Company: GE
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0000040545-25-000111
Chunk: 77

Company: GENERAL ELECTRIC CO
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 4
Chunk 77
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(a) Primarily related to our run-off insurance operations. See Note 12 for further information.Assets and liabilities that are reflected in the accompanying financial statements at fair value are not included in the above disclosures; such items include cash and cash equivalents, investment securities (Note 3) and derivative financial instruments below.

30 2025 2Q FORM 10-Q 

DERIVATIVES AND HEDGING. Per our policy, derivatives are used solely for managing risks and not for speculative purposes. We use derivatives to manage risks related to foreign currency exchange (including foreign equity investments), interest rates and commodity prices.We use our foreign currency debt and cross-currency interest rate swaps in net investment hedges to hedge currency exposures related to our net investments in foreign operations. We use currency exchange contracts for cash flow hedges primarily to reduce or eliminate the effects of foreign exchange rate changes. Gains and losses on derivatives used in qualified hedges are initially recognized in our Statement of Other Comprehensive Income (Loss) except for interest on cross-currency interest rate swaps. For cross-currency interest rate swaps in a qualified hedging relationships, we recognize the periodic interest settlements within Interest and other financial charges in the Statement of Operations, and the cash flows associated with these periodic interest settlements are classified as operating activities in the Statement of Cash Flows. Settlements from termination of all qualified hedges are classified in the Statement of Cash Flows reflecting the nature of the hedged items (e.g., investing activities for derivatives used to hedge net investments in our foreign operations).We also use derivatives for economic hedges when we have exposures to currency exchange risk for which we are unable to meet the requirements for hedge accounting or when changes in the carrying amount of the hedged item are already recorded in income in the same period as the derivative making hedge accounting unnecessary. Even though the derivative is an effective economic hedge, there may be a net effect on income in each period due to differences in the timing of income recognition between the derivative and the hedged item.FAIR VALUE OF DERIVATIVESJune 30, 2025December 31, 2024Gross NotionalAll other current assetsAll other current liabilitiesGross NotionalAll other current assetsAll other current liabilitiesQualifying currency exchange contracts$1,501 $64 $11 $1,873 $36 $40 Qualifying cross currency interest rate swaps(a)1,941 — 81 416 8 — Non-qualifying currency exchange contracts and other(b