XML 87 R10.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Financial Instruments
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Financial Instruments FINANCIAL INSTRUMENTS
Cash, Cash Equivalents, and Investments
The following tables summarize the Company’s cash and available-for-sale marketable securities’ amortized cost, gross unrealized gains, gross unrealized losses, and fair value by significant investment category reported as cash and cash equivalents or short-term or long-term investments as of December 31, 2019, and 2018 (in millions):
Reported as:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value		Cash and
Cash
Equivalents		Short-term
Investments		Long-term
Investments
December 31, 2019
Cash$413.1  $—  $—  $413.1  $413.1  $—  $—  
Level 1:
Money market funds726.8  —  —  726.8  726.8  —  —  
U.S. treasuries1,935.8  9.7  (0.4) 1,945.1  —  890.8  1,054.3  
Subtotal2,662.6  9.7  (0.4) 2,671.9  726.8  890.8  1,054.3  
Level 2:
Commercial paper165.1  —  —  165.1  25.5  139.6  —  
Corporate securities2,096.1  16.8  (0.2) 2,112.7  —  798.5  1,314.2  
U.S. government agencies418.3  1.1  (0.2) 419.2  —  209.6  209.6  
Non-U.S. government securities4.5  —  —  4.5  —  4.5  —  
Municipal securities58.4  0.3  —  58.7  2.2  11.1  45.4  
Subtotal2,742.4  18.2  (0.4) 2,760.2  27.7  1,163.3  1,569.2  
Total assets measured at fair value$5,818.1  $27.9  $(0.8) $5,845.2  $1,167.6  $2,054.1  $2,623.5  
Reported as:
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value		Cash and
Cash
Equivalents		Short-term
Investments		Long-term
Investments
December 31, 2018
Cash$269.4  $—  $—  $269.4  $269.4  $—  $—  
Level 1:
Money market funds569.1  —  —  569.1  569.1  —  —  
U.S. treasuries1,477.8  1.7  (5.3) 1,474.2  10.0  897.8  566.4  
Subtotal2,046.9  1.7  (5.3) 2,043.3  579.1  897.8  566.4  
Level 2:
Commercial paper110.7  —  —  110.7  1.4  109.3  —  
Corporate securities1,607.8  1.3  (4.8) 1,604.3  8.0  724.5  871.8  
U.S. government agencies791.8  0.3  (3.8) 788.3  —  468.9  319.4  
Municipal securities18.4  —  —  18.4  —  4.7  13.7  
Subtotal2,528.7  1.6  (8.6) 2,521.7  9.4  1,307.4  1,204.9  
Total assets measured at fair value$4,845.0  $3.3  $(13.9) $4,834.4  $857.9  $2,205.2  $1,771.3  
As of December 31, 2018, the Company also recorded $36.5 million of restricted cash equivalents (comprised of money market funds and U.S. treasuries, which would be considered highly liquid investments with original maturity dates that are 90 days or less) in connection with a concluded legal matter in prepaids and other current assets in the accompanying Consolidated Balance Sheets.
The following table summarizes the contractual maturities of the Company’s cash equivalents and available-for-sale investments (excluding cash and money market funds) at December 31, 2019 (in millions):
Amortized
Cost		Fair
Value
Mature in less than one year$2,082.4  $2,087.7  
Mature in one to five years2,595.8  2,617.6  
Total$4,678.2  $4,705.3  
Realized gains and losses, net of tax, were not material for any of the periods presented.
As of December 31, 2019, and 2018, net unrealized gains/(losses) on investments of $20.4 million and $(9.8) million, net of tax, respectively, were included in accumulated other comprehensive income/(loss) in the accompanying Consolidated Balance Sheets.
The following tables present the breakdown of the available-for-sale investments with unrealized losses at December 31, 2019, and 2018 (in millions):
 Unrealized losses less
than 12 months		Unrealized losses 12
months or greater		Total
December 31, 2019Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses
Corporate securities$237.0  $(0.2) $—  $—  $237.0  $(0.2) 
U.S. treasuries 236.5  (0.2) 87.5  (0.2) 324.0  (0.4) 
U.S. government agencies45.9  (0.1) 45.5  (0.1) 91.4  (0.2) 
Total$519.4  $(0.5) $133.0  $(0.3) $652.4  $(0.8) 
December 31, 2018                  
Corporate securities$727.4  $(1.7) $409.6  $(3.1) $1,137.0  $(4.8) 
U.S. treasuries478.7  (0.9) 592.8  (4.4) 1,071.5  (5.3) 
U.S. government agencies228.0  (0.2) 425.2  (3.6) 653.2  (3.8) 
Total$1,434.1  $(2.8) $1,427.6  $(11.1) $2,861.7  $(13.9) 
The unrealized losses on the available-for-sale investments are related to corporate securities and government securities. The Company determined these unrealized losses to be temporary. Factors considered in determining whether a loss is temporary included the length of time and extent to which the investment’s fair value has been less than the cost basis, the
financial condition and near-term prospects of the investee, the extent of the loss related to credit of the issuer, the expected cash flows from the security, the Company’s intent to sell the security, and whether or not the Company will be required to sell the security before the recovery of its amortized cost.
Foreign currency derivatives
The objective of the Company’s hedging program is to mitigate the impact of changes in currency exchange rates on net cash flow from foreign currency-denominated sales, expenses, and intercompany balances and other monetary assets or liabilities denominated in currencies other than the U.S. dollar (“USD”). The derivative assets and liabilities are measured using Level 2 fair value inputs.
Cash Flow Hedges. The Company enters into currency forward contracts as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the USD, primarily the Euro (“EUR”), the British Pound (“GBP”), the Japanese Yen (“JPY”), and the Korean Won (“KRW”). The Company also enters into currency forward contracts as cash flow hedges to hedge certain forecasted expense transactions denominated in EUR and Swiss Franc (“CHF”).
For these derivatives, the Company reports the unrealized after-tax gain or loss from the hedge as a component of accumulated other comprehensive income/(loss) in stockholders’ equity and reclassifies the amount into earnings in the same period in which the hedge transaction affects earnings. The amounts reclassified to revenue and expenses related to the hedged transactions and the ineffective portions of cash flow hedges were not material for the periods presented.
Other Derivatives Not Designated as Hedging Instruments. Other derivatives not designated as hedging instruments consist primarily of forward contracts that the Company uses to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the USD, primarily the EUR, GBP, JPY, KRW, CHF, Indian Rupee, and New Taiwan Dollar.
These derivative instruments are used to hedge against balance sheet foreign currency exposures. The related gains and losses were as follows (in millions):
 Years Ended December 31,
 201920182017
Recognized gains (losses) in interest and other income, net$6.4  $8.7  $(9.2) 
Foreign exchange gains (losses) related to balance sheet re-measurement$(1.5) $(2.6) $9.7  
The notional amounts for derivative instruments provide one measure of the transaction volume. Total gross notional amounts (in USD) for derivatives and the aggregate gross fair value outstanding at the end of each period were as follows (in millions):
Derivatives Designated as Hedging InstrumentsDerivatives Not Designated as Hedging Instruments
December 31,
2019		December 31,
2018		December 31,
2019		December 31,
2018
Notional amounts:
   Forward contracts$154.5  $183.0  $227.2  $182.7  
Gross fair value recorded in:
   Prepaid and other current assets$1.3  $3.1  $2.2  $4.1  
   Other accrued liabilities$0.5  $0.9  $0.7  $1.1