Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Assets and Liabilities Subject to Fair Value Measurements

Assets and liabilities subject to fair value measurements are as follows (in millions):


	As of September 30, 2023
	Level 1		Level 2		Level 3		Balance
Assets
Money market funds(1)	$	210.3	$	—	$	—	$	210.3
Time deposits(1)	308.7		—		—		308.7
U.S. government and agency securities(2)	—		3,126.3		—		3,126.3
Corporate debt securities(2)	—		704.5		—		704.5
Equity securities(3)	16.9		—		—		16.9

Contingent consideration(4)	—		—		—		—
Total assets	$	535.9	$	3,830.8	$	—	$	4,366.7
Liabilities

Contingent consideration(5)	—		—		18.1		18.1
Total liabilities	$	—	$	—	$	18.1	$	18.1


	As of December 31, 2022
	Level 1		Level 2		Level 3		Balance
Assets
Money market funds(1)	$	459.6	$	—	$	—	$	459.6
Time deposits(1)	75.6		—		—		75.6
U.S. government and agency securities(2)	—		2,639.0		—		2,639.0
Corporate debt securities(2)	—		539.6		—		539.6
Equity securities(3)	30.7		—		—		30.7

Contingent consideration(4)	—		—		0.1		0.1
Total assets	$	565.9	$	3,178.6	$	0.1	$	3,744.6
Liabilities

Contingent consideration(5)	—		—		19.7		19.7
Total liabilities	$	—	$	—	$	19.7	$	19.7

(1)Included in cash and cash equivalents in our consolidated balance sheets.

(2)Included in cash and cash equivalents and current and non-current marketable investments in our consolidated balance sheets. Refer to Note 3—Investments—Marketable Investments—Available-for-Sale Debt Securities for further information. The fair value of these securities is principally measured or corroborated by trade data for identical securities for which related trading activity is not sufficiently frequent to be considered a Level 1 input or comparable securities that are more actively traded.

(3)Included in current marketable investments in our consolidated balance sheets. The fair value of these securities is based on quoted market prices for identical instruments in active markets. During the three and nine months ended September 30, 2023, we recognized $3.4 million and $13.8 million of net unrealized losses, respectively, on these securities. During the three and nine months ended September 30, 2022, we recognized $8.5 million and $29.9 million, respectively, of net unrealized and realized losses on these securities. We recorded these gains and losses in our consolidated statements of operations within other expense, net. Refer to Note 3—Investments—Marketable Investments—Investments in Equity Securities with Readily Determinable Fair Values.

(4)Included in other current assets and other non-current assets in our consolidated balance sheets. We estimated the fair value of contingent consideration using a Monte Carlo simulation. The Monte Carlo simulation incorporates Level 3 inputs including the probability of completing certain milestones during a specified period of time. The fair value of our contingent consideration assets decreased by $0.1 million during the period from December 31, 2022 to September 30, 2023. The loss was recorded within other expense, net in our consolidated statements of operations.

(5)Included in other current liabilities and other non-current liabilities in our consolidated balance sheets. The fair value of our contingent consideration obligations has been estimated using probability-weighted discounted cash flow models (DCFs). The DCFs incorporate Level 3 inputs, including estimated discount rates, that we believe market participants would consider relevant in pricing, and the projected timing and amount of cash flows, which are estimated and developed, in part, based on the requirements specific to each acquisition agreement. The fair value of our contingent consideration liabilities decreased by $1.6 million during the period from December 31, 2022 to September 30, 2023. The gain was recorded within research and development in our consolidated statements of operations.