Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 18, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-41528 | |
Entity Registrant Name | GE HEALTHCARE TECHNOLOGIES INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 88-2515116 | |
Entity Address, Address Line One | 500 W. Monroe Street | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60661 | |
City Area Code | 833 | |
Local Phone Number | 735-1139 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | GEHC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 454,677,236 | |
Amendment Flag | false | |
Entity Central Index Key | 0001932393 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated and Comb
Condensed Consolidated and Combined Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue | $ 4,707 | $ 4,343 |
Gross profit | 1,891 | 1,678 |
Selling, general, and administrative | 1,062 | 931 |
Research and development | 270 | 238 |
Total operating expenses | 1,332 | 1,169 |
Operating income (loss) | 559 | 509 |
Interest and other financial charges – net | 136 | 4 |
Non-operating benefit (income) costs | (115) | (2) |
Other (income) expense – net | (8) | (26) |
Income from continuing operations before income taxes | 546 | 533 |
Benefit (provision) for income taxes | (163) | (131) |
Net income | 383 | 402 |
Net (income) attributable to noncontrolling interests | (11) | (13) |
Net income attributable to GE HealthCare | 372 | 389 |
Deemed preferred stock dividend of redeemable noncontrolling interest | (183) | 0 |
Net income attributable to GE HealthCare common stockholders | $ 189 | $ 389 |
Earnings per share: | ||
Basic earnings per share (in dollars per share) | $ 0.42 | $ 0.86 |
Diluted earnings per share (in dollars per share) | $ 0.41 | $ 0.86 |
Weighted-average number of shares outstanding: | ||
Basic (in shares) | 454 | 454 |
Diluted (in shares) | 457 | 454 |
Products | ||
Revenue | $ 3,131 | $ 2,787 |
Cost of revenue | 2,037 | 1,914 |
Services | ||
Revenue | 1,576 | 1,556 |
Cost of revenue | $ 779 | $ 751 |
Condensed Consolidated and Co_2
Condensed Consolidated and Combined Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income attributable to GE HealthCare | $ 372 | $ 389 |
Net (income) attributable to noncontrolling interests | 11 | 13 |
Net income | 383 | 402 |
Other comprehensive income (loss): | ||
Currency translation adjustments – net of taxes | 57 | (153) |
Benefit plans – net of taxes | (65) | (5) |
Cash flow hedges – net of taxes | (39) | 24 |
Other comprehensive income (loss) | (47) | (134) |
Comprehensive income | 336 | 268 |
Comprehensive (income) attributable to noncontrolling interests | (11) | (13) |
Comprehensive income attributable to GE HealthCare | $ 325 | $ 255 |
Condensed Consolidated and Co_3
Condensed Consolidated and Combined Statements of Financial Position (Unaudited) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Cash, cash equivalents, and restricted cash | $ 2,327 | $ 1,445 |
Receivables – net of allowances of $91 and $91 | 3,373 | 3,295 |
Due from related parties | 31 | 17 |
Inventories | 2,256 | 2,155 |
Contract and other deferred assets | 983 | 989 |
All other current assets | 634 | 417 |
Current assets | 9,604 | 8,318 |
Property, plant, and equipment – net | 2,327 | 2,314 |
Goodwill | 12,924 | 12,813 |
Other intangible assets – net | 1,494 | 1,520 |
Deferred income taxes | 4,336 | 1,550 |
All other assets | 1,952 | 1,024 |
Total assets | 32,637 | 27,539 |
Short-term borrowings | 5 | 15 |
Accounts payable | 2,977 | 2,944 |
Due to related parties | 186 | 146 |
Contract liabilities | 2,031 | 1,896 |
All other current liabilities | 3,037 | 2,190 |
Current liabilities | 8,236 | 7,191 |
Long-term borrowings | 10,234 | 8,234 |
Compensation and benefits | 5,372 | 549 |
Deferred income taxes | 64 | 370 |
All other liabilities | 1,834 | 1,603 |
Total liabilities | 25,740 | 17,947 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 201 | 230 |
Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 454,617,131 shares issued and outstanding as of March 31, 2023; 100 shares issued and outstanding as of December 31, 2022 | 5 | 0 |
Additional paid-in capital | 6,425 | 0 |
Retained earnings | 185 | 0 |
Net parent investment | 0 | 11,235 |
Accumulated other comprehensive income (loss) – net | 75 | (1,878) |
Total equity attributable to GE HealthCare | 6,690 | 9,357 |
Noncontrolling interests | 6 | 5 |
Total equity | 6,696 | 9,362 |
Total liabilities, redeemable noncontrolling interests, and equity | $ 32,637 | $ 27,539 |
Condensed Consolidated and Co_4
Condensed Consolidated and Combined Statements of Financial Position (Unaudited) (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 91 | $ 91 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, issued (in shares) | 454,617,131 | 100 |
Common stock, outstanding (in shares) | 454,617,131 | 100 |
Condensed Consolidated and Co_5
Condensed Consolidated and Combined Statements of Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Retained earnings | Net parent investment | Accumulated other comprehensive income (loss) – net | Equity attributable to noncontrolling interests |
Equity, beginning balance (in shares) at Dec. 31, 2021 | 0 | ||||||
Equity, beginning balance at Dec. 31, 2021 | $ 16,676 | $ 0 | $ 0 | $ 0 | $ 17,692 | $ (1,037) | $ 21 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to GE HealthCare | 389 | 389 | |||||
Currency translation adjustments – net of taxes | (153) | (153) | |||||
Benefit plans – net of taxes | (5) | (5) | |||||
Cash flow hedges – net of taxes | 24 | 24 | |||||
Transfers (to) from GE | (353) | (353) | |||||
Changes in equity attributable to noncontrolling interests | 0 | ||||||
Equity, ending balance (in shares) at Mar. 31, 2022 | 0 | ||||||
Equity, ending balance at Mar. 31, 2022 | $ 16,578 | $ 0 | 0 | 0 | 17,728 | (1,171) | 21 |
Equity, beginning balance (in shares) at Dec. 31, 2022 | 100 | 0 | |||||
Equity, beginning balance at Dec. 31, 2022 | $ 9,362 | $ 0 | 0 | 0 | 11,235 | (1,878) | 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net transfers from Parent, including Spin-Off-related adjustments | (2,834) | (4,833) | 2,000 | (1) | |||
Issuance of common stock in connection with the Spin-Off and reclassification of net parent investment (in shares) | 454,000,000 | ||||||
Issuance of common stock in connection with the Spin-Off and reclassification of net parent investment | 0 | $ 5 | 6,397 | (6,402) | |||
Issuance of common stock in connection with employee stock plans (in shares) | 1,000,000 | ||||||
Issuance of common stock in connection with employee stock plans | 4 | 4 | |||||
Net income attributable to GE HealthCare | 372 | 372 | |||||
Currency translation adjustments – net of taxes | 57 | 57 | |||||
Benefit plans – net of taxes | (65) | (65) | |||||
Cash flow hedges – net of taxes | (39) | (39) | |||||
Changes in equity attributable to noncontrolling interests | 2 | 2 | |||||
Share-based compensation expense | 24 | 24 | |||||
Changes in equity due to redemption value adjustments on redeemable noncontrolling interests | $ (187) | (187) | |||||
Equity, ending balance (in shares) at Mar. 31, 2023 | 454,617,131 | 455,000,000 | |||||
Equity, ending balance at Mar. 31, 2023 | $ 6,696 | $ 5 | $ 6,425 | $ 185 | $ 0 | $ 75 | $ 6 |
Condensed Consolidated and Co_6
Condensed Consolidated and Combined Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows - operating activities | ||
Net income | $ 383 | $ 402 |
Adjustments to reconcile Net income to Cash from (used for) operating activities | ||
Depreciation and amortization of property, plant, and equipment | 61 | 56 |
Amortization of acquisition-related intangible assets | 96 | 103 |
Net periodic postretirement benefit plan (income) expense | (101) | 3 |
Postretirement plan contributions | (91) | (6) |
Provision for income taxes | 163 | 131 |
Share-based compensation | 24 | 19 |
Cash paid during the year for income taxes | (102) | (203) |
Cash paid during the year for interest | (42) | 0 |
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions: | ||
Receivables | (22) | (139) |
Due from related parties | 5 | (5) |
Inventories | (122) | (244) |
Contract and other deferred assets | 12 | (34) |
Accounts payable | 87 | 319 |
Due to related parties | 6 | 16 |
Contract liabilities | 119 | 77 |
All other operating activities | (8) | (27) |
Cash from (used for) operating activities | 468 | 468 |
Cash flows – investing activities | ||
Additions to property, plant, and equipment | (143) | (100) |
Dispositions of property, plant, and equipment | 0 | 3 |
Purchases of businesses, net of cash acquired | (127) | 0 |
All other investing activities | 4 | (3) |
Cash from (used for) investing activities | (266) | (100) |
Cash flows – financing activities | ||
Net increase (decrease) in borrowings (maturities of 90 days or less) | (9) | 2 |
Newly issued debt, net of debt issuance costs (maturities longer than 90 days) | 2,000 | 0 |
Repayments and other reductions (maturities longer than 90 days) | (6) | (1) |
Net transfers (to) from GE | (1,317) | (391) |
All other financing activities | 5 | (30) |
Cash from (used for) financing activities | 673 | (420) |
Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash | 8 | (3) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 883 | (55) |
Cash, cash equivalents, and restricted cash at beginning of year | 1,451 | 561 |
Cash, cash equivalents, and restricted cash as of March 31 | $ 2,334 | $ 506 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION BACKGROUND. GE HealthCare Technologies Inc. (“GE HealthCare,” the “Company,” “our,” or “we”) is a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator. We operate at the center of the healthcare ecosystem, enabling 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 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 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 re sult 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”). During the first quarter of 2023, certain Spin-Off-related 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 $2,834 million. These items substantially consisted of: (a) the transfer of certain pension plan liabilities and assets as described in Note 9, “Postretirement Benefit Plans,” (b) the transfer of certain deferred income taxes as described in Note 10, “Income Taxes,” (c) deferred compensation liabilities of $548 million, and (d) employee termination obligations as described in Note 14, “Restructuring and Other Activities.” 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, “Related Parties” for more information on these agreemen ts. Unless the context otherwise requires, references to “GE HealthCare,” “we,” “us,” “our,” and the “Company” refer to (i) GE’s healthcare business prior to the Spin-Off as a carve-out business of GE with related condensed combined financial statements and (ii) GE HealthCare Technologies Inc. and its subsidiaries following the Spin-Off with related condensed consolidated financial statements. BASIS OF PRESENTATION. The condensed consolidated and combined financial statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles (“U.S. GAAP”) and present the historical results of operations, comprehensive income, and cash flows for the three months ended March 31, 2023 and 2022 and the financial position as of March 31, 2023 and December 31, 2022. It is management’s opinion that these financial statements include all normal and recurring adjustments 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. All intercompany balances and transactions within the Company have been eliminated in the condensed consolidated and combined financial statements. These financial statements include certain transactions with GE, which are disclosed as related party transactions. See Note 18, “Related Parties” for further information. Prior to the Spin-Off, 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, financial position, or cash flows would have been had the Company operated as a separate, stand-alone entity during the periods presented. The condensed consolidated and combined financial statements should be read in conjunction with the Company’s audited combined financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. 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. While there has not been a material impact to our accounting estimates as of March 31, 2023 and December 31, 2022 and the results for the three months ended March 31, 2023 and 2022, a number of estimates could be affected by the ongoing COVID-19 pandemic. The severity, magnitude, and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain and difficult to predict. As a result, our accounting estimates and assumptions may change over time in response to COVID-19. Such changes could result in future impairments of goodwill, intangible assets, long-lived assets, and investment securities, incremental credit losses on receiv ables, a decrease in the realizability of our tax assets, or an increase in our related obligations as of the time of a relevant measurement event. 