Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

GE Aerospace, consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net earnings (loss)	6,566)	9,443)	292)	(6,591)	5,546)
(Earnings) loss from discontinued operations activities	91)	(414)	644)	3,195)	125)
Depreciation and amortization of property, plant and equipment	834)	1,473)	1,802)	1,871)	4,636)
Amortization of intangible assets	350)	606)	1,742)	1,138)	1,382)
Goodwill impairments	251)	—)	—)	—)	1,717)
(Gains) losses on purchases and sales of business interests	—)	(104)	(66)	40)	(12,526)
(Gains) losses on equity securities	(719)	(5,842)	144)	(1,656)	2,105)
Debt extinguishment costs	—)	—)	465)	6,524)	—)
Principal pension plans cost (benefit)	(653)	(1,108)	575)	2,650)	3,559)
Principal pension plans employer contributions	(210)	(212)	(325)	(326)	(2,806)
Other postretirement benefit plans, net	(299)	(644)	(1,160)	(1,144)	(893)
Provision (benefit) for income taxes	962)	1,162)	476)	(286)	(474)
Cash paid during the year for income taxes	(334)	(1,148)	(1,127)	(1,165)	(1,441)
(Increase) decrease in current receivables	(1,076)	(833)	(3,011)	(177)	(1,319)
(Increase) decrease in inventories, including deferred inventory costs	(1,528)	(1,524)	(2,341)	(702)	1,105)
(Increase) decrease in current contract assets	(112)	1,283)	1,463)	1,031)	1,631)
Increase (decrease) in contract liabilities and current deferred income	1,066)	—)	—)	—)	—)
Increase (decrease) in progress collections	531)	—)	—)	—)	—)
Increase (decrease) in progress collections and current deferred income (legacy)	—)	2,933)	2,492)	(1,052)	(216)
Increase (decrease) in accounts payable	688)	(221)	2,793)	(2)	(575)
Changes in operating working capital	(431)	1,638)	1,396)	(902)	626)
Increase (decrease) in sales discounts and allowances	(266)	—)	—)	—)	—)
Financial services derivatives net collateral/settlement	—)	3)	(154)	(1,143)	—)
All other operating activities	(325)	717)	1,160)	(1,317)	2,041)
Adjustments to reconcile net earnings (loss) to cash from operating activities	(840)	(3,459)	4,928)	4,284)	(2,074)
Cash from operating activities	5,817)	5,570)	5,864)	888)	3,597)
Additions to property, plant and equipment and internal-use software	(1,032)	(1,595)	(1,484)	(1,361)	(3,403)
Dispositions of property, plant and equipment	114)	89)	209)	167)	1,644)
Net (increase) decrease in GE Capital financing receivables	—)	—)	—)	—)	(20)
Proceeds from sale of discontinued operations	—)	—)	—)	22,356)	—)
Proceeds from principal business dispositions	499)	—)	15)	1)	20,596)
Net payments for principal businesses purchased	(135)	(365)	(30)	(1,550)	(85)
Sales of retained ownership interests	5,250)	9,004)	4,717)	4,145)	417)
Net purchases of insurance investment securities	(963)	(986)	(876)	(1,290)	(1,352)
All other investing activities	(4,289)	791)	(726)	1,237)	(1,019)
Cash (used for) from investing activities	(556)	6,938)	1,825)	23,705)	16,778)
Net increase (decrease) in borrowings, maturities of 90 days or less	2)	(55)	65)	(710)	(4,168)
Newly issued debt, maturities longer than 90 days	—)	11)	8,205)	364)	15,028)
Repayments and other debt reductions, maturities longer than 90 days	(788)	(3,360)	(11,205)	(36,521)	(29,876)
Dividends paid to shareholders	(1,008)	(589)	(639)	(575)	(648)
Cash received (paid) for debt extinguishment costs	—)	—)	338)	(7,196)	—)
Redemption of preferred stock	—)	(5,795)	—)	—)	—)
Purchases of common stock for treasury	(5,827)	(1,233)	(1,048)	(107)	—)
All other financing activities	993)	409)	(1,301)	(551)	(189)
Cash used for financing activities	(6,628)	(10,612)	(5,585)	(45,296)	(19,853)
Cash from (used for) operating activities, discontinued operations	(1,107)	(391)	52)	2,444)	—)
Cash (used for) from investing activities, discontinued operations	(1,110)	(2,960)	445)	(2,397)	(136)
Cash from (used for) financing activities, discontinued operations	(98)	2,000)	—)	119)	1)
Cash from (used for) discontinued operations	(2,315)	(1,351)	497)	166)	(135)
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	(193)	119)	(369)	(213)	144)
Increase (decrease) in cash, cash equivalents and restricted cash	(3,875)	664)	2,232)	(20,750)	531)
Cash, cash equivalents and restricted cash at beginning of year	19,755)	19,091)	16,859)	37,609)	37,077)
Cash, cash equivalents and restricted cash at end of year	15,880)	19,755)	19,091)	16,859)	37,608)

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).

