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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A). The consolidated financial statements of General Electric
Company are prepared in conformity withU.S. generally accepted accounting principles (GAAP). Unless otherwise noted, tables are presented inU.S. dollars in millions. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented in this report are calculated from the underlying numbers in millions. Discussions throughout this MD&A are based on continuing operations unless otherwise noted. The MD&A should be read in conjunction with the Financial Statements and Notes to the consolidated financial statements. In the accompanying analysis of financial information, we sometimes use information derived from consolidated financial data but not presented in our financial statements prepared in accordance with GAAP. Certain of these data are considered "non-GAAP financial measures" underSEC rules. See the Non-GAAP Financial Measures section for the reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures.
CONSOLIDATED RESULTS
SECOND QUARTER 2022 RESULTS. Total revenues were
for the quarter, driven primarily by increases at Aerospace and HealthCare,
offset by decreases at Renewable Energy and Power.
Continuing earnings (loss) per share was$(0.59) . Excluding gains (losses) on equity securities, separation costs, earnings from our run-off Insurance business and non-operating benefit costs, Adjusted earnings per share* was$0.78 . For the three months endedJune 30, 2022 , profit (loss) was$(0.2) billion and profit (loss) margin was (1.3)%, up$0.8 billion , primarily due to the nonrecurrence of debt extinguishment costs of$1.4 billion , a decrease in non-operating benefit costs of$0.7 billion , higher segment profit of$0.5 billion , a decrease in significant, higher-cost restructuring charges of$0.2 billion and lower adjusted corporate operating costs* of$0.2 billion , partially offset by a net loss on the value of equity securities of$2.0 billion compared to the prior year gain and separation costs of$0.2 billion . Adjusted organic profit* increased$0.7 billion (79%), driven primarily by an increase at Aerospace and lower adjusted total corporate operating costs*, partially offset by decreases at Renewable Energy and HealthCare. *Non-GAAP Financial Measure 2022 2Q FORM 10-Q 4
-------------------------------------------------------------------------------- Cash used for operating activities (CFOA) was less than$0.1 billion and$3.0 billion for the six months endedJune 30, 2022 and 2021, respectively. Cash used for operating activities decreased primarily due to a decrease in cash collateral paid net of settlements on interest rate derivative contracts, an increase in net income (after adjusting for amortization of intangible assets, non-cash losses related to our interests in AerCap Holdings N.V. (AerCap) andBaker Hughes and non-operating debt extinguishment costs) and a decrease in cash used for all other operating activities. Free cash flows* (FCF) were$(0.7) billion and$(3.2) billion for the six months endedJune 30, 2022 and 2021, respectively. FCF* increased primarily due to the same reasons as noted for CFOA above, partially offset by an increase in cash used for working capital (after adjusting for the impact from discontinued factoring programs and eliminations related to our receivables factoring and supply chain finance programs). See the Capital Resources and Liquidity - Statement of Cash Flows section for further information.
Remaining performance obligation (RPO) is unfilled customer orders for products
and product services (expected life of contract sales for product services)
excluding any purchase order that provides the customer with the ability to
cancel or terminate without incurring a substantive penalty. See Note 8 for
further information.
RPO June 30, 2022 December 31, 2021
Equipment $ 44,773 $ 45,065
Services 197,222 194,755
Total RPO $ 241,995 $ 239,820
As of June 30, 2022 , RPO increased $2.2 billion from December 31, 2021 ,
primarily at Aerospace, from engines contracted under long-term service
agreements that have now been put into service and contract modifications;
partially offset by decreases at Power, from the continued wind down of the
Steam Power new build coal business and sales outpacing new orders in Gas Power
contractual services; at Renewable Energy, primarily from sales exceeding new
orders at Onshore Wind and the overall impact of a stronger U.S. dollar; and at
HealthCare, from the impact of contract renewal timing in services.
REVENUES Three months ended June 30 Six months ended June 30
2022 2021 2022 2021
Equipment revenues $ 7,603 $ 8,298 $ 14,467 $ 16,269
Services revenues 10,277 9,172 19,686 17,517
Insurance revenues 765 783 1,533 1,538
Total revenues $ 18,646 $ 18,253 $ 35,686 $ 35,323
For the three months ended June 30, 2022 , total revenues increased $0.4 billion
(2%). Equipment revenues decreased, primarily at Renewable Energy, due to fewer
wind turbine deliveries at Onshore Wind and lower revenues at Offshore Wind; and
at Aerospace, due to lower GEnx engine production rates, supply chain
disruptions and product transition with fewer engine shipments on legacy
programs; partially offset by increases at Power, due to higher Gas Power
aeroderivative deliveries; and at HealthCare, due to Imaging and Ultrasound,
mainly due to strong growth in the U.S. and Europe , the Middle East and Africa ,
offset by COVID-19 impacts in China . Services revenues increased, primarily at
Aerospace, due to increased shop visit volume, higher volume of commercial spare
part shipments and net favorable changes in estimated profitability of long-term
service agreements; partially offset by decreases at Power, due to a decrease in
Gas Power contractual services and prior year Steam Power services volume that
did not repeat; and at Renewable Energy, primarily due to fewer repower unit
deliveries at Onshore Wind. Insurance revenues decreased 2%.
Excluding the change in Insurance revenues, the net effects of acquisitions of
$0.1 billion , the net effects of dispositions of $0.1 billion and the effects of
a stronger U.S. dollar of $0.5 billion , organic revenues* increased $0.9 billion
(5%), with equipment revenues down $0.5 billion (6%) and services revenues up
$1.4 billion (15%). Organic revenues* increased at Aerospace, HealthCare and
Power, partially offset by a decrease at Renewable Energy.
For the six months ended June 30, 2022 , total revenues increased $0.4 billion
(1%). Equipment revenues decreased, primarily at Renewable Energy, due to fewer
wind turbine deliveries at Onshore Wind; at Aerospace, due to lower GEnx engine
production rates, supply chain disruptions and product transition with fewer
engine shipments on legacy programs; and at Power, due to a decrease in Steam
Power equipment on the exit of new build coal; partially offset by an increase
at HealthCare, driven by Imaging, mainly due to strong growth in the U.S. and
Europe , the Middle East and Africa , offset by COVID-19 impacts in China .
Services revenues increased, primarily at Aerospace, due to increased shop visit
volume, higher volume of commercial spare part shipments and net favorable
changes in estimated profitability of long-term service agreements; and at
Renewable Energy, primarily due to higher services revenue at Onshore Wind from
a larger installed base and more repower unit deliveries; partially offset by a
decrease at Power, due to a decrease in Gas Power contractual services and prior
year Steam Power services volume that did not repeat. Insurance revenues were
flat.
Excluding the change in Insurance revenues, the net effects of acquisitions of
$0.1 billion , the net effects of dispositions of $0.1 billion and the effects of
a stronger U.S. dollar of $0.7 billion , organic revenues* increased $1.0 billion
(3%), with equipment revenues down $1.6 billion (10%) and services revenues up
$2.6 billion (15%). Organic revenues* increased at Aerospace and HealthCare,
partially offset by decreases at Renewable Energy and Power.
*Non-GAAP Financial Measure
2022 2Q FORM 10-Q 5
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EARNINGS (LOSS) AND EARNINGS (LOSS) PER SHARE Three months ended
Six months ended June 30 (Per-share in dollars and diluted) 2022 2021 2022 2021 Continuing earnings (loss) attributable toGE common shareholders $ (647)$ (624) $ (1,456) $ (604) Continuing earnings (loss) per share$ (0.59) $
(0.57)
For the three months endedJune 30, 2022 , continuing earnings decreased 4% primarily due to a net loss on the value of equity securities of$2.0 billion compared to the prior year gain, an increase in provision for income taxes of$0.8 billion and separation costs of$0.2 billion , partially offset by the nonrecurrence of debt extinguishment costs of$1.4 billion , a decrease in non-operating benefit costs of$0.7 billion , higher segment profit$0.5 billion , a decrease in significant, higher-cost restructuring charges of$0.2 billion and lower adjusted total corporate operating costs of$0.2 billion . Adjusted earnings* was$0.9 billion , an increase of$0.6 billion . Profit margin was (1.3)%, an increase from (5.7)%. Adjusted profit* was$1.7 billion , an increase of$0.7 billion organically*, due to increases at Aerospace and Power, partially offset by decreases Renewable Energy and HealthCare. Adjusted profit margin* was 9.3%, an increase of 380 basis points organically*. For the six months endedJune 30, 2022 , continuing earnings decreased$0.9 billion primarily due to a net loss on the value of equity securities of$2.6 billion compared to the prior year gain, an increase in provision for income taxes of$0.9 billion , the Steam asset sale impairment of$0.8 billion , separation costs of$0.3 billion andRussia andUkraine charges of$0.2 billion , partially offset by the nonrecurrence of debt extinguishment costs of$1.4 billion , a decrease in non-operating benefit costs of$1.2 billion , higher segment profit of$0.6 billion , a decrease in significant, higher-cost restructuring charges of$0.3 billion , lower adjusted total corporate operating costs of$0.3 billion and lower interest and other financial charges of$0.2 billion . Adjusted earnings* were$1.1 billion , an increase of$0.7 billion . Profit margin was (2.2)%, an increase from (2.3)%. Adjusted profit* was$2.6 billion , an increase of$0.9 billion organically*, due to increases at Aerospace and Power, partially offset by decreases Renewable Energy and HealthCare. Adjusted profit margin* was 7.6%, an increase of 250 basis points organically*. We continue to experience inflation pressure in our supply chain, as well as delays in sourcing key materials needed for our products. This has delayed our ability to convert RPO to revenue and negatively impacted our profit margins. While we are taking actions to limit this pressure, we may continue to experience impacts in future periods. Also, geopolitical uncertainties with the ongoingRussia andUkraine conflict, as well as recent COVID-19 impacts inChina , are introducing additional challenges. As ofJune 30, 2022 , we have approximately$0.5 billion of remaining assets inRussia andUkraine , primarily in our Power and HealthCare businesses, which relate to activity not subject to sanctions or restricted under Company policy. SEGMENT OPERATIONS. Refer to our Annual Report on Form 10-K for the year endedDecember 31, 2021 , for further information regarding our determination of segment profit for continuing operations, and for our allocations of corporate costs to our segments. Three months ended June 30 Six months ended June 30 SUMMARY OF REPORTABLE SEGMENTS 2022 2021 V % 2022 2021 V % Aerospace$ 6,127 $ 4,840 27 %$ 11,730 $ 9,832 19 % HealthCare 4,519 4,454 1 % 8,882 8,761 1 % Renewable Energy 3,099 4,049 (23) % 5,970 7,297 (18) % Power 4,202 4,295 (2) % 7,703 8,216 (6) % Total segment revenues 17,947 17,638 2 % 34,285 34,106 1 % Corporate 698 615 13 % 1,401 1,217 15 % Total revenues$ 18,646 $ 18,253 2 %$ 35,686 $ 35,323 1 % Aerospace$ 1,148 $ 176 F$ 2,057 $ 818 F HealthCare 651 801 (19) % 1,189 1,500 (21) % Renewable Energy (419) (99) U (853) (333) U Power 320 299 7 % 383 212 81 % Total segment profit (loss) 1,701 1,177 45 % 2,776 2,197 26 % Corporate(a) (1,659) 241 U (2,987) 401 U Interest and other financial charges (379) (472) 20 % (769) (957) 20 % Debt extinguishment costs - (1,416) F - (1,416) F Non-operating benefit income (cost) 134 (517) F 271 (947) F Benefit (provision) for income taxes (378) 419 U (629) 247 U Preferred stock dividends (67) (57) U (119) (129) 8 % Earnings (loss) from continuing operations attributable toGE common shareholders (647) (624) (4) % (1,456) (604) U Earnings (loss) from discontinued operations attributable toGE common shareholders (210) (564) 63 % (496) (3,458) 86 % Net earnings (loss) attributable toGE common shareholders $ (857)$ (1,188)
28 %
(a) Includes interest and other financial charges of$15 million and$16 million , and$32 million and$31 million ; and benefit for income taxes of$61 million and$47 million , and$108 million and$78 million related to EFS within Corporate for the three and six months endedJune 30, 2022 and 2021, respectively. *Non-GAAP Financial Measure 2022 2Q FORM 10-Q 6 -------------------------------------------------------------------------------- GE AEROSPACE. Our results in the second quarter of 2022 reflect the continued recovery of the commercial markets from the effects of the COVID-19 pandemic, although global industrial supply chain disruptions in material and labor affected performance. A key underlying driver of our commercial engine and services business is global commercial air traffic. We regularly track global departures, which improved 28% during the second quarter of 2022 compared to the second quarter of 2021, and now stands at approximately 80% of 2019 levels as ofJune 30, 2022 . However, government travel restrictions, public health advisories, individuals' propensity to travel and continued cases of the virus have driven varied levels of recovery regionally, due in large part to the emergence of COVID-19 virus variants. We remain confident in the recovery, and current trends are in line with our recovery forecast. Consistent with industry projections, we continue to estimate single-aisle air traffic to recover to 2019 levels in early 2023, with twin-aisle air traffic recovering in early 2024. We are in frequent dialogue with our airline, airframe, and maintenance, repair and overhaul customers about the outlook for commercial air travel, new aircraft production, fleet retirements, and after-market services, including shop visit and spare parts demand. Global supply chain constraints and labor shortages, in part driven by the pandemic, are causing supply chain disruptions for us and our suppliers. While these disruptions have impacted our production and delivery, we continue to partner with our airline and leasing customers and collaborate with our airframe partners on production rates for 2022 and beyond. As it relates to the military environment, we continue to forecast strong military demand creating future growth opportunities for our Military business as theU.S. Department of Defense and foreign governments have continued flight operations, and have allocated budgets to upgrade and modernize their existing fleets. Total engineering, comprising company, customer and partner-funded and nonrecurring engineering costs, increased compared to the prior year. We continue to be committed to investment in developing and maturing technologies that enable a more sustainable future of flight. InMay 2022 , we completed successful testing of our Passport long-range business aviation engine using 100% sustainable aviation fuel. We continue to take actions to protect our ability to serve our customers now and as the global airline industry recovers. Our deep history of innovation and technology leadership, commercial engine installed base of approximately 39,400 units, with approximately 11,100 units under long-term service agreements, and military engine installed base of approximately 26,200 units represents strong long-term fundamentals. We expect to emerge from the current environment well-positioned to drive long-term profitable growth and cash generation over time. Three months ended June 30 Six months ended June 30 Sales in units, except where noted 2022 2021 2022 2021 Commercial Engines(a) 355 383 698 742 LEAP Engines(b) 226 211 465 399 Military Engines 131 155 315 251 Spare Parts Rate(c)$ 23.5 $ 15.0 $ 23.1 $ 14.1 (a) Commercial Engines now includesBusiness Aviation and Aeroderivative units for all periods presented. (b) LEAP engines are subsets of commercial engines. (c) Commercial externally shipped spare parts and spare parts used in time and material shop visits in millions of dollars per day. RPO June 30, 2022 December 31, 2021 Equipment$ 11,866 $ 11,139 Services 118,269 114,133 Total RPO$ 130,135 $ 125,272 SEGMENT REVENUES AND PROFIT Three months ended June 30 Six months ended June 30 2022 2021 2022 2021
Commercial Engines & Services
$ 8,159 $ 6,469 Military 1,096 1,041 2,132 1,997 Systems & Other 725 684 1,439 1,366 Total segment revenues$ 6,127 $ 4,840 $ 11,730 $ 9,832 Equipment$ 1,757 $ 1,865 $ 3,411 $ 3,712 Services 4,370 2,974 8,319 6,120 Total segment revenues$ 6,127 $ 4,840 $ 11,730 $ 9,832 Segment profit$ 1,148 $ 176 $ 2,057 $ 818 Segment profit margin 18.7 % 3.6 % 17.5 % 8.3 % 2022 2Q FORM 10-Q 7
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For the three months ended
(27%) and segment profit was up
Revenues increased$1.3 billion (27%) organically*. Commercial Services revenues increased, primarily due to increased shop visit volume and higher volume of commercial spare part shipments. Commercial Services revenues also increased due to a net favorable change of$0.1 billion for its long-term service agreements compared to a net unfavorable change of$0.3 billion for the same period in the prior year. Commercial Engines revenues decreased, primarily driven by lower GEnx engine production rates, supply chain disruptions and product transition with fewer engine shipments on legacy programs, partially offset by more shipments on newer programs, including 15 more LEAP units versus the prior year. Military revenues increased, primarily due to growth in services, partially offset by 24 fewer engine shipments than the prior year. Profit increased$0.9 billion organically*, primarily due to increased shop visit volume and higher volume of commercial spare part shipments. Profit also increased due to higher prices and the impact of favorable contract margin reviews in the quarter for long-term service agreements. These increases in profit were partially offset by inflation in our supply chain and additional growth investment.
