Company: GEHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001932393-25-000049
Chunk: 17

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 1
Chunk 17
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U 2024-03”), Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 addresses investor requests for more transparency about expense information through the disaggregation of relevant expense captions in the notes to the financial statements. The provisions of ASU 2024-03 are effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. We expect the adoption to impact disclosures in our notes to the financial statements.

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NOTE 2. REVENUE RECOGNITION

Our revenues primarily consist of sales of products and services to customers. Products include equipment, imaging agents, software-related offerings, and upgrades. Services include contractual and stand-by preventative maintenance and corrective services, as well as related parts and labor, extended warranties, training, and other service-type offerings. The Company recognizes revenue from contracts with customers when the customer obtains control of the underlying products or services.CONTRACT AND OTHER DEFERRED ASSETS.Contract assets 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.As ofJune 30, 2025December 31, 2024Contract assets$669 $589 Other deferred assets393 385 Contract and other deferred assets1,062 974 Non-current contract assets(1)92 103 Non-current other deferred assets(1)115 105 Total contract and other deferred assets$1,269 $1,183 (1)Non-current contract and other deferred assets are recognized within All other non-current assets in the Condensed Consolidated Statements of Financial Position.CONTRACT LIABILITIES.Contract liabilities 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 these remaining performance obligations are expected to be satisfied with our customers.As ofJune 30, 2025December 31, 2024Contract liabilities $1,979$1,943Non-current contract liabilities(1)741686Total contract liabilities $2,