In the second quarter of 2024, we signed a binding agreement to sell our non-core licensing business to Dolby Laboratories, Inc. for cash proceeds of $429 million, and classified the business as held for sale. GE Aerospace will retain intellectual property related to its core aerospace and defense technologies as well as the trademark portfolio for the GE brand. We expect to complete the sale, subject to regulatory approvals and other customary closing conditions, in the second half of 2024. Closing the transaction is expected to result in a gain.


ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE	June 30, 2024		December 31, 2023


Non-current captive insurance investment securities	$	—	$	570
Property, plant and equipment and intangible assets - net	89		17
Valuation allowance on disposal group classified as held for sale	—		(124)
All other assets	49		77
Assets of businesses held for sale	$	137	$	541
Insurance liabilities and annuity benefits	$	—	$	376
Accounts payable and other liabilities	21		1
Borrowings	39		—
Liabilities of businesses held for sale	$	61	$	378

DISCONTINUED OPERATIONS primarily comprise our former GE Vernova and GE HealthCare businesses, 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 Vernova. On April 2, 2024, we completed the previously announced separation of GE Vernova. The separation was structured as a tax-free spin-off and was achieved through the Company's pro-rata distribution of all the outstanding shares of GE Vernova to holders of the Company's common stock. In connection with the GE Vernova separation, the historical results of GE Vernova and certain assets and liabilities included in the separation are reported in GE Aerospace consolidated financial statements as discontinued operations. In addition, the Company contributed $515 million of cash to fund GE Vernova’s future operations such that GE Vernova’s cash balance on the date of separation was $4,242 million.

We have continuing involvement with GE Vernova primarily through ongoing sales of products, a transition services agreement, through which GE Aerospace and GE Vernova continue to provide certain services to each other for a period of time following the separation, a separation and distribution agreement, including performance and financial guarantees, a tax matters agreement and a trademark licensing agreement. For the three months ended June 30, 2024, we had direct and indirect sales of $69 million to GE Vernova, primarily related to engine sales and parts. We collected net cash of $477 million related to the transition services agreement and sales of engines and parts.

GE HealthCare. On January 3, 2023, we completed the previously announced separation of our HealthCare business, 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 the Company's pro-rata distribution of approximately 80.1% of the outstanding shares of GE HealthCare to holders of the Company's 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 Aerospace consolidated financial statements as discontinued operations.

We have continuing involvement with GE HealthCare primarily through a transition services agreement, through which GE Aerospace and GE HealthCare continue to provide certain services to each other for a period of time following the separation, a tax matters agreement and a trademark licensing agreement. For the six months ended June 30, 2024, we collected net cash of $157 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, a settlement program was adopted and we 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 $2,474 million and $2,669 million as of June 30, 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 Aerospace were required during the six months ended June 30, 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 22. 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 were zero in pre-tax charges for both the three and six months ended June 30, 2024, and $1,014 million and $1,189 million in pre-tax charges for the three and six months ended June 30, 2023, respectively, primarily related to the ongoing borrower litigation. At June 30, 2024, the total portfolio had no carrying value, net of a valuation allowance.


RESULTS OF DISCONTINUED OPERATIONS Three months ended June 30	2024								2023
	GE Vernova		GE HealthCare		Bank BPH & Other		Total		GE Vernova		GE HealthCare		Bank BPH & Other		Total
Total revenues	$	—	$	—	$	—	$	—	$	8,136	$	—	$	—	$	8,136
Cost of equipment and services sold	—		—		—		—		(6,885)		—		—		(6,885)
Other income, costs and expenses	(11)		10		(2)		(2)		(1,373)		—		(1,040)		(2,412)
Earnings (loss) of discontinued operations before income taxes	(11)		10		(2)		(2)		(121)		—		(1,040)		(1,161)
Benefit (provision) for income taxes	(58)		(2)		(1)		(61)		(79)		6		11		(62)
Earnings (loss) of discontinued operations, net of taxes	(68)		8		(3)		(63)		(200)		6		(1,029)		(1,222)

Gain (loss) on disposal before income taxes	—		—		9		9		—		—		4		4
Benefit (provision) for income taxes	—		—		—		—		—		—		—		—
Gain (loss) on disposal, net of taxes	—		—		9		9		—		—		4		4
Earnings (loss) from discontinued operations, net of taxes	$	(68)	$	8	$	6	$	(54)	$	(200)	$	6	$	(1,025)	$	(1,218)


RESULTS OF DISCONTINUED OPERATIONS Six months ended June 30	2024								2023
	GE Vernova		GE HealthCare		Bank BPH & Other		Total		GE Vernova		GE HealthCare		Bank BPH & Other		Total
Total revenues	$	7,244	$	—	$	—	$	7,244	$	14,923	$	—	$	—	$	14,923
Cost of equipment and services sold	(6,074)		—		—		(6,074)		(12,752)		—		—		(12,752)
Other income, costs and expenses	(1,299)		11		4		(1,284)		(2,719)		(20)		(1,241)		(3,980)
Earnings (loss) of discontinued operations before income taxes	(129)		11		4		(115)		(548)		(20)		(1,241)		(1,809)
Benefit (provision) for income taxes	(132)		(2)		5		(129)		(137)		1,485		10		1,359
Earnings (loss) of discontinued operations, net of taxes	(261)		9		9		(243)		(685)		1,466		(1,231)		(450)

Gain (loss) on disposal before income taxes	—		—		11		11		—		—		4		4
Benefit (provision) for income taxes	—		—		—		—		—		—		—		—
Gain (loss) on disposal, net of taxes	—		—		11		11		—		—		4		4
Earnings (loss) from discontinued operations, net of taxes	$	(261)	$	9	$	20	$	(232)	$	(685)	$	1,466	$	(1,227)	$	(447)

The tax benefit for the six months ended June 30, 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 OPERATIONS	June 30, 2024		December 31, 2023
Cash, cash equivalents and restricted cash	$	1,398	$	3,762
Current receivables	12		7,324
Inventories, including deferred inventory costs	—		8,245
Goodwill	—		4,437
Other intangible assets - net	—		1,053
Contract and other deferred assets	—		8,959

Property, plant and equipment - net	48		5,306
All other assets	332		5,750
Deferred income taxes	28		3,093
Assets of discontinued operations(a)(b)	$	1,817	$	47,927

Accounts payable	$	81	$	8,475
Contract liabilities, progress collections & deferred income	—		15,255
Long-term borrowings	—		294
Non-current compensation and benefits	34		3,589
All other liabilities(a)	1,552		11,600
Liabilities of discontinued operations(b)	$	1,667	$	39,213

(a) Included $1,742 million and $1,963 million of valuation allowances against financing receivables held for sale, of which $1,501 million and $1,712 million related to estimated borrower litigation losses, and $973 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 June 30, 2024 and December 31, 2023, respectively. Accordingly, total estimated losses related to borrower litigation were $2,474 million and $2,669 million as of June 30, 2024 and December 31, 2023, respectively. As a result of the settlement program, the valuation allowance completely offsets the financing receivables balance as of June 30, 2024 and December 31, 2023.