For the six months ended
(19%) and segment profit was up
RPO as ofJune 30, 2022 increased$4.9 billion (4%) fromDecember 31, 2021 , primarily due to increases in services. Services increased primarily as a result of engines contracted under long-term service agreements that have now been put into service and contract modifications. Revenues increased$1.9 billion (20%) organically*. Commercial Services revenues increased, primarily due to increased shop visit volume and higher volume of commercial spare part shipments. Commercial Services revenues also increased due to a net favorable change of$0.1 billion for its long-term service agreements compared to a net unfavorable change of$0.3 billion for the same period in the prior year. Commercial Engines revenues decreased, primarily driven by lower GEnx engine production rates, supply chain disruptions and product transition with fewer engine shipments on legacy programs, partially offset by more shipments on newer programs, including 66 more LEAP units versus the prior year. Military revenues increased, primarily due to growth in services and 64 more engine shipments than the prior year, partially offset by product mix. Profit increased$1.2 billion organically*, primarily due to increased shop visit volume and higher volume of commercial spare part shipments. Profit also increased due to higher prices and the impact of favorable contract margin reviews for long-term service agreements. These increases in profit were partially offset by lower profit on Commercial Engine shipments driven by product transition with fewer engine shipments on legacy programs and more shipments on newer programs, inflation in our supply chain and additional growth investment.GE HEALTHCARE .U.S. healthcare market demand continues to be strong. InEurope , theMiddle East andAfrica we are seeing growth from EU tenders and post COVID spending.China has seen COVID-19 impacts in certain regions during most of the second quarter of 2022, which constrained output from ourShanghai contrast media and Healthcare Systems (HCS) equipment factories. We took measures to partially mitigate the impact to our customers. We continue to see growth in hospital spending to increase capacity and improve quality of care. Both HCS andPharmaceutical Diagnostics (PDx) demand has recovered to at or above pre-pandemic levels. We are experiencing delays in sourcing key materials needed for our products, delaying our ability to convert RPO to revenue. We have proactively managed sourcing and logistics inflation, material and design costs to partially mitigate supply chain impacts. Delivering for our customers remains a top priority. In response to the cost pressures we are experiencing, we have continued to adjust pricing of our products, manage discretionary and structural cost in our business, as well as prioritize research and development investments. We continue to grow and invest in precision health, with a focus on creating new products and digital solutions as well as expanding uses of existing offerings that are tailored to the different needs of our global customers. We launched Voluson Expert 22, artificial intelligence powered ultrasound with our proprietary Lyric Architecture to unlock new imaging and processing power, achieving higher resolution, detailed images and scanning flexibility. We remain committed to innovate and invest to create more integrated, efficient and personalized precision healthcare. RPO June 30, 2022 December 31, 2021 Equipment$ 4,442 $ 4,232 Services 9,905 10,375 Total RPO$ 14,346 $ 14,606 *Non-GAAP Financial Measure 2022 2Q FORM 10-Q 8 -------------------------------------------------------------------------------- SEGMENT REVENUES AND PROFIT Three months ended June 30 Six months ended June 30 2022 2021 2022 2021 Healthcare Systems$ 4,037 $ 3,915 $ 7,913 $ 7,740 Pharmaceutical Diagnostics 482 539 969 1,021 Total segment revenues$ 4,519 $ 4,454 $ 8,882 $ 8,761 Equipment$ 2,337 $ 2,257 $ 4,593 $ 4,484 Services 2,182 2,197 4,288 4,278 Total segment revenues$ 4,519 $ 4,454 $ 8,882 $ 8,761 Segment profit $ 651$ 801 $ 1,189 $ 1,500 Segment profit margin 14.4 % 18.0 % 13.4 % 17.1 %
For the three months ended
(1%) and segment profit was down
Revenues increased$0.2 billion (4%) organically*. Equipment revenues increased driven by Imaging and Ultrasound mainly due to strong growth in theU.S. andEurope , theMiddle East andAfrica , partially offset by COVID-19 impacts inChina . Services revenues increased, driven by the continued growth of HCS services, partially offset by PDx primarily due toChina . Profit decreased$0.1 billion (13%) organically*, driven by increased material inflation and logistics cost across all product lines, partially offset by increased volume and price. We also continued to make research and development and commercial investments.
For the six months ended
(1%) and segment profit was down
RPO as of
primarily due to an increase in equipment orders, more than offset by the impact
of contract renewal timing in services.
Revenues increased$0.3 billion (3%) organically*. Equipment revenues increased, driven by Imaging, mainly due to strong growth in theU.S. andEurope , theMiddle East andAfrica offset by COVID-19 impacts inChina . Services revenues increased, driven by the continued growth of HCS services offset by PDx primarily due toChina . Profit decreased$0.2 billion (14%) organically*, driven by increased material inflation and logistics cost across all product lines, partially offset by increased volume and price. We also continued to make research and development and commercial investments. RENEWABLE ENERGY - will be part of GE Vernova,GE's portfolio of energy businesses. While we continue to expect long-term growth inU.S. onshore wind, the expiry ofU.S. Production Tax Credits (PTC) in 2021 andU.S. policy uncertainty, together with rising inflation continues to result in project delays and deferral of customer investments. The offshore wind industry continues to expect strong global growth through the decade and our Grid business is positioned to support grid modernization needs. We have experienced significant cost inflation in materials and logistics costs across the entire business that impact price and customer demand, and our financial results are dependent onU.S. tax credit policy, the inflationary environment, improved selectivity, pricing and execution of cost reduction initiatives, including rationalization of operations in response to lower forecasted near-term demand. New product introductions account for a large portion of our RPO in Onshore and Offshore wind driven by significant demand for larger turbines that decrease the levelized cost of energy, such as our 5 MW Cypress and 3 MW Sierra Onshore units, and our 12-14 MW Haliade-X Offshore units. We expect to start shipping Haliade-X units for our first commercial project in the second half of this year. Improving product and fleet durability and preparing for large scale production, while reducing the cost of these new product platforms and blade technologies, remains a key priority. AtGrid Solutions , new technology such as flexible transformers and g³ switchgears are solving for a more resilient and efficient electric grid and lower greenhouse gas emissions, respectively. We also introduced Lifespan, a software suite designed to optimize asset performance and operations across an operator's wind turbine fleet. Three months ended June 30 Six months ended June 30 Onshore and Offshore sales in units 2022 2021 2022 2021 Wind Turbines 561 887 1,063 1,665 Wind Turbine Gigawatts 1.9 2.9 3.6 5.4 Repower units 124 249 275 249 RPO June 30, 2022 December 31, 2021 Equipment$ 18,166 $ 18,639 Services 12,363 12,872 Total RPO$ 30,529 $ 31,511
*Non-GAAP Financial Measure
2022 2Q FORM 10-Q 9
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SEGMENT REVENUES AND PROFIT Three months ended June 30 Six months ended June 30
2022 2021 2022 2021
Onshore Wind $ 2,052 $ 2,883 $ 3,958 $ 5,001
Grid Solutions equipment and
services 733 776 1,401 1,571
Hydro, Offshore Wind and Hybrid
Solutions 314 390 611 725
Total segment revenues $ 3,099 $ 4,049 $ 5,970 $ 7,297
Equipment $ 2,445 $ 3,305 $ 4,618 $ 6,148
Services 654 745 1,352 1,149
Total segment revenues $ 3,099 $ 4,049 $ 5,970 $ 7,297
Segment profit (loss) $ (419) $ (99) $ (853) $ (333)
Segment profit margin (13.5) % (2.4) % (14.3) % (4.6) %
For the three months ended
billion
Revenues decreased$0.8 billion (20%) organically*, primarily from 306 fewer wind turbine and 125 fewer repower unit deliveries at Onshore Wind, partially offset by higher revenue at Grid and core services at Onshore Wind. Segment losses increased$0.4 billion organically*, primarily from lowerU.S. volume and margins at Onshore Wind, higher costs associated with newer product offerings in Onshore internationally and cost inflation across all businesses. These increases were partially offset by higher volumes and the impact of cost reduction initiatives at Grid and$0.1 billion of cost recoveries on legacy Hydro projects.
For the six months ended
(18%) and segment losses were up
RPO as ofJune 30, 2022 decreased$1.0 billion (3%) fromDecember 31, 2021 primarily from sales exceeding new orders at Onshore Wind and the overall impact of a strongerU.S. dollar, partially offset by new orders at Grid and Hydro exceeding sales. The decline in new equipment orders at Onshore Wind is primarily attributable to the U.S. market decline and inflation-related pricing increases negatively impacting near-term demand. Revenues decreased$1.1 billion (16%) organically* across all businesses, primarily from 565 fewer wind turbine deliveries at Onshore Wind and lower revenue at Grid due to increased commercial selectivity, partially offset by higher services revenue at Onshore Wind from a larger installed base and 26 more repower unit deliveries. Segment losses increased$0.6 billion organically*, primarily from lowerU.S. volume and margins at Onshore Wind and cost inflation across all businesses, partially offset by the impact of cost reduction initiatives. Onshore Wind results were adversely impacted by execution of lower margin RPO and the impact of transitioning to newer product offerings internationally. POWER - will be part of GE Vernova,GE's portfolio of energy businesses. During the current period, global gas generation and gas turbine utilization were both up low-single-digits in line with electricity demand. The fleet continues to operate in line with the market, even as the market manages through the uncertainty and disruptions from the conflict inUkraine . Looking ahead, we anticipate the power market to continue to be impacted by overcapacity in the industry, continued price pressure from competition on servicing the installed base, and the uncertain timing of deal closures due to financing and the complexities of working in emerging markets, as well as the ongoing impacts of COVID-19. Although market factors related to the energy transition such as greater renewable energy penetration and the adoption of climate change-related policies continue to impact long-term demand (and related financing), to differing degrees across markets globally, we expect the gas market to remain stable over the next decade with gas generation continuing to grow low-single-digits. We believe gas will play a critical role in the energy transition. We remain focused on our underwriting discipline and risk management to ensure we are securing deals that meet our financial hurdles and we have high confidence to deliver for our customers. In the first quarter of 2022, we signed a non-binding memorandum of understanding forGE Steam Power to sell a portion of its business to Électricité deFrance S.A. (EDF), which resulted in a reclassification of that business to held for sale. We expect to complete the sale, subject to regulatory approval, in the first half of 2023. In the second quarter of 2022, we announced thatGas Power intends to acquire Nexus Controls, a business specializing in aftermarket control system upgrades and controls field services. The deal, which is subject to customary closing conditions including regulatory approval and mandatory information and consultation processes with employees and their representatives, is expected to close in the second quarter of 2023. We continue to invest in new product development, such as our HA-Turbines and Nuclear small modular reactors. Our fundamentals remain strong with approximately$67.4 billion in RPO and a gas turbine installed base greater than 7,000 units, including approximately 1,800 units under long-term service agreements. *Non-GAAP Financial Measure 2022 2Q FORM 10-Q 10
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Three months ended June 30 Six months ended June 30
Sales in units 2022 2021 2022 2021
GE Gas Turbines 29 14 49 25
Heavy-Duty Gas Turbines(a) 10 9 23 20
HA-Turbines(b) 1 1 3 6
Aeroderivatives(a) 19 5 26 5
(a) Heavy-Duty Gas Turbines and Aeroderivatives are subsets of GE Gas Turbines.
