Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

GE Aerospace, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
U.S. Federal	310)	(423)	62)	(1,346)	939)
Non-U.S.	423)	823)	1,041)	1,154)	1,331)
U.S. State	48)	140)	4)	(85)	182)
Current	781)	540)	1,107)	(277)	2,452)
U.S. Federal	250)	49)	(956)	(567)	(2,032)
Non-U.S.	59)	590)	466)	608)	(793)
U.S. State	(128)	(17)	(141)	(50)	(101)
Deferred	181)	622)	(631)	(9)	(2,926)
Provision (benefit) for income taxes	962)	1,162)	476)	(286)	(474)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	GE Aerospace current decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	GE Aerospace deferred increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Provision (benefit) for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	GE Aerospace provision (benefit) for income taxes increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

GE Aerospace, effective income tax rate (EITR) reconciliation

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State Taxes, net of federal benefit	1.60%	0.00%	0.00%	0.00%	0.00%
Tax on global activities including exports	-1.20%	4.50%	24.20%	-4.20%	-28.50%
U.S. general business credits	-3.20%	-2.70%	-17.40%	5.10%	-3.30%
Debt tender and related valuation allowances	0.00%	0.00%	2.10%	-25.50%	0.00%
Deductible stock and restructuring losses	0.00%	0.00%	0.00%	15.80%	0.00%
Retained and sold ownership interests	-1.40%	-11.90%	-0.90%	0.10%	0.00%
Goodwill impairments	0.00%	0.00%	0.00%	0.00%	6.90%
All other, net	-4.20%	0.50%	4.70%	-4.50%	-6.10%
Actual income tax rate, before Tax Cuts and Jobs Act enactment	12.60%	11.40%	33.70%	7.80%	-10.00%
Tax Cuts and Jobs Act enactment	0.00%	0.00%	0.00%	0.00%	0.90%
Actual income tax rate	12.60%	11.40%	33.70%	7.80%	-9.10%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Actual income tax rate, before Tax Cuts and Jobs Act enactment	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	GE Aerospace actual income tax rate, before Tax Cuts and Jobs Act enactment decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

GE Aerospace, components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Insurance company loss reserves	2,349)	3,185)	1,782)	1,700)	—)
Progress collections, Contract assets, Contract liabilities and deferred items	1,435)	2,753)	2,520)	2,093)	—)
Accrued expenses and reserves	1,231)	2,197)	2,538)	2,635)	—)
Deferred expenses	1,398)	1,317)	1,925)	1,597)	—)
Other compensation and benefits	510)	1,143)	975)	1,397)	—)
Principal pension plans	1,009)	1,359)	1,806)	2,375)	—)
Non-U.S. loss carryforwards	1,891)	972)	1,240)	1,354)	—)
Capital losses carryforward	849)	—)	—)	—)	—)
State deferred tax assets	762)	—)	—)	—)	—)
Investment securities	—)	—)	516)	(1,278)	—)
Principal retiree benefit plans	—)	—)	692)	896)	—)
Other	1,514)	843)	703)	1,329)	—)
Deferred tax assets	12,948)	13,769)	14,697)	14,098)	—)
Valuation allowance	(3,216)	—)	—)	—)	—)
Deferred tax assets after valuation allowance	9,732)	—)	—)	—)	—)
Intangibles	(1,049)	—)	—)	—)	—)
Depreciation	(712)	(702)	—)	—)	—)
Investment in securities	(661)	(1,389)	(1,011)	(1,775)	—)
Other	(199)	(1,103)	(1,981)	(1,468)	—)
Deferred tax liabilities	(2,621)	(3,194)	(2,992)	(3,243)	—)
Net deferred income tax asset (liability) (legacy)	—)	—)	—)	—)	12,081)
Net deferred income tax asset (liability)	7,111)	10,575)	11,705)	10,855)	12,081)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	GE Aerospace deferred tax assets decreased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets after valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.
Net deferred income tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	GE Aerospace net deferred income tax asset (liability) decreased from 2022 to 2023 and from 2023 to 2024.

GE Aerospace, deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Deferred income tax assets	7,111)	10,575)	11,705)	10,855)	12,081)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Deferred income tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	GE Aerospace deferred income tax assets decreased from 2022 to 2023 and from 2023 to 2024.

GE Aerospace, adjustments to financial statements

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	123,140)	163,045)	187,788)	198,874)	253,452)
Less: Noncurrent deferred tax assets, net	7,111)	10,575)	11,705)	10,855)	12,081)
Total assets (adjusted)	116,029)	152,470)	176,083)	188,019)	241,371)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	19,342)	27,378)	36,366)	40,310)	35,552)
Less: Net deferred tax assets (liabilities)	7,111)	10,575)	11,705)	10,855)	12,081)
Shareholders’ equity (adjusted)	12,231)	16,803)	24,661)	29,455)	23,471)
Adjustment to Net Earnings (loss) Attributable To The Company
Net earnings (loss) attributable to the Company (as reported)	6,556)	9,481)	225)	(6,520)	5,704)
Add: Deferred income tax expense (benefit)	181)	622)	(631)	(9)	(2,926)
Net earnings (loss) attributable to the Company (adjusted)	6,737)	10,103)	(406)	(6,529)	2,778)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

