Financial Instruments

6 Months Ended

Jun. 30, 2012

Financial Instruments [Abstract]

Financial Instruments

8. Financial Instruments

Marketable Securities

The following tables summarize our marketable debt and equity securities:

As of June 30, 2012 (In millions):	Fair Value		Gross Unrealized Gains		Gross Unrealized Losses			Amortized Cost
Available-for-sale:
Corporate debt securities
Current	$	281.7	$	0.3	$	—		$	281.4
Non-current		499.8		2.3		(0.3	)		497.8
Government securities
Current		666.1		0.3		(0.1	)		665.9
Non-current		600.9		0.7		(0.2	)		600.4
Mortgage and other asset backed securities
Current		1.4		—		—			1.4
Non-current		367.2		1.1		(1.2	)		367.3
Total marketable debt securities	$	2,417.1	$	4.7	$	(1.8	)	$	2,414.2
Marketable equity securities, non-current	$	0.1	$	—	$	—		$	0.1

			Gross		Gross
	Fair		Unrealized		Unrealized			Amortized
As of December 31, 2011 (In millions):	Value		Gains		Losses			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 marketable debt securities	$	2,592.9	$	3.2	$	(3.1	)	$	2,592.8
Marketable equity securities, non-current	$	0.1	$	—	$	(0.1	)	$	0.2

In the tables above, as of June 30, 2012 and December 31, 2011, government securities included $88.9 million and $214.0 million, respectively, of Federal Deposit Insurance Corporation (FDIC) guaranteed senior notes issued by financial institutions under the Temporary Liquidity Guarantee Programs, which will all mature prior to December 31, 2012.

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

	As of		As of
	June 30,		December 31,
(In millions)	2012		2011
Commercial paper	$	10.0	$	—
Repurchase agreements		84.0		8.8
Short-term debt securities		128.9		391.0
Total	$	222.9	$	399.8

The carrying values of our commercial paper, including accrued interest, repurchase agreements and 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 debt securities available-for-sale by contractual maturity are summarized as follows:

	As of June 30, 2012				As of December 31, 2011
	Estimated		Amortized		Estimated		Amortized
(In millions)	Fair Value		Cost		Fair Value		Cost
Due in one year or less	$	949.2	$	948.7	$	1,176.1	$	1,175.6
Due after one year through five years		1,260.0		1,257.4		1,251.6		1,251.4
Due after five years		207.9		208.1		165.2		165.8
Total available-for-sale securities	$	2,417.1	$	2,414.2	$	2,592.9	$	2,592.8

The average maturity of our marketable securities as of June 30, 2012 and December 31, 2011 was 13 months and 14 months, respectively.

Proceeds from Marketable Debt Securities

The proceeds from maturities and sales of marketable debt securities and resulting realized gains and losses are summarized as follows:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
(In millions)	2012			2011			2012			2011
Proceeds from maturities and sales	$	599.6		$	381.8		$	1,423.9		$	1,169.8
Realized gains	$	0.6		$	0.7		$	1.3		$	3.1
Realized losses	$	(1.3	)	$	(0.5	)	$	(2.0	)	$	(1.3	)

Proceeds were generally reinvested. Realized losses for the three and six months ended June 30, 2012 and 2011 primarily relate to sales of agency mortgage-backed securities.

Strategic Investments

As of June 30, 2012 and December 31, 2011, our strategic investment portfolio was comprised of investments totaling $63.2 million and $62.8 million, respectively, which are included in investments and other assets in our accompanying condensed consolidated balance sheets. Our strategic investment portfolio includes investments in equity securities of certain biotechnology companies and our investments in venture capital funds accounted for at fair value which totaled $25.5 million and $23.6 million as of June 30, 2012 and December 31, 2011, respectively. Our strategic investment portfolio also includes other equity investments in privately-held companies and additional investments in venture capital funds accounted for under the cost method. The carrying value of these investments totaled $37.7 million and $39.2 million, as of June 30, 2012 and December 31, 2011, respectively.

During the three and six months ended June 30, 2012, we realized net gains, impairments and changes to fair value recorded through income of $2.2 million and $13.5 million, respectively, on our strategic investment portfolio as compared to a net loss of $5.5 million and a net gain of $7.6 million, respectively, in the prior year comparative periods. The gains recognized during the six months ended June 30, 2012, include a gain of $9.0 million recognized upon our acquisition of Stromedix as we previously held an equity interest. For a more detailed description of this transaction, please read Note 2, Acquisitions to these condensed consolidated financial statements. The gains recognized during the six months ended June 30, 2011 include a gain of $13.8 million on the sale of one of our marketable equity investments.

Impairments

For the three and six months ended June 30, 2012, we recognized $0.8 million and $1.3 million, respectively, as impairment charges of our publicly-held strategic investments, investments in venture capital funds accounted for under the cost method and investments in privately-held companies.

For the three and six months ended June 30, 2011, we recognized $5.2 million and $5.5 million, respectively, as impairment charges of our investments in privately-held companies and our investments in venture capital funds accounted for under the cost method. No impairments were recognized in relation to our publicly-held strategic investments.