(b) HA-Turbines are a subset of Heavy-Duty Gas Turbines.
RPO June 30, 2022 December 31, 2021 Equipment$ 11,402 $ 12,169 Services 56,007 56,569 Total RPO$ 67,409 $ 68,738 SEGMENT REVENUES AND PROFIT Three months ended June 30 Six months ended June 30 2022 2021 2022 2021 Gas Power$ 3,133 $ 3,049 $ 5,621 $ 5,878 Steam Power 691 831 1,327 1,537 Power Conversion, Nuclear and other 378 415 755 800 Total segment revenues$ 4,202 $ 4,295 $ 7,703 $ 8,216 Equipment$ 1,196 $ 1,071 $ 2,162 $ 2,312 Services 3,006 3,224 5,542 5,904 Total segment revenues$ 4,202 $ 4,295 $ 7,703 $ 8,216 Segment profit (loss) $ 320$ 299 $ 383$ 212 Segment profit margin 7.6 % 7.0 % 5.0 % 2.6 %
For the three months ended
billion
Revenues increased$0.2 billion (4%) organically*, primarily due to higherGas Power aeroderivative deliveries and an increase inGas Power transactional service volume, partially offset by a reduction inGas Power contractual service outages, decreases atSteam Power equipment on the exit of new build coal and prior yearSteam Power services volume that did not repeat. Profit increased 10% organically* due to increases inGas Power aeroderivative deliveries,Gas Power transactional service volume,Gas Power contractual service price and from prior year project and legal charges atSteam Power that did not repeat, partially offset by unfavorable mix atGas Power with higher equipment and lower contractual planned outages,Steam Power equipment on the exit of new build coal and prior year Steam services volume that did not repeat.
For the six months ended
(6%) and segment profit was up
RPO as ofJune 30, 2022 decreased$1.3 billion (2%) fromDecember 31, 2021 , primarily driven by the continued wind down of theSteam Power new build coal business, sales outpacing new orders inGas Power contractual services and the impact of theRussia andUkraine conflict atPower Conversion . Revenues were flat organically*, primarily due to higherGas Power aeroderivative deliveries and an increase inGas Power transactional service volume, partially offset by a reduction inGas Power contractual services, a reduction inSteam Power equipment on the exit of new build coal and prior yearSteam Power services volume that did not repeat.
Profit increased
legal charges at
aeroderivative deliveries.
CORPORATE. The Corporate amounts related to revenues and earnings include the results of disposed businesses, certain amounts not included in operating segment results because they are excluded from measurement of their operating performance for internal and external purposes and the elimination of intersegment activities. In addition, the Corporate amounts related to earnings include certain costs of our principal retirement plans, significant, higher-cost restructuring programs, separation costs, and other costs reported in Corporate.
Corporate includes the results of the GE Digital business and our remaining
Capital
run-off Insurance business (see Other Items - Insurance for further
information).
*Non-GAAP Financial Measure
2022 2Q FORM 10-Q 11
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REVENUES AND OPERATING PROFIT (COST) Three months ended June 30 Six months ended June 30
2022 2021 2022 2021
Corporate revenues $ 205 $ 229 $ 425 $ 456
Insurance revenues 765 783 1,533 1,538
Eliminations and other (273) (397) (557) (777)
Total Corporate revenues $ 698 $ 615 $ 1,401 $ 1,217
Gains (losses) on purchases and sales of $ 2 $ (5) $ 6 $ (2)
business interests
Gains (losses) on equity securities (1,552) 497 (1,770) 844
Restructuring and other charges (35) (225) (70) (331)
Separation costs (207) - (327) -
Steam asset sale impairment (Notes 6 and 7) (1) - (825) -
Russia and Ukraine charges - - (230) -
Insurance profit (loss) (Note 12) 172 233 397 371
Adjusted total corporate operating costs (38) (259) (167) (480)
(Non-GAAP)
Total Corporate operating profit (cost) (GAAP)
Less: gains (losses), impairments, Insurance,
(1,621) 500 (2,820) 881 and restructuring & other Adjusted total corporate operating costs $ (38)$ (259) $ (167)$ (480) (Non-GAAP) Functions & operations $ (54)$ (179) $ (132)$ (368) Environmental, health and safety (EHS) and other (8) (28) (59) (83)
items
Eliminations 24 (52) 23 (29) Adjusted total corporate operating costs $ (38)$ (259) $ (167)$ (480) (Non-GAAP) Adjusted total corporate operating costs* excludes gains (losses) on purchases and sales of business interests, significant, higher-cost restructuring programs, separation costs, gains (losses) on equity securities, impairments and our run-off Insurance business profit. We believe that adjusting corporate costs to exclude the effects of items that are not closely associated with ongoing corporate operations provides management and investors with a meaningful measure that increases the period-to-period comparability of our ongoing corporate costs. For the three months endedJune 30, 2022 , revenues increased by$0.1 billion due to lower intersegment eliminations. Corporate operating profit decreased by$1.9 billion due to a$2.0 billion change in gains (losses) on equity securities, primarily related to$1.1 billion of mark-to-market losses on our AerCap shares and note and$0.9 billion of higher mark-to-market losses on ourBaker Hughes shares. Operating profit also decreased due to$0.2 billion of separation costs and$0.1 billion of lower profit in our run-off Insurance business, primarily driven by higher claims as COVID-19 favorability subsides and claims continue to normalize. These decreases were partially offset by$0.2 billion of lower restructuring and other charges, primarily related to our Power segment. Adjusted total corporate operating costs* decreased by$0.2 billion primarily as the result of$0.1 billion lower corporate cost due to core reductions and$0.1 billion due to lower intercompany eliminations.
For the six months ended
to lower intersegment eliminations.
Corporate operating profit decreased by$3.4 billion due to a$2.6 billion change in gains (losses) on equity securities, primarily related to$2.8 billion of mark to market losses on our AerCap shares and note partially offset by$0.3 billion of higher mark to market gains on ourBaker Hughes shares. In addition, operating profit decreased due to$0.8 billion of non-cash impairment charges related to property, plant and equipment and intangible assets as a result of reclassification of a portion of ourSteam Power business to held for sale in the first quarter of 2022 (see Note 2),$0.3 billion of separation costs and$0.2 billion of charges from contracts and recoverability of assets in connection with the conflict betweenRussia andUkraine and resulting sanctions, primarily within our Aerospace and Power businesses. These decreases were partially offset by$0.3 billion of lower restructuring and other charges, primarily related to our Power segment.
Adjusted total corporate operating costs* decreased by
the result of
intercompany eliminations.
OTHER CONSOLIDATED INFORMATION
RESTRUCTURING. This table is inclusive of all restructuring charges in our segments and at Corporate, and the charges are shown below for the business where they originated. Separately, in our reported segment results, significant, higher-cost 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 for Corporate (see the Corporate section). *Non-GAAP Financial Measure 2022 2Q FORM 10-Q 12
--------------------------------------------------------------------------------
RESTRUCTURING AND OTHER CHARGES Three months ended June 30 Six months ended June 30
2022 2021 2022 2021
Workforce reductions $ 14 $ 290 $ 37 $ 501
Plant closures & associated costs and other asset
write-downs 26 38 55 64
Acquisition/disposition net charges and other 16 1 28 6
Other - - (3) -
Total restructuring and other charges $ 55 $
330 $ 116
Cost of equipment/services $ 18$ 188 $ 49$ 288 Selling, general and administrative expenses 37 142 71 290 Other (income) loss - - (3) (7) Total restructuring and other charges $ 55$ 330 $ 116$ 572 Aerospace $ 5$ (2) $ 10$ 61 HealthCare 10 20 22 59 Renewable Energy 6 59 12 135 Power 32 227 67 276 Corporate 2 26 5 42 Total restructuring and other charges $ 55$ 330 $ 116$ 572 Restructuring and other charges cash expenditures $ 102 $
190 $ 256
Liabilities associated with restructuring activities were approximately
billion
severance benefits of
SEPARATION COSTS. InNovember 2021 , the company announced its plan to form three industry-leading, global public companies focused on the growth sectors of aviation, healthcare, and energy. Over the next two years, we expect to incur separation, transition, and operational costs of approximately$2 billion and net tax costs of less than$0.5 billion , which will depend on specifics of the transactions. We incurred pre-tax separation costs of$207 million and$327 million , primarily related to employee costs, costs to establish certain stand-alone functions and information technology systems, professional fees, and other transformation and transaction costs to transition to three stand-alone public companies, for the three and six months endedJune 30, 2022 , respectively. These costs are presented as separation costs in our consolidated Statement of Earnings (Loss). In addition, we incurred$28 million and$8 million of net tax benefit, including taxes associated with planned legal entity restructuring and changes to indefinite reinvestment, for the three and six months endedJune 30, 2022 , respectively. INTEREST AND OTHER FINANCIAL CHARGES were$0.4 billion and$0.5 billion for the three months ended and$0.8 billion and$1.0 billion for the six months endedJune 30, 2022 and 2021, respectively. The decrease was primarily due to lower average borrowings balances, partially offset by a lower allocation of interest expense to discontinued operations. Inclusive of interest expense in discontinued operations, total interest and other financial charges were$0.4 billion and$0.7 billion for the three months ended and$0.8 billion and$1.4 billion for the six months endedJune 30, 2022 and 2021, respectively. The primary components of interest and other financial charges are interest on short- and long-term borrowings.
