gehc-20240206
0001932393false00019323932024-02-062024-02-06

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 6, 2024

GE HEALTHCARE TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)
 
Delaware001-4152888-2515116
(State or other jurisdiction
of incorporation)
(Commission
 File Number)
(IRS Employer
Identification No.)
   
500 W. Monroe Street,Chicago,IL 60661
(Address of principal executive offices) (Zip Code)
    
(Registrant’s telephone number, including area code) (833) 735-1139

______________________________________________
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.01 per share
GEHC
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act.



Item 2.02 Results of Operations and Financial Condition.

On February 6, 2024, GE HealthCare Technologies Inc. (“GE HealthCare”) issued a press release announcing its fourth quarter and fiscal year ended December 31, 2023 financial results. A copy of this press release is furnished as Exhibit 99 to this Current Report on Form 8-K.

The information furnished pursuant to Item 2.02, including Exhibit 99, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of GE HealthCare under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits
ExhibitDescription
99
104The cover page of this Current Report on Form 8-K, formatted in Inline XBRL.




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

  GE HealthCare Technologies Inc.
  
(Registrant)
   
 
 
Date: February 6, 2024
 /s/ George A. Newcomb
  George A. Newcomb, Controller & Chief Accounting Officer (authorized signatory)


Document
https://cdn.kscope.io/734c79ab775a1b3c3e2869f62ae35fe2-ge-hlthcr_newstandardxrgbx.jpg                 
Exhibit 99


GE HealthCare Reports Fourth Quarter and Full Year 2023 Financial Results
Delivers Strong Financial and Operating Performance in First Year as Public Company

Fourth Quarter 2023
Revenue growth was 5% year-over-year; Organic revenue growth* of 5%
Net income margin was 7.7% versus 11.2% for the prior year; Adjusted Earnings Before Interest and Taxes (EBIT) margin* was 16.1% versus the fourth quarter of 2022 Standalone Adjusted EBIT margin* of 16.1%
Cash flow from operating activities was $1.1 billion versus $1.1 billion for the prior year; Free cash flow* was $956 million versus $987 million; repaid $850 million of debt in the fourth quarter of 2023 and an additional $150 million of debt in January 2024
Full Year 2023
Revenue growth was 7% year-over-year; Organic revenue growth* of 8%
Net income margin was 8% versus 10.4% for the prior year; Adjusted EBIT margin* was 15.1% versus 2022 Standalone Adjusted EBIT margin* of 14.5%
Cash flow from operating activities was $2.1 billion versus $2.1 billion for the prior year, and Free cash flow* was $1.7 billion versus $1.8 billion last year, due to standalone interest and postretirement benefit payments
Company provides 2024 financial guidance, demonstrating progress toward medium-term financial targets

Chicago, IL – February 6, 2024 – GE HealthCare (Nasdaq: GEHC), a leading global precision care innovator, today reported financial results for the fourth quarter ended December 31, 2023.

GE HealthCare President and CEO Peter Arduini said, “After our first year as a publicly traded company, I’m pleased to announce robust fourth quarter and full year results. This strong financial performance is a testament to our dedicated team and successful execution of our precision care strategy. We’ve made significant strides, including investing over $1 billion in R&D for future growth, helping drive more than 40 innovations in 2023. We bolstered our market position with strategic acquisitions, while at the same time paying down $1 billion in debt, setting a solid foundation for continued growth. We’re confident heading into 2024 amid the backdrop of an improved capital equipment landscape.”

Fourth Quarter 2023 Total Company Financial Performance
Revenues of $5.2 billion increased 5% on both a reported and Organic* basis year-over-year, driven by price and volume.
Total company book-to-bill was strong at 1.05 times, defined as Total orders divided by Total revenues, as the Company continues to build a robust backlog. Total company orders increased 3% organically year-over-year.
Net income attributable to GE HealthCare was $403 million versus $554 million for the prior year, and Adjusted EBIT* was $837 million versus $844 million.
Net income margin was 7.7% versus 11.2% for the prior year, down 350 basis points (bps) primarily impacted by standalone interest expense. Adjusted EBIT margin* was 16.1% versus 17.1%, down 100 bps. Adjusted EBIT margin* for the fourth quarter of 2023 was flat versus the Company’s estimated fourth quarter 2022 Standalone Adjusted EBIT margin* of 16.1% as benefits from productivity and price were offset primarily by investments.
Earnings per share (EPS) from continuing operations were $0.88 versus $1.21, down $0.33 from the prior year. Adjusted EPS* was $1.18 versus $1.31, down $0.13 from the prior year. Both comparisons were impacted by standalone interest expense. Adjusted EPS* for the fourth quarter of 2023 grew $0.12 versus the Company’s estimated fourth quarter 2022 Standalone Adjusted EPS* of $1.06.
Cash flow from operating activities was $1.1 billion, down $13 million year-over-year. Free cash flow* was $956 million, down $31 million year-over-year. Both metrics were primarily impacted by standalone interest and postretirement benefit payments. The Company repaid $850 million of debt in the fourth quarter of 2023 and an additional $150 million of debt in January 2024.
* Non-GAAP financial measure.
1        


