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Acquisitions and Strategic Investments (Tables)
 12 Months Ended
Dec. 31, 2023
Business Combinations [Abstract]  
Schedule of Business Acquisitions, by Acquisition
We accounted for these transactions as business combinations in accordance with FASB ASC Topic 805, Business Combinations (FASB ASC Topic 805). The preliminary purchase prices were comprised of the amounts presented below:

(in millions)
Acotec(1)
ApolloRelievant
Payment for acquisition, net of cash acquired (2)
$381 $636 $794 
Fair value of contingent consideration— — 273 
$381 $636 $1,067 
(1) Excludes approximately $140 million of cash on hand at the closing of the transaction
(2) Related to Acotec, represents our majority stake investment
We accounted for the acquisition of Baylis Medical as a business combination in accordance with FASB ASC Topic 805. The final purchase price was comprised of the amount presented below:

(in millions)
Payment for acquisition, net of cash acquired$1,463 
$1,463 
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed The preliminary purchase price allocations were comprised of the components presented below, which represent the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed, as well as goodwill. The final determination of the fair value of certain assets and liabilities will be completed within the measurement period in accordance with FASB ASC Topic 805:
(in millions)AcotecApolloRelievant
Goodwill$337 $378 $731 
Amortizable intangible assets334 248 325 
Other assets acquired93 50 24 
Liabilities assumed(48)(33)(15)
Net deferred tax liabilities(76)(5)1 
Fair value of noncontrolling interest(259)— — 
$381 $636 $1,067 
We recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date. The final purchase price allocation was comprised of the following components:

(in millions)
Goodwill$988 
Amortizable intangible assets657 
Other assets acquired112 
Liabilities assumed(287)
Net deferred tax liabilities(7)
$1,463 
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination
We allocated a portion of the purchase price to the specific intangible asset categories as follows:

Amount Assigned
(in millions)
Weighted Average Amortization Period
(in years)
Risk-Adjusted Discount
Rates used in Purchase Price Allocation
Acotec:
Amortizable intangible assets:
Technology-related$308 1114%
Customer relationships15 1114%
Other intangible assets11 1314%
$334 
Apollo:
Amortizable intangible assets:
Technology-related$222 1112%
Customer relationships26 1112%
$248 
Relievant
Amortizable intangible assets:
Technology-related$287 1212%
Customer relationships38 1212%
$325 
We allocated a portion of the purchase price to the specific intangible asset categories as follows:

Amount Assigned
(in millions)
Weighted Average Amortization Period
(in years)
Risk-Adjusted Discount
Rates used in Purchase Price Allocation
Amortizable intangible assets:
Technology-related622 1111%
Other intangible assets36 1111%
$657 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Changes in the fair value of our contingent consideration liability during 2023 and 2022 associated with current and prior period acquisitions were as follows:
(in millions)
Balance as of December 31, 2021$486 
Contingent consideration net expense (benefit)35 
Contingent consideration payments(371)
Balance as of December 31, 2022$149 
Amount recorded related to current year acquisitions273 
Contingent consideration net expense (benefit)58 
Contingent consideration payments(76)
Balance as of December 31, 2023$404 
Fair Value Measurement Inputs and Valuation Techniques
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 LiabilityFair Value as of December 31, 2023Valuation TechniqueUnobservable InputRange
Weighted Average(1)
Revenue-based Payments and Milestones$404 millionDiscounted Cash FlowDiscount Rate6 %-12%10%
Probability of Payment90%-100%98%
Projected Year of Payment2024-20272025
(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
The aggregate carrying amount of our strategic investments was comprised of the following:
As of December 31,
(in millions)20232022
Equity method investments$219 $188 
Measurement alternative investments(1, 2)
194 219 
$413 $407 
(1) Measurement alternative investments are privately-held equity securities without readily determinable fair values that are measured at cost less impairment, if any, adjusted to fair value for any observable price changes in orderly transactions for the identical or a similar investment of the same issuer, recognized in Other, net within our accompanying consolidated statements of operations.
(2) Includes publicly-held equity securities and convertible notes measured at fair value with changes in fair value recognized in Other, net within our consolidated statements of operations.