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Fair Value Measurements (Tables)
 9 Months Ended
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