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Acquisitions and Strategic Investments (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]

Changes in the fair value of our contingent consideration liability were as follows:



(in millions)
Balance as of December 31, 2017	$	169
Amounts recorded related to current year acquisitions	248
Purchase price adjustments related to prior year acquisitions	(22		)
Contingent consideration expense (benefit)	(21		)
Contingent consideration payments	(28		)
Balance as of December 31, 2018	$	347
Amounts recorded related to current year acquisitions	127
Contingent consideration arrangements transferred to Varian	(16		)
Contingent consideration expense (benefit)	(35		)
Contingent consideration payments	(68		)
Balance as of December 31, 2019	$	354

Description of unobservable inputs used in Level 3 fair value measurements [Table Text Block]

The recurring Level 3 fair value measurements of our contingent consideration liability include the following significant unobservable inputs:



Contingent Consideration Liability	Fair Value as of December 31, 2019	Valuation Technique	Unobservable Input	Range				Weighted Average (1)
R&D, Regulatory and Commercialization-based Milestones	$198 million	Discounted Cash Flow	Discount Rate	2	%	-	3%	3%
			Probability of Payment	40	%	-	90%	82%
			Projected Year of Payment	2020		-	2027	2021
Revenue-based Payments	$156 million	Discounted Cash Flow	Discount Rate	11	%	-	15%	13%
			Probability of Payment	60	%	-	100%	99%
			Projected Year of Payment	2020		-	2026	2021


(1)	Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. For projected year of payment, the amount represents the median of the inputs and is not a weighted average.

Investment [Table Text Block]

The aggregate carrying amount of our strategic investments was comprised of the following:



	As of December 31,
(in millions)	2019		2018
Equity method investments	$	264	$	303
Measurement alternative investments⁽¹⁾	171		94
Publicly-held securities⁽²⁾	1		—
Notes receivable	23		26
	$	458	$	424


(1)	Measurement alternative investments are privately-held equity securities without readily determinable fair values that are measured at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

(2)

Publicly-held equity securities are measured at fair value with changes in fair value recognized currently in Other, net on our accompanying consolidated statements of operations.

2017 Acquisitions [Member]

Business Acquisition [Line Items]

Business Combination, Components of Purchase Price [Table Text Block]

The components of the aggregate purchase prices were as follows for our 2017 acquisitions:



(in millions)
Payment for acquisitions, net of cash acquired	$	560
Fair value of contingent consideration	72
	$	632

Business Combination, Purchase Price Allocation Schedule [Table Text Block]

The following summarizes the aggregate purchase price allocations for our 2017 acquisitions:



(in millions)
Goodwill	$	287
Amortizable intangible assets	278
Indefinite-lived intangible assets	186
Other assets acquired	44
Liabilities assumed	(61		)
Deferred tax liabilities	(102		)
	$	632

Business Acquisition, Purchase Price Allocation, Intangible Assets, Description

We allocated a portion of the purchase prices to specific intangible asset categories as follows:



	Amount Assigned (in millions)		Amortization Period (in years)			Risk-Adjusted Discount Rates used in Purchase Price Allocation
Amortizable intangible assets
Technology-related	$	268	13			24%
Other intangible assets	10		2	-	13	24%
Indefinite-lived intangible assets
In-process research and development	$	186	n/a			15%
	$	464

2019 Acquisitions [Member]

Business Acquisition [Line Items]

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

We allocated a portion of the preliminary purchase prices of our acquisitions of Vertiflex and Millipede, presented in aggregate, to the specific intangible asset categories as follows:



	Amount Assigned (in millions)		Amortization Period (in years)	Risk-Adjusted Discount Rates used in Purchase Price Allocation
Amortizable intangible assets:
Technology-related	$	210	12	15%
Other intangible assets	10		12	15%
Indefinite-lived intangible assets:
In-process research and development	240		n/a	19%
	$	461

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The preliminary purchase prices of our acquisitions of Vertiflex and Millipede, presented in aggregate, were comprised of the following components as of December 31, 2019:



(in millions)
Payments for acquisitions, net of cash acquired	$	763
Fair value of contingent consideration	127
Fair value of prior interests	102
	$	992

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The preliminary purchase price allocations of our acquisitions of Vertiflex and Millipede, presented in aggregate, were comprised of the following components as of December 31, 2019:



(in millions)
Goodwill	$	575
Amortizable intangible assets	220
Indefinite-lived intangible assets	240
Other assets acquired	24
Liabilities assumed	(12		)
Net deferred tax liabilities	(56		)
	$	992

BTG Acquisition [Member]

Business Acquisition [Line Items]

Business Acquisition, Pro Forma Information [Table Text Block]



	Year Ended December 31,
(in millions, except per share data) (Unaudited)	2019		2018
Net sales	$	11,142	$	10,429
Net income (loss)	$	4,585	$	1,244
Net income (loss) per common share — basic	$	3.30	$	0.90
Net income (loss) per common share — assuming dilution	$	3.25	$	0.89

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

We allocated a portion of the preliminary purchase price for our acquisition of BTG to specific intangible asset categories as follows:



	Amount Assigned (in millions)		Amortization Period (in years)			Risk-Adjusted Discount Rates used in Purchase Price Allocation
Amortizable intangible assets:
Technology-related	$	1,709	10	-	18	11	%	-	12%
Other intangible assets	75		2	-	11	11%
	$	1,785

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The preliminary purchase price of BTG, was comprised of the following components as of December 31, 2019:



(in millions)
Payment for acquisition, net of cash acquired	$	3,619

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following summarizes the preliminary purchase price allocation for our acquisition of BTG as of December 31, 2019:



(in millions)
Goodwill	$	1,644
Trade accounts receivable, net	108
Inventories	232
Other current assets	252
Other intangible assets, net	1,785
Other long-term assets	537
Accrued expenses and other current liabilities	(308		)
Other long-term liabilities	(274		)
Deferred tax liability	(358		)
	$	3,619

2018 Acquisitions [Member]

Business Acquisition [Line Items]

Business Combination, Components of Purchase Price [Table Text Block]

The components of the aggregate purchase prices are as follows for our 2018 acquisitions as of December 31, 2019:



(in millions)
Payments for acquisitions, net of cash acquired	$	1,449
Fair value of contingent consideration	248
Fair value of prior interests	251
	$	1,948

Business Combination, Purchase Price Allocation Schedule [Table Text Block]

The following summarizes the purchase price allocations for our 2018 acquisitions as of December 31, 2019:



(in millions)
Goodwill	$	939
Amortizable intangible assets	939
In-process research and development	213
Other assets acquired	38
Liabilities assumed	(19		)
Net deferred tax liabilities	(162		)
	$	1,948

Business Acquisition, Purchase Price Allocation, Intangible Assets, Description

We allocated a portion of the purchase prices to specific intangible asset categories as follows:



	Amount Assigned (in millions)		Amortization Period (in years)			Risk-Adjusted Discount Rates used in Purchase Price Allocation
Amortizable intangible assets
Technology-related	$	908	6	-	14	14	%	-	23%
Other intangible assets	31		6	-	13	13	%	-	15%
Indefinite-lived intangible assets
In-process research and development	213		n/a			15%
	$	1,153