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Financial Instruments | 12 Months Ended
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Dec. 31, 2020
Investments, All Other Investments [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 consolidated balance sheets:
|  | As of December 31,
(In millions) |  | 2020 |  | 2019
Commercial paper |  | $ | 61.1 |  |  | $ | 384.4 |
Overnight reverse repurchase agreements |  | 37.4 |  |  | 368.8 |
Money market funds |  | 505.1 |  |  | 1,628.5 |
Short-term debt securities |  | 23.3 |  |  | 159.4 |
Total |  | $ | 626.9 |  |  | $ | 2,541.1 |
The carrying values of our commercial paper, including accrued interest, overnight reverse repurchase agreements, money market funds and our 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 consolidated statements of income. The following tables summarize our marketable debt and equity securities, classified as available for sale:
|  | As of December 31, 2020
(In millions) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Corporate debt securities |  |  |  |  |  |  |  |
Current |  | $ | 897.8 |  |  | $ | 0.4 |  |  | $ | (0.2) |  |  | $ | 898.0 |
Non-current |  | 402.5 |  |  | 1.1 |  |  | (0.1) |  |  | 403.5 |
Government securities |  |  |  |  |  |  |  |
Current |  | 380.6 |  |  | 0.1 |  |  | — |  |  | 380.7 |
Non-current |  | 245.9 |  |  | 0.5 |  |  | — |  |  | 246.4 |
Mortgage and other asset backed securities |  |  |  |  |  |  |  |
Current |  | 0.2 |  |  | — |  |  | — |  |  | 0.2 |
Non-current |  | 122.1 |  |  | 0.2 |  |  | (0.1) |  |  | 122.2 |
Total marketable debt securities |  | $ | 2,049.1 |  |  | $ | 2.3 |  |  | $ | (0.4) |  |  | $ | 2,051.0 |
Marketable equity securities, current |  | $ | 70.6 |  |  | $ | 15.9 |  |  | $ | — |  |  | $ | 86.5 |
Marketable equity securities, non-current |  | $ | 1,168.9 |  |  | $ | 733.8 |  |  | $ | (14.9) |  |  | $ | 1,887.8 |
|  | As of December 31, 2019
(In millions) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Corporate debt securities |  |  |  |  |  |  |  |
Current |  | $ | 1,057.2 |  |  | $ | 1.0 |  |  | $ | — |  |  | $ | 1,058.2 |
Non-current |  | 633.9 |  |  | 3.0 |  |  | — |  |  | 636.9 |
Government securities |  |  |  |  |  |  |  |
Current |  | 502.9 |  |  | 0.4 |  |  | — |  |  | 503.3 |
Non-current |  | 510.1 |  |  | 0.8 |  |  | (0.3) |  |  | 510.6 |
Mortgage and other asset backed securities |  |  |  |  |  |  |  |
Current |  | 0.7 |  |  | — |  |  | — |  |  | 0.7 |
Non-current |  | 260.2 |  |  | 0.8 |  |  | (0.4) |  |  | 260.6 |
Total marketable debt securities |  | $ | 2,965.0 |  |  | $ | 6.0 |  |  | $ | (0.7) |  |  | $ | 2,970.3 |
Marketable equity securities, non-current |  | $ | 218.4 |  |  | $ | 132.1 |  |  | $ | (13.0) |  |  | $ | 337.5 |
Summary of Contractual Maturities: Available-for-Sale Debt 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 December 31, 2020 |  | As of December 31, 2019
(In millions) |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost
Due in one year or less |  | $ | 1,278.9 |  |  | $ | 1,278.6 |  |  | $ | 1,562.2 |  |  | $ | 1,560.8 |
Due after one year through five years |  | 722.6 |  |  | 721.3 |  |  | 1,234.5 |  |  | 1,230.4 |
Due after five years |  | 49.5 |  |  | 49.2 |  |  | 173.6 |  |  | 173.8 |
Total marketable debt securities |  | $ | 2,051.0 |  |  | $ | 2,049.1 |  |  | $ | 2,970.3 |  |  | $ | 2,965.0 |
The average maturity of our marketable debt securities available-for-sale as of December 31, 2020 and 2019, was approximately 11 months and 14 months, respectively. 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 Years Ended December 31,
(In millions) |  | 2020 |  | 2019 |  | 2018
Proceeds from maturities and sales |  | $ | 7,299.4 |  |  | $ | 6,007.0 |  |  | $ | 9,173.7 |
Realized gains |  | 17.7 |  |  | 6.0 |  |  | 3.2 |
Realized losses |  | 26.0 |  |  | 1.5 |  |  | 11.7 |
