Financial Instruments and Fair Value

9 Months Ended

Sep. 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):


	September 30, 2025
	Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
U.S. government and agency securities	$	560.0	$	0.6	$	(0.1)	$	560.5
Commercial paper	370.4		0.1		—		370.5
Corporate debt securities	285.2		0.3		(0.1)		285.4
Certificates of deposit and term deposits	102.2		0.1		—		102.3

Total available-for-sale investments	1,317.8		1.1		(0.2)		1,318.7
Marketable equity securities							98.1
Total short-term and long-term investments	$	1,317.8	$	1.1	$	(0.2)	$	1,416.8


	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):


	September 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	$	560.5	$	(0.1)	$	—	$	—	$	560.5	$	(0.1)
Commercial paper	370.5		—		—		—		370.5		—
Corporate debt securities	285.4		(0.1)		—		—		285.4		(0.1)
Certificates of deposit and term deposits	102.3		—		—		—		102.3		—
Total available-for-sale investments	$	1,318.7	$	(0.2)	$	—	$	—	$	1,318.7	$	(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):


	September 30, 2025		December 31, 2024
Due within one year	$	1,029.6	$	1,126.4
Due within one to three years	289.1		—
Total	$	1,318.7	$	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—net on the condensed consolidated statements of income. We recognized a $14.1 million and $10.7 million gain during the three and nine months ended September 30, 2025, respectively. We recognized a $11.1 million and $11.2 million gain during the three and nine months ended September 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):


	September 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	$	170.5	$	170.5	$	—	$	—	$	296.1	$	296.1	$	—	$	—
Commercial paper	34.0		—		34.0		—		59.7		—		59.7		—
Certificates of deposit and term deposits	4.5		—		4.5		—		—		—		—		—
Total cash equivalents	209.0		170.5		38.5		—		355.8		296.1		59.7		—
Short-term investments:
U.S. government and agency securities	437.1		437.1		—		—		469.5		464.5		5.0		—
Commercial paper	370.5		—		370.5		—		428.7		—		428.7		—
Corporate debt securities	119.7		—		119.7		—		166.4		—		166.4		—
Certificates of deposit and term deposits	102.3		—		102.3		—		61.8		—		61.8		—
Marketable equity securities	98.1		98.1		—		—		64.2		64.2		—		—
Total short-term investments	1,127.7		535.2		592.5		—		1,190.6		528.7		661.9		—
Long-term investments:
U.S. government and agency securities	123.4		113.3		10.1		—		—		—		—		—
Corporate debt securities	165.7		—		165.7		—		—		—		—		—
Total long-term investments	289.1		113.3		175.8		—		—		—		—		—
Total	$	1,625.8	$	819.0	$	806.8	$	—	$	1,546.4	$	824.8	$	721.6	$	—

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