Held-to-Maturity Investments

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

6. Held-to-Maturity Investments

We determine the classification of investments (e.g. held-to-maturity, available-for-sale or trading) in debt securities at the time of purchase and reevaluate such designation as of each reporting period. Investments in debt securities are designated as held-to-maturity when we have the positive intent and ability to hold the securities to maturity. Held-to-maturity investments are carried at amortized cost. Interest and amortization of discounts and premiums, which is computed under the effective interest method, are included in “Interest and other (income) expense, net” in our condensed consolidated statements of operations.

When the fair value of an investment classified as held-to-maturity is less than its amortized cost, we assess whether or not (i) we have the intent to sell the instrument or (ii) it is more likely than not that we will be required to sell the instrument before its anticipated recovery. If either of these conditions is met, we recognize an other-than-temporary impairment for the difference between the instrument’s amortized cost basis and its fair value, and include such amounts in “Interest and other (income) expense, net” in our condensed consolidated statements of operations.

The following table summarizes the Company's held-to-maturity investments at September 30, 2022 (amount in millions):


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized losses		Estimated Fair Value (Level 1)
U.S. treasuries and government agency securities	$	2,945	$	—	$	—	$	2,945

At September 30, 2022, all contractual maturities of held-to-maturity investments were less than 12 months and amortized costs of these investments approximates fair value.