ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS |
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| Intangible Asset, Goodwill and Other [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS | ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS ACQUISITIONS. Intelerad On March 18, 2026, the Company acquired 100% of the stock of Intelerad for approximately $2,293 million in cash, net of cash acquired. The purchase was funded by the proceeds of senior unsecured notes issued in the fourth quarter of 2025, together with new borrowings under a delayed draw term loan facility and cash on hand. See Note 8, “Borrowings” for additional information on the borrowings. Intelerad is included in the Company’s AIS segment. Intelerad is a leading medical imaging software and digital enterprise workflow solutions company with a significant presence in outpatient ambulatory care settings, which the Company believes complements our strength in hospital-based imaging. The preliminary fair values of the assets and liabilities assumed in connection with the acquisition of Intelerad are as follows.
(1) All other non-current liabilities primarily includes tax reserves. The purchase price allocation required estimates and assumptions, including, but not limited to, estimates of future cash flows, direct costs, and appropriate discount rates. During the three months ended June 30, 2026, the Company reassessed its estimates and inputs as new information about facts and circumstances that existed as of the acquisition date became known. As a result, the Company recorded a net increase of $45 million to goodwill. These adjustments primarily relate to Contract assets, Deferred income taxes, and Other intangible assets. While all amounts remain subject to adjustments, the areas subject to the most significant potential adjustments are Other intangible assets and Deferred income taxes. The Company’s management believes the amounts recognized for the assets acquired and liabilities assumed are based on reasonable estimates and assumptions. Other intangibles relate to $845 million of definite-lived intangible assets, primarily consisting of developed technology, customer relationships, and trade names. The acquired definite-lived intangibles are being amortized over a weighted-average estimated useful life of approximately 12 years. The estimated fair value of intangibles was determined using the income approach, which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of cash flows an asset would generate over its useful life. Goodwill recognized in connection with the Intelerad acquisition, recorded within the AIS segment, is not deductible for income tax purposes. The goodwill primarily reflects expected synergies and other strategic benefits associated with the integration of Intelerad’s technology into the Company’s market offerings and imaging technologies. Deferred income tax liabilities include the expected U.S. federal, state, and foreign tax consequences associated with temporary differences between the preliminary fair values of the assets acquired and liabilities assumed and the respective tax basis. Our unaudited supplemental pro forma consolidated financial information for the three and six months ended June 30, 2026 and 2025, including the results of operations for Intelerad as if the Intelerad acquisition had been completed on January 1, 2025, is as follows.
The unaudited supplemental pro forma consolidated financial information was prepared using the acquisition method of accounting and was based on the historical financial information of Intelerad. In order to reflect the occurrence of the acquisition on January 1, 2025, the unaudited supplemental pro forma financial information includes adjustments to reflect the following: (i) incremental amortization expense based on the current preliminary fair values of the identifiable intangible assets; (ii) the additional interest expense associated with the issuance of debt to finance the acquisition; and (iii) the reclassification of transaction and other acquisition-related costs incurred during the three and six months ended June 30, 2026, to the three and six months ended June 30, 2025. The unaudited supplemental pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2025. In addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined company, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition. icometrix On November 7, 2025, the Company acquired 100% of the stock of icometrix NV (“icometrix”) for approximately $98 million of upfront payment, net of cash acquired and potential earn-out payments up to $35 million based on sales targets over two years. icometrix is focused on providing AI-powered brain imaging analysis for neurological disorders such as Alzheimer’s disease. We are in the process of integrating the icometrix platform with our MRI systems. icometrix is included in the Company’s AIS segment. The preliminary purchase price allocation resulted in goodwill of $74 million, intangible assets of $34 million, and deferred tax liabilities of $9 million. Purchase price allocations are based on preliminary valuations. Our estimates and assumptions are subject to change within the measurement period. The goodwill associated with the acquired business is non-deductible for tax purposes. Nihon Medi-Physics On March 31, 2025, the Company acquired the remaining 50% interest in Nihon Medi-Physics Co., Ltd. (“NMP”) from joint venture partner Sumitomo Chemical for net cash consideration of $271 million. NMP is a leading pharmaceutical manufacturer in Japan, focused on radiopharmaceuticals, which are used to enable clinical images across neurology, cardiology, and oncology procedures, as well as nonclinical and clinical development of radiotracers and theranostics research. Their product portfolio includes several GE HealthCare radiopharmaceuticals. NMP is included in the Company’s PDx segment. On March 31, 2025, the fair value of the Company’s existing 50% interest in NMP was determined to be $301 million based on the cash consideration exchanged for acquiring the remaining 50% equity interest. The carrying value of our 50% interest was $204 million. The Company recognized a net gain of $97 million resulting from this remeasurement to fair value. This gain included the reclassification of certain amounts related to the Company’s 50% interest out of Accumulated other comprehensive income (loss) – net (“AOCI”) including foreign currency translation gains of $63 million and losses related to a defined benefit pension plan of $8 million. The net gain from this remeasurement was recorded in Other (income) expense – net in the Company’s Condensed Consolidated Statements of Income for the six months ended June 30, 2025. The following table provides a summary of the purchase price consideration transferred for the acquisition of NMP.