Fourth Quarter 2023 Segment Financial Performance

Imaging
Revenues of $2.8 billion increased 4% on both a reported and Organic* basis year-over-year.
Segment EBIT was $337 million versus $321 million for the prior year.
Segment EBIT margin was 11.9% versus 11.8% for the prior year.
Ultrasound
Revenues of $944 million declined 1% reported and 2% on an Organic* basis year-over-year.
Segment EBIT was $244 million versus $285 million for the prior year.
Segment EBIT margin was 25.8% versus 29.8% for prior year.
Patient Care Solutions
Revenues of $827 million increased 5% reported and 4% on an Organic* basis year-over-year.
Segment EBIT was $110 million versus $130 million for the prior year.
Segment EBIT margin was 13.3% versus 16.5% for the prior year.
Pharmaceutical Diagnostics
Revenues of $591 million increased 25% reported and 23% on an Organic* basis year-over-year.
Segment EBIT was $144 million versus $109 million for the prior year.
Segment EBIT margin was 24.4% versus 23.0% for the prior year.

Full Year 2023 Total Company Financial Performance
Revenues of $19.6 billion increased 7% year-over-year and 8% on an Organic* basis with growth across all segments and regions.
Total company book-to-bill was 1.03 times, as orders dollars outpaced revenues. Total company orders increased 3% organically year-over-year.
Net income attributable to GE HealthCare was $1.6 billion versus $1.9 billion for the prior year, and Adjusted EBIT* was $3.0 billion versus $2.9 billion in the same period last year.
Net income margin was 8% versus 10.4% for the prior year, down 240 bps, primarily impacted by standalone interest expense. Adjusted EBIT margin* was 15.1% versus 15.6% last year, down 50 bps. Adjusted EBIT margin* for the full year 2023 was up 60 bps versus the Company’s estimated full year 2022 Standalone Adjusted EBIT margin* of 14.5% last year. Margin benefited from productivity, price, and volume, and was partially offset by inflation.
EPS from continuing operations was $3.04 compared to $4.18 for full year 2022, down $1.14 from the prior year. Adjusted EPS* was $3.93, versus $4.63 in prior year. Both comparisons were impacted by standalone interest expense. Adjusted EPS* for the full year 2023 grew $0.55 versus the Company’s estimated full year 2022 Standalone Adjusted EPS* of $3.38.
Cash flow from operating activities was $2.1 billion, down $33 million year-over-year, and Free cash flow* was $1.7 billion, down $113 million year-over-year, due to standalone interest and postretirement benefit payments.
Cash flow conversion, defined as cash from operating activities divided by net income attributable to GE HealthCare, was 134% while Free cash flow conversion* was 95% for 2023.

Growth and Innovation
GE HealthCare Announces Agreement to Acquire MIM Software
GE HealthCare Unveils SIGNA Champion, a 1.5T Wide Bore MRI System Powered by Artificial Intelligence (AI) for High Performance and Patient Comfort
GE HealthCare Participates in Project to Pioneer AI-Screening Platform for Early Detection of Alzheimer’s Disease

* Non-GAAP financial measure.     
2


GE HealthCare Announces New Version of Digital Expert Access, the First FDA 510(k)-Cleared Device to Enable Remote Patient Scanning, and Exclusive Distribution Agreement with IONIC Health
University of Wisconsin–Madison and GE HealthCare Broaden Shared Commitment to Healthcare Innovation
Expanding the Reach of Care for Cancer and Other Disease States: BAMF Health and GE HealthCare collaborate to enable sustainable and scalable solutions for growth in Theranostics
GE HealthCare Announces New Data Validating AI Models for Predicting Patient Response to Immunotherapies
GE HealthCare Tops List with Highest Number of AI-Enabled Medical Device Authorizations, Developing Innovative Solutions for Precision Care

2024 Guidance
Full year 2024 guidance is as follows:
Organic revenue growth* of approximately 4% year-over-year.
Adjusted EBIT margin* in the range of 15.6% to 15.9%, reflecting an expansion of 50 to 80 basis points versus 2023 Adjusted EBIT margin* of 15.1%.
Adjusted effective tax rate (ETR)* in the range of 23% to 25%.
Adjusted EPS* in the range of $4.20 to $4.35, representing 7% to 11% growth versus Adjusted EPS* of $3.93 for 2023.
Free cash flow* of approximately $1.8 billion.

