Cash Equivalents and Investments

9 Months Ended

Sep. 30, 2023

Cash Equivalents and Investments [Abstract]

Note 2. Cash Equivalents and Investments

Investments in Available-for-Sale Debt Securities

The following table summarizes the Company's unrealized gains and losses and fair value of investments designated as available-for-sale debt securities as of September 30, 2023 and December 31, 2022 (in millions):


	As of September 30, 2023								As of December 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Fixed income securities:
Asset-backed and mortgage-backed securities	$	24.7	$	—	$	(0.6)	$	24.1	$	37.8	$	—	$	(1.2)	$	36.6
Corporate debt securities	123.9		—		(2.5)		121.4		277.5		—		(7.1)		270.4
Commercial paper	20.9		—		—		20.9		—		—		—		—
Foreign government debt securities	5.2		—		(0.2)		5.0		8.8		—		(0.4)		8.4
Time deposits	342.1		—		—		342.1		70.6		—		—		70.6
U.S. government agency securities	8.0		—		(0.1)		7.9		18.6		—		(0.6)		18.0
U.S. government securities	17.4		—		(0.1)		17.3		9.0		—		(0.2)		8.8
Total fixed income securities	542.2		—		(3.5)		538.7		422.3		—		(9.5)		412.8
Privately-held debt and redeemable preferred stock securities	20.7		37.4		—		58.1		15.5		37.4		—		52.9
Total available-for-sale debt securities	$	562.9	$	37.4	$	(3.5)	$	596.8	$	437.8	$	37.4	$	(9.5)	$	465.7

Reported as:
Cash equivalents	$	371.6	$	—	$	—	$	371.6	$	70.6	$	—	$	—	$	70.6
Short-term investments	128.8		—		(2.6)		126.2		205.9		—		(3.3)		202.6
Long-term investments	41.8		—		(0.9)		40.9		145.8		—		(6.2)		139.6
Other long-term assets	20.7		37.4		—		58.1		15.5		37.4		—		52.9
Total	$	562.9	$	37.4	$	(3.5)	$	596.8	$	437.8	$	37.4	$	(9.5)	$	465.7

The following table presents the contractual maturities of the Company's total fixed income securities as of September 30, 2023 (in millions):


	Amortized Cost		Estimated Fair Value
Due in less than one year	$	500.4	$	497.8
Due between one and five years	41.8		40.9
Total	$	542.2	$	538.7

As of September 30, 2023, the Company's unrealized loss of $3.5 million resulted from 139 investments, of which losses aggregating $0.1 million were from investments in an unrealized loss position for less than 12 months, and $3.4 million were from investments in an unrealized loss position for more than 12 months. The gross unrealized losses related to these

investments were primarily due to changes in market interest rates. The Company anticipates that it will recover the entire amortized cost basis of such available-for-sale debt securities and has determined that no allowance for credit losses was required to be recognized during the three and nine months ended September 30, 2023 and September 30, 2022.

During the three and nine months ended September 30, 2023 and September 30, 2022, there were no material gross realized gains or losses from available-for-sale debt securities.

Investments in Equity Securities

The following table presents the Company's investments in equity securities as of September 30, 2023 and December 31, 2022 (in millions):


	As of
	September 30, 2023		December 31, 2022
Equity investments with readily determinable fair value:
Money market funds	$	558.7	$	420.8
Mutual funds	35.0		28.1
Publicly-traded equity securities	7.4		7.7
Equity investments without readily determinable fair value	38.0		137.7
Equity investment under the equity method of accounting	30.1		36.0
Total equity securities	$	669.2	$	630.3

Reported as:
Cash equivalents	$	558.7	$	420.8
Short-term investments	7.4		7.7
Prepaid expenses and other current assets	3.0		2.4
Other long-term assets	100.1		199.4
Total	$	669.2	$	630.3

For the three and nine months ended September 30, 2023 and September 30, 2022, there were no material unrealized gains or losses recognized for equity investments with readily determinable fair value.

For the three months ended September 30, 2023, there were no material unrealized gains or losses for equity investments without readily determinable fair value. For the nine months ended September 30, 2023, there were no material unrealized gains and $89.9 million unrealized losses for equity investments without readily determinable fair value. Unrealized losses represent the difference between the estimated fair values and the carrying values of equity investments without readily determinable fair value. The Company estimated the fair value of these investments based on quantitative and qualitative analysis. This analysis involved use of judgment, significant estimates and assumptions, such as the near-term prospects of the investee in the market in which it operates, evaluating the investee’s financial condition in relation to its outstanding obligations, and probabilities of securing additional capital through various alternative scenarios. There were no material unrealized gains and losses for the three and nine months ended September 30, 2022 for equity investments without readily determinable fair value.

For the three and nine months ended September 30, 2023, the loss recognized from the equity method investment was $1.7 million and $5.9 million, respectively. For the three and nine months ended September 30, 2022, the loss recognized from the equity method investment was $2.1 million and $2.6 million, respectively.

Restricted Cash and Investments

The Company has restricted cash and investments for: (i) amounts under the Company's non-qualified deferred compensation plan for senior-level employees; (ii) amounts held under the Company's short-term disability plan in California; and (iii) amounts held in escrow accounts, as required in connection with certain acquisitions. Restricted investments consist of equity

investments. As of September 30, 2023, the carrying value of restricted cash and investments was $52.8 million, of which $18.3 million was included in prepaid expenses and other current assets, and $34.5 million was included in other long-term assets on the Condensed Consolidated Balance Sheets.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash included in the Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022 (in millions):


	As of
	September 30, 2023		December 31, 2022
Cash and cash equivalents	$	1,243.5	$	880.1
Restricted cash included in prepaid expenses and other current assets	15.3		15.2
Restricted cash included in other long-term assets	2.4		2.4
Total cash, cash equivalents, and restricted cash	$	1,261.2	$	897.7