Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of effects of risk-management instruments were recognized in other–net, (income) expense

The following effects of risk-management instruments were recognized in other–net, (income) expense:



	Three Months Ended March 31,
	2019			2018
Fair value hedges:
Effect from hedged fixed-rate debt	$	39.3		$	(54.8	)
Effect from interest rate contracts	(39.3		)	54.8
Cash flow hedges:
Effective portion of losses on interest rate contracts reclassified from accumulated other comprehensive loss	3.8			3.6
Net losses on foreign currency exchange contracts not designated as hedging instruments	48.9			16.7
Total	$	52.7		$	20.3

Schedule of effective portion of risk-management instruments that was recognized in other comprehensive income (loss)

The effective portion of risk-management instruments that was recognized in other comprehensive income (loss) is as follows:



	Three Months Ended March 31,
	2019			2018
Net investment hedges:
Foreign currency-denominated notes	$	53.7		$	(107.7	)
Cross-currency interest rate swaps	38.3			(31.5		)
Cash flow hedges:
Forward-starting interest rate swaps	(11.7		)	—
Cross-currency interest rate swaps	(30.0		)	—

Summary certain fair value information

The following tables summarize certain fair value information at March 31, 2019 and December 31, 2018 for assets and liabilities measured at fair value on a recurring basis, as well as the carrying amount and amortized cost of certain other investments:



					Fair Value Measurements Using
	Carrying Amount		Cost ⁽¹⁾		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
March 31, 2019
Cash equivalents	$	806.2	$	806.2	$	806.2	$	—	$	—	$	806.2

Short-term investments:
U.S. government and agency securities	$	13.5	$	13.6	$	13.5	$	—	$	—	$	13.5
Corporate debt securities	81.7		81.7		—		81.7		—		81.7
Asset-backed securities	4.0		4.0		—		4.0		—		4.0
Other securities	1.5		1.5		—		1.5		—		1.5
Short-term investments	$	100.7

Noncurrent investments:
U.S. government and agency securities	$	148.0	$	150.0	$	148.0	$	—	$	—	$	148.0
Corporate debt securities	533.6		535.2		—		533.6		—		533.6
Mortgage-backed securities	118.7		119.9		—		118.7		—		118.7
Asset-backed securities	36.2		36.2		—		36.2		—		36.2
Other securities	82.4		29.7		—		—		82.4		82.4
Marketable equity securities	502.1		238.7		502.1		—		—		502.1
Equity investments without readily determinable fair values ⁽²⁾	414.6
Equity method investments ⁽²⁾	275.8
Noncurrent investments	$	2,111.4

December 31, 2018
Cash equivalents	$	5,727.1	$	5,727.1	$	5,727.1	$	—	$	—	$	5,727.1

Short-term investments:
U.S. government and agency securities	$	16.9	$	17.1	$	16.9	$	—	$	—	$	16.9
Corporate debt securities	62.2		62.6		—		62.2		—		62.2
Asset-backed securities	7.6		7.7		—		7.6		—		7.6
Other securities	1.5		1.5		—		1.5		—		1.5
Short-term investments	$	88.2

Noncurrent investments:
U.S. government and agency securities	$	149.1	$	153.6	$	149.1	$	—	$	—	$	149.1
Corporate debt securities	568.0		587.8		—		568.0		—		568.0
Mortgage-backed securities	111.4		114.5		—		111.4		—		111.4
Asset-backed securities	27.7		27.9		—		27.7		—		27.7
Other securities	87.8		29.7		—		—		87.8		87.8
Marketable equity securities	357.5		238.3		357.5		—		—		357.5
Equity investments without readily determinable fair values ⁽²⁾	414.7
Equity method investments ⁽²⁾	289.2
Noncurrent investments	$	2,005.4

⁽¹⁾For available-for-sale debt securities, amounts disclosed represent the securities' amortized cost.

