8-KOther EventsExhibits & Filings

GENERAL ELECTRIC CO 8-K Report, Corporate Update (Apr 25, 2023)

Filed April 25, 2023For Securities:GE

Summary

General Electric (GE) filed an 8-K to retrospectively present financial information for its 2022 Form 10-K. This filing is primarily to reflect the reclassification of its HealthCare business to discontinued operations following its spin-off into GE HealthCare Technologies Inc. (GEHC) on January 3, 2023. GE distributed approximately 80.1% of GEHC shares to its stockholders and no longer consolidates the healthcare business. GE now accounts for its remaining 19.9% stake in GE HealthCare at fair value within continuing operations. Additionally, GE adopted new accounting standards (ASU 2018-12) for long-duration insurance contracts, effective January 1, 2023. This adoption resulted in an after-tax decrease to total equity of $7,285 million as of January 1, 2021, which was subsequently reduced to $2.7 billion by December 31, 2022, due to market interest rate changes. This 8-K provides revised financial statements and Management's Discussion and Analysis for 2022 to incorporate these significant changes.

Key Highlights

  • 1GE has formally reclassified its former HealthCare business as 'discontinued operations' in its 2022 financial reporting, following the completion of the spin-off into GE HealthCare Technologies Inc. (GEHC) on January 3, 2023.
  • 2GE distributed approximately 80.1% of GEHC shares to its stockholders on a pro-rata basis.
  • 3GE no longer consolidates GE HealthCare into its financial results after the separation.
  • 4GE is accounting for its remaining ~19.9% ownership stake in GE HealthCare at fair value within its continuing operations.
  • 5The company adopted Accounting Standards Update No. 2018-12 (ASU 2018-12) for long-duration contracts, effective January 1, 2023.
  • 6The adoption of ASU 2018-12 resulted in an initial $7,285 million after-tax decrease to equity as of January 1, 2021, which was revised to a $2.7 billion after-tax decrease to equity as of December 31, 2022.

Frequently Asked Questions

This 8-K filing is to retrospectively present updated financial information for GE's 2022 fiscal year, primarily to reflect the reclassification of its HealthCare business as discontinued operations and the adoption of new accounting standards (ASU 2018-12).

GE completed the separation of its HealthCare business on January 3, 2023, distributing approximately 80.1% of the shares of the newly independent GE HealthCare Technologies Inc. (GEHC) to GE shareholders. GE no longer consolidates this business and now holds a minority interest.

The historical results of GE HealthCare are now reported as 'discontinued operations' in GE's consolidated financial statements. GE's remaining 19.9% ownership stake in GE HealthCare is accounted for at fair value within continuing operations.

ASU 2018-12 provides updated accounting guidance for long-duration insurance contracts. Its adoption by GE, effective January 1, 2023, led to an after-tax reduction in total equity. The initial reduction was $7,285 million as of January 1, 2021, which was later adjusted to $2.7 billion as of December 31, 2022, due to changes in market interest rates.