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 wa s 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 In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-04, Liabilities – Supplier Finance Programs (Subtopic 405-50) . The 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 amounts 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 interim periods, except for rollforward information, which is effective for 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. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The ASU requires companies to apply the definition of a performance obligation under ASC 606, Revenue from Contracts with Customers |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | 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 parts and labor, 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 March 31, 2023 December 31, 2022 Contract assets $ 593 $ 584 Other deferred assets 390 405 Contract and other deferred assets 983 989 Non-current contract assets (a) 38 37 Non-current other deferred assets (a) 81 82 Total contract and other deferred assets $ 1,102 $ 1,108 (a) 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 primarily reflect revenue recognized on contracts 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 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 are expected to be satisfied and fulfilled with our customers. As of March 31, 2023 and December 31, 2022, contract liabilities were approximately $2,681 million and $2,526 million, respectively, of which the non-current portion of $650 million and $630 million, respectively, was recognized in All other liabilities in the Condensed Consolidated and Combined Statements of Financial Position. Contract liabilities increased by $155 million in 2023 primarily due to an increase in customer advances and deposits as a result of product orders growth relative to fulfillment and the normal annual service contract billing cycle. Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately $759 million and $715 million for the three months ended March 31, 2023 and 2022, respectively. REMAINING PERFORMANCE OBLIGATIONS. Remaining performance obligations represent 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 March 31, 2023, the aggregate amount of the contracted revenues allocated to our unsatisfied (or partially unsatisfied) performance obligations was $14,490 million. We expect to recognize revenue as we satisfy our remaining performance obligations as follows: a) product-related remaining performance obligations of $4,966 million of which 99% is expected to be recognized within two years, and the remaining thereafter; and b) services-related remaining performance obligations of $9,524 million of which 67% and 97% is expected to be recognized within two years and five years, respectively, and the remaining thereafter. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 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 year ended December 31, 2022. 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 less the following: Benefit (provision) for income taxes, Interest and other financial charges – net, Non-operating benefit (income) costs, restructuring costs, acquisition and disposition-related benefits (charges), gains and losses on business dispositions, Spin-Off and separation costs, amortization of acquisition-related intangible assets, and investment revaluation gains and losses. Total Revenues by Segment For the three months ended March 31 2023 2022 Imaging: Radiology $ 2,088 $ 1,918 Interventional Guidance 408 393 Total Imaging 2,496 2,311 Total Ultrasound 859 815 PCS: Monitoring Solutions 552 521 Life Support Solutions 229 195 Total PCS 781 716 Total PDx 558 484 Other (a) 13 17 Total revenues $ 4,707 $ 4,343 (a) Financial information not presented within the reportable segments, shown within the Other category, represents the Hea lthCar e Financial Services (“HFS”) business which does not meet the definition of an operating segment. Segment EBIT For the three months ended March 31 2023 2022 Segment EBIT Imaging $ 191 $ 206 Ultrasound 207 192 PCS 109 65 PDx 155 138 Other (a) 2 (2) 664 599 Restructuring costs (12) (12) Acquisition and disposition-related benefits (charges) (1) (15) Gain (loss) of business dispositions and divestments — 3 Spin-Off and separation costs (58) — Amortization of acquisition-related intangible assets (31) (33) Investment revaluation gain (loss) 5 (8) Interest and other financial charges – net (136) (4) Non-operating benefit income (costs) 115 2 Income from continuing operations before income taxes $ 546 $ 533 (a) Financial information not presented within the reportable segments, shown within the Other category, represents the HFS business and certain other investments which do not meet the definition of an operating segment. |
RECEIVABLES
RECEIVABLES | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
RECEIVABLES | RECEIVABLES Current Receivables As of March 31, 2023 December 31, 2022 Current customer receivables (a) $ 3,150 $ 3,112 Non-income based tax receivables 192 174 Other sundry receivables 122 100 Sundry receivables 314 274 Allowance for credit losses (91) (91) Total current receivables – net $ 3,373 $ 3,295 (a) 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 $200 million and $157 million as of March 31, 2023 and December 31, 2022, respectively. The increase in chargebacks is primarily due to higher wholesaler product levels. Long-Term Receivables As of March 31, 2023 December 31, 2022 Long-term customer receivables $ 71 $ 80 Sundry receivables 71 57 Non-income based tax receivables 28 28 Supplier advances 11 11 Allowance for credit losses (30) (31) Total long-term receivables – net (a) $ 151 $ 145 (a) Long-term receivables are recognized within All other assets in the Condensed Consolidated and Combined Statements of Financial Position. |
FINANCING RECEIVABLES
FINANCING RECEIVABLES | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
FINANCING RECEIVABLES | FINANCING RECEIVABLES Financing Receivables As of March 31, 2023 December 31, 2022 Loans, net of deferred income $ 31 $ 29 Investment in financing leases, net of deferred income 73 72 Allowance for credit losses (4) (4) Current financing receivables – net (a) 100 97 Loans, net of deferred income 44 44 Investment in financing leases, net of deferred income 157 158 Allowance for credit losses (5) (6) Non-current financing receivables – net (a) $ 196 $ 196 (a) Current financing receivables and non-current financing receivables are recognized within All other current assets and All other assets, respectively, in the Condensed Consolidated and Combined Statements of Financial Position. As of March 31, 2023 , 6%, 4%, and 5% 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 , 7%, 6%, 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. |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT AND OPERATING LEASES | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT AND OPERATING LEASES | PROPERTY, PLANT, AND EQUIPMENT AND OPERATING LEASES Property, Plant, and Equipment - Net As of March 31, 2023 December 31, 2022 Original cost $ 5,060 $ 4,989 Less accumulated depreciation and amortization (3,039) (2,988) Right-of-use operating lease assets 306 313 Property, plant, and equipment - net $ 2,327 $ 2,314 OPERATING LEASE LIABILITIES. Operating lease liabilities recognized within all other current and non-current liabilities in the Condensed Consolidated and Combined Statements of Financial Position were $341 million and $347 million as of March 31, 2023 and December 31, 2022, respectively. Expense related to our operating lease portfolio was $56 million for both the three months ended March 31, 2023 and 2022. |
ACQUISITIONS, GOODWILL, AND OTH
ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS | 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 future holdback payment and potential earn-out payments valued at $13 million based primarily on various milestones and sales targets. The preliminary purchase price allocation resulted in goodwill of $105 million, intangible assets of $60 million, and deferred tax liabilities of $14 million. 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 Balance as of December 31, 2022 Acquisitions Foreign exchange and other Balance as of March 31, 2023 Imaging $ 4,409 $ — $ 4 $ 4,413 Ultrasound 3,835 105 1 3,941 PCS 2,036 — 1 2,037 PDx 2,533 — — 2,533 Total Goodwill $ 12,813 $ 105 $ 6 $ 12,924 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. Substantially all other intangible assets are subject to amortization. Intangible assets decreased during the three months ended March 31, 2023, primarily as a result of amortization, partially offset by $60 million of additions related to the acquisition of Caption Health. Amortization expense was $96 million and $103 million for the three months ended March 31, 2023 and 2022, respectively. |
ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS | 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 future holdback payment and potential earn-out payments valued at $13 million based primarily on various milestones and sales targets. The preliminary purchase price allocation resulted in goodwill of $105 million, intangible assets of $60 million, and deferred tax liabilities of $14 million. 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 Balance as of December 31, 2022 Acquisitions Foreign exchange and other Balance as of March 31, 2023 Imaging $ 4,409 $ — $ 4 $ 4,413 Ultrasound 3,835 105 1 3,941 PCS 2,036 — 1 2,037 PDx 2,533 — — 2,533 Total Goodwill $ 12,813 $ 105 $ 6 $ 12,924 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. Substantially all other intangible assets are subject to amortization. Intangible assets decreased during the three months ended March 31, 2023, primarily as a result of amortization, partially offset by $60 million of additions related to the acquisition of Caption Health. Amortization expense was $96 million and $103 million for the three months ended March 31, 2023 and 2022, respectively. |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS | 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”). 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 March 31, 2023 or December 31, 2022. On January 3, 2023, the Company completed a $2,000 million drawdown of the Term Loan Facility in connection with the Spin-Off from GE. The average interest rate for the Notes and our Credit Facilities for the three months ended March 31, 2023 was 5.94%. We had no principal debt repayments on the Notes or the Credit Facilities for the three months ended March 31, 2023. Long-Term Borrowings Composition As of March 31, 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 Term Loan Facility 2,000 — Other 33 38 Total principal debt issued 10,283 8,288 Less: Unamortized debt issuance costs and discounts 44 47 Less: Current portion of long-term borrowings 5 7 Long-term borrowings, net of current portion $ 10,234 $ 8,234 See Note 12, “Financial Instruments and Fair Value Measurements” for further information about borrowings and associated interest rate and cross-currency swaps. LETTERS OF CREDIT, GUARANTEES, AND OTHER COMMITMENTS. |
POSTRETIREMENT BENEFIT PLANS
