Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

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, 2026
(In millions)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	569.4	$	—	$	569.4	$	—




Marketable equity securities	184.0		184.0		—		—
Other current assets:

Derivative contracts	21.6		—		21.6		—
Other non-current assets:
Convertible notes(1)	35.0		—		—		35.0
Plan assets for deferred compensation	64.2		—		64.2		—
Derivative contracts	7.7		—		7.7		—
Total	$	881.9	$	184.0	$	662.9	$	35.0
Liabilities:
Other current liabilities:
Derivative contracts	$	26.6	$	—	$	26.6	$	—

Other non-current liabilities:

Contingent consideration obligations	273.5		—		—		273.5
Total	$	300.1	$	—	$	26.6	$	273.5

(1) Convertible notes includes a $30.0 million convertible note we invested in City Therapeutics as part of our strategic research arrangement with the company during 2025, as well as a $5.0 million convertible note we invested into Neela Therapeutics, Inc. during 2025. We elected the fair value option for both convertible notes. For additional information on the arrangement with City Therapeutics, please read Note 19, Collaborative and Other Relationships, to our consolidated financial statements included in our 2025 Form 10-K.


	Fair Value Measurements on a Recurring Basis
	As of December 31, 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	$	2,233.2	$	—	$	2,233.2	$	—
Marketable debt securities:
Corporate debt securities	537.6		—		537.6		—
Government securities	648.8		—		648.8		—
Mortgage and other asset backed securities	52.7		—		52.7		—
Marketable equity securities	118.1		118.1		—		—
Other current assets:
Derivative contracts	10.0		—		10.0		—
Other non-current assets:
Convertible notes(1)	35.0		—		—		35.0
Plan assets for deferred compensation	52.2		—		52.2		—
Derivative contracts	0.4		—		0.4		—
Total	$	3,688.0	$	118.1	$	3,534.9	$	35.0
Liabilities:
Other current liabilities:
Derivative contracts	$	56.7	$	—	$	56.7	$	—

Other non-current liabilities:
Derivative contracts	2.2		—		2.2		—
Contingent consideration obligations	246.4		—		—		246.4
Total	$	305.3	$	—	$	58.9	$	246.4

Fair Value Measurement Inputs and Valuation Techniques

The following tables present 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, 2026

(In millions)

Fair Value

Valuation Technique

Significant
Unobservable Input(s)

Range

Weighted Average

Liabilities:

Contingent consideration obligations

269.4

Discounted cash flow

Discount rate

5.9%

Expected timing of achievement of development milestones

2028

—

Quantitative Information about Level 3 Fair Value Measurements

As of December 31, 2025

(In millions)

Fair Value

Valuation Technique

Significant
Unobservable Input(s)

Range

Weighted Average

Liabilities:

Contingent consideration obligations

246.4

Discounted cash flow

Discount rate

5.3% - 5.4%

5.4%

Expected timing of achievement of development milestones

2028 - 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:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(In millions)	2026		2025		2026		2025
Fair value, beginning of period	$	266.9	$	522.4	$	246.4	$	512.8
Contingent consideration related to the acquisition of Apellis	4.1		—		4.1		—
Changes in fair value	2.5		13.2		23.0		22.8
Payments	—		(0.7)		—		(0.7)
Fair value, end of period	$	273.5	$	534.9	$	273.5	$	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, 2026				As of December 31, 2025
(In millions)	Fair Value		Carrying Value		Fair Value		Carrying Value
Current portion:
2026 Term Loan 364-day tranche(1)	$	799.9	$	800.0	$	—	$	—
Current portion of notes payable	799.9		800.0		—		—

Non-current portion:
2026 Term Loan two-year tranche(1)	999.9		1,000.0		—		—
2.250% Senior Notes due May 1, 2030	1,368.7		1,496.2		1,378.7		1,495.7
5.050% Senior Notes due January 15, 2031	404.6		398.1		413.0		398.0
5.750% Senior Notes due May 15, 2035	675.1		645.7		684.5		645.5
5.200% Senior Notes due September 15, 2045	1,031.3		1,101.7		1,029.5		1,101.5
3.150% Senior Notes due May 1, 2050	973.4		1,476.0		973.0		1,475.6
3.250% Senior Notes due February 15, 2051	458.9		482.3		461.8		480.3
6.450% Senior Notes due May 15, 2055	744.0		690.2		737.6		690.2
Non-current portion of notes payable	6,655.9		7,290.2		5,678.1		6,286.8
Total notes payable	$	7,455.8	$	8,090.2	$	5,678.1	$	6,286.8

(1) In connection with our acquisition of Apellis we drew $2.0 billion from the 2026 Term Loan, comprised of a $1.0 billion floating rate 364-day tranche and a $1.0 billion floating rate two-year tranche. For additional information on our 2026 Term Loan, please read Note 12, Indebtedness, to these condensed consolidated financial statements.