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Financial Instruments and Fair Value Measurement
 12 Months Ended
Dec. 31, 2015
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 December 31, 2015 and 2014, and the valuation techniques we utilized to determine such fair value. 
 
•
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Our Level 1 assets consist of marketable equity securities. Our Level 1 liability relates to our publicly traded Contingent Value Rights (CVRs). See Note 18 for a description of the CVRs. 

•
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 MBS, 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. Our Level 2 liabilities relate to written foreign currency options, foreign currency forward contracts and interest rate swap contracts.

•
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 3 liabilities consist of contingent consideration related to undeveloped product rights resulting from the acquisitions of Gloucester Pharmaceuticals, Inc. (Gloucester) and Nogra in addition to contingent consideration related to the undeveloped product rights and technology platforms acquired as part of the acquisitions of Avila Therapeutics, Inc. (Avila) and Quanticel. The maximum remaining potential payments related to the contingent consideration from the acquisitions of Gloucester, Avila and Quanticel are estimated to be $120.0 million, $555.0 million and $385.0 million, respectively, and $1.865 billion plus amounts based on sales pursuant to the license agreement with Nogra.
 
 
Balance at
December 31, 2015
 
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
 
$
1,671.6

 
$
1,235.9

 
$
435.7

 
$
—

Forward currency contracts
 
606.0

 
—

 
606.0

 
—

Purchased currency options
 
46.7

 
—

 
46.7

 
—

Interest rate swaps
 
52.5

 
—

 
52.5

 
—

Total assets
 
$
2,376.8

 
$
1,235.9

 
$
1,140.9

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Contingent value rights
 
$
(51.9
)
 
$
(51.9
)
 
$
—

 
$
—

Written currency options
 
(19.1
)
 
—

 
(19.1
)
 
—

Other acquisition related contingent consideration
 
(1,521.5
)
 
—

 
—

 
(1,521.5
)
Total liabilities
 
$
(1,592.5
)
 
$
(51.9
)
 
$
(19.1
)
 
$
(1,521.5
)
 
 
Balance at
December 31, 2014
 
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
 
$
3,425.1

 
$
1,051.3

 
$
2,373.8

 
$
—

Forward currency contracts
 
550.7

 
—

 
550.7

 
—

Purchased currency options
 
9.8

 
—

 
9.8

 
—

Interest rate swaps
 
20.0

 
—

 
20.0

 
—

Total assets
 
$
4,005.6

 
$
1,051.3

 
$
2,954.3

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
Contingent value rights
 
$
(136.3
)
 
$
(136.3
)
 
$
—

 
$
—

Written currency options
 
(4.6
)
 
—

 
(4.6
)
 
—

Other acquisition related contingent consideration
 
(1,279.0
)
 
—

 
—

 
(1,279.0
)
Total liabilities
 
$
(1,419.9
)
 
$
(136.3
)
 
$
(4.6
)
 
$
(1,279.0
)


There were no security transfers between Levels 1 and 2 during years ended December 31, 2015 and 2014. The following table represents a roll-forward of the fair value of Level 3 instruments:

 
 
2015
 
2014
Liabilities:
 
 
 
 
Balance at beginning of period
 
$
(1,279.0
)
 
$
(228.5
)
Amounts acquired or issued
 
(166.0
)
 
(1,060.0
)
Net change in fair value
 
(76.5
)
 
(30.5
)
Settlements
 
—

 
40.0

Transfers in and/or out of Level 3
 
—

 
—

Balance at end of period
 
$
(1,521.5
)
 
$
(1,279.0
)


Level 3 liabilities outstanding as of December 31, 2015 primarily consisted of contingent consideration related to the acquisitions of Avila, Gloucester, Nogra and Quanticel. Level 3 liabilities outstanding increased by $242.5 million in 2015 compared to 2014. Amounts acquired or issued in 2015 represent $166.0 million from the October 2015 acquisition of Quanticel. The $76.5 million net increase in the fair value of Level 3 liabilities in 2015 was related to accretion of the fair value of our contingent consideration due to the passage of time, which was partly offset by reductions in the probability and delays in the assumed timing of certain contingent consideration milestones related to the acquisition of Avila. Changes to the fair value of contingent consideration are recorded on the Consolidated Statements of Income as acquisition related charges and restructuring, net.