POSTRETIREMENT BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS PENSION BENEFITS AND RETIREE HEALTH AND LIFE BENEFITS SPONSORED BY GE, TRANSFERRED TO GE HEALTHCARE IN CONNECTION WIT H THE SPIN-OFF. C ertain GE HealthCare employees were covered under various pension and retiree health and life plans sponsored by GE prior to the Spin-Off, including principal pension plans, other pension plans, and principal retiree benefit plans. A subset of these pension plans have been closed to new participants. For the three months ended March 31, 2022, relevant participation costs for these plans were allocated to the Company and recognized within the Condensed Combined Statement of Income. These 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 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 for the three months ended March 31, 2022. Expenses associated with our employees’ participation in GE’s non-U.S. based pension plans were $4 million for the three months ended March 31, 2022. In connection with the Spin-Off, on January 1, 2023, these plans were separated and GE transferred certain liabilities and assets of these plans to GE HealthCare based upon measurements as 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 period ended March 31, 2022. Pension plans with pension assets or obligations less than $50 million and $20 million as of March 31, 2023 and 2022, respectively, are not included in the results below. Components of Expense (Income) Defined benefit plans Other postretirement plans For the three months ended March 31 2023 2022 2023 2022 Service cost – Operating $ 14 $ 5 $ 2 $ — Interest cost 292 4 15 — Expected return on plan assets (356) (7) — — Amortization of net loss (gain) (29) 2 (16) — Amortization of prior service cost (credit) (1) (1) (22) — Non-operating $ (94) $ (2) $ (23) $ — Net periodic (income) expense $ (80) $ 3 $ (21) $ — For the three months ended March 31, 2023, the Company made contributions for benefit payments totaling $48 million to the pension plans and $43 million to its postretirement plans. For the remainder of 2023, the Company expects to make future benefit payments of approximately $255 million to our defined benefit pension and postretirement plans for benefit payments. The Company does not have a required minimum cash pension contribution obligation for its U.S. plans in 2023. 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 a defined contribution plan for its eligible U.S. employees that was largely consistent with the plan th ey 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 we |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our income tax rate was 29.9% and 24.6% for the three months ended March 31, 2023 and 2022, respectively. The tax rate for 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, withholding taxes, and state taxes. The tax rate for 2022 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 Company is currently being audited in a number of jurisdictions for tax years 2004-2021, 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, an incremental deferred tax liability of $30 million has been 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, in connection with the Spin-Off, our net deferred income tax assets inc reased by $3,099 million primarily due to transfers from GE, including $964 million related to pension 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. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) – NET | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) – NET | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) – NET Changes in Accumulated other comprehensive income (loss) ( “ AOCI ” ) by component, net of income taxes, for the three months ended March 31, 2023 and 2022 were as follows: For the three months ended March 31, 2023 Currency translation adjustments (a) 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 $(11), $2, and $4 85 (13) (13) 59 Unrecognized gain transferred from GE pension – net of taxes of $0, $(509), and $0 (b) — 1,972 — 1,972 Reclasses from AOCI – net of taxes of $0, $16, and $7 — (52) (26) (78) March 31, 2023 $ (1,760) $ 1,865 $ (30) $ 75 For the three months ended March 31, 2022 Currency translation adjustments (a) 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 $(2), $(9), and $(6) (153) (5) 35 (123) Reclasses from AOCI – net of taxes of $0, $0, and $0 — — (11) (11) March 31, 2022 $ (1,122) $ (105) $ 56 $ (1,171) (a) The amount of foreign currency translation recognized in Other comprehensive income (loss) during the three months ended March 31, 2023 and 2022 included net gains (losses) relating to net investment hedges, as further discussed in Note 12, “ Financial Instruments and Fair Value Measurements. ” (b) Refer to Note 9, “ Postretirement Benefit Plans ” for further information on the unrecognized gain transferred from GE pension in connection with the Spin-Off. |
FINANCIAL INSTRUMENTS AND FAIR
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS DERIVATIVES AND HEDGING. Our primary objective in executing and holding derivatives is to reduce the earnings and cash flow volatility associated with fluctuations in foreign currency exchange rates and commodity prices and hedge the volatility associated with the translation of the assets and liabilities of subsidiaries with a different functional currency than the USD. These hedge contracts reduce, but do not entirely eliminate, the impact of foreign currency rate 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 cash flow hedges of foreign currency-denominated forecasted transactions was a net $30 million loss as of March 31, 2023. We expect to reclassify $27 million of pre-tax net deferred losses associated with designated cash flow hedges to earnings in the next 12 months, contemporaneously with the earnings effects of the related forecasted transactions. Pre-tax gains (losses) reclassified from AOCI into earnings were $33 million and $11 million, for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the maximum length of time over which we are hedging our forecasted transactions was approximately two years. Net Investment Hedges As of March 31, 2023 and December 31, 2022, the Company had $2,176 million and $2,132 million notional, respectively, of receive-fixed USD, pay-fixed Euro ( “ EUR ” ) cross-currency swaps and designated each as the hedging instruments in net investment hedging relationships in order to mitigate the foreign currency risk attributable to the translation of its net investment in certain EUR-functional subsidiaries. The following table presents the gross fair values of our outstanding derivative instruments as of the dates indicated: Fair Value of Derivatives March 31, 2023 December 31, 2022 Gross Notional Fair Value – Assets Fair Value – Liabilities Gross Notional Fair Value – Assets Fair Value – Liabilities Foreign currency exchange contracts $ 1,226 $ 25 $ 62 $ 1,240 $ 32 $ 53 Derivatives accounted for as cash flow hedges 1,226 25 62 1,240 32 53 Cross-currency swaps 2,176 21 167 2,132 — 111 Derivatives accounted for as net investment hedges 2,176 21 167 2,132 — 111 Foreign currency exchange contracts 4,690 38 22 4,456 9 20 Embedded derivatives 594 19 14 604 24 18 Equity contracts 231 15 3 8 — 6 Commodity derivatives 54 1 3 48 1 1 Derivatives not designated as hedges 5,569 73 42 5,116 34 45 Total derivatives $ 8,971 $ 119 $ 271 $ 8,488 $ 66 $ 209 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 are 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 March 31, 2023, the potential effect of rights of offset associated with the derivative contracts would be an offset to both assets and liabilities by $56 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 March 31 2023 2022 Cash flow hedges $ (17) $ 41 Net investment hedges 35 — The table below presents the gains (losses) of our derivative financial instruments in the Condensed Consolidated and Combined Statements of Income: Derivative Financial Instruments For the three months ended March 31, 2023 For the three months ended March 31, 2022 Cost of products Cost of services Selling, general and administrative Other (a) Cost of products Cost of services Selling, general and administrative Other (a) Foreign currency exchange contracts $ 27 $ 6 $ — $ — $ 9 $ 2 $ — $ — Effects of cash flow hedges 27 6 — — 9 2 — — Cross-currency swaps — — — — — — — — Effects of net investment hedges — — — — — — — — Foreign currency exchange contracts 7 2 — 1 (1) — — — Embedded derivatives — — — (1) — — — 3 Equity contracts — — 15 3 — — — — Commodity derivatives — — — (2) — — — 10 Effect of derivatives not designated as hedges $ 7 $ 2 $ 15 $ 1 $ (1) $ — $ — $ 13 (a) Amounts inclusive of Other income (expense) - net on the Condensed Consolidated and Combined Statements of Income. 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 Financial Assets and Liabilities March 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Investment securities $ 31 $ — $ — $ 31 $ 21 $ — $ — $ 21 Derivatives — 119 — 119 — 66 — 66 Liabilities: Deferred compensation (a) 264 3 — 267 62 2 — 64 Derivatives — 268 3 271 — 203 6 209 Contingent consideration — — 57 57 — — 42 42 (a) 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 March 31, 2023 and December 31, 2022 were recorded in connection with business acquisitions. Changes in the Level 3 fair value measurement of contingent consideration were not material during the three months ended March 31, 2023 and 2022 . Fair Value of Other Financial Instruments The estimated fair value of long-term debt (including the current portion) as of March 31, 2023 and December 31, 2022 , was $10,819 million and $8,512 million compared to a carrying value (which includes a reduction for amortized debt issuance costs and discounts) of $10,239 million and $8,241 million, respectively. The fair value of our borrowings is determined based on observable and quoted prices and spreads of identical and 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 March 31, 2023 and December 31, 2022 |
COMMITMENTS, GUARANTEES, PRODUC
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES | 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, GE has provided parent company guarantees in certain jurisdictions where we lack 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 and Distribution 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 March 31, 2023 the Company’s maximum aggregate exposure, subject to GE reimbursement, is approximately $164 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 three months ended March 31 2023 2022 Balance at beginning of period $ 193 $ 161 Current-year provisions 49 55 Expenditures (51) (45) Other changes 2 (1) Balance at end of period $ 193 $ 170 Product warranties are recognized within All other current liabilities in the Condensed Consolidated and Combined Statements of Financial Position. 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 matter described below that could have a material impact on our results of operations. In many proceedings, including the specific matter 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”). On February 2, 2023, the D.C. Circuit denied this request. On February 10, 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. On March 1, 2023, the District Court granted the motion for a temporary, partial stay. Defendants also plan to petition the Supreme Court to review the D.C. Circuit’s decision. |
RESTRUCTURING AND OTHER ACTIVIT
RESTRUCTURING AND OTHER ACTIVITIES | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER ACTIVITIES | RESTRUCTURING AND OTHER ACTIVITIES Restructuring activities are essential to reflect 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 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 committed restructuring initiatives, we recorded expenses of $12 million for both the three months ended March 31, 2023 and 2022. These restructuring initiatives are expected to result in additional expenses of approximately $71 million, to be incurred primarily in 2023, substantially related to employee-related termination benefits and facility exit costs. Restructuring expenses are recognized within Cost of products, Cost of services, or Selling, general, and administrative ("SG&A"), as appropriate, in the Condensed Consolidated and Combined Statements of Income. Restructuring and Other Activities For the three months ended March 31 2023 2022 Employee termination costs $ 10 $ 9 Facility and other exit costs 1 3 Asset write-downs 1 — Total restructuring and other activities $ 12 $ 12 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 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 The following tables provide the weighted average fair value of options, RSUs, and PSUs granted to employees during the three months ended March 31, 2023 and the related stock option valuation assumptions used in the Black-Scholes model: Weighted Average Grant Date Fair Value (In dollars) March 31, 2023 Stock options $ 25 RSUs 72 PSUs 84 Key Assumptions in the Black-Scholes Valuation for Stock Options March 31, 2023 Risk free rate 3.6 % Dividend yield — % Expected volatility 26.5 % Expected term (in years) 6.3 Strike price (in dollars) $ 71 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 (a) 3,738 $ 90 3,551 $ 58 Granted 2,037 71 1,612 72 Exercised/Vested (326) 56 (558) 70 Forfeited (3) 68 (52) 63 Expired (5) 143 — — Outstanding as of March 31, 2023 5,441 $ 85 6.6 $ 57 4,553 $ 63 2.0 $ 374 Exercisable as of March 31, 2023 3,182 $ 94 4.3 $ 33 N/A N/A N/A N/A Expected to vest 1,681 $ 71 9.7 $ 18 3,817 $ 54 2.0 $ 313 (a) Our common stock began “regular way” trading on The Nasdaq Global Market 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 March 31, 2023 were 1,271 thousand shares with a weighted average fair value of $85 dollars. The intrinsic value and weighted average contractual term of PSUs outstanding were $104 million and 2.0 years, respectively. The following tables present compensation expense and tax impact recognized as well as other share-based compensation data for the three months ended March 31, 2023. Share-based Compensation Expense March 31, 2023 Compensation expense (pre-tax) $ 24 Income tax benefits (8) Compensation expense (after-tax) $ 16 Other Share-based Compensation Data March 31, 2023 Unrecognized compensation expense (amortized over a weighted average period of 2.0 years) $ 212 Cash received from stock options exercised 18 Intrinsic value of stock options exercised and RSU/PSUs vested 48 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREOn January 3, 2023, there were approximately 454 million shares of GE HealthCare common stock outstanding, including the 19.9% interest in our outstanding shares of common stock retained by GE following the Distribution. The computation of basic and diluted earnings per common share for all periods through December 31, 2022 was calculated using this same number of common shares outstanding since no GE HealthCare equity awards were outstanding as of the Distribution Date and is net of Net (income) loss attributable to noncontrolling interest which is fully associated with continuing operations. Earnings Per Share For the three months ended March 31 (In millions, except per share amounts) 2023 2022 Numerator: Net income $ 383 $ 402 Net (income) attributable to noncontrolling interests (11) (13) Net income attributable to GE HealthCare 372 389 Deemed preferred stock dividend of redeemable noncontrolling interest (183) — Net income attributable to GE HealthCare common stockholders $ 189 $ 389 Denominator: Basic weighted-average shares outstanding 454 454 Dilutive effect of common stock equivalents 3 — Diluted weighted-average shares outstanding 457 454 Basic Earnings Per Share $ 0.42 $ 0.86 Diluted Earnings Per Share $ 0.41 $ 0.86 Antidilutive securities (a) 4 — (a) Diluted EPS excludes certain shares issuable under stock based compensation plans because the effect would have been antidilutive. |
