Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

As of June 30, 2017 and December 31, 2016, the following financial assets and liabilities are measured at fair value on a recurring basis using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3).

	Fair value
(In millions)	Total		Level 1		Level 2		Level 3
As of June 30, 2017
Financial assets:
Marketable equity securities	$	63.8	$	63.8	$	—	$	—
Marketable debt securities	15.9		3.5		12.4		—
Contingent consideration receivable	9.8		—		—		9.8
Derivative instruments	22.8		—		22.8		—
Total assets	$	112.3	$	67.3	$	35.2	$	9.8
Financial liabilities:
Joint venture net written option	$	25.0	$	—	$	—	$	25.0
Derivative instruments	9.5		—		9.5		—
Contingent consideration payable	1,190.3		—		—		1,190.3
Total liabilities	$	1,224.8	$	—	$	9.5	$	1,215.3

(In millions)	Total		Level 1		Level 2		Level 3
As of December 31, 2016
Financial assets:
Marketable equity securities	$	65.8	$	65.8	$	—	$	—
Marketable debt securities	15.5		3.6		11.9		—
Contingent consideration receivable	15.6		—		—		15.6
Derivative instruments	18.0		—		18.0		—
Total assets	$	114.9	$	69.4	$	29.9	$	15.6
Financial liabilities:
Derivative instruments	$	8.3	$	—	$	8.3	$	—
Contingent consideration payable	1,058.0		—		—		1,058.0
Total liabilities	$	1,066.3	$	—	$	8.3	$	1,058.0

Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table provides a roll forward of the fair values of the Company's contingent consideration receivable and payables which include Level 3 measurements:

Contingent consideration receivable
(In millions)	2017			2016
Balance as of January 1,	$	15.6		$	13.8
Change in fair value included in earnings	(2.3		)	2.1
Other	(3.5		)	1.6
Balance as of June 30,	$	9.8		$	17.5

Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

Contingent consideration payable
(In millions)	2017			2016
Balance as of January 1,	$	1,058.0		$	475.9
Acquisitions	(4.0		)	562.5
Change in fair value included in earnings	147.7			(45.0		)
Other	(11.4		)	0.4
Balance as of June 30,	$	1,190.3		$	993.8

Fair Value Inputs, Assets Quantitative Information Table

Quantitative information about the Company’s recurring Level 3 fair value measurements is as follows:

Financial assets:	Fair value as of the measurement date
As of June 30, 2017
(In millions, except %)	Fair value		Valuation technique	Significant unobservable inputs	Range
Contingent consideration receivable	$	9.8	Income approach (probability weighted discounted cash flow)	• Probability weightings applied to different sales scenarios	• 10 to 90%
				• Future forecast consideration receivable based on contractual terms with purchaser	• $0 to $20.7 million
				• Assumed market participant discount rate	• 7.4%

Fair Value Inputs, Liabilities Quantitative Information Table

Financial liabilities:	Fair value as of the measurement date
As of June 30, 2017
(In millions, except %)	Fair value		Valuation technique	Significant unobservable inputs	Range
Contingent consideration payable	$	1,190.3	Income approach (probability weighted discounted cash flow)	• Cumulative probability of milestones being achieved	• 5 to 90%
				• Assumed market participant discount rate	• 1.8 to 10.5%
				• Periods in which milestones are expected to be achieved	• 2017 to 2040
				• Forecast quarterly royalties payable on net sales of relevant products	• $0.1 to $6.5 million

Financial liabilities:	Fair value as of the measurement date
As of June 30, 2017
(In millions, except %)	Fair value		Valuation technique	Significant unobservable inputs	Range
Joint venture net written option	$	25.0	Income approach (probability weighted discounted cash flow)	• Cash flow scenario probability weighting	• 0 to 65%
				• Assumed market participant discount rate	• 16%

Schedule of Fair Value, Assets and Liabilities Not Measured at Fair Value on Recurring Basis

The carrying amounts and estimated fair values as of June 30, 2017 and December 31, 2016 of the Company’s financial assets and liabilities that are not measured at fair value on a recurring basis are as follows: 

	June 30, 2017				December 31, 2016
(In millions)	Carrying amount		Fair value		Carrying amount		Fair value
Financial liabilities:
SAIIDAC notes	$	12,044.7	$	11,973.6	$	12,039.2	$	11,633.8
Baxalta notes	5,066.9		5,295.8		5,063.6		5,066.5
Capital lease obligation	350.6		350.6		353.6		353.6