are based on a number of factors including actual operating results. It is reasonably possible that estimates and
significant judgements could change in future periods.
| INTANGIBLE ASSETS SUBJECT TO AMORTIZATION | 2024 | 2023 | ||||||
| December 31 | Useful lives (in years) | Gross carrying amount | Accumulated amortization | Net | Gross carrying amount | Accumulated amortization | Net | |
| Customer-related | 3-23 | $2,292 | $(1,974) | $318 | $2,356 | $(1,953) | $403 | |
| Patents and technology | 5-15 | 2,869 | (2,587) | 283 | 2,924 | (2,558) | 366 | |
| Capitalized software | 3-10 | 1,035 | (871) | 165 | 1,015 | (800) | 215 | |
| Trademarks & other | 3-25 | 208 | (160) | 48 | 203 | (145) | 58 | |
| Total | $6,404 | $(5,592) | $813 | $6,498 | $(5,456) | $1,042 |
All intangible assets are subject to amortization. Intangible assets decreased $230 million in 2024, primarily as a result of amortization.
Amortization expense was $277 million, $240 million, and $1,018 million for the years ended December 31, 2024, 2023, and 2022,
respectively.
In the first quarter of 2022, we signed a non-binding memorandum of understanding to sell part of the nuclear activities in our Steam Power
business to EDF, which resulted in a reclassification of that business to held for sale. As a result, we recognized a non-cash pre-tax
impairment charge of $765 million related to intangible assets at our remaining Steam Power business, which is included in amortization.
We determined the fair value of these intangible assets using an income approach when testing for impairment. This charge was recorded
in Selling, general, and administrative expenses in our Consolidated and Combined Statement of Income (Loss). See Note 3 for further
information.
Estimated annual pre-tax amortization for intangible assets over the next five calendar years are as follows:
| ESTIMATED 5 YEAR CONSOLIDATED AMORTIZATION | 2025 | 2026 | 2027 | 2028 | 2029 |
| Estimated annual pre-tax amortization | $236 | $228 | $175 | $85 | $21 |
NOTE 9**.** CONTRACT AND OTHER DEFERRED ASSETS & CONTRACT LIABILITIES AND DEFERRED INCOME
Contract assets reflect revenue recognized on contracts in excess of billings based on contractual terms. Contract liabilities primarily
represent cash received from customers under ordinary commercial payment terms in advance of delivery of equipment orders or servicing
of customers’ installed base.
Contract and other deferred assets increased $216 million in the year ended December 31, 2024 primarily due to the timing of revenue
recognition ahead of billing milestones on equipment and other service agreements. Contract liabilities and deferred income increased
$2,497 million in the year ended December 31, 2024 primarily due to new collections received in excess of revenue recognition at Power
and Electrification, partially offset by revenue recognition and the settlement of a previously cancelled contract at Wind of $402 million. Net
contractual service agreements increased primarily due to revenues recognized of $5,473 million, partially offset by billings of $5,021
million and net unfavorable changes in estimated profitability of $319 million due primarily to higher costs.
Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately $9,933 million and $8,331
million for the years ended December 31, 2024 and 2023, respectively.
2024 FORM 10-K 65
| CONTRACT AND OTHER DEFERRED ASSETS | ||||
| December 31, 2024 | Power | Wind | Electrification | Total |
| Contractual service agreement assets | $5,321 | $— | $— | $5,321 |
| Equipment and other service agreement assets | 1,622 | 538 | 1,139 | 3,300 |
| Current contract assets | $6,944 | $538 | $1,139 | $8,621 |
| Non-current contract and other deferred assets(a) | 536 | 8 | 11 | 555 |
| Total contract and other deferred assets | $7,479 | $546 | $1,150 | $9,176 |
| December 31, 2023 | Power | Wind | Electrification | Total |
| Contractual service agreement assets | $5,201 | $— | $— | $5,201 |
| Equipment and other service agreement assets | 1,679 | 392 | 1,067 | 3,138 |
| Current contract assets | $6,880 | $392 | $1,067 | $8,339 |
| Non-current contract and other deferred assets(a) | 602 | 14 | 5 | 621 |
| Total contract and other deferred assets | $7,482 | $406 | $1,072 | $8,960 |
(a) Primarily represents amounts due from customers at Gas Power for the sale of services upgrades, which we collect through incremental
fixed or usage-based fees from servicing the equipment under contractual service agreements.
| CONTRACT LIABILITIES AND DEFERRED INCOME | ||||
| December 31, 2024 | Power | Wind | Electrification | Total |
| Contractual service agreement liabilities | $1,789 | $— | $— | $1,789 |
| Equipment and other service agreement liabilities | 7,879 | 3,684 | 3,946 | 15,511 |
| Current deferred income | 6 | 193 | 88 | 287 |
| Contract liabilities and current deferred income | $9,674 | $3,877 | $4,034 | $17,587 |
| Non-current deferred income | 29 | 112 | 16 | 157 |
| Total contract liabilities and deferred income | $9,703 | $3,989 | $4,050 | $17,744 |
| December 31, 2023 | Power | Wind | Electrification | Total |
| Contractual service agreement liabilities | $1,810 | $— | $— | $1,810 |
| Equipment and other service agreement liabilities | 5,732 | 4,819 | 2,352 | 12,903 |
| Current deferred income | 20 | 228 | 113 | 361 |
| Contract liabilities and current deferred income | $7,562 | $5,047 | $2,465 | $15,074 |
| Non-current deferred income | 48 | 90 | 35 | 173 |
| Total contract liabilities and deferred income | $7,610 | $5,137 | $2,500 | $15,247 |
Remaining Performance Obligation (RPO). As of December 31, 2024, the aggregate amount of the contracted revenues allocated to our
unsatisfied (or partially unsatisfied) performance obligations were $119,023 million. We expect to recognize revenue as we satisfy our
remaining performance obligations as follows:
(1)Equipment-related RPO of $43,047 million of which 44%, 69%, and 93% is expected to be recognized within 1, 2, and 5 years,
respectively, and the remaining thereafter.
(2)Services-related RPO of $75,976 million of which 18%, 53%, 78%, and 91% 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 RPO.
NOTE 10**.** CURRENT AND ALL OTH****ER ASSETS
| December 31 | 2024 | 2023 |
| Derivative instruments (Note 20) | $168 | $76 |
| Financing receivables – net | — | 141 |
| Prepaid taxes and deferred charges | 297 | 128 |
| Other | 96 | 7 |
| All other current assets | $562 | $352 |
| Long-term receivables – net (Note 4) | $745 | $701 |
| Long-term financing receivables - net | 32 | — |
| Pension surplus (Note 13) | 890 | 748 |
| Taxes receivable | 364 | 213 |
| Prepaid taxes and deferred charges | 248 | 246 |
| Derivative instruments (Note 20) | 158 | 118 |
| Other | 326 | 202 |
| All other assets | $2,763 | $2,228 |
2024 FORM 10-K 66
NOTE 11**.** EQUITY METHOD INVESTMENTS
| Ownership percentage at | Equity method investment balance | Equity method income (loss) | ||||||
| December 31, 2024 | December 31, 2024 | December 31, 2023 | 2024 | 2023 | 2022 | |||
| Renewable energy tax equity investments(a) | — | $— | $1,227 | $(38) | $(132) | $(93) | ||
| China XD Electric(b) | 12% | 402 | 485 | 23 | 8 | 7 | ||
| Aero Alliance(c) | 50% | 544 | 510 | 29 | 38 | 55 | ||
| Hitachi-GE Nuclear Energy(d) | 20% | 184 | 253 | (12) | 7 | 15 | ||
| Prolec GE(e) | 50% | 251 | 205 | 105 | 93 | 17 | ||
| Other(f) | 769 | 875 | (54) | (78) | 59 | |||
| Total | $2,149 | $3,555 | $53 | $(64) | $60 |
(a)In connection with the Spin-Off, GE retained renewable energy U.S. tax equity investments of $1,244 million in limited liability
companies, which generated renewable energy tax credits, and any tax attributes from historical tax equity investing activity. Tax
benefits related to these investments of $53 million were recognized in the first quarter of 2024 and $183 million and $164 million were
recognized during the years ended December 31, 2023 and 2022, respectively, in Provision (benefit) for income taxes in our
Consolidated and Combined Statement of Income (Loss), for which we received cash of $183 million from GE for these credits in
- In connection with GE retaining the renewable energy U.S. tax equity investments, we recognized a $136 million benefit related
to deferred intercompany profit from historical equipment sales to the related investees in Cost of equipment in our Consolidated and
Combined Statement of Income (Loss) during the second quarter of 2024. See Note 25 for further information.
(b)China XD Electric Co., Ltd. is publicly traded on the Shanghai Stock Exchange, and the market value was $640 million as of December
31, 2024 based on the quoted market value. While the Company holds a 12% ownership interest, we account for the investment under
the equity method given our participation on the investee’s board of directors. In the fourth quarter of 2024, we sold a portion of our
shares decreasing our ownership percentage by 3%. See Note 19 for further information.
(c)Aero Alliance is our 50-50 joint venture with Baker Hughes Company. See Note 24 for further information.
(d)Hitachi-GE Nuclear Energy is a non-consolidated joint venture that is part of the joint venture structure with Hitachi, Ltd. that forms our
Nuclear Power business.
(e)Prolec GE refers to our joint venture with Xignux, which manufactures a wide range of transformers available for generation,
transmission and distribution applications and is focused on serving utilities, renewable and industrial customers.
(f)Primarily other investments made by our Financial Services business in commercial energy projects and investments with strategic
partners by our segments. For the years ended December 31, 2024, 2023, and 2022, includes impairment charges of $55 million,
$108 million, and $43 million, respectively.
| Equity method investment balance | Equity method income (loss) | |||||
| December 31, 2024 | December 31, 2023 | 2024 | 2023 | 2022 | ||
| Power | $919 | $1,003 | $(11) | $78 | $17 | |
| Wind | 49 | 46 | 5 | (2) | 8 | |
| Electrification | 743 | 788 | 123 | 77 | 24 | |
| Corporate(a) | 438 | 1,718 | (64) | (217) | 11 | |
| Total | $2,149 | $3,555 | $53 | $(64) | $60 |
(a) Includes the investments owned by our Financial Services business.
The following tables present summarized financial information of the Company’s equity method investments (for the period of the
Company’s investment):
| SUMMARIZED EARNINGS INFORMATION | 2024 | 2023 | 2022 |
| Revenues | $9,811 | $10,030 | $8,931 |
| Gross profit | 2,010 | 1,945 | 1,699 |
| Net income | 610 | 581 | 431 |
| SUMMARIZED ASSETS AND LIABILITIES December 31 | 2024 | 2023 |
| Current | $10,647 | $10,810 |
| Noncurrent | 9,294 | 15,819 |
| Total assets | $19,941 | $26,629 |
| Current | $6,906 | $7,203 |
| Noncurrent | 3,725 | 5,466 |
| Total liabilities | $10,631 | $12,669 |
| Noncontrolling interests | $542 | $381 |
2024 FORM 10-K 67
NOTE 12**.** ACCOUNTS PAYABLE AND EQUIPMENT PROJECT PAYABLES
| December 31 | 2024 | 2023 |
| Trade payables | $4,942 | $4,701 |
| Supply chain finance programs | 2,051 | 1,642 |
| Equipment project payables | 1,211 | 1,096 |
| Non-income based tax payables | 375 | 461 |
| Accounts payable and equipment project payables | $8,578 | $7,900 |
We facilitate voluntary supply chain finance programs with third parties, which provide participating suppliers the opportunity to sell their GE
Vernova 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 $3,650 million and $5,442 million for the years ended December 31, 2024 and 2023, respectively. Total
new supplier invoices entered into through these third party programs were $4,071 million and $4,521 million for the years ended
December 31, 2024 and 2023, respectively. Foreign exchange and other was not significant for both the years ended December 31, 2024
and 2023.