SUPPLEMENTAL FINANCIAL INFORMAT
SUPPLEMENTAL FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTAL FINANCIAL INFORMATION | SUPPLEMENTAL FINANCIAL INFORMATION Cash, Cash Equivalents and Restricted Cash As of March 31, 2023 December 31, 2022 Cash and cash equivalents $ 2,324 $ 1,440 Short-term restricted cash 3 5 Total cash, cash equivalents, and restricted cash as presented on the Condensed Consolidated and Combined Statements of Financial Position 2,327 1,445 Long-term restricted cash (a) 7 6 Total cash, cash equivalents, and restricted cash as presented on the Condensed Consolidated and Combined Statements of Cash Flows $ 2,334 $ 1,451 (a) Long-term restricted cash is recognized within All other assets in the Condensed Consolidated and Combined Statements of Financial Position. Inventories As of March 31, 2023 December 31, 2022 Raw materials $ 1,097 $ 1,053 Work in process 107 91 Finished goods 1,052 1,011 Inventories (a) $ 2,256 $ 2,155 (a) Certain inventory items are long-term in nature and therefore have been recognized within All other assets in the Condensed Consolidated and Combined Statements of Financial Position. ALL OTHER CURRENT AND NON-CURRENT ASSETS. All other current assets primarily include prepaid expenses and deferred costs, financing receivables, and derivative instruments. All other assets primarily include pension assets, equity method and other investments, financing receivables, long-term customer and sundry receivables, long-term inventories, and long-term contract and other deferred assets. All other current and non-current assets increased in the three months ended March 31, 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 and All other liabilities primarily include liabilities related to employee compensation and benefits, long-term contract liabilities, income taxes payable and uncertain tax positions, operating lease liabilities, sales allowances, equipment projects and other commercial liabilities, environmental, health and safety obligations, derivative instruments, product warranties, and accrued freight and utilities. All other current and non-current liabilities increased in the three months ended March 31, 2023, primarily due to liabilities transferred from GE as a result of the Spin-Off and the exercise of certain redeemable noncontrolling interests. Refer to Note 1, “Organization and Basis of Presentation” and “Redeemable noncontrolling interests” below 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 program, payment terms normally range from 30 to 150 days, not exceeding 180 days, depending on the underlying supplier agreements. Included in Accounts payable as of March 31, 2023 and December 31, 2022 were $390 million and $392 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. 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 three months ended March 31, 2023 and 2022 is presented below. Redeemable Noncontrolling Interests For the three months ended March 31 2023 2022 Balance at beginning of period $ 230 $ 220 Net income attributable to redeemable noncontrolling interests 10 9 Redemption value adjustments (a) 183 — Exercise of redeemable noncontrolling interests (b) (222) — Balance at end of period $ 201 $ 229 (a) 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 redeemable noncontrolling interests were remeasured to their current redemption value resulting in a redemption value adjustment of $183 million. The remeasurement was accounted for as a deemed preferred stock dividend of redeemable noncontrolling interest and recorded as an adjustment to retained earnings. (b) In February 2023, the redeemable noncontrolling interest holder exercised its option redemption provision. The expected redemption payment of $222 million is expected to be made in the second quarter of 2023 and has been recognized within All other current liabilities. Other Income (Expense) – Net For the three months ended March 31 2023 2022 Net interest and investment income (expense) $ 13 $ (2) Equity method investment income 4 3 Change in fair value of assumed obligation (13) — Other items, net (a) 4 25 Total other income (expense) – net $ 8 $ 26 (a) Other items, net primarily consists of licensing and royalty income and gains and losses related to derivatives for the three months ended March 31, 2022. |
RELATED PARTIES
RELATED PARTIES | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | 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 will 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 for the three months ended March 31, 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 for the three months ended March 31, 2022, 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. Corporate Allocations from GE March 31, 2022 Costs for centralized services (a) $ 13 Costs associated with employee medical insurance (b) 30 Costs for corporate and shared services (c) 116 (a) 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. (b) Costs associated with employee medical insurance were recognized within Cost of products, Cost of services, SG&A, and Research and development ("R&D") in the Condensed Combined Statement of Income based on the employee population. (c) 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 months ended March 31, 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. 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 quarter 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. 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. For the three months ended March 31, 2023, we incurred $108 million, net, which represents fees charged from GE to the Company primarily for information technology, human resources, and R&D and is net of fees charged from the Company to GE for facilities and other shared services. • Tax Matters Agreement (“TMA”) – 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. 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 and to GE were $77 million and $108 million, respectively, as of March 31, 2023 and were recognized within All other assets or All other liabilities, as applicable, in the Condensed Consolidated Statements of Financial Position. These amounts primarily relate to tax and other indemnities. GE HealthCare sells products and services in the ordinary course of business to certain entities associated with two members of our Board of Directors. During the three months ended March 31, 2023, we recognized revenue of $24 million from these entities in connection with providing products and services. Current amounts due from these entities as of March 31, 2023 were not significant. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSOn April 25th, 2023 the Company’s Board of Directors declared a cash dividend of $0.03 per share of common stock, payable on June 15, 2023, to stockholders of record on May 23, 2023. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION. The condensed consolidated and combined financial statements have been prepared in accordance with United States ("U.S.") generally accepted accounting principles (“U.S. GAAP”) and present the historical results of operations, comprehensive income, and cash flows for the three months ended March 31, 2023 and 2022 and the financial position as of March 31, 2023 and December 31, 2022. It is management’s opinion that these financial statements include all normal and recurring adjustments 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. Prior to the Spin-Off, 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, financial position, or cash flows would have been had the Company operated as a separate, stand-alone entity during the periods presented. The condensed consolidated and combined financial statements should be read in conjunction with the Company’s audited combined financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. |
CONSOLIDATION | All intercompany balances and transactions within the Company have been eliminated in the condensed consolidated and combined financial statements. |
ESTIMATES AND ASSUMPTIONS | 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. |
ACCOUNTING CHANGES | 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 wa s 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 In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-04, Liabilities – Supplier Finance Programs (Subtopic 405-50) . The 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 amounts 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 interim periods, except for rollforward information, which is effective for 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. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . The ASU requires companies to apply the definition of a performance obligation under ASC 606, Revenue from Contracts with Customers |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract and Other Deferred Assets | Contract and Other Deferred Assets As of March 31, 2023 December 31, 2022 Contract assets $ 593 $ 584 Other deferred assets 390 405 Contract and other deferred assets 983 989 Non-current contract assets (a) 38 37 Non-current other deferred assets (a) 81 82 Total contract and other deferred assets $ 1,102 $ 1,108 (a) Non-current contract and other deferred assets are recognized within All other assets in the Condensed Consolidated and Combined Statements of Financial Position. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Total Revenues by Segment For the three months ended March 31 2023 2022 Imaging: Radiology $ 2,088 $ 1,918 Interventional Guidance 408 393 Total Imaging 2,496 2,311 Total Ultrasound 859 815 PCS: Monitoring Solutions 552 521 Life Support Solutions 229 195 Total PCS 781 716 Total PDx 558 484 Other (a) 13 17 Total revenues $ 4,707 $ 4,343 (a) Financial information not presented within the reportable segments, shown within the Other category, represents the Hea lthCar e Financial Services (“HFS”) business which does not meet the definition of an operating segment. Segment EBIT For the three months ended March 31 2023 2022 Segment EBIT Imaging $ 191 $ 206 Ultrasound 207 192 PCS 109 65 PDx 155 138 Other (a) 2 (2) 664 599 Restructuring costs (12) (12) Acquisition and disposition-related benefits (charges) (1) (15) Gain (loss) of business dispositions and divestments — 3 Spin-Off and separation costs (58) — Amortization of acquisition-related intangible assets (31) (33) Investment revaluation gain (loss) 5 (8) Interest and other financial charges – net (136) (4) Non-operating benefit income (costs) 115 2 Income from continuing operations before income taxes $ 546 $ 533 (a) Financial information not presented within the reportable segments, shown within the Other category, represents the HFS business and certain other investments which do not meet the definition of an operating segment. |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Receivables | Current Receivables As of March 31, 2023 December 31, 2022 Current customer receivables (a) $ 3,150 $ 3,112 Non-income based tax receivables 192 174 Other sundry receivables 122 100 Sundry receivables 314 274 Allowance for credit losses (91) (91) Total current receivables – net $ 3,373 $ 3,295 (a) 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 $200 million and $157 million as of March 31, 2023 and December 31, 2022, respectively. The increase in chargebacks is primarily due to higher wholesaler product levels. Long-Term Receivables As of March 31, 2023 December 31, 2022 Long-term customer receivables $ 71 $ 80 Sundry receivables 71 57 Non-income based tax receivables 28 28 Supplier advances 11 11 Allowance for credit losses (30) (31) Total long-term receivables – net (a) $ 151 $ 145 (a) Long-term receivables are recognized within All other assets in the Condensed Consolidated and Combined Statements of Financial Position. Financing Receivables As of March 31, 2023 December 31, 2022 Loans, net of deferred income $ 31 $ 29 Investment in financing leases, net of deferred income 73 72 Allowance for credit losses (4) (4) Current financing receivables – net (a) 100 97 Loans, net of deferred income 44 44 Investment in financing leases, net of deferred income 157 158 Allowance for credit losses (5) (6) Non-current financing receivables – net (a) $ 196 $ 196 (a) Current financing receivables and non-current financing receivables are recognized within All other current assets and All other assets, respectively, in the Condensed Consolidated and Combined Statements of Financial Position. |
