XML 67 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
3. Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2014
Fair Value Disclosures [Abstract]  
Schedule of financial assets and liabilities carried at fair value on a recurring basis

Financial assets and liabilities carried at fair value and measured on a recurring basis as of March 31, 2014 are classified in the hierarchy as follows (in millions):

 
Level 1
 
Level 2
 
Level 3
 
Total
Financial Assets Carried at Fair Value:
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Commercial paper
$
—

 
$
7.5

 
$
—

 
$
7.5

U.S. government sponsored agencies
—

 
1.2

 
—

 
1.2

Foreign time deposits
19.0

 
—

 
—

 
19.0

Money market funds
2.4

 
—

 
—

 
2.4

Total cash equivalents (a)
21.4

 
8.7

 
—

 
30.1

Available-for-sale investments:
 
 
 
 
 
 
 
Corporate debt securities
—

 
134.5

 
—

 
134.5

Foreign brokered certificates of deposit
—

 
5.1

 
—

 
5.1

U.S. government sponsored agencies
—

 
41.3

 
—

 
41.3

Foreign government obligations
—

 
3.2

 
—

 
3.2

Municipal obligations
—

 
10.2

 
—

 
10.2

Marketable equity securities
366.5

 
—

 
—

 
366.5

Asset-backed securities
—

 
50.6

 
—

 
50.6

Total available-for-sale investments (b)
366.5

 
244.9

 
—

 
611.4

Forward foreign exchange contracts (c)
—

 
0.4

 
—

 
0.4

Total financial assets carried at fair value
$
387.9

 
$
254.0

 
$
—

 
$
641.9

 
 
 
 
 
 
 
 
Financial Liabilities Carried at Fair Value:
 
 
 
 
 
 
 
Forward foreign exchange contracts (d)
$
—

 
$
0.4

 
$
—

 
$
0.4

Contingent consideration (e)
—

 
—

 
15.9

 
15.9

Total financial liabilities carried at fair value
$
—

 
$
0.4

 
$
15.9

 
$
16.3



Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2013 are classified in the hierarchy as follows (in millions):

 
Level 1
 
Level 2
 
Level 3
 
Total
Financial Assets Carried at Fair Value:
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Commercial paper
$
—

 
$
7.0

 
$
—

 
$
7.0

Foreign time deposits
11.1

 
—

 
—

 
11.1

U.S. government sponsored agencies
—

 
1.2

 
—

 
1.2

Money market funds
1.2

 
—

 
—

 
1.2

Total cash equivalents (a)
12.3

 
8.2

 
—

 
20.5

Available-for-sale investments:
 
 
 
 
 
 
 
Corporate debt securities
—

 
132.5

 
—

 
132.5

Foreign brokered certificates of deposit
—

 
8.9

 
—

 
8.9

U.S. government sponsored agencies
—

 
39.1

 
—

 
39.1

Foreign government obligations
—

 
5.6

 
—

 
5.6

Municipal obligations
—

 
11.0

 
—

 
11.0

Marketable equity securities
325.2

 
—

 
—

 
325.2

Asset-backed securities
—

 
48.6

 
—

 
48.6

Total available-for-sale investments (b)
325.2

 
245.7

 
—

 
570.9

Forward foreign exchange contracts (c)
—

 
0.6

 
—

 
0.6

Total financial assets carried at fair value
$
337.5

 
$
254.5

 
$
—

 
$
592.0

 
 
 
 
 
 
 
 
Financial Liabilities Carried at Fair Value:
 
 
 
 
 
 
 
Forward foreign exchange contracts (d)
$
—

 
$
1.1

 
$
—

 
$
1.1

Contingent consideration (e)
—

 
—

 
20.8

 
20.8

Total financial liabilities carried at fair value
$
—

 
$
1.1

 
$
20.8

 
$
21.9



(a)
Cash equivalents are included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets.

(b)
Available-for-sale investments are included in the following accounts in the Condensed Consolidated Balance Sheets (in millions):
 
March 31,
2014
 
December 31, 2013
Short-term investments
$
276.8

 
$
277.4

Other investments
334.6

 
293.5

Total
$
611.4

 
$
570.9



(c)
Forward foreign exchange contracts in an asset position are included in Prepaid expenses, taxes and other current assets in the Condensed Consolidated Balance Sheets.

(d)
Forward foreign exchange contracts in a liability position are included in Other current liabilities in the Condensed Consolidated Balance Sheets.

(e)
Contingent consideration liability is included in the following accounts in the Condensed Consolidated Balance Sheets (in millions):

 
March 31, 2014
 
December 31, 2013
Other current liabilities
$
3.0

 
$
6.1

Other long-term liabilities
12.9

 
14.7

   Total
$
15.9

 
$
20.8
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following table provides a reconciliation of the Level 3 contingent consideration liability measured at estimated fair value based on original valuations and updated quarterly for the three months ended March 31, 2014 (in millions):

 
2014
January 1
$
20.8

Decrease in estimated fair value of contingent consideration included in Selling, general and administrative expense - Cell sorting system
(4.9
)
March 31
$
15.9
Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]
The following table provides quantitative information about Level 3 inputs for fair value measurement of our contingent consideration liability as of March 31, 2014. Significant increases or decreases in these inputs in isolation could result in a significantly lower or higher fair value measurement.
 