NOTE 13**.** POSTRETIREMENT BEN****EFIT PLANS
Pension Benefits and Retiree Health and Life Benefits Sponsored by GE, Allocated to GE Vernova in Connection with the Spin-
Off. On January 1, 2023, in advance of the Spin-Off, principal and other pension plans sponsored by GE, which were previously accounted
for as multiemployer plans, were legally split and allocated to GE Vernova beginning in 2023. Liabilities related to the retiree health and life
benefit plans sponsored by GE were allocated to GE Vernova as a participating employer and are accounted for as multiple employer plans
starting in 2023.
Prior to the separation of these plans, certain GE Vernova employees were covered under various pension and retiree health and life plans
sponsored by GE, including the GE Pension Plan and GE Supplementary Pension Plan, the retiree benefit plans, and other pension plans.
Relevant participation costs for certain GE-sponsored employee benefit plans were allocated to the Company and recognized in the
Combined Statement of Income (Loss) for the year ended December 31, 2022. These included service costs for active employees in the
GE Pension Plan, the GE Supplementary Pension Plan, the retiree benefit plans, and other pension plans. We did not record any assets or
liabilities associated with our participation in these plans in our Combined Statement of Financial Position as of December 31, 2022.
Expenses associated with our employees' participation in the principal pension plans and principal retiree benefit plans, which represent
the majority of related expense, were $61 million for the year ended December 31, 2022.
Defined Contribution Plan. Following the Spin-Off, GE Vernova now sponsors a defined contribution plan for its eligible U.S. employees
that is similar to the corresponding GE-sponsored defined contribution plan that was in effect prior to the Spin-Off. Expenses associated
with their participation in GE Vernova's plan for the year ended December 31, 2024 beginning on April 2, 2024 and in GE's plan through
April 1, 2024, and for the years ended December 31, 2023 and 2022, represent the employer contributions for GE Vernova employees, and
were $144 million, $130 million, and $135 million, respectively.
Pension Benefits and Retiree Health and Life Benefits Sponsored by GE Vernova, Including Those Allocated to GE Vernova in
Connection with the Spin-Off**.** GE Vernova sponsored plans, including those allocated to GE Vernova in connection with the Spin-Off, are
presented in three categories: principal pension plans, other pension plans, and principal retiree benefit plans. Certain of these pension
plans, including the principal pension plans, are closed to new participants. Smaller pension plans with pension assets or obligations that
have not reached $50 million and other retiree benefit plans are not presented. Information in this Note is as of a December 31
measurement date for these plans. Plans that were allocated to GE Vernova on January 1, 2023 are included in the plan disclosures below
beginning in 2023.
2024 FORM 10-K 68
| DESCRIPTION OF OUR PLANS | ||||
| Plan Category | Participants | Funding | Comments | |
| Principal Pension Plans | GE Energy Pension Plan | Covers U.S. participants ~37,000 retirees and beneficiaries, ~11,000 vested former employees and ~5,500 active employees | Our 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. | This plan is closed to new participants. Benefits for employees with salaried benefits are frozen. These employees receive increased Company contributions in the company sponsored defined contribution plan in lieu of participation in a defined benefit plan. |
| GE Energy Supplementary Pension Plan | Provides supplementary benefits to higher-level, longer- service U.S. employees | Unfunded. We pay benefits from Company cash. | This plan is closed to new participants. Annuity benefits for employees who became executives before 2011 are frozen. All participants accrue an installment benefit. | |
| Other Pension Plans(a) | 20 predominantly non-U.S. pension plans with pension assets or obligations that have reached $50 million. | Covers ~31,800 retirees and beneficiaries, ~16,000 vested former employees and ~5,300 active employees | Our 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 Plans | Provides health and life insurance benefits to certain eligible participants. | Covers U.S. participants ~31,100 retirees and dependents and ~5,200 active employees | We fund retiree health benefit plans on a pay-as-you-go basis. | Participants share in the cost of the healthcare benefits. |
(a) Disclosed plans that fall below $50 million are not removed from the presentation unless part of a disposition or plan termination.
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 Energy Pension Plan during 2024, and based on our current assumptions, we do not anticipate having to
make additional required contributions to the plan in the near future.
As of the measurement date of December 31, we would expect to pay approximately $33 million for benefit payments under our GE Energy
Supplementary Pension Plan and administrative expenses of our principal pension plans and would expect to contribute approximately $74
million to other pension plans in 2025. We fund retiree benefit plans on a pay-as-you-go basis. As of the measurement date of December
31, we would expect to contribute approximately $77 million in 2025 to fund such benefits.
| PLAN OBLIGATIONS IN EXCESS OF PLAN ASSETS | |||||||
| December 31 | 2024 | 2023 | |||||
| Principal pension | Other pension | Principal retiree benefit | Principal pension | Other pension | Principal retiree benefit | ||
| Projected/Accumulated postretirement benefit obligation(a) | $10,274 | $1,064 | $752 | $10,780 | $1,048 | $766 | |
| Fair value of plan assets | 8,920 | 576 | — | 9,491 | 410 | — | |
| Funded status - surplus (deficit) | $(1,354) | $(488) | $(752) | $(1,289) | $(638) | $(766) |
(a) Represents projected benefit obligation for pension plans and accumulated postretirement benefit obligation for principal retiree benefit
plans.
2024 FORM 10-K 69
| COMPONENTS OF EXPENSE (INCOME) | 2024 | 2023 | 2022 | ||||||
| Principal pension | Other pension | Principal retiree benefit | Principal pension | Other pension | Principal retiree benefit | Other pension | |||
| Service cost - operating(a) | $29 | $32 | $6 | $24 | $31 | $6 | $30 | ||
| Interest cost | 548 | 227 | 37 | 561 | 248 | 41 | 94 | ||
| Expected return on plan assets | (743) | (334) | — | (756) | (349) | — | (281) | ||
| Amortization of net loss (gain) | (183) | 34 | (42) | (210) | 4 | (45) | 9 | ||
| Amortization of prior service cost (credit) | 7 | (8) | (59) | 4 | (6) | (59) | (7) | ||
| Curtailment / settlement loss (gain) | — | 2 | — | — | (6) | — | (7) | ||
| Non-operating benefit costs (income) | $(372) | $(80) | $(65) | $(401) | $(109) | $(63) | $(192) | ||
| Net periodic expense (income) | $(344) | $(48) | $(59) | $(377) | $(78) | $(57) | $(162) | ||
| Weighted-average benefit obligations assumptions | |||||||||
| Discount rate | 5.67% | 3.79% | 5.47% | 5.19% | 3.51% | 5.08% | 3.93% | ||
| Compensation increases | 3.38% | 2.22% | 3.35% | 3.85% | 2.12% | 3.24% | 1.88% | ||
| Initial healthcare trend rate(b) | N/A | N/A | 7.00% | N/A | N/A | 6.50% | N/A | ||
| Weighted-average benefit cost assumptions | |||||||||
| Discount rate | 5.19% | 3.51% | 5.08% | 5.53% | 3.93% | 5.43% | 1.42% | ||
| Expected rate of return on plan assets | 7.00% | 5.07% | —% | 7.00% | 5.65% | —% | 4.70% |
(a) Service cost - operating is an operating expense included in Selling, general, and administrative expenses and Cost of equipment and
Cost of services in our Consolidated and Combined Statement of Income (Loss).
(b) For 2024, ultimately declining to 5.00% for 2034 and thereafter.
| PLAN FUNDED STATUS | ||||||||||||
| 2024 | 2023 | |||||||||||
| Principal pension | Other pension | Principal retiree benefit | Principal pension | Other pension | Principal retiree benefit | |||||||
| Change in Projected Benefit Obligations | ||||||||||||
| Balance at January 1 | $10,780 | $6,712 | $766 | $— | $4,756 | $— | ||||||
| Service cost | 29 | 32 | 6 | 24 | 31 | 6 | ||||||
| Interest cost | 548 | 227 | 37 | 561 | 248 | 41 | ||||||
| Participant contributions | 2 | 18 | 9 | 3 | 19 | 10 | ||||||
| Plan amendments | — | — | — | 17 | — | — | ||||||
| Actuarial loss (gain) – net(a) | (451) | (312) | 18 | 300 | 438 | (5) | ||||||
| Benefits paid | (767) | (372) | (86) | (766) | (424) | (87) | ||||||
| Curtailments/settlements | — | (145) | — | — | (11) | — | ||||||
| Transfers and other - net(b) | 133 | (29) | 3 | 10,641 | 1,343 | 801 | ||||||
| Exchange rate adjustments | — | (210) | — | — | 312 | — | ||||||
| Balance at December 31 | $10,274 | (c) | $5,921 | $752 | (d) | $10,780 | (c) | $6,712 | $766 | (d) | ||
| Change in Plan Assets | ||||||||||||
| Balance at January 1 | $9,491 | $6,851 | $— | $— | $4,805 | $— | ||||||
| Actual gain (loss) on plan assets | 40 | 74 | — | 602 | 437 | — | ||||||
| Employer contributions | 33 | 105 | 78 | 28 | 102 | 77 | ||||||
| Participant contributions | 2 | 18 | 9 | 3 | 19 | 10 | ||||||
| Benefits paid | (767) | (372) | (86) | (766) | (424) | (87) | ||||||
| Curtailments/settlements | — | (137) | — | — | (11) | — | ||||||
| Transfers and other - net(b) | 121 | — | — | 9,624 | 1,569 | — | ||||||
| Exchange rate adjustments | — | (210) | — | — | 354 | — | ||||||
| Balance at December 31 | $8,920 | $6,329 | $— | $9,491 | $6,851 | $— | ||||||
| Funded status - surplus (deficit) | $(1,354) | $409 | $(752) | $(1,289) | $139 | $(766) |
(a)Primarily due to the impact of discount rates.
(b)Primarily relates to plans allocated to GE Vernova on January 1, 2023.
(c)The benefit obligation for the GE Energy Supplementary Pension Plan, which is an unfunded plan, was $533 million and $541 million at
December 31, 2024 and 2023, respectively.
(d)The benefit obligation for retiree health plan was $429 million and $447 million at December 31, 2024 and 2023, respectively.
