PROPERTY, PLANT AND EQUIPMENT

6 Months Ended

Jun. 30, 2020

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

NOTE 7. PROPERTY, PLANT AND EQUIPMENT

(In millions)	June 30, 2020			December 31, 2019
Original cost	$	76,137		$	75,187
Less accumulated depreciation and amortization	(33,317		)	(31,897		)
Property, plant and equipment – net	$	42,821		$	43,290

Consolidated depreciation and amortization on property, plant and equipment was $1,290 million and $970 million for the three months ended June 30, 2020 and 2019, respectively, and $2,281 million and $1,965 million in the six months ended June 30, 2020 and 2019, respectively.

During the three and six months ended June 30, 2020, our GECAS business recognized pre-tax impairments of $292 million and $337 million, respectively, on its fixed-wing aircraft operating lease portfolio. Pre-tax impairments were insignificant for the three and six months ended June 30, 2019. We determined the fair values of these assets using primarily the income approach. These charges are included in costs of services sold within the Statement of Earnings (Loss) and within our Capital segment.

Income on our operating lease portfolio, primarily from our GECAS business, was $795 million and $1,017 million for the three months ended June 30, 2020 and 2019, respectively, and comprised fixed lease income of $714 million and $774 million and variable lease income of $82 million and $243 million, respectively. Income on our operating lease portfolio was $1,672 million and $1,949 million for the six months ended June 30, 2020 and 2019, respectively, and comprises fixed lease income of $1,419 million and $1,539 million and variable lease income of $253 million and $411 million, respectively.

Operating Lease Assets and Liabilities. Our consolidated Right of use operating lease (ROU) assets, included within property, plant and equipment in our Statement of Financial Position were $2,683 million and $2,896 million, as of June 30, 2020 and December 31, 2019, respectively. Our consolidated operating lease liabilities, included in All other liabilities in our Statement of Financial Position, were $2,930 million and $3,162 million, as of June 30, 2020 and December 31, 2019, respectively, which included GE Industrial operating lease liabilities of $3,117 million and $3,369 million, respectively.

OPERATING LEASE EXPENSE	Three months ended June 30				Six months ended June 30
(In millions)	2020		2019		2020		2019
Long-term (fixed)	$	183	$	219	$	360	$	445
Long-term (variable)	24		27		45		71
Short-term	54		43		123		90
Total operating lease expense	$	261	$	289	$	528	$	606