Company: GE
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0000040545-25-000111
Chunk: 41

Company: GENERAL ELECTRIC CO
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 7
Chunk 41
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 effective income tax rate (Non-GAAP)18.7%20.3%18.2%20.5%(a) See the Corporate & Other and Other Consolidated Information sections for further information.(b) Includes tax benefits available to offset the tax on gains (losses) on equity securities.(c) Includes related tax valuation allowances. Tax effect on Insurance net income includes valuation allowances for 2025.Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.We believe that Adjusted net income* and the Adjusted effective income tax rate* provide management and investors with useful measures to evaluate the performance of the total company and increased period-to-period comparability, as well as a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding items that are not closely related with ongoing operations. We also use Adjusted EPS* as a performance metric at the company level for our performance stock units granted in 2025.

*Non-GAAP Financial Measure

2025 2Q FORM 10-Q 13

FREE CASH FLOW (FCF) (NON-GAAP)Six months ended June 3020252024Cash flows from operating activities (CFOA) (GAAP)$3,891 $2,586 Add: gross additions to property, plant and equipment and internal-use software(535)(499)Less: separation cash expenditures(146)(572)Less: Corporate & Other restructuring cash expenditures(45)(108)Free cash flow (FCF) (Non-GAAP)$3,547 $2,767 We believe investors may find it useful to compare free cash flow* performance without the effects of separation cash expenditures and Corporate & Other restructuring cash expenditures (associated with the separation-related program announced in the fourth quarter of 2022). We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flow. We also use FCF* as a performance metric at the company level for our annual executive incentive plan and performance stock units granted in 2025.

CONTROLS AND PROCEDURES. Under the direction of our Chief Executive Officer and Chief Financial Officer, we evaluated our disclosure controls and procedures and internal control over financial reporting and concluded that (i) our disclosure controls and procedures were effective as of June 30, 2025, and (ii) no change in internal control over financial reporting occurred during the quarter ended June 30, 2025, that has