Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

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

The following tables summarize the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy (in millions):


Fair value measurement as of September 30, 2023	Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	110	$	—	$	—	$	110
U.S. treasury securities	—		245		—		245
Corporate securities and commercial paper	—		491		—		491
U.S. government agency obligations	—		96		—		96
Certificate of deposit	—		8		—		8
Total assets measured at fair value	$	110	$	840	$	—	$	950
Liabilities
Liability for sale of future royalties	$	—	$	—	$	19	$	19
Total liabilities measured at fair value	$	—	$	—	$	19	$	19


Fair value measurement as of December 31, 2022	Level 1		Level 2		Level 3		Total
Assets
Money market funds	$	169	$	—	$	—	$	169
U.S. treasury securities	—		314		—		314
Corporate securities and commercial paper	—		631		—		631
U.S. government agency securities	—		20		—		20
Certificate of deposit	—		4		—		4
Total assets measured at fair value	$	169	$	969	$	—	$	1,138
Liabilities
Liability for sale of future royalties	$	—	$	—	$	17	$	17
Total liabilities measured at fair value	$	—	$	—	$	17	$	17

Summary of Changes of Liabilities for Sale of Future Royalties

The liability for sale of future royalties is reported in Other noncurrent liabilities in the Condensed Consolidated Balance Sheets and changes were as follows (in millions):


	Nine Months Ended September 30,
	2023		2022
Beginning balance	$	17	$	5
Cash received	—		5
Interest accretion	2		2
Ending balance	$	19	$	12