The Company provides its outlook on a non-GAAP basis. Refer to the Non-GAAP Financial Measures in Outlook section below for more details.



* Non-GAAP financial measure.     
3


Consolidated and Combined Statements of Income
For the years ended December 31
(In millions, except per share amounts)202320222021
Sales of products$13,127 $12,044 $11,165 
Sales of services6,425 6,297 6,420 
Total revenues19,552 18,341 17,585 
Cost of products8,465 7,975 7,196 
Cost of services3,165 3,187 3,215 
Gross profit7,922 7,179 7,174 
Selling, general, and administrative4,282 3,631 3,563 
Research and development1,205 1,026 816 
Total operating expenses5,487 4,657 4,379 
Operating income
2,435 2,522 2,795 
Interest and other financial charges – net542 77 40 
Non-operating benefit (income) costs(382)(5)
Other (income) expense – net(86)(62)(123)
Income from continuing operations before income taxes2,361 2,512 2,875 
Benefit (provision) for income taxes(743)(563)(600)
Net income from continuing operations1,618 1,949 2,275 
Income (loss) from discontinued operations, net of taxes
(4)18 18 
Net income1,614 1,967 2,293 
Net (income) loss attributable to noncontrolling interests
(46)(51)(46)
Net income attributable to GE HealthCare1,568 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 
Diluted3.04 4.18 4.91 
Earnings per share attributable to GE HealthCare common stockholders:
Basic$3.05 $4.22 $4.95 
Diluted3.03 4.22 4.95 
Weighted-average number of shares outstanding:
Basic455454454
Diluted458454454








4


Consolidated and Combined Statements of Financial Position
As of
(In millions, except share and per share amounts)December 31, 2023December 31, 2022
Cash, cash equivalents, and restricted cash$2,504 $1,445 
Receivables – net of allowances of $98 and $913,525 3,295 
Due from related parties32 17 
Inventories1,960 2,155 
Contract and other deferred assets1,000 989 
All other current assets389 417 
Current assets9,410 8,318 
Property, plant, and equipment – net2,500 2,314 
Goodwill12,936 12,813 
Other intangible assets – net1,253 1,520 
Deferred income taxes4,474 1,550 
All other assets1,881 1,024 
Total assets$32,454 $27,539 
Short-term borrowings$1,006 $15 
Accounts payable2,947 2,944 
Due to related parties99 146 
Contract liabilities1,918 1,896 
All other current liabilities3,011 2,190 
Current liabilities8,981 7,191 
Long-term borrowings8,436 8,234 
Compensation and benefits5,782 549 
Deferred income taxes68 370 
All other liabilities1,877 1,603 
Total liabilities25,144 17,947 
Commitments and contingencies
Redeemable noncontrolling interests165 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— 
Additional paid-in capital6,493 — 
Retained earnings1,326 — 
Net parent investment— 11,235 
Accumulated other comprehensive income (loss) – net(691)(1,878)
Total equity attributable to GE HealthCare7,133 9,357 
Noncontrolling interests12 
Total equity7,145 9,362 
Total liabilities, redeemable noncontrolling interests, and equity$32,454 $27,539 







5


Consolidated and Combined Statements of Cash Flows
For the years ended December 31
(In millions) 202320222021
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 equipment248 228 225 
Amortization of intangible assets362 405 400 
Gain on fair value remeasurement of contingent consideration(17)(65)— 
Net periodic postretirement benefit plan (income) expense(332)25 
Postretirement plan contributions(357)(18)(20)
Share-based compensation114 67 76 
Provision for income taxes743 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 parties13 157 
Inventories111 (402)(435)
Contract and other deferred assets10 (222)23 
Accounts payable(13)481 263 
Due to related parties(84)(33)(21)
Contract liabilities26 138 (21)
All other operating activities327 103 11 
Cash from (used for) operating activities – continuing operations2,101 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 equipment15 
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)(7)
Newly issued debt, net of debt issuance costs (maturities longer than 90 days)2,006 8,198 
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 cash1,055 890 (451)
Cash, cash equivalents, and restricted cash at beginning of year1,451 561 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 

6


Non-GAAP Financial Measures
The non-GAAP financial measures presented in this press release are supplemental measures of GE HealthCare’s performance and its liquidity that the Company believes will help investors understand its financial condition, cash flows, and operating results and assess its future prospects. The Company believes that presenting these non-GAAP financial measures, in addition to the corresponding U.S. GAAP financial measures, are important supplemental measures that exclude non-cash or other items that may not be indicative of or related to its core operating results and the overall health of the Company. The Company believes these non-GAAP financial measures provide investors greater transparency to the information used by management for its operational decision-making and allow investors to see results “through the eyes of management.” The Company believes that providing this information assists investors in understanding its operating performance and the methodology used by management to evaluate and measure such performance. When read in conjunction with the Company’s U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in the Company’s underlying businesses and can be used by management as one basis for making financial, operational, and planning decisions. Finally, these measures are often used by analysts and other interested parties to evaluate companies in the Company’s industry.
Management recognizes that these non-GAAP financial measures have limitations, including that they may be calculated differently by other companies or may be used under different circumstances or for different purposes, thereby affecting their comparability from company to company. In order to compensate for these and the other limitations, management does not consider these measures in isolation from or as alternatives to the comparable financial measures determined in accordance with U.S. GAAP. Readers should review the reconciliations and should not rely on any single financial measure to evaluate the Company’s business.

