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BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS
 12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS
NOTE 2. BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS. In the fourth quarter of 2022, we signed a binding agreement to sell a portion of our Steam business within our Power segment to Électricité de France S.A. (EDF). We are working with EDF to complete the sale as soon as possible, subject to regulatory approvals and other closing conditions. Closing the transaction is expected to result in a significant gain.

In the fourth quarter of 2022, we classified our captive industrial insurance subsidiary, Electric Insurance Company, domiciled in Massachusetts, with assets of $541 million and liabilities of $378 million as of December 31, 2023, into held for sale. In the third quarter of 2023, we signed a binding agreement to sell this business and expect to complete the sale, subject to regulatory approvals and other customary closing conditions, in the first half of 2024. In connection with the expected sale, for the year ended December 31, 2023, we recorded a loss of $109 million in Other income (loss) in our Statement of Earnings (Loss).

ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALEDecember 31, 2023December 31, 2022
Cash and cash equivalents$609 $35 
Current receivables, inventories and contract assets551 495 
Non-current captive insurance investment securities570 554 
Property, plant and equipment and intangible assets - net254 232 
Valuation allowance on disposal group classified as held for sale(124)(17)
All other assets
125 76 
Assets of businesses held for sale$1,985 $1,374 
Progress collections and deferred income$1,001 $1,127 
Insurance liabilities and annuity benefits376 358 
Accounts payable, equipment project payables and other current liabilities392 371 
All other liabilities57 87 
Liabilities of businesses held for sale
$1,826 $1,944 

DISCONTINUED OPERATIONS primarily comprise our former GE HealthCare business, our mortgage portfolio in Poland (Bank BPH), our GE Capital Aviation Services (GECAS) business, 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.

GE HealthCare. On January 3, 2023, we completed the previously announced separation of our HealthCare business (the Separation), into a separate, independent, publicly traded company, GE HealthCare Technologies Inc. (GE HealthCare). The Separation was structured as a tax-free spin-off, and was achieved through GE's pro-rata distribution of approximately 80.1% of the outstanding shares of GE HealthCare to holders of GE common stock. In connection with the Separation, the historical results of GE HealthCare and certain assets and liabilities included in the Separation are reported in GE's consolidated financial statements as discontinued operations.

We have continuing involvement with GE HealthCare primarily through a transition services agreement, through which GE and GE HealthCare continue to provide certain services to each other for a period of time following the Separation, and a trademark licensing agreement. For the year ended December 31, 2023, we collected net cash of $842 million related to these activities.

Bank BPH. As previously reported, Bank BPH, along with other Polish banks, has been subject to ongoing litigation in Poland related to its portfolio of floating rate residential mortgage loans, with cases brought by individual borrowers seeking relief related to their foreign currency indexed or denominated mortgage loans in various courts throughout Poland. As previously reported, GE and Bank BPH approved the adoption of a settlement program and recorded a charge of $1,014 million in the quarter ended June 30, 2023. The estimate of total losses for borrower litigation at Bank BPH was $2,669 million and $1,359 million as of December 31, 2023 and 2022, respectively. In order to maintain appropriate regulatory capital levels, during the year ended December 31, 2023, we made previously reported non-cash capital contributions in the form of intercompany loan forgiveness of $1,797 million; no incremental cash contributions from GE were required in 2023. During the year ended December 31, 2022, we made cash capital contributions of $530 million. For further information about factors that are relevant to the estimate of total losses for borrower litigation at Bank BPH, see Note 24. Future changes or adverse developments could increase our estimate of total losses and potentially require future cash contributions to Bank BPH.
The Bank BPH financing receivable portfolio is recorded at the lower of cost or fair value, less cost to sell, which reflects market yields and estimates with respect to ongoing borrower litigation. Earnings (loss) from discontinued operations included $1,189 million, $720 million and $509 million in pre-tax charges for the years ended December 31, 2023, 2022 and 2021, respectively, primarily related to the ongoing borrower litigation. At December 31, 2023, the total portfolio had a carrying value of zero, net of a valuation allowance.

GECAS/AerCap. We have continuing involvement with AerCap, primarily through a note receivable, ongoing sales or leases of products and services, and transition services that we provide to AerCap. We paid net cash of $203 million to AerCap related to this activity.

