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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

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:

						September 30, 2025																								December 31, 2024
(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						$	757					$	—					$	—					$	757					$	—					$	—					$	—					$	—
U.S. government agencies securities						—						5						—						5						—						—						—						—
Corporate debt securities						—						963						—						963						—						—						—						—
Residential mortgage and asset-backed securities						—						300						—						300						—						—						—						—
Equity securities:
Money market funds						5,745						—						—						5,745						8,502						—						—						8,502
Publicly traded equity securities(1)						1,804						—						—						1,804						1,561						—						—						1,561
Deferred compensation plan						401						—						—						401						343						—						—						343
Foreign currency derivative contracts						—						31						—						31						—						128						—						128
Total						$	8,707					$	1,298					$	—					$	10,005					$	10,405					$	128					$	—					$	10,533
Liabilities:
Contingent consideration liability						$	—					$	—					$	274					$	274					$	—					$	—					$	206					$	206
Deferred compensation plan						401						—						—						401						343						—						—						343
Foreign currency derivative contracts						—						92						—						92						—						3						—						3
Total						$	401					$	92					$	274					$	767					$	343					$	3					$	206					$	552

_______________________________

(1)    Publicly traded equity securities include our investment in Galapagos NV (“Galapagos”) of $570 million and Assembly Biosciences, Inc. (“Assembly”) of $115 million as of September 30, 2025, which are subject to contractual sale restrictions. Our investment in Assembly is restricted until October 2025, and our investment in Galapagos is restricted until December 2025. For additional details on Galapagos, see Note 6. Acquisitions, Collaborations and Other Arrangements.

Summary of Change in Fair Value of Contingent Consideration Liability

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

						Three Months Ended												Nine Months Ended
						September 30,												September 30,
(in millions)						2025						2024						2025						2024
Beginning balance						$	271					$	208					$	206					$	228
Changes in valuation assumptions(1)						4						5						41						(6)
Effect of foreign exchange remeasurement(2)						—						9						27						1
Ending balance(3)						$	274					$	222					$	274					$	222

________________________________

(1)    Included in Research and development expenses on our Condensed Consolidated Statements of Operations. The changes for the nine months ended September 30, 2025 primarily related to changes in assumptions around probability.

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

(3)    Included in Other current liabilities and Other long-term liabilities on our Condensed Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024, respectively.

Summary of Total Estimated Fair Value and Carrying Value of 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)						September 30, 2025						December 31, 2024
Fair value						$	22,398					$	23,335
Carrying value						$	23,823					$	25,562

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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