Realized losses for the year ended December 31, 2020, 2019 and 2018, primarily relate to sales of corporate bonds, agency mortgage-backed securities and other asset-backed securities. Strategic Investments As of December 31, 2020 and 2019, our strategic investment portfolio was comprised of investments totaling $2,024.6 million and $393.9 million, respectively, which are included in investments and other assets in our consolidated balance sheets. 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 consolidated financial statements, venture capital funds where the underlying investments are in equity securities of certain biotechnology companies and non-marketable equity securities. The increase in our strategic investment portfolio for the year ended December 31, 2020, was primarily due to our purchases of Sage, Denali and Sangamo common stock, as discussed below. These purchases were reflected as net cash flows used in investing activities within the consolidated statement of cash flows. Sage Therapeutics, Inc. In November 2020 we entered into a global collaboration and license agreement with Sage. In connection with the closing of this collaboration in December 2020 we purchased approximately 6.2 million shares of Sage common stock. This investment is classified as a Level 2 marketable equity security due to certain holding period restrictions and is remeasured each reporting period and carried at fair value. The effects of certain holding period restrictions on the investment 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 Sage common stock and a dividend yield of zero based upon the fact that Sage and similar companies generally have not historically granted cash dividends. For additional information on our collaboration agreement with Sage, please read Note 18, Collaborative and Other Relationships, to these consolidated financial statements. Denali Therapeutics Inc. In August 2020 we entered into a collaboration and license agreement with Denali. As part of this collaboration we purchased approximately 13 million shares of Denali common stock in September 2020. This investment is classified as a Level 2 marketable equity security due to certain holding period restrictions and is remeasured each reporting period and carried at fair value. The effects of certain holding period restrictions on the investment 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 Denali common stock and a dividend yield of zero based upon the fact that Denali and similar companies generally have not historically granted cash dividends. For additional information on our collaboration agreement with Denali, please read Note 18, Collaborative and Other Relationships, to these consolidated financial statements. Sangamo Therapeutics, Inc. In February 2020 we entered into a collaboration and license agreement with Sangamo. In connection with the closing of this transaction in April 2020 we purchased approximately 24 million shares of Sangamo common stock. This equity method investment will be remeasured each reporting period and carried at fair value due to our election of the fair value option. The effects of certain holding period restrictions on the investment 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 Sangamo common stock and a dividend yield of zero based upon the fact that Sangamo and similar companies generally have not historically granted cash dividends. For additional information on our collaboration agreement with Sangamo, please read Note 18, Collaborative and Other Relationships, to these consolidated financial statements. Samsung Bioepis In June 2018 we exercised our option under our joint venture agreement with Samsung BioLogics to increase our ownership percentage in Samsung Bioepis from approximately 5.0% to approximately 49.9%. The share purchase transaction was completed in November 2018 and, upon closing, we paid 759.5 billion South Korean won ($676.6 million) to Samsung BioLogics. As of December 31, 2020 and 2019, the carrying value of our investment in Samsung Bioepis totaled 673.8 billion South Korean won ($620.2 million) and 670.8 billion South Korean won ($580.2 million), respectively, which is classified as a component of investments and other assets within our consolidated balance sheets. For additional information on our collaboration arrangements with Samsung Bioepis, please read Note 18, Collaborative and Other Relationships, to these consolidated financial statements.

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- 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 320 -URI http://asc.fasb.org/topic&trid=2196928 + Details
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