UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30, 2023~~March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission file number 001-41528

GE HEALTHCARE TECHNOLOGIES INC.

(Exact name of registrant as specified in its charter)


Delaware						88-2515116
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

500 W. Monroe Street, Chicago, IL						60661
(Address of principal executive offices)						(Zip Code)

(Registrant’s telephone number, including area code) (833) 735-1139

Securities Registered Pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01 per share	GEHC	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐☑	Accelerated filer	☐
Non-accelerated filer	☑☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

There were ~~455,242,974~~456,465,369 shares of common stock with a par value of $0.01 per share outstanding as of ~~October 24, 2023.~~April 23, 2024.


Table of Contents
		Page

Forward-Looking Statements		3

Part I.	Financial Information
Item 1.	Condensed Consolidated ~~and Combined~~ Financial Statements (Unaudited)
	Condensed Consolidated ~~and Combined~~ Statements of Income	5
	Condensed Consolidated ~~and Combined~~ Statements of Comprehensive Income (Loss)	6
	Condensed Consolidated ~~and Combined~~ Statements of Financial Position	7
	Condensed Consolidated ~~and Combined~~ Statements of Changes in Equity	8
	Condensed Consolidated ~~and Combined~~ Statements of Cash Flows	9
	Notes to the Condensed Consolidated Financial Statements (Unaudited)	10
	~~Notes to the Condensed Consolidated and Combined Financial Statements (Unaudited)~~Item 2.
~~Item 2.~~	Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)	3126
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	4438
Item 4.	Controls and Procedures	4438

Part II.	Other Information
Item 1.	Legal Proceedings	4438
Item 1A.	Risk Factors	4438
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	4438
Item 3.	Defaults Upon Senior Securities	4438
Item 4.	Mine Safety Disclosures	4438
Item 5.	Other Information	4439
Item 6.	Exhibits	4539

Signatures		4640

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “potential,” “position,” “forecast,” “target,” “guidance,” “outlook,” and similar expressions. These forward-looking statements may include, but are not limited to, statements about our business; ~~information related to our business segment portfolios and strategies;~~ financial performance, financial condition, and results of operations, including revenue, revenue growth, profit, taxes, earnings per share, and cash flows; the impacts of macroeconomic and market conditions and volatility on our business operations, financial results, and financial position and on supply chains and the world economy; our ~~strategy, innovation, and investments; our~~ cost structure; our funding and liquidity; the impacts on our business of manufacturing, sourcing, and supply chain ~~management,~~management; the Russia and Ukraine conflict; our operations as a stand-alone company; and risks related to foreign currency exchange, interest rates, and commodity price volatility. These forward-looking statements involve risks and uncertainties, many of which are beyond our control. Factors that could cause our actual results to differ materially from those described in our forward-looking statements include, but are not limited to, operating in highly competitive markets; our ability to successfully complete strategic transactions; the actions or inactions of third parties with whom we partner and the various collaboration, licensing, and other partnerships and alliances we have with third parties; demand for our products, services, or solutions and factors that affect that demand; management of our supply chain and our ability to cost-effectively secure the materials we need to operate our business; disruptions in our operations; changes in third-party and government reimbursement processes, rates, contractual relationships, and mix of public and private payers, including related to government shutdowns; our ability to attract and/or retain key personnel and qualified employees; global geopolitical and economic instability, including as a result of the conflict between Ukraine and Russia, ~~and~~ the conflict in Israel and surrounding ~~areas;~~areas, and the ~~global Coronavirus Disease 2019 (“COVID-19”) pandemic~~actions in the Red Sea region; public health crises, epidemics, and ~~its~~pandemics, and their effects on our business; maintenance and protection of our intellectual property ~~rights;~~rights, as well as maintenance of successful research and development efforts with respect to commercially successful products and technologies; the impact of potential information technology, cybersecurity, or data security breaches; compliance with the various legal, regulatory, tax, privacy, and other laws to which we are subject, such as the Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws globally, and related changes, claims, inquiries, investigations, or actions; our ability to control increases in healthcare costs and any subsequent effect on demand for our products, services, or solutions; the impacts related to our increasing focus on and investment in cloud, edge, artificial intelligence, and software offerings; the impact of potential product liability claims; environmental, social, and governance matters; our ability to ~~successfully complete strategic transactions; our ability to~~ operate effectively as an independent, publicly traded ~~company~~company; and ~~achieve the benefits we expect from~~ our ~~spin-off from General Electric Company; and the incurrence~~level of ~~substantial~~ indebtedness, ~~in connection~~as well as our general ability to comply with ~~the spin-off~~covenants under our debt instruments, and any related effect on our business. Please also see the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the ~~U.S.~~United States Securities and Exchange Commission (“SEC”) and any updates or amendments we make in future filings. There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make. We do not undertake any obligation to update or revise our forward-looking statements except as required by applicable law or regulation.

ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


Part I. Financial Information
Index
Item 1. Condensed Consolidated ~~and Combined~~ Financial Statements (Unaudited)			Page
Condensed Consolidated ~~and Combined~~ Statements of Income			5
Condensed Consolidated ~~and Combined~~ Statements of Comprehensive Income (Loss)			6
Condensed Consolidated ~~and Combined~~ Statements of Financial Position			7
Condensed Consolidated ~~and Combined~~ Statements of Changes in Equity			8
Condensed Consolidated ~~and Combined~~ Statements of Cash Flows			9

Notes to the Condensed Consolidated Financial Statements (Unaudited)			10
Note 1 . Organization and Basis of Presentation			10
~~Notes to the Condensed Consolidated and Combined Financial Statements (Unaudited)~~Note 2 . Revenue Recognition			11
Note ~~1 Organization and Basis of Presentation~~3 . Segment Information			11
Note ~~2 Revenue Recognition~~4			12.
~~Note 3 Segment Information~~ Receivables			13
Note 45 . Financing Receivables			13
Note 6 . Leases			13
Note 7 .Acquisitions, Goodwill , and Other Intangible Assets			14
Note ~~5 Financing Receivables~~8 . Borrowings			14
Note 9 . Postretirement Benefit Plans			15
Note ~~6 Leases~~10			15.
~~Note 7 Acquisitions, Goodwill, and Other Intangible Assets~~			15
~~Note 8 Borrowings~~ Income Taxes			16
Note ~~9 Postretirement Benefit Plans~~11 . Accumulated Other Comprehensive Income (Loss) – Net			16
Note 12 . Financial Instruments and Fair Value Measurements			17
Note ~~10 Income Taxes~~13			19.
~~Note 11 Accumulated Other Comprehensive Income (Loss)~~ – ~~Net~~			19
~~Note 12 Financial Instruments and Fair Value Measurements~~			21
~~Note 13~~ Commitments, Guarantees, Product Warranties, and Other Loss Contingencies			2320
Note 14 . Restructuring and Other Activities – Net			21
Note 1 5. Earnings Per Share			21
Note 1 6. Supplemental Financial Information			22
Note 1 7. Related Parties			25
Note ~~15 Share-Based Compensation~~1 8. Subsequent Events			25
~~Note 16 Earnings Per Share~~			27
~~Note 17 Supplemental Financial Information~~			27
~~Note 18 Related Parties~~			29


Condensed Consolidated and Combined Statements of Income (Unaudited)
		For the three months ended September 30				For the nine months ended September 30
Condensed Consolidated Statements of Income (Unaudited)
Condensed Consolidated Statements of Income (Unaudited)
Condensed Consolidated Statements of Income (Unaudited)
		For the three months ended March 31
		For the three months ended March 31
		For the three months ended March 31
(In millions, except per share amounts)
(In millions, except per share amounts)
(In millions, except per share amounts)	(In millions, except per share amounts)	2023		2022		2023		2022
Sales of products	Sales of products	$	3,186	$	3,012	$	9,530	$	8,702
Sales of products
Sales of products
Sales of services
Sales of services
Sales of services	Sales of services	1,636		1,564		4,816		4,701
Total revenues	Total revenues	4,822		4,576		14,346		13,403
Total revenues
Total revenues
Cost of products
Cost of products
Cost of products	Cost of products	2,076		1,995		6,197		5,825
Cost of services	Cost of services	811		808		2,383		2,331
Cost of services
Cost of services
Gross profit
Gross profit
Gross profit	Gross profit	1,935		1,773		5,766		5,247
Selling, general, and administrative	Selling, general, and administrative	996		908		3,130		2,747
Selling, general, and administrative
Selling, general, and administrative
Research and development
Research and development
Research and development	Research and development	322		260		890		755
Total operating expenses	Total operating expenses	1,318		1,168		4,020		3,502
Total operating expenses
Total operating expenses
Operating income
Operating income
Operating income	Operating income	617		605		1,746		1,745
Interest and other financial charges – net	Interest and other financial charges – net	138		2		411		18
Interest and other financial charges – net
Interest and other financial charges – net
Non-operating benefit (income) costs
Non-operating benefit (income) costs
Non-operating benefit (income) costs	Non-operating benefit (income) costs	(94)		(1)		(332)		(4)
Other (income) expense – net	Other (income) expense – net	(63)		(18)		(85)		(63)
Income from continuing operations before income taxes		636		622		1,752		1,794
Other (income) expense – net
Other (income) expense – net
Income before income taxes
Income before income taxes
Income before income taxes
Benefit (provision) for income taxes	Benefit (provision) for income taxes	(250)		(129)		(550)		(412)
Net income from continuing operations		386		493		1,202		1,382
Income (loss) from discontinued operations, net of taxes		(4)		—		(4)		12
Benefit (provision) for income taxes
Benefit (provision) for income taxes

Net income

Net income

Net income	Net income	382		493		1,198		1,394
Net (income) loss attributable to noncontrolling interests	Net (income) loss attributable to noncontrolling interests	(7)		(6)		(33)		(32)
Net (income) loss attributable to noncontrolling interests
Net (income) loss attributable to noncontrolling interests
Net income attributable to GE HealthCare
Net income attributable to GE HealthCare
Net income attributable to GE HealthCare	Net income attributable to GE HealthCare	375		487		1,165		1,362
Deemed preferred stock dividend of redeemable noncontrolling interest	Deemed preferred stock dividend of redeemable noncontrolling interest	—		—		(183)		—
Deemed preferred stock dividend of redeemable noncontrolling interest
Deemed preferred stock dividend of redeemable noncontrolling interest
Net income attributable to GE HealthCare common stockholders
Net income attributable to GE HealthCare common stockholders
Net income attributable to GE HealthCare common stockholders	Net income attributable to GE HealthCare common stockholders	$	375	$	487	$	982	$	1,362

Earnings per share from continuing operations attributable to GE HealthCare common stockholders:

Earnings per share attributable to GE HealthCare common stockholders:

Earnings per share attributable to GE HealthCare common stockholders:

Earnings per share attributable to GE HealthCare common stockholders:
Basic
Basic
Basic	Basic	$	0.83	$	1.07	$	2.17	$	2.97
Diluted	Diluted	0.83		1.07		2.16		2.97
Earnings per share attributable to GE HealthCare common stockholders:
Diluted
Diluted
Weighted-average number of shares outstanding:
Weighted-average number of shares outstanding:
Weighted-average number of shares outstanding:
Basic
Basic
Basic	Basic	$	0.82	$	1.07	$	2.16	$	3.00
Diluted	Diluted	0.82		1.07		2.15		3.00
Weighted-average number of shares outstanding:
Basic		455		454		455		454
Diluted	Diluted	458		454		458		454
Diluted

The accompanying notes are an integral part of these condensed consolidated ~~and combined~~ financial statements.


Condensed Consolidated and Combined Statements of Comprehensive Income (Loss) (Unaudited)
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

		For the three months ended March 31
		For the three months ended September 30				For the nine months ended September 30
		For the three months ended March 31

		For the three months ended March 31
(In millions, net of tax)
(In millions, net of tax)
(In millions, net of tax)	(In millions, net of tax)	2023		2022		2023		2022
Net income attributable to GE HealthCare	Net income attributable to GE HealthCare	$	375	$	487	$	1,165	$	1,362
Net income attributable to GE HealthCare
Net income attributable to GE HealthCare
Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to noncontrolling interests	Net income (loss) attributable to noncontrolling interests	7		6		33		32
Net income	Net income	382		493		1,198		1,394
Net income
Net income
Other comprehensive income (loss):
Other comprehensive income (loss):
Other comprehensive income (loss):	Other comprehensive income (loss):

Currency translation adjustments – net of taxes	Currency translation adjustments – net of taxes	(143)		(312)		(84)		(937)
Benefit plans – net of taxes		(264)		10		(346)		8

Currency translation adjustments – net of taxes

Currency translation adjustments – net of taxes
Pension and Other Postretirement Plans – net of taxes
Pension and Other Postretirement Plans – net of taxes
Pension and Other Postretirement Plans – net of taxes
Cash flow hedges – net of taxes
Cash flow hedges – net of taxes
Cash flow hedges – net of taxes	Cash flow hedges – net of taxes	22		9		(7)		24
Other comprehensive income (loss)	Other comprehensive income (loss)	(385)		(293)		(437)		(905)
Other comprehensive income (loss)
Other comprehensive income (loss)
Comprehensive income (loss)
Comprehensive income (loss)
Comprehensive income (loss)	Comprehensive income (loss)	(3)		200		761		489
Less: Comprehensive income (loss) attributable to noncontrolling interests	Less: Comprehensive income (loss) attributable to noncontrolling interests	(28)		6		(2)		32
Less: Comprehensive income (loss) attributable to noncontrolling interests
Less: Comprehensive income (loss) attributable to noncontrolling interests
Comprehensive income attributable to GE HealthCare	Comprehensive income attributable to GE HealthCare	$	25	$	194	$	763	$	457
Comprehensive income attributable to GE HealthCare
Comprehensive income attributable to GE HealthCare

The accompanying notes are an integral part of these condensed consolidated ~~and combined~~ financial statements.


Condensed Consolidated and Combined Statements of Financial Position (Unaudited)
Condensed Consolidated Statements of Financial Position (Unaudited)

		As of
		As of
		As of

		As of

(In millions, except share and per share amounts)	(In millions, except share and per share amounts)	September 30, 2023		December 31, 2022
(In millions, except share and per share amounts)
(In millions, except share and per share amounts)							March 31, 2024	December 31, 2023
Cash, cash equivalents, and restricted cash	Cash, cash equivalents, and restricted cash	$	2,418	$	1,445
Receivables – net of allowances of $91 and $91		3,373		3,295
Receivables – net of allowances of $102 and $98
Due from related parties	Due from related parties	27		17
Inventories	Inventories	2,128		2,155
Contract and other deferred assets	Contract and other deferred assets	1,038		989
All other current assets	All other current assets	484		417
Current assets	Current assets	9,468		8,318
Property, plant, and equipment – net	Property, plant, and equipment – net	2,355		2,314
Goodwill	Goodwill	12,914		12,813
Other intangible assets – net	Other intangible assets – net	1,332		1,520
Deferred income taxes	Deferred income taxes	4,277		1,550
All other assets		2,036		1,024
All other non-current assets
Total assets	Total assets	$	32,382	$	27,539
Short-term borrowings	Short-term borrowings	$	7	$	15
Accounts payable	Accounts payable	2,774		2,944
Due to related parties	Due to related parties	102		146
Contract liabilities	Contract liabilities	1,927		1,896
All other current liabilities	All other current liabilities	2,755		2,190
Current liabilities	Current liabilities	7,565		7,191
Long-term borrowings	Long-term borrowings	10,253		8,234
Compensation and benefits	Compensation and benefits	5,373		549
Deferred income taxes	Deferred income taxes	62		370
All other liabilities		1,826		1,603
All other non-current liabilities
Total liabilities	Total liabilities	25,079		17,947
Commitments and contingencies	Commitments and contingencies					Commitments and contingencies
Redeemable noncontrolling interests	Redeemable noncontrolling interests	161		230
Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 455,224,438 shares issued and outstanding as of September 30, 2023; 100 shares issued and outstanding as of December 31, 2022		5		—
Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 456,328,270 shares issued and outstanding as of March 31, 2024; 455,342,290 shares issued and outstanding as of December 31, 2023
Additional paid-in capital	Additional paid-in capital	6,469		—
Retained earnings	Retained earnings	937		—
Net parent investment		—		11,235

Accumulated other comprehensive income (loss) – net
Accumulated other comprehensive income (loss) – net
Accumulated other comprehensive income (loss) – net	Accumulated other comprehensive income (loss) – net	(280)		(1,878)
Total equity attributable to GE HealthCare	Total equity attributable to GE HealthCare	7,131		9,357
Noncontrolling interests	Noncontrolling interests	11		5
Total equity	Total equity	7,142		9,362
Total liabilities, redeemable noncontrolling interests, and equity	Total liabilities, redeemable noncontrolling interests, and equity	$	32,382	$	27,539

The accompanying notes are an integral part of these condensed consolidated ~~and combined~~ financial statements.


Condensed Consolidated Statements of Changes in Equity (Unaudited)
	Common stock
(In millions)	Common shares outstanding	Par value		Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss) – net		Equity attributable to noncontrolling interests		Total equity
Balances as of December 31, 2023	455	$	5	$	6,493	$	1,326	$	(691)	$	12	$	7,145











Issuance of common stock in connection with employee stock plans, net of shares withheld for employee taxes	1	—		(24)		—		—		—		(24)
Net income attributable to GE HealthCare	—	—		—		374		—		—		374
Dividends declared ($0.03 per common share)	—	—		—		(14)		—		—		(14)
Other comprehensive income (loss) attributable to GE HealthCare	—	—		—		—		(95)		—		(95)
Changes in equity attributable to noncontrolling interests	—	—		—		—		—		2		2
Share-based compensation	—	—		34		—		—		—		34
Balances as of March 31, 2024	456	$	5	$	6,504	$	1,687	$	(787)	$	14	$	7,423

Condensed Consolidated and Combined Statements of Changes in Equity (Unaudited)
Common stock
(In millions) Common shares outstanding Par value Additional paid-in capital Retained earnings Net parent investment Accumulated other comprehensive income (loss) – net Equity attributable to noncontrolling interests Total equity
Balances as of June 30, 2023 455 $ 5 $ 6,451 $ 576 $ — $ 70 $ 12 $ 7,114
Issuance of common stock in connection with employee stock plans, net of shares withheld for employee taxes — — (11) — — — — (11)
Net income attributable to GE HealthCare — — — 375 — — — 375
Dividends declared ($0.03 per common share) — — — (14) — — — (14)
Other comprehensive income (loss) attributable to GE HealthCare — — — — — (350) — (350)
Changes in equity attributable to noncontrolling interests — — — — — — (1) (1)
Share-based compensation — — 29 — — — — 29
Balances as of September 30, 2023 455 $ 5 $ 6,469 $ 937 $ — $ (280) $ 11 $ 7,142

~~The accompanying notes are an integral part of these condensed consolidated and combined financial statements.~~

Common stock
(In millions) Common shares outstanding Par value Additional paid-in capital Retained earnings Net parent investment Accumulated other comprehensive income (loss) – net Equity attributable to noncontrolling interests Total equity
Balances as of December 31, 2022 — $ — $ — $ — $ 11,235 $ (1,878) $ 5 $ 9,362
Net transfers from Parent, including Spin-Off-related adjustments — — — — (4,842) 2,000 2 (2,840)
Issuance of common stock in connection with the Spin-Off and reclassification of net parent investment 454 5 6,388 — (6,393) — — —
Issuance of common stock in connection with employee stock plans, net of shares withheld for employee taxes 1 — — — — — — —
Net income attributable to GE HealthCare — — — 1,165 — — — 1,165
Dividends declared ($0.09 per common share) — — — (41) — — — (41)
Other comprehensive income (loss) attributable to GE HealthCare — — — — — (402) — (402)
Changes in equity attributable to noncontrolling interests — — — — — — 4 4
Share-based compensation — — 81 — — — — 81
Changes in equity due to redemption value adjustments on redeemable noncontrolling interests — — — (187) — — — (187)
Balances as of September 30, 2023 455 $ 5 $ 6,469 $ 937 $ — $ (280) $ 11 $ 7,142

Condensed Consolidated and Combined Statements of Cash Flows (Unaudited)
For the nine months ended September 30
(In millions) 2023 2022
Net income $ 1,198 $ 1,394
Less: Income (loss) from discontinued operations, net of taxes (4) 12
Net income from continuing operations $ 1,202 $ 1,382
Adjustments to reconcile Net income from continuing operations to Cash from (used for) operating activities
Depreciation of property, plant, and equipment 188 169
Amortization of intangible assets 278 307
Gain on fair value remeasurement of contingent consideration (17) (49)
Net periodic postretirement benefit plan (income) expense (291) 8
Postretirement plan contributions (259) (17)
Provision for income taxes 550 412
Share-based compensation 81 58
Cash paid during the year for income taxes (375) (664)
Cash paid during the year for interest (318) —
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions:
Receivables (82) (107)
Due from related parties 9 22
Inventories (85) (542)
Contract and other deferred assets (75) (168)
Accounts payable (93) 369
Due to related parties (87) (45)
Contract liabilities 69 49
All other operating activities 356 (113)
Cash from (used for) operating activities – continuing operations 1,051 1,071
Cash flows – investing activities
Additions to property, plant and equipment and internal-use software (293) (233)
Dispositions of property, plant, and equipment 1 3
Purchases of businesses, net of cash acquired (147) —
All other investing activities (31) (73)
Cash from (used for) investing activities – continuing operations (470) (303)
Cash flows – financing activities
Net increase (decrease) in borrowings (maturities of 90 days or less) (9) 8
Newly issued debt, net of debt issuance costs (maturities longer than 90 days) 2,020 3
Repayments and other reductions (maturities longer than 90 days) (9) (4)
Dividends paid to stockholders (28) —
Redemption of noncontrolling interests (211) —
Net transfers (to) from GE (1,317) (703)
All other financing activities (24) (89)
Cash from (used for) financing activities – continuing operations 422 (785)
Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash (34) (40)
Increase (decrease) in cash, cash equivalents, and restricted cash 969 (57)
Cash, cash equivalents, and restricted cash at beginning of year 1,451 561
Cash, cash equivalents, and restricted cash as of September 30 $ 2,420 $ 504



	Common stock
(In millions)	Common shares outstanding	Par value		Additional paid-in capital		Retained earnings		Net parent investment		Accumulated other comprehensive income (loss) – net		Equity attributable to noncontrolling interests		Total equity
Balances as of December 31, 2022	—	$	—	$	—	$	—	$	11,235	$	(1,878)	$	5	$	9,362
Net transfers from GE, including Spin-Off-related adjustments	—	—		—		—		(4,833)		2,000		(1)		(2,834)
Issuance of common stock in connection with the Spin-Off and reclassification of net parent investment	454	5		6,397		—		(6,402)		—		—		—
Issuance of common stock in connection with employee stock plans, net of shares withheld for employee taxes	1	—		4		—		—		—		—		4
Net income attributable to GE HealthCare	—	—		—		372		—		—		—		372
Other comprehensive income (loss) attributable to GE HealthCare	—	—		—		—		—		(47)		—		(47)



Changes in equity attributable to noncontrolling interests	—	—		—		—		—		—		2		2
Share-based compensation	—	—		24		—		—		—		—		24
Changes in equity due to redemption value adjustments on redeemable noncontrolling interests	—	—		—		(187)		—		—		—		(187)
Balances as of March 31, 2023	455	$	5	$	6,425	$	185	$	—	$	75	$	6	$	6,696

The accompanying notes are an integral part of these condensed consolidated ~~and combined~~ financial statements.

