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2. Fair Value Measurements
 3 Months Ended
Sep. 30, 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 September 30, 2021 are classified in the hierarchy as follows (in millions):
Level 1Level 2Level 3Total
Financial Assets Carried at Fair Value:
Cash Equivalents:
Commercial Paper$— $33.3 $— $33.3 
Asset-Backed— 0.4 — $0.4 
U.S. Government Sponsored— 17.0 — $17.0 
Time Deposits19.5 10.0 — 29.5 
Money Market Funds129.0 — — 129.0 
Total Cash Equivalents (a)148.5 60.7 — 209.2 
Restricted Investments (b)6.8 — — 6.8 
Equity Securities (c)16,259.1 — — 16,259.1 
Available-for-Sale Investments:
Corporate Debt Securities— 231.5 — 231.5 
U.S. Government Sponsored Agencies— 66.1 — 66.1 
Foreign Government Obligations— 1.9 — 1.9 
Other Foreign Obligations— 5.6 — 5.6 
Certificates of Deposit— 15.7 — 15.7 
Municipal Obligations— 19.4 — 19.4 
Asset-Backed Securities— 68.9 — 68.9 
Total Available-for-Sale Investments (d)— 409.1 — 409.1 
Forward Foreign Exchange Contracts (e)— 0.6 — 0.6 
Total Financial Assets Carried at Fair Value$16,414.4 $470.4 $— $16,884.8 
Financial Liabilities Carried at Fair Value:   
Forward Foreign Exchange Contracts (f)$— $0.8 $— $0.8 
Contingent Consideration (g)— — — — 
Total Financial Liabilities Carried at Fair Value$— $0.8 $— $0.8 
Financial assets and liabilities carried at fair value and measured on a recurring basis as of December 31, 2020 are classified in the hierarchy as follows (in millions):
Level 1Level 2Level 3Total
Financial assets carried at fair value:
Cash equivalents:
Commercial paper$— $41.7 $— $41.7 
Time deposits17.6 10.0 — 27.6 
Asset-backed securities— 0.9 — 0.9 
U.S. government sponsored agencies— 2.5— 2.5 
Money market funds60.1 — — 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):
September 30, 2021December 31, 2020
Restricted investments$5.6 $5.6 
Other investments1.2 1.1 
    Total$6.8 $6.7 

(c) Equity securities are included in the following accounts in the condensed consolidated balance sheets (in millions):
September 30, 2021December 31, 2020
Short-term investments$68.2 $61.4 
Other investments16,190.9 9,521.0 
        Total$16,259.1 $9,582.4 
The changes in fair market value on our equity securities for the three and nine months ended September 30, 2021 were $4,868.7 million and $7,078.8 million of gains, respectively, which were primarily due to our investment in Sartorius AG and is recorded in Change in fair market value of equity securities in our condensed consolidated statements of income.

As of September 30, 2021, we own 12,987,900 ordinary voting shares and 9,588,908 preference 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 September 30, 2021.

(d) Available-for-sale investments are included in the following accounts in the condensed consolidated balance sheets (in millions):
 September 30, 2021December 31, 2020
Short-term investments$409.1 $267.5 
Other investments— 0.1 
Total$409.1 $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 liabilities in a liability position are included in the other long-term liabilities in the condensed consolidated balance sheets.

To estimate the fair value of Level 2 debt securities as of September 30, 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):
 September 30, 2021
Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Allowances for Credit Losses
Fair
Value
Short-term investments:    
Corporate debt securities$230.0 $1.6 $(0.1)$— $231.5 
Municipal obligations19.3 0.1 — — 19.4 
Asset-backed securities$68.8 $0.1 $— $— $68.9 
U.S. government sponsored agencies65.1 1 — — 66.1 
Foreign government obligations$1.9 $— $— $— $1.9 
Certificates of Deposit15.7 — — — 15.7 
Other foreign obligations5.6 — — — 5.6 
 406.4 2.8 (0.1)— 409.1 
Long-term Investments:— — — — — 
 
Total$406.4 $2.8 $(0.1)$— $409.1 

The following is a summary of the amortized cost and estimated fair value of our debt securities at September 30, 2021 by contractual maturity date (in millions):
Amortized
Cost		Estimated Fair
Value
Mature in less than one year$242.2 $242.6 
Mature in one to five years106.6 107.9 
Mature in more than five years57.6 58.6 
Total$406.4 $409.1 

Available-for-sale investments consist of the following (in millions):
 December 31, 2020
Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Allowances for Credit LossesEstimated
Fair
Value
Short-term investments:    
Corporate debt securities$130.5 $2.7 $— — $133.2 
Municipal obligations15.0 0.2 — — 15.2 
Asset-backed securities35.8 0.3 — — 36.1 
U.S. government sponsored agencies74.7 2.2 — — 76.9 
Foreign government obligations4.0 — — — 4.0 
  Other foreign obligations2.1 — — — 2.1 
 262.1 5.4 — — 267.5 
Long-term investments:    
Asset-backed securities0.1 — — — 0.1 
 0.1 — — — 0.1 
Total$262.2 $5.4 $— $— $267.6 
There were no significant unrealized losses as of September 30, 2021 and 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 the 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 September 30, 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 September 30, 2021.
Included in other current assets are $1.9 million and $1.4 million of interest receivable as of September 30, 2021 and December 31, 2020, respectively, primarily associated with securities in our available-for-sale investments portfolio. The 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 nine months ended September 30, 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 September 30, 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):
 September 30,
 2021
Contracts maturing in October through December 2021 to sell foreign currency: 
Notional value$113.5 
Unrealized Gain/(Loss)$0.3 
Contracts maturing in October through December 2021 to purchase foreign currency: 
Notional value$145.9 
Unrealized Gain/(Loss)$(0.4)
Included in other investments in the condensed consolidated balance sheets are investments without readily determinable fair value measured at cost and is adjusted for observable price changes or impairments. The carrying value of these investments was $6.5 million and $0.5 million as of September 30, 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 $31.9 million and $38.4 million as of September 30, 2021 and December 31, 2020, respectively.