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AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES | 9 Months Ended
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Sep. 30, 2024
Debt Securities, Available-for-Sale [Abstract] |
AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES | AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES Available-for-Sale Debt Securities During the three months ended March 31, 2024, we sold all of our available-for-sale debt securities and used the proceeds to partially fund our acquisition of CymaBay discussed in Note 6. Acquisitions, Collaborations and Other Arrangements. As such, there are no balances as of September 30, 2024 in the following tables. The following table summarizes our available-for-sale debt securities as of December 31, 2023:
|  |  |  | December 31, 2023
(in millions) |  |  |  |  |  |  |  |  |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
U.S. treasury securities |  |  |  |  |  |  |  |  |  | $ | 427 |  |  | $ | — |  |  | $ | (1) |  |  | $ | 426 |
U.S. government agencies securities |  |  |  |  |  |  |  |  |  | 127 |  |  | — |  |  | — |  |  | 127 |
Non-U.S. government securities |  |  |  |  |  |  |  |  |  | 10 |  |  | — |  |  | — |  |  | 10 |
Certificates of deposit |  |  |  |  |  |  |  |  |  | 45 |  |  | — |  |  | — |  |  | 45 |
Corporate debt securities |  |  |  |  |  |  |  |  |  | 1,455 |  |  | 4 |  |  | (8) |  |  | 1,451 |
Residential mortgage and asset-backed securities |  |  |  |  |  |  |  |  |  | 366 |  |  | 1 |  |  | — |  |  | 367 |
Total |  |  |  |  |  |  |  |  |  | $ | 2,430 |  |  | $ | 5 |  |  | $ | (10) |  |  | $ | 2,426 |
The following table summarizes information related to available-for-sale debt securities that have been in a continuous unrealized loss position, classified by length of time, as of December 31, 2023:
|  | December 31, 2023
|  | Less Than 12 Months |  | 12 Months or Longer |  | Total
(in millions) |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value
U.S. treasury securities |  | $ | — |  |  | $ | 161 |  |  | $ | (1) |  |  | $ | 48 |  |  | $ | (1) |  |  | $ | 209 |
U.S. government agencies securities |  | — |  |  | 106 |  |  | — |  |  | 2 |  |  | — |  |  | 108 |
Non-U.S. government securities |  | — |  |  | 5 |  |  | — |  |  | 5 |  |  | — |  |  | 10 |
Corporate debt securities |  | (1) |  |  | 333 |  |  | (7) |  |  | 546 |  |  | (8) |  |  | 878 |
Residential mortgage and asset-backed securities |  | — |  |  | 123 |  |  | — |  |  | 24 |  |  | — |  |  | 147 |
Total |  | $ | (2) |  |  | $ | 727 |  |  | $ | (8) |  |  | $ | 624 |  |  | $ | (10) |  |  | $ | 1,351 |
The following table summarizes the classification of our available-for-sale debt securities in our Condensed Consolidated Balance Sheets as of December 31, 2023:
(in millions) |  |  |  | December 31, 2023
Cash and cash equivalents |  |  |  | $ | 83 |
Short-term marketable debt securities |  |  |  | 1,179 |
Long-term marketable debt securities |  |  |  | 1,163 |
Total |  |  |  | $ | 2,426 |
Equity Securities The following table summarizes the classification of our equity securities on our Condensed Consolidated Balance Sheets:
(in millions) |  | September 30, 2024 |  | December 31, 2023
Equity securities measured at fair value: |  |  |  |
Cash and cash equivalents |  | $ | 3,502 |  |  | $ | 4,465 |
Prepaid and other current assets |  | 1,660 |  |  | 1,086 |
Other long-term assets |  | 348 |  |  | 656 |
Equity method investments and other equity investments without readily determinable fair values: |  |  |  |
Other long-term assets |  | 382 |  |  | $ | 340 |
Total |  | $ | 5,892 |  |  | $ | 6,547 |
For our equity method investments in Galapagos NV (“Galapagos”) and Arcus Biosciences, Inc. (“Arcus”), we elected and applied the fair value option as we believe it best reflects the underlying economics of these investments. Our investment in Galapagos was classified in Prepaid and other current assets as of September 30, 2024 and December 31, 2023 at $483 million and $686 million, respectively. Our investment in Arcus was classified in Prepaid and other current assets as of September 30, 2024 and December 31, 2023 at $460 million and $283 million, respectively. Unrealized Gains and Losses The following table summarizes net unrealized gains and losses on equity securities still held as of the respective balance sheet dates, included in Other (income) expense, net on our Condensed Consolidated Statements of Operations:
|  | Three Months Ended |  | Nine Months Ended
|  | September 30, |  | September 30,
(in millions) |  | 2024 |  | 2023 |  | 2024 |  | 2023
Unrealized (gain) loss, net |  | $ | (257) |  |  | $ | 128 |  |  | $ | 155 |  |  | $ | 249 |

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