INCOME TAXES |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES | INCOME TAXES. Our effective income tax rate was 13.4% and 14.2% for the nine months ended September 30, 2026 and 2025, respectively. The decrease in our effective tax rate was primarily attributable to higher tax benefits related to global activities, including the impact of the One Big Beautiful Bill Act (OBBBA), partially offset by lower tax benefits from business tax credits. In 2026, the Organisation for Economic Co-operation and Development (OECD)/G20 issued a Side-by-Side package (SbS) that simplifies Pillar 2, creates new safe harbors, fully exempts U.S.-parented groups from two of the three top-up taxes, and extends the Transitional Country-by-Country Reporting (CbCR) Safe Harbor through fiscal year 2027. In certain jurisdictions, local legislative action is needed to effectuate the SbS agreement and cannot be considered in our accounting estimate until enactment. We continue to refine the effective tax rate and cash tax impact of Pillar 2 as legislative changes are implemented in multiple countries, but we do not expect significant changes in the tax provision as countries adopt the SbS. The Internal Revenue Service (IRS) is currently auditing our consolidated U.S. income tax returns for 2016-2020. Since March 2026, we have received several Acknowledgement of Facts Information Document Requests (AOF IDRs) from the IRS regarding the application of additional tax and potential penalties related to the Company's income tax computations before and after the 2017 Tax Cuts and Jobs Act, which among other things provided for a one-time transition tax on certain undistributed earnings and profits of foreign subsidiaries. The Company has responded to these requests and believes the amounts previously accrued are sufficient; however, the IRS may assert a material amount of additional taxes and penalties as this process continues. The Company would contest any such additional amounts, and it is not possible to provide a meaningful estimate at this time. Any such obligations would be allocated among the Company, GE Vernova and GE HealthCare in accordance with the tax matters agreements entered into as part of the separations. Regardless of the outcome, a final resolution of this matter could be time-consuming and is not likely within the next 12 months. An unfavorable ultimate resolution of this matter could adversely affect the Company's results of operations and cash flow. The following table presents our net deferred tax assets and net deferred tax liabilities attributable to different tax jurisdictions or different tax paying components.
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