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Investments | 12 Months Ended
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Dec. 31, 2021
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, 2021 |  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair values
U.S. Treasury notes |  | $ | 47 |  |  | $ | — |  |  | $ | — |  |  | $ | 47 |
U.S. Treasury bills |  | 1,400 |  |  | — |  |  | — |  |  | 1,400 |
Money market mutual funds |  | 5,856 |  |  | — |  |  | — |  |  | 5,856 |
Other short-term interest-bearing securities |  | 1 |  |  | — |  |  | — |  |  | 1 |
Total available-for-sale investments |  | $ | 7,304 |  |  | $ | — |  |  | $ | — |  |  | $ | 7,304 |
Types of securities as of December 31, 2020 |  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair values
U.S. Treasury notes |  | $ | 129 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 130 |
U.S. Treasury bills |  | 4,948 |  |  | — |  |  | — |  |  | 4,948 |
Money market mutual funds |  | 4,765 |  |  | — |  |  | — |  |  | 4,765 |
Other short-term interest-bearing securities |  | 2 |  |  | — |  |  | — |  |  | 2 |
Total available-for-sale investments |  | $ | 9,844 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 9,845 |
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 locations |  | 2021 |  | 2020
Cash and cash equivalents |  | $ | 7,256 |  |  | $ | 5,464 |
Marketable securities |  | 48 |  |  | 4,381 |
Total available-for-sale investments |  | $ | 7,304 |  |  | $ | 9,845 |
Cash and cash equivalents in the above table excludes bank account cash of $733 million and $802 million as of December 31, 2021 and 2020, respectively. The fair values of available-for-sale investments by contractual maturity were as follows (in millions):
|  | December 31,
Contractual maturities |  | 2021 |  | 2020
Maturing in one year or less |  | $ | 7,304 |  |  | $ | 9,795 |
Maturing after one year through three years |  | — |  |  | 50 |
Total available-for-sale investments |  | $ | 7,304 |  |  | $ | 9,845 |
For the years ended December 31, 2021 and 2020, realized gains and losses on interest-bearing securities were not material. For the year ended December 31, 2019, realized gains on interest-bearing securities were $92 million and realized losses were not material. Realized gains and losses on interest-bearing securities are recorded in 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. Equity securities We held investments in equity securities with readily determinable fair values of $611 million and $477 million as of December 31, 2021 and 2020, respectively, which are included in Other noncurrent assets in the Consolidated Balance Sheets. For the years ended December 31, 2021, 2020 and 2019, net unrealized gains on publicly traded securities were $161 million, $174 million and $112 million, respectively. Realized gains and losses on publicly traded securities for the years ended December 31, 2021, 2020 and 2019, were not material. We held investments of $262 million and $203 million in equity securities without readily determinable fair values as of December 31, 2021 and 2020, respectively, which are included in Other noncurrent ass ets in the Consolidated Balance Sheets. For the year ended December 31, 2021, gains due to upward adjustments on these securities were $152 million, and gains realized on the dispositions of these securities were $41 million; for the years ended December 31, 2020 and 2019, gains due to upward adjustments and gains realized upon dispositions of these securities were not material. For the years ended December 31, 2021, 2020 and 2019, downward adjustments to the carrying values of these securities were not material. Adjustments were based on observable price transactions. Equity Method Investments BeiGene, Ltd. 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 noncurrent assets in the Consolidated Balance Sheets. Our equity investment is accounted for under the equity method of accounting due to our ability to exert significant influence over BeiGene. See Note 1, Summary of significant accounting policies, for factors in concluding our ability to exert significant influence over BeiGene. The fair value of equity securities acquired exceeded our proportionate share of the carrying value of the underlying net as sets of BeiGene by approximately $2.4 billion. The equity method of accounting requires us to identify and allocate amounts to 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 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 years ended December 31, 2021 and 2020, the carrying value of the investment was reduced by our share of BeiGene’s net losses of $265 million and $229 million, respectively, and amortization of the basis difference of $172 million and $109 million, respectively. During the years ended December 31, 2021 and 2020, we increased the carrying value by $50 million and $569 million, respectively, as a result of our purchase of additional shares of BeiGene. In addition, during the years ended December 31, 2021 and 2020, the carrying value increased by $265 million and $34 million, respectively, from the impact of other BeiGene ownership transactions. As of December 31, 2021 and 2020, our ownership interest in BeiGene was approximately 18.4% and 20.5%, respectively. As of December 31, 2021 and 2020, the carrying value of our investment in BeiGene was $2.8 billion and $2.9 billion, respectively. As of December 31, 2021 and 2020, the fair value of our investment in BeiGene was $5.1 billion and $4.9 billion, respectively. We believe that as of December 31, 2021, 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. Neumora Therapeutics, Inc. On September 30, 2021, we acquired an approximately 25.9% ownership interest in Neumora, a privately held company, for $257 million, which is included in Other noncurrent assets in the Consolidated Balance Sheets, in exchange for a $100 million cash payment and $157 million in noncash consideration primarily related to future services. Although our equity investment provides us with the ability to exercise significant influence over Neumora, we have elected the fair value option to account for our equity investment. Under the fair value option, changes in the fair value of the investment are recognized through earnings each reporting period. We believe the fair value option best reflects the economics of the underlying transaction. As of December 31, 2021, our ownership interest in Neumora remained at approximately 25.9%, and the fair value of our investment was $220 million. Accordingly, during the fourth quarter of 2021, we recognized a loss of $37 million for the reduction in the fair value in Other income, net, in the Consolidated Statements of Income. For information on determination of fair values, see Note 17, Fair value measurement. Limited partnerships We held limited partnership investments of $573 million and $496 million as of December 31, 2021 and 2020, respectively, which are included in Other noncurrent assets in the Consolidated Balance Sheets. These investments, which are 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, 2021, unfunded additional commitments to be made for these investments during the next several years were $185 million. For the years ended December 31, 2021, 2020 and 2019, net gains recognized from our limited partnership investments were $143 million, $241 million and $27 million, respectively.

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