POSTRETIREMENT BENEFIT PLANS. Refer to Note 13 for information about our pension
and retiree benefit plans.
INCOME TAXES. For the three months endedJune 30, 2022 , the income tax rate was (129.9)% compared to 44.9% for the three months endedJune 30, 2021 . The tax rate for 2022 reflects a tax expense on a pre-tax loss. The tax rate for 2021 reflects a tax benefit on a pre-tax loss. The provision (benefit) for income taxes was$0.3 billion for the three months endedJune 30, 2022 and$(0.5) billion for the three months endedJune 30, 2021 . The increase in tax was primarily due to the increase in pre-tax income excluding the net loss in 2022 on our interest in AerCap andBaker Hughes and the nonrecurrence of the tax benefit associated with an internal restructuring to recognize deductible loan losses in the second quarter of 2021. There was only an insignificant tax effect on the net loss in 2022 on AerCap andBaker Hughes as a result of our excess capital loss position. For the three months endedJune 30, 2022 , the adjusted income tax rate* was 23.5% compared to 24.9% for the three months endedJune 30, 2021 . The adjusted income tax rate* decreased primarily due to higher income for the three months endedJune 30, 2022 , which is taxed at below the average tax rate. For the six months endedJune 30, 2022 , the income tax rate was (67.5)% compared to 40.7% for the six months endedJune 30, 2021 . The tax rate for 2022 reflects a tax expense on a pre-tax loss. The tax rate for 2021 reflects a tax benefit on a pre-tax loss. *Non-GAAP Financial Measure 2022 2Q FORM 10-Q 13
-------------------------------------------------------------------------------- The provision (benefit) for income taxes was$0.5 billion for the six months endedJune 30, 2022 compared to$(0.3) billion for the six months endedJune 30, 2021 . The increase in tax was primarily due to the increase in pre-tax income excluding the net loss in 2022 on our interest in AerCap andBaker Hughes and asset impairments and the nonrecurrence of the tax benefit associated with an internal restructuring to recognize deductible loan losses in the second quarter of 2021. There was only an insignificant tax effect on the net loss in 2022 on AerCap andBaker Hughes as a result of our excess capital loss position. For the six months endedJune 30, 2022 , the adjusted income tax rate* was 27.3% compared to 23.7% for the six months endedJune 30, 2021 . The adjusted income tax rate* increased primarily due to higher expense associated with global activities including the nonrecurrence of a 2021 benefit from planning to utilize non-U.S. loss carryovers. DISCONTINUED OPERATIONS primarily comprise our GE Capital Aviation Services (GECAS) business, discontinued in 2021, our mortgage portfolio inPoland , and other trailing assets and liabilities associated with prior dispositions. Results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods presented and the notes to the financial statements have been adjusted on a retrospective basis. See Note 2 for further information regarding our businesses in discontinued operations.
CAPITAL RESOURCES AND LIQUIDITY
FINANCIAL POLICY. We intend to maintain a disciplined financial policy with a sustainable investment-grade long-term credit rating. In the fourth quarter of 2021, the Company announced plans to form three industry-leading, global, investment-grade companies, each of which will determine their own financial policies, including capital allocation, dividend, mergers and acquisitions and buy back decisions. LIQUIDITY POLICY. We maintain a strong focus on liquidity and define our liquidity risk tolerance based on sources and uses to maintain a sufficient liquidity position to meet our business needs and financial obligations under both normal and stressed conditions. We believe that our consolidated liquidity and availability under our revolving credit facilities will be sufficient to meet our liquidity needs. CONSOLIDATED LIQUIDITY. Our primary sources of liquidity consist of cash and cash equivalents, free cash flows* from our operating businesses, cash generated from asset sales and dispositions, and short-term borrowing facilities, including revolving credit facilities. Cash generation can be subject to variability based on many factors, including seasonality, receipt of down payments on large equipment orders, timing of billings on long-term contracts, timing of Aerospace-related customer allowances, market conditions and our ability to execute dispositions. Total cash, cash equivalents and restricted cash was$13.2 billion atJune 30, 2022 , of which$8.0 billion was held in theU.S. and$5.2 billion was held outside theU.S. Cash held in non-U.S. entities has generally been reinvested in active foreign business operations; however, substantially all of our unrepatriated earnings were subject toU.S. federal tax and, if there is a change in reinvestment, we would expect to be able to repatriate available cash (excluding amounts held in countries with currency controls) without additional federal tax cost. Any foreign withholding tax on a repatriation to theU.S. would potentially be partially offset by aU.S. foreign tax credit. With regards to our announcement to form three public companies, we expect that planning for and execution of this separation will impact indefinite reinvestment. The impact of that change will be recorded when there is a specific change in ability and intent to reinvest earnings. Cash, cash equivalents and restricted cash atJune 30, 2022 included$2.1 billion of cash held in countries with currency control restrictions (including a total of$0.2 billion inRussia andUkraine ) and$0.4 billion of restricted use cash. Cash held in countries with currency controls represents amounts held in countries that may restrict the transfer of funds to theU.S. or limit our ability to transfer funds to theU.S. without incurring substantial costs. Restricted use cash represents amounts that are not available to fund operations, and primarily comprised funds restricted in connection with certain ongoing litigation matters. Excluded from cash, cash equivalents and restricted cash was$0.6 billion of cash in our run-off Insurance business, which was classified as All other assets in the Statement of Financial Position. In connection with the program we launched in 2020 to fully monetize ourBaker Hughes position over approximately three years, we received proceeds of$3.8 billion during the first half of 2022. In addition, we expect to fully monetize our stake in AerCap over time. We provided a total of$11.4 billion of capital contributions to our insurance subsidiaries since 2018, including$2.0 billion in the first quarter of 2022, and expect to provide further capital contributions of approximately$3.6 billion through 2024. These contributions are subject to ongoing monitoring by theKansas Insurance Department (KID), and the total amount to be contributed could increase or decrease, or the timing could be accelerated, based upon the results of reserve adequacy testing or a decision by KID to modify the schedule of contributions set forth inJanuary 2018 . We are required to maintain specified capital levels at these insurance subsidiaries under capital maintenance agreements. OnMarch 6, 2022 , the Board of Directors authorized up to$3 billion of common share repurchases. During the second quarter of 2022, we repurchased 4.6 million shares for$0.3 billion in connection with this authorization. BORROWINGS. Consolidated total borrowings were$32.5 billion and$35.2 billion atJune 30, 2022 andDecember 31, 2021 , respectively, a decrease of$2.7 billion . The reduction in borrowings was driven primarily by$1.7 billion of net maturities and repayments of debt and$0.8 billion related to changes in foreign exchange rates. We have in place committed revolving credit facilities totaling$14.4 billion atJune 30, 2022 , comprising a$10.0 billion unused back-up revolving syndicated credit facility and a total of$4.4 billion of bilateral revolving credit facilities. *Non-GAAP Financial Measure 2022 2Q FORM 10-Q 14 -------------------------------------------------------------------------------- CREDIT RATINGS AND CONDITIONS. We have relied, and may continue to rely, on the short- and long-term debt capital markets to fund, among other things, a significant portion of our operations. The cost and availability of debt financing is influenced by our credit ratings. Moody's Investors Service (Moody's), Standard and Poor's Global Ratings (S&P), and Fitch Ratings (Fitch) currently issue ratings on our short- and long-term debt. Our credit ratings as of the date of this filing are set forth in the table below. Moody's S&P Fitch Outlook Negative CreditWatch Negative Stable Short term P-2 A-2 F3 Long term Baa1 BBB+ BBB We are disclosing our credit ratings and any current quarter updates to these ratings to enhance understanding of our sources of liquidity and the effects of our ratings on our costs of funds and access to liquidity. Our ratings may be subject to a revision or withdrawal at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating. For a description of some of the potential consequences of a reduction in our credit ratings, see the Financial Risks section of Risk Factors in our Annual Report on Form 10-K for the year endedDecember 31, 2021 . Substantially all of the Company's debt agreements in place atJune 30, 2022 do not contain material credit rating covenants. Our unused back-up revolving syndicated credit facility and certain of our bilateral revolving credit facilities contain a customary net debt-to-EBITDA financial covenant, which we satisfied atJune 30, 2022 . The Company may from time to time enter into agreements that contain minimum ratings requirements. The following table provides a summary of the maximum estimated liquidity impact in the event of further downgrades below each stated ratings level. Triggers Below At June 30, 2022 BBB+/A-2/P-2 $ 50 BBB/A-3/P-3 244 BBB- 1,166 BB+ and below 561 Our most significant contractual ratings requirements are related to ordinary course commercial activities. The timing within the quarter of the potential liquidity impact of these areas may differ, as can the remedies to resolving any potential breaches of required ratings levels. FOREIGN EXCHANGE. As a result of our global operations, we generate and incur a significant portion of our revenues and expenses in currencies other than theU.S. dollar. Such principal currencies include the euro, the Chinese renminbi, the Indian rupee and Japanese yen, among others. The effects of foreign currency fluctuations on earnings was less than$0.1 billion for both the three and six months endedJune 30, 2022 and 2021. See Note 19 for further information about our risk exposures, our use of derivatives, and the effects of this activity on our financial statements. STATEMENT OF CASH FLOWS CASH FLOWS FROM CONTINUING OPERATIONS. The most significant source of cash in CFOA is customer-related activities, the largest of which is collecting cash resulting from product or services sales. The most significant operating use of cash is to pay our suppliers, employees, tax authorities and post retirement plans. Cash used for operating activities was less than$0.1 billion in 2022, a decrease of$3.0 billion compared with 2021, primarily due to: a decrease in financial services-related cash collateral paid net of settlements on interest rate derivative contracts of$1.1 billion , which is a standard market practice to minimize derivative counterparty exposures; an increase in net income (after adjusting for amortization of intangible assets, non-cash losses related to our interests in AerCap andBaker Hughes and non-operating debt extinguishment costs) primarily in our Aerospace business; a decrease in cash used for working capital of$0.1 billion ; and a decrease in cash used for All other operating activities of$0.7 billion . The components of All other operating activities were as follows: Six months ended June 30 2022 2021