2024 FORM 10-K 70
| AMOUNTS RECORDED IN THE CONSOLIDATED AND COMBINED STATEMENT OF FINANCIAL POSITION | |||||||
| 2024 | 2023 | ||||||
| December 31 | Principal pension | Other pension | Principal retiree benefit | Principal pension | Other pension | Principal retiree benefit | |
| All other non-current assets | $— | $896 | $— | $— | $775 | $— | |
| All other current liabilities | (31) | (15) | (75) | (30) | (18) | (77) | |
| Non-current compensation and benefits liabilities | (1,322) | (472) | (677) | (1,259) | (581) | (689) | |
| Current liabilities of business held for sale | — | — | — | — | (37) | — | |
| Net amount recorded | $(1,354) | $409 | $(752) | $(1,289) | $139 | $(766) | |
| AMOUNTS RECORDED IN AOCI | |||||||
| 2024 | 2023 | ||||||
| December 31 | Principal pension | Other pension | Principal retiree benefit | Principal pension | Other pension | Principal retiree benefit | |
| Prior service cost (credit) | $5 | $(22) | $(306) | $12 | $(25) | $(366) | |
| Net loss (gain) | 11 | 614 | (315) | (404) | 719 | (375) | |
| Total recorded in AOCI | $15 | $592 | $(621) | $(392) | $694 | $(741) |
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.
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 7.0% long-term expected return on the GE Energy Pension Plan assets for cost recognition in 2024 and 2025.
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 and are amortized into earnings over the remaining
average future service of active participating employees or the expected life of inactive participants, as applicable.
2024 FORM 10-K 71
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 2 and have been applied consistently.
| COMPOSITION OF PLAN ASSETS | |||||
| 2024 | 2023 | ||||
| December 31 | Principal pension | Other pension | Principal pension | Other pension | |
| Global equity securities | $2,524 | $932 | $634 | $943 | |
| Debt securities(a) | 4,383 | 3,182 | 4,598 | 2,759 | |
| Real estate | 254 | 250 | 247 | 12 | |
| Other investments | 159 | 46 | 197 | 161 | |
| Plan assets measured at fair value | $7,320 | $4,410 | $5,676 | $3,875 | |
| Global equities | $— | $163 | $1,013 | $391 | |
| Debt securities | — | 1,050 | 609 | 1,554 | |
| Real estate | 340 | 484 | 340 | 775 | |
| Other investments | 1,260 | 222 | 1,853 | 256 | |
| Plan assets measured at net asset value | $1,600 | $1,919 | $3,815 | 2,976 | |
| Total plan assets | $8,920 | $6,329 | $9,491 | $6,851 |
(a)GE Energy Pension Plan assets as of December 31, 2024 and 2023 include $1,299 million and $2,105 million, respectively, of U.S.
corporate debt securities, primarily made up of investment-grade bonds of U.S. issuers from diverse industries, and $1,646 million and
$1,932 million, respectively, of other debt securities, primarily made up of 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. Other pension
plan assets as of December 31, 2024 and 2023 include debt securities primarily made up of fixed income and cash investment funds.
Those investments that were measured at Net Asset Value (NAV) as a practical expedient were excluded from the fair value hierarchy.
GE Energy Pension Plan investments with a fair value of $399 million and $383 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 $1,667 million and $1,272 million at December 31, 2024 and 2023, respectively, were
classified within Level 1 and primarily relate to global equities and debt securities. Investments with a fair value of $5,254 million and
$4,050 million at December 31, 2024 and 2023, respectively, were classified within Level 2 and primarily relate to debt securities.
Other pension plan investments with a fair value of $256 million and $18 million at December 31, 2024 and 2023, respectively, were
classified within Level 3 and primarily relate to private equities and real estate. The increase in the Level 3 category during 2024 was
primarily due to hierarchy reassessment. The remaining investments were substantially all considered Level 1 and 2. Investments with a
fair value of $498 million and $757 million at December 31, 2024 and 2023, respectively, were classified within Level 1 and primarily relate
to global equities and debt securities. Investments with a fair value of $3,656 million and $2,766 million at December 31, 2024 and 2023,
respectively, were classified within Level 2 and primarily relate to debt securities.
| ASSET ALLOCATION OF PENSION PLANS | 2024 Target allocation | 2024 Actual allocation | |||||||
| Principal Pension | Other Pension (weighted average) | Principal Pension | Other Pension (weighted average) | ||||||
| Global equity securities | 41 | % | 21 | % | 28 | % | 17 | % | |
| Debt securities (including cash equivalents) | 40 | 61 | 49 | 67 | |||||
| Real estate | 2 | 9 | 7 | 12 | |||||
| Other investments | 17 | 9 | 16 | 4 |
Plan fiduciaries set investment policies and strategies for the assets held in the pension plans and oversee their investment allocations,
which includes selecting investment managers and setting long-term strategic targets.
GE securities represented 0.2% of the GE Energy Pension Plan assets at December 31, 2023.
| EXPECTED FUTURE BENEFIT PAYMENTS OF OUR BENEFIT PLANS(a) | Principal pension | Other pension | Principal retiree benefit |
| 2025 | $786 | $417 | $77 |
| 2026 | 789 | 386 | 77 |
| 2027 | 791 | 391 | 77 |
| 2028 | 792 | 385 | 76 |
| 2029 | 790 | 381 | 76 |
| 2030-2034 | 3,867 | 1,857 | 337 |
(a) As of the measurement date of December 31, 2024.
2024 FORM 10-K 72
| PRE-TAX COST OF POSTRETIREMENT BENEFIT PLANS AND CHANGES IN OTHER COMPREHENSIVE INCOME | |||||||||
| 2024 | 2023 | 2022 | |||||||
| Principal pension | Other pension | Principal retiree benefit | Principal pension | Other pension | Principal retiree benefit | Other pension | |||
| Cost (income) of postretirement benefit plans | $(344) | $(48) | $(59) | $(377) | $(78) | $(57) | $(162) | ||
| Changes in other comprehensive loss (income) | |||||||||
| Prior service cost (credit) – current year | — | — | — | 17 | — | — | — | ||
| Net loss (gain) - current year | 252 | (76) | 18 | 454 | 355 | (5) | (28) | ||
| Reclassifications out of AOCI | |||||||||
| Transfers and other - net(a) | (21) | 1 | — | (1,069) | 268 | (840) | — | ||
| Curtailment/settlement gain (loss) | — | (2) | — | — | 6 | — | 6 | ||
| Amortization of net gain (loss) | 183 | (34) | 42 | 210 | (4) | 45 | (9) | ||
| Amortization of prior service credit (cost) | (7) | 8 | 59 | (4) | 6 | 59 | 8 | ||
| Total changes in other comprehensive loss (income) | 407 | (102) | 120 | (392) | 631 | (741) | (23) | ||
| Cost (income) of postretirement benefit plans and changes in other comprehensive loss (income) | $64 | $(151) | $60 | $(769) | $553 | $(798) | $(185) |
(a) Primarily relates to plans allocated to GE Vernova on January 1, 2023.
NOTE 14**.** CURRENT AND ALL OTHER LIABILITIES
| December 31 | 2024 | 2023 |
| Employee compensation and benefit liabilities | $1,824 | $1,619 |
| Equipment projects and other commercial liabilities | 1,616 | 1,126 |
| Product warranties (Note 22) | 553 | 629 |
| Derivative instruments (Note 20) | 171 | 74 |
| Operating lease liabilities (Note 7) | 163 | 193 |
| Restructuring liabilities (Note 23) | 231 | 186 |
| Short-term borrowings | 60 | 145 |
| Taxes payable | 80 | 123 |
| Other(a) | 797 | 257 |
| All other current liabilities | $5,496 | $4,352 |
| Equipment projects and other commercial liabilities | $362 | $531 |
| Legal liabilities (Note 22) | 459 | 604 |
| Product warranties (Note 22) | 816 | 785 |
| Operating lease liabilities (Note 7) | 562 | 525 |
| Uncertain and other income taxes and related liabilities | 1,170 | 803 |
| Asset retirement obligations (Note 22) | 510 | 581 |
| Environmental, health and safety liabilities (Note 22) | 138 | 127 |
| Finance lease liabilities and other long-term borrowings | 258 | 294 |
| Deferred income (Note 9) | 157 | 173 |
| Derivative instruments (Note 20) | 46 | 34 |
| Other(b) | 639 | 323 |
| All other liabilities | $5,116 | $4,780 |
(a)Primarily included liabilities related to business disposition activities, dividends payable, and asset retirement obligations.
(b)Primarily included indemnification liabilities in connection with agreements entered into with GE related to the Spin-Off. See Note 22 for
further information.
NOTE 15**.** INCOME TAXE****S
Components of Income Taxes. The components of income (loss) before income taxes and the provision (benefit) for income taxes,
excluding other comprehensive income (loss) and changes in equity attributable to noncontrolling interests recorded after-tax, for the years
ended December 31 were as follows:
| INCOME (LOSS) BEFORE INCOME TAXES | 2024 | 2023 | 2022 |
| U.S. | $1,285 | $(357) | $(1,081) |
| Non-U.S. | 1,213 | 227 | (1,393) |
| Total | $2,498 | $(130) | $(2,474) |
2024 FORM 10-K 73
| PROVISION (BENEFIT) FOR INCOME TAXES | 2024 | 2023 | 2022 |
| Current | |||
| U.S. Federal | $272 | $(184) | $(2) |
| U.S. State and Local | 55 | — | — |
| Non-U.S. | 636 | 500 | 426 |
| Deferred | |||
| U.S. Federal | (10) | — | — |
| U.S. State and Local | (1) | — | — |
| Non-U.S. | (13) | 28 | (176) |
| Total | $939 | $344 | $248 |
Effective Tax Rate Reconciliation. A reconciliation of the U.S. federal statutory income tax rate to the effective tax rate was as follows:
| 2024 | 2023 | 2022 | ||||||
| Amount | Rate | Amount | Rate | Amount | Rate | |||
| U.S. federal statutory income tax rate | $525 | 21.0% | $(27) | 21.0% | $(520) | 21.0% | ||
| State taxes, net of federal benefit | 43 | 1.7 | (46) | 35.3 | (31) | 1.3 | ||
| Tax on global activities including exports | 80 | 3.2 | (83) | 64.0 | (24) | 1.0 | ||
| Tax on undistributed foreign earnings | 103 | 4.1 | — | — | — | — | ||
| Share-based compensation | (37) | (1.5) | — | — | — | — | ||
| Uncertain tax positions | (101) | (4.0) | (61) | 47.2 | (33) | 1.3 | ||
| U.S. business credits and incentives(a) | (126) | (5.0) | (208) | 160.0 | (187) | 7.6 | ||
| Valuation allowances | 647 | 25.9 | 774 | (594.5) | 951 | (38.5) | ||
| Business disposition(b) | (193) | (7.7) | — | — | — | — | ||
| All other – net | (2) | (0.1) | (5) | 2.9 | 92 | (3.7) | ||
| Effective tax rate | $939 | 37.6% | $344 | (264.1)% | $248 | (10.0)% |
(a)U.S. business credits and incentives primarily includes the tax benefit of the advanced manufacturing credit, tax credits for energy
produced from renewable sources, and tax credits for research performed in the U.S. The Company uses the flow-through method to
account for investment tax credits. Under this method, the investment tax credits are recognized as a reduction to income tax expense.
(b)Business disposition resulted from a pre-tax gain with an insignificant tax impact from the sale of a portion of Steam Power nuclear
activities to EDF.
