Fair value measurement (Tables)

9 Months Ended

Sep. 30, 2022

Fair value of each major class of financial assets and liabilities measured at fair value on a recurring basis

The fair values of each major class of the Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows (in millions):


	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)

Fair value measurement as of September 30, 2022, using:							Total
Assets:
Available-for-sale securities:
U.S. Treasury notes	$	—	$	—	$	—	$	—
U.S. Treasury bills	1,976		—		—		1,976









Money market mutual funds	8,945		—		—		8,945
Other short-term interest-bearing securities	—		—		—		—
Other investments	—		135		—		135
Equity securities	385		—		382		767
Derivatives:
Foreign currency contracts	—		639		—		639
Cross-currency swap contracts	—		6		—		6
Interest rate swap contracts	—		—		—		—

Total assets	$	11,306	$	780	$	382	$	12,468

Liabilities:
Derivatives:
Foreign currency contracts	$	—	$	22	$	—	$	22
Cross-currency swap contracts	—		754		—		754
Interest rate swap contracts	—		810		—		810
Contingent consideration obligations	—		—		302		302
Total liabilities	$	—	$	1,586	$	302	$	1,888


	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)

Fair value measurement as of December 31, 2021, using:							Total
Assets:
Available-for-sale securities:
U.S. Treasury notes	$	47	$	—	$	—	$	47
U.S. Treasury bills	1,400		—		—		1,400









Money market mutual funds	5,856		—		—		5,856
Other short-term interest-bearing securities	—		1		—		1
Other investments	—		—		—		—
Equity securities	611		—		220		831
Derivatives:
Foreign currency contracts	—		183		—		183
Cross-currency swap contracts	—		66		—		66
Interest rate swap contracts	—		16		—		16
Total assets	$	7,914	$	266	$	220	$	8,400

Liabilities:
Derivatives:
Foreign currency contracts	$	—	$	39	$	—	$	39
Cross-currency swap contracts	—		339		—		339
Interest rate swap contracts	—		156		—		156
Contingent consideration obligations	—		—		342		342
Total liabilities	$	—	$	534	$	342	$	876

Schedule of Business Acquisitions by Acquisition, Contingent Consideration

Changes in the carrying amounts of contingent consideration obligations were as follows (in millions):


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Beginning balance	$	310	$	48	$	342	$	33

Payments	(2)		(2)		(5)		(5)
Net changes in valuations	(6)		(11)		(35)		7
Ending balance	$	302	$	35	$	302	$	35