Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
GE Aerospace, consolidated statement of comprehensive income
US$ in millions
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).
The financial data indicates significant fluctuations in net earnings over the five-year period. Net earnings decreased sharply from a profit of 5,546 million US dollars in 2020 to a loss of 6,591 million in 2021, then rebounded to a modest profit of 292 million in 2022. This trend dramatically reversed in 2023, with net earnings surging to 9,443 million, followed by a decline to 6,566 million in 2024, though remaining positive and well above earlier years.
Currency translation adjustments show volatility, with a positive adjustment of 435 million in 2020 turning negative in 2021 (-174 million) and further declining in 2022 (-1,355 million). However, there is a recovery in 2023 and 2024, with notable positive adjustments of 2,274 million and 2,131 million, respectively. This suggests significant foreign exchange impacts influencing comprehensive results, particularly benefiting the later years.
Benefit plans demonstrate a peak in 2021 at 9,044 million, substantially higher than the 1,633 million recorded in 2020. This value dropped drastically in 2023 to a negative 4,747 million and remained negative in 2024 at -1,128 million. Such swings imply large fluctuations in pension or other benefit-related gains and losses, potentially driven by actuarial assumptions or market conditions.
The line items for investment securities and cash flow hedges have shown instability, starting with a small negative balance (-78 million) in 2020, rising to a positive 2,466 million in 2021, then swinging dramatically to a negative 4,426 million in 2022. A partial recovery occurs in 2023 (968 million), followed by another decrease in 2024 (-1,016 million). This reflects volatile investment performance or hedging impacts affecting other comprehensive income.
The long-duration insurance contracts item appears only in the last two years, reporting a negative balance in 2023 (-2,371 million) and a positive figure in 2024 (2,285 million). This substantial swing could be attributed to insurance-related income or losses recognized under new or revised accounting measures or changes in contract valuation.
Other comprehensive income (loss) exhibits high variability, with a significant gain in 2021 (11,336 million) after a moderate gain in 2020 (1,990 million), moving into losses in 2022 (-2,892 million) and 2023 (-3,876 million), before returning to a positive amount in 2024 (2,272 million). These fluctuations are indicative of volatility in components outside net earnings, including gains and losses on investments and currency translation effects.
Comprehensive income (loss) mirrors similar trends to net earnings and other comprehensive income, with a rise in 2020 (7,536 million), a decline in 2021 (4,745 million), turning negative in 2022 (-2,600 million), followed by recovery in 2023 (5,567 million) and stronger performance in 2024 (8,838 million). This reflects overall financial performance including both net earnings and other comprehensive elements.
Attributable comprehensive income (loss) to noncontrolling interests remains relatively small and fluctuates between positive and negative values, ranging from 152 million in 2020 to 7 million in 2024, suggesting limited impact from minority stakeholders on the overall results.
Finally, comprehensive income (loss) attributable to the company follows the comprehensive income trend closely, with positive figures in 2020 (7,688 million) and 2021 (4,810 million), a negative result in 2022 (-2,668 million), then a notable recovery in 2023 (5,602 million) and a strong improvement in 2024 (8,845 million), indicating that company shareholders primarily benefit or absorb fluctuations in overall comprehensive income.