108


Condensed Consolidated Statements of Cash Flows (Unaudited)
	For the three months ended March 31
(In millions)	2024		2023
Net income	$	388	$	383


Adjustments to reconcile Net income to Cash from (used for) operating activities
Depreciation of property, plant, and equipment	68		61
Amortization of intangible assets	80		96

Gain on fair value remeasurement of contingent consideration	(1)		—
Net periodic postretirement benefit plan (income) expense	(90)		(101)
Postretirement plan contributions	(87)		(91)
Share-based compensation	34		24
Provision for income taxes	124		163
Cash paid during the year for income taxes	(86)		(102)


Changes in operating assets and liabilities, excluding the effects of acquisitions:
Receivables	155		(22)
Due from related parties	13		5
Inventories	(59)		(122)
Contract and other deferred assets	32		12
Accounts payable	81		87
Due to related parties	(50)		6
Contract liabilities	(18)		119
All other operating activities	(165)		(50)
Cash from (used for) operating activities	419		468
Cash flows – investing activities
Additions to property, plant and equipment and internal-use software	(145)		(143)

Purchases of businesses, net of cash acquired	—		(127)
All other investing activities	(42)		4
Cash from (used for) investing activities	(188)		(266)
Cash flows – financing activities
Net increase (decrease) in borrowings (maturities of 90 days or less)	1		(9)
Newly issued debt, net of debt issuance costs (maturities longer than 90 days)	1		2,000
Repayments and other reductions (maturities longer than 90 days)	(153)		(6)
Dividends paid to stockholders	(14)		—

Net transfers (to) from GE	—		(1,317)
All other financing activities	12		5
Cash from (used for) financing activities	(153)		673



Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash	(19)		8
Increase (decrease) in cash, cash equivalents, and restricted cash	59		883
Cash, cash equivalents, and restricted cash at beginning of year	2,506		1,451

Cash, cash equivalents, and restricted cash as of March 31	$	2,565	$	2,334

Supplemental disclosure of cash flows information
Cash paid during the year for interest	$	(55)	$	(42)
Non-cash investing activities
Acquired but unpaid property, plant, and equipment	$	53	$	64

The accompanying notes are an integral part of these condensed consolidated financial statements.

NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION

~~BACKGROUND.~~

GE HealthCare Technologies Inc. and its subsidiaries (“GE HealthCare,” the “Company,” “our,” “us,” or “we”) is a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator. We operate at the center of the healthcare ecosystem, helping enable precision care by increasing health system capacity, enhancing productivity, digitizing healthcare delivery, and improving clinical outcomes while serving patients’ demand for greater efficiency, access, and personalized medicine. Our products, services, and solutions are designed to enable clinicians to make more informed decisions quickly and efficiently, improving patient care from diagnosis to therapy to monitoring.

On January 3, 2023 (the “Distribution Date”), the General Electric Company (“GE” ~~or “Parent”~~) completed the ~~previously announced~~ spin-off of GE HealthCare Technologies Inc. (the “Spin-Off”). The Spin-Off was completed through a distribution of approximately 80.1% of the Company’s outstanding common stock to holders of record of ~~GE's~~GE’s common stock as of the close of business on December 16, 2022 (the “Distribution”), which resulted in the issuance of approximately 454 million shares of common stock. Prior to the Distribution, the Company issued 100 shares of common stock in exchange for $1.00, all of which were held by GE as of December 31, 2022. As a result of the Distribution, the Company became an independent public company. ~~Our common stock is listed under the symbol “GEHC” on the Nasdaq Stock Market LLC (“Nasdaq”).~~ As of ~~September 30, 2023,~~March 31, 2024, GE’s beneficial ownership was approximately ~~13.5%~~6.7% of the Company’s outstanding common stock.

In connection with the Spin-Off, certain adjustments were recorded to reflect transfers from GE, the draw-down of the Term Loan Facility and settlement of Spin-Off transactions with GE, which resulted in the net reduction in Total equity of ~~$2,840~~$2,834 million. These items substantially consisted of the transfer of: (1) certain pension plan liabilities and assets, ~~as described in Note 9, “Postretirement Benefit Plans,”~~ (2) certain deferred income taxes, ~~as described in Note 10, “Income Taxes,”~~ (3) deferred compensation liabilities, ~~of $548 million,~~ and (4) employee termination ~~obligations as described in Note 14, “Restructuring and Other Activities – Net.”~~obligations.

In connection with the Spin-Off, the Company entered into or adopted several agreements that provide a framework for the relationship between the Company and GE. See Note ~~18,~~17, “Related Parties” for more information on these ~~agreements.~~

~~Unless the context otherwise requires, references to “GE HealthCare,” “we,” “us,” “our,”~~agreements and ~~the “Company” refer to (1) GE’s healthcare business prior to the Spin-Off as a carve-out business of GE with~~ related ~~condensed combined financial statements and (2) GE HealthCare Technologies Inc. and its subsidiaries following the Spin-Off with related condensed consolidated financial statements.~~

~~BASIS OF PRESENTATION.~~

transactions.

The condensed consolidated ~~and combined~~ financial statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial information and ~~present~~in accordance with the ~~historical results~~instructions to Form 10-Q and Article 10 of ~~operations and comprehensive income (loss) for the three and nine months ended September 30, 2023 and 2022, cash flows for the nine months ended September 30, 2023 and 2022, and~~Regulation S-X. Accordingly, the financial ~~position as of September 30, 2023 and December 31, 2022. It is management’s opinion that these financial~~ statements do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, including normal ~~and~~ recurring adjustments, considered necessary for a fair presentation of the Company’s financial position and operating ~~results. The following tables are presented in millions of U.S dollars (“USD”) unless otherwise stated.~~

results have been included. All intercompany balances and transactions within the Company have been eliminated in the condensed consolidated ~~and combined~~ financial statements. ~~These~~Operating results for the three months ended March 31, 2024 and 2023 are not necessarily indicative of the results that may be expected for the fiscal year as a whole. The December 31, 2023 consolidated balance sheet was derived from audited financial statements, but does not include ~~certain transactions with GE, which~~all disclosures required by U.S. GAAP. The following tables are ~~disclosed as related party transactions. See Note 18, “Related Parties” for further information.~~

~~Prior~~presented in millions of U.S. dollars unless otherwise stated. Certain columns and rows throughout this document may not sum due to the ~~Spin-Off,~~use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts.

The condensed ~~combined financial statements were derived from the~~ consolidated financial statements and accounting records of GE including the historical cost basis of assets and liabilities comprising the Company, as well as the historical revenues, direct costs, and allocations of indirect costs attributable to the operations of the Company, using the historical accounting policies applied by GE. The condensed combined financial statements do not purport to reflect what the results of operations, comprehensive income (loss), financial position, or cash flows would have been had the Company operated as a separate, stand-alone entity prior to the Spin-Off.

~~The condensed consolidated and combined financial statements~~notes should be read in conjunction with the Company’s audited consolidated and combined financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2022.~~2023.

ESTIMATES AND ASSUMPTIONS.

The preparation of the condensed consolidated ~~and combined~~ financial statements in conformity with U.S. GAAP requires management to make estimates based on assumptions about current, and for some estimates, future, economic and market conditions, which affect the reported amounts and related disclosures in the condensed consolidated ~~and combined~~ financial statements. We base our estimates and judgments on historical experience and on various other assumptions and information that we believe to be reasonable under the circumstances. Although our estimates contemplate current and expected future conditions, as applicable, it is reasonably possible that actual conditions could differ from our expectations, which could materially affect our results of operations, financial position, and cash flows.

There have been no material impacts to our accounting estimates as of September 30, 2023 and December 31, 2022, or the results for the three and nine months ended September 30, 2023 and 2022, from the COVID-19 pandemic. The federal COVID-19 Public Health Emergency declaration in the U.S. ended in May 2023, and COVID-19 restrictions have been lifted in many locations globally.

RECENT ACCOUNTING ~~CHANGES.~~

~~Accounting Standards Codification (“ASC”) Topic 740,~~ ~~Income Taxes~~, provides that interest and penalties related to unrecognized income tax benefits may either be classified as income tax expense or interest expense in the condensed consolidated statements of operations. In the first quarter of 2023, the Company changed its accounting policy for presentation of interest expense on uncertain tax positions. The interest was previously presented within “Interest and other financial charges – net” and has changed to being presented within “Benefit (provision) for income taxes.” The Company believes this presentation is preferable because the cost is related to income tax matters and this presentation enhances comparability with our peers. The effects of the change in accounting have been prospectively applied to periods beginning in the first quarter of 2023 and were not material to any previously reported periods prior to March 31, 2023.

~~Recent Accounting Pronouncements reflected in the Condensed Consolidated and Combined Financial Statements~~

PRONOUNCEMENTS.

In ~~September 2022,~~November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. ~~2022-04,~~2023-07 (“ASU 2023-07”), ~~Liabilities – Supplier Finance Programs (Subtopic 405-50)~~Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires annual and interim disclosures that are expected to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The provisions of ASU requires companies to disclose information about supplier finance programs, including key terms of the program, outstanding confirmed amounts as of the end of the period, a rollforward of such amounts during each annual period, and a description of where the amounts2023-07 are ~~presented. The new standard does not affect the recognition, measurement, or financial statement presentation of supplier finance obligations. The ASU is~~ effective for fiscal years beginning after December 15, ~~2022, including~~2023, and interim periods ~~except for rollforward information, which is effective for~~within fiscal years beginning after December 15, ~~2023. The Company adopted this guidance on January 1, 2023. See Note 17, “Supplemental Financial Information” for further information.~~2024, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2023-07.

In ~~October 2021,~~December 2023, the FASB issued ASU No. ~~2021-08,~~2023-09 (“ASU 2023-09”), ~~Business Combinations~~Income Taxes (Topic ~~805)~~740): ~~Accounting for Contract Assets and Contract Liabilities from Contracts with Customers~~Improvements to Income Tax Disclosures. ~~The~~ ASU ~~requires companies~~2023-09 addresses investor requests for more transparency about income tax information through improvements to ~~apply the definition of a performance obligation under ASC 606,~~ ~~Revenue from Contracts with Customers, to recognize and measure contract assets and contract liabilities relating to contracts with customers acquired in a business combination. Prior~~income tax disclosures primarily related to the ~~adoption~~rate reconciliation and income taxes paid information. This update also includes certain other amendments to improve the effectiveness of ~~this~~income tax disclosures. The provisions of ASU an acquirer generally recognized assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. The ASU results in the acquirer recording acquired contract assets and contract liabilities from contracts with customers on the same basis that would have been recorded by the acquiree before the acquisition under ASC 606. The ASU is2023-09 are effective for ~~fiscal years~~annual periods beginning after December 15, ~~2022,~~2024, with early adoption permitted. ~~The Company adopted this guidance on January 1, 2023 using a prospective method, and~~We are currently evaluating the ~~adoption did not have a material~~ impact ~~on the condensed consolidated financial statements.~~of adopting ASU 2023-09.

NOTE 2. REVENUE RECOGNITION

Our revenues primarily consist of sales of products and services to customers. Products include equipment, imaging agents, software-related offerings, and upgrades. Services include contractual and stand-by preventative maintenance and corrective services, as well as ~~related~~on-demand service parts and ~~labor,~~maintenance services, extended warranties, training, and other service-type offerings. The Company recognizes revenue from contracts with customers when the customer obtains control of the underlying products or services.

Contract and Other Deferred Assets
As of
September 30, 2023 December 31, 2022
Contract assets $ 650 $ 584
Other deferred assets 388 405
Contract and other deferred assets 1,038 989
Non-current contract assets(1)
67 37
Non-current other deferred assets(1)
88 82
Total contract and other deferred assets $ 1,193 $ 1,108

~~(1)Non-current contract and other deferred assets are recognized within All other assets in the Condensed Consolidated and Combined Statements of Financial Position.~~CONTRACT ASSETS.

Contract assets ~~primarily~~ reflect revenue recognized on contracts with customers in excess of billings based on contractual terms. Contract assets are classified as current or non-current based on the amount of time expected to lapse until the Company’s right to consideration becomes unconditional. Other deferred assets consist of costs to obtain contracts, primarily commissions, other cost deferrals for shipped products, and deferred service, labor, and direct overhead costs.


Contract and Other Deferred Assets
	As of
	March 31, 2024		December 31, 2023
Contract assets	$	577	$	600
Other deferred assets	384		400
Contract and other deferred assets	961		1,000
Non-current contract assets(1)	78		72
Non-current other deferred assets(1)	97		96
Total contract and other deferred assets	$	1,136	$	1,168

(1)Non-current contract and other deferred assets are recognized within All other non-current assets in the Condensed Consolidated Statements of Financial Position.

CONTRACT LIABILITIES.

Contract liabilities ~~primarily~~ include customer advances and deposits received when orders are placed and billed in advance of completion of performance obligations. Contract liabilities are classified as current or non-current based on the periods over which remaining performance obligations (“RPO”) are expected to be satisfied with our customers.

As of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, contract liabilities were approximately ~~$2,610~~$2,566 million and ~~$2,526~~$2,623 million, respectively, of which the non-current portion of ~~$683~~$687 million and ~~$630~~$705 million, respectively, was recognized in All other non-current liabilities in the Condensed Consolidated ~~and Combined~~ Statements of Financial Position. Contract liabilities ~~increased by $84~~decreased $56 million in ~~2023~~2024 primarily due to ~~an increase~~a decrease in customer ~~advances as a result of the normal annual service contract billing cycle.~~advances. Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately ~~$1,357~~$741 million and ~~$1,377~~$759 million for the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ respectively.

REMAINING PERFORMANCE OBLIGATIONS.

~~Remaining performance obligations represent~~RPO represents the estimated revenue expected from customer contracts that are partially or fully unperformed inclusive of amounts deferred in contract liabilities, excluding contracts, or portions thereof, that provide the customer with the ability to cancel or terminate without incurring a substantive penalty. As of ~~September 30, 2023,~~March 31, 2024, the aggregate amount of the contracted revenues allocated to our unsatisfied ~~(or partially unsatisfied)~~ performance obligations was ~~$14,162~~$14,313 million. We expect to recognize revenue as we satisfy our ~~remaining performance obligations~~RPO as follows: a) product-related ~~remaining performance obligations~~RPO of ~~$4,865~~$4,742 million of which ~~99%~~98% is expected to be recognized within two years, and the remaining thereafter; and b) services-related ~~remaining performance obligations~~RPO of ~~$9,297~~$9,570 million of which 65% and 94% isare expected to be recognized within two years and five years, respectively, and the remaining thereafter.

NOTE 3. SEGMENT INFORMATION

GE HealthCare’s operations are organized and managed through four reportable segments: Imaging, Ultrasound, Patient Care Solutions (“PCS”), and Pharmaceutical Diagnostics (“PDx”). These segments have been identified based on the nature of the products sold and how the Company manages its operations. We have not aggregated any of our operating segments to form reportable segments. A description of our reportable segments has been provided in the “Business” section of our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2022.~~2023.

The performance of these segments is principally measured based on Total revenues and an earnings metric defined as “Segment EBIT.” Segment EBIT is calculated as Income ~~from continuing operations~~ before income taxes in our Condensed Consolidated ~~and Combined~~ Statements of Income excluding the impact of the following: Interest and other financial charges – net, Non-operating benefit (income) costs, restructuring costs, acquisition and ~~disposition related~~disposition-related benefits (charges), gain (loss) ofon business and asset dispositions, ~~spin-off~~Spin-Off and separation costs, amortization of acquisition-related intangible assets, and investment revaluation gain (loss).


Total Revenues by Segment	Total Revenues by Segment
Total Revenues by Segment
Total Revenues by Segment
		For the three months ended March 31
		For the three months ended March 31
		For the three months ended March 31
		For the three months ended September 30				For the nine months ended September 30
		2024

		2024
		2023		2022		2023		2022
		2024
Imaging:
Imaging:
Imaging:	Imaging:
Radiology	Radiology	$	2,237	$	2,118	$	6,552	$	6,100
Radiology
Radiology
Interventional Guidance
Interventional Guidance
Interventional Guidance	Interventional Guidance	398		398		1,199		1,176
Total Imaging	Total Imaging	2,635		2,516		7,751		7,276
Total Imaging
Total Imaging
Total Ultrasound
Total Ultrasound
Total Ultrasound	Total Ultrasound	815		823		2,513		2,466
PCS:	PCS:
PCS:
PCS:
Monitoring Solutions
Monitoring Solutions
Monitoring Solutions	Monitoring Solutions	573		506		1,688		1,539
Life Support Solutions	Life Support Solutions	191		195		627		591
Life Support Solutions
Life Support Solutions
Total PCS
Total PCS
Total PCS	Total PCS	764		701		2,315		2,130
Total PDx	Total PDx	589		522		1,715		1,485
Total PDx
Total PDx
Other(1)
Other(1)
Other(1)	Other(1)	19		14		52		46
Total revenues	Total revenues	$	4,822	$	4,576	$	14,346	$	13,403
Total revenues
Total revenues

(1) Financial information not presented within the reportable segments, shown within the Other category, represents the HealthCare Financial Services (“HFS”) business which does not meet the definition of an operating segment.

Segment EBIT
For the three months ended September 30 For the nine months ended September 30
2023 2022 2023 2022
Segment EBIT
Imaging $ 318 $ 267 $ 787 $ 779
Ultrasound 179 211 577 623
PCS 80 65 273 211
PDx 166 159 473 411
Other(1)
1 (2) 9 (7)
744 700 2,119 2,017
Restructuring costs (3) (88) (34) (110)
Acquisition and disposition related benefits (charges) 14 49 15 20
Gain (loss) of business and asset dispositions — (2) — 1
Spin-Off and separation costs (45) (7) (175) (7)
Amortization of acquisition-related intangible assets (32) (28) (95) (90)
Investment revaluation gain (loss) 2 (1) 1 (23)
Interest and other financial charges – net (138) (2) (411) (18)
Non-operating benefit income (costs) 94 1 332 4
Income from continuing operations before income taxes $ 636 $ 622 $ 1,752 $ 1,794


Segment EBIT
	For the three months ended March 31
	2024		2023
Segment EBIT
Imaging	$	240	$	191
Ultrasound	182		207
PCS	81		109
PDx	178		155
Other(1)	(1)		2
	681		664
Restructuring costs	(40)		(12)
Acquisition and disposition-related benefits (charges)	—		(1)
Gain (loss) on business and asset dispositions	—		—
Spin-Off and separation costs	(60)		(58)
Amortization of acquisition-related intangible assets	(31)		(31)
Investment revaluation gain (loss)	(20)		5
Interest and other financial charges – net	(122)		(136)
Non-operating benefit income (costs)	102		115
Income before income taxes	$	512	$	546

(1) Financial information not presented within the reportable segments, shown within the Other category, represents the HFS business and certain other business activities which do not meet the definition of an operating segment.

NOTE 4. RECEIVABLES


Current Receivables	Current Receivables
		As of
		September 30, 2023		December 31, 2022
		As of
		As of
		As of
	March 31, 2024					March 31, 2024	December 31, 2023
Current customer receivables(1)	Current customer receivables(1)	$	3,189	$	3,112
Non-income based tax receivables	Non-income based tax receivables	165		174
Other sundry receivables	Other sundry receivables	110		100
Sundry receivables		275		274
Current sundry receivables
Allowance for credit losses	Allowance for credit losses	(91)		(91)
Total current receivables – net	Total current receivables – net	$	3,373	$	3,295

(1) Chargebacks, which are primarily related to our PDx business, are generally settled through issuance of credits, typically within one month of initial recognition, and are recorded as a reduction to current customer receivables. Balances related to chargebacks were ~~$148~~$136 million and ~~$157~~$144 million as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, respectively.

Long-Term Receivables

As of

March 31, 2024

December 31, 2023

Long-term customer receivables

Non-income based tax receivables

Other sundry receivables

Long-term sundry receivables

As of

September 30, 2023

December 31, 2022

Long-term customer receivables

Sundry receivables

Non-income based tax receivables

Supplier advances

Allowance for credit losses

(30)

(31)

Total long-term receivables – net(1)

143

145

(1) Long-term receivables are recognized within All other non-current assets in the Condensed Consolidated ~~and Combined~~ Statements of Financial Position.

NOTE 5. FINANCING RECEIVABLES


Financing Receivables	Financing Receivables
		As of
		September 30, 2023		December 31, 2022
		As of
		As of
		As of
	March 31, 2024					March 31, 2024	December 31, 2023
Loans, net of deferred income	Loans, net of deferred income	$	28	$	29
Investment in financing leases, net of deferred income	Investment in financing leases, net of deferred income	72		72
Allowance for credit losses	Allowance for credit losses	(3)		(4)
Current financing receivables – net(1)	Current financing receivables – net(1)	97		97
Loans, net of deferred income	Loans, net of deferred income	38		44
Investment in financing leases, net of deferred income	Investment in financing leases, net of deferred income	156		158
Allowance for credit losses	Allowance for credit losses	(4)		(6)
Non-current financing receivables – net(1)	Non-current financing receivables – net(1)	$	190	$	196

(1) Current financing receivables and non-current financing receivables are recognized within All other current assets and All other non-current assets, respectively, in the Condensed Consolidated ~~and Combined~~ Statements of Financial Position.

As of ~~September 30, 2023~~March 31, 2024, 6%, 5%, and 5%7% of financing receivables were over 30 days past due, over 90 days past due, and on nonaccrual, respectively, with the majority of nonaccrual financing receivables secured by collateral. As of December 31, ~~2022~~2023, 7%5%, 6%5%, and 6% of financing receivables were over 30 days past due, over 90 days past due, and on nonaccrual, respectively, with the majority of nonaccrual financing receivables secured by collateral.

NOTE 6. LEASES

~~OPERATING LEASE LIABILITIES.~~

Operating lease liabilities recognized within All other current liabilities orand All other non-current liabilities in the Condensed Consolidated ~~and Combined~~ Statements of Financial Position were ~~$365~~$376 million and ~~$347~~$383 million as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, respectively. ~~Expense~~The total lease expense related to our operating lease portfolio ~~primarily our long-term fixed leases,~~ was ~~$54~~$60 million and ~~$47~~$56 million for the three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022, respectively, and $167 million and $143 million for the nine months ended September 30, 2023 and 2022,~~ respectively.

NOTE 7. ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS

ACQUISITIONS.

On February 17, 2023, the Company acquired 100% of the stock of Caption Health, Inc. (“Caption Health”) for $127 million of upfront payment, $10 million of future holdback payment, and potential earn-out payments valued at $13 million based primarily on various milestones and sales targets. This transaction was accounted for as a business combination. The preliminary purchase price allocation resulted in goodwill of $94 million, intangible assets of $60 million, and deferred tax liabilities of $3 million. ~~Our estimates and assumptions are subject to change within~~The purchase price allocation for Caption Health was finalized in the ~~measurement period.~~first quarter of 2024 without material adjustments. The goodwill associated with the acquired business is non-deductible for tax purposes and is reported in the Ultrasound segment. Caption Health is an artificial intelligence (“AI”) company whose technology expands access to AI-guided ultrasound screening for novice users.

~~See Note 12, “Financial Instruments and Fair Value Measurements” for further information about the fair value measurement of contingent consideration.~~

GOODWILL.

