Acquisitions and Strategic Investments (Tables)

6 Months Ended

Jun. 30, 2016

The components of the aggregate purchase price are as follows (in millions):



Cash, net of cash acquired	$	63
Fair value of contingent consideration	31
	$	94

Changes in the fair value of our contingent consideration liabilities were as follows (in millions):



Balance as of December 31, 2015	$	246
Other amounts recorded related to prior acquisitions	1
Fair value adjustments	37
Contingent payments related to prior period acquisitions	(77		)
Balance as of June 30, 2016	$	207

The recurring Level 3 fair value measurements of our contingent consideration liabilities include the following significant unobservable inputs:



Contingent Consideration Liabilities	Fair Value as of June 30, 2016	Valuation Technique	Unobservable Input	Range
R&D, regulatory and commercialization-based Milestones	$17 million	Discounted Cash Flow	Discount Rate	2.0% - 2.9%
			Probability of Payment	0% - 64%
			Projected Year of Payment	2018 - 2021
Revenue-based Payments	$41 million	Discounted Cash Flow	Discount Rate	14% - 15%
	$41 million	Discounted Cash Flow	Projected Year of Payment	2017 - 2020
	$149 million	Monte Carlo	Revenue Volatility	20%
			Risk Free Rate	LIBOR Term Structure & Cost of Debt Structure
			Projected Year of Payment	2016 - 2022

The following summarizes the aggregate purchase price allocation for the 2015 acquisition as of June 30, 2015 (in millions):



Goodwill	$	30
Amortizable intangible assets	68
Inventory	1
Other net assets	2
Deferred income taxes	(7		)
	$	94

We allocated a portion of the purchase price to specific intangible asset categories as follows:



	Amount Assigned (in millions)		Weighted Average Amortization Period (in years)	Range of Risk- Adjusted Discount Rates used in Purchase Price Allocation
Amortizable intangible assets:
Technology-related	$	68	11	15	%
	$	68