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FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
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:
June 30, 2026December 31, 2025
(in millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Available-for-sale debt securities(1):
U.S. treasury securities$— $— $— $— $1,224 $— $— $1,224 
U.S. government agencies securities— — — — — 15 — 15 
Corporate debt securities— — — — — 1,398 — 1,398 
Residential mortgage and asset-backed securities— — — — — 407 — 407 
Equity securities:
Money market funds1,563 — — 1,563 6,150 — — 6,150 
Publicly traded equity securities1,676 — — 1,676 1,961 — — 1,961 
Deferred compensation plan458 — — 458 406 — — 406 
Foreign currency derivative contracts— 82 — 82 — 56 — 56 
Total$3,697 $82 $— $3,779 $9,741 $1,875 $— $11,616 
Liabilities:
Contingent consideration liability$— $— $60 $60 $— $— $278 $278 
Deferred compensation plan458 — — 458 406 — — 406 
Foreign currency derivative contracts— 18 — 18 — 72 — 72 
Total$458 $18 $60 $535 $406 $72 $278 $757 
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(1)    During 2026, we sold all of our available-for-sale debt securities and used the proceeds to partially fund our acquisitions discussed in Note 6. Acquisitions, Collaborations and Other Arrangements.
Level 2 Inputs
Available-for-Sale Debt Securities
For our available-for-sale debt securities, we estimate the fair values by reviewing trading activity and pricing as of the measurement date and by taking into consideration valuations obtained from third-party pricing services. The pricing services utilize industry standard valuation models, including both income-based and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate the fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable 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
MYR Contingent Consideration Liability
In connection with our first quarter 2021 acquisition of MYR GmbH (“MYR”), we were subject to a contingent consideration payment of up to €300 million, subject to customary adjustments, which we revalued each reporting period using probability-weighted scenarios for U.S. Food and Drug Administration (“FDA”) approval of bulevirtide. In May 2026, FDA granted accelerated approval of Hepcludex (bulevirtide), and we subsequently paid a majority of the contingent consideration, which was reflected in financing activities in our Condensed Consolidated Statements of Cash Flows, with the remaining amount expected to be paid during the third quarter of 2026.
The following table summarizes the changes in fair value of our MYR contingent consideration liability:
Three Months EndedSix Months Ended
June 30,June 30,
(in millions)2026202520262025
Beginning balance$275 $216 $278 $206 
Changes in valuation assumptions(1)
72 35 74 37 
Effect of foreign exchange remeasurement(2)
1 20 (5)27 
Payments(288)— (288)— 
Ending balance(3)
$60 $271 $60 $271 
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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 current liabilities on our Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025.
Fair Value Level Transfers
There were no transfers between Level 1, Level 2 and Level 3 in the periods presented.
Nonrecurring Fair Value Measurements
In connection with our second quarter 2026 acquisition of Ouro Medicines, LLC (“Ouro Medicines”), we are subject to potential contingent consideration payments of up to $500 million for the achievement of certain development and regulatory milestones, for which we recorded a liability with an initial fair value of $277 million. See Note 6. Acquisitions, Collaborations and Other Arrangements for additional information.
During the three and six months ended June 30, 2026 and 2025, we recorded impairment charges of $1.75 billion and $190 million, respectively, both 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)June 30, 2026December 31, 2025
Fair value$22,262 $22,342 
Carrying value$24,069 $23,827 
Term Loan Facility
As of June 30, 2026, the fair value of our term loan, determined using Level 3 inputs, was approximately $1.1 billion and the carrying value was $1.1 billion.
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 $0.7 billion and $0.8 billion as of June 30, 2026 and December 31, 2025, respectively, and the carrying value was $1.1 billion as of June 30, 2026 and December 31, 2025.