Increase (decrease) in employee benefit liabilities
Net restructuring and other charges/(cash expenditures) (158)
135
Decrease in factoring related liabilities (26)
(477)
Cash settlement of Alstom legacy legal matter -
(175)
Net interest and other financial charges/(cash paid) 25
(435)
Other (299)
(348)
All other operating activities$ (1,026) $ (1,755) 2022 2Q FORM 10-Q 15
-------------------------------------------------------------------------------- The cash impacts from changes in working capital compared to prior year were as follows: current receivables of$(2.3) billion , driven by lower collections and higher volume, partially offset by the impact of decreases in sales of receivables to third parties in 2021; inventories, including deferred inventory, of$(1.0) billion , driven by higher material purchases; current contract assets were less than$0.1 billion , driven by higher billings on our long-term service agreements, offset by lower revenue recognition on those agreements and net favorable changes in estimated profitability; accounts payable and equipment project accruals of$1.2 billion , driven by lower disbursements related to purchases of materials in prior periods; and progress collections and current deferred income of$2.1 billion , driven by lower liquidations and higher collections, including$0.3 billion of increased customer collections on equipment orders to support production at our Aerospace business. Cash from investing activities was$1.0 billion in 2022, a decrease of$0.5 billion compared with 2021, primarily due to: cash paid related to net settlements between our continuing operations and businesses in discontinued operations of$0.4 billion in 2022, primarily related to a capital contribution to Bank BPH, as compared to cash received of$1.4 billion in 2021, primarily from our GECAS business (both components of All other investing activities); the nonrecurrence of deferred purchase price collections on our receivable facilities of$0.2 billion ; an increase in purchases of insurance investment securities of$0.2 billion ; partially offset by an increase in proceeds of$2.1 billion from the sales of our retained ownership interest inBaker Hughes . Cash used for additions to property, plant and equipment and internal-use software, which are components of free cash flows*, was$0.7 billion and$0.6 billion in 2022 and 2021, respectively. Cash used for financing activities was$3.1 billion in 2022, a decrease of$8.9 billion compared with 2021, primarily due to: the nonrecurrence of cash paid to repurchase long term debt of$8.7 billion , including cash paid for debt extinguishment costs of$1.7 billion in 2021; lower other net debt maturities of$1.1 billion ; partially offset by higher cash paid on derivatives hedging foreign currency debt of$0.6 billion ; and an increase in purchases ofGE common stock for treasury of$0.3 billion .
CASH FLOWS FROM DISCONTINUED OPERATIONS. Cash from investing activities in 2022
was primarily due to a capital contribution to Bank BPH from continuing
operations. Cash from operating activities and cash used for investing
activities in 2021 was primarily due to cash generated from earnings in our
GECAS business and net settlements from GECAS to continuing operations,
respectively.
SUPPLY CHAIN FINANCE PROGRAMS. We facilitate voluntary supply chain finance programs with third parties, which provide participating suppliers the opportunity to sell theirGE receivables to third parties at the sole discretion of both the suppliers and the third parties. AtJune 30, 2022 andDecember 31, 2021 , included in accounts payable was$3.6 billion and$3.4 billion , respectively, of supplier invoices that are subject to the third-party programs. Total supplier invoices paid through these third-party programs were$3.7 billion and$3.0 billion for the six months endedJune 30, 2022 and 2021, respectively. CRITICAL ACCOUNTING ESTIMATES. Please refer to the Critical Accounting Estimates and Other Items sections within MD&A and Note 1 to the consolidated financial statements of our Annual Report on Form 10-K for the year endedDecember 31, 2021 for a discussion of our accounting policies and critical accounting estimates. NEW ACCOUNTING STANDARDS. TheFinancial Accounting Standards Board issued new guidance on accounting for long-duration insurance contracts that is effective for our interim and annual periods beginningJanuary 1, 2023 and applied retrospectively toJanuary 1, 2021 (i.e., the transition date). We will adopt the new guidance using the modified retrospective transition method where permitted. We expect adoption of the new guidance will significantly change the accounting for measurements of our long-duration insurance liabilities and reinsurance recoverables and materially affect our consolidated financial statements and require changes to our actuarial, accounting and financial reporting processes, systems, and internal controls. The new guidance requires cash flow assumptions used in the measurement of various insurance liabilities to be reviewed at least annually and updated if actual experience or other evidence indicates previous assumptions warrant revision with any required changes recorded in earnings. These changes will result in the elimination of premium deficiency testing and shadow adjustments. Under the new guidance, the discount rate will be equivalent to the upper-medium grade (i.e., single A) fixed-income instrument yield reflecting the duration characteristics of our insurance liabilities and is required to be updated in each reporting period with changes recorded in Accumulated other comprehensive income (AOCI). As reinsurance recoverables are recognized in a manner consistent with the liabilities relating to the underlying reinsurance contracts, changes in reinsurance recoverables from updating the single A discount rate in each reporting period are also recognized in AOCI. The allowance for credit losses on reinsurance recoverables will continue to be based on the locked-in discount rate for purposes of assessing changes in each reporting period. As such, movements in the gross reinsurance recoverable balance resulting from changes in the single A discount rate will not impact the allowance for credit losses. In conjunction with the adoption of the new guidance, we are in process of converting our long-term care insurance claim cost projection models to first principles models that are based on more granular assumptions of expected future experience and will facilitate the new guidance's requirements. *Non-GAAP Financial Measure 2022 2Q FORM 10-Q 16
-------------------------------------------------------------------------------- As we are approaching the effective date for the new accounting guidance, as well as our implementation of the first principles models, we have estimated the impact of those changes on Shareholders' equity as of the new guidance's transition date ofJanuary 1, 2021 . We currently estimate a decrease in Shareholders' equity at the transition date from adoption of the new guidance to be in an after-tax range of$7.0 billion to$8.0 billion , including approximately$5.5 billion to$6.0 billion in AOCI and$1.5 billion to$2.0 billion in Retained earnings. The decrease in AOCI is primarily attributable to remeasuring our insurance liabilities and reinsurance recoverables using the single A rate required under the new guidance, which is lower than our current locked-in discount rate, and the removal of shadow adjustments. The decrease in Retained earnings at the transition date is primarily attributable to certain long-term care insurance exposures where the projected present value of future cash flows exceeds the reserves at the transition date, based on the required lower level of grouping of contracts, combined with converting our long-term care insurance claim cost projection models to first principles models. To demonstrate the sensitivity of market interest rates on both our insurance liabilities and related assets, if theJanuary 1, 2021 transition date adjustment used rates as ofJune 30, 2022 , while holding everything else constant, we estimate the decrease in Shareholders' equity at the transition date would be in an after-tax range of$4.0 billion to$5.0 billion . The new guidance is only applicable to the measurements of our long-duration insurance liabilities under GAAP. While first principles models, in isolation, may result in some variances that reduce our GAAP insurance premium deficiency margin, we expect to maintain a positive margin in connection with these changes. In addition, we do not expect changes to statutory insurance reserves, regulatory capital requirements or projected funding. NON-GAAP FINANCIAL MEASURES. We believe that presenting non-GAAP financial measures provides management and investors useful measures to evaluate performance and trends of the total company and its businesses. This includes adjustments in recent periods to GAAP financial measures to increase period-to-period comparability following actions to strengthen our overall financial position and how we manage our business. In addition, management recognizes that certain non-GAAP terms may be interpreted differently by other companies under different circumstances. In various sections of this report we have made reference to the following non-GAAP financial measures in describing our (1) revenues, specifically organic revenues by segment; organic revenues; and equipment and services organic revenues (2) profit, specifically organic profit and profit margin by segment; Adjusted profit and profit margin; Adjusted organic profit and profit margin; Adjusted earnings (loss) and Adjusted income tax rate; and Adjusted earnings (loss) per share (EPS), and (3) cash flows, specifically free cash flows (FCF). The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow.
ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP)
Revenues Segment profit (loss) Profit margin Three months ended June 30 2022 2021 V% 2022 2021 V% 2022 2021 V pts Aerospace (GAAP)$ 6,127 $ 4,840 27 %$ 1,148 $ 176 F 18.7 % 3.6 % 15.1pts Less: acquisitions - - - - Less: business dispositions - - - - Less: foreign currency effect (19) - 33 6 Aerospace organic (Non-GAAP)$ 6,146 $ 4,839 27 %$ 1,116 $ 171 F 18.2 % 3.5 % 14.7pts HealthCare (GAAP)$ 4,519 $ 4,454 1 %$ 651 $ 801 (19) % 14.4 % 18.0 % (3.6)pts Less: acquisitions 49 - (29) (5) Less: business dispositions - - - - Less: foreign currency effect (166) - (40) (18) HealthCare organic (Non-GAAP)$ 4,636 $ 4,453 4 %$ 720 $ 824 (13) % 15.5 % 18.5 % (3.0)pts Renewable Energy (GAAP)$ 3,099 $ 4,049 (23) %$ (419) $ (99) U (13.5) % (2.4) % (11.1)pts Less: acquisitions - (10) - (4) Less: business dispositions - - - - Less: foreign currency effect (151) 2 40 (12) Renewable Energy organic (Non-GAAP)$ 3,250 $ 4,058 (20) %$ (459) $ (83) U (14.1) % (2.0) % (12.1)pts Power (GAAP)$ 4,202 $ 4,295 (2) %$ 320 $ 299 7 % 7.6 % 7.0 % 0.6pts Less: acquisitions - - - - Less: business dispositions - 162 - - Less: foreign currency effect (106) 8 (13) (5) Power organic (Non-GAAP)$ 4,309 $ 4,125 4 %$ 333 $ 304 10 % 7.7 % 7.4 % 0.3pts 2022 2Q FORM 10-Q 17
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ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP)
Revenue Segment profit (loss) Profit
margin
Six months ended June 30 2022 2021 V% 2022 2021 V% 2022 2021 V pts Aerospace (GAAP)$ 11,730 $ 9,832 19 %$ 2,057 $ 818 F 17.5 % 8.3 % 9.2pts Less: acquisitions - - - - Less: business dispositions - - - - Less: foreign currency effect (28) 1 49 7
Aerospace organic (Non-GAAP)
F 17.1 %
8.2 % 8.9pts
HealthCare (GAAP)$ 8,882 $ 8,761 1 %$ 1,189 $ 1,500 (21) % 13.4 % 17.1 % (3.7)pts Less: acquisitions 115 - (58) (5) Less: business dispositions - - - - Less: foreign currency effect (252) - (69) (19) HealthCare organic (Non-GAAP)$ 9,019 $ 8,761 3 %$ 1,316 $ 1,523 (14) % 14.6 %
17.4 % (2.8)pts
Renewable Energy (GAAP)$ 5,970 $ 7,297 (18) %$ (853) $ (333) U (14.3) % (4.6) % (9.7)pts Less: acquisitions - (21) - (8) Less: business dispositions - - - - Less: foreign currency effect (211) 3 57 (6) Renewable Energy organic (Non-GAAP)$ 6,180 $ 7,315 (16) %$ (910) $ (319) U (14.7) % (4.4) % (10.3)pts Power (GAAP)$ 7,703 $ 8,216 (6) %$ 383 $ 212 81 % 5.0 % 2.6 % 2.4pts Less: acquisitions - - - - Less: business dispositions - 318 - - Less: foreign currency effect (175) (9) (18) (28) Power organic (Non-GAAP)$ 7,879 $ 7,907 - %$ 401 $ 240 67 % 5.1 %
3.0 % 2.1pts
We believe these measures provide management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, which includes translational and transactional impacts, as these activities can obscure underlying trends. ORGANIC REVENUES (NON-GAAP) Three months ended
June 30 Six months ended June 30
2022 2021 V% 2022 2021 V%
Total revenues (GAAP) $ 18,646 $ 18,253
2 %
Less: Insurance revenues
765 783 1,533 1,538 Adjusted revenues (Non-GAAP)$ 17,880 $ 17,470
2 %
Less: acquisitions
50 (10) 116 (21) Less: business dispositions - 63 - 109 Less: foreign currency effect(a) (450) 10 (677) (5) Organic revenues (Non-GAAP)$ 18,280 $ 17,407
5 %
(a) Foreign currency impact in 2022 was primarily driven by
pound.
We believe these measures provide management and investors with a more complete understanding of underlying operating results and
trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, which
includes translational and transactional impacts, as these activities can obscure underlying trends.
EQUIPMENT AND SERVICES Three months ended June 30 Six months ended June 30 ORGANIC REVENUES (NON-GAAP) 2022 2021 V% 2022 2021 V% Total equipment revenues (GAAP)$ 7,603 $ 8,298 (8) %$ 14,467 $ 16,269 (11) % Less: acquisitions 48 - 113 - Less: business dispositions - (39) - (101) Less: foreign currency effect (278) 5 (410) (2)
Equipment organic revenues (Non-GAAP)
(6) %
Total services revenues (GAAP)$ 10,277 $ 9,172 12 %$ 19,686 $ 17,517 12 % Less: acquisitions 2 (10) 3 (21) Less: business dispositions - 102 - 210 Less: foreign currency effect (171) 4 (267) (3)
Services organic revenues (Non-GAAP)
15 %
We believe this measure provides management and investors with a more complete understanding of underlying operating results and
trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, which
includes translational and transactional impacts, as these activities can obscure underlying trends.
2022 2Q FORM 10-Q 18
--------------------------------------------------------------------------------
ADJUSTED PROFIT AND PROFIT MARGIN (NON-GAAP) Three months ended June 30 Six months ended June 30
2022 2021 V% 2022 2021 V%
Total revenues (GAAP) $ 18,646 $
18,253 2%
Less: Insurance revenues (Note 12)
765 783 1,533 1,538 Adjusted revenues (Non-GAAP)$ 17,880 $
17,470 2%
Total costs and expenses (GAAP)$ 17,680 $
20,023 (12)%
Less: Insurance cost and expenses (Note 12)
593 550 1,136 1,167 Less: interest and other financial charges(a) 379 472 769 957 Less: non-operating benefit cost (income) (134) 517 (271) 947 Less: restructuring & other(a) 35 225 73 338 Less: debt extinguishment costs (Note 11) - 1,416 - 1,416 Less: separation costs(a) 207 - 327 - Less: Steam asset sale impairment(a) 1 - 825 - Less: Russia and Ukraine charges(a) - - 230 - Add: noncontrolling interests 19 (3) 47 1 Add: EFS benefit from taxes (61) (47) (108) (78) Adjusted costs (Non-GAAP)$ 16,557 $
16,793 (1)%
Other income (loss) (GAAP)$ (1,210) $ 733 U$ (1,137) $ 1,406 U Less: gains (losses) on equity securities(a) (1,552) 497 (1,770) 844 Less: restructuring & other(a) - - 3 7 Less: gains (losses) on purchases and sales of 2 (5) 6 (2) business interests(a) Adjusted other income (loss) (Non-GAAP) $ 340 $ 241 41% $ 625 $ 558 12% Profit (loss) (GAAP)$ (244) $ (1,037) 76%$ (770) $ (799) 4% Profit (loss) margin (GAAP) (1.3)% (5.7)% 4.4pts (2.2)% (2.3)% 0.1pts Adjusted profit (loss) (Non-GAAP)$ 1,663 $
918 81%
Adjusted profit (loss) margin (Non-GAAP)
9.3% 5.3% 4.0pts 7.6% 5.1% 2.5pts
(a) See the Corporate and Other Consolidated Information sections for further information.
We believe that adjusting profit to exclude the effects of items that are not closely associated with ongoing operations provides
management and investors with a meaningful measure that increases the period-to-period comparability. Gains (losses) and restructuring
and other items are impacted by the timing and magnitude of gains associated with dispositions, and the timing and magnitude of costs
associated with restructuring and other activities.
ADJUSTED ORGANIC PROFIT (NON-GAAP) Three months ended June 30 Six months ended June 30
2022 2021 V% 2022 2021 V%
Adjusted profit (loss) (Non-GAAP) $ 1,663 $ 918 81 % $ 2,609 $ 1,716 52 %
Less: acquisitions (35) (9) (69) (13)
Less: business dispositions - 4 - 8
Less: foreign currency effect(a) 13 (18) 14 (23)
Adjusted organic profit (loss) (Non-GAAP)
79 %$ 2,664 $ 1,744 53 % Adjusted profit (loss) margin (Non-GAAP) 9.3 % 5.3 % 4 pts 7.6 % 5.1 % 2.5 pts
Adjusted organic profit (loss) margin (Non-GAAP) 9.2 % 5.4 % 3.8 pts
7.7 % 5.2 % 2.5 pts
(a) Included foreign currency negative effect on revenues of
(loss) of
We believe this measure provides management and investors with a more complete understanding of underlying operating results and trends of
established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency, which includes translational and
transactional impacts, as these activities can obscure underlying trends.
