XML 27 R11.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2021
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, 2021, and 2020 (in millions):
|  |  |  |  |  |  |  |  |  |  | Reported as:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Loss |  | Fair Value |  | Cash and Cash Equivalents |  | Short-term Investments |  | Long-term Investments
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash | $ | 572.3 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 572.3 |  |  | $ | 572.3 |  |  | $ | — |  |  | $ | — |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | 696.6 |  |  | — |  |  | — |  |  | — |  |  | 696.6 |  |  | 696.6 |  |  | — |  |  | — |
U.S. treasuries | 3,429.1 |  |  | 6.3 |  |  | (15.4) |  |  | — |  |  | 3,420.0 |  |  | 17.0 |  |  | 1,100.3 |  |  | 2,302.7 |
Subtotal | 4,125.7 |  |  | 6.3 |  |  | (15.4) |  |  | — |  |  | 4,116.6 |  |  | 713.6 |  |  | 1,100.3 |  |  | 2,302.7 |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial paper | 717.7 |  |  | — |  |  | — |  |  | — |  |  | 717.7 |  |  | — |  |  | 717.7 |  |  | — |
Corporate securities | 2,485.6 |  |  | 2.7 |  |  | (11.9) |  |  | — |  |  | 2,476.4 |  |  | 5.0 |  |  | 886.7 |  |  | 1,584.7 |
U.S. government agencies | 526.1 |  |  | 0.2 |  |  | (2.9) |  |  | — |  |  | 523.4 |  |  | — |  |  | 137.8 |  |  | 385.6 |
Municipal securities | 213.4 |  |  | 0.7 |  |  | (1.0) |  |  | — |  |  | 213.1 |  |  | — |  |  | 70.6 |  |  | 142.5 |
Subtotal | 3,942.8 |  |  | 3.6 |  |  | (15.8) |  |  | — |  |  | 3,930.6 |  |  | 5.0 |  |  | 1,812.8 |  |  | 2,112.8 |
Total assets measured at fair value | $ | 8,640.8 |  |  | $ | 9.9 |  |  | $ | (31.2) |  |  | $ | — |  |  | $ | 8,619.5 |  |  | $ | 1,290.9 |  |  | $ | 2,913.1 |  |  | $ | 4,415.5 |
|  |  |  |  |  |  |  |  |  |  | Reported as:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Loss |  | Fair Value |  | Cash and Cash Equivalents |  | Short-term Investments |  | Long-term Investments
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash | $ | 644.3 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 644.3 |  |  | $ | 644.3 |  |  | $ | — |  |  | $ | — |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | 625.8 |  |  | — |  |  | — |  |  | — |  |  | 625.8 |  |  | 625.8 |  |  | — |  |  | — |
U.S. treasuries | 2,626.8 |  |  | 23.0 |  |  | — |  |  | — |  |  | 2,649.8 |  |  | 212.5 |  |  | 1,567.9 |  |  | 869.4 |
Subtotal | 3,252.6 |  |  | 23.0 |  |  | — |  |  | — |  |  | 3,275.6 |  |  | 838.3 |  |  | 1,567.9 |  |  | 869.4 |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial paper | 671.3 |  |  | — |  |  | — |  |  | — |  |  | 671.3 |  |  | 64.1 |  |  | 607.2 |  |  | — |
Corporate securities | 1,425.4 |  |  | 11.9 |  |  | (0.2) |  |  | — |  |  | 1,437.1 |  |  | 3.4 |  |  | 1,036.5 |  |  | 397.2 |
U.S. government agencies | 716.5 |  |  | 2.5 |  |  | — |  |  | — |  |  | 719.0 |  |  | 72.5 |  |  | 233.6 |  |  | 412.9 |
Municipal securities | 119.8 |  |  | 2.0 |  |  | — |  |  | — |  |  | 121.8 |  |  | — |  |  | 43.6 |  |  | 78.2 |
Subtotal | 2,933.0 |  |  | 16.4 |  |  | (0.2) |  |  | — |  |  | 2,949.2 |  |  | 140.0 |  |  | 1,920.9 |  |  | 888.3 |
Total assets measured at fair value | $ | 6,829.9 |  |  | $ | 39.4 |  |  | $ | (0.2) |  |  | $ | — |  |  | $ | 6,869.1 |  |  | $ | 1,622.6 |  |  | $ | 3,488.8 |  |  | $ | 1,757.7 |
The following table summarizes the contractual maturities of the Company’s cash equivalents and available-for-sale investments (excluding cash and money market funds) as of December 31, 2021 (in millions):
| Amortized Cost |  | Fair Value
Mature in less than one year | $ | 2,931.6 |  |  | $ | 2,935.1 |
Mature in one to five years | 4,440.3 |  |  | 4,415.5 |
Total | $ | 7,371.9 |  |  | $ | 7,350.6 |
Actual maturities may differ from contractual maturities, because certain borrowers have the right to call or prepay certain obligations. Gross realized gains recognized on the sale of investments were not material and $8.3 million for the years ended December 31, 2021 and 2020, respectively. Gross realized losses recognized on the sale of investments were not material for the periods presented. As of December 31, 2021, and 2020, net unrealized gains/(losses) on investments, net of tax, of $16.0 million and $29.5 million, respectively, were included in accumulated other comprehensive income/(loss) in the accompanying Consolidated Balance Sheets. The following tables present the breakdown of the available-for-sale investments with unrealized losses as of December 31, 2021, and 2020 (in millions):
| Unrealized losses less than 12 months |  | Unrealized losses 12 months or greater |  | Total
December 31, 2021 | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Commercial paper | $ | 4.0 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4.0 |  |  | $ | — |
Corporate securities | 1,687.9 |  |  | (11.9) |  |  | — |  |  | — |  |  | 1,687.9 |  |  | (11.9) |
U.S. treasuries | 2,596.3 |  |  | (15.4) |  |  | — |  |  | — |  |  | 2,596.3 |  |  | (15.4) |
U.S. government agencies | 412.5 |  |  | (2.9) |  |  | — |  |  | — |  |  | 412.5 |  |  | (2.9) |
Municipal securities | 156.0 |  |  | (1.0) |  |  | — |  |  | — |  |  | 156.0 |  |  | (1.0) |
Total | $ | 4,856.7 |  |  | $ | (31.2) |  |  | $ | — |  |  | $ | — |  |  | $ | 4,856.7 |  |  | $ | (31.2) |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Corporate securities | $ | 352.7 |  |  | $ | (0.2) |  |  | $ | — |  |  | $ | — |  |  | $ | 352.7 |  |  | $ | (0.2) |
