Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair value, assets measured on recurring and nonrecurring basis



		Fair Value
	Fair Value Hierarchy	December 31, 2016		December 31, 2015		June 27, 2015
Measured at fair value on a recurring basis:
Assets:
Investment securities	Level 1	$	38.2	$	14.9	$	12.7

Foreign currency forward contracts	Level 2	3.8		4.8		12.4
Funds associated with Israeli severance liability	Level 2	15.9		17.2		17.3
		19.7		22.0		29.7

Tysabri^® royalty stream - at fair value (restated)	Level 3	2,350.0		5,310.0		5,420.0

Liabilities:
Interest rate swap agreements	Level 2	—		0.3		—
Foreign currency forward contracts	Level 2	5.0		3.9		4.6
Total level 2 liabilities		5.0		4.2		4.6

Contingent consideration	Level 3	$	69.9	$	17.9	$	—

Measured at fair value on a non-recurring basis:
Assets:
Goodwill⁽¹⁾	Level 3	$	1,148.4	$	—	$	—
Indefinite-lived intangible assets⁽²⁾	Level 3	0.3		1,031.8		—
Definite-lived intangible assets⁽³⁾	Level 3	758.0		—		—
Assets held for sale, net	Level 3	18.2		37.5		—
Total level 3 assets		$	1,924.9	$	1,069.3	$	—


⁽¹⁾	Goodwill with a carrying amount of $2.2 billion was written down to its implied fair value of $1.1 billion resulting in a total impairment charge of $1.1 billion.


⁽²⁾	Indefinite-lived intangible assets with a carrying amount of $0.7 million were written down to a fair value of $0.3 million resulting in a total impairment charge of $0.4 million.

⁽³⁾

Definite-lived intangible assets with a carrying amount of $2.3 billion were written down to a fair value of $758.0 million resulting in a total impairment charge of $1.5 billion. Included in this balance are indefinite-lived intangible assets with fair value of $364.5 million and $674.2 million that were reclassified to definite-lived assets at April 3, 2016 and October 2, 2016, respectively. Total impairment charges recorded on the indefinite-lived intangible assets were $849.1 million.

Reconciliation of Level 3 Assets



	Year Ended			Six Months Ended			Year Ended
	December 31, 2016			December 31, 2015			June 27, 2015
	December 31, 2016			Restated			Restated
Tysabri^®Royalty Stream - at fair value
Beginning balance	$	5,310.0		$	5,420.0		$	5,680.0
Royalties earned	(351.8		)	(167.3		)	(338.5		)
Change in fair value	(2,608.2		)	57.3			78.5
Ending balance	$	2,350.0		$	5,310.0		$	5,420.0

Schedule of fair value metrics used in valuations

Below is a summary of the various metrics used in our valuations:



	Year Ended
	December 31, 2016
	Omega - Lifestyle	Omega - XLS	Entocort^®- Branded Products	Entocort^®- AG Products	Herron Trade names and Trademarks
5-year average growth rate	2.5%	3.2%	(31.7)%	(30.4)%	4.6%
Long-term growth rates	2.0%	NA	(10.0)%	(4.7)%	2.5%
Discount rate	9.3%	9.5%	13.0%	10.5%	10.8%
Royalty rate	NA	4.0%	NA	NA	11.0%
Valuation method	MPEEM	Relief from Royalty	MPEEM	MPEEM	Relief from Royalty

Reconciliation of Level 3 Liabilities

The table below presents a reconciliation for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in millions). Net realized losses in the table were recorded in Administrative expense.



	Year Ended			Six Months Ended		Year Ended
	December 31, 2016			December 31, 2015		June 27, 2015
Contingent Consideration
Beginning balance	$	17.9		$	—	$	17.4
Net realized (gains) losses	(2.1		)	—		0.9
Purchases or additions	56.7			17.9		—
Foreign currency effect	0.1			—		—
Settlements	(2.7		)	—		(18.3		)
Ending balance	$	69.9		$	17.9	$	—