FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2020

Investments, All Other Investments [Abstract]

Cash, Cash Equivalents, and Investments

The following tables summarize the Company’s cash and available-for-sale marketable securities’ amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category reported as cash and cash equivalents, short-term investments, or long-term investments as of March 31, 2020, and December 31, 2019 (in millions):


											Reported as:
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Loss		Fair Value		Cash and Cash Equivalents		Short- term Investments		Long- term Investments
March 31, 2020
Cash	$	450.3	$	—	$	—	$	—	$	450.3	$	450.3	$	—	$	—
Level 1:
Money market funds	773.5		—		—		—		773.5		773.5		—		—
U.S. treasuries	1,891.0		39.9		—		—		1,930.9		—		832.7		1,098.2
Subtotal	2,664.5		39.9		—		—		2,704.4		773.5		832.7		1,098.2
Level 2:
Commercial paper	148.7		—		—		—		148.7		—		148.7		—
Corporate debt securities	2,086.0		11.1		(7.5)		(1.3)		2,088.3		—		839.4		1,248.9
U.S. government agencies	414.5		4.0		—		—		418.5		—		185.9		232.6
Non-U.S. government securities	4.5		—		—		—		4.5		—		4.5		—
Municipal securities	80.9		0.6		(0.1)		—		81.4		—		18.4		63.0
Subtotal	2,734.6		15.7		(7.6)		(1.3)		2,741.4		—		1,196.9		1,544.5



Total assets measured at fair value	$	5,849.4	$	55.6	$	(7.6)	$	(1.3)	$	5,896.1	$	1,223.8	$	2,029.6	$	2,642.7


									Reported as:
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cash and Cash Equivalents		Short- term Investments		Long- term Investments
December 31, 2019
Cash	$	413.1	$	—	$	—	$	413.1	$	413.1	$	—	$	—
Level 1:
Money market funds	726.8		—		—		726.8		726.8		—		—
U.S. treasuries	1,935.8		9.7		(0.4)		1,945.1		—		890.8		1,054.3
Subtotal	2,662.6		9.7		(0.4)		2,671.9		726.8		890.8		1,054.3
Level 2:
Commercial paper	165.1		—		—		165.1		25.5		139.6		—
Corporate debt securities	2,096.1		16.8		(0.2)		2,112.7		—		798.5		1,314.2
U.S. government agencies	418.3		1.1		(0.2)		419.2		—		209.6		209.6
Non-U.S. government securities	4.5		—		—		4.5		—		4.5		—
Municipal securities	58.4		0.3		—		58.7		2.2		11.1		45.4
Subtotal	2,742.4		18.2		(0.4)		2,760.2		27.7		1,163.3		1,569.2



Total assets measured at fair value	$	5,818.1	$	27.9	$	(0.8)	$	5,845.2	$	1,167.6	$	2,054.1	$	2,623.5

The following table summarizes the contractual maturities of the Company’s cash equivalents and available-for-sale investments (excluding cash and money market funds), as of March 31, 2020 (in millions):


	Amortized Cost		Fair Value
Mature in less than one year	$	2,020.0	$	2,029.6
Mature in one to five years	2,605.6		2,642.7

Total	$	4,625.6	$	4,672.3

Actual maturities may differ from contractual maturities, because certain borrowers have the right to call or prepay certain obligations. Realized gains and losses, net of tax, recognized on the sale of investments were not material for any of the periods presented.

Foreign Currency Derivatives

The objective of the Company’s hedging program is to mitigate the impact of changes in currency exchange rates on net cash flow from foreign currency-denominated sales, expenses, intercompany balances, and other monetary assets or liabilities denominated in currencies other than the U.S. dollar (“USD”). The terms of the Company’s derivative contracts are generally twelve months or shorter. The derivative assets and liabilities are measured using Level 2 fair value inputs.

Cash Flow Hedges

The Company enters into currency forward contracts as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the USD, primarily the Euro (“EUR”), the British Pound (“GBP”), the Japanese Yen (“JPY”), and the Korean Won (“KRW”). The Company also enters into currency forward contracts as cash flow hedges to hedge certain forecasted expense transactions denominated in EUR and the Swiss Franc (“CHF”).

For these derivatives, the Company reports the unrealized after-tax gain or loss from the hedge as a component of accumulated other comprehensive income/(loss) in stockholders’ equity and reclassifies the amount into earnings in the same period in which the hedged transaction affects earnings. The amounts reclassified to revenue and expenses related to the hedged transactions and the ineffective portions of cash flow hedges were not material for the periods presented.

Other Derivatives Not Designated as Hedging Instruments

Other derivatives not designated as hedging instruments consist primarily of forward contracts that the Company uses to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the USD, primarily the EUR, GBP, JPY, KRW, CHF, Indian Rupee, and New Taiwan Dollar.

These derivative instruments are used to hedge against balance sheet foreign currency exposures. The related gains and losses were as follows (in millions):


	Three Months Ended March 31, 2020
	2020		2019
Recognized gains in interest and other income, net	$	3.6	$	1.7
Foreign exchange losses related to balance sheet re-measurement	$	(8.6)	$	(1.8)

The notional amounts for derivative instruments provide one measure of the transaction volume. Total gross notional amounts (in USD) for outstanding derivatives and the aggregate gross fair value at the end of each period were as follows (in millions):


	Derivatives Designated as Hedging Instruments						Derivatives Not Designated as Hedging Instruments
	March 31, 2020		December 31, 2019		March 31, 2020		December 31, 2019
Notional amounts:
Forward contracts	$	160.2	$	154.5	$	225.7	$	227.2
Gross fair value recorded in:
Prepaids and other current assets	$	2.5	$	1.3	$	3.0	$	2.2
Other accrued liabilities	$	0.4	$	0.5	$	1.1	$	0.7