The Organization for Economic Co-operation and Development has proposed a global minimum tax of 15% of reported profits (Pillar Two)
that has been agreed upon in principle by over 140 countries. During 2023, many countries took steps to incorporate Pillar Two model rule
concepts into their domestic laws. Although the model rules provide a framework for applying the minimum tax, countries may enact Pillar
Two slightly differently than the model rules and on different timelines and may adjust domestic tax incentives in response to Pillar Two.
Accordingly, we continue to evaluate the potential consequences of Pillar Two on our longer-term financial position as related tax laws are
enacted. In 2024, we incurred insignificant tax expenses in connection with Pillar Two.
2024 FORM 10-K 74
Deferred Income Taxes. The components of the net deferred tax asset (liability) for the years ended December 31 were as follows:
| December 31 | 2024 | 2023 |
| Deferred tax assets | ||
| Contract liabilities, contract assets and deferred income | $2,633 | $2,005 |
| Principal pension plans | 381 | 702 |
| Other compensation and benefits | 451 | 261 |
| Accrued expenses | 313 | 403 |
| Intangible assets | 503 | 690 |
| Tax loss carryforwards(a)(b) | 5,722 | 6,775 |
| Tax credit carryforwards(a)(c) | 208 | 806 |
| Other | 124 | 95 |
| Total deferred tax assets | $10,335 | $11,737 |
| Valuation allowances(d) | (8,420) | (9,706) |
| Total deferred tax assets after valuation allowances | $1,915 | $2,031 |
| Deferred tax liabilities | ||
| Property, plant, and equipment | $— | $(97) |
| Global investments, partnerships, joint ventures and non-consolidated | (709) | (588) |
| Other(e) | (394) | (146) |
| Total deferred tax (liabilities) | $(1,103) | $(831) |
| Net deferred tax asset (liability) | $812 | $1,200 |
(a)Certain U.S. tax attributes, primarily tax loss carryforwards and tax credit carryforwards, were retained by GE following the Spin-off.
See Note 1 for further information regarding the Tax Matters Agreement.
(b)Tax loss carryforwards as of December 31, 2024 are primarily related to Switzerland and other foreign jurisdictions, which if unused,
approximately $2,349 million will expire between 2025-2044 and $3,373 million do not expire.
(c) Tax credit carryforwards as of December 31, 2024 are primarily related to U.S. foreign tax credits and research performed in the U.S.,
which if unused, will expire in various years through 2034.
(d) Valuation allowances decreased by $1,286 million in 2024 primarily due to a reduction in deferred tax assets related to certain U.S. tax
attributes retained by GE following the Spin-off and a $140 million net decrease resulting from a change in judgement regarding the
realizability of deferred tax assets in certain foreign jurisdictions, partially offset by additional tax loss carryforwards in certain foreign
jurisdictions where it is more likely than not the tax benefits will not be realized.
(e) We recognized $287 million of foreign deferred tax liabilities transferred from GE in 2024 related to separation activities. See Note 1 for
further information regarding the Tax Matters Agreement.
We regularly assess the realizability of our deferred tax assets based on all available evidence both positive and negative. Based on our
assessment of the realizability of our deferred tax assets as of December 31, 2024, we continue to maintain valuation allowances against
our deferred tax assets in the U.S. and certain foreign jurisdictions, primarily due to cumulative losses in those jurisdictions. Given the
current year profit and anticipated future profitability in the U.S., it is reasonably possible that the continued improvement in our U.S.
operations could result in the positive evidence necessary to warrant the release of a significant portion of our U.S. valuation allowance as
early as the second half of 2025. A release of the valuation allowance would result in the recognition of certain U.S. deferred tax assets and
a corresponding benefit in our provision for income taxes in the period the release occurs.
As of December 31, 2024, we recognized a $103 million deferred tax liability, primarily related to withholding taxes, on undistributed
earnings we anticipate repatriating from certain highly-inflationary or currency restricted foreign jurisdictions. No deferred tax liability has
been provided on undistributed earnings of approximately $6,500 million from all other foreign subsidiaries which are considered to be
permanently reinvested. It is not practicable to determine the applicable income taxes payable on the permanently reinvested earnings if
fully repatriated to the U.S.
Income Taxes Paid. The Company's portion of income taxes for U.S. and certain foreign jurisdictions prior to the separation were deemed
settled at the date of the Spin-Off. Cash paid directly to tax authorities for income taxes was $872 million in 2024 and was not significant in
2022 and 2023.
2024 FORM 10-K 75
Uncertain Tax Positions. A reconciliation of the beginning and ending liability for uncertain tax positions was as follows:
| UNCERTAIN TAX POSITIONS RECONCILIATION | 2024 | 2023 |
| Balance at January 1 | $643 | $763 |
| Additions for tax positions of the current year | 1 | 6 |
| Additions for tax positions of prior years | 30 | 63 |
| Reductions for tax positions of prior years | (133) | (92) |
| Settlements with tax authorities | (10) | (55) |
| Expiration of statutes of limitation | (55) | (51) |
| Foreign currency effect | (24) | 9 |
| Balance at December 31 | $452 | $643 |
| Accrued interest on uncertain tax positions | 116 | 151 |
| Accrued penalties on uncertain tax positions | 70 | 92 |
| Balance at December 31, including interest and penalties | $638 | $886 |
Of the $638 million and $886 million liability for uncertain tax positions including interest and penalties at December 31, 2024 and 2023,
respectively, $434 million and $651 million, respectively, are recorded in All other liabilities and $204 million and $235 million, respectively,
are recorded as a net offset to Deferred income taxes on our Combined Statement of Financial Position. If recognized, $318 million and
$251 million of the liability for uncertain tax positions at December 31, 2024 and 2023, respectively, would impact our effective tax rate.
As a result of tax audit closings, settlements with tax authorities, and the expiration of applicable statutes of limitation in various
jurisdictions, it is reasonably possible that the liability for uncertain tax positions could be reduced by approximately $37 million in the next
12 months.
For the years ended December 31, 2024, 2023, and 2022, net interest expense (income) of $(19) million, $20 million, and $6 million,
respectively, was recognized in Interest and other financial charges – net and penalty expense of $(21) million, $8 million, and $(11) million,
respectively, was recognized in our Provision for income taxes on our Combined Statement of Income (Loss).
Annually, we file over 2,600 income tax returns in over 270 global taxing jurisdictions. We are under examination or engaged in tax litigation
in many of these jurisdictions. The IRS is currently auditing the combined GE U.S. income tax returns for 2016-2021. In December 2020,
the IRS completed the audit of the combined GE U.S. income tax returns for 2014-2015. The Company has provided for its potential tax
exposure from uncertain tax positions as part of the combined GE U.S. income tax returns as an indemnification obligation with GE in
accordance with the Tax Matters Agreement.
NOTE 16**.** ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) AND COMMON STOCK
| Currency translation adjustment | Benefit plans | Cash flow hedges | Total AOCI | |
| Balance as of January 1, 2024 | $(1,335) | $674 | $26 | $(635) |
| Transfer or allocation of benefit plans – net of taxes of $49, $(203), and $— | — | (182) | — | (182) |
| AOCI before reclasses – net of taxes of $(16), $(7), and $— (a) | (285) | (225) | (14) | (524) |
| Reclasses from AOCI – net of taxes of $—, $(61), and $1 (b) | (111) | (323) | 21 | (414) |
| Less: AOCI attributable to noncontrolling interests | 2 | 2 | — | 4 |
| Balance as of December 31, 2024 | $(1,734) | $(58) | $33 | $(1,759) |
| Balance as of January 1, 2023 | $(1,445) | $32 | $(43) | $(1,456) |
| Transfer or allocation of benefit plans – net of taxes of $—, $70, and $— | — | 1,702 | — | 1,702 |
| AOCI before reclasses – net of taxes of $—, $48, and $(1) | 95 | (735) | 45 | (595) |
| Reclasses from AOCI – net of taxes of $—, $(2), and $— | 19 | (327) | 24 | (284) |
| Less: AOCI attributable to noncontrolling interests | 4 | (2) | — | 2 |
| Balance as of December 31, 2023 | $(1,335) | $674 | $26 | $(635) |
| Balance as of January 1, 2022 | $(1,192) | $(43) | $(21) | $(1,256) |
| AOCI before reclasses – net of taxes of $8, $12, and $(1) | (254) | 106 | (46) | (194) |
| Reclasses from AOCI – net of taxes of $—, $4, and $— | — | (28) | 24 | (4) |
| Less: AOCI attributable to noncontrolling interests | (1) | 3 | — | 2 |
| Balance as of December 31, 2022 | $(1,445) | $32 | $(43) | $(1,456) |
(a) Currency translation adjustment includes $39 million of AOCI allocated to us in connection with the Spin-Off.
(b) The total reclassification of AOCI included $111 million of currency translation adjustment related to the sale of a portion of Steam Power
nuclear activities to EDF. See Notes 3 and 19 for further information.
Common Stock. On April 2, 2024, the Company began trading as an independent, publicly traded company under the stock symbol “GEV”
on the New York Stock Exchange. On April 2, 2024, there were 274,085,523 shares of GE Vernova common stock outstanding. On
December 31, 2024, there were 275,880,314 shares of GE Vernova common stock outstanding. On December 10, 2024, we announced
that the Board of Directors had authorized up to $6 billion of common stock repurchases.
2024 FORM 10-K 76
NOTE 17**.** SHARE-BASED COMPENSATION**.** We grant stock options, restricted stock units (RSUs), and performance share units
(PSUs) to employees under the 2024 Long-Term Incentive Plan (LTIP). Under the LTIP, we are authorized to issue up to approximately
25 million shares. 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, RSUs vest, and PSUs are earned, we issue
shares from authorized unissued common stock.
Stock options provide awardees the opportunity to purchase shares of GE Vernova common stock in the future at the market price of our
common stock on the date the award is granted (Strike price). The options become exercisable over the vesting period, typically becoming
fully vested in either 3 or 4 years from the date of grant, and generally expire 10 years from the grant date if not exercised. RSUs entitle the
awardee to receive shares of GE Vernova common stock upon vesting. PSUs entitle an awardee to receive shares of GE Vernova common
stock upon certification by the Company's Compensation and Human Capital Committee of the level of performance achievement of the
applicable performance metrics over a defined performance period. We value stock options using a Black-Scholes option pricing model,
RSUs using the market price of our common stock on the grant date, and PSUs using the market price of our common stock on the grant
date and a Monte Carlo simulation as needed based on performance metrics.
