Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of fair value and balance sheet location of derivative instruments

The following tables summarize the fair value and presentation in the Consolidated Balance Sheets for derivative instruments as of March 31, 2016 and December 31, 2015:



		March 31, 2016
		Fair Value
Instrument	Balance Sheet Location	Asset Derivatives		Liability Derivatives
Derivatives designated as hedging instruments:
Foreign exchange contracts⁽¹⁾	Other current assets	$	293.7	$	28.6
	Accrued expenses and other current liabilities	0.9		6.6
	Other non-current assets	149.2		40.2
	Other non-current liabilities	14.8		24.5
Interest rate swap agreements	Other current assets	22.0		—
	Other non-current assets	121.5		19.2
	Other non-current liabilities	1.4		4.4
Derivatives not designated as hedging instruments:
Foreign exchange contracts⁽¹⁾	Other current assets	9.5		4.4
	Accrued expenses and other current liabilities	2.6		26.8
Interest rate swap agreements	Other current assets	0.7		0.6
	Other non-current assets	4.5		3.5
Total		$	620.8	$	158.8



		December 31, 2015
		Fair Value
Instrument	Balance Sheet Location	Asset Derivatives		Liability Derivatives
Derivatives designated as hedging instruments:
Foreign exchange contracts⁽¹⁾	Other current assets	$	356.2	$	18.0
	Other non-current assets	287.8		28.0
Interest rate swap agreements	Other current assets	30.7		—
	Other non-current assets	26.1		4.7
	Other non-current liabilities	0.2		0.9
Derivatives not designated as hedging instruments:
Foreign exchange contracts⁽¹⁾	Other current assets	46.0		5.9
	Accrued expenses and other current liabilities	2.9		7.4
Interest rate swap agreements	Other current assets	2.4		2.3
	Other non-current assets	2.4		1.4
Total		$	754.7	$	68.6

⁽¹⁾ Derivative instruments in this category are subject to master netting arrangements and are presented on a net basis in the Consolidated Balance Sheets in accordance with ASC 210-20.

Schedule of effect of derivative instruments designated as hedging instruments on Consolidated Statements of Income

During the three-month periods ended March 31, 2016 and 2015, we recorded gains from put option activity on our Consolidated Statements of Income in Other income (expense), net as follows:



	Three-Month Periods Ended March 31,
	2016		2015
Gain from sale of put options	$	4.4	$	3.9

The following table summarizes the effect of derivative instruments not designated as hedging instruments on the Consolidated Statements of Income for the three-month periods ended March 31, 2016 and 2015:



		Amount of Gain (Loss) Recognized in Income on Derivative
	Location of Gain (Loss) Recognized in Income on Derivative	Three-Month Periods Ended March 31,
Instrument	Location of Gain (Loss) Recognized in Income on Derivative	2016			2015
Foreign exchange contracts	Other income (expense), net	$	(27.5	)	$	74.5
Put options on our common stock	Other income (expense), net	$	4.4		$	3.9

Cash flow hedges

Derivative [Line Items]

Schedule of effect of derivative instruments designated as hedging instruments on Consolidated Statements of Income

The following tables summarize the effect of derivative instruments designated as cash-flow hedging instruments on the Consolidated Statements of Income for the three-month periods ended March 31, 2016 and 2015:



	Three-Month Period Ended March 31, 2016
	(Effective Portion)							(Ineffective Portion and Amount Excluded From Effectiveness Testing)
Instrument	Amount of Gain/(Loss) Recognized in OCI on Derivative⁽¹⁾			Location of Gain/(Loss) Reclassified from Accumulated OCI into Income	Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income			Location of Gain/(Loss) Recognized in Income on Derivative	Amount of Gain/(Loss) Recognized in Income on Derivative
Foreign exchange contracts	$	(195.0	)	Net product sales	$	88.4		Other income, net	$	14.3	(2	)
Treasury rate lock agreements	$	—		Interest expense	$	(1.3	)	Other income, net	—
Interest rate swap agreements	$	(26.0	)	Interest expense	$	(0.4	)	Other income, net	—

⁽¹⁾ Net gains of $248.9 million are expected to be reclassified from Accumulated OCI into income in the next 12 months.

