XML 20 R9.htm IDEA: XBRL DOCUMENT
v3.21.1

2. Fair Value Measurements | 3 Months Ended
--- | ---
Mar. 31, 2021
Fair Value Disclosures [Abstract] |
Fair Value Measurements | FAIR VALUE MEASUREMENTS We determine the fair value of an asset or liability based on the assumptions that market participants would use in pricing the asset or liability in an orderly transaction between market participants at the measurement date. The identification of market participant assumptions provides a basis for determining what inputs are to be used for pricing each asset or liability. A fair value hierarchy has been established which gives precedence to fair value measurements calculated using observable inputs over those using unobservable inputs. This hierarchy prioritizes the inputs into three broad levels as follows: •Level 1: Quoted prices in active markets for identical instruments •Level 2: Other significant observable inputs (including quoted prices in active markets for similar instruments) •Level 3: Significant unobservable inputs (including assumptions in determining the fair value of certain investments) Financial assets and liabilities carried at fair value and measured on a recurring basis as of March 31, 2021 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 | $ | — |  |  | $ | 29.3 |  |  | $ | — |  |  | $ | 29.3 |
U.S. government sponsored agencies | — |  |  | 2.6 |  |  | — |  |  | 2.6 |
Time deposits | 8.7 |  |  | 10.0 |  |  | — |  |  | 18.7 |
Money market funds | 61.3 |  |  | — |  |  | — |  |  | 61.3 |
Total cash equivalents (a) | 70.0 |  |  | 41.9 |  |  | — |  |  | 111.9 |
Restricted investments (b) | 6.8 |  |  | — |  |  | — |  |  | 6.8 |
Equity securities (c) | 10,524.3 |  |  | — |  |  | — |  |  | 10,524.3 |
Available-for-sale investments: |  |  |  |  |  |  |
Corporate debt securities | — |  |  | 162.2 |  |  | — |  |  | 162.2 |
U.S. government sponsored agencies | — |  |  | 71.8 |  |  | — |  |  | 71.8 |
Foreign government obligations | — |  |  | 4.0 |  |  | — |  |  | 4.0 |
Other foreign obligations | — |  |  | 2.1 |  |  | — |  |  | 2.1 |
Municipal obligations | — |  |  | 14.1 |  |  | — |  |  | 14.1 |
Asset-backed securities | — |  |  | 28.1 |  |  | — |  |  | 28.1 |
Total available-for-sale investments (d) | — |  |  | 282.3 |  |  | — |  |  | 282.3 |
Forward foreign exchange contracts (e) | — |  |  | 0.6 |  |  | — |  |  | 0.6 |
Total financial assets carried at fair value | $ | 10,601.1 |  |  | $ | 324.8 |  |  | $ | — |  |  | $ | 10,925.9 |
Financial liabilities carried at fair value: |  |  |  |  |  |  |
Forward foreign exchange contracts (f) | $ | — |  |  | $ | 1.1 |  |  | $ | — |  |  | $ | 1.1 |
Contingent consideration (g) | — |  |  | — |  |  | 0.7 |  |  | 0.7 |
Total financial liabilities carried at fair value | $ | — |  |  | $ | 1.1 |  |  | $ | 0.7 |  |  | $ | 1.8 |
Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2020 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 | $ | — |  |  | $ | 41.7 |  |  | $ | — |  |  | $ | 41.7 |
Time deposits | 17.6 |  |  | 10.0 |  |  | — |  |  | 27.6 |
Asset-backed securities | — |  |  | 0.9 |  |  | — |  |  | 0.9 |
U.S. government sponsored agencies | — |  |  | 2.5 |  | — |  |  | 2.5 |
Money market funds | 60.1 |  |  | — |  |  | — |  |  | 60.1 |
Total cash equivalents (a) | 77.7 |  |  | 55.1 |  |  | — |  |  | 132.8 |
Restricted investments (b) | 6.7 |  |  | — |  |  | — |  |  | 6.7 |
Equity securities (c) | 9,582.4 |  |  | — |  |  | — |  |  | 9,582.4 |
Available-for-sale investments: |  |  |  |  |  |  |
Corporate debt securities | — |  |  | 133.2 |  |  | — |  |  | 133.2 |
U.S. government sponsored agencies | — |  |  | 76.9 |  |  | — |  |  | 76.9 |
Foreign government obligations | — |  |  | 4.0 |  |  | — |  |  | 4.0 |
Other foreign obligations | — |  |  | 2.1 |  |  | — |  |  | 2.1 |
Municipal obligations | — |  |  | 15.2 |  |  | — |  |  | 15.2 |
Asset-backed securities | — |  |  | 36.2 |  |  | — |  |  | 36.2 |
Total available-for-sale investments (d) | — |  |  | 267.6 |  |  | — |  |  | 267.6 |
