XML 45 R14.htm IDEA: XBRL DOCUMENT
v3.21.2

Financial Instruments | 9 Months Ended
--- | ---
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract] |
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 September 30, 2021 |  | As of December 31, 2020
Commercial paper |  | $ | 167.3 |  |  | $ | 61.1 |
Overnight reverse repurchase agreements |  | 213.6 |  |  | 37.4 |
Money market funds |  | 485.6 |  |  | 505.1 |
Short-term debt securities |  | 112.4 |  |  | 23.3 |
Total |  | $ | 978.9 |  |  | $ | 626.9 |
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, classified as available for sale:
|  | As of September 30, 2021
(In millions) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Marketable debt securities |  |  |  |  |  |  |  |
Corporate debt securities: |  |  |  |  |  |  |  |
Current |  | $ | 1,135.8 |  |  | $ | 0.3 |  |  | $ | (0.4) |  |  | $ | 1,135.7 |
Non-current |  | 350.7 |  |  | 0.5 |  |  | (0.1) |  |  | 351.1 |
Government securities: |  |  |  |  |  |  |  |
Current |  | 277.4 |  |  | 0.1 |  |  | — |  |  | 277.5 |
Non-current |  | 435.5 |  |  | 0.1 |  |  | (0.2) |  |  | 435.4 |
Mortgage and other asset backed securities: |  |  |  |  |  |  |  |
Current |  | 0.1 |  |  | — |  |  | — |  |  | 0.1 |
Non-current |  | 182.0 |  |  | 0.1 |  |  | (0.3) |  |  | 181.8 |
Total marketable debt securities |  | $ | 2,381.5 |  |  | $ | 1.1 |  |  | $ | (1.0) |  |  | $ | 2,381.6 |
Marketable equity securities |  |  |  |  |  |  |  |
Marketable equity securities, current |  | $ | 35.5 |  |  | $ | 19.5 |  |  | $ | — |  |  | $ | 55.0 |
Marketable equity securities, non-current |  | 1,133.4 |  |  | 238.4 |  |  | (260.6) |  |  | 1,111.2 |
Total marketable equity securities |  | $ | 1,168.9 |  |  | $ | 257.9 |  |  | $ | (260.6) |  |  | $ | 1,166.2 |
|  | As of December 31, 2020
(In millions) |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Marketable debt securities |  |  |  |  |  |  |  |
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 |  |  |  |  |  |  |  |
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 |
Total marketable equity securities |  | $ | 1,239.5 |  |  | $ | 749.7 |  |  | $ | (14.9) |  |  | $ | 1,974.3 |
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 September 30, 2021 |  | As of December 31, 2020
(In millions) |  | Estimated Fair Value |  | Amortized Cost |  | Estimated Fair Value |  | Amortized Cost
Due in one year or less |  | $ | 1,413.3 |  |  | $ | 1,413.4 |  |  | $ | 1,278.9 |  |  | $ | 1,278.6 |
Due after one year through five years |  | 925.5 |  |  | 925.3 |  |  | 722.6 |  |  | 721.3 |
Due after five years |  | 42.8 |  |  | 42.8 |  |  | 49.5 |  |  | 49.2 |
Total marketable debt securities |  | $ | 2,381.6 |  |  | $ | 2,381.5 |  |  | $ | 2,051.0 |  |  | $ | 2,049.1 |
The average maturity of our marketable debt securities available-for-sale as of September 30, 2021 and December 31, 2020, was approximately 12 months and 11 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 Three Months Ended September 30, |  | For the Nine Months Ended September 30,
(In millions) |  | 2021 |  | 2020 |  | 2021 |  | 2020
Proceeds from maturities and sales |  | $ | 575.4 |  |  | $ | 1,360.9 |  |  | $ | 2,028.1 |  |  | $ | 5,240.7 |
Realized gains |  | 0.1 |  |  | 1.0 |  |  | 0.4 |  |  | 12.8 |
Realized losses |  | (0.5) |  |  | (0.9) |  |  | (1.7) |  |  | (25.2) |
Strategic Investments As of September 30, 2021 and December 31, 2020, our strategic investment portfolio was comprised of investments totaling $1,222.3 million and $2,024.6 million, respectively, which are included in other current assets and investments and other assets in our condensed 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 6, 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. The decrease in our strategic investment portfolio for the three and nine months ended September 30, 2021, was primarily due to decreases i n the fair value of our investments in Denali, Ionis Pharmaceuticals, Inc. (Ionis), Sage and Sangamo common stock. Sage Therapeutics, Inc. In November 2020 we entered into a global collaboration and license agreement with Sage. In connection with the closing of this transaction in December 2020 we purchased $650.0 million of Sage common stock, or approximately 6.2 million shares at approximately $104.14 per share, which are subject to transfer restrictions. 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 arrangement with Sage, please read Note 16, Collaborative and Other Relationships, to these condensed 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 $465.0 million of Denali common stock in September 2020, or approximately 13 million shares at approximately $34.94 per share, which are subject to transfer restrictions. 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's 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 arrangement with Denali, please read Note 16, Collaborative and Other Relationships, to these condensed 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 $225.0 million of Sangamo common stock, or approximately 24 million shares at approximately $9.21 per share, of which approximately 12 million shares remain subject to transfer restrictions as of September 30, 2021. This equity method investment is 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’s 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 arrangement with Sangamo, please read Note 16, Collaborative and Other Relationships, to these condensed consolidated financial statements.

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 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