FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Assets and Liabilities Measured at Fair Value

The following table summarizes the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy:


	March 31, 2023								December 31, 2022
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale debt securities:
U.S. treasury securities	$	344	$	—	$	—	$	344	$	410	$	—	$	—	$	410
U.S. government agencies securities	—		155		—		155		—		35		—		35
Non-U.S. government securities	—		23		—		23		—		34		—		34
Certificates of deposit	—		90		—		90		—		54		—		54
Corporate debt securities	—		1,379		—		1,379		—		1,427		—		1,427
Residential mortgage and asset-backed securities	—		335		—		335		—		333		—		333
Equity securities:
Money market funds	3,175		—		—		3,175		3,831		—		—		3,831
Equity investment in Galapagos NV (“Galapagos”)	639		—		—		639		736		—		—		736
Equity investment in Arcus Biosciences, Inc. (“Arcus”)	252		—		—		252		286		—		—		286
Other publicly traded equity securities	235		—		—		235		175		—		—		175
Deferred compensation plan	249		—		—		249		220		—		—		220
Foreign currency derivative contracts	—		32		—		32		—		60		—		60
Total	$	4,895	$	2,014	$	—	$	6,909	$	5,658	$	1,943	$	—	$	7,600
Liabilities:
Liability for MYR GmbH (“MYR”) contingent consideration	$	—	$	—	$	277	$	277	$	—	$	—	$	275	$	275
Deferred compensation plan	249		—		—		249		220		—		—		220
Foreign currency derivative contracts	—		49		—		49		—		42		—		42
Total	$	249	$	49	$	277	$	575	$	220	$	42	$	275	$	538

Summary of Change in Fair Value of Contingent Consideration

The following table summarizes the change in fair value of our contingent consideration liability:


	Three Months Ended
	March 31,
(in millions)	2023		2022
Beginning balance	$	275	$	317
Changes in valuation assumptions(1)	(3)		10
Effect of foreign exchange remeasurement(2)	5		(6)
Ending balance	$	277	$	322

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(1) Included in Research and development expenses on our Condensed Consolidated Statements of Income. The change in 2023 primarily related to updated expected payment dates and the change in 2022 primarily related to updated probability rate estimates.

(2) Included in Other income (expense), net on our Condensed Consolidated Statements of Income.