Financial assets and liabilities measured at fair value

12 Months Ended

Dec. 31, 2022

Financial assets and liabilities measured at fair value

Under IFRS 7 (Financial Instruments: Disclosures), fair value measurements must be classified using a fair value hierarchy with the following levels:

•level 1: quoted prices in active markets for identical assets or liabilities (without modification or repackaging);

•level 2: quoted prices in active markets for similar assets and liabilities, or valuation techniques in which all important inputs are derived from observable market data;

•level 3: valuation techniques in which not all important inputs are derived from observable market data.

The valuation techniques used are described in Note B.8.5.

The table below shows the balance sheet amounts of assets and liabilities measured at fair value.


		2022			2021			2020
		Level in the fair value hierarchy			Level in the fair value hierarchy			Level in the fair value hierarchy
(€ million)	Note	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Financial assets measured at fair value
Quoted equity investments	D.7.1.	387	—	—	396	—	—	439	—	—
Unquoted equity investments	D.7.1.	—	—	549	—	—	427	—	—	149
Quoted debt securities	D.7.2.	329	—	—	447	—	—	426	—	—
Unquoted debt securities not meeting the definition of equity instruments	D.7.3.	—	—	115	—	—	78	—	—	63
Contingent consideration relating to divestments	D.7.3.	—	—	303	—	—	378	—	—	483

Financial assets held to meet obligations under deferred compensation plans	D.7.3. and D.11.	512	—	—	549	—	—	454	—	—
Non-current derivatives	D.7.	—	—	—	—	3	—	—	24	—
Current derivatives	D.11.	—	206	—	—	295	—	—	58	—
Mutual fund investments	D.13.	9,537	—	—	5,057	—	—	8,703	—	—
Total financial assets measured at fair value		10,765	206	967	6,449	298	883	10,022	82	695
Financial liabilities measured at fair value

Bayer contingent purchase consideration arising from the acquisition of Genzyme	D.18.	—	—	26	—	—	59	—	—	104
MSD contingent consideration (European vaccines business)	D.18.	—	—	204	—	—	269	—	—	312
Shire contingent consideration arising from the acquisition of Translate Bio	D.18.	—	—	380	—	—	354	—	—	—
Contingent consideration arising from acquisition of Amunix	D.18.	—	—	165	—	—	—	—	—	—
Other contingent consideration arising from business combinations and acquisitions	D.18.	—	—	4	—	—	32	—	—	189

Non-current derivatives	D.19.	—	232	—	—	6	—	—	92	—
Current derivatives	D.19.5	—	94	—	—	79	—	—	205	—
Total financial liabilities measured at fair value		—	326	779	—	85	714	—	297	605

No transfers between the different levels of the fair value hierarchy occurred during 2022.