Investments and Fair Value Measurements (Tables)

9 Months Ended

Oct. 03, 2021

Our short-term investments include available-for-sale debt securities that consisted of the following:


	October 3, 2021				January 3, 2021
In millions	Amortized Cost		Gross Unrealized Gains		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Estimated Fair Value

Debt securities in government-sponsored entities	$	—	$	—	$	—	$	10	$	—	$	10
Corporate debt securities	—		—		—		445		—		445
U.S. Treasury securities	—		—		—		830		1		831
Total	$	—	$	—	$	—	$	1,285	$	1	$	1,286

The following table presents the hierarchy for assets and liabilities measured at fair value on a recurring basis:


	October 3, 2021								January 3, 2021
In millions	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds (cash equivalents)	$	623	$	—	$	—	$	623	$	1,512	$	—	$	—	$	1,512
Debt securities in government-sponsored entities	—		—		—		—		—		10		—		10
Corporate debt securities	—		—		—		—		—		445		—		445
U.S. Treasury securities	—		—		—		—		831		—		—		831
Marketable equity securities	185		—		—		185		376		—		—		376
Helix contingent value right	—		—		65		65		—		—		35		35
Derivative assets related to terminated acquisition	—		—		—		—		—		—		26		26
Deferred compensation plan assets	—		59		—		59		—		55		—		55
Total assets measured at fair value	$	808	$	59	$	65	$	932	$	2,719	$	510	$	61	$	3,290
Liabilities:
Contingent consideration liabilities	$	—	$	—	$	769	$	769	$	—	$	—	$	—	$	—
Deferred compensation plan liability	—		55		—		55		—		51		—		51
Total liabilities measured at fair value	$	—	$	55	$	769	$	824	$	—	$	51	$	—	$	51

Changes in the estimated fair value of contingent consideration liabilities during YTD 2021 were as follows:


In millions	Contingent Consideration Liability (Level 3 Measurement)
Balance as of January 3, 2021	$	—
Acquisition of GRAIL	762
Other acquisition	14
Change in estimated fair value	(7)

Balance as of October 3, 2021	$	769