| Fair Value Measurements |
Fair Value Measurements Fair Value Measurements The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 26, | | Quoted
prices in
active
markets | | Significant
other
observable
inputs | | Significant
unobservable
inputs | | (In millions) | | 2026 | | (Level 1) | | (Level 2) | | (Level 3) | Assets | | | | | | | | | Cash equivalents | | $ | 2,510 | | | $ | 2,510 | | | $ | — | | | $ | — | | Bank time deposits | | 600 | | | 600 | | | — | | | — | | Investments | | 117 | | | 22 | | | — | | | 95 | | | | | | | | | | | Insurance contracts | | 313 | | | — | | | 313 | | | — | | Derivative contracts | | 231 | | | — | | | 231 | | | — | | Contingent consideration | | 69 | | | — | | | — | | | 69 | | Total assets | | $ | 3,839 | | | $ | 3,132 | | | $ | 543 | | | $ | 164 | | | | | | | | | | | Liabilities | | | | | | | | | Derivative contracts | | $ | 590 | | | $ | — | | | $ | 590 | | | $ | — | | Contingent consideration | | 76 | | | — | | | — | | | 76 | | Total liabilities | | $ | 667 | | | $ | — | | | $ | 590 | | | $ | 76 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | Quoted
prices in
active
markets | | Significant
other
observable
inputs | | Significant
unobservable
inputs | | (In millions) | | 2025 | | (Level 1) | | (Level 2) | | (Level 3) | Assets | | | | | | | | | Cash equivalents | | $ | 6,907 | | | $ | 6,907 | | | $ | — | | | $ | — | | Bank time deposits | | 250 | | | 250 | | | — | | | — | | Investments | | 103 | | | 27 | | | — | | | 76 | | | | | | | | | | | Insurance contracts | | 280 | | | — | | | 280 | | | — | | Derivative contracts | | 685 | | | — | | | 685 | | | — | | Contingent consideration | | 67 | | | — | | | — | | | 67 | | Total assets | | $ | 8,292 | | | $ | 7,184 | | | $ | 966 | | | $ | 143 | | | | | | | | | | | Liabilities | | | | | | | | | Derivative contracts | | $ | 506 | | | $ | — | | | $ | 506 | | | $ | — | | Contingent consideration | | 16 | | | — | | | — | | | 16 | | Total liabilities | | $ | 522 | | | $ | — | | | $ | 506 | | | $ | 16 | |
In the three- and nine-month periods ended September 26, 2026, the company recorded $(9) million and $14 million, respectively, of net gains/(losses) on investments, which are included in other income/(expense) in the accompanying statements of income. In the three- and nine-month periods ended September 27, 2025, the company recorded $8 million and $6 million of net gains/(losses) on investments, which are included in other income/(expense) in the accompanying statements of income. The following table provides a rollforward of investments classified as level 3: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended | | Nine months ended | | (In millions) | | September 26, 2026 | | September 27, 2025 | | September 26, 2026 | | September 27, 2025 | | Investments | | | | | | | | | | Beginning balance | | $ | 92 | | | $ | 59 | | | $ | 76 | | | $ | 21 | | | Purchases | | 3 | | | 6 | | | 19 | | | 44 | | | | | | | | | | | | | | | | | | | | | Ending balance | | $ | 95 | | | $ | 65 | | | $ | 95 | | | $ | 65 | |
The following table provides a rollforward of the fair value, as determined by level 3 inputs (such as likelihood of a qualifying transaction), of the contingent consideration asset: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended | | Nine months ended | | (In millions) | | September 26, 2026 | | September 27, 2025 | | September 26, 2026 | | September 27, 2025 | Contingent consideration asset | | | | | | | | | Beginning balance | | $ | 68 | | | $ | — | | | $ | 67 | | | $ | — | | Acquisition | | — | | | 65 | | | — | | | 65 | | | | | | | | | | | Changes in fair value included in earnings | | 1 | | | — | | | 2 | | | — | | Ending balance | | $ | 69 | | | $ | 65 | | | $ | 69 | | | $ | 65 | |
The following table provides a rollforward of the fair value, as determined by level 3 inputs (such as likelihood of achieving production or revenue milestones, as well as changes in the fair values of the investments underlying a recapitalization investment portfolio), of the contingent consideration liabilities. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended | | Nine months ended | | (In millions) | | September 26, 2026 | | September 27, 2025 | | September 26, 2026 | | September 27, 2025 | Contingent consideration liabilities | | | | | | | | | | Beginning balance | | $ | 178 | | | $ | 5 | | | $ | 16 | | | $ | 13 | | | Acquisitions (including assumed balances) | | 10 | | | 3 | | | 165 | | | 3 | | | Payments | | (19) | | | — | | | (28) | | | (6) | | | Changes in fair value included in earnings | | (92) | | | 4 | | | (76) | | | 3 | | | Currency translation | | — | | | — | | | (1) | | | — | | | Ending balance | | $ | 76 | | | $ | 12 | | | $ | 76 | | | $ | 12 | |
Fair Value of Other Financial Instruments The carrying value and fair value of the company’s debt instruments are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 26, 2026 | | December 31, 2025 | | (In millions) | | Carrying value | | Fair value | | Carrying value | | Fair value | Senior notes | | $ | 41,108 | | | $ | 36,943 | | | $ | 39,171 | | | $ | 36,606 | | | | | | | | | | | | | | | | | | | | Other | | — | | | — | | | 1 | | | 1 | | | | $ | 41,108 | | | $ | 36,943 | | | $ | 39,172 | | | $ | 36,607 | |
The fair value of debt instruments, excluding private placement notes, was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends, which represent level 2 measurements. The fair value of private placement notes was determined based on internally developed pricing models and unobservable inputs, which represent level 3 measurements.
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