Investments

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities, Equity Method Investments and Joint Ventures [Abstract]

Investments

INVESTMENTS

    The following table summarizes the measurement category, balance sheet location, and balances of our equity securities (in millions):

		Year Ended
Measurement Category	Balance Sheet Location	December 31, 2020		December 31, 2019
Fair value method	Prepaid expenses and other current assets	$	2.5	$	6.6
Fair value method(1)	Other non-current assets	$	1.9	$	2.3
Equity method	Other non-current assets	$	69.8	$	17.8

(1) Measured at fair value using the Net Asset Value practical expedient.

    The following table summarizes the expense (income) recognized in earnings of our equity securities (in millions):

		Year Ended
Measurement Category	Income Statement Location	December 31, 2020		December 31, 2019		December 31, 2018
Fair value method	Other (income) expense, net	$	3.0	$	4.9	$	9.5
Equity method	Other (income) expense, net	$	(3.0)	$	(2.7)	$	(2.7)

On June 17, 2020, we announced our entrance into the cannabidiol (“CBD”) market through a strategic investment in and long-term supply agreement with Kazmira LLC ("Kazmira"), a leading supplier of hemp-based CBD products free of tetrahydrocannabinol (“zero-THC”) based in Watkins, Colorado. In addition to the supply agreement, we acquired an approximate 20% equity stake in Kazmira for $50.0 million with $15.0 million paid at close of the transaction and the balance due within 18 months thereafter, reported in our CSCA segment (refer to Note 11). Our minority equity investment initiates the first phase of the partnership in which we will collaborate to scale-up Kazmira’s facilities and laboratories, in accordance with current Good Manufacturing Practices, to produce zero-THC CBD from industrial hemp that meets our standards for reliability and consistency. In the second phase of the partnership, we will work to launch zero-THC hemp-based CBD products in a number of global markets, while leveraging our supply agreement with Kazmira, which is exclusive for the U.S. store brand market. We will report our equity method earnings from Kazmira in our Consolidated Financial Statements on a quarterly lag.

On January 1, 2018, as a result of the adoption of ASU 2016-01 Financial Instruments - Recognition and Measurement of Financial Assets and Liabilities ("ASU 2016-01"), we made a $1.0 million cumulative-effect adjustment to Retained earnings (accumulated deficit) net of tax that consisted of net unrealized losses on previously classified as available for sale securities from OCI.