In order to manage certain foreign currency risks, the Company enters into foreign exchange forward contracts to mitigate risk associated with changes in spot exchange rates of mainly non-functional currency denominated assets or liabilities. The foreign exchange forward contracts are measured at fair value and reported as current assets or current liabilities in the condensed consolidated balance sheets. Any gains or losses on the foreign exchange forward contracts are recognized in earnings in the period incurred in the condensed consolidated statements of operations.

The Company has also entered into forward contracts to hedge forecasted foreign currency denominated sales from certain international subsidiaries and a portion of forecasted intercompany inventory sales denominated in Euro, Japanese Yen, and Chinese Renminbi for up to eighteen months. These contracts are designated as cash flow hedges to manage foreign currency transaction risk and are measured at fair value and reported as current assets or current liabilities in the condensed consolidated balance sheets. Any changes in the fair value of designated cash flow hedges are deferred in AOCE and are reclassified into earnings when the hedged item impacts earnings.

The Company may hedge the foreign currency risk associated with certain net investment positions in foreign subsidiaries by either borrowing directly in foreign currencies and designating all or a portion of the foreign currency debt as a hedge of the applicable net investment position or entering into foreign currency swaps that are designated as hedges of net investments.

The Company has designated certain Euro and Yen borrowings as a hedge of its investment in certain Euro-functional and Yen-functional currency subsidiaries in order to manage foreign currency translation risk. Borrowings designated as net investment hedges are marked-to-market using the current spot exchange rate as of the end of the period, with gains and losses included in the foreign currency translation component of AOCE until the sale or substantial liquidation of the underlying net investments. In addition, the Company manages the related foreign exchange risk of the Euro and Yen borrowings not designated as net investment hedges through certain Euro and Yen denominated financial assets and forward currency swaps.


			Notional Amount Designated as a Net Investment Hedge
(In millions)	Principal Amount		March 31, 2025		December 31, 2024
1.362% Euro Senior Notes due 2027	€	850.0	€	850.0	€	850.0
3.125% Euro Senior Notes due 2028	750.0		750.0		750.0
1.908% Euro Senior Notes due 2032	1,250.0		1,250.0		1,250.0

Euro Total	€	2,850.0	€	2,850.0	€	2,850.0

Yen
YEN Term Loan	¥	40,000.0	¥	40,000.0	¥	40,000.0
Yen Total	¥	40,000.0	¥	40,000.0	¥	40,000.0

During the third quarter of 2023, the Company executed fixed-rate cross-currency interest rate swaps with notional amounts totaling Japanese Yen 14.6 billion with settlement dates through 2026. During the second quarter of 2024, the Company executed fixed-rate cross-currency interest rate swaps with notional amounts totaling €500 million with settlement dates through 2026. The transactions hedge a portion of the Company’s net investment in certain Yen- and Euro-functional currency subsidiaries. All changes in the fair value of these derivative instruments, which are designated as net investment hedges, are marked-to-market using the current spot exchange rate as of the end of the period. The portion of these changes related to the excluded component will be amortized in interest expense over the life of the derivative while the remainder will be recorded in AOCE until the sale or substantial liquidation of the underlying net investments. The semiannual net interest payment received related to the fixed-rate component of the cross-currency interest rate swaps will be reflected in operating cash flows.

During the fourth quarter of 2023, the Company executed foreign currency forward contracts with notional amounts totaling €500 million. During the second quarter of 2024, the Company executed additional foreign currency forward contracts with notional amounts totaling €600 million. The transactions hedged a portion of the Company’s net investment in certain Euro functional currency subsidiaries. The contracts were designated as a net investment hedge and matured in July 2024.

In April 2025, the Company executed foreign currency forward contracts with notional amounts totaling Chinese Renminbi 1.42 billion (approximately $200 million) maturing in December 2026 and Chinese Renminbi 695 million (approximately $100 million) maturing in December 2027. The transactions hedge a portion of the Company’s net investment in certain Chinese Renminbi functional currency subsidiaries. The contracts were designated as net investment hedges.

