Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Assets and Liabilities Measured on Recurring Basis

The composition of our financial assets and liabilities among the three levels of the fair value hierarchy are as follows (in millions):

	March 31, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	20.0	$	—	$	—	$	20.0
Foreign certificates of deposit and time deposits		—		245.3		—		245.3
Short-term investments:
Foreign certificates of deposit and time deposits		—		10.5		—		10.5
Derivative assets:
Designated hedging derivatives - foreign exchange contracts⁽¹⁾		—		14.8		—		14.8
Total financial assets	$	20.0	$	270.6	$	—	$	290.6

Liabilities:
Derivative liabilities:
Non-designated hedging derivatives - foreign exchange contracts⁽¹⁾	$	—	$	3.8	$	—	$	3.8
Contingent consideration		—		—		7.3		7.3
Total financial liabilities	$	—	$	3.8	$	7.3	$	11.1

⁽¹⁾Designated hedging derivatives are presented net of the non-designated hedging derivatives within other current assets in the Company’s consolidated balance sheet.

	December 31, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	117.7	$	—	$	—	$	117.7
Foreign certificates of deposit and time deposits		—		216.4		—		216.4
Short-term investments:
Corporate debt securities		—		112.0		—		112.0
Foreign certificates of deposit and time deposits		—		11.3		—		11.3
Mutual funds		—		45.7		—		45.7
Derivative assets:
Designated hedging derivatives - foreign exchange contracts⁽¹⁾		—		9.3		—		9.3
Total financial assets	$	117.7	$	394.7	$	—	$	512.4

Liabilities:
Derivative liabilities:
Non-designated hedging derivatives - foreign exchange contracts⁽¹⁾	$	—	$	2.3	$	—	$	2.3
Contingent consideration		—		—		257.6		257.6
Total financial liabilities	$	—	$	2.3	$	257.6	$	259.9

⁽¹⁾ Designated hedging derivatives are presented net of the non-designated hedging derivatives within other current assets in the Company’s consolidated balance sheet.

Fair Value Liabilities Measured on Recurring Basis

The following table presents the activity for the three months ended March 31, 2022 related to our Level 3 contingent consideration liabilities (in millions):

Level 3 Liabilities:	Contingent Consideration
Balance as of December 31, 2021	$	257.6
Additions		—
Fair value adjustments		(25.7	)
Payments		(224.6	)
Balance as of March 31, 2022	$	7.3

Significant Unobservable Inputs Used in Measuring the Fair Value

The table below outlines the significant unobservable inputs used in estimating their fair values as of March 31, 2022, weighted by the relative fair value of each annual period’s obligation to the total obligation (in millions, except percentages):

	March 31, 2022
	Range	Weighted Average
Annual bookings	$6.9 - $34.8	$25.8
Discount rates	14.0% - 14.0%	14.0%

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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