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Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
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.
The following table sets forth our financial assets and liabilities subject to fair value measurements by level within the fair value hierarchy:
As of June 30, 2025As of December 31, 2024
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$1,012.6 $244.5 $768.1 $— $1,687.1 $613.3 $1,073.8 $— 
Marketable securities:
Corporate equity securities27.9 27.9 — — 36.6 36.6 — — 
U.S. Treasury securities1,818.1 1,818.1 — — 1,602.0 1,566.8 35.2 — 
U.S. government agency securities
195.0 — 195.0 — 240.5 — 240.5 — 
Asset-backed securities1,397.3 — 1,397.3 — 1,244.2 — 1,244.2 — 
Certificates of deposit24.1 — 24.1 — — — — — 
Corporate debt securities3,563.1 — 3,563.1 — 3,525.9 — 3,525.9 — 
Commercial paper31.0 — 31.0 — 5.0 — 5.0 — 
Prepaid expenses and other current assets:
Foreign currency forward contracts2.6 — 2.6 — 130.1 — 130.1 — 
Other assets:
Foreign currency forward contracts— — — — 12.4 — 12.4 — 
Total financial assets
$8,071.7 $2,090.5 $5,981.2 $— $8,483.8 $2,216.7 $6,267.1 $— 
Financial instruments carried at fair value (liability positions):
Other current liabilities:
Foreign currency forward contracts
$(157.0)$— $(157.0)$— $— $— $— $— 
Other long-term liabilities:
Foreign currency forward contracts(65.1)— (65.1)— — — — — 
Contingent consideration(80.0)— — (80.0)(76.9)— — (76.9)
Total financial liabilities
$(302.1)$— $(222.1)$(80.0)$(76.9)$— $— $(76.9)
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 condensed 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.
Please refer to Note E, “Marketable Securities and Equity Investments,” for further information on these investments.
Fair Value of Contingent Consideration
Our Level 3 contingent consideration liabilities are related to $678.3 million of development and regulatory milestones potentially payable to former equity holders of Exonics Therapeutics, Inc., a privately-held company we acquired in 2019. 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 associated Duchenne muscular dystrophy programs. The discount rates used in the valuation model for contingent payments, which were between 4.4% and 4.6% as of June 30, 2025, represent a measure of credit risk and market risk associated with settling the liabilities. Significant judgment is used in determining the appropriateness of these assumptions at each reporting period.
The following table represents a rollforward of the fair value of our contingent consideration liabilities:
Six Months Ended June 30, 2025
(in millions)
Balance at December 31, 2024$76.9 
Increase in fair value of contingent payments
3.1 
Balance at June 30, 2025$80.0