The Company enters into interest rate swaps from time to time in order to manage interest rate risk associated with the Company’s fixed-rate and floating-rate debt. Interest rate swaps that meet specific accounting criteria are accounted for as fair value or cash flow hedges. All derivative instruments used to manage interest rate risk are measured at fair value and reported as current assets or current liabilities in the condensed consolidated balance sheets. For fair value hedges, the changes in the fair value of both the hedging instrument and the underlying debt obligations are included in interest expense. For cash flow hedges, the change in fair value of the hedging instrument is deferred through AOCE and is reclassified into earnings when the hedged item impacts earnings.

The Company’s interest rate swaps designated as cash flow hedges fix the interest rate on a portion of the Company’s variable-rate debt or hedge part of the Company’s interest rate exposure associated with the variability in the future cash flows attributable to changes in interest rates. Any changes in fair value are included in earnings or deferred through AOCE, depending on the nature and effectiveness of the offset. Any ineffectiveness in a cash flow hedging relationship is recognized immediately in earnings in the condensed consolidated statements of operations.

The Company regularly reviews the creditworthiness of its financial counterparties and does not expect to incur a significant loss from the failure of any counterparties to perform under any agreements. The Company is not subject to any obligations to post collateral under derivative instrument contracts. Certain derivative instrument contracts entered into by the Company are governed by master agreements, which contain credit-risk-related contingent features that would allow the counterparties to terminate the contracts early and request immediate payment should the Company trigger an event of default on other specified borrowings. The Company records all derivative instruments on a gross basis in the condensed consolidated balance sheets. Accordingly, there are no offsetting amounts that net assets against liabilities.


	Asset Derivatives					Liability Derivatives
(In millions)	Balance Sheet Location	March 31, 2025 Fair Value		December 31, 2024 Fair Value		Balance Sheet Location	March 31, 2025 Fair Value		December 31, 2024 Fair Value
Derivatives designated as hedges:
Cross-currency interest rate swaps	Prepaid expenses & other current assets	$	4.2	$	24.1	Other current liabilities	$	5.4	$	—
Foreign currency forward contracts	Prepaid expenses & other current assets	14.0		39.2		Other current liabilities	3.4		—
Total derivatives designated as hedges		18.2		63.3			8.8		—
Derivatives not designated as hedges:
Foreign currency forward contracts	Prepaid expenses & other current assets	134.5		198.3		Other current liabilities	173.4		125.8
Total derivatives not designated as hedges		134.5		198.3			173.4		125.8
Total derivatives		$	152.7	$	261.6		$	182.2	$	125.8


		Amount of Gains/(Losses) Recognized in Earnings				Amount of Gains/(Losses) Recognized in AOCE (Net of Tax) on Derivatives				Amount of Gains/(Losses) Reclassified from AOCE into Earnings
		Three months ended March 31,
(In millions)	Location of Gain/(Loss)	2025		2024		2025		2024		2025		2024



Derivative Financial Instruments in Cash Flow Hedging Relationships (1) :
Foreign currency forward contracts	Net sales (3)	$	—	$	—	$	(13.2)	$	24.8	$	9.9	$	6.6
Interest rate swaps	Interest expense (3)	—		—		(0.9)		(1.2)		(1.2)		(1.6)

Derivative Financial Instruments in Net Investment Hedging Relationships:
Cross-currency interest rate swaps	Interest expense (2)	3.4		1.2		(19.8)		4.9		—		—
Foreign currency forward contracts		—		—		—		10.7		—		—
Non-derivative Financial Instruments in Net Investment Hedging Relationships:
Foreign currency borrowings		—		—		(116.4)		117.0		—		—
Derivative Financial Instruments Not Designated as Hedging Instruments:
Foreign currency option and forward contracts	Other income, net (2)	(109.9)		(22.8)		—		—		—		—
Total		$	(106.5)	$	(21.6)	$	(150.3)	$	156.2	$	8.7	$	5.0

Fair value is based on the price that would be received from the sale of an identical asset or paid to transfer an identical liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a fair value hierarchy has been established that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below:


