v3.26.1
Acquisitions, Divestitures and Strategic Investments (Tables)
 6 Months Ended
Jun. 30, 2026
Business Combination [Abstract]  
Business Combination The preliminary purchase price was comprised of the amounts presented below:
(in millions)Nalu Medical
Payment for acquisition, net of cash acquired$523 
Fair value of prior interest66 
$588 
The final purchase prices were comprised of the amounts presented below:
(in millions)Bolt MedicalSoniVieOther
Payment for acquisition, net of cash acquired$475 $362 $239 
Fair value of contingent consideration100 98 38 
Fair value of prior interest207 55 — 
$782 $516 $277 
Business Combination, Recognized Asset Acquired and Liability Assumed 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)Nalu Medical
Goodwill$274 
Amortizable intangible assets262 
Other assets acquired55 
Net deferred tax assets13 
Liabilities assumed(16)
$588 
We recorded the assets acquired and liabilities assumed at their respective fair values as of the closing date of the transactions. The final purchase price allocations were comprised of the components presented below, with the excess of the purchase price over the fair value of net assets acquired recorded to goodwill:

(in millions)Bolt MedicalSoniVieOther
Goodwill$304 $248 $208 
Amortizable intangible assets142 — 66 
Indefinite-lived intangible assets376 344 — 
Other assets acquired28 12 1 
Net deferred tax assets— — 12 
Liabilities assumed(22)(23)(10)
Net deferred tax liabilities(46)(65)— 
$782 $516 $277 
Business Combination, Intangible Asset, Acquired, Finite-Lived and Indefinite-Lived
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)
Nalu Medical:
Amortizable intangible assets:
Technology-related$250 12
Customer relationships
12 12
$262 
We allocated a portion of the purchase prices to the specific intangible asset categories as follows:

Amount Assigned
(in millions)
Weighted Average Amortization Period
(in years)
Bolt Medical:
Amortizable intangible assets:
Technology-related$142 12
Indefinite-lived intangible assets:
In-process research and development (IPR&D)$376 N/A
$518 
SoniVie:
Indefinite-lived intangible assets:
IPR&D$344 N/A
$344 
Other:
Amortizable intangible assets:
Technology-related$66 13
$66 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Changes in the fair value of our contingent consideration liability during the first six months of 2026 associated with current and prior period acquisitions were as follows:

(in millions)
Balance as of December 31, 2025$385 
Contingent consideration net expense (benefit)(46)
Contingent consideration payments(82)
Balance as of June 30, 2026$257 
Fair Value Measurement Inputs and Valuation Techniques
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 June 30, 2026Valuation TechniqueUnobservable InputRange
Weighted Average(1)
Revenue-based Payments and Commercialization Milestones$76 millionDiscounted Cash FlowDiscount Rate6%-15%10%
Probability of Payment90%-100%98%
Projected Year of Payment2027-20322029
Clinical-based, Regulatory and Other Milestones$181 millionDiscounted Cash FlowDiscount Rate4%-5%5%
Probability of Payment74%-86%81%
Projected Year of Payment2027-20292028
(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
The aggregate carrying amount of our strategic investments, which are classified as Other investments within our accompanying unaudited consolidated balance sheets, was comprised of the following:


As of
(in millions)June 30, 2026December 31, 2025
Equity method investments$1,308 $396 
Measurement alternative investments(1, 2)
938 286 
$2,245 $681 
(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 equity securities, convertible notes and securities measured at fair value with changes in fair value recognized in Other, net within our accompanying unaudited consolidated statements of operations.