⁽²⁾Fair value disclosures are not applicable for equity method investments, investments accounted for under the measurement alternative for equity investments, and cost method investments that do not have readily determinable fair values.

Summary certain fair value information, liabilities



				Fair Value Measurements Using
	Carrying Amount			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Fair Value
Short-term commercial paper borrowings
March 31, 2019	$	(2,349.6	)	$	—	$	(2,342.3	)	$	—	$	(2,342.3	)
December 31, 2018	(498.9		)	—		(497.6		)	—		(497.6		)
Long-term debt, including current portion
March 31, 2019	$	(13,615.5	)	$	—	$	(14,238.8	)	$	—	$	(14,238.8	)
December 31, 2018	(9,799.7		)	—		(9,970.0		)	—		(9,970.0		)

Fair value, by balance sheet grouping



				Fair Value Measurements Using
	Carrying Amount			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Fair Value
March 31, 2019
Risk-management instruments:
Interest rate contracts designated as fair value hedges:
Sundry	$	30.9		$	—	$	30.9		$	—	$	30.9
Other current liabilities	(0.3		)	—		(0.3		)	—		(0.3		)
Other noncurrent liabilities	(7.7		)	—		(7.7		)	—		(7.7		)
Cross-currency interest rate contracts designated as net investment hedges:
Other receivables	60.9			—		60.9			—		60.9
Sundry	26.9			—		26.9			—		26.9
Other current liabilities	(5.0		)	—		(5.0		)	—		(5.0		)
Cross-currency interest rate contracts designated as cash flow hedges:
Other noncurrent liabilities	(27.6		)	—		(27.6		)	—		(27.6		)
Foreign exchange contracts not designated as hedging instruments:
Other receivables	11.2			—		11.2			—		11.2
Other current liabilities	(28.8		)	—		(28.8		)	—		(28.8		)

December 31, 2018
Risk-management instruments:
Interest rate contracts designated as fair value hedges:
Sundry	4.5			—		4.5			—		4.5
Other current liabilities	(22.3		)	—		(22.3		)	—		(22.3		)
Other noncurrent liabilities	(19.0		)	—		(19.0		)	—		(19.0		)
Cross-currency interest rate contracts designated as net investment hedges:
Other receivables	69.2			—		69.2			—		69.2
Sundry	8.2			—		8.2			—		8.2
Other current liabilities	(9.2		)	—		(9.2		)	—		(9.2		)
Cross-currency interest rate contracts not designated as hedging instruments
Other noncurrent liabilities	(25.8		)	—		(25.8		)	—		(25.8		)
Foreign exchange contracts not designated as hedging instruments:
Other receivables	11.3			—		11.3			—		11.3
Other current liabilities	(16.3		)	—		(16.3		)	—		(16.3		)

Summary the contractual maturities of our investments in debt securities measured at fair value

The table below summarizes the contractual maturities of our investments in debt securities measured at fair value as of March 31, 2019:



	Maturities by Period
	Total		Less Than 1 Year		1-5 Years		6-10 Years		More Than 10 Years
Fair value of debt securities	$	935.7	$	99.3	$	539.9	$	121.3	$	175.2

Summary of the amount of unrealized gains and losses (pretax) recognized in our statement of operations for equity securities

A summary of the fair value of available-for-sale securities in an unrealized gain or loss position and the amount of unrealized gains and losses (pretax) in accumulated other comprehensive loss follows:



	March 31, 2019		December 31, 2018
Unrealized gross gains	$	5.2	$	0.8
Unrealized gross losses	10.1		29.0
Fair value of securities in an unrealized gain position	338.9		84.3
Fair value of securities in an unrealized loss position	578.6		858.6

Activity related to our investment portfolio, substantially all of which related to equity and available-for-sale securities, was as follows:



	Three Months Ended March 31,
	2019		2018
Proceeds from sales	$	93.7	$	592.6
Realized gross gains on sales	2.5		2.1
Realized gross losses on sales	0.4		1.6