Goodwill
Balance as of December 31, 2022 Acquisitions Foreign exchange and other Balance as of September 30, 2023
Imaging(1)
$ 4,409 $ 16 $ (3) $ 4,422
Ultrasound 3,835 94 (6) 3,923
PCS 2,036 — — 2,036
PDx 2,533 — — 2,533
Total Goodwill $ 12,813 $ 110 $ (9) $ 12,914

~~(1) Includes the acquisition of IMACTIS SAS in the second quarter of 2023.~~


	Balance as of December 31, 2023		Acquisitions		Foreign exchange and other		Balance as of March 31, 2024
Imaging	$	4,431	$	—	$	(4)	$	4,427
Ultrasound	3,933		—		(5)		3,928
PCS	2,038		—		(1)		2,037
PDx	2,534		—		—		2,534
Total Goodwill	$	12,936	$	—	$	(10)	$	12,927

We assess the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates. We did not identify any reporting units that required an interim impairment test since the last annual impairment testing date.

OTHER INTANGIBLE ASSETS.

Intangible assets decreased during the three months ended March 31, 2024, primarily as a result of amortization. Substantially all ~~other~~of our intangible assets are subject to amortization. ~~Intangible assets decreased during the nine months ended September 30, 2023, primarily as a result of amortization, partially offset by acquisitions in our Imaging and Ultrasound segments.~~ Amortization expense was ~~$89~~$80 million and ~~$103~~$96 million for the three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022, respectively, and $278 million and $307 million for the nine months ended September 30, 2023 and 2022,~~ respectively.

NOTE 8. BORROWINGS

The Company’s borrowings include the following senior unsecured notes and credit agreements:

Senior Unsecured Notes

The Company’s ~~long-term~~ borrowings include $8,250 million aggregate principal amount of senior unsecured notes in six series with maturity dates ranging from 2024 through 2052 (collectively, the “Notes”). Refer to the table below for further information about the Notes.

Credit Facilities

The Company has credit agreements providing for:

•a five-year senior unsecured revolving credit facility in an aggregate committed amount of $2,500 million;

•a 364-day senior unsecured revolving credit facility in an aggregate committed amount of $1,000 million; and

•a three-year senior unsecured term loan credit facility in an aggregate principal amount of $2,000 million (the “Term Loan Facility” and, together with the five-year revolving credit facility and the 364-day revolving credit facility, the “Credit Facilities”).

There were no outstanding amounts under the five-year revolving credit facility and 364-day revolving credit facility as of ~~September 30, 2023~~March 31, 2024 or December 31, ~~2022.~~ ~~On January 3, 2023, the Company~~ ~~completed a $2,000 million drawdown of the floating rate Term Loan Facility in connection with the Spin-Off from GE.~~2023.

~~The weighted average interest rate for~~In the ~~Notes and our Credit Facilities for~~first quarter of 2024, we repaid $150 million of the ~~nine months ended September 30, 2023 was 6.01%.~~outstanding Term Loan Facility. As of March 31, 2024, we have repaid a total of $1,000 million of this facility. We had no principal debt repayments on the Notes ~~or the Term Loan Facility~~ for the ~~nine~~three months ended ~~September 30, 2023.~~March 31, 2024.

Long-Term Borrowings Composition
As of
September 30, 2023 December 31, 2022
5.550% senior notes due November 15, 2024 $ 1,000 $ 1,000
5.600% senior notes due November 15, 2025 1,500 1,500
5.650% senior notes due November 15, 2027 1,750 1,750
5.857% senior notes due March 15, 2030 1,250 1,250
5.905% senior notes due November 22, 2032 1,750 1,750
6.377% senior notes due November 22, 2052 1,000 1,000
Floating rate Term Loan Facility 2,000 —
Other 51 38
Total principal debt issued 10,301 8,288
Less: Unamortized debt issuance costs and discounts 41 47
Less: Current portion of long-term borrowings 7 7
Long-term borrowings, net of current portion $ 10,253 $ 8,234

1614


Borrowings Composition
	As of
	March 31, 2024		December 31, 2023
5.550% senior notes due November 15, 2024	$	1,000	$	1,000
5.600% senior notes due November 15, 2025	1,500		1,500
5.650% senior notes due November 15, 2027	1,750		1,750
5.857% senior notes due March 15, 2030	1,250		1,250
5.905% senior notes due November 22, 2032	1,750		1,750
6.377% senior notes due November 22, 2052	1,000		1,000
Floating rate Term Loan Facility due January 2, 2026	1,000		1,150
Other	51		52
Total principal debt issued	9,301		9,452
Less: Unamortized debt issuance costs and discounts	33		35
Add: Cumulative basis adjustment for fair value hedges	(13)		25
Total borrowings	9,255		9,442
Less: Short-term borrowings(1)	1,008		1,006
Long-term borrowings	$	8,247	$	8,436

(1) Short-term borrowings as of March 31, 2024 and December 31, 2023 includes $1,003 million and $1,002 million, respectively, related to the current portion of our long-term borrowings, net of unamortized debt issuance costs and discounts.

See Note 12, “Financial Instruments and Fair Value Measurements” for further information about borrowings and associated derivatives contracts.

LETTERS OF CREDIT, GUARANTEES, AND OTHER COMMITMENTS.

As of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, the Company had ~~unused letters of credit,~~ bank guarantees ~~bid bonds,~~ and surety bonds of approximately ~~$724~~$717 million and ~~$657~~$751 million, respectively, related to certain commercial contracts. Additionally, we have approximately ~~$39~~$33 million and ~~$43~~$39 million of guarantees as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, respectively, primarily related to residual and credit guarantees on equipment sold to third-party finance companies. Our Condensed Consolidated ~~and Combined~~ Statements of Financial Position reflect a liability of $4 million ~~and $4 million~~ as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022, respectively,~~2023 related to these guarantees. For credit-related guarantees, we estimate our expected credit losses related to off-balance sheet credit exposure consistent with the method used to estimate the allowance for credit losses on financial assets held at amortized cost. See Note 13, “Commitments, Guarantees, Product Warranties, and Other Loss Contingencies” for further information on guarantee arrangements with GE.

NOTE 9. POSTRETIREMENT BENEFIT PLANS

~~PENSION BENEFITS AND RETIREE HEALTH AND LIFE BENEFITS SPONSORED BY GE, TRANSFERRED TO GE HEALTHCARE IN~~ ~~CONNECTION WITH THE SPIN-OFF.~~

C~~ertain GE HealthCare employees were covered under various~~We sponsor a number of pension and retiree health and life insurance benefit plans ~~sponsored by GE prior~~that we present in three categories, Principal Pension Plans, Other Pension Plans, and Other Postretirement Plans (“OPEB Plans”). Please refer to Note 10, “Postretirement Benefit Plans” to the ~~Spin-Off, including principal pension plans, other pension plans,~~consolidated and ~~principal retiree benefit plans.~~ A subset of these pension plans have been closed to new participants. For the three and nine months ended September 30, 2022, relevant participation costs for these plans were allocated to the Company and recognized within the Condensed Combined Statement of Income. Thesecombined financial statements included service costs for active employees in the U.S. GE Pension Plan, certain international pension plans, the U.S. GE Supplementary Pension Plan, and the U.S. retiree benefit plan. We did not record any liabilities associated with our participation in these plans in our ~~Condensed Combined Statement of Financial Position as of~~Annual Report on Form 10-K for the fiscal year ended December 31, ~~2022.~~

Expenses associated with our employees’ participation in the U.S. GE principal pension and principal retiree benefit plans, which represent the majority of related expense, were $24 million and $73 million2023 for the three and nine months ended September 30, 2022. Expenses associated with our employees’ participation in GE’s non-U.S. based pension plans were immaterial for the three and nine months ended September 30, 2022.

~~In connection with the Spin-Off, on~~further information. On January 1, ~~2023, these plans were separated and~~2024, we transitioned from legacy GE ~~transferred certain liabilities and assets of these~~multiple-employer OPEB plans to GE HealthCare ~~based upon measurements as~~sponsored single-employer OPEB plans. This change did not have an impact on our results of ~~December 31, 2022. The amounts assumed by GE HealthCare on January 1, 2023, are shown in the tables below.~~

Accumulated Benefit Obligations and Unrecognized Gain
As of January 1, 2023
Defined benefit plans Other postretirement plans Total
Accumulated benefit obligations $ 21,696 $ 1,210 $ 22,906
Unrecognized gain to be recorded in AOCI 1,258 1,223 2,481

Net Benefit Liability
As of January 1, 2023
Defined benefit plans Other postretirement plans Total
Projected benefit obligations $ 21,743 $ 1,210 $ 22,953
Fair value of assets 18,908 — 18,908
Net liability $ 2,835 $ 1,210 $ 4,045

~~PENSION PLANS SPONSORED BY GE HEALTHCARE, INCLUDING THOSE TRANSFERRED BY GE.~~

~~As the pension plans were transferred by GE on January 1, 2023, there are no amounts included for these plans in the periods ended September 30, 2022.~~operations or financial position. Pension plans with pension assets or obligations less than $50 million ~~and $20 million as of September 30, 2023 and 2022, respectively,~~ are not included in the results below.


Components of Expense (Income)
	For the three months ended March 31
	Principal Pension Plans				Other Pension Plans					OPEB Plans

	2024		2023			2024		2023			2024		2023
Service cost – Operating	$	7	$	8		$	6	$	6		$	2	$	2
Interest cost	227		240			50		52			13		15
Expected return on plan assets	(283)		(293)			(63)		(63)			—		—
Amortization of net loss (gain)	(19)		(31)			5		2			(15)		(16)
Amortization of prior service cost (credit)	2		—			—		(1)			(22)		(22)


Non-operating	$	(73)	$	(84)		$	(8)	$	(10)		$	(24)	$	(23)
Net periodic expense (income)	$	(66)	$	(76)		$	(2)	$	(4)		$	(22)	$	(21)

Components of Expense (Income)
For the three months ended September 30
Defined benefit plans Other postretirement plans
2023 2022 2023 2022
Service cost – Operating $ 14 $ 4 $ 2 $ —
Interest cost 290 4 15 —
Expected return on plan assets (357) (7) — —
Amortization of net loss (gain) (28) 2 (16) —
Amortization of prior service cost (credit) 1 (1) (22) —
Curtailment loss (gain) 17 — — —
Non-operating $ (77) $ (2) $ (23) $ —
Net periodic expense (income) $ (63) $ 2 $ (21) $ —

For the nine months ended September 30
Defined benefit plans Other postretirement plans
2023 2022 2023 2022
Service cost – Operating $ 43 $ 14 $ 6 $ —
Interest cost 872 13 45 —
Expected return on plan assets (1,070) (21) — —
Amortization of net loss (gain) (89) 5 (48) —
Amortization of prior service cost (credit) (1) (3) (66) —
Curtailment loss (gain) 17 — — —
Non-operating $ (271) $ (6) $ (69) $ —
Net periodic expense (income) $ (228) $ 8 $ (63) $ —

In the ~~third quarter of 2023, management approved an amendment to the U.S. based GE HealthCare Pension Plan whereby the benefits for all remaining active employees will be frozen effective December~~three months ended March 31, 2024, and additional benefit enhancements were provided. As a result, we recognized a non-cash pre-tax curtailment loss of approximately $17 million as non-operating benefit costs and an increase to our pension liability of $23 million. As a result of the plan changes, we were required to remeasure the plan assets and the projected benefit obligation, these changes collectively decreased accumulated other comprehensive income (loss) by $305 million.

~~For the nine months ended September 30, 2023,~~ the Company made ~~contributions for~~cash benefit payments totaling ~~$157 million to the pension plans and $102~~$27 million to its ~~postretirement plans. During 2023,~~Principal Pension Plans, $21 million to its Other Pension Plans, and $39 million to its OPEB Plans. In 2024, the Company expects to make total ~~benefit payments~~cash contributions of approximately ~~$353~~$336 million to ~~our defined benefit pension and postretirement plans for benefit payments.~~these plans. The Company does not have a required minimum ~~cash pension~~funding contribution ~~obligation~~ for its ~~U.S. plans~~U.S.-based GE HealthCare Pension Plan in ~~2023.~~2024. Future contributions will depend on market conditions, interest rates, and other factors.

Prior to the Spin-Off, we disclosed postretirement plans with assets or obligations that exceeded $20 million. As a result of the transferred liabilities and assets to GE HealthCare on January 1, 2023, we now present postretirement plans with assets or obligations that exceed $50 million. For the year, the Company expects to contribute approximately $11 million to postretirement plans that are no longer disclosed.

Defined Contribution Plan

~~As a result of the Spin-Off,~~ GE HealthCare ~~established~~sponsors a defined contribution plan for its eligible U.S. employees ~~that was largely consistent with the plan they participated in while GE HealthCare operated as a business of GE.~~. Expenses associated with our employees’ participation in GE HealthCare’s defined contribution plan ~~in 2023 and GE’s defined contribution plan in 2022~~ ~~represent the employer matching contributions for GE HealthCare employees and were $28~~were $32 million and ~~$30~~$33 million for the three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022, respectively, and $94 million and $96 million for the nine months ended September 30, 2023 and 2022,~~ respectively.

NOTE 10. INCOME TAXES

Our effective income tax rate was ~~39.3%~~ 24.2% and ~~20.7%~~29.9% for the three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022, respectively, and~~ ~~31.4% and 23.0% for~~ ~~the nine months ended September 30, 2023 and 2022,~~ respectively. The ~~effective tax rate for 2023 is higher than the U.S. statutory rate primarily due to the cost of globa~~l activities, including the U.S. taxation on international operations, tax effect of foreign currency movement, withholding taxes, and state taxes. Benefit (provision) for income taxes for the three and nine months ended September 30, 2023 included $105 million of deferred tax provision associated with the Tax Matters Agreement (“TMA”) with GE including the effect of completing the 2022 GE U.S. federal tax return. In addition, Other (income) expense - net for the three and nine months ended September 30, 2023 included a $30 million benefit related to change in tax indemnities with GE also associated with the TMA and the effect of completing the 2022 GE U.S. federal tax return. For more information on the TMA, see Note 18, “Related Parties.”

~~The effective~~ tax rate for the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2024 and 2023 is higher than the U.S. statutory rate primarily due to the cost of global activities, including the U.S. taxation on international operations, and state taxes. The effective tax rate for the three months ended September 30, 2022 is lower than the U.S. statutory rate due to tax on foreign operations offset by the cost of global activities, including the U.S. taxation on international operationswithholding taxes, and state taxes.

~~The Company is currently being audited in a number of jurisdictions for tax years 2004-2022, including China, Egypt, France, Germany, Norway, the United Kingdom, and the U.S.~~

In the first quarter of 2023, the Company changed its accounting policy for presentation of interest expense on uncertain tax positions from within “Interest and other financial charges – net” to within “Benefit (provision) for income taxes.” See Note 1, “Organization and Basis of Presentation” for further information.

Post Spin-Off, the Company’s previously undistributed earnings ~~of certain~~ of our foreign subsidiaries are no longer indefinitely reinvested in non-U.S. businesses due to current U.S. funding needs. Therefore, in the first quarter of 2023, an incremental deferred tax liability of $30 million was recorded for withholding and other foreign taxes due upon future distribution of earnings. In addition, the Company is providing for withholding and other foreign taxes due upon future distribution of current period earnings.

~~Also,~~

The Company is currently being audited in ~~connection with~~a number of jurisdictions for tax years 2004-2022, including China, Germany, Norway, the ~~Spin-Off, our net deferred income tax assets increased by $3,099 million primarily due to transfers from GE, including $964 million related to pension~~United Kingdom, and ~~postretirement benefits, with~~ the ~~remainder primarily attributable to tax attributes that were not part of the Company’s stand-alone operations, and changes to valuation on a GE HealthCare basis.~~United States.

NOTE 11. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) – NET

Changes in Accumulated other comprehensive income (loss) (“~~AOCI~~”AOCI”) by component, net of income taxes, were as ~~follows:~~follows.

For the three months ended September 30, 2023
Currency translation adjustments(1)
Benefit plans Cash flow hedges Total AOCI
June 30, 2023 $ (1,757) $ 1,847 $ (20) $ 70
Other comprehensive income (loss) before reclasses – net of taxes of $(16), $69, and $(6)(4)
(143) (214) 18 (339)
Reclasses from AOCI – net of taxes of $0, $16, and $(1)(3)
— (50) 4 (46)
Other comprehensive income (loss) (143) (264) 22 (385)
Less: Other comprehensive income (loss) attributable to noncontrolling interests (35) — — (35)
September 30, 2023 $ (1,865) $ 1,583 $ 2 $ (280)


	For the three months ended March 31, 2024
	Currency translation adjustments(1)		Pension and Other Postretirement Plans		Cash flow hedges		Total AOCI
December 31, 2023	$	(1,706)	$	1,033	$	(18)	$	(691)
Other comprehensive income (loss) before reclassifications – net of taxes of $(7), $(1), and $(4)	(76)		2		15		(58)
Reclassifications from AOCI – net of taxes(2) of $0, $12, and $0	—		(38)		—		(37)
Other comprehensive income (loss)	(76)		(35)		16		(95)


Less: Other comprehensive income (loss) attributable to noncontrolling interests	—		—		—		—
March 31, 2024	$	(1,781)	$	997	$	(2)	$	(787)

1916

For the three months ended September 30, 2022
Currency translation adjustments Benefit plans Cash flow hedges Total AOCI
June 30, 2022 $ (1,594) $ (102) $ 47 $ (1,649)
Other comprehensive income (loss) before reclasses – net of taxes of $8, $(3), and $(9) (312) 9 22 (281)
Reclasses from AOCI – net of taxes of $0, $0, and $4(3)
— 1 (13) (12)
Other comprehensive income (loss) (312) 10 9 (293)
Less: Other comprehensive income (loss) attributable to noncontrolling interests — — — —
September 30, 2022 $ (1,906) $ (92) $ 56 $ (1,942)

For the nine months ended September 30, 2023
Currency translation adjustments(1)
Benefit plans Cash flow hedges Total AOCI
December 31, 2022 $ (1,845) $ (42) $ 9 $ (1,878)
Other comprehensive income (loss) before reclasses – net of taxes of $1, $60, and $(4)(4)
(84) (190) 10 (264)
Reclasses from AOCI – net of taxes of $0, $49, and $5(3)
— (156) (17) (173)
Other comprehensive income (loss) (84) (346) (7) (437)
Spin-Off related adjustments – net of taxes of $0, $(509), and $0(2)
28 1,972 — 2,000
Less: Other comprehensive income (loss) attributable to noncontrolling interests (36) 1 — (35)
September 30, 2023 $ (1,865) $ 1,583 $ 2 $ (280)

For the nine months ended September 30, 2022
Currency translation adjustments Benefit plans Cash flow hedges Total AOCI
December 31, 2021 $ (969) $ (100) $ 32 $ (1,037)
Other comprehensive income (loss) before reclasses – net of taxes of $(6), $(13), and $(11) (937) 7 54 (876)
Reclasses from AOCI – net of taxes of $0, $0, and $4(3)
— 1 (30) (29)
Other comprehensive income (loss) (937) 8 24 (905)
Less: Other comprehensive income (loss) attributable to noncontrolling interests — — — —
September 30, 2022 $ (1,906) $ (92) $ 56 $ (1,942)


	For the three months ended March 31, 2023
	Currency translation adjustments(1)		Pension and Other Postretirement Plans		Cash flow hedges		Total AOCI
December 31, 2022	$	(1,845)	$	(42)	$	9	$	(1,878)
Other comprehensive income (loss) before reclassifications – net of taxes of $(11), $2, and $4	57		(13)		(13)		31

Reclassifications from AOCI – net of taxes(2) of $0, $16, and $7	—		(52)		(26)		(78)
Other comprehensive income (loss)	57		(65)		(39)		(47)
Spin-Off related adjustments – net of taxes of $0, $(509), and $0	28		1,972		—		2,000
Less: Other comprehensive income (loss) attributable to noncontrolling interests	—		—		—		—
March 31, 2023	$	(1,760)	$	1,865	$	(30)	$	75

(1) The amount of ~~foreign currency~~Currency translation adjustments recognized in Other comprehensive income (loss) (“OCI”) during the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023 included net gains (losses) relating to net investment hedges, as further discussed in Note 12, “Financial Instruments and Fair Value Measurements.”

(2) Includes impact of $1,972 million to Benefit plans for unrecognized gain transferred from the GE pension and other postretirement plans and $28 million to Currency translation adjustments associated with other Spin-Off related adjustments.~~Refer to Note 9,~~ “~~Postretirement Benefit Plans~~” ~~for further information on the unrecognized gain transferred from the GE pension and other postretirement plans in connection with the Spin-Off.~~

~~(3)~~ Reclassifications from AOCI into earnings for ~~Benefit plans~~Pension and Other Postretirement Plans are recognized within Non-operating benefit (income) ~~loss,~~costs, while Cash flow hedges are recognized within Cost of products orand Cost of services in our Condensed Consolidated ~~and Combined~~ Statements of Income.

~~(4) Includes pre-tax impact to Benefit plans of $(305) million for the pension plan amendment and related remeasurement of plan assets and benefit obligations. Refer to Note 9,~~ “~~Postretirement Benefit Plans” for further information.~~

NOTE 12. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

DERIVATIVES AND HEDGING.

Our primary objective in executing and holding ~~derivatives~~derivative contracts is to reduce the volatility of earnings and cash ~~flow volatility~~flows associated with ~~fluctuations in~~risks related to foreign currency exchange rates, interest rates, equity prices, and commodity ~~prices and hedge the volatility associated with the translation of the assets and liabilities of subsidiaries with a different functional currency than USD.~~prices. These ~~hedge~~derivative contracts reduce, but do not entirely eliminate, the ~~impact of foreign currency rate, equity price,~~aforementioned risks. Our policy is to use derivative contracts solely for managing risks and ~~commodity price movements. The Company does~~ not ~~enter into or hold derivative instruments~~ for speculative ~~trading~~ purposes.

Cash Flow Hedges

~~The total amount in AOCI related to~~For derivative instruments designated as cashflow hedges, changes in the fair value of ~~foreign currency-denominated forecasted transactions was~~designated hedging instruments are initially recorded as a ~~$2 million gain, net~~component of ~~taxes, as~~AOCI and subsequently reclassified to earnings in the period in which the hedged transaction affects earnings and to the same financial statement line item impacted by the hedged transaction. As of ~~September 30, 2023. We~~March 31, 2024, we expect to reclassify ~~$10~~$3 million of pre-tax net deferred ~~gains~~losses associated with designated cash flow hedges to earnings in the next 12 months, contemporaneously with the impact on earnings ~~effects~~ of the related ~~forecasted~~hedged transactions. Pre-tax gains (losses) reclassified from AOCI into earnings were $(5) million and $17 million, for the three months ended September 30, 2023 and 2022, respectively, and $22 million and $34 million for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, the maximum length of time over which we are hedging our forecasted transactions was approximately two years.

Net Investment Hedges

~~The Company uses derivative instruments to hedge the currency risk associated with its net investment in foreign operations. The derivative instruments include~~We use cross-currency interest rate swaps and foreign currency forward contracts in combination with foreign currency option ~~contracts. As of September 30, 2023, the Company had $3,093 million gross notional of derivatives consisting mainly of $2,126 million receive-fixed USD, pay-fixed Euro (~~“~~EUR~~”~~) cross-currency swaps and $871 million notional Chinese renminbi-denominated foreign currency forward and options contracts. The Company entered into each of the forward~~ contracts concurrently with two separate foreign currency option contracts for the same notional amounts and expiration dates as the forward contracts. These instruments were each designated as the hedging instruments in net investment hedging relationships in order to ~~mitigate~~hedge the foreign currency risk ~~attributable to the translation of its~~associated with our net investment in ~~certain EUR-functional~~foreign operations. As of March 31, 2024, these contracts were designated as hedges of our net investment in foreign operations with Euro, Japanese Yen, and Chinese ~~renminbi-functional subsidiaries.~~Renminbi functional currencies.

