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BUSINESSES HELD FOR SALE AND DISCONTINUED OPERATIONS
 3 Months Ended
Mar. 31, 2024
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 $514 million and liabilities of $339 million as of March 31, 2024, 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 second quarter of 2024. In connection with the expected sale, to date we have recorded a cumulative loss of $126 million in Other income (loss) in our Statement of Earnings (Loss).

ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALEMarch 31, 2024December 31, 2023
Cash and cash equivalents$88 $609 
Current receivables, inventories and contract assets633 551 
Non-current captive insurance investment securities548 570 
Property, plant and equipment and intangible assets - net253 254 
Valuation allowance on disposal group classified as held for sale(124)(124)
All other assets
108 125 
Assets of businesses held for sale$1,507 $1,985 
Progress collections and deferred income$964 $1,001 
Insurance liabilities and annuity benefits344 376 
Accounts payable, equipment project payables and other current liabilities463 392 
All other liabilities40 57 
Liabilities of businesses held for sale
$1,811 $1,826 

DISCONTINUED OPERATIONS primarily comprise our former GE HealthCare business, our mortgage portfolio in Poland (Bank BPH), 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 three months ended March 31, 2024, we collected net cash of $115 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 $2,517 million and $2,669 million as of March 31, 2024 and December 31, 2023, respectively. In order to maintain appropriate regulatory capital levels, during the year ended December 31, 2023, we made the previously reported non-cash capital contributions in the form of intercompany loan forgiveness of $1,797 million; no incremental contributions from GE were required during the three months ended March 31, 2024. For further information about the recent actions and other factors that are relevant to the estimate of total losses for borrower litigation at Bank BPH, see Note 23. 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 zero and $175 million in pre-tax charges for the three months ended March 31, 2024 and 2023, respectively, primarily related to the ongoing borrower litigation. At March 31, 2024, the total portfolio had a carrying value of zero, net of a valuation allowance.

20242023
RESULTS OF DISCONTINUED OPERATIONS
Three months ended March 31
GE HealthCareBank BPH & OtherTotalGE HealthCareBank BPH & OtherTotal
Total revenues$— $— $— $— $— $— 
Cost of equipment and services sold— — — — — — 
Other income, costs and expenses— 6 6 (20)(201)(221)
Earnings (loss) of discontinued operations before income taxes— 6 6 (20)(201)(221)
Benefit (provision) for income taxes— 6 6 1,479 (1)1,478 
Earnings (loss) of discontinued operations, net of taxes— 12 12 1,459 (202)1,257 
Gain (loss) on disposal before income taxes— 2 2 — — — 
Benefit (provision) for income taxes— — — — — — 
Gain (loss) on disposal, net of taxes— 2 2 — — — 
Earnings (loss) from discontinued operations, net of taxes$— $14 $14 $1,459 $(202)$1,257 

The tax benefit for the three months ended March 31, 2023 for GE HealthCare relates to preparatory steps for the spin-off, which resulted in taxable gain offset by a deferred tax asset and the reversal of valuation allowances for capital loss carryovers utilized against a portion of the gain.
ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONSMarch 31, 2024December 31, 2023
Cash, cash equivalents and restricted cash
$1,391 $1,396 
Current receivables13 14 
 Property, plant and equipment - net 52 58 
All other assets
224 200 
Deferred income taxes29 27 
Assets of discontinued operations(a)$1,709 $1,695 
Accounts payable and equipment project payables$34 $36 
Non-current compensation and benefits35 31 
All other liabilities(a)
1,101 1,125 
Liabilities of discontinued operations
$1,169 $1,193 
(a) Included $1,792 million and $1,963 million of valuation allowances against financing receivables held for sale, of which $1,553 million and $1,712 million related to estimated borrower litigation losses, and $964 million and $957 million in All other liabilities, related to estimated borrower litigation losses for Bank BPH’s foreign currency-denominated mortgage portfolio, as of March 31, 2024 and December 31, 2023, respectively. Accordingly, total estimated losses related to borrower litigation were $2,517 million and $2,669 million as of March 31, 2024 and December 31, 2023, respectively. As a result of the settlement program, the valuation allowance completely offsets the financing receivables balance as of March 31, 2024.