CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME

9 Months Ended

Sep. 30, 2022

Contractors [Abstract]

CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME

NOTE 9. CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME

Contract and other deferred assets decreased $1,084 million in the nine months ended September 30, 2022 primarily due to decreased long-term service agreements and the timing of billing milestones ahead of revenue recognition on long-term equipment contracts. Our long-term service agreements decreased primarily due to billings of $8,413 million, partially offset by revenues recognized of $7,111 million and net favorable changes in estimated profitability of $98 million at Aerospace and $219 million at Power, primarily attributable to contractual increases in billings, partially offset by cost inflation.

September 30, 2022	Aerospace		HealthCare		Renewable Energy		Power		Corporate		Total
Revenues in excess of billings	$	2,335	$	—	$	—	$	5,507	$	—	$	7,843
Billings in excess of revenues	(6,358)		—		—		(1,632)		—		(7,990)
Long-term service agreements	$	(4,023)	$	—	$	—	$	3,876	$	—	$	(147)
Short-term and other service agreements	414		180		117		73		22		805
Equipment contract revenues	22		395		985		1,418		222		3,043
Current contract assets	$	(3,586)	$	575	$	1,102	$	5,366	$	244	$	3,701
Nonrecurring engineering costs	2,555		28		15		6		—		2,604
Customer advances and other	2,654		187		—		776		—		3,617
Non-current contract and other deferred assets	$	5,209	$	215	$	15	$	782	$	—	$	6,221
Total contract and other deferred assets	$	1,622	$	790	$	1,117	$	6,149	$	243	$	9,922

December 31, 2021
Revenues in excess of billings	$	2,478	$	—	$	—	$	5,495	$	—	$	7,972
Billings in excess of revenues	(5,731)		—		—		(1,614)		—		(7,346)
Long-term service agreements	$	(3,253)	$	—	$	—	$	3,880	$	—	$	627
Short-term and other service agreements	340		166		87		80		20		692
Equipment contract revenues	33		287		1,297		1,709		236		3,562
Current contract assets	$	(2,881)	$	453	$	1,384	$	5,669	$	256	$	4,881
Nonrecurring engineering costs	2,479		31		28		12		—		2,550
Customer advances and other	2,620		154		—		801		—		3,574
Non-current contract and other deferred assets	$	5,099	$	184	$	28	$	813	$	—	$	6,124
Total contract and other deferred assets	$	2,218	$	637	$	1,412	$	6,482	$	256	$	11,005

Progress collections and deferred income decreased $1,074 million primarily due to the reclassification of a portion of our GE Steam Power business to held for sale and revenue recognition in excess of new collections at Renewable Energy, partially offset by new collections received in excess of revenue recognition at Aerospace, including increased collections to support higher production. Revenues recognized for contracts included in a liability position at the beginning of the year were $11,099 million and $12,602 million for the nine months ended September 30, 2022 and 2021, respectively.

September 30, 2022	Aerospace		HealthCare		Renewable Energy		Power		Corporate		Total
Progress collections on equipment contracts	$	80	$	—	$	1,731	$	3,737	$	—	$	5,548
Other progress collections	5,557		462		2,415		472		98		9,004
Current deferred income	190		1,333		253		21		97		1,893
Progress collections and deferred income	$	5,827	$	1,794	$	4,398	$	4,230	$	195	$	16,445
Non-current deferred income	1,061		532		149		100		1		1,842
Total Progress collections and deferred income	$	6,887	$	2,326	$	4,547	$	4,330	$	196	$	18,287

December 31, 2021
Progress collections on equipment contracts	$	142	$	—	$	1,843	$	5,198	$	—	$	7,183
Other progress collections	4,469		522		2,866		385		111		8,354
Current deferred income	170		1,336		198		33		99		1,835
Progress collections and deferred income	$	4,782	$	1,858	$	4,907	$	5,615	$	210	$	17,372
Non-current deferred income	1,090		592		194		110		3		1,989
Total Progress collections and deferred income	$	5,871	$	2,450	$	5,101	$	5,725	$	213	$	19,361