2022 2Q FORM 10-Q 19
--------------------------------------------------------------------------------
ADJUSTED EARNINGS (LOSS) AND Three months ended June 30 Six months ended June 30
ADJUSTED INCOME TAX RATE (NON-GAAP) 2022 2021 V% 2022 2021 V%
Earnings (loss) from continuing operations (GAAP)
(Note 17) $ (648) $ (626) (4) % $ (1,456) $ (604) U
Insurance earnings (pre-tax) 175 232 402 374
Tax effect on Insurance earnings (38) (51) (87) (82)
Less: Insurance earnings (net of tax) (Note 12) 137 181
315 292
Earnings (loss) excluding Insurance (Non-GAAP)
3 %
Non-operating benefit (cost) income (pre-tax)
(GAAP)
134 (517) 271 (947)
Tax effect on non-operating benefit (cost) income (28) 109
(57) 199 Less: non-operating benefit (cost) income (net of tax) 106 (409) 214 (748) Gains (losses) on purchases and sales of business interests (pre-tax)(a) 2 (5) 6 (2) Tax effect on gains (losses) on purchases and sales of business interests 29 1 28 1 Less: gains (losses) on purchases and sales of business interests (net of tax) 31 (4) 34 (2)
Gains (losses) on equity securities (pre-tax)(a) (1,552) 497
(1,770) 844 Tax effect on gains (losses) on equity securities(b)(c) 14 195 (6) 77 Less: gains (losses) on equity securities (net of tax) (1,537) 692 (1,776) 921 Restructuring & other (pre-tax)(a) (35) (225) (70) (331) Tax effect on restructuring & other 7 7 15 29 Less: restructuring & other (net of tax) (28) (218) (55) (302) Debt extinguishment costs (pre-tax) (Note 11) - (1,416) - (1,416) Tax effect on debt extinguishment costs - 297 - 297 Less: Debt extinguishment costs (net of tax) - (1,119) - (1,119) Separation costs (pre-tax)(a) (207) - (327) - Tax effect on separation costs 28 - 8 - Less: separation costs (net of tax) (179) - (318) - Steam asset sale impairment (pre-tax)(a) (1) - (825) - Tax effect on Steam asset sale impairment - - 84 -
Less: Steam asset sale impairment (net of tax) (1) -
(741) - Russia and Ukraine charges (pre-tax)(a) - - (230) - Tax effect on Russia and Ukraine charges - - 15 - Less: Russia and Ukraine charges (net of tax) - - (215) - Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) - (2) - -
Less:
(37) 8 Less: Tax loss related to GECAS transaction - - - (44) Adjusted earnings (loss) (Non-GAAP)$ 861 $ 244 F$ 1,124 $ 389 F Earnings (loss) from continuing operations before taxes (GAAP)$ (244) $ (1,037) $ (770) $ (799) Less: total adjustments above (pre-tax) (1,484) (1,435) (2,544) (1,479)
Adjusted earnings before taxes (Non-GAAP)
$ 1,774 $ 680
Provision (benefit) for income taxes (GAAP)
$ 520 $ (325) Less: tax effect on adjustments above 25 (566) 36 (486) Adjusted provision (benefit) for income taxes (Non-GAAP)$ 292 $ 99 $ 484 $ 161 Income tax rate (GAAP) (129.9) % 44.9 % (67.5) % 40.7 % Adjusted income tax rate (Non-GAAP) 23.5 % 24.9 % 27.3 % 23.7 % (a) See the Corporate and Other Consolidated Information sections for further information. (b) Includes tax benefits available to offset the tax on gains in equity securities. (c) Includes related tax valuation allowances. The service cost for our pension and other benefit plans are included in adjusted earnings*, which represents the ongoing cost of providing pension benefits to our employees. The components of non-operating benefit costs are mainly driven by capital allocation decisions and market performance. We believe the retained costs in Adjusted earnings* and the Adjusted income tax rate* provides management and investors a useful measure to evaluate the performance of the total company and increases period-to-period comparability. *Non-GAAP Financial Measure 2022 2Q FORM 10-Q 20 -------------------------------------------------------------------------------- ADJUSTED EARNINGS (LOSS) PER SHARE (EPS) (NON-GAAP) Three months ended June 30 Six months ended June 30 (In dollars) 2022 2021 V% 2022 2021 V% Earnings (loss) per share from continuing operations (GAAP) (Note 17)$ (0.59) $ (0.57) (4) %$ (1.33) $ (0.55) U Insurance earnings (pre-tax) 0.16 0.21 0.37 0.34 Tax effect on Insurance earnings (0.03) (0.05) (0.08) (0.07) Less: Insurance earnings (net of tax) (Note 12) 0.12 0.17 0.29 0.27 Earnings (loss) per share excluding Insurance (Non-GAAP)$ (0.71) $ (0.74)
4 %
Non-operating benefit (cost) income (pre-tax)
(GAAP)
0.12 (0.47) 0.25 (0.86)
Tax effect on non-operating benefit (cost) income (0.03) 0.10
(0.05) 0.18 Less: non-operating benefit (cost) income (net of tax) 0.10 (0.37) 0.19 (0.68) Gains (losses) on purchases and sales of business interests (pre-tax)(a) - - 0.01 - Tax effect on gains (losses) on purchases and sales of business interests 0.03 - 0.03 - Less: gains (losses) on purchases and sales of business interests (net of tax) 0.03 - 0.03 -
Gains (losses) on equity securities (pre-tax)(a) (1.41) 0.45
(1.61) 0.77 Tax effect on gains (losses) on equity securities(b)(c) 0.01 0.18 (0.01) 0.07 Less: gains (losses) on equity securities (net of tax) (1.40) 0.63 (1.62) 0.84 Restructuring & other (pre-tax)(a) (0.03) (0.21) (0.06) (0.30) Tax effect on restructuring & other 0.01 0.01 0.01 0.03 Less: restructuring & other (net of tax) (0.03) (0.20) (0.05) (0.28) Debt extinguishment costs (pre-tax) (Note 11) - (1.29) - (1.29) Tax effect on debt extinguishment costs - 0.27 - 0.27 Less: Debt extinguishment costs (net of tax) - (1.02) - (1.02) Separation costs (pre-tax)(a) (0.19) - (0.30) - Tax effect on separation costs 0.03 - 0.01 - Less: separation costs (net of tax) (0.16) - (0.29) - Steam asset sale impairment (pre-tax)(a) - - (0.75) - Tax effect on Steam asset sale impairment - - 0.08 - Less: Steam asset sale impairment (net of tax) - - (0.67) - Russia and Ukraine charges (pre-tax)(a) - - (0.21) - Tax effect on Russia and Ukraine charges - - 0.01 - Less: Russia and Ukraine charges (net of tax) - - (0.20) - Less: Accretion of redeemable noncontrolling interest (pre-tax and net of tax) - - - -
Less:
(0.03) 0.01 Less: Tax loss related to GECAS transaction - - - (0.04)
Adjusted earnings (loss) per share (Non-GAAP)
F$ 1.02 $ 0.35 F (a) See the Corporate and Other Consolidated Information sections for further information. (b) Includes tax benefits available to offset the tax on gains in equity securities. (c) Includes related tax valuation allowances.
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
The service cost for our pension and other benefit plans are included in adjusted earnings*, which represents the ongoing cost of
providing pension benefits to our employees. The components of non-operating benefit costs are mainly driven by capital allocation
decisions and market performance. We believe the retained costs in Adjusted earnings* and Adjusted EPS* provides management and
investors a useful measure to evaluate the performance of the total company and increases period-to-period comparability. We also
use Adjusted EPS* as a performance metric at the company level for our annual executive incentive plan for 2022.
*Non-GAAP Financial Measure
2022 2Q FORM 10-Q 21
--------------------------------------------------------------------------------
FREE CASH FLOWS (FCF) (NON-GAAP) Six months ended June 30
2022 2021 V$
CFOA (GAAP) $ (27) $ (2,991) $ 2,963
Less: Insurance CFOA 55 44
CFOA excluding Insurance (Non-GAAP) $ (82) $ (3,035) $ 2,953
Add: gross additions to property, plant and equipment (660)
(599)
Add: gross additions to internal-use software (48)
(49)
Less: separation costs cash expenditures (22)
-
Less: taxes related to business sales (50)
(6)
Less: CFOA impact from factoring programs discontinued in
2021
-
(2,706)
Less: CFOA impact from receivables factoring and supply chain finance eliminations - 2,191 Free cash flows (Non-GAAP)$ (718) $ (3,162) $ 2,444 We believe investors may find it useful to compare free cash flows* performance without the effects of cash used for operating activities related to our run-off Insurance business, separation costs cash expenditures and eliminations related to our receivables factoring and supply chain finance programs. We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flows. The CFOA impact from receivables factoring and supply chain finance eliminations represents activity related to those internal programs previously facilitated for our industrial segments by our Working Capital Solutions business. We completed the exit from all internal factoring and supply chain finance programs in 2021. CONTROLS AND PROCEDURES. Under the direction of our Chief Executive Officer and Chief Financial Officer, we evaluated our disclosure controls and procedures and internal control over financial reporting and concluded that (i) our disclosure controls and procedures were effective as ofJune 30, 2022 , and (ii) no change in internal control over financial reporting occurred during the quarter endedJune 30, 2022 , that has materially affected, or is reasonably likely to materially affect, such internal control over financial reporting.
OTHER FINANCIAL DATA
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS. OnMarch 6, 2022 , the Board of Directors authorized up to$3 billion of common share repurchases. We repurchased 4,579 thousand shares for$334 million during the three months endedJune 30, 2022 under this authorization. Approximate dollar value of shares that may Total number of shares yet be purchased purchased as part of under our share Total number of Average price our share repurchase repurchase Period shares purchased paid per share authorization authorization (Shares in thousands) 2022 April 300$ 76.53 300 May 2,373 75.49 2,263 June 2,016 69.52 2,016 Total 4,688$ 72.99 4,579$ 2,666
PulteGroup Reports Second Quarter 2022 Financial Results
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