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Fair Value Measurements
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets and liabilities carried at fair value are classified in their entirety based on the lowest level of input and disclosed in one of the following three categories:
Level 1Quoted market prices in active markets for identical assets or liabilities.
Level 2Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3Unobservable inputs reflecting our assumptions or external inputs from active markets.
Use of observable market data, when available, is required in making fair value measurements. When inputs used fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement. We determine fair value for Level 1 instruments using exchange-traded prices for identical instruments. We determine fair value of Level 2 instruments using exchange-traded prices of similar instruments, where available, or utilizing other observable inputs that take into account our credit risk and that of our counterparties. Foreign currency exchange contracts and interest rate hedges, when outstanding, are included in Level 2 and are primarily valued using standard calculations and models that use readily observable market data as their basis. Our Level 3 liabilities are comprised of contingent consideration arising from recently completed acquisitions. We determine fair value of these Level 3 liabilities using a discounted cash flow technique. Significant unobservable inputs were used in our assessment of fair value, including assumptions regarding future business results, discount rates, discount periods and probability assessments based on the likelihood of reaching various targets. We remeasure the fair value of our assets and liabilities each reporting period. We record the changes in fair value within selling, general and administrative expense.
During the third quarter 2022 we determined that certain commercial and regulatory milestones related to technology acquired in the purchase of Mobius Imaging and Cardan Robotics were no longer probable of being achieved and recorded a $110 reduction in the fair value of contingent consideration reflected in selling, general and administrative expenses.
Assets Measured at Fair Value
20222021
Cash and cash equivalents$1,844 $2,944 
Trading marketable securities166 193 
Level 1 - Assets$2,010 $3,137 
Available-for-sale marketable securities:
Corporate and asset-backed debt securities$42 $48 
Foreign government debt securities1 2 
United States agency debt securities3 5 
United States treasury debt securities36 19 
Certificates of deposit2 1 
Total available-for-sale marketable securities$84 $75 
Foreign currency exchange forward contracts119 212 
Level 2 - Assets$203 $287 
Total assets measured at fair value$2,213 $3,424 
Liabilities Measured at Fair Value
20222021
Deferred compensation arrangements$166 $193 
Level 1 - Liabilities$166 $193 
Foreign currency exchange forward contracts$102 $17 
Level 2 - Liabilities$102 $17 
Contingent consideration:
Beginning$306 $393 
Additions1 62 
Change in estimate (137)(1)
Settlements(49)(148)
Ending$121 $306 
Level 3 - Liabilities$121 $306 
Total liabilities measured at fair value$389 $516 
Fair Value of Available for Sale Securities by Maturity
20222021
Due in one year or less$53 $36 
Due after one year through three years$31 $39 
On December 31, 2022 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest and marketable securities income was $94, $68 and $102 in 2022, 2021 and 2020, which was recorded in other income (expense), net.
Our investments in available-for-sale marketable securities had a minimum credit quality rating of A2 (Moody's), A (Standard & Poor's) and A (Fitch). We do not plan to sell the investments, and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis, which may be maturity.