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BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS
 3 Months Ended
Mar. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]  
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS
NOTE 2. BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS
ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE. On March 31, 2020, we completed the sale of our BioPharma business within our Healthcare segment for total consideration of $21,141 million (after certain working capital adjustments). The consideration consisted of $20,724 million in cash and $417 million of pension liabilities that were assumed by Danaher. We received cash of $20,321 million on March 31st and an additional $403 million on April 1st. In addition, we expect to incur approximately $200 million of cash payments directly associated with the transaction in the second quarter. As a result, we recognized a pretax gain of $12,292 million ($11,145 million after tax) in our consolidated Statement of Earnings (Loss).

Assets and liabilities of businesses held for sale primarily comprise the remaining Lighting business within Corporate and the remaining PK AirFinance business within our Capital segment.
ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE (In millions)
March 31, 2020

December 31, 2019





Current receivables
$
217

$
499

Inventories
160

712

Financing receivables held for sale
197

197

Property, plant, and equipment
77

958

Goodwill and Other intangible assets - net
169

6,286

Valuation allowance
(412
)
(719
)
Deferred income taxes
—

815

All other assets
97

400

Assets of businesses held for sale
$
506

$
9,149




Accounts payable & Progress collections and deferred income
$
135

$
843

Non-current compensation and benefits
—

466

All other liabilities
84

349

Liabilities of businesses held for sale
$
219

$
1,658


DISCONTINUED OPERATIONS. Discontinued operations primarily include our Baker Hughes and Transportation segments, and certain businesses in our GE Capital segment (our mortgage portfolio in Poland and trailing liabilities associated with the sale of our GE Capital businesses). Results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods presented.

In September 2019, we reduced our ownership interest in Baker Hughes from 50.2% to 36.8% and reclassified its results to discontinued operations for all periods presented.

We have continuing involvement with Baker Hughes primarily through our remaining interest, ongoing purchases and sales of products and services, transition services that we provide to Baker Hughes as well as an aeroderivative joint venture, which we formed with Baker Hughes and currently consolidate. In the first quarter of 2020, we had sales and purchases of products and services with Baker Hughes and affiliates of $290 million and $36 million, respectively. We have collected net cash of $415 million from Baker Hughes related to these activities, including $106 million of repayments on the promissory note. In addition, in the first quarter of 2020 we received a dividend of $68 million from Baker Hughes.

In February 2019, we completed the spin-off and subsequent merger of our Transportation business with Wabtec. As a result, we recorded a gain of $3,471 million ($2,508 million after-tax) in discontinued operations.
RESULTS OF DISCONTINUED OPERATIONS
(In millions)
Baker Hughes
 
Transportation
 
 GE Capital
 
Total
Three months ended March 31
2020
2019
 
2020
2019
 
2020
2019
 
2020
2019
 
 
 
 
 
 
 
 
 
 
 
 
Operations
 
 
 
 
 
 
 
 
 
 
 
Sales of goods and services
$
—

$
5,616

 
$
—

$
549

 
$
—

$
—

 
$
—

$
6,165

GE Capital revenues from services
—

—

 
—

—

 
(76
)
39

 
(76
)
39

Cost of goods and services sold
—

(4,677
)
 
—

(478
)
 
—

—

 
—

(5,155
)
Other costs and expenses
—

(787
)
 
(4
)
(9
)
 
(85
)
(74
)
 
(89
)
(870
)
 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) of discontinued operations before income taxes
—

152

 
(4
)
62

 
(161
)
(35
)
 
(165
)
179

Benefit (provision) for income taxes
(13
)
(82
)
 
7

(12
)
 
(3
)
25

 
(9
)
(70
)
Earnings (loss) of discontinued operations, net of taxes(a)
$
(13
)
$
70

 
$
3

$
50

 
$
(164
)
$
(10
)
 
$
(174
)
$
109

 
 
 
 
 
 
 
 
 
 
 
 
Disposal
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) on disposal before income taxes
(4
)
—

 
—

3,471

 
—

47

 
(4
)
3,518

Benefit (provision) for income taxes
—

—

 
—

(963
)
 
—

(2
)
 
—

(964
)
Gain (loss) on disposal, net of taxes
$
(4
)
$
—

 
$
—

$
2,508

 
$
—

$
45

 
$
(4
)
$
2,553

 
 
 
 
 
 
 
 
 
 
 
 
Earnings (loss) from discontinued operations, net of taxes
$
(17
)
$
70

 
$
3

$
2,558

 
$
(164
)
$
35

 
$
(178
)
$
2,663

(a) Earnings (loss) of discontinued operations attributable to the Company after income taxes was $(172) million and $76 million for the three months ended March 31, 2020 and 2019 respectively.
ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS (In millions)
March 31, 2020

December 31, 2019




Cash, cash equivalents and restricted cash
$
437

$
638

Investment securities
170

202

Current receivables
63

81

Financing receivables held for sale (Polish mortgage portfolio)
2,371

2,485

 Property, plant, and equipment
117

123

Deferred income taxes
211

264

All other assets
285

317

Assets of discontinued operations
$
3,653

$
4,109




Accounts payable & Progress collections and deferred income
$
22

$
40

All other liabilities (a)
117

163

Liabilities of discontinued operations
$
139

$
203


(a) Included within All other liabilities of discontinued operations at March 31, 2020 and December 31, 2019 are intercompany tax receivables in the amount of $880 million and $839 million, respectively, primarily related to the financial services businesses that were part of the GE Capital Exit Plan, which are offset within All other liabilities of consolidated GE.