3. Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Inputs, Liabilities, Quantitative Information [Line Items]

Discussion of Current Derivative Risk Management [Table Text Block]

The following is a summary of our forward foreign currency exchange contracts (in millions):



	December 31,
	2013
Contracts maturing in January through March 2014 to sell foreign currency:
Notional value	$	83.8
Unrealized loss	$	—
Contracts maturing in January through March 2014 to purchase foreign currency:
Notional value	$	409.4
Unrealized loss	$	0.5

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table provides a reconciliation of the Level 3 contingent consideration liabilities measured at estimated fair value based on original valuations and updated quarterly for the year ended December 31, 2013 (in millions):



	2013
January 1	$	52.6
Payment of development milestone - QuantaLife	(6.0		)
Payment of development milestone - Cell sorting system	(20.0		)
Decrease in fair value of contingent consideration included in Selling, general and administrative expense - QuantaLife	(2.0		)
Net decrease in estimated fair value of contingent consideration included in Selling, general and administrative expense - Cell sorting system	(3.8		)
December 31	$	20.8

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

The following table provides quantitative information about Level 3 inputs for fair value measurement of our contingent consideration liabilities as of December 31, 2013. Significant increases or decreases in these inputs in isolation could result in a significantly lower or higher fair value measurement.



			Range
	Valuation Technique	Unobservable Input	From	To
Cell sorting system	Probability-weighted income approach	Sales milestone:
		Credit adjusted discount rates	0.97%	1.93%
		Projected volatility of growth rates	13.0%	15.0%
		Market price of risk	1.0%	N/A

Financial assets and liabilities carried at fair value on a recurring basis

Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2013 are classified in the hierarchy as follows (in millions):



	Level 1		Level 2		Level 3		Total
Financial Assets Carried at Fair Value:
Cash equivalents (a):
Commercial paper	$	—	$	7.0	$	—	$	7.0
Foreign time deposits	11.1		—		—		11.1
U.S. government sponsored agencies	—		1.2		—		1.2
Money market funds	1.2		—		—		1.2
Total cash equivalents	12.3		8.2		—		20.5
Available-for-sale investments (b):
Corporate debt securities	—		132.5		—		132.5
Foreign brokered certificates of deposit	—		8.9		—		8.9
U.S. government sponsored agencies	—		39.1		—		39.1
Foreign government obligations	—		5.6		—		5.6
Municipal obligations	—		11.0		—		11.0
Marketable equity securities	325.2		—		—		325.2
Asset-backed securities	—		48.6		—		48.6
Total available-for-sale investments	325.2		245.7		—		570.9
Forward foreign exchange contracts (c)	—		0.6		—		0.6
Total financial assets carried at fair value	$	337.5	$	254.5	$	—	$	592.0

Financial Liabilities Carried at Fair Value:
Forward foreign exchange contracts (d)	$	—	$	1.1	$	—	$	1.1
Contingent consideration (e)	—		—		20.8		20.8
Total financial liabilities carried at fair value	$	—	$	1.1	$	20.8	$	21.9

Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2012 are classified in the hierarchy as follows (in millions):



	Level 1		Level 2		Level 3		Total
Financial Assets Carried at Fair Value:
Cash equivalents (a):
Commercial paper	$	—	$	52.8	—		$	52.8
Foreign time deposits	10.1		—		—		10.1
U.S. government sponsored agencies	—		1.3		—		1.3
Money market funds	5.5		—		—		5.5
Total cash equivalents	15.6		54.1		—		69.7
Available-for-sale investments (b):
Corporate debt securities	—		240.6		—		240.6
Foreign brokered certificates of deposit	—		0.4		—		0.4
U.S. government sponsored agencies	—		92.7		—		92.7
Foreign government obligations	—		5.6		—		5.6
Municipal obligations	—		12.1		—		12.1
Marketable equity securities	242.1		—		—		242.1
Asset-backed securities	—		82.2		—		82.2
Total available-for-sale investments	242.1		433.6		—		675.7
Forward foreign exchange contracts (c)	—		1.1		—		1.1
Total financial assets carried at fair value	$	257.7	$	488.8	—		$	746.5

Financial Liabilities Carried at Fair Value:
Forward foreign exchange contracts (d)	$	—	$	0.8	—		$	0.8
Contingent consideration (e)	—		—		52.6		52.6
Total financial liabilities carried at fair value	$	—	$	0.8	$	52.6	$	53.4


(a)	Cash equivalents are included in Cash and cash equivalents in the Consolidated Balance Sheets.


