3. Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Debt Securities, Available-for-sale [Table Text Block]

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

	June 30, 2020
	Amortized Cost		Unrealized Gains		Unrealized Losses		Allowances for Credit Losses		Fair Value
Short-term investments:
Corporate debt securities	$	171.0	$	3.0	$	(0.1)	$	—	$	173.9
Municipal obligations	14.6		0.2		—		—		14.8
Asset-backed securities	60.6		0.5		(0.1)		—		61.0
U.S. government sponsored agencies	115.2		2.8		—		—		118.0
Foreign government obligations	5.5		0.1		—		—		5.6
Other foreign obligations	2.1		—		—		—		2.1
	369.0		6.6		(0.2)		—		375.4
Long-term investments:
Asset-backed securities	0.1		—		—		—		0.1
	0.1		—		—		—		0.1
Total	$	369.1	$	6.6	$	(0.2)	$	—	$	375.5

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

	December 31, 2019
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Short-term investments:
Corporate debt securities	$	203.2	$	1.4	$	(0.1)	$	204.5
Municipal obligations	11.5		0.1		—		11.6
Asset-backed securities	72.7		0.2		(0.1)		72.8
U.S. government sponsored agencies	105.6		0.7		(0.2)		106.1
Foreign government obligations	4.7		—		—		4.7
Other foreign obligations	3.1		—		—		3.1
	400.8		2.4		(0.4)		402.8
Long-term investments:
Asset-backed securities	0.1		—		—		0.1
	0.1		—		—		0.1
Total	$	400.9	$	2.4	$	(0.4)	$	402.9

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 June 30, 2020 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	$	—	$	67.7	$	—	$	67.7
Asset-backed securities	—		0.1		—		0.1
U.S. government sponsored agencies	—		0.7		—		0.7
Time deposits	26.5		10.0		—		36.5
Money market funds	115.9		—		—		115.9
Total cash equivalents (a)	142.4		78.5		—		220.9
Restricted investments (b)	6.6		—		—		6.6
Equity securities (c)	6,724.1		—		—		6,724.1
Available-for-sale investments:
Corporate debt securities	—		173.9		—		173.9
U.S. government sponsored agencies	—		118.0		—		118.0
Foreign government obligations	—		5.6		—		5.6
Other foreign obligations	—		2.1		—		2.1
Municipal obligations	—		14.8		—		14.8
Asset-backed securities	—		61.1		—		61.1
Total available-for-sale investments (d)	—		375.5		—		375.5
Forward foreign exchange contracts (e)	—		0.6		—		0.6
Total financial assets carried at fair value	$	6,873.1	$	454.6	$	—	$	7,327.7
Financial liabilities carried at fair value:
Forward foreign exchange contracts (f)	$	—	$	0.2	$	—	$	0.2
Contingent consideration (g)	—		—		2.7		2.7
Total financial liabilities carried at fair value	$	—	$	0.2	$	2.7	$	2.9

Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2019 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	$	—	$	42.9	$	—	$	42.9
Time deposits	31.2		10.0		—		41.2
Asset-backed securities	—		0.1		—		0.1
Money market funds	69.9		—		—		69.9
Total cash equivalents (a)	101.1		53.0		—		154.1
Restricted investments (b)	5.6		—		—		5.6
Equity securities (c)	4,664.4		—		—		4,664.4
Available-for-sale investments:
Corporate debt securities	—		204.5		—		204.5
U.S. government sponsored agencies	—		106.1		—		106.1
Foreign government obligations	—		4.7		—		4.7
Other foreign obligations	—		3.1		—		3.1
Municipal obligations	—		11.6		—		11.6
Asset-backed securities	—		72.9		—		72.9
Total available-for-sale investments (d)	—		402.9		—		402.9
Forward foreign exchange contracts (e)	—		0.9		—		0.9
Total financial assets carried at fair value	$	4,771.1	$	456.8	$	—	$	5,227.9
Financial liabilities carried at fair value:
Forward foreign exchange contracts (f)	$	—	$	1.0	$	—	$	1.0
Contingent consideration (g)	—		—		4.9		4.9
Total financial liabilities carried at fair value	$	—	$	1.0	$	4.9	$	5.9

(a)Cash equivalents are included in Cash and cash equivalents in the condensed consolidated balance sheets.

