RESTRUCTURING CHARGES AND SEPARATION COSTS

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

RESTRUCTURING CHARGES AND SEPARATION COSTS

NOTE 20. RESTRUCTURING CHARGES AND SEPARATION COSTS

RESTRUCTURING AND OTHER CHARGES. This table is inclusive of all restructuring charges in our segments and at Corporate, and the charges are shown below for the business where they originated. Separately, in our reported segment results, significant, higher-cost restructuring programs are excluded from measurement of segment operating performance for internal and external purposes; those excluded amounts are reported in Restructuring and other charges for Corporate.

RESTRUCTURING AND OTHER CHARGES	Three months ended March 31
	2024		2023
Workforce reductions	$	141	$	66
Plant closures & associated costs and other asset write-downs	85		82
Acquisition/disposition net charges and other	7		12
Total restructuring and other charges	$	233	$	161
Cost of equipment/services	$	105	$	36
Selling, general and administrative expenses	128		125
Total restructuring and other charges	$	233	$	161
Aerospace	$	10	$	4
Renewable Energy	96		65
Power	47		19
Corporate	80		72
Total restructuring and other charges(a)	$	233	$	161
Restructuring and other charges cash expenditures(b)	$	154	$	137

(a) Includes $125 million and $75 million, primarily in non-cash impairment, accelerated depreciation and other charges for the three months ended March 31, 2024 and 2023, respectively, not reflected in the liability table below.

(b) Primarily for employee severance payments, contract and lease terminations.

An analysis of changes in the liability for restructuring follows:

	Three months ended March 31
	2024		2023
Balance at beginning of period	$	918	$	977
Additions	108		86
Payments	(137)		(87)
Effect of foreign currency and other	(4)		—
Ending balance(a)	$	885	$	976

(a) Includes actuarial determined post-employment severance benefits reserve of $325 million and $353 million as of March 31, 2024 and 2023, respectively.

For the three months ended March 31, 2024 and 2023, respectively, restructuring primarily included exit activities related to the restructuring programs announced in 2022, reflecting lower Corporate shared-service and footprint needs as a result of the GE HealthCare spin-off, and exit activities across our businesses planned to be part of GE Vernova, primarily reflecting the selectivity strategy to operate in fewer markets and to simplify and standardize product variants at Renewable Energy. This plan was expanded during the third quarter of 2023 to include the consolidation of the global footprint and related resources at our Power business to better serve our customers.

SEPARATION COSTS. In November 2021, the company announced its plan to form three industry-leading, global public companies focused on the growth sectors of aviation, healthcare, and energy. As a result of this plan, we have incurred and expect to continue to incur separation, transition, and operational costs, which will depend on specifics of the transactions.

For the three months ended March 31, 2024 and 2023, respectively, we incurred $355 million and $205 million in pre-tax costs and paid $247 million and $204 million in cash, primarily related to employee costs, professional fees, costs to establish certain stand-alone functions and information technology systems, and other transformation and transaction costs to transition to stand-alone public companies. These costs are presented as separation costs in our consolidated Statement of Earnings (Loss). In addition, we recognized $54 million of net tax benefit and $56 million of net tax expense primarily associated with planned legal entity separation and tax on changes to indefinite reinvestment of foreign earnings.

As discussed in Note 2, GE completed the separation of its HealthCare business into a separate, independent publicly traded company, GE HealthCare Technologies Inc. As a result, pre-tax separation costs specifically identifiable to GE HealthCare are now reflected in discontinued operations. We incurred zero and $20 million in pre-tax costs, recognized zero and $4 million of tax benefits, and spent $9 million and $85 million in cash related to GE HealthCare for the three months ended March 31, 2024 and 2023, respectively.