v3.26.1
Financial Instruments and Risk Management (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss)
The following table summarizes the principal amounts of the Company’s outstanding Euro and Yen borrowings and the notional amounts of the Euro and Yen borrowings designated as net investment hedges:
Notional Amount Designated as a Net Investment Hedge
(In millions)Principal AmountJune 30,
2026		December 31,
2025
1.362% Euro Senior Notes due 2027
€850.0 €850.0 €850.0 
3.125% Euro Senior Notes due 2028 (1)
750.0 — 750.0 
1.908% Euro Senior Notes due 2032
1,250.0 1,250.0 1,250.0 
4.250% Euro Senior Notes due 2033
650.0 650.0 — 
Euro Total€3,500.0 €2,750.0 €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 
____________
(1)In February 2026, the Company de-designated the €750.0 million 3.125% Euro Senior Notes due 2028 as net investment hedges.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following table summarizes the classification and fair values of derivative instruments in our condensed consolidated balance sheets:
Asset Derivatives Liability Derivatives
(In millions)Balance Sheet Location
June 30, 2026 Fair Value
December 31, 2025 Fair Value
Balance Sheet Location
June 30, 2026 Fair Value
December 31, 2025 Fair Value
Derivatives designated as hedges:
Cross-currency interest rate swapsPrepaid expenses & other current assets$— $— Other current liabilities$— 50.1 
Foreign currency forward contractsPrepaid expenses & other current assets13.0 6.5 Other current liabilities22.0 21.5 
Foreign currency forward contracts— — 
Other long-term obligations
6.3 2.7 
Total derivatives designated as hedges13.0 6.5 28.3 74.3 
Derivatives not designated as hedges:
Foreign currency forward contractsPrepaid expenses & other current assets91.2 77.7 Other current liabilities79.2 95.0 
Total derivatives not designated as hedges91.2 77.7 79.2 95.0 
Total derivatives $104.2 $84.2 $107.5 $169.3 
Financial Assets and Liabilities Carried at Fair Value
Financial assets and liabilities carried at fair value are classified in the tables below in one of the three categories described above:
June 30, 2026December 31, 2025
(In millions)Level 1Level 2Level 3Level 1Level 2Level 3
Recurring fair value measurements
Financial Assets
Cash equivalents:
Money market funds$623.0 $— $— $982.2 $— $— 
Total cash equivalents623.0 — — 982.2 — — 
Equity securities:
Biocon equity shares406.4 — — — — — 
Exchange traded funds67.1 — — 62.3 — — 
Marketable securities5.2 — — 3.4 — — 
Total equity securities478.7 — — 65.7 — — 
CCPS in Biocon Biologics— — — — 815.0 — 
Available-for-sale fixed income investments:
Corporate bonds— 13.7 — — 14.1 — 
U.S. Treasuries— 21.3 — — 20.2 — 
Agency mortgage-backed securities— 2.1 — — 2.3 — 
Asset backed securities— 3.7 — — 3.8 — 
Other— 0.3 — — 0.3 — 
Total available-for-sale fixed income investments— 41.1 — — 40.7 — 
Foreign exchange derivative assets— 104.2 — — 84.2 — 
Total assets at recurring fair value measurement$1,101.7 $145.3 $— $1,047.9 $939.9 $— 
Financial Liabilities
Foreign exchange derivative liabilities$— $107.5 $— $— $119.2 $— 
Interest rate swap derivative liabilities— — — — 50.1 — 
Contingent consideration— — 463.6 — — 371.6 
Total liabilities at recurring fair value measurement$— $107.5 $463.6 $— $169.3 $371.6 
Business Combination, Contingent Consideration
A rollforward of the activity in the Company’s fair value of contingent consideration from December 31, 2025 to June 30, 2026 is as follows:
(In millions)
Current Portion (1)
Long-Term Portion (2)
Total Contingent Consideration
Balance at December 31, 2025$28.5 $343.1 $371.6 
Payments(15.5)— (15.5)
Reclassifications5.9 (5.9)— 
Accretion— 1.8 1.8 
Fair value loss (3)
— 105.7 105.7 
Balance at June 30, 2026$18.9 $444.7 $463.6 
____________
(1)Included in other current liabilities in the condensed consolidated balance sheets.
(2)Included in other long-term obligations in the condensed consolidated balance sheets.
(3)Included in litigation settlements and other contingencies, net in the condensed consolidated statements of operations.
Effect of Derivative Instruments on the Condensed Consolidated Statements of Operations
The following table summarizes information about the gains/(losses) incurred to hedge or offset operational foreign exchange or interest rate risk:
Amount of Gains/(Losses) Recognized in EarningsAmount of Gains/(Losses) Recognized in AOCE (Net of Tax) on DerivativesAmount of Gains/(Losses) Reclassified from AOCE into Earnings
Three months ended June 30,
(In millions)Location of Gain/(Loss)202620252026202520262025
Derivative Financial Instruments in Cash Flow Hedging Relationships (1) :
Foreign currency forward contracts
Net sales (3)
$— $— $0.1 $(21.6)$(5.4)$0.7 
Interest rate swaps
Interest expense (3)
— — (0.8)(1.0)(0.9)(1.2)
Derivative Financial Instruments in Net Investment Hedging Relationships:
Cross-currency interest rate swaps
Interest expense (2)
— 3.4 — (40.3)— — 
Foreign currency forward contracts
Other (income) expense, net (3)
— — (2.9)(4.6)1.1 1.1 
Non-derivative Financial Instruments in Net Investment Hedging Relationships:
Foreign currency borrowings— — 36.6 (233.0)— — 
Derivative Financial Instruments Not Designated as Hedging Instruments:
Foreign currency option and forward contracts
Other (income) expense, net (2)
(0.2)(125.3)— — — — 
Total$(0.2)$(121.9)$33.0 $(300.5)$(5.2)$0.6 
Amount of Gains/(Losses) Recognized in EarningsAmount of Gains/(Losses) Recognized in AOCE (Net of Tax) on DerivativesAmount of Gains/(Losses) Reclassified from AOCE into Earnings
Six months ended June 30,
(In millions)Location of Gain/(Loss)202620252026202520262025
Derivative Financial Instruments in Cash Flow Hedging Relationships (1) :
Foreign currency forward contracts
Net sales (3)
$— $— $1.7 $(34.8)$(8.7)$10.6 
Interest rate swaps
Interest expense (3)
— — (1.7)(1.9)(2.1)(2.4)
Derivative Financial Instruments in Net Investment Hedging Relationships:
Cross-currency interest rate swaps
Interest expense (2)
2.0 6.8 9.7 (60.1)— — 
Foreign currency forward contracts
Other (income) expense, net (3)
— — (6.3)(4.6)2.3 1.1 
Non-derivative Financial Instruments in Net Investment Hedging Relationships:
Foreign currency borrowings— — 69.3 (349.4)— — 
Derivative Financial Instruments Not Designated as Hedging Instruments:
Foreign currency option and forward contracts
Other (income) expense, net (2)
29.3 (235.2)— — — — 
Total$31.3 $(228.4)$72.7 $(450.8)$(8.5)$9.3 
____________
(1)At June 30, 2026, the Company expects that approximately $7.0 million of pre-tax net losses on cash flow hedges will be reclassified from AOCE into earnings during the next twelve months.
(2)Represents the location of the gain/(loss) recognized in earnings on derivatives.
(3)Represents the location of the gain/(loss) reclassified from AOCE into earnings.