Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Part II. Financial Information
Index
Item 8. Financial Statements and Supplementary Data			Page
Report of Independent Registered Public Accounting Firm - Deloitte & Touche LLP (PCAOB ID No. 34)			65
Consolidated and Combined Statements of Income			68
Consolidated and Combined Statements of Comprehensive Income (Loss)			69
Consolidated and Combined Statements of Financial Position			70
Consolidated and Combined Statements of Changes in Equity			71
Consolidated and Combined Statements of Cash Flows			72
Notes to the Consolidated and Combined Financial Statements			73
Note 1. Organization and Basis of Presentation			73
Note 2. Summary of Significant Accounting Policies			74
Note 3. Revenue Recognition			83
Note 4. Segment and Geographical Information			84
Note 5. Receivables			86
Note 6. Financing Receivables			87
Note 7. Leases			87
Note 8. Acquisitions, Goodwill, and Other Intangible Assets			89
Note 9. Borrowings			90
Note 10. Postretirement Benefit Plans			91
Note 11. Income Taxes			98
Note 12. Accumulated Other Comprehensive (Income) Loss – Net			102
Note 13. Financial Instruments and Fair Value Measurements			102
Note 14. Commitments, Guarantees, Product Warranties, and Other Loss Contingencies			106
Note 15. Restructuring and Other Activities – Net			108
Note 16. Share-Based Compensation			109
Note 17. Earnings Per Share			111
Note 18. Supplemental Financial Information			111
Note 19. Related Parties			114
Note 20. Discontinued Operations			116
Note 21. Subsequent Events			116

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of GE HealthCare Technologies, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated and combined statements of financial position of GE HealthCare Technologies, Inc. (the “Company”) as of December 31, 2023 and 2022, the related consolidated and combined statements of income, comprehensive income (loss), changes in equity, and cash flows, for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 6, 2024, expressed an unqualified opinion on the Company’s internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Income Taxes – Valuation Allowance on Deferred Tax Assets — Refer to Notes 2 and 11 to the financial statements

Critical Audit Matter Description

The Company recognizes deferred income taxes for tax attributes and for differences between the financial statement and tax basis of assets and liabilities at enacted statutory tax rates in effect for the years in which the deferred tax liability or asset is expected to be settled or realized. A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. Future realization of deferred tax assets depends on the existence of sufficient taxable income of the appropriate character. Sources of taxable income include future reversals of deferred tax assets and liabilities, expected future taxable income, taxable income in prior carryback years if permitted under the tax law, and tax planning strategies.

The Company’s determination of the valuation allowance for certain deferred tax assets involves judgments and estimates, including the projected timing and pattern of future reversals of existing taxable temporary differences and the projection of future sources of taxable income. Auditing management’s projected timing and pattern of future reversals of existing taxable temporary differences and the projection of future sources of taxable income, which affect the recorded valuation allowances for certain deferred tax assets, required a high degree of auditor judgment and an increased extent of effort, including the need to involve our income tax specialists.

How the Critical Audit Matter Was Addressed in the Audit

With the assistance of our income tax specialists, our audit procedures related to the determination that it is more likely than not that sufficient taxable income will be generated in the future to realize certain net deferred tax assets included the following, among others:

• We considered relevant tax laws and regulations in evaluating the appropriateness of management’s estimates of future sources of taxable income.

• We evaluated the reasonableness of management’s estimates of future sources of taxable income by comparing the estimates to historical sources of taxable income or loss.

• We evaluated management’s projected timing and projected pattern of the reversals of existing taxable temporary differences.

• We evaluated whether the estimated future sources of taxable income were of the appropriate character to utilize the deferred tax assets under tax law.

/s/ Deloitte & Touche LLP
Chicago, Illinois
February 6, 2024
We have served as the Company’s auditor since 2022.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of GE HealthCare Technologies Inc.

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of GE HealthCare Technologies Inc. (the “Company”) as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2023, of the Company and our report dated February 6, 2024, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte & Touche LLP
Chicago, Illinois
February 6, 2024

Consolidated and Combined Statements of Income
									For the years ended December 31
(In millions, except per share amounts)												2023			2022			2021
Sales of products												$	13,127		$	12,044		$	11,165
Sales of services												6,425			6,297			6,420
Total revenues												19,552			18,341			17,585
Cost of products												8,465			7,975			7,196
Cost of services												3,165			3,187			3,215
Gross profit												7,922			7,179			7,174
Selling, general, and administrative												4,282			3,631			3,563
Research and development												1,205			1,026			816
Total operating expenses												5,487			4,657			4,379
Operating income												2,435			2,522			2,795
Interest and other financial charges – net												542			77			40
Non-operating benefit (income) costs												(382)			(5)			3
Other (income) expense – net												(86)			(62)			(123)
Income from continuing operations before income taxes												2,361			2,512			2,875
Benefit (provision) for income taxes												(743)			(563)			(600)
Net income from continuing operations												1,618			1,949			2,275
Income (loss) from discontinued operations, net of taxes												(4)			18			18
Net income												1,614			1,967			2,293
Net (income) loss attributable to noncontrolling interests												(46)			(51)			(46)
Net income attributable to GE HealthCare												1,568			1,916			2,247
Deemed preferred stock dividend of redeemable noncontrolling interest												(183)			—			—
Net income attributable to GE HealthCare common stockholders												$	1,385		$	1,916		$	2,247
Earnings per share from continuing operations attributable to GE HealthCare common stockholders:
Basic												$	3.06		$	4.18		$	4.91
Diluted												3.04			4.18			4.91
Earnings per share attributable to GE HealthCare common stockholders:
Basic												$	3.05		$	4.22		$	4.95
Diluted												3.03			4.22			4.95
Weighted-average number of shares outstanding:
Basic												455			454			454
Diluted												458			454			454

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

Consolidated and Combined Statements of Comprehensive Income (Loss)
									For the years ended December 31
(In millions, net of tax)												2023			2022			2021
Net income attributable to GE HealthCare												$	1,568		$	1,916		$	2,247
Net income (loss) attributable to noncontrolling interests												46			51			46
Net income												1,614			1,967			2,293
Other comprehensive income (loss):
Currency translation adjustments – net of taxes												74			(878)			(326)
Benefit plans – net of taxes												(897)			58			80
Cash flow hedges – net of taxes												(27)			(23)			48
Other comprehensive income (loss)												(850)			(843)			(198)
Comprehensive income (loss)												764			1,124			2,095
Less: Comprehensive income (loss) attributable to noncontrolling interests												9			51			46
Comprehensive income attributable to GE HealthCare												$	755		$	1,073		$	2,049

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

Consolidated and Combined Statements of Financial Position
			As of
(In millions, except share and per share amounts)			December 31, 2023			December 31, 2022
Cash, cash equivalents, and restricted cash			$	2,504		$	1,445
Receivables – net of allowances of $98 and $91			3,525			3,295
Due from related parties			32			17
Inventories			1,960			2,155
Contract and other deferred assets			1,000			989
All other current assets			389			417
Current assets			9,410			8,318
Property, plant, and equipment – net			2,500			2,314
Goodwill			12,936			12,813
Other intangible assets – net			1,253			1,520
Deferred income taxes			4,474			1,550
All other assets			1,881			1,024
Total assets			$	32,454		$	27,539
Short-term borrowings			$	1,006		$	15
Accounts payable			2,947			2,944
Due to related parties			99			146
Contract liabilities			1,918			1,896
All other current liabilities			3,011			2,190
Current liabilities			8,981			7,191
Long-term borrowings			8,436			8,234
Compensation and benefits			5,782			549
Deferred income taxes			68			370
All other liabilities			1,877			1,603
Total liabilities			25,144			17,947
Commitments and contingencies
Redeemable noncontrolling interests			165			230
Common stock, par value $0.01 per share, 1,000,000,000 shares authorized, 455,342,290 shares issued and outstanding as of December 31, 2023; 100 shares issued and outstanding as of December 31, 2022			5			—
Additional paid-in capital			6,493			—
Retained earnings			1,326			—
Net parent investment			—			11,235
Accumulated other comprehensive income (loss) – net			(691)			(1,878)
Total equity attributable to GE HealthCare			7,133			9,357
Noncontrolling interests			12			5
Total equity			7,145			9,362
Total liabilities, redeemable noncontrolling interests, and equity			$	32,454		$	27,539

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

Consolidated and Combined Statements of Changes in Equity
			Common stock
(In millions)			Common shares outstanding			Par value			Additional paid-in capital			Retained earnings			Net parent investment			Accumulated other comprehensive income (loss) – net			Equity attributable to noncontrolling interests			Total equity
Balances as of December 31, 2020			—			$	—		$	—		$	—		$	15,566		$	(839)		$	24		$	14,751
Net income attributable to GE HealthCare			—			—			—			—			2,247			—			—			2,247
Other comprehensive income (loss) attributable to GE HealthCare			—			—			—			—			—			(198)			—			(198)
Transfers (to) from GE			—			—			—			—			(121)			—			—			(121)
Changes in equity attributable to noncontrolling interests			—			—			—			—			—			—			(3)			(3)
Balances as of December 31, 2021			—			—			—			—			17,692			(1,037)			21			16,676
Net income attributable to GE HealthCare			—			—			—			—			1,916			—			—			1,916
Other comprehensive income (loss) attributable to GE HealthCare			—			—			—			—			—			(841)			—			(841)
Transfers (to) from GE			—			—			—			—			(8,373)			—			—			(8,373)
Changes in equity attributable to noncontrolling interests			—			—			—			—			—			—			(16)			(16)
Balances as of December 31, 2022			—			—			—			—			11,235			(1,878)			5			9,362
Net transfers from GE, including Spin-Off-related adjustments			—			—			—			—			(4,851)			2,000			2			(2,849)
Issuance of common stock in connection with the Spin-Off and reclassification of net parent investment			454			5			6,379			—			(6,384)			—			—			—
Issuance of common stock in connection with employee stock plans, net of shares withheld for employee taxes			1			—			—			—			—			—			—			—
Net income attributable to GE HealthCare			—			—			—			1,568			—			—			—			1,568
Dividends declared ($0.12 per common share)			—			—			—			(55)			—			—			—			(55)
Other comprehensive income (loss) attributable to GE HealthCare			—			—			—			—			—			(813)			—			(813)
Changes in equity attributable to noncontrolling interests			—			—			—			—			—			—			5			5
Share-based compensation			—			—			114			—			—			—			—			114
Changes in equity due to redemption value adjustments on redeemable noncontrolling interests			—			—			—			(187)			—			—			—			(187)
Balances as of December 31, 2023			455			$	5		$	6,493		$	1,326		$	—		$	(691)		$	12		$	7,145

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

Consolidated and Combined Statements of Cash Flows
			For the years ended December 31
(In millions)			2023			2022			2021
Net income			$	1,614		$	1,967		$	2,293
Less: Income (loss) from discontinued operations, net of taxes			(4)			18			18
Net income from continuing operations			$	1,618		$	1,949		$	2,275
Adjustments to reconcile Net income from continuing operations to Cash from (used for) operating activities
Depreciation of property, plant, and equipment			248			228			225
Amortization of intangible assets			362			405			400
Gain on fair value remeasurement of contingent consideration			(17)			(65)			—
Net periodic postretirement benefit plan (income) expense			(332)			9			25
Postretirement plan contributions			(357)			(18)			(20)
Share-based compensation			114			67			76
Provision for income taxes			743			563			600
Cash paid during the year for income taxes			(474)			(851)			(615)
Changes in operating assets and liabilities, excluding the effects of acquisitions and dispositions:
Receivables			(185)			(231)			(1,336)
Due from related parties			4			13			157
Inventories			111			(402)			(435)
Contract and other deferred assets			10			(222)			23
Accounts payable			(13)			481			263
Due to related parties			(84)			(33)			(21)
Contract liabilities			26			138			(21)
All other operating activities			327			103			11
Cash from (used for) operating activities – continuing operations			2,101			2,134			1,607
Cash flows – investing activities
Additions to property, plant and equipment and internal-use software			(387)			(310)			(248)
Dispositions of property, plant, and equipment			1			4			15
Purchases of businesses, net of cash acquired			(147)			—			(1,481)
All other investing activities			(25)			(92)			(47)
Cash from (used for) investing activities – continuing operations			(558)			(398)			(1,761)
Cash flows – financing activities
Net increase (decrease) in borrowings (maturities of 90 days or less)			(12)			9			(7)
Newly issued debt, net of debt issuance costs (maturities longer than 90 days)			2,006			8,198			5
Repayments and other reductions (maturities longer than 90 days)			(855)			(3)			(10)
Dividends paid to stockholders			(41)			—			—
Redemption of noncontrolling interests			(211)			—			—
Net transfers (to) from GE			(1,317)			(8,934)			(238)
All other financing activities			(48)			(92)			(13)
Cash from (used for) financing activities – continuing operations			(478)			(822)			(263)
Cash from (used for) operating activities – discontinued operations			—			(21)			—
Effect of foreign currency rate changes on cash, cash equivalents, and restricted cash			(10)			(3)			(34)
Increase (decrease) in cash, cash equivalents, and restricted cash			1,055			890			(451)
Cash, cash equivalents, and restricted cash at beginning of year			1,451			561			1,012
Cash, cash equivalents, and restricted cash as of December 31			$	2,506		$	1,451		$	561
Supplemental disclosure of cash flows information
Cash paid during the year for interest			$	(570)		$	—		$	(21)
Non-cash investing activities
Acquired but unpaid property, plant, and equipment			$	140		$	136		$	93

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

NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION

ORGANIZATION.

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, helping enable precision care by increasing health system capacity, enhancing productivity, digitizing healthcare delivery, and improving clinical outcomes while serving patients’ demand for greater efficiency, access, and personalized medicine. Our products, services, and solutions are designed to enable clinicians to make more informed decisions quickly and efficiently, improving patient care from diagnosis to therapy to monitoring.

On January 3, 2023 (the “Distribution Date”), the General Electric Company (“GE”) 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 result of the Distribution, the Company became an independent public company. As of December 31, 2023, GE’s beneficial ownership was approximately 13.5% of the Company’s outstanding common stock.

In connection with the Spin-Off, certain adjustments were recorded to reflect transfers from GE, the draw-down of the Term Loan Facility and settlement of Spin-Off transactions with GE, which resulted in the net reduction in Total equity of $2,849 million. These items substantially consisted of the transfer of: (1) certain pension plan liabilities and assets as described in Note 10, “Postretirement Benefit Plans,” (2) certain deferred income taxes as described in Note 11, “Income Taxes,” (3) deferred compensation liabilities of $548 million, and (4) employee termination obligations as described in Note 15, “Restructuring and Other Activities – Net.”

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 19, “Related Parties” for more information on these agreements.

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

BASIS OF PRESENTATION.

The 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 (loss), and cash flows for the years ended December 31, 2023, 2022, and 2021, and the financial position as of December 31, 2023 and 2022. All intercompany balances and transactions within the Company have been eliminated in the consolidated and combined financial statements. 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 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 combined financial statements do not purport to reflect what the results of operations, comprehensive income (loss), financial position, or cash flows would have been had the Company operated as a separate, stand-alone entity prior to the Spin-Off.

The financial statements include certain transactions with GE, which are disclosed as related party transactions. See Note 19, “Related Parties” for further information.

Following the Spin-Off, certain prior year amounts in the financial statements and notes thereto have been reclassified to conform to the current year presentation, which provides additional detail to readers of our financial statements. Amounts in the Consolidated and Combined Statements of Cash Flows that were previously included within the All other operating activities line have been reclassified to separate lines including Net periodic postretirement benefit plan (income) expense, Postretirement plan contributions, and Share-based compensation.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ESTIMATES AND ASSUMPTIONS.

The preparation of the 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 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.

