Investments and Fair Value Measurements (Tables)

3 Months Ended

Apr. 03, 2022

Net losses recognized in other expense, net on our marketable equity securities were as follows:


In millions	Q1 2022		Q1 2021
Net losses recognized during the period on marketable equity securities	$	(42)	$	(72)
Less: Net losses recognized during the period on marketable equity securities sold during the period	—		14
Net unrealized losses recognized during the period on marketable equity securities still held at the reporting date	$	(42)	$	(58)

Schedule of Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis

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


	April 3, 2022								January 2, 2022
In millions	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Money market funds (cash equivalents)	$	775	$	—	$	—	$	775	$	688	$	—	$	—	$	688



Marketable equity securities	65		—		—		65		107		—		—		107
Helix contingent value right	—		—		70		70		—		—		65		65

Deferred compensation plan assets	—		57		—		57		—		60		—		60
Total assets measured at fair value	$	840	$	57	$	70	$	967	$	795	$	60	$	65	$	920
Liabilities:
Contingent consideration liability	$	—	$	—	$	566	$	566	$	—	$	—	$	615	$	615
Deferred compensation plan liability	—		54		—		54		—		56		—		56
Total liabilities measured at fair value	$	—	$	54	$	566	$	620	$	—	$	56	$	615	$	671

Schedule of Changes in Estimated Fair Value of Acquisition Related Contingent Consideration Liabilities

Changes in the estimated fair value of our contingent consideration liability during Q1 2022 were as follows:


In millions
Balance as of January 2, 2022	$	615



Change in estimated fair value	(49)

Balance as of April 3, 2022(1) (2)	$	566

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(1)As of April 3, 2022, $565 million was included in other long-term liabilities, with remaining balance included in accrued liabilities.

(2)Covered Revenues for Q4 2021 were $10 million, driven primarily by sales of GRAIL’s Galleri test. Covered Revenue Payments in Q1 2022 were approximately $97,000; however, pursuant to the Contingent Value Rights Agreement, the Covered Revenue Payments were applied to reimburse us for certain expenses