3.Investments

Available-for-Sale Investments

Marketable investments classified as available-for-sale consisted of the following (in millions):

As of June 30, 2017	Amortized Cost		Gross Unrealized Losses			Fair Value
U.S. government and agency securities	$	341.9	$	(0.2	)	$	341.7

Total	$	341.9	$	(0.2	)	$	341.7

Reported under the following captions on the consolidated balance sheet:
Cash and cash equivalents						$	45.2
Current marketable investments						80.3
Non-current marketable investments						216.2

						$	341.7

We had no available-for-sale investments as of December 31, 2016.

The following table summarizes the contractual maturities of available-for-sale marketable investments (in millions):

	June 30, 2017
	Amortized Cost		Fair Value
Due in less than one year	$	125.6	$	125.5
Due in one to two years	153.2		153.1
Due in three to five years	63.1		63.1

Total	$	341.9	$	341.7

Held-to-Maturity and Other Investments

Our current and long-term marketable investments included $29.0 million and $30.1 million of investments classified as held-to-maturity as of June 30, 2017 and December 31, 2016, respectively. The June 30, 2017 balance of held-to-maturity investments includes $25.1 million in time deposits that mature in September 2017. Marketable investments classified as held-to-maturity are comprised of government-sponsored enterprises and corporate notes and bonds. We do not intend to sell these securities, nor is it more likely than not that we will be required to sell them prior to the recovery of their amortized cost basis. Furthermore, we do not believe that these securities expose us to undue market risk or counterparty credit risk. As such, we do not consider these securities to be other than temporarily impaired.

Investments Held at Cost

As of June 30, 2017, we maintain non-controlling equity investments in privately-held companies of approximately $151.8 million in the aggregate. These investments are initially held at cost because we do not have the ability to exercise significant influence over these companies and their fair values are not readily determinable. These investments are subject to a periodic impairment review and if they are deemed to be other-than-temporarily impaired, the investment is measured and recorded at fair value. During the three- and six-month periods ended June 30, 2017, we made payments of $25.1 million for investments held at cost. We include our investments held at cost within other non-current assets on our consolidated balance sheets.

During the quarter ended June 30, 2017, one of these privately-held companies sought to raise additional funding, which triggered our review of the recoverability of our investment in the company. We determined the fair value of our investment as of June 30, 2017 considering both (1) an income approach based on the company’s discounted projected cash flows; and (2) a market approach based on the revenue multiples of comparable public companies. The fair value of our investment was lower than its carrying value, resulting in an impairment charge of $46.5 million. As of June 30, 2017, the adjusted carrying value of our investment in this company is $53.5 million.

In July 2017, we entered into an investment agreement with a privately-held company to purchase $30.0 million of preferred stock. The investment is expected to close during the third quarter of 2017.

Variable Interest Entity

During the quarter ended June 30, 2017, we made a $7.5 million minority investment in a privately-held company. This investment is in addition to the $151.8 million of investments discussed above under Investments Held at Cost. In addition to our investment, we entered into an exclusive license, development and commercialization agreement (the License Agreement) with this company. The License Agreement entitles us to certain control rights that require us to consolidate the balance sheet and results of operations of this company. The control rights relate to additional research and development funding that we may provide to this company over a period of six years. Additionally, we are entitled to representation on a joint development committee that approves the company’s use of funding provided by us. During the quarter ended June 30, 2017 we provided $5.2 million of financial support to the company. We have the right, at any time and for any reason, to cease our funding of this company’s activities.

As of June 30, 2017, our consolidated balance sheet included $11.6 million of cash maintained by this company that can only be used to settle its obligations. Additionally, our consolidated balance sheets included an $8.9 million in-process research and development intangible asset, $3.4 million of goodwill and $8.3 million of preferred stock due to the consolidation of this company. The preferred stock is recorded in temporary equity on the consolidated balance sheets. During the quarter ended June 30, 2017, this company incurred a net loss of $0.7 million. Any current or potential creditors of this company have no recourse against our assets and general credit.