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Financial Instruments and Risk Management (Tables)
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
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 AmountSeptember 30,
2023		December 31,
2022
2.250% Euro Senior Notes due 2024€1,000.0 €1,000.0 €1,000.0 
3.125% Euro Senior Notes due 2028750.0 750.0 750.0 
2.125% Euro Senior Notes due 2025500.0 500.0 500.0 
1.023% Euro Senior Notes due 2024750.0 750.0 750.0 
1.362% Euro Senior Notes due 2027850.0 850.0 850.0 
1.908% Euro Senior Notes due 20321,250.0 1,250.0 1,250.0 
Total€5,100.0 €5,100.0 €5,100.0 
Yen
YEN Term Loan¥40,000.0 ¥40,000.0 ¥40,000.0 
Yen Total¥40,000.0 ¥40,000.0 ¥40,000.0 
Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations
The following table summarizes 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 Gains/(Losses) Recognized in AOCE (Net of Tax) on DerivativesAmount of Gains/(Losses) Reclassified from AOCE into Earnings
Three months ended September 30,
(In millions)Location of Gain/(Loss)202320222023202220232022
Derivative Financial Instruments in Cash Flow Hedging Relationships (1) :
Foreign currency forward contracts
Net sales (3)
$— $— $17.3 $35.3 $15.8 $32.2 
Interest rate swaps
Interest expense (3)
— — (1.0)(0.9)(1.2)(1.2)
Derivative Financial Instruments in Net Investment Hedging Relationships:
Cross-currency interest rate swaps
Interest expense (2)
0.5 — 1.4 — — — 
Non-derivative Financial Instruments in Net Investment Hedging Relationships:
Foreign currency borrowings— — 145.1 292.9 — — 
Derivative Financial Instruments Not Designated as Hedging Instruments:
Foreign currency option and forward contracts
Other (income) expense, net (2)
122.2 (82.7)— — — — 
Total$122.7 $(82.7)$162.8 $327.3 $14.6 $31.0 
Amount of Gains/(Losses) Recognized in EarningsAmount of Gains/(Losses) Recognized in AOCE (Net of Tax) on DerivativesAmount of Gains/(Losses) Reclassified from AOCE into Earnings
Nine months ended September 30,
(In millions)Location of Gain/(Loss)202320222023202220232022
Derivative Financial Instruments in Cash Flow Hedging Relationships (1) :
Foreign currency forward contracts
Net sales (3)
$— $— $60.8 $78.1 $32.5 $74.5 
Interest rate swaps
Interest expense (3)
— — (2.8)(2.6)(3.5)(3.4)
Derivative Financial Instruments in Net Investment Hedging Relationships:
Cross-currency interest rate swaps
Interest expense (2)
0.5 — 1.4 — — — 
Non-derivative Financial Instruments in Net Investment Hedging Relationships:
Foreign currency borrowings— — 83.1 747.8 — — 
Derivative Financial Instruments Not Designated as Hedging Instruments:
Foreign currency option and forward contracts
Other (income) expense, net (2)
135.4 (7.9)— — — — 
Total$135.9 $(7.9)$142.5 $823.3 $29.0 $71.1 
____________
(1)At September 30, 2023, the Company expects that approximately $11.0 million of pre-tax net gains on cash flow hedges will be reclassified from AOCE into earnings during the next twelve months.
(2)Represents the location of the gain/(loss) recognized in earnings on derivatives.
(3)Represents the location of the gain/(loss) reclassified from AOCE into earnings.
Financial Assets and Liabilities Carried at Fair Value
The following table summarizes the classification and fair values of derivative instruments in our condensed consolidated balance sheets:
Asset Derivatives Liability Derivatives
(In millions)Balance Sheet LocationSeptember 30, 2023 Fair ValueDecember 31, 2022 Fair ValueBalance Sheet LocationSeptember 30, 2023 Fair ValueDecember 31, 2022 Fair Value
Derivatives designated as hedges:
Foreign currency forward contractsPrepaid expenses & other current assets$49.7 $30.4 Other current liabilities$3.4 $26.4 
Total derivatives designated as hedges49.7 30.4 3.4 26.4 
Derivatives not designated as hedges:
Foreign currency forward contractsPrepaid expenses & other current assets125.0 104.3 Other current liabilities45.8 160.6 
Total derivatives not designated as hedges125.0 104.3 45.8 160.6 
Total derivatives $174.7 $134.7 $49.2 $187.0 
Financial assets and liabilities carried at fair value are classified in the tables below in one of the three categories described above:
 September 30, 2023December 31, 2022
(In millions)Level 1Level 2Level 3Level 1Level 2Level 3
Recurring fair value measurements
Financial Assets
Cash equivalents:
Money market funds$1,009.6 $— $— $688.8 $— $— 
Total cash equivalents1,009.6 — — 688.8 — — 
Equity securities:
Exchange traded funds44.9 — — 42.4 — — 
Marketable securities0.2 — — 0.2 — — 
Total equity securities45.1 — — 42.6 — — 
CCPS in Biocon Biologics— — 1,048.0 — — 997.4 
Available-for-sale fixed income investments:
Corporate bonds— 14.7 — — 13.2 — 
U.S. Treasuries— 10.4 — — 11.7 — 
Agency mortgage-backed securities— 4.8 — — 4.7 — 
Asset backed securities— 5.0 — — 5.1 — 
Other— 0.2 — — 0.6 — 
Total available-for-sale fixed income investments— 35.1 — — 35.3 — 
Foreign exchange derivative assets— 174.7 — — 134.7 — 
Total assets at recurring fair value measurement$1,054.7 $209.8 $1,048.0 $731.4 $170.0 $997.4 
Financial Liabilities
Foreign exchange derivative liabilities— 49.2 — — 187.0 — 
Contingent consideration— — 371.1 — — 375.0 
Total liabilities at recurring fair value measurement$— $49.2 $371.1 $— $187.0 $375.0 
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, 2022 to September 30, 2023 is as follows:
(In millions)
Current Portion (1)
Long-Term Portion (2)
Total Contingent Consideration
Balance at December 31, 2022$64.4 $310.6 $375.0 
Payments(33.6)— (33.6)
Reclassifications28.6 (28.6)— 
Accretion— 17.1 17.1 
Fair value loss (3)
— 12.6 12.6 
Balance at September 30, 2023$59.4 $311.7 $371.1 
____________
(1)Included in other current liabilities in the condensed consolidated balance sheets.
(2)Included in other long-term obligations in the condensed consolidated balance sheets.
(3)Included in litigation settlements and other contingencies, net in the condensed consolidated statements of operations.