Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2020

Schedule of effects of risk-management instruments were recognized in other–net, (income) expense

The following effects of risk-management instruments were recognized in other–net, (income) expense:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Fair value hedges:
Effect from hedged fixed-rate debt	$	7.0	$	59.3	$	124.4	$	98.5
Effect from interest rate contracts	(7.0)		(59.3)		(124.4)		(98.5)
Cash flow hedges:
Effective portion of losses on interest rate contracts reclassified from accumulated other comprehensive loss	4.1		4.0		8.1		7.8
Cross-currency interest rate swaps	(11.5)		(16.1)		(24.4)		(44.5)
Net (gains) losses on foreign currency exchange contracts not designated as hedging instruments	(22.9)		(8.5)		(28.6)		40.4
Total	$	(30.3)	$	(20.6)	$	(44.9)	$	3.7

Schedule of effective portion of risk-management instruments that was recognized in other comprehensive income (loss), net investment hedges

The effective portion of risk-management instruments that was recognized in other comprehensive income (loss) is as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Net investment hedges:
Foreign currency-denominated notes	$	(72.4)	$	(30.4)	$	(5.0)	$	23.3
Cross-currency interest rate swaps	(60.8)		(4.3)		55.0		34.0

Cash flow hedges:
Forward-starting interest rate swaps	38.2		—		(331.6)		(11.7)
Cross-currency interest rate swaps	4.9		(7.4)		(64.9)		(37.5)

Schedule of effective portion of risk-management instruments that was recognized in other comprehensive income (loss), cash flow hedges

The effective portion of risk-management instruments that was recognized in other comprehensive income (loss) is as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Net investment hedges:
Foreign currency-denominated notes	$	(72.4)	$	(30.4)	$	(5.0)	$	23.3
Cross-currency interest rate swaps	(60.8)		(4.3)		55.0		34.0

Cash flow hedges:
Forward-starting interest rate swaps	38.2		—		(331.6)		(11.7)
Cross-currency interest rate swaps	4.9		(7.4)		(64.9)		(37.5)

Summary certain fair value information

The following tables summarize certain fair value information at June 30, 2020 and December 31, 2019 for assets and liabilities measured at fair value on a recurring basis, as well as the carrying amount and amortized cost of certain other investments:


					Fair Value Measurements Using
	Carrying Amount		Cost ⁽¹⁾		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
June 30, 2020
Cash equivalents	$	1,109.7	$	1,109.7	$	1,109.7	$	—	$	—	$	1,109.7

Short-term investments:
U.S. government and agency securities	$	11.9	$	11.8	$	11.9	$	—	$	—	$	11.9

Corporate debt securities	4.7		4.6		—		4.7		—		4.7
Asset-backed securities	3.6		3.6		—		3.6		—		3.6
Other securities	2.6		2.6		—		—		2.6		2.6

Short-term investments	$	22.8

Noncurrent investments:
U.S. government and agency securities	$	79.1	$	74.4	$	79.1	$	—	$	—	$	79.1

Corporate debt securities	131.7		123.2		—		131.7		—		131.7
Mortgage-backed securities	100.2		95.2		—		100.2		—		100.2
Asset-backed securities	26.4		25.7		—		26.4		—		26.4
Other securities	49.6		23.4		—		—		49.6		49.6
Marketable equity securities	1,292.4		241.2		1,292.4		—		—		1,292.4
Equity investments without readily determinable fair values ⁽²⁾	357.5
Equity method investments ⁽²⁾	369.5
Noncurrent investments	$	2,406.4

December 31, 2019
Cash equivalents	$	1,025.4	$	1,025.4	$	1,025.4	$	—	$	—	$	1,025.4

Short-term investments:
U.S. government and agency securities	$	7.2	$	7.2	$	7.2	$	—	$	—	$	7.2
Corporate debt securities	81.4		81.1		—		81.4		—		81.4
Asset-backed securities	2.6		2.6		—		2.6		—		2.6
Other securities	9.8		9.8		—		—		9.8		9.8

Short-term investments	$	101.0

Noncurrent investments:
U.S. government and agency securities	$	77.2	$	76.3	$	77.2	$	—	$	—	$	77.2
Corporate debt securities	271.1		267.8		—		271.1		—		271.1
Mortgage-backed securities	101.1		99.6		—		101.1		—		101.1
Asset-backed securities	30.0		29.6		—		30.0		—		30.0
Other securities	60.0		27.4		—		—		60.0		60.0
Marketable equity securities	718.6		254.4		718.6		—		—		718.6
Equity investments without readily determinable fair values ⁽²⁾	405.0
Equity method investments ⁽²⁾	299.4
Noncurrent investments	$	1,962.4

⁽¹⁾For available-for-sale debt securities, amounts disclosed represent the securities' amortized cost.