Fair Value Hedges

We use interest rate swaps to hedge the interest rate risk on our fixed rate borrowings. These derivatives are designated as fair value hedges. In the first quarter of 2024, we executed interest rate swap contracts to hedge the benchmark interest rate risk of specific designated cash flows of our senior unsecured notes.

We record the changes in fair value on the swap contracts in Interest and other financial charges – net in our Condensed Consolidated Statements of Income, the same line item where the offsetting change in the fair value of the designated cash flows of the senior unsecured note is recorded as a basis adjustment.

Derivatives Not Designated as Hedging Instruments

We also execute derivative instruments, such as foreign currency forward contracts, equity-linked total return swaps, and commodity forward contracts that are not designated as qualifying hedges. These derivatives serve as economic hedges of the foreign currency rate risk, equity price risk and commodity price risk. We identify foreign currency-related features in our purchase or sales contracts where the currency is not the local or functional currency of a substantive party to the contract and record them as embedded derivatives.

The changes in fair value of derivatives not designated in qualifying hedge transactions are recorded in Cost of products, Cost of services, Selling, general, and administrative (“SG&A”), and Other (income) expense – net in the Condensed Consolidated Statements of Income based on the nature of the underlying hedged transaction. Changes in fair value of embedded derivatives are recognized in Other (income) expense – net in the Condensed Consolidated Statements of Income.

The following table presents the gross fair values of our outstanding derivative ~~instruments as of the dates indicated:~~instruments.


Fair Value of Derivatives	Fair Value of Derivatives
		September 30, 2023						December 31, 2022
		Gross Notional		Fair Value – Assets		Fair Value – Liabilities		Gross Notional		Fair Value – Assets		Fair Value – Liabilities
Foreign currency exchange contracts		$	1,113	$	41	$	35	$	1,240	$	32	$	53
		March 31, 2024
		March 31, 2024
		March 31, 2024															December 31, 2023
	Gross Notional													Gross Notional	Fair Value – Assets	Fair Value – Liabilities		Gross Notional	Fair Value – Assets	Fair Value – Liabilities
Foreign currency forward contracts
Derivatives accounted for as cash flow hedges	Derivatives accounted for as cash flow hedges	1,113		41		35		1,240		32		53
Cross-currency swaps		2,126		22		141		2,132		—		111
Foreign currency exchange contracts and options		967		10		9		—		—		—
Cross-currency swaps(1)
Foreign currency forward and options contracts
Derivatives accounted for as net investment hedges	Derivatives accounted for as net investment hedges	3,093		32		150		2,132		—		111
Foreign currency exchange contracts		4,436		13		29		4,456		9		20
Other derivatives(1)		441		40		1		660		25		25
Interest rate swaps(1)
Derivatives accounted for as fair value hedges
Foreign currency forward contracts
Other derivatives(2)

Derivatives not designated as hedging instruments	Derivatives not designated as hedging instruments	4,877		53		30		5,116		34		45

Derivatives not designated as hedging instruments

Derivatives not designated as hedging instruments
Total derivatives	Total derivatives	$	9,083	$	126	$	215	$	8,488	$	66	$	209

(1) Accrued interest was immaterial for the periods presented and is excluded from fair value. These amounts are recognized within All other current assets and All other current liabilities in the Condensed Consolidated Statements of Financial Position.

(2) Other derivatives are comprised of embedded derivatives and derivatives related to equity ~~contracts, and commodity derivatives.~~contracts.

The following table presents amounts recorded in Long-term borrowings in the Condensed Consolidated Statements of Financial Position related to cumulative basis adjustment for fair value hedges.


	March 31, 2024				December 31, 2023
	Carrying amount		Cumulative basis adjustment included in the carrying amount		Carrying amount		Cumulative basis adjustment included in the carrying amount
Long-term borrowings designated in fair value hedges	$	1,683	$	(13)	$	1,023	$	25

Under the master arrangements with the respective counterparties to our derivative contracts, in certain circumstances and subject to applicable requirements, we are allowed to net settle transactions with a single net amount payable by one party to the other. However, we have elected to present the derivative assets and derivative liabilities on a gross basis on our Condensed Consolidated ~~and Combined~~ Statements of Financial Position and in the table above. The fair value of the derivatives contracts is recognized within All other current assets, All other assets, All other current liabilities, and All other liabilities in the Condensed Consolidated and Combined Statements of Financial Position based upon the contractual timing of settlements for these contracts.

As of ~~September 30, 2023,~~March 31, 2024, the potential effect of rights of offset associated with the derivative contracts would be an offset to both assets and liabilities by ~~$56~~$40 million.

The table below presents the pre-tax gains (losses) recognized in OCI associated with the Company’s cash flow and net investment hedges.

											Pre-tax Gains (Losses) Recognized in OCI Related to Cash Flow and Net Investment Hedges
		For the three months ended September 30					For the nine months ended September 30
		2023		2022			2023		2022
Pre-tax Gains (Losses) Recognized in OCI Related to Cash Flow and Net Investment Hedges
Pre-tax Gains (Losses) Recognized in OCI Related to Cash Flow and Net Investment Hedges
					For the three months ended March 31							For the three months ended March 31
						2024
Cash flow hedges	Cash flow hedges	$	24	$	31		$	14	$	65
Net investment hedges		64		—			(7)		—
Cash flow hedges
Cash flow hedges
Net investment hedges(1)
Net investment hedges(1)
Net investment hedges(1)

(1) Amounts recognized in OCI for excluded components for the periods presented were immaterial.

The tables below present the gains (losses) ofon our derivative financial instruments and hedging activity in the Condensed Consolidated ~~and Combined~~ Statements of Income.

Derivative Financial Instruments
For the three months ended September 30, 2023 For the three months ended September 30, 2022
Cost of products Cost of services Selling, general and administrative
Other(2)
Cost of products Cost of services Selling, general and administrative
Other(2)
Foreign currency exchange contracts $ (5) $ (1) $ — $ — $ 13 $ 4 $ — $ —
Effects of cash flow hedges (5) (1) — — 13 4 — —
Foreign currency exchange contracts and options — — — 1 — — — —
Effects of net investment hedges — — — 1 — — — —
Foreign currency exchange contracts (38) (9) — 4 (25) (5) — 5
Other derivatives(1)
— — (2) 10 — — — 7
Effects of derivatives not designated as hedging instruments $ (38) $ (9) $ (2) $ 14 $ (25) $ (5) $ — $ 12


Derivative Financial Instruments and Hedging Activity
	For the three months ended March 31, 2024
	Cost of products		Cost of services		SG&A		Interest and other financial charges – net		Other(3)

Foreign currency forward contracts	$	(1)	$	—	$	—	$	—	$	—
Effects of cash flow hedges	(1)		—		—		—		—
Cross-currency swaps	—		—		—		8		—
Foreign currency forward and options contracts	—		—		—		2		—
Effects of net investment hedges(1)	—		—		—		10		—

Interest rate swaps(4)	—		—		—		(45)		—
Debt basis adjustment on Long-term borrowings	—		—		—		38		—

Effects of fair value hedges	—		—		—		(6)		—
Foreign currency forward contracts	(12)		(3)		—		—		—



Other derivatives(2)	—		—		5		—		20
Effects of derivatives not designated as hedging instruments	$	(12)	$	(3)	$	5	$	—	$	20

For the nine months ended September 30, 2023 For the nine months ended September 30, 2022
Cost of products Cost of services Selling, general and administrative
Other(2)
Cost of products Cost of services Selling, general and administrative
Other(2)
Foreign currency exchange contracts $ 18 $ 4 $ — $ — $ 27 $ 7 $ — $ —
Effects of cash flow hedges 18 4 — — 27 7 — —
Foreign currency exchange contracts and options — — — 1 — — — —
Effects of net investment hedges — — — 1 — — — —
Foreign currency exchange contracts (28) (6) — 10 (86) (16) — 12
Other derivatives(1)
— — 5 36 — — — 29
Effects of derivatives not designated as hedging instruments $ (28) $ (6) $ 5 $ 46 $ (86) $ (16) $ — $ 41























	For the three months ended March 31, 2023
	Cost of products		Cost of services		SG&A		Interest and other financial charges – net		Other(3)

Foreign currency forward contracts	$	27	$	6	$	—	$	—	$	—
Effects of cash flow hedges	27		6		—		—		—
Cross-currency swaps	—		—		—		9		—
Foreign currency forward and option contracts	—		—		—		—		—
Effects of net investment hedges(1)	—		—		—		9		—

Interest rate swaps	—		—		—		—		—
Debt basis adjustment on Long-term borrowings	—		—		—		—		—

Effects of fair value hedges	—		—		—		—		—
Foreign currency forward contracts	7		2		—		—		1
Other derivatives(2)	—		—		15		—		—
Effects of derivatives not designated as hedging instruments	$	7	$	2	$	15	$	—	$	1

(1) Amounts are excluded from effectiveness testing for the three months ended March 31, 2024 and 2023.

(2) Other derivatives are comprised of embedded derivatives, derivatives related to equity contracts, and commodity derivatives.

~~(2)~~(3) Amounts are inclusive of gains (losses) in Other ~~income (expense)~~ (income) expense – net ~~and Interest and other financial charges~~ – ~~net on~~in the Condensed Consolidated ~~and Combined~~ Statements of Income.

(4) Amount includes $(6) million of interest expense on interest rate derivatives.

FAIR VALUE MEASUREMENTS.

The following table represents ~~financial~~ assets and liabilities that are recorded and measured at fair value on a recurring basis.


Fair Value of Assets and Liabilities Measured on a Recurring Basis
	As of March 31, 2024								As of December 31, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Investment securities	$	28	$	—	$	—	$	28	$	31	$	—	$	—	$	31
Derivatives	—		115		—		115		—		128		—		128
Liabilities:
Deferred compensation	263		5		—		268		264		5		—		269
Derivatives	—		230		—		230		—		269		—		269
Contingent consideration	—		—		41		41		—		—		44		44

Deferred compensation

The deferred compensation liabilities as of March 31, 2024 and December 31, 2023 are comprised of market-based obligations indexed to the S&P 500 index fund and GE HealthCare stock in Level 1, and mutual funds in Level 2.

Fair Value of Financial Assets and Liabilities
As of September 30, 2023 As of December 31, 2022
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Assets:
Investment securities $ 28 $ — $ — $ 28 $ 21 $ — $ — $ 21
Derivatives — 126 — 126 — 66 — 66
Liabilities:
Deferred compensation(1)
236 3 — 239 62 2 — 64
Derivatives — 215 — 215 — 203 6 209
Contingent consideration — — 49 49 — — 42 42

~~(1) Certain deferred compensation plans whose value is derived from market-based securities values were transferred from GE as part of the Spin-Off.~~

Contingent Consideration

The contingent consideration liabilities as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022~~2023 were recorded in connection with business acquisitions.

Non-recurring Fair Value Measurements

Changes in ~~the Level 3~~ fair value ~~measurement~~measurements of ~~contingent consideration~~assets and liabilities measured at fair value on a non-recurring basis, such as equity method investments, equity investments without readily determinable fair value, financing receivables, and long-lived assets, were not material ~~during~~for the ~~nine~~three months ended ~~months ended September 30,~~March 31, 2024 and 2023.

Fair Value of Other Financial Instruments

The estimated fair value of ~~long-term debt (including the current portion)~~borrowings as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022~~2023 was ~~$10,465~~$9,807 million and ~~$8,512~~$9,959 million, respectively, compared to a carrying value (which includes a reduction for ~~amortized~~unamortized debt issuance costs and ~~discounts)~~discounts and cumulative basis adjustment) of ~~$10,260~~$9,255 million and ~~$8,241~~$9,442 million, respectively. The fair value of our borrowings includes accrued interest and is determined based on observable and quoted prices and spreads of comparable debt and benchmark securities and is considered Level 2 in the fair value hierarchy. See Note 8, “Borrowings” for further information.

~~Non-recurring Fair Value Measurements~~

~~Equity investments without readily determinable fair value as of September 30, 2023 and~~ ~~December 31, 2022~~ ~~were $129 million and $117 million, respectively.~~

NOTE 13. COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES

GUARANTEES.

The Company has off-balance sheet credit exposure through standby letters of credit, bank guarantees, bid bonds, and surety bonds. See Note 8, “Borrowings” for further information. ~~In addition, prior to Spin-Off GE had provided performance guarantees in certain jurisdictions where we lacked the legal structure to issue the requisite guarantees required on certain projects.~~

Following the Spin-Off, which was completed pursuant to a Separation and Distribution Agreement (the ~~"Separation~~“Separation and Distribution ~~Agreement"~~Agreement”), the Company has remaining performance guarantees on behalf of GE. Under the Separation and Distribution Agreement, GE is obligated to use reasonable best efforts to replace the Company as the guarantor or terminate all such performance guarantees. Until such termination or replacement, in the event of non-fulfillment of contractual obligations by the relevant obligors, the Company could be obligated to make payments under the applicable instruments for which GE is obligated to reimburse and indemnify the Company. As of ~~September 30, 2023~~March 31, 2024 the Company’s maximum aggregate exposure, subject to GE reimbursement, is approximately $114 million.

PRODUCT WARRANTIES.

We provide warranty coverage to our customers as part of customary practices in the market to provide assurance that the products we sell comply with agreed-upon specifications. We provide estimated product warranty expenses when we sell the related products. Warranty accruals are estimates that are based on the best available information, mostly historical claims experience, therefore claims costs may differ from amounts provided. An analysis of changes in the liability for product warranties follows.


Product Warranties
		For the nine months ended September 30
		2023		2022
		For the three months ended March 31

		For the three months ended March 31

		For the three months ended March 31
	2024
Balance at beginning of period
Balance at beginning of period
Balance at beginning of period	Balance at beginning of period	$	193	$	161
Current-year provisions	Current-year provisions	158		182
Current-year provisions
Current-year provisions
Expenditures
Expenditures
Expenditures	Expenditures	(159)		(151)
Other changes	Other changes	(3)		(12)
Other changes
Other changes
Balance at end of period	Balance at end of period	$	189	$	180
Balance at end of period
Balance at end of period

Product warranties are recognized within All other current liabilities in the Condensed Consolidated ~~and Combined~~ Statements of Financial Position.

LEGAL MATTERS.

In the normal course of our business, we are involved from time to time in various arbitrations; class actions; commercial, intellectual property, and product liability litigation; government investigations; investigations by competition/antitrust authorities; and other legal, regulatory, or governmental actions, including the significant matters described below that could have a material impact on our results of operations and cash flows. In many proceedings, including the specific matters described below, it is inherently difficult to determine whether any loss is probable or even reasonably possible or to estimate the size or range of the possible loss, and accruals for legal matters are not recorded until a loss for a particular matter is considered probable and reasonably estimable. Given the nature of legal matters and the complexities involved, it is often difficult to predict and determine a meaningful estimate of loss or range of loss until we know, among other factors, the particular claims involved, the likelihood of success of our defenses to those claims, the damages or other relief sought, how discovery or other procedural considerations will affect the outcome, the settlement posture of other parties, and other factors that may have a material effect on the outcome. For such matters, unless otherwise specified, we do not believe it is possible to provide a meaningful estimate of loss at this time. Moreover, it is not uncommon for legal matters to be resolved over many years, during which time relevant developments and new information must be continuously evaluated.

Contracts with Iraqi Ministry of Health

In 2017, a number of U.S. Service members, civilians, and their families brought a complaint in the U.S. District Court for the District of Columbia (the “District Court”) against a number of pharmaceutical and medical device companies, including GE HealthCare and certain affiliates, alleging that the defendants violated the U.S. Anti-Terrorism Act. The complaint seeks monetary relief and alleges that the defendants provided funding for an Iraqi terrorist organization through their sales practices pursuant to pharmaceutical and medical device contracts with the Iraqi Ministry of Health. In July 2020, the District Court granted defendants’ motions to dismiss and dismissed all of the plaintiffs’ claims. In January 2022, a panel of the U.S. Court of Appeals for the District of Columbia Circuit reversed the District Court’s decision. In February 2022, the defendants requested review of the decision by all of the judges on the U.S. Court of Appeals for the District of Columbia Circuit (the “D.C. Circuit”). In February 2023, the D.C. Circuit denied this request. Also in February 2023, defendants filed a motion for a temporary, partial stay of further district court proceedings until the Supreme Court issues its decision in a separate case, Twitter, Inc. v. Taamneh, which also involves the U.S. Anti-Terrorism Act. In March 2023, the District Court granted the motion for a temporary, partial stay. In May 2023, the Supreme Court issued its opinion in Twitter, Inc. v. Taamneh, and the stay currently remains in effect. In June 2023, defendants petitioned the Supreme Court to review the D.C. Circuit’s decision. On October 2, 2023, the Supreme Court invited the Solicitor General to file a brief in this case expressing the views of the United States. The proceedings in the District Court are currently inactive.

Government Disclosures

From time to time, we make self-disclosures regarding our compliance with the Foreign Corrupt Practices Act (“FCPA”) and similar laws to relevant authorities who may pursue or decline to pursue enforcement proceedings against us. We, with the assistance of outside counsel, made ~~voluntarily~~voluntary self-disclosures to the U.S. Securities and Exchange Commission (“SEC”) and the U.S. Department of Justice (“DOJ”) beginning in 2018 regarding tender irregularities and other potential violations of the FCPA relating to our activities in certain provinces in China. We have been engaged in ongoing discussions with each of the SEC and the DOJ regarding these matters. We are fully cooperating with the reviews by these agencies and have implemented, and continue to implement, enhancements to our compliance policies and practices. At this time, we are unable to predict the duration, scope, result, or related costs associated with these disclosures to the SEC and the DOJ. We also are unable to predict what, if any, action may be taken by the SEC or the DOJ or what penalties or remedial actions they may seek. Any determination that our operations or activities are not in compliance with existing laws or regulations, including applicable foreign laws, could result in the imposition of fines, penalties, disgorgement, equitable relief, or other losses.

NOTE 14. RESTRUCTURING AND OTHER ACTIVITIES – NET

Restructuring activities are essential to optimize the business operating model for GE HealthCare ~~as a stand-alone company~~ and mostly involve workforce reductions, organizational realignments, and revisions to our real estate footprint. Specifically, restructuring and other charges (gains) primarily include facility exit costs, employee-related termination benefits associated with workforce reductions, asset write-downs, and cease-use costs. For segment reporting, restructuring and other activities are not allocated.

~~As a result of~~For restructuring initiatives committed ~~restructuring~~to by management through March 31, 2024, including additional initiatives committed to in the three months ended March 31, 2024, we recorded net expenses of $3$40 million and ~~$88~~$12 million for the three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022 and $34 million and $110 million for the nine months ended September 30, 2023 and 2022.~~respectively. These restructuring initiatives are expected to result in additional expenses of approximately ~~$23~~$25 million, to be incurred primarily over the next 12 months, substantially related to employee-related termination benefits and ~~facility exit costs.~~asset write-downs. Restructuring expenses (gains) are recognized within Cost of products, Cost of services, or ~~Selling, general, and administrative ("~~SG~~&A"),~~&A, as appropriate, in the Condensed Consolidated ~~and Combined~~ Statements of Income.


Restructuring and Other Activities	Restructuring and Other Activities
		For the three months ended September 30						For the nine months ended September 30
		2023		2022				2023		2022
Restructuring and Other Activities
Restructuring and Other Activities
						For the three months ended March 31
						For the three months ended March 31
						For the three months ended March 31
							2024
Employee termination costs
Employee termination costs
Employee termination costs	Employee termination costs	$	1	$	28			$	26	$	46
Facility and other exit costs	Facility and other exit costs	1		38				2		42
Facility and other exit costs
Facility and other exit costs
Asset write-downs
Asset write-downs
Asset write-downs	Asset write-downs	1		22				6		22
Total restructuring and other activities – net	Total restructuring and other activities – net	$	3	$	88			$	34	$	110
Total restructuring and other activities – net
Total restructuring and other activities – net

In connection with the Spin-Off, GE transferred employee termination obligations for services already rendered of $31 million to GE HealthCare of which $5 million was remaining as of September 30, 2023. Liabilities related to restructuring are recognized within All other current liabilities, ~~and~~ All other non-current liabilities, and Compensation and benefits in the Condensed Consolidated ~~and Combined~~ Statements of Financial Position and totaled ~~$70~~$76 million and ~~$75~~$68 million as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, respectively.

~~NOTE 15. SHARE-BASED COMPENSATION~~

We grant stock options, restricted stock units (“RSU”), and performance share units (“PSU”) to employees under the 2023 Long-Term Incentive Plan (“LTIP”). The Talent, Culture, and Compensation Committee of the Board of Directors approves grants under the LTIP. Under the LTIP, we are authorized to issue up to approximately 41 million shares. We record compensation expense for awards expected to vest over the vesting period. We estimate forfeitures based on experience and adjust expense to reflect actual forfeitures. When options are exercised, RSUs vest, and PSUs are earned, we issue shares from authorized unissued common stock.

Stock options provide employees the opportunity to purchase GE HealthCare shares in the future at the market price of our stock on the date the award is granted (the strike price). The options become exercisable over the vesting period, typically becoming fully vested in ~~three~~ to three and a half years, and expire ten years from the grant date if not exercised. RSUs provide an employee the right to shares of GE HealthCare stock when the restrictions lapse over the vesting period. Upon vesting, each RSU is converted into one share of GE HealthCare common stock. PSUs provide an employee with the right to receive shares of GE HealthCare stock based upon achievement of certain performance and market metrics. Upon vesting, each PSU earned is converted into one share of GE HealthCare common stock. We value stock options using a Black-Scholes option pricing model, RSUs using the market price on the grant date, and PSUs using the market price on the grant date and a Monte Carlo simulation as needed based on performance metrics.

The following tables provide the weighted average fair value of options, RSUs, and PSUs granted to employees during the nine months ended September 30, 2023 and the related weighted average stock option valuation assumptions used in the Black-Scholes model.


~~Weighted Average Grant Date Fair Value~~
~~(In dollars)~~	~~September 30, 2023~~
~~Stock options~~	$	25
~~RSUs~~	73
~~PSUs~~	85

Key Assumptions in the Black-Scholes Valuation for Stock Options
September 30, 2023
Risk free rate 3.6 %
Dividend yield 0.01 %
Expected volatility 26.2 %
Expected term (in years) 6.2
Strike price (in dollars) $ 72

For new awards granted in 2023, the expected volatility was derived from a peer group’s blended historical and implied volatility as GE HealthCare does not have sufficient historical volatility based on the expected term of the underlying options. The expected term of the stock options was determined using the simplified method. The risk-free interest rate was determined using the implied yield currently available for zero-coupon U.S. government issues with a remaining term approximating the expected life of the options. The dividend yield input was calculated using an annualized rate based on actual dividends declared.

