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, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. Federal	(423)	62)	(1,346)	939)	146)
Non-U.S.	823)	1,041)	1,154)	1,331)	2,008)
U.S. State	140)	4)	(85)	182)	(324)
Current	540)	1,107)	(277)	2,452)	1,830)
U.S. Federal	49)	(956)	(567)	(2,032)	(1,266)
Non-U.S.	590)	466)	608)	(793)	106)
U.S. State	(17)	(141)	(50)	(101)	56)
Deferred	622)	(631)	(9)	(2,926)	(1,104)
Provision (benefit) for income taxes	1,162)	476)	(286)	(474)	726)

Based on: 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), 10-K (reporting date: 2019-12-31).

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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 increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	GE Aerospace deferred decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
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 2021 to 2022 and from 2022 to 2023.

GE Aerospace, effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Tax on global activities including exports	4.50%	24.20%	-4.20%	-28.50%	91.00%
U.S. general business credits	-2.70%	-17.40%	5.10%	-3.30%	-22.50%
Debt tender and related valuation allowances	0.00%	2.10%	-25.50%	0.00%	0.00%
Deductible stock and restructuring losses	0.00%	0.00%	15.80%	0.00%	0.00%
Retained and sold ownership interests	-11.90%	-0.90%	0.10%	0.00%	0.00%
Goodwill impairments	0.00%	0.00%	0.00%	6.90%	26.00%
All other, net	0.50%	4.70%	-4.50%	-6.10%	-52.50%
Actual income tax rate, before Tax Cuts and Jobs Act enactment	11.40%	33.70%	7.80%	-10.00%	63.00%
Tax Cuts and Jobs Act enactment	0.00%	0.00%	0.00%	0.90%	0.20%
Actual income tax rate	11.40%	33.70%	7.80%	-9.10%	63.20%

Based on: 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), 10-K (reporting date: 2019-12-31).

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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 increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

GE Aerospace, components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Insurance company loss reserves	3,185)	1,782)	1,700)	—)	—)
Progress collections, contract assets and deferred items	2,753)	2,520)	2,093)	—)	—)
Accrued expenses and reserves	2,197)	2,538)	2,635)	—)	—)
Deferred expenses	1,317)	1,925)	1,597)	—)	—)
Other compensation and benefits	1,143)	975)	1,397)	—)	—)
Principal pension plans	1,359)	1,806)	2,375)	—)	—)
Non-U.S. loss carryforwards	972)	1,240)	1,354)	—)	—)
Investment securities	—)	516)	(1,278)	—)	—)
Principal retiree benefit plans	—)	692)	896)	—)	—)
Other	843)	703)	1,329)	—)	—)
Deferred tax assets	13,769)	14,697)	14,098)	—)	—)
Depreciation	(702)	—)	—)	—)	—)
Global investments, partnerships, join ventures and non-consolidated entities	(1,389)	(1,011)	(1,775)	—)	—)
Other	(1,103)	(1,981)	(1,468)	—)	—)
Deferred tax liabilities	(3,194)	(2,992)	(3,243)	—)	—)
Net deferred income tax asset (liability) (legacy)	—)	—)	—)	12,081)	9,889)
Net deferred income tax asset (liability)	10,575)	11,705)	10,855)	12,081)	9,889)

Based on: 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), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	GE Aerospace deferred tax assets increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
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) increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

GE Aerospace, deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred income tax assets	10,575)	11,705)	10,855)	12,081)	9,889)

Based on: 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), 10-K (reporting date: 2019-12-31).

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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 increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

GE Aerospace, adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	163,045)	187,788)	198,874)	253,452)	266,048)
Less: Noncurrent deferred tax assets, net	10,575)	11,705)	10,855)	12,081)	9,889)
Total assets (adjusted)	152,470)	176,083)	188,019)	241,371)	256,159)
Adjustment to Total GE Shareholders’ Equity
Total GE shareholders’ equity (as reported)	27,378)	36,366)	40,310)	35,552)	28,316)
Less: Net deferred tax assets (liabilities)	10,575)	11,705)	10,855)	12,081)	9,889)
Total GE shareholders’ equity (adjusted)	16,803)	24,661)	29,455)	23,471)	18,427)
Adjustment to Net Earnings (loss) Attributable To The Company
Net earnings (loss) attributable to the Company (as reported)	9,481)	225)	(6,520)	5,704)	(4,979)
Add: Deferred income tax expense (benefit)	622)	(631)	(9)	(2,926)	(1,104)
Net earnings (loss) attributable to the Company (adjusted)	10,103)	(406)	(6,529)	2,778)	(6,083)

Based on: 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), 10-K (reporting date: 2019-12-31).

