Financial Instruments and Fair Value

6 Months Ended

Jun. 30, 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):


	June 30, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. government and agency securities	$	514.5	$	0.1	$	(0.1)	$	514.5
Commercial paper	433.2		—		(0.1)		433.1
Corporate debt securities	177.6		—		(0.1)		177.5
Certificates of deposit and term deposits	97.3		—		—		97.3

Total available-for-sale investments	1,222.6		0.1		(0.3)		1,222.4
Marketable equity securities							84.0
Total short-term and long-term investments	$	1,222.6	$	0.1	$	(0.3)	$	1,306.4


	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):


	June 30, 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	$	393.7	$	(0.1)	$	—	$	—	$	393.7	$	(0.1)
Commercial paper	355.1		(0.1)		—		—		355.1		(0.1)
Corporate debt securities	119.1		(0.1)		—		—		119.1		(0.1)
Certificates of deposit and term deposits	19.3		—		—		—		19.3		—
Total available-for-sale investments	$	887.2	$	(0.3)	$	—	$	—	$	887.2	$	(0.3)


	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):


	June 30, 2025		December 31, 2024
Due within one year	$	1,110.4	$	1,126.4
Due within one to three years	112.0		—
Total	$	1,222.4	$	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.

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 an $11.3 million gain and $3.4 million loss during the three and six months ended June 30, 2025, respectively. We recognized a $0.2 million loss and $0.1 million gain during the three and six months ended June 30, 2024, respectively.

Assets Measured at Fair Value on a Recurring Basis

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


	June 30, 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	$	251.7	$	251.7	$	—	$	—	$	296.1	$	296.1	$	—	$	—
Commercial paper	36.3		—		36.3		—		59.7		—		59.7		—
Corporate debt securities	2.0		—		2.0		—		—		—		—		—
Total cash equivalents	290.0		251.7		38.3		—		355.8		296.1		59.7		—
Short-term investments:
U.S. government and agency securities	454.0		450.5		3.5		—		469.5		464.5		5.0		—
Commercial paper	433.1		—		433.1		—		428.7		—		428.7		—
Corporate debt securities	126.0		—		126.0		—		166.4		—		166.4		—
Certificates of deposit and term deposits	97.3		—		97.3		—		61.8		—		61.8		—
Marketable equity securities	84.0		84.0		—		—		64.2		64.2		—		—
Total short-term investments	1,194.4		534.5		659.9		—		1,190.6		528.7		661.9		—
Long-term investments:
U.S. government and agency securities	60.5		55.2		5.3		—		—		—		—		—
Corporate debt securities	51.5		—		51.5		—		—		—		—		—
Total long-term investments	112.0		55.2		56.8		—		—		—		—		—
Total	$	1,596.4	$	841.4	$	755.0	$	—	$	1,546.4	$	824.8	$	721.6	$	—

There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2025 and year ended December 31, 2024.