Share-Based Compensation Activity
Stock options RSUs
Shares (in thousands) Weighted average exercise price (in dollars) Weighted average contractual term (in years) Intrinsic value (in millions) Shares (in thousands) Weighted average grant date fair value (in dollars) Weighted average contractual term (in years) Intrinsic value (in millions)
Outstanding as of
January 4, 2023(1)
3,738 $ 90 3,551 $ 58
Granted 2,156 72 1,860 73
Exercised/Vested (524) 60 (1,201) 56
Forfeited (128) 71 (270) 65
Expired (200) 127 — —
Outstanding as of
September 30, 2023
5,042 $ 84 6.3 $ 14 3,940 $ 66 1.7 $ 268
Exercisable as of
September 30, 2023
2,852 $ 93 4.1 $ 14 N/A N/A N/A N/A
Expected to vest 1,721 $ 72 9.3 $ — 3,363 $ 59 1.7 $ 229

(1) Our common stock began “regular way” trading on Nasdaq on January 4, 2023. The shares outstanding as of January 4, 2023 pertain to GE equity-based awards issued by GE in prior periods to employees of the Company that were converted to GE HealthCare equity-based awards as part of the Spin-Off.

~~Total outstanding PSUs as of September 30, 2023 were 1,256 thousand shares. The intrinsic value and weighted average contractual term of PSUs outstanding were $85 million and 1.6 years, respectively.~~

Share-based compensation expense is recognized within Cost of products, Cost of services, SG&A, or Research and development (“R&D”), as appropriate, in the Condensed Consolidated Statement of Income.

Share-based Compensation Expense For the three months ended For the nine months ended
September 30, 2023 September 30, 2023
Share-based compensation expense (pre-tax) $ 29 $ 81
Income tax benefits (4) (15)
Share-based compensation expense (after-tax) $ 25 $ 66


~~Other Share-based Compensation Data~~

~~Unrecognized compensation expense as of September 30, 2023(1)~~	$	~~174~~
~~Cash received from stock options exercised for the nine months ended September 30, 2023~~	31
~~Intrinsic value of stock options exercised and RSU/PSUs vested in the nine months ended September 30, 2023~~	99

~~(1) Amortized over a weighted average period of 2.0 years.~~

NOTE ~~16.~~15. EARNINGS PER SHARE

On January 3, 2023, there were approximately 454 million shares of GE HealthCare common stock outstanding, including the interest in our outstanding shares of common stock retained by GE following the Distribution. The ~~computation of~~numerator for both basic and diluted earnings per share (“EPS”) is net income attributable to GE HealthCare common ~~share for all periods through December 31, 2022, was calculated using this same~~stockholders. The denominator of basic EPS is the weighted-average number of ~~common~~ shares outstanding ~~since no GE HealthCare equity awards were outstanding as of~~during the ~~Distribution Date and is net of Net (income) loss attributable to noncontrolling interest which is fully associated with continuing operations. Subsequent to the Spin-Off, the~~period. The dilutive effect of outstanding stock options, ~~RSUs,~~restricted stock units, and ~~PSUs are~~performance share units is reflected in the denominator for diluted ~~earnings per share~~EPS using the treasury stock method.

Earnings Per Share
For the three months ended September 30 For the nine months ended September 30
(In millions, except per share amounts) 2023 2022 2023 2022
Numerator:
Net income from continuing operations $ 386 $ 493 $ 1,202 $ 1,382
Net (income) loss attributable to noncontrolling interests (7) (6) (33) (32)
Net income from continuing operations attributable to GE HealthCare 379 487 1,169 1,350
Deemed preferred stock dividend of redeemable noncontrolling interest — — (183) —
Net income from continuing operations attributable to GE HealthCare common stockholders 379 487 986 1,350
Income (loss) from discontinued operations, net of taxes (4) — (4) 12
Net income attributable to GE HealthCare common stockholders $ 375 $ 487 $ 982 $ 1,362
Denominator:
Basic weighted-average shares outstanding 455 454 455 454
Dilutive effect of common stock equivalents 3 — 3 —
Diluted weighted-average shares outstanding 458 454 458 454
Basic Earnings Per Share:
Continuing operations $ 0.83 $ 1.07 $ 2.17 $ 2.97
Discontinued operations (0.01) — (0.01) 0.03
Attributable to GE HealthCare common stockholders 0.82 1.07 2.16 3.00
Diluted Earnings Per Share:
Continuing operations $ 0.83 $ 1.07 $ 2.16 $ 2.97
Discontinued operations (0.01) — (0.01) 0.03
Attributable to GE HealthCare common stockholders 0.82 1.07 2.15 3.00
Antidilutive securities(1)
4 — 4 —


Earnings Per Share
	For the three months ended March 31
(In millions, except per share amounts)	2024		2023
Numerator:
Net income	$	388	$	383
Net (income) loss attributable to noncontrolling interests	(14)		(11)
Net income attributable to GE HealthCare	374		372
Deemed preferred stock dividend of redeemable noncontrolling interest	—		(183)


Net income attributable to GE HealthCare common stockholders	$	374	$	189
Denominator:
Basic weighted-average shares outstanding	456		454
Dilutive effect of common stock equivalents	3		3
Diluted weighted-average shares outstanding	459		457

Basic earnings per share	$	0.82	$	0.42



Diluted earnings per share	$	0.81	$	0.41


Antidilutive securities(1)	4		4

(1) Diluted earnings per share excludes certain shares issuable under share-based compensation plans because the effect would have been antidilutive.

NOTE ~~17.~~16. SUPPLEMENTAL FINANCIAL INFORMATION


Cash, Cash Equivalents and Restricted Cash		As of
		September 30, 2023		December 31, 2022
Cash, Cash Equivalents, and Restricted Cash
		As of
		As of
		As of
	March 31, 2024					March 31, 2024	December 31, 2023
Cash and cash equivalents	Cash and cash equivalents	$	2,408	$	1,440
Short-term restricted cash	Short-term restricted cash	10		5
Total cash, cash equivalents, and restricted cash as presented on the Condensed Consolidated and Combined Statements of Financial Position		2,418		1,445
Total Cash, cash equivalents, and restricted cash as presented on the Condensed Consolidated Statements of Financial Position
Long-term restricted cash(1)	Long-term restricted cash(1)	2		6
Total cash, cash equivalents, and restricted cash as presented on the Condensed Consolidated and Combined Statements of Cash Flows		$	2,420	$	1,451
Total Cash, cash equivalents, and restricted cash as presented on the Condensed Consolidated Statements of Cash Flows

(1) Long-term restricted cash is recognized within All other non-current assets in the Condensed Consolidated ~~and Combined~~ Statements of Financial Position.

Inventories

As of

September 30, 2023

December 31, 2022

As of

March 31, 2024

December 31, 2023

Raw materials

989

1,053

Work in process

100

Finished goods

1,039

1,011

Inventories(1)

2,128

2,155

(1) Certain inventory items are long-term in nature and therefore have been recognized within All other non-current assets in the Condensed Consolidated ~~and Combined~~ Statements of Financial Position.

Property, Plant, and Equipment – Net

As of

September 30, 2023

December 31, 2022

As of

March 31, 2024

December 31, 2023

Original cost

5,011

4,989

Accumulated depreciation and amortization

(2,995)

(2,988)

Right-of-use operating lease assets

339

313

Accumulated depreciation

Right-of-use operating lease assets, net of amortization

Property, plant, and equipment – net

2,355

2,314

~~ALL OTHER CURRENT AND NON-CURRENT ASSETS.~~


All Other Current and Non-Current Assets
	As of
	March 31, 2024		December 31, 2023
Prepaid expenses and deferred costs	$	244	$	147
Financing receivables – net	96		97
Derivative instruments	101		84
Other(1)	75		61
All other current assets	$	517	$	389
Prepaid pension asset	727		716
Equity method and other investments	346		357
Financing receivables – net	181		178
Long-term receivables – net	130		124
Inventories	154		147
Contract and other deferred assets	175		168
Other(2)	165		191
All other non-current assets	$	1,878	$	1,881

(1) Current Other primarily consists of tax receivables.

(2) Non-current Other primarily consists of indemnities due from GE, capitalized cloud computing software, tax receivables and derivative instruments.


All Other Current and Non-Current Liabilities
	As of
	March 31, 2024		December 31, 2023
Employee compensation and benefit liabilities(1)	$	1,502	$	1,518
Sales allowances and related liabilities	208		228
Income and indirect tax liabilities including uncertain tax positions	266		260
Product warranties	175		192
Accrued freight and utilities	113		132
Operating lease liabilities	109		110
Derivative instruments(2)	110		128
Interest payable on borrowings	170		87
Environmental and asset retirement obligations	20		21
Other(3)	318		335
All other current liabilities	$	2,993	$	3,011
Contract liabilities	687		705
Operating lease liabilities	267		273
Environmental and asset retirement obligations	265		265
Income and indirect tax liabilities including uncertain tax positions	207		208
Derivative instruments	114		136
Finance lease obligations	37		38
Sales allowances and related liabilities	24		27
Other(4)	209		225
All other non-current liabilities	$	1,811	$	1,877

(1) Employee compensation and benefit liabilities consists of incentive compensation and commissions, pension and other postretirement benefit obligations, payroll accruals, other employee related liabilities, and deferred compensation.

(2) Derivative instruments include the related accrued interest. Refer to Note 12, “Financial Instruments and Fair Value Measurements” for further information.

(3) Current Other primarily consists of miscellaneous accrued costs, dividends payable to stockholders, and contingent consideration liabilities.

(4) Non-current Other primarily consists of miscellaneous accrued costs, contingent consideration liabilities, and indemnities due to GE.

All other current assets primarily include prepaid expenses and deferred costs, derivative instruments, and financing receivables – net. All other non-current assets primarily include pension assets, equity method and other investments, financing receivables – net, contract and other deferred assets, inventories, and customer and sundry receivables – net. All other current and non-current assets increased in the nine months ended September 30, 2023, primarily due to assets transferred from GE as a result of the Spin-Off. Refer to ~~Note 1, “Organization and Basis of Presentation”~~ ~~for further information.~~

~~ALL OTHER CURRENT AND NON-CURRENT LIABILITIES.~~

All other current liabilities primarily include employee compensation and benefits liabilities, sales allowances, equipment projects and other commercial liabilities, uncertain and other income tax payable, product warranties, interest payable, accrued freight and utilities, operating lease liabilities, and derivative instruments. All other non-current liabilities primarily include contract liabilities, operating lease liabilities, environmental, health and safety obligations, uncertain and other income tax payable, and derivative instruments. All other current and non-current liabilities increased in the nine months ended September 30, 2023, primarily due to liabilities transferred from GE as a result of the Spin-Off. Refer to ~~Note 1, “Organization and Basis of Presentation”~~ ~~for further information.~~

SUPPLY CHAIN FINANCE PROGRAMS.

The Company participates in voluntary supply chain finance programs which provide participating suppliers the opportunity to sell their GE HealthCare receivables to third parties at the sole discretion of both the suppliers and the third parties. We evaluate supply chain finance programs to ensure the use of a third-party intermediary to settle our trade payables does not change the nature, existence, amount, or timing of our trade payables and does not provide the Company with any direct economic benefit. If any characteristics of the trade payables change or we receive a direct economic benefit, we reclassify the trade payables as borrowings. In connection with the supply chain finance programs, payment terms normally range from 30 to 150 days, not exceeding 180 days, depending on the underlying supplier agreements.

Included in within Accounts payablein the Condensed Consolidated Statements of Financial Position as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022~~2023 were ~~$396~~$384 million and ~~$392~~$365 million, respectively, of confirmed supplier invoices that are outstanding and subject to ~~the~~ third-party programs.

REDEEMABLE NONCONTROLLING INTERESTS.

The Company has noncontrolling interests with redemption features. These redemption features, such as put options, could require the Company to purchase the noncontrolling interests upon the occurrence of certain ~~events, such as a change of control of the Company.~~events. All noncontrolling interests with redemption features that are not solely within our control are recognized within the Condensed Consolidated ~~and Combined~~ Statements of Financial Position between liabilities and equity. Redeemable noncontrolling interests are initially recorded at the issuance date fair value. Those that are currently redeemable, or probable of becoming redeemable, are subsequently adjusted to the greater of current redemption value or initial carrying value. ~~A change of control is generally not considered probable until it occurs.~~

The activity attributable to redeemable noncontrolling interests for the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ is presented below.

Redeemable Noncontrolling Interests

For the nine months ended September 30

2023

2022

Redeemable Noncontrolling Interests

For the three months ended March 31

2024

Balance at beginning of period

230

220

Net income attributable to redeemable noncontrolling interests

Redemption value adjustments(1)

183

—

Distributions to and exercise of redeemable noncontrolling interests and other(2)

(280)

(46)

Distributions to and exercise of redeemable noncontrolling interests and other(2)

Balance at end of period

161

198

Balance at end of period

(1) As of January 3, 2023, certain redeemable noncontrolling interests were probable of becoming redeemable due to the change of control that occurred upon consummation of the Spin-Off. ~~These~~As a result, these redeemable noncontrolling interests were remeasured to their current redemption ~~value resulting in a redemption value adjustment of $183 million.~~value. The remeasurement was accounted for as a deemed preferred stock dividend of redeemable noncontrolling interest and recorded as an adjustment to retained earnings.

(2) In the first quarter of 2023, the redeemable noncontrolling interest holder exercised its option redemption provision. The expected redemption ~~amount~~payment of $211 million was recognized within All other current liabilities as of March 31, 2023 and was subsequently paid out in the second quarter of 2023.


Other Income (Expense) – Net	Other Income (Expense) – Net
		For the three months ended September 30				For the nine months ended September 30
		2023		2022		2023		2022
Net interest and investment income (expense)		$	6	$	4	$	19	$	(8)
Equity method investment income		—		3		9		12
Other Income (Expense) – Net
Other Income (Expense) – Net
		For the three months ended March 31
		For the three months ended March 31
		For the three months ended March 31
		2024
		2024
		2024
Net financing income and investment income (loss)
Net financing income and investment income (loss)
Net financing income and investment income (loss)
Equity method income (loss)
Equity method income (loss)
Equity method income (loss)
Change in fair value of assumed obligations
Change in fair value of assumed obligations
Change in fair value of assumed obligations	Change in fair value of assumed obligations	(5)		—		(24)		—
Other items, net(1)	Other items, net(1)	62		11		81		59
Other items, net(1)
Other items, net(1)
Total other income (expense) – net	Total other income (expense) – net	$	63	$	18	$	85	$	63
Total other income (expense) – net
Total other income (expense) – net

(1) Other items, net primarily consists of change in tax ~~indemnity,~~indemnities with GE, lease income, gains and losses related to derivatives, and licensing and royalty income for the three ~~and nine~~ months ended ~~September 30, 2023,~~March 31, 2024, and ~~licensing and royalty~~lease income, ~~and~~ gains and losses related to derivatives, and licensing and royalty income for the three ~~and nine~~ months ended ~~September 30, 2022.~~

~~NOTE 18. RELATED PARTIES~~

~~PRIOR TO SPIN-OFF.~~

Prior to the Spin-Off, GE provided the Company with significant corporate infrastructure and shared services. Some of these services continue to be provided by GE to the Company on a temporary basis under the Transition Services Agreement, as discussed below. The following disclosures summarize related party activity between GE HealthCare and GE. This activity, which occurred prior to the Spin-Off, is included in the condensed combined financial statements.

~~Pensions, Benefit, and Contribution Plans~~

As discussed in Note 9, “Postretirement Benefit Plans”, employees of the Company participated in pensions, benefit, and contribution plans that were sponsored by GE. The Company was charged $59 million and $182 million for the three and nine months ended September 30, 2022 related to employee participation in these plans. In connection with the Spin-Off, a portion of these plans were transferred to the Company.

~~Share-based Compensation~~

GE granted various employee benefits to its group employees, including those of the Company, under the GE Long-Term Incentive Plan. These benefits primarily included stock options and restricted stock units. Compensation expense allocated to the Company was $19 million and $58 million for the three and nine months ended September 30, 2022, respectively, and is recognized within SG&A in the Condensed Combined Statement of Income.

~~Corporate Overhead and Other Allocations from GE~~

~~GE provided certain services described below that were charged to the Company based on employee headcount, revenue, or other allocation methodologies.~~March 31, 2023.

2924

Corporate Allocations from GE For the three months ended For the nine months ended
September 30, 2022 September 30, 2022
Costs for centralized services(1)
$ 12 $ 38
Costs associated with employee medical insurance(2)
31 91
Costs for corporate and shared services(3)
123 343

~~(1) Costs for centralized services such as public relations, treasury and cash management, and other services were recognized within SG&A in the Condensed Combined Statement of Income.~~

(2) Costs associated with employee medical insurance were recognized within Cost of products, Cost of services, SG&A, and R&D in the Condensed Combined Statement of Income based on the employee population.

~~(3) Costs for corporate and shared services such as information technology, finance and other services were primarily recognized in SG&A and R&D in the Condensed Combined Statement of Income.~~

Management believes that the expense and cost allocations have been determined on a basis that is a reasonable reflection of the utilization of services provided or the benefit received by the Company during the three and nine months ended September 30, 2022. The amounts that would have been, or will be incurred, on a stand-alone basis could materially differ from the amounts allocated due to economies of scale, difference in management judgment, a requirement for more or fewer employees, or other factors.

~~AFTER SPIN-OFF.~~NOTE 17. RELATED PARTIES

In connection with the Spin-Off, the Company entered into or adopted several agreements that provide a framework for the relationship between the Company and GE, including ~~but not limited to~~ the ~~following which had activity during the first nine months of 2023:~~

•~~Separation and Distribution Agreement~~ – sets forth the principal actions to be taken in connection with the Spin-Off, including the transfer of assets and assumption of liabilities, and establishes certain rights and obligations between the Company and GE following the Distribution, including procedures with respect to claims subject to indemnification and related matters.

•Transition Services Agreement – governs all matters relating to the provision of services between the Company and GE on a transitional basis. The services the Company receives include support for digital technology, human resources, supply chain, finance, and real estate services, among others. Some of these costs were included in the Corporate allocations from GE prior to Spin-Off. The services generally commenced on the date of the Spin-Off and will terminate up to 36 months following the Distribution Date depending upon the related transitional service.(“TSA”). For the three ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and 2023, we incurred ~~$94~~$53 million, net, and ~~$286~~$108 million, net, respectively, under the TSA which represents fees charged from GE to the Company primarily for information technology, human resources, and ~~R&D~~research and development and is net of fees charged from the Company to GE for facilities and other shared services.

•~~Tax Matters Agreement~~ – governs the respective rights, responsibilities, and obligations between the Company and GE with respect to all tax matters (excluding employee-related taxes covered under the Employee Matters Agreement), in addition to certain restrictions which generally prohibit us from taking or failing to take any action in the two-year period following the Distribution that would prevent the Distribution from qualifying as tax-free for U.S. federal income tax purposes, including limitations on our ability to pursue certain strategic transactions. The TMA specifies the portion of tax liability for which the Company will bear contractual responsibility, and the Company and GE will each agree to indemnify each other against any amounts for which such indemnified party is not responsible. See Note 10, “Income Taxes” for further information on quarter to date and year to date TMA activity.

Current amounts due from and to GE under the various agreements ~~described above~~ are recognized within Due from related parties or Due to related parties, as applicable, in the Condensed Consolidated ~~and Combined~~ Statements of Financial Position. Non-current amounts due from GE were ~~$82~~$80 million and $81 million, and due to GE were ~~$28~~$33 million and $33 million, as of March 31, 2024 and December 31, 2023, respectively. These amounts were recognized within All other non-current assets orand All other non-current liabilities, ~~as applicable,~~respectively, in the Condensed Consolidated ~~Statement~~Statements of Financial Position ~~as of September 30, 2023. These amounts~~and primarily relate to tax and other indemnities. For more information on these arrangements, see Note 19, “Related Parties” to the consolidated and combined financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

~~GE HealthCare sells products~~

NOTE 18. SUBSEQUENT EVENTS

On April 1, 2024, the Company acquired 100% of the stock of MIM Software Inc. (“MIM Software”) for approximately $258 million, net of cash acquired, and ~~services~~up to $35 million in cash upon the completion of certain milestones and service requirements. The acquisition was funded with cash on hand. The Company is in the ~~ordinary course~~process of ~~business to certain entities associated with two members of our Board of Directors. During~~measuring the ~~three~~acquired assets and nine months ended September 30, 2023, we recognized revenue of $26 million and $73 million, respectively, from these entities in connection with providing products and services. Current amounts due from these entitiesassumed liabilities as of ~~September 30, 2023 were not significant.~~the acquisition date. MIM Software is a global provider of medical imaging analysis and AI solutions for the practice of radiation oncology, molecular radiotherapy, diagnostic imaging, and urology at imaging centers, hospitals, specialty clinics, and research organizations worldwide. The addition of MIM Software to GE HealthCare’s portfolio is expected to strengthen the Company’s response to provider needs, supplying established solutions that are designed to help simplify, streamline, and automate essential tasks to enhance workflow.

3025

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Part I. Financial Information
Index
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)			Page
Trends and Factors Impacting Our Performance			3227
Summary of Key Performance Measures			3328
Results of Operations			3328
Results of Operations – Segments			3731
Non-GAAP Financial Measures			3832
Liquidity and Capital Resources			4136
Recently Issued Accounting Pronouncements			4337
Critical Accounting Estimates			4337

3126

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated ~~and combined~~ financial statements and corresponding notes included elsewhere in this Quarterly Report on Form 10-Q. The following discussion and analysis ~~provides~~provide information management believes to be relevant to understanding the financial condition and results of operations of GE HealthCare Technologies Inc. and its subsidiaries (“GE HealthCare,” the “Company,” “our,” “us,” or “we”) for the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 and ~~2022.~~2023. For a full understanding of our financial condition and results of operations, the below discussion should be read alongside the Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2022.~~2023. This discussion contains forward-looking statements that are based upon current expectations and are subject to uncertainty and changes in ~~circumstances.~~circumstances; see “Forward-Looking Statements.” Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed below and elsewhere in this Quarterly Report on Form 10-Q, and particularly in ~~“Item 1A.~~Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2022. Actual results may differ materially from these expectations; see “Forward-Looking Statements.”~~2023.

The following tables are presented in millions of United States ("(“U.S."”) dollars unless otherwise stated, except for per-share amounts which are presented in U.S. dollars.

~~Unless the context otherwise requires, references to “GE HealthCare,” “we,” “us,” “our,”~~ Certain columns and ~~the “Company” refer to (1) General Electric Company's ("GE's") healthcare business prior~~rows throughout this document may not sum due to the ~~previously announced spin-off~~use of rounded numbers. Percentages presented are calculated from the Company on January 3, 2023 (the “Spin-Off”) as a carve-out business of GE with related condensed combined financial statements and (2) GE HealthCare Technologies Inc. and its subsidiaries following the Spin-Off with related condensed consolidated financial statements.underlying whole-dollar amounts.

TRENDS AND FACTORS IMPACTING OUR PERFORMANCE

We believe that our performance and future success depend on a number of factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and particularly in ~~“Item 1A.~~Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2022.~~2023.

KEY TRENDS AFFECTING RESULTS OF OPERATIONS.

Russia and Ukraine Conflict

We had ~~$131~~$141 million and ~~$143~~$153 million of assets in, or directly related to, ~~these two countries~~Russia and Ukraine as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023 respectively, none of which are subject to sanctions that impact the carrying value of the assets. We generated revenues of ~~$228~~$77 million and ~~$241~~$78 million from customers in these two countries for the ~~nine~~three months ended ~~September 30,~~ March 31, 2024 and 2023, ~~and September 30, 2022,~~ respectively. The potential inability to repatriate earnings from these two countries will not have a material impact on our ability to operate.

