XML 55 R39.htm IDEA: XBRL DOCUMENT v3.22.4
Financial Instruments and Risk Management (Tables)
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of notional amounts of net investment hedges
The following table summarizes the principal amounts of the Company’s outstanding Euro and Yen borrowings and the notional amounts of the Euro and Yen borrowings designated as net investment hedges:
Notional Amount Designated as a Net Investment Hedge
(in millions)Principal AmountDecember 31,
2022		December 31,
2021
Euro
2.250% Euro Senior Notes due 2024
€1,000.0 €1,000.0 €1,000.0 
3.125% Euro Senior Notes due 2028
750.0 750.0 750.0 
2.125% Euro Senior Notes due 2025
500.0 500.0 500.0 
0.816% Euro Senior Notes due 2022 (1)
750.0 — 750.0 
1.023% Euro Senior Notes due 2024
750.0 750.0 750.0 
1.362% Euro Senior Notes due 2027
850.0 850.0 850.0 
1.908% Euro Senior Notes due 2032
1,250.0 1,250.0 1,250.0 
Euro Total€5,850.0 €5,100.0 €5,850.0 
Yen
YEN Term Loan¥40,000.0 ¥40,000.0 ¥40,000.0 
Yen Total¥40,000.0 ¥40,000.0 ¥40,000.0 
____________
(1)The Senior Notes were repaid at maturity during the second quarter of 2022.
Summary of classification and fair values of derivative instruments in consolidated balance sheets
The following table summarizes the classification and fair values of derivative instruments in our consolidated balance sheets:
Asset Derivatives Liability Derivatives
(In millions)Balance Sheet LocationDecember 31, 2022 Fair ValueDecember 31, 2021 Fair ValueBalance Sheet LocationDecember 31, 2022 Fair ValueDecember 31, 2021 Fair Value
Derivatives designated as hedges:
Foreign currency forward contractsPrepaid expenses & other current assets$30.4 $62.0 Other current liabilities$26.4 $4.3 
Total derivatives designated as hedges30.4 62.0 26.4 4.3 
Derivatives not designated as hedges:
Foreign currency forward contractsPrepaid expenses & other current assets104.3 82.6Other current liabilities160.6 56.7
Total derivatives not designated as hedges104.3 82.6160.6 56.7
Total derivatives $134.7 $144.6 $187.0 $61.0 
Effect of Derivative Instruments on the Consolidated Statements of Operations
The following tables summarize information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk:

Amount of Gains/(Losses) Recognized in EarningsAmount of Gain Excluded from the Assessment of Hedge Effectiveness
Year Ended December 31,Year Ended December 31,
(In millions)Location of Gain/(Loss)202220212020202220212020
Derivative Financial Instruments in Fair Value Hedge Relationships (1) :
Interest rate swaps
Interest expense (3)
$— $— $22.1 $— $— $— 
2023 Senior Notes (3.125% coupon)
Interest expense (3)
— — (22.1)— — — 
Derivative Financial Instruments in Cash Flow Hedging Relationships :
Foreign currency forward contracts
Other (income) expense, net (4)
— — — — — 7.1 
Derivative Financial Instruments Not Designated as Hedging Instruments:
Foreign currency option and forward contracts
Other (income) expense, net (3)
(82.1)39.3 (10.1)— — — 
Total$(82.1)$39.3 $(10.1)$— $— $7.1 
Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on DerivativesAmount of Gains/(Losses) Reclassified from AOCE into Earnings
Year Ended December 31,Year Ended December 31,
(In millions)Location of Gain/(Loss)202220212020202220212020
Derivative Financial Instruments in Cash Flow Hedging Relationships (2) :
Foreign currency forward contracts
Net sales (5)
$34.2 $45.8 $20.6 $89.2 $30.9 $4.8 
Interest rate swaps
Interest expense (5)
(3.5)(3.4)— (4.5)(4.3)(4.5)
Non-derivative Financial Instruments in Net Investment Hedging Relationships:
Foreign currency borrowings360.1 436.6 (346.4)— — — 
Total$390.8 $479.0 $(325.8)$84.7 $26.6 $0.3 
____________
(1)In the first quarter of 2020, the Company terminated interest rate swaps designated as a fair value hedge resulting in net proceeds of approximately $45 million. The amount included in the above tables represents the fair value adjustment recognized at the date the interest rate swaps were settled.
