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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

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 December 31, 2020
(In millions)						Total						Quoted Prices in Active Markets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents						$	626.9					$	—					$	626.9					$	—
Marketable debt securities:
Corporate debt securities						1,301.5						—						1,301.5						—
Government securities						627.1						—						627.1						—
Mortgage and other asset backed securities						122.4						—						122.4						—
Marketable equity securities						1,974.3						271.1						1,703.2						—
Derivative contracts						20.5						—						20.5						—
Plan assets for deferred compensation						28.2						—						28.2						—
Total						$	4,700.9					$	271.1					$	4,429.8					$	—
Liabilities:
Derivative contracts						$	217.2					$	—					$	217.2					$	—
Contingent consideration obligations						259.8						—						—						259.8
Total						$	477.0					$	—					$	217.2					$	259.8

						As of December 31, 2019
(In millions)						Total						Quoted Prices in Active Markets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents						$	2,541.1					$	—					$	2,541.1					$	—
Marketable debt securities:
Corporate debt securities						1,695.1						—						1,695.1						—
Government securities						1,013.9						—						1,013.9						—
Mortgage and other asset backed securities						261.3						—						261.3						—
Marketable equity securities						337.5						7.9						329.6						—
Derivative contracts						43.8						—						43.8						—
Plan assets for deferred compensation						27.7						—						27.7						—
Total						$	5,920.4					$	7.9					$	5,912.5					$	—
Liabilities:
Derivative contracts						$	8.3					$	—					$	8.3					$	—
Contingent consideration obligations						346.1						—						—						346.1
Total						$	354.4					$	—					$	8.3					$	346.1

Summary of significant unobservable inputs

The following table summarizes the significant unobservable inputs in the fair value measurement of our contingent consideration obligations as of December 31, 2020:

As of December 31, 2020

(In millions)

Fair Value

Valuation Technique

Unobservable Input

Range

Weighted Average

Liabilities:

Contingent consideration obligation

$259.8

Discounted cash flow

Discount rate

0.60%

0.60%

Expected timing of achievement of development milestones

2021 to 2025

—

Summary of gains or losses on assets measured at fair value, nonrecurring basis

The gains or losses on assets measured at fair value on a nonrecurring basis, are summarized as follows:

						As of December 31, 2020
(In millions)						Beginning Book Value						Impairment						Ending Book Value
BIIB111 intangible asset						$	480.0					$	(115.0)					$	365.0

Summary of fair and carrying value of debt instruments

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

						As of December 31,
(In millions)						2020						2019
2.900% Senior Notes due September 15, 2020(1)						$	—					$	1,509.6
3.625% Senior Notes due September 15, 2022						1,054.1						1,038.9
4.050% Senior Notes due September 15, 2025						2,003.1						1,897.2
2.250% Senior Notes due May 1, 2030						1,557.2						—
5.200% Senior Notes due September 15, 2045						2,365.1						2,107.9
3.150% Senior Notes due May 1, 2050						1,536.4						—
Total						$	8,515.9					$	6,553.6

(1) Our 2.900% Senior Notes due September 15, 2020, were redeemed in full in May 2020 using the net proceeds from the issuance on April 30, 2020, of our senior unsecured notes for an aggregate principal amount of $3.0 billion. For additional information, please read Note 12, Indebtedness, to these consolidated financial statements.

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:

						As of December 31,
(In millions)						2020						2019
Fair value, beginning of year						$	346.1					$	409.8
Changes in fair value						(86.3)						(63.7)
Payments and other						—						—
Fair value, end of year						$	259.8					$	346.1

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