The following tables provide the weighted average fair value of options, RSUs, and PSUs granted under the 2024 LTIP to employees
during the nine months ended December 31, 2024 and the related stock option valuation assumptions used in the Black-Scholes model.
| WEIGHTED AVERAGE GRANT DATE FAIR VALUE (In dollars) | December 31, 2024 |
| Stock options | $69.56 |
| RSUs | 167.57 |
| PSUs | 182.85 |
| KEY ASSUMPTIONS USED IN THE BLACK-SCHOLES VALUATION FOR STOCK OPTIONS | December 31, 2024 |
| Risk-free interest rate | 4.3% |
| Dividend yield | —% |
| Expected volatility | 30% |
| Expected term (in years) | 6.8 |
| Strike price (in dollars) | $170.03 |
For new awards granted in 2024, the expected volatility was derived from a peer group’s blended historical and implied volatility as GE
Vernova does not have sufficient historical volatility based on the expected term of the underlying options. The expected term of the stock
options was determined using the simplified method. The risk-free interest rate was determined using the implied yield currently available
for zero-coupon U.S. government issues with a remaining term approximating the expected life of the options.
| SHARE-BASED COMPENSATION ACTIVITY | Stock options | |||
| Shares (in thousands) | Weighted average exercise price (in dollars) | Weighted average contractual term (in years) | Intrinsic value (in millions) | |
| Outstanding at April 2, 2024(a) | 2,514 | $101.32 | ||
| Granted | 1,450 | 170.03 | ||
| Exercised | (1,155) | 114.48 | ||
| Forfeited | (19) | 169.36 | ||
| Expired | (54) | 128.95 | ||
| Outstanding at December 31, 2024 | 2,737 | $131.16 | 6.6 | $541 |
| Exercisable at December 31, 2024 | 1,201 | $90.45 | 3.2 | $286 |
| Expected to vest | 1,171 | $161.30 | 9.3 | $196 |
| RSUs | PSUs | ||||||||
| Shares (in thousands) | Weighted average grant date fair value (in dollars) | Weighted average vesting period (in years) | Intrinsic value (in millions) | Shares (in thousands) | Weighted average grant date fair value (in dollars) | Weighted average vesting period (in years) | Intrinsic value (in millions) | ||
| Outstanding at April 2, 2024(a) | 3,797 | $59.34 | 741 | $75.35 | |||||
| Granted | 663 | 167.57 | 788 | 123.12 | |||||
| Vested(b) | (1,294) | 45.70 | (436) | — | |||||
| Forfeited | (157) | 82.25 | (18) | 150.68 | |||||
| Expired | N/A | N/A | N/A | N/A | |||||
| Outstanding at December 31, 2024 | 3,008 | $89.06 | 1.2 | $989 | 1,076 | $128.74 | 1.6 | $354 | |
| Expected to vest | 2,811 | $88.04 | 1.2 | $924 | 948 | $126.25 | 1.5 | $312 |
(a) On April 2, 2024, the Company began trading as an independent, publicly traded company under the stock symbol “GEV” on the New
York Stock Exchange. The beginning shares outstanding pertain to GE equity-based awards issued by GE in prior periods that were
converted to GE Vernova equity-based awards as part of the Spin-Off. The conversion to GE Vernova awards was considered a
modification of the original award. Incremental fair value recognized was not significant.
(b) Vesting of PSUs associated with performance shares originally awarded and recognized by GE.
2024 FORM 10-K 77
Share-based compensation expense is recognized within Cost of equipment, Cost of services, Selling, general, and administrative
expenses, and Research and development expenses, as appropriate, in the Consolidated and Combined Statement of Income (Loss).
| SHARE-BASED COMPENSATION EXPENSE | 2024 |
| Share-based compensation expense (pre-tax) | $155 |
| Income tax benefits | (59) |
| Share-based compensation expense (after-tax) | $96 |
| OTHER SHARE-BASED COMPENSATION DATA | |
| Unrecognized compensation expense as of December 31, 2024(a) | $255 |
| Cash received from stock options exercised for the year ended December 31, 2024(b) | 130 |
| Intrinsic value of stock options exercised and RSU/PSUs vested in the year ended December 31, 2024(b) | 424 |
(a) Amortized over a weighted average period of 1.1 years.
(b) Represents data after the Spin-Off as employees participated in GE equity-based awards prior to separation.
NOTE 18**.** EARNINGS PER SHARE INFORMATION**.** On April 2, 2024, there were approximately 274 million shares of GE Vernova
common stock outstanding. The computation of basic and diluted earnings (loss) per common share for all periods through April 1, 2024
was calculated using 274 million common shares and is net of Net loss (income) attributable to noncontrolling interests. For periods prior to
the Spin-Off, there were no dilutive equity instruments as there were no equity awards of GE Vernova outstanding prior to the Spin-Off. The
dilutive effect of outstanding stock options, restricted stock units, and performance share units is reflected in the denominator for diluted
EPS using the treasury stock method.
| (In millions, except per share amounts) | 2024 | 2023 | 2022 |
| Numerator: | |||
| Net income (loss) | $1,559 | $(474) | $(2,722) |
| Net loss (income) attributable to noncontrolling interests | (7) | 36 | (14) |
| Net income (loss) attributable to GE Vernova | $1,552 | $(438) | $(2,736) |
| Denominator: | |||
| Basic weighted-average shares outstanding | 275 | 274 | 274 |
| Dilutive effect of common stock equivalents | 3 | — | — |
| Diluted weighted-average shares outstanding | 278 | 274 | 274 |
| Basic earnings (loss) per share | $5.65 | $(1.60) | $(10.00) |
| Diluted earnings (loss) per share | $5.58 | $(1.60) | $(10.00) |
| Antidilutive securities(a) | 1 | — | — |
(a) Diluted earnings (loss) per share excludes certain shares issuable under share-based compensation plans because the effect would
have been antidilutive.
NOTE 19**.** OTHER INCOME (EXPENSE) – NET
| 2024 | 2023 | 2022 | |
| Equity method investment income (loss) (Note 11) | $53 | $(64) | $60 |
| Net interest and investment income (loss) | 66 | 63 | 42 |
| Purchases and sales of business interests(a) | 1,147 | 209 | 22 |
| Derivative instruments (Note 20) | (5) | (25) | 47 |
| Licensing income | 38 | 97 | 71 |
| Other – net | 72 | 44 | 128 |
| Total other income (expense) – net | $1,372 | $324 | $370 |
(a)2024 includes a pre-tax gain of $964 million related to the sale of a portion of Steam Power nuclear activities to EDF and a pre-tax gain
of $66 million related to the sale of a portion of our China XD Electric Co., Ltd. equity method investment in our Electrification segment.
2023 includes a pre-tax gain of $90 million related to the sale of an equity method investment at Financial Services. See Notes 3, 11,
15, and 16 for further information.
NOTE 20**.** FINANCIAL INSTRUMENTS
Loans and Other Receivables. The Company’s financial assets not carried at fair value primarily consist of loan receivables and
noncurrent customer and other receivables. The net carrying amount was $318 million and $328 million as of December 31, 2024 and
2023, respectively. The estimated fair value was $315 million and $324 million as of December 31, 2024 and 2023, respectively. All of these
assets are considered to be Level 3.
Derivatives and Hedging. Our primary objective in executing and holding derivatives is to reduce the earnings and cash flow volatility
associated with fluctuations in foreign currency exchange rates and commodity prices over the terms of our customer contracts. These
hedge contracts reduce, but do not entirely eliminate, the impact of foreign currency exchange rate and commodity price movements. The
Company does not enter into or hold derivative instruments for speculative trading purposes.
2024 FORM 10-K 78
We use foreign currency contracts to reduce the volatility of cash flows related to forecasted revenues, expenses, assets, and liabilities.
These contracts are generally one to 11 months in duration but with maximum remaining maturities of up to 15 years as of December 31,
- The objective of the foreign currency contracts is to ultimately reduce the extent to which functional currency or U.S. dollar-equivalent
cash flows are affected by changes in the applicable foreign currency exchange rates. We evaluate the effectiveness of our foreign
currency contracts designated as cash flow hedges on a quarterly basis.
The embedded derivatives the Company recognizes primarily consist of foreign currency related features in our purchase or sales contracts
where the currency is not the functional currency of either party to the contract.
Cash Flow Hedges. For derivative instruments designated as cash flow hedges, changes in the fair value of designated hedging
instruments are initially recorded as a component of AOCI and subsequently reclassified to earnings in the period in which the hedged
transaction occurs and to the same financial statement line item impacted by the hedged forecasted transaction.
The total amount in AOCI related to cash flow hedges was a net $33 million gain and a net $26 million gain as of December 31, 2024 and
2023, respectively, of which a net $22 million gain and a net $12 million gain, respectively, related to our share of AOCI recognized at our
non-consolidated joint ventures. We expect to reclassify $45 million of pre-tax net losses associated with designated cash flow hedges to
earnings in the next 12 months, contemporaneously with the earnings effects of the related forecasted transactions. The Company
reclassified net gains (losses) from AOCI into earnings of $(21) million, $(24) million and $(24) million for the years ended December 31,
2024, 2023, and 2022, respectively. As of December 31, 2024, the maximum length of time over which we are hedging forecasted
transactions was approximately 10 years. The cash flows associated with cash flow hedges are recorded through the operating activities
section of the Consolidated and Combined Statement of Cash Flows. The Company assesses effectiveness for foreign currency cash flow
hedges related to long-term projects based on spot-to-spot foreign currency movements and excludes forward points from the assessment
of effectiveness.
Net Investment Hedges. We enter into foreign exchange forwards designated as the hedging instruments in net investment hedging
relationships in order to mitigate the foreign currency risk attributable to the translation of the Company’s net investment in certain non
USD-functional subsidiaries and equity method investees. The total amount in AOCI related to net investment hedges was a net gain of
$33 million and $225 million as of December 31, 2024 and 2023, respectively.
The Company uses the spot method to assess hedge effectiveness for its net investment hedges. As such, for derivative instruments
designated as net investment hedges, changes in fair value of the designated hedging instruments attributable to fluctuations in foreign
currency spot exchange rates only are initially recorded as a component of the cumulative translation adjustments in AOCI until the hedged
investment is either sold or substantially liquidated. All other changes in the fair value of the hedging instrument are recognized in current
earnings.
Non-Designated Hedges. The Company also executes derivative instruments, such as foreign currency forward contracts and commodity
swaps, that are not designated in qualifying hedging relationships under U.S. GAAP. These derivatives are intended to serve as economic
hedges of foreign currency and commodity price risk, and depending on the derivative type, hedges of monetary assets and liabilities,
including intercompany balances subject to remeasurement.
The changes in fair value of non-designated hedges are recorded in line items in the Consolidated and Combined Statement of Income
(Loss) based on the nature of the derivative contract and the underlying item being economically hedged. The cash flows associated with
non-designated hedges are recorded in the same category as the cash flows from the items being economically hedged and are thus
primarily through investing and operating activities of the Consolidated and Combined Statement of Cash Flows.
The following table presents the gross fair values of our outstanding derivative instruments as of the dates indicated:
GROSS FAIR VALUE OF OUTSTANDING DERIVATIVE INSTRUMENTS
| December 31, 2024 | Gross Notional | All other current assets | All other assets | All other current liabilities | All other liabilities |
| Foreign currency exchange contracts accounted for as hedges | $5,789 | $61 | $144 | $58 | $65 |
| Foreign currency exchange contracts | 34,244 | 479 | 159 | 483 | 144 |
| Commodity and other contracts | 436 | 12 | 20 | 12 | 2 |
| Derivatives not accounted for as hedges | $34,681 | $491 | $179 | $495 | $146 |
| Total gross derivatives | $40,469 | $552 | $323 | $552 | $211 |
| Netting adjustment(a) | $(383) | $(166) | $(381) | $(166) | |
| Net derivatives recognized in the Consolidated and Combined Statement of Financial Position | $168 | $158 | $171 | $46 |
(a) 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.
