Contingent Consideration (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

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



(in millions)
Balance as of December 31, 2019	$	354
Contingent consideration expense (benefit)	(108		)
Contingent consideration payments	(28		)
Balance as of March 31, 2020	$	218

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

The recurring Level 3 fair value measurements of our contingent consideration liability that we expect to be required to settle include the following significant unobservable inputs:



Contingent Consideration Liability	Fair Value as of March 31, 2020	Valuation Technique	Unobservable Input	Range				Weighted Average (1)
R&D, Regulatory and Commercialization-based Milestones	$96 million	Discounted Cash Flow	Discount Rate	3	%	-	3%	3%
			Probability of Payment	90%				90%
			Projected Year of Payment	2020		-	2027	2024
Revenue-based Payments	$121 million	Discounted Cash Flow	Discount Rate	11	%	-	14%	13%
			Probability of Payment	100%				100%
			Projected Year of Payment	2020		-	2024	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.