RESTRUCTURING AND OTHER ACTIVITIES - NET

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND OTHER ACTIVITIES - NET

RESTRUCTURING AND OTHER ACTIVITIES – NET

Restructuring activities are essential to optimize the business operating model for GE HealthCare as a stand-alone company and mostly involve workforce reductions, organizational realignments, and revisions to our real estate footprint. Specifically, restructuring and other charges (gains) primarily include facility exit costs, employee-related termination benefits associated with workforce reductions, asset write-downs, and cease-use costs. For segment reporting, restructuring and other activities are not allocated.

As a result of committed restructuring initiatives, we recorded net expenses of $3 million and $88 million for the three months ended September 30, 2023 and 2022 and $34 million and $110 million for the nine months ended September 30, 2023 and 2022. These restructuring initiatives are expected to result in additional expenses of approximately $23 million, to be incurred primarily over the next 12 months, substantially related to employee-related termination benefits and facility exit costs. Restructuring expenses (gains) are recognized within Cost of products, Cost of services, or Selling, general, and administrative ("SG&A"), as appropriate, in the Condensed Consolidated and Combined Statements of Income.

Restructuring and Other Activities
	For the three months ended September 30				For the nine months ended September 30
	2023		2022		2023		2022
Employee termination costs	$	1	$	28	$	26	$	46
Facility and other exit costs	1		38		2		42
Asset write-downs	1		22		6		22
Total restructuring and other activities – net	$	3	$	88	$	34	$	110

In connection with the Spin-Off, GE transferred employee termination obligations for services already rendered of $31 million to GE HealthCare of which $5 million was remaining as of September 30, 2023. Liabilities related to restructuring are recognized within All other current liabilities and All other liabilities in the Condensed Consolidated and Combined Statements of Financial Position and totaled $70 million and $75 million as of September 30, 2023 and December 31, 2022, respectively.