The Company defines these non-GAAP financial measures as:
Organic revenue: Total revenues excluding the effects of: (1) net sales from recent acquisitions and dispositions with less than a full year of comparable net sales; and (2) foreign currency exchange rate fluctuations in order to present revenue on a constant currency basis.
Organic revenue growth rate: Rate of change when comparing Organic revenue, period over period.
Adjusted EBIT: Net income attributable to GE HealthCare excluding the effects of: (1) Interest and other financial charges – net; (2) Non-operating benefit (income) costs; (3) Provision (benefit) for income taxes; (4) Income (loss) from discontinued operations, net of taxes; (5) Net (income) loss attributable to noncontrolling interests; (6) restructuring costs; (7) acquisition and disposition-related charges (benefits); (8) Spin-Off and separation costs; (9) (gain) loss on business and asset dispositions; (10) amortization of acquisition-related intangible assets; and (11) investment revaluation (gain) loss. In addition, the Company may from time to time consider excluding other nonrecurring items to enhance comparability between periods.
Adjusted EBIT margin: Adjusted EBIT divided by Total revenues for the same period.
Standalone Adjusted EBIT: Adjusted EBIT including the effects of recurring and on-going costs to operate new functions required for a standalone company that management believes provide a better depiction of the operations of GE HealthCare as a standalone company.
Standalone Adjusted EBIT margin: Standalone Adjusted EBIT divided by Total revenues for the same period.

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

7


The Company believes Adjusted EBIT, Adjusted EBIT margin, Standalone Adjusted EBIT, and Standalone Adjusted EBIT margin provide management and investors with additional understanding of its business by highlighting the results from ongoing operations and the underlying profitability factors. These metrics exclude interest expense, interest income, non-operating benefit (income) costs, and tax expense, as well as non-recurring and/or non-cash items, which may have a material impact on the Companys results. The Company believes this provides additional insight into how its businesses are performing, on a normalized basis. However, these non-GAAP financial measures should not be construed as inferring that the Companys future results will be unaffected by the items for which the measure adjusts.

Adjusted net income: Net income attributable to GE HealthCare excluding (1) Non-operating benefit (income) costs; (2) restructuring costs; (3) acquisition and disposition-related charges (benefits); (4) Spin-Off and separation costs; (5) (gain) loss on business and asset dispositions; (6) amortization of acquisition-related intangible assets; (7) investment revaluation (gain) loss; (8) tax effect of reconciling items (items 1-7); (9) certain tax adjustments as described in Adjusted tax expense definition below and (10) Income (loss) from discontinued operations, net of taxes. In addition, the Company may from time to time consider disclosing other nonrecurring items to enhance comparability between periods.
Adjusted EPS: Diluted earnings per share from continuing operations excluding the per share impact of: (1) deemed preferred stock dividend of redeemable noncontrolling interest, (2) Non-operating benefit (income) costs; (3) restructuring costs; (4) acquisition and disposition-related charges (benefits); (5) Spin-Off and separation costs; (6) (gain) loss on business and asset dispositions; (7) amortization of acquisition-related intangible assets; (8) investment revaluation (gain) loss; (9) tax effect of reconciling items (items 1-8); and (10) certain tax adjustments as described in Adjusted tax expense definition below. In addition, the Company may from time to time consider disclosing other nonrecurring items to enhance comparability between periods.
Standalone Adjusted EPS: Adjusted EPS including the per share impact of the effects of recurring and on-going costs to operate new functions required for a standalone company and interest expense associated with third party debt that management believes provide a better depiction of the operations of GE HealthCare as a standalone company.

The Company believes Adjusted net income, Adjusted EPS, and Standalone Adjusted EPS provide investors with improved comparability of underlying operating results and a further understanding and additional transparency regarding how it evaluates the business. These non-GAAP financial measures also provide management and investors with additional perspective regarding the impact of certain significant items on the Company’s consolidated and combined earnings. However, they should not be construed as inferring that the Companys future results will be unaffected by the items for which the measure adjusts.

