Financial Instruments

9 Months Ended

Sep. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Financial Instruments

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 September 30, 2023		As of December 31, 2022
Commercial paper	$	—	$	177.2
Overnight reverse repurchase agreements	—		59.0
Money market funds	1,920.4		2,581.5
Short-term debt securities	—		29.9
Total	$	1,920.4	$	2,847.6

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.

We partially funded our Reata acquisition through available cash, cash equivalents and marketable securities. As of September 30, 2023, we have sold all of our marketable debt securities. For additional information on our acquisition of Reata, please read Note 2, Acquisitions, to these condensed consolidated financial statements.

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 September 30, 2023
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable equity securities
Marketable equity securities, non-current	$	993.3	$	—	$	(579.7)	$	413.6
Total marketable equity securities	$	993.3	$	—	$	(579.7)	$	413.6

	As of December 31, 2022
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Marketable debt securities
Corporate debt securities:
Current	$	936.2	$	—	$	(4.9)	$	931.3
Non-current	305.3		0.1		(5.1)		300.3
Government securities:
Current	547.1		0.1		(5.0)		542.2
Non-current	271.4		—		(3.3)		268.1
Mortgage and other asset backed securities:
Current	—		—		—		—
Non-current	139.1		0.1		(1.9)		137.3
Total marketable debt securities	$	2,199.1	$	0.3	$	(20.2)	$	2,179.2
Marketable equity securities
Marketable equity securities, non-current	$	1,133.8	$	—	$	(342.7)	$	791.1
Total marketable equity securities	$	1,133.8	$	—	$	(342.7)	$	791.1

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

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

	As of December 31, 2022
(In millions)	Estimated Fair Value		Amortized Cost
Due in one year or less	$	1,473.5	$	1,483.3
Due after one year through five years	694.4		703.7
Due after five years	11.3		12.1
Total marketable debt securities	$	2,179.2	$	2,199.1

The average maturity of our marketable debt securities classified as available-for-sale as of December 31, 2022, was approximately 8 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 September 30,				For the Nine Months Ended September 30,
(In millions)	2023		2022		2023		2022
Proceeds from maturities and sales	$	5,698.6	$	1,643.2	$	7,380.8	$	3,104.7
Realized gains	1.0		—		1.4		—
Realized losses	16.3		7.9		18.4		9.3

Realized losses for the three and nine months ended September 30, 2023, primarily relate to sales of U.S. treasuries and corporate bonds. Realized losses for the three and nine months ended September 30, 2022, primarily relate to sales of corporate bonds, agency mortgage-backed securities and other asset-backed securities.

During the third quarter of 2023 we sold all of our marketable debt securities and used the proceeds to partially fund our acquisition of Reata. For additional information on our acquisition of Reata, please read Note 2, Acquisitions, to these condensed consolidated financial statements.

Strategic Investments

Our strategic investment portfolio includes investments in equity securities of certain biotechnology companies, which are reflected within our disclosures included in Note 8, Fair Value Measurements, to these condensed consolidated financial statements, as well as venture capital funds where the underlying investments are in equity securities of certain biotechnology companies and non-marketable equity securities.

As of September 30, 2023 and December 31, 2022, our strategic investment portfolio was comprised of investments totaling $465.5 million and $846.0 million, respectively, which are included in investments and other assets in our condensed consolidated balance sheets.

The decrease in our strategic investment portfolio as of September 30, 2023, was primarily due to the decrease in the fair value of our investments in Denali, Sangamo and Sage common stock. Additionally, we sold a portion of our Sangamo common stock during the third quarter of 2023.

For additional information on our strategic investments in Denali, Sangamo and Sage common stock, please read Note 19, Collaborative and Other Relationships, to our consolidated financial statements included in our 2022 Form 10-K.