Pre-tax gain (loss) in AOCI related to cash flow hedges of forecasted transactions

  
Changes in the fair value of cash flow hedges are recorded in AOCI and recorded in earnings in the period in which the hedged transaction occurs. The total amount in AOCI related to cash flow hedges of forecasted transactions was a $14 million loss at December 31, 2021. We expect to reclassify $17 million of gain to earnings in the next 12 months contemporaneously with the earnings effects of the related forecasted transactions. The total reclassified from AOCI into earnings was $(79) million, $(7) million, and $(60) million for the years ended December 31, 2021, 2020 and 2019, respectively. At December 31, 2021, the maximum term of derivative instruments that hedge forecasted transactions was approximately 13 years.  
The table below presents the gains (losses) of our derivative financial instruments in the Statement of Earnings (Loss):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 2021 |  | 2020 |
|  |  |  |  |
|  | Revenues | Debt Extinguishment Costs | Interest Expense | SG&A | Other(a) |  | Revenues | Debt Extinguishment Costs | Interest Expense | SG&A | Other(a) |
|  | $ | 74,196  |  | $ | 6,524  |  | $ | 1,876  |  | $ | 11,707  |  | $ | 56,719  |  |  | $ | 75,833  |  | $ | 301  |  | $ | 2,068  |  | $ | 12,592  |  | $ | 69,267  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |
| Effect of cash flow hedges | $ | 27  |  | $ | —  |  | $ | (40) |  | $ | 1  |  | $ | (67) |  |  | $ | 15  |  | $ | —  |  | $ | (40) |  | $ | 1  |  | $ | 17  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |
| Hedged items |  | $ | 70  |  | $ | 1,413  |  |  |  |  |  | $ | —  |  | $ | (1,775) |  |  |  |
| Derivatives designated as hedging instruments |  | (66) |  | (1,549) |  |  |  |  |  | —  |  | 1,743  |  |  |  |
| Effect of fair value hedges |  | $ | 3  |  | $ | (135) |  |  |  |  |  | $ | —  |  | $ | (31) |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |
| Interest rate contracts(a) | $ | 1  |  | $ | 52  |  | $ | (3) |  | $ | —  |  | $ | (1) |  |  | $ | (1) |  | $ | —  |  | $ | (11) |  | $ | —  |  | $ | (18) |  |
| Currency exchange contracts | (6) |  | (16) |  | (18) |  | (127) |  | 44  |  |  | —  |  | —  |  | —  |  | 129  |  | (293) |  |
| Other | —  |  | —  |  | —  |  | 183  |  | 193  |  |  | —  |  | —  |  | —  |  | 86  |  | (46) |  |
| Effect of derivatives not designated as hedges | $ | (5) |  | $ | 35  |  | $ | (22) |  | $ | 56  |  | $ | 235  |  |  | $ | (1) |  | $ | —  |  | $ | (11) |  | $ | 215  |  | $ | (357) |  |

(a) Amounts are inclusive of cost of sales and other income.  
COUNTERPARTY CREDIT RISK. Our exposures to counterparties (including accrued interest), net of collateral we held, was $564 million and $392 million at December 31, 2021 and December 31, 2020, respectively. Counterparties' exposures to our derivative liability (including accrued interest), net of collateral posted by us, was $159 million and $307 million at December 31, 2021 and December 31, 2020, respectively.  
NOTE 21. VARIABLE INTEREST ENTITIES. In addition to the two VIEs detailed in Note 4, in our Statement of Financial Position, we have assets of $491 million and $1,733 million and liabilities of $206 million and $657 million, at December 31, 2021 and 2020, respectively, from other consolidated VIEs. The decline in assets and liabilities is primarily driven by the deconsolidation of our aeroderivative JV and the reduction of the deferred purchase price related to the discontinuation of our remaining unconsolidated receivables facility. These entities were created to help our customers facilitate or finance the purchase of GE equipment and services and have no features that could expose us to losses that would significantly exceed the difference between the consolidated assets and liabilities.   
Our investments in unconsolidated VIEs were $5,034 million and $3,230 million at December 31, 2021 and 2020, respectively. Of these investments, $1,481 million and $1,141 million were owned by EFS, comprising equity method investments, primarily renewable energy tax equity investments, at December 31, 2021 and 2020, respectively. In addition, $3,333 million and $1,833 million were owned by our run-off insurance operations, primarily comprising investment securities at December 31, 2021 and 2020, respectively. The increase in investments in unconsolidated VIEs in our run-off insurance operations reflects implementation of our revised reinvestment plan, which incorporates the introduction of strategic initiatives to invest in higher-yielding asset classes. Our maximum exposure to loss in respect of unconsolidated VIEs is increased by our commitments to make additional investments in these entities described in Note 22.   
NOTE 22. COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES AND OTHER LOSS CONTINGENCIESCOMMITMENTS. We had total investment commitments of $3,130 million at December 31, 2021. The commitments primarily comprise investments by our run-off insurance operations in investment securities and other assets of $3,069 million and included within these commitments are obligations to make investments in unconsolidated VIEs of $2,996 million. See Note 21 for further information.  
As of December 31, 2021, in our Aviation segment, we have committed to provide financing assistance of $2,058 million of future customer acquisitions of aircraft equipped with our engines.  
GUARANTEES. At December 31, 2021, we were committed under the following guarantee arrangements:  
Credit support. At December 31, 2021, we have provided $1,252 million of credit support on behalf of certain customers or associated companies, predominantly joint ventures and partnerships, using arrangements such as standby letters of credit and performance guarantees. The liability for such credit support was $42 million.  
Indemnification agreements - Continuing Operations. At December 31, 2021, we have $965 million of indemnification commitments, including representations and warranties in sales of business assets, for which we recorded a liability of $95 million.2021 FORM 10-K 79