Estimates are used for, but are not limited to, determining the following: revenue from contracts with customers, recoverability of long-lived assets and inventory, valuation of goodwill and intangible assets, useful lives used in depreciation and amortization, asset retirement obligations, income taxes and related valuation allowances, accruals for contingencies including legal and product warranties, actuarial assumptions used to determine costs of pension and other postretirement benefits, valuation of pension assets, valuation and recoverability of receivables, valuation of derivatives, and valuation of assets acquired, liabilities assumed, and contingent consideration as a result of acquisitions.

There have been no material impacts to our accounting estimates as of December 31, 2023 and 2022, or the results for the years ended December 31, 2023, 2022, and 2021, from the COVID-19 pandemic. The federal COVID-19 Public Health Emergency declaration in the U.S. ended in May 2023, and COVID-19 restrictions have been lifted in many locations globally.

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.

The Company recognizes a contract with a customer when there is a legally enforceable agreement between the Company and its customer, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. The Company’s revenues are measured based on the consideration specified in the contract with each customer net of any sales incentives, discounts, returns, chargebacks, group purchasing organization fees, rebates, or credits, as well as taxes collected from customers that are remitted to government authorities. Our estimates for these deductions, which are accounted for as variable consideration, are based on historical experience and consider current and forecasted market trends. We record these estimated amounts as a reduction to revenue when we recognize the related product or service sales. Payment terms are generally within 12 months. Payment terms within 12 months are not treated as significant financing components.

Contracts for the sale of products and services often include multiple distinct performance obligations, usually involving an upfront deliverable of equipment and future performance obligations such as installation, training, or the future delivery of products or services. If a contract contains more than one performance obligation, the transaction price is allocated to each performance obligation based on relative stand-alone selling price. Stand-alone selling price is obtained from sources such as the separate selling price for that or a similar item if reasonably available. If such evidence is not reasonably available, we use our best estimate of selling price, which is established consistent with the pricing strategy of the Company and considers product configuration, geography, customer type, and other market-specific factors.

Revenue is recognized in the period in which the customer obtains control of the underlying products or services, allowing them the ability to direct the use of, and obtain substantially all of, the remaining benefits of such product or service. This may occur at a point in time or over time. Shipping and handling costs to deliver products to customers are expensed as incurred and recognized within Cost of products or Cost of services in our Consolidated and Combined Statements of Income.

For standard, assurance-type warranties that are provided with products, we estimate the cost that may be incurred during the warranty period and record a liability at the time the revenue is recognized. The provision recorded reflects the estimated costs of replacement and free-of-charge services that will be incurred related to the products sold. Service-type warranties or extended warranties sold with products are considered separate performance obligations. As such, a portion of the overall transaction price is allocated to these performance obligations and recognized in revenue over time, as the performance obligations are satisfied.

The Company capitalizes certain direct incremental costs incurred to obtain a contract, primarily commissions. Costs to obtain a contract are classified within Contract and other deferred assets or All other assets in the Consolidated and Combined Statements of Financial Position and are recognized based on the timing of when the Company expects to earn related revenues. Management assesses these costs for impairment based on periodic assessments of recoverability.

Performance Obligations Satisfied at a Point in Time

We primarily recognize revenue from sales of products at the point in time that the customer obtains control, which is generally no earlier than when the customer has physical possession. Where arrangements include customer acceptance provisions based on seller- or customer-specified criteria, we recognize revenue when we have concluded that the customer has control of the products, which is typically at the point of acceptance. Our billing terms for these point-in-time product contracts generally coincide with delivery to the customer and customer acceptance; however, periodically, we receive customer advances and deposits from customers. These are recognized as contract liabilities in the Consolidated and Combined Statements of Financial Position. Any differences between the timing of our revenue recognition and customer billings (based on contractual terms) result in changes to our contract asset or contract liability positions.

Performance Obligations Satisfied Over Time

We recognize revenue from the sale of certain service contracts, including preventative maintenance, corrective services, and extended warranties over time on a ratable basis consistent with the nature, timing, and extent of our services, which primarily relate to routine maintenance and as-needed product repairs. Our billing terms for these contracts vary and can occur in advance of or following the period of service; however, we generally invoice periodically as services are provided. The differences between the timing of our revenue recognized and customer billings (based on contractual terms) result in changes to our contract asset or contract liability positions.

See Note 3, “Revenue Recognition” for further information.

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH.

Cash deposits, short-term investments, and high-liquidity mutual funds with original maturities of three months or less are included in Cash, cash equivalents, and restricted cash. Restricted cash primarily relates to funds restricted in connection with escrow accounts and other contractual and legal restrictions. For the period prior to the Spin-Off, the cash presented in the Combined Statement of Financial Position represents cash not subject to the GE centralized cash management process. Cash held in commingled accounts with GE, or its affiliates, is presented within Net parent investment in the Combined Statement of Financial Position.

See Note 18, “Supplemental Financial Information” for further information.

INVESTMENT SECURITIES.

Publicly traded equity securities for which we do not have the ability to exercise significant influence are recorded at fair value with changes in fair value recognized in Other (income) expense – net in the Consolidated and Combined Statements of Income. Privately held equity securities for which we do not have the ability to exercise significant influence are accounted for using the measurement alternative approach and are recorded at cost less impairment, if any, adjusted to fair value for any observable price changes in orderly transactions for the identical or a similar investment of the same issuer, with changes in the measurement recognized through Other (income) expense – net in the Consolidated and Combined Statements of Income. Equity investments without readily determinable fair value as of December 31, 2023 and 2022 were $156 million and $117 million, respectively. Investment securities are recognized within All other assets in the Consolidated and Combined Statements of Financial Position.

EQUITY METHOD INVESTMENTS.

Equity method investments are investments in entities in which we do not have a controlling financial interest, but over which we have significant influence. Equity method investments are assessed for other-than-temporary impairment when events occur or circumstances change that indicate it is more likely than not the fair value of the asset is below its carrying value. Equity method investments are recognized within All other assets in the Consolidated and Combined Statements of Financial Position. Our share of the results of equity method investments is recognized within Other (income) expense – net in the Consolidated and Combined Statements of Income.

See Note 18, “Supplemental Financial Information” for further information.

RECEIVABLES.

Amounts due from customers arising from the sales of products and services are recorded at the outstanding amount, less allowances for credit losses, chargebacks, and other credits. We regularly monitor the recoverability of our receivables.

See Note 5, “Receivables” for further information.

FINANCING RECEIVABLES.

Our financing receivables portfolio consists of a variety of loans and leases, including both larger-balance, non-homogeneous loans and leases, and smaller-balance homogeneous loans and leases.

Loans

Loans represent term loans that are collateralized by equipment and other assets. Loans are classified as either held for sale or held for investment (“HFI”) based on management’s intent and ability to hold the loans for the foreseeable future. Loans which the Company does not have the ability and intent to hold for investment purposes and those which the Company intends to hold for sale in the foreseeable future are accounted for as loans held for sale. Loans held for sale are recorded at the lower of historical cost or current fair value with any fair value write-down (or change to the write-down) recorded as a valuation allowance through current period earnings in the period in which the change occurs. Loans classified as HFI are recorded at amortized cost.

Investment in Finance Leases

Finance leases include mostly sales-type leases of equipment and represent net unpaid rentals and estimated unguaranteed residual values of leased equipment, less related deferred income and less the allowance for credit losses. See Note 7, “Leases” for further information.

See “Allowance for credit losses” below for the Company’s policy regarding allowances on financing receivables.

Credit Quality Indicators

We manage our financing receivables portfolio using delinquency and nonaccrual data as key performance indicators. We assess the overall quality of the portfolio based on a potential risk of loss measure. The metric incorporates both the borrower’s credit quality along with any related collateral protection. Financing receivables are considered past due if default on a contractual principal or interest payment exists for a period of 30 days or more. We stop accruing interest on financing receivables at the earlier of when collection of an account becomes doubtful or the account becomes 90 days past due. Although we stop accruing interest in advance of payments, we recognize income within Other (income) expense – net in the Consolidated and Combined Statements of Income when we determine that the account is returned to accrual status, provided that the amount does not exceed that which would have been earned at the historical effective interest rate.

See Note 6, “Financing Receivables” for further information.

ALLOWANCE FOR CREDIT LOSSES**.**

When we record customer receivables, contract assets, and financing receivables, we maintain an allowance for credit losses for the current expected credit losses. Each period, the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets. The credit losses are recognized within Selling, general, and administrative (“SG&A”) in the Consolidated and Combined Statements of Income. For financing receivables, expected credit losses are calculated based on the gross carrying amount of the financial asset, multiplied by a factor reflecting the probability of default and the loss in the event of default. We routinely evaluate our entire portfolio for potential specific credit or collection issues that might indicate an impairment.

We estimate expected credit losses based on relevant information from past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. When measuring expected credit losses, we pool assets with similar credit risk characteristics. Changes in the relevant information may significantly affect the estimates of expected credit losses.

INVENTORIES.

Inventories are stated at lower of cost or net realizable values. Cost of inventories is determined on a first-in, first-out basis.

Inventories are generally classified as current, however, based on age or historical consumption certain inventories are considered non-current and are recognized, net of related reserves, within All other assets in the Consolidated and Combined Statements of Financial Position.

As necessary, we record provisions and write-downs for excess, slow moving, and obsolete inventory. To determine these amounts, we regularly review inventory quantities on hand and compare them to historical utilization and estimates of future product demand, market conditions and technological developments.

See Note 18, “Supplemental Financial Information” for further information.

PROPERTY, PLANT, AND EQUIPMENT.

The cost of property, plant, and equipment is depreciated on a straight-line basis over its estimated useful life. Equipment leased to others under operating leases is depreciated on a straight-line basis over the term of the lease. Repair and maintenance costs are expensed as incurred.

See Note 18, “Supplemental Financial Information” for further information.

LEASES.

Lessee Arrangements

At lease commencement, we record a lease liability and corresponding right-of-use (“ROU”) asset. ROU assets are recognized within Property, plant, and equipment – net and lease liabilities are recognized within All other current liabilities and All other liabilities in the Consolidated and Combined Statements of Financial Position. Options to extend a lease are included as part of the ROU lease asset and liability at commencement when it is reasonably certain the Company will exercise the option. We have elected to combine lease and non-lease components in determining our lease liability for all leased assets except our vehicle leases. Non-lease components are generally related to services that the lessor performs for the Company associated with the leased asset. As the Company’s leases typically do not provide an implicit rate, the present value of our lease liability is determined using our incremental collateralized borrowing rate at lease commencement for leases that commenced post-Spin-Off and GE’s incremental collateralized borrowing rate at lease commencement for leases that commenced pre-Spin-Off. For leases with an initial term of 12 months or less, an ROU asset and lease liability are not recognized, and lease expense is recognized on a straight-line basis over the lease term. Certain of our leases include provisions for variable lease payments which are based on, but not limited to, maintenance, insurance, taxes, index escalations, and usage-based amounts. The Company recognizes variable lease payments not included in its lease liabilities in the period in which the obligation for those payments is incurred. We review ROU assets for impairment annually or when events occur or circumstances change that indicate that the asset may be impaired.

Lessor Arrangements

Equipment leased to others under operating leases is recognized within Property, plant, and equipment – net in the Consolidated and Combined Statements of Financial Position. Leases classified as sales-type leases or direct financing leases are recognized within All other current assets and All other assets, respectively, in the Consolidated and Combined Statements of Financial Position. The terms of the related contracts, including the proportion of fixed versus variable payments and any options to shorten or extend the lease term or purchase the underlying asset, vary by customer. Finance lease receivables are tested for impairment as described in the “Financing Receivables” section above.

See Note 6, “Financing Receivables” and Note 7, “Leases” for further information.

GOODWILL AND OTHER INTANGIBLE ASSETS.

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. We test goodwill for impairment at the reporting unit level annually in the fourth quarter of each year as of October 1st, or more frequently when an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

When testing goodwill for impairment, the Company may first assess qualitative factors. If an initial qualitative assessment identifies that it is more likely than not that the fair value of a reporting unit is less than its carrying value, additional quantitative testing is performed. The Company may also elect to skip the qualitative testing and proceed directly to the quantitative testing. If the quantitative testing indicates that goodwill is impaired, an impairment charge is recognized based on the difference between the reporting unit’s carrying value and its fair value. When performing a quantitative test, the market approach is typically used for estimating the fair values for our reporting units. Under the market approach, we estimate the fair value based on market multiples of earnings derived from comparable publicly traded companies with operating and investment characteristics similar to the reporting unit. Depending on the specific reporting unit circumstances, we may also consider performing a valuation based on an income approach. It is reasonably possible that the judgments and estimates used could change in future periods.

In-process research and development (“IPR&D”) acquired as part of a business acquisition is capitalized at fair value when acquired and is considered an indefinite-lived intangible asset. We test indefinite-lived intangible assets for impairment annually in the third quarter of each year or when events occur or circumstances change that indicate it is more likely than not the fair value of the asset is below its carrying value. When testing IPR&D for impairment, the Company may first assess qualitative factors. If an initial qualitative assessment identifies that it is more likely than not that the fair value of the IPR&D is less than its carrying value, additional quantitative testing is performed. The Company may also elect to skip the qualitative testing and proceed directly to the quantitative testing. If the quantitative testing indicates that the IPR&D is impaired, an impairment charge is recognized based on the difference between the IPR&D’s carrying value and its fair value. When the IPR&D project is complete, the asset is considered a finite-lived intangible asset and subject to an impairment test at that date. Thereafter, the resulting asset is amortized over its estimated useful life and is subject to impairment assessment in the same manner as all amortizing intangible assets.

For other intangible assets that are not deemed indefinite-lived, the cost of the intangible asset is amortized on a straight-line basis over the asset’s estimated useful life. Amortizable intangible assets are reviewed for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. In such circumstances, they are tested for impairment based on undiscounted cash flows and, if impaired, written down to estimated fair value based on either discounted cash flows or appraised values.

Internal-Use Software

Internal-use software is software that is developed, purchased, or modified to meet internal needs and for which no substantive plan exists to sell, lease, or otherwise market the software externally. All costs associated with project tasks classified in the preliminary project development or post-implementation/operation stage are expensed as incurred. Capitalization of application development stage costs begins after both of the following occur: (1) the preliminary project development stage is completed and (2) management authorizes and commits to funding the software project and it is probable that the project will be completed and the software will be used for the purpose for which it was intended. Capitalization ceases when the project is substantially complete. Capitalized amounts are recognized within Other intangible assets – net in the Consolidated and Combined Statements of Financial Position and are amortized on a straight-line basis over the asset’s estimated useful life.

External Use Software

External use software relates to software that is (1) intended to be sold, licensed, or marketed to our customers or (2) embedded and integral to our tangible products for which research and development (“R&D”) has been completed. Costs that are related to the conceptual formulation and design of software are expensed as incurred. Costs that are incurred after technological feasibility has been established until general release of the product are capitalized as an intangible asset and recognized within Other intangible assets – net in the Consolidated and Combined Statements of Financial Position. Capitalized costs for software to be sold, leased, or otherwise marketed are amortized on an individual product basis using straight-line amortization over the estimated useful life of the product. The Company performs regular reviews to assess whether unamortized capitalized external use software program costs remain recoverable through future revenue.

See Note 8, “Acquisitions, Goodwill, and Other Intangible Assets” for further information.

DERIVATIVES AND HEDGING.

We use derivative contracts to reduce the volatility of earnings and cash flows associated with risks related to foreign currency exchange rates, interest rates, equity prices, and commodity prices. Our policy is to use derivatives solely for managing risks and not for speculative purposes.

We employ the following hedge types: (1) cash flow hedges of foreign currency risk associated with third-party and intercompany foreign currency-denominated forecasted transactions and firm commitments, (2) net investment hedges of foreign currency risk associated with investments in foreign operations, (3) fair value hedges of interest rate risk associated with long-term borrowings, and (4) economic hedges not designated as qualifying hedging relationships of foreign currency risk associated with monetary assets and liabilities, including intercompany balances, equity price risk, and commodity price risk.