The fair values of the assets and liabilities assumed in connection with the acquisition of NMP, which were finalized in the first quarter of 2026 without material adjustment, are as follows.
(1) All other current assets includes $35 million of indemnification assets, with the underlying indemnified liabilities recorded in All other non-current liabilities. (2) Other includes Accounts payable, All other current liabilities, and Current compensation and benefits. Property, plant, and equipment is mostly comprised of land, buildings, equipment (including machinery, furniture, and fixtures) and construction in process. The fair value of property, plant, and equipment was determined using a market participant approach. Other intangibles relate to $235 million of definite-lived intangible assets, primarily consisting of developed product market authorization rights and customer relationships. The acquired definite-lived intangibles are being amortized over a weighted-average estimated useful life of approximately 13 years. The estimated fair value of intangibles was determined using the income approach. The goodwill associated with NMP, recorded within the PDx segment, is non-deductible for tax purposes and is attributed to expected synergies with NMP’s existing assets and workforce that are expected to allow the Company greater access and growth in the Japan market. Included in All other non-current liabilities are asset retirement obligations and decommissioning liabilities of $124 million, which were assumed in the transaction. NMP has a defined benefit pension plan which has pension assets of $71 million and pension liabilities of $33 million, a net asset of $38 million, which we acquired in the transaction and is included in All other non-current assets. Deferred income tax liabilities include the expected U.S. federal, state, and foreign tax consequences associated with temporary differences between the fair values of the assets acquired and liabilities assumed and the respective tax basis. If the acquisition of NMP had taken place as of the beginning of 2024, consolidated revenues and earnings would not have been significantly different than reported amounts. GOODWILL. As discussed in Note 3, “Segment Information,” in the second quarter of 2026, the Company combined its Imaging and AVS businesses into a new operating and reportable segment, AIS. Accordingly, we combined the historical Imaging and AVS goodwill balances into the newly formed AIS segment. We assess the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates. In connection with the change in reportable segments in the second quarter of 2026, the Company evaluated the goodwill of our reporting units within the AIS segment for impairment before and after the segment realignment and we did not identify any events or circumstances that would require an interim impairment test. In addition, with respect to goodwill within the PDx and PCS segments, we did not identify any events or circumstances that required an interim impairment test since the last annual impairment testing date. Future changes in operating results, market conditions, or other relevant assumptions could affect this assessment. Should the Company identify future indicators of goodwill impairment, it may be required to conduct an interim impairment test that could result in a goodwill impairment charge.
(1) Includes the purchase of Intelerad recorded within our AIS segment, as described above. OTHER INTANGIBLE ASSETS.
(1) Indefinite-lived intangible assets relate to acquired in-process research and development prior to project completion and are not amortized. Amortization expense was $84 million and $75 million for the three months ended June 30, 2026 and 2025, respectively, and $159 million and $146 million for the six months ended June 30, 2026 and 2025, respectively.
