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Financial Instruments | 12 Months Ended
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Dec. 31, 2024
Fair Value Disclosures [Abstract] |
Financial Instruments | FINANCIAL INSTRUMENTS Cash, Cash Equivalents, and Investments The following tables summarize the Company’s cash and available-for-sale debt securities’ amortized cost, gross unrealized gains, gross unrealized losses, allowance for credit loss, and fair value by significant investment category reported as cash and cash equivalents, short-term investments, or long-term investments as of December 31, 2024, and 2023 (in millions):
|  |  |  |  |  |  |  |  |  |  | Reported as:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Loss |  | Fair Value |  | Cash and Cash Equivalents |  | Short-term Investments |  | Long-term Investments
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash | $ | 479.4 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 479.4 |  |  | $ | 479.4 |  |  | $ | — |  |  | $ | — |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | 1,516.1 |  |  | — |  |  | — |  |  | — |  |  | 1,516.1 |  |  | 1,516.1 |  |  | — |  |  | — |
U.S. treasuries | 6,011.5 |  |  | 13.2 |  |  | (27.5) |  |  | — |  |  | 5,997.2 |  |  | 31.9 |  |  | 1,637.4 |  |  | 4,327.9 |
Subtotal | 7,527.6 |  |  | 13.2 |  |  | (27.5) |  |  | — |  |  | 7,513.3 |  |  | 1,548.0 |  |  | 1,637.4 |  |  | 4,327.9 |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities | 287.5 |  |  | 0.1 |  |  | (3.7) |  |  | (0.1) |  |  | 283.8 |  |  | — |  |  | 189.7 |  |  | 94.1 |
U.S. government agencies | 552.2 |  |  | 1.5 |  |  | (2.4) |  |  | — |  |  | 551.3 |  |  | — |  |  | 154.2 |  |  | 397.1 |
Municipal securities | 4.7 |  |  | — |  |  | (0.1) |  |  | — |  |  | 4.6 |  |  | — |  |  | 4.6 |  |  | — |
Subtotal | 844.4 |  |  | 1.6 |  |  | (6.2) |  |  | (0.1) |  |  | 839.7 |  |  | — |  |  | 348.5 |  |  | 491.2 |
Total assets measured at fair value | $ | 8,851.4 |  |  | $ | 14.8 |  |  | $ | (33.7) |  |  | $ | (0.1) |  |  | $ | 8,832.4 |  |  | $ | 2,027.4 |  |  | $ | 1,985.9 |  |  | $ | 4,819.1 |
|  |  |  |  |  |  |  |  |  |  | Reported as:
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Allowance for Credit Loss |  | Fair Value |  | Cash and Cash Equivalents |  | Short-term Investments |  | Long-term Investments
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash | $ | 526.2 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 526.2 |  |  | $ | 526.2 |  |  | $ | — |  |  | $ | — |
Level 1: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds | 2,223.9 |  |  | — |  |  | — |  |  | — |  |  | 2,223.9 |  |  | 2,223.9 |  |  | — |  |  | — |
U.S. treasuries | 2,850.2 |  |  | 20.1 |  |  | (25.4) |  |  | — |  |  | 2,844.9 |  |  | — |  |  | 1,276.0 |  |  | 1,568.9 |
Subtotal | 5,074.1 |  |  | 20.1 |  |  | (25.4) |  |  | — |  |  | 5,068.8 |  |  | 2,223.9 |  |  | 1,276.0 |  |  | 1,568.9 |
Level 2: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt securities | 1,300.4 |  |  | — |  |  | (25.8) |  |  | (1.1) |  |  | 1,273.5 |  |  | — |  |  | 974.6 |  |  | 298.9 |
U.S. government agencies | 402.6 |  |  | 2.0 |  |  | (7.3) |  |  | — |  |  | 397.3 |  |  | — |  |  | 149.5 |  |  | 247.8 |
Municipal securities | 79.4 |  |  | — |  |  | (2.0) |  |  | — |  |  | 77.4 |  |  | — |  |  | 73.0 |  |  | 4.4 |
Subtotal | 1,782.4 |  |  | 2.0 |  |  | (35.1) |  |  | (1.1) |  |  | 1,748.2 |  |  | — |  |  | 1,197.1 |  |  | 551.1 |
Total assets measured at fair value | $ | 7,382.7 |  |  | $ | 22.1 |  |  | $ | (60.5) |  |  | $ | (1.1) |  |  | $ | 7,343.2 |  |  | $ | 2,750.1 |  |  | $ | 2,473.1 |  |  | $ | 2,120.0 |
The following table summarizes the contractual maturities of the Company’s cash equivalents and available-for-sale debt securities (excluding money market funds), as of December 31, 2024 (in millions):
| Amortized Cost |  | Fair Value
Mature in less than one year | $ | 2,017.8 |  |  | $ | 2,017.8 |
Mature in one to five years | 4,838.1 |  |  | 4,819.1 |
Total | $ | 6,855.9 |  |  | $ | 6,836.9 |
Actual maturities may differ from contractual maturities, because certain borrowers have the right to call or prepay certain obligations. Gross realized gains and losses recognized on the sale of investments were immaterial for the years ended December 31, 2024, and 2023. The following tables present the breakdown of the available-for-sale debt securities with unrealized losses as of December 31, 2024, and 2023 (in millions):
| Unrealized losses less than 12 months |  | Unrealized losses 12 months or greater |  | Total
December 31, 2024 | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
U.S. treasuries | $ | 2,744.4 |  |  | $ | (23.3) |  |  | $ | 190.1 |  |  | $ | (4.2) |  |  | $ | 2,934.5 |  |  | $ | (27.5) |
Corporate debt securities | — |  |  | — |  |  | 218.7 |  |  | (3.7) |  |  | 218.7 |  |  | (3.7) |
U.S. government agencies | 178.1 |  |  | (1.2) |  |  | 106.7 |  |  | (1.2) |  |  | 284.8 |  |  | (2.4) |
Municipal securities | — |  |  | — |  |  | 4.6 |  |  | (0.1) |  |  | 4.6 |  |  | (0.1) |
Total | $ | 2,922.5 |  |  | $ | (24.5) |  |  | $ | 520.1 |  |  | $ | (9.2) |  |  | $ | 3,442.6 |  |  | $ | (33.7) |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
U.S. treasuries | $ | 48.5 |  |  | $ | — |  |  | $ | 1,112.9 |  |  | $ | (25.4) |  |  | $ | 1,161.4 |  |  | $ | (25.4) |