For net investment hedges, changes in the fair value of the components of the hedging derivatives excluded from the assessment of hedge effectiveness are deferred and amortized to earnings in the Consolidated and Combined Statements of Income using a systematic and rational method over the life of the derivative transaction.

Contracts that do not in their entirety meet the definition of a derivative instrument and are not measured at fair value may contain embedded features affecting some or all of the cash flows or value of other exchanges that would otherwise be considered derivatives when assessed separately from the host contract. Such embedded features are separated from the hybrid contract and accounted for as a derivative measured at fair value if their economic characteristics and risks are not clearly and closely related to those of the host contract.

See Note 13, “Financial Instruments and Fair Value Measurements” for further information.

INCOME TAXES.

For the years ended December 31, 2022 and 2021, the Company’s income tax provision was prepared using the separate return method. The calculation of income taxes on a separate return basis requires a considerable amount of judgment and use of both estimates and allocations. As a result, actual transactions included in the consolidated financial statements of GE may not be included in these combined financial statements. Similarly, the tax treatment of certain items reflected in the combined financial statements may not be reflected in the consolidated financial statements and tax returns of GE. Therefore, items such as net operating losses, credit carryforwards, and valuation allowances may exist in the stand-alone combined financial statements that may or may not exist in GE’s consolidated financial statements. For post-Spin-Off periods, as a stand-alone entity, GE HealthCare will file tax returns on its own behalf, and its deferred taxes and actual income tax rate differ from those in the historical periods.

For the years prior to the Spin-Off, all income taxes due to or due from GE that had not been settled or recovered by the end of the period are recognized within Net parent investment in the Combined Statement of Financial Position. Any differences between actual amounts paid or received by the Company and taxes accrued under the separate return method are deemed to be settled and are recognized within Net parent investment in the Combined Statement of Financial Position.

Current obligations for tax in jurisdictions where the Company did not file a consolidated tax return with GE in the pre-Spin-Off period, including certain foreign and certain U.S. state tax jurisdictions, are recorded as accrued liabilities and recognized within All other liabilities in the Combined Statement of Financial Position. The effects of tax adjustments and settlements with taxing authorities are presented in the consolidated and combined financial statements in the period to which they relate.

Uncertain tax positions that meet the more likely than not recognition threshold are measured to determine the amount of tax benefit to recognize in the consolidated and combined financial statements. An uncertain tax position is measured at the largest amount of benefit that the Company believes has a greater than 50% likelihood of realization upon settlement. Tax benefits not meeting the measurement or realization criteria represent unrecognized tax benefits. Penalties related to income tax matters are recognized within Benefit (provision) for income taxes in the Consolidated and Combined Statements of Income. Our policy is to adjust these reserves when facts and circumstances change, such as the actual settlement or effective settlement of positions with the relevant taxing authorities.

Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their respective tax bases, as well as from net operating loss and tax credit carryforwards. The deferred income tax balances are stated at enacted tax rates expected to be in effect when those taxes are paid or recovered. Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. We evaluate the recoverability of these future tax deductions and credits by evaluating all available positive and negative evidence, specifically assessing the adequacy of future expected taxable income from all sources, including reversal of existing taxable temporary differences, forecasted operating earnings, and available tax planning strategies. To the extent we consider it more likely than not that a deferred tax asset will not be recovered, a valuation allowance is established to reduce the carrying value of the deferred asset to its more likely than not realizable value. Deferred taxes are provided for our investment in non-U.S. affiliates and associated companies based upon our evaluation of the undistributed earnings of such entities.

See Note 11, “Income Taxes” for further information.

POSTRETIREMENT BENEFIT PLANS.

Prior to the Spin-Off, GE sponsored plans were accounted for as multiemployer plans. Therefore, the related assets and liabilities are not reflected in the Combined Statement of Financial Position for the year ended December 31, 2022. The Combined Statements of Income reflect a proportionate allocation of net periodic benefit costs for the multiemployer plans associated with the Company for the years ended December 31, 2022 and 2021.

In connection with the Spin-Off, on January 1, 2023, GE HealthCare assumed a portion of former GE pension and postretirement obligations and assets. The pension and postretirement obligations assumed relate to benefits owed to current GE HealthCare employees, former GE HealthCare employees, and certain GE legacy plan participants. The pension plans are now sponsored by GE HealthCare. For the postretirement plans, GE HealthCare is now a participant in a multiple-employer plan with GE. Management accounts for the pension and postretirement plans as defined benefit plans.

We measure our plan assets at fair value and categorize plan assets for disclosure purposes in accordance with the fair value hierarchy. Certain assets for which the fair value is measured using the net asset value (“NAV”) per share (or its equivalent) as a practical expedient are excluded from the fair value hierarchy. The components of net periodic benefit costs, other than the service cost component, are recognized within Non-operating benefit (income) costs in the Consolidated and Combined Statements of Income for plans sponsored by the Company.

We engage third-party actuaries to assist in the determination of pension obligations and related plan costs. We develop significant long-term assumptions including discount rates and the expected rate of return on assets in connection with our pension accounting. We recognize differences between the expected long-term return on plan assets, the actual return, and net actuarial gains and losses for the pension plan liabilities annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for a remeasurement within the Consolidated and Combined Statements of Comprehensive Income (Loss).

We amortize gains and losses, as well as the effects of changes in actuarial assumptions and plan provisions, that exceed 10% of the greater of plan assets or benefit obligations. The period over which gains and losses are amortized is generally over the average remaining service of employees.

See Note 10, “Postretirement Benefit Plans” for further information.

LOSS CONTINGENCIES.

Loss contingencies are uncertain and unresolved matters that arise in the ordinary course of business and result from events that have the potential to result in a future loss. Such contingencies include, but are not limited to, product warranties, claims, litigation, environmental obligations, regulatory investigations and proceedings, product quality, and losses resulting from other events and developments. When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the loss. When there appears to be a range of possible losses with equal likelihood, liabilities are based on the low end of such range. Disclosure is provided for material loss contingencies when a loss is probable and an estimate can be made, when a loss is probable but a reasonable estimate cannot be made, and when it is reasonably possible that a loss will be incurred or the amount of a loss will exceed the recorded provision. We regularly review contingencies to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or range of loss can be made. Legal costs incurred in connection with loss contingencies are expensed as incurred.

See Note 14, “Commitments, Guarantees, Product Warranties, and Other Loss Contingencies” for further information.

SUPPLY CHAIN FINANCE PROGRAMS.

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

FAIR VALUE MEASUREMENTS.

The following sections describe the valuation methodologies we use to measure financial and non-financial instruments at fair value including certain assets within our postretirement benefit plans. Observable inputs for fair value measurements reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These inputs establish the following fair value hierarchy:

• Level 1 — Quoted prices for identical instruments in active markets.

• Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

• Level 3 — Significant inputs to the valuation model are unobservable.

See Note 13, “Financial Instruments and Fair Value Measurements” for further information.

RECURRING FAIR VALUE MEASUREMENTS.

For financial assets and liabilities measured at fair value on a recurring basis, primarily investment securities, derivatives, and contingent consideration, fair value is the price we would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date.

Investment Securities

Publicly traded equity securities are valued using Level 1 quoted price inputs.

Derivatives

The majority of our derivatives are valued using model-derived offers received from financial institutions for similar over-the-counter instruments without an active market or internal models. The models maximize observable inputs including interest rates and both forward and spot prices for currencies and commodities. As of December 31, 2023 and 2022, foreign currency contracts, interest rate contracts, commodity exchange contracts, embedded derivatives, and the equity-linked total return swap were valued using Level 2 inputs.

Contingent Consideration

When an acquisition involves a contingent consideration arrangement, we record on the date of acquisition a liability for the fair value of the estimated additional consideration we may be obligated to pay in the future. The fair value is based upon estimates of future financial projections under various potential scenarios using a probability-weighted expected payment model discounted to present value. The estimates used to determine the fair value are subject to significant judgement and as such are considered Level 3 inputs. We subsequently remeasure such liabilities at the end of each reporting period and record changes in the fair value within SG&A in the Consolidated and Combined Statements of Income.

Investments in private equity, real estate and collective funds held within our postretirement benefit plans

Most investments are generally valued using the NAV per share as a practical expedient for fair value provided certain criteria are met. The NAVs are determined based on the fair values of the underlying investments in the funds. Investments that are measured at fair value using the NAV practical expedient are not required to be classified in the fair value hierarchy. Investments classified within Level 3 primarily relate to real estate and private equities which are valued using unobservable inputs, primarily by discounting expected future cash flows, using comparative market multiples, third-party pricing sources, or a combination of these approaches as appropriate. See Note 10, “Postretirement Benefit Plans” for further information.

Debt securities held within our postretirement benefit plans

When available, we use quoted market prices to determine the fair value of debt securities which are Level 1 inputs. For our remaining debt securities, we obtain pricing information from an independent pricing vendor. The inputs and assumptions to the pricing vendor’s models are derived from market observable sources including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and other market-related data. These investments are classified within Level 2. See Note 10, “Postretirement Benefit Plans” for further information.

There were no transfers between Levels 1, 2, and 3 of the fair value hierarchy during the years ended December 31, 2023 and 2022. See Note 13, “Financial Instruments and Fair Value Measurements” for further information.

NON-RECURRING FAIR VALUE MEASUREMENTS.

Certain assets and liabilities are measured at fair value on a non-recurring basis. These items may include financing receivables and long-lived assets reduced to fair value upon classification as held for sale and impaired equity method investments and long-lived assets, which, when written down to fair value upon an impairment, are not subsequently adjusted to fair value unless further impairment occurs. The following sections describe the valuation methodologies the Company uses to measure these assets not measured on a recurring fair value basis.

Equity Method Investments

Equity method investments are initially recorded at cost and are adjusted in each period for the Company’s share of the investee’s income or loss and dividends paid. In instances of impairment, equity method investments are written down to fair value using market observable data such as quoted prices when available. When market observable data is unavailable, investments are valued using either a discounted cash flow model, comparative market multiples, third-party pricing sources, or a combination of these approaches, as appropriate. These investments are generally valued using Level 3 inputs.

Equity Investments Without Readily Determinable Fair Value

Equity investments without readily determinable fair value, subject to a policy choice on a transaction-by-transaction basis, are accounted for under the measurement alternative at cost less impairment and adjusted to fair value for any observable price changes in orderly transactions for the identical or a similar investment of the same issuer. In the instance of impairment, if any, equity investments are adjusted to fair value using market observable data if available. If market observable data is not available, fair values are estimated using discounted cash flow models, comparative market multiples, or a combination of these approaches using Level 3 inputs.

Financing Receivables

We generally use market data, including pricing on recently closed market transactions, to value financing receivables that are held for sale. Such financing receivables are valued using Level 2 inputs. When the data is unobservable, we use valuation methodologies based on current market interest rate data adjusted for inherent credit risk. Such financing receivables are valued using Level 3 inputs.

Long-Lived Assets

Fair values of long-lived assets are primarily developed internally and are corroborated by available external appraisal information, as applicable. These assets are generally valued using Level 3 inputs.

FOREIGN CURRENCY.

We have determined that the functional currency for many of our international operations is the local currency, and for other international operations the functional currency is the USD. The basis of this determination is the currency in which each of the international operations primarily generates and expends cash. When the functional currency is not the USD, asset and liability accounts are translated at period-end exchange rates. The Company translates functional currency income and expense amounts to their USD equivalents using average exchange rates for the period. These translation gains and losses are recognized within Accumulated other comprehensive income (loss) – net (“AOCI”) in the Consolidated and Combined Statements of Financial Position.

Gains and losses from foreign currency transactions, such as those resulting from the settlement of monetary items in the non-functional currency and those resulting from remeasurements of monetary items, are included in Cost of products, Cost of services, SG&A, and R&D in the Consolidated and Combined Statements of Income, depending on the underlying nature of the item. Net gains (losses) from foreign currency transactions were $16 million, $(88) million, and $130 million for the years ended December 31, 2023, 2022, and 2021, respectively.

BUSINESS COMBINATIONS.

Our consolidated and combined financial statements include the operations of acquired businesses from the date of acquisition. The Company accounts for acquired businesses using the acquisition method of accounting in accordance with U.S. GAAP, which requires that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. When we acquire the remaining equity ownership of a company in which we hold an equity interest, we remeasure our equity interest to fair value. Any excess of the purchase price over the assigned values of the net assets acquired is recorded as Goodwill. Transaction costs are expensed as incurred. For those arrangements that involve potential future contingent consideration, on the date of acquisition we record a liability equal to the fair value of the estimated additional consideration we may be obligated to pay in the future.

See Note 8, “Acquisitions, Goodwill, and Other Intangible Assets” and Note 13, “Financial Instruments and Fair Value Measurements” for further information.

DISCONTINUED OPERATIONS.

Certain of our operations have been presented as discontinued. We present businesses whose disposal represents a strategic shift that has, or will have, a major effect on our operations and financial results as discontinued operations when the components meet the criteria for held for sale, are sold, or spun-off. Presentation as discontinued operations is consistent for all periods presented.

See Note 20, “Discontinued Operations” for further information.

RESTRUCTURING COSTS.

We record liabilities for costs associated with exit or disposal activities in the period in which the liability is incurred. Employee termination costs are accrued when the restructuring actions are probable and estimable. Costs for one-time termination benefits in which the employee is required to render service until termination in order to receive the benefits are recognized ratably over the future service period.

See Note 15, “Restructuring and Other Activities – Net” for further information.

RESEARCH AND DEVELOPMENT.

The Company conducts R&D activities to create new products, develop new applications for existing products, and enhance existing products. Clinical study and certain research costs are recognized over the service periods specified in the contracts and adjusted as necessary based upon an ongoing review of the level of effort and costs actually incurred. R&D costs are expensed as incurred.

In certain instances, R&D activities may be funded by third parties, including government entities. These R&D funding arrangements may include upfront payments, R&D cost sharing payments, and future milestone payments that may be based upon the occurrence of future R&D or commercialization events. Payments received as part of the R&D funding arrangements are generally presented as an offset to R&D expense.

COLLABORATIVE ARRANGEMENTS.

We enter into collaborative arrangements primarily related to development of new products. A collaborative arrangement is a contractual arrangement that involves two or more parties who are active participants in the activity, and are exposed to significant risks and rewards dependent on the commercial success of the activity. The assessment for a collaborative arrangement is performed throughout the life of the arrangement based on changes in the responsibilities of all parties. Amounts that are owed by collaboration partners related to R&D activities are generally presented as an offset to R&D expense.

See Note 18, “Supplemental Financial Information” for further information.

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 consolidated statements of operations. In the first quarter of 2023, the Company changed its accounting policy for presentation of interest expense on uncertain tax positions. The interest was previously presented within Interest and other financial charges – net and has changed to being presented within Benefit (provision) for income taxes. The Company believes this presentation is preferable because the cost is related to income tax matters and this presentation enhances comparability with our peers. The effects of the change in accounting have been prospectively applied to periods beginning in the first quarter of 2023 and were not material to any previously reported periods prior to March 31, 2023.

Recent Accounting Pronouncements Reflected in These 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 18, “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, to recognize and measure contract assets and contract liabilities relating to contracts with customers acquired in a business combination. Prior to the adoption of this ASU, an acquirer generally recognized assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from revenue contracts with customers, at fair value on the acquisition date. The ASU results in the acquirer recording acquired contract assets and contract liabilities from contracts with customers on the same basis that would have been recorded by the acquiree before the acquisition under ASC 606. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance on January 1, 2023 using a prospective method, and the adoption did not have a material impact on the consolidated financial statements.

Other Recent Accounting Pronouncements

In November 2023, the FASB issued ASU No. 2023-07 (“ASU 2023-07”), Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU 2023-07 requires annual and interim disclosures that are expected to improve reportable segment disclosures, primarily through enhanced disclosures about significant segment expenses. The provisions of ASU 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2023-07.

