Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Summary of Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured and reported at fair value on a recurring basis as of September 30, 2024:


(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	173	$	—	$	—	$	173
Derivatives	—		6		—		6
Total	$	173	$	6	$	—	$	179
Liabilities:
Derivatives	$	—	$	172	$	—	$	172
Contingent consideration	—		—		94		94
Total	$	—	$	172	$	94	$	266

The following table summarizes the fair value of the Company’s financial assets and liabilities that are measured and reported at fair value on a recurring basis as of December 31, 2023:


(in millions)	Level 1		Level 2		Level 3		Total
Assets:
Marketable securities	$	146	$	—	$	—	$	146
Derivatives	—		15		—		15
Total	$	146	$	15	$	—	$	161
Liabilities:
Derivatives	$	—	$	159	$	—	$	159
Contingent consideration	—		—		106		106
Total	$	—	$	159	$	106	$	265

Schedule of Changes in Level 3 Financial Assets and Liabilities Measured on Recurring Basis

The following table summarizes the changes in Level 3 financial assets and liabilities measured on a recurring basis for the nine months ended September 30, 2024:


(in millions)	Contingent Consideration
Balance as of December 31, 2023	$	106
Business combinations	55
Contingent consideration paid	(10)
Revaluations included in earnings and foreign currency translation adjustments	(57)
Balance as of September 30, 2024	$	94

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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