Adjusted tax expense and Adjusted ETR: Adjusted tax expense is Income tax expense less the income tax related to pre-tax income adjustments above and certain income tax adjustments. Examples of certain income tax adjustments include the accrual of a deferred tax liability on the prior period earnings of certain of the Company’s foreign subsidiaries for which the Company is no longer permanently reinvested. Adjusted ETR is Adjusted tax expense divided by Income before income taxes less pre-tax income adjustments above. Adjusted tax expense and Adjusted ETR can be used by investors to review the income tax expense and effective tax rate for the Company’s operations on a consistent basis.
Free cash flow: Cash from (used for) operating activities - continuing operations adjusting for the effects of (1) additions to property, plant and equipment (PP&E) and internal-use software; (2) dispositions of PP&E; and (3) impact of factoring programs.
Free cash flow conversion: Free cash flow divided by Adjusted net income.

8


The Company believes that Free cash flow and Free cash flow conversion provide management and investors with important measures of the Company’s ability to generate cash on a normalized basis. These metrics also provide insight into the Companys flexibility to allocate capital, including reinvesting in the Company for future growth, paying down debt, paying dividends, and pursuing other opportunities that may enhance stockholder value. The Company believes investors may find it useful to compare Free cash flow performance without the effects of the factoring program discontinuation. However, they should not be construed as inferring that the Company’s future results will be unaffected by the items for which the measure adjusts.

Organic Revenue*
Unaudited
For the three months ended December 31For the years ended December 31
($ In millions)20232022% change20232022% change
Imaging revenues    $2,830$2,7094%$10,581$9,9856%
Less: Acquisitions(1)    11
Less: Dispositions(2)    
Less: Foreign currency exchange15(144)
Imaging Organic revenue*$2,814$2,7094%$10,724$9,9857%
Ultrasound revenues    $944$956(1)%$3,457$3,4221%
Less: Acquisitions(1)    
Less: Dispositions(2)    
Less: Foreign currency exchange11(43)
Ultrasound Organic revenue*    $933$956(2)%$3,500$3,4222%
PCS revenues    $827$7865%$3,142$2,9168%
Less: Acquisitions(1)    
Less: Dispositions(2)    
Less: Foreign currency exchange6(16)
PCS Organic revenue*    $821$7864%$3,158$2,9168%
PDx revenues    $591$47325%$2,306$1,95818%
Less: Acquisitions(1)    
Less: Dispositions(2)    
Less: Foreign currency exchange9(14)
PDx Organic revenue*    $582$47323%$2,320$1,95818%
Other revenues    $14$14—%$66$6010%
Less: Acquisitions(1)    
Less: Dispositions(2)    
Less: Foreign currency exchange11
Other Organic revenue*    $13$14(7)%$65$608%
Total revenues    $5,206$4,9385%$19,552$18,3417%
Less: Acquisitions(1)    11
Less: Dispositions(2)    
Less: Foreign currency exchange42(216)
Organic revenue*    $5,163$4,9385%$19,767$18,3418%
(1)
Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction.
(2)
Represents revenues attributable to dispositions for the four quarters preceding the disposition date.