RESULTS OF DISCONTINUED OPERATIONS
For the year ended December 31, 2023
GE HealthCareGECASBank BPH & OtherTotal
Total revenues$— $— $— $— 
Cost of equipment and services sold— — — — 
Other income, costs and expenses(50)— (1,252)(1,301)
Earnings (loss) of discontinued operations before income taxes(50)— (1,252)(1,301)
Benefit (provision) for income taxes1,706 — 4 1,710 
Earnings (loss) of discontinued operations, net of taxes1,656 — (1,248)409 
Gain (loss) on disposal before income taxes— — 6 6 
Benefit (provision) for income taxes— — — — 
Gain (loss) on disposal, net of taxes— — 6 6 
Earnings (loss) from discontinued operations, net of taxes$1,656 $— $(1,242)$414 

For the year ended December 31, 2022
Total revenues$18,457 $— $— $18,457 
Cost of equipment and services sold(11,265)— — (11,265)
Other income, costs and expenses(4,842)— (808)(5,651)
Earnings (loss) of discontinued operations before income taxes2,350 — (808)1,541 
Benefit (provision) for income taxes(521)— (32)(553)
Earnings (loss) of discontinued operations, net of taxes1,829 — (841)988 
Gain (loss) on disposal before income taxes6 (18)75 64 
Benefit (provision) for income taxes11 139 — 150 
Gain (loss) on disposal, net of taxes17 121 75 213 
Earnings (loss) from discontinued operations, net of taxes$1,846 $121 $(765)$1,202 

For the year ended December 31, 2021
Total revenues$17,717 $— $— $17,717 
Cost of equipment and services sold(10,520)(398)— (10,918)
Other income, costs and expenses(4,965)1,992 (599)(3,572)
Earnings (loss) of discontinued operations before income taxes2,233 1,594 (599)3,227 
Benefit (provision) for income taxes(521)(258)(77)(856)
Earnings (loss) of discontinued operations, net of taxes1,711 1,336 (676)2,371 
Gain (loss) on disposal before income taxes12 (3,312)65 (3,234)
Benefit (provision) for income taxes2 (570)(38)(606)
Gain (loss) on disposal, net of taxes14 (3,882)27 (3,841)
Earnings (loss) from discontinued operations, net of taxes$1,726 $(2,546)$(649)$(1,469)

The tax benefit for the year ended December 31, 2023 for GE HealthCare relates to retroactive 2023 IRS guidance concerning foreign tax credits and accounting method changes and completion of the 2022 U.S. federal tax return as well as net tax benefit resulting from preparatory steps for the spin-off.
ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONSDecember 31, 2023December 31, 2022
Cash, cash equivalents and restricted cash
$1,396 $2,627 
Current receivables14 3,361 
Inventories, including deferred inventory costs— 2,512 
Goodwill— 12,799 
Other intangible assets - net— 1,520 
Contract and other deferred assets— 854 
Financing receivables held for sale (Polish mortgage portfolio)(a)
— 1,200 
 Property, plant and equipment - net 58 2,379 
All other assets
200 2,109 
Deferred income taxes27 2,528 
Assets of discontinued operations$1,695 $31,890 
Accounts payable and equipment project payables$36 $3,487 
Progress collections and deferred income— 2,499 
Long-term borrowings— 8,273 
Non-current compensation and benefits31 5,658 
All other liabilities(a)
1,125 4,556 
Liabilities of discontinued operations
$1,193 $24,474 
(a) Included $1,963 million and $848 million of valuation allowances against Financing receivables held for sale, of which $1,712 million and $611 million related to estimated borrower litigation losses, and $957 million and $748 million in All other liabilities, related to estimated borrower litigation losses for Bank BPH’s foreign currency-denominated mortgage portfolio, as of December 31, 2023 and December 31, 2022, respectively. Accordingly, total estimated losses related to borrower litigation were $2,669 million and $1,359 million as of December 31, 2023 and December 31, 2022, respectively. As a result of the settlement program, the valuation allowance completely offsets the financing receivables balance as of December 31, 2023.