v3.25.4
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities Measured at Fair Value
The following table summarizes the types of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy:
 December 31, 2025December 31, 2024
(in millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:        
Available-for-sale debt securities:
U.S. treasury securities$1,224 $— $— $1,224 $— $— $— $— 
U.S. government agencies securities— 15 — 15 — — — — 
Corporate debt securities— 1,398 — 1,398 — — — — 
Residential mortgage and asset-backed securities— 407 — 407 — — — — 
Equity securities:
Money market funds6,150 — — 6,150 8,502 — — 8,502 
Publicly traded equity securities1,961 — — 1,961 1,561 — — 1,561 
Deferred compensation plan406 — — 406 343 — — 343 
Foreign currency derivative contracts— 56 — 56 — 128 — 128 
Total$9,741 $1,875 $— $11,616 $10,405 $128 $— $10,533 
Liabilities:
Contingent consideration liability$— $— $278 $278 $— $— $206 $206 
Deferred compensation plan406 — — 406 343 — — 343 
Foreign currency derivative contracts— 72 — 72 — 3 — 3 
Total$406 $72 $278 $757 $343 $3 $206 $552 
Summary of Change in Fair Value of Contingent Consideration
The following table summarizes the change in fair value of our contingent consideration liability:
Year Ended December 31,
(in millions)202520242023
Beginning balance$206 $228 $275 
Changes in valuation assumptions(1)
43 (7)(60)
Effect of foreign exchange remeasurement(2)
29 (14)12 
Ending balance(3)
$278 $206 $228 
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(1)    Included in Research and development expenses on our Consolidated Statements of Operations. The changes in 2025 primarily related to changes in assumptions around probability. The changes in 2023 primarily related to changes in assumptions around probability and timing of regulatory approval.
(2)    Included in Other (income) expense, net on our Consolidated Statements of Operations.
(3)    Included in Other current liabilities as of December 31, 2025 and in Other long-term liabilities as of December 31, 2024 and 2023 on our Consolidated Balance Sheets, respectively.
Summary of Estimated Fair Value and Carrying Value of Unsecured Notes and Liability of Future Royalty
The following table summarizes the total estimated fair value and carrying value of our senior unsecured notes, determined using Level 2 inputs based on their quoted market values:
December 31,
(in millions)20252024
Fair value$22,342 $23,335 
Carrying value$23,827 $25,562