XML 33 R31.htm IDEA: XBRL DOCUMENT v3.19.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 28, 2019
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 28, 2019
 
December 31, 2018
 
 
Level 1
 
Level 2
 
Level 3
 
Level 1
 
Level 2
 
Level 3
Measured at fair value on a recurring basis:
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Investment securities
 
$
2.6

 
$
—

 
$
—

 
$
9.4

 
$
—

 
$
—

Foreign currency forward contracts
 
—

 
8.4

 
—

 
—

 
3.8

 
—

Cross-currency swap
 
—

 
30.1

 
—

 
—

 
—

 
—

Funds associated with Israeli severance liability
 
—

 
14.3

 
—

 
—

 
13.0

 
—

Royalty Pharma contingent milestone
 
—

 
—

 
91.7

 
—

 
—

 
323.2

Total assets
 
$
2.6

 
$
52.8

 
$
91.7

 
$
9.4

 
$
16.8

 
$
323.2

 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forward contracts
 
$
—

 
$
4.9

 
$
—

 
$
—

 
$
9.2

 
$
—

Contingent consideration payments
 
—

 
—

 
13.2

 
—

 
—

 
15.3

Total liabilities
 
$
—

 
$
4.9

 
$
13.2

 
$
—

 
$
9.2

 
$
15.3

 
 
 
 
 
 
 
 
 
 
 
 
 
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)
 
—

 
—

 
11.6

 
—

 
—

 
22.4

Total assets
 
$
—

 
$
—

 
$
11.6

 
$
—

 
$
—

 
$
75.1



(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 carrying amounts of $46.9 million were written down to a fair value of $10.5 million.
(3)
As of September 28, 2019, a definite-lived intangible asset with a carrying amount of $22.4 million was written down to a fair value of $11.6 million. As of December 31, 2018, definite-lived intangible assets with carrying amounts of $72.0 million were written down to a fair value of $22.4 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 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Beginning balance
$
89.1

 
$
125.5

 
$
323.2

 
$
134.5

Payments received
—

 
—

 
(250.0
)
 
—

Change in fair value
2.6

 
74.9

 
18.5

 
65.9

Ending balance
$
91.7

 
$
200.4

 
$
91.7

 
$
200.4
Schedule of Fair Value Assumptions The table below represents the volatility and rate of return:
 
Three Months Ended
 
September 28,
2019
 
September 29,
2018
Volatility
30.0
%
 
30.0
%
Rate of return
7.99
%
 
8.07
%
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 28,
2019
 
September 29,
2018
 
September 28,
2019
 
September 29,
2018
Beginning balance
$
12.1

 
$
16.2

 
$
15.3

 
$
22.0

Changes in value
1.1

 
1.1

 
(0.9
)
 
(0.3
)
Currency translation adjustments
—

 
(0.3
)
 
—

 
(0.3
)
Settlements and other adjustments
—

 
(0.6
)
 
(1.2
)
 
(5.0
)
Ending balance
$
13.2

 
$
16.4

 
$
13.2

 
$
16.4
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments
Our fixed rate long-term debt consisted of the following (in millions):
 
September 28,
2019
 
December 31,
2018
 
Level 1
 
Level 2
 
Level 1
 
Level 2
Public Bonds
 
 
 
 
 
 
 
Carrying Value (excluding discount)
$
2,600.0

 
 
 
$
2,600.0

 
 
Fair value
$
2,604.1

 
 
 
$
2,316.6

 
 
 
 
 
 
 
 
 
 
Retail bond and private placement note
 
 
 
 
 
 
 
Carrying value (excluding premium)
 
 
$
147.7

 
 
 
$
292.5

Fair value
 
 
$
163.4

 
 
 
$
307.9