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Investments
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Available-for-sale investments
The amortized cost, gross unrealized gains, gross unrealized losses and fair values of interest-bearing securities, which are considered available-for-sale, by type of security were as follows (in millions):
Types of securities as of September 30, 2020Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair
values
U.S. Treasury notes$172 $2 $— $174 
U.S. Treasury bills6,399 — — 6,399 
Corporate debt securities:
Financial— — — — 
Industrial— — — — 
Other— — — — 
Residential-mortgage-backed securities— — — — 
Money market mutual funds5,016 — — 5,016 
Other short-term interest-bearing securities— — — — 
Total interest-bearing securities$11,587 $2 $— $11,589 

Types of securities as of December 31, 2019Amortized
cost		Gross
unrealized
gains		Gross
unrealized
losses		Fair
values
U.S. Treasury notes$359 $1 $— $360 
U.S. Treasury bills— — — — 
Corporate debt securities:
Financial1,108 13 — 1,121 
Industrial824 10 — 834 
Other195 3 — 198 
Residential-mortgage-backed securities181 1 — 182 
Money market mutual funds5,250 — — 5,250 
Other short-term interest-bearing securities289 — — 289 
Total interest-bearing securities$8,206 $28 $— $8,234 

The fair values of interest-bearing securities by location in the Condensed Consolidated Balance Sheets were as follows (in millions):
Condensed Consolidated Balance Sheets locationsSeptember 30, 2020December 31, 2019
Cash and cash equivalents$8,316 $5,360 
Marketable securities3,273 2,874 
Total interest-bearing securities$11,589 $8,234 

Cash and cash equivalents in the above table excludes bank account cash of $771 million and $677 million as of September 30, 2020 and December 31, 2019, respectively.
The fair values of interest-bearing securities by contractual maturity, except for residential-mortgage-backed securities that do not have a single maturity date, were as follows (in millions):
Contractual maturitiesSeptember 30, 2020December 31, 2019
Maturing in one year or less$11,536 $5,629 
Maturing after one year through three years53 2,304 
Maturing after three years through five years— 119 
Residential-mortgage-backed securities— 182 
Total interest-bearing securities$11,589 $8,234 

For the three months ended September 30, 2020, realized gains and losses on interest-bearing securities were not material. For the three months ended September 30, 2019, realized gains and losses on interest-bearing securities were $21 million and $24 million, respectively. For the nine months ended September 30, 2020 and 2019, realized gains on interest-bearing securities were $37 million and $23 million, respectively, and realized losses on interest-bearing securities were $4 million and $32 million, respectively. Realized gains and losses on interest-bearing securities are recorded in Interest and other income, net, in the Condensed Consolidated Statements of Income. The cost of securities sold is based on the specific-identification method.
The primary objective of our investment portfolio is to maintain safety of principal, prudent levels of liquidity and acceptable levels of risk. Our investment policy limits interest-bearing security investments to certain types of debt and money market instruments primarily issued by institutions with investment-grade credit ratings, and it places restrictions on maturities and concentration by asset class and issuer.
Equity securities
We held investments in equity securities with readily determinable fair values (publicly traded securities) of $376 million and $303 million as of September 30, 2020 and December 31, 2019, respectively, which are included in Other assets in the Condensed Consolidated Balance Sheets. For the three months ended September 30, 2020 and 2019, unrealized gains and losses on publicly traded securities were a net gain of $60 million and a net loss of $15 million, respectively. For the nine months ended September 30, 2020 and 2019, unrealized gains and losses on publicly traded securities were net gains of $65 million and $42 million, respectively. Realized gains and losses on publicly traded securities for the three and nine months ended September 30, 2020 and 2019, were not material.
We held investments of $170 million and $176 million in equity securities without readily determinable fair values as of September 30, 2020 and December 31, 2019, respectively, which are included in Other assets in the Condensed Consolidated Balance Sheets. Gains and losses recognized on these securities, including adjustments to the carrying values of these securities, were not material for the three and nine months ended September 30, 2020 and 2019.
Equity method investments
Limited partnerships
We held limited partnership investments of $366 million and $320 million as of September 30, 2020 and December 31, 2019, respectively, which are included in Other assets in the Condensed Consolidated Balance Sheets. These investments, primarily investment funds of early-stage biotechnology companies, are accounted for by using the equity method of accounting and are measured by using our proportionate share of the net asset values of the underlying investments held by the limited partnerships as a practical expedient. These investments are typically redeemable only through distributions upon liquidation of the underlying assets. As of September 30, 2020, unfunded additional commitments to be made for these investments during the next several years were not material. For the three months ended September 30, 2020 and 2019, net gains recognized from our limited partnership investments were $63 million and $5 million, respectively. For the nine months ended September 30, 2020 and 2019, net gains recognized from our limited partnership investments were $73 million and $29 million, respectively.
BeiGene
On January 2, 2020, we acquired a 20.5% ownership interest in BeiGene for $2.8 billion, of which $2.6 billion was attributed to the fair value of equity securities upon closing, with the remainder attributed to prepaid R&D. Our equity investment in BeiGene is included in Other assets in the Condensed Consolidated Balance Sheets. The fair value of equity securities acquired exceeded our proportionate share of the carrying value of the underlying net assets of BeiGene by approximately $2.4 billion. This investment is accounted for by using the equity method of accounting, which requires us to identify and allocate amounts to the items that give rise to the basis difference and to amortize these items over their useful lives. This amortization, along with our share of the results of operations of BeiGene, are included in Interest and other income, net, in our Condensed Consolidated Statements of Income. Recognition occurs one quarter in arrears, which began in the second quarter of 2020. The basis difference was allocated to finite-lived intangible assets, indefinite-lived intangible assets, equity-method goodwill and related deferred taxes. The finite-lived intangible assets are being amortized over a period ranging from 8 to 15 years.
During the three and nine months ended September 30, 2020, we recognized an increase in the carrying value of our investment by purchasing additional shares to maintain our ownership interest for an aggregate cost of $505 million and recognized $23 million for the impact of other BeiGene ownership transactions. The carrying value of the investment during the three and nine months ended September 30, 2020, was reduced for our share of BeiGene’s net losses of $68 million and $143 million, respectively, and amortization of the basis difference of $36 million and $72 million, respectively.
As of September 30, 2020, the carrying and fair values of our approximately 20.4% ownership interest in BeiGene totaled $3.0 billion and $5.3 billion, respectively. As of September 30, 2020, we believe the carrying value of our equity investment in BeiGene is fully recoverable. See Note 1, Summary of significant accounting policies, for factors considered in determining our conclusion. For information on a collaboration agreement we entered into with BeiGene in connection with this investment, see Note 5, Collaborations.