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Fair Value Measurements
 12 Months Ended
Dec. 31, 2023
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.
In 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.
In the second quarter 2023 we recorded $192 of contingent consideration related to the acquisition of Cerus described in Note 6.
There were no significant transfers into or out of any level of the fair value hierarchy in 2023.
Assets Measured at Fair Value
20232022
Cash and cash equivalents$2,971 $1,844 
Trading marketable securities209 166 
Level 1 - Assets$3,180 $2,010 
Available-for-sale marketable securities:
Corporate and asset-backed debt securities$43 $42 
Foreign government debt securities— 1 
United States agency debt securities4 3 
United States treasury debt securities31 36 
Certificates of deposit4 2 
Total available-for-sale marketable securities$82 $84 
Foreign currency exchange forward contracts116 119 
Level 2 - Assets$198 $203 
Total assets measured at fair value$3,378 $2,213 
Liabilities Measured at Fair Value
20232022
Deferred compensation arrangements$209 $166 
Level 1 - Liabilities$209 $166 
Foreign currency exchange forward contracts$97 $102 
Level 2 - Liabilities$97 $102 
Contingent consideration:
Beginning$121 $306 
Additions192 1 
Change in estimate and foreign exchange(2)(137)
Settlements(22)(49)
Ending$289 $121 
Level 3 - Liabilities$289 $121 
Total liabilities measured at fair value$595 $389 
Fair Value of Available for Sale Securities by Maturity
20232022
Due in one year or less$46 $53 
Due after one year through three years$36 $31 
On December 31, 2023 the aggregate difference between the cost and fair value of available-for-sale marketable securities was nominal. Interest income on cash and cash equivalents, short-term investments and marketable securities income was $75, $25 and $15 in 2023, 2022 and 2021, 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.