Company: GEHC
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001932393-25-000005
Chunk: 189

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-02-13
Form: 10-K
Item: Item 7
Chunk 189
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Adjusted tax expense*$(590)$(571)$(630)Effective tax rate20.6%31.5%22.4%Adjusted effective tax rate*21.8%23.7%22.6%

(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 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, the impact of adjusting deferred tax assets and liabilities to stand-alone GE HealthCare tax rates, and the impact of tax legislation changes. 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

49

Free Cash Flow*For the years ended December 312024202320222024 vs. 2023 % change2023 vs. 2022 % changeCash from (used for) operating activities – continuing operations$1,955$2,101$2,134(7)%(2)%Add: Additions to PP&E and internal-use software    (401)(387)(310)Add: Dispositions of PP&E    —14Free cash flow*    $1,554$1,715$1,828(9)%(6)%

LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 2024, our Cash, cash equivalents, and restricted cash balance in the Consolidated Statements of Financial Position was $2,889 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 9, “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 years ended December 31202420232022Cash from (used for) operating activities – continuing operations$1,955 $