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Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following fair value hierarchy is used to classify assets and liabilities based on observable inputs and unobservable inputs used to determine the fair value of our financial assets and liabilities:
Level 1:Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2:Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.
Level 3:Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.
Our investment strategy is focused on capital preservation. We invest in instruments that meet the credit quality standards outlined in our investment policy, which also limits the amount of credit exposure to any one issue or type of instrument. We utilize foreign currency forward contracts intended to mitigate the effect of changes in foreign exchange rates on our consolidated statements of income.
The following tables set forth our financial assets and liabilities subject to fair value measurements by level within the fair value hierarchy:
As of December 31, 2024As of December 31, 2023
Fair Value Hierarchy
Fair Value Hierarchy
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
(in millions)
Financial instruments carried at fair value (asset positions):
Cash equivalents$1,687.1 $613.3 $1,073.8 $— $7,033.9 $5,397.3 $1,636.6 $— 
Marketable securities:
Corporate equity securities36.6 36.6 — — 46.0 46.0 — — 
U.S. Treasury securities1,602.0 1,566.8 35.2 — 546.5 546.5 — — 
U.S. government agency securities
240.5 — 240.5 — 425.2 — 425.2 — 
Asset-backed securities1,244.2 — 1,244.2 — 306.0 — 306.0 — 
Certificates of deposit— — — — 33.7 — 33.7 — 
Corporate debt securities3,525.9 — 3,525.9 — 1,802.8 — 1,802.8 — 
Commercial paper5.0 — 5.0 — 186.8 — 186.8 — 
Prepaid expenses and other current assets:
Foreign currency forward contracts130.1 — 130.1 — 1.8 — 1.8 — 
Other assets:
Foreign currency forward contracts12.4 — 12.4 — — — — — 
Total financial assets
$8,483.8 $2,216.7 $6,267.1 $— $10,382.7 $5,989.8 $4,392.9 $— 
Financial instruments carried at fair value (liability positions):
Other current liabilities:
Foreign currency forward contracts$— $— $— $— $(33.7)$— $(33.7)$— 
Other long-term liabilities:
Contingent consideration(76.9)— — (76.9)(77.4)— — (77.4)
Total financial liabilities$(76.9)$— $— $(76.9)$(111.1)$— $(33.7)$(77.4)
Please refer to Note E, “Marketable Securities and Equity Investments,” for the carrying amount and related unrealized gains (losses) by type of investment. Our cash equivalents primarily include money market funds and time deposits.
Fair Value of Corporate Equity Securities
We classify our investments in publicly traded corporate equity securities as “Marketable securities” on our consolidated balance sheets. Generally, our investments in the common stock of publicly traded companies are valued based on Level 1 inputs because they have readily determinable fair values. However, certain of our investments in publicly traded companies have been or continue to be valued based on Level 2 inputs due to transfer restrictions associated with these investments.
As of December 31, 2024, one of our investments in publicly traded corporate equity securities was subject to a contractual sales restriction with a total fair value of $14.0 million, which expired in February 2025.
Please refer to Note E, “Marketable Securities and Equity Investments,” for further information on these investments.
Fair Value of Contingent Consideration
In 2019, we acquired Exonics Therapeutics, Inc. (“Exonics”), a privately held company focused on creating transformative gene-editing therapies to repair mutations that cause Duchenne muscular dystrophy and other severe neuromuscular diseases, including DM1. Our Level 3 contingent consideration liabilities are related to $678.3 million of development and regulatory milestones potentially payable to former Exonics equity holders. We base our estimates of the probability of achieving the milestones relevant to the fair value of contingent payments on industry data attributable to gene therapies and our knowledge of the progress and viability of the programs. The discount rates used in the valuation model for
contingent payments, which were between 4.9% and 5.1% as of December 31, 2024, represent a measure of credit risk and market risk associated with settling the liabilities.
The following table represents a rollforward of the fair value of our contingent consideration liabilities:
Year Ended December 31, 2024
(in millions)
Balance at December 31, 2023
$77.4 
Decrease in fair value of contingent payments
(0.5)
Balance at December 31, 2024
$76.9 
Significant judgment is used in determining the appropriateness of these assumptions at each reporting period. Due to the uncertainties associated with development and commercialization of product candidates in the pharmaceutical industry and the effects of changes in other assumptions including discount rates, we expect our estimates regarding the fair value of contingent consideration to continue to change in the future, resulting in adjustments to the fair value of our contingent consideration liabilities, and the effect of any such adjustments could be material.