INVESTMENTS

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Debt Securities

Investments in debt securities at the end of each period were as follows (in millions):


	September 30, 2021								December 31, 2020
Held-to-maturity	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Bank time deposits	$	83.0	$	—	$	—	$	83.0	$	50.0	$	—	$	—		$	50.0








Available-for-sale
Bank time deposits	$	3.0	$	—	$	—	$	3.0	$	24.1	$	—	$	—		$	24.1
Commercial paper	2.9		—		—		2.9		—		—		—			—
U.S. government and agency securities	145.8		1.1		(0.1)		146.8		147.0		2.2		—			149.2

Asset-backed securities	300.2		0.7		(0.8)		300.1		149.6		1.9		—			151.5
Corporate debt securities	946.0		4.4		(1.2)		949.2		600.8		7.5		—			608.3
Municipal securities	2.8		—		—		2.8		2.8		—		—			2.8
Total	$	1,400.7	$	6.2	$	(2.1)	$	1,404.8	$	924.3	$	11.6	$	—		$	935.9

The cost and fair value of investments in debt securities, by contractual maturity, as of September 30, 2021, were as follows:


	Held-to-Maturity				Available-for-Sale
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Due in 1 year or less	$	83.0	$	83.0	$	203.6	$	204.8
Due after 1 year through 5 years	—		—		839.0		841.5
Due after 5 years through 10 years	—		—		4.9		4.9

Instruments not due at a single maturity date	—		—		353.2		353.6
	$	83.0	$	83.0	$	1,400.7	$	1,404.8

Actual maturities may differ from the contractual maturities due to call or prepayment rights.

The following table presents gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2021, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in millions):


	September 30, 2021
	Less than 12 Months				12 Months or Greater				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses


U.S. government and agency securities	$	57.0	$	(0.1)	$	—	$	—	$	57.0	$	(0.1)

Asset-backed securities	190.4		(0.8)		—		—		190.4		(0.8)
Corporate debt securities	335.3		(1.2)		—		—		335.3		(1.2)

	$	582.7	$	(2.1)	$	—	$	—	$	582.7	$	(2.1)

The unrealized losses were largely due to changes in interest rates. There were no investments that were in an unrealized loss position as of December 31, 2020.

Investments in Unconsolidated Entities

The Company has a number of equity investments in privately and publicly held companies. Investments in these unconsolidated entities are recorded in "Long-term Investments" on the consolidated condensed balance sheets, and are as follows:


	September 30, 2021		December 31, 2020
	(in millions)
Equity method investments
Carrying value of equity method investments	$	8.4	$	5.7
Equity securities
Carrying value of non-marketable equity securities	73.6		29.4
Total investments in unconsolidated entities	$	82.0	$	35.1

Non-marketable equity securities consist of investments in privately held companies without readily determinable fair values, and are reported at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. The Company recorded an upward adjustment of $2.6 million during the nine months ended September 30, 2021 based on observable price changes. As of September 30, 2021, the Company had recorded accumulated upward adjustments of $6.4 million based on observable price changes, and accumulated downward adjustments of $2.6 million due to impairments and observable price changes.

In April 2021, the Company recorded $35.9 million related to its investment in a privately-held medical device company (the "Investee"), including an initial cash investment in the Investee's preferred equity securities and other consideration. Edwards also paid $5.7 million, included in "Other Assets," for an exclusive contingent option to acquire the Investee. Edwards may be required to invest up to an additional $9.9 million in the Investee's preferred equity securities and up to an additional $21.8 million for the option to acquire the Investee, depending on the achievement of certain milestones. Edwards also agreed to loan the Investee up to $45 million under a secured promissory note. As of September 30, 2021, there had been no borrowings under this secured promissory note.

The Investee is a variable interest entity ("VIE"); however, Edwards has determined that it is not the primary beneficiary of the VIE since Edwards does not have the power to direct the activities of the Investee that most significantly impact the Investee's economic performance. Edwards accounts for this investment as a non-marketable equity security under the measurement alternative.

During the three and nine months ended September 30, 2021, the gross realized gains or losses from sales of available-for-sale investments were not material.