Fair Value

12 Months Ended

Dec. 31, 2019

Financial assets and liabilities measured at fair value on a recurring basis were (in millions):


December 31, 2019	Level 1		Level 2		Level 3		Total
Assets:
Cash and cash equivalents	$	4,305.7					$	4,305.7
Short-term investments	3.6						3.6
Marketable equity securities	1.6						1.6
Foreign currency derivatives			$	0.6			0.6
Liabilities:
Foreign currency derivatives			$	0.4			$	0.4
Contingent purchase price obligations					$	107.7	107.7
December 31, 2018
Assets:
Cash and cash equivalents	$	3,652.4					$	3,652.4
Short-term investments	5.5						5.5
Marketable equity securities	1.5						1.5
Liabilities:
Interest rate derivatives			$	52.8			$	52.8
Foreign currency derivatives			0.1				0.1
Contingent purchase price obligations					$	146.5	146.5

Changes in contingent purchase price obligations were (in millions):


	December 31,
	2019		2018
January 1	$	146.5	$	215.6
Acquisitions	51.1		85.8
Revaluation and interest	(18.0)		(30.1)
Payments	(71.4)		(100.3)
Foreign currency translation	(0.5)		(24.5)
December 31	$	107.7	$	146.5

The carrying amount and fair value of our financial assets and liabilities were (in millions):


	December 31,
	2019						2018
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents	$	4,305.7	$	4,305.7	$	3,652.4	$	3,652.4
Short-term investments	3.6		3.6		5.5		5.5
Marketable equity securities	1.6		1.6		1.5		1.5
Non-marketable equity securities	9.0		9.0		11.8		11.8
Foreign currency derivatives	0.6		0.6		—		—
Liabilities:
Short-term debt	$	10.1	$	10.1	$	8.1	$	8.1
Interest rate derivatives	—		—		52.8		52.8
Foreign currency derivatives	0.4		0.4		0.1		0.1
Contingent purchase price obligations	107.7		107.7		146.5		146.5
Long-term debt, including current portion	5,134.3		5,316.4		4,883.7		4,821.3

The estimated fair value of the foreign currency and interest rate derivative instruments is determined using model-derived valuations, taking into consideration foreign currency rates for the foreign currency derivatives and readily observable inputs for LIBOR interest rates and yield curves to derive the present value of the future cash flows for the interest rate derivatives and counterparty credit risk for each. The estimated fair value of the contingent purchase price obligations is calculated in accordance with the terms of each acquisition agreement and is discounted. The fair value of long-term debt is based on quoted market prices.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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