FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Derivative Assets at Fair Value

The following table presents the gross fair values of our outstanding derivative instruments as of the dates indicated:

Fair Value of Derivatives
	September 30, 2023						December 31, 2022
	Gross Notional		Fair Value – Assets		Fair Value – Liabilities		Gross Notional		Fair Value – Assets		Fair Value – Liabilities
Foreign currency exchange contracts	$	1,113	$	41	$	35	$	1,240	$	32	$	53
Derivatives accounted for as cash flow hedges	1,113		41		35		1,240		32		53
Cross-currency swaps	2,126		22		141		2,132		—		111
Foreign currency exchange contracts and options	967		10		9		—		—		—
Derivatives accounted for as net investment hedges	3,093		32		150		2,132		—		111
Foreign currency exchange contracts	4,436		13		29		4,456		9		20
Other derivatives(1)	441		40		1		660		25		25
Derivatives not designated as hedging instruments	4,877		53		30		5,116		34		45
Total derivatives	$	9,083	$	126	$	215	$	8,488	$	66	$	209

(1) Other derivatives are comprised of embedded derivatives, equity contracts, and commodity derivatives.

Schedule of Derivative Liabilities at Fair Value

The following table presents the gross fair values of our outstanding derivative instruments as of the dates indicated:

Fair Value of Derivatives
	September 30, 2023						December 31, 2022
	Gross Notional		Fair Value – Assets		Fair Value – Liabilities		Gross Notional		Fair Value – Assets		Fair Value – Liabilities
Foreign currency exchange contracts	$	1,113	$	41	$	35	$	1,240	$	32	$	53
Derivatives accounted for as cash flow hedges	1,113		41		35		1,240		32		53
Cross-currency swaps	2,126		22		141		2,132		—		111
Foreign currency exchange contracts and options	967		10		9		—		—		—
Derivatives accounted for as net investment hedges	3,093		32		150		2,132		—		111
Foreign currency exchange contracts	4,436		13		29		4,456		9		20
Other derivatives(1)	441		40		1		660		25		25
Derivatives not designated as hedging instruments	4,877		53		30		5,116		34		45
Total derivatives	$	9,083	$	126	$	215	$	8,488	$	66	$	209

(1) Other derivatives are comprised of embedded derivatives, equity contracts, and commodity derivatives.

Schedule of Derivative Pre-tax Gains (Losses) Recognized in OCI

The table below presents the pre-tax gains (losses) recognized in OCI associated with the Company’s cash flow and net investment hedges.

Pre-tax Gains (Losses) Recognized in OCI Related to Cash Flow and Net Investment Hedges
	For the three months ended September 30				For the nine months ended September 30
	2023		2022		2023		2022
Cash flow hedges	$	24	$	31	$	14	$	65
Net investment hedges	64		—		(7)		—

Effect of Derivatives Instruments on Statements of Income

The tables below present the gains (losses) of our derivative financial instruments in the Condensed Consolidated and Combined Statements of Income.

Derivative Financial Instruments
	For the three months ended September 30, 2023								For the three months ended September 30, 2022
	Cost of products		Cost of services		Selling, general and administrative		Other(2)		Cost of products		Cost of services		Selling, general and administrative		Other(2)
Foreign currency exchange contracts	$	(5)	$	(1)	$	—	$	—	$	13	$	4	$	—	$	—
Effects of cash flow hedges	(5)		(1)		—		—		13		4		—		—
Foreign currency exchange contracts and options	—		—		—		1		—		—		—		—
Effects of net investment hedges	—		—		—		1		—		—		—		—
Foreign currency exchange contracts	(38)		(9)		—		4		(25)		(5)		—		5
Other derivatives(1)	—		—		(2)		10		—		—		—		7
Effects of derivatives not designated as hedging instruments	$	(38)	$	(9)	$	(2)	$	14	$	(25)	$	(5)	$	—	$	12

	For the nine months ended September 30, 2023								For the nine months ended September 30, 2022
	Cost of products		Cost of services		Selling, general and administrative		Other(2)		Cost of products		Cost of services		Selling, general and administrative		Other(2)
Foreign currency exchange contracts	$	18	$	4	$	—	$	—	$	27	$	7	$	—	$	—
Effects of cash flow hedges	18		4		—		—		27		7		—		—
Foreign currency exchange contracts and options	—		—		—		1		—		—		—		—
Effects of net investment hedges	—		—		—		1		—		—		—		—
Foreign currency exchange contracts	(28)		(6)		—		10		(86)		(16)		—		12
Other derivatives(1)	—		—		5		36		—		—		—		29
Effects of derivatives not designated as hedging instruments	$	(28)	$	(6)	$	5	$	46	$	(86)	$	(16)	$	—	$	41

(1) Other derivatives are comprised of embedded derivatives, equity contracts, and commodity derivatives.

(2) Amounts inclusive of Other income (expense) – net and Interest and other financial charges – net on the Condensed Consolidated and Combined Statements of Income.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table represents financial assets and liabilities that are recorded and measured at fair value on a recurring basis.

Fair Value of Financial Assets and Liabilities
	As of September 30, 2023								As of December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Investment securities	$	28	$	—	$	—	$	28	$	21	$	—	$	—	$	21
Derivatives	—		126		—		126		—		66		—		66
Liabilities:
Deferred compensation(1)	236		3		—		239		62		2		—		64
Derivatives	—		215		—		215		—		203		6		209
Contingent consideration	—		—		49		49		—		—		42		42

(1) Certain deferred compensation plans whose value is derived from market-based securities values were transferred from GE as part of the Spin-Off.