Company: GEHC
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001932393-25-000053
Chunk: 18

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 1
Chunk 18
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 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 ofSeptember 30, 2025December 31, 2024Contract assets$708 $589 Other deferred assets417 385 Contract and other deferred assets1,125 974 Non-current contract assets(1)91 103 Non-current other deferred assets(1)113 105 Total contract and other deferred assets$1,329 $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 ofSeptember 30, 2025December 31, 2024Contract liabilities $2,002$1,943Non-current contract liabilities(1)775686Total contract liabilities $2,777$2,629(1)Non-current contract liabilities are recognized within All other non-current liabilities in the Condensed Consolidated Statements of Financial Position.Revenue recognized related to the contract liabilities balance at the beginning of the year was approximately $1,385 million and $1,381 million for the nine months ended September 30, 2025 and 2024, respectively.REMAINING PERFORMANCE OBLIGATIONS.Remaining performance obligations (“RPO”) represents 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 right to cancel or terminate without incurring a substantive penalty. RPO also excludes estimated revenue from arrangements where we lease equipment manufactured by the Company to customers.

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As ofSeptember 30, 2025December 31, 2024Products$4,899$4,755Services    10,1979,737Total RPO    $15,096$14,491We expect to recognize substantially all of the revenue for our product-related RPO within two years and services-related R