Company: GEHC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001932393-25-000014
Chunk: 96

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 1
Chunk 96
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 from GE previously reported under Tax effect of reconciling items.

Adjusted Tax Expense* and Adjusted ETR*For the three months ended March 3120252024Benefit (provision) for income taxes$(104)$(124)Add: Tax effect of reconciling items(1)—(14)Add: Spin-Off and other tax adjustments(2)    (17)5Adjusted tax expense*$(121)$(133)Effective tax rate15.0%24.2%Adjusted effective tax rate*20.1%23.7%

(1)The tax effect of reconciling items is calculated using the statutory tax rate, taking into consideration the nature of the items and the relevant taxing jurisdiction.(2)Consists of certain income tax adjustments, including the release of income tax reserves in a foreign jurisdiction for tax years which are no longer subject to an assessment from the local taxing authorities, discrete tax impacts resulting from the Spin-Off and separation from GE, and tax impacts of the NMP acquisition. As of the third quarter of 2024 this line additionally includes discrete tax impacts resulting from the Spin-Off and separation from GE previously reported under Tax effect of reconciling items.

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*Non-GAAP Financial Measure

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Free Cash Flow*For the three months ended March 3120252024 % changeCash from (used for) operating activities$250$419(40)%Add: Additions to PP&E and internal-use software    (152)(145)Add: Dispositions of PP&E    ——Free cash flow*    $98$274(64)%

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2025, our Cash, cash equivalents, and restricted cash balance in the Condensed Consolidated Statements of Financial Position was $2,473 million. We have historically generated positive cash flows from operating activities. Additionally, we have access to revolving credit facilities of $3,500 million in aggregate, described in detail in Note 8, “Borrowings.”

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

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

Cash FlowFor the