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Cash, Cash Equivalents, and Marketable Debt Securities
 3 Months Ended
Mar. 31, 2022
Cash, Cash Equivalents, and Short-term Investments [Abstract]  
Cash, Cash Equivalents, and Marketable Debt Securities

13. Cash, Cash Equivalents, and Marketable Debt Securities

The following table shows the Company’s cash and available-for-sale ("AFS") debt securities by major asset category at March 31, 2022 and December 31, 2021 (in millions):

 

 

 

March 31, 2022

 

 

 

Adjusted
Cost Basis

 

 

Unrealized
Gain

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Cash and
Cash Equivalents

 

 

Short-Term
Marketable
Debt Securities

 

 

Long-Term
Marketable
Debt Securities

 

Cash and cash equivalents

 

$

627.4

 

 

$

—

 

 

$

—

 

 

$

627.4

 

 

$

627.4

 

 

$

—

 

 

$

—

 

Level 1 (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

22.9

 

 

 

—

 

 

 

(0.3

)

 

 

22.6

 

 

 

—

 

 

 

12.7

 

 

 

9.9

 

Money market funds

 

 

1.2

 

 

 

—

 

 

 

—

 

 

 

1.2

 

 

 

1.2

 

 

 

—

 

 

 

—

 

Subtotal

 

 

24.1

 

 

 

—

 

 

 

(0.3

)

 

 

23.8

 

 

 

1.2

 

 

 

12.7

 

 

 

9.9

 

Level 2 (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

122.3

 

 

 

—

 

 

 

(1.6

)

 

 

120.7

 

 

 

—

 

 

 

63.6

 

 

 

57.1

 

U.S. government agency securities

 

 

5.6

 

 

 

—

 

 

 

(0.1

)

 

 

5.5

 

 

 

—

 

 

 

4.0

 

 

 

1.5

 

Certificates of deposit

 

 

1.0

 

 

 

—

 

 

 

—

 

 

 

1.0

 

 

 

—

 

 

 

1.0

 

 

 

—

 

Subtotal

 

 

128.9

 

 

 

—

 

 

 

(1.7

)

 

 

127.2

 

 

 

—

 

 

 

68.6

 

 

 

58.6

 

Total

 

$

780.4

 

 

$

—

 

 

$

(2.0

)

 

$

778.4

 

 

$

628.6

 

 

$

81.3

 

 

$

68.5

 

 

 

 

December 31, 2021

 

 

 

Adjusted
Cost Basis

 

 

Unrealized
Gain

 

 

Unrealized
Loss

 

 

Fair
Value

 

 

Cash and
Cash Equivalents

 

 

Short-Term
Marketable
Debt Securities

 

 

Long-Term
Marketable
Debt Securities

 

Cash and cash equivalents

 

$

612.3

 

 

$

—

 

 

$

—

 

 

$

612.3

 

 

$

612.3

 

 

$

—

 

 

$

—

 

Level 1 (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

 

26.4

 

 

 

—

 

 

 

(0.1

)

 

 

26.3

 

 

 

2.0

 

 

 

14.7

 

 

 

9.6

 

Money market funds

 

 

0.9

 

 

 

—

 

 

 

—

 

 

 

0.9

 

 

 

0.9

 

 

 

—

 

 

 

—

 

Subtotal

 

 

27.3

 

 

 

—

 

 

 

(0.1

)

 

 

27.2

 

 

 

2.9

 

 

 

14.7

 

 

 

9.6

 

Level 2 (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate debt securities

 

 

118.9

 

 

 

—

 

 

 

(0.3

)

 

 

118.6

 

 

 

3.5

 

 

 

66.0

 

 

 

49.1

 

U.S. government agency securities

 

 

4.8

 

 

 

—

 

 

 

—

 

 

 

4.8

 

 

 

—

 

 

 

3.5

 

 

 

1.3

 

Certificates of deposit

 

 

1.9

 

 

 

—

 

 

 

—

 

 

 

1.9

 

 

 

—

 

 

 

1.9

 

 

 

—

 

Subtotal

 

 

125.6

 

 

 

—

 

 

 

(0.3

)

 

 

125.3

 

 

 

3.5

 

 

 

71.4

 

 

 

50.4

 

Total

 

$

765.2

 

 

$

—

 

 

$

(0.4

)

 

$

764.8

 

 

$

618.7

 

 

$

86.1

 

 

$

60.0

 
(a)
Valuations based on quoted prices for identical assets or liabilities in active markets.
(b)
Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

For both the three months ended March 31, 2022 and 2021, net realized gains and losses on the sales and maturities of certain marketable debt securities were insignificant.

The Company invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy requires securities to be investment grade and limits the amount of credit exposure to any one issuer. The maturities of the Company’s long-term marketable debt securities generally range from one to two years.

Fair values were determined for each individual marketable debt security in the investment portfolio. When evaluating a marketable debt security for impairment, PCA reviews factors such as the duration and extent to which the fair value of the marketable debt security is less than its cost, the financial condition of the issuer and any changes thereto, the general market condition in which the issuer operates, and PCA’s intent to sell, or whether it will be more likely than not be required to sell, the marketable debt security before recovery of its amortized cost basis.

As of March 31, 2022 and December 31, 2021, we do not consider any of the impairments related to our marketable debt securities to be the result of credit losses. Therefore, we have not recorded an allowance for credit losses related to our marketable debt securities. All unrealized gains and losses were recorded in other comprehensive income (OCI).

The following table provides information about the Company’s marketable debt securities that have been in a continuous loss position as of March 31, 2022 and December 31, 2021 (in millions, except number of marketable debt securities in a loss position):

 

 

 

March 31, 2022

 

 

December 31, 2021

 

 

 

Fair Value of
Marketable
Debt Securities

 

 

Number of Marketable
Debt Securities
in a Loss Position

 

 

Unrealized
Losses

 

 

Fair Value of
Marketable
Debt Securities

 

 

Number of Marketable
Debt Securities
in a Loss Position

 

 

Unrealized
Losses

 

Corporate debt securities (c)

 

$

113.7

 

 

 

160

 

 

$

1.6

 

 

$

106.9

 

 

 

153

 

 

$

0.3

 

U.S. Treasury securities

 

 

22.6

 

 

 

25

 

 

 

0.1

 

 

 

22.4

 

 

 

27

 

 

 

0.1

 

U.S. government agency securities

 

 

5.5

 

 

 

7

 

 

 

0.3

 

 

 

4.8

 

 

 

6

 

 

 

—

 

Certificates of deposit

 

 

1.0

 

 

 

2

 

 

 

—

 

 

 

0.5

 

 

 

1

 

 

 

—

 

 

 

$

142.8

 

 

 

194

 

 

$

2.0

 

 

$

134.6

 

 

 

187

 

 

$

0.4

 
(c)
For 2022, includes one marketable debt security in a continuous loss position greater than 12 months with a fair value of $0.3 million and an insignificant amount of unrealized loss.