Forward foreign exchange contracts (e) | — |  |  | 1.0 |  |  | — |  |  | 1.0 |
Total financial assets carried at fair value | $ | 9,666.8 |  |  | $ | 323.7 |  |  | $ | — |  |  | $ | 9,990.5 |
Financial liabilities carried at fair value: |  |  |  |  |  |  |
Forward foreign exchange contracts (f) | $ | — |  |  | $ | 1.0 |  |  | $ | — |  |  | $ | 1.0 |
Contingent consideration (g) | — |  |  | — |  |  | 0.7 |  |  | 0.7 |
Total financial liabilities carried at fair value | $ | — |  |  | $ | 1.0 |  |  | $ | 0.7 |  |  | $ | 1.7 |
(a)Cash equivalents are included in Cash and cash equivalents in the condensed consolidated balance sheets. (b) Restricted investments are included in the following accounts in the condensed consolidated balance sheets (in millions):
| March 31, 2021 |  | December 31, 2020
Restricted investments | $ | 5.6 |  |  | $ | 5.6 |
Other investments | 1.2 |  |  | 1.1 |
Total | $ | 6.8 |  |  | $ | 6.7 |
(c) Equity securities are included in the following accounts in the condensed consolidated balance sheets (in millions):
| March 31, 2021 |  | December 31, 2020
Short-term investments | $ | 64.2 |  |  | $ | 61.4 |
Other investments | 10,460.1 |  |  | 9,521.0 |
Total | $ | 10,524.3 |  |  | $ | 9,582.4 |
The change in fair market value on our equity securities for the three months ended March 31, 2021 was a $1,179.4 million gain, which was primarily due to our investment in Sartorius AG and is recorded in our condensed consolidated statements of income. As of March 31, 2021, we own 12,987,900 ordinary voting shares and 9,588,908 preferenc e shares of Sartorius AG (Sartorius), of Goettingen, Germany, a process technology supplier to the biotechnology, pharmaceutical, chemical and food and beverage industries. We own approximately 37% of the ordinary outstanding voting shares (excluding treasury shares) and 28% of the preference shares of Sartorius as of March 31, 2021. (d) Available-for-sale investments are included in the following accounts in the condensed consolidated balance sheets (in millions):
| March 31, 2021 |  | December 31, 2020
Short-term investments | $ | 282.2 |  |  | $ | 267.5 |
Other investments | 0.1 |  |  | 0.1 |
Total | $ | 282.3 |  |  | $ | 267.6 |
(e) Forward foreign exchange contracts in an asset position are included in other current assets in the condensed consolidated balance sheets. (f) Forward foreign exchange contracts in a liability position are included in other current liabilities in the condensed consolidated balance sheets. (g) Contingent consideration liability is included in the following accounts in the condensed consolidated balance sheets (in millions):
| March 31, 2021 |  | December 31, 2020
Other current liabilities | $ | 0.6 |  |  | $ | 0.6 |
Other long-term liabilities | 0.1 |  |  | 0.1 |
Total | $ | 0.7 |  |  | $ | 0.7 |
During the fourth quarter of 2019, we recognized a contingent consideration liability for earn-out targets related to our acquisition of a foreign distributor. The first earn-out payment of $0.7 million was paid by the acquisition date and the remaining payment is anticipated to be paid in the first half of 2021. The maximum earn-out payment due is $1.4 million. The contingent consideration was accrued at its estimated fair value of $0.6 million as of March 31, 2021 which is unchanged from the fair value at December 31, 2020. During the second quarter of 2020, we recognized a contingent consideration liability upon our acquisition of Celsee, Inc. which represents the future potential earn-out payments of up to $60.0 million payable in cash upon the achievement of certain net revenues for the period beginning on January 1, 2021 and ending on December 31, 2022. The fair value of the earn-out as of the Acquisition Date was approximately $0.1 million which was determined by using a Black-Scholes-Merton option-pricing valuation model that includes significant assumptions and unobservable inputs such as the projected revenues of Celsee over the earn-out period and the probability of the earn-out threshold being met. The