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Investments | 6 Months Ended
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Jun. 30, 2024
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, which are considered available-for-sale, by type of security were as follows (in millions):
Types of securities as of June 30, 2024 |  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair values
U.S. Treasury bills |  | $ | 995 |  |  | $ | — |  |  | $ | — |  |  | $ | 995 |
Money market mutual funds |  | 7,678 |  |  | — |  |  | — |  |  | 7,678 |
Other short-term interest-bearing securities |  | 139 |  |  | — |  |  | — |  |  | 139 |
Total interest-bearing securities |  | $ | 8,812 |  |  | $ | — |  |  | $ | — |  |  | $ | 8,812 |
Types of securities as of December 31, 2023 |  | Amortized cost |  | Gross unrealized gains |  | Gross unrealized losses |  | Fair values
U.S. Treasury bills |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Money market mutual funds |  | 10,266 |  |  | — |  |  | — |  |  | 10,266 |
Other short-term interest-bearing securities |  | 138 |  |  | — |  |  | — |  |  | 138 |
Total interest-bearing securities |  | $ | 10,404 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,404 |
The fair values of interest-bearing securities by location in the Condensed Consolidated Balance Sheets were as follows (in millions):
Condensed Consolidated Balance Sheets locations |  | June 30, 2024 |  | December 31, 2023
Cash and cash equivalents |  | $ | 8,812 |  |  | $ | 10,404 |
Total interest-bearing securities |  | $ | 8,812 |  |  | $ | 10,404 |
Cash and cash equivalents in the above table excludes bank account cash of $489 million and $540 million as of June 30, 2024 and December 31, 2023, respectively. All interest-bearing securities as of June 30, 2024 and December 31, 2023, mature in one year or less. For the three and six months ended June 30, 2024 and 2023, realized gains and losses on interest-bearing securities were not material. Realized gains and losses on interest-bearing securities are recorded in Other (expense) income, net, in the Condensed 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 BeiGene, Ltd. Our ownership interest in BeiGene was approximately 18% as of both June 30, 2024 and December 31, 2023, and the fair values of our investment were $2.7 billion and $3.4 billion, respectively, which are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. In the first quarter of 2023, we began to account for our ownership interest as an equity security with a readily determinable fair value, with changes in fair value recorded in Other (expense) income, net. See Note 11, Fair value measurement. During the three months ended June 30, 2024 and 2023, we recognized unrealized losses of $260 million and $705 million, respectively, recorded in Other (expense) income, net, in our Condensed Consolidated Statements of Income. During the six months ended June 30, 2024 and 2023, we recognized unrealized losses of $714 million and unrealized gains of $1.2 billion, respectively, recorded in Other (expense) income, net, in our Condensed Consolidated Statements of Income. Subject to certain exceptions or otherwise agreed to by BeiGene, while Amgen holds at least 5.0% of BeiGene’s outstanding common stock, (A) we may only sell our BeiGene equity investment via: (i) a registered public offering, (ii) a sale under Rule 144 of the Securities Act of 1933 (the “Securities Act”) or (iii) a private sale exempt from registration requirements under the Securities Act, and (B) we may not sell more than 5.0% of BeiGene’s outstanding common stock in any rolling 12-month period. Other equity securities Excluding our equity investments in BeiGene (discussed above) and Neumora (discussed below), we held investments in other equity securities with readily determinable fair values (publicly traded securities) of $419 million and $494 million as of June 30, 2024 and December 31, 2023, respectively, which are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. During the three months ended June 30, 2024 and 2023, net unrealized losses and gains on these publicly traded securities were a net loss of $50 million and net gain of $3 million, respectively. During the six months ended June 30, 2024 and 2023, net unrealized gains and losses on these publicly traded securities were not material. Net realized gains and losses on sales of publicly traded securities for the three and six months ended June 30, 2024 and 2023 were not material. We held investments of $330 million and $309 million in equity securities without readily determinable fair values as of June 30, 2024 and December 31, 2023, respectively, which are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. During the three and six months ended June 30, 2024 and 2023, upward and downward adjustments on these securities were not material. Adjustments were based on observable price transactions. Net realized gains and losses on sales of securities without readily determinable fair values for the three and six months ended June 30, 2024 and 2023, were not material. Equity method investments Neumora Therapeutics, Inc. As of June 30, 2024 and December 31, 2023, our ownership interests in Neumora were approximately 22.2% and 23.2%, respectively, and the fair values of our investment were $348 million and $603 million, respectively, which are included in Other noncurrent assets in the Condensed Consolidated Balance Sheets. During the three months ended June 30, 2024 and 2023, we recognized unrealized losses and gains of $138 million loss and $28 million gain, respectively, and during the six months ended June 30, 2024 and 2023, we recognized unrealized losses of $255 million and $19 million, respectively. Although our equity investment qualifies us for the equity method of accounting, we have elected the fair value option to account for our investment. Under the fair value option, changes in the fair value of the investment are recognized through earnings in Other (expense) income, net, in our Condensed Consolidated Statements of Income each reporting period. See Note 11, Fair value measurement. We believe the fair value option best reflects the economics of the underlying transaction. We are contractually restricted from selling more than 5.0% of Neumora’s outstanding common stock in any rolling 12-month period for as long as we hold at least 10.0% of their outstanding common stock, subject to certain exceptions or otherwise agreed to by Neumora. Limited partnerships We held limited partnership investments of $290 million and $251 million as of June 30, 2024 and December 31, 2023, respectively, which are included in Other noncurrent assets in the Condensed 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 June 30, 2024, unfunded additional commitments to be made for these investments during the next several years amounted to $153 million. For the three and six months ended June 30, 2024 and 2023, net unrealized gains and losses from our limited partnership investments were not material.

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