FINANCING RECEIVABLES (Tables)
FINANCING RECEIVABLES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Receivables | Current Receivables As of March 31, 2023 December 31, 2022 Current customer receivables (a) $ 3,150 $ 3,112 Non-income based tax receivables 192 174 Other sundry receivables 122 100 Sundry receivables 314 274 Allowance for credit losses (91) (91) Total current receivables – net $ 3,373 $ 3,295 (a) 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 $200 million and $157 million as of March 31, 2023 and December 31, 2022, respectively. The increase in chargebacks is primarily due to higher wholesaler product levels. Long-Term Receivables As of March 31, 2023 December 31, 2022 Long-term customer receivables $ 71 $ 80 Sundry receivables 71 57 Non-income based tax receivables 28 28 Supplier advances 11 11 Allowance for credit losses (30) (31) Total long-term receivables – net (a) $ 151 $ 145 (a) Long-term receivables are recognized within All other assets in the Condensed Consolidated and Combined Statements of Financial Position. Financing Receivables As of March 31, 2023 December 31, 2022 Loans, net of deferred income $ 31 $ 29 Investment in financing leases, net of deferred income 73 72 Allowance for credit losses (4) (4) Current financing receivables – net (a) 100 97 Loans, net of deferred income 44 44 Investment in financing leases, net of deferred income 157 158 Allowance for credit losses (5) (6) Non-current financing receivables – net (a) $ 196 $ 196 (a) Current financing receivables and non-current financing receivables are recognized within All other current assets and All other assets, respectively, in the Condensed Consolidated and Combined Statements of Financial Position. |
PROPERTY, PLANT, AND EQUIPMEN_2
PROPERTY, PLANT, AND EQUIPMENT AND OPERATING LEASES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, Plant, and Equipment - Net As of March 31, 2023 December 31, 2022 Original cost $ 5,060 $ 4,989 Less accumulated depreciation and amortization (3,039) (2,988) Right-of-use operating lease assets 306 313 Property, plant, and equipment - net $ 2,327 $ 2,314 |
ACQUISITIONS, GOODWILL, AND O_2
ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill Balance as of December 31, 2022 Acquisitions Foreign exchange and other Balance as of March 31, 2023 Imaging $ 4,409 $ — $ 4 $ 4,413 Ultrasound 3,835 105 1 3,941 PCS 2,036 — 1 2,037 PDx 2,533 — — 2,533 Total Goodwill $ 12,813 $ 105 $ 6 $ 12,924 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Borrowings | Long-Term Borrowings Composition As of March 31, 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 Term Loan Facility 2,000 — Other 33 38 Total principal debt issued 10,283 8,288 Less: Unamortized debt issuance costs and discounts 44 47 Less: Current portion of long-term borrowings 5 7 Long-term borrowings, net of current portion $ 10,234 $ 8,234 |
POSTRETIREMENT BENEFIT PLANS (T
POSTRETIREMENT BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans | 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 |
Components of Net Periodic Expense | Components of Expense (Income) Defined benefit plans Other postretirement plans For the three months ended March 31 2023 2022 2023 2022 Service cost – Operating $ 14 $ 5 $ 2 $ — Interest cost 292 4 15 — Expected return on plan assets (356) (7) — — Amortization of net loss (gain) (29) 2 (16) — Amortization of prior service cost (credit) (1) (1) (22) — Non-operating $ (94) $ (2) $ (23) $ — Net periodic (income) expense $ (80) $ 3 $ (21) $ — |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) – NET (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated other comprehensive income (loss) ( “ AOCI ” ) by component, net of income taxes, for the three months ended March 31, 2023 and 2022 were as follows: For the three months ended March 31, 2023 Currency translation adjustments (a) 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 $(11), $2, and $4 85 (13) (13) 59 Unrecognized gain transferred from GE pension – net of taxes of $0, $(509), and $0 (b) — 1,972 — 1,972 Reclasses from AOCI – net of taxes of $0, $16, and $7 — (52) (26) (78) March 31, 2023 $ (1,760) $ 1,865 $ (30) $ 75 For the three months ended March 31, 2022 Currency translation adjustments (a) 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 $(2), $(9), and $(6) (153) (5) 35 (123) Reclasses from AOCI – net of taxes of $0, $0, and $0 — — (11) (11) March 31, 2022 $ (1,122) $ (105) $ 56 $ (1,171) (a) The amount of foreign currency translation recognized in Other comprehensive income (loss) during the three months ended March 31, 2023 and 2022 included net gains (losses) relating to net investment hedges, as further discussed in Note 12, “ Financial Instruments and Fair Value Measurements. ” (b) Refer to Note 9, “ Postretirement Benefit Plans ” for further information on the unrecognized gain transferred from GE pension in connection with the Spin-Off. |
FINANCIAL INSTRUMENTS AND FAI_2
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Derivative Assets at Fair Value | The following table presents the gross fair values of our outstanding derivative instruments as of the dates indicated: Fair Value of Derivatives March 31, 2023 December 31, 2022 Gross Notional Fair Value – Assets Fair Value – Liabilities Gross Notional Fair Value – Assets Fair Value – Liabilities Foreign currency exchange contracts $ 1,226 $ 25 $ 62 $ 1,240 $ 32 $ 53 Derivatives accounted for as cash flow hedges 1,226 25 62 1,240 32 53 Cross-currency swaps 2,176 21 167 2,132 — 111 Derivatives accounted for as net investment hedges 2,176 21 167 2,132 — 111 Foreign currency exchange contracts 4,690 38 22 4,456 9 20 Embedded derivatives 594 19 14 604 24 18 Equity contracts 231 15 3 8 — 6 Commodity derivatives 54 1 3 48 1 1 Derivatives not designated as hedges 5,569 73 42 5,116 34 45 Total derivatives $ 8,971 $ 119 $ 271 $ 8,488 $ 66 $ 209 |
Schedule of Derivative Liabilities at Fair Value | The following table presents the gross fair values of our outstanding derivative instruments as of the dates indicated: Fair Value of Derivatives March 31, 2023 December 31, 2022 Gross Notional Fair Value – Assets Fair Value – Liabilities Gross Notional Fair Value – Assets Fair Value – Liabilities Foreign currency exchange contracts $ 1,226 $ 25 $ 62 $ 1,240 $ 32 $ 53 Derivatives accounted for as cash flow hedges 1,226 25 62 1,240 32 53 Cross-currency swaps 2,176 21 167 2,132 — 111 Derivatives accounted for as net investment hedges 2,176 21 167 2,132 — 111 Foreign currency exchange contracts 4,690 38 22 4,456 9 20 Embedded derivatives 594 19 14 604 24 18 Equity contracts 231 15 3 8 — 6 Commodity derivatives 54 1 3 48 1 1 Derivatives not designated as hedges 5,569 73 42 5,116 34 45 Total derivatives $ 8,971 $ 119 $ 271 $ 8,488 $ 66 $ 209 |
Schedule of Derivative Pre-tax Gains (Losses) Recognized in OCI | 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 March 31 2023 2022 Cash flow hedges $ (17) $ 41 Net investment hedges 35 — |
Effect of Derivatives Instruments on Statements of Income | The table below presents the gains (losses) of our derivative financial instruments in the Condensed Consolidated and Combined Statements of Income: Derivative Financial Instruments For the three months ended March 31, 2023 For the three months ended March 31, 2022 Cost of products Cost of services Selling, general and administrative Other (a) Cost of products Cost of services Selling, general and administrative Other (a) Foreign currency exchange contracts $ 27 $ 6 $ — $ — $ 9 $ 2 $ — $ — Effects of cash flow hedges 27 6 — — 9 2 — — Cross-currency swaps — — — — — — — — Effects of net investment hedges — — — — — — — — Foreign currency exchange contracts 7 2 — 1 (1) — — — Embedded derivatives — — — (1) — — — 3 Equity contracts — — 15 3 — — — — Commodity derivatives — — — (2) — — — 10 Effect of derivatives not designated as hedges $ 7 $ 2 $ 15 $ 1 $ (1) $ — $ — $ 13 (a) Amounts inclusive of Other income (expense) - net on the Condensed Consolidated and Combined Statements of Income. |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table represents financial assets and liabilities that are recorded and measured at fair value on a recurring basis: Fair Value of Financial Assets and Liabilities March 31, 2023 December 31, 2022 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Investment securities $ 31 $ — $ — $ 31 $ 21 $ — $ — $ 21 Derivatives — 119 — 119 — 66 — 66 Liabilities: Deferred compensation (a) 264 3 — 267 62 2 — 64 Derivatives — 268 3 271 — 203 6 209 Contingent consideration — — 57 57 — — 42 42 (a) Certain deferred compensation plans whose value is derived from market-based securities values were transferred from GE as part of the Spin-Off. |
COMMITMENTS, GUARANTEES, PROD_2
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranties | An analysis of changes in the liability for product warranties follows. Product Warranties For the three months ended March 31 2023 2022 Balance at beginning of period $ 193 $ 161 Current-year provisions 49 55 Expenditures (51) (45) Other changes 2 (1) Balance at end of period $ 193 $ 170 |
RESTRUCTURING AND OTHER ACTIV_2
RESTRUCTURING AND OTHER ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | Restructuring and Other Activities For the three months ended March 31 2023 2022 Employee termination costs $ 10 $ 9 Facility and other exit costs 1 3 Asset write-downs 1 — Total restructuring and other activities $ 12 $ 12 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Weighted Average Grant Date Fair Value and Share-Based Compensation Activity | The following tables provide the weighted average fair value of options, RSUs, and PSUs granted to employees during the three months ended March 31, 2023 and the related stock option valuation assumptions used in the Black-Scholes model: Weighted Average Grant Date Fair Value (In dollars) March 31, 2023 Stock options $ 25 RSUs 72 PSUs 84 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 (a) 3,738 $ 90 3,551 $ 58 Granted 2,037 71 1,612 72 Exercised/Vested (326) 56 (558) 70 Forfeited (3) 68 (52) 63 Expired (5) 143 — — Outstanding as of March 31, 2023 5,441 $ 85 6.6 $ 57 4,553 $ 63 2.0 $ 374 Exercisable as of March 31, 2023 3,182 $ 94 4.3 $ 33 N/A N/A N/A N/A Expected to vest 1,681 $ 71 9.7 $ 18 3,817 $ 54 2.0 $ 313 (a) Our common stock began “regular way” trading on The Nasdaq Global Market 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. |
Schedule of Stock Options Valuation Assumptions | Key Assumptions in the Black-Scholes Valuation for Stock Options March 31, 2023 Risk free rate 3.6 % Dividend yield — % Expected volatility 26.5 % Expected term (in years) 6.3 Strike price (in dollars) $ 71 |
Summary of Share-Based Compensation Expense and Other Share-Based Compensation Data | The following tables present compensation expense and tax impact recognized as well as other share-based compensation data for the three months ended March 31, 2023. Share-based Compensation Expense March 31, 2023 Compensation expense (pre-tax) $ 24 Income tax benefits (8) Compensation expense (after-tax) $ 16 Other Share-based Compensation Data March 31, 2023 Unrecognized compensation expense (amortized over a weighted average period of 2.0 years) $ 212 Cash received from stock options exercised 18 Intrinsic value of stock options exercised and RSU/PSUs vested 48 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | Earnings Per Share For the three months ended March 31 (In millions, except per share amounts) 2023 2022 Numerator: Net income $ 383 $ 402 Net (income) attributable to noncontrolling interests (11) (13) Net income attributable to GE HealthCare 372 389 Deemed preferred stock dividend of redeemable noncontrolling interest (183) — Net income attributable to GE HealthCare common stockholders $ 189 $ 389 Denominator: Basic weighted-average shares outstanding 454 454 Dilutive effect of common stock equivalents 3 — Diluted weighted-average shares outstanding 457 454 Basic Earnings Per Share $ 0.42 $ 0.86 Diluted Earnings Per Share $ 0.41 $ 0.86 Antidilutive securities (a) 4 — (a) Diluted EPS excludes certain shares issuable under stock based compensation plans because the effect would have been antidilutive. |
SUPPLEMENTAL FINANCIAL INFORM_2
SUPPLEMENTAL FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, Cash Equivalents and Restricted Cash As of March 31, 2023 December 31, 2022 Cash and cash equivalents $ 2,324 $ 1,440 Short-term restricted cash 3 5 Total cash, cash equivalents, and restricted cash as presented on the Condensed Consolidated and Combined Statements of Financial Position 2,327 1,445 Long-term restricted cash (a) 7 6 Total cash, cash equivalents, and restricted cash as presented on the Condensed Consolidated and Combined Statements of Cash Flows $ 2,334 $ 1,451 (a) Long-term restricted cash is recognized within All other assets in the Condensed Consolidated and Combined Statements of Financial Position. |
