GE HealthCare Technologies Inc.

10/30/2024 | Press release | Distributed by Public on 10/30/2024 04:34

GE HealthCare Recast Unaudited Historical Financial Information Reflecting the Company’s New Reportable Segment Structure Form 8 K

GE HealthCare
Recast Unaudited Historical Financial Information Reflecting the Company's New Reportable Segment Structure

Effective July 1, 2024, Image Guided Therapies ("IGT"), previously part of the Imaging segment, was realigned to the Ultrasound segment to better match its clinical usage and realize stronger business and customer impact by providing the right image guidance in the right care setting. The Ultrasound segment was subsequently renamed Advanced Visualization Solutions ("AVS").

The AVS segment has a portfolio that serves customers across two core areas: Specialized Ultrasound and Procedural Guidance. Specialized Ultrasound includes Radiology, Primary Care, and Point of Care, and Women's Health Ultrasound. Procedural Guidance includes CardioVascular and Interventional Solutions, and Surgical Innovations.

•Radiology, Primary Care, and Point of Care Ultrasound includes systems that produce images to support precise screening, diagnosis, monitoring, and treatment across the whole body, including liver, thyroid, kidney, breast, vascular, and transcranial applications. These systems include point of care and handheld ultrasound devices to support clinical decision-making throughout various care pathways in diverse sites of care. Our systems combine high image quality with comprehensive clinical tools including measurement quantification, workflow automation, cross-modality networking, real-time and artificial intelligence-enabled scan guidance, and cloud-based technologies with versatility, accessibility, and portability required to deliver care.
•Women's Health Ultrasound is comprised of systems to support obstetrics, gynecology, and assisted reproductive medicine. These care areas require specially designed ultrasound products that account for patient comfort and workflow constraints to enable practitioners to provide higher-quality screening, exams, and procedural care, and give clinicians images with the clarity and definition they need to focus on early detection and intervention.
•CardioVascular and Interventional Solutions provides clinicians with tools to diagnose, treat, and monitor cardiovascular conditions with precision and confidence as well as technologies to help assist clinicians and surgeons during open surgeries and minimally invasive and interventional procedures. This includes ultrasound systems used to assess the structure and function of the heart, as well as real-time advanced X-ray imaging that integrates with ultrasound and other imaging and diagnostic systems. These technologies support planning, guiding, and assessing a variety of surgical procedures like cardiac interventions and those that involve insertion of devices like deep brain stimulators, spinal implants, and other neurological devices.
•Surgical Innovations products are used in the operating environment and include a broad portfolio of advanced mobile surgical C-arms that meet clinical needs for surgical imaging and are designed to be easily maneuverable in crowded operating rooms and adaptable for various surgical procedures. Surgical visualization and guidance technology expands the use of ultrasound beyond diagnostics to provide real-time information during surgical procedures to help guide interventions and navigate inside the human body.

Under the new structure, IGT is reported within the Procedural Guidance business in AVS. Outside of the IGT realignment described above, our Imaging, Patient Care Solutions ("PCS") and Pharmaceutical Diagnostics ("PDx") reportable segments operate as described in the "Business" section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Following this realignment, the Company continues to have four reportable segments: Imaging, AVS, PCS, and PDx. These segments have been identified based on the nature of the products sold and how the Company manages its operations. We have not aggregated any of our operating segments to form reportable segments.

Tables throughout this document are presented in millions of U.S. dollars unless otherwise stated and certain columns and rows may not sum due to the use of rounded numbers. Percentages presented are calculated from the underlying whole-dollar amounts.

The tables below reflect our unaudited historical financial results recast to conform to the new segment structure.

1

Total Revenues by Segment For the three months ended
Unaudited
March 31, 2024 June 30, 2024
Total Imaging $ 2,062 $ 2,171
AVS:
Procedural Guidance 651 668
Specialized Ultrasound 576 581
Total AVS 1,227 1,249
PCS:
Monitoring Solutions 527 538
Life Support Solutions 220 235
Total PCS 747 772
Total PDx 599 639
Other(1)
15 9
Total revenues $ 4,650 $ 4,839

