Issuance of new contingent consideration

  
Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (level 3)  
The Company’s Level 3 liabilities at December 31, 2021 are related to earn-out obligations from acquisitions and licensing arrangements. The following table presents a reconciliation of the Company’s Level 3 holdings measured at fair value on a recurring basis using unobservable inputs:

|  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  |  |  |  |  |  |
| (in millions) |  | Level 3 |  |  |  |  |
|  |  |  |  |  |  |  |
| Balance, December 31, 2019 |  | $ | 9  |  |  |  |  |  |
| Issuance of new contingent consideration |  | —  |  |  |  |  |  |
| Loss (gain) in Other expense (income), net |  | —  |  |  |  |  |  |
| Payments |  | (4) |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Balance, December 31, 2020 |  | $ | 5  |  |  |  |  |  |
| Issuance of contingent consideration from business acquisition (a) |  | 9  |  |  |  |  |  |
| Loss (gain) in Other expense (income), net |  | —  |  |  |  |  |  |
| Payments |  | (4) |  |  |  |  |  |
|  |  |  |  |  |  |  |
| Balance, December 31, 2021 |  | $ | 10  |  |  |  |  |  |

(a) Refer to Note 6, "Business Combinations" for more information regarding recent acquisitions  
There were no additional purchases or transfers of Level 3 financial instruments in 2021 and 2020. 118