⁽²⁾Fair value disclosures are not applicable for equity method investments and investments accounted for under the measurement alternative for equity investments.

Summary certain fair value information, liabilities


			Fair Value Measurements Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
Short-term commercial paper borrowings
June 30, 2020	$	(1,258.8)	$	—	$	(1,255.7)	$	—	$	(1,255.7)
December 31, 2019	(1,494.2)		—		(1,491.6)		—		(1,491.6)
Long-term debt, including current portion
June 30, 2020	$	(15,069.4)	$	—	$	(17,011.0)	$	—	$	(17,011.0)
December 31, 2019	(13,823.0)		—		(15,150.0)		—		(15,150.0)

Fair value, by balance sheet grouping


			Fair Value Measurements Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value
June 30, 2020
Risk-management instruments:
Interest rate contracts designated as fair value hedges:

Other noncurrent assets	$	196.4	$	—	$	196.4	$	—	$	196.4




Interest rate contracts designated as cash flow hedges:
Other noncurrent assets	7.4		—		7.4		—		7.4
Other noncurrent liabilities	(289.3)		—		(289.3)		—		(289.3)
Cross-currency interest rate contracts designated as net investment hedges:
Other receivables	1.2		—		1.2		—		1.2
Other noncurrent assets	84.5		—		84.5		—		84.5
Other current liabilities	(7.1)		—		(7.1)		—		(7.1)
Other noncurrent liabilities	(7.2)		—		(7.2)		—		(7.2)
Cross-currency interest rate contracts designated as cash flow hedges:
Other noncurrent liabilities	(57.7)		—		(57.7)		—		(57.7)
Foreign exchange contracts not designated as hedging instruments:
Other receivables	3.7		—		3.7		—		3.7
Other current liabilities	(17.9)		—		(17.9)		—		(17.9)






December 31, 2019
Risk-management instruments:
Interest rate contracts designated as fair value hedges:

Other noncurrent assets	72.0		—		72.0		—		72.0


Interest rate contracts designated as cash flow hedges:
Other noncurrent assets	43.3		—		43.3		—		43.3
Cross-currency interest rate contracts designated as net investment hedges:

Other noncurrent assets	45.1		—		45.1		—		45.1
Other current liabilities	(21.4)		—		(21.4)		—		(21.4)
Other noncurrent liabilities	(5.7)		—		(5.7)		—		(5.7)
Cross-currency interest rate contracts designated as cash flow hedges:
Other noncurrent assets	3.0		—		3.0		—		3.0
Other noncurrent liabilities	(20.1)		—		(20.1)		—		(20.1)
Foreign exchange contracts not designated as hedging instruments:
Other receivables	18.4		—		18.4		—		18.4
Other current liabilities	(11.9)		—		(11.9)		—		(11.9)

Summary the contractual maturities of our investments in debt securities measured at fair value

The table below summarizes the contractual maturities of our investments in debt securities measured at fair value as of June 30, 2020:


	Maturities by Period
	Total		Less Than 1 Year		1-5 Years		6-10 Years		More Than 10 Years
Fair value of debt securities	$	357.6	$	20.2	$	115.5	$	90.5	$	131.4

Summary of the amount of unrealized gains and losses (pretax) recognized in our statement of operations for equity securities

A summary of the fair value of available-for-sale securities in an unrealized gain or loss position and the amount of unrealized gains and losses in accumulated other comprehensive loss follows:


	June 30, 2020		December 31, 2019
Unrealized gross gains	$	20.4	$	10.3
Unrealized gross losses	1.2		4.0
Fair value of securities in an unrealized gain position	339.2		429.5
Fair value of securities in an unrealized loss position	18.4		141.1

Activity related to our available-for-sale securities, was as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Proceeds from sales	$	194.8	$	273.6	$	232.8	$	319.4
Realized gross gains on sales	2.7		3.5		3.6		3.8
Realized gross losses on sales	7.2		1.5		8.0		2.0