Net Earnings (Loss): Net earnings exhibit significant volatility, with a substantial loss in 2021 (-$6,591 million) following a profitable 2020 ($5,546 million). Recovery is apparent in 2022 and continuing sharply in 2023 ($9,443 million), before decreasing in 2024 ($6,566 million). This reflects a strong rebound after a challenging period.
Earnings from Discontinued Operations: These earnings fluctuate sharply, peaking in 2021 ($3,195 million) and showing losses in 2023 (-$414 million), indicating ongoing restructuring or divestiture activities impacting the company's profitability from discontinued segments.
Depreciation and Amortization: There is a clear downward trend in depreciation and amortization expenses from 2020, declining from $4,636 million to $834 million by 2024, suggesting asset base reduction or changes in amortization policies.
Goodwill Impairments and Gains/Losses on Business Interests: Goodwill impairments occurred in 2020 and 2024 at $1,717 million and $251 million respectively, with no impairments recorded in other years. Gains and losses on business interests show a strong gain in 2020 (-$12,526 million as a negative loss implying a gain), but relatively minimal fluctuations thereafter, indicating major restructuring in 2020 followed by stabilization.
Debt and Pension Costs: Debt extinguishment costs were notably high in 2021 ($6,524 million), highlighting significant debt restructuring. Principal pension plan costs decreased sharply from 2020 ($3,559 million) turning beneficial by 2023 and 2024. Employer contributions gradually reduced, and other postretirement benefits consistently declined in magnitude, suggesting improved pension liabilities management.
Income Taxes and Cash Tax Payments: The provision for income taxes increased over the years, peaking in 2023 ($1,162 million) and slightly decreasing in 2024 ($962 million). Cash paid for income taxes relatively stabilized around $1,100 million annually until a notable drop to $334 million in 2024, indicative of changing tax liabilities or optimization.
Working Capital Movements: Receivables and inventories generally show negative changes in later years, indicating working capital use or collection challenges. Contract assets increased notably in the early years then turned negative in 2024. Contract liabilities and progress collections display increased activity in 2023 and 2024, which may reflect shifts in billing or revenue recognition. Accounts payable fluctuated without a consistent trend, and overall operating working capital changes were positive in the mid-period but negative in 2024, signaling potential liquidity or operational shifts.
Cash Flow from Operating Activities: Cash from operations declined sharply in 2021 ($888 million) from 2020, then surged in 2022 and remained robust in 2023 and 2024 around $5,500-$5,800 million, illustrating operational recovery and improved cash generation capacity.
Investing Activities: Capital expenditures showed an initial drop followed by stabilization with a decrease in 2024 (-$1,032 million). Dispositions of assets remain modest throughout. Proceeds from business dispositions were substantial in the early years, dropping to small amounts by 2024. Net investing cash inflows plummeted from exceptionally large positive figures in 2020-2021 to a negative cash outflow in 2024 (-$556 million), reflecting reduced disposals and increased investments or possible reduced divestiture activity.
Financing Activities: Borrowings and repayments feature heavy debt retirement across all years, with repayments significantly outweighing new debt issuance particularly from 2020 to 2024. Dividends paid exhibit steady payments with an increase in 2024 (-$1,008 million). Treasury stock purchases escalated significantly in 2024 (-$5,827 million), indicating aggressive share repurchases. Cash used in financing activities remained negative across all years, with the largest outflows in 2021 and 2023, consistent with debt reductions and shareholder distributions.
Cash Balances: Cash and equivalents declined sharply in 2021 from $37,608 million to $16,859 million, partially rebounding in subsequent years before falling again in 2024 to $15,880 million. The changes are influenced by large fluctuations in operating, investing, and financing cash flows as described above.
General Observations: The company experienced substantial financial volatility over the five-year span with a major loss in 2021 followed by strong recovery. Structural adjustments including asset sales, debt repayment, and pension cost management are evident. Cash flow patterns reflect significant operational turnaround and strategic financing decisions focused on deleveraging and shareholder returns. Working capital and tax trends suggest ongoing efforts to optimize liquidity and tax efficiency.

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GE Aerospace (NYSE:GE)

Cash Flow Statement