AcquisitionsThe Company had acquisitions during the three and six months ended October 30, 2020 and October 25, 2019 that were accounted for as business combinations. The assets and liabilities of the businesses acquired were recorded and consolidated on the acquisition date at their respective fair values. Goodwill resulting from business combinations is largely attributable to future yet to be defined technologies, new customer relationships, existing workforce of the acquired businesses, and synergies expected to arise after the Company's acquisition of these businesses. The pro forma impact of these acquisitions was not significant, either individually or in the aggregate, to the consolidated results of the Company for the three and six months ended October 30, 2020 and October 25, 2019. The results of operations of acquired businesses have been included in the Company's consolidated statements of income since the date each business was acquired. Fiscal Year 2021 The acquisition date fair value of net assets acquired during the six months ended October 30, 2020 was $539 million, consisting of $577 million of assets acquired and $38 million of liabilities assumed. Based upon preliminary valuations, assets acquired were primarily comprised of $156 million of technology-based intangible assets and $13 million of customer-related intangible assets with estimated useful lives ranging from 8 to 15 years and $381 million of goodwill. The goodwill is not deductible for tax purposes. The Company recognized $158 million of contingent consideration liabilities in connection with business combinations during the six months ended October 30, 2020, which are comprised of revenue and product development milestone-based payments. Additionally, during the six months ended October 30, 2020, the Company recognized a gain of $132 million related to a change in amounts accrued for certain contingent liabilities from a recent acquisition. The benefit was recognized in other operating expense, net in the consolidated statements of income as the purchase accounting was finalized in fiscal year 2020. For the three and six months ended October 30, 2020, purchase price allocation adjustments were not significant. Fiscal Year 2020 The acquisition date fair value of net assets acquired during the six months ended October 25, 2019 was $272 million, consisting of $324 million of assets acquired and $52 million of liabilities assumed. Assets acquired were primarily comprised of $139 million of technology-based intangible assets and $26 million of customer-related intangible assets with estimated useful lives ranging from 8 to 16 years, $40 million of inventory, and $92 million of goodwill. The goodwill is not deductible for tax purposes. The Company recognized $65 million of contingent consideration liabilities in connection with business combinations during the six months ended October 25, 2019, which are comprised of revenue milestone-based payments. For the three and six months ended October 25, 2019, purchase price allocation adjustments were not significant. Contingent Consideration Certain of the Companys business combinations involve potential payment of future consideration that is contingent upon the achievement of certain product development milestones and/or contingent on the acquired business reaching certain performance milestones. A liability is recorded for the estimated fair value of the contingent consideration on the acquisition date. The fair value of the contingent consideration is remeasured at each reporting period, and the change in fair value is recognized within other operating expense, net in the consolidated statements of income. Contingent consideration payments made soon after the acquisition date are classified as investing activities in the consolidated statements of cash flows. Contingent consideration payments not made soon after the acquisition date that are related to the acquisition date fair value are reported as financing activities in the consolidated statements of cash flows, and amounts paid in excess of the original acquisition date fair value are reported as operating activities in the consolidated statements of cash flows. The fair value of contingent consideration at October 30, 2020 and April 24, 2020 was $461 million and $280 million, respectively. At October 30, 2020, $342 million was recorded in other accrued expenses , and $119 million was recorded in other liabilities in the consolidated balance sheets. At April 24, 2020, $112 million was recorded in other accrued expenses , and $168 million was recorded in other liabilities in the consolidated balance sheets. The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Three months ended Six months ended (in millions) October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Beginning balance $ 297 $ 269 $ 280 $ 222 Purchase price contingent consideration 158 7 158 65 Payments (1) (15) (2) (29) Change in fair value 7 (1) 25 2 Ending balance $ 461 $ 260 $ 461 $ 260 The fair value of contingent consideration is measured using projected payment dates, discount rates, probabilities of payment, and projected revenues (for revenue-based consideration). Projected revenues are based on the Company's most recent internal operational budgets and long-range strategic plans. Changes in projected payment dates, discount rates, probabilities of payment, and projected revenues may result in adjustments to the fair value measurement. The recurring Level 3 fair value measurements of contingent consideration for which a liability is recorded include the following significant unobservable inputs: Fair Value at (in millions) October 30, 2020 Unobservable Input Range Weighted Average (1) Discount rate 14.0% - 32.4% 20.7% Revenue and other performance-based payments $203 Probability of payment 40% - 100% 99.4% Projected fiscal year of payment 2021 - 2027 2024 Discount rate 5.5% 5.5% Product development and other milestone-based payments $258 Probability of payment 50% - 100% 93.2% Projected fiscal year of payment 2021 - 2027 2024 (1) Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. For projected fiscal year of payment, the amount represents the median of the inputs and is not a weighted average.