Company: GEHC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001932393-25-000014
Chunk: 16

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 16
---
 adjustment.

18

Table of Contents                 

Cash flows for the periodic interest settlements on the interest rate swaps are recorded in All other operating activities – net in the Condensed Consolidated Statements of Cash Flows.Derivatives Not Designated as Hedging InstrumentsWe also execute derivative instruments, such as foreign currency forward contracts and equity-linked total return swaps, which are not designated as qualifying hedges. These derivatives serve as economic hedges of foreign currency exchange rate and equity price risks. We also identify and record foreign currency-related features in our purchase or sales contracts where the currency is not the local or functional currency of any substantive party to the contract 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, Selling, general, and administrative (“SG&A”), and Other (income) expense – net in the Condensed Consolidated 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 Condensed Consolidated Statements of Income.The cash flows associated with derivatives not designated but used as economic hedges are recorded, based on the nature of the underlying hedged transaction, in All other operating activities – net and All other investing activities – net in the Condensed Consolidated Statements of Cash Flows. The cash flows related to embedded derivatives are included in All other operating activities – net in the Condensed Consolidated Statements of Cash Flows.The following table presents the gross fair values of our outstanding derivative instruments.Fair Value of DerivativesMarch 31, 2025December 31, 2024Gross NotionalFair Value – AssetsFair Value – LiabilitiesGross NotionalFair Value – AssetsFair Value – LiabilitiesForeign currency forward contracts$1,474 $25 $15 $1,210 $43 $11 Derivatives accounted for as cash flow hedges1,474 25 15 1,210 43 11 Cross-currency swaps(1)2,075 12 97 1,995 15 46 Foreign currency forward and options contracts1,760 29 17 1,731 30 18 Derivatives accounted for as net investment hedges3,835 41 114 3,726 45 64 Interest rate swaps(1)2,700 17 14 2,700 — 51 Derivatives