Fair Value Measurements (Tables)

6 Months Ended

Jul. 01, 2017

Fair Value Disclosures [Abstract]

Fair value, assets measured on recurring and nonrecurring basis

The table below presents a reconciliation for Royalty Pharma contingent milestone payments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in millions). Realized losses in the table were recorded in the line item "Change in financial assets" on the Condensed Consolidated Statements of Operations.

	Three Months Ended			Six Months Ended
	July 1, 2017			July 1, 2017
Royalty Pharma Contingent Milestone Payments
Beginning balance	$	184.5		$	—
Purchases or additions	—			184.5
Foreign currency effect	0.5			0.5
Realized losses	(39.2		)	(39.2		)
Ending balance	$	145.8		$	145.8

The following table summarizes the valuation of our financial instruments carried at fair value and measured at fair value on a recurring and non-recurring basis by the above pricing categories (in millions):

		Fair Value
	Fair Value Hierarchy	July 1, 2017		December 31, 2016
Measured at fair value on a recurring basis:
Assets:
Investment securities	Level 1	$	13.6	$	38.2
Foreign currency forward contracts	Level 2	$	16.6	$	3.8
Funds associated with Israeli severance liability	Level 2	18.1		15.9
Total level 2 assets		$	34.7	$	19.7
Royalty Pharma contingent milestone payments	Level 3	$	145.8	$	—
Tysabri® royalty stream	Level 3	—		2,350.0
Total level 3 assets		$	145.8	$	2,350.0
Liabilities:
Foreign currency forward contracts	Level 2	$	4.0	$	5.0
Contingent consideration	Level 3	$	49.7	$	69.9
Measured at fair value on a non-recurring basis:
Assets:
Goodwill(1)	Level 3	$	—	$	1,148.4
Indefinite-lived intangible assets(2)	Level 3	13.8		0.3
Definite-lived intangible assets(3)	Level 3	11.5		758.0
Assets held for sale, net	Level 3	11.8		18.2
Total level 3 assets		$	37.1	$	1,924.9

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 (gains) losses in the table were recorded in Other expense, net.

	Three Months Ended						Six Months Ended
	July 1, 2017			July 2, 2016			July 1, 2017			July 2, 2016
Contingent Consideration
Beginning balance	$	52.0		$	48.0		$	69.9		$	17.9
Net realized (gains) losses	(1.3		)	(3.9		)	(15.6		)	(3.8		)
Purchases or additions	—			1.0			—			30.5
Foreign currency effect	1.4			(0.2		)	1.3			0.3
Settlements	(2.4		)	—			(5.9		)	—
Ending balance	$	49.7		$	44.9		$	49.7		$	44.9

Schedule of fair value metrics used in valuations

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

	Three Months Ended
	July 1, 2017
	Lumara
5-year average growth rate	(4.1)%
Discount rate	13.5%
Valuation method	MPEEM

	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