Company: GE
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0000040545-25-000111
Chunk: 79

Company: GENERAL ELECTRIC CO
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 4
Chunk 79
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 we issued. All fair value hedges were terminated in 2022 due to exposure management actions. The cumulative net gains related to hedging adjustments of $1,028 million and $1,037 million on discontinued hedges were included primarily in long-term borrowings of $8,715 million and $8,387 million as of June 30, 2025 and December 31, 2024, respectively, and will continue to amortize into interest expense until the borrowings mature. COUNTERPARTY CREDIT RISK. Our exposures to counterparties (including accrued interest) were $238 million and $188 million at June 30, 2025 and December 31, 2024, respectively. Counterparties' exposures to our derivative liability (including accrued interest), were $53 million and $77 million at June 30, 2025 and December 31, 2024, respectively.

2025 2Q FORM 10-Q 31

NOTE 21. VARIABLE INTEREST ENTITIES. In our Statement of Financial Position, we have assets of $160 million and $141 million and liabilities of $137 million and $131 million at June 30, 2025 and December 31, 2024, respectively, in consolidated Variable Interest Entities (VIEs). These VIEs are primarily associated with a legacy business in Corporate & Other and have no features that could expose us to losses that would significantly exceed the difference between the consolidated assets and liabilities. 

Our investments in unconsolidated VIEs were $8,718 million and $8,131 million at June 30, 2025 and December 31, 2024, respectively. Of these investments, $1,191 million and $1,280 million were in our U.S. tax equity portfolio, comprising equity method investments  related to onshore renewable energy projects, at June 30, 2025 and December 31, 2024, respectively. In addition, $7,335 million and $6,665 million were in our run-off insurance operations, primarily comprised of equity method investments at June 30, 2025 and December 31, 2024, respectively. The increase in investments in unconsolidated VIEs in our run-off insurance operations reflects strategic initiatives to invest in higher-yielding asset classes. Our maximum exposure to loss with respect to unconsolidated VIEs is increased by our commitments to make additional investments in these entities described in Note