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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 26, 2020
Fair Value Disclosures [Abstract] |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | The table below summarizes the valuation of our financial instruments carried at fair value by the applicable pricing categories (in millions):
|  | September 26, 2020 |  | December 31, 2019
|  | Level 1 |  | Level 2 |  | Level 3 |  | Level 1 |  | Level 2 |  | Level 3
Measured at fair value on a recurring basis: |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Investment securities |  | $ | 3.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 6.6 |  |  | $ | — |  |  | $ | — |
Foreign currency forward contracts |  | — |  |  | 8.7 |  |  | — |  |  | — |  |  | 4.3 |  |  | — |
Cross-currency swap |  | — |  |  | 7.7 |  |  | — |  |  | — |  |  | 26.3 |  |  | — |
Funds associated with Israeli severance liability |  | — |  |  | 14.2 |  |  | — |  |  | — |  |  | 14.6 |  |  | — |
Royalty Pharma contingent milestone |  | — |  |  | — |  |  | 121.2 |  |  | — |  |  | — |  |  | 95.3 |
Total assets |  | $ | 3.3 |  |  | $ | 30.6 |  |  | $ | 121.2 |  |  | $ | 6.6 |  |  | $ | 45.2 |  |  | $ | 95.3 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | — |  |  | $ | 8.8 |  |  | $ | — |  |  | $ | — |  |  | $ | 8.4 |  |  | $ | — |
Contingent consideration payments |  | — |  |  | — |  |  | 12.8 |  |  | — |  |  | — |  |  | 11.9 |
Total liabilities |  | $ | — |  |  | $ | 8.8 |  |  | $ | 12.8 |  |  | $ | — |  |  | $ | 8.4 |  |  | $ | 11.9 |
Measured at fair value on a non-recurring basis: |  |  |  |  |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Goodwill(1) |  | $ | — |  |  | $ | — |  |  | $ | 811.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,013.1 |
Definite-lived intangible assets(2) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23.3 |
Total assets |  | $ | — |  |  | $ | — |  |  | $ | 811.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,036.4 |
(1) | During the three months ended September 26, 2020, goodwill with a carrying amount of $1,013.5 million was written down to a fair value of $811.1 million. During the year ended December 31, 2019, goodwill with a carrying amount of $1,122.3 million was written down to a fair value of $1,013.1 million.
(2) During the year ended December 31, 2019, definite-lived intangible assets with a carrying amount of $55.3 million were written down to a fair value of $23.3 million.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The table below summarizes the change in fair value of the Royalty Pharma contingent milestone (in millions):
| Three Months Ended |  | Nine Months Ended
| September 26, 2020 |  | September 28, 2019 |  | September 26, 2020 |  | September 28, 2019
Beginning balance | $ | 99.0 |  |  | $ | 89.1 |  |  | $ | 95.3 |  |  | $ | 323.2 |
Payments received | — |  |  | — |  |  | — |  |  | (250.0 | )
Change in fair value | 22.2 |  |  | 2.6 |  |  | 25.9 |  |  | 18.5 |
Ending balance | $ | 121.2 |  |  | $ | 91.7 |  |  | $ | 121.2 |  |  | $ | 91.7 |
Schedule of Fair Value Assumptions | The table below represents the volatility and rate of return:
| Three Months Ended
| September 26, 2020 |  | September 28, 2019
Volatility | 30.0 | % |  | 30.0 | %
Rate of return | 6.84 | % |  | 7.99 | %
Reconciliation of Level 3 Liabilities | The table below summarizes the change in fair value of contingent consideration payments (in millions):
| Three Months Ended |  | Nine Months Ended
| September 26, 2020 |  | September 28, 2019 |  | September 26, 2020 |  | September 28, 2019
Beginning balance | $ | 12.1 |  |  | $ | 12.1 |  |  | $ | 11.9 |  |  | $ | 15.3 |
Changes in value | 0.7 |  |  | 1.1 |  |  | 0.9 |  |  | (0.9 | )
Settlements and other adjustments | — |  |  | — |  |  | — |  |  | (1.2 | )
Ending balance | $ | 12.8 |  |  | $ | 13.2 |  |  | $ | 12.8 |  |  | $ | 13.2 |
Fair Value of Contingent Consideration | The fair value of our contingent consideration sales-based milestones as of September 26, 2020, was calculated using the following significant unobservable inputs:
|  |  |  |  | Nine Months Ended
|  |  |  |  | September 26, 2020
| Valuation Technique |  | Unobservable Input |  | Range (Weighted Average)(1)
Contingent consideration payments: sales-based milestones | Discounted cash flow |  | Projected royalties |  | $ | 36.8 |
|  |  | Projected year of payment of sales-based milestones |  | 2021 - 2036 (2027) |
|  |  | Discount rate |  | 26.0 | %
(1) Unobservable inputs were weighted based on the relative estimated milestone payments.
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Our fixed rate long-term debt consisted of the following (in millions):
| September 26, 2020 |  | December 31, 2019
| Level 1 |  | Level 2 |  | Level 1 |  | Level 2
Public Bonds |  |  |  |  |  |  |
Carrying Value (excluding discount) | $ | 2,760.0 |  |  | $ | — |  |  | $ | 2,600.0 |  |  | $ | — |
Fair value | $ | 2,969.9 |  |  | $ | — |  |  | $ | 2,618.4 |  |  | $ | — |
Private placement note |  |  |  |  |  |  |
Carrying value (excluding premium) | $ | — |  |  | $ | 157.1 |  |  | $ | — |  |  | $ | 151.4 |
Fair value | $ | — |  |  | $ | 168.0 |  |  | $ | — |  |  | $ | 168.4 |

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