* Non-GAAP financial measure.
9


Unaudited Net Income to Adjusted EBIT* and Standalone Adjusted EBIT* (estimated)
For the three months ended December 31For the years ended December 31
($ In millions)20232022% change20232022% change
Net income attributable to GE HealthCare    $403 $554 (27)%$1,568 $1,916 (18)%
Add: Interest and other financial charges – net    131 59 542 77 
Add: Non-operating benefit (income) costs    (50)(1)(382)(5)
Less: Benefit (provision) for income taxes    (193)(151)(743)(563)
Less: Income (loss) from discontinued operations, net of taxes— (4)18 
Less: Net (income) loss attributable to noncontrolling interests     (13)(19)(46)(51)
EBIT*    $690 $776 (11)%$2,521 $2,584 (2)%
Add: Restructuring costs(1)    20 36 54 146 
Add: Acquisition and disposition-related charges (benefits)(2)    — (14)(15)(34)
Add: Spin-Off and separation costs(3)    95 270 14 
Add: (Gain) loss on business and asset dispositions(4)    — — — (1)
Add: Amortization of acquisition-related intangible assets    32 31 127 121 
Add: Investment revaluation (gain) loss(5)    — (1)31 
Adjusted EBIT*    $837 $844 (1)%$2,956 $2,861 3 %
Less: Estimated standalone costs(6)— 50 — 200 
Less: Estimated incremental interest expense(7)— — — — 
Less: Estimated tax effect of reconciling items(8)— — — — 
Standalone Adjusted EBIT* (estimate)$837 $794 5 %$2,956 $2,661 11 %
Net income margin7.7 %11.2 %(350) bps8.0 %10.4 %(240) bps
Adjusted EBIT margin*16.1 %17.1 %(100) bps15.1 %15.6 %(50) bps
Standalone Adjusted EBIT margin* (estimate)16.1 %16.1 %0 bps15.1 %14.5 %60 bps
(1)
Consists of severance, facility closures, and other charges associated with restructuring programs.
(2)
Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.
(3)
Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs.
(4)
Consists of gains and losses resulting from the sale of assets and investments.
(5)
Primarily relates to valuation adjustments for equity investments.
(6)Estimated 4Q’22 quarter to date and FY’22 expense of recurring and ongoing costs required to operate new functions required for a public company such as external reporting, internal audit, treasury, investor relations, board of directors and officers, stock administration, and expanding the services of existing functions such as information technology, finance, supply chain, human resources, legal, tax, facilities, branding, security, government relations, community outreach, and insurance.
(7)
Estimated 4Q’22 quarter to date and FY’22 additional interest expense related to the GE HealthCare debt issuances on November 22nd, 2022 and the draw down of the term loan on January 3rd, 2023, the amortization of original issue discount and deferred, debt issuance costs, and certain Euro to U.S. Dollar cross currency interest rate swap arrangements with a notional amount of $2.0 billion. Interest expense was calculated assuming constant debt levels throughout the periods.
(8)
Estimated 4Q’22 quarter to date and FY’22 tax effect was determined by applying the respective statutory tax rates to the pre-tax adjustments, as appropriate, in jurisdictions where valuation allowances were not required. The applicable tax rates could be impacted (either higher or lower) depending on many factors including, but not limited to, the profitability in local jurisdictions and may be different from the estimate.
* Non-GAAP financial measure.
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Unaudited Net Income to Adjusted Net Income* and Standalone Adjusted Net Income* (estimated)
For the three months ended December 31For the years ended December 31
($ In millions)20232022% change20232022% change
Net income attributable to GE HealthCare    $403 $554 (27)%$1,568 $1,916 (18)%
Add: Non-operating benefit (income) costs    (50)(1)(382)(5)
Add: Restructuring costs(1)    20 36 54 146 
Add: Acquisition and disposition-related charges (benefits)(2)    — (14)(15)(34)
Add: Spin-Off and separation costs(3)    95 270 14 
Add: (Gain) loss on business and asset dispositions(4)    — — — (1)
Add: Amortization of acquisition-related intangible assets    32 31 127 121 
Add: Investment revaluation (gain) loss(5)    — (1)31 
Add: Tax effect of reconciling items(11)(19)92 (67)
Add: Certain tax adjustments(6)    50 — 80 — 
Less: Income (loss) from discontinued operations, net of taxes— (4)18 
Adjusted net income*    $539 $596 (10)%$1,797 $2,103 (15)%
Less: Estimated standalone costs(7)— 50 — 200 
Less: Estimated incremental interest expense(8)— 100 — 541 
Less: Estimated tax effect of reconciling items(9)— (35)— (171)
Standalone Adjusted net income* (estimate)$539 $481 12 %$1,797 $1,533 17 %
Adjusted net income margin*10.4 %12.1 %(170) bps9.2 %11.5 %(230) bps
Standalone Adjusted net income margin* (estimate)10.4 %9.7 %70 bps9.2 %8.4 %80 bps
(1)
Consists of severance, facility closures, and other charges associated with restructuring programs.
(2)
Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.
(3)
Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs.
(4)
Consists of gains and losses resulting from the sale of assets and investments.
(5)
Primarily relates to valuation adjustments for equity investments.
(6)
Consists of certain income tax adjustments, including the accrual of a deferred tax liability on the prior period earnings of certain of the Company’s foreign subsidiaries for which the Company is no longer permanently reinvested and the impact of adjusting deferred tax assets and liabilities to standalone GE HealthCare tax rates.
(7)
Estimated 4Q’22 quarter to date and FY’22 expense of recurring and ongoing costs required to operate new functions required for a public company such as external reporting, internal audit, treasury, investor relations, board of directors and officers, stock administration, and expanding the services of existing functions such as information technology, finance, supply chain, human resources, legal, tax, facilities, branding, security, government relations, community outreach, and insurance.
(8)
Estimated 4Q’22 quarter to date and FY’22 additional interest expense related to the GE HealthCare debt issuances on November 22nd, 2022 and the draw down of the term loan on January 3rd, 2023, the amortization of original issue discount and deferred, debt issuance costs, and certain Euro to U.S. Dollar cross currency interest rate swap arrangements with a notional amount of $2.0 billion. Interest expense was calculated assuming constant debt levels throughout the periods.
(9)
Estimated 4Q’22 quarter to date and FY’22 tax effect was determined by applying the respective statutory tax rates to the pre-tax adjustments, as appropriate, in jurisdictions where valuation allowances were not required. The applicable tax rates could be impacted (either higher or lower) depending on many factors including, but not limited to, the profitability in local jurisdictions and may be different from the estimate.



* Non-GAAP financial measure.
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Unaudited Diluted Continuing Earnings Per Share to Adjusted Earnings Per Share* and Standalone Adjusted Earnings Per Share* (estimated)
For the three months ended December 31For the years ended December 31
(In dollars, except shares outstanding presented in millions)20232022$ change20232022$ change
Diluted earnings per share – continuing operations$0.88 $1.21 $(0.33)$3.04 $4.18 $(1.14)
Add: Deemed preferred stock dividend of redeemable noncontrolling interest0.40
Add: Non-operating benefit (income) costs    (0.11)(0.00)(0.83)(0.01)
Add: Restructuring costs(1)    0.040.080.120.32
Add: Acquisition and disposition-related charges (benefits)(2)    (0.03)(0.03)(0.07)
Add: Spin-Off and separation costs(3)    0.210.020.590.03
Add: (Gain) loss on business and asset dispositions(4)    (0.00)
Add: Amortization of acquisition-related intangible assets    0.070.070.280.27
Add: Investment revaluation (gain) loss(5)    0.02(0.00)0.07
Add: Tax effect of reconciling items(0.02)(0.04)0.20(0.15)
Add: Certain tax adjustments(6)    0.110.17
Adjusted earnings per share*(7)$1.18 $1.31 $(0.13)$3.93 $4.63 $(0.70)
Less: Estimated standalone costs(8)0.110.44
Less: Estimated incremental interest expense(9)0.221.19
Less: Estimated tax effect of reconciling items(10)(0.08)(0.38)
Standalone Adjusted earnings per share* (estimate)(7)$1.18 $1.06 $0.12 $3.93 $3.38 $0.55 
Diluted weighted-average shares outstanding458 454 458 454 
(1)
Consists of severance, facility closures, and other charges associated with restructuring programs.
(2)
Consists of legal, consulting, and other transaction and integration fees, and adjustments to contingent consideration, as well as other purchase accounting related charges and other costs directly related to the transactions.
(3)
Costs incurred in the Spin-Off and separation from GE, including system implementations, audit and advisory fees, legal entity separation, Founders Grant equity awards, separation agreements with GE, and other one-time costs.
(4)
Consists of gains and losses resulting from the sale of assets and investments.
(5)
Primarily relates to valuation adjustments for equity investments.
(6)
Consists of certain income tax adjustments, including the accrual of a deferred tax liability on the prior period earnings of certain of the Company’s foreign subsidiaries for which the Company is no longer permanently reinvested and the impact of adjusting deferred tax assets and liabilities to standalone GE HealthCare tax rates.
(7)Adjusted earnings per share* and estimated Standalone Adjusted earnings per share* amounts are computed independently, thus, the sum of per-share amounts may not equal the total.
(8)
Estimated 4Q’22 quarter to date and FY’22 expense of recurring and ongoing costs required to operate new functions required for a public company such as external reporting, internal audit, treasury, investor relations, board of directors and officers, stock administration, and expanding the services of existing functions such as information technology, finance, supply chain, human resources, legal, tax, facilities, branding, security, government relations, community outreach, and insurance.
(9)
Estimated 4Q’22 quarter to date and FY’22 additional interest expense related to the GE HealthCare debt issuances on November 22nd, 2022 and the draw down of the term loan on January 3rd, 2023, the amortization of original issue discount and deferred, debt issuance costs, and certain Euro to U.S. Dollar cross currency interest rate swap arrangements with a notional amount of $2.0 billion. Interest expense was calculated assuming constant debt levels throughout the periods.
(10)
Estimated 4Q’22 quarter to date and FY’22 tax effect was determined by applying the respective statutory tax rates to the pre-tax adjustments, as appropriate, in jurisdictions where valuation allowances were not required. The applicable tax rates could be impacted (either higher or lower) depending on many factors including, but not limited to, the profitability in local jurisdictions and may be different from the estimate.

* Non-GAAP financial measure.
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Free Cash Flow*
Unaudited
For the three months ended December 31For the years ended December 31
($ In millions)20232022% change20232022% change
Cash from (used for) operating activities – continuing operations    $1,050$1,063(1)%$2,101$2,134(2)%
Cash flow conversion134%111%
23 pts
Add: Additions to PP&E and internal-use software(94)(77)(387)(310)
Add: Dispositions of PP&E114
Free cash flow*    $956 $987(3)%$1,715 $1,828(6)%
Free cash flow conversion*
95%87%8 pts
Non-GAAP Financial Measures in Outlook
GE HealthCare calculates forward-looking non-GAAP financial measures, including Organic revenue growth, Adjusted EBIT margin, Adjusted ETR, Adjusted EPS, and Free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. GE HealthCare does not provide reconciliations of these forward-looking non-GAAP financial measures to the respective GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort certain items such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or dispositions, timing and magnitude of restructuring activities, and revaluation of strategic investments, amongst other items. The timing and amounts of these items are uncertain and could have a substantial impact on GE HealthCare’s results in accordance with GAAP.

