ASSETS AND LIABILITIES OF BUSINESSES HELD FOR SALE. On March 31, 2020, we completed the sale of our BioPharma business within our Healthcare segment for total consideration of $21,112 million (after certain working capital adjustments). The consideration consisted of $20,695 million in cash and $417 million of pension liabilities that were assumed by Danaher. In addition, we incurred $185 million of cash payments directly associated with the transaction. As a result, we recognized a pre-tax gain of $12,362 million ($11,213 million after-tax) in our consolidated Statement of Earnings (Loss).

In the first half of 2020, we sold all our remaining businesses classified as held for sale, including the remaining Lighting business within Corporate and the remaining PK AirFinance business within our Capital segment.

DISCONTINUED OPERATIONS. Discontinued operations primarily include certain businesses in our GE Capital segment (our mortgage portfolio in Poland and trailing liabilities associated with the sale of our GE Capital businesses) and our Baker Hughes and Transportation segments. Results of operations, financial position and cash flows for these businesses are reported as discontinued operations for all periods presented.

In September 2019, we reduced our ownership interest in Baker Hughes from 50.2% to 36.8%. As a result, we deconsolidated our Baker Hughes segment and reclassified its results to discontinued operations for all periods presented and recognized a loss of $8,715 million ($8,238 million after-tax).

We have continuing involvement with Baker Hughes (BKR) primarily through our remaining interest, ongoing purchases and sales of products and services, transition services that we provide to BKR, as well as an aeroderivative joint venture (JV) we formed with BKR in the fourth quarter of 2019.

The JV is jointly controlled by GE and BKR and is consolidated by GE due to the significance of our investment in BKR. Our Aviation segment sells products and services to the JV. In turn, the JV sells products and services primarily to BKR and our Power segment.

Transactions between the JV and GE businesses are eliminated in consolidation. During 2020, we had sales of $563 million to BKR for products and services from the JV, and we collected cash of $603 million from Baker Hughes. If our investment in BKR is reduced to below 20%, we would no longer have significant influence in BKR and, as a result, we would not consolidate the JV. A potential deconsolidation of the JV is not expected to have a material impact on GE Industrial free cash flows.

For the year ended December 31, 2020, we had sales of $839 million and purchases of $216 million with BKR for products and services outside of the JV. We collected net cash of $855 million from BKR related to sales, purchases and transition services. In addition, we received $204 million of repayments on the promissory note receivable from BKR and dividends of $267 million on our investment.

In February 2019, we completed the spin-off and subsequent merger of our Transportation business with Wabtec. As a result, we recorded a gain of $3,471 million ($2,508 million after-tax) in discontinued operations.


RESULTS OF DISCONTINUED OPERATIONS For the year ended December 31, 2020	Baker Hughes		Transportation and Other		GE Capital			Total
Sales of goods and services	$	—	$	—		$	—		$	—
GE Capital revenues and other income (loss)	—		—			55			55
Cost of goods and services sold	—		—			—			—
Other income, costs and expenses	2		—			(252)			(249)
			—
Earnings (loss) of discontinued operations before income taxes	2		—			(197)			(195)
Benefit (provision) for income taxes	(13)		9			105			101
Earnings (loss) of discontinued operations, net of taxes(a)	(10)		9			(92)			(93)

Gain (loss) on disposal before income taxes	(23)		(12)			3			(31)
Benefit (provision) for income taxes	—		—			(1)			(1)
Gain (loss) on disposal, net of taxes	(23)		(12)			2			(32)

Earnings (loss) from discontinued operations, net of taxes	$	(33)	$	(3)		$	(90)		$	(125)


For the year ended December 31, 2019
Sales of goods and services	$	16,047	$	550	$	—	$	16,598
GE Capital revenues and other income (loss)	—		—		33		33
Cost of goods and services sold	(13,317)		(478)		—		(13,795)
Other income, costs and expenses	(2,390)		(19)		(240)		(2,650)

Earnings (loss) of discontinued operations before income taxes	340		53		(207)		186
Benefit (provision) for income taxes	(176)		(15)		344		153
Earnings (loss) of discontinued operations, net of taxes(a)	165		39		136		339

Gain (loss) on disposal before income taxes	(8,715)		3,471		61		(5,183)
Benefit (provision) for income taxes	477		(963)		(5)		(491)
Gain (loss) on disposal, net of taxes	(8,238)		2,508		56		(5,675)

Earnings (loss) from discontinued operations, net of taxes	$	(8,074)	$	2,547	$	192	$	(5,335)


For the year ended December 31, 2018
Sales of goods and services	$	22,859	$	3,898	$	—	$	26,757
GE Capital revenues and other income (loss)	—		—		(1,347)		(1,347)
Cost of goods and services sold	(19,198)		(2,809)		—		(22,007)
Other income, costs and expenses	(3,346)		(607)		(407)		(4,360)

Earnings (loss) of discontinued operations before income taxes	315		482		(1,755)		(958)
Benefit (provision) for income taxes	(347)		(143)		82		(408)
Earnings (loss) of discontinued operations, net of taxes(a)	(33)		339		(1,673)		(1,366)

Gain (loss) on disposal before income taxes	—		—		4		4
Benefit (provision) for income taxes	—		—		(1)		(1)
Gain (loss) on disposal, net of taxes	—		—		3		3

Earnings (loss) from discontinued operations, net of taxes	$	(33)	$	339	$	(1,670)	$	(1,363)

(a) Earnings (loss) of discontinued operations attributable to the Company after income taxes was $(94) million, $279 million and $(1,367) million for the years ended December 31, 2020, 2019 and 2018, respectively.


December 31	2020		2019
Cash, cash equivalents and restricted cash	$	524	$	638
Investment securities	—		202
Current receivables	61		81

Financing receivables held for sale (Polish mortgage portfolio)	2,437		2,485
Property, plant and equipment - net	109		123

Deferred income taxes	199		264
All other assets	202		317
Assets of discontinued operations(a)	$	3,532	$	4,109

Accounts payable & Progress collections and deferred income	$	20	$	40
All other liabilities	180		163
Liabilities of discontinued operations(a)(b)	$	200	$	203