In December 2023, the FASB issued ASU No. 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 addresses investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This update also includes certain other amendments to improve the effectiveness of income tax disclosures. The provisions of ASU 2023-09 are effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of adopting ASU 2023-09.

NOTE 3. REVENUE RECOGNITION

CONTRACT ASSETS.

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

Contract and Other Deferred Assets
			As of
			December 31, 2023			December 31, 2022
Contract assets			$	600		$	584
Other deferred assets			400			405
Contract and other deferred assets			1,000			989
Non-current contract assets(1)			72			37
Non-current other deferred assets(1)			96			82
Total contract and other deferred assets			$	1,168		$	1,108

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

Capitalized costs to obtain a contract were $213 million and $204 million as of December 31, 2023 and December 31, 2022, respectively. Generally, these costs are recognized within two years of being capitalized. When recognized, the costs to obtain a contract are recorded within SG&A in the Consolidated and Combined Statements of Income.

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 with our customers.

As of December 31, 2023 and December 31, 2022, contract liabilities were approximately $2,623 million and $2,526 million, respectively, of which the non-current portion of $705 million and $630 million, respectively, was recognized in All other liabilities in the Consolidated and Combined Statements of Financial Position. Contract liabilities increased $97 million in 2023 primarily due to an increase in extended warranty contracts. Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately $1,554 million and $1,562 million for the years ended December 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 December 31, 2023, the aggregate amount of the contracted revenues allocated to our unsatisfied (or partially unsatisfied) performance obligations was $14,655 million. We expect to recognize revenue as we satisfy our remaining performance obligations as follows: a) product-related remaining performance obligations of $4,930 million of which 98% is expected to be recognized within two years, and the remaining thereafter; and b) services-related remaining performance obligations of $9,725 million of which 65% and 93% are expected to be recognized within two years and five years, respectively, and the remaining thereafter.

NOTE 4. SEGMENT AND GEOGRAPHICAL INFORMATION

GE HealthCare’s operations are organized and managed through four reportable segments: Imaging, Ultrasound, Patient Care Solutions (“PCS”), and Pharmaceutical Diagnostics (“PDx”). The Company’s organizational structure is based upon the availability of separate financial information that is evaluated regularly by the Company’s Chief Operating Decision Maker (“CODM”) for the purpose of assessing performance and allocating resources. The Company’s CODM is its Chief Executive Officer. 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 this Annual Report on Form 10-K.

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

Total Revenues by Segment
									For the years ended December 31
												2023			2022			2021
Imaging:
Radiology												$	8,944		$	8,395		$	8,019
Interventional Guidance												1,637			1,590			1,414
Total Imaging												10,581			9,985			9,433
Total Ultrasound												3,457			3,422			3,172
PCS:
Monitoring Solutions												2,283			2,092			2,119
Life Support Solutions												859			824			796
Total PCS												3,142			2,916			2,915
Total PDx												2,306			1,958			2,018
Other**(1)**												66			60			47
Total revenues												$	19,552		$	18,341		$	17,585

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

No single customer accounted for more than 10% of the Company’s revenues for the years ended December 31, 2023, 2022, or 2021. Additionally, no single customer accounted for more than 10% of accounts receivable as of December 31, 2023 or 2022.

Segment EBIT
									For the years ended December 31
												2023			2022			2021
Segment EBIT
Imaging												$	1,124		$	1,100		$	1,240
Ultrasound												821			908			885
PCS												383			341			356
PDx												617			520			693
Other(1)												11			(8)			(2)
												2,956			2,861			3,172
Restructuring costs												(54)			(146)			(155)
Acquisition and disposition-related benefits (charges)												15			34			(14)
Gain (loss) on business and asset dispositions												—			1			2
Spin-Off and separation costs												(270)			(14)			—
Amortization of acquisition-related intangible assets												(127)			(121)			(90)
Investment revaluation gain (loss)												1			(31)			3
Interest and other financial charges – net												(542)			(77)			(40)
Non-operating benefit income (costs)												382			5			(3)
Income from continuing operations before income taxes												$	2,361		$	2,512		$	2,875

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

The Company does not report total assets by segment for internal or external reporting purposes as the Company’s CODM does not assess performance, make strategic decisions, or allocate resources based on assets.

GEOGRAPHIC INFORMATION.

Revenues are classified according to the country in which products and services are sold.

Total Revenues by Country
			For the years ended December 31
			2023			2022			2021
United States			$	8,228		$	7,819		$	7,060
China			2,560			2,325			2,510
All other countries			8,764			8,197			8,015
Total revenues			$	19,552		$	18,341		$	17,585

Long-lived assets represent Property, plant, and equipment – net, and are classified according to the country where the asset is located.

Long-Lived Assets – Net by Country
			As of
			December 31, 2023			December 31, 2022
United States			$	913		$	860
China			391			393
Norway			286			249
All other countries			910			812
Total long-lived assets – net			$	2,500		$	2,314

NOTE 5. RECEIVABLES

Current Receivables
			As of
			December 31, 2023						December 31, 2022
Current customer receivables**(1)**			$	3,339					$	3,112
Non-income based tax receivables			166						174
Other sundry receivables			118						100
Sundry receivables			284						274
Allowance for credit losses			(98)						(91)
Total current receivables – net			$	3,525					$	3,295

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

Activity in the allowance for credit losses related to current receivables for the years ended December 31, 2023, 2022, and 2021 consisted of the following:

Balance at December 31, 2020			$	93
Additions charged to costs and expenses			12
Write-offs			(10)
Foreign currency exchange and other			12
Balance at December 31, 2021			107
Additions charged to costs and expenses			2
Write-offs			(13)
Foreign currency exchange and other			(5)
Balance at December 31, 2022			91
Additions charged to costs and expenses			16
Write-offs			(11)
Foreign currency exchange and other			2
Balance at December 31, 2023			$	98

Long-Term Receivables
			As of
			December 31, 2023			December 31, 2022
Long-term customer receivables			$	55		$	80
Sundry receivables			73			68
Non-income based tax receivables			26			28
Allowance for credit losses(1)			(30)			(31)
Total long-term receivables – net**(2)**			$	124		$	145

(1) Write-offs of long-term receivables were not material for the years ended December 31, 2023 and 2022.

(2) Long-term receivables are recognized within All other assets in the Consolidated and Combined Statements of Financial Position.

NOTE 6. FINANCING RECEIVABLES

Financing Receivables
			As of
			December 31, 2023			December 31, 2022
Loans, net of deferred income			$	29		$	29
Investment in financing leases, net of deferred income			71			72
Allowance for credit losses			(3)			(4)
Current financing receivables – net**(1)**			97			97
Loans, net of deferred income			37			44
Investment in financing leases, net of deferred income			146			158
Allowance for credit losses			(5)			(6)
Non-current financing receivables – net**(1)**			$	178		$	196

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

Total financing receivables sold were $27 million, $8 million, and $104 million for the years ended December 31, 2023, 2022, and 2021, respectively.

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

NOTE 7. LEASES

OPERATING LEASES.

As a lessee, the Company leases certain logistics, office, and manufacturing facilities, as well as vehicles and other equipment. Certain of the Company’s leases may include options to extend. Our ROU operating lease assets are recognized within Property, plant, and equipment – net in the Consolidated and Combined Statements of Financial Position. Our operating lease liabilities are recognized within All other current liabilities and All other liabilities in the Consolidated and Combined Statements of Financial Position, as detailed below.

Operating Lease Assets and Liabilities
			As of
			December 31, 2023			December 31, 2022
Operating lease ROU assets			$	356		$	313
Current operating lease liabilities			110			104
Non-current operating lease liabilities			273			243
Total operating lease liabilities			$	383		$	347

Operating Lease Expense
			For the years ended December 31
			2023			2022			2021
Long-term (fixed)			$	121		$	115		$	114
Long-term (variable)			106			98			67
Short-term			2			4			4
Total operating lease expense			$	229		$	217		$	185

Maturity of Lease Liabilities
			2024			2025			2026			2027			2028			Thereafter			Total
Undiscounted lease payments			$	124		$	100		$	79		$	48		$	23		$	52		$	426
Less: imputed interest																					43
Total lease liability as of December 31, 2023																					$	383

Supplemental Information Related to Operating Leases
			For the years ended December 31
			2023			2022			2021
Operating cash flows used for operating leases			$	130		$	113		$	128
Right-of-use assets obtained in exchange for new lease liabilities			154			98			94
Weighted-average remaining lease term (in years)			4.7			4.4			4.7
Weighted-average discount rate			4.4		%	3.8		%	3.3		%

FINANCE LEASES.

The Company leases equipment manufactured or sold by the Company to customers through sales-type leases. Sales-type leases are included in financing receivables and are recognized within All other current assets and All other assets in the Consolidated and Combined Statements of Financial Position.

Finance lease income was $13 million, $12 million, and $16 million for the years ended December 31, 2023, 2022, and 2021, respectively, and is recognized within Other (income) expense – net in the Consolidated and Combined Statements of Income.

Net Investment in Financing Leases
			As of
			December 31, 2023			December 31, 2022
Total minimum lease payments receivable			$	236		$	248
Less: deferred income			(30)			(30)
Discounted lease receivable			206			218
Estimated unguaranteed residual value of leased assets, net of deferred income			11			12
Investment in financing leases, net of deferred income			$	217		$	230

Contractual Maturities
Due In			2024			2025			2026			2027			2028			Thereafter			Total
Net minimum lease payments receivable			$	80		$	61		$	41		$	25		$	15		$	14		$	236

We expect actual maturities to differ from contractual maturities, primarily as a result of prepayments.

NOTE 8. ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS

ACQUISITIONS.

On February 17, 2023, the Company acquired 100% of the stock of Caption Health, Inc. (“Caption Health”) for $127 million of upfront payment, $10 million of future holdback payment, and potential earn-out payments valued at $13 million based primarily on various milestones and sales targets. This transaction was accounted for as a business combination. The preliminary purchase price allocation resulted in goodwill of $94 million, intangible assets of $60 million, and deferred tax liabilities of $3 million. Our estimates and assumptions are subject to change within the measurement period. 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 13, “Financial Instruments and Fair Value Measurements” for further information about the fair value measurement of contingent consideration.

Goodwill
			Imaging			Ultrasound			PCS			PDx			Total
Balance at December 31, 2021			$	4,433		$	3,876		$	2,049		$	2,534		$	12,892
Acquisitions			—			—			—			—			—
Foreign currency exchange and other(1)			(24)			(41)			(13)			(1)			(79)
Balance at December 31, 2022			4,409			3,835			2,036			2,533			12,813
Acquisitions(2)			16			94			—			—			110
Foreign currency exchange and other			6			4			2			1			13
Balance at December 31, 2023			$	4,431		$	3,933		$	2,038		$	2,534		$	12,936

(1) Other includes purchase accounting adjustments for prior year acquisitions.

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

The Company performs an impairment test of goodwill annually in the fourth quarter. In 2023, the Company performed qualitative testing for all reporting units that carried goodwill. Based on the results of the qualitative testing, the Company concluded that it was more likely than not that the fair value of each reporting unit exceeded its carrying value and no quantitative testing was required. Quantitative testing was performed for all reporting units in 2022 and 2021. The quantitative testing conducted in 2022 and 2021 concluded that no goodwill impairments existed.

Intangible Assets
			As of December 31, 2023												As of December 31, 2022
			Gross Carrying Amount			Accumulated Amortization			Net						Gross Carrying Amount			Accumulated Amortization			Net
Customer-related			$	60		$	(16)		$	44					$	60		$	(10)		$	50
Patents and technology			2,541			(1,867)			674						2,544			(1,815)			729
Capitalized software			1,963			(1,509)			454						2,309			(1,638)			671
Trademarks and other			33			(27)			6						35			(27)			8
Indefinite-lived assets(1)			75			—			75						62			—			62
Total			$	4,672		$	(3,419)		$	1,253					$	5,010		$	(3,490)		$	1,520

(1) Indefinite-lived intangible assets relate to acquired IPR&D prior to project completion and are not amortized.

The Company performs an impairment test of IPR&D in the third quarter. In 2023, the Company performed qualitative testing for all IPR&D assets. Based on the results of the qualitative testing, the Company concluded that it was more likely than not that the fair value of each IPR&D asset exceeded its carrying value and no quantitative testing was required, with one exception. A quantitative test was performed for one IPR&D asset. Quantitative testing was performed for all IPR&D assets in 2022 and 2021. There were no material impairments of indefinite-lived intangible assets recognized in the years ended December 31, 2023, 2022, or 2021.

During the year ended December 31, 2023, we recorded additions to acquired intangible assets subject to amortization of $62 million, primarily related to patents and technology, with a weighted-average useful life of nine years.

Amortization expense was $362 million, $405 million, and $400 million for the years ended December 31, 2023, 2022, and 2021, respectively. There were no material impairments of definite-lived intangible assets recognized in the years ended December 31, 2023, 2022, or 2021.

Estimated annual pre-tax amortization expense for intangible assets as of December 31, 2023 over the next five calendar years is as follows.

Estimated Intangible Pre-tax Amortization
			2024			2025			2026			2027			2028
Estimated annual pre-tax amortization			$	303		$	259		$	207		$	122		$	71

NOTE 9. 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”). Interest payments on the Notes are due semi-annually until maturity. In the event of a change in control and a related downgrade of the ratings of the Notes below investment grade, the indenture governing the Notes requires that the Company make an offer to each holder of the Notes to repurchase all or any part of that holder’s notes at a repurchase price equal to 101% of the aggregate principal amount of the Notes repurchased, plus any accrued and unpaid interest. The indenture also includes a limitation on liens incurred by the Company and its wholly owned U.S. subsidiaries. The indenture does not restrict the Company or its subsidiaries from incurring indebtedness, nor does it require any financial covenants. All covenants are subject to a number of exceptions, limitations, and qualifications. Refer to the table below for further information about the Notes.

Credit Facilities

The Company has credit agreements providing for:

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

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

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

There were no outstanding amounts under the five-year revolving credit facility and 364-day revolving credit facility as of December 31, 2023 or 2022. In the fourth quarter of 2023, we entered into a new 364-day senior unsecured revolving credit facility to replace the 364-day senior unsecured revolving credit facility that was scheduled to mature in January 2024.

On January 3, 2023, the Company completed a $2,000 million drawdown of the floating rate Term Loan Facility in connection with the Spin-Off from GE. In the fourth quarter of 2023, we repaid $850 million of the outstanding Term Loan Facility. We had no principal debt repayments on the Notes for the year ended December 31, 2023.

The Company pays a facility fee to each lender, which accrues at a rate equal to an applicable margin specified in the revolving credit facility agreements on the daily commitments of the lenders. The borrowings under the Credit Facilities will bear interest at variable interest rates equal to: (i) the alternate base rate or (ii) the Secured Overnight Financing Rate, in each case plus an applicable margin specified in the credit agreement. The Credit Facilities contain affirmative and negative covenants customary to financings of this type that, among other things, limit the Company and its subsidiaries’ ability to incur additional liens and to make certain fundamental changes. In addition, the Credit Facilities contain a financial covenant that requires the Company to not exceed a maximum consolidated net leverage ratio. The Company was in compliance with the financial covenant at each reporting period during 2023. The Credit Facilities will be used for general corporate purposes.

Interest expense associated with long-term debt was $616 million and $54 million for the years ended December 31, 2023 and 2022, respectively, and is included in Interest and other financial charges – net in the Consolidated and Combined Statements of Income. Interest expense for borrowings was not significant for the year ended December 31, 2021. The weighted average interest rate for the Notes and our Credit Facilities for the years ended December 31, 2023 and 2022 was 6.03% and 5.97%, respectively.

