XML 47 R15.htm IDEA: XBRL DOCUMENT
v3.19.1

Financial Instruments | 3 Months Ended
--- | ---
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract] |
Financial Instruments | Financial Instruments The following table summarizes our financial assets with maturities of less than 90 days from the date of purchase included in cash and cash equivalents in our condensed consolidated balance sheets:
(In millions) | As of March 31, 2019 |  | As of December 31, 2018
Commercial paper | $ | 446.0 |  |  | $ | 231.2 |
Overnight reverse repurchase agreements | 192.7 |  |  | — |
Money market funds | 1,074.4 |  |  | 279.5 |
Short-term debt securities | 168.8 |  |  | 194.8 |
Total | $ | 1,881.9 |  |  | $ | 705.5 |
The carrying values of our commercial paper, including accrued interest, overnight reverse repurchase agreements, money market funds and short-term debt securities approximate fair value due to their short-term maturities. Our marketable equity securities gains (losses) are recorded in other income (expense), net in our condensed consolidated statements of income. The following tables summarize our marketable debt and equity securities:
As of March 31, 2019 (In millions) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Corporate debt securities |  |  |  |  |  |  |
Current | $ | 981.0 |  |  | $ | 0.5 |  |  | $ | (0.1 | ) |  | $ | 981.4 |
Non-current | 852.0 |  |  | 2.8 |  |  | (0.5 | ) |  | 854.3 |
Government securities |  |  |  |  |  |  |
Current | 683.6 |  |  | 0.2 |  |  | (0.1 | ) |  | 683.7 |
Non-current | 237.5 |  |  | 0.3 |  |  | (0.2 | ) |  | 237.6 |
Mortgage and other asset backed securities |  |  |  |  |  |  |
Current | 0.7 |  |  | — |  |  | — |  |  | 0.7 |
Non-current | 280.3 |  |  | 0.8 |  |  | (0.3 | ) |  | 280.8 |
Total marketable debt securities | $ | 3,035.1 |  |  | $ | 4.6 |  |  | $ | (1.2 | ) |  | $ | 3,038.5 |
Marketable equity securities, non-current | 489.3 |  |  | 421.7 |  |  | (7.0 | ) |  | 904.0 |
As of December 31, 2018 (In millions) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Corporate debt securities |  |  |  |  |  |  |
Current | $ | 1,608.4 |  |  | $ | — |  |  | $ | (0.9 | ) |  | $ | 1,607.5 |
Non-current | 854.9 |  |  | 0.7 |  |  | (3.9 | ) |  | 851.7 |
Government securities |  |  |  |  |  |  |
Current | 706.1 |  |  | 0.1 |  |  | (0.4 | ) |  | 705.8 |
Non-current | 264.0 |  |  | 0.1 |  |  | (0.3 | ) |  | 263.8 |
Mortgage and other asset backed securities |  |  |  |  |  |  |
Current | 0.1 |  |  | — |  |  | — |  |  | 0.1 |
Non-current | 260.5 |  |  | 0.4 |  |  | (0.5 | ) |  | 260.4 |
Total marketable debt securities | $ | 3,694.0 |  |  | $ | 1.3 |  |  | $ | (6.0 | ) |  | $ | 3,689.3 |
Marketable equity securities, non-current | 496.2 |  |  | 127.7 |  |  | (8.5 | ) |  | 615.4 |
Summary of Contractual Maturities: Available-for-Sale Securities The estimated fair value and amortized cost of our marketable debt securities available-for-sale by contractual maturity are summarized as follows:
| As of March 31, 2019 |  | As of December 31, 2018
(In millions) | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value
Due in one year or less | $ | 1,665.3 |  |  | $ | 1,665.8 |  |  | $ | 2,314.6 |  |  | $ | 2,313.4 |
Due after one year through five years | 1,234.8 |  |  | 1,237.8 |  |  | 1,235.9 |  |  | 1,232.7 |
Due after five years | 135.0 |  |  | 134.9 |  |  | 143.5 |  |  | 143.2 |
Total available-for-sale securities | $ | 3,035.1 |  |  | $ | 3,038.5 |  |  | $ | 3,694.0 |  |  | $ | 3,689.3 |
The average maturity of our marketable debt securities available-for-sale as of March 31, 2019 and December 31, 2018, were approximately 12 months. Proceeds from Marketable Debt Securities The proceeds from maturities and sales of marketable debt securities and resulting realized gains and losses are summarized as follows:
| For the Three Months Ended March 31,
(In millions) | 2019 |  | 2018
Proceeds from maturities and sales | $ | 1,489.2 |  |  | $ | 4,068.9 |
Realized gains | $ | 0.6 |  |  | $ | 1.8 |
Realized losses | $ | (0.3 | ) |  | $ | (9.4 | )
Strategic Investments As of March 31, 2019, our strategic investment portfolio was comprised of investments totaling $1,049.7 million, of which $90.1 million was reflected as a component of other current assets in our condensed consolidated balance sheet, with the remaining balance included in investments and other assets. As of December 31, 2018, our strategic investment portfolio was comprised of investments totaling $676.3 million, which is included in investments and other assets in our condensed consolidated balance sheet. Our strategic investment portfolio includes investments in equity securities of certain biotechnology companies, which are reflected within our disclosures included in Note 7, Fair Value Measurements, to these condensed consolidated financial statements, venture capital funds where the underlying investments are in equity securities of certain biotechnology companies and non-marketable equity securities. Our investments in equity securities include approximately 11.5 million shares of Ionis' common stock, acquired in June 2018 at a cost of approximately $625.0 million, which is remeasured each reporting period and carried at fair value. This investment is classified as a Level 2 marketable security due to certain holding period restrictions. The remainder of our investments in equity securities of certain publicly-traded biotechnology companies are regularly measured and carried at fair value and classified as Level 1. The effect of the holding period restrictions on our Ionis stock valuation are estimated using an option pricing valuation model. The most significant assumptions within the model are the term of the restrictions and the stock price volatility, which is based upon historical volatility of similar companies. We also use a constant maturity risk-free interest rate to match the remaining term of the restrictions on our investment in Ionis' common stock and a dividend yield of zero based upon the fact that Ionis and similar companies generally have not historically granted cash dividends. The increase in our strategic investment portfolio primarily reflects an increase in the fair value in our investment in Ionis' common stock as well as an increase in the value of a non-marketable equity security. For additional information on our June 2018 investment in Ionis' common stock, please read Note 19, Collaborative and Other Relationships, to our consolidated financial statements included in our 2018 Form 10-K.

X
- Definition The entire disclosure of cash, cash equivalents, and debt and equity securities, including any unrealized or realized gain (loss). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 305 -URI http://asc.fasb.org/topic&trid=2122426 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 + Details
Name: | us-gaap_CashCashEquivalentsAndMarketableSecuritiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration