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BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS
 9 Months Ended
Sep. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]  
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS
NOTE 2. BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS. In the first quarter of 2022, we signed a non-binding memorandum of understanding to sell a portion of our Steam business within our Power segment to Électricité de France S.A. (EDF). We expect to complete the sale, subject to regulatory approval, in the first half of 2023, and closing the transaction is expected to result in a significant gain.

In the third quarter of 2021, we signed an agreement to exit GE's share of our boiler manufacturing business in China in our Power segment and recorded a loss on the planned disposal of this business of $172 million in Other income (loss) in our consolidated Statement of Earnings (Loss). The transaction closed in the fourth quarter of 2021.

ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALESeptember 30, 2022December 31, 2021
Current receivables, inventories and contract assets$475 $— 
Property, plant and equipment and intangible assets - net181 — 
Other assets
40 — 
Assets of businesses held for sale$696 $— 
Progress collections and deferred income$1,101 $— 
Accounts payable, equipment project accruals and other liabilities402 — 
Liabilities of businesses held for sale
$1,503 $— 

DISCONTINUED OPERATIONS primarily comprise our GE Capital Aviation Services (GECAS) business, discontinued in 2021, our mortgage portfolio in Poland, 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.

GECAS/AerCap. On November 1, 2021, we completed the combination of our GECAS business with AerCap Holdings N.V. (AerCap). We deconsolidated this business, reclassified its results to discontinued operations for all periods presented and recognized a non-cash after-tax loss of $3,638 million in discontinued operations for the nine months ended September, 30, 2021.

We have continuing involvement with AerCap, primarily through our ownership interest, ongoing sales or leases of products and services, and transition services that we provide to AerCap. For the nine months ended September 30, 2022, we had direct and indirect sales of $100 million to and purchases of $124 million from AerCap, primarily related to engine sales and engine leases, respectively.
Bank BPH. The mortgage portfolio in Poland (Bank BPH) comprises floating rate residential mortgages, 88% of which are indexed to or denominated in foreign currencies (primarily Swiss francs). At September 30, 2022, the total portfolio had a carrying value, net of reserves, of $1,276 million. The portfolio is recorded at the lower of cost or fair value, less cost to sell, which reflects market yields as well as estimates with respect to ongoing litigation in Poland related to foreign currency-denominated mortgages and other factors. Loss from discontinued operations for the nine months ended September 30, 2022 included $562 million non-cash pre-tax charges, reflecting estimates with respect to ongoing litigation as well as market yields. To ensure appropriate capital levels, during the second quarter of 2022, we made a capital contribution of $530 million into Bank BPH. Future changes in the estimated legal liabilities or market yields could result in further losses and capital contributions related to these loans in future reporting periods. See Note 21 for further information.

RESULTS OF DISCONTINUED OPERATIONS Three months ended September 30Nine months ended September 30
2022202120222021
Operations
Cost of equipment and services sold$— $(19)$— $(394)
Other income, costs and expenses(153)593 (608)1,432 
Earnings (loss) of discontinued operations before income taxes$(153)$575 $(608)$1,037 
Benefit (provision) for income taxes(22)(208)(36)(287)
Earnings (loss) of discontinued operations, net of taxes(a)$(174)$367 $(644)$750 
Disposal
Gain (loss) on disposal before income taxes$— $174 $(30)$(3,661)
Benefit (provision) for income taxes(b)90 62 95 55 
Gain (loss) on disposal, net of taxes$90 $236 $64 $(3,606)
Earnings (loss) from discontinued operations, net of taxes$(85)$602 $(580)$(2,856)
(a) Included zero and $490 million from GECAS operations for the three months ended September 30, 2022 and 2021, respectively. Included zero and $1,163 million from GECAS operations, including zero and $359 million of depreciation and amortization, for the nine months ended September 30, 2022 and 2021, respectively.
(b) Included $90 million reduction in estimated income tax expense relating to the disposal of our GECAS business for both the three months ended and nine months ended September 30, 2022.

ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONSSeptember 30, 2022December 31, 2021
Cash, cash equivalents and restricted cash
$1,046 $736 
Financing receivables held for sale (Polish mortgage portfolio)
1,276 1,799 
 Property, plant, and equipment - net 76 88 
All other assets
587 554 
Assets of discontinued operations$2,985 $3,177 
Accounts payable and all other liabilities
$1,103 $887 
Liabilities of discontinued operations
$1,103 $887