For the three months ended For the year ended
Unaudited
March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 December 31, 2023
Total Imaging $ 2,088 $ 2,228 $ 2,236 $ 2,392 $ 8,944
AVS:
Procedural Guidance 662 635 641 727 2,666
Specialized Ultrasound 605 596 573 655 2,428
Total AVS 1,267 1,231 1,214 1,382 5,094
PCS:
Monitoring Solutions 552 563 573 595 2,283
Life Support Solutions 229 207 191 232 859
Total PCS 781 770 764 827 3,142
Total PDx 558 568 589 591 2,306
Other(1)
13 20 19 14 66
Total revenues $ 4,707 $ 4,817 $ 4,822 $ 5,206 $ 19,552

For the three months ended For the year ended
Unaudited
March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 December 31, 2022
Total Imaging $ 1,918 $ 2,064 $ 2,118 $ 2,295 $ 8,395
AVS:
Procedural Guidance 548 560 583 635 2,327
Specialized Ultrasound 660 653 638 735 2,685
Total AVS 1,208 1,213 1,221 1,370 5,012
PCS:
Monitoring Solutions
521 512 506 553 2,092
Life Support Solutions 195 201 195 233 824
Total PCS 716 713 701 786 2,916
Total PDx 484 478 522 473 1,958
Other(1)
17 16 14 14 60
Total revenues $ 4,343 $ 4,484 $ 4,576 $ 4,938 $ 18,341
(1) Financial information not presented within the reportable segments, shown within the Other category, represents HealthCare Financial Services ("HFS") which does not meet the definition of an operating segment.

2

Segment EBIT
For the three months ended
Unaudited
March 31, 2024 June 30, 2024
Segment EBIT
Imaging $ 166 $ 208
AVS 257 255
PCS 81 78
PDx 178 200
Other(1)
(1) 1
681 742
Restructuring costs (40) (29)
Acquisition and disposition-related benefits (charges)
- 3
Gain (loss) on business and asset dispositions
- -
Spin-Off and separation costs (60) (67)
Amortization of acquisition-related intangible assets (31) (35)
Investment revaluation gain (loss) (20) (6)
Interest and other financial charges - net (122) (131)
Non-operating benefit income (costs) 102 101
Income from continuing operations before income taxes
$ 512 $ 578
For the three months ended For the year ended
Unaudited
March 31, 2023
June 30, 2023
September 30, 2023 December 31, 2023 December 31, 2023
Segment EBIT
Imaging $ 116 $ 207 $ 243 $ 255 $ 821
AVS 282 262 254 326 1,124
PCS 109 84 80 110 383
PDx 155 152 166 144 617
Other(1)
2 6 1 2 11
664 711 744 837 2,956
Restructuring costs (12) (19) (3) (20) (54)
Acquisition and disposition-related benefits (charges)
(1) 2 14 - 15
Gain (loss) on business and asset dispositions
- - - - -
Spin-Off and separation costs (58) (72) (45) (95) (270)
Amortization of acquisition-related intangible assets (31) (32) (32) (32) (127)
Investment revaluation gain (loss) 5 (6) 2 - 1
Interest and other financial charges - net (136) (137) (138) (131) (542)
Non-operating benefit income (costs) 115 123 94 50 382
Income from continuing operations before income taxes
$ 546 $ 570 $ 636 $ 609 $ 2,361
(1) Financial information not presented within the reportable segments, shown within the Other category, primarily represents HFS which does not meet the definition of an operating segment.
3

Segment EBIT
For the three months ended For the year ended
Unaudited
March 31, 2022
June 30, 2022
September 30, 2022 December 31, 2022 December 31, 2022
Segment EBIT
Imaging $ 132 $ 222 $ 191 $ 235 $ 780
AVS 266 304 287 371 1,228
PCS 65 81 65 130 341
PDx 138 115 159 109 520
Other(1)
(2) (3) (2) (1) (8)
599 719 700 844 2,861
Restructuring costs (12) (10) (88) (36) (146)
Acquisition and disposition-related benefits (charges)
(15) (14) 49 14 34
Gain (loss) on business and asset dispositions
3 - (2) - 1
Spin-Off and separation costs - - (7) (7) (14)
Amortization of acquisition-related intangible assets (33) (30) (28) (31) (121)
Investment revaluation gain (loss) (8) (14) (1) (8) (31)
Interest and other financial charges - net (4) (12) (2) (59) (77)
Non-operating benefit income (costs) 2 1 1 1 5
Income from continuing operations before income taxes
$ 533 $ 639 $ 622 $ 718 $ 2,512
(1) Financial information not presented within the reportable segments, shown within the Other category, primarily represents HFS which does not meet the definition of an operating segment.

