Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2025

Summary of assets and liabilities recorded at fair value

The tables below present information about our assets and liabilities that are regularly measured and carried at fair value and indicate the level within the fair value hierarchy of the valuation techniques we utilized to determine such fair value:


	Fair Value Measurements on a Recurring Basis
	As of June 30, 2025
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	2,234.9	$	—	$	2,234.9	$	—




Marketable equity securities	157.0		157.0		—		—
Other current assets:

Derivative contracts	31.7		—		31.7		—
Other non-current assets:
Convertible note(1)	30.0		—		—		30.0
Plan assets for deferred compensation	50.1		—		50.1		—

Total	$	2,503.7	$	157.0	$	2,316.7	$	30.0
Liabilities:
Other current liabilities:
Derivative contracts	$	123.7	$	—	$	123.7	$	—
Contingent consideration obligations	297.2		—		—		297.2
Other non-current liabilities:
Derivative contracts	26.8		—		26.8		—
Contingent consideration obligations	237.7		—		—		237.7
Total	$	685.4	$	—	$	150.5	$	534.9

(1) As part of our strategic research arrangement with City Therapeutics we invested in a convertible note, for which we elected the fair value option. For additional information on the arrangement with City Therapeutics, please read Note 19, Collaborative and Other Relationships, to these condensed consolidated financial statements.


	Fair Value Measurements on a Recurring Basis
	As of December 31, 2024
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	1,664.9	$	—	$	1,664.9	$	—




Marketable equity securities	179.7		179.7		—		—
Other current assets:
Derivative contracts	62.5		—		62.5		—
Other non-current assets:

Plan assets for deferred compensation	42.8		—		42.8		—
Total	$	1,949.9	$	179.7	$	1,770.2	$	—
Liabilities:
Other current liabilities:
Derivative contracts	$	11.7	$	—	$	11.7	$	—
Contingent consideration obligations	291.2		—		—		291.2
Other non-current liabilities:

Contingent consideration obligations	221.6		—		—		221.6
Total	$	524.5	$	—	$	11.7	$	512.8

Fair Value Measurement Inputs and Valuation Techniques

The following table presents quantitative information, as of the dates indicated, about the valuation techniques and significant unobservable inputs used in the valuation of our Level 3 financial assets and liabilities measured at fair value on a recurring basis:

Quantitative Information about Level 3 Fair Value Measurements

As of June 30, 2025

(In millions)

Fair Value

Valuation Technique

Significant
Unobservable Input(s)

Range

Weighted Average

Liabilities:

Contingent consideration obligations

534.9

Discounted cash flow

Discount rate

5.6% - 5.7%

5.7

Expected timing of achievement of development milestones

2025 - 2030

—

Quantitative Information about Level 3 Fair Value Measurements

As of December 31, 2024

(In millions)

Fair Value

Valuation Technique

Significant
Unobservable Input(s)

Range

Weighted Average

Liabilities:

Contingent consideration obligations

512.8

Discounted cash flow

Discount rate

6.2% - 6.3%

6.2

Expected timing of achievement of development milestones

2025 - 2030

—

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table provides a roll forward of the fair value of our contingent consideration obligations, which were classified as Level 3 measurements:



(In millions)	For the Three Months Ended June 30, 2025		For the Six Months Ended June 30, 2025
Fair value, beginning of period	$	522.4	$	512.8

Changes in fair value	13.2		22.8
Payments	(0.7)		(0.7)
Fair value, end of period	$	534.9	$	534.9

Summary of fair and carrying value of debt instruments

The fair and carrying values of our debt instruments, which are Level 2 liabilities, are summarized as follows:


	As of June 30, 2025				As of December 31, 2024
(In millions)	Fair Value		Carrying Value		Fair Value		Carrying Value
Current portion:


4.050% Senior Notes due September 15, 2025(1)	$	—	$	—	$	1,741.0	$	1,748.6
Current portion of notes payable	—		—		1,741.0		1,748.6

Non-current portion:


2.250% Senior Notes due May 1, 2030	1,351.1		1,495.2		1,295.6		1,494.7
5.050% Senior Notes due January 15, 2031(1)	407.1		397.8		—		—
5.750% Senior Notes due May 15, 2035(1)	668.7		645.5		—		—
5.200% Senior Notes due September 15, 2045	1,007.1		1,101.3		1,008.0		1,101.1
3.150% Senior Notes due May 1, 2050	946.0		1,475.3		943.7		1,475.0
3.250% Senior Notes due February 15, 2051	450.4		478.3		448.9		476.4
6.450% Senior Notes due May 15, 2055(1)	721.7		690.3		—		—
Non-current portion of notes payable	5,552.1		6,283.7		3,696.2		4,547.2
Total notes payable	$	5,552.1	$	6,283.7	$	5,437.2	$	6,295.8

(1) In May 2025 we issued our 2025 Senior Notes for an aggregate principal amount of $1.75 billion. In June 2025 we used the net proceeds from the sale of our 2025 Senior Notes to redeem in full our 4.050% Senior Notes due September 15, 2025, prior to maturity. For additional information, please read Note 13, Indebtedness, to these condensed consolidated financial statements.