Investments

6 Months Ended

Jun. 30, 2021

Marketable Investments

Available-for-Sale Debt Securities

Available-for-sale debt securities are recorded at fair value, with unrealized gains and losses included as a component of accumulated other comprehensive loss in stockholders’ equity, until realized. Available-for-sale debt securities consisted of the following (in millions):


As of June 30, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government and agency securities	$	1,901.2	$	5.5	$	(0.7)	$	1,906.0
Corporate debt securities	378.0		1.9		(0.2)		379.7

Total	$	2,279.2	$	7.4	$	(0.9)	$	2,285.7


Reported under the following captions on our consolidated balance sheets:

Current marketable investments	$	960.3
Non-current marketable investments	1,325.4
Total	$	2,285.7


As of December 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. government and agency securities	$	1,902.4	$	9.8	$	(0.1)	$	1,912.1
Corporate debt securities	331.2		3.2		—		334.4

Total	$	2,233.6	$	13.0	$	(0.1)	$	2,246.5


Reported under the following captions on our consolidated balance sheets:
Cash and cash equivalents	$	79.0
Current marketable investments	1,017.9
Non-current marketable investments	1,149.6
Total	$	2,246.5

The following table summarizes the contractual maturities of available-for-sale debt securities (in millions). Actual maturities may differ from contractual maturities because the issuers of certain of these debt securities have the right to call the securities or prepay their obligations under the securities with or without penalties.


	As of June 30, 2021
	Amortized Cost		Fair Value
Due within one year	$	956.5	$	960.3
Due in one to three years	1,322.7		1,325.4


Total	$	2,279.2	$	2,285.7

Investments in Equity Securities with Readily Determinable Fair Values

We held investments in equity securities with readily determinable fair values of $65.0 million and $78.4 million as of June 30, 2021 and December 31, 2020, respectively, which are included in current marketable investments on our consolidated balance sheets. Changes in the fair value of publicly traded equity securities are recorded on our consolidated statements of operations within other (expense) income, net. Refer to Note 4—Fair Value Measurements.

During the first quarter of 2021, we sold our investment in a publicly-traded company. We received $108.9 million in cash from the sale of the investment and realized a gain of $91.9 million. The gain was recorded within other (expense) income, net on our consolidated statements of operations for the six months ended June 30, 2021.

Investments in Privately-Held Companies

As of June 30, 2021 and December 31, 2020, we maintained non-controlling equity investments in privately-held companies of $83.8 million and $84.8 million, respectively, in the aggregate. We measure these investments using the measurement alternative because the fair values of these investments are not readily determinable. Under this alternative, the investments are measured at cost, less any impairment, and adjusted for any observable price changes. We include our investments in privately-held companies within other non-current assets on our consolidated balance sheets. These investments are subject to a periodic impairment review and, if impaired, the investment is measured and recorded at fair value in accordance with ASC 820, Fair Value Measurements.

During the second quarter of 2021, we observed an indicator of impairment for our investment in two of these companies. We evaluated these investments for impairment and recognized impairment charges of $2.3 million in the aggregate. These impairment charges were recorded within impairments of investments in privately-held companies on our consolidated statements of operations.

During the first quarter of 2020, one of these companies raised additional capital by issuing equity securities similar to the security that we hold at an increased valuation, which resulted in an increase of $22.5 million in the value of our investment. The gain was recorded within other (expense) income, net on our consolidated statements of operations for the six months ended June 30, 2020.

During the first quarter of 2020, we observed an indicator of impairment for our investments in two of these companies. We evaluated these investments for impairment and recognized impairment charges of $5.6 million. These impairment charges were recorded within impairments of investments in privately-held companies on our consolidated statements of operations for the six months ended June 30, 2020.

Variable Interest Entity

Unconsolidated Variable Interest Entity

In November 2019, we entered into a supply agreement with an affiliate of DEKA Research & Development Corporation (DEKA) to manufacture and supply the Remunity® Pump to us. Under the terms of the supply agreement, we will reimburse all of the affiliate’s costs to manufacture and supply the Remunity Pump. We determined that the affiliate is a variable interest entity as we are currently the only customer of the affiliate and the affiliate currently relies on our reimbursement of its costs to sustain its operations. We have determined we are not the primary beneficiary of the affiliate as we do not have the power to direct or control its significant activities related to the manufacturing of medical devices. Accordingly, we have not consolidated the affiliate’s results of operations and financial position with ours. As of June 30, 2021 and December 31, 2020, our consolidated balance sheets included $12.2 million and $11.7 million of assets, respectively, related to the supply agreement. As of June 30, 2021 and December 31, 2020, our consolidated balance sheets included a $1.8 million and $24.0 million liability, respectively, for our obligation to reimburse costs related to the supply agreement. While the terms of the supply agreement expose us to various future risks of loss given our responsibility to reimburse all costs incurred by the affiliate to manufacture and supply the Remunity Pump, we believe that our maximum exposure to loss as of June 30, 2021 as a result of our involvement with the affiliate is $12.2 million, the amount of assets related to the supply agreement noted above.