Schedule of Restricted Cash and Cash Equivalents | Cash, Cash Equivalents and Restricted Cash As of March 31, 2023 December 31, 2022 Cash and cash equivalents $ 2,324 $ 1,440 Short-term restricted cash 3 5 Total cash, cash equivalents, and restricted cash as presented on the Condensed Consolidated and Combined Statements of Financial Position 2,327 1,445 Long-term restricted cash (a) 7 6 Total cash, cash equivalents, and restricted cash as presented on the Condensed Consolidated and Combined Statements of Cash Flows $ 2,334 $ 1,451 (a) Long-term restricted cash is recognized within All other assets in the Condensed Consolidated and Combined Statements of Financial Position. |
Schedule of Current Inventory | Inventories As of March 31, 2023 December 31, 2022 Raw materials $ 1,097 $ 1,053 Work in process 107 91 Finished goods 1,052 1,011 Inventories (a) $ 2,256 $ 2,155 (a) Certain inventory items are long-term in nature and therefore have been recognized within All other assets in the Condensed Consolidated and Combined Statements of Financial Position. |
Schedule of Redeemable Noncontrolling Interest | The activity attributable to redeemable noncontrolling interests for the three months ended March 31, 2023 and 2022 is presented below. Redeemable Noncontrolling Interests For the three months ended March 31 2023 2022 Balance at beginning of period $ 230 $ 220 Net income attributable to redeemable noncontrolling interests 10 9 Redemption value adjustments (a) 183 — Exercise of redeemable noncontrolling interests (b) (222) — Balance at end of period $ 201 $ 229 (a) 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 redeemable noncontrolling interests were remeasured to their current redemption value resulting in a redemption value adjustment of $183 million. The remeasurement was accounted for as a deemed preferred stock dividend of redeemable noncontrolling interest and recorded as an adjustment to retained earnings. (b) In February 2023, the redeemable noncontrolling interest holder exercised its option redemption provision. The expected redemption payment of $222 million is expected to be made in the second quarter of 2023 and has been recognized within All other current liabilities. |
Schedule of Other Income (Expense) | Other Income (Expense) – Net For the three months ended March 31 2023 2022 Net interest and investment income (expense) $ 13 $ (2) Equity method investment income 4 3 Change in fair value of assumed obligation (13) — Other items, net (a) 4 25 Total other income (expense) – net $ 8 $ 26 (a) Other items, net primarily consists of licensing and royalty income and gains and losses related to derivatives for the three months ended March 31, 2022. |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Corporate Allocations from GE March 31, 2022 Costs for centralized services (a) $ 13 Costs associated with employee medical insurance (b) 30 Costs for corporate and shared services (c) 116 (a) 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. (b) Costs associated with employee medical insurance were recognized within Cost of products, Cost of services, SG&A, and Research and development ("R&D") in the Condensed Combined Statement of Income based on the employee population. (c) 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. |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Jan. 03, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Sale of stock, percent of stock distributed | 80.10% | ||
Sale of stock, number of shares issued | 454,000,000 | 100 | |
Sale of stock, price per share (in dollars per share) | $ 1 | ||
Net transfers from Parent, including Spin-Off-related adjustments, equity reduction | $ 2,834 | ||
Separation-related adjustments, deferred compensation liability | $ 548 |
REVENUE RECOGNITION - Summary o
REVENUE RECOGNITION - Summary of Contract and Other Deferred Assets (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 593 | $ 584 |
Other deferred assets | 390 | 405 |
Contract and other deferred assets | 983 | 989 |
Non-current contract assets | 38 | 37 |
Non-current other deferred assets | 81 | 82 |
Total contract and other deferred assets | $ 1,102 | $ 1,108 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Contract liabilities | $ 2,681 | $ 2,526 | |
Contract liabilities, noncurrent | 650 | $ 630 | |
Increase in contract liabilities, product growth, customer advances and deposits | 155 | ||
Contract liabilities, revenue recognized | 759 | $ 715 | |
Remaining performance obligation, amount | 14,490 | ||
Products | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, amount | $ 4,966 | ||
Products | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, percentage | 99% | ||
Remaining performance obligation, period | 2 years | ||
Services | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, amount | $ 9,524 | ||
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Period one | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, percentage | 67% | ||
Remaining performance obligation, period | 2 years | ||
Services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | Period two | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligation, percentage | 97% | ||
Remaining performance obligation, period | 5 years |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Number of reportable segments | 4 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 4,707 | $ 4,343 |
Segment EBIT | 664 | 599 |
Restructuring costs | (12) | (12) |
Acquisition and disposition-related benefits (charges) | (1) | (15) |
Gain (loss) of business dispositions and divestments | 0 | 3 |
Spin-Off and separation costs | (58) | 0 |
Amortization of acquisition-related intangible assets | (31) | (33) |
Investment revaluation gain (loss) | 5 | (8) |
Interest and other financial charges – net | (136) | (4) |
Non-operating benefit (income) costs | 115 | 2 |
Income from continuing operations before income taxes | 546 | 533 |
Operating segments | Imaging | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,496 | 2,311 |
Segment EBIT | 191 | 206 |
Operating segments | Imaging | Radiology | ||
Segment Reporting Information [Line Items] | ||
Revenue | 2,088 | 1,918 |
Operating segments | Imaging | Interventional Guidance | ||
Segment Reporting Information [Line Items] | ||
Revenue | 408 | 393 |
Operating segments | Ultrasound | ||
Segment Reporting Information [Line Items] | ||
Revenue | 859 | 815 |
Segment EBIT | 207 | 192 |
Operating segments | PCS | ||
Segment Reporting Information [Line Items] | ||
Revenue | 781 | 716 |
Segment EBIT | 109 | 65 |
Operating segments | PCS | Monitoring Solutions | ||
Segment Reporting Information [Line Items] | ||
Revenue | 552 | 521 |
Operating segments | PCS | Life Support Solutions | ||
Segment Reporting Information [Line Items] | ||
Revenue | 229 | 195 |
Operating segments | PDx | ||
Segment Reporting Information [Line Items] | ||
Revenue | 558 | 484 |
Segment EBIT | 155 | 138 |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | 13 | 17 |
Segment EBIT | $ 2 | $ (2) |
RECEIVABLES - Current Receivabl
RECEIVABLES - Current Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Current customer receivables | $ 3,150 | $ 3,112 |
Non-income based tax receivables | 192 | 174 |
Other sundry receivables | 122 | 100 |
Sundry receivables | 314 | 274 |
Allowance for credit losses | (91) | (91) |
Total current receivables – net | 3,373 | 3,295 |
Chargebacks | $ 200 | $ 157 |
RECEIVABLES - Long-Term Receiva
RECEIVABLES - Long-Term Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Long-term customer receivables | $ 71 | $ 80 |
Sundry receivables | 71 | 57 |
Non-income based tax receivables | 28 | 28 |
Supplier advances | 11 | 11 |
Allowance for credit losses | (30) | (31) |
Total long-term receivables – net | $ 151 | $ 145 |
FINANCING RECEIVABLES - Schedul
FINANCING RECEIVABLES - Schedule of Financing Receivable (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for credit losses | $ (4) | $ (4) |
Current financing receivables, net | 100 | 97 |
Allowance for credit losses | (5) | (6) |
Non-current financing receivables, net | 196 | 196 |
Loans, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current financing receivables, gross | 31 | 29 |
Non-current financing receivables, gross | 44 | 44 |
Investment in financing leases, net of deferred income | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current financing receivables, gross | 73 | 72 |
Non-current financing receivables, gross | $ 157 | $ 158 |
FINANCING RECEIVABLES - Narrati
FINANCING RECEIVABLES - Narrative (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, nonaccrual, percent past due | 5% | 6% |
Over 30 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, percent past due | 6% | 7% |
Over 90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, percent past due | 4% | 6% |
PROPERTY, PLANT, AND EQUIPMEN_3
PROPERTY, PLANT, AND EQUIPMENT AND OPERATING LEASES - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Original cost | $ 5,060 | $ 4,989 |
Less accumulated depreciation and amortization | (3,039) | (2,988) |
Right-of-use operating lease assets | 306 | 313 |
Property, plant, and equipment - net | $ 2,327 | $ 2,314 |
PROPERTY, PLANT, AND EQUIPMEN_4
PROPERTY, PLANT, AND EQUIPMENT AND OPERATING LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |||
Operating lease liability | $ 341 | $ 347 | |
Operating lease expense | $ 56 | $ 56 |
ACQUISITIONS, GOODWILL, AND O_3
ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Feb. 17, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Consideration transferred, upfront payment | $ 127 | $ 0 | ||
Contingent consideration | 57 | $ 42 | ||
Goodwill | 12,924 | $ 12,813 | ||
Amortization of acquisition-related intangible assets | 96 | $ 103 | ||
Caption Health | ||||
Business Acquisition [Line Items] | ||||
Percent of interest acquired | 100% | |||
Consideration transferred, upfront payment | $ 127 | |||
Consideration transferred, holdback payment | 10 | |||
Contingent consideration | 13 | |||
Goodwill | 105 | |||
Intangible assets | 60 | |||
Deferred tax liabilities | $ 14 | |||
Intangible assets acquired | $ 60 |
ACQUISITIONS, GOODWILL, AND O_4
ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 12,813 |
Acquisitions | 105 |
Foreign exchange and other | 6 |
Ending balance | 12,924 |
Imaging | |
Goodwill [Roll Forward] | |
Beginning balance | 4,409 |
Acquisitions | 0 |
Foreign exchange and other | 4 |
Ending balance | 4,413 |
Ultrasound | |
Goodwill [Roll Forward] | |
Beginning balance | 3,835 |
Acquisitions | 105 |
Foreign exchange and other | 1 |
Ending balance | 3,941 |
PCS | |
Goodwill [Roll Forward] | |
Beginning balance | 2,036 |
Acquisitions | 0 |
Foreign exchange and other | 1 |
Ending balance | 2,037 |
PDx | |
Goodwill [Roll Forward] | |
Beginning balance | 2,533 |
Acquisitions | 0 |
Foreign exchange and other | 0 |
Ending balance | $ 2,533 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) | 3 Months Ended | ||
Jan. 03, 2023 USD ($) | Mar. 31, 2023 USD ($) series | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Debt repayments | $ 0 | ||
Guarantor obligations, maximum exposure | 164,000,000 | ||
Guarantee obligation, carrying value | 4,000,000 | $ 4,000,000 | |
Commercial contracts | |||
Debt Instrument [Line Items] | |||
Guarantor obligations, maximum exposure | 675,000,000 | 657,000,000 | |
Equipment residual value obligation | |||
Debt Instrument [Line Items] | |||
Guarantor obligations, maximum exposure | 44,000,000 | 43,000,000 | |
Senior notes | Senior unsecured notes | |||
Debt Instrument [Line Items] | |||
Debt, principal amount | $ 8,250,000,000 | ||
Number of debt series | series | 6 | ||
Line of credit | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Line of credit outstanding | $ 0 | $ 0 | |
Line of credit | Revolving credit facility | 5-Year Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt, term | 5 years | ||
Maximum borrowing capacity | $ 2,500,000,000 | ||
Line of credit | Revolving credit facility | 364-Day Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt, term | 364 days | ||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Line of credit | Unsecured debt | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Debt, term | 3 years | ||
Maximum borrowing capacity | $ 2,000,000,000 | ||
Proceeds from lines of credit | $ 2,000,000,000 | ||
Line of credit, average interest rate | 5.94% |
BORROWINGS - Schedule of Long-T
BORROWINGS - Schedule of Long-Term Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal debt issued | $ 10,283 | $ 8,288 |
Less: Unamortized debt issuance costs and discounts | 44 | 47 |
Less: Current portion of long-term borrowings | 5 | 7 |
Long-term borrowings, net of current portion | $ 10,234 | 8,234 |
Senior notes | 5.550% senior notes due November 15, 2024 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.55% | |
