Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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 June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Fair value hedges:
Effect from hedged fixed-rate debt	$	59.3		$	(19.7	)	$	98.5		$	(74.5	)
Effect from interest rate contracts	(59.3		)	19.7			(98.5		)	74.5
Cash flow hedges:
Effective portion of losses on interest rate contracts reclassified from accumulated other comprehensive loss	4.0			3.7			7.8			7.3
Net (gains) losses on foreign currency exchange contracts not designated as hedging instruments	(8.5		)	59.1			40.4			75.7
Total	$	(4.5	)	$	62.8		$	48.2		$	83.0

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 June 30,					Six Months Ended June 30,
	2019			2018		2019			2018
Net investment hedges:
Foreign currency-denominated notes	$	(30.4	)	$	208.5	$	23.3		$	100.8
Cross-currency interest rate swaps	(4.3		)	69.1		34.0			37.6
Cash flow hedges:
Forward-starting interest rate swaps	—			—		(11.7		)	—
Cross-currency interest rate swaps	(7.4		)	—		(37.5		)	—

Summary certain fair value information

The following tables summarize certain fair value information at June 30, 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
June 30, 2019
Cash equivalents	$	982.1	$	982.1	$	982.1	$	—	$	—	$	982.1

Short-term investments:
U.S. government and agency securities	$	3.9	$	3.9	$	3.9	$	—	$	—	$	3.9
Corporate debt securities	72.4		72.3		—		72.4		—		72.4
Other securities	1.4		1.4		—		1.4		—		1.4
Short-term investments	$	77.7

Noncurrent investments:
U.S. government and agency securities	$	82.3	$	81.6	$	82.3	$	—	$	—	$	82.3
Corporate debt securities	411.2		408.0		—		411.2		—		411.2
Mortgage-backed securities	95.1		94.4		—		95.1		—		95.1
Asset-backed securities	33.3		33.0		—		33.3		—		33.3
Other securities	82.1		40.0		—		—		82.1		82.1
Marketable equity securities	466.5		228.0		466.5		—		—		466.5
Equity investments without readily determinable fair values ⁽²⁾	398.6
Equity method investments ⁽²⁾	283.6
Noncurrent investments	$	1,852.7

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 and investments accounted for under the measurement alternative for equity investments.

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
June 30, 2019	$	(2,058.3	)	$	—	$	(2,049.8	)	$	—	$	(2,049.8	)
December 31, 2018	(498.9		)	—		(497.6		)	—		(497.6		)
Long-term debt, including current portion
June 30, 2019	$	(13,727.9	)	$	—	$	(14,833.0	)	$	—	$	(14,833.0	)
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
June 30, 2019
Risk-management instruments:
Interest rate contracts designated as fair value hedges:
Sundry	$	82.4		$	—	$	82.4		$	—	$	82.4
Cross-currency interest rate contracts designated as net investment hedges:
Other receivables	16.9			—		16.9			—		16.9
Sundry	26.4			—		26.4			—		26.4
Other current liabilities	(3.6		)	—		(3.6		)	—		(3.6		)
Other noncurrent liabilities	(2.1		)	—		(2.1		)	—		(2.1		)
Cross-currency interest rate contracts designated as cash flow hedges:
Other noncurrent liabilities	(19.0		)	—		(19.0		)	—		(19.0		)
Foreign exchange contracts not designated as hedging instruments:
Other receivables	17.6			—		17.6			—		17.6
Other current liabilities	(11.7		)	—		(11.7		)	—		(11.7		)

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 June 30, 2019:



	Maturities by Period
	Total		Less Than 1 Year		1-5 Years		6-10 Years		More Than 10 Years
Fair value of debt securities	$	698.3	$	76.3	$	447.1	$	61.4	$	113.5

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:



	June 30, 2019		December 31, 2018
Unrealized gross gains	$	9.3	$	0.8
Unrealized gross losses	4.1		29.0
Fair value of securities in an unrealized gain position	441.9		84.3
Fair value of securities in an unrealized loss position	255.8		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 June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Proceeds from sales	$	362.9	$	4,953.8	$	456.6	$	5,546.4
Realized gross gains on sales	13.0		5.6		15.5		7.7
Realized gross losses on sales	6.4		47.4		6.8		49.0