Borrowings Composition
			As of
			December 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
Floating rate Term Loan Facility due January 2, 2026			1,150			—
Other			52			46
Total principal debt issued			9,452			8,296
Less: Unamortized debt issuance costs and discounts			35			47
Add: Cumulative basis adjustment for fair value hedges			25			—
Total borrowings			9,442			8,249
Less: Short-term borrowings (net of debt issuance costs)			1,006			15
Long-term borrowings			$	8,436		$	8,234

Scheduled maturities of borrowings, excluding amortization of discounts and debt issuance costs, are as follows.

2024			2025			2026			2027			2028			Thereafter			Total
$	1,008		$	1,541		$	1,152		$	1,751		$	—		$	4,000		$	9,452

See Note 13, “Financial Instruments and Fair Value Measurements” for further information about borrowings and associated derivatives contracts.

LETTERS OF CREDIT, GUARANTEES, AND OTHER COMMITMENTS.

As of December 31, 2023 and 2022, the Company had bank guarantees and surety bonds of approximately $751 million and $657 million, respectively, related to certain commercial contracts. Additionally, we have approximately $39 million and $43 million of guarantees as of December 31, 2023 and 2022, respectively, primarily related to residual and credit guarantees on equipment sold to third-party finance companies. Our Consolidated and Combined Statements of Financial Position reflect a liability of $4 million as of December 31, 2023 and 2022 related to these guarantees. For credit-related guarantees, we estimate our expected credit losses related to off-balance sheet credit exposure consistent with the method used to estimate the allowance for credit losses on financial assets held at amortized cost. See Note 14, “Commitments, Guarantees, Product Warranties, and Other Loss Contingencies” for further information on guarantee arrangements with GE.

NOTE 10. POSTRETIREMENT BENEFIT PLANS

PENSION BENEFITS AND RETIREE HEALTH AND LIFE BENEFITS SPONSORED BY GE PRIOR TO SPIN-OFF.

Certain GE HealthCare employees were covered under various pension and retiree health and life plans sponsored by GE prior to the Spin-Off. These plans were accounted for as multiemployer plans prior to the Spin-Off. Certain of these benefit plans are closed to new participants. For the years ended December 31, 2022 and 2021, relevant costs for these plans were allocated to the Company by GE and recognized within the Combined Statements of Income. These costs 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 certain U.S. retiree benefit plans. We did not record any assets or liabilities associated with our participation in these plans in our Combined Statement of Financial Position as of December 31, 2022.

Expenses associated with our employees’ participation in the U.S. GE Pension Plan and certain U.S. retiree benefit plans, which represent the majority of related expense, were $73 million and $96 million for the years ended December 31, 2022 and 2021, respectively. Expenses associated with our employees’ participation in certain international pension plans were $11 million and $22 million for the years ended December 31, 2022 and 2021, respectively.

In addition, certain GE HealthCare employees were covered under various pension plans historically sponsored by GE HealthCare. The assets and liabilities associated with these plans are included in our Combined Statement of Financial Position as of December 31, 2022.

PENSION BENEFITS AND RETIREE HEALTH AND LIFE BENEFITS POST SPIN-OFF.

In connection with the Spin-Off, on January 1, 2023, GE HealthCare assumed a portion of former GE pension and postretirement obligations and assets. The pension and postretirement obligations assumed relate to benefits owed to current GE HealthCare employees, former GE HealthCare employees, and certain GE legacy plan participants. For the postretirement plans, GE HealthCare is now a participant in a multiple-employer plan with GE.

The total assets and liabilities for all plans 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**(1)**			Other postretirement plans**(2)**			Total
Accumulated benefit obligations			$	21,696		$	1,210		$	22,906
Unrecognized gain recorded in AOCI			1,258			1,223			2,481

Net Benefit Liability
			As of January 1, 2023
			Defined benefit plans**(1)**			Other postretirement plans**(2)**			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

(1) Defined benefit plans are comprised of both Principal Pension Plans and Other Pension Plans, as defined below. (2) Other postretirement plans (“OPEB Plans”) are comprised of other post-employment benefits, as defined below.

DESCRIPTION OF OUR PLANS.

For the years ended December 31, 2022 and 2021, we disclose postretirement plans with assets or obligations that exceed $20 million in the following tables. As a result of the liabilities and assets transferred to GE HealthCare on January 1, 2023, we disclose in the following tables postretirement plans with assets or obligations that exceed $50 million for the year ended December 31, 2023. We use a December 31st measurement date for these plans.

Our Principal Pension Plans include the GE HealthCare Pension Plan which covers U.S. participants and our GE HealthCare Supplemental Pension Plan which provides supplementary benefits to higher-level, longer-service U.S. employees. The Principal Pension Plans are comprised of the obligations transferred to GE HealthCare from GE in connection with the Spin-Off. These plans have been closed to new participants since 2012. All remaining service accruals for the GE HealthCare Pension Plan will freeze effective December 31, 2024. Benefits for participants of the GE HealthCare Supplemental Pension Plan who became executives before 2011 were frozen effective January 1, 2021, and thereafter these employees accrue a benefit which is paid out in ten annual installments upon retirement. The GE HealthCare Pension Plan has a projected benefit obligation of $16,138 million, plan assets of $14,700 million, and is 91% funded per U.S. GAAP as of December 31, 2023. The GE HealthCare Supplemental Pension plan has a projected benefit obligation of $2,022 million as of December 31, 2023, and the benefits are paid to eligible participants directly by the Company as described further in the ‘Funding’ section of this Note.

Our Other Pension Plans include all other plans, which cover certain U.S. participants and non-U.S. participants. These plans include obligations that existed prior to the Spin-Off and obligations transferred to GE HealthCare from GE in connection with the Spin-Off. In certain countries, benefit accruals have ceased and/or have been closed to new hires as of various dates.

The OPEB Plans include health and life insurance benefits to U.S. participants. GE HealthCare assumed the obligations associated with these plans in connection with the Spin-Off. Participants share in the cost of the healthcare and life insurance benefits. Certain benefits for salaried and hourly participants were closed to new retirees in 2015 and 2019.

Funding

The funding policy for the GE HealthCare Pension Plan and our Other Pension Plans is to contribute amounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax laws plus any additional amounts as we may determine to be appropriate. The GE HealthCare Supplemental Pension Plan and OPEB Plans are unfunded and we pay benefits from our cash on hand. In 2023, the Company made cash payments totaling $142 million for its GE HealthCare Supplemental Pension Plan, $84 million to its Other Pension Plans and $131 million to its OPEB Plans. In 2024, the Company expects to make total cash contributions of approximately $336 million to our pension and OPEB plans. The Company does not have a required minimum funding contribution for its U.S.-based GE HealthCare Pension Plan in 2024. Future contributions will depend on market conditions, interest rates, and other factors.

Plan Funded Status
			As of
			December 31, 2023												December 31, 2022
			Principal Pension Plans			Other Pension Plans			OPEB Plans									Other Pension Plans
Change in projected benefit obligations
Balance at January 1			$	—		$	640		$	—								$	940
Transfers from GE at Spin-Off			17,997			3,707			1,149									—
Service cost			32			23			6									19
Interest cost			952			209			59									17
Participant contributions			4			1			18									1
Plan amendments			53			2			—									—
Actuarial loss (gain) – net			493			221			50									(193)
Benefits paid			(1,341)			(359)			(149)									(38)
Curtailments			(30)			—			—									—
Exchange rate adjustments			—			144			—									(43)
Balance at December 31			$	18,160		$	4,588		$	1,133								$	703
Change in plan assets
Balance at January 1			$	—		$	382		$	—								$	553
Transfers from GE at Spin-Off			14,838			4,046			—									—
Actual gain (loss) on plan assets			1,057			189			—									(101)
Employer contributions			142			84			131									18
Participant contributions			4			1			18									1
Benefits paid			(1,341)			(359)			(149)									(38)
Acquisitions/Divestitures/Mergers			—			1			—									—
Exchange rate adjustments			—			174			—									(8)
Balance at December 31			$	14,700		$	4,518		$	—								$	425
Funded status – surplus (deficit)			$	(3,460)		$	(70)		$	(1,133)								$	(278)

Amounts Recorded in Consolidated and Combined Statements of Financial Position
			As of
			December 31, 2023															December 31, 2022
			Principal Pension Plans			Other Pension Plans			OPEB Plans									Other Pension Plans
All other assets			$	—		$	712		$	—								$	65
All other current liabilities			(143)			(47)			(130)									(16)
Compensation and benefits			(3,317)			(735)			(1,003)									(327)
Net amount recorded			$	(3,460)		$	(70)		$	(1,133)								$	(278)

Pre-Tax Amounts Recorded in AOCI
			As of
			December 31, 2023												December 31, 2022
			Principal Pension Plans			Other Pension Plans			OPEB Plans									Other Pension Plans
Net loss (gain)			$	(1,213)		$	1,075		$	(482)								$	60
Prior service cost (credit)			(43)			(18)			(533)									(5)
Total recorded in AOCI			$	(1,256)		$	1,057		$	(1,015)								$	55

The accumulated benefit obligation represents the actuarial present value of benefits based on employee service and compensation as of the measurement date and does not include an assumption about future compensation levels. The table below summarizes the total accumulated benefit obligation, the accumulated benefit obligation in excess of plan assets, and the projected benefit obligation and fair value of plan assets for the defined benefit pension plans with projected benefit obligation in excess of plan assets.

Plan Obligations in Excess of Plan Assets
			As of
			December 31, 2023			December 31, 2022
Accumulated benefit obligation			$	23,841		$	687
Plans with accumulated benefit obligation in excess of plan assets
Accumulated benefit obligation			$	20,774		$	390
Fair value of plan assets			15,433			63
Plans with projected benefit obligation in excess of plan assets
Projected benefit obligation			$	20,808		$	406
Fair value of plan assets			15,433			63

Components of Expense (Income)
			For the years ended December 31
			Principal Pension Plans						Other Pension Plans												OPEB Plans
			2023												2023			2022			2021						2023
Service cost – Operating			$	32											$	23		$	19		$	24					$	6
Interest cost			952												209			17			15						59
Expected return on plan assets			(1,170)												(256)			(27)			(27)						—
Amortization of net loss (gain)			(125)												10			5			17						(64)
Amortization of prior service cost (credit)			4												(3)			(5)			(4)						(87)
Curtailment loss (gain)			17												—			—			—						—
Settlement loss (gain)			—												61			—			—						—
Non-operating			$	(322)											$	21		$	(10)		$	1					$	(92)
Net periodic expense (income)			$	(290)											$	44		$	9		$	25					$	(86)

In the third quarter of 2023, management approved an amendment to the U.S.-based GE HealthCare Pension Plan whereby the benefits for all remaining active employees will be frozen effective December 31, 2024, and additional benefit enhancements were provided. As a result, we recognized a non-cash pre-tax curtailment loss of approximately $17 million as non-operating benefit costs and an increase to our pension liability of $23 million. As a result of the plan changes, we remeasured the plan assets and the projected benefit obligation. These changes collectively decreased AOCI by $305 million in the Consolidated Statement of Financial Position.

In the fourth quarter of 2023, management approved and paid a one-time lump sum payment for certain terminated employees in two plans who were vested in their benefits. These lump sum settlements reduce our future cash requirements and premiums. As a result of the partial settlement of the pension liability, we recognized a non-cash pre-tax settlement charge. The settlement charge of $61 million represents a pro rata portion of unrecognized net loss recorded in AOCI and is recorded in Non-operating benefit (income) costs in the Consolidated Statement of Income.

Pre-tax Cost of Postretirement Benefit Plans and Changes in Other Comprehensive Income
			For the years ended December 31
			2023												2022									2021
			Principal Pension Plans			Other Pension Plans			OPEB Plans									Other Pension Plans												Other Pension Plans
Cost of postretirement benefit plans			$	(290)		$	44		$	(86)								$	9											$	23
Changes in other comprehensive loss (income):
Transfers from GE at Spin-Off			(1,989)			740			(1,216)									—												—
Plan amendments			53			—			—									—												—
Net loss (gain) – current year			606			287			50									(74)												(86)
Reclassifications out of AOCI:
Curtailment / settlement gain (loss)			(47)			(61)			—									—												—
Amortization of net loss (gain)			125			(10)			64									(5)												(16)
Amortization of prior service credit			(4)			3			87									5												4
Total changes in other comprehensive loss (income)			$	(1,256)		$	959		$	(1,015)								$	(74)											$	(98)
Cost (income) of postretirement benefit plans and changes in other comprehensive loss (income)			$	(1,546)		$	1,003		$	(1,101)								$	(65)											$	(75)

Assumptions
			For the years ended December 31
			2023												2022									2021
			Principal Pension Plans			Other Pension Plans			OPEB Plans									Other Pension Plans												Other Pension Plans
Weighted-average benefit obligations assumptions
Discount rate			5.2		%	4.5		%	5.1		%							4.3		%										1.9		%
Compensation increases			3.9		%	3.1		%	3.6		%							3.0		%										2.8		%
Weighted-average benefit cost assumptions
Discount rate			5.5		%	4.9		%	5.4		%							1.9		%										1.4		%
Expected rate of return on plan assets			7.0		%	5.6		%	—		%							6.3		%										5.4		%

For the December 31, 2023 postretirement health care obligations remeasurement, the Company assumed a 6.5% initial weighted average rate of increase in the per capita cost of the various covered health care benefits, which applies primarily to non-Medicare eligible participants. The trend rate was assumed to decrease gradually to an ultimate rate of 5.0% in 2029 and remain at that level thereafter.

Assumptions Used in Calculations

Accounting requirements necessitate the use of assumptions to reflect the uncertainties and the length of time over which the pension obligations will be paid. The actual amount of future benefit payments will depend upon when participants retire, the amount of their benefit at retirement, and how long they live. To reflect the obligation in today’s U.S. dollars, we discount the future payments using a rate that matches the time frame over which the payments are expected to be made. We also assume a long-term rate of return that will be earned on investments used to fund these payments.

GE HealthCare engages third-party actuaries to assist in the determination of the pension and other postretirement plan assumptions. We evaluate these assumptions annually. We periodically evaluate other assumptions, such as retirement age, mortality, and turnover, and update them as necessary to reflect our actual experience and expectations for the future.

We determine the discount rate using the weighted average yields on high-quality fixed-income securities that have maturities consistent with the expected timing of benefit payments. Lower discount rates increase the size of the benefit obligations and generally increase pension expense in the following year; higher discount rates reduce the size of the benefit obligation and generally reduce subsequent-year pension expense.

The expected return on plan assets is the estimated long-term rate of return that will be earned on the investments used to fund the pension obligations. To determine this rate, we consider the current and target composition of plan investments, our historical returns earned, and our expectations about the future.

The compensation assumption is used to estimate the annual rate at which compensation of active plan participants will grow. If the rate of growth assumed increases, the size of the pension obligations will increase, as will the amount recorded in AOCI in our Consolidated and Combined Statements of Financial Position and amortized to earnings in subsequent periods.

With respect to the pension balances included on our Consolidated Statement of Financial Position as of December 31, 2023, we estimate that we will amortize $(116) million of net actuarial gain and $(81) million of prior service credit from AOCI into Non-operating benefit (income) cost in the Consolidated Statement of Income during 2024.

Expected Future Benefit Payments of Our Benefit Plans
			Principal Pension Plans			Other Pension Plans			OPEB Plans
2024			$	1,277		$	226		$	130
2025			1,289			239			124
2026			1,300			239			119
2027			1,307			243			114
2028			1,310			254			110
2029-2033			6,449			1,334			454

PENSION PLAN ASSETS.

The GE HealthCare Employee Benefits Investment Committee (the “Investment Committee”) oversees and monitors the investment of the assets of our U.S. funded pension plans. The Investment Committee retains independent investment managers and advisors and uses documented policies and procedures relating to investment goals, targeted asset allocations, risk management practices, allowable and prohibited investment holdings, diversification, use of derivatives, the relationship between plan assets and benefit obligations, the funded status of the plans, and other relevant factors and considerations.

