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Investments
 12 Months Ended
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Available-for-sale investments
The amortized cost, gross unrealized gains, gross unrealized losses and fair values of interest-bearing securities, all of which are considered available-for-sale, by type of security were as follows (in millions):
Types of securities as of December 31, 2020Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair
values
U.S. Treasury notes$129 $1 $— $130 
U.S. Treasury bills4,948 — — 4,948 
Corporate debt securities:
Financial— — — — 
Industrial— — — — 
Other— — — — 
Residential-mortgage-backed securities— — — — 
Money market mutual funds4,765 — — 4,765 
Other short-term interest-bearing securities2 — — 2 
Total available-for-sale investments$9,844 $1 $— $9,845 
Types of securities as of December 31, 2019Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair
values
U.S. Treasury notes$359 $1 $— $360 
U.S. Treasury bills— — — — 
Corporate debt securities:
Financial1,108 13 — 1,121 
Industrial824 10 — 834 
Other195 3 — 198 
Residential-mortgage-backed securities181 1 — 182 
Money market mutual funds5,250 — — 5,250 
Other short-term interest-bearing securities289 — — 289 
Total available-for-sale investments$8,206 $28 $— $8,234 
The fair values of available-for-sale investments by location in the Consolidated Balance Sheets were as follows (in millions):
December 31,
Consolidated Balance Sheets locations20202019
Cash and cash equivalents$5,464 $5,360 
Marketable securities4,381 2,874 
Total available-for-sale investments$9,845 $8,234 
Cash and cash equivalents in the above table excludes bank account cash of $802 million and $677 million as of December 31, 2020 and 2019, respectively.
The fair values of available-for-sale investments by contractual maturity, except for mortgage- and asset-backed securities that do not have a single maturity date, were as follows (in millions):
December 31,
Contractual maturities20202019
Maturing in one year or less$9,795 $5,629 
Maturing after one year through three years50 2,304 
Maturing after three years through five years— 119 
Residential-mortgage-backed securities— 182 
Total available-for-sale investments$9,845 $8,234 
For the years ended December 31, 2020, 2019 and 2018, realized gains on interest-bearing securities were $37 million, $92 million and $29 million, respectively, and realized losses on interest-bearing securities were $4 million, $36 million and $394 million, respectively. Realized gains and losses on interest-bearing securities are recorded in Interest and other income, net, in the Consolidated Statements of Income. The cost of securities sold is based on the specific-identification method.
The primary objective of our investment portfolio is to maintain safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments issued by institutions with investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer.
We review our available-for-sale investments for declines in fair value below our cost basis each quarter or whenever circumstances indicate that the cost basis of an asset may not be recoverable and assess whether the decline was due to credit-related factors or other factors. Our evaluation is based on a number of factors, including the extent to which the fair value is below our cost basis as well as adverse conditions related specifically to the security, such as any changes to the credit rating of the security and the intent to sell or whether we will more likely than not be required to sell the security before recovery of its amortized cost basis. Our assessment of whether a security is impaired could change in the future based on new developments or changes in assumptions related to that particular security.
Equity securities
We held investments in equity securities with readily determinable fair values of $477 million and $303 million as of December 31, 2020 and 2019, respectively, which are included in Other assets in the Consolidated Balance Sheets. For the years ended December 31, 2020, 2019 and 2018, net unrealized gains on publicly traded securities were $174 million, $112 million and $24 million, respectively. Realized gains and losses on publicly traded securities for the years ended December 31, 2020, 2019 and 2018, were not material.
We held investments of $203 million and $176 million in equity securities without readily determinable fair values as of December 31, 2020 and 2019, respectively, which are included in Other assets in the Consolidated Balance Sheets. Gains and losses recognized on these securities, including adjustments to the carrying values of these securities, were not material for the years ended December 31, 2020, 2019 and 2018.
Equity Method Investments
Limited partnership investments
We held limited partnership investments of $496 million and $320 million as of December 31, 2020 and 2019, respectively, which are included in Other assets in the Consolidated Balance Sheets. These investments, primarily investment funds of early-stage biotechnology companies, are accounted for by using the equity method of accounting and are measured by using our proportionate share of the net asset values of the underlying investments held by the limited partnerships as a practical expedient. These investments are typically redeemable only through distributions upon liquidation of the underlying assets. As of December 31, 2020, unfunded additional commitments to be made for these investments during the next several years were not material. For the years ended December 31, 2020, 2019 and 2018 net gains recognized from our limited partnership investments were $241 million, $27 million and $91 million, respectively.
BeiGene
On January 2, 2020, we acquired a 20.5% ownership interest in BeiGene for $2.8 billion, of which $2.6 billion was attributed to the fair value of equity securities upon closing, with the remainder attributed to prepaid R&D. Our equity investment in BeiGene is included in Other assets in the Consolidated Balance Sheets. The fair value of equity securities acquired exceeded our proportionate share of the carrying value of the underlying net assets of BeiGene by approximately $2.4 billion. This investment is accounted for by using the equity method of accounting, which requires us to identify and allocate amounts to the items that give rise to the basis difference and to amortize these items over their useful lives. This amortization, along with our share of the results of operations of BeiGene, is included in Interest and other income, net, in our Consolidated Statements of Income. Recognition occurs one quarter in arrears, which began in the second quarter of 2020. The basis difference was allocated to finite-lived intangible assets, indefinite-lived intangible assets, equity-method goodwill and related deferred taxes. The finite-lived intangible assets are being amortized over a period ranging from 8 to 15 years.
During the year ended December 31, 2020, we recognized an increase in the carrying value of our investment by purchasing additional shares to maintain our ownership interest for an aggregate cost of $569 million and recognized $34 million for the impact of other BeiGene ownership transactions. The carrying value of the investment during the year ended December 31, 2020, was reduced for our share of BeiGene’s net losses of $229 million and amortization of the basis difference of $109 million.
As of December 31, 2020, the carrying value and fair value of our approximately 20.5% ownership interest in BeiGene totaled $2.9 billion and $4.9 billion, respectively. We believe that as of December 31, 2020, the carrying value of our equity investment in BeiGene is fully recoverable. For information on a collaboration agreement we entered into with BeiGene in connection with this investment, see Note 8, Collaborations.