	March 31, 2025						December 31, 2024
(In millions)	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Recurring fair value measurements
Financial Assets
Cash equivalents:
Money market funds	$	409.5	$	—	$	—	$	387.7	$	—	$	—
Total cash equivalents	409.5		—		—		387.7		—		—
Equity securities:
Exchange traded funds	54.6		—		—		54.8		—		—
Marketable securities	0.9		—		—		0.7		—		—
Total equity securities	55.5		—		—		55.5		—		—
CCPS in Biocon Biologics	—		—		1,234.0		—		—		1,349.8
Available-for-sale fixed income investments:
Corporate bonds	—		13.0		—		—		12.9		—
U.S. Treasuries	—		18.5		—		—		17.2		—
Agency mortgage-backed securities	—		2.9		—		—		3.2		—
Asset backed securities	—		4.3		—		—		4.4		—
Other	—		0.3		—		—		0.3		—
Total available-for-sale fixed income investments	—		39.0		—		—		38.0		—
Foreign exchange derivative assets	—		148.5		—		—		237.5		—
Interest rate swap derivative assets	—		4.2		—		—		24.1		—
Total assets at recurring fair value measurement	$	465.0	$	191.7	$	1,234.0	$	443.2	$	299.6	$	1,349.8
Financial Liabilities
Foreign exchange derivative liabilities	$	—	$	176.8	$	—	$	—	$	125.8	$	—
Interest rate swap derivative liabilities	—		5.4		—		—		—		—
Contingent consideration	—		—		412.2		—		—		556.1
Total liabilities at recurring fair value measurement	$	—	$	182.2	$	412.2	$	—	$	125.8	$	556.1

For financial assets and liabilities that utilize Level 2 inputs, the Company utilizes both direct and indirect observable price quotes, including interest rate yield curves, foreign exchange forward prices and bank price quotes. Below is a summary of valuation techniques for the Company’s financial assets and liabilities:

•Equity securities, exchange traded funds — valued at the active quoted market prices from broker or dealer quotations or transparent pricing sources at the reporting date. Unrealized gains and losses attributable to changes in fair value are included in Other Expense (Income), Net in the condensed consolidated statements of operations.

•Equity securities, marketable securities — valued using quoted stock prices from public exchanges at the reporting date. Unrealized gains and losses attributable to changes in fair value are included in Other Expense (Income), Net in the condensed consolidated statements of operations.

•CCPS in Biocon Biologics — valued using a Monte Carlo simulation model using Level 3 inputs. The fair value of the CCPS is sensitive to changes in the forecasts of operating metrics, changes in volatility and discount rates, and share dilution. The Company elected the fair value option for the CCPS under ASC 825. The fair value is reassessed quarterly and any change in the fair value estimate is recorded in Other Expense (Income), Net in the condensed consolidated statements of operations for that period. During the three months ended March 31, 2025 and 2024, the Company recorded a loss (gain) of $115.8 million and $(46.9) million, respectively, as a result of remeasuring the CCPS in Biocon Biologics to fair value. The current year loss is primarily related to changes in

•Available-for-sale fixed income investments — valued at the quoted market prices from broker or dealer quotations or transparent pricing sources at the reporting date. Unrealized gains and losses attributable to changes in fair value, net of income taxes, are included in accumulated other comprehensive loss as a component of shareholders’ equity.

As of March 31, 2025 and December 31, 2024, the Company had a contingent consideration liability of $270.0 million and $378.0 million, respectively, related to the Idorsia Transaction. Refer to Note 4 Acquisitions and Other Transactions for additional information. During the three months ended March 31, 2025, the Company recorded a fair value adjustment gain related to the Idorsia Transaction contingent consideration liability, primarily as a result of the February 25, 2025 letter agreement entered into that amended certain terms of the original development agreement for selatogrel and cenerimod.

As of March 31, 2025 and December 31, 2024, the Company had a contingent consideration liability of $140.5 million and $176.3 million, respectively, related to the Respiratory Delivery Platform. The measurement of these contingent consideration liabilities is calculated using unobservable Level 3 inputs based on the Company’s own assumptions primarily related to the probability and timing of future events and payments which are discounted using a market rate of return. At March 31, 2025, discount rates ranging from 9.0% to 18.0%, and at December 31, 2024, discount rates ranging from 9.0% and 19.0% were utilized in the valuations. Significant changes in unobservable inputs could result in material changes to the contingent consideration liabilities.


(In millions)	Current Portion (1)		Long-Term Portion (2)		Total Contingent Consideration
Balance at December 31, 2024	$	59.5	$	496.6	$	556.1

Payments	(11.4)		—		(11.4)
Reclassifications	(3.4)		3.4		—
Accretion	—		1.2		1.2
Fair value gain (3)	—		(133.7)		(133.7)
Balance at March 31, 2025	$	44.7	$	367.5	$	412.2