(b)	Available-for-sale investments are included in the following accounts in the Consolidated Balance Sheets (in millions):



	December 31, 2013		December 31, 2012

Short-term investments	$	277.4	$	457.7
Other investments	293.5		218.0
Total	$	570.9	$	675.7


(c)	Forward foreign exchange contracts in an asset position are included in Prepaid expenses, taxes and other current assets in the Consolidated Balance Sheets.


(d)	Forward foreign exchange contracts in a liability position are included in Other current liabilities in the Consolidated Balance Sheets.


(e)	The contingent consideration liability is included in the following accounts in the Consolidated Balance Sheet (in millions):



	December 31, 2013		December 31, 2012

Other current liabilities	$	6.1	$	27.3
Other long-term liabilities	14.7		25.3
Total	$	20.8	$	52.6

Schedule of available-for-sale investments

Available-for-sale investments consist of the following (in millions):



	December 31, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Short-term investments:
Corporate debt securities	$	132.6	$	0.3	$	(0.4	)	$	132.5
Foreign brokered certificates of deposit	8.9		—		—			8.9
Municipal obligations	11.1		—		(0.1		)	11.0
Asset-backed securities	48.4		0.1		(0.2		)	48.3
U.S. government sponsored agencies	39.1		0.1		(0.1		)	39.1
Foreign government obligations	5.6		—		—			5.6
Marketable equity securities	26.6		5.4		—			32.0
	272.3		5.9		(0.8		)	277.4
Long-term investments:
Marketable equity securities	54.5		238.7		—			293.2
Asset-backed securities	0.4		—		(0.1		)	0.3
	54.9		238.7		(0.1		)	293.5
Total	$	327.2	$	244.6	$	(0.9	)	$	570.9



	December 31, 2012
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Short-term investments:
Corporate debt securities	$	239.3	$	1.4	$	(0.1	)	$	240.6
Foreign brokered certificates of deposit	0.4		—		—			0.4
Municipal obligations	12.0		0.1		—			12.1
Asset-backed securities	81.6		0.4		(0.1		)	81.9
U.S. government sponsored agencies	92.5		0.3		(0.1		)	92.7
Foreign government obligations	5.4		—		—			5.4
Marketable equity securities	24.1		0.7		(0.2		)	24.6
	455.3		2.9		(0.5		)	457.7
Long-term investments:
Marketable equity securities	54.5		163.0		—			217.5
Asset-backed securities	0.4		—		(0.1		)	0.3
Foreign government obligations	0.2		—		—			0.2
	55.1		163.0		(0.1		)	218.0
Total	$	510.4	$	165.9	$	(0.6	)	$	675.7

Summary of investments with gross unrealized losses and the associated fair value

The following is a summary of investments with gross unrealized losses and the associated fair value (in millions):



	December 31, 2013		December 31, 2012

Fair value of investments in a loss position 12 months or more	$	2.3	$	0.3
Fair value of investments in a loss position less than 12 months	$	73.9	$	99.0
Gross unrealized losses for investments in a loss position 12 months or more	$	0.1	$	0.1
Gross unrealized losses for investments in a loss position less than 12 months	$	0.8	$	0.5

Summary of amortized cost and estimated fair value of debt securities by contractual maturity date

The following is a summary of the amortized cost and estimated fair value of our debt securities at December 31, 2013 by contractual maturity date (in millions):



	Amortized Cost		Estimated Fair Value

Mature in less than one year	$	97.5	$	97.6
Mature in one to five years	109.1		109.2
Mature in more than five years	39.5		38.9
Total	$	246.1	$	245.7

Estimated fair value of financial instruments

The estimated fair value of the financial instruments discussed above and the level of the fair value hierarchy within which the fair value measurement is categorized are as follows (in millions):



	December 31, 2013					December 31, 2012
	Carrying Amount		Estimated Fair Value		Fair Value Hierarchy Level	Carrying Amount		Estimated Fair Value		Fair Value Hierarchy Level
Other investments	$	77.5	$	382.9	2	$	68.4	$	272.5	2
Total long-term debt, excluding leases and current maturities	$	423.2	$	433.0	2	$	720.0	$	778.4	2

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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