NON-GAAP FINANCIAL MEASURES

The non-GAAP financial measures presented in this Exhibit 99 are supplemental measures of our performance that we believe will help investors understand our results of operations, and assess our future prospects. When read in conjunction with our U.S. GAAP results, these non-GAAP financial measures provide a baseline for analyzing trends in our underlying businesses and can be used by management as one basis for making financial, operational, and planning decisions.

We report Organic revenue and Organic revenue growth rate to provide management and investors with additional understanding and visibility into the underlying revenue trends of our established, ongoing operations, as well as provide insights into overall demand for our products and services. To calculate these measures, we exclude the effect of acquisitions, dispositions, and foreign currency rate fluctuations.
4

Organic Revenue*
For the three months ended June 30
Unaudited
2024 2023 % Change
Imaging revenues
$ 2,171 $ 2,228 (3)%
Less: Acquisitions(1)
13 -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(33) -
Imaging Organic revenue*
$ 2,191 $ 2,228 (2)%
AVS revenues
$ 1,249 $ 1,231 1%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(11) -
AVS Organic revenue*
$ 1,260 $ 1,231 2%
PCS revenues
$ 772 $ 770 -%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(2) -
PCS Organic revenue*
$ 775 $ 770 1%
PDx revenues
$ 639 $ 568 12%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(7) -
PDx Organic revenue*
$ 646 $ 568 14%
Other revenues
$ 9 $ 20 (53)%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
- -
Other Organic revenue*
$ 9 $ 20 (53)%
Total revenues
$ 4,839 $ 4,817 -%
Less: Acquisitions(1)
13 -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(54) -
Organic revenue*
$ 4,881 $ 4,817 1%
(1)
Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction.
(2)
Represents revenues attributable to dispositions for the four quarters preceding the disposition date.

____________________
*Non-GAAP Financial Measure
5

Organic Revenue*
For the three months ended March 31
Unaudited
2024 2023 % Change
Imaging revenues
$ 2,062 $ 2,088 (1)%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(24) -
Imaging Organic revenue*
$ 2,086 $ 2,088 -%
AVS revenues
$ 1,227 $ 1,267 (3)%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(8) -
AVS Organic revenue*
$ 1,235 $ 1,267 (3)%
PCS revenues
$ 747 $ 781 (4)%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(1) -
PCS Organic revenue*
$ 748 $ 781 (4)%
PDx revenues
$ 599 $ 558 7%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(1) -
PDx Organic revenue*
$ 600 $ 558 8%
Other revenues
$ 15 $ 13 12%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
- -
Other Organic revenue*
$ 14 $ 13 11%
Total revenues
$ 4,650 $ 4,707 (1)%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(34) -
Organic revenue*
$ 4,684 $ 4,707 -%
(1)
Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction.
(2)
Represents revenues attributable to dispositions for the four quarters preceding the disposition date.

____________________
*Non-GAAP Financial Measure
6

Organic Revenue*
For the three months ended December 31 For the year ended December 31
Unaudited
2023 2022 % Change 2023 2022 % Change
Imaging revenues
$ 2,392 $ 2,295 4% $ 8,944 $ 8,395 7%
Less: Acquisitions(1)
1 - 1 -
Less: Dispositions(2)
- - - -
Less: Foreign currency exchange
12 - (131) -
Imaging Organic revenue*
$ 2,379 $ 2,295 4% $ 9,074 $ 8,395 8%
AVS revenues
$ 1,382 $ 1,370 1% $ 5,094 $ 5,012 2%
Less: Acquisitions(1)
- - - -
Less: Dispositions(2)
- - - -
Less: Foreign currency exchange
14 - (56) -
AVS Organic revenue*
$ 1,368 $ 1,370 -% $ 5,150 $ 5,012 3%
PCS revenues
$ 827 $ 786 5% $ 3,142 $ 2,916 8%
Less: Acquisitions(1)
- - - -
Less: Dispositions(2)
- - - -
Less: Foreign currency exchange
6 - (16) -
PCS Organic revenue*
$ 821 $ 786 4% $ 3,158 $ 2,916 8%
PDx revenues
$ 591 $ 473 25% $ 2,306 $ 1,958 18%
Less: Acquisitions(1)
- - - -
Less: Dispositions(2)
- - - -
Less: Foreign currency exchange
9 - (14) -
PDx Organic revenue*
$ 582 $ 473 23% $ 2,320 $ 1,958 18%
Other revenues
$ 14 $ 14 -% $ 66 $ 60 10%
Less: Acquisitions(1)
- - - -
Less: Dispositions(2)
- - - -
Less: Foreign currency exchange
1 - 1 -
Other Organic revenue*
$ 13 $ 14 (7)% $ 65 $ 60 8%
Total revenues
$ 5,206 $ 4,938 5% $ 19,552 $ 18,341 7%
Less: Acquisitions(1)
1 - 1 -
Less: Dispositions(2)
- - - -
Less: Foreign currency exchange
42 - (216) -
Organic revenue*
$ 5,163 $ 4,938 5% $ 19,767 $ 18,341 8%
(1)
Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction.
(2)
Represents revenues attributable to dispositions for the four quarters preceding the disposition date.

