GE(GE)2024-02-01 16:00Business Strategy and Spin-offs - General Electric plans to pursue a spin-off of its energy businesses, combining them into a new entity called GE Vernova[5]. - The company completed the separation of its HealthCare business on January 3, 2023, through the spin-off of GE HealthCare Technologies Inc.[8]. - GE's strategic plan includes separating GE Aerospace and GE Vernova into independent companies to enhance operational effectiveness[8]. - The GE HealthCare separation in January 2023 was executed as a tax-free spin-off, with the GE Vernova separation also intended to be tax-free for U.S. federal income tax purposes[156]. - The planned separation of GE Aerospace and GE Vernova into independent companies is expected to create long-term growth opportunities, but may face challenges and risks that could delay or prevent completion[156]. Financial Performance - Total revenues for General Electric Company in 2023 were 9.9 billion (17%) compared to 2022[22]. - Continuing earnings attributable to GE common shareholders were 7.98, a significant increase from a loss of 2.81, reflecting a strong operational performance[23]. - Cash flows from operating activities increased to 4.0 billion in 2022[24]. - Total revenues for 2023 increased to 58.1 billion in 2022[32]. - Adjusted total corporate operating costs decreased by 8,769 million in 2023, compared to a loss of 7.98[144]. Revenue Segments - Equipment revenues for 2023 were 4.5 billion (20%) from 2022, primarily due to growth in Renewable Energy and Aerospace[28]. - Services revenues increased to 4.9 billion (15%) compared to 2022, with notable growth in Aerospace and Power segments[28]. - Aerospace segment revenues rose to 26.050 billion in 2022, driven by higher commercial engine sales and services[42]. - The Renewable Energy segment's RPO (Remaining Performance Obligations) increased by 153.858 billion, reflecting higher demand for both equipment and services[41]. - Total segment revenues for 2023 were 2.1 billion (16%) from 2022, with segment losses decreasing by 1.9 billion in 2023, an increase from $1.8 billion in 2022, with significant contributions from the Aerospace segment[81]. - The company continues to invest in new product development, including small modular nuclear reactor technology, with a focus on cleaner, more reliable power[60]. Sustainability and Emissions - The company aims to reduce emissions and enhance sustainability through its product offerings and operational practices[9]. - The energy transition presents both risks and opportunities for GE, particularly in sectors historically reliant on fossil fuels, with significant investments needed in new technologies and infrastructure[161]. - GE's success in reducing greenhouse gas emissions will depend on government actions, market incentives, and the development of new technologies, which may involve complex and costly processes[161]. Human Capital and Workplace Culture - GE's human capital management focuses on health and safety, talent development, and promoting an inclusive workplace culture[12]. - The company is committed to maintaining competitive pay practices, with men and women performing similar work paid within 1% of each other[13]. - General Electric Company employed approximately 125,000 people as of December 31, 2023, with around 44,000 in the United States[14]. Cybersecurity and Risk Management - The company anticipates continued evolution of its cybersecurity risk management strategies following the planned spin-off of its GE Vernova businesses[148]. - The company has implemented a third-party risk management process that includes cybersecurity assessments on certain suppliers based on their risk profile[149]. - Cybersecurity threats pose significant risks to the company's systems and data, with increasing sophistication of attacks expected to impact operations[175]. Legal and Regulatory Risks - The company is subject to various legal proceedings and compliance risks that could lead to material cash outflows and reputational damage[189]. - Regulatory changes, including increased protectionism and environmental laws, may impose additional costs and affect the company's competitive position[187]. - The company is subject to risks from government audits and investigations that could lead to fines or penalties, affecting its ability to secure government contracts[188].