Other Consolidated Financial Statement Detail

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Other Consolidated Financial Statement Detail

Other Income (Expense), Net

Components of other income (expense), net, are summarized as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(In millions)	2020		2019		2020		2019
Interest income	$	6.0	$	30.5	$	38.0	$	90.8
Interest expense	(56.3)		(45.8)		(166.5)		(141.4)
Gain (loss) on investments, net	(82.1)		(4.1)		(52.6)		198.9
Foreign exchange gains (losses), net	3.1		(4.2)		(5.4)		(4.7)
Other, net	0.7		(3.7)		0.4		(11.0)
Total other income (expense), net	$	(128.6)	$	(27.3)	$	(186.1)	$	132.6

Gain (loss) on investments, net, as reflected in the table above, relate to debt securities, equity securities of certain biotechnology companies, venture capital funds where the underlying investments are in equity securities of certain biotechnology companies and non-marketable equity securities.

For the three months ended September 30, 2020, compared to the same period in 2019, the change in other income (expense), net primarily reflects net unrealized losses of approximately $82.1 million recognized on our investments related to our holdings in equity securities, compared to net unrealized losses totaling $4.1 million in the prior year comparative period. The net unrealized losses recognized during the three months ended September 30, 2020, primarily reflect a decrease in the fair value of Ionis common stock of approximately $66.2 million and a decrease in the fair value of Denali common stock of approximately $29.6 million, partially offset by an increase in the fair value of Sangamo common stock of approximately $15.2 million.

For the nine months ended September 30, 2020, compared to the same period in 2019, the change in other income (expense), net primarily reflects net unrealized losses of approximately $40.3 million recognized on our investments related to our holdings in equity securities, compared to net unrealized gains totaling $198.9 million in the prior year comparative period. The net unrealized losses recognized during the nine months ended September 30, 2020, primarily reflect a decrease in the fair value of Ionis common stock of approximately $56.7 million and a decrease in the fair value of Denali common stock of approximately $29.6 million, partially offset by an increase in the fair value of Sangamo common stock of approximately $56.1 million.

The following table summarizes our gain (loss) on investments, net that relates to our equity securities held as of September 30, 2020 and 2019:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(In millions)	2020		2019		2020		2019
Net gains (losses) recognized during the period on equity securities	$	(82.3)	$	(4.6)	$	(40.3)	$	197.3
Less: Net gains (losses) recognized during the period on equity securities sold during the period	—		4.4		—		46.8
Unrealized gains (losses) recognized during the period on equity securities	$	(82.3)	$	(9.0)	$	(40.3)	$	150.5

Accrued Expenses and Other

Accrued expenses and other consists of the following:

(In millions)	As of September 30, 2020		As of December 31, 2019
Revenue-related reserves for discounts and allowances	$	1,043.9	$	1,001.1
Employee compensation and benefits	279.0		309.1
Royalties and licensing fees	222.8		220.9
Collaboration expenses	277.9		281.6
Current portion of contingent consideration obligations	164.4		148.4
Construction in progress	23.4		78.0
Other	1,274.8		726.7
Total accrued expenses and other	$	3,286.2	$	2,765.8

Other Long-term Liabilities

Other long-term liabilities were $1,428.1 million and $1,348.9 million as of September 30, 2020 and December 31, 2019, respectively, and included accrued income taxes totaling $729.3 million and $803.3 million, respectively. Included within accrued taxes as of September 30, 2020 and December 31, 2019, is an accrual for a one-time mandatory deemed repatriation tax on accumulated foreign subsidiaries' previously untaxed foreign earnings (the Transition Toll Tax) of approximately $635.0 million and approximately $697.0 million, respectively.