____________________
*Non-GAAP Financial Measure
7

Organic Revenue*
For the three months ended September 30
Unaudited
2023 2022 % Change
Imaging revenues
$ 2,236 $ 2,118 6%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(13) -
Imaging Organic revenue*
$ 2,249 $ 2,118 6%
AVS revenues
$ 1,214 $ 1,221 (1)%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
- -
AVS Organic revenue*
$ 1,214 $ 1,221 (1)%
PCS revenues
$ 764 $ 701 9%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
1 -
PCS Organic revenue*
$ 763 $ 701 9%
PDx revenues
$ 589 $ 522 13%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
2 -
PDx Organic revenue*
$ 587 $ 522 12%
Other revenues
$ 19 $ 14 36%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
- -
Other Organic revenue*
$ 19 $ 14 36%
Total revenues
$ 4,822 $ 4,576 5%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(10) -
Organic revenue*
$ 4,832 $ 4,576 6%
(1)
Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction.
(2)
Represents revenues attributable to dispositions for the four quarters preceding the disposition date.

____________________
*Non-GAAP Financial Measure
8

Organic Revenue*
For the three months ended June 30
Unaudited
2023 2022 % Change
Imaging revenues
$ 2,228 $ 2,064 8%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(43) -
Imaging Organic revenue*
$ 2,271 $ 2,064 10%
AVS revenues
$ 1,231 $ 1,213 1%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(19) -
AVS Organic revenue*
$ 1,250 $ 1,213 3%
PCS revenues
$ 770 $ 713 8%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(6) -
PCS Organic revenue*
$ 776 $ 713 9%
PDx revenues
$ 568 $ 478 19%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(6) -
PDx Organic revenue*
$ 574 $ 478 20%
Other revenues
$ 20 $ 16 25%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
- -
Other Organic revenue*
$ 20 $ 16 25%
Total revenues
$ 4,817 $ 4,484 7%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(74) -
Organic revenue*
$ 4,891 $ 4,484 9%
(1)
Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction.
(2)
Represents revenues attributable to dispositions for the four quarters preceding the disposition date.

____________________
*Non-GAAP Financial Measure
9

Organic Revenue*
For the three months ended March 31
Unaudited
2023 2022 % Change
Imaging revenues
$ 2,088 $ 1,918 9%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(87) -
Imaging Organic revenue*
$ 2,175 $ 1,918 13%
AVS revenues
$ 1,267 $ 1,208 5%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(51) -
AVS Organic revenue*
$ 1,318 $ 1,208 9%
PCS revenues
$ 781 $ 716 9%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(17) -
PCS Organic revenue*
$ 798 $ 716 11%
PDx revenues
$ 558 $ 484 15%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(19) -
PDx Organic revenue*
$ 577 $ 484 19%
Other revenues
$ 13 $ 17 (24)%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
- -
Other Organic revenue*
$ 13 $ 17 (24)%
Total revenues
$ 4,707 $ 4,343 8%
Less: Acquisitions(1)
- -
Less: Dispositions(2)
- -
Less: Foreign currency exchange
(174) -
Organic revenue*
$ 4,881 $ 4,343 12%
(1)
Represents revenues attributable to acquisitions from the date the Company completed the transaction through the end of four quarters following the transaction.
(2)
Represents revenues attributable to dispositions for the four quarters preceding the disposition date.

____________________
*Non-GAAP Financial Measure
10