Corporate debt securities | 54.2 |  |  | (0.1) |  |  | 1,219.2 |  |  | (25.8) |  |  | 1,273.4 |  |  | (25.9) |
U.S. government agencies | 29.8 |  |  | — |  |  | 185.6 |  |  | (7.3) |  |  | 215.4 |  |  | (7.3) |
Municipal securities | — |  |  | — |  |  | 77.4 |  |  | (1.9) |  |  | 77.4 |  |  | (1.9) |
Total | $ | 132.5 |  |  | $ | (0.1) |  |  | $ | 2,595.1 |  |  | $ | (60.4) |  |  | $ | 2,727.6 |  |  | $ | (60.5) |
The current unrealized losses on the Company’s available-for-sale debt securities were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. As of December 31, 2024, the Company does not intend to sell the investments in unrealized loss positions, and it is not more-likely-than-not that the Company will be required to sell any of the investments before recovery of their amortized cost basis, which may be at maturity. Therefore, the Company does not expect to realize any losses on these available-for-sale debt securities. Additional factors considered in determining the treatment of unrealized losses include the financial condition and near-term prospects of the investee, the extent of the loss related to the credit of the issuer, and the expected cash flows from the security. Equity Investments The following table is a summary of the activity related to equity investments (in millions):
|  |  |  |  |  |  |  |  | Reported as:
| December 31, 2023 Carrying Value |  | Changes in Fair Value (1) |  | Purchases / Sales / Other (2) |  | December 31, 2024 Carrying Value |  | Prepaids and other current assets |  | Intangible and other assets, net
Equity investments without readily determinable fair value (Level 2) | $ | 74.5 |  |  | $ | (9.3) |  |  | $ | 19.4 |  |  | $ | 84.6 |  |  | $ | — |  |  | $ | 84.6 |
(1) Recorded in interest and other income, net.
(2) Other includes foreign currency translation gains/(losses).
During 2024, the Company did not hold any equity investments with readily determinable fair values (Level 1). During 2024, the Company recognized a net decrease in fair value of $9.3 million primarily due to impairments and net decreases in observable price changes for certain equity investments that lack readily determinable market values (Level 2), which were also reflected in interest and other income, net. Foreign Currency Derivatives The objective of the Company’s hedging program is to mitigate the impact of changes in currency exchange rates on net cash flow from foreign currency-denominated sales, expenses, intercompany balances, and other monetary assets or liabilities denominated in currencies other than the U.S. dollar (“USD”). The terms of the Company’s derivative contracts are generally thirteen months or shorter. The derivative assets and liabilities are measured using Level 2 fair value inputs. Cash Flow Hedges. The Company enters into currency forward contracts as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the USD, primarily the Euro (“EUR”), the British Pound (“GBP”), the Japanese Yen (“JPY”), the Korean Won (“KRW”), the New Taiwan Dollar (“TWD”), and the Indian Rupee (“INR”). The Company also enters into currency forward contracts as cash flow hedges to hedge certain forecasted expense transactions denominated in EUR and the Swiss Franc (“CHF”). For these derivatives, the Company reports the unrealized after-tax gain or loss from the hedge as a component of accumulated other comprehensive income (loss) in stockholders’ equity and reclassifies the amount into earnings in the same period in which the hedged transaction affects earnings. The amounts reclassified to revenue and expenses related to the hedged transactions and the ineffective portions of cash flow hedges were not material for the periods presented. Other Derivatives Not Designated as Hedging Instruments. Other derivatives not designated as hedging instruments consist primarily of forward contracts that the Company uses to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the USD, primarily the EUR, GBP, JPY, KRW, CHF, TWD, INR, and the Chinese Yuan (“CNY”). These derivative instruments are used to hedge against balance sheet foreign currency exposures. The related gains and losses were as follows (in millions):
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
Recognized gains in interest and other income, net | $ | 43.2 |  |  | $ | 4.8 |  |  | $ | 26.9 |
Foreign exchange losses related to balance sheet re-measurement | $ | (45.9) |  |  | $ | (8.5) |  |  | $ | (54.2) |
The notional amounts for derivative instruments provide one measure of the transaction volume. Total gross notional amounts (in USD) for outstanding derivatives and the aggregate gross fair value at the end of each period were as follows (in millions):
| Derivatives Designated as Hedging Instruments |  | Derivatives Not Designated as Hedging Instruments
| December 31, 2024 |  | December 31, 2023 |  | December 31, 2024 |  | December 31, 2023
Notional amounts: |  |  |  |  |  |  |
Forward contracts | $ | 382.2 |  |  | $ | 292.1 |  |  | $ | 693.5 |  |  | $ | 699.7 |
Gross fair value recorded in: |  |  |  |  |  |  |
Prepaids and other current assets | $ | 14.9 |  |  | $ | 3.1 |  |  | $ | 13.0 |  |  | $ | 5.0 |
Other accrued liabilities | $ | 2.1 |  |  | $ | 5.9 |  |  | $ | 2.4 |  |  | $ | 6.6 |

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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