Company: GE
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0000040545-25-000111
Chunk: 118

Company: GENERAL ELECTRIC CO
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 8
Chunk 118
---
 IncomeThree months ended June 30Six months ended June 30Three months ended June 30Six months ended June 3020252024202520242025202420252024Cash flow hedges(a)$63 $(14)$110 $(21)$7 $5 $4 $12 Net investment hedges(b)(479)68 (692)150 — — — — (a) Primarily currency exchange contracts, and recognized in Costs of equipment or services sold in our Statement of Operations. We expect to reclassify a $64 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 $4,892 million and $5,199 million at June 30, 2025 and December 31, 2024, respectively. 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 $1,028 million and $1,037 million on discontinued hedges were included primarily in long-term borrowings of $8,715 million and $8,387 million as of June 30, 2025 and December 31, 2024, respectively, and will continue to amortize into interest expense until the borrowings mature. COUNTERPARTY CREDIT RISK. Our exposures to counterparties (including accrued interest) were $238 million and $188 million at June 30, 2025 and December 31, 2024, respectively. Counterparties' exposures to our derivative liability (including accrued interest), were $53 million and $77 million at June 30, 2025 and December 31, 2024, respectively.

2025 2Q FORM 10-Q 31

NOTE 21. VARIABLE INTEREST ENTITIES. In our Statement of Financial Position, we have assets of $160 million and $141 million and liabilities of $137 million and $131 million at June 30, 2025 and December 31, 2024, respectively, in consolidated Variable Interest Entities (VIEs). These VIEs are primarily associated with a legacy business in Corporate & Other and have no features that could expose us to losses that would significantly