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Financial Instruments and Fair Value Measurement
 9 Months Ended
Sep. 30, 2013
Fair Value Disclosures [Abstract]  
Financial Instruments and Fair Value Measurement
Financial Instruments and Fair Value Measurement
 
The table below presents information about assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2013 and the valuation techniques we utilized to determine such fair value.  Fair values determined based on Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities.  Our Level 1 assets consist of marketable equity securities.  Fair values determined based on Level 2 inputs utilize observable quoted prices for similar assets and liabilities in active markets and observable quoted prices for identical or similar assets in markets that are not very active.  Our Level 2 assets consist primarily of U.S. Treasury securities, U.S. government-sponsored agency securities, U.S. government-sponsored agency mortgage-backed securities, non-U.S. government, agency and Supranational securities, global corporate debt securities, asset backed securities, foreign currency forward contracts, purchased foreign currency options and interest rate swap contracts.  Fair values determined based on Level 3 inputs utilize unobservable inputs and include valuations of assets or liabilities for which there is little, if any, market activity.  We do not have any Level 3 assets.  Our Level 1 liability relates to our publicly traded CVRs. See Note 2 of Notes to Consolidated Financial Statements included in our 2012 Annual Report on Form 10-K for a description of the CVRs.  Our Level 2 liabilities relate to interest rate swap contracts, forward starting interest rate swap contracts and written foreign currency options.  Our Level 3 liabilities consist of contingent consideration related to undeveloped product rights resulting from the acquisition of Gloucester Pharmaceuticals, Inc. (Gloucester) and contingent consideration related to the undeveloped product rights and the technology platform acquired from the Avila acquisition.  The maximum potential payments related to the contingent consideration from the acquisitions of Gloucester and Avila are estimated to be $120.0 million and $595.0 million, respectively.
 
Balance at
September 30, 2013
 
Quoted Price in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Other Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Available-for-sale securities
$
3,424.3

 
$
422.3

 
$
3,002.0

 
$
—

Cash equivalents
52.0

 
—

 
52.0

 
—

Total assets
$
3,476.3

 
$
422.3

 
$
3,054.0

 
$
—

Liabilities:
 

 
 

 
 

 
 

Forward currency contracts
$
(8.9
)
 
$
—

 
$
(8.9
)
 
$
—

Contingent value rights
(347.9
)
 
(347.9
)
 
—

 
—

Written currency options
(0.3
)
 
—

 
(0.3
)
 
—

Interest rate swaps
(31.5
)
 
—

 
(31.5
)
 
—

Other acquisition related contingent consideration
(207.0
)
 
—

 
—

 
(207.0
)
Total liabilities
$
(595.6
)
 
$
(347.9
)
 
$
(40.7
)
 
$
(207.0
)
 
 
 
 
 
 
 
 
 
Balance at
December 31, 2012
 
Quoted Price in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Other Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Assets:
 

 
 

 
 

 
 

Available-for-sale securities
$
1,809.9

 
$
0.3

 
$
1,809.6

 
$
—

Cash equivalents
27.0

 
—

 
27.0

 
—

Interest rate swaps
1.7

 
—

 
1.7

 
—

Forward currency contracts
17.8

 
—

 
17.8

 
—

Purchased currency options
2.7

 
—

 
2.7

 
—

Total assets
$
1,859.1

 
$
0.3

 
$
1,858.8

 
$
—

Liabilities:
 

 
 

 
 

 
 

Contingent value rights
$
(277.4
)
 
$
(277.4
)
 
$
—

 
$
—

Written currency options
(5.1
)
 
—

 
(5.1
)
 
—

Other acquisition related contingent consideration
(198.1
)
 
—

 
—

 
(198.1
)
Total liabilities
$
(480.6
)
 
$
(277.4
)
 
$
(5.1
)
 
$
(198.1
)


There were no security transfers between Levels 1 and 2 during the nine-month periods ended September 30, 2013 and 2012.  The following table represents a roll-forward of the fair value of Level 3 instruments (significant unobservable inputs): 
 
Nine-Month Periods Ended September 30,
 
2013
 
2012
Liabilities:
 

 
 

Balance at beginning of period
$
(198.1
)
 
$
(76.9
)
Amounts acquired or issued
—

 
(171.7
)
Net change in fair value
(8.9
)
 
35.6

Settlements
—

 
—

Transfers in and/or out of Level 3
—

 
—

Balance at end of period
$
(207.0
)
 
$
(213.0
)

 
Level 3 liabilities issued during the nine-month period ended September 30, 2012 consisted of contingent consideration related to the acquisition of Avila.