GE HealthCare Technologies (GEHC) - 2023 Q4 - Annual Report

Financial Position and Debt - The company has approximately $9,442 million in outstanding borrowings as of December 31, 2023[243]. - As of December 31, 2023, the company has$8,250 million of fixed-rate debt and $1,150 million outstanding on a Term Loan Facility with a variable interest rate[383]. - A hypothetical change of interest rates by 100 basis points would increase or decrease the company's annual interest expense by approximately$22 million[384]. - The company entered into interest-rate swap contracts in Q4 2023 to convert $1,000 million of senior unsecured notes from fixed rates to variable rates as part of its interest rate risk management strategy[385]. Operational Risks and Challenges - The company may incur increased costs due to the loss of synergies previously enjoyed while operating as part of GE[240]. - The company may face challenges accessing capital markets on favorable terms due to potential volatility and disruptions[242]. - Disruptions in deliveries or production, due to various risks, could significantly impact the company's operating profit or cash flows[388]. Currency and Commodity Exposure - A potential 10$13 million decrease in the fair value of foreign currency derivative contracts[380]. - The company has exposure to foreign currency translation risk due to global operations, with significant revenues and expenses in various currencies[378]. - If commodity or energy prices increase and the company cannot pass these costs to customers, profit margins would be adversely affected[387]. - The company relies on supplies of raw materials such as helium, iodine, and rare earth minerals, which are subject to volatility in demand, availability, and pricing[386]. Shareholder Impact and Equity - Future equity issuances may dilute existing shareholders' interests and adversely affect earnings per share[250]. - GE owns approximately 13.5% of the company's outstanding common stock and intends to monetize its remaining ownership over time[249]. Compliance and Internal Controls - The company is required to comply with Section 404 of the Sarbanes Oxley Act, which mandates annual management assessments of internal control effectiveness[239]. - The company’s ability to generate cash is subject to various external factors, including economic and regulatory conditions[245]. Deferred Compensation and Equity Risks - The company has $269 million of deferred compensation liabilities subject to equity price risk, which would impact earnings and cash flows[390]. - The company entered into various transaction agreements with GE related to the Spin-Off, which may impact its financial condition if obligations are not met[241].