fair value of the contingent consideration is remeasured at each reporting period based on the assumptions and inputs on the date of remeasurement. The achievement of net revenues was not met as of March 31, 2021 and therefore the fair value of the earn-out remained unchanged at approximately $0.1 million as of March 31, 2021. To estimate the fair value of Level 2 debt securities as of March 31, 2021, our primary pricing provider uses Reuters as the primary pricing source. Our pricing process allows us to select a hierarchy of pricing sources for securities held. If Reuters does not price a Level 2 security that we hold, then the pricing provider will utilize our custodian supplied pricing as the secondary pricing source. Available-for-sale investments consist of the following (in millions):
| March 31, 2021
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Allowances for Credit Losses | Fair Value
Short-term investments: |  |  |  |  |  |  |  |
Corporate debt securities | $ | 160.3 |  |  | $ | 1.9 |  |  | $ | — |  |  | $ | — |  | $ | 162.2 |
Municipal obligations | 14.0 |  |  | 0.1 |  |  | — |  |  | — |  | 14.1 |
Asset-backed securities | 27.7 |  |  | 0.3 |  |  | — |  |  | — |  | 28.0 |
U.S. government sponsored agencies | 70.6 |  |  | 1.3 |  |  | (0.1) |  |  | — |  | 71.8 |
Foreign government obligations | 4.0 |  |  | — |  |  | — |  |  | — |  | 4.0 |
Other foreign obligations | 2.1 |  |  | — |  |  | — |  |  | — |  | 2.1 |
| 278.7 |  |  | 3.6 |  |  | (0.1) |  |  | — |  | 282.2 |
Long-term investments: |  |  |  |  |  |  |  |
Asset-backed securities | 0.1 |  |  | — |  |  | — |  |  | — |  | 0.1 |
| 0.1 |  |  | — |  |  | — |  |  | — |  | 0.1 |
Total | $ | 278.8 |  |  | $ | 3.6 |  |  | $ | (0.1) |  |  | $ | — |  | $ | 282.3 |
The following is a summary of the amortized cost and estimated fair value of our debt securities at March 31, 2021 by contractual maturity date (in millions):
| Amortized Cost |  | Estimated Fair Value
Mature in less than one year | $ | 173.6 |  |  | $ | 174.1 |
Mature in one to five years | 66.2 |  |  | 67.9 |
Mature in more than five years | 39.0 |  |  | 40.3 |
Total | $ | 278.8 |  |  | $ | 282.3 |
Available-for-sale investments consist of the following (in millions):
| December 31, 2020
| Amortized Cost |  | Unrealized Gains |  | Unrealized Losses | Allowances for Credit Losses |  | Estimated Fair Value
Short-term investments: |  |  |  |  |  |  |  |
Corporate debt securities | $ | 130.5 |  |  | $ | 2.7 |  |  | $ | — |  | — |  |  | $ | 133.2 |
Municipal obligations | 15.0 |  |  | 0.2 |  |  | — |  | — |  |  | 15.2 |
Asset-backed securities | 35.8 |  |  | 0.3 |  |  | — |  | — |  |  | 36.1 |
U.S. government sponsored agencies | 74.7 |  |  | 2.2 |  |  | — |  | — |  |  | 76.9 |
Foreign government obligations | 4.0 |  |  | — |  |  | — |  | — |  |  | 4.0 |
Other foreign obligations | 2.1 |  |  | — |  |  | — |  | — |  |  | 2.1 |
| 262.1 |  |  | 5.4 |  |  | — |  | — |  |  | 267.5 |
Long-term investments: |  |  |  |  |  |  |  |
Asset-backed securities | 0.1 |  |  | — |  |  | — |  | — |  |  | 0.1 |
| 0.1 |  |  | — |  |  | — |  | — |  |  | 0.1 |
Total | $ | 262.2 |  |  | $ | 5.4 |  |  | $ | — |  | $ | — |  |  | $ | 267.6 |
The following is a summary of investments with gross unrealized losses and the associated fair value (in millions):
| March 31, 2021
| Less than 12 months |  | Greater than 12 months |  | Total
Description of securities: | Fair Value | Unrealized Losses |  | Fair Value | Unrealized Losses |  | Fair Value | Unrealized Losses
U.S. government sponsored agencies | 7.4 |  | 0.1 |  |  | — |  | — |  |  | 7.4 |  | 0.1 |
Total | $ | 7.4 |  | $ | 0.1 |  |  | $ | — |  | $ | — |  |  | $ | 7.4 |  | $ | 0.1 |