 
 
Range
 
Valuation Technique
Unobservable Input
From
To
Cell sorting system
Probability-weighted income approach
Sales milestones:
 
 
 
 
Credit adjusted discount rates
0.67%
1.45%
 
 
Projected volatility of growth rate
13%
20%
 
 
Market price of risk
1.25%
N/A
Discussion of current derivative risk management
The following is a summary of our forward foreign exchange contracts (in millions):
 
March 31,
 
2014
Contracts maturing in April through June 2014 to sell foreign currency:
 
Notional value
$
82.5

Unrealized gain or loss
$
—

Contracts maturing in April through June 2014 to purchase foreign currency:
 
Notional value
$
373.5

Unrealized gain or loss
$
—
Schedule of available-for-sale investments

Available-for-sale investments consist of the following (in millions):

 
March 31, 2014
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair
Value
Short-term investments:
 
 
 
 
 
 
 
Corporate debt securities
$
134.3

 
$
0.4

 
$
(0.2
)
 
$
134.5

Foreign brokered certificates of deposit
5.1

 
—

 
—

 
5.1

Municipal obligations
10.3

 
—

 
(0.1
)
 
10.2

Asset-backed securities
50.4

 
—

 
(0.1
)
 
50.3

U.S. government sponsored agencies
41.3

 
—

 
—

 
41.3

Foreign government obligations
3.2

 
—

 
—

 
3.2

Marketable equity securities
26.6

 
5.6

 
—

 
32.2

 
271.2

 
6.0

 
(0.4
)
 
276.8

Long-term investments:
 
 
 
 
 
 
 
Marketable equity securities
54.5

 
279.8

 
—

 
334.3

Asset-backed securities
0.4

 
—

 
(0.1
)
 
0.3

 
54.9

 
279.8

 
(0.1
)
 
334.6

Total
$
326.1

 
$
285.8

 
$
(0.5
)
 
$
611.4



 
December 31, 2013
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair
Value
Short-term investments:
 
 
 
 
 
 
 
Corporate debt securities
$
132.6

 
$
0.3

 
$
(0.4
)
 
$
132.5

Foreign brokered certificates of deposit
8.9

 
—

 
—

 
8.9

Municipal obligations
11.1

 
—

 
(0.1
)
 
11.0

Asset-backed securities
48.4

 
0.1

 
(0.2
)
 
48.3

U.S. government sponsored agencies
39.1

 
0.1

 
(0.1
)
 
39.1

Foreign government obligations
5.6

 
—

 
—

 
5.6

Marketable equity securities
26.6

 
5.4

 
—

 
32.0

 
272.3

 
5.9

 
(0.8
)
 
277.4

Long-term investments:
 
 
 
 
 
 
 
Marketable equity securities
54.5

 
238.7

 
—

 
293.2

Asset-backed securities
0.4

 
—

 
(0.1
)
 
0.3

 
54.9

 
238.7

 
(0.1
)
 
293.5

Total
$
327.2

 
$
244.6

 
$
(0.9
)
 
$
570.9
Summary of fair value of gross unrealized losses for investments with unrealized losses
The following is a summary of investments with gross unrealized losses and the associated fair value (in millions):

 
March 31,
2014
 
December 31, 2013
Fair value of investments in a loss position 12 months or more
$
4.2

 
$
2.3

Fair value of investments in a loss position less than 12 months
$
58.1

 
$
73.9

Gross unrealized losses for investments in a loss position 12 months or more
$
0.1

 
$
0.1

Gross unrealized losses for investments in a loss position less than 12 months
$
0.4

 
$
0.8
Summary of amortized cost and estimated fair value of debt securities by contractual maturity date

The following is a summary of the amortized cost and estimated fair value of our debt securities at March 31, 2014 by contractual maturity date (in millions):

 
Amortized
Cost
 
Estimated Fair
Value
Mature in less than one year
$
95.4

 
$
95.5

Mature in one to five years
110.0

 
110.0

Mature in more than five years
39.6

 
39.4

Total
$
245.0

 
$
244.9
Estimated fair value of financial instruments

The estimated fair value of the financial instruments discussed above and the level of the fair value hierarchy within which the fair value measurement is categorized are as follows (in millions):

 
March 31, 2014
 
December 31, 2013
 
Carrying 
Amount 
 
Estimated 
Fair 
Value 
 
Fair Value Hierarchy Level
 
Carrying 
Amount 
 
Estimated 
Fair 
Value 
 
Fair Value Hierarchy Level
Other investments
$
78.9

 
$
439.9

 
2
 
$
77.5

 
$
382.9

 
2
Total long-term debt, excluding leases and current maturities (a)
$
423.3

 
$
444.6

 
2
 
$
423.2

 
$
433.0

 
2


(a) The carrying amount of our capital leases at March 31, 2014 and December 31, 2013 was approximately $12.5 million and $12.6 million respectively. We believe these amounts approximate fair value due to the market rates inherent in the leases.