GE Aerospace, Financial Data: Reported vs. Adjusted

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GE Aerospace, adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	14.68%	0.31%	-9.17%	7.81%	-5.69%
Adjusted net profit margin	15.65%	-0.55%	-9.18%	3.80%	-6.95%
Total Asset Turnover
Reported total asset turnover	0.40	0.39	0.36	0.29	0.33
Adjusted total asset turnover	0.42	0.42	0.38	0.30	0.34
Financial Leverage
Reported financial leverage	5.96	5.16	4.93	7.13	9.40
Adjusted financial leverage	9.07	7.14	6.38	10.28	13.90
Return on Equity (ROE)
Reported ROE	34.63%	0.62%	-16.17%	16.04%	-17.58%
Adjusted ROE	60.13%	-1.65%	-22.17%	11.84%	-33.01%
Return on Assets (ROA)
Reported ROA	5.81%	0.12%	-3.28%	2.25%	-1.87%
Adjusted ROA	6.63%	-0.23%	-3.47%	1.15%	-2.37%

Based on: 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), 10-K (reporting date: 2019-12-31).

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 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	GE Aerospace adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	GE Aerospace adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

GE Aerospace, Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company	9,481)	225)	(6,520)	5,704)	(4,979)
Sales of equipment and services	64,565)	73,602)	71,090)	73,022)	87,487)
Profitability Ratio
Net profit margin¹	14.68%	0.31%	-9.17%	7.81%	-5.69%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to the Company	10,103)	(406)	(6,529)	2,778)	(6,083)
Sales of equipment and services	64,565)	73,602)	71,090)	73,022)	87,487)
Profitability Ratio
Adjusted net profit margin²	15.65%	-0.55%	-9.18%	3.80%	-6.95%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net earnings (loss) attributable to the Company ÷ Sales of equipment and services
= 100 × 9,481 ÷ 64,565 = 14.68%

² Adjusted net profit margin = 100 × Adjusted net earnings (loss) attributable to the Company ÷ Sales of equipment and services
= 100 × 10,103 ÷ 64,565 = 15.65%

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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 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales of equipment and services	64,565)	73,602)	71,090)	73,022)	87,487)
Total assets	163,045)	187,788)	198,874)	253,452)	266,048)
Activity Ratio
Total asset turnover¹	0.40	0.39	0.36	0.29	0.33
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales of equipment and services	64,565)	73,602)	71,090)	73,022)	87,487)
Adjusted total assets	152,470)	176,083)	188,019)	241,371)	256,159)
Activity Ratio
Adjusted total asset turnover²	0.42	0.42	0.38	0.30	0.34

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Sales of equipment and services ÷ Total assets
= 64,565 ÷ 163,045 = 0.40

² Adjusted total asset turnover = Sales of equipment and services ÷ Adjusted total assets
= 64,565 ÷ 152,470 = 0.42

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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 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	163,045)	187,788)	198,874)	253,452)	266,048)
Total GE shareholders’ equity	27,378)	36,366)	40,310)	35,552)	28,316)
Solvency Ratio
Financial leverage¹	5.96	5.16	4.93	7.13	9.40
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	152,470)	176,083)	188,019)	241,371)	256,159)
Adjusted total GE shareholders’ equity	16,803)	24,661)	29,455)	23,471)	18,427)
Solvency Ratio
Adjusted financial leverage²	9.07	7.14	6.38	10.28	13.90

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total GE shareholders’ equity
= 163,045 ÷ 27,378 = 5.96

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total GE shareholders’ equity
= 152,470 ÷ 16,803 = 9.07

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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 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company	9,481)	225)	(6,520)	5,704)	(4,979)
Total GE shareholders’ equity	27,378)	36,366)	40,310)	35,552)	28,316)
Profitability Ratio
ROE¹	34.63%	0.62%	-16.17%	16.04%	-17.58%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to the Company	10,103)	(406)	(6,529)	2,778)	(6,083)
Adjusted total GE shareholders’ equity	16,803)	24,661)	29,455)	23,471)	18,427)
Profitability Ratio
Adjusted ROE²	60.13%	-1.65%	-22.17%	11.84%	-33.01%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net earnings (loss) attributable to the Company ÷ Total GE shareholders’ equity
= 100 × 9,481 ÷ 27,378 = 34.63%

² Adjusted ROE = 100 × Adjusted net earnings (loss) attributable to the Company ÷ Adjusted total GE shareholders’ equity
= 100 × 10,103 ÷ 16,803 = 60.13%

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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 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to the Company	9,481)	225)	(6,520)	5,704)	(4,979)
Total assets	163,045)	187,788)	198,874)	253,452)	266,048)
Profitability Ratio
ROA¹	5.81%	0.12%	-3.28%	2.25%	-1.87%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings (loss) attributable to the Company	10,103)	(406)	(6,529)	2,778)	(6,083)
Adjusted total assets	152,470)	176,083)	188,019)	241,371)	256,159)
Profitability Ratio
Adjusted ROA²	6.63%	-0.23%	-3.47%	1.15%	-2.37%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net earnings (loss) attributable to the Company ÷ Total assets
= 100 × 9,481 ÷ 163,045 = 5.81%

² Adjusted ROA = 100 × Adjusted net earnings (loss) attributable to the Company ÷ Adjusted total assets
= 100 × 10,103 ÷ 152,470 = 6.63%

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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 2021 to 2022 and from 2022 to 2023.

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)