Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Summary of Assets and Liabilities Measured at Fair Value

The following table summarizes the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy:


	December 31, 2022								December 31, 2021
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Available-for-sale debt securities:
U.S. treasury securities	$	410	$	—	$	—	$	410	$	407	$	—	$	—	$	407
U.S. government agencies securities	—		35		—		35		—		4		—		4
Non-U.S. government securities	—		34		—		34		—		50		—		50
Certificates of deposit	—		54		—		54		—		249		—		249
Corporate debt securities	—		1,427		—		1,427		—		1,363		—		1,363
Residential mortgage and asset-backed securities	—		333		—		333		—		424		—		424
Equity securities:
Money market funds	3,831		—		—		3,831		3,661		—		—		3,661
Equity investment in Galapagos NV (“Galapagos”)(1)	736		—		—		736		931		—		—		931
Equity investment in Arcus Biosciences, Inc. (“Arcus”)(1)	286		—		—		286		559		—		—		559
Other publicly traded equity securities	175		—		—		175		331		—		—		331
Deferred compensation plan	220		—		—		220		261		—		—		261
Foreign currency derivative contracts	—		60		—		60		—		80		—		80
Total	$	5,658	$	1,943	$	—	$	7,600	$	6,150	$	2,170	$	—	$	8,320
Liabilities:
Liability for MYR GmbH (“MYR”) contingent consideration	$	—	$	—	$	275	$	275	$	—	$	—	$	317	$	317
Deferred compensation plan	220		—		—		220		261		—		—		261
Foreign currency derivative contracts	—		42		—		42		—		5		—		5
Total	$	220	$	42	$	275	$	538	$	261	$	5	$	317	$	583

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(1) See Note 10. Collaborations and Other Arrangements for additional information.

Summary of Change in Fair Value of Contingent Consideration

The following table summarizes the change in fair value of our contingent consideration:


	Year Ended December 31,
(in millions)	2022		2021
Beginning balance	$	317	$	—
Additions	—		341
Changes in valuation assumptions(1)	(21)		(1)
Effect of foreign exchange remeasurement(2)	(21)		(23)
Ending balance	$	275	$	317

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(1) Included in Research and development expenses on our Consolidated Statements of Income and primarily related to increasing discount rates and updated probability rate estimates.

(2) Included in Other income (expense), net on our Consolidated Statements of Income.