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Financial Instruments | 12 Months Ended
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Dec. 31, 2017
Fair Value Disclosures [Abstract] |
Financial Instruments | FINANCIAL INSTRUMENTS Cash, Cash Equivalents, and Investments The following tables summarize the Company’s cash and available-for-sale marketable securities’ amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category reported as cash and cash equivalents or short-term or long-term investments as of December 31, 2017, and 2016 (in millions):
|  |  |  |  |  |  |  |  | Reported as:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Cash and Cash Equivalents |  | Short-term Investments |  | Long-term Investments
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |
Cash | $ | 197.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 197.7 |  |  | $ | 197.7 |  |  | $ | — |  |  | $ | — |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | 445.0 |  |  | — |  |  | — |  |  | 445.0 |  |  | 445.0 |  |  | — |  |  | — |
U.S. treasuries | 1,029.1 |  |  | — |  |  | (4.7 | ) |  | 1,024.4 |  |  | 5.5 |  |  | 396.2 |  |  | 622.7 |
Subtotal | 1,474.1 |  |  | — |  |  | (4.7 | ) |  | 1,469.4 |  |  | 450.5 |  |  | 396.2 |  |  | 622.7 |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial paper | 38.4 |  |  | — |  |  | — |  |  | 38.4 |  |  | — |  |  | 38.4 |  |  | — |
Corporate securities | 946.6 |  |  | 0.2 |  |  | (4.4 | ) |  | 942.4 |  |  | — |  |  | 403.9 |  |  | 538.5 |
U.S. government agencies | 901.3 |  |  | — |  |  | (4.4 | ) |  | 896.9 |  |  | — |  |  | 311.7 |  |  | 585.2 |
Non-U.S. government securities | 2.5 |  |  | — |  |  | — |  |  | 2.5 |  |  | — |  |  | 2.5 |  |  | — |
Municipal securities | 301.1 |  |  | — |  |  | (1.9 | ) |  | 299.2 |  |  | — |  |  | 159.7 |  |  | 139.5 |
Subtotal | 2,189.9 |  |  | 0.2 |  |  | (10.7 | ) |  | 2,179.4 |  |  | — |  |  | 916.2 |  |  | 1,263.2 |
Total assets measured at fair value | $ | 3,861.7 |  |  | $ | 0.2 |  |  | $ | (15.4 | ) |  | $ | 3,846.5 |  |  | $ | 648.2 |  |  | $ | 1,312.4 |  |  | $ | 1,885.9 |
|  |  |  |  |  |  |  |  | Reported as:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | Cash and Cash Equivalents |  | Short-term Investments |  | Long-term Investments
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |
Cash | $ | 227.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 227.7 |  |  | $ | 227.7 |  |  | $ | — |  |  | $ | — |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | 612.4 |  |  | — |  |  | — |  |  | 612.4 |  |  | 612.4 |  |  | — |  |  | — |
U.S. treasuries | 625.9 |  |  | 0.1 |  |  | (2.0 | ) |  | 624.0 |  |  | 157.9 |  |  | 168.4 |  |  | 297.7 |
Subtotal | 1,238.3 |  |  | 0.1 |  |  | (2.0 | ) |  | 1,236.4 |  |  | 770.3 |  |  | 168.4 |  |  | 297.7 |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial paper | 139.6 |  |  | — |  |  | — |  |  | 139.6 |  |  | 31.1 |  |  | 108.5 |  |  | — |
Corporate securities | 1,471.8 |  |  | 0.7 |  |  | (5.0 | ) |  | 1,467.5 |  |  | 2.9 |  |  | 555.4 |  |  | 909.2 |
U.S. government agencies | 938.7 |  |  | 0.5 |  |  | (2.9 | ) |  | 936.3 |  |  | — |  |  | 342.7 |  |  | 593.6 |
Non-U.S. government securities | 18.5 |  |  | — |  |  | — |  |  | 18.5 |  |  | — |  |  | 16.0 |  |  | 2.5 |
Municipal securities | 815.4 |  |  | — |  |  | (3.5 | ) |  | 811.9 |  |  | 4.6 |  |  | 327.0 |  |  | 480.3 |
Subtotal | 3,384.0 |  |  | 1.2 |  |  | (11.4 | ) |  | 3,373.8 |  |  | 38.6 |  |  | 1,349.6 |  |  | 1,985.6 |
Total assets measured at fair value | $ | 4,850.0 |  |  | $ | 1.3 |  |  | $ | (13.4 | ) |  | $ | 4,837.9 |  |  | $ | 1,036.6 |  |  | $ | 1,518.0 |  |  | $ | 2,283.3 |
There were no transfers between Level 1 and Level 2 measurements during the year ended December 31, 2017, and there were no changes in the valuation techniques used. The following table summarizes the contractual maturities of the Company’s cash equivalents and available-for-sale investments (excluding cash and money market funds), at December 31, 2017 (in millions):
| Amortized Cost |  | Fair Value
Mature in less than one year | $ | 1,320.7 |  |  | $ | 1,317.9 |
Mature in one to five years | 1,898.3 |  |  | 1,885.9 |
Total | $ | 3,219.0 |  |  | $ | 3,203.8 |
Realized gains and losses, net of tax, were not material for any of the periods presented. As of December 31, 2017, and 2016, net unrealized losses on investments of $11.3 million and $8.6 million, net of tax, respectively, were included in accumulated other comprehensive loss in the accompanying Consolidated Balance Sheets. The following tables present the breakdown of the available-for-sale investments with unrealized losses at December 31, 2017, and 2016 (in millions):
| Unrealized losses less than 12 months |  | Unrealized losses 12 months or greater |  | Total
