Company: GE
Filing Date: 2025-02-03
Form Type: 10-K
Source: 0000040545-25-000015
Chunk: 126

Company: GENERAL ELECTRIC CO
Filing Date: 2025-02-03
Form: 10-K
Item: Item 3
Chunk 126
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 to amortization of $136 million with a weighted-average amortizable period of 6.38 years, including capitalized software of $118 million, with a weighted-average amortizable period of 5 years.

NOTE 8. CONTRACT AND OTHER DEFERRED ASSETS, CONTRACT LIABILITIES AND DEFERRED INCOME & PROGRESS COLLECTIONS

Contract assets (liabilities) and other deferred assets (income), on a net basis, increased the net liability position by $915 million for the year ended December 31, 2024, primarily due to an increase in long-term service agreements liabilities of $1,092 million, partially offset by an increase in equipment and other service agreements of $111 million. In aggregate, the net liability for long-term service agreements increased primarily due to billings of $8,594 million and net unfavorable changes in estimated profitability of $56 million, primarily in Commercial Engines & Services, partially offset by revenue recognized of $7,668 million. Revenue recognized for contracts included in a liability position at the beginning of the year were $6,336 million and $5,717 million for the years ended December 31, 2024 and 2023, respectively.CONTRACT ASSETS, LIABILITIES AND OTHER DEFERRED ASSETS AND INCOMEDecember 31, 2024December 31, 2023Long-term service agreements$2,374 $2,377 Equipment and other service agreements609 498 Current contract assets$2,982 $2,875 Nonrecurring engineering costs(a)$2,438 $2,444 Customer advances and other(b)2,393 2,342 Contract and other deferred assets4,831 4,785 Total contract and other deferred assets$7,814 $7,660 Long-term service agreement liabilities$8,994 $7,902 Current deferred income359 420 Contract liabilities and current deferred income$9,353 $8,322 Non-current deferred income1,013 975 Total contract liabilities and deferred income$10,366 $9,297 Contract assets (liabilities) and other deferred assets (income)$(2,552)$(1,637)(a) Includes contract fulfillment costs for engineering and development incurred prior to production for equipment production contracts, primarily within our DPT segment, which are amortized ratably over each unit produced. We assess the recoverability of these costs and if we determine