Percentage accrued of maximum consideration payments to become payable

  
Below is a summary of the valuation techniques used in determining fair value:  
Marketable securities—The Company values trading and available-for-sale securities using the quoted market value of the securities held.  
Derivatives—Derivatives consist of foreign exchange contracts and interest rate swaps. The fair value of foreign exchange contracts is based on observable market inputs of spot and forward rates or using other observable inputs. The fair value of the interest rate swaps is the estimated amount that the Company would receive or pay to terminate such agreements, taking into account market interest rates and the remaining time to maturities or using market inputs with mid-market pricing as a practical expedient for bid-ask spread.  
Contingent consideration—The Company values contingent consideration related to business combinations using a weighted probability calculation of potential payment scenarios discounted at rates reflective of the risks associated with the expected future cash flows. Assumptions used to estimate the fair value of contingent consideration include various financial metrics (revenue performance targets and operating forecasts) and the probability of achieving the specific targets. Based on the assessments of the probability of achieving specific targets, as of December 31, 2021 the Company has accrued approximately 72% of the maximum contingent consideration payments that could potentially become payable.  
The following table summarizes the changes in Level 3 financial assets and liabilities measured on a recurring basis for the year ended December 31,:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Contingent Consideration |
| (in millions) | 2021 |  | 2020 |  | 2019 |
| Balance as of January 1 | $ | 119  |  |  | $ | 113  |  |  | $ | 123  |  |
| Business combinations | 39 |  | 47  |  |  | 40  |  |
| Contingent consideration paid | (39) |  |  | (22) |  |  | (46) |  |
| Revaluations included in earnings and foreign currency translation adjustments | (43) |  |  | (19) |  |  | (4) |  |
| Balance as of December 31 | $ | 76 |  | $ | 119 |  | $ | 113  |  |

  
The current portion of contingent consideration is included within accrued expenses and the long-term portion is included within other liabilities on the accompanying consolidated balance sheets. Revaluations of contingent consideration are recognized in other income, net on the accompanying consolidated statements of income. A change in significant unobservable inputs above could result in a significantly higher or lower fair value measurement of contingent consideration.  
Non-recurring Fair Value Measurements  
Certain assets are carried on the accompanying consolidated balance sheets at cost and are not remeasured to fair value on a recurring basis. These assets include equity investments that do not have readily determinable fair values that are assessed for impairment quarterly or annually, when there is an observable event, and when a triggering event occurs, and goodwill and other identifiable intangible assets that are tested for impairment annually and when a triggering event occurs. See Note 4 and 8 for additional information.  
As of December 31, 2021, assets carried on the balance sheet and not remeasured to fair value on a recurring basis totaled approximately $18,374 million and were identified as Level 3. These assets are comprised of cost and equity method investments of $130 million, goodwill of $13,301 million and other identifiable intangibles, net of $4,943 million.  
84
