Company: GEHC
Filing Date: 2025-02-13
Form Type: 10-K
Source: 0001932393-25-000005
Chunk: 134

Company: GE HealthCare Technologies Inc.
Filing Date: 2025-02-13
Form: 10-K
Item: Item 8
Chunk 134
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 in Interest and other financial charges – net in the Combined Statement of Income. For the years ended December 31, 2024 and 2023, $4 million and $6 million, respectively, of income tax penalties were recorded in Benefit (provision) for income taxes in the Consolidated Statements of Income. No accrual for penalties was made in the year ended December 31, 2022.DEFERRED INCOME TAXES. We regularly evaluate the recoverability of our deferred tax assets and establish a valuation allowance, if necessary, to reduce the deferred tax assets to an amount that is more likely than not to be realized (a likelihood of more than 50%). Significant judgment is required in determining whether a valuation allowance is necessary and the amount of such valuation allowance. In assessing the recoverability of our deferred tax assets at December 31, 2024, we considered all available evidence, including the nature of financial statement losses, reversing taxable temporary differences, estimated future operating profits, and tax planning actions and strategies.

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As ofDecember 31, 2024December 31, 2023Total assets$4,474 $4,474 Total liabilities(56)(68)Net deferred income tax asset (liability)$4,418 $4,406 Components of the Net Deferred Income Tax Asset (Liability)As ofDecember 31, 2024December 31, 2023Deferred tax assets:Employee benefits$1,340 $1,418 Reserves and accruals413 458 Operating loss carryforwards447 648 Lease liabilities57 75 Tax credit carryforwards80 59 U.S. interest restriction carryforwards156 61 Goodwill and other intangible assets1,355 1,461 Property, plant, and equipment223 261 Capitalized R&D689 547 Other deferred tax assets55 111 Total deferred income tax asset4,817 5,099 Valuation allowances(231)(540)Total deferred income tax asset after valuation allowance4,586 4,559 Deferred tax liabilities:ROU assets(42)(50)Other deferred tax liabilities(126)(102)Total deferred income tax liability(168)(152)Net deferred income tax asset (liability)$4,418 $4,406 The deferred tax asset associated with capitalized R&D is related to U.S. tax law that requires capitalization and amortization over five or fifteen years.