U.S. treasuries | 278.1 |  |  | — |  |  | — |  |  | — |  |  | 278.1 |  |  | — |
U.S. government agencies | 63.5 |  |  | — |  |  | — |  |  | — |  |  | 63.5 |  |  | — |
Municipal securities | 21.3 |  |  | — |  |  | — |  |  | — |  |  | 21.3 |  |  | — |
Total | $ | 715.6 |  |  | $ | (0.2) |  |  | $ | — |  |  | $ | — |  |  | $ | 715.6 |  |  | $ | (0.2) |
The unrealized losses on the available-for-sale investments are related to commercial paper, corporate securities, U.S. treasuries, U.S. government agencies, and municipal 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, the 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. Equity Investments The following table is a summary of the activity related to equity investments (in millions):
|  |  |  |  |  |  |  |  | Reported as:
| December 31, 2020 Carrying Value |  | Changes in Fair Value (1) |  | Sales/Purchases/Others (2) |  | December 31, 2021 Carrying Value |  | Prepaids and other current assets |  | Intangible and other assets, net
Equity investments with readily determinable value (Level 1) | $ | 60.1 |  |  | (17.7) |  |  | (15.5) |  |  | $ | 26.9 |  |  | $ | 26.9 |  |  | $ | — |
Equity investments without readily determinable value (Level 2) | $ | 30.2 |  |  | 43.8 |  |  | (58.4) |  |  | $ | 15.6 |  |  | $ | — |  |  | $ | 15.6 |
(1) Recorded in Interest and other income, net.
(2) Other includes conversion of certain equity investments without readily determinable value to equity investments with readily determinable value.
The Company recognized a $43.8 million increase in fair value, which was reflected in Interest and other income, net, due to changes in observable prices for certain equity investments that are held at cost, because they lack readily determinable market values (Level 2). A total of $34.2 million of this increase in fair value was related to an equity investment in preferred shares of Broncus Holding Corporation (“Broncus”). There were no decreases in fair value reflected in net income due to impairments. In September 2021, Broncus completed an IPO of common shares on the Stock Exchange of Hong Kong. Upon completion of its IPO, the Company’s preferred shares were converted to common shares, which have a readily determinable value (Level 1). The Company is restricted from selling these shares for a period of six months. Subsequent to the IPO, the Company recognized a $29.1 million decrease in fair value from this investment. Accordingly, for the year ended December 31, 2021, the Company has recognized a net gain of $5.1 million related to its Broncus investment, comprised of the $34.2 million gain reflected in changes in fair value for Level 2 equity investments, offset by the $29.1 million loss reflected in changes in fair value for Level 1 equity investments, both of which were reflected in Interest and other income, net. The Company held an equity investment in common shares of Bolder Surgical Holdings, Inc. (“Bolder”), which was reflected in its financial statements on a cost basis. During the fourth quarter of 2021, Hologic, Inc., a publicly traded company, completed its acquisition of Bolder. Under the terms of the acquisition agreement, the Company received cash on the date of closing and recognized a gain on its investment of $9.5 million. In January 2021, the Company sold all of its shares of Teladoc Health, Inc. (“Teladoc”), a publicly traded company, for $71.5 million and recognized a gain of $11.4 million, which was reflected in Interest and other income, net. This gain was offset by a $7.5 million loss recognized upon the settlement of a corresponding derivative collar contract. 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 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 unrealized after-tax gain or loss from the hedge as a component of accumulated other comprehensive income/(loss) in stockholders’ equity and reclassifies the amount into earnings in the same period in which the hedged transaction affects earnings. The amounts reclassified to revenue and 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, CHF, Indian Rupee (“INR”), Mexican Peso (“MXN”), Chinese Yuan (“CNY”), and New Taiwan Dollar (“TWD”). 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,
| 2021 |  | 2020 |  | 2019
Recognized gains (losses) in interest and other income, net | $ | 15.5 |  |  | $ | (12.3) |  |  | $ | 6.4 |
Foreign exchange gains (losses) related to balance sheet re-measurement | $ | (16.4) |  |  | $ | 10.9 |  |  | $ | (1.5) |
The notional amounts for derivative instruments provide one measure of the transaction volume. Total gross notional amounts (in USD) for derivatives and the 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, 2021 |  | December 31, 2020 |  | December 31, 2021 |  | December 31, 2020
Notional amounts: |  |  |  |  |  |  |
Forward contracts | $ | 181.2 |  |  | $ | 154.3 |  |  | $ | 318.8 |  |  | $ | 309.8 |
Gross fair value recorded in: |  |  |  |  |  |  |
Prepaid and other current assets | $ | 5.7 |  |  | $ | 0.9 |  |  | $ | 6.9 |  |  | $ | 0.7 |
Other accrued liabilities | $ | 0.5 |  |  | $ | 4.3 |  |  | $ | 0.8 |  |  | $ | 5.4 |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration