XML 34 R21.htm IDEA: XBRL DOCUMENT v3.7.0.1
3. Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2017
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, 2017 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
$
—

 
$
16.3

 
$
—

 
$
16.3

Foreign time deposits
10.2

 
—

 
—

 
10.2

U.S. government sponsored agencies
—

 
5.0

 
—

 
5.0

Money market funds
4.9

 
—

 
—

 
4.9

Total cash equivalents (a)
15.1

 
21.3

 
—

 
36.4

Restricted investment:
4.6

 
—

 
—

 
4.6

Available-for-sale investments:
 
 
 
 
 
 
 
Corporate debt securities
—

 
189.0

 
—

 
189.0

U.S. government sponsored agencies
—

 
72.8

 
—

 
72.8

Foreign government obligations
—

 
2.9

 
—

 
2.9

Brokered certificates of deposit
—

 
3.6

 
—

 
3.6

Municipal obligations
—

 
14.8

 
—

 
14.8

Marketable equity securities
894.1

 
—

 
—

 
894.1

Asset-backed securities
—

 
61.7

 
—

 
61.7

Total available-for-sale investments (b)
894.1

 
344.8

 
—

 
1,238.9

Forward foreign exchange contracts (c)
—

 
3.1

 
—

 
3.1

Total financial assets carried at fair value
$
913.8

 
$
369.2

 
$
—

 
$
1,283.0

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

 
$
1.7

 
$
—

 
$
1.7

Contingent consideration (e)
—

 
—

 
26.0

 
26.0

Total financial liabilities carried at fair value
$
—

 
$
1.7

 
$
26.0

 
$
27.7



Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2016 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
$
—

 
$
14.1

 
$
—

 
$
14.1

Foreign time deposits
11.8

 
—

 
—

 
11.8

Domestic time deposits
—

 
20.0

 
—

 
20.0

U.S. government sponsored agencies
—

 
1.1

 
—

 
1.1

Money market funds
5.9

 
—

 
—

 
5.9

Total cash equivalents (a)
17.7

 
35.2

 
—

 
52.9

Restricted investment:
4.6

 
—

 
—

 
4.6

Available-for-sale investments:
 
 
 
 
 
 
 
Corporate debt securities
—

 
179.4

 
—

 
179.4

U.S. government sponsored agencies
—

 
82.5

 
—

 
82.5

Foreign government obligations
—

 
4.4

 
—

 
4.4

Brokered certificates of deposit
—

 
3.6

 
—

 
3.6

Municipal obligations
—

 
15.4

 
—

 
15.4

Marketable equity securities
767.8

 
—

 
—

 
767.8

Asset-backed securities
—

 
62.5

 
—

 
62.5

Total available-for-sale investments (b)
767.8

 
347.8

 
—

 
1,115.6

Forward foreign exchange contracts (c)
—

 
0.6

 
—

 
0.6

Total financial assets carried at fair value
$
790.1

 
$
383.6

 
$
—

 
$
1,173.7

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

 
$
1.3

 
$
—

 
$
1.3

Contingent consideration (e)
—

 
—

 
38.5

 
38.5

Total financial liabilities carried at fair value
$
—

 
$
1.3

 
$
38.5

 
$
39.8


(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,
2017
 
December 31, 2016
Short-term investments
$
382.4

 
$
383.2

Other investments
856.5

 
732.4

Total
$
1,238.9

 
$
1,115.6



(c)
Forward foreign exchange contracts in an asset position are included in 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, 2017
 
December 31, 2016
Other current liabilities
$
3.2

 
$
14.5

Other long-term liabilities
22.8

 
24.0

   Total
$
26.0

 
$
38.5
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] The following table provides a reconciliation of the Level 3 cell sorting system and analytical flow cytometer platform contingent consideration liabilities measured at estimated fair value based on original valuations and updated quarterly for the three months ended March 31, 2017 (in millions):

 
2017
January 1
$
28.5

Cell sorting system:
 
Payment of sales milestone
(3.1
)
 
 
Analytical flow cytometer platform:
 
Increase in estimated fair value of contingent consideration included in Selling, general and administrative expense
0.6

March 31
$
26.0
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 analytical flow cytometer platform contingent consideration liability as of March 31, 2017. Significant increases or decreases in these inputs in isolation could result in a significantly lower or higher fair value measurement.
 