The assets of our U.S. funded pension plans are invested in a portfolio that includes U.S. and international equity securities; U.S. government, agency and corporate debt securities; asset-backed debt securities; private equity; real estate and other alternative investments; as well as cash and cash equivalents and derivatives contracts. This combination of assets and derivatives is utilized to implement the investment strategies as well as for hedging asset and liability risks. The Investment Committee sets target allocation percentages at an asset class level, including permitted ranges above or below the target allocation percentages.

The plan assets for international plans are managed and allocated by the entities in each country.

The following tables summarize our pension plan financial instruments that are measured at fair value on a recurring basis. There are no plan assets associated with our OPEB Plans. The inputs and valuation techniques used to measure the fair value of the assets are consistent with the valuation methodologies we use to measure financial assets at fair value on a recurring basis, as described in Note 2, “Summary of Significant Accounting Policies.”

Composition of Plan Assets as of December 31, 2023
			Principal Pension Plans																		Other Pension Plans
						Basis of fair value measurement																		Basis of fair value measurement
			Balance as of December 31, 2023			Level 1			Level 2			Level 3			Measured at NAV**(1)**						Balance as of December 31, 2023			Level 1			Level 2			Level 3			Measured at NAV**(1)**
Global equity securities			$	2,609		$	954		$	—		$	—		$	1,655					$	467		$	51		$	1		$	—		$	415
Debt securities (including cash and cash equivalents)			8,121			866			6,309			—			946						2,977			239			2,203			—			535
Real estate			912			—			—			382			530						508			—			—			20			488
Private equities and other investments			3,058			—			9			213			2,836						566			—			1			11			554
Fair value of plan assets			$	14,700		$	1,820		$	6,318		$	595		$	5,967					$	4,518		$	290		$	2,205		$	31		$	1,992

(1) Certain assets that are measured at fair value using the NAV per share (or its equivalent), as a practical expedient, have not been classified in the fair value hierarchy.

Composition of Plan Assets as of December 31, 2022
			Other Pension Plans
						Basis of fair value measurement
			Balance as of December 31, 2022			Level 1			Level 2			Level 3			Measured at NAV**(1)**
Global equity securities			$	67		$	33		$	—		$	—		$	34
Debt securities (including cash and cash equivalents)			205			24			150			—			31
Real estate			25			—			—			12			13
Private equities and other investments			128			3			7			49			69
Fair value of plan assets			$	425		$	60		$	157		$	61		$	147

(1) Certain assets that are measured at fair value using the NAV per share (or its equivalent), as a practical expedient, have not been classified in the fair value hierarchy.

As of December 31, 2023 and 2022, the fair value of plan assets that used significant unobservable inputs (Level 3) was $626 million and $61 million, respectively. These assets primarily relate to real estate and private equity investments. The changes to the balances of Level 3 plan assets during 2023 were primarily a result of the transferred liabilities and assets to GE HealthCare on January 1, 2023. The changes to the balances of Level 3 plan assets during 2022 were not significant.

Weighted Average Asset Allocation of Pension Plans
			2023 Target									2023 Actual
			Principal Pension Plans			Other Pension Plans									Principal Pension Plans			Other Pension Plans
Global equity securities			18		%	11		%							18		%	10		%
Debt securities (including cash and cash equivalents)			54		%	58		%							55		%	66		%
Real estate			7		%	17		%							6		%	11		%
Private equities and other instruments			21		%	14		%							21		%	13		%

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 they participated in while GE HealthCare operated as a business of GE. Expenses associated with our employees’ participation in GE HealthCare’s defined contribution plan in 2023 and GE’s defined contribution plan in 2022 and 2021 represent the employer matching contributions for GE HealthCare employees and were $122 million, $123 million and $119 million for the years ended December 31, 2023, 2022, and 2021, respectively.

NOTE 11. INCOME TAXES

The Company is subject to income taxes in the U.S. (both federal and state) and in numerous foreign jurisdictions. Changes in the tax laws or regulations in these jurisdictions, or in positions by the relevant authorities regarding their application, administration, or interpretation, may affect our tax liability, return on investments, and business operations.

The Tax Cuts and Jobs Act imposes tax on U.S. shareholders for global intangible low-taxed income (“GILTI”) earned by certain non-U.S. subsidiaries. The Company has elected to account for GILTI as a period cost.

Income Before Income Taxes
			For the years ended December 31
			2023			2022			2021
U.S. income			$	816		$	1,090		$	1,587
Non-U.S. income			1,545			1,422			1,288
Total			$	2,361		$	2,512		$	2,875

Provision for Income Taxes
			For the years ended December 31
			2023			2022			2021
Current
U.S. Federal			$	171		$	396		$	141
Non – U.S.			345			324			422
U.S. State			42			97			55
Deferred
U.S. Federal			—			(213)			82
Non – U.S.			103			7			(101)
U.S. State			82			(48)			1
Total			$	743		$	563		$	600

Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate
			For the years ended December 31
			2023			2022			2021
Income before taxes			$	2,361		$	2,512		$	2,875
Tax expected at 21%			496			528			604
Foreign operations			63			43			(54)
Withholding taxes			28			4			11
U.S. tax on foreign operations			(35)			(36)			(23)
Uncertain tax positions			11			6			11
R&D benefits			(33)			(33)			(32)
State taxes, net of federal benefit			24			39			45
Valuation allowance			19			8			33
Spin-Off and separation costs			184			—			—
Other			(14)			4			5
Provision for income taxes			$	743		$	563		$	600
Actual income tax rate			31.5%			22.4%			20.9%

UNRECOGNIZED TAX BENEFITS.

The Company is subject to periodic tax audits by tax authorities in the U.S. (both federal and state) and the numerous countries in which we operate. In 2021, the Company settled with tax authorities in certain foreign jurisdictions. While the Company currently is being audited in a number of jurisdictions for tax years 2004-2022, including China, Germany, Norway, the United Kingdom, and the United States, we believe that there are no jurisdictions in which the ultimate outcome of unresolved issues or claims is likely to be material to the results of operations, financial position, or cash flows. We believe that we have made adequate provisions for all unrecognized tax benefits.

UNRECOGNIZED TAX BENEFITS RECONCILIATION.

The balance of unrecognized tax benefits, the amount of related interest and penalties, and what we believe to be the range of reasonably possible changes in the next 12 months are as follows.

			2023			2022			2021
Balance at beginning of period			$	465		$	365		$	684
Additions for tax positions of the current year			—			9			9
Additions for tax positions of prior years			156			137			14
Reductions for tax positions of prior years			(203)			(41)			(78)
Settlements with tax authorities			(6)			(1)			(262)
Expiration of the statute of limitations			(3)			(4)			(2)
Balance at end of period			$	409		$	465		$	365

During the year ended December 31, 2023, $134 million of unrecognized tax benefits were contributed to the Company by GE as a part of the opening balance sheet adjustments, and are included in the Additions for tax positions of the prior years line in the table above. Also during the year ended December 31, 2023, a matter was closed with local tax authorities which resulted in the reversal of a net operating loss deferred tax asset and the related $183 million unrecognized tax benefit, which is included in the Reductions for tax positions of prior years line above. During the year ended December 31, 2022, $132 million of unrecognized tax benefits were contributed to the Company by GE, which are included in the Combined Statement of Financial Position as of December 31, 2022, and are included in the Additions for tax positions of prior years line in the table above.

Unrecognized Tax Benefits
			For the years ended December 31
			2023			2022			2021
Unrecognized tax benefits			$	409		$	465		$	365
Accrued interest on unrecognized tax benefits			72			56			53
Reasonably possible reduction to the balance of unrecognized tax benefits in succeeding 12 months			29			45			36
Portion that, if recognized, would reduce tax expense and effective tax rate			157			153			111

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 2, “Summary of Significant Accounting Policies” for further information. For the year ended December 31, 2023, $12 million of interest expense on uncertain tax positions was recorded in Benefit (provision) for income taxes and for the years ended December 31, 2022, and 2021, $12 million and $9 million of interest expense on uncertain tax positions were recorded in Interest and other financial charges – net, respectively, in the Consolidated and Combined Statements of Income. For the year ended December 31, 2023, $6 million of income tax penalties was recorded in (Benefit) provision for income taxes in the Consolidated Statement of Income. No accrual for penalties was made in the years ended December 31, 2022 or 2021.

DEFERRED INCOME TAXES.

We regularly evaluate the recoverability of our deferred tax assets and establish a valuation allowance, if necessary, to reduce the deferred tax assets to an amount that is more likely than not to be realized (a likelihood of more than 50%). Significant judgment is required in determining whether a valuation allowance is necessary and the amount of such valuation allowance. In assessing the recoverability of our deferred tax assets at December 31, 2023, we considered all available evidence, including the nature of financial statement losses, reversing taxable temporary differences, estimated future operating profits, and tax planning actions and strategies.

Deferred Income Taxes
			As of
			December 31, 2023			December 31, 2022
Total assets			$	4,474		$	1,550
Total liabilities			(68)			(370)
Net deferred income tax asset (liability)			$	4,406		$	1,180

Components of the Net Deferred Income Tax Asset (Liability)
			As of
			December 31, 2023			December 31, 2022
Deferred tax assets:
Employee benefits			$	1,418		$	222
Contract liabilities			171			193
Inventories			95			84
Operating loss carryforwards			648			176
Other accrued expenses			68			70
Receivables			45			42
Lease liabilities			75			57
Tax credit carryforwards			59			128
Contract assets			79			99
U.S. interest restriction carryforwards			61			—
Goodwill and other intangible assets			1,461			—
Property, plant, and equipment			261			338
Capitalized R&D			547			554
Other			8			—
Total deferred income tax asset			4,996			1,963
Valuation allowances			(540)			(272)
Total deferred income tax asset after valuation allowance			4,456			1,691
Deferred tax liabilities:
Goodwill and other intangible assets			—			(458)
ROU assets			(50)			(47)
Other			—			(6)
Total deferred income tax liability			(50)			(511)
Net deferred income tax asset (liability)			$	4,406		$	1,180

Effective January 1, 2022, U.S. taxpayers are required to capitalize certain R&D expenses and amortize them over five or fifteen years pursuant to the Internal Revenue Code of 1986, as amended. This provision increased our taxable income for the years ended December 31, 2023 and 2022, and resulted in additional cash payments for U.S. federal and state income taxes. A deferred tax asset on 2023 R&D expenses was recorded related to this provision with a balance of $267 million as of December 31, 2023. A deferred tax asset on 2022 R&D expenses was recorded related to this provision with a balance of $197 million and $293 million as of December 31, 2023 and 2022, respectively. In the event the capitalization of research costs is adjusted through retroactive legislation effective for 2022, the Company expects to record a reduction to the 2022 deferred tax asset resulting in a charge to tax expense under the Tax Matters Agreement with GE.

In connection with the Spin-Off, certain deferred income taxes were contributed to the Company by GE. During 2022, a net deferred income tax asset of $80 million was contributed to the Company by GE and are recognized within Deferred income taxes in the Combined Statement of Financial Position as of December 31, 2022.

Also, in connection with the Spin-Off, our net deferred income tax assets increased by $3,099 million primarily due to transfers from GE, including $964 million related to pension 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.

Valuation allowances primarily relate to non-U.S. deferred taxes where there were historical losses and U.S. federal and state credit carryforwards. Activity in the valuation allowance for the years ended December 31, 2023, 2022, and 2021 consists of the following:

Valuation Allowances
Balance at December 31, 2020			$	250
Provision for income taxes			39
Foreign currency exchange and other			(10)
Balance at December 31, 2021			$	279
Provision for income taxes			(5)
Foreign currency exchange and other			(2)
Balance at December 31, 2022			$	272
Provision for income taxes			(12)
Foreign currency exchange and other			280
Balance at December 31, 2023			$	540

As a result of the Spin-Off, there was an increase in the valuation allowance of $269 million, which is included in the Foreign currency exchange and other line of the table above.

NET OPERATING LOSSES.

As a result of the Spin-Off, there was an increase in the net operating loss deferred tax asset of $1,075 million. As of December 31, 2023, the Company had net operating loss carryforwards of $6,526 million primarily related to France, Ireland, Brazil, Germany, and the Netherlands, which can be carried forward indefinitely. The gross net operating loss carryforwards resulted in a deferred tax asset of $1,241 million as of December 31, 2023. This amount excludes accruals of $149 million for unrecognized tax benefits the Company has recorded related to the underlying tax positions which generated the net operating losses and expected impacts to U.S. foreign tax credits of $444 million.

UNDISTRIBUTED EARNINGS.

Post Spin-Off, the Company’s previously undistributed earnings of certain of our foreign subsidiaries are no longer indefinitely reinvested in non-U.S. businesses due to current U.S. funding needs. Therefore, in 2023, an incremental deferred tax liability of $21 million was recorded for withholding and other foreign taxes due upon future distribution of earnings. In addition, the Company is providing for withholding and other foreign taxes due upon future distribution of current period earnings. However, the Company generally considers instances of outside basis differences in foreign subsidiaries that would incur additional U.S. tax upon an unforeseen future reversal (e.g., capital gain distribution or disposition to an unrelated third party) of approximately $7,729 million to be permanent in duration. Quantification of the deferred tax liability, if any, associated with indefinitely reinvested basis differences is not practicable.

NOTE 12. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) – NET

Changes in AOCI by component, net of income taxes, were as follows.

Accumulated Other Comprehensive Income (Loss)
			Currency translation adjustments**(1)**			Benefit plans			Cash flow hedges			Total AOCI
December 31, 2020			$	(643)		$	(180)		$	(16)		$	(839)
Other comprehensive income (loss) before reclasses – net of taxes of $(9), $(57), and $(12)			(326)			74			40			(212)
Reclasses from AOCI – net of taxes(2) of $0, $37, and $(3)			—			6			8			14
Other comprehensive income (loss)			(326)			80			48			(198)
Less: Other comprehensive income (loss) attributable to noncontrolling interests			—			—			—			—
December 31, 2021			(969)			(100)			32			(1,037)
Other comprehensive income (loss) before reclasses – net of taxes of $(5), $(39), and $(10)			(878)			58			27			(793)
Reclasses from AOCI – net of taxes(2) of $0, $0, and $17			—			—			(50)			(50)
Other comprehensive income (loss)			(878)			58			(23)			(843)
Less: Other comprehensive income (loss) attributable to noncontrolling interests			(2)			—			—			(2)
December 31, 2022			(1,845)			(42)			9			(1,878)
Other comprehensive income (loss) before reclasses – net of taxes(3) of $22, $186, and $1			74			(601)			(5)			(532)
Reclasses from AOCI – net of taxes(2) of $0, $97, and $6			—			(296)			(22)			(318)
Other comprehensive income (loss)			74			(897)			(27)			(850)
Spin-Off related adjustments – net of taxes(4) of $0 $(509), and $0			28			1,972			—			2,000
Less: Other comprehensive income (loss) attributable to noncontrolling interests			(37)			—			—			(37)
December 31, 2023			$	(1,706)		$	1,033		$	(18)		$	(691)

(1) The amount of Currency translation adjustments (“CTA”) recognized in Other comprehensive income (loss) (“OCI”) during the years ended December 31, 2023 and 2022 included net gains (losses) relating to net investment hedges, as further discussed in Note 13, “Financial Instruments and Fair Value Measurements.”

(2) Reclassifications from AOCI into earnings for Benefit plans are recognized within Non-operating benefit (income) loss, while Cash flow hedges are recognized within Cost of products or Cost of services in our Consolidated and Combined Statements of Income.

(3) Includes pre-tax impact to Benefit plans of $(305) million for the pension plan amendment and related remeasurement of plan assets and benefit obligations. Refer to Note 10, “Postretirement Benefit Plans” for further information.

