Company: GE
Filing Date: 2025-07-21
Form Type: 10-Q
Source: 0000040545-25-000111
Chunk: 117

Company: GENERAL ELECTRIC CO
Filing Date: 2025-07-21
Form: 10-Q
Item: Item 8
Chunk 117
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e.g., investing activities for derivatives used to hedge net investments in our foreign operations).We also use derivatives for economic hedges when we have exposures to currency exchange risk for which we are unable to meet the requirements for hedge accounting or when changes in the carrying amount of the hedged item are already recorded in income in the same period as the derivative making hedge accounting unnecessary. Even though the derivative is an effective economic hedge, there may be a net effect on income in each period due to differences in the timing of income recognition between the derivative and the hedged item.FAIR VALUE OF DERIVATIVESJune 30, 2025December 31, 2024Gross NotionalAll other current assetsAll other current liabilitiesGross NotionalAll other current assetsAll other current liabilitiesQualifying currency exchange contracts$1,501 $64 $11 $1,873 $36 $40 Qualifying cross currency interest rate swaps(a)1,941 — 81 416 8 — Non-qualifying currency exchange contracts and other(b)6,903 242 29 6,759 199 91 Gross derivatives$10,345 $306 $121 $9,047 $243 $131 Netting and credit adjustments$(68)$(68)$(55)$(54)Net derivatives recognized in statement of financial position$238 $53 $188 $77 (a) Gains (losses) on interest settlements related to cross-currency swaps included in our Statement of Operations were $6 million and $8 million for the three months and six months ended June 30, 2025, respectively. There was no activity during the first two quarters of 2024.(b) Gains (losses) included in our Statement of Operations were $181 million and $40 million for the three months ended June 30, 2025 and 2024, and $216 million and $62 million for six months ended June 30, 2025 and 2024, respectively, primarily in SG&A, driven by hedges of foreign currency exchange and deferred employee compensation. 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