CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME

12 Months Ended

Dec. 31, 2022

Contractors [Abstract]

CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME

NOTE 8. CONTRACT AND OTHER DEFERRED ASSETS & PROGRESS COLLECTIONS AND DEFERRED INCOME

Contract and other deferred assets decreased $1,907 million in the year ended December 31, 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 $11,665 million, partially offset by revenues recognized of $9,680 million and net favorable changes in estimated profitability of $85 million at Aerospace and $303 million at Power, primarily attributable to contractual increases in billings, partially offset by cost inflation.

December 31, 2022	Aerospace		Renewable Energy		Power		HealthCare		Corporate		Total
Revenues in excess of billings	$	2,363	$	—	$	5,403	$	—	$	—	$	7,766
Billings in excess of revenues	(6,681)		—		(1,763)		—		—		(8,443)
Long-term service agreements	$	(4,318)	$	—	$	3,640	$	—	$	—	$	(677)
Short-term and other service agreements	391		108		56		174		245		973
Equipment contract revenues	42		955		1,348		447		—		2,792
Current contract assets	$	(3,884)	$	1,063	$	5,044	$	621	$	245	$	3,088
Nonrecurring engineering costs(a)	2,513		17		4		30		—		2,563
Customer advances and other(b)	2,519		—		724		204		—		3,447
Non-current contract and other deferred assets	$	5,032	$	17	$	728	$	234	$	—	$	6,010
Total contract and other deferred assets	$	1,148	$	1,079	$	5,772	$	854	$	245	$	9,098

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		87		80		166		256		928
Equipment contract revenues	33		1,297		1,709		287		—		3,326
Current contract assets	$	(2,881)	$	1,384	$	5,669	$	453	$	256	$	4,881
Nonrecurring engineering costs(a)	2,479		28		12		31		—		2,550
Customer advances and other(b)	2,620		—		801		154		—		3,574
Non-current contract and other deferred assets	$	5,099	$	28	$	813	$	184	$	—	$	6,124
Total contract and other deferred assets	$	2,218	$	1,412	$	6,482	$	637	$	256	$	11,005

(a) Included costs incurred prior to production (such as requisition engineering) for equipment production contracts, primarily within our Aerospace segment, which are amortized ratably over each unit produced.

(b) Included amounts due from customers at Aerospace for the sales of engines, spare parts and services, and at Power, for the sale of services upgrades, which we collect through incremental fixed or usage-based fees from servicing the equipment under long-term service agreements.

Progress collections and deferred income increased $763 million primarily due new collections received in excess of revenue recognition at Aerospace, including increased collections to support higher production, and at Renewable Energy, partially offset by a decrease at Power due to the reclassification of a portion of our GE Steam Power business to held for sale. Revenues recognized for contracts included in a liability position at the beginning of the year were $13,863 million and $14,884 million for the years ended December 31, 2022 and 2021, respectively.

December 31, 2022	Aerospace		Renewable Energy		Power		HealthCare		Corporate		Total
Progress collections on equipment contracts	$	74	$	2,464	$	3,973	$	—	$	—	$	6,511
Other progress collections	5,740		2,731		541		511		131		9,654
Current deferred income	233		208		13		1,391		107		1,952
Progress collections and deferred income	$	6,047	$	5,404	$	4,527	$	1,902	$	238	$	18,118
Non-current deferred income	1,110		183		104		597		12		2,006
Total Progress collections and deferred income	$	7,157	$	5,586	$	4,632	$	2,499	$	250	$	20,124

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