v3.25.4
SUPPLEMENTAL FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
SUPPLEMENTAL FINANCIAL INFORMATION SUPPLEMENTAL FINANCIAL INFORMATION
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH.
As of
December 31, 2025December 31, 2024
Cash and cash equivalents(1)
$4,492 $2,874 
Short-term restricted cash20 16 
Total Cash, cash equivalents, and restricted cash as presented in the Consolidated Statements of Financial Position
4,512 2,889 
Long-term restricted cash(2)
3 3 
Total Cash, cash equivalents, and restricted cash as presented in the Consolidated Statements of Cash Flows
$4,515 $2,893 
(1) The increase in Cash and cash equivalents was primarily due to proceeds from the issuance of senior unsecured notes by the Company in the fourth quarter of 2025. Refer to Note 9, “Borrowings” for further information.
(2) Long-term restricted cash is recognized within All other non-current assets in the Consolidated Statements of Financial Position.
INVENTORIES.
As of
December 31, 2025December 31, 2024
Raw materials$1,002 $921 
Work in process95 92 
Finished goods1,137 926 
Inventories
$2,234 $1,939 

Certain inventory items are long-term in nature and therefore have been recognized within All other non-current assets in the Consolidated Statements of Financial Position and are not reflected in the table above. See the supplemental table “All Other Non-Current Assets” for further information.

PROPERTY, PLANT, AND EQUIPMENT – NET.
As of
December 31, 2025December 31, 2024
Land and improvements
$144 $66 
Buildings, structures, and related equipment
2,140 1,943 
Machinery and equipment
2,872 2,705 
Leasehold improvements and manufacturing plants under construction
574 553 
Total property, plant, and equipment, at original cost
5,731 5,267 
Accumulated depreciation
(3,049)(3,080)
Right-of-use operating lease assets, net of amortization(1)
410 364 
Property, plant, and equipment – net
$3,092 $2,550 
(1) See Note 7, “Leases” for further information.

Depreciation expense related to Property, plant, and equipment – net, exclusive of ROU operating lease assets, was $287 million, $268 million, and $248 million for the years ended December 31, 2025, 2024, and 2023, respectively.

ALL OTHER ASSETS AND ALL OTHER LIABILITIES.

All Other Current Assets
As of
December 31, 2025December 31, 2024
Prepaid expenses and deferred costs
$228 $188 
Financing receivables – net
95 90 
Derivative instruments(1)
169 123 
Tax receivables
154 115 
Other(2)
81 16 
All other current assets
$726 $532 
(1) Derivative instruments include the related accrued interest. Refer to Note 13, “Financial Instruments and Fair Value Measurements” for further information.
(2) As of December 31, 2025, Other primarily consists of indemnity assets associated with the NMP acquisition and separation agreements with GE. These amounts were not material as of December 31, 2024.

All Other Non-Current Assets
As of
December 31, 2025December 31, 2024
Prepaid pension asset
$742 $657 
Equity method and other investments
351 373 
Financing receivables – net
190 183 
Derivative instruments(1)
88 22 
Long-term receivables – net
190 142 
Inventories
121 139 
Contract and other deferred assets
211 208 
Capitalized cloud computing arrangement implementation costs(2)
200 84 
Other(3)
112 142 
All other non-current assets
$2,205 $1,950 
(1) Derivative instruments include the related accrued interest. Refer to Note 13, “Financial Instruments and Fair Value Measurements” for further information.
(2) See the supplemental table “Capitalized Cloud Computing Arrangement Implementation Costs” for further information.
(3) Other primarily consists of indemnity assets associated with separation agreements with GE, and tax receivables.
All Other Current Liabilities
As of
December 31, 2025December 31, 2024
Sales allowances and related liabilities
$256 $242 
Income and indirect tax liabilities including uncertain tax positions
324 279 
Product warranties
169 168 
Accrued logistics and utilities
197 163 
Operating lease liabilities
134 115 
Derivative instruments(1)
47 90 
Interest payable on borrowings
100 92 
Environmental and asset retirement obligations
11 17 
Other(2)
348 386 
All other current liabilities
$1,587 $1,552 
(1) Derivative instruments include the related accrued interest. Refer to Note 13, “Financial Instruments and Fair Value Measurements” for further information.
(2) Other primarily consists of miscellaneous accrued costs, dividends payable, and contingent consideration liabilities.