We continue to monitor the effects of Russia’s invasion of Ukraine, including the consideration of financial impact, cybersecurity risks, the applicability and effect of sanctions, and the employee base in Ukraine and Russia. In May 2023, the U.S. Department of Commerce implemented expanded measures that ~~require~~required us to obtain a license for the export, re-export, ~~to,~~ or transfer of specified medical equipment and spare parts to customers in Russia. As of April 29, 2024, this requirement has been modified to permit us to export, re-export, or transfer medical equipment and spare parts that meet stated criteria under a License Exception, which will eliminate the need for us to obtain individual U.S. licenses in most cases. The European Union and other countries have also expanded licensing requirements for certain spare parts, services, software, and other items. We ~~have applied~~will continue to apply for licenses to supply to these customers and ~~are applying for the licenses needed~~ to ~~continue supplying these customers.~~support our business in Russia, as required. The implementation of these measures affected our ability to supply customers in Russia induring the ~~second~~first quarter of 2024 and ~~third~~the last three quarters of 2023 and will continue to do so as we confirm applicability of the new U.S. License Exception to our transactions and continue to obtain licenses. There is no guarantee we will obtain all of the licenses for which we applied, that any approvals we obtain will be on a timely basis, or that our business in Russia will not be further disrupted due to evolving legal or operational considerations. ~~Our board of directors (the "Board"),~~The Board, together with management, will continue to assess whether developments related to the conflict have had, or are reasonably likely to have, a material impact on the Company.

~~TRANSITION TO STAND-ALONE COMPANY.~~Tax Valuation Allowances

Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. We evaluate the recoverability of these future tax deductions and credits by evaluating all available positive and negative evidence. We have a valuation allowance against certain U.S. and foreign deferred tax assets and will release the valuation allowance when there is sufficient positive evidence to support a conclusion that it is more likely than not the deferred tax assets will be realized. Depending on our operating results in the future, we may release the valuation allowance associated with our Brazil deferred tax assets within the next year. The timing and amount of the valuation allowance release could vary based on our assessment of all available evidence. Release of all, or a portion, of the valuation allowance would result in the recognition of certain deferred tax assets and may result in a decrease to income tax expense for the period in which the release is recorded.

~~Financial Presentation Under GE Ownership~~

GE HealthCare utilized allocations and carve-out methodologies through the date of the Spin-Off to prepare historical condensed combined financial statements. The condensed combined financial statements herein for periods prior to the Spin-Off may not be indicative of our future performance, do not necessarily include the actual expenses that would have been incurred by us, and may not reflect our results of operations, financial position, and cash flows had we been a separate, stand-alone company during the historical periods presented. For additional information, see Note 1, “Organization and Basis of Presentation” to the condensed consolidated and combined financial statements.

3227

SUMMARY OF KEY PERFORMANCE MEASURES

Management reviews and analyzes several key performance measures including Total revenues, Remaining ~~Performance Obligations~~performance obligations (“RPO”), Operating income, Net income attributable to GE HealthCare, Earnings per share, – ~~continuing operations,~~ and Cash ~~flow~~ from ~~operations.~~(used for) operating activities. Management also reviews and analyzes Organic revenue*, Adjusted ~~Earnings Before Interest~~earnings before interest and Taxes*taxes* (“Adjusted EBIT*”), Adjusted net income*, Adjusted tax expense*, Adjusted effective tax rate* (“Adjusted ETR*”), Adjusted earnings per share*, and Free cash flow*, which are non-GAAP financial measures. These measures are reviewed and analyzed in order to evaluate our business performance, identify trends affecting our business, allocate capital, and make strategic decisions, including those discussed below. See “Results of Operations” and “Liquidity and Capital Resources” below for further discussion on our key performance measures.

The non-GAAP financial measures should be considered along with the most directly comparable U.S. ~~generally accepted accounting principles (“U.S. GAAP”)~~GAAP financial measures. Definitions of these non-GAAP financial measures, a discussion of why we believe they are useful to management and investors as well as certain of their limitations, and reconciliations to their most directly comparable U.S. GAAP financial measures are provided below under “Non-GAAP Financial Measures.”

RESULTS OF OPERATIONS

The following tables set forth our results of operations for each of the periods ~~presented:~~presented.

Condensed Consolidated and Combined Statements of Income

For the three months ended September 30 For the nine months ended September 30
2023 2022 2023 2022
Sales of products $ 3,186 $ 3,012 $ 9,530 $ 8,702
Sales of services 1,636 1,564 4,816 4,701
Total revenues 4,822 4,576 14,346 13,403
Cost of products 2,076 1,995 6,197 5,825
Cost of services 811 808 2,383 2,331
Gross profit 1,935 1,773 5,766 5,247
Selling, general, and administrative 996 908 3,130 2,747
Research and development 322 260 890 755
Total operating expenses 1,318 1,168 4,020 3,502
Operating income 617 605 1,746 1,745
Interest and other financial charges – net 138 2 411 18
Non-operating benefit (income) costs (94) (1) (332) (4)
Other (income) expense – net (63) (18) (85) (63)
Income from continuing operations before income taxes 636 622 1,752 1,794
Benefit (provision) for income taxes (250) (129) (550) (412)
Net income from continuing operations 386 493 1,202 1,382
Income (loss) from discontinued operations, net of taxes (4) — (4) 12
Net income 382 493 1,198 1,394
Net (income) loss attributable to noncontrolling interests (7) (6) (33) (32)
Net income attributable to GE HealthCare $ 375 $ 487 $ 1,165 $ 1,362


Condensed Consolidated Statements of Income
	For the three months ended March 31
	2024		2023
Sales of products	$	3,045	$	3,131
Sales of services	1,605		1,576
Total revenues	4,650		4,707
Cost of products	1,967		2,037
Cost of services	782		779
Gross profit	1,902		1,891
Selling, general, and administrative	1,038		1,062
Research and development	324		270
Total operating expenses	1,362		1,332
Operating income	540		559
Interest and other financial charges – net	122		136
Non-operating benefit (income) costs	(102)		(115)
Other (income) expense – net	8		(8)
Income before income taxes	512		546
Benefit (provision) for income taxes	(124)		(163)
Net income	388		383


Net (income) loss attributable to noncontrolling interests	(14)		(11)
Net income attributable to GE HealthCare	$	374	$	372

____________________

*Non-GAAP Financial Measure

3328

TOTAL REVENUES AND RPO.


Revenues by Segment	Revenues by Segment
		For the three months ended September 30						For the nine months ended September 30
		2023		2022		% change	% organic* change	2023		2022		% change	% organic* change
Revenues by Segment
Revenues by Segment
		For the three months ended March 31
		For the three months ended March 31
		For the three months ended March 31
		2024
		2024
		2024
Segment revenues
Segment revenues
Segment revenues	Segment revenues
Imaging	Imaging	$	2,635	$	2,516	5%		$	7,751	$	7,276	7%	9%
Imaging
Imaging
Ultrasound
Ultrasound
Ultrasound	Ultrasound	815		823		(1)%		2,513		2,466		2%	4%
PCS	PCS	764		701		9%		2,315		2,130		9%	10%
PCS
PCS
PDx
PDx
PDx	PDx	589		522		13%	12%	1,715		1,485		15%	17%
Other(1)	Other(1)	19		14				52		46
Other(1)
Other(1)
Total revenues	Total revenues	$	4,822	$	4,576	5%	6%	$	14,346	$	13,403	7%	9%
Total revenues
Total revenues

(1) Financial information not presented within the reportable segments, shown within the Other category, represents the HealthCare Financial Services ~~(“HFS”)~~ business which does not meet the definition of an operating segment.


Revenues by Region	Revenues by Region
		For the three months ended September 30					For the nine months ended September 30
		2023		2022		% change	2023		2022		% change
USCAN		$	2,075	$	2,034	2%	$	6,297	$	6,004	5%
EMEA		1,249		1,144		9%	3,633		3,354		8%
Revenues by Region
Revenues by Region
		For the three months ended March 31
		For the three months ended March 31
		For the three months ended March 31
		2024
		2024
		2024
United States and Canada (“USCAN”)
United States and Canada (“USCAN”)
United States and Canada (“USCAN”)
Europe, the Middle East, and Africa (“EMEA”)
Europe, the Middle East, and Africa (“EMEA”)
Europe, the Middle East, and Africa (“EMEA”)
China region
China region
China region	China region	719		668		8%	2,105		1,873		12%
Rest of World	Rest of World	779		730		7%	2,311		2,172		6%
Rest of World
Rest of World
Total revenues	Total revenues	$	4,822	$	4,576	5%	$	14,346	$	13,403	7%
Total revenues
Total revenues

For the three months ended ~~September 30, 2023~~March 31, 2024

Total revenues were ~~$4,822~~$4,650 million ~~growing 5%~~, decreasing 1% or ~~$246~~$57 million as reported and 6%approximately flat organically*. The reported ~~growth~~decline was primarily due to Sales of products ~~growing 6%~~decreasing 3% or ~~$174~~$86 million, asprimarily due to decreased volume following double digit reported ~~driven primarily by~~product revenue growth in ~~Imaging, PDx,~~the prior year, which benefited from improved supply chain fulfillment and ~~PCS revenues.~~

COVID-related demand.

The segment revenues were as follows:

•Imaging segment revenues were ~~$2,635~~$2,466 million, ~~growing 5%~~decreasing 1% or ~~$119~~$30 million ~~due to growth~~following double digit Organic revenue growth* in ~~Molecular Imaging and Computed Tomography (“MI/CT”) and Magnetic Resonance (“MR”) product lines, due to~~the prior year, which benefited from improved supply chain fulfillment, ~~improvements, an increase in price,~~ and ~~new product introductions;~~unfavorable foreign currency impacts;

•Ultrasound segment revenues were ~~$815~~$824 million, decreasing 1%4% or $8$35 million primarily due to ~~improved fulfillment~~decreased volume following double digit Organic revenue growth* in the ~~comparable~~ prior year, ~~following an easing of~~which benefited from improved supply chain ~~constraints;~~fulfillment and COVID-related stimulus programs;

•PCS segment revenues were ~~$764~~$747 million, ~~growing 9%~~decreasing 4% or ~~$63~~$34 million primarily due to ~~growth~~decreased volume driven by in-quarter fulfillment delays and following double digit Organic revenue growth* in ~~Monitoring Solutions and Consumables and Services product lines due to supply chain fulfillment improvements and an increase~~the prior year, which benefited from COVID-related demand in ~~price;~~China; and

•PDx segment revenues were ~~$589~~$599 million, growing ~~13%~~7% or ~~$67~~$41 million ~~as reported~~ with growth in the USCAN and EMEA regions driven by increased price, growth in volume, and ~~Rest of World due to an increase in price and improved demand.~~new product introductions.

The regional revenues were as follows:

•USCAN revenues were ~~$2,075~~$2,093 million, ~~growing 2% or $41 million due~~flat to the prior year with growth in ~~PCS revenues;~~PDx revenues largely offset by declines in other segment revenues, following high single digit growth in the prior year, which benefited from improved supply chain fulfillment;

•EMEA revenues were ~~$1,249~~$1,174 million, growing 9%1% or ~~$105~~$6 million ~~due to~~with growth in ~~Imaging,~~ PDx and Imaging revenues largely offset by decreases in PCS ~~revenues;~~and Ultrasound revenues.

•China region revenues were ~~$719~~$597 million, ~~growing 8%~~decreasing 11% or ~~$51~~$75 million with declines in all segment revenues following double digit growth in the prior year due to ~~growth in Imaging revenues, partially offset by unfavorable foreign currency impacts;~~the regional stimulus program; and

•Rest of World revenues were ~~$779~~$785 million, ~~growing 7% or $49 million~~flat to the prior year due to unfavorable foreign currency impacts offset by growth in Imaging ~~and PDx revenues, partially offset by unfavorable foreign currency impacts.~~

revenues.

____________________

*Non-GAAP Financial Measure

3429

~~For the nine months ended September 30, 2023~~

~~Total revenues were $14,346 million, growing 7% or $943 million as reported and 9% organically*. The reported growth was primarily due to Sales of products growing 10% or $828 million as reported, with growth across all segments.~~

~~The segment revenues were as follows:~~

•Imaging segment revenues were $7,751 million, growing 7% or $475 million as reported due to an increase in Organic revenue*, partially offset by unfavorable foreign currency impacts. Organic revenue* grew 9% primarily due to growth in MI/CT and MR product lines, due to supply chain fulfillment improvements, stable demand in the past few quarters, new product introductions, and an increase in price;

•Ultrasound segment revenues were $2,513 million, growing 2% or $47 million as reported due to an increase in Organic revenue*, partially offset by unfavorable foreign currency impacts. Organic revenue* grew 4% primarily due to growth in Cardiovascular and Point of Care and Handheld product lines due to new product introductions and supply chain fulfillment improvements;

•PCS segment revenues were $2,315 million, growing 9% or $185 million as reported due to an increase in Organic revenue*, partially offset by unfavorable foreign currency impacts. Organic revenue* grew 10% with growth across all product lines driven by supply chain fulfillment improvements and an increase in price; and

•PDx segment revenues were $1,715 million, growing 15% or $230 million as reported due to an increase in Organic revenue*, partially offset by unfavorable foreign currency impacts. Organic revenue* grew 17%, with growth across all regions due to an increase in price and improved demand.

~~The regional revenues were as follows:~~

•~~USCAN revenues were $6,297 million, growing 5% or $293 million due to growth across all segment revenues;~~

•~~EMEA revenues were $3,633 million, growing 8% or $279 million due to growth in Imaging and PDx revenues, partially offset by unfavorable foreign currency impacts;~~

•~~China region revenues were $2,105 million, growing 12% or $232 million due to growth across all segment revenues, partially offset by unfavorable foreign currency impacts; and~~

•~~Rest of World revenues were $2,311 million, growing 6% or $139 million due to growth in Imaging and PDx revenues, partially offset by unfavorable foreign currency impacts.~~

Remaining Performance Obligations

As of

September 30, 2023

December 31, 2022

% change

Remaining Performance Obligations

As of

March 31, 2024

December 31, 2023

% change

Products

4,865

4,992

(3)%

Services

9,297

9,351

(1)%

Services

Total RPO

14,162

14,343

(1)%

Total RPO

RPO represents the estimated revenue expected from customer contracts that are partially or fully unperformed inclusive of amounts deferred in contract liabilities, excluding contracts, or portions thereof, that provide the customer with the ability to cancel or terminate without incurring a substantive penalty. RPO as of ~~September 30, 2023~~March 31, 2024 decreased 1%2% from December 31, ~~2022,~~2023, primarily due to ~~strong product~~ fulfillment ~~driven by the U.S., China,~~ and ~~Europe as well as unfavorable foreign currency impacts.~~cancellations outpacing new contracts and renewals.

OPERATING INCOME, NET INCOME ATTRIBUTABLE TO GE HEALTHCARE, ADJUSTED EBIT*, AND ADJUSTED NET INCOME*.

For the three months ended September 30 For the nine months ended September 30
2023 % of Total revenues 2022 % of Total revenues % change 2023 % of Total revenues 2022 % of Total revenues % change
Operating income
$ 617 12.8% $ 605 13.2% 2% $ 1,746 12.2% $ 1,745 13.0% —%
Net income attributable to GE HealthCare 375 7.8% 487 10.6% (23)% 1,165 8.1% 1,362 10.2% (14)%
Adjusted EBIT* 744 15.4% 700 15.3% 6% 2,119 14.8% 2,017 15.0% 5%
Adjusted net income* 451 9.4% 546 11.9% (17)% 1,258 8.8% 1,507 11.2% (17)%

~~____________________~~

*Non-GAAP Financial Measure


	For the three months ended March 31
	2024		% of Total revenues	2023		% of Total revenues	% change
Operating income	$	540	11.6%	$	559	11.9%	(3)%
Net income attributable to GE HealthCare	374		8.0%	372		7.9%	—%
Adjusted EBIT*	681		14.7%	664		14.1%	3%
Adjusted net income*	413		8.9%	388		8.2%	6%

For the three months ended ~~September 30, 2023~~March 31, 2024

Operating income was ~~$617~~$540 million, ~~an increase of $12 million but~~ a decrease of 40$19 million and 30 basis points as a percent of Total revenues. The decrease as a percent of Total revenues was due to the following factors:

•Gross profit increased $11 million or 70 basis points as a percent of Total revenues primarily due to a reduction in Cost of products sold. Cost of products sold ~~increased $81~~decreased $70 million ~~but decreased 100~~or 50 basis points as a percent of Sales of products. The decrease as a percent of sales was driven by cost productivity and an increase in pricing of our products, partially offset by ~~continued~~ cost inflation. Cost of services sold increased $3 million but decreased ~~210~~70 basis points as a percent of Sales of services. The decrease as a percent of sales was driven by cost productivity and an increase in pricing of our service offerings, partially offset by cost inflation. Included in our total cost of revenue as part of our product investment was $101 million in engineering costs for design follow-through on new product introductions and product lifecycle maintenance subsequent to the initial product launch, compared to $110 million for the prior year comparable ~~period;~~period; and

•Total operating expenses increased ~~$150~~$30 million due to an increase in Research and Development (“R&D”) investments of $54 million, partially offset by a decrease in Selling, general, and administrative (“SG&A”) expense of ~~$88~~$24 million primarily driven by increased costs associated with both the stand-up and operation as a standalone company and commercial and marketing investments and a planned increase in Research and Development (“R&D”) investments of $62 million.corporate cost productivity, including Information Technology savings. As a result, ~~SG&A as a percentage of Total revenues increased by 90 basis points and~~ R&D as a percentage of Total revenues increased by ~~100~~120 basis points while SG&A as a percentage of Total revenues decreased by 20 basis points.

Net income attributable to GE HealthCare and Net income margin were ~~$375~~$374 million and ~~7.8%~~8.0%, ~~a decrease~~an increase of ~~$112~~$2 million and ~~280~~10 basis points, respectively, primarily due to the following factors:

•Operating income ~~increased $12~~decreased $19 million, as discussed above;

•Interest and other financial charges – net ~~increased $136~~decreased $14 million primarily driven by lower overall borrowings due to ~~interest expense related to~~ the ~~debt securities issued by GE HealthCare in November of 2022 and~~repayments made on the Term Loan ~~Facility drawn upon in January of 2023;~~Facility;

•Non-operating benefit income ~~net, increased $93~~decreased $13 million primarily related to ~~the pension plans transferred~~lower amortization of net gains on our Pension Plans;

•Other income (expense) – net decreased $16 million primarily related to ~~GE HealthCare as part of the Spin-Off;~~lower net financing and investment income; and

•Provision for income taxes ~~increased $121~~decreased $39 million primarily due to prior year results impacted by an incremental charge for the ~~tax effect~~accrual of withholding and other foreign ~~currency movement, withholding~~ taxes ~~and the impact~~due upon future distribution of ~~the Tax Matters Agreement (“TMA”) including the effect of completing the 2022 U.S. federal tax return~~.earnings. For additional detail regarding our income taxes, see Note 10, “Income Taxes” to the condensed consolidated ~~and combined~~ financial statements.

Adjusted EBIT* and Adjusted EBIT margin* were ~~$744~~$681 million and ~~15.4%~~14.7%, an increase of ~~$44~~$17 million and 1050 basis points, respectively, primarily due to ~~an increase in Total revenues, partially offset by an increase~~a decrease in Total operating expenses, ~~as discussed above,~~when excluding ~~one-time spin-off~~the impact of Restructuring and Spin-Off and separation costs.

____________________

*Non-GAAP Financial Measure

Adjusted net income* was ~~$451~~$413 million, ~~a decrease~~an increase of ~~$95~~$25 million primarily due to ~~higher Interest and other financial charges~~ – ~~net.~~

~~For~~ the ~~nine months ended September 30, 2023~~

~~Operating income was $1,746 million, an increase of $1 million but a~~ decrease ~~of 80 basis points as a percent of Total revenues. The decrease as a percent of Total revenues was due to the following factors:~~

•~~Cost of products sold increased $372 million but decreased 190 basis points as a percent of Sales of products. The decrease as a percent of sales was driven by cost productivity and an increase~~ in pricing of our products, partially offset by continued cost inflation. Cost of services sold increased $52 million but decreased 10 basis points as a percent of Sales of services. The decrease as a percent of sales was driven by cost productivity and an increase in pricing of our service offerings, largely offset by cost inflation. Included in our total cost of revenue as part of our product investment was $321 million in engineering costs for design follow-through on new product introductions and product lifecycle maintenance subsequent to the initial product launch, compared to $324 million for the ~~prior year comparable period; and~~

•Total operating expenses, ~~increased $518 million due to an increase in SG&A expense~~when excluding the impact of ~~$383 million driven by increased~~Restructuring and Spin-Off and separation costs, ~~associated with both~~and the stand-up and operation as a standalone company and commercial and marketing investments and a planned increase in R&D investments of $135 million. As a result, SG&A as a percentage of Total revenues increased by 130 basis points and R&D as a percentage of Total revenues increased by 60 basis points.

~~____________________~~

*Non-GAAP Financial Measure

~~Net income attributable to GE HealthCare and Net income margin were $1,165 million and 8.1%, a~~ decrease of ~~$197 million and 210 basis points, respectively, primarily due to the following factors:~~

•~~Operating income increased $1 million, as discussed above;~~

•Interest and other financial charges – ~~net increased $393 million primarily due to interest expense related to the debt securities issued by GE HealthCare in November of 2022 and the Term Loan Facility drawn upon in January of 2023;~~

•~~Non-operating benefit income, net, increased $328 million primarily related to the pension plans transferred to GE HealthCare as part of the Spin-Off; and~~

•~~Provision for income taxes increased $138 million primarily due to the tax effect of foreign currency movement, the impact of the TMA, including the effect of completing the 2022 U.S. federal tax return~~, and taxes accrued for the future repatriation of current earnings with a one-time charge for prior period earnings of certain of our foreign subsidiaries. For additional detail regarding our income taxes, see Note 10, “Income Taxes” to the condensed consolidated and combined financial statements.

Adjusted EBIT* and Adjusted EBIT margin* were $2,119 million and 14.8%, an increase of $102 million but a decrease of 20 basis points, respectively, primarily due to an increase in Total revenues, offset by an increase in Total operating expenses as discussed above, excluding one-time spin-off and separation costs.

Adjusted net income*~~was $1,258 million, a decrease of $249 million primarily due to higher Interest and other financial charges~~ – ~~net, partially offset by an increase in Operating Income as discussed above, excluding the impact of one-time spin-off and separation costs.~~net.

RESULTS OF OPERATIONS – SEGMENTS

We exclude from Segment EBIT certain corporate-related expenses and certain transactions or adjustments that our Chief Operating Decision Maker (which is our Chief Executive Officer) considers to be non-operational, such as Interest and other financial charges – net, Benefit (provision) for income taxes, Restructuring costs, Acquisition and ~~disposition related~~disposition-related benefits (charges), Spin-Off and separation costs, Non-operating benefit (income) costs, Gain (loss) ofon business and asset dispositions, Amortization of acquisition-related intangible assets, Net (income) loss attributable to noncontrolling interests, Income (loss) from discontinued operations, net of taxes, and Investment revaluation gain (loss). See “Results of Operations” section above for discussion on the performance of segments on revenue.


