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Acquisitions, Divestitures and Strategic Investments (Tables) | 9 Months Ended
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Sep. 30, 2024
Business Combinations [Abstract] |
Schedule of Business Acquisitions, by Acquisition | The preliminary purchase price was comprised of the amount presented below:
(in millions) | Silk Road Medical |  |
Payment for acquisition, net of cash acquired | $ | 1,126 |  |  |
| $ | 1,126 |  |  |
(in millions) | Acotec(1) | Apollo |  |
Payment for acquisition, net of cash acquired(2) | $ | 381 |  | $ | 636 |  |  |
| $ | 381 |  | $ | 636 |  |  |
(1) Excludes approximately $140 million of cash on hand at the closing of the transaction (2) Related to Acotec, represents our majority stake investment
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The final determination of the fair value of certain assets and liabilities will be completed within the measurement period in accordance with FASB ASC Topic 805.
(in millions) | Silk Road Medical |
Goodwill | $ | 563 |  |
Amortizable intangible assets | 507 |  |
Other assets acquired | 124 |  |
Liabilities assumed | (46) |  |
Net deferred tax liabilities | (22) |  |
| $ | 1,126 |  |
The final purchase price allocations were comprised of the components presented below, with the excess of the purchase price over the fair value of net assets acquired recorded to goodwill:
(in millions) | Acotec | Apollo |
Goodwill | $ | 337 |  | $ | 378 |  |
Amortizable intangible assets | 334 |  | 248 |  |
Other assets acquired | 93 |  | 50 |  |
Liabilities assumed | (48) |  | (33) |  |
Net deferred tax liabilities | (76) |  | (5) |  |
Fair value of noncontrolling interest | (259) |  | — |  |
| $ | 381 |  | $ | 636 |  |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | We allocated a portion of the purchase price to the specific intangible asset categories as follows:
| Amount Assigned (in millions) |  | Weighted Average Amortization Period (in years) |  | Risk-Adjusted Discount Rates used in Purchase Price Allocation
Amortizable intangible assets: |  |  |  |  |
Technology-related | $ | 447 |  |  | 12 |  | 13%
Customer relationships | 61 |  |  | 12 |  | 13%
| $ | 507 |  |  |  |  |
We allocated a portion of the purchase price to the specific intangible asset categories as follows:
| Amount Assigned (in millions) |  | Weighted Average Amortization Period (in years) |  | Risk-Adjusted Discount Rates used in Purchase Price Allocation
Acotec: |  |  |  |  |
Amortizable intangible assets: |  |  |  |  |
Technology-related | $ | 308 |  |  | 11 |  | 14%
Customer relationships | 15 |  |  | 11 |  | 14%
Other intangible assets | 11 |  |  | 13 |  | 14%
| $ | 334 |  |  |  |  |
Apollo: |  |  |  |  |
Amortizable intangible assets: |  |  |  |  |
Technology-related | $ | 222 |  |  | 11 |  | 12%
Customer relationships | 26 |  |  | 11 |  | 12%
| $ | 248 |  |  |  |  |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | Changes in the fair value of our contingent consideration liability during the first nine months of 2024 associated with prior period acquisitions were as follows:
(in millions) |
Balance as of December 31, 2023 | $ | 404 |
Amount recorded related to current year acquisitions | 29 |
Contingent consideration net expense (benefit) | (4) |
Contingent consideration payments and other adjustments | (258) |
Balance as of September 30, 2024 | $ | 171 |
Fair Value Measurement Inputs and Valuation Techniques | The recurring Level 3 fair value measurements of our contingent consideration liability that we expect to be required to settle include the following significant unobservable inputs:
Contingent Consideration Liability | Fair Value as of September 30, 2024 | Valuation Technique | Unobservable Input | Range | Weighted Average(1) |  |
Revenue-based Payments and Milestones | $171 million | Discounted Cash Flow | Discount Rate | 6% | - | 15% | 7% |  |
Probability of Payment | 90% | - | 100% | 98% |  |
Projected Year of Payment | 2025 | - | 2029 | 2027 |  |
(1) Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. For projected year of payment, the amount represents the median of the inputs and is not a weighted average.
Investment | The aggregate carrying amount of our strategic investments was comprised of the following:
| As of
(in millions) | September 30, 2024 |  | December 31, 2023
Equity method investments | $ | 256 |  |  | $ | 219 |
Measurement alternative investments(1, 2) | 276 |  |  | 194 |
| $ | 532 |  |  | $ | 413 |
(1) Measurement alternative investments are privately-held equity securities without readily determinable fair values that are measured at cost less impairment, if any, adjusted to fair value for any observable price changes in orderly transactions for the identical or a similar investment of the same issuer, recognized in Other, net within our accompanying unaudited consolidated statements of operations. (2) Includes publicly-held securities and convertible notes measured at fair value with changes in fair value recognized in Other, net within our accompanying unaudited consolidated statements of operations.

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