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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2022
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:
|  | Fair Value Measurements on a Recurring Basis
|  | As of September 30, 2022
(In millions) |  | Total |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |  |
Cash equivalents |  | $ | 3,191.8 |  |  | $ | — |  |  | $ | 3,191.8 |  |  | $ | — |
Marketable debt securities: |  |  |  |  |  |  |  |
Corporate debt securities |  | 1,219.1 |  |  | — |  |  | 1,219.1 |  |  | — |
Government securities |  | 702.0 |  |  | — |  |  | 702.0 |  |  | — |
Mortgage and other asset backed securities |  | 174.7 |  |  | — |  |  | 174.7 |  |  | — |
Marketable equity securities |  | 896.0 |  |  | 896.0 |  |  | — |  |  | — |
Other current assets: |  |  |  |  |  |  |  |
Receivable from Samsung BioLogics(1) |  | 790.8 |  |  | — |  |  | — |  |  | 790.8 |
Other assets: |  |  |  |  |  |  |  |
Derivative contracts |  | 195.9 |  |  | — |  |  | 195.9 |  |  | — |
Plan assets for deferred compensation |  | 32.2 |  |  | — |  |  | 32.2 |  |  | — |
Receivable from Samsung BioLogics(1) |  | 402.8 |  |  | — |  |  | — |  |  | 402.8 |
Total |  | $ | 7,605.3 |  |  | $ | 896.0 |  |  | $ | 5,515.7 |  |  | $ | 1,193.6 |
Liabilities: |  |  |  |  |  |  |  |
Derivative contracts |  | $ | 22.8 |  |  | $ | — |  |  | $ | 22.8 |  |  | $ | — |
Contingent consideration obligations |  | 195.4 |  |  | — |  |  | — |  |  | 195.4 |
Total |  | $ | 218.2 |  |  | $ | — |  |  | $ | 22.8 |  |  | $ | 195.4 |
(1) Represents the fair value of the current and non-current payments due from Samsung BioLogics as a result of the sale of our 49.9% equity interest in Samsung Bioepis to Samsung BioLogics during the second quarter of 2022, for which we elected the fair value option. For additional information on the sale of our equity interest in Samsung Bioepis, please read Note 2, Dispositions, to these condensed consolidated financial statements.
|  | Fair Value Measurements on a Recurring Basis
|  | As of December 31, 2021
(In millions) |  | Total |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |  |
Cash equivalents |  | $ | 1,632.2 |  |  | $ | — |  |  | $ | 1,632.2 |  |  | $ | — |
Marketable debt securities: |  |  |  |  |  |  |  |
Corporate debt securities |  | 1,108.2 |  |  | — |  |  | 1,108.2 |  |  | — |
Government securities |  | 1,192.7 |  |  | — |  |  | 1,192.7 |  |  | — |
Mortgage and other asset backed securities |  | 132.2 |  |  | — |  |  | 132.2 |  |  | — |
Marketable equity securities |  | 1,048.5 |  |  | 181.7 |  |  | 866.8 |  |  | — |
Derivative contracts |  | 80.9 |  |  | — |  |  | 80.9 |  |  | — |
Plan assets for deferred compensation |  | 33.4 |  |  | — |  |  | 33.4 |  |  | — |
Total |  | $ | 5,228.1 |  |  | $ | 181.7 |  |  | $ | 5,046.4 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |
Derivative contracts |  | $ | 10.8 |  |  | $ | — |  |  | $ | 10.8 |  |  | $ | — |
Contingent consideration obligations |  | 209.1 |  |  | — |  |  | — |  |  | 209.1 |
Total |  | $ | 219.9 |  |  | $ | — |  |  | $ | 10.8 |  |  | $ | 209.1 |
Summary of fair and carrying value of debt instruments | The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our level 3 financial assets and liabilities measured at fair value on a recurring basis:
|  | Quantitative Information about Level 3 Fair Value Measurements
|  | Fair Value |  |  |  |  |  |  |  | Weighted Average
(In millions) |  | September 30, 2022 |  | December 31, 2021 |  | Valuation Technique |  | Significant Unobservable Input(s) |  | Range |  | September 30, 2022 |  | December 31, 2021
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contingent consideration obligations |  | $ | 195.4 |  |  | $ | 209.1 |  |  | Discounted cash flow |  | Discount rate |  | 4.50% |  | 4.50 | % |  | 1.30 | %
|  |  |  |  |  | Expected timing of achievement of development milestones |  | 2023 to 2028 |  | — |  |  | — |
The fair and carrying values of our debt instruments, which are Level 2 liabilities, are summarized as follows:
|  | As of September 30, 2022 |  | As of December 31, 2021
(In millions) |  | Fair Value |  | Carrying Value |  | Fair Value |  | Carrying Value
3.625% Senior Notes due September 15, 2022(1) |  | $ | — |  |  | $ | — |  |  | $ | 1,020.0 |  |  | $ | 999.1 |
4.050% Senior Notes due September 15, 2025 |  | 1,697.8 |  |  | 1,744.3 |  |  | 1,895.2 |  |  | 1,742.9 |
2.250% Senior Notes due May 1, 2030 |  | 1,183.0 |  |  | 1,492.7 |  |  | 1,475.9 |  |  | 1,492.0 |
5.200% Senior Notes due September 15, 2045 |  | 997.2 |  |  | 1,100.2 |  |  | 1,463.0 |  |  | 1,099.9 |
3.150% Senior Notes due May 1, 2050 |  | 965.6 |  |  | 1,473.6 |  |  | 1,457.7 |  |  | 1,473.2 |
3.250% Senior Notes due February 15, 2051 |  | 452.8 |  |  | 468.4 |  |  | 692.9 |  |  | 466.0 |
Total |  | $ | 5,296.4 |  |  | $ | 6,279.2 |  |  | $ | 8,004.7 |  |  | $ | 7,273.1 |
(1) Our 3.625% Senior Notes due September 15, 2022, were redeemed in full in July 2022. For additional information, please read Note 12, Indebtedness, to these condensed consolidated financial statements.
Fair value of contingent consideration obligations | In connection with our acquisitions of Convergence and Biogen International Neuroscience GmbH, 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 are classified as Level 3 measurements:
|  | For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
(In millions) |  | 2022 |  | 2021 |  | 2022 |  | 2021
Fair value, beginning of period |  | $ | 197.5 |  |  | $ | 226.3 |  |  | $ | 209.1 |  |  | $ | 259.8 |
Changes in fair value |  | (2.1) |  |  | (15.6) |  |  | (13.7) |  |  | (49.1) |
Fair value, end of period |  | $ | 195.4 |  |  | $ | 210.7 |  |  | $ | 195.4 |  |  | $ | 210.7 |

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