Contingent Consideration (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

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



(in millions)
Balance as of December 31, 2018	$	347
Amount recorded related to current year acquisitions	127
Contingent consideration arrangements transferred to Varian	(16		)
Contingent consideration expense (benefit)	(9		)
Contingent consideration payments	(68		)
Balance as of September 30, 2019	$	380

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

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



Contingent Consideration Liability	Fair Value as of September 30, 2019	Valuation Technique	Unobservable Input	Range				Weighted Average (1)
R&D, Regulatory and Commercialization-based Milestones	$220 million	Discounted Cash Flow	Discount Rate	2	%	-	3%	3%
			Probability of Payment	50	%	-	90%	84%
			Projected Year of Payment	2019		-	2027	2020
Revenue-based Payments	$160 million	Discounted Cash Flow	Discount Rate	11	%	-	15%	13%
			Probability of Payment	60	%	-	100%	99%
			Projected Year of Payment	2019		-	2026	2021

(1)

Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. For projected year of payment, the amount represents the median of the inputs and is not a weighted average.