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FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended
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Mar. 31, 2023
Fair Value Disclosures [Abstract] |
Assets and liabilities measured at fair value on a recurring basis | The following tables summarize assets and liabilities measured at fair value on a recurring basis (in millions):
March 31, 2023 | Level 1 | Level 2 | Level 3 |  | Other 3 | Netting Adjustment | 4 | Fair Value Measurements |
Assets: |  |  |  |  |  |  |  |  |
Equity securities with readily determinable values 1 | $ | 1,742 |  | $ | 175 |  | $ | 8 |  |  | $ | 83 |  | $ | — |  |  | $ | 2,008 |  |
Debt securities 1 | — |  | 1,026 |  | 16 |  |  | — |  | — |  |  | 1,042 |  |
Derivatives 2 | — |  | 239 |  | — |  |  | — |  | (205) |  | 6 | 34 |  | 8
Total assets | $ | 1,742 |  | $ | 1,440 |  | $ | 24 |  |  | $ | 83 |  | $ | (205) |  |  | $ | 3,084 |  |
Liabilities: |  |  |  |  |  |  |  |  |
Contingent consideration liability | $ | — |  | $ | — |  | $ | 1,377 |  | 5 | $ | — |  | $ | — |  |  | $ | 1,377 |  |
Derivatives 2 | 1 |  | 1,787 |  | — |  |  | — |  | (1,611) |  | 7 | 177 |  | 8
Total liabilities | $ | 1 |  | $ | 1,787 |  | $ | 1,377 |  |  | $ | — |  | $ | (1,611) |  |  | $ | 1,554 |  |
1 Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities. 2 Refer to Note 6 for additional information related to the composition of our derivatives portfolio. 3 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 4. 4 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties. There were no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. Refer to Note 6. 5 Represents the fair value of the remaining milestone payment related to our acquisition of fairlife in 2020, which is contingent on fairlife achieving certain financial targets through 2024 and, if achieved, is payable in 2025. This milestone payment is based on agreed-upon formulas related to fairlife’s operating results, the resulting value of which is not subject to a ceiling. The fair value was determined using a Monte Carlo valuation model. The Company made a milestone payment of $275 million during the three months ended March 31, 2023. 6 The Company is not obligated to return any cash collateral it has netted against its derivative position. 7 The Company has the right to reclaim $1,406 million in cash collateral it has netted against its derivative position. 8 The Company’s derivative financial instruments were recorded at fair value in our consolidated balance sheet as follows: $34 million in the line item other noncurrent assets and $177 million in the line item other noncurrent liabilities. Refer to Note 6 for additional information related to the composition of our derivatives portfolio.
December 31, 2022 | Level 1 | Level 2 | Level 3 |  | Other 3 | Netting Adjustment | 4 | Fair Value Measurements |
Assets: |  |  |  |  |  |  |  |  |
Equity securities with readily determinable values 1 | $ | 1,801 |  | $ | 169 |  | $ | 15 |  |  | $ | 85 |  | $ | — |  |  | $ | 2,070 |  |
Debt securities 1 | — |  | 975 |  | 8 |  |  | — |  | — |  |  | 983 |  |
Derivatives 2 | 2 |  | 239 |  | — |  |  | — |  | (227) |  | 6 | 14 |  | 8
Total assets | $ | 1,803 |  | $ | 1,383 |  | $ | 23 |  |  | $ | 85 |  | $ | (227) |  |  | $ | 3,067 |  |
Liabilities: |  |  |  |  |  |  |  |  |
Contingent consideration liability | $ | — |  | $ | — |  | $ | 1,590 |  | 5 | $ | — |  | $ | — |  |  | $ | 1,590 |  |
Derivatives 2 | 4 |  | 1,962 |  | — |  |  | — |  | (1,678) |  | 7 | 288 |  | 8
Total liabilities | $ | 4 |  | $ | 1,962 |  | $ | 1,590 |  |  | $ | — |  | $ | (1,678) |  |  | $ | 1,878 |  |
1 Refer to Note 4 for additional information related to the composition of our equity securities with readily determinable values and debt securities. 2 Refer to Note 6 for additional information related to the composition of our derivatives portfolio. 3 Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy but are included to reconcile to the amounts presented in Note 4. 4 Amounts represent the impact of legally enforceable master netting agreements that allow the Company to settle net positive and negative positions and also cash collateral held or placed with the same counterparties. There were no amounts subject to legally enforceable master netting agreements that management has chosen not to offset or that do not meet the offsetting requirements. Refer to Note 6. 5 Represents the fair value of future milestone payments related to our acquisition of fairlife in 2020, which are contingent on fairlife achieving certain financial targets through 2024 and, if achieved, are payable in 2023 and 2025. These milestone payments are based on agreed-upon formulas related to fairlife’s operating results, the resulting values of which are not subject to a ceiling. The fair value was determined using a Monte Carlo valuation model. 6 The Company was not obligated to return any cash collateral it had netted against its derivative position. 7 The Company had the right to reclaim $1,447 million in cash collateral it had netted against its derivative position. 8 The Company’s derivative financial instruments were recorded at fair value in our consolidated balance sheet as follows: $14 million in the line item other noncurrent assets and $288 million in the line item other noncurrent liabilities. Refer to Note 6 for additional information related to the composition of our derivatives portfolio.

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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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