Acquisitions, Divestitures and Strategic Investments (Tables)

3 Months Ended

Mar. 31, 2025

Business Combination [Abstract]

Business Combination

The preliminary purchase price was comprised of the amount presented below:

(in millions)	Cortex
Payment for acquisition, net of cash acquired	$	239
Fair value of contingent consideration	38
	$	277

Business Combination, Recognized Asset Acquired and Liability Assumed

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)	Cortex
Goodwill	$	205
Amortizable intangible assets	69
Other assets acquired	1
Net deferred tax assets	11
Liabilities assumed	(10)
	$	277

Business Combination, Intangible Asset, Acquired, Finite-Lived and Indefinite-Lived

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-related	$	69	13	18%
	$	69

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

Changes in the fair value of our contingent consideration liability during the first quarter of 2025 associated with prior period acquisitions were as follows:

(in millions)
Balance as of December 31, 2024	$	171
Amount recorded related to current year acquisitions	38
Contingent consideration net expense (benefit)	5
Balance as of March 31, 2025	$	214

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 Liability	Fair Value as of March 31, 2025	Valuation Technique	Unobservable Input	Range			Weighted Average(1)
Revenue-based Payments and Commercialization Milestones	$176 million	Discounted Cash Flow	Discount Rate	6%	-	15%	7%
			Probability of Payment	40%	-	100%	96%
			Projected Year of Payment	2025	-	2029	2027
Clinical-based and Other Milestones	$38 million	Discounted Cash Flow	Discount Rate	5%			5%
			Probability of Payment	81%			81%
			Projected Year of Payment	2026			2026

(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
(in millions)	March 31, 2025		December 31, 2024
Equity method investments	$	358	$	278
Measurement alternative investments(1, 2)	297		277
	$	655	$	555

(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 unaudited consolidated statements of operations.

(2) Includes publicly-held equity securities measured at fair value with changes in fair value recognized in Other, net within our accompanying unaudited consolidated statements of operations.