The unrealized losses of $0.1 million as of March 31, 2021 are due to a number of factors, including changes in interest rates, changes in economic conditions and changes in market outlook for various industries, among others. There were no significant unrealized losses as of December 31, 2020 in either the less than or greater than 12 month categories. Our evaluation of credit losses for available-for-sale debt securities included t he extent to which the fair value is less than the amortized cost basis, adverse conditions specifically related to the debt security, an industry or geographic area, and any changes in the rating of a security by a rating agency. Credit loss impairments are limited to the amount that the fair value of an instrument is less than its amortized cost basis. At March 31, 2021, we have concluded that all payments related to our available-for-sale investments are expected to be made in full and on time at par value. The diminution of value in the intervening period is due to market conditions such as illiquidity and interest rate movements and not due to significant, inherent credit concerns surrounding the issuer. As a result, we have no allowances for credit losses on our available-for-sale investments portfolio as of March 31, 2021. Included in other current assets are $1.4 million of interest receivable as of March 31, 2021 and December 31, 2020, primarily associated with securities in our available-for-sale investments portfolio. Associated interest on these securities is typically payable semi-annually. Due to the short-term nature of our interest receivable asset, we have made an accounting policy election not to measure an allowance for credit losses for accrued interest receivable. We consider any uncollected interest receivable that is overdue greater than one year to be impaired for purposes of write-off. For the three months ended March 31, 2021, we have not written-off any uncollected interest receivable. As part of distributing our products, we regularly enter into intercompany transactions. We enter into forward foreign exchange contracts to manage foreign exchange risk of future movements in foreign exchange rates that affect foreign currency denominated intercompany receivables and payables. We do not use derivative financial instruments for speculative or trading purposes. We do not seek hedge accounting treatment for these contracts. As a result, these contracts, generally with maturity dates of 90 days or less and denominated primarily in currencies of industrial countries, are recorded at their fair value at each balance sheet date. The notional principal amounts provide one measure of the transaction volume outstanding as of March 31, 2021 and do not represent the amount of Bio-Rad's exposure to loss. The estimated fair value of these contracts was derived using the spot rates from Reuters on the last business day of the quarter and the points provided by counterparties. The resulting gains or losses offset exchange gains or losses on the related receivables and payables, both of which are included in foreign currency exchange losses, net in the condensed consolidated statements of income. The following is a summary of our forward foreign exchange contracts (in millions):
| March 31,
| 2021
Contracts maturing in April through June 2021 to sell foreign currency: |
Notional value | $ | 284.0 |
Unrealized loss | $ | 0.4 |
Contracts maturing in April through June 2021 to purchase foreign currency: |
Notional value | $ | 252.3 |
Unrealized gain or loss | $ | — |
Included in other investments in the condensed consolidated balance sheets are investments without readily determinable fair value measured at cost with adjustments for observable price changes in price or impairments. The carrying value of these investments was $6.5 million and $0.5 million as of March 31, 2021 and December 31, 2020, respectively. Also included in other investments in the condensed consolidated balance sheets are our equity method investments, for which our share of the equity method investees earnings is included in other income, net in our condensed consolidated statements of income. The carrying value of these investments was $35.2 million and $38.4 million as of March 31, 2021 and December 31, 2020, respectively.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration