Company: GE
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0000040545-25-000062
Chunk: 100

Company: GENERAL ELECTRIC CO
Filing Date: 2025-04-22
Form: 10-Q
Item: Item 8
Chunk 100
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 and credit adjustments$(32)$(32)$(55)$(54)Net derivatives recognized in statement of financial position$191 $25 $188 $77 (a) Gains (losses) on interest settlements related to cross-currency swaps included in our Statement of Operations are $2 million and zero for the three months ended March 31, 2025 and 2024, respectively.(b) Gains (losses) included in our Statement of Operations are $35 million and $22 million for the three months ended March 31, 2025 and 2024, respectively, primarily in SG&A, driven by hedges of foreign exchange fluctuation. Substantially all of these amounts are offset by the remeasurement of the underlying exposure through income. CASH FLOW HEDGES AND NET INVESTMENT HEDGESAmount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on DerivativesAmount of Gain (Loss) Reclassified from AOCI into Net incomeThree months ended March 31Three months ended March 312025202420252024Cash flow hedges(a)$47 $(7)$(3)$7 Net investment hedges(b)(213)82 — — (a) Primarily currency exchange contracts, and recognized in Costs of equipment or services sold in our Statement of Operations. We expect to reclassify a $13 million gain from AOCI to net income in the next 12 months contemporaneously with the income effects of the related forecasted transactions. (b) The carrying value of foreign currency debt designated as net investment hedges was $5,389 million and $5,199 million at March 31, 2025 and December 31, 2024, respectively. 

28 2025 1Q FORM 10-Q

FAIR VALUE HEDGES. We used fair value hedges to hedge the effects of interest rate and currency changes on debt we issued. All fair value hedges were terminated in 2022 due to exposure management actions. The cumulative net gains related to hedging adjustments of $1,026 million and $1,037 million on discontinued hedges were included primarily in long-term borrowings of $8,526 million and $8,387 million as of March 31, 2025 and December 31, 2024, respectively, and will continue to amortize into interest expense until the borrowings mature. COUNTERPARTY CREDIT RISK. Our exposures