(2)At December 31, 2022, the Company expects that approximately $8.0 million of pre-tax net losses on cash flow hedges will be reclassified from AOCE into earnings during the next twelve months.
(3)Represents the location of the gain/(loss) recognized in earnings on derivatives.
(4)Represents the location of the gain excluded from the assessment of hedge effectiveness.
(5)Represents the location of the gain/(loss) reclassified from AOCE into earnings.
Financial Assets and Liabilities Carried at Fair Value
Financial assets and liabilities carried at fair value are classified in the tables below in one of the three categories described above:
December 31, 2022December 31, 2021
(In millions)Level 1Level 2Level 3Level 1Level 2Level 3
Recurring fair value measurements
Financial Assets
Cash equivalents:
Money market funds$688.8 $— $— $50.9 $— $— 
Total cash equivalents688.8 — — 50.9 — — 
Equity securities:
Exchange traded funds42.4 — — 50.3 — — 
Marketable securities0.2 — — 0.7 — — 
Total equity securities42.6 — — 51.0 — — 
CCPS in Biocon Biologics— — 997.4 — — — 
Available-for-sale fixed income investments:
Corporate bonds— 13.2 — — 16.6 — 
U.S. Treasuries— 11.7 — — 14.6 — 
Agency mortgage-backed securities— 4.7 — — 2.0 — 
Asset backed securities— 5.1 — — 4.6 — 
Other— 0.6 — — 0.4 — 
Total available-for-sale fixed income investments— 35.3 — — 38.2 — 
Foreign exchange derivative assets— 134.7 — — 144.6 — 
Total assets at recurring fair value measurement$731.4 $170.0 $997.4 $101.9 $182.8 $— 
Financial Liabilities
Foreign exchange derivative liabilities$— $187.0 $— $— $61.0 $— 
Contingent consideration— — 375.0 — — 199.7 
Total liabilities at recurring fair value measurement$— $187.0 $375.0 $— $61.0 $199.7 
Schedule of Business Acquisitions by Acquisition, Contingent Consideration
A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2020 to December 31, 2022 is as follows:
(In millions)
Current Portion (1)
Long-Term Portion (2)
Total Contingent Consideration
Balance at December 31, 2020$100.5 $123.1 $223.6 
Payments(83.2)— (83.2)
Reclassifications49.4 (49.4)— 
Accretion— 9.0 9.0 
Fair value loss (3)
— 50.3 50.3 
Balance at December 31, 2021$66.7 $133.0 $199.7 
Payments(64.1)— (64.1)
Biocon Biologics Transaction— 220.0 220.0 
Reclassifications61.8 (61.8)— 
Accretion— 8.2 8.2 
Fair value loss (3)
— 11.2 11.2 
Balance at December 31, 2022$64.4 $310.6 $375.0 
____________
(1)Included in other current liabilities in the consolidated balance sheets.
(2)Included in other long-term obligations in the consolidated balance sheets.
(3)Included in litigation settlements and other contingencies, net in the consolidated statements of operations.
Schedule of Available-for-Sale Securities Reconciliation
The amortized cost and estimated fair value of available-for-sale securities were as follows:
(In millions)Balance Sheet LocationCostGross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
December 31, 2022
Available-for-sale fixed income investmentsPrepaid expenses and other current assets$38.0 $— $(2.7)$35.3 
$38.0 $— $(2.7)$35.3 
December 31, 2021
Available-for-sale fixed income investmentsPrepaid expenses and other current assets$38.1 $0.1 $— $38.2 
$38.1 $0.1 $— $38.2 
Maturities Of Available-for-Sale Debt Securities At Fair Value
Maturities of available-for-sale fixed income investments at fair value as of December 31, 2022, were as follows:
(In millions) 
Mature within one year$1.0 
Mature in one to five years18.4 
Mature in five years and later15.9 
$35.3