Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Summary of assets and liabilities recorded at fair value

The tables below present information about our assets and liabilities that are regularly measured and carried at fair value and indicate the level within the fair value hierarchy of the valuation techniques we utilized to determine such fair value:



As of March 31, 2015 (In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	752.5	$	—	$	752.5	$	—
Marketable debt securities:
Corporate debt securities	991.0		—		991.0		—
Government securities	850.6		—		850.6		—
Mortgage and other asset backed securities	209.6		—		209.6		—
Marketable equity securities	6.2		6.2		—		—
Venture capital investments	12.1		—		—		12.1
Derivative contracts	168.2		—		168.2		—
Plan assets for deferred compensation	44.1		—		44.1		—
Total	$	3,034.3	$	6.2	$	3,016.0	$	12.1
Liabilities:
Derivative contracts	$	12.6	$	—	$	12.6	$	—
Contingent consideration obligations	461.8		—		—		461.8
Total	$	474.4	$	—	$	12.6	$	461.8



As of December 31, 2014 (In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	716.3	$	—	$	716.3	$	—
Marketable debt securities:
Corporate debt securities	1,063.0		—		1,063.0		—
Government securities	849.8		—		849.8		—
Mortgage and other asset backed securities	198.3		—		198.3		—
Marketable equity securities	6.9		6.9		—		—
Venture capital investments	14.5		—		—		14.5
Derivative contracts	72.7		—		72.7		—
Plan assets for deferred compensation	36.9		—		36.9		—
Total	$	2,958.4	$	6.9	$	2,937.0	$	14.5
Liabilities:
Derivative contracts	$	5.4	$	—	$	5.4	$	—
Contingent consideration obligations	215.5		—		—		215.5
Total	$	220.9	$	—	$	5.4	$	215.5

Fair value of venture capital investments

The following table provides a roll forward of the fair value of our venture capital investments, which includes Level 3 measurements:



	For the Three Months Ended March 31,
(In millions)	2015			2014
Fair value, beginning of period	$	14.5		$	21.9
Unrealized gains included in earnings	—			2.9
Unrealized losses included in earnings	(2.4		)	(1.2		)
Fair value, end of period	$	12.1		$	23.6

Summary of fair and carrying value of debt instruments

The fair and carrying values of our debt instruments, which are Level 2 liabilities, are summarized as follows:



	As of March 31, 2015				As of December 31, 2014
(In millions)	Fair Value		Carrying Value		Fair Value		Carrying Value
Notes payable to Fumedica	$	12.9	$	12.1	$	12.6	$	11.7
6.875% Senior Notes due March 1, 2018	633.9		571.8		634.6		573.5
Total	$	646.8	$	583.9	$	647.2	$	585.2

Fair value of contingent consideration obligations

The following table provides a roll forward of the fair values of our contingent consideration obligations which includes Level 3 measurements:



	For the Three Months Ended March 31,
(In millions)	2015		2014
Fair value, beginning of period	$	215.5	$	280.9
Additions	238.5		—
Changes in fair value	7.8		(0.8		)
Payments	—		(5.0		)
Fair value, end of period	$	461.8	$	275.1

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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