Company: GEHC
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001932393-25-000005
Chunk: 143

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 143
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 in fair value related to components other than the spot rate are excluded from effectiveness testing for the years ended December 31, 2024, 2023, and 2022.(2) Amount includes $(27) million, $(1) million, and $— million of interest expense on interest rate derivatives for the years ended December 31, 2024, 2023, and 2022.(3) Other derivatives are primarily comprised of embedded derivatives and derivatives related to equity contracts.(4) Amounts are inclusive of gains (losses) in Other (income) expense – net in the Consolidated and Combined Statements of Income.Counterparty Credit RiskThe Company would be exposed to credit-related losses in the event of non-performance by counterparties on executed derivative instruments. The credit exposure of derivative contracts is represented by the fair value of contracts as of the reporting date. The fair value of the Company’s derivatives can change significantly from period to period based on, among other factors, market movements, and changes in our positions.We manage concentration of counterparty credit risk by limiting acceptable counterparties to major financial institutions with investment grade credit ratings, by limiting the amount of credit exposure to individual counterparties, and by actively monitoring counterparty credit ratings and the amount of individual credit exposure. We also employ master netting arrangements that limit the risk of counterparty non-payment on a particular settlement date to the net gain that would have otherwise been received from the counterparty. Although not completely eliminated, we do not consider the risk of counterparty default to be significant as a result of these protections. None of our derivative instruments are subject to collateral or other security arrangements, nor do they contain provisions that are dependent on our credit ratings from any credit rating agency.FAIR VALUE MEASUREMENTS.The following table represents assets and liabilities that are recorded and measured at fair value on a recurring basis.Fair Value of Assets and Liabilities Measured on a Recurring BasisAs of December 31, 2024As of December 31, 2023Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalAssets:Money market funds$— $312 $— $312 $— $200 $— $200 Investment securities32 — — 32 31 — — 31 Derivatives— 145 — 145 — 128 — 128 Liabilities:Derivatives— 155 — 155