Financial Instruments and Fair Value

3 Months Ended

Mar. 31, 2025

Financial Instruments and Fair Value [Abstract]

Short-Term and Long-Term Investments

Our short-term and long-term investments comprised of available-for-sale investments and marketable equity securities. The following tables summarize our short-term and long-term investments (in millions):


	March 31, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. government and agency securities	$	486.5	$	0.2	$	—	$	486.7
Commercial paper	432.8		0.1		(0.1)		432.8
Corporate debt securities	158.2		—		(0.1)		158.1
Certificates of deposit and term deposits	73.9		—		—		73.9

Total available-for-sale investments	1,151.4		0.3		(0.2)		1,151.5
Marketable equity securities							67.6
Total short-term and long-term investments	$	1,151.4	$	0.3	$	(0.2)	$	1,219.1


	December 31, 2024
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. government and agency securities	$	469.1	$	0.4	$	—	$	469.5
Commercial paper	428.7		0.2		(0.2)		428.7
Corporate debt securities	166.4		0.1		(0.1)		166.4
Certificates of deposit and term deposits	61.8		—		—		61.8
Total available-for-sale investments	1,126.0		0.7		(0.3)		1,126.4
Marketable equity securities							64.2
Total short-term and long-term investments	$	1,126.0	$	0.7	$	(0.3)	$	1,190.6

The following tables show the gross unrealized losses and the related fair values of our available-for-sale investments that have been in a continuous unrealized loss position (in millions):


	March 31, 2025
	Less Than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government and agency securities	$	119.7	$	—	$	—	$	—	$	119.7	$	—
Commercial paper	260.5		(0.1)		—		—		260.5		(0.1)
Corporate debt securities	83.8		(0.1)		—		—		83.8		(0.1)
Certificates of deposit and term deposits	9.5		—		—		—		9.5		—
Total available-for-sale investments	$	473.5	$	(0.2)	$	—	$	—	$	473.5	$	(0.2)


	December 31, 2024
	Less Than 12 Months				12 Months or Greater				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government and agency securities	$	27.8	$	—	$	—	$	—	$	27.8	$	—
Commercial paper	149.4		(0.2)		—		—		149.4		(0.2)
Corporate debt securities	63.5		(0.1)		—		—		63.5		(0.1)
Certificates of deposit and term deposits	10.9		—		—		—		10.9		—
Total available-for-sale investments	$	251.6	$	(0.3)	$	—	$	—	$	251.6	$	(0.3)

The contractual maturities of our available-for-sale investments were (in millions):


	March 31, 2025		December 31, 2024
Due within one year	$	1,116.3	$	1,126.4
Due within one to three years	35.2		—
Total	$	1,151.5	$	1,126.4

Available-for-sale investments are reported at fair value, with unrealized gains and losses and the related tax impact included as a separate component of stockholders’ equity and in comprehensive income. We do not intend to sell any of the securities in an unrealized loss position and it is not more likely than not that we would be required to sell these securities before recovery of their amortized cost basis, which may be at maturity.

Realized gains and losses on available-for-sale investments were insignificant in the periods presented.

Our marketable equity securities were $67.6 million and $64.2 million as of March 31, 2025 and December 31, 2024. The changes in fair value of our marketable equity securities are recorded in other income (expense)—net on the condensed

consolidated statements of income. We recognized a $14.7 million loss and $0.3 million gain during the three months ended March 31, 2025 and 2024, respectively.

Assets Measured at Fair Value on a Recurring Basis

The following tables present the fair value of our financial assets measured at fair value on a recurring basis (in millions):


	March 31, 2025								December 31, 2024
	Aggregate Fair Value		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Remaining Inputs		Significant Other Unobservable Remaining Inputs		Aggregate Fair Value		Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Remaining Inputs		Significant Other Unobservable Remaining Inputs
			(Level 1)		(Level 2)		(Level 3)				(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Money market funds	$	260.3	$	260.3	$	—	$	—	$	296.1	$	296.1	$	—	$	—
Commercial paper	86.5		—		86.5		—		59.7		—		59.7		—
Total cash equivalents	346.8		260.3		86.5		—		355.8		296.1		59.7		—
Short-term investments:
U.S. government and agency securities	451.5		446.5		5.0		—		469.5		464.5		5.0		—
Commercial paper	432.8		—		432.8		—		428.7		—		428.7		—
Corporate debt securities	158.1		—		158.1		—		166.4		—		166.4		—
Certificates of deposit and term deposits	73.9		—		73.9		—		61.8		—		61.8		—
Marketable equity securities	67.6		67.6		—		—		64.2		64.2		—		—
Total short-term investments	1,183.9		514.1		669.8		—		1,190.6		528.7		661.9		—
Long-term investments:
U.S. government and agency securities	35.2		35.2		—		—		—		—		—		—
Total	$	1,565.9	$	809.6	$	756.3	$	—	$	1,546.4	$	824.8	$	721.6	$	—

There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2025 and year ended December 31, 2024.