⁽²⁾ The amount of net gains recognized in income represents $13.0 million of gains related to amounts excluded from the assessment of hedge effectiveness (fair value adjustments of forward point amounts) and $1.3 million in gains related to the ineffective portion of the hedging relationships.



	Three-Month Period Ended March 31, 2015
	(Effective Portion)							(Ineffective Portion and Amount Excluded From Effectiveness Testing)
Instrument	Amount of Gain/(Loss) Recognized in OCI on Derivative			Location of Gain/(Loss) Reclassified from Accumulated OCI into Income	Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income			Location of Gain/(Loss) Recognized in Income on Derivative	Amount of Gain/(Loss) Recognized in Income on Derivative
Foreign exchange contracts	$	432.6		Net product sales	$	70.5		Other income, net	$	3.8	(1	)
Treasury rate lock agreements	$	—		Interest expense	$	(0.9	)	Other income, net	$	—
Interest rate swap agreements	$	(25.7	)	Interest expense	$	(0.4	)	Other income, net	$	—

⁽¹⁾ The amount of net gains recognized in income represents $7.2 million of gains related to amounts excluded from the assessment of hedge effectiveness (fair value adjustments of forward point amounts) and $3.4 million in losses related to the ineffective portion of the hedging relationships.

Fair value hedges

Derivative [Line Items]

Schedule of effect of derivative instruments designated as hedging instruments on Consolidated Statements of Income

The following table summarizes the effect of derivative instruments designated as fair value hedging instruments on the Consolidated Statements of Income for the three-month periods ended March 31, 2016 and 2015:



		Amount of Gain Recognized in Income on Derivative
	Location of Gain (Loss) Recognized in Income on Derivative	Three-Month Periods Ended March 31,
Instrument	Location of Gain (Loss) Recognized in Income on Derivative	2016		2015
Interest rate swap agreements	Interest expense	$	13.4	$	14.0

Foreign exchange contracts

Derivative [Line Items]

Schedule of notional amount of derivative contracts

Foreign currency forward contracts entered into to hedge forecasted revenue and expenses were as follows at March 31, 2016 and December 31, 2015:



	Notional Amount
Foreign Currency	March 31, 2016		December 31, 2015
Australian Dollar	$	52.5	$	45.1
British Pound	252.8		289.3
Canadian Dollar	214.2		135.9
Euro	2,816.4		2,934.3
Japanese Yen	670.6		510.4
Swedish Krona	12.8		—
Total	$	4,019.3	$	3,915.0

Interest rate swap agreements

Derivative [Line Items]

Schedule of notional amount of derivative contracts

The following table summarizes the notional amounts of our outstanding swap contracts at March 31, 2016 and December 31, 2015:



	Notional Amount
	March 31, 2016		December 31, 2015
Interest rate swap contracts entered into as fair value hedges of the following fixed-rate senior notes:
1.900% senior notes due 2017	300.0		300.0
2.300% senior notes due 2018	200.0		200.0
2.250% senior notes due 2019	500.0		500.0
3.950% senior notes due 2020	500.0		500.0
3.250% senior notes due 2022	1,000.0		1,000.0
4.000% senior notes due 2023	700.0		700.0
3.625% senior notes due 2024	100.0		100.0
3.875% senior notes due 2025	300.0		250.0
Total	$	3,600.0	$	3,550.0

Foreign Exchange Option Contracts

Derivative [Line Items]

Schedule of foreign exchange contracts, statement of financial position

Outstanding foreign currency option contracts entered into to hedge forecasted revenue were as follows at March 31, 2016 and December 31, 2015:



	Notional Amount¹
	March 31, 2016		December 31, 2015
Foreign currency option contracts designated as hedging activity:
Purchased Put	$	782.3	$	641.5
Written Call	$	851.5	$	690.0

¹ U.S. dollar notional amounts are calculated as the hedged local currency amount multiplied by the strike value of the foreign currency option. The local currency notional amounts of our purchased put and written call that are designated as hedging activities are equal to each other.