XML 47 R36.htm IDEA: XBRL DOCUMENT v3.24.3
Financial Instruments and Risk Management (Tables)
 9 Months Ended
Sep. 30, 2024
Derivatives, Fair Value [Line Items]  
Schedule of Derivative Instruments in Statement of Financial Position, 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 Location
September 30, 2024 Fair Value
December 31, 2023 Fair Value
Balance Sheet Location
September 30, 2024 Fair Value
December 31, 2023 Fair Value
Derivatives designated as hedges:
Cross-currency interest rate swapsPrepaid expenses & other current assets$0.5 $— Other current liabilities$17.7 $— 
Foreign currency forward contractsPrepaid expenses & other current assets3.4 17.5 Other current liabilities15.8 35.8 
Total derivatives designated as hedges3.9 17.5 33.5 35.8 
Derivatives not designated as hedges:
Foreign currency forward contractsPrepaid expenses & other current assets69.8 88.7 Other current liabilities103.0 88.8 
Total derivatives not designated as hedges69.8 88.7 103.0 88.8 
Total derivatives $73.7 $106.2 $136.5 $124.6 
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:
 September 30, 2024December 31, 2023
(In millions)Level 1Level 2Level 3Level 1Level 2Level 3
Recurring fair value measurements
Financial Assets
Cash equivalents:
Money market funds$661.9 $— $— $651.4 $— $— 
Total cash equivalents661.9 — — 651.4 — — 
Equity securities:
Exchange traded funds55.4 — — 49.1 — — 
Marketable securities0.2 — — 0.2 — — 
Total equity securities55.6 — — 49.3 — — 
CCPS in Biocon Biologics— — 1,345.0 — — 976.3 
Available-for-sale fixed income investments:
Corporate bonds— 14.5 — — 15.9 — 
U.S. Treasuries— 15.9 — — 11.2 — 
Agency mortgage-backed securities— 3.3 — — 4.6 — 
Asset backed securities— 4.7 — — 5.1 — 
Other— 1.3 — — 0.2 — 
Total available-for-sale fixed income investments— 39.7 — — 37.0 — 
Foreign exchange derivative assets— 73.2 — — 106.2 — 
Interest rate swap derivative assets— 0.5 — — — — 
Total assets at recurring fair value measurement$717.5 $113.4 $1,345.0 $700.7 $143.2 $976.3 
Financial Liabilities
Foreign exchange derivative liabilities$— $118.8 $— $— $124.6 $— 
Interest rate swap derivative liabilities— 17.7 — — — — 
Contingent consideration— — 540.6 — — 215.1 
Total liabilities at recurring fair value measurement$— $136.5 $540.6 $— $124.6 $215.1 
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)
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,
2024		December 31,
2023
2.250% Euro Senior Notes due 2024 (1)
€1,000.0 €810.8 €1,000.0 
1.023% Euro Senior Notes due 2024 (2)
750.0 — 750.0 
2.125% Euro Senior Notes due 2025 (3)
500.0 — 500.0 
1.362% Euro Senior Notes due 2027
850.0 850.0 850.0 
3.125% Euro Senior Notes due 2028
750.0 750.0 750.0 
1.908% Euro Senior Notes due 2032
1,250.0 1,250.0 1,250.0 
Foreign currency forward contracts (4)
— — 500.0 
Euro Total€5,100.0 €3,660.8 €5,600.0 
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 Company de-designated €189.2 million of the 2.250% Euro Senior Notes due 2024 as net investment hedges during the third quarter of 2024 and an additional €200.0 million in October 2024.
(2)The Euro Senior Notes were repaid at maturity during the second quarter of 2024.
(3)In conjunction with the partial Senior Notes repayment during the third quarter of 2024 (refer to Note 12 Debt for more information), the Company de-designated the €500 million 2.125% Euro Senior Notes due 2025 as net investment hedges.
(4)The principal amount of the foreign currency forward contracts at December 31, 2023 was €500 million. The contracts matured in July 2024.
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)202420232024202320242023
Derivative Financial Instruments in Cash Flow Hedging Relationships (1) :
Foreign currency forward contracts
Net sales (3)
$— $— $(27.5)$17.3 $5.9 $15.8 
Interest rate swaps
Interest expense (3)
— — (1.2)(1.0)(1.6)(1.2)
Interest rate swaps
Other income, net (3)
— — — — (3.4)— 
Derivative Financial Instruments in Net Investment Hedging Relationships:
Cross-currency interest rate swaps
Interest expense (2)
3.4 0.5 (21.7)1.4 — — 
Foreign currency forward contracts
— — (4.3)— — — 
Non-derivative Financial Instruments in Net Investment Hedging Relationships:
Foreign currency borrowings— — (168.4)145.1 — — 
Derivative Financial Instruments Not Designated as Hedging Instruments:
Foreign currency option and forward contracts
Other income, net (2)
(91.3)122.2 — — — — 
Total$(87.9)$122.7 $(223.1)$162.8 $4.3 $14.6 
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)202420232024202320242023
Derivative Financial Instruments in Cash Flow Hedging Relationships (1) :
Foreign currency forward contracts
Net sales (3)
$— $— $10.2 $60.8 $22.5 $32.5 
Interest rate swaps
Interest expense (3)
— — (3.7)(2.8)(4.8)(3.5)
Interest rate swaps
Other income, net (3)
— — — — (3.4)— 
Derivative Financial Instruments in Net Investment Hedging Relationships:
Cross-currency interest rate swaps
Interest expense (2)
7.2 0.5 (11.7)1.4 — — 
Foreign currency forward contracts
— — 9.7 — — — 
Non-derivative Financial Instruments in Net Investment Hedging Relationships:
Foreign currency borrowings— — (6.3)83.1 — — 
Derivative Financial Instruments Not Designated as Hedging Instruments:
Foreign currency option and forward contracts
Other income, net (2)
(45.2)135.4 — — — — 
Total$(38.0)$135.9 $(1.8)$142.5 $17.7 $29.0 
____________
(1)At September 30, 2024, the Company expects that approximately $29.0 million of pre-tax net losses 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.
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]
A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2023 to September 30, 2024 is as follows:
(In millions)
Current Portion (1)
Long-Term Portion (2)
Total Contingent Consideration
Balance at December 31, 2023$76.1 $139.0 $215.1 
Acquisition
— 345.0 345.0 
Payments(84.8)— (84.8)
Reclassifications58.5 (58.5)— 
Accretion— 36.9 36.9 
Fair value loss (3)
— 28.4 28.4 
Balance at September 30, 2024$49.8 $490.8 $540.6 
____________
(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.