XML 38 R28.htm IDEA: XBRL DOCUMENT v3.23.3
Acquisitions, Divestitures and Strategic Investments (Tables)
 9 Months Ended
Sep. 30, 2023
Business Acquisition [Line Items]  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] Changes in the fair value of our contingent consideration liability during the first nine months of 2023 associated with prior period acquisitions were as follows:
(in millions)
Balance as of December 31, 2022$149 
Contingent consideration net expense (benefit)43 
Contingent consideration payments(73)
Balance as of September 30, 2023$119 
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]
The recurring Level 3 fair value measurements of our contingent consideration liability that we expect to be required to settle include the following significant unobservable inputs:
Contingent Consideration LiabilityFair Value as of September 30, 2023Valuation TechniqueUnobservable InputRange
Weighted Average(1)
R&D, Regulatory and Commercialization-based Milestones$13 millionDiscounted Cash FlowDiscount Rate1%-2%1%
Probability of Payment10%-25%22%
Projected Year of Payment2023-20252024
Revenue-based Payments$106 millionDiscounted Cash FlowDiscount Rate6%-14%6%
Probability of Payment100%100%
Projected Year of Payment2023-20242023
(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.
Investment [Table Text Block]
The aggregate carrying amount of our strategic investments was comprised of the following:

As of
(in millions)September 30, 2023December 31, 2022
Equity method investments$220 $188 
Measurement alternative investments(1, 2)
207 219 
$427 $407 
(1)    Measurement alternative investments are privately-held equity securities without readily determinable fair values that are measured at cost less impairment, if any, adjusted to fair value for any observable price changes in orderly transactions for the identical or a similar investment of the same issuer, recognized in Other, net within our accompanying unaudited consolidated statements of operations.
(2)    Includes publicly-held securities and convertible notes measured at fair value with changes in fair value recognized in Other, net within our accompanying unaudited consolidated statements of operations.
Acotec  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
(in millions)
Acotec(1)
Apollo
Payment for acquisition, net of cash acquired (2)
$381 $636 
$381 $636 
(1) Excludes approximately $140 million of cash on hand at the closing of the transaction
(2) Represents majority stake investment in Acotec
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] The preliminary purchase price allocations were comprised of the following components and the final determination of the fair value of certain assets and liabilities will be completed within the measurement period in accordance with FASB ASC Topic 805:
(in millions)AcotecApollo
Goodwill$338 $379 
Amortizable intangible assets334 248 
Other assets acquired93 50 
Liabilities assumed(48)(33)
Net deferred tax liabilities(77)(7)
Fair value of noncontrolling interest(259)— 
$381 $636 
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]
We allocated a portion of the purchase price to the 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
Acotec:
Amortizable intangible assets:
Technology-related$308 1114%
Customer relationships15 1114%
Other intangible assets11 1314%
$334 
Apollo:
Amortizable intangible assets:
Technology-related$222 1112%
Customer relationships26 1112%
$248 
Baylis Medical  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
(in millions)
Payment for acquisition, net of cash acquired$1,463 
$1,463 
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] The final purchase price allocation was comprised of the following components:
(in millions)
Goodwill$988 
Amortizable intangible assets657 
Other assets acquired112 
Liabilities assumed(287)
Net deferred tax liabilities(7)
$1,463 
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]
We allocated a portion of the purchase price to the 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$622 1111%
Other intangible assets36 1111%
$657