Eli Lilly 2012 Annual Report Download - page 74

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62
Fair Value Measurements Using
Description Carrying
Amount
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Fair
Value
Long-term debt, including current portion
December 31, 2012. . . . . . . . . . . . . . . . . . . . . . $ (5,531.3) $ $ (5,996.6) $ $ (5,996.6)
December 31, 2011. . . . . . . . . . . . . . . . . . . . . . (6,981.5) (7,451.5) (7,451.5)
Fair Value Measurements Using
Description Carrying
Amount
Quoted Prices
in
Active
Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3) Fair
Value
December 31, 2012
Risk-management instruments
Interest rate contracts designated as
hedging instruments
Sundry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 589.4 $ $ 589.4 $ $ 589.4
Foreign exchange contracts not designated
as hedging instruments
Other receivables. . . . . . . . . . . . . . . . . . . . 11.0 11.0 11.0
Other current liabilities. . . . . . . . . . . . . . . (17.5) (17.5) (17.5)
December 31, 2011
Risk-management instruments
Interest rate contracts designated as
hedging instruments
Other receivables. . . . . . . . . . . . . . . . . . . . $ 6.1 $ $ 6.1 $ $ 6.1
Sundry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 531.7 531.7 531.7
Foreign exchange contracts not designated
as hedging instruments
Other receivables. . . . . . . . . . . . . . . . . . . . 16.2 16.2 16.2
Other current liabilities. . . . . . . . . . . . . . . (25.9) (25.9) (25.9)
The fair value of the contingent consideration liability related to prior acquisitions, a Level 3 measurement in
the fair value hierarchy, was $0.0 million and $121.6 million as of December 31, 2012 and 2011, respectively.
The decrease in the fair value of the contingent consideration to zero as of December 31, 2012 was due to our
expectations for the applicable products (see Note 5) and a $50.0 million approval milestone that was paid for
Amyvid in the second quarter of 2012.
We determine fair values based on a market approach using quoted market values, significant other
observable inputs for identical or comparable assets or liabilities, or discounted cash flow analyses. The fair
value of equity method investments and other investments is not readily available.
The table below summarizes the contractual maturities of our investments in debt securities measured at fair
value as of December 31, 2012:
Maturities by Period
Total Less Than
1 Year 1-5
Years 6-10
Years More Than
10 Years
Fair value of debt securities. . . . . . . . . . . . . . . . $ 7,569.9 $ 1,665.5 $ 4,776.5 $ 373.9 $ 754.0