2024 FORM 10-K 79
| December 31, 2023 | Gross Notional | All other current assets | All other assets | All other current liabilities | All other liabilities |
| Foreign currency exchange contracts accounted for as hedges | $5,035 | $39 | $91 | $28 | $41 |
| Foreign currency exchange contracts | 33,832 | 361 | 169 | 364 | 142 |
| Commodity and other contracts | 476 | 10 | 8 | 16 | 1 |
| Derivatives not accounted for as hedges | $34,308 | $371 | $177 | $380 | $143 |
| Total gross derivatives | $39,343 | $410 | $268 | $408 | $184 |
| Netting adjustment(a) | $(334) | $(150) | $(334) | $(150) | |
| Net derivatives recognized in the Consolidated and Combined Statement of Financial Position | $76 | $118 | $74 | $34 |
(a) 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.
PRE-TAX GAINS (LOSSES) RECOGNIZED IN AOCI RELATED TO CASH FLOW AND NET INVESTMENT HEDGES
| 2024 | 2023 | 2022 | |
| Cash flow hedges | $7 | $34 | $(111) |
| Net investment hedges | 2 | (8) | 16 |
The tables below show the effect of our derivative financial instruments in the Consolidated and Combined Statement of Income (Loss):
| For the year ended December 31, 2024 | Sales of equipment and services | Cost of equipment and services | Selling, general, and administrative expenses | Other income (expense) – net |
| Total amount of income (expense) in the Consolidated and Combined Statement of Income (Loss) | $34,935 | $28,850 | $4,632 | $1,372 |
| Foreign currency exchange contracts | (6) | 14 | — | — |
| Interest rate contracts | — | — | — | — |
| Effects of cash flow hedges | $(6) | $14 | $— | $— |
| Foreign currency exchange contracts | (2) | 16 | 88 | (4) |
| Commodity and other contracts | — | 10 | (24) | — |
| Effect of derivatives not designated as hedges | $(2) | $26 | $64 | $(5) |
| For the year ended December 31, 2023 | Sales of equipment and services | Cost of equipment and services | Selling, general, and administrative expenses | Other income (expense) – net |
| Total amount of income (expense) in the Consolidated and Combined Statement of Income (Loss) | $33,239 | $28,421 | $4,845 | $324 |
| Foreign currency exchange contracts | (20) | 1 | — | — |
| Interest rate contracts | — | — | — | (2) |
| Effects of cash flow hedges | $(20) | $1 | $— | $(2) |
| Foreign currency exchange contracts | — | 122 | 1 | (24) |
| Commodity and other contracts | — | 34 | (7) | — |
| Effect of derivatives not designated as hedges | $— | $156 | $(6) | $(24) |
| For the year ended December 31, 2022 | Sales of equipment and services | Cost of equipment and services | Selling, general, and administrative expenses | Other income (expense) – net |
| Total amount of income (expense) in the Consolidated and Combined Statement of Income (Loss) | $29,654 | $26,196 | $5,360 | $370 |
| Foreign currency exchange contracts | (22) | — | — | — |
| Interest rate contracts | — | — | — | (1) |
| Effects of cash flow hedges | $(22) | $— | $— | $(1) |
| Foreign currency exchange contracts | 5 | 129 | 3 | 47 |
| Commodity and other contracts | — | (25) | — | — |
| Effect of derivatives not designated as hedges | $5 | $104 | $3 | $47 |
The amount excluded for cash flow hedges was a gain (loss) of $20 million, $(13) million, and $26 million for the years ended December
31, 2024, 2023, and 2022, respectively. This amount is recognized in Sales of equipment, Sales of services, Cost of equipment, and Cost
of services in our Consolidated and Combined Statement of Income (Loss).
2024 FORM 10-K 80
Counterparty Credit Risk. The Company would be exposed to credit-related losses in the event of non-performance by counterparties on
executed derivative instruments. The credit exposure of derivative contracts is represented by the fair value of contracts as of the reporting
date. The fair value of the Company’s derivatives can change significantly from period to period based on, among other factors, market
movements, and changes in our positions.
We manage concentration of counterparty credit risk by limiting acceptable counterparties to major financial institutions with investment
grade credit ratings, by limiting the amount of credit exposure to individual counterparties, and by actively monitoring counterparty credit
ratings and the amount of individual credit exposure.
We also employ master netting arrangements that limit the risk of counterparty non-payment on a particular settlement date to the net gain
that would have otherwise been received from the counterparty. Although not completely eliminated, we do not consider the risk of
counterparty default to be significant as a result of these protections. Further, none of our derivative instruments are subject to collateral or
other security arrangements, nor do they contain provisions that are dependent on our credit ratings from any credit rating agency.
NOTE 21**.** VARIABLE INTEREST ENTITIES (VIEs)****. In our Consolidated and Combined Statement of Financial Position, we have
assets of $111 million and $122 million and liabilities of $134 million and $156 million as of December 31, 2024 and 2023, respectively, from
consolidated VIEs. These entities were created to help our customers facilitate or finance the purchase of GE Vernova equipment and
services, and to manage our insurance exposure through an insurance captive, 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 $90 million and $1,323 million as of December 31, 2024 and 2023, respectively. Of these
investments, $37 million and $1,272 million as of December 31, 2024 and 2023, respectively, were owned by our Financial Services
business. At December 31, 2023, these investments were substantially all related to renewable energy U.S. tax equity investments that
were subsequently retained by GE in connection with the Spin-Off. See Note 11 for further information. 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 22.
NOTE 22**.** COMMITMENTS**, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIES**
Commitments. We had total investment commitments of $73 million and unfunded lending commitments of $96 million at December 31,
- The commitments primarily consist of obligations to make investments in or provide funding by our Financial Services and Gas
Power businesses. See Note 21 for further information.
Guarantees**.** As of December 31, 2024, we were committed under the following guarantee arrangements:
Credit support**.** We have provided $699 million of credit support on behalf of certain customers or associated companies, predominantly
joint ventures and partnerships, using arrangements such as standby letters of credit and performance guarantees, and a line of credit to
support our consolidated subsidiaries. The liability for such credit support was $6 million. In addition, prior to the Spin-Off, GE provided
parent company guarantees to GE Vernova in certain jurisdictions. See Note 24 for further information.
Indemnification agreements**.** We have $882 million of indemnification commitments, including obligations arising from the Spin-Off, our
commercial contracts, and agreements governing the sale of business assets, for which we recorded a liability of $514 million. The liability
is primarily associated with cash deposits, of which $325 million relates to cash transferred to the Company from GE as part of the Spin-Off
that is restricted in connection with certain legal matters related to legacy GE operations. The liability reflects the use of these funds to
settle any associated obligations and the return of any remaining cash to GE in a future reporting period once resolved. In addition, the
liability includes $140 million of indemnifications in connection with agreements entered into with GE related to the Spin-Off, including the
Tax Matters Agreement.
Product Warranties. We provide for estimated product warranty expenses when we sell the related products. Because warranty estimates
are forecasts that are based on the best available information, mostly historical claims experience, claims costs may differ from amounts
provided. An analysis of changes in the liability for product warranties follows.
| 2024 | 2023 | 2022 | |
| Balance at January 1 | $1,414 | $1,430 | $1,197 |
| Current-year provisions(a) | 687 | 684 | 928 |
| Expenditures | (686) | (719) | (617) |
| Other changes | (45) | 19 | (78) |
| Balance at December 31 | $1,370 | $1,414 | $1,430 |
(a) The increase in current- and prior-year provisions is primarily related to our Wind segment, which, in 2022, was substantially all due to
changes in estimates on pre-existing warranties and related to the deployment of repairs and other corrective measures in Onshore
Wind.
Credit Facilities. We have $6,000 million of credit facilities consisting of (i) a five-year unsecured revolving credit facility in an aggregate
committed amount of $3,000 million (the “Revolving Credit Facility”) provided pursuant to a credit agreement, dated as of March 26, 2024
and (ii) a standby letter of credit and bank guarantee facility in an aggregate committed amount of $3,000 million (the “Trade Finance
Facility” and, together with the Revolving Credit Facility, the “Credit Facilities”). The Revolving Credit Facility is available for borrowings in
U.S. dollars and euros. Up to $500 million of the Revolving Credit Facility is available for the issuance of letters of credit. There were no
borrowings outstanding on this facility as of December 31, 2024. The Trade Finance Facility will be available for the issuance of standby
letters of credit and bank guarantees in U.S. dollars, euros and various other currencies. The Trade Finance Facility has not been utilized
as of December 31, 2024. Each of the Credit Facilities will mature on April 2, 2029. We may voluntarily prepay borrowings under the
Revolving Credit Facility without premium or penalty, subject to customary breakage costs with respect to loans bearing interest by
reference to the applicable adjusted Term Secured Overnight Financing Rate (Term SOFR) or the Euro Interbank Offered Rate (Euribor).
2024 FORM 10-K 81
We may also voluntarily reduce the commitments under the Credit Facilities, in whole or in part, subject to certain minimum reduction
amounts. The Credit Facilities include various customary covenants that limit, among other things, our incurrence of liens and our entry into
certain fundamental change transactions. Fees related to the unused portion of the facilities were not material in the year ended December
31, 2024.
Legal Matters. In the normal course of our business, we are regularly involved in various arbitrations, class actions, commercial litigation,
investigations, or other legal, regulatory, or governmental actions, including the significant matters described below, that could have a
material impact on our results of operations. In many proceedings, including the specific matters described below, it is inherently difficult to
determine whether any loss is probable or even reasonably possible or to estimate the size or range of the possible loss, and accruals for
legal matters are not recorded until a loss for a particular matter is considered probable and reasonably estimable. Given the nature of legal
matters and the complexities involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we
know, among other factors, the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other
relief sought, how discovery or other procedural considerations will affect the outcome, the settlement posture of other parties, and other
factors that may have a material effect on the outcome. For these matters, unless otherwise specified, we do not believe it is possible to
provide a meaningful estimate of loss at this time. Moreover, it is not uncommon for legal matters to be resolved over many years, during
which time relevant developments and new information must be continuously evaluated.
Alstom legacy legal matters. In November 2015, we acquired the power and grid businesses of Alstom, which prior to the acquisition was
the subject of significant cases involving anti-competitive activities and improper payments. The estimated liability balance was $236 million
and $393 million at December 31, 2024 and 2023, respectively, for legal and compliance matters related to the legacy business practices
that were the subject of cases in various jurisdictions. Allegations in these cases relate to claimed anticompetitive conduct or improper
payments in the pre-acquisition period as the source of legal violations or damages. Given the significant litigation and compliance activity
related to these matters and our ongoing efforts to resolve them, it is difficult to assess whether the disbursements will ultimately be
consistent with the estimated liability established. The estimation of this liability may not reflect the full range of uncertainties and
unpredictable outcomes inherent in litigation and investigations of this nature, and at this time we are unable to develop a meaningful
estimate of the range of reasonably possible additional losses beyond the amount of this estimated liability. Factors that can affect the
ultimate amount of losses associated with these and related matters include formulas for determining disgorgement, fines and/or penalties,
the duration and amount of legal and investigative resources applied, political and social influences within each jurisdiction, and tax
consequences of any settlements or previous deductions, among other considerations. Actual losses arising from claims in these and
related matters could exceed the amount provided.
