XML 61 R18.htm IDEA: XBRL DOCUMENT v3.24.3
Fair Value Measurements
 9 Months Ended
Sep. 28, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
The table below summarizes the valuation of our financial instruments carried at fair value by the applicable pricing categories (in millions):
September 28, 2024December 31, 2023
Measured at fair value on a recurring basis:Level 1Level 2Level 3Level 1Level 2Level 3
Assets:
Investment securities$— $— $— $0.1 $— $— 
Foreign currency forward contracts— 2.6 — — 0.6 — 
Interest rate swap agreements— 1.8 — — 30.5 — 
Total assets$— $4.4 $— $0.1 $31.1 $— 
Liabilities:
Cross-currency swap$— $152.6 $— $— $172.0 $— 
Foreign currency forward contracts— 3.9 — — 2.7 — 
Interest rate swap agreements— 45.6 — — 11.7 — 
Total liabilities$— $202.1 $— $— $186.4 $— 
Measured at fair value on a non-recurring basis:
Assets:
Goodwill(1)
$— $— $— $— $— $118.9 
Assets held for sale, net(2)
$— $— $4.8 $— $— $— 
Total assets held for sale, net$— $— $4.8 $— $— $118.9 
(1) During the year ended December 31, 2023, goodwill within the Rare Diseases Business with a carrying value of $208.9 million was written down to a fair value of $118.9 million.
(2) We measured the net assets held for sale for impairment purposes and recorded a total impairment of $10.8 million, resulting in a net asset held for sale balance of $4.8 million (refer to Note 4).

There were no transfers within Level 3 fair value measurements during the three and nine months ended September 28, 2024 or the year ended December 31, 2023.

Non-recurring Fair Value Measurements

Non-recurring fair values represent only those assets whose carrying values were adjusted to fair value during the reporting period.

Goodwill and Intangible Assets

Hospital & Specialty Business

During the three months ended September 28, 2024, we prepared a goodwill impairment test utilizing the estimated closing consideration resulting from the definitive agreement to sell the Hospital & Specialty Business to Genesis Capital. The estimated consideration included an upfront cash payment. We determined the carrying value of this business exceeded the fair value and recorded an impairment in the CSCI segment (refer to Note 9).

Rare Diseases Business

On July 10, 2024, we completed the sale of our Rare Diseases Business to ESTEVE and valued the contingent earn-out milestone payments at $34.5 million utilizing a Monte Carlo simulation. The approach determined the expected value of achieving the milestone payments based on adjusted revenue projections for the Rare Diseases Business and the cash flows were discounted.
Assets (liabilities) held for sale, net

During the three months ended September 28, 2024, we classified the Hospital & Specialty Business disposal group as held for sale, we prepared a fair value analysis and estimated remaining costs to sell. We determined the carrying value of the net assets held for sale exceeded the fair value less cost to sell and recorded an impairment in the CSCI segment (refer to Note 4).

Fixed Rate Long-term Debt    

Our fixed rate long-term debt consisted of the following (in millions):
September 28, 2024December 31, 2023
Public BondsLevel 1Level 1
Carrying value (excluding discount)$3,350.0 $2,244.4 
Fair value$3,272.2 $2,062.2 

The fair values of our public bonds for all periods were based on quoted market prices. The fair values of our private placement notes for all periods were based on interest rates offered for borrowings of a similar nature and remaining maturities.
The carrying amounts of our other financial instruments, consisting of cash and cash equivalents, accounts receivable, accounts payable, short-term debt, revolving credit agreements, and variable rate long-term debt, approximate their fair value.