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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2018
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements 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 June 30, 2018 (In millions) | Total |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 732.2 |  |  | $ | — |  |  | $ | 732.2 |  |  | $ | — |
Marketable debt securities: |  |  |  |  |  |  |
Corporate debt securities | 2,045.5 |  |  | — |  |  | 2,045.5 |  |  | — |
Government securities | 828.7 |  |  | — |  |  | 828.7 |  |  | — |
Mortgage and other asset backed securities | 260.0 |  |  | — |  |  | 260.0 |  |  | — |
Marketable equity securities | 489.7 |  |  | 70.1 |  |  | 419.6 |  |  | — |
Derivative contracts | 40.0 |  |  | — |  |  | 40.0 |  |  | — |
Plan assets for deferred compensation | 28.2 |  |  | — |  |  | 28.2 |  |  | — |
Total | $ | 4,424.3 |  |  | $ | 70.1 |  |  | $ | 4,354.2 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Derivative contracts | $ | 43.5 |  |  | $ | — |  |  | $ | 43.5 |  |  | $ | — |
Contingent consideration obligations | 499.9 |  |  | — |  |  | — |  |  | 499.9 |
Total | $ | 543.4 |  |  | $ | — |  |  | $ | 43.5 |  |  | $ | 499.9 |
As of December 31, 2017 (In millions) | Total |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Cash equivalents | $ | 1,229.4 |  |  | $ | — |  |  | $ | 1,229.4 |  |  | $ | — |
Marketable debt securities: |  |  |  |  |  |  |
Corporate debt securities | 2,609.8 |  |  | — |  |  | 2,609.8 |  |  | — |
Government securities | 1,919.3 |  |  | — |  |  | 1,919.3 |  |  | — |
Mortgage and other asset backed securities | 643.4 |  |  | — |  |  | 643.4 |  |  | — |
Marketable equity securities | 11.8 |  |  | 11.8 |  |  | — |  |  | — |
Derivative contracts | 2.7 |  |  | — |  |  | 2.7 |  |  | — |
Plan assets for deferred compensation | 28.5 |  |  | — |  |  | 28.5 |  |  | — |
Total | $ | 6,444.9 |  |  | $ | 11.8 |  |  | $ | 6,433.1 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Derivative contracts | $ | 111.3 |  |  | $ | — |  |  | $ | 111.3 |  |  | $ | — |
Contingent consideration obligations | 523.6 |  |  | — |  |  | — |  |  | 523.6 |
Total | $ | 634.9 |  |  | $ | — |  |  | $ | 111.3 |  |  | $ | 523.6 |
There have been no impairments of our assets measured and carried at fair value during the three and six months ended June 30, 2018. In addition, there were no changes in valuation techniques or inputs utilized or transfers between fair value measurement levels during the three and six months ended June 30, 2018. The fair values of Level 2 instruments classified as cash equivalents, marketable debt securities and our marketable equity security investment in Ionis Pharmaceuticals, Inc. (Ionis) were determined through third-party pricing services. For additional information on our collaboration agreement with Ionis, please read Note 18, Collaborative and Other Relationships, to these condensed consolidated financial statements. For a description of our validation procedures related to prices provided by third-party pricing services, please read Note 1, Summary of Significant Accounting Policies: Fair Value Measurements, to our consolidated financial statements included in our 2017 Form 10-K. Debt Instruments The fair and carrying values of our debt instruments, which are Level 2 liabilities, are summarized as follows:
| As of June 30, 2018 |  | As of December 31, 2017
(In millions) | Fair Value |  | Carrying Value |  | Fair Value |  | Carrying Value
Notes payable to Fumedica AG | $ | — |  |  | $ | — |  |  | $ | 3.2 |  |  | $ | 3.2 |
2.900% Senior Notes due September 15, 2020 | 1,491.0 |  |  | 1,474.3 |  |  | 1,517.7 |  |  | 1,482.4 |
3.625% Senior Notes due September 15, 2022 | 999.6 |  |  | 994.9 |  |  | 1,032.9 |  |  | 994.3 |
4.050% Senior Notes due September 15, 2025 | 1,757.9 |  |  | 1,737.0 |  |  | 1,851.9 |  |  | 1,736.3 |
5.200% Senior Notes due September 15, 2045 | 1,854.5 |  |  | 1,722.2 |  |  | 2,077.6 |  |  | 1,722.0 |
Total | $ | 6,103.0 |  |  | $ | 5,928.4 |  |  | $ | 6,483.3 |  |  | $ | 5,938.2 |
In connection with our 2006 distribution agreement with Fumedica AG, we issued notes totaling 61.4 million Swiss Francs that were payable to Fumedica AG in varying amounts from June 2008 through June 2018. In June 2018 we redeemed our remaining note payable to Fumedica AG. The fair value of our notes payable to Fumedica AG, as of December 31, 2017, was estimated using market observable inputs, including current interest and foreign currency exchange rates. The fair values of each of our series of Senior Notes were determined through market, observable and corroborated sources. For additional information on our debt instruments, please read Note 12, Indebtedness, to our consolidated financial statements included in our 2017 Form 10-K. Contingent Consideration Obligations In connection with our acquisitions of Convergence Pharmaceuticals Ltd., Stromedix Inc. and Biogen International Neuroscience GmbH in 2015, 2012 and 2010, respectively, we agreed to make additional payments based upon the achievement of certain milestone events. 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 June 30, |  | For the Six Months Ended June 30,
(In millions) | 2018 |  | 2017 |  | 2018 |  | 2017
Fair value, beginning of period | $ | 498.0 |  |  | $ | 470.9 |  |  | $ | 523.6 |  |  | $ | 467.6 |
Changes in fair value | 1.9 |  |  | 21.2 |  |  | (3.7 | ) |  | 31.2 |
Payments | — |  |  | — |  |  | (20.0 | ) |  | (6.7 | )
Fair value, end of period | $ | 499.9 |  |  | $ | 492.1 |  |  | $ | 499.9 |  |  | $ | 492.1 |
As of June 30, 2018 and December 31, 2017, $270.5 million and $279.0 million, respectively, of the fair value of our contingent consideration obligations was reflected as a component of other long-term liabilities in our condensed consolidated balance sheets with the remaining balance reflected as a component of accrued expenses and other. For the three and six months ended June 30, 2018, changes in the fair value of our contingent consideration obligations were primarily due to an increase in interest rates used to revalue our contingent consideration liabilities, the passage of time and a milestone payment. For the three and six months ended June 30, 2017, changes in the fair value of our contingent consideration obligations were primarily due to an increase in the probability of achieving certain developmental milestones.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + 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
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