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Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
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 2024 we recorded $208 of contingent consideration related to various acquisitions described in Note 6.
In 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 2024.
Assets Measured at Fair Value
20242023
Cash and cash equivalents$3,652 $2,971 
Short-term investments750 — 
Trading marketable securities259 209 
Level 1 - Assets$4,661 $3,180 
Available-for-sale marketable securities:
Corporate and asset-backed debt securities$53 $43 
United States agency debt securities1 4 
United States treasury debt securities34 31 
Certificates of deposit3 4 
Total available-for-sale marketable securities$91 $82 
Foreign currency exchange forward contracts225 116 
Level 2 - Assets$316 $198 
Total assets measured at fair value$4,977 $3,378 
Liabilities Measured at Fair Value
20242023
Deferred compensation arrangements$259 $209 
Level 1 - Liabilities$259 $209 
Foreign currency exchange forward contracts$77 $97 
Level 2 - Liabilities$77 $97 
Contingent consideration:
Beginning$289 $121 
Additions208 192 
Change in estimate and foreign exchange8 (2)
Settlements(53)(22)
Ending$452 $289 
Level 3 - Liabilities$452 $289 
Total liabilities measured at fair value$788 $595 
Fair Value of Available for Sale Securities by Maturity
20242023
Due in one year or less$47 $46 
Due after one year through three years$44 $36 
On December 31, 2024 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 $139, $75 and $25 in 2024, 2023 and 2022, 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.