All Other Non-Current Liabilities
As of
December 31, 2025December 31, 2024
Contract liabilities
$803 $686 
Operating lease liabilities284 270 
Environmental and asset retirement obligations(1)
413 291 
Income and indirect tax liabilities including uncertain tax positions
156 237 
Derivative instruments(2)
160 64 
Finance lease obligations
42 40 
Sales allowances and related liabilities
23 23 
Other(3)
178 184 
All other non-current liabilities
$2,061 $1,796 
(1) Refer to Note 14, “Commitments, Guarantees, Product Warranties, and Other Loss Contingencies” for further information on the increase in Environmental and asset retirement obligations.
(2) Derivative instruments include the related accrued interest. Refer to Note 13, “Financial Instruments and Fair Value Measurements” for further information.
(3) Other primarily consists of miscellaneous accrued costs, indemnity liabilities associated with separation agreements with GE, and contingent consideration liabilities.

CAPITALIZED CLOUD COMPUTING ARRANGEMENT IMPLEMENTATION COSTS.
As of
December 31, 2025December 31, 2024
Capitalized implementation costs
$249 $114 
Accumulated amortization
(49)(30)
Total Capitalized cloud computing arrangement implementation costs, net
$200 $84 

Amortization expense related to capitalized cloud computing arrangement implementation costs was $19 million, $10 million, and $7 million for the years ended December 31, 2025, 2024, and 2023, respectively.

EQUITY METHOD INVESTMENTS.
Equity method investment balanceEquity method income (loss)
As of December 31Ownership Percentage20252024202520242023
Nihon Medi-Physics Co., Ltd.(1)
50%$— $139 $2 $10 $10 
Other28 24 1 (2)1 
Total$28 $163 $3 $8 $11 
(1) In the first quarter of 2025, the Company acquired its remaining interest in NMP. Refer to Note 8, “Acquisitions, Goodwill, and Other Intangible Assets” for additional information on the NMP acquisition.

As of December 31, 2025 and 2024, the fair value of investments over which we have significant influence and have elected the fair value option was $32 million and $6 million, respectively.
SUPPLY CHAIN FINANCE PROGRAMS.

A rollforward of our outstanding obligations confirmed and paid under the supply chain finance programs, which are included within Accounts payable in the Consolidated Statements of Financial Position, is presented below.

For the years ended December 31
2025
2024
Confirmed obligations outstanding at beginning of period
$394 $365 
Invoices confirmed during the year
818 886 
Confirmed invoices paid during the year
(853)(855)
Foreign exchange and other
1 (2)
Confirmed obligations outstanding at end of period
$360 $394 

REDEEMABLE NONCONTROLLING INTERESTS.

The Company has noncontrolling interests with redemption features. These redemption features, such as put options, could require the Company to purchase the noncontrolling interests upon the occurrence of certain events. All noncontrolling interests with redemption features that are not solely within our control are recognized within the Consolidated Statements of Financial Position between liabilities and equity. Redeemable noncontrolling interests are initially recorded at the issuance date fair value. Those that are currently redeemable, or probable of becoming redeemable, are subsequently adjusted to the greater of current redemption value or initial carrying value.

Activity attributable to redeemable noncontrolling interests is presented below.
For the years ended December 31
202520242023
Balance at beginning of period$188 $165 $230 
Net income attributable to redeemable noncontrolling interests
66 50 41 
Redemption value adjustments(1)
— — 183 
Distributions to redeemable noncontrolling interests and other(2)
(45)(28)(289)
Balance at end of period $209 $188 $165 
(1) As of January 3, 2023, certain redeemable noncontrolling interests were probable of becoming redeemable due to the change of control that occurred upon consummation of the Spin-Off. As a result, these redeemable noncontrolling interests were remeasured to their current redemption value. The remeasurement was accounted for as a deemed preferred stock dividend of redeemable noncontrolling interest and recorded as an adjustment to Retained earnings in the Consolidated Statements of Financial Position.
(2) In 2023, the redeemable noncontrolling interest holder exercised its option redemption provision and the Company paid a redemption amount of $211 million.

OTHER INCOME (EXPENSE) – NET.

For the years ended December 31
202520242023
Net financing income and investment income (loss)
$41 $(1)$26 
Equity method income (loss)
3 8 11 
Change in fair value of assumed obligations
(30)(32)(32)
Gain on remeasurement of NMP equity method investment(1)
97 — — 
Other items, net(2)
46 80 81 
Total other income (expense) – net
$157 $55 $86 
(1) During the year ended December 31, 2025, the Company acquired its remaining interest in NMP. Refer to Note 8, “Acquisitions, Goodwill, and Other Intangible Assets” for additional information on the NMP acquisition.
(2) Other items, net primarily consists of a mix of licensing and royalty income, government grants, lease income, change in tax indemnities, and gains and losses related to derivatives. Additionally, for the year ended December 31, 2025 it includes a realization of a gain contingency.