Company: GE
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0000040545-25-000062
Chunk: 88

Company: GENERAL ELECTRIC CO
Filing Date: 2025-04-22
Form: 10-Q
Item: Item 8
Chunk 88
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 long-term service agreements liabilities of $272 million. In aggregate, the net liability for long-term service agreements increased primarily due to billings of $1,902 million and net unfavorable changes in estimated profitability of $279 million, including quarterly updates to contract margins and an estimated impact from tariffs, primarily in Commercial Engines & Services, partially offset by revenue recognized of $1,867 million. Revenue recognized for contracts included in a liability position at the beginning of the year were $2,040 million and $1,881 million for the three months ended March 31, 2025 and 2024, respectively.CONTRACT ASSETS, LIABILITIES AND OTHER DEFERRED ASSETS AND INCOMEMarch 31, 2025December 31, 2024Long-term service agreements$2,309 $2,374 Equipment and other service agreements630 609 Current contract assets$2,940 $2,982 Nonrecurring engineering costs(a)$2,443 $2,438 Customer advances and other(b)2,392 2,393 Contract and other deferred assets4,835 4,831 Total contract and other deferred assets$7,775 $7,814 Long-term service agreement liabilities$9,266 $8,994 Current deferred income357 359 Contract liabilities and current deferred income$9,624 $9,353 Non-current deferred income1,054 1,013 Total contract liabilities and deferred income$10,677 $10,366 Contract assets (liabilities) and other deferred assets (income)$(2,902)$(2,552)(a) Includes contract fulfillment costs for engineering and development incurred prior to production for equipment production contracts, primarily within our Defense & Propulsion Technologies segment, which are amortized ratably over each unit produced. We assess the recoverability of these costs and if we determine the costs are no longer probable of recovery, the asset is impaired.(b) Includes amounts due from customers within our Commercial Engines & Services segment for the sales of engines, spare parts and services, which we collect through fixed or usage-based billings from the sale of spare parts and servicing of equipment under long-term service agreements.

22 2025 1Q FORM 10-Q

Progress collections increased $147 million in the three months ended March 31, 2025 primarily due to collections received in excess of settlements at Defense & Propulsion Technologies.

NOTE 9.