Principal debt issued | $ 1,000 | 1,000 |
Senior notes | 5.600% senior notes due November 15, 2025 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.60% | |
Principal debt issued | $ 1,500 | 1,500 |
Senior notes | 5.650% senior notes due November 15, 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.65% | |
Principal debt issued | $ 1,750 | 1,750 |
Senior notes | 5.857% senior notes due March 15, 2030 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.857% | |
Principal debt issued | $ 1,250 | 1,250 |
Senior notes | 5.905% senior notes due November 22, 2032 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 5.905% | |
Principal debt issued | $ 1,750 | 1,750 |
Senior notes | 6.377% senior notes due November 22, 2052 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.377% | |
Principal debt issued | $ 1,000 | 1,000 |
Line of credit | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Principal debt issued | 2,000 | 0 |
Other | ||
Debt Instrument [Line Items] | ||
Principal debt issued | $ 33 | $ 38 |
POSTRETIREMENT BENEFIT PLANS -
POSTRETIREMENT BENEFIT PLANS - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan liability | $ 0 | ||
Plan asset or obligation reporting threshold | $ 50,000,000 | $ 20,000,000 | |
Defined benefit plan, expected future employer contributions, remainder of fiscal year | 255,000,000 | ||
Defined benefit plan, expected future employer contributions, plans no longer disclosed | 11,000,000 | ||
Defined contribution plan, employer contribution amount | 33,000,000 | 31,000,000 | |
Pension plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic postretirement benefit plan (income) expense | (80,000,000) | 3,000,000 | |
Defined benefit plan, employer contribution amount | 48,000,000 | ||
Other postretirement plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic postretirement benefit plan (income) expense | (21,000,000) | 0 | |
Defined benefit plan, employer contribution amount | $ 43,000,000 | ||
U.S. GE Principal Pension and Principal Retiree Benefit Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic postretirement benefit plan (income) expense | 24,000,000 | ||
Non-U.S. GE Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic postretirement benefit plan (income) expense | $ 4,000,000 |
POSTRETIREMENT BENEFIT PLANS _2
POSTRETIREMENT BENEFIT PLANS - Schedule of Defined Benefit Plans (Details) $ in Millions | Jan. 01, 2023 USD ($) |
Accumulated Benefit Obligations and Unrecognized Gain | |
Accumulated benefit obligations | $ 22,906 |
Unrecognized gain to be recorded in AOCI | 2,481 |
Net Benefit Liability | |
Projected benefit obligations | 22,953 |
Fair value of assets | 18,908 |
Net liability | 4,045 |
Defined benefit plans | |
Accumulated Benefit Obligations and Unrecognized Gain | |
Accumulated benefit obligations | 21,696 |
Unrecognized gain to be recorded in AOCI | 1,258 |
Net Benefit Liability | |
Projected benefit obligations | 21,743 |
Fair value of assets | 18,908 |
Net liability | 2,835 |
Other postretirement plans | |
Accumulated Benefit Obligations and Unrecognized Gain | |
Accumulated benefit obligations | 1,210 |
Unrecognized gain to be recorded in AOCI | 1,223 |
Net Benefit Liability | |
Projected benefit obligations | 1,210 |
Fair value of assets | 0 |
Net liability | $ 1,210 |
POSTRETIREMENT BENEFIT PLANS _3
POSTRETIREMENT BENEFIT PLANS - Components of Net Periodic Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Non-operating | $ (115) | $ (2) |
Defined benefit plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost – Operating | 14 | 5 |
Interest cost | 292 | 4 |
Expected return on plan assets | (356) | (7) |
Amortization of net loss (gain) | (29) | 2 |
Amortization of prior service cost (credit) | (1) | (1) |
Non-operating | (94) | (2) |
Net periodic (income) expense | (80) | 3 |
Other postretirement plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost – Operating | 2 | 0 |
Interest cost | 15 | 0 |
Expected return on plan assets | 0 | 0 |
Amortization of net loss (gain) | (16) | 0 |
Amortization of prior service cost (credit) | (22) | 0 |
Non-operating | (23) | 0 |
Net periodic (income) expense | $ (21) | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Jan. 03, 2023 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 29.90% | 24.60% | |
Deferred tax liabilities, undistributed foreign earnings | $ 30 | ||
Deferred tax assets, net | $ 3,099 | ||
Deferred tax assets, pension and post retirement benefits | $ 964 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) – NET (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Equity, beginning balance | $ 9,362 | $ 16,676 |
Other comprehensive income (loss) before reclass – net of taxes | 59 | (123) |
Unrecognized gain transferred from GE pension – net of taxes | 1,972 | |
Reclass from AOCI – net of taxes | (78) | (11) |
Equity, ending balance | 6,696 | 16,578 |
Accumulated other comprehensive income (loss) – net | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Equity, beginning balance | (1,878) | (1,037) |
Equity, ending balance | 75 | (1,171) |
Currency translation adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Equity, beginning balance | (1,845) | (969) |
Other comprehensive income (loss) before reclass – net of taxes | 85 | (153) |
Unrecognized gain transferred from GE pension – net of taxes | 0 | |
Reclass from AOCI – net of taxes | 0 | 0 |
Equity, ending balance | (1,760) | (1,122) |
Other comprehensive income (loss) before reclass, tax | (11) | (2) |
Unrecognized gain transferred from GE pension, tax | 0 | |
Reclass from AOCI, tax | 0 | 0 |
Benefit plans | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Equity, beginning balance | (42) | (100) |
Other comprehensive income (loss) before reclass – net of taxes | (13) | (5) |
Unrecognized gain transferred from GE pension – net of taxes | 1,972 | |
Reclass from AOCI – net of taxes | (52) | 0 |
Equity, ending balance | 1,865 | (105) |
Other comprehensive income (loss) before reclass, tax | 2 | (9) |
Unrecognized gain transferred from GE pension, tax | (509) | |
Reclass from AOCI, tax | 16 | 0 |
Cash flow hedges | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Equity, beginning balance | 9 | 32 |
Other comprehensive income (loss) before reclass – net of taxes | (13) | 35 |
Unrecognized gain transferred from GE pension – net of taxes | 0 | |
Reclass from AOCI – net of taxes | (26) | (11) |
Equity, ending balance | (30) | 56 |
Other comprehensive income (loss) before reclass, tax | 4 | (6) |
Unrecognized gain transferred from GE pension, tax | 0 | |
Reclass from AOCI, tax | $ 7 | $ 0 |
FINANCIAL INSTRUMENTS AND FAI_3
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
AOCI, cash flow hedge cumulative net gain | $ (30) | ||
Cash flow hedge gain to be reclassified within 12 months | (27) | ||
Cash flow hedges, pre-tax gains (losses) reclassified from AOCI into earnings | $ 33 | $ 11 | |
Maximum length of time hedged in cash flow hedge | 2 years | ||
Notional amount | $ 8,971 | $ 8,488 | |
Derivative, potential effect of rights of offset to assets and liabilities | 56 | ||
Equity investments without readily determinable fair value | 119 | 117 | |
Estimated fair value | |||
Derivative [Line Items] | |||
Long-term debt | 10,819 | 8,512 | |
Carrying value | |||
Derivative [Line Items] | |||
Long-term debt | 10,239 | 8,241 | |
Net investment hedges | Designated as hedging instrument | |||
Derivative [Line Items] | |||
Notional amount | 2,176 | 2,132 | |
Cross-currency swaps | Net investment hedges | Designated as hedging instrument | |||
Derivative [Line Items] | |||
Notional amount | $ 2,176 | $ 2,132 |
FINANCIAL INSTRUMENTS AND FAI_4
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Derivative Fair Values (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Gross Notional | $ 8,971 | $ 8,488 |
Fair Value – Assets | 119 | 66 |
Fair Value – Liabilities | 271 | 209 |
Designated as hedging instrument | Cash flow hedges | ||
Derivative [Line Items] | ||
Gross Notional | 1,226 | 1,240 |
Fair Value – Assets | 25 | 32 |
Fair Value – Liabilities | 62 | 53 |
Designated as hedging instrument | Cash flow hedges | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Gross Notional | 1,226 | 1,240 |
Fair Value – Assets | 25 | 32 |
Fair Value – Liabilities | 62 | 53 |
Designated as hedging instrument | Net investment hedges | ||
Derivative [Line Items] | ||
Gross Notional | 2,176 | 2,132 |
Fair Value – Assets | 21 | 0 |
Fair Value – Liabilities | 167 | 111 |
Designated as hedging instrument | Net investment hedges | Cross-currency swaps | ||
Derivative [Line Items] | ||
Gross Notional | 2,176 | 2,132 |
Fair Value – Assets | 21 | 0 |
Fair Value – Liabilities | 167 | 111 |
Not designated as hedging instrument | ||
Derivative [Line Items] | ||
Gross Notional | 5,569 | 5,116 |
Fair Value – Assets | 73 | 34 |
Fair Value – Liabilities | 42 | 45 |
Not designated as hedging instrument | Foreign currency exchange contracts | ||
Derivative [Line Items] | ||
Gross Notional | 4,690 | 4,456 |
Fair Value – Assets | 38 | 9 |
Fair Value – Liabilities | 22 | 20 |
Not designated as hedging instrument | Embedded derivatives | ||
Derivative [Line Items] | ||
Gross Notional | 594 | 604 |
Fair Value – Assets | 19 | 24 |
Fair Value – Liabilities | 14 | 18 |
Not designated as hedging instrument | Equity contracts | ||
Derivative [Line Items] | ||
Gross Notional | 231 | 8 |
Fair Value – Assets | 15 | 0 |
Fair Value – Liabilities | 3 | 6 |
Not designated as hedging instrument | Commodity derivatives | ||
Derivative [Line Items] | ||
Gross Notional | 54 | 48 |
Fair Value – Assets | 1 | 1 |
Fair Value – Liabilities | $ 3 | $ 1 |
FINANCIAL INSTRUMENTS AND FAI_5
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Derivative Pre-tax Gains (Losses) Recognized in OCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Cash flow hedges | $ (17) | $ 41 |
Net investment hedges | $ 35 | $ 0 |
FINANCIAL INSTRUMENTS AND FAI_6
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Effect of Derivatives Instruments on Statements of Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of cash flow hedges | $ 33 | $ 11 |
Selling, general and administrative | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of cash flow hedges | 0 | 0 |
Effects of net investment hedges | 0 | 0 |
Effect of derivatives not designated as hedges | 15 | 0 |
Selling, general and administrative | Foreign currency exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of cash flow hedges | 0 | 0 |
Effect of derivatives not designated as hedges | 0 | 0 |
Selling, general and administrative | Cross-currency swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of net investment hedges | 0 | 0 |
Selling, general and administrative | Embedded derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of derivatives not designated as hedges | 0 | 0 |
Selling, general and administrative | Equity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of derivatives not designated as hedges | 15 | 0 |
Selling, general and administrative | Commodity derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of derivatives not designated as hedges | 0 | 0 |
Other | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of cash flow hedges | 0 | 0 |
Effects of net investment hedges | 0 | 0 |
Effect of derivatives not designated as hedges | 1 | 13 |
Other | Foreign currency exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of cash flow hedges | 0 | 0 |
Effect of derivatives not designated as hedges | 1 | 0 |
Other | Cross-currency swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of net investment hedges | 0 | 0 |
Other | Embedded derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of derivatives not designated as hedges | (1) | 3 |
Other | Equity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of derivatives not designated as hedges | 3 | 0 |
Other | Commodity derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of derivatives not designated as hedges | (2) | 10 |
Products | Cost of revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of cash flow hedges | 27 | 9 |
Effects of net investment hedges | 0 | 0 |
Effect of derivatives not designated as hedges | 7 | (1) |
Products | Cost of revenue | Foreign currency exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of cash flow hedges | 27 | 9 |
Effect of derivatives not designated as hedges | 7 | (1) |
Products | Cost of revenue | Cross-currency swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of net investment hedges | 0 | 0 |
Products | Cost of revenue | Embedded derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of derivatives not designated as hedges | 0 | 0 |
Products | Cost of revenue | Equity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of derivatives not designated as hedges | 0 | 0 |
Products | Cost of revenue | Commodity derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of derivatives not designated as hedges | 0 | 0 |
Services | Cost of revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of cash flow hedges | 6 | 2 |