GE Aerospace, Financial Data: Reported vs. Adjusted

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GE Aerospace, adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	18.67%	14.68%	0.31%	-9.17%	7.81%
Adjusted net profit margin	19.18%	15.65%	-0.55%	-9.18%	3.80%
Total Asset Turnover
Reported total asset turnover	0.29	0.40	0.39	0.36	0.29
Adjusted total asset turnover	0.30	0.42	0.42	0.38	0.30
Financial Leverage
Reported financial leverage	6.37	5.96	5.16	4.93	7.13
Adjusted financial leverage	9.49	9.07	7.14	6.38	10.28
Return on Equity (ROE)
Reported ROE	33.90%	34.63%	0.62%	-16.17%	16.04%
Adjusted ROE	55.08%	60.13%	-1.65%	-22.17%	11.84%
Return on Assets (ROA)
Reported ROA	5.32%	5.81%	0.12%	-3.28%	2.25%
Adjusted ROA	5.81%	6.63%	-0.23%	-3.47%	1.15%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	GE Aerospace adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	GE Aerospace adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	GE Aerospace adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	GE Aerospace adjusted ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	GE Aerospace adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

GE Aerospace, Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company	6,556)	9,481)	225)	(6,520)	5,704)
Sales of equipment and services	35,121)	64,565)	73,602)	71,090)	73,022)
Profitability Ratio
Net profit margin¹	18.67%	14.68%	0.31%	-9.17%	7.81%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to the Company	6,737)	10,103)	(406)	(6,529)	2,778)
Sales of equipment and services	35,121)	64,565)	73,602)	71,090)	73,022)
Profitability Ratio
Adjusted net profit margin²	19.18%	15.65%	-0.55%	-9.18%	3.80%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Net profit margin = 100 × Net earnings (loss) attributable to the Company ÷ Sales of equipment and services
= 100 × 6,556 ÷ 35,121 = 18.67%

² Adjusted net profit margin = 100 × Adjusted net earnings (loss) attributable to the Company ÷ Sales of equipment and services
= 100 × 6,737 ÷ 35,121 = 19.18%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	GE Aerospace adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Sales of equipment and services	35,121)	64,565)	73,602)	71,090)	73,022)
Total assets	123,140)	163,045)	187,788)	198,874)	253,452)
Activity Ratio
Total asset turnover¹	0.29	0.40	0.39	0.36	0.29
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales of equipment and services	35,121)	64,565)	73,602)	71,090)	73,022)
Adjusted total assets	116,029)	152,470)	176,083)	188,019)	241,371)
Activity Ratio
Adjusted total asset turnover²	0.30	0.42	0.42	0.38	0.30

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Total asset turnover = Sales of equipment and services ÷ Total assets
= 35,121 ÷ 123,140 = 0.29

² Adjusted total asset turnover = Sales of equipment and services ÷ Adjusted total assets
= 35,121 ÷ 116,029 = 0.30

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	GE Aerospace adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	123,140)	163,045)	187,788)	198,874)	253,452)
Shareholders’ equity	19,342)	27,378)	36,366)	40,310)	35,552)
Solvency Ratio
Financial leverage¹	6.37	5.96	5.16	4.93	7.13
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	116,029)	152,470)	176,083)	188,019)	241,371)
Adjusted shareholders’ equity	12,231)	16,803)	24,661)	29,455)	23,471)
Solvency Ratio
Adjusted financial leverage²	9.49	9.07	7.14	6.38	10.28

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 123,140 ÷ 19,342 = 6.37

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 116,029 ÷ 12,231 = 9.49

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	GE Aerospace adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company	6,556)	9,481)	225)	(6,520)	5,704)
Shareholders’ equity	19,342)	27,378)	36,366)	40,310)	35,552)
Profitability Ratio
ROE¹	33.90%	34.63%	0.62%	-16.17%	16.04%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to the Company	6,737)	10,103)	(406)	(6,529)	2,778)
Adjusted shareholders’ equity	12,231)	16,803)	24,661)	29,455)	23,471)
Profitability Ratio
Adjusted ROE²	55.08%	60.13%	-1.65%	-22.17%	11.84%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROE = 100 × Net earnings (loss) attributable to the Company ÷ Shareholders’ equity
= 100 × 6,556 ÷ 19,342 = 33.90%

² Adjusted ROE = 100 × Adjusted net earnings (loss) attributable to the Company ÷ Adjusted shareholders’ equity
= 100 × 6,737 ÷ 12,231 = 55.08%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	GE Aerospace adjusted ROE improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company	6,556)	9,481)	225)	(6,520)	5,704)
Total assets	123,140)	163,045)	187,788)	198,874)	253,452)
Profitability Ratio
ROA¹	5.32%	5.81%	0.12%	-3.28%	2.25%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to the Company	6,737)	10,103)	(406)	(6,529)	2,778)
Adjusted total assets	116,029)	152,470)	176,083)	188,019)	241,371)
Profitability Ratio
Adjusted ROA²	5.81%	6.63%	-0.23%	-3.47%	1.15%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROA = 100 × Net earnings (loss) attributable to the Company ÷ Total assets
= 100 × 6,556 ÷ 123,140 = 5.32%

² Adjusted ROA = 100 × Adjusted net earnings (loss) attributable to the Company ÷ Adjusted total assets
= 100 × 6,737 ÷ 116,029 = 5.81%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	GE Aerospace adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

GE Aerospace (NYSE:GE)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

GE Aerospace, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

GE Aerospace, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)