Key Performance Indicators
Management uses the following metrics to provide a leading indicator of current business demand from customers for products and services.
Organic orders growth: Rate of change period-over-period of contractual commitments with customers to provide specified goods or services for an agreed upon price, and excluding the effects of: (1) recent acquisitions and dispositions with less than a full year of comparable orders; and (2) foreign currency exchange rate fluctuations in order to present orders on a constant currency basis.
Book-to-bill: Total orders divided by Total revenues within a given financial period (e.g., quarter or FY).

Conference Call and Webcast Information
GE HealthCare will discuss its results during its investor conference call today, February 6, 2024 at 8:30am ET. The conference call will be broadcast live via webcast, and the webcast and accompanying slide presentation containing financial information can be accessed by visiting the investor section of the website at https://investor.gehealthcare.com/news-events/events. An archived version of the webcast will be available on the website after the call.
* Non-GAAP financial measure.
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Forward-looking Statements
This release contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “potential,” “position,” “forecast,” “target,” “guidance,” “outlook,” and similar expressions. These forward-looking statements may include, but are not limited to, statements about the Company’s expected financial performance, including revenue, revenue growth, profit, taxes, earnings per share, and cash flows, and the Company’s outlook; and the Company’s strategy, innovation, and investments. These forward-looking statements involve risks and uncertainties, many of which are beyond the Company’s control. Factors that could cause the Company’s actual results to differ materially from those described in its forward-looking statements include, but are not limited to, operating in highly competitive markets; the Company’s ability to successfully complete strategic transactions; the actions or inactions of third parties with whom the Company partners and the various collaboration, licensing, and other partnerships and alliances the Company has with third parties; demand for the Company’s products, services, or solutions and factors that affect that demand; management of the Company’s supply chain and the Company’s ability to cost-effectively secure the materials it needs to operate its business; disruptions in the Company’s operations; changes in third-party and government reimbursement processes, rates, contractual relationships, and mix of public and private payers, including related to government shutdowns; the Company’s ability to attract and/or retain key personnel and qualified employees; global geopolitical and economic instability, including as a result of the conflict between Ukraine and Russia, the conflict in Israel and surrounding areas, and the actions in the Red Sea region; public health crises, epidemics, and pandemics, such as the Coronavirus Disease 2019 (“COVID-19”) and their effects on the Company’s business; maintenance and protection of the Company’s intellectual property rights, as well as maintenance of successful research and development efforts with respect to commercially successful products and technologies; the impact of potential information technology, cybersecurity or data security breaches; compliance with the various legal, regulatory, tax, privacy, and other laws to which the Company is subject, such as the Foreign Corrupt Practices Act and similar anti-corruption and anti-bribery laws globally, and related changes, claims, inquiries, investigations, or actions; the Company’s ability to control increases in healthcare costs and any subsequent effect on demand for the Company’s products, services, or solutions; the impacts related to the Company’s increasing focus on and investment in cloud, edge, artificial intelligence, and software offerings; the impact of potential product liability claims; environmental, social, and governance matters; the Company’s ability to operate effectively as an independent, publicly-traded company; and the Company’s level of indebtedness, as well as its general ability to comply with covenants under its debt instruments and any related effect on the Company’s business. Please also see the “Risk Factors” section of the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission and any updates or amendments it makes in future filings. There may be other factors not presently known to the Company or which it currently considers to be immaterial that could cause the Company’s actual results to differ materially from those projected in any forward-looking statements the Company makes. The Company does not undertake any obligation to update or revise its forward-looking statements except as required by applicable law or regulation.

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About GE HealthCare Technologies Inc.
GE HealthCare is a leading global medical technology, pharmaceutical diagnostics, and digital solutions innovator, dedicated to providing integrated solutions, services, and data analytics to make hospitals more efficient, clinicians more effective, therapies more precise, and patients healthier and happier. Serving patients and providers for more than 100 years, GE HealthCare is advancing personalized, connected, and compassionate care, while simplifying the patient’s journey across the care pathway. Together our Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics businesses help improve patient care from diagnosis, to therapy, to monitoring. We are a $19.6 billion business with 51,000 colleagues working to create a world where healthcare has no limits.
Follow us on LinkedIn, Twitter, and Insights for the latest news, or visit our website gehealthcare.com for more information.

Investor Relations Contact:
Carolynne Borders
+1-631-662-4317
carolynne.borders@gehealthcare.com

Media Contact:
Tor Constantino
+1-585-441-1658
tor.constantino@gehealthcare.com
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