December 31, 2017 | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Corporate securities | $ | 567.6 |  |  | $ | (2.1 | ) |  | $ | 277.0 |  |  | $ | (2.3 | ) |  | $ | 844.6 |  |  | $ | (4.4 | )
U.S. treasuries | 763.5 |  |  | (2.5 | ) |  | 206.2 |  |  | (2.2 | ) |  | 969.7 |  |  | (4.7 | )
U.S. government agencies | 428.9 |  |  | (1.3 | ) |  | 345.5 |  |  | (3.1 | ) |  | 774.4 |  |  | (4.4 | )
Municipal securities | 236.3 |  |  | (1.3 | ) |  | 51.7 |  |  | (0.6 | ) |  | 288.0 |  |  | (1.9 | )
| $ | 1,996.3 |  |  | $ | (7.2 | ) |  | $ | 880.4 |  |  | $ | (8.2 | ) |  | $ | 2,876.7 |  |  | $ | (15.4 | )
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |
Corporate securities | $ | 1,056.1 |  |  | $ | (5.0 | ) |  | $ | — |  |  | $ | — |  |  | $ | 1,056.1 |  |  | $ | (5.0 | )
U.S. treasuries | 357.1 |  |  | (2.0 | ) |  | — |  |  | — |  |  | 357.1 |  |  | (2.0 | )
U.S. government agencies | 538.2 |  |  | (2.9 | ) |  | — |  |  | — |  |  | 538.2 |  |  | (2.9 | )
Municipal securities | 728.8 |  |  | (3.5 | ) |  | — |  |  | — |  |  | 728.8 |  |  | (3.5 | )
| $ | 2,680.2 |  |  | $ | (13.4 | ) |  | $ | — |  |  | $ | — |  |  | $ | 2,680.2 |  |  | $ | (13.4 | )
The unrealized losses on the available-for-sale investments are related to corporate securities and government securities. The Company determined these unrealized losses to be temporary. Factors considered in determining whether a loss is temporary included the length of time and extent to which the investment’s fair value has been less than the cost basis; the financial condition and near-term prospects of the investee; extent of the loss related to credit of the issuer; the expected cash flows from the security; the Company’s intent to sell the security; and whether or not the Company will be required to sell the security before the recovery of its amortized cost. Foreign currency derivatives The objective of the Company’s hedging program is to mitigate the impact of changes in currency exchange rates on net cash flow from foreign currency denominated sales, expenses, and intercompany balances and other monetary assets or liabilities denominated in currencies other than the U.S. dollar (“USD”). The derivative assets and liabilities are measured using Level 2 fair value inputs. Cash Flow Hedges. The Company enters into currency forward contracts as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the USD, primarily the European Euro (“EUR”), the British Pound (“GBP”), the Japanese Yen (“JPY”), and the Korean Won (“KRW”). The Company also enters into currency forward contracts as cash flow hedges to hedge certain forecasted expense transactions denominated in EUR and Swiss Franc (“CHF”). For these derivatives, the Company reports the after-tax gain or loss from the hedge as a component of accumulated other comprehensive loss in stockholders' equity and reclassifies into earnings in the same period in which the hedge transaction affects earnings. The Company reclassified a net loss of $2.9 million and net gains of $0.9 million and $7.2 million to revenue related to the hedged revenue transactions for the years ended December 31, 2017, 2016, and 2015, respectively. The amounts reclassified to expenses related to the hedged transactions and the ineffective portions of cash flow hedges were not material for the periods presented. Other Derivatives Not Designated as Hedging Instruments. Other derivatives not designated as hedging instruments consist primarily of forward contracts that the Company uses to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the USD, primarily the EUR, GBP, JPY, KRW, and CHF. These derivative instruments are used to hedge against balance sheet foreign currency exposures. The related gains and losses were as follows (in millions):
| Years Ended December 31,
| 2017 |  | 2016 |  | 2015
Recognized gains (losses) in interest and other income, net | $ | (9.2 | ) |  | $ | 6.4 |  |  | $ | 7.0 |
Foreign exchange gains (losses) related to balance sheet re-measurement | $ | 9.7 |  |  | $ | (5.6 | ) |  | $ | (7.9 | )
The notional amounts for derivative instruments provide one measure of the transaction volume. Total gross notional amounts (in USD) for derivatives and aggregate gross fair value outstanding at the end of each period were as follows (in millions):
| Derivatives Designated as Hedging Instruments |  | Derivatives Not Designated as Hedging Instruments
| December 31, 2017 |  | December 31, 2016 |  | December 31, 2017 |  | December 31, 2016
Notional amounts: |  |  |  |  |  |  |
Forward contracts | $ | 128.5 |  |  | $ | 109.7 |  |  | $ | 168.4 |  |  | $ | 143.7 |
Gross fair value recorded in: |  |  |  |  |  |  |
Prepaid and other current assets | $ | 0.9 |  |  | $ | 6.2 |  |  | $ | 1.2 |  |  | $ | 5.6 |
Other accrued liabilities | $ | 2.9 |  |  | $ | 1.0 |  |  | $ | 4.6 |  |  | $ | 0.6 |

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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