3. Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures [Abstract]

Schedule of 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 September 30, 2014 are classified in the hierarchy as follows (in millions):

	Level 1		Level 2		Level 3		Total
Financial Assets Carried at Fair Value:
Cash equivalents:
Commercial paper	$	—	$	8.4	$	—	$	8.4
Foreign time deposits	14.9		—		—		14.9
Money market funds	2.5		—		—		2.5
Total cash equivalents (a)	17.4		8.4		—		25.8
Available-for-sale investments:
Corporate debt securities	—		132.6		—		132.6
Foreign brokered certificates of deposit	—		5.2		—		5.2
U.S. government sponsored agencies	—		46.0		—		46.0
Foreign government obligations	—		4.4		—		4.4
Municipal obligations	—		7.8		—		7.8
Marketable equity securities	308.6		—		—		308.6
Asset-backed securities	—		50.1		—		50.1
Total available-for-sale investments (b)	308.6		246.1		—		554.7
Forward foreign exchange contracts (c)	—		1.0		—		1.0
Total financial assets carried at fair value	$	326.0	$	255.5	$	—	$	581.5
Financial Liabilities Carried at Fair Value:
Forward foreign exchange contracts (d)	$	—	$	0.3	$	—	$	0.3
Contingent consideration (e)	—		—		23.1		23.1
Total financial liabilities carried at fair value	$	—	$	0.3	$	23.1	$	23.4

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:
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 (a)	12.3		8.2		—		20.5
Available-for-sale investments:
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 (b)	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

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

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

	September 30, 2014		December 31, 2013
Short-term investments	$	278.0	$	277.4
Other investments	276.7		293.5
Total	$	554.7	$	570.9

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

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

(e) Contingent consideration liability is included in the following accounts in the Condensed Consolidated Balance Sheets (in millions):

	September 30, 2014		December 31, 2013
Other current liabilities	$	9.6	$	6.1
Other long-term liabilities	13.5		14.7
Total	$	23.1	$	20.8

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 liability measured at estimated fair value based on original valuations and updated quarterly for the nine months ended September 30, 2014 (in millions):

	2014
January 1	$	20.8
Decrease in estimated fair value of contingent consideration included in Selling, general and administrative expense - Cell sorting system	(4.9		)
Acquisition of GnuBIO	10.7
Decrease in estimated fair value of contingent consideration included in Selling, general and administrative expense - GnuBIO	(3.5		)
September 30	$	23.1

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 liability as of September 30, 2014. 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 milestones:
		Credit adjusted discount rates	0.82%	1.29%
		Projected volatility of growth rate	20%	NA
		Market price of risk	1.90%	N/A
GnuBIO	Probability-weighted income approach	Development/regulatory milestones:
		Cumulative milestones probability	50.0%	28.1%
		Discount Rate	0.10%	0.54%
		Sales milestones:
		Cumulative milestones probability	0.00089%	0.00000%
		Discount Rate	0.98%	2.22%

Schedule of available-for-sale investments

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

	September 30, 2014
	Amortized Cost		Unrealized Gains		Unrealized Losses			Estimated Fair Value
Short-term investments:
Corporate debt securities	$	132.3	$	0.4	$	(0.1	)	$	132.6
Foreign brokered certificates of deposit	5.2		—		—			5.2
Municipal obligations	7.9		—		(0.1		)	7.8
Asset-backed securities	49.8		—		(0.1		)	49.7
U.S. government sponsored agencies	46.0		0.1		(0.1		)	46.0
Foreign government obligations	4.4		—		—			4.4
Marketable equity securities	26.7		5.7		(0.1		)	32.3
	272.3		6.2		(0.5		)	278.0
Long-term investments:
Marketable equity securities	54.5		221.8		—			276.3
Asset-backed securities	0.4		—		—			0.4
	54.9		221.8		—			276.7
Total	$	327.2	$	228.0	$	(0.5	)	$	554.7

	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

Summary of fair value of gross unrealized losses for investments with unrealized losses

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

	September 30, 2014		December 31, 2013
Fair value of investments in a loss position 12 months or more	$	12.6	$	2.3
Fair value of investments in a loss position less than 12 months	$	56.8	$	73.9
Gross unrealized losses for investments in a loss position 12 months or more	$	0.2	$	0.1
Gross unrealized losses for investments in a loss position less than 12 months	$	0.3	$	0.8

Discussion of current derivative risk management

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

	September 30,
	2014
Contracts maturing in October through December 2014 to sell foreign currency:
Notional value	$	89.4
Unrealized gain	$	0.3
Contracts maturing in October through December 2014 to purchase foreign currency:
Notional value	$	345.0
Unrealized gain	$	0.3

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 September 30, 2014 by contractual maturity date (in millions):

	Amortized Cost		Estimated Fair Value
Mature in less than one year	$	96.0	$	96.1
Mature in one to five years	110.5		110.6
Mature in more than five years	39.5		39.4
Total	$	246.0	$	246.1

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):

	September 30, 2014					December 31, 2013
	Carrying  Amount		Estimated  Fair  Value		Fair Value Hierarchy Level	Carrying  Amount		Estimated  Fair  Value		Fair Value Hierarchy Level
Other investments	$	81.6	$	367.9	2	$	77.5	$	382.9	2
Total long-term debt, excluding leases and current maturities	$	423.4	$	452.3	2	$	423.2	$	433.0	2