(b) Restricted investments are included in the following accounts in the condensed consolidated balance sheets (in millions):

	June 30, 2020		December 31, 2019
Restricted investments	$	5.6	$	5.6
Other investments	1.0		—
Total	$	6.6	$	5.6

(c) Equity securities are included in the following accounts in the condensed consolidated balance sheets (in millions):

	June 30, 2020		December 31, 2019
Short-term investments	$	49.0	$	51.0
Other investments	6,675.1		4,613.4
Total	$	6,724.1	$	4,664.4

The unrealized gains on our equity securities for the three and six months ended June 30, 2020 were $1,183.5 million and $2,011.2 million, respectively, and were primarily due to our investment in Sartorius AG and are recorded in our condensed consolidated statements of income.

We own shares of ordinary voting stock of Sartorius AG (Sartorius), of Goettingen, Germany, a process technology supplier to the biotechnology, pharmaceutical, chemical and food and beverage industries. We own approximately 37% of the outstanding voting shares (excluding treasury shares) of Sartorius as of June 30, 2020. The Sartorius family trust and Sartorius family members hold a controlling interest of the outstanding voting shares. We do not have any representative or designee on Sartorius' board of directors, nor do we have the ability to exercise significant influence over the operating and financial policies of Sartorius.

(d) Available-for-sale investments are included in the following accounts in the condensed consolidated balance sheets (in millions):

	June 30, 2020		December 31, 2019
Short-term investments	$	375.4	$	402.8
Other investments	0.1		0.1
Total	$	375.5	$	402.9

(e) Forward foreign exchange contracts in an asset position are included in Other current assets in the condensed consolidated balance sheets.

(f) Forward foreign exchange contracts in a liability position are included in Other current liabilities in the condensed consolidated balance sheets.

(g) Contingent consideration liability is included in the following accounts in the condensed consolidated balance sheets (in millions):

	June 30, 2020		December 31, 2019
Other current liabilities	$	2.6	$	3.3
Other long-term liabilities	0.1		1.6
Total	$	2.7	$	4.9

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 (in millions):

December 31, 2019	$	4.9
Analytical flow cytometer platform:
Payment of sales milestone	(1.3)
Decrease in estimated fair value of contingent consideration included in Selling, general and administrative expense	(1.0)
Foreign distributor:
Change in estimated fair value of contingent consideration included in Selling, general and administrative expense	—
Celsee, Inc.:
Fair value of contingent consideration	0.1
June 30, 2020	$	2.7

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):

	June 30, 2020
	Less than 12 months				Greater than 12 months				Total
Description of securities:	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate debt securities	$	23.2	$	0.1	$	—	$	—	$	23.2	$	0.1
Asset-backed securities	12.7		0.1		—		—		12.7		0.1
Total	$	35.9	$	0.2	$	—	$	—	$	35.9	$	0.2

	December 31, 2019
	Less than 12 months				Greater than 12 months				Total
Description of securities:	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Corporate debt securities	$	46.5	$	0.1	$	2.1	$	—	$	48.6	$	0.1
Asset-backed securities	17.9		—		7.0		0.1		24.9		0.1
U.S government sponsored agencies	27.5		0.2		10.8		—		38.3		0.2
Total	$	91.9	$	0.3	$	19.9	$	0.1	$	111.8	$	0.4

Discussion of current derivative risk management

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

	June 30,
	2020
Contracts maturing in July through September 2020 to sell foreign currency:
Notional value	$	65.0
Unrealized gain or loss	$	—
Contracts maturing in July through September 2020 to purchase foreign currency:
Notional value	$	226.9
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 June 30, 2020 by contractual maturity date (in millions):

	Amortized Cost		Estimated Fair Value
Mature in less than one year	$	187.8	$	188.7
Mature in one to five years	128.6		131.5
Mature in more than five years	52.7		55.3
Total	$	369.1	$	375.5

Estimated fair value of financial instruments

The estimated fair value of our long-term debt and the level of the fair value hierarchy within which the fair value measurement is categorized are as follows (in millions):

	June 30, 2020					December 31, 2019
	Carrying  Amount		Estimated  Fair  Value		Fair Value Hierarchy Level	Carrying  Amount		Estimated  Fair  Value		Fair Value Hierarchy Level
Current maturities of long-term debt, excluding leases	$	424.7	$	432.1	2	$	424.4	$	435.5	2