Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Summary of assets and liabilities recorded at fair value

The tables below present information about our assets and liabilities that are regularly measured and carried at fair value and indicate the level within the fair value hierarchy of the valuation techniques we utilized to determine such fair value:


	Fair Value Measurements on a Recurring Basis
	As of September 30, 2023
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	1,920.4	$	—	$	1,920.4	$	—




Marketable equity securities	413.6		413.6		—		—
Other current assets:
Receivable from Samsung BioLogics(1)	422.3		—		—		422.3
Derivative contracts	27.8		—		27.8		—
Other non-current assets:
Plan assets for deferred compensation	39.0		—		39.0		—
Derivative contracts	3.4		—		3.4		—
Total	$	2,826.5	$	413.6	$	1,990.6	$	422.3
Liabilities:
Derivative contracts	$	37.5	$	—	$	37.5	$	—

Total	$	37.5	$	—	$	37.5	$	—

(1) Represents the fair value of the current payment due from Samsung BioLogics as a result of the sale of our 49.9% equity interest in Samsung Bioepis to Samsung BioLogics during the second quarter of 2022, for which we elected the fair value option. For additional information on the sale of our equity interest in Samsung Bioepis, please read Note 3, Dispositions, to these condensed consolidated financial statements.

During the third quarter of 2023 we sold all of our marketable debt securities and used the proceeds to partially fund our acquisition of Reata. For additional information on our acquisition of Reata, please read Note 2, Acquisitions, to these condensed consolidated financial statements.


	Fair Value Measurements on a Recurring Basis
	As of December 31, 2022
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	2,847.6	$	—	$	2,847.6	$	—
Marketable debt securities:
Corporate debt securities	1,231.6		—		1,231.6		—
Government securities	810.3		—		810.3		—
Mortgage and other asset backed securities	137.3		—		137.3		—
Marketable equity securities	791.1		791.1		—		—
Other current assets:
Receivable from Samsung BioLogics(1)	798.8		—		—		798.8
Other assets:
Derivative contracts	63.0		—		63.0		—
Plan assets for deferred compensation	32.8		—		32.8		—
Receivable from Samsung BioLogics(1)	405.4		—		—		405.4
Total	$	7,117.9	$	791.1	$	5,122.6	$	1,204.2
Liabilities:
Derivative contracts	$	26.0	$	—	$	26.0	$	—

Total	$	26.0	$	—	$	26.0	$	—

(1) Represents the fair value of the current and non-current payments due from Samsung BioLogics as a result of the sale of our 49.9% equity interest in Samsung Bioepis to Samsung BioLogics during the second quarter of 2022, for which we elected the fair value option. For additional information on the sale of our equity interest in Samsung Bioepis, please read Note 3, Dispositions, to these condensed consolidated financial statements.

Summary of fair and carrying value of debt instruments

The fair and carrying values of our senior notes debt instruments, which are Level 2 liabilities, are summarized as follows:


	As of September 30, 2023				As of December 31, 2022
(In millions)	Fair Value		Carrying Value		Fair Value		Carrying Value

4.050% Senior Notes due September 15, 2025	$	1,689.6	$	1,746.2	$	1,699.9	$	1,744.7
2.250% Senior Notes due May 1, 2030	1,196.2		1,493.6		1,219.0		1,492.9
5.200% Senior Notes due September 15, 2045	972.7		1,100.5		1,033.2		1,100.3
3.150% Senior Notes due May 1, 2050	909.2		1,474.2		989.0		1,473.8
3.250% Senior Notes due February 15, 2051	430.8		471.9		469.1		469.3
Total	$	5,198.5	$	6,286.4	$	5,410.2	$	6,281.0

Fair value of contingent consideration obligations

In connection with our acquisition of Convergence, we agreed to make additional payments based upon the achievement of certain milestone events. The following table provides a roll forward of the fair value of our contingent consideration obligations, which were classified as Level 3 measurements:


(In millions)	For the Three Months Ended September 30, 2022		For the Nine Months Ended September 30, 2022
Fair value, beginning of period	$	197.5	$	209.1
Changes in fair value	(2.1)		(13.7)

Fair value, end of period	$	195.4	$	195.4