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.