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| ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS | ACQUISITIONS, GOODWILL, AND OTHER INTANGIBLE ASSETS ACQUISITIONS. Intelerad On March 18, 2026, the Company acquired 100% of the stock of Intelerad for approximately $2,293 million in cash, net of cash acquired. The purchase was funded by the proceeds of senior unsecured notes issued in the fourth quarter of 2025, together with new borrowings under a delayed draw term loan facility and cash on hand. See Note 8, “Borrowings” for additional information on the borrowings. Intelerad is included in the Company’s AIS segment. Intelerad is a leading medical imaging software and digital enterprise workflow solutions company with a significant presence in outpatient ambulatory care settings, which the Company believes complements our strength in hospital-based imaging. The preliminary fair values of the assets and liabilities assumed in connection with the acquisition of Intelerad are as follows.
(1) All other non-current liabilities primarily includes tax reserves. The purchase price allocation required estimates and assumptions, including, but not limited to, estimates of future cash flows, direct costs, and appropriate discount rates. During the three months ended June 30, 2026, the Company reassessed its estimates and inputs as new information about facts and circumstances that existed as of the acquisition date became known. As a result, the Company recorded a net increase of $45 million to goodwill. These adjustments primarily relate to Contract assets, Deferred income taxes, and Other intangible assets. While all amounts remain subject to adjustments, the areas subject to the most significant potential adjustments are Other intangible assets and Deferred income taxes. The Company’s management believes the amounts recognized for the assets acquired and liabilities assumed are based on reasonable estimates and assumptions. Other intangibles relate to $845 million of definite-lived intangible assets, primarily consisting of developed technology, customer relationships, and trade names. The acquired definite-lived intangibles are being amortized over a weighted-average estimated useful life of approximately 12 years. The estimated fair value of intangibles was determined using the income approach, which is a valuation technique that provides an estimate of the fair value of an asset based on market participant expectations of cash flows an asset would generate over its useful life. Goodwill recognized in connection with the Intelerad acquisition, recorded within the AIS segment, is not deductible for income tax purposes. The goodwill primarily reflects expected synergies and other strategic benefits associated with the integration of Intelerad’s technology into the Company’s market offerings and imaging technologies. Deferred income tax liabilities include the expected U.S. federal, state, and foreign tax consequences associated with temporary differences between the preliminary fair values of the assets acquired and liabilities assumed and the respective tax basis. Our unaudited supplemental pro forma consolidated financial information for the three and six months ended June 30, 2026 and 2025, including the results of operations for Intelerad as if the Intelerad acquisition had been completed on January 1, 2025, is as follows.
The unaudited supplemental pro forma consolidated financial information was prepared using the acquisition method of accounting and was based on the historical financial information of Intelerad. In order to reflect the occurrence of the acquisition on January 1, 2025, the unaudited supplemental pro forma financial information includes adjustments to reflect the following: (i) incremental amortization expense based on the current preliminary fair values of the identifiable intangible assets; (ii) the additional interest expense associated with the issuance of debt to finance the acquisition; and (iii) the reclassification of transaction and other acquisition-related costs incurred during the three and six months ended June 30, 2026, to the three and six months ended June 30, 2025. The unaudited supplemental pro forma financial information is not necessarily indicative of what the consolidated results of operations would have been had the acquisition been completed on January 1, 2025. In addition, the unaudited pro forma financial information is not a projection of future results of operations of the combined company, nor does it reflect the expected realization of any synergies or cost savings associated with the acquisition. icometrix On November 7, 2025, the Company acquired 100% of the stock of icometrix NV (“icometrix”) for approximately $98 million of upfront payment, net of cash acquired and potential earn-out payments up to $35 million based on sales targets over two years. icometrix is focused on providing AI-powered brain imaging analysis for neurological disorders such as Alzheimer’s disease. We are in the process of integrating the icometrix platform with our MRI systems. icometrix is included in the Company’s AIS segment. The preliminary purchase price allocation resulted in goodwill of $74 million, intangible assets of $34 million, and deferred tax liabilities of $9 million. Purchase price allocations are based on preliminary valuations. Our estimates and assumptions are subject to change within the measurement period. The goodwill associated with the acquired business is non-deductible for tax purposes. Nihon Medi-Physics On March 31, 2025, the Company acquired the remaining 50% interest in Nihon Medi-Physics Co., Ltd. (“NMP”) from joint venture partner Sumitomo Chemical for net cash consideration of $271 million. NMP is a leading pharmaceutical manufacturer in Japan, focused on radiopharmaceuticals, which are used to enable clinical images across neurology, cardiology, and oncology procedures, as well as nonclinical and clinical development of radiotracers and theranostics research. Their product portfolio includes several GE HealthCare radiopharmaceuticals. NMP is included in the Company’s PDx segment. On March 31, 2025, the fair value of the Company’s existing 50% interest in NMP was determined to be $301 million based on the cash consideration exchanged for acquiring the remaining 50% equity interest. The carrying value of our 50% interest was $204 million. The Company recognized a net gain of $97 million resulting from this remeasurement to fair value. This gain included the reclassification of certain amounts related to the Company’s 50% interest out of Accumulated other comprehensive income (loss) – net (“AOCI”) including foreign currency translation gains of $63 million and losses related to a defined benefit pension plan of $8 million. The net gain from this remeasurement was recorded in Other (income) expense – net in the Company’s Condensed Consolidated Statements of Income for the six months ended June 30, 2025. The following table provides a summary of the purchase price consideration transferred for the acquisition of NMP.
