Investments

6 Months Ended

Jun. 30, 2022

Debt Securities, Available-for-Sale [Abstract]

Investments

Investments

Marketable Debt Securities

The following is a summary of our available-for-sale debt securities recorded within short-term and long-term investments on the condensed consolidated balance sheets (in millions):

	June 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale securities:
Commercial paper	$	576	$	—	$	(2)	$	574
Corporate notes and bonds	2,969		—		(51)		2,918
Certificates of deposit	132		—		—		132
U.S. government and agency securities	68		—		(1)		67
Mortgage-backed and asset-backed securities	100		—		(13)		87
Total available-for-sale securities	$	3,845	$	—	$	(67)	$	3,778

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale securities:
Commercial paper	$	528	$	—	$	—	$	528
Corporate notes and bonds	2,418		1		(7)		2,412
Certificates of deposit	28		—		—		28
U.S. government and agency securities	140		—		—		140
Mortgage-backed and asset-backed securities	100		—		(2)		98
Total available-for-sale securities	$	3,214	$	1	$	(9)	$	3,206

As of June 30, 2022, the contractual maturities of our available-for-sale debt securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheet and mortgage-backed and asset-backed securities that do not have a single maturity, did not exceed 36 months. The fair values of available-for-sale securities, by remaining contractual maturity, are as follows (in millions):

	June 30, 2022
Due within 1 year	$	2,170
Due in 1 year through 5 years	1,521
Instruments not due in single maturity	87
Total	$	3,778

As of June 30, 2022 and December 31, 2021, the fair value of available-for-sale securities in a continuous loss position totaled $3,640 million and $2,416 million, the majority of which has been in a continuous unrealized loss position for less than 12 months.

The decline in fair value below amortized cost basis was not considered other than temporary as it is more likely than not we will hold the securities until maturity or a recovery of the cost basis, and credit-related impairment losses were not deemed material as of June 30, 2022.

Non-Marketable Equity Investments

As of June 30, 2022 and December 31, 2021, the total amount of non-marketable equity investments in privately-held companies included in other assets on our condensed consolidated balance sheets was $231 million and $99 million, respectively. Our non-marketable equity investments are accounted for using the measurement alternative which measures the investments at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes resulting from the issuance of similar or identical securities in an orderly transaction by the same issuer. Determining whether an observed transaction is similar to a security within our portfolio requires judgment based on the rights and preferences of the securities. Recording upward and downward adjustments to the carrying value of our equity securities as a result of observable price changes requires quantitative assessments of the fair value of our securities using various valuation methodologies and involves the use of estimates. We classify these fair value measurements as Level 3 within the fair value hierarchy.

On December 31, 2021, we agreed to purchase $100 million of common and preferred shares of Celonis SE (“Celonis”), a privately held company that develops and sells process mining software, in exchange for cash. The transaction was completed in March 2022.