 
 
 
 
Valuation Technique
Unobservable Input
 
Analytical flow cytometer platform
Probability-weighted income approach
Sales milestones:
 
 
 
Discount rate
11
%
 
 
Cost of debt
4.6
%
 
 
 
 
Schedule of available-for-sale investments
Available-for-sale investments consist of the following (in millions):

 
March 31, 2017
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair
Value
Short-term investments:
 
 
 
 
 
 
 
Corporate debt securities
$
189.0

 
$
0.3

 
$
(0.3
)
 
$
189.0

Brokered certificates of deposit
3.6

 
—

 
—

 
3.6

Municipal obligations
14.9

 
—

 
(0.1
)
 
14.8

Asset-backed securities
61.4

 
0.2

 
(0.1
)
 
61.5

U.S. government sponsored agencies
73.3

 
0.1

 
(0.6
)
 
72.8

Foreign government obligations
2.9

 
—

 
—

 
2.9

Marketable equity securities
32.4

 
5.7

 
(0.3
)
 
37.8

 
377.5

 
6.3

 
(1.4
)
 
382.4

Long-term investments:
 
 
 
 
 
 
 
Marketable equity securities
54.5

 
801.8

 
—

 
856.3

Asset-backed securities
0.2

 
—

 
—

 
0.2

 
54.7

 
801.8

 
—

 
856.5

Total
$
432.2

 
$
808.1

 
$
(1.4
)
 
$
1,238.9



 
December 31, 2016
 
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Estimated
Fair
Value
Short-term investments:
 
 
 
 
 
 
 
Corporate debt securities
$
179.7

 
$
0.2

 
$
(0.5
)
 
$
179.4

Brokered certificates of deposit
3.6

 
—

 
—

 
3.6

Municipal obligations
15.5

 
—

 
(0.1
)
 
15.4

Asset-backed securities
62.2

 
0.1

 
(0.1
)
 
62.2

U.S. government sponsored agencies
83.1

 
0.1

 
(0.7
)
 
82.5

Foreign government obligations
4.4

 
—

 
—

 
4.4

Marketable equity securities
32.4

 
3.7

 
(0.4
)
 
35.7

 
380.9

 
4.1

 
(1.8
)
 
383.2

Long-term investments:
 
 
 
 
 
 
 
Marketable equity securities
54.5

 
677.6

 
—

 
732.1

Asset-backed securities
0.3

 
—

 
—

 
0.3

 
54.8

 
677.6

 
—

 
732.4

Total
$
435.7

 
$
681.7

 
$
(1.8
)
 
$
1,115.6
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,
2017
 
December 31, 2016
Fair value of investments in a loss position 12 months or more
$
8.9

 
$
11.8

Fair value of investments in a loss position less than 12 months
$
158.4

 
$
160.5

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

 
$
0.3

Gross unrealized losses for investments in a loss position less than 12 months
$
1.3

 
$
1.5
Discussion of current derivative risk management The following is a summary of our forward foreign exchange contracts (in millions):
 
March 31,
 
2017
Contracts maturing in April through June 2017 to sell foreign currency:
 
Notional value
$
17.4

Unrealized gain
$
0.1

Contracts maturing in April through June 2017 to purchase foreign currency:
 
Notional value
$
406.6

Unrealized gain
$
1.3
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, 2017 by contractual maturity date (in millions):

 
Amortized
Cost
 
Estimated Fair
Value
Mature in less than one year
$
151.7

 
$
151.8

Mature in one to five years
139.6

 
139.4

Mature in more than five years
54.0

 
53.6

Total
$
345.3

 
$
344.8
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, 2017
 
December 31, 2016
 
Carrying 
Amount 
 
Estimated 
Fair 
Value 
 
Fair Value Hierarchy Level
 
Carrying 
Amount 
 
Estimated 
Fair 
Value 
 
Fair Value Hierarchy Level
Other investments
$
93.4

 
$
1,149.2

 
2
 
$
92.8

 
$
984.2

 
2
Total long-term debt, excluding leases and current maturities
$
422.6

 
$
453.6

 
2
 
$
422.5

 
$
454.2

 
2