(4) Includes impact of $1,972 million to Benefit plans for unrecognized gain transferred from the GE pension and other postretirement plans and $28 million to CTA associated with other Spin-Off related adjustments. Refer to Note 10, “Postretirement Benefit Plans” for further information on the unrecognized gain transferred from the GE pension and other postretirement plans in connection with the Spin-Off.

NOTE 13. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

DERIVATIVES AND HEDGING.

Our primary objective in executing and holding derivative contracts is to reduce the volatility of earnings and cash flows associated with risks related to foreign currency exchange rates, interest rates, equity prices, and commodity prices. These derivative contracts reduce, but do not entirely eliminate, the aforementioned risks. Our policy is to use derivative contracts solely for managing risks and not for speculative purposes.

The fair values of derivative contracts are recognized within All other current assets, All other assets, All other current liabilities, and All other liabilities in the Consolidated and Combined Statements of Financial Position based upon the contractual timing of settlements for these contracts. We designate certain derivative contracts as hedging instruments in cash flow, fair value, or net investment hedges. We evaluate the effectiveness of our derivative contracts designated as hedging instruments on a quarterly basis.

Cash Flow Hedges

We use foreign currency forward contracts to hedge the volatility of cash flows related to forecasted transactions and firm commitments, including intercompany transactions, denominated in foreign currencies other than a subsidiary’s functional currency. The maximum length of time over which we hedge forecasted transactions is two years. As of December 31, 2023, these contracts have a maximum remaining maturity of 12 months.

For derivative instruments designated as cash flow hedges, changes in the fair value of designated hedging instruments are initially recorded as a component of AOCI and subsequently reclassified to earnings in the period in which the hedged transaction occurs and to the same financial statement line item impacted by the hedged transaction. We expect to reclassify $21 million of pre-tax net deferred losses associated with designated cash flow hedges to earnings in the next 12 months, contemporaneously with the impact on earnings of the related hedged transactions.

The cash flows associated with derivatives designated as cash flow hedges are recorded in Cash from (used for) operating activities in the Consolidated and Combined Statements of Cash Flows.

Net Investment Hedges

We use cross-currency interest rate swaps and foreign currency forward contracts in combination with foreign currency option contracts to hedge the foreign currency risk associated with our net investment in foreign operations. The maximum length of time over which we are hedging our net investment in foreign operations is approximately five years. As of December 31, 2023, these contracts have a maximum remaining maturity of 52 months and were designated as hedges of our net investment in foreign operations with Euro, Japanese Yen, and Chinese Renminbi functional currencies.

We use the spot method to assess hedge effectiveness for our net investment hedges. Changes in the fair value of the designated hedging instruments attributable to fluctuations in foreign currency to USD spot exchange rates are initially recorded and held as a component of the CTA portion of AOCI until the hedged foreign operation is either sold or substantially liquidated. Changes in fair value of the portion of net investment hedging derivatives excluded from the assessment of effectiveness are recorded in CTA and then recognized within Interest and other financial charges – net in the Consolidated and Combined Statements of Income using a systematic and rational method over the life of the hedge. Excluded components on the cross-currency swaps designated as net investment hedges, in the form of accrued interest, are recorded within Interest and other financial charges – net in the Consolidated and Combined Statements of Income.

The cash flows associated with derivatives designated as net investment hedges are recorded in Cash from (used for) investing activities in the Consolidated and Combined Statements of Cash Flows. Cash flows from the periodic interest settlements on the cross-currency swaps are recorded in Cash from (used for) operating activities in the Consolidated and Combined Statements of Cash Flows.

Fair Value Hedges

We use interest rate swaps to hedge the interest rate risk on our fixed rate borrowings. These derivatives are designated as fair value hedges. In the fourth quarter of 2023, we executed interest-rate swap contracts to hedge the benchmark interest rate risk of specific designated cash flows of a senior unsecured note.

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

Cash flows for the periodic interest settlements on the interest rate swaps are recorded in Cash from (used for) operating activities in the Consolidated and Combined Statements of Cash Flows.

Derivatives Not Designated as Hedging Instruments

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

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

The cash flows associated with derivatives not designated as hedges are recorded in Cash from (used for) operating activities and Cash from (used for) investing activities in the Consolidated and Combined Statements of Cash Flows based on the nature of the underlying hedged transaction.

The following table presents the gross fair values of our outstanding derivative instruments.

Fair Value of Derivatives
			December 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			$	1,356		$	8		$	30					$	1,240		$	32		$	53
Derivatives accounted for as cash flow hedges			1,356			8			30						1,240			32			53
Cross-currency swaps(1)			2,209			—			204						2,132			—			111
Foreign currency exchange contracts and options			991			9			11						—			—			—
Derivatives accounted for as net investment hedges			3,200			9			215						2,132			—			111
Interest rate swaps(1)			1,000			35			10						—			—			—
Derivatives accounted for as fair value hedges			1,000			35			10						—			—			—
Foreign currency exchange contracts			3,597			19			12						4,456			9			20
Other derivatives(2)			438			57			2						660			25			25
Derivatives not designated as hedging instruments			4,035			76			14						5,116			34			45
Total derivatives			$	9,591		$	128		$	269					$	8,488		$	66		$	209

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

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

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

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

Under the master arrangements with the respective counterparties to our derivative contracts, in certain circumstances and subject to applicable requirements, we are allowed to net settle transactions with a single net amount payable by one party to the other. However, we have elected to present the derivative assets and derivative liabilities on a gross basis on our Consolidated and Combined Statements of Financial Position and in the table above.

As of December 31, 2023, the potential effect of rights of offset associated with the derivative contracts would be an offset to both assets and liabilities by $41 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 years ended December 31
												2023			2022			2021
Cash flow hedges												$	(6)		$	37		$	40
Net investment hedges(1)												(97)			(111)			—

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

The tables below present the effects of our derivative financial instruments and hedging activity in the Consolidated and Combined Statements of Income.

Derivative Financial Instruments and Hedging Activity
			For the year ended December 31, 2023
			Cost of products			Cost of services			SG&A			Interest and other financial charges – net			Other**(3)**
Foreign currency exchange contracts			$	23		$	6		$	—		$	—		$	—
Effects of cash flow hedges			23			6			—			—			—
Cross-currency swaps			—			—			—			34			—
Foreign currency exchange contracts and options			—			—			—			3			—
Effects of net investment hedges**(1)**			—			—			—			37			—
Foreign currency exchange contracts			—			—			—			—			—
Interest rate swaps			—			—			—			24			—
Debt basis adjustment on Long-term borrowings			—			—			—			(25)			—
Other derivatives(2)			—			—			—			—			—
Effects of fair value hedges			—			—			—			(1)			—
Foreign currency exchange contracts			3			2			—			—			5
Other derivatives(2)			—			—			10			—			47
Effects of derivatives not designated as hedging instruments			$	3		$	2		$	10		$	—		$	52
			For the year ended December 31, 2022
			Cost of products			Cost of services			SG&A			Interest and other financial charges – net			Other**(3)**
Foreign currency exchange contracts			$	54		$	—		$	—		$	—		$	—
Effects of cash flow hedges			54			—			—			—			—
Cross-currency swaps			—			—			—			—			—
Foreign currency exchange contracts and options			—			—			—			—			—
Effects of net investment hedges**(1)**			—			—			—			—			—
Foreign currency exchange contracts			—			—			—			—			—
Interest rate swaps			—			—			—			—			—
Debt basis adjustment on Long-term borrowings			—			—			—			—			—
Other derivatives(2)			—			—			—			—			—
Effects of fair value hedges			—			—			—			—			—
Foreign currency exchange contracts			(96)			—			—			—			11
Other derivatives(2)			—			—			—			—			11
Effects of derivatives not designated as hedging instruments			$	(96)		$	—		$	—		$	—		$	22
			For the year ended December 31, 2021
			Cost of products			Cost of services			SG&A			Interest and other financial charges – net			Other**(3)**
Foreign currency exchange contracts			$	(8)		$	—		$	—		$	—		$	—
Effects of cash flow hedges			(8)			—			—			—			—
Cross-currency swaps			—			—			—			—			—
Foreign currency exchange contracts and options			—			—			—			—			—
Effects of net investment hedges			—			—			—			—			—
Foreign currency exchange contracts			(12)			—			—			—			—
Interest rate swaps			—			—			—			—			—
Debt basis adjustment on Long-term borrowings			—			—			—			—			—
Other derivatives(2)			—			—			—			—			24
Effects of fair value hedges			(12)			—			—			—			24
Foreign currency exchange contracts			—			—			—			—			10
Other derivatives(2)			—			—			—			—			—
Effects of derivatives not designated as hedging instruments			$	—		$	—		$	—		$	—		$	10

(1) Amounts are excluded from effectiveness testing for 2023 and 2022.

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

(3) Amounts are inclusive of gains (losses) in Other (income) expense – net in the Consolidated and Combined Statements of Income.

Counterparty Credit Risk

The Company would be exposed to credit-related losses in the event of non-performance by counterparties on executed derivative instruments. The credit exposure of derivative contracts is represented by the fair value of contracts as of the reporting date. The fair value of the Company’s derivatives can change significantly from period to period based on, among other factors, market movements, and changes in our positions.

We manage concentration of counterparty credit risk by limiting acceptable counterparties to major financial institutions with investment grade credit ratings, by limiting the amount of credit exposure to individual counterparties, and by actively monitoring counterparty credit ratings and the amount of individual credit exposure.

We also employ master netting arrangements that limit the risk of counterparty non-payment on a particular settlement date to the net gain that would have otherwise been received from the counterparty. Although not completely eliminated, we do not consider the risk of counterparty default to be significant as a result of these protections. None of our derivative instruments are subject to collateral or other security arrangements, nor do they contain provisions that are dependent on our credit ratings from any credit rating agency.

FAIR VALUE MEASUREMENTS.

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

Fair Value of Assets and Liabilities Measured on a Recurring Basis
			As of December 31, 2023															As of 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			—			128			—			128						—			66			—			66
Liabilities:
Deferred compensation			264			5			—			269						62			2			—			64
Derivatives			—			269			—			269						—			203			6			209
Contingent consideration			—			—			44			44						—			—			42			42

Contingent Consideration

The contingent consideration liabilities as of December 31, 2023 and 2022 were recorded in connection with business acquisitions. During the years ended December 31, 2023 and 2022, we recorded benefits of $17 million and $65 million, respectively, from fair value adjustments related to the remeasurement of contingent consideration liabilities. These benefits are recognized within SG&A in the Consolidated and Combined Statements of Income. Changes in the Level 3 fair value measurement of contingent consideration were not material during the year ended December 31, 2021.

Non-recurring Fair Value Measurements

Changes in fair value measurements of assets and liabilities measured at fair value on a non-recurring basis, such as equity method investments, equity investments without readily determinable fair value, financing receivables, and long-lived assets, were not material for the years ended December 31, 2023, 2022, and 2021.

Fair Value of Other Financial Instruments

The estimated fair value of borrowings as of December 31, 2023 and 2022 was $9,959 million and $8,521 million compared to a carrying value (which includes a reduction for amortized debt issuance costs and discounts) of $9,442 million and $8,249 million, respectively. The fair value of our borrowings includes accrued interest and is determined based on observable and quoted prices and spreads of comparable debt and benchmark securities and is considered Level 2 in the fair value hierarchy. See Note 9, “Borrowings” for further information.

NOTE 14. 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 9, “Borrowings” for further information. In addition, prior to Spin-Off, GE had provided performance guarantees in certain jurisdictions where we lacked the legal structure to issue the requisite guarantees required on certain projects.

Following the Spin-Off, which was completed pursuant to a Separation and Distribution Agreement (the “Separation 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 December 31, 2023 the Company’s maximum aggregate exposure, subject to GE reimbursement, is approximately $114 million.

PRODUCT WARRANTIES.

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

Product Warranties
			For the years ended December 31
			2023			2022			2021
Balance at beginning of period			$	193		$	161		$	157
Current-year provisions			216			238			228
Expenditures			(218)			(199)			(221)
Other changes			1			(7)			(3)
Balance at end of period			$	192		$	193		$	161

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

LEGAL MATTERS.

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

Contracts with Iraqi Ministry of Health

In 2017, a number of U.S. Service members, civilians, and their families brought a complaint in the U.S. District Court for the District of Columbia (the “District Court”) against a number of pharmaceutical and medical device companies, including GE HealthCare and certain affiliates, alleging that the defendants violated the U.S. Anti-Terrorism Act. The complaint seeks monetary relief and alleges that the defendants provided funding for an Iraqi terrorist organization through their sales practices pursuant to pharmaceutical and medical device contracts with the Iraqi Ministry of Health. In July 2020, the District Court granted defendants’ motions to dismiss and dismissed all of the plaintiffs’ claims. In January 2022, a panel of the U.S. Court of Appeals for the District of Columbia Circuit reversed the District Court’s decision. In February 2022, the defendants requested review of the decision by all of the judges on the U.S. Court of Appeals for the District of Columbia Circuit (the “D.C. Circuit”). In February 2023, the D.C. Circuit denied this request. In June 2023, defendants petitioned the Supreme Court to review the D.C. Circuit’s decision. On October 2, 2023, the Supreme Court invited the Solicitor General to file a brief in this case expressing the views of the United States. The proceedings in the District Court are stayed.

Government Disclosures

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

ENVIRONMENTAL AND ASSET RETIREMENT OBLIGATIONS.

Our operations, like operations of other companies engaged in similar businesses, involve the use, disposal, and cleanup of substances regulated under environmental protection laws and nuclear decommissioning regulations. We have obligations for ongoing and future environmental remediation activities. Liabilities for environmental remediation and nuclear decommissioning exclude possible insurance recoveries. Due to uncertainties or changes regarding the status of laws, regulations, technology, and information related to individual sites and lawsuits, it is reasonably possible that our exposure will exceed amounts accrued, and amounts not currently reasonably estimable and/or probable may need to be accrued in future periods. Our environmental remediation liabilities, which are measured on an undiscounted basis, were $19 million and $11 million as of December 31, 2023 and 2022, respectively, and are recognized within All other current liabilities and All other liabilities in the Consolidated and Combined Statements of Financial Position.

We record asset retirement obligations, which primarily relate to nuclear decommissioning, associated with the retirement of tangible long-lived assets as a liability in the period in which the obligation is incurred and its fair value can be reasonably estimated. The liability is measured at the present value of the obligation when incurred and is adjusted in subsequent periods. Corresponding asset retirement costs are generally capitalized as part of the carrying value of the related long-lived assets and depreciated over the assets’ useful lives. Our asset retirement obligations were $267 million and $274 million at December 31, 2023 and 2022, respectively, and are recognized within All other current liabilities and All other liabilities in the Consolidated and Combined Statements of Financial Position. Changes in the liability balance were mainly due to foreign exchange rates, settlement, accretion, and revisions in fair value, and were not material for the years ended December 31, 2023, 2022, and 2021.

OTHER UNRECOGNIZED CONTRACTUAL OBLIGATIONS.

We have future contractual obligations and other minimum commercial commitments which represent take-or-pay contracts as well as purchase orders for goods and services utilized in the normal course of business such as capital expenditures, inventory, and services under contracts.

As of December 31, 2023, we had the following purchase commitments that are legally binding and specify minimum purchase quantities or spending amounts. These purchase commitments do not exceed our projected requirements and the amounts below exclude open purchase orders with a remaining term of less than one year.

Other Unrecognized Contractual Obligations
			2024			2025			2026			2027			2028			Thereafter			Total
Other Unrecognized Contractual Obligations			$	308		$	195		$	142		$	79		$	72		$	79		$	875

NOTE 15. RESTRUCTURING AND OTHER ACTIVITIES – NET

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

For restructuring initiatives committed to by management through December 31, 2023, we recorded net expenses of $54 million, $146 million, and $155 million for the years ended December 31, 2023, 2022, and 2021. These restructuring initiatives are expected to result in additional expenses of approximately $20 million, to be incurred primarily over the next 12 months, substantially related to employee-related termination benefits and facility exit costs. Restructuring expenses (gains) are recognized within Cost of products, Cost of services, or SG&A, as appropriate, in the Consolidated and Combined Statements of Income.