Segment EBIT	Segment EBIT
Segment EBIT
Segment EBIT
		For the three months ended March 31
		For the three months ended March 31
		For the three months ended March 31
		2024
		2024
		2024
Segment EBIT(1)
Segment EBIT(1)
Segment EBIT(1)
Imaging
Imaging
Imaging
Ultrasound
Ultrasound
Ultrasound
PCS
PCS
PCS
PDx
PDx
PDx
		For the three months ended September 30										For the nine months ended September 30
		2023		% of segment revenues		2022		% of segment revenues		% change		2023		% of segment revenues		2022		% of segment revenues		% change
Segment EBIT
Imaging		$	318	12.1	%	$	267	10.6	%	19	%	$	787	10.2	%	$	779	10.7	%	1	%
Ultrasound		179		22.0	%	211		25.6	%	(15)	%	577		23.0	%	623		25.3	%	(7)	%
PCS		80		10.5	%	65		9.3	%	23	%	273		11.8	%	211		9.9	%	29	%
PDx		166		28.2	%	159		30.5	%	4	%	473		27.6	%	411		27.7	%	15	%
Other(1)		1				(2)						9				(7)
		$	744			$	700			6	%	$	2,119			$	2,017			5	%

(1)Financial information not presented within the reportable segments, shown within the Other category, represents the HFS business and certain other business activities which do not meet the definition of an operating segment.For additional details regarding Segment EBIT, see Note 3, “Segment Information.”

For the three months ended ~~September 30, 2023~~March 31, 2024

•Imaging Segment EBIT was ~~$318~~$240 million, an increase of ~~$51~~$49 million due to cost productivity and an increase in price, ~~and growth in sales volume,~~ partially offset by ~~planned investments and~~ cost inflation;

•Ultrasound Segment EBIT was ~~$179~~$182 million, a decrease of ~~$32~~$25 million due to ~~planned investments~~cost inflation and ~~cost inflation,~~a decrease in sales volume, partially offset by cost productivity;

•PCS Segment EBIT was ~~$80~~$81 million, ~~an increase~~a decrease of ~~$15~~$28 million due to cost ~~productivity, growth~~inflation and a decrease in sales volume, ~~and an increase in price,~~ partially offset by ~~planned investments and~~ cost ~~inflation;~~productivity; and

•PDx Segment EBIT was ~~$166~~$178 million, an increase of $7$23 million due to an increase in price, cost productivity, and ~~growth~~an increase in ~~sales~~ volume, partially offset by ~~cost inflation and planned~~ investments.

____________________

*Non-GAAP Financial Measure

3731

~~For the nine months ended September 30, 2023~~

•Imaging Segment EBIT was $787 million, an increase of $8 million due to cost productivity, an increase in price, and growth in sales volume, largely offset by liquidation of higher-cost inventory, planned investments, and mix between our product and service offerings;

•~~Ultrasound Segment EBIT was $577 million, a decrease of $46 million due to planned investments and cost inflation, partially offset by cost productivity and an increase in price;~~

•PCS Segment EBIT was $273 million, an increase of $62 million due to cost productivity, an increase in price, and growth in sales volume, partially offset by planned investments and cost inflation; and

•~~PDx Segment EBIT was $473 million, an increase of $62 million due to an increase in price, growth in sales volume, and cost productivity, partially offset by cost inflation and planned investments.~~

NON-GAAP FINANCIAL MEASURES

The non-GAAP financial measures presented in this Quarterly Report on Form 10-Q are supplemental measures of our performance and our liquidity that we believe help investors understand our financial condition, cash flows, and operating results, and assess our future prospects. We believe that presenting these non-GAAP financial measures, in addition to the corresponding U.S. GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or related to our core operating results and the overall health of our company. We believe that these non-GAAP financial measures provide investors greater transparency to the information used by management for its operational decision-making and allow investors to see our results “through the eyes of management.” We further believe that providing this information assists our investors in understanding our operating performance and the methodology used by management to evaluate and measure such performance. When read in conjunction with our U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as one basis for making financial, operational, and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in our industry.

The non-GAAP financial measures we report include:

Organic revenue and Organic revenue growth rate

We believe that Organic revenue and Organic revenue growth rate, by excluding the effect of acquisitions, dispositions, and foreign currency rate fluctuations, provide management and investors with additional understanding ~~of our core, top-line operating results~~ and ~~greater~~ visibility into the underlying revenue trends of our established, ongoing operations. Organic revenue and Organic revenue growth rate also provide greater insight regarding the overall demand for our products and services.

EBIT, Adjusted EBIT, and Adjusted EBIT margin

We believe Adjusted EBIT and Adjusted EBIT margin provide management and investors with additional understanding of our business by highlighting the results from ongoing operations and the underlying profitability factors. ~~These metrics exclude~~EBIT represents our earnings excluding interest expense, interest income, earnings (loss) attributable to non-controlling interests, non-operating benefit (income) costs, and tax ~~expense, as well as~~expense. Adjusted EBIT additionally excludes non-recurring and/or non-cash items, which may have a material impact on our results. ~~In addition, we~~We may from time to time consider excluding other ~~nonrecurring~~non-recurring items to enhance comparability between periods. We believe this provides additional insight into how our businesses are performing, on a normalized basis. However, Adjusted EBIT and Adjusted EBIT margin should not be construed as inferring that our future results will be unaffected by the items for which the measure adjusts.

Adjusted net income

We believe Adjusted net income provides investors with improved comparability of underlying operating results and a further understanding and additional transparency regarding how we evaluate our business. Adjusted net income also provides management and investors with additional perspective regarding the impact of certain significant items on our earnings. Adjusted net income excludes non-operating benefit (income) costs, certain tax expense adjustments, and non-recurring and/or non-cash items, which may have a material impact on our results. ~~In addition, we~~We may from time to time consider excluding other ~~nonrecurring~~non-recurring items to enhance comparability between periods. However, Adjusted net income should not be construed as inferring that our future results will be unaffected by the items for which the measure adjusts.

Adjusted earnings per share

We believe Adjusted earnings per share provides investors with improved comparability of underlying operating results and a further understanding and additional transparency regarding how we evaluate our business. Adjusted earnings per share also provides management and investors with additional perspective regarding the impact of certain significant items on our per share earnings. Adjusted earnings per share excludes non-operating benefit (income) costs, certain tax expense adjustments, and non-recurring and/or non-cash items, which may have a material impact on our results. ~~In addition, we~~We may from time to time consider excluding other ~~nonrecurring~~non-recurring items to enhance comparability between periods. However, Adjusted earnings per share should not be construed as inferring that our future results will be unaffected by the items for which the measure adjusts.

Adjusted tax expense and Adjusted effective tax rate

We believe that Adjusted tax expense and Adjusted effective tax rate provide investors with a better understanding of the normalized tax rate applicable to our business and provide more consistent comparability across periods. Adjusted tax expense excludes the income tax related to the pre-tax income adjustments included as part of Adjusted net income and certain income tax adjustments, such as adjustments to deferred tax assets or liabilities. We may from time to time consider excluding other non-recurring tax items to enhance comparability between periods. Adjusted effective tax rate is Adjusted tax expense divided by Income before income taxes less pre-tax income adjustments detailed above in Adjusted net income. However, Adjusted tax expense and Adjusted effective tax rate should not be construed as inferring that our future results will be unaffected by the items for which the measure adjusts.

Free cash flow

We believe that Free cash flow provides management and investors with an important measure of our ability to generate cash on a normalized basis. Free cash flow also provides insight into our flexibility to allocate capital, including reinvesting in the Company for future growth, paying down debt, paying dividends, and pursuing other opportunities that may enhance stockholder value. Free cash flow is Cash from (used for) operating activities – ~~continuing operations~~ including cash flows related to the additions and dispositions of property, plant, and equipment (“PP&E”) and internal-use software as well as the impact of discontinued factoring programs. Interest expense associated with external debt that was historically held by GE is not recognized in the condensed combined financial statements and related notes.software. Additionally, Free cash flow does not represent residual cash flows available for discretionary expenditures, due to the fact that the measures do not deduct the payments required for debt repayments.

Non-GAAP Reconciliations

Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations discussed below, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers should review the reconciliations below and should not rely on any single financial measure to evaluate our business. The reconciliations of each non-GAAP financial measure to the most directly comparable U.S. GAAP financial measure are provided below.


Organic Revenue*	Organic Revenue*	For the three months ended September 30					For the nine months ended September 30
		2023		2022		% change	2023		2022		% change
Organic Revenue*
Organic Revenue*
		2024
		2024
		2024
Imaging revenues
Imaging revenues
Imaging revenues	Imaging revenues	$	2,635	$	2,516	5%	$	7,751	$	7,276	7%
Less: Acquisitions(1)	Less: Acquisitions(1)	—					—
Less: Acquisitions(1)
Less: Acquisitions(1)
Less: Dispositions(2)
Less: Dispositions(2)
Less: Dispositions(2)	Less: Dispositions(2)	—					—
Less: Foreign currency exchange	Less: Foreign currency exchange	(14)		—			(159)		—
Less: Foreign currency exchange
Less: Foreign currency exchange
Imaging Organic revenue*
Imaging Organic revenue*
Imaging Organic revenue*	Imaging Organic revenue*	$	2,649	$	2,516	5%	$	7,910	$	7,276	9%
Ultrasound revenues	Ultrasound revenues	$	815	$	823	(1)%	$	2,513	$	2,466	2%
Ultrasound revenues
Ultrasound revenues
Less: Acquisitions(1)
Less: Acquisitions(1)
Less: Acquisitions(1)	Less: Acquisitions(1)	—					—
Less: Dispositions(2)	Less: Dispositions(2)	—					—
Less: Dispositions(2)
Less: Dispositions(2)
Less: Foreign currency exchange
Less: Foreign currency exchange
Less: Foreign currency exchange	Less: Foreign currency exchange	1		—			(54)		—
Ultrasound Organic revenue*	Ultrasound Organic revenue*	$	814	$	823	(1)%	$	2,567	$	2,466	4%
Ultrasound Organic revenue*
Ultrasound Organic revenue*
PCS revenues
PCS revenues
PCS revenues	PCS revenues	$	764	$	701	9%	$	2,315	$	2,130	9%
Less: Acquisitions(1)	Less: Acquisitions(1)	—					—
Less: Acquisitions(1)
Less: Acquisitions(1)
Less: Dispositions(2)
Less: Dispositions(2)
Less: Dispositions(2)	Less: Dispositions(2)	—					—
Less: Foreign currency exchange	Less: Foreign currency exchange	1		—			(22)		—
Less: Foreign currency exchange
Less: Foreign currency exchange
PCS Organic revenue*
PCS Organic revenue*
PCS Organic revenue*	PCS Organic revenue*	$	763	$	701	9%	$	2,337	$	2,130	10%
PDx revenues	PDx revenues	$	589	$	522	13%	$	1,715	$	1,485	15%
PDx revenues
PDx revenues
Less: Acquisitions(1)
Less: Acquisitions(1)
Less: Acquisitions(1)	Less: Acquisitions(1)	—					—
Less: Dispositions(2)	Less: Dispositions(2)	—					—
Less: Dispositions(2)
Less: Dispositions(2)
Less: Foreign currency exchange
Less: Foreign currency exchange
Less: Foreign currency exchange	Less: Foreign currency exchange	2		—			(23)		—
PDx Organic revenue*	PDx Organic revenue*	$	587	$	522	12%	$	1,738	$	1,485	17%
PDx Organic revenue*
PDx Organic revenue*
Other revenues
Other revenues
Other revenues	Other revenues	$	19	$	14	36%	$	52	$	46	13%
Less: Acquisitions(1)	Less: Acquisitions(1)	—					—
Less: Acquisitions(1)
Less: Acquisitions(1)
Less: Dispositions(2)
Less: Dispositions(2)
Less: Dispositions(2)	Less: Dispositions(2)	—					—
Less: Foreign currency exchange	Less: Foreign currency exchange	—					—
Less: Foreign currency exchange
Less: Foreign currency exchange
Other Organic revenue*
Other Organic revenue*
Other Organic revenue*	Other Organic revenue*	$	19	$	14	36%	$	52	$	46	13%
Total revenues	Total revenues	$	4,822	$	4,576	5%	$	14,346	$	13,403	7%
Total revenues
Total revenues
Less: Acquisitions(1)
Less: Acquisitions(1)
Less: Acquisitions(1)	Less: Acquisitions(1)	—					—
Less: Dispositions(2)	Less: Dispositions(2)	—					—
Less: Dispositions(2)
Less: Dispositions(2)
Less: Foreign currency exchange
Less: Foreign currency exchange
Less: Foreign currency exchange	Less: Foreign currency exchange	(10)		—			(258)		—
Organic revenue*	Organic revenue*	$	4,832	$	4,576	6%	$	14,604	$	13,403	9%
Organic revenue*
Organic revenue*


(1)			Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction.
(2)			Represents revenues attributable to dispositions for the four quarters preceding the disposition date.

____________________
*Non-GAAP Financial Measure

3933


Adjusted EBIT*	Adjusted EBIT*	For the three months ended September 30					For the nine months ended September 30
		2023		2022		% change	2023		2022		% change
Adjusted EBIT*
Adjusted EBIT*
		2024
		2024
		2024
Net income attributable to GE HealthCare	Net income attributable to GE HealthCare	$	375	$	487	(23)%	$	1,165	$	1,362	(14)%
Add: Interest and other financial charges - net		138		2			411		18
Net income attributable to GE HealthCare
Net income attributable to GE HealthCare
Add: Interest and other financial charges – net
Add: Interest and other financial charges – net
Add: Interest and other financial charges – net
Add: Non-operating benefit (income) costs
Add: Non-operating benefit (income) costs
Add: Non-operating benefit (income) costs	Add: Non-operating benefit (income) costs	(94)		(1)			(332)		(4)
Less: Benefit (provision) for income taxes	Less: Benefit (provision) for income taxes	(250)		(129)			(550)		(412)
Less: Income (loss) from discontinued operations, net of taxes		(4)		—			(4)		12
Less: Benefit (provision) for income taxes
Less: Benefit (provision) for income taxes

Less: Net (income) loss attributable to noncontrolling interests

Less: Net (income) loss attributable to noncontrolling interests

Less: Net (income) loss attributable to noncontrolling interests	Less: Net (income) loss attributable to noncontrolling interests	(7)		(6)			(33)		(32)
EBIT*	EBIT*	$	680	$	623	9%	$	1,831	$	1,808	1%
EBIT*
EBIT*
Add: Restructuring costs(1)	Add: Restructuring costs(1)	3		88			34		110
Add: Acquisition and disposition related charges (benefits)(2)		(14)		(49)			(15)		(20)
Add: Restructuring costs(1)
Add: Restructuring costs(1)
Add: Acquisition and disposition-related charges (benefits)(2)
Add: Acquisition and disposition-related charges (benefits)(2)
Add: Acquisition and disposition-related charges (benefits)(2)
Add: Spin-Off and separation costs(3)	Add: Spin-Off and separation costs(3)	45		7			175		7
Add: (Gain) loss of business and asset dispositions(4)		—		2			—		(1)
Add: Spin-Off and separation costs(3)
Add: Spin-Off and separation costs(3)
Add: (Gain) loss on business and asset dispositions(4)
Add: (Gain) loss on business and asset dispositions(4)
Add: (Gain) loss on business and asset dispositions(4)
Add: Amortization of acquisition-related intangible assets
Add: Amortization of acquisition-related intangible assets
Add: Amortization of acquisition-related intangible assets	Add: Amortization of acquisition-related intangible assets	32		28			95		90
Add: Investment revaluation (gain) loss(5)	Add: Investment revaluation (gain) loss(5)	(2)		1			(1)		23
Add: Investment revaluation (gain) loss(5)
Add: Investment revaluation (gain) loss(5)
Adjusted EBIT*
Adjusted EBIT*
Adjusted EBIT*	Adjusted EBIT*	$	744	$	700	6%	$	2,119	$	2,017	5%
Net income margin	Net income margin	7.8%		10.6%		(280) bps	8.1%		10.2%		(210) bps
Net income margin
Net income margin
Adjusted EBIT margin*	Adjusted EBIT margin*	15.4%		15.3%		10 bps	14.8%		15.0%		(20) bps
Adjusted EBIT margin*
Adjusted EBIT margin*


(1)			Consists of severance, facility closures, and other charges associated with restructuring programs.
(2)			Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.
(3)			Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs.
(4)			Consists of gains and losses resulting from the sale of assets and investments.
(5)			Primarily relates to valuation adjustments for equity investments.


Adjusted Net Income*	Adjusted Net Income*	For the three months ended September 30					For the nine months ended September 30
		2023		2022		% change	2023		2022		% change
Adjusted Net Income*
Adjusted Net Income*
		2024
		2024
		2024
Net income attributable to GE HealthCare
Net income attributable to GE HealthCare
Net income attributable to GE HealthCare	Net income attributable to GE HealthCare	$	375	$	487	(23)%	$	1,165	$	1,362	(14)%
Add: Non-operating benefit (income) costs	Add: Non-operating benefit (income) costs	(94)		(1)			(332)		(4)
Add: Non-operating benefit (income) costs
Add: Non-operating benefit (income) costs
Add: Restructuring costs(1)	Add: Restructuring costs(1)	3		88			34		110
Add: Acquisition and disposition related charges (benefits)(2)		(14)		(49)			(15)		(20)
Add: Restructuring costs(1)
Add: Restructuring costs(1)
Add: Acquisition and disposition-related charges (benefits)(2)
Add: Acquisition and disposition-related charges (benefits)(2)
Add: Acquisition and disposition-related charges (benefits)(2)
Add: Spin-Off and separation costs(3)	Add: Spin-Off and separation costs(3)	45		7			175		7
Add: (Gain) loss of business and asset dispositions(4)		—		2			—		(1)
Add: Spin-Off and separation costs(3)
Add: Spin-Off and separation costs(3)
Add: (Gain) loss on business and asset dispositions(4)
Add: (Gain) loss on business and asset dispositions(4)
Add: (Gain) loss on business and asset dispositions(4)
Add: Amortization of acquisition-related intangible assets
Add: Amortization of acquisition-related intangible assets
Add: Amortization of acquisition-related intangible assets	Add: Amortization of acquisition-related intangible assets	32		28			95		90
Add: Investment revaluation (gain) loss(5)	Add: Investment revaluation (gain) loss(5)	(2)		1			(1)		23
Add: Investment revaluation (gain) loss(5)
Add: Investment revaluation (gain) loss(5)
Add: Tax effect of reconciling items
Add: Tax effect of reconciling items
Add: Tax effect of reconciling items	Add: Tax effect of reconciling items	102		(17)			103		(48)
Add: Certain tax adjustments(6)	Add: Certain tax adjustments(6)	—					30		—
Less: Income (loss) from discontinued operations, net of taxes		(4)		—			(4)		12
Add: Certain tax adjustments(6)
Add: Certain tax adjustments(6)

Adjusted net income*	Adjusted net income*	$	451	$	546	(17)%	$	1,258	$	1,507	(17)%

Adjusted net income*

Adjusted net income*


(1)			Consists of severance, facility closures, and other charges associated with restructuring programs.
(2)			Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.
(3)			Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs.
(4)			Consists of gains and losses resulting from the sale of assets and investments.
(5)			Primarily relates to valuation adjustments for equity investments.
(6)			Consists of certain income tax adjustments, including the accrual of a deferred tax liability on the prior period earnings of certain of the Company’s foreign subsidiaries for which the Company is no longer permanently ~~reinvested.~~reinvested and the impact of adjusting deferred tax assets and liabilities to stand-alone GE HealthCare tax rates.

____________________
*Non-GAAP Financial Measure

4034


Adjusted Earnings Per Share*	Adjusted Earnings Per Share*	For the three months ended September 30						For the nine months ended September 30
Adjusted Earnings Per Share*
Adjusted Earnings Per Share*
(In dollars, except shares outstanding presented in millions)	(In dollars, except shares outstanding presented in millions)	2023		2022		$ change		2023		2022		$ change
Diluted earnings per share – continuing operations		$	0.83	$	1.07	$	(0.24)	$	2.16	$	2.97	$	(0.81)
(In dollars, except shares outstanding presented in millions)
(In dollars, except shares outstanding presented in millions)
Diluted earnings per share
Diluted earnings per share
Diluted earnings per share
Add: Deemed preferred stock dividend of redeemable noncontrolling interest
Add: Deemed preferred stock dividend of redeemable noncontrolling interest
Add: Deemed preferred stock dividend of redeemable noncontrolling interest	Add: Deemed preferred stock dividend of redeemable noncontrolling interest	—		—				0.40		—
Add: Non-operating benefit (income) costs	Add: Non-operating benefit (income) costs	(0.21)		(0.00)				(0.73)		(0.01)
Add: Non-operating benefit (income) costs
Add: Non-operating benefit (income) costs
Add: Restructuring costs(1)	Add: Restructuring costs(1)	0.01		0.19				0.07		0.24
Add: Acquisition and disposition related charges (benefits)(2)		(0.03)		(0.11)				(0.03)		(0.04)
Add: Restructuring costs(1)
Add: Restructuring costs(1)
Add: Acquisition and disposition-related charges (benefits)(2)
Add: Acquisition and disposition-related charges (benefits)(2)
Add: Acquisition and disposition-related charges (benefits)(2)
Add: Spin-Off and separation costs(3)	Add: Spin-Off and separation costs(3)	0.10		0.02				0.38		0.02
Add: (Gain) loss of business and asset dispositions(4)		—		0.00				—		(0.00)
Add: Spin-Off and separation costs(3)
Add: Spin-Off and separation costs(3)
Add: (Gain) loss on business and asset dispositions(4)
Add: (Gain) loss on business and asset dispositions(4)
Add: (Gain) loss on business and asset dispositions(4)
Add: Amortization of acquisition-related intangible assets
Add: Amortization of acquisition-related intangible assets
Add: Amortization of acquisition-related intangible assets	Add: Amortization of acquisition-related intangible assets	0.07		0.06				0.21		0.20
Add: Investment revaluation (gain) loss(5)	Add: Investment revaluation (gain) loss(5)	(0.00)		0.00				(0.00)		0.05
Add: Investment revaluation (gain) loss(5)
Add: Investment revaluation (gain) loss(5)
Add: Tax effect of reconciling items
Add: Tax effect of reconciling items
Add: Tax effect of reconciling items	Add: Tax effect of reconciling items	0.22		(0.04)				0.23		(0.11)
Add: Certain tax adjustments(6)	Add: Certain tax adjustments(6)	—		—				0.07		—
Adjusted earnings per share*(7)		$	0.99	$	1.20	$	(0.21)	$	2.75	$	3.32	$	(0.57)
Add: Certain tax adjustments(6)
Add: Certain tax adjustments(6)
Adjusted earnings per share*
Adjusted earnings per share*
Adjusted earnings per share*
Diluted weighted-average shares outstanding	Diluted weighted-average shares outstanding	458		454				458		454
Diluted weighted-average shares outstanding
Diluted weighted-average shares outstanding


(1)			Consists of severance, facility closures, and other charges associated with restructuring programs.
(2)			Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.
(3)			Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs.
(4)			Consists of gains and losses resulting from the sale of assets and investments.
(5)			Primarily relates to valuation adjustments for equity investments.
(6)			Consists of certain income tax adjustments, including the accrual of a deferred tax liability on the prior period earnings of certain of the Company’s foreign subsidiaries for which the Company is no longer permanently ~~reinvested.~~
~~(7)~~			~~Adjusted earnings per share* amounts are computed independently, thus,~~reinvested and the ~~sum~~impact of ~~per-share amounts may not equal the total.~~adjusting deferred tax assets and liabilities to stand-alone GE HealthCare tax rates.

