XML 46 R11.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Fair Value Measurements | 12 Months Ended
--- | ---
Dec. 31, 2021
Fair Value Disclosures [Abstract] |
Fair Value Measurements |
3. Fair Value Measurements
Assets and Liabilities Measured at Fair Value on a Recurring Basis We estimate the fair value of our Level 1 financial instruments, which are in active markets, using unadjusted quoted market prices for identical instruments. We obtain the fair values for our Level 2 financial instruments, which are not in active markets, from a primary professional pricing source that uses quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. Fair values obtained from this professional pricing source can also be based on pricing models whereby all significant observable inputs, including maturity dates, issue dates, settlement dates, benchmark yields, reported trades, broker-dealer quotes, issue spreads, benchmark securities, bids, offers or other market related data, are observable or can be derived from, or corroborated by, observable market data for substantially the full term of the asset. We validate the quoted market prices provided by our primary pricing service by comparing the fair values of our Level 2 marketable securities portfolio balance provided by our primary pricing service against the fair values provided by our investment managers. The following table summarizes financial assets that we measured at fair value on a recurring basis as of December 31, 2021, classified in accordance with the fair value hierarchy:
| Fair Value Measurements Using
(In millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash equivalents | $ | 791.4 |  |  | $ | 40.0 |  |  | $ | — |  |  | $ | 831.4 |
Debt securities, available-for-sale: |  |  |  |  |  |  |
U.S. government agencies | — |  |  | 1,210.6 |  |  | — |  |  | 1,210.6 |
Commercial paper | — |  |  | 189.7 |  |  | — |  |  | 189.7 |
Corporate debt | — |  |  | 224.3 |  |  | — |  |  | 224.3 |
Supranationals | — |  |  | 54.0 |  |  | — |  |  | 54.0 |
Total debt securities, available-for-sale | — |  |  | 1,678.6 |  |  | — |  |  | 1,678.6 |
Other assets (1) | 7.0 |  |  | — |  |  | — |  |  | 7.0 |
Total assets measured at fair value on a recurring basis | $ | 798.4 |  |  | $ | 1,718.6 |  |  | $ | — |  |  | $ | 2,517.0 |
(1) Includes assets which are held pursuant to a deferred compensation plan for senior management, which consist mainly of mutual funds. The following table summarizes financial assets that we measured at fair value on a recurring basis as of December 31, 2020, classified in accordance with the fair value hierarchy:
| Fair Value Measurements Using
(In millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash equivalents | $ | 491.5 |  |  | $ | 150.0 |  |  | $ | — |  |  | $ | 641.5 |
Debt securities, available-for-sale: |  |  |  |  |  |  |
U.S. government agencies | — |  |  | 1,570.4 |  |  | — |  |  | 1,570.4 |
Commercial paper | — |  |  | 258.8 |  |  | — |  |  | 258.8 |
Corporate debt | — |  |  | 60.9 |  |  | — |  |  | 60.9 |
Total debt securities, available-for-sale | — |  |  | 1,890.1 |  |  | — |  |  | 1,890.1 |
Other assets (1) | 3.4 |  |  | — |  |  | — |  |  | 3.4 |
Total assets measured at fair value on a recurring basis | $ | 494.9 |  |  | $ | 2,040.1 |  |  | $ | — |  |  | $ | 2,535.0 |
(1) Includes assets which are held pursuant to a deferred compensation plan for senior management, which consist mainly of mutual funds. There were no transfers into or out of Level 3 securities during the twelve months ended December 31, 2021 and 2020. We hold certain other investments that we do not measure at fair value on a recurring basis. The carrying values of these investments are not significant and we include them in other assets in our consolidated balance sheets. It is impracticable for us to estimate the fair value of these investments on a recurring basis due to the fact that these entities are privately held and limited information is available. We monitor the information that becomes available from time to time and adjust the carrying values of these investments if there are identified events or changes in circumstances that have a significant adverse effect on the fair values. Fair Value of Senior Convertible Notes The fair value, based on trading prices (Level 1 inputs), of our senior convertible notes were as follows as of the dates indicated:
| Fair Value Measurements Using Level 1
(In millions) | December 31, 2021 |  | December 31, 2020
Senior Convertible Notes due 2023 | $ | 2,589.6 |  |  | $ | 1,936.4 |
Senior Convertible Notes due 2025 | 1,432.9 |  |  | 1,219.2 |
Total fair value of outstanding senior convertible notes | $ | 4,022.5 |  |  | $ | 3,155.6 |
For more information on the carrying values of our senior convertible notes, see Senior Convertible Notes in Note 5 to the consolidated financial statements. Foreign Currency and Derivative Financial Instruments From time to time we use foreign currency contracts to manage foreign currency risks. Our foreign currency contracts are not designated as hedges and, therefore, changes in the fair values of these derivatives are recognized in earnings, thereby offsetting the current earnings effect of the related foreign currency assets and liabilities. The fair values of these derivatives are based on quoted market prices, which are Level 1 inputs, and the derivative instruments are recorded in current assets or current liabilities in our consolidated balance sheets consistent with the nature of the instrument at period end. Derivative gains and losses are included in interest and other income (expense), net in our consolidated statements of operations. As of December 31, 2021 and December 31, 2020, notional amounts of $40.0 million and $48.0 million, respectively, were outstanding to hedge certain foreign currency risk. The resulting impact on our consolidated financial statements from currency hedging activities was not significant for the twelve months ended December 31, 2021, 2020 and 2019. Our foreign currency exposures vary but are primarily concentrated in the Australian Dollar, the British Pound, the Canadian Dollar, the Euro and the Malaysian Ringgit. We monitor the costs and the impact of foreign currency risks upon our financial results as part of our risk management program. We do not use derivative financial instruments for speculation or trading purposes or for activities other than risk management. We do not require and are not required to pledge collateral for these financial instruments and we do not carry any master netting arrangements to mitigate the credit risk. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis In accordance with authoritative guidance, we measure certain non-financial assets and liabilities at fair value on a non-recurring basis. These measurements are usually performed using the discounted cash flow method or cost method and Level 3 inputs. These include items such as non-financial assets and liabilities initially measured at fair value in a business combination and non-financial long-lived assets measured at fair value for an impairment assessment. In general, non-financial assets, including goodwill, intangible assets, and property and equipment, are measured at fair value when there are indicators of impairment and are recorded at fair value only when an impairment is recognized. We recorded no significant impairment losses during the twelve months ended December 31, 2021, 2020 and 2019.

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 of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration