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Acquisitions and Strategic Investments (Tables)

12 Months Ended

Dec. 31, 2018

Changes in the fair value of our contingent consideration liability were as follows:



(in millions)
Balance as of December 31, 2016	$	204
Amounts recorded related to current year acquisitions	94
Contingent consideration expense (benefit)	(80		)
Contingent consideration payments	(48		)
Balance as of December 31, 2017	$	169
Amounts recorded related to current year acquisitions	248
Purchase price adjustments related to prior year acquisitions	(22		)
Contingent consideration expense (benefit)	(21		)
Contingent consideration payments	(28		)
Balance as of December 31, 2018	$	347

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 December 31, 2018	Valuation Technique	Unobservable Input	Range
R&D, Regulatory and Commercialization-based Milestones	$189 million	Discounted Cash Flow	Discount Rate	3% - 4%
			Probability of Payment	17% - 100%
			Projected Year of Payment	2019 - 2022
Revenue-based Payments	$158 million	Discounted Cash Flow	Discount Rate	11% - 15%
			Probability of Payment	60% - 100%
			Projected Year of Payment	2019 - 2026

he aggregate carrying amounts of our strategic investments were comprised of the following categories:



	As of
(in millions)	December 31, 2018		December 31, 2017
Equity method investments	$	303	$	209
Measurement alternative investments	94		81
Publicly-held securities	—		15
Notes receivable	26		47
	$	424	$	353

The components of the aggregate preliminary purchase prices are as follows for our 2018 acquisitions as of December 31, 2018:



(in millions)
Payments for acquisitions, net of cash acquired	$	1,449
Fair value of contingent consideration	248
Fair value of prior interests	251
	$	1,948

The following summarizes the preliminary purchase price allocations for our 2018 acquisitions as of December 31, 2018:



(in millions)
Goodwill	$	942
Amortizable intangible assets	938
IPR&D	213
Other assets acquired	38
Liabilities assumed	(19		)
Net deferred tax liabilities	(164		)
	$	1,948

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



	Amount Assigned (in millions)		Amortization Period (in years)	Risk-Adjusted Discount Rates used in Purchase Price Allocation
Amortizable intangible assets
Technology-related	$	907	6 - 14	14% - 23%
Other intangible assets	31		6 - 13	13% - 15%
Indefinite-lived intangible assets
IPR&D	213		N/A	15%
	$	1,152

The components of the aggregated purchase prices are as follows for our 2017 acquisitions as of December 31, 2018:



(in millions)
Payment for acquisitions, net of cash acquired	$	560
Fair value of contingent consideration	72
	$	632

The following summarizes the aggregated purchase price allocations for our 2017 acquisitions as of December 31, 2018:



(in millions)
Goodwill	$	287
Amortizable intangible assets	278
Indefinite-lived intangible assets	186
Other assets acquired	44
Liabilities assumed	(61		)
Deferred tax liabilities	(102		)
	$	632

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



	Amount Assigned (in millions)		Amortization Period (in years)	Risk-Adjusted Discount Rates used in Purchase Price Allocation
Amortizable intangible assets
Technology-related	$	268	13	24%
Other intangible assets	10		2 - 13	24%
Indefinite-lived intangible assets
IPR&D	$	186	N/A	15%
	$	464

The components of the aggregated purchase prices are as follows:



(in millions)
Payment for acquisitions, net of cash acquired	$	365
Fair value of contingent consideration	50
Fair value of debt repaid	43
	$	458

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



	Amount Assigned (in millions)		Weighted Average Amortization Period (in years)	Risk-Adjusted Discount Rates used in Purchase Price Allocation
Amortizable intangible assets
Technology-related	$	176	9 - 13	11% - 20%
Customer relationships	51		9 - 13	11% - 12%
Other intangible assets	1		4	11%
	$	228

The following summarizes the aggregated purchase price allocations for our 2016 acquisitions:



(in millions)
Goodwill	$	204
Amortizable intangible assets	228
Other assets acquired	83
Liabilities assumed	(57		)
	$	458