Effects of net investment hedges | 0 | 0 |
Effect of derivatives not designated as hedges | 2 | 0 |
Services | Cost of revenue | Foreign currency exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of cash flow hedges | 6 | 2 |
Effect of derivatives not designated as hedges | 2 | 0 |
Services | Cost of revenue | Cross-currency swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects of net investment hedges | 0 | 0 |
Services | Cost of revenue | Embedded derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of derivatives not designated as hedges | 0 | 0 |
Services | Cost of revenue | Equity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of derivatives not designated as hedges | 0 | 0 |
Services | Cost of revenue | Commodity derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effect of derivatives not designated as hedges | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS AND FAI_7
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Investment securities | $ 31 | $ 21 |
Derivatives | 119 | 66 |
Liabilities: | ||
Deferred compensation | 267 | 64 |
Derivatives | 271 | 209 |
Contingent consideration | 57 | 42 |
Level 1 | ||
Assets: | ||
Investment securities | 31 | 21 |
Derivatives | 0 | 0 |
Liabilities: | ||
Deferred compensation | 264 | 62 |
Derivatives | 0 | 0 |
Contingent consideration | 0 | 0 |
Level 2 | ||
Assets: | ||
Investment securities | 0 | 0 |
Derivatives | 119 | 66 |
Liabilities: | ||
Deferred compensation | 3 | 2 |
Derivatives | 268 | 203 |
Contingent consideration | 0 | 0 |
Level 3 | ||
Assets: | ||
Investment securities | 0 | 0 |
Derivatives | 0 | 0 |
Liabilities: | ||
Deferred compensation | 0 | 0 |
Derivatives | 3 | 6 |
Contingent consideration | $ 57 | $ 42 |
COMMITMENTS, GUARANTEES, PROD_3
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES - Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor obligations, maximum exposure | $ 164 |
COMMITMENTS, GUARANTEES, PROD_4
COMMITMENTS, GUARANTEES, PRODUCT WARRANTIES, AND OTHER LOSS CONTINGENCIES - Schedule of Product Warranties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 193 | $ 161 |
Current-year provisions | 49 | 55 |
Expenditures | (51) | (45) |
Other changes | 2 | (1) |
Balance at end of period | $ 193 | $ 170 |
RESTRUCTURING AND OTHER ACTIV_3
RESTRUCTURING AND OTHER ACTIVITIES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring expenses | $ 12 | $ 12 | |
Expected additional restructuring expense | 71 | ||
Accrual adjustment | 31 | ||
Restructuring liabilities | $ 99 | $ 75 |
RESTRUCTURING AND OTHER ACTIV_4
RESTRUCTURING AND OTHER ACTIVITIES - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | ||
Employee termination costs | $ 10 | $ 9 |
Facility and other exit costs | 1 | 3 |
Asset write-downs | 1 | 0 |
Total restructuring and other activities | $ 12 | $ 12 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of shares authorized for issuance | 41,000 |
Stock options | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Expiration period | 10 years |
Stock options | Minimum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Vesting period | 3 years |
Stock options | Maximum | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Vesting period | 3 years 6 months |
Performance Shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Units outstanding (in shares) | 1,271 |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 85 |
Intrinsic value, outstanding | $ | $ 104 |
Weighted average remaining contractual term, outstanding | 2 years |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Weighted Average Grant Date Fair Value (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted-average grant date fair value of stock options (in dollars per share) | $ 25 | |
RSUs | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted-average grant date fair value (in dollars per share) | $ 72 | 72 |
PSUs | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted-average grant date fair value (in dollars per share) | $ 84 |
SHARE-BASED COMPENSATION - Sche
SHARE-BASED COMPENSATION - Schedule of Stock Options Valuation Assumptions (Details) - Stock options | 3 Months Ended |
Mar. 31, 2023 $ / shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Risk free rate | 3.60% |
Dividend yield | 0% |
Expected volatility | 26.50% |
Expected term (in years) | 6 years 3 months 18 days |
Strike price (in dollars per share) | $ 71 |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary of Share-Based Compensation Activity (Details) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | |
Stock options, shares | ||
Outstanding at beginning of period (in shares) | shares | 3,738 | |
Granted (in shares) | shares | 2,037 | |
Exercised (in shares) | shares | (326) | |
Forfeited (in shares) | shares | (3) | |
Expired (in shares) | shares | (5) | |
Outstanding at end of period (in shares) | shares | 5,441 | 5,441 |
Exercisable (in shares) | shares | 3,182 | 3,182 |
Expected to vest (in shares) | shares | 1,681 | 1,681 |
Stock options, weighted average exercise price | ||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 90 | |
Granted (in dollars per share) | $ / shares | 71 | |
Exercised (in dollars per share) | $ / shares | 56 | |
Forfeited (in dollars per share) | $ / shares | 68 | |
Expired (in dollars per share) | $ / shares | 143 | |
Outstanding at end of period (in dollars per share) | $ / shares | 85 | $ 85 |
Exercisable (in dollars per share) | $ / shares | 94 | 94 |
Expected to vest (in dollars per share) | $ / shares | $ 71 | $ 71 |
Stock options, weighted average contractual term (in years) | ||
Stock options, weighted average remaining contractual term, outstanding | 6 years 7 months 6 days | |
Stock options, weighted average remaining contractual term, exercisable | 4 years 3 months 18 days | |
Stock options, weighted average remaining contractual term, expected to vest | 9 years 8 months 12 days | |
Stock options, intrinsic value | ||
Stock options, intrinsic value, outstanding | $ | $ 57 | $ 57 |
Stock options, intrinsic value, exercisable | $ | 33 | 33 |
Stock options, intrinsic value, expected to vest | $ | $ 18 | $ 18 |
RSUs | ||
RSUs, shares | ||
Outstanding at beginning of period (in shares) | shares | 3,551 | |
Granted (in shares) | shares | 1,612 | |
Vested (in shares) | shares | (558) | |
Forfeited (in shares) | shares | (52) | |
Outstanding at end of period (in shares) | shares | 4,553 | 4,553 |
Expected to vest (in shares) | shares | 3,817 | 3,817 |
RSUs, weighted average grant date fair value | ||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 58 | |
Granted (in dollars per share) | $ / shares | 72 | $ 72 |
Vested (in dollars per share) | $ / shares | 70 | |
Forfeited (in dollars per share) | $ / shares | 63 | |
Outstanding at end of period (in dollars per share) | $ / shares | 63 | 63 |
Expected to vest (in dollars per share) | $ / shares | $ 54 | $ 54 |
RSUs, weighted average contractual term (in years) | ||
Weighted average remaining contractual term, outstanding | 2 years | |
Weighted average remaining contractual term, expected to vest | 2 years | |
RSUs, intrinsic value | ||
Intrinsic value, outstanding | $ | $ 374 | $ 374 |
Intrinsic value, expected to vest | $ | $ 313 | $ 313 |
SHARE-BASED COMPENSATION - Su_3
SHARE-BASED COMPENSATION - Summary of Share-Based Compensation Expense (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Compensation expense (pre-tax) | $ 24 |
Income tax benefits | (8) |
Compensation expense (after-tax) | $ 16 |
SHARE-BASED COMPENSATION - Su_4
SHARE-BASED COMPENSATION - Summary of Other Share-Based Compensation Data (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Unrecognized compensation expense (amortized over a weighted average period of 2.0 years) | $ 212 |
Cash received from stock options exercised | 18 |
Intrinsic value of stock options exercised and RSU/PSUs vested | $ 48 |
Weighted average period of recognition | 2 years |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | Jan. 03, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Earnings Per Share [Abstract] | |||
Common stock, outstanding (in shares) | 454,000,000 | 454,617,131 | 100 |
Sale of stock, ownership after transaction | 19.90% |
EARNINGS PER SHARE - Schedule o
EARNINGS PER SHARE - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income | $ 383 | $ 402 |
Net (income) attributable to noncontrolling interests | (11) | (13) |
Net income attributable to GE HealthCare | 372 | 389 |
Deemed preferred stock dividend of redeemable noncontrolling interest | (183) | 0 |
Net income attributable to GE HealthCare common stockholders | $ 189 | $ 389 |
Denominator: | ||
Basic weighted-average shares outstanding | 454 | 454 |
Dilutive effect of common stock equivalents (in shares) | 3 | 0 |
Diluted weighted-average shares outstanding | 457 | 454 |
Basic earnings per share (in dollars per share) | $ 0.42 | $ 0.86 |
Diluted earnings per share (in dollars per share) | $ 0.41 | $ 0.86 |
Antidilutive securities (in shares) | 4 | 0 |
SUPPLEMENTAL FINANCIAL INFORM_3
SUPPLEMENTAL FINANCIAL INFORMATION - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 2,324 | $ 1,440 | ||
Short-term restricted cash | 3 | 5 | ||
Total cash, cash equivalents, and restricted cash as presented on the Condensed Consolidated and Combined Statements of Financial Position | 2,327 | 1,445 | ||
Long-term restricted cash | 7 | 6 | ||
Total cash, cash equivalents, and restricted cash as presented on the Condensed Consolidated and Combined Statements of Cash Flows | $ 2,334 | $ 1,451 | $ 506 | $ 561 |
SUPPLEMENTAL FINANCIAL INFORM_4
SUPPLEMENTAL FINANCIAL INFORMATION - Schedule of Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 1,097 | $ 1,053 |
Work in process | 107 | 91 |
Finished goods | 1,052 | 1,011 |
Inventories | $ 2,256 | $ 2,155 |
SUPPLEMENTAL FINANCIAL INFORM_5
SUPPLEMENTAL FINANCIAL INFORMATION - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Supplier Finance Program [Line Items] | ||
Supplier finance program, payment terms, maximum threshold | 180 days | |
Supplier finance program obligation | $ 390 | $ 392 |
Minimum | ||
Supplier Finance Program [Line Items] | ||
Supplier finance program, payment terms | 30 days | |
Maximum | ||
Supplier Finance Program [Line Items] | ||
Supplier finance program, payment terms | 150 days |
SUPPLEMENTAL FINANCIAL INFORM_6
SUPPLEMENTAL FINANCIAL INFORMATION - Schedule of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jan. 03, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Balance at beginning of period | $ 201 | $ 230 | $ 220 | |
Net income attributable to redeemable noncontrolling interests | 10 | 9 | ||
Redemption value adjustments | $ 183 | 183 | 0 | |
Exercise of redeemable noncontrolling interests | (222) | 0 | ||
Balance at end of period | $ 201 | $ 229 | ||
Subsequent event | Forecast | ||||
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Noncontrolling interest redemption payment | $ 222 |
SUPPLEMENTAL FINANCIAL INFORM_7
SUPPLEMENTAL FINANCIAL INFORMATION - Schedule of Other Income (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Net interest and investment income (expense) | $ 13 | $ (2) |
Equity method investment income | 4 | 3 |
Change in fair value of assumed obligation | (13) | 0 |
Other items, net | 4 | 25 |
Total other income (expense) – net | $ 8 | $ 26 |
RELATED PARTIES - Narrative (De
RELATED PARTIES - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) director | Mar. 31, 2022 USD ($) | |
GE, before spin-off | Separation costs related to pension, benefit and contribution plans | ||
Related Party Transaction [Line Items] | ||
Transaction amount | $ 59 | |
GE, before spin-off | Share-based compensation expense | ||
Related Party Transaction [Line Items] | ||
Transaction amount | $ 19 | |
GE, after spin-off | ||
Related Party Transaction [Line Items] | ||
Due from related parties, non-current | $ 77 | |
Due to related parties, non-current | 108 | |
GE, after spin-off | Transition Services Agreement | ||
Related Party Transaction [Line Items] | ||
Transaction amount | $ 108 | |
Agreement term | 36 months | |
GE, after spin-off | Tax Matters Agreement | ||
Related Party Transaction [Line Items] | ||
Period following distribution date | 2 years | |
Directors | Product and service sales | ||
Related Party Transaction [Line Items] | ||
Number of board members | director | 2 | |
Revenue from related parties | $ 24 |
RELATED PARTIES - Schedule of R
RELATED PARTIES - Schedule of Related Party Transactions (Details) - GE, before spin-off $ in Millions | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Costs for centralized services | |
Related Party Transaction [Line Items] | |
Transaction amount | $ 13 |
Costs associated with employee medical insurance | |
Related Party Transaction [Line Items] | |
Transaction amount | 30 |
Costs for corporate and shared services | |
Related Party Transaction [Line Items] | |
Transaction amount | $ 116 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Apr. 25, 2023 $ / shares |
Subsequent event | |
Subsequent Event [Line Items] | |
Dividends declared (in dollars per share) | $ 0.03 |