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Financial Instruments and Risk Management (Tables) | 6 Months Ended
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Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The following table summarizes the principal amounts of the Company’s outstanding Euro and Yen borrowings and the notional amounts of the Euro and Yen borrowings designated as net investment hedges:
|  |  |  | Notional Amount Designated as a Net Investment Hedge
(In millions) |  | Principal Amount |  | June 30, 2025 |  | December 31, 2024
1.362% Euro Senior Notes due 2027 |  | € | 850.0 |  |  | € | 850.0 |  |  | € | 850.0 |
3.125% Euro Senior Notes due 2028 |  | 750.0 |  |  | 750.0 |  |  | 750.0 |
1.908% Euro Senior Notes due 2032 |  | 1,250.0 |  |  | 1,250.0 |  |  | 1,250.0 |
Euro Total |  | € | 2,850.0 |  |  | € | 2,850.0 |  |  | € | 2,850.0 |
Yen |  |  |  |  |  |
YEN Term Loan |  | ¥ | 40,000.0 |  |  | ¥ | 40,000.0 |  |  | ¥ | 40,000.0 |
Yen Total |  | ¥ | 40,000.0 |  |  | ¥ | 40,000.0 |  |  | ¥ | 40,000.0 |
____________
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the classification and fair values of derivative instruments in our condensed consolidated balance sheets:
| Asset Derivatives |  | Liability Derivatives
(In millions) | Balance Sheet Location | June 30, 2025 Fair Value | December 31, 2024 Fair Value |  | Balance Sheet Location | June 30, 2025 Fair Value | December 31, 2024 Fair Value
Derivatives designated as hedges: |  |  |  |  |  |  |
Cross-currency interest rate swaps | Prepaid expenses & other current assets | $ | 0.1 |  | $ | 24.1 |  |  | Other current liabilities | $ | 52.7 |  | $ | — |
Foreign currency forward contracts | Prepaid expenses & other current assets | 3.9 |  | 39.2 |  |  | Other current liabilities | 23.3 |  | — |
Foreign currency forward contracts |  | — |  | — |  |  | Other long-term obligations | 5.9 |  | — |
Total derivatives designated as hedges |  | 4.0 |  | 63.3 |  |  |  | 81.9 |  | — |
Derivatives not designated as hedges: |  |  |  |  |  |  |
Foreign currency forward contracts | Prepaid expenses & other current assets | 138.4 |  | 198.3 |  |  | Other current liabilities | 301.0 |  | 125.8 |
Total derivatives not designated as hedges |  | 138.4 |  | 198.3 |  |  |  | 301.0 |  | 125.8 |
Total derivatives |  | $ | 142.4 |  | $ | 261.6 |  |  |  | $ | 382.9 |  | $ | 125.8 |
Financial Assets and Liabilities Carried at Fair Value | Financial assets and liabilities carried at fair value are classified in the tables below in one of the three categories described above:
| June 30, 2025 |  | December 31, 2024
(In millions) | Level 1 |  | Level 2 |  | Level 3 |  | Level 1 |  | Level 2 |  | Level 3
Recurring fair value measurements |  |  |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |  |  |
Cash equivalents: |  |  |  |  |  |  |  |  |  |  |
Money market funds | $ | 223.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 387.7 |  |  | $ | — |  |  | $ | — |
Total cash equivalents | 223.1 |  |  | — |  |  | — |  |  | 387.7 |  |  | — |  |  | — |
Equity securities: |  |  |  |  |  |  |  |  |  |  |
Exchange traded funds | 58.3 |  |  | — |  |  | — |  |  | 54.8 |  |  | — |  |  | — |
Marketable securities | 1.8 |  |  | — |  |  | — |  |  | 0.7 |  |  | — |  |  | — |
Total equity securities | 60.1 |  |  | — |  |  | — |  |  | 55.5 |  |  | — |  |  | — |
CCPS in Biocon Biologics | — |  |  | — |  |  | 950.0 |  |  | — |  |  | — |  |  | 1,349.8 |
Available-for-sale fixed income investments: |  |  |  |  |  |  |  |  |  |  |
Corporate bonds | — |  |  | 13.7 |  |  | — |  |  | — |  |  | 12.9 |  |  | — |
U.S. Treasuries | — |  |  | 19.3 |  |  | — |  |  | — |  |  | 17.2 |  |  | — |
Agency mortgage-backed securities | — |  |  | 2.2 |  |  | — |  |  | — |  |  | 3.2 |  |  | — |
Asset backed securities | — |  |  | 4.2 |  |  | — |  |  | — |  |  | 4.4 |  |  | — |
Other | — |  |  | 0.3 |  |  | — |  |  | — |  |  | 0.3 |  |  | — |
Total available-for-sale fixed income investments | — |  |  | 39.7 |  |  | — |  |  | — |  |  | 38.0 |  |  | — |
Foreign exchange derivative assets | — |  |  | 142.3 |  |  | — |  |  | — |  |  | 237.5 |  |  | — |
Interest rate swap derivative assets | — |  |  | 0.1 |  |  | — |  |  | — |  |  | 24.1 |  |  | — |
Total assets at recurring fair value measurement | $ | 283.2 |  |  | $ | 182.1 |  |  | $ | 950.0 |  |  | $ | 443.2 |  |  | $ | 299.6 |  |  | $ | 1,349.8 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |
Foreign exchange derivative liabilities | $ | — |  |  | $ | 330.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 125.8 |  |  | $ | — |
Interest rate swap derivative liabilities | — |  |  | 52.7 |  |  | — |  |  | — |  |  | — |  |  | — |
Contingent consideration | — |  |  | — |  |  | 367.2 |  |  | — |  |  | — |  |  | 556.1 |
Total liabilities at recurring fair value measurement | $ | — |  |  | $ | 382.9 |  |  | $ | 367.2 |  |  | $ | — |  |  | $ | 125.8 |  |  | $ | 556.1 |
Business Combination, Contingent Consideration | A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2024 to June 30, 2025 is as follows:
(In millions) | Current Portion (1) |  | Long-Term Portion (2) |  | Total Contingent Consideration
Balance at December 31, 2024 | $ | 59.5 |  |  | $ | 496.6 |  |  | $ | 556.1 |
Payments | (19.9) |  |  | — |  |  | (19.9) |
Reclassifications | (2.5) |  |  | 2.5 |  |  | — |
Accretion | — |  |  | 2.4 |  |  | 2.4 |
Fair value gain (3) | — |  |  | (171.4) |  |  | (171.4) |
Balance at June 30, 2025 | $ | 37.1 |  |  | $ | 330.1 |  |  | $ | 367.2 |
____________ (1)Included in other current liabilities in the condensed consolidated balance sheets. (2)Included in other long-term obligations in the condensed consolidated balance sheets. (3)Included in litigation settlements and other contingencies, net in the condensed consolidated statements of operations.
Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations | The following table summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk:
|  | Amount of Gains/(Losses) Recognized in Earnings |  | Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on Derivatives |  | Amount of Gains/(Losses) Reclassified from AOCE into Earnings
|  | Three months ended June 30,
(In millions) | Location of Gain/(Loss) | 2025 | 2024 |  | 2025 | 2024 |  | 2025 | 2024
Derivative Financial Instruments in Cash Flow Hedging Relationships (1) : |  |  |  |  |  |  |  |  |
Foreign currency forward contracts | Net sales (3) | $ | — |  | $ | — |  |  | $ | (21.6) |  | $ | 12.9 |  |  | $ | 0.7 |  | $ | 10.0 |
Interest rate swaps | Interest expense (3) | — |  | — |  |  | (1.0) |  | (1.3) |  |  | (1.2) |  | (1.6) |
Derivative Financial Instruments in Net Investment Hedging Relationships: |  |  |  |  |  |  |  |  |
Cross-currency interest rate swaps | Interest expense (2) | 3.4 |  | 2.6 |  |  | (40.3) |  | 5.1 |  |  | — |  | — |
Foreign currency forward contracts | Other expense (income), net (3) | — |  | — |  |  | (4.6) |  | 3.3 |  |  | 1.1 |  | — |
Non-derivative Financial Instruments in Net Investment Hedging Relationships: |  |  |  |  |  |  |  |  |
Foreign currency borrowings |  | — |  | — |  |  | (233.0) |  | 45.1 |  |  | — |  | — |
Derivative Financial Instruments Not Designated as Hedging Instruments: |  |  |  |  |  |  |  |  |
Foreign currency option and forward contracts | Other income, net (2) | (125.3) |  | 68.9 |  |  | — |  | — |  |  | — |  | — |
Total |  | $ | (121.9) |  | $ | 71.5 |  |  | $ | (300.5) |  | $ | 65.1 |  |  | $ | 0.6 |  | $ | 8.4 |
|  | Amount of Gains/(Losses) Recognized in Earnings |  | Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on Derivatives |  | Amount of Gains/(Losses) Reclassified from AOCE into Earnings
|  | Six months ended June 30,
(In millions) | Location of Gain/(Loss) | 2025 | 2024 |  | 2025 | 2024 |  | 2025 | 2024
Derivative Financial Instruments in Cash Flow Hedging Relationships (1) : |  |  |  |  |  |  |  |  |
Foreign currency forward contracts | Net sales (3) | $ | — |  | $ | — |  |  | $ | (34.8) |  | $ | 37.7 |  |  | $ | 10.6 |  | $ | 16.6 |
Interest rate swaps | Interest expense (3) | — |  | — |  |  | (1.9) |  | (2.5) |  |  | (2.4) |  | (3.2) |
Derivative Financial Instruments in Net Investment Hedging Relationships: |  |  |  |  |  |  |  |  |
Cross-currency interest rate swaps | Interest expense (2) | 6.8 |  | 3.8 |  |  | (60.1) |  | 10.0 |  |  | — |  | — |
Foreign currency forward contracts | Other expense (income), net (3) | — |  | — |  |  | (4.6) |  | 14.0 |  |  | 1.1 |  | — |
Non-derivative Financial Instruments in Net Investment Hedging Relationships: |  |  |  |  |  |  |  |  |
Foreign currency borrowings |  | — |  | — |  |  | (349.4) |  | 162.1 |  |  | — |  | — |
Derivative Financial Instruments Not Designated as Hedging Instruments: |  |  |  |  |  |  |  |  |
Foreign currency option and forward contracts | Other expense (income), net (2) | (235.2) |  | 46.1 |  |  | — |  | — |  |  | — |  | — |
Total |  | $ | (228.4) |  | $ | 49.9 |  |  | $ | (450.8) |  | $ | 221.3 |  |  | $ | 9.3 |  | $ | 13.4 |
____________ (1)At June 30, 2025, the Company expects that approximately $32.0 million of pre-tax net losses on cash flow hedges will be reclassified from AOCE into earnings during the next twelve months. (2)Represents the location of the gain/(loss) recognized in earnings on derivatives. (3)Represents the location of the gain/(loss) reclassified from AOCE into earnings.

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