Cash Equivalents and Investments

9 Months Ended

Sep. 30, 2020

Cash Equivalents and Investments [Abstract]

Note 2. Cash Equivalents and Investments

Investments in Available-for-Sale Debt Securities

The following table summarizes the Company's unrealized gains and losses and fair value of investments designated as available-for-sale debt securities as of September 30, 2020 and December 31, 2019 (in millions):


	As of September 30, 2020								As of December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed income securities:
Asset-backed securities	$	74.0	$	0.3	$	—	$	74.3	$	81.3	$	0.1	$	—	$	81.4
Certificates of deposit	31.8		—		—		31.8		38.6		—		—		38.6
Commercial paper	87.1		—		—		87.1		168.2		—		—		168.2
Corporate debt securities	672.8		6.4		(0.2)		679.0		604.9		0.7		(0.1)		605.5
Foreign government debt securities	8.0		—		—		8.0		11.4		—		—		11.4
Time deposits	223.6		—		—		223.6		226.3		—		—		226.3
U.S. government agency securities	58.3		0.2		—		58.5		89.0		—		—		89.0
U.S. government securities	407.1		1.7		—		408.8		394.3		0.3		(0.1)		394.5
Total fixed income securities	1,562.7		8.6		(0.2)		1,571.1		1,614.0		1.1		(0.2)		1,614.9
Privately-held debt and redeemable preferred stock securities	19.3		37.4		—		56.7		19.1		37.4		—		56.5
Total available-for-sale debt securities	$	1,582.0	$	46.0	$	(0.2)	$	1,627.8	$	1,633.1	$	38.5	$	(0.2)	$	1,671.4

Reported as:
Cash equivalents	$	356.2	$	—	$	—	$	356.2	$	290.9	$	—	$	—	$	290.9
Short-term investments	492.8		1.7		—		494.5		733.7		0.5		—		734.2
Long-term investments	713.7		6.9		(0.2)		720.4		589.4		0.6		(0.2)		589.8
Other long-term assets	19.3		37.4		—		56.7		19.1		37.4		—		56.5
Total	$	1,582.0	$	46.0	$	(0.2)	$	1,627.8	$	1,633.1	$	38.5	$	(0.2)	$	1,671.4

The following table presents the contractual maturities of the Company's total fixed income securities as of September 30, 2020 (in millions):


	Amortized Cost		Estimated Fair Value
Due in less than one year	$	849.0	$	850.7
Due between one and five years	713.7		720.4
Total	$	1,562.7	$	1,571.1

The following tables present the Company's total fixed income securities that were in an unrealized loss position as of September 30, 2020 and December 31, 2019 (in millions):


	As of September 30, 2020
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed income securities:
Asset-backed securities	$	10.3	$	—	$	—	$	—	$	10.3	$	—
Corporate debt securities	105.2		(0.2)		—		—		105.2		(0.2)
Foreign government debt securities	8.0		—		—		—		8.0		—

U.S. government securities	13.4		—		—		—		13.4		—
Total fixed income securities	$	136.9	$	(0.2)	$	—	$	—	$	136.9	$	(0.2)


	As of December 31, 2019
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed income securities:
Asset-backed securities	$	21.6	$	—	$	5.2	$	—	$	26.8	$	—
Corporate debt securities	142.6		(0.1)		2.1		—		144.7		(0.1)
Foreign government debt securities	4.0		—		4.0		—		8.0		—
U.S. government agency securities	20.0		—		—		—		20.0		—
U.S. government securities	71.6		(0.1)		—		—		71.6		(0.1)
Total fixed income securities	$	259.8	$	(0.2)	$	11.3	$	—	$	271.1	$	(0.2)

For available-for-sale debt securities that have unrealized losses, the Company assesses impairment by evaluating various factors, including whether (i) it has the intention to sell any of these investments and (ii) whether it is more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. The Company periodically assesses performance indicators of the investment by evaluating various factors such as (i) changes in the credit ratings and (ii) review of the issuer. As of September 30, 2020, the Company had 97 investments in unrealized loss positions. The gross unrealized losses related to these investments were primarily due to changes in market interest rates. The Company anticipates that it will recover the entire amortized cost basis of such available-for-sale debt securities and has determined that no allowance for credit losses was required to be recognized during the three and nine months ended September 30, 2020 and September 30, 2019.

During the three and nine months ended September 30, 2020 and September 30, 2019, there were no material gross realized gains or losses from available-for-sale debt securities.

Investments in Equity Securities

The following table presents the Company's investments in equity securities as of September 30, 2020 and December 31, 2019 (in millions):


	As of
	September 30, 2020		December 31, 2019
Equity investments with readily determinable fair value
Money market funds	$	580.4	$	446.4
Mutual funds	27.1		26.8
Publicly-traded equity securities	4.8		3.8
Equity investments without readily determinable fair value	140.0		133.3
Total equity securities	$	752.3	$	610.3

Reported as:
Cash equivalents	$	576.4	$	442.3
Short-term investments	4.8		3.8
Prepaid expenses and other current assets	7.2		4.1
Other long-term assets	163.9		160.1
Total	$	752.3	$	610.3

For the three and nine months ended September 30, 2020 and September 30, 2019, there were no material unrealized gains or losses recognized for equity investments.

Restricted Cash and Investments

The Company has restricted cash and investments for: (i) amounts held in escrow accounts, as required in connection with certain acquisitions completed primarily in 2019; (ii) amounts held under the Company's short-term disability plan in California; and (iii) amounts under the Company's non-qualified deferred compensation plan for senior-level employees. Restricted investments consist of equity investments. As of September 30, 2020, the carrying value of restricted cash and investments was $91.4 million, of which $67.4 million was included in prepaid expenses and other current assets, and $24.0 million was included in other long-term assets on the Condensed Consolidated Balance Sheet.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash included in the Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019 (in millions):


	As of
	September 30, 2020		December 31, 2019
Cash and cash equivalents	$	1,341.5	$	1,215.8
Restricted cash included in Prepaid expenses and other current assets	60.3		60.7
Total cash, cash equivalents, and restricted cash	$	1,401.8	$	1,276.5