Restructuring and Other Activities
									For the years ended December 31
												2023			2022			2021
Employee termination costs												$	38		$	74		$	127
Facility and other exit costs												3			46			20
Asset write-downs												13			26			8
Total restructuring and other activities – net												$	54		$	146		$	155

In connection with the Spin-Off, GE transferred employee termination obligations for services already rendered of $31 million to GE HealthCare of which $4 million was remaining as of December 31, 2023. Liabilities related to restructuring are recognized within All other current liabilities and All other liabilities in the Consolidated and Combined Statements of Financial Position and totaled $68 million and $75 million as of December 31, 2023 and 2022, respectively.

NOTE 16. SHARE-BASED COMPENSATION

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

Stock options provide employees the opportunity to purchase GE HealthCare shares in the future at the market price of our stock on the date the award is granted (the strike price). The options become exercisable over the vesting period, typically becoming fully vested in three to three and a half years, and expire ten years from the grant date if not exercised. We value stock options using a Black-Scholes option pricing model.

RSUs provide an employee the right to shares of GE HealthCare stock when the restrictions lapse over the vesting period of three to three and a half years. Upon vesting, each RSU is converted into one share of GE HealthCare common stock. We value RSUs using the market price on the grant date.

PSUs provide an employee with the right to receive shares of GE HealthCare stock based upon achievement of certain performance metrics. PSUs are subject to an employee service period of three to three and a half years. PSUs may include a relative total shareholder return (“TSR”) modifier to determine the number of shares earned at the end of the performance period. We engage third-party valuation specialists to assist with the fair value estimate of the PSUs that include the TSR modifier using a Monte Carlo simulation to model the probability of possible outcomes.

The following tables provide the weighted average fair value of options, RSUs, and PSUs granted to employees during the year ended December 31, 2023, and the related weighted average stock option valuation assumptions used in the Black-Scholes model.

Weighted Average Grant Date Fair Value
(In dollars)			December 31, 2023
Stock options			$	25
RSUs			73
PSUs			85

Key Assumptions in the Black-Scholes Valuation for Stock Options
			December 31, 2023
Risk-free rate			3.6		%
Dividend yield			0.01		%
Expected volatility			26.2		%
Expected term (in years)			6.2

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

Stock Option Activity
			Shares (in thousands)			Weighted average exercise price (in dollars)			Weighted average contractual term (in years)			Intrinsic value (in millions)
Outstanding as of January 4, 2023(1)			3,738			$	90
Granted			2,155			72
Exercised/Vested			(561)			60
Forfeited			(159)			71
Expired			(210)			127
Outstanding as of December 31, 2023			4,963			$	84		6.1			$	35
Exercisable as of December 31, 2023			2,810			$	94		3.8			$	23
Expected to vest			1,755			$	72		9.0			$	10

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

RSU and PSU Activity
			RSUs															PSUs
			Shares (in thousands)			Weighted average grant date fair value (in dollars)			Weighted average vesting period (in years)			Intrinsic value (in millions)						Shares (in thousands)			Weighted average grant date fair value (in dollars)			Weighted average vesting period (in years)			Intrinsic value (in millions)
Outstanding as of January 4, 2023(1)			3,551			$	58											1,365			$	68
Granted			1,904			73												539			85
Exercised/Vested			(1,317)			56												—			—
Forfeited			(409)			60												(483)			72
Expired			—			—												(175)			66
Outstanding as of December 31, 2023			3,729			$	67		1.5			$	290					1,246			$	85		1.4			$	96
Expected to vest			3,333			$	60		1.5			$	258					N/A			N/A			N/A			N/A

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

Share-based compensation expense is recognized within Cost of products, Cost of services, SG&A, or R&D, as appropriate, in the Consolidated Statement of Income.

Share-based Compensation Expense									For the year ended
									December 31, 2023
Share-based compensation expense (pre-tax)									$	114
Income tax benefits									(23)
Share-based compensation expense (after-tax)									$	91

Other Share-based Compensation Data
Unrecognized compensation expense as of December 31, 2023(1)			$	149
Cash received from stock options exercised in the year ended December 31, 2023			34
Intrinsic value of stock options exercised and RSU/PSUs vested in the year ended December 31, 2023			106

(1) Amortized over a weighted average period of 1.9 years.

NOTE 17. EARNINGS PER SHARE

On January 3, 2023, there were approximately 454 million shares of GE HealthCare common stock outstanding, including the interest in our outstanding shares of common stock retained by GE following the Distribution. The computation of 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 interests which is fully associated with continuing operations. Subsequent to the Spin-Off, the dilutive effect of outstanding stock options, RSUs, and PSUs is reflected in the denominator for diluted earnings per share using the treasury stock method.

Earnings Per Share
									For the years ended December 31
(In millions, except per share amounts)												2023			2022			2021
Numerator:
Net income from continuing operations												$	1,618		$	1,949		$	2,275
Net (income) loss attributable to noncontrolling interests												(46)			(51)			(46)
Net income from continuing operations attributable to GE HealthCare												1,572			1,898			2,229
Deemed preferred stock dividend of redeemable noncontrolling interest												(183)			—			—
Net income from continuing operations attributable to GE HealthCare common stockholders												1,389			1,898			2,229
Income (loss) from discontinued operations, net of taxes												(4)			18			18
Net income attributable to GE HealthCare common stockholders												$	1,385		$	1,916		$	2,247
Denominator:
Basic weighted-average shares outstanding												455			454			454
Dilutive effect of common stock equivalents												3			—			—
Diluted weighted-average shares outstanding												458			454			454
Basic Earnings Per Share:
Continuing operations												$	3.06		$	4.18		$	4.91
Discontinued operations												(0.01)			0.04			0.04
Attributable to GE HealthCare common stockholders												3.05			4.22			4.95
Diluted Earnings Per Share:
Continuing operations												$	3.04		$	4.18		$	4.91
Discontinued operations												(0.01)			0.04			0.04
Attributable to GE HealthCare common stockholders												3.03			4.22			4.95
Antidilutive securities(1)												4			—			—

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

NOTE 18. SUPPLEMENTAL FINANCIAL INFORMATION

Cash, Cash Equivalents, and Restricted Cash			As of
			December 31, 2023						December 31, 2022
Cash and cash equivalents			$	2,494					$	1,440
Short-term restricted cash			10						5
Total Cash, cash equivalents, and restricted cash as presented on the Consolidated and Combined Statements of Financial Position			2,504						1,445
Long-term restricted cash(1)			2						6
Total Cash, cash equivalents, and restricted cash as presented on the Consolidated and Combined Statements of Cash Flows			$	2,506					$	1,451

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

Inventories
			As of
			December 31, 2023			December 31, 2022
Raw materials			$	961		$	1,053
Work in process			91			91
Finished goods			908			1,011
Inventories**(1)**			$	1,960		$	2,155

(1) Certain inventory items are long-term in nature and therefore have been recognized within All other assets in the Consolidated and Combined Statements of Financial Position. See the supplemental table “All Other Current and Non-Current Assets” for further information.

Property, Plant, and Equipment – Net
			Depreciable lives (in years)			Original Cost									Accumulated Depreciation									Net Carrying Value
As of December 31			2023			2022						2023			2022						2023			2022
Land and improvements(1)			8			$	70		$	70					$	(1)		$	(1)					$	69		$	69
Buildings, structures and related equipment			8-40			1,956			1,889						(1,167)			(1,109)						789			780
Machinery and equipment(2)			4-20			2,617			2,541						(1,802)			(1,791)						815			750
Leasehold costs and manufacturing plants under construction			1-40			565			489						(94)			(87)						471			402
Property, plant, and equipment – net, exclusive of ROU operating lease assets						$	5,208		$	4,989					$	(3,064)		$	(2,988)					$	2,144		$	2,001
ROU operating lease assets(3)																								356			313
Property, plant, and equipment – net																								$	2,500		$	2,314

(1) Depreciable lives exclude land.

(2) Equipment leased to customers is classified as Machinery and equipment and is reported at cost less accumulated depreciation, and was $38 million and $39 million as of December 31, 2023 and 2022, respectively.

(3) See Note 7, “Leases” for further information.

Depreciation related to Property, plant, and equipment – net, exclusive of ROU operating lease assets, was $248 million, $228 million, and $225 million for the years ended December 31, 2023, 2022, and 2021, respectively.

All Other Current and Non-Current Assets
			As of
			December 31, 2023			December 31, 2022
Prepaid expenses and deferred costs			$	147		$	163
Financing receivables – net			97			97
Derivative instruments			84			63
Other(1)			61			94
All other current assets			$	389		$	417
Prepaid pension asset			716			70
Equity method and other investments			357			322
Financing receivables – net			178			196
Long-term receivables – net			124			145
Inventories			147			104
Contract and other deferred assets			168			119
Other(2)			191			68
All other non-current assets**(3)**			$	1,881		$	1,024

(1) Current Other primarily consists of tax receivables.

(2) Non-current Other primarily consists of indemnities due from GE and derivative instruments.

(3) All other non-current assets increased in the year ended December 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.

Equity Method Investments
						Equity method investment balance									Equity method income (loss)
As of December 31			Ownership Percentage			2023			2022						2023			2022			2021
Nihon Medi-Physics Co., Ltd			50%			$	150		$	162					$	10		$	16		$	22
Other						20			20						1			(3)			5
Total						$	170		$	182					$	11		$	13		$	27

All Other Current and Non-Current Liabilities
			As of
			December 31, 2023			December 31, 2022
Employee compensation and benefit liabilities(1)			$	1,518		$	853
Sales allowances and related liabilities			228			243
Uncertain and other income taxes and related liabilities			260			237
Product warranties			192			193
Accrued freight and utilities			132			150
Operating lease liabilities			110			104
Derivative instruments(2)			128			86
Interest payable on borrowings			87			52
Environmental and asset retirement obligations			21			34
Other(3)			335			238
All other current liabilities**(4)**			$	3,011		$	2,190
Contract liabilities			705			630
Operating lease liabilities			273			243
Environmental and asset retirement obligations			265			251
Uncertain and other income taxes and related liabilities			208			182
Derivative instruments			136			119
Finance lease obligations			38			39
Sales allowances and related liabilities			27			26
Other(5)			225			113
All other non-current liabilities**(4)**			$	1,877		$	1,603

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

(2) Derivative instruments include the related accrued interest. Refer to Note 13, “Financial Instruments and Fair Value Measurements” for further information.

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

(4) All other current and non-current liabilities increased in the year ended December 31, 2023, primarily due to liabilities transferred from GE as a result of the Spin-Off. Refer to Note 1, “Organization and Basis of Presentation” for further information.

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

SUPPLY CHAIN FINANCE PROGRAMS.

Included within Accounts payable in the Consolidated and Combined Statements of Financial Position as of December 31, 2023 and 2022 were $365 million and $392 million, respectively, of confirmed supplier invoices that are outstanding and subject to third-party programs. See Note 2, “Summary of Significant Accounting Policies” for further information regarding our supply chain finance programs.

COLLABORATIVE ARRANGEMENTS.

In October 2023, we entered into a Collaboration and License Agreement (“Agreement”) with Novo Nordisk (“Novo”) to pursue a collaboration on the development, regulatory approval and commercialization of an ultrasound therapy. Under the terms of the Agreement, in return for providing development activities associated with the development of the underlying ultrasound device to deliver Novo’s clinical therapies, we received an upfront nonrefundable payment with the potential for additional nonrefundable payments over the next four years. We will recognize the nonrefundable payments as an offset to R&D expense as we perform activities contemplated under the Agreement. These nonrefundable payments are not material. We may also receive future payments based on the achievement of certain development milestones and regulatory approvals associated with the ultrasound therapy.

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. All noncontrolling interests with redemption features that are not solely within our control are recognized within the 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.

The activity attributable to redeemable noncontrolling interests for the years ended December 31, 2023, 2022, and 2021 is presented below.

Redeemable Noncontrolling Interests
			For the years ended December 31
			2023			2022			2021
Balance at beginning of period			$	230		$	220		$	223
Net income attributable to redeemable noncontrolling interests			41			47			39
Redemption value adjustments(1)			183			—			—
Distributions to and exercise of redeemable noncontrolling interests and other(2)			(289)			(37)			(42)
Balance at end of period			$	165		$	230		$	220

(1) As of January 3, 2023, certain redeemable noncontrolling interests were probable of becoming redeemable due to the change of control that occurred upon consummation of the Spin-Off. These 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.

(2) In the first quarter of 2023, the redeemable noncontrolling interest holder exercised its option redemption provision. The redemption amount of $211 million was paid in the second quarter of 2023.

Other Income (Expense) – Net
									For the years ended December 31
												2023			2022			2021
Net interest and investment income (expense)												$	26		$	(9)		$	34
Equity method income (loss)												11			13			27
Change in fair value of assumed obligations												(32)			—			—
Other items, net(1)												81			58			62
Total other income (expense) – net												$	86		$	62		$	123

(1) Other items, net primarily consists of change in tax indemnities with GE, lease income, gains and losses related to derivatives, and licensing and royalty income for the year ended December 31, 2023, and licensing and royalty income and gains and losses related to derivatives for the years ended December 31, 2022 and 2021.

NOTE 19. RELATED PARTIES

PRIOR TO SPIN-OFF.

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

Pensions, Benefit, and Contribution Plans

As discussed in Note 10, “Postretirement Benefit Plans”, employees of the Company participated in pensions, benefit, and contribution plans that were sponsored by GE. The Company was charged $207 million and $237 million for the years ended December 31, 2022 and 2021, respectively, related to employee participation in these plans. In connection with the Spin-Off, a portion of the plans was 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 $67 million and $76 million for the years ended December 31, 2022 and 2021, respectively, and is primarily recognized within SG&A in the Combined Statements 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									For the years ended
									December 31, 2022			December 31, 2021
Costs for centralized services(1)									$	42		$	56
Costs associated with employee medical insurance(2)									122			132
Costs for corporate and shared services(3)									457			455

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

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

(3) Costs for corporate and shared services such as information technology, finance and other services were primarily recognized in SG&A and R&D in the Combined Statements 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 years ended December 31, 2022 and 2021. 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 year ended December 31, 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 information technology, human resources, supply chain, finance, and facilities services, among others. Some of these costs were included in the Corporate allocations from GE prior to Spin-Off. The services generally commenced on the date of the Spin-Off and will terminate up to 24 months following the Distribution Date depending upon the related transitional service. For the year ended December 31, 2023, we incurred $372 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 – 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 Tax Matters Agreement 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 Consolidated and Combined Statements of Financial Position. Non-current amounts due from GE were $81 million and due to GE were $33 million, and were recognized within All other assets and All other liabilities, respectively, in the Consolidated Statement of Financial Position as of December 31, 2023. These amounts primarily relate to tax and other indemnities.

NOTE 20. DISCONTINUED OPERATIONS

On March 31, 2020, we completed the sale of our BioPharma business to Danaher Corporation for $20,718 million. Activity within discontinued operations for the years ended December 31, 2023, 2022, and 2021 primarily relates to gain on disposal and Benefit (provision) for income taxes.

NOTE 21. SUBSEQUENT EVENTS

On January 8, 2024, we announced an agreement to acquire MIM Software, a global provider of medical imaging analysis and AI solutions for the practice of radiation oncology, molecular radiotherapy, diagnostic imaging, and urology at imaging centers, hospitals, specialty clinics, and research organizations worldwide. The transaction is subject to customary closing conditions, including regulatory approvals.

On January 22, 2024, we repaid an additional $150 million of the outstanding Term Loan Facility.

On January 22, 2024, we executed an additional $700 million of interest-rate swap contracts to hedge the benchmark interest rate risk of specific designated cash flows of our senior unsecured notes. These derivatives are designated as fair value hedges.