Financial Instruments

12 Months Ended

Dec. 31, 2011

Financial Instruments [Abstract]

Financial Instruments

9.    Financial Instruments

Marketable Securities, including Strategic Investments

The following tables summarize our marketable securities and strategic investments:

As of December 31, 2011 (In millions):	Fair Value		Gross Unrealized Gains		Gross Unrealized Losses			Amortized Cost
Available-for-sale
Corporate debt securities:
Current	$	155.0	$	0.2	$	(0.1	)	$	154.9
Non-current		447.6		1.2		(1.5	)		447.9
Government securities:
Current		1,021.0		0.4		—			1,020.6
Non-current		695.5		0.9		(0.2	)		694.8
Mortgage and other asset backed securities:
Current		0.1		—		—			0.1
Non-current		273.7		0.5		(1.3	)		274.5
Total available-for-sale securities	$	2,592.9	$	3.2	$	(3.1	)	$	2,592.8
Other Investments
Strategic investments, non-current	$	0.1	$	—	$	(0.1	)	$	0.2

As of December 31, 2010 (In millions):	Fair Value		Gross Unrealized Gains		Gross Unrealized Losses			Amortized Cost
Available-for-sale
Corporate debt securities:
Current	$	93.2	$	0.1	$	—		$	93.1
Non-current		219.8		2.1		(0.5	)		218.2
Government securities:
Current		352.8		0.2		—			352.6
Non-current		432.5		0.6		(0.6	)		432.5
Mortgage and other asset backed securities:
Current		2.1		—		—			2.1
Non-current		90.8		0.5		(0.2	)		90.5
Total available-for-sale securities	$	1,191.2	$	3.5	$	(1.3	)	$	1,189.0
Other Investments
Strategic investments, non-current	$	44.8	$	17.5	$	—		$	27.3

In the tables above, as of December 31, 2011 and 2010, government securities included $214.0 million and $163.5 million, respectively, of Federal Deposit Insurance Corporation (FDIC) guaranteed senior notes issued by financial institutions under the Temporary Liquidity Guarantee Programs.

The following table summarizes our financial assets with original maturities of less than 90 days included within cash and cash equivalents on the accompanying consolidated balance sheet:

	As of December 31,
(In millions)	2011		2010
Commercial paper	$	—	$	4.0
Repurchase agreements		8.8		26.0
Short-term debt securities		391.0		621.8
Total	$	399.8	$	651.8

The carrying values of our commercial paper, including accrued interest, repurchase agreements, and our short-term debt securities approximate fair value.

Summary of Contractual Maturities: Available-for-Sale Securities

The estimated fair value and amortized cost of our marketable securities, excluding strategic investments, available-for-sale by contractual maturity are summarized as follows:

	As of December 31, 2011				As of December 31, 2010
(In millions)	Estimated Fair  Value		Amortized Cost		Estimated Fair  Value		Amortized Cost
Due in one year or less	$	1,176.1	$	1,175.6	$	448.1	$	447.8
Due after one year through five years		1,251.6		1,251.4		664.1		662.4
Due after five years		165.2		165.8		79.0		78.8
Total available-for-sale securities	$	2,592.9	$	2,592.8	$	1,191.2	$	1,189.0

The average maturity of our marketable securities as of December 31, 2011 and 2010 was 14 months and 11 months, respectively.

Proceeds from Maturities and Sales of Marketable Securities, excluding Strategic Investments

The proceeds from maturities and sales of marketable securities, excluding strategic investments and cash equivalents, and resulting realized gains and losses are summarized as follows:

	For the Years Ended December 31,
(In millions)	2011		2010		2009
Proceeds from maturities and sales	$	2,276.7	$	2,668.7	$	3,319.0
Realized gains	$	3.9	$	18.8	$	19.8
Realized losses	$	2.3	$	2.5	$	4.0

Proceeds were generally reinvested. Realized losses for the year ended December 31, 2011, primarily relate to sales of government and corporate securities. Realized losses for the year ended December 31, 2010, primarily relate to the sale of agency mortgage-backed securities and corporate debt securities. Realized losses for the year ended December 31, 2009, primarily relate to losses on the sale of non-agency mortgage-backed securities and corporate debt securities.

Strategic Investments

Strategic investments are included in investments and other assets on the accompanying consolidated balance sheets. In 2011, we sold four strategic investments for $40.6 million, which resulted in a net gain of $13.5 million. In 2010, we sold one strategic investment for $1.8 million, which resulted in an insignificant loss. In 2009 we sold two strategic investments for $5.9 million, which resulted in a $3.0 million gain.

In addition to the strategic investments and venture capital investments noted in Note 8, Fair Value Measurements to these consolidated financial statements, we hold other investments in equity securities of certain privately-owned biotechnology companies and biotechnology oriented venture capital funds accounted for using the cost method. The carrying value of these securities as of December 31, 2011 and 2010 was $39.2 million and $35.0 million, respectively. These securities are also included in investments and other assets on the accompanying consolidated balance sheets.

Impairments

Prior to the adoption of new accounting standards for the recognition, measurement and presentation of other-than-temporary impairments in April 2009 for debt securities, we recognized all other-than-temporary impairment amounts related to our marketable debt securities in earnings as required under the previously effective guidance which required that management assert that it had the ability and intent to hold a debt security until maturity or until we recovered the cost of our investment.

In 2011, we recognized $11.5 million in charges for the impairment of our publicly-held strategic investments, investments in venture capital funds and investments in privately-held companies.

In 2010, we recognized $21.3 million in charges for the other-than-temporary impairment of our publicly held strategic investments, investments in venture capital funds and investments in privately held companies. The increase over amounts recognized in 2009 was primarily the result of one of our strategic investments, executing an equity offering at a price below our cost basis during the first quarter of 2010.

In 2009, we recognized impairment losses of $7.0 million on our publicly-held strategic investments and non-marketable securities and an additional $3.6 million in charges for the other-than-temporary impairment on our marketable debt securities.