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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2018
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 above pricing categories (in millions):
 
 
Year Ended
 
 
December 31, 2018
 
December 31, 2017
 
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Measured at fair value on a recurring basis:
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities
 
$
9.4

 
$
—

 
$
—

 
$
17.0

 
$
—

 
$
—

Foreign currency forward contracts
 
—

 
3.8

 
—

 
—

 
6.3

 
—

Funds associated with Israeli severance liability
 
—

 
13.0

 
—

 
—

 
16.3

 
—

Royalty Pharma contingent milestone payments
 
—

 
—

 
323.2

 
—

 
—

 
134.5

Total assets
 
$
9.4

 
$
16.8

 
$
323.2

 
$
17.0

 
$
22.6

 
$
134.5

 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forward contracts
 
$
—

 
$
9.2

 
$
—

 
$
—

 
$
3.8

 
$
—

Contingent consideration
 
—

 
—

 
15.3

 
—

 
—

 
22.0

Total liabilities
 
$
—

 
$
9.2

 
$
15.3

 
$
—

 
$
3.8

 
$
22.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Measured at fair value on a non-recurring basis:
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill(1)
 
$
—

 
$
—

 
$
42.2

 
$
—

 
$
—

 
$
—

Indefinite-lived intangible assets(2)
 
—

 
—

 
10.5

 
—

 
—

 
—

Definite-lived intangible assets(3)
 
—

 
—

 
22.4

 
—

 
—

 
11.5

Total assets
 
$
—

 
$
—

 
$
75.1

 
$
—

 
$
—

 
$
11.5


(1)
As of December 31, 2018, goodwill with a carrying amount of $178.9 million was written down to a fair value of $42.2 million.
(2)
As of December 31, 2018, indefinite-lived intangible assets with a carrying amount of $46.9 million were written down to a fair value of $10.5 million.
(3)
As of December 31, 2018, definite-lived intangible assets with a carrying amount of $72.0 million were written down to a fair value of $22.4 million. As of December 31, 2017, definite-lived intangible assets with a carrying amount of $31.2 million were written down to a fair value of $11.5 million.

Fair value assets, unobservable inputs reconciliation The table below summarizes the change in fair value of the Tysabri® Financial Asset (in millions):
 
Year Ended
 
December 31,
2017
 
December 31,
2016
Tysabri® financial asset
 
 
 
Beginning balance
$
2,350.0

 
$
5,310.0

Royalties earned
—

 
(351.8
)
Change in fair value
—

 
(2,608.2
)
Divestitures
(2,350.0
)
 
—

Ending balance
$
—

 
$
2,350.0

The table below summarizes the change in fair value of the Royalty Pharma contingent milestone payments (in millions):
 
Year Ended
 
December 31,
2018
 
December 31,
2017
Royalty Pharma Contingent Milestone Payments
 
 
 
Beginning balance
$
134.5

 
$
—

Additions
—

 
184.5

Payments
—

 
(8.0
)
Change in fair value
188.7

 
(42.0
)
Ending balance
$
323.2

 
$
134.5
Liabilities unobservable inputs reconciliation Net realized losses were recorded in Other (income) expense, net on the Consolidated Statements of Operations.
 
Year Ended
 
December 31,
2018
 
December 31,
2017
 
December 31,
2016
Contingent Consideration
 
 
 
 
 
Beginning balance
$
22.0

 
$
69.9

 
$
17.9

Net realized (gains) losses
(1.5
)
 
(19.5
)
 
(2.1
)
Purchases or additions
—

 
—

 
56.7

Divestiture
—

 
(12.5
)
 
—

Currency translation adjustments
(0.2
)
 
1.5

 
0.1

Settlements
(5.0
)
 
(17.4
)
 
(2.7
)
Ending balance
$
15.3

 
$
22.0

 
$
69.9
Fair value inputs assets When assessing the Omega, Entocort®, and Herron definite-lived assets for impairment for the year ended December 31, 2016 we utilized the following valuation methods, inputs, and assumptions:
 
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
The table below represents the volatility and rate of return:
 
Year Ended
 
December 31, 2018
 
December 31,
2017
Volatility
30.0
%
 
30.0
%
Rate of return
8.05
%
 
8.07
%
Long-term debt fair value Our fixed rate long-term debt consisted of the following (in millions):
 
Year Ended
 
December 31,
2018
 
December 31,
2017
 
Level 1

 
Level 2

 
Level 1
 
Level 2
Public bonds
 
 
 
 
 
 
 
Carrying value (excluding discount)
$
2,600.0

 
 
 
$
2,600.0

 
 
Fair value
$
2,316.6

 
 
 
$
2,650.8

 
 
 
 
 
 
 
 
 
 
Retail bond and private placement note
 
 
 
 
 
 
 
Carrying value (excluding premium)
 
 
$
292.5

 
 
 
$
306.0

Fair value
 
 
$
307.9

 
 
 
$
342.1