In June 2024, we executed a settlement agreement with the Government of the Kingdom of Saudi Arabia, represented by The Ministry of
Energy (MOE) in connection with certain Alstom steam power construction projects with Saudi Electric Company (SE) won between 1998
and 2008. In November 2015, prior to its acquisition by GE, Alstom had paid a fine and pled guilty to charges brought by the U.S.
Department of Justice under the U.S. Foreign Corrupt Practices Act, including in relation to conduct related to two of these SE steam power
projects. In December 2015, following the acquisition of Alstom by GE, SE contacted GE seeking recompense for alleged reputational
damage and in December 2021, the Saudi Arabia National Anti-Corruption Commission became involved and initiated an investigation. The
settlement of approximately $267 million consists of $141 million in cash payments to the MOE and the remainder as a credit note to SE,
and releases GE Vernova, GE and their respective affiliates from civil and criminal liabilities related to this matter after the settlement
obligations are met. The entire cash settlement of $141 million has been paid as of December 31, 2024.
Environmental and Asset Retirement Obligations. Our operations involve the use, disposal, and cleanup of substances regulated under
environmental protection laws and nuclear decommissioning regulations. We have obligations for ongoing and future environmental
remediation activities and may incur additional liabilities in connection with previously remediated sites. Additionally, like many other
industrial companies, we and our subsidiaries are defendants in various lawsuits related to alleged worker exposure to asbestos or other
hazardous materials. Liabilities for environmental remediation, nuclear decommissioning, and worker exposure claims exclude possible
insurance recoveries.
It is reasonably possible that our exposure will exceed amounts accrued. However, due to uncertainties about the status of laws,
regulations, technology, and information related to individual sites and lawsuits, such amounts are not reasonably estimable. Our reserves
related to environmental remediation and worker exposure claims recorded in All other liabilities were $138 million and $127 million as of
December 31, 2024 and 2023, respectively.
We record asset retirement obligations associated with the retirement of tangible long-lived assets as a liability in the period in which the
obligation is incurred and its fair value can be reasonably estimated. These obligations primarily represent nuclear decommissioning, legal
obligations to return leased premises to their initial state or dismantle and repair specific alterations for certain leased sites. The liability is
measured at the present value of the obligation when incurred and is adjusted in subsequent periods. Corresponding asset retirement costs
are capitalized as part of the carrying value of the related long-lived assets and depreciated over the asset’s useful life. Our asset
retirement obligations were $622 million and $581 million as of December 31, 2024 and 2023, respectively, and are recorded in All other
current liabilities and All other liabilities in our Consolidated and Combined Statement of Financial Position. Of these amounts, $546 million
and $519 million were related to nuclear decommissioning obligations. Changes in the liability balance due to settlement, accretion, and
revisions in fair value were not material during the year ended December 31, 2024.
Expenditures for nuclear decommissioning, site remediation, and worker exposure claims were $11 million, $14 million, and $19 million, for
the years ended December 31, 2024, 2023, and 2022, respectively. We presently expect that such expenditures will be approximately $13
million and $11 million in 2025 and 2026, respectively.
NOTE 23**.** RESTRUCTURING CHARGES AND SEPARATION COSTS
Restructuring and Other Charges. The Company has undertaken or committed to various restructuring initiatives, including workforce
reductions and the consolidation of manufacturing and service facilities. Restructuring and other charges primarily include employee-related
2024 FORM 10-K 82
termination benefits associated with workforce reductions, facility exit costs, asset write-downs, and cease-use costs. We expect the
majority of costs to be incurred within two years of the commitment of a restructuring initiative.
This table is inclusive of all restructuring charges and the charges are shown below for the business where they originated. Separately, in
our reported segment results, major restructuring programs are excluded from measurement of segment operating performance for internal
and external purposes; those excluded amounts are reported in Restructuring and other charges. See Note 25 for further information.
| RESTRUCTURING AND OTHER CHARGES | 2024 | 2023 | 2022 |
| Workforce reductions | $147 | $224 | $119 |
| Plant closures and associated costs and other asset write-downs | 266 | 173 | 166 |
| Acquisition/disposition net charges and other | 8 | 46 | 29 |
| Total restructuring and other charges | $421 | $443 | $314 |
| Cost of equipment and services | $256 | $147 | $192 |
| Selling, general, and administrative expenses | 165 | 296 | 122 |
| Total restructuring and other charges | $421 | $443 | $314 |
| Power | $266 | $124 | $141 |
| Wind | 141 | 232 | 156 |
| Electrification | 19 | 54 | 1 |
| Other | (5) | 33 | 16 |
| Total restructuring and other charges(a) | $421 | $443 | $314 |
(a) Includes $248 million, $227 million, and $203 million for the years ended December 31, 2024, 2023, and 2022, respectively, primarily of
non-cash impairment, accelerated depreciation, and other charges not reflected in the liability table below.
Liabilities associated with restructuring activities were recorded in All other current liabilities, All other liabilities, and Non-current
compensation and benefits.
| RESTRUCTURING LIABILITIES | 2024 | 2023 | 2022 |
| Balance as of January 1 | $276 | $283 | $434 |
| Additions | 173 | 216 | 111 |
| Payments | (238) | (222) | (240) |
| Foreign exchange and other | 97 | (1) | (22) |
| Balance as of December 31 | $308 | $276 | $283 |
In addition to the continued impacts of ongoing initiatives, restructuring primarily included exit activities associated with previously
announced plans in October 2022 primarily reflecting the selectivity strategy to operate in fewer markets and to simplify and standardize
product variants across our Wind businesses. The estimated cost of this multi-year restructuring program was approximately $600 million.
This plan was expanded during the third quarter of 2023 to include the consolidation of the global footprint and related resources at our
Power businesses to better serve our customers. In the third quarter of 2024, in order to transform and optimize our global footprint, we
announced the restructuring of our Hydro Power business, as a result of which we recognized $155 million of charges, which is the vast
majority of the estimated cost of this program. The costs incurred in the year ended December 31, 2024 primarily relates to a non-cash pre-
tax impairment charge of property, plant, and equipment. See Note 6 for further information.
Separation Costs. In connection with the Spin-Off, the Company recognized separation costs (benefits) of $(9) million for the year ended
December 31, 2024 in our Consolidated and Combined Statement of Income (Loss). Separation costs (benefits) include system
implementations, advisory fees, one-time stock option grant, and other one-time costs, which are primarily recorded in Selling, general, and
administrative costs. In addition, in connection with GE retaining certain renewable energy U.S. tax equity investments as part of the Spin-
Off, the Company recognized a $136 million benefit in the second quarter related to deferred intercompany profit from historical equipment
sales to the related investees, recorded in Cost of equipment. See Note 11 for further information.
NOTE 24**.** RELATED PARTIES
Aero Alliance. Aero Alliance is our joint venture with Baker Hughes Company that supports our customers through the fulfillment of
aeroderivative engines, spare parts, repairs, and maintenance services. Purchases of parts and services from the joint venture were
$651 million, $656 million, and $521 million for the years ended December 31, 2024, 2023, and 2022, respectively. The Company owed
Aero Alliance $24 million and $34 million as of December 31, 2024 and 2023, respectively. These amounts have been recorded in Due to
related parties on the Consolidated and Combined Statement of Financial Position.
Financial Services Investments. Our Financial Services business invests in project infrastructure entities where we do not hold a
controlling financial interest. These entities generally purchase equipment from our Wind and Power segments, and we have recognized
revenues of $4 million, $168 million, and $810 million for the years ended December 31, 2024, 2023, and 2022, respectively, for sales to
these entities. Revenues for sales to these entities for the year ended December 31, 2024 were not significant as GE retained the
renewable energy U.S. tax equity investments. See Note 11 for further information.
Allocations From GE. Prior to the Spin-Off, GE historically provided the Company with significant corporate, infrastructure, and shared
services. Some of these services continue to be provided by GE to the Company on a temporary basis following the Spin-Off under the
Transition Services Agreement. Accordingly, for periods prior to the Spin-Off, certain GE corporate costs have been charged to the
Company based on allocation methodologies as follows:
2024 FORM 10-K 83
a.Centralized services such as public relations, investor relations, treasury and cash management, executive management, security,
government relations, community outreach, and corporate internal audit services were charged to the Company on a pro rata
basis of GE’s estimates of each business’s usage at the beginning of the fiscal year and were recorded in Selling, general, and
administrative expenses. Costs of $67 million and $70 million for the years ended December 31, 2023 and 2022, respectively,
were recorded in our Consolidated and Combined Statement of Income (Loss). Costs allocated to the Company for the three
months ended March 31, 2024 were not significant as GE Vernova had established standalone capabilities for such services.
b.Information technology, finance, insurance, research, supply chain, human resources, tax, and facilities activities were charged to
the Company based on headcount, revenue, or other allocation methodologies. Costs for these services of $711 million and
$772 million were charged to the Company for the years ended December 31, 2023 and 2022, respectively. Costs for these
services of $100 million were charged to the Company for the three months ended March 31, 2024. Such costs are primarily
included in Selling, general, and administrative expenses and Research and development expenses in our Consolidated and
Combined Statement of Income (Loss).
c.Costs associated with employee medical insurance totaling $133 million and $114 million were charged for the years ended
December 31, 2023 and 2022, respectively. Costs associated with employee medical insurance totaling $30 million were charged
to the Company for the three months ended March 31, 2024. Costs were charged to the Company based on employee headcount
and are recorded in Cost of equipment, Cost of services, Selling, general, and administrative expenses, or Research and
development expenses in our Consolidated and Combined Statement of Income (Loss) based on the employee population.
Prior to January 1, 2023, employees of the Company participated in pensions and benefits plans that were sponsored by GE. The
Company was charged $64 million for the year ended December 31, 2022. These costs are charged directly to the Company based on
specific employee eligibility for those benefits. On January 1, 2023, these pension plans were legally split and allocated to GE Vernova and
are accounted for as multiemployer plans starting in 2023. See Note 13 for further information.
Additionally, GE granted various employee benefits to its employees, including prior to the Spin-Off to those of the Company, under the GE
Long-Term Incentive Plan. These benefits primarily included stock options and restricted stock units. Compensation expense associated
with this plan was $118 million and $123 million for the years ended December 31, 2023 and 2022, respectively. Compensation expense
associated with this plan was $34 million for the three months ended March 31, 2024. Such expense is included primarily in Selling,
general, and administrative expenses in our Consolidated and Combined Statement of Income (Loss). These costs were charged directly to
the Company based on the specific employees receiving awards.
Finally, while GE’s third-party debt had not been attributed to the Company, GE allocated a portion of interest expense related to its third-
party debt for funding provided by GE to the Company for certain investments held by Financial Services. The interest was allocated based
on the GE-funded ending net investment position each reporting period. Interest allocated was $35 million and $46 million for the years
ended December 31, 2023 and 2022, respectively. Interest allocated was $7 million for the three months ended March 31, 2024. Such
expense is included in Interest and other financial charges – net in our Consolidated and Combined Statement of Income (Loss).
Management believes that the expense and cost allocations were determined on a basis that is a reasonable reflection of the utilization of
services provided or the benefit received by the Company. The amounts that would have been, or will be incurred, on a stand-alone basis
could materially differ from the amounts allocated due to economies of scale, difference in management judgment, a requirement for more
or fewer employees, or other factors. Management does not believe, however, that it is practicable to estimate what these expenses would
have been had the Company operated as an independent entity, including any expenses associated with obtaining any of these services
from unaffiliated entities. In addition, the future results of operations, financial position, and cash flows could differ materially from the
historical results presented herein.
Parent Company Credit Support. GE provided the Company with parent credit support in certain jurisdictions. To support the Company in
selling products and services globally, GE often entered into contracts on behalf of GE Vernova or issued parent company guarantees or
trade finance instruments supporting the performance of what were subsidiary legal entities transacting directly with customers, in addition
to providing similar credit support for some non-customer related activities of GE Vernova. There are no known instances historically where
payments or performance from GE were required under parent company guarantees relating to GE Vernova customer contracts.
Tran****sfer of Tax Credits to GE. Under the Inflation Reduction Act of 2022, which went into effect in 2023, we generate advanced
manufacturing credits in our Wind business. These credits are transferable and are not reliant on a tax liability to be realized. During the
first quarter of 2024, we received cash of $249 million from GE for credits generated prior to the Spin-Off. See Note 11 for further
information regarding production tax credits transferred to GE.
NOTE 25**.** SEGMENT AND GEOGRAPHICAL INFORMATION
Operating segments include components of an enterprise about which separate financial information is available that is evaluated regularly
by the Company’s Chief Operating Decision Maker (CODM) for the purpose of assessing performance and allocating resources. The
Company’s CODM is its Chief Executive Officer (CEO). Our operating activities are managed through three segments: Power, Wind, and
Electrification. These segments have been identified based on the nature of the products and services sold and how the Company
manages its operations.
The performance of these segments is principally measured based on revenues and segment EBITDA. Segment EBITDA is determined
based on the performance measures used by our CEO to assess the performance of each business in a given period. In connection with
that assessment, the CEO may exclude matters, such as charges for impairments, significant higher-cost restructuring programs,
manufacturing footprint rationalization and other similar expenses, acquisition costs and other related charges, certain gains and losses
from acquisitions or dispositions and certain other non-operational items.
Consistent accounting policies have been applied by all segments for all reporting periods. See Note 1 for a description of our reportable
segments.
2024 FORM 10-K 84
| TOTAL SEGMENT REVENUES BY BUSINESS UNIT | 2024 | 2023 | 2022 |
| Gas Power | $14,465 | $13,220 | $12,079 |
| Nuclear Power | 819 | 827 | 699 |
| Hydro Power | 781 | 887 | 703 |
| Steam Power | 2,063 | 2,502 | 2,643 |
| Power | $18,127 | $17,436 | $16,124 |
| Onshore Wind | $7,781 | $7,761 | $7,941 |
| Offshore Wind | 1,377 | 1,455 | 531 |
| LM Wind Power | 542 | 610 | 433 |
| Wind | $9,701 | $9,826 | $8,905 |
| Grid Solutions | $4,957 | $3,955 | $3,133 |
| Power Conversion | 1,194 | 1,027 | 843 |
| Electrification Software | 917 | 874 | 804 |
| Solar & Storage Solutions | 482 | 522 | 296 |
| Electrification | $7,550 | $6,378 | $5,076 |
| Total segment revenues | $35,377 | $33,640 | $30,105 |
| SEGMENT EBITDA | ||||
| For the year ended December 31, 2024 | Power | Wind | Electrification | Total |
| Equipment revenues | $5,509 | $8,018 | $5,412 | $18,939 |
| Services revenues | 12,391 | 1,642 | 1,923 | 15,955 |
| Intersegment revenues | 227 | 41 | 215 | 483 |
| Segment revenues | 18,127 | 9,701 | 7,550 | 35,377 |
| Other revenues and elimination of intersegment revenues | (442) | |||
| Total revenues | 34,935 | |||
| Less:(a) | ||||
| Cost of revenues(b) | 13,608 | 9,513 | 5,359 | |
| Selling, general, and administrative expenses(b) | 2,022 | 566 | 1,295 | |
| Research and development expenses(b) | 384 | 222 | 345 | |
| Other segment items(c) | (155) | (12) | (128) | |
| Segment EBITDA | $2,268 | $(588) | $679 | $2,358 |
| For the year ended December 31, 2023 | Power | Wind | Electrification | Total |
| Equipment revenues | $5,535 | $8,327 | $4,385 | $18,246 |
| Services revenues | 11,758 | 1,488 | 1,733 | 14,979 |
| Intersegment revenues | 143 | 11 | 260 | 414 |
| Segment revenues | 17,436 | 9,826 | 6,378 | 33,640 |
| Other revenues and elimination of intersegment revenues | (401) | |||
| Total revenues | 33,239 | |||
| Less:(a) | ||||
| Cost of revenues(b) | 13,425 | 10,006 | 4,690 | |
| Selling, general, and administrative expenses(b) | 2,124 | 611 | 1,213 | |
| Research and development expenses(b) | 315 | 248 | 320 | |
| Other segment items(c) | (149) | (6) | (79) | |
| Segment EBITDA | $1,722 | $(1,033) | $234 | $923 |
| For the year ended December 31, 2022 | Power | Wind | Electrification | Total |
| Equipment revenues | $4,855 | $7,595 | $3,369 | $15,819 |
| Services revenues | 11,039 | 1,302 | 1,494 | 13,835 |
| Intersegment revenues | 230 | 8 | 214 | 451 |
| Segment revenues | 16,124 | 8,905 | 5,076 | 30,105 |
| Other revenues and elimination of intersegment revenues | (451) | |||
| Total revenues | 29,654 | |||
| Less:(a) | ||||
| Cost of revenues(b) | 12,346 | 9,664 | 3,767 | |
| Selling, general, and administrative expenses(b) | 2,048 | 676 | 1,226 | |
| Research and development expenses(b) | 300 | 368 | 299 | |
| Other segment items(c) | (225) | (92) | (51) | |
| Segment EBITDA | $1,655 | $(1,710) | $(164) | $(219) |
(a) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
Intersegment expenses are included within the amounts shown.
(b) Excludes depreciation and amortization expenses.
(c) Primarily includes equity method investment income and other interest and investment income.
2024 FORM 10-K 85
| RECONCILIATION OF SEGMENT EBITDA TO NET INCOME (LOSS) | 2024 | 2023 | 2022 |
| Segment EBITDA | $2,358 | $923 | $(219) |
| Corporate and other(a) | (323) | (116) | (209) |
| Restructuring and other charges(b) | (426) | (433) | (288) |
| Purchases and sales of business interests | 1,024 | 92 | 55 |
| Separation costs (benefits)(c) | 9 | — | — |
| Arbitration refund(d) | 254 | — | — |
| Non-operating benefit income | 536 | 567 | 188 |
| Depreciation and amortization(e) | (1,008) | (847) | (893) |
| Interest and other financial charges – net(f) | 130 | (53) | (97) |
| Russia and Ukraine charges(g) | — | (95) | (188) |
| Steam Power asset sale impairment | — | — | (824) |
| Benefit (provision) for income taxes | (995) | (512) | (247) |
| Net income (loss) | $1,559 | $(474) | $(2,722) |
(a) Includes interest expense (income) of $10 million, $45 million, and $54 million and benefit (provision) for income taxes of $56 million,
$168 million and $(1) million for the years ended December 31, 2024, 2023, and 2022, respectively, related to the Financial Services
business which, because of the nature of its investments, is managed on an after-tax basis due to its strategic investments in renewable
energy tax equity investments.
(b) Consists of severance, facility closures, acquisition and disposition, and other charges associated with major restructuring programs.
(c) Costs incurred in the Spin-Off and separation from GE, including system implementations, advisory fees, one-time stock option grant,
and other one-time costs. In addition, includes $136 million benefit related to deferred intercompany profit that was recognized upon GE
retaining the renewable energy U.S. tax equity investments at the time of the Spin-Off in the second quarter of 2024.
(d) Represents cash refund received in connection with an arbitration proceeding, constituting the payments previously made to a
multiemployer pension plan, and excludes $52 million related to the interest on such amounts that was recorded in Interest and other
financial charges – net in the second quarter of 2024.
(e) Excludes depreciation and amortization expense related to Restructuring and other charges. Includes amortization of basis differences
included in Equity method investment income (loss) which is part of Other income (expense) - net.
(f) Consists of interest and other financial charges, net of interest income, other than financial interest related to our normal business
operations primarily with customers.
(g) Related to recoverability of asset charges recorded in connection with the ongoing conflict between Russia and Ukraine and resulting
sanctions primarily related to our Power business.
| ASSETS BY SEGMENT December 31 | 2024 | 2023 |
| Power | $24,161 | $25,003 |
| Wind | 9,970 | 10,898 |
| Electrification | 7,402 | 6,607 |
| Other(a) | 9,952 | 3,613 |
| Total assets | $51,485 | $46,121 |
(a)We classify deferred tax assets as "Other" for purposes of this disclosure.
| Property, plant, and equipment additions | Depreciation and amortization | ||||||
| 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | ||
| Power | $380 | $319 | $203 | $519 | $494 | $508 | |
| Wind | 250 | 325 | 231 | 350 | 249 | 195 | |
| Electrification | 153 | 74 | 52 | 88 | 85 | 88 | |
| Other(a) | 93 | 20 | 1 | 216 | 136 | 1,006 | |
| Total | $877 | $738 | $487 | $1,172 | $964 | $1,797 |
(a) Depreciation and amortization includes impairments related to our Hydro Power business of $108 million for the year ended December
31, 2024 and impairments related to our remaining Steam Power business of $806 million for the year ended December 31, 2022. See
Notes 6 and 8 for further information.
Revenues are classified according to the region to which equipment and services are sold. For purposes of this analysis, the U.S. is
presented separately from the remainder of the Americas.
| REVENUES BY GEOGRAPHY | 2024 | 2023 | 2022 |
| U.S. | $14,679 | $12,467 | $11,590 |
| Non-U.S. | |||
| Europe | 8,325 | 8,417 | 6,583 |
| Asia | 4,698 | 5,259 | 4,942 |
| Americas | 3,038 | 3,177 | 3,090 |
| Middle East and Africa | 4,194 | 3,919 | 3,449 |
| Total Non-U.S. | $20,256 | $20,772 | $18,064 |
| Total geographic revenues | $34,935 | $33,239 | $29,654 |
2024 FORM 10-K 86
| LONG LIVED ASSETS BY GEOGRAPHY December 31 | 2024 | 2023 |
| U.S. | $1,940 | $1,757 |
| Non-U.S. | ||
| Europe | 1,811 | 1,942 |
| Asia | 798 | 908 |
| Americas | 320 | 356 |
| Middle East and Africa | 282 | 265 |
| Total Non-U.S. | $3,210 | $3,471 |
| Total long-lived assets | $5,150 | $5,228 |
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