XML 82 R70.htm IDEA: XBRL DOCUMENT v3.24.3
Financial Instruments - Summary of Contingent Consideration Liability (Details) - Contingent Consideration - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Contingent Consideration Liability Activity [Roll Forward]        
Liability at beginning of period $ 661 $ 567 $ 680 $ 642
Changes in fair value [1] (350) 35 (315) 50
Payments (93) 0 (147) (90)
Liability at end of period $ 218 $ 602 $ 218 $ 602
[1] In connection with the Clif Bar acquisition, we entered into a contingent consideration arrangement that may require us to pay additional consideration to the sellers for achieving certain net revenue, gross profit and EBITDA targets in 2025 and 2026 that exceed our base financial projections for the business implied in the upfront purchase price. The contingent consideration liabilities are recorded at fair value within long-term liabilities. The estimated fair value of the contingent consideration obligation is determined using a Monte Carlo simulation. Significant assumptions used in assessing the fair value of the liability include financial projections for net revenue, gross profit, and EBITDA, as well as discount and volatility rates. Fair value adjustments are primarily recorded in selling, general and administrative expenses in the condensed consolidated statement of earnings. During the three months ended September 30, 2024, the expected forecast for 2025 and 2026 has been updated to reflect recent trends in business performance and market outlook which resulted in a reduction in the fair value of the contingent consideration.