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Cash, Cash Equivalents, and Marketable Debt Securities | 6 Months Ended
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Jun. 30, 2020
Cash Cash Equivalents And Short Term Investments [Abstract] |
Cash, Cash Equivalents, and Marketable Debt Securities |
12. | Cash, Cash Equivalents, and Marketable Debt Securities
The following table shows the Company’s cash and available-for-sale (AFS) debt securities by major asset category at June 30, 2020 and December 31, 2019 (in millions):
|  | June 30, 2020 |
|  | Adjusted Cost Basis |  |  | Unrealized Gain |  |  | Unrealized Loss |  |  | Fair Value |  |  | Cash and Cash Equivalents |  |  | Short-Term Marketable Debt Securities |  |  | Long-Term Marketable Debt Securities |
Cash and cash equivalents |  | $ | 824.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 824.3 |  |  | $ | 824.3 |  |  | $ | — |  |  | $ | — |
Level 1 (a): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  |  | 29.0 |  |  |  | — |  |  |  | — |  |  |  | 29.0 |  |  |  | 29.0 |  |  |  | — |  |  |  | — |
U.S. Treasury securities |  |  | 27.8 |  |  |  | 0.3 |  |  |  | — |  |  |  | 28.1 |  |  |  | — |  |  |  | 17.3 |  |  |  | 10.8 |
Subtotal |  |  | 56.8 |  |  |  | 0.3 |  |  |  | — |  |  |  | 57.1 |  |  |  | 29.0 |  |  |  | 17.3 |  |  |  | 10.8 |
Level 2 (b): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Certificates of deposit |  |  | 0.7 |  |  |  | — |  |  |  | — |  |  |  | 0.7 |  |  |  | — |  |  |  | 0.7 |  |  |  | — |
U.S. government agency securities |  |  | 5.6 |  |  |  | — |  |  |  | — |  |  |  | 5.6 |  |  |  | — |  |  |  | 3.0 |  |  |  | 2.6 |
Corporate debt securities |  |  | 88.1 |  |  |  | 0.7 |  |  |  | — |  |  |  | 88.8 |  |  |  | — |  |  |  | 65.9 |  |  |  | 22.9 |
Subtotal |  |  | 94.4 |  |  |  | 0.7 |  |  |  | — |  |  |  | 95.1 |  |  |  | — |  |  |  | 69.6 |  |  |  | 25.5 |
Total |  | $ | 975.5 |  |  | $ | 1.0 |  |  | $ | — |  |  | $ | 976.5 |  |  | $ | 853.3 |  |  | $ | 86.9 |  |  | $ | 36.3 |
|  | December 31, 2019 |
|  | Adjusted Cost Basis |  |  | Unrealized Gain |  |  | Unrealized Loss |  |  | Fair Value (c) |  |  | Cash and Cash Equivalents |  |  | Short-Term Marketable Debt Securities |  |  | Long-Term Marketable Debt Securities |
Cash and cash equivalents |  | $ | 675.6 |  |  |  |  |  |  |  |  |  |  | $ | 675.6 |  |  | $ | 675.6 |  |  | $ | — |  |  | $ | — |
Level 1 (a): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money market funds |  |  | 0.1 |  |  |  | — |  |  |  | — |  |  |  | 0.1 |  |  |  | 0.1 |  |  |  | — |  |  |  | — |
U.S. Treasury securities |  |  | 27.1 |  |  |  | — |  |  |  | — |  |  |  | 27.1 |  |  |  | 3.1 |  |  |  | 11.5 |  |  |  | 12.5 |
Subtotal |  |  | 27.2 |  |  |  |  |  |  |  |  |  |  |  | 27.2 |  |  |  | 3.2 |  |  |  | 11.5 |  |  |  | 12.5 |
Level 2 (b): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Certificates of deposit |  |  | 3.9 |  |  |  | — |  |  |  | — |  |  |  | 3.9 |  |  |  | — |  |  |  | 3.9 |  |  |  | — |
Commercial paper |  |  | 5.6 |  |  |  | — |  |  |  | — |  |  |  | 5.6 |  |  |  | 0.7 |  |  |  | 4.9 |  |  |  | — |
U.S. government agency securities |  |  | 7.0 |  |  |  | — |  |  |  | — |  |  |  | 7.0 |  |  |  | — |  |  |  | 3.0 |  |  |  | 4.0 |
Corporate debt securities |  |  | 106.2 |  |  |  | — |  |  |  | — |  |  |  | 106.2 |  |  |  | — |  |  |  | 64.6 |  |  |  | 41.6 |
Subtotal |  |  | 122.7 |  |  |  |  |  |  |  |  |  |  |  | 122.7 |  |  |  | 0.7 |  |  |  | 76.4 |  |  |  | 45.6 |
Total |  | $ | 825.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 825.5 |  |  | $ | 679.5 |  |  | $ | 87.9 |  |  | $ | 58.1 |
| (a) | Valuations based on quoted prices for identical assets or liabilities in active markets.
| (b) | Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
| (c) | Unrealized gains and losses were insignificant as of December 31, 2019. Therefore, the fair value approximates the adjusted cost basis for each major asset category.
For the three and six months ended June 30, 2020, net realized gains and losses on the sales and maturities of certain marketable debt securities were insignificant. The Company invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy requires securities to be investment grade and limits the amount of credit exposure to any one issuer. The maturities of the Company’s long-term marketable debt securities generally range from one to two years. Fair values were determined for each individual marketable debt security in the investment portfolio. The Company evaluates each individual security to determine whether the security is impaired. An impairment exists when a security’s fair value is below its amortized cost basis. The Company reviews each impaired investment to determine if the decline in fair value below the amortized cost basis resulted from a credit loss or other factors. If the impairment of a marketable debt security (or a portion of the impairment) is due to credit factors of the issuer, the Company records an allowance for credit losses. Non-credit related impairments are recorded in Other Comprehensive Income (OCI). PCA reviews factors such as the duration and extent to which the fair value of the marketable debt security is less than its cost, the financial condition of the issuer and any changes thereto, the general market condition in which the issuer operates, and ability of the issuer to make all required payments of the marketable debt security. PCA utilizes various credit rating services to provide information on the impaired investment of a particular issuer. As of June 30, 2020 and December 31, 2019, we do not consider any of our marketable debt securities to be other-than-temporarily impaired. Any impairment existing at June 30, 2020 or December 31, 2019 is not related to credit losses. Therefore, we have not recorded an allowance for credit losses related to our marketable debt securities. All unrealized gains and losses were recorded in OCI. The following table provides information about the Company’s marketable debt securities that have been in a continuous loss position as of June 30, 2020 and December 31, 2019 (in millions, except number of marketable debt securities in a loss position):
|  | June 30, 2020 |  |  | December 31, 2019 |
|  | Fair Value of Marketable Debt Securities |  |  | Number of Marketable Debt Securities in a Loss Position |  |  | Unrealized Losses (d) |  |  | Fair Value of Marketable Debt Securities |  |  | Number of Marketable Debt Securities in a Loss Position |  | Unrealized Losses (d) |
U.S. Treasury securities |  | $ | — |  |  |  | — |  |  | $ | — |  |  | $ | 14.0 |  |  | 9 |  | $ | — |
U.S. government agency securities |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.8 |  |  | 1 |  |  | — |
Corporate debt securities |  |  | 4.0 |  |  | 7 |  |  |  | — |  |  |  | 63.3 |  |  | 61 |  |  | — |
|  | $ | 4.0 |  |  | 7 |  |  | $ | — |  |  | $ | 78.1 |  |  | 71 |  | $ | — |
| (d) | Unrealized losses were insignificant for the periods ended June 30, 2020 and December 31, 2019.

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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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