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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2024

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 December 31, 2024
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	1,664.9	$	—	$	1,664.9	$	—




Marketable equity securities	179.7		179.7		—		—
Other current assets:

Derivative contracts	62.5		—		62.5		—
Other non-current assets:
Plan assets for deferred compensation	42.8		—		42.8		—

Total	$	1,949.9	$	179.7	$	1,770.2	$	—
Liabilities:
Other current liabilities:
Derivative contracts	$	11.7	$	—	$	11.7	$	—
Contingent consideration obligations	291.2		—		—		291.2
Other non-current liabilities:

Contingent consideration obligations	221.6		—		—		221.6
Total	$	524.5	$	—	$	11.7	$	512.8


	Fair Value Measurements on a Recurring Basis
	As of December 31, 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	$	610.7	$	—	$	610.7	$	—




Marketable equity securities	416.8		416.8		—		—
Other current assets:
Receivable from Samsung BioLogics(1)	430.0		—		—		430.0
Derivative contracts	11.9		—		11.9		—
Other non-current assets:

Plan assets for deferred compensation	37.5		—		37.5		—

Total	$	1,506.9	$	416.8	$	660.1	$	430.0
Liabilities:
Derivative contracts	$	31.6	$	—	$	31.6	$	—

Total	$	31.6	$	—	$	31.6	$	—

(1) Represents the fair value of the second deferred 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 consolidated financial statements.

Fair value measurement inputs and valuation techniques

The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our Level 3 financial assets and liabilities measured at fair value on a recurring basis:

Quantitative Information about Level 3 Fair Value Measurements

As of December 31, 2024

(In millions)

Fair Value

Valuation Technique

Significant
Unobservable Input(s)

Range

Weighted
Average

Liabilities:

Contingent consideration obligations

512.8

Discounted cash flow

Discount rate

6.2% - 6.3%

6.2%

Expected timing of achievement of development milestones

2025 - 2030

—

Fair value of contingent consideration obligations

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)	As of December 31, 2024
Fair value, beginning of year	$	—
Contingent consideration resulting from HI-Bio acquisition	485.1
Changes in fair value	27.7

Fair value, end of year	$	512.8

Summary of fair and carrying value of debt instruments

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


	Fair Value As of December 31,
(In millions)	2024		2023
Current portion:
2023 Term Loan 364-day tranche	$	—	$	150.0
4.050% Senior Notes due September 15, 2025	1,741.0		—
Current portion of notes payable and term loan	1,741.0		150.0

Non-current portion:
2023 Term Loan three-year tranche	—		500.0
4.050% Senior Notes due September 15, 2025	—		1,721.5
2.250% Senior Notes due May 1, 2030	1,295.6		1,279.3
5.200% Senior Notes due September 15, 2045	1,008.0		1,089.7
3.150% Senior Notes due May 1, 2050	943.7		1,049.0
3.250% Senior Notes due February 15, 2051	448.9		498.2
Non-current portion of notes payable and term loan	3,696.2		6,137.7
Total notes payable and term loan	$	5,437.2	$	6,287.7

In connection with our acquisition of Reata we drew $1.0 billion from our 2023 Term Loan, comprised of a $500.0 million floating rate 364-day tranche and a $500.0 million floating rate three-year tranche. As of December 31, 2024, our 2023 Term Loan was repaid in full. For additional information on our 2023 Term Loan, please read Note 13, Indebtedness, to these consolidated financial statements.