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FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Recurring Fair Value Measurements
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:
March 31, 2025December 31, 2024
(in millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Equity securities:
Money market funds$6,255 $— $— $6,255 $8,502 $— $— $8,502 
Publicly traded equity securities(1)
1,189 — — 1,189 1,561 — — 1,561 
Deferred compensation plan340 — — 340 343 — — 343 
Foreign currency derivative contracts— 44 — 44 — 128 — 128 
Total$7,784 $44 $— $7,828 $10,405 $128 $— $10,533 
Liabilities:
Contingent consideration liability$— $— $216 $216 $— $— $206 $206 
Deferred compensation plan340 — — 340 343 — — 343 
Foreign currency derivative contracts— 28 — 28 — 3 — 3 
Total$340 $28 $216 $584 $343 $3 $206 $552 
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(1)    Publicly traded equity securities include our investments in Arcellx, Inc. (“Arcellx”) of $441 million and Galapagos NV (“Galapagos”) of $419 million as of March 31, 2025, which are subject to contractual sale restrictions. Our investment in Arcellx is restricted until June 2025, and our investment in Galapagos is currently restricted as described further in Note 6. Acquisitions, Collaborations and Other Arrangements.
Level 2 Inputs
Foreign Currency Derivative Contracts
Our foreign currency derivative contracts have maturities of 18 months or less and all are with counterparties that have a minimum credit rating of A- or equivalent by S&P Global Ratings, Moody’s Investors Service, Inc. or Fitch Ratings, Inc. We estimate the fair values of these contracts by utilizing an income-based industry standard valuation model for which all significant inputs are observable, either directly or indirectly. These inputs include foreign currency exchange rates, Secured Overnight Financing Rate (“SOFR”) and swap rates. These inputs, where applicable, are observable at commonly quoted intervals.
Level 3 Inputs
Contingent Consideration Liability
In connection with our first quarter 2021 acquisition of MYR GmbH, we are subject to a potential contingent consideration payment of up to €300 million, subject to customary adjustments, which is revalued each reporting period using probability-weighted scenarios for U.S. Food and Drug Administration (“FDA”) approval of Hepcludex until the related contingency is resolved.
The following table summarizes the change in fair value of our contingent consideration liability:
Three Months Ended
March 31,
(in millions)20252024
Beginning balance$206 $228 
Changes in valuation assumptions(1)
2 — 
Effect of foreign exchange remeasurement(2)
7 (6)
Ending balance(3)
$216 $222 
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(1)    Included in Research and development expenses on our Condensed Consolidated Statements of Operations.
(2)    Included in Other (income) expense, net on our Condensed Consolidated Statements of Operations.
(3)    Included in Other long-term liabilities on our Condensed Consolidated Balance Sheets.
Fair Value Level Transfers
There were no transfers between Level 1, Level 2 and Level 3 in the periods presented.
Nonrecurring Fair Value Measurements
During the three months ended March 31, 2024, we recorded a partial impairment charge of $2.4 billion related to certain acquired in-process research and development (“IPR&D”) assets. See Note 7. Intangible Assets for additional information.
Other Fair Value Disclosures
Senior Unsecured Notes
The following table summarizes the total estimated fair value and carrying value of our senior unsecured notes, determined using Level 2 inputs based on their quoted market values:
(in millions)March 31, 2025December 31, 2024
Fair value$21,886 $23,335 
Carrying value$23,816 $25,562 
Liability Related to Future Royalties
We recorded a liability related to future royalties as part of our 2020 acquisition of Immunomedics, Inc., which is subsequently amortized using the effective interest method over the remaining estimated life. The fair value of the liability related to future royalties, determined using Level 3 inputs, was approximately $0.9 billion as of March 31, 2025 and December 31, 2024, and the carrying value was $1.1 billion as of March 31, 2025 and December 31, 2024.