Free Cash Flow* For the nine months ended September 30
2023 2022 % change
Cash from (used for) operating activities – continuing operations
$ 1,051 $ 1,071 (2)%
Add: Additions to PP&E and internal-use software     (293) (233)
Add: Dispositions of PP&E     1 3
Free cash flow*     $ 759 $ 841 (10)%


Adjusted Tax Expense* and Adjusted ETR*	For the three months ended March 31
	2024		2023
Benefit (provision) for income taxes	$	(124)	$	(163)
Add: Tax effect of reconciling items	(9)		4
Add: Certain tax adjustments(1)	—		30
Adjusted tax expense*	$	(133)	$	(129)
Effective tax rate	24.2%		29.9%
Adjusted effective tax rate*	23.7%		24.4%


(1)			Consists of certain income tax adjustments, including the accrual of a deferred tax liability on the prior period earnings of certain of the Company’s foreign subsidiaries for which the Company is no longer permanently reinvested and the impact of adjusting deferred tax assets and liabilities to stand-alone GE HealthCare tax rates.


Free Cash Flow*	For the three months ended March 31
	2024		2023		% change
Cash from (used for) operating activities	$	419	$	468	(11)%
Add: Additions to PP&E and internal-use software	(145)		(143)
Add: Dispositions of PP&E	—		—

Free cash flow*	$	274	$	325	(16)%

____________________

*Non-GAAP Financial Measure

LIQUIDITY AND CAPITAL RESOURCES

As of ~~September 30, 2023,~~March 31, 2024, our Cash, cash equivalents, and restricted cash balance in the Condensed Consolidated Statements of Financial Position was ~~$2,418~~$2,563 million. We have historically generated positive cash flows from operating ~~activities from continuing operations.~~activities. Additionally, we have access to revolving credit facilities of $3,500 million in aggregate, described in detail in Note 8, ~~"Borrowings"~~“Borrowings” to the condensed consolidated ~~and combined~~ financial statements. ~~Historically, we relied on cash pooling arrangements with GE to manage liquidity and fund our operations. U~~pon completion of the Spin-Off, we ceased participation in GE cash pooling arrangements and our Cash, cash equivalents, and restricted cash are held and used solely for our own ongoing operations and commitments.

We believe that our existing balance of Cash, cash equivalents, and restricted cash, future cash generated from operating activities, access to capital markets, and existing credit facilities will be sufficient to meet the needs of our current and ongoing operations, pay taxes due, service our existing debt, and fund investments in our business for at least the next 12 months.

~~____________________~~

*Non-GAAP Financial Measure

The following table summarizes our cash flows for the periods presented:

Cash Flow For the nine months ended September 30
2023 2022
Cash from (used for) operating activities – continuing operations $ 1,051 $ 1,071
Cash from (used for) investing activities – continuing operations (470) (303)
Cash from (used for) financing activities – continuing operations 422 (785)
Free cash flow* 759 841


Cash Flow	For the three months ended March 31
	2024		2023
Cash from (used for) operating activities	$	419	$	468
Cash from (used for) investing activities	(188)		(266)
Cash from (used for) financing activities	(153)		673

Free cash flow*	274		325

Operating Activities

Cash generated from operating activities ~~from continuing operations was $1,051 million and $1,071 million for~~in the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 was $419 million and ~~2022, respectively.~~

~~Cash generated from operating activities in the nine months ended September 30, 2023~~ included Net income ~~from continuing operations~~ of ~~$1,202~~$388 million, non-cash charges for depreciation and amortization of ~~$466~~$148 million, and a ~~$617~~$116 million outflow from changes in assets and liabilities, primarily driven by ~~cash paid for interest for senior unsecured notes and the Term Loan Facility, and company funded~~company-funded benefit payments for postretirement benefit ~~plans.~~plans, annual prepayments, and an increase in inventory, partially offset by a decrease in receivables.

Cash generated from operating activities in the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 was $468 million and included Net income ~~from continuing operations~~ of ~~$1,382~~$383 million, non-cash charges for depreciation and amortization of ~~$476~~$157 million, and a ~~$787~~$72 million outflow from changes in assets and liabilities, primarily driven by an increase in inventory ~~higher cash taxes paid,~~ and company-funded benefit payments for postretirement benefit plans, partially offset by an increase in contract liabilities and ~~other deferred assets, partially offset by~~ an increase in accounts payable.

Investing Activities

Cash used for investing activities ~~from continuing operations~~in the three months ended March 31, 2024 was ~~$470~~$188 million and ~~$303~~primarily included additions to PP&E of $145 million ~~for the nine months ended September 30, 2023~~related mostly to manufacturing capacity expansion and ~~2022, respectively.~~new product introductions.

Cash used for investing activities in the ~~nine~~three months ended ~~September 30,~~March 31, 2023 was $266 million and primarily included additions to PP&E of ~~$293~~$143 million related ~~primarily~~mostly to new product introductions and manufacturing capacity expansion and purchases of businesses, net of cash acquired, of ~~$147~~$127 million ~~primarily~~ related to Caption Health, Inc. ~~(“Caption Health”). On February 17, 2023, we acquired Caption Health, an artificial intelligence ("AI") company whose technology expands access to AI-guided ultrasound screening for novice users.~~

Cash used for investing activities in the nine months ended September 30, 2022 primarily, included additions to PP&E of $233 million related primarily to new product introductions and manufacturing capacity expansion.

Financing Activities

Cash ~~generated from financing activities from continuing operations was $422 million for the nine months ended September 30, 2023 and cash~~ used for financing activities ~~from continuing operations was $785 million for~~in the ~~nine~~three months ended ~~September 30, 2022.~~March 31, 2024 was $153 million and primarily included a repayment of $150 million of our outstanding Term Loan Facility.

Cash generated from financing activities in the ~~nine~~three months ended ~~September 30,~~March 31, 2023 was $673 million and primarily included ~~$2,020~~$2,000 million of newly issued debt, partially offset by $1,317 ~~million of transfers to GE, and $211 million of redemption of noncontrolling interests.~~

~~Cash used for financing activities in the nine months ended September 30, 2022 primarily, included $703~~ million of transfers to GE.

Free cash flow*

Free cash flow* was ~~$759~~$274 million for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 and primarily included ~~$1,051~~$419 million of cash generated from operating activities, partially offset by ~~$293~~$145 million of cash used for ~~capital expenditures.~~additions to PP&E.

Free cash flow* was ~~$841~~$325 million for the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 and primarily included ~~$1,071~~$468 million of cash generated from operating activities, partially offset by ~~$233~~$143 million of cash used for ~~capital expenditures.~~additions to PP&E.

Capital Expenditures

Cash used for capital expenditures was ~~$293~~$145 million and ~~$233~~$143 million for the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ respectively. Capital expenditures were primarily for manufacturing capacity expansion and equipment and tooling for existing products and new ~~and existing products.~~product introductions.

~~____________________~~

*Non-GAAP Financial Measure

4236

Material Cash Requirements

In the normal course of business, we enter into contracts and commitments that obligate us to make payments in the future. Information regarding our obligations under lease, debt, and ~~purchase arrangements~~other commitments are provided in Note 8,7, “Leases,” Note 9, “Borrowings,” and Note ~~13,~~14, “Commitments, Guarantees, Product Warranties, and Other Loss ~~Contingencies,”~~Contingencies” to the ~~condensed~~ consolidated and combined financial statements contained ~~elsewhere in this Quarterly Report on Form 10-Q, as well as Note 7, “Leases,” disclosed~~ in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2022. Additionally, we~~2023. We have material cash requirements related to our pension obligations as described in Note 9, “Postretirement Benefit ~~Plans,”~~Plans” to the condensed consolidated ~~and combined~~ financial statements included elsewhere in this Quarterly Report on Form 10-Q. Additionally, on April 1, 2024, we funded the acquisition of MIM Software Inc. with cash on hand. Further information regarding this acquisition is provided in Note 18, “Subsequent Events” to the condensed consolidated financial statements.

Debt and Credit Facilities

As part of our capital structure, we have incurred debt. The servicing of this debt ~~will be~~is supported by cash flows from our operations. As of ~~September 30, 2023,~~March 31, 2024, we had ~~$10,260~~$9,255 million of total debt compared to ~~$8,250~~$9,442 million as of December 31, ~~2022.~~2023. The decrease in debt was mainly driven by a repayment of $150 million of the outstanding Term Loan Facility in the first quarter of 2024. As of March 31, 2024, there were $1,000 million of senior notes due in November 2024 recognized within Short-term borrowings in our Condensed Consolidated Statements of Financial Position.

The weighted average interest rate for the Notes and our Credit Facilities for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 was ~~6.01%~~6.08%. We had no principal debt repayments on the Notes orfor the three months ended March 31, 2024.

In addition to the Term Loan Facility, ~~for the~~ ~~nine months ended~~ ~~September 30, 2023.~~

~~Our~~our credit facilities include a five-year senior unsecured revolving facility that provides borrowings of up to $2,500 million expiring in January 2028, and a 364-day senior unsecured revolving facility that provides borrowings of up to $1,000 million expiring in ~~January~~December 2024. As of March 31, 2024, there were no outstanding borrowings on either of the two revolving facilities.

The Credit Facilities include various customary covenants that limit, among other things, the incurrence of liens securing debt, the entry into certain fundamental change transactions by GE HealthCare, and the maximum permitted leverage ratio. As of ~~September 30, 2023,~~March 31, 2024, we were in compliance with the covenant requirements, including the maximum ~~permitted~~consolidated net leverage ratio.

For additional details on debt and credit facilities, see Note 8, “~~Borrowings~~”Borrowings” to the condensed consolidated ~~and combined~~ financial statements.

Access to Capital and Credit Ratings

~~We have historically relied, via GE, on~~In connection with the ~~debt capital markets to fund a significant portion of our operations. Concurrent with our~~ Spin-Off, we accessed the capital markets and raised $10,250 million of debt by issuing $8,250 million of senior unsecured notes in November 2022, and completed a drawdown of the Term Loan Facility of $2,000 million in January 2023. In addition, we ~~were able to arrange~~arranged $3,500 million of revolving credit facilities ~~of $3,500 million~~ to further support our liquidity needs. We plan to continue to rely on capital markets, and we expect to have access to credit facilities to fund our operations. The cost and availability of debt financing will be influenced by our credit ratings and market conditions. Moody’s Investors Service (“Moody’s”), Standard and ~~Poor's~~Poor’s Global Ratings (“S&P”), and Fitch Ratings (“Fitch”) currently issue ratings on our long-term debt. Our credit ratings as of ~~the date of this filing~~April 23, 2024 are set forth in the table below.


	Moody’s	S&P	Fitch
Long-term rating	Baa2	BBB	BBB
Outlook	Stable	Stable	Stable

We are disclosing our credit ratings to enhance the understanding of our sources of liquidity and the effects of our ratings on our costs of funds and access to liquidity. Our ratings may be subject to a revision or withdrawal at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

For a discussion of recently issued accounting standards, see Note 1, “Organization and Basis of Presentation” to the condensed consolidated ~~and combined~~ financial statements appearing elsewhere in this Quarterly Report on Form 10-Q.

CRITICAL ACCOUNTING ESTIMATES

Our financial results are affected by the selection and application of accounting policies and methods. We have adopted accounting policies to prepare our condensed consolidated and combined financial statements in conformity with U.S. GAAP.

To prepare our condensed consolidated and combined financial statements in accordance with U.S. GAAP, management makes estimates and assumptions that may affect the reported amounts of our assets and liabilities, including our contingent liabilities, as of the date of our condensed consolidated and combined financial statements and the reported amounts of our revenues and expenses during the reporting periods. Our actual results may differ from these estimates. We consider estimates to be critical (1) if we are required to make assumptions about material matters that are uncertain at the time of estimation or (2) if materially different estimates could have been made or it is reasonably likely that the accounting estimate will change from period to period.

Management believes that there have been no significant changes during the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 to the items that we disclosed as our critical accounting estimates in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2022.~~2023.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risk primarily from changes in interest rates, ~~and~~ foreign currency exchange rates, commodity prices, and equity prices, which may impact future income, cash flows, and fair value of our business. ~~In certain situations, we may seek to reduce cash flow volatility associated with~~There have been no material changes in interest rates and foreign currency exchange rates by entering into financial arrangements intended to provide a hedge against a portion of the risks associated with such volatility. We continue to haveour exposure to ~~such risks to~~market risk from those disclosed in Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” in our Annual Report on Form 10-K for the ~~extent they are not hedged. We enter into derivative financial arrangements to the extent they meet the objective described above, and we do not use derivatives for trading or speculative purposes.~~

~~See Note 12, “Financial Instruments and Fair Value Measurements” for further information about our risk exposures, our use of derivatives, and the effects of this activity on our financial statements.~~fiscal year ended December 31, 2023.

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES.

Under the ~~direction~~supervision and with the participation of ~~our~~the Company’s management, including the Chief Executive Officer ~~(“CEO”)~~ and ~~our~~ Chief Financial Officer, ~~(“CFO”), we have~~the Company evaluated ~~the effectiveness of our~~its disclosure controls and procedures as ~~of September 30, 2023 (as~~ defined ~~in Rule~~under Rules 13a-15(e) and 15d-15(e) under the ~~Securities~~ Exchange ~~Act of 1934, as amended).~~Act. Based on ~~their~~this evaluation, ~~our CEO~~the Chief Executive Officer and ~~CFO~~Chief Financial Officer concluded that ~~as of September 30, 2023, our~~the Company’s disclosure controls and procedures were ~~effective.~~effective as of March 31, 2024, and that the information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

~~We relied on certain material processes and~~CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING.

During the quarter ended March 31, 2024, the Company continued to exit from various transition service agreements with GE related to IT systems that impact financial reporting. Consequently, responsibility for execution of related internal controls ~~over financial reporting performed by GE prior~~transferred to the ~~Spin-Off. Following~~Company. Other than those discussed in the Spin-Off, new corporate and governance functions were implemented in order to meet the regulatory requirements of a standalone public company, such as external reporting, treasury, and stock administration. Therepreceding sentence, there were no changes in ~~our~~the Company’s internal control over financial reporting that occurred during the quarter ended ~~September 30, 2023~~March 31, 2024 that ~~have~~ materially affected or are reasonably likely to materially affect ~~our~~the Company’s internal control over financial reporting.

INHERENT LIMITATIONS ON EFFECTIVENESS OF CONTROLS.

All internal control systems have inherent limitations; as such, they may not prevent or detect all misstatements or all fraud. Therefore, even those internal control systems determined to be effective can provide only reasonable assurance with respect to financial statements preparation and reporting. Additionally, projections of any evaluation of effectiveness to future periods are subject to the risk that the current control structure may become inadequate for changes in conditions or the degree of compliance with the policies may deteriorate.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Information on material pending legal proceedings is incorporated herein by reference to the information set forth in Note 13, “Commitments, Guarantees, Product Warranties, and Other Loss Contingencies” to the ~~condensed consolidated and combined~~ financial statements included elsewhere in this Quarterly Report on Form 10-Q.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2022.~~2023.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no unregistered sales of equity securities during the period covered by this report.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

~~None.~~

DIRECTOR AND OFFICER TRADING ARRANGEMENTS.

44None of our directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement (as defined in Item 408(c) of Regulation S-K) during the quarterly period covered by this report.

ITEM 6. EXHIBITS


Number			Description
3.1			Certificate of Incorporation of the Registrant (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 29, 2022).
3.2			Bylaws of the Registrant (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 29, 2022).
10.1			~~Separa~~2024 ~~tion~~GE H ealthCare Restricted S to ck Unit Grant Agreement ~~& Release between the Registrant and Helmut Zodl,~~.
10.2			2024 G E HealthCare Stock Option Grant Agreement.
10.3			2024 G E HealthCare Performance Stock Unit Grant A greement.
10.4			2024 G lobal Addendum.
10.5			O ffer Letter with Taha Kass-Hout, dated ~~August 18, 2023.~~September 9, 2 †022.
31.1			Certification of the ~~Registrant's~~Registrant ’s Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2			Certification of the ~~Registrant's~~Registrant ’s Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1			Certifications of the ~~Registrant's~~Registrant ’s Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101			The following materials from GE HealthCare Technologies Inc.’s Quarterly Report on Form 10-Q for the quarter ended ~~September 30, 2023,~~March 31, 2024, formatted in inline XBRL (eXtensible Business Reporting Language); (1) Condensed Consolidated ~~and Combined~~ Statements of Income for the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 and ~~2022;~~2023; (2) Condensed Consolidated ~~and Combined~~ Statements of Comprehensive Income (Loss) for the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 and ~~2022;~~2023; (3) Condensed Consolidated ~~and Combined~~ Statements of Financial Position ~~at September 30, 2023~~as of March 31, 2024 and December 31, ~~2022;~~2023; (4) Condensed Consolidated ~~and Combined~~ Statements of Changes in Equity for the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 and ~~2022;~~2023; (5) Condensed Consolidated ~~and Combined~~ Statements of Cash Flows for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 and ~~2022;~~2023; and (6) Notes to the Condensed Consolidated ~~and Combined~~ Financial Statements.
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
†			Certain portions of this exhibit have been redacted pursuant to Item 601(b)(2)(ii) and Item 601(b)(10)(iv) of Regulation S-K, as applicable. The Company agrees to furnish supplementally an unredacted copy of the exhibit to the Securities and Exchange Commission upon its request.

4539

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the ~~registrant~~Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


						GE HealthCare Technologies Inc.
						(Registrant)

~~October 31, 2023~~April 30, 2024						/s/ George A. Newcomb
Date						George A. Newcomb, Controller & Chief Accounting Officer (authorized signatory)

4640


Goodwill
	Balance as of December 31, 2022		Acquisitions		Foreign exchange and other		Balance as of September 30, 2023
Imaging(1)	$	4,409	$	16	$	(3)	$	4,422
Ultrasound	3,835		94		(6)		3,923
PCS	2,036		—		—		2,036
PDx	2,533		—		—		2,533
Total Goodwill	$	12,813	$	110	$	(9)	$	12,914


Long-Term Borrowings Composition
	As of
	September 30, 2023		December 31, 2022
5.550% senior notes due November 15, 2024	$	1,000	$	1,000
5.600% senior notes due November 15, 2025	1,500		1,500
5.650% senior notes due November 15, 2027	1,750		1,750
5.857% senior notes due March 15, 2030	1,250		1,250
5.905% senior notes due November 22, 2032	1,750		1,750
6.377% senior notes due November 22, 2052	1,000		1,000
Floating rate Term Loan Facility	2,000		—
Other	51		38
Total principal debt issued	10,301		8,288
Less: Unamortized debt issuance costs and discounts	41		47
Less: Current portion of long-term borrowings	7		7
Long-term borrowings, net of current portion	$	10,253	$	8,234


Accumulated Benefit Obligations and Unrecognized Gain
	As of January 1, 2023
	Defined benefit plans		Other postretirement plans		Total
Accumulated benefit obligations	$	21,696	$	1,210	$	22,906

Unrecognized gain to be recorded in AOCI	1,258		1,223		2,481


Net Benefit Liability
	As of January 1, 2023
	Defined benefit plans		Other postretirement plans		Total
Projected benefit obligations	$	21,743	$	1,210	$	22,953
Fair value of assets	18,908		—		18,908
Net liability	$	2,835	$	1,210	$	4,045


	For the three months ended September 30, 2023
	Currency translation adjustments(1)		Benefit plans		Cash flow hedges		Total AOCI
June 30, 2023	$	(1,757)	$	1,847	$	(20)	$	70
Other comprehensive income (loss) before reclasses – net of taxes of $(16), $69, and $(6)(4)	(143)		(214)		18		(339)

Reclasses from AOCI – net of taxes of $0, $16, and $(1)(3)	—		(50)		4		(46)


Other comprehensive income (loss)	(143)		(264)		22		(385)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	(35)		—		—		(35)
September 30, 2023	$	(1,865)	$	1,583	$	2	$	(280)


	For the three months ended September 30, 2022
	Currency translation adjustments		Benefit plans		Cash flow hedges		Total AOCI
June 30, 2022	$	(1,594)	$	(102)	$	47	$	(1,649)
Other comprehensive income (loss) before reclasses – net of taxes of $8, $(3), and $(9)	(312)		9		22		(281)

Reclasses from AOCI – net of taxes of $0, $0, and $4(3)	—		1		(13)		(12)


Other comprehensive income (loss)	(312)		10		9		(293)
Less: Other comprehensive income (loss) attributable to noncontrolling interests	—		—		—		—
September 30, 2022	$	(1,906)	$	(92)	$	56	$	(1,942)


Derivative Financial Instruments
	For the three months ended September 30, 2023								For the three months ended September 30, 2022
	Cost of products		Cost of services		Selling, general and administrative		Other(2)		Cost of products		Cost of services		Selling, general and administrative		Other(2)

Foreign currency exchange contracts	$	(5)	$	(1)	$	—	$	—	$	13	$	4	$	—	$	—
Effects of cash flow hedges	(5)		(1)		—		—		13		4		—		—

Foreign currency exchange contracts and options	—		—		—		1		—		—		—		—
Effects of net investment hedges	—		—		—		1		—		—		—		—
Foreign currency exchange contracts	(38)		(9)		—		4		(25)		(5)		—		5



Other derivatives(1)	—		—		(2)		10		—		—		—		7
Effects of derivatives not designated as hedging instruments	$	(38)	$	(9)	$	(2)	$	14	$	(25)	$	(5)	$	—	$	12


Fair Value of Financial Assets and Liabilities
	As of September 30, 2023								As of December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Investment securities	$	28	$	—	$	—	$	28	$	21	$	—	$	—	$	21
Derivatives	—		126		—		126		—		66		—		66
Liabilities:
Deferred compensation(1)	236		3		—		239		62		2		—		64
Derivatives	—		215		—		215		—		203		6		209
Contingent consideration	—		—		49		49		—		—		42		42


Key Assumptions in the Black-Scholes Valuation for Stock Options
	September 30, 2023
Risk free rate	3.6		%
Dividend yield	0.01		%
Expected volatility	26.2		%
Expected term (in years)	6.2
Strike price (in dollars)	$	72


Share-Based Compensation Activity
	Stock options						RSUs
	Shares (in thousands)	Weighted average exercise price (in dollars)		Weighted average contractual term (in years)	Intrinsic value (in millions)		Shares (in thousands)	Weighted average grant date fair value (in dollars)		Weighted average contractual term (in years)	Intrinsic value (in millions)
Outstanding as of January 4, 2023(1)	3,738	$	90				3,551	$	58
Granted	2,156	72					1,860	73
Exercised/Vested	(524)	60					(1,201)	56
Forfeited	(128)	71					(270)	65
Expired	(200)	127					—	—
Outstanding as of September 30, 2023	5,042	$	84	6.3	$	14	3,940	$	66	1.7	$	268
Exercisable as of September 30, 2023	2,852	$	93	4.1	$	14	N/A	N/A		N/A	N/A
Expected to vest	1,721	$	72	9.3	$	—	3,363	$	59	1.7	$	229


Share-based Compensation Expense	For the three months ended		For the nine months ended
	September 30, 2023		September 30, 2023



Share-based compensation expense (pre-tax)	$	29	$	81
Income tax benefits	(4)		(15)
Share-based compensation expense (after-tax)	$	25	$	66


Corporate Allocations from GE	For the three months ended		For the nine months ended
	September 30, 2022		September 30, 2022
Costs for centralized services(1)	$	12	$	38
Costs associated with employee medical insurance(2)	31		91
Costs for corporate and shared services(3)	123		343