Financial Instruments

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

The following table summarizes our financial assets with maturities of less than 90 days from the date of purchase included in cash and cash equivalents in our condensed consolidated balance sheets:


(In millions)	As of March 31, 2022		As of December 31, 2021
Commercial paper	$	278.5	$	247.6
Overnight reverse repurchase agreements	13.9		200.0
Money market funds	585.0		901.6
Short-term debt securities	406.3		283.0
Total	$	1,283.7	$	1,632.2

The carrying values of our commercial paper, including accrued interest, overnight reverse repurchase agreements, money market funds and short-term debt securities approximate fair value due to their short-term maturities.

Our marketable equity securities gains (losses) are recorded in other income (expense), net in our condensed consolidated statements of income. The following tables summarize our marketable debt and equity securities, classified as available-for-sale:


	As of March 31, 2022
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable debt securities
Corporate debt securities:
Current	$	1,126.7	$	0.1	$	(2.2)	$	1,124.6
Non-current	460.5		0.1		(5.8)		454.8
Government securities:
Current	878.7		1.0		(2.6)		877.1
Non-current	379.0		0.2		(3.6)		375.6
Mortgage and other asset backed securities:
Current	0.7		—		—		0.7
Non-current	173.4		—		(2.2)		171.2
Total marketable debt securities	$	3,019.0	$	1.4	$	(16.4)	$	3,004.0

Marketable equity securities
Marketable equity securities, current	$	33.9	$	—	$	—	$	33.9
Marketable equity securities, non-current	1,133.1		4.5		(311.2)		826.4
Total marketable equity securities	$	1,167.0	$	4.5	$	(311.2)	$	860.3


	As of December 31, 2021
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable debt securities
Corporate debt securities:
Current	$	723.6	$	0.1	$	(0.3)	$	723.4
Non-current	385.4		0.2		(0.8)		384.8
Government securities:
Current	817.0		—		(0.4)		816.6
Non-current	377.0		0.1		(1.0)		376.1
Mortgage and other asset backed securities:
Current	1.1		—		—		1.1
Non-current	131.8		—		(0.7)		131.1
Total marketable debt securities	$	2,435.9	$	0.4	$	(3.2)	$	2,433.1

Marketable equity securities
Marketable equity securities, current	$	33.9	$	9.9	$	—	$	43.8
Marketable equity securities, non-current	1,133.1		151.0		(279.4)		1,004.7
Total marketable equity securities	$	1,167.0	$	160.9	$	(279.4)	$	1,048.5

Summary of Contractual Maturities: Available-for-Sale Debt Securities

The estimated fair value and amortized cost of our marketable debt securities available-for-sale by contractual maturity are summarized as follows:


	As of March 31, 2022				As of December 31, 2021
(In millions)	Estimated Fair Value		Amortized Cost		Estimated Fair Value		Amortized Cost
Due in one year or less	$	2,002.4	$	2,006.0	$	1,541.1	$	1,541.7
Due after one year through five years	982.9		993.7		868.2		870.2
Due after five years	18.7		19.3		23.8		24.0
Total marketable debt securities	$	3,004.0	$	3,019.0	$	2,433.1	$	2,435.9

The average maturity of our marketable debt securities available-for-sale as of March 31, 2022 and December 31, 2021, was approximately 10 months.

Proceeds from Marketable Debt Securities

The proceeds from maturities and sales of marketable debt securities and resulting realized gains and losses are summarized as follows:


	For the Three Months Ended March 31,
(In millions)	2022		2021
Proceeds from maturities and sales	$	543.6	$	819.2
Realized gains	—		0.2
Realized losses	0.6		0.7

Realized losses for the three months ended March 31, 2022 and 2021, primarily relate to sales of corporate bonds, agency mortgage-backed securities and other asset-backed securities.

Strategic Investments

As of March 31, 2022 and December 31, 2021, our strategic investment portfolio was comprised of investments totaling $919.5 million and $1,110.3 million, respectively, which are included in other current assets and investments and other assets in our condensed consolidated balance sheets.

Our strategic investment portfolio includes investments in equity securities of certain biotechnology companies, which are reflected within our disclosures included in Note 6, Fair Value Measurements, to these condensed consolidated financial statements, venture capital funds where the underlying investments are in equity securities of certain biotechnology companies and non-marketable equity securities.

The decrease in our strategic investment portfolio for the three months ended March 31, 2022, was primarily due to decreases in the fair value of our investments in Denali, Sage and Sangamo common stock.

For additional information on our investments in Denali, Ionis Pharmaceuticals, Inc. (Ionis), Sage and Sangamo common stock, please read Note 18, Collaborative and Other Relationships, to our consolidated financial statements included in our 2021 Form 10-K.