The fair values of the assets and liabilities assumed in connection with the acquisition of NMP, which were finalized in the first quarter of 2026 without material adjustment, are as follows.
(1) All other current assets includes $35 million of indemnification assets, with the underlying indemnified liabilities recorded in All other non-current liabilities. (2) Other includes Accounts payable, All other current liabilities, and Current compensation and benefits. Property, plant, and equipment is mostly comprised of land, buildings, equipment (including machinery, furniture, and fixtures) and construction in process. The fair value of property, plant, and equipment was determined using a market participant approach. Other intangibles relate to $235 million of definite-lived intangible assets, primarily consisting of developed product market authorization rights and customer relationships. The acquired definite-lived intangibles are being amortized over a weighted-average estimated useful life of approximately 13 years. The estimated fair value of intangibles was determined using the income approach. The goodwill associated with NMP, recorded within the PDx segment, is non-deductible for tax purposes and is attributed to expected synergies with NMP’s existing assets and workforce that are expected to allow the Company greater access and growth in the Japan market. Included in All other non-current liabilities are asset retirement obligations and decommissioning liabilities of $124 million, which were assumed in the transaction. NMP has a defined benefit pension plan which has pension assets of $71 million and pension liabilities of $33 million, a net asset of $38 million, which we acquired in the transaction and is included in All other non-current assets. Deferred income tax liabilities include the expected U.S. federal, state, and foreign tax consequences associated with temporary differences between the fair values of the assets acquired and liabilities assumed and the respective tax basis. If the acquisition of NMP had taken place as of the beginning of 2024, consolidated revenues and earnings would not have been significantly different than reported amounts. GOODWILL. As discussed in Note 3, “Segment Information,” in the second quarter of 2026, the Company combined its Imaging and AVS businesses into a new operating and reportable segment, AIS. Accordingly, we combined the historical Imaging and AVS goodwill balances into the newly formed AIS segment. We assess the possibility that a reporting unit’s fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates. In connection with the change in reportable segments in the second quarter of 2026, the Company evaluated the goodwill of our reporting units within the AIS segment for impairment before and after the segment realignment and we did not identify any events or circumstances that would require an interim impairment test. In addition, with respect to goodwill within the PDx and PCS segments, we did not identify any events or circumstances that required an interim impairment test since the last annual impairment testing date. Future changes in operating results, market conditions, or other relevant assumptions could affect this assessment. Should the Company identify future indicators of goodwill impairment, it may be required to conduct an interim impairment test that could result in a goodwill impairment charge.
(1) Includes the purchase of Intelerad recorded within our AIS segment, as described above. OTHER INTANGIBLE ASSETS.
(1) Indefinite-lived intangible assets relate to acquired in-process research and development prior to project completion and are not amortized. Amortization expense was $84 million and $75 million for the three months ended June 30, 2026 and 2025, respectively, and $159 million and $146 million for the six months ended June 30, 2026 and 2025, respectively.
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