Fair Value Measurements

9 Months Ended

Sep. 30, 2019

The Company's assets that are measured at fair value on a recurring basis consist of the following:



			Fair Value Measurements at Reporting Date Using
As of September 30, 2019	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)
Available-for-sale debt securities:
Corporate bonds	$	3,907.0	—		$	3,907.0
U.S. government and government agency obligations	66.0		—		66.0
Sovereign bonds	27.4		—		27.4
Commercial paper	108.8		—		108.8
Certificates of deposit	66.8		—		66.8
Equity securities (unrestricted)	46.9		$	46.9	—
Equity securities (restricted)	382.8		49.3		333.5
	$	4,605.7	$	96.2	$	4,509.5

As of December 31, 2018
Available-for-sale debt securities:
Corporate bonds	$	2,718.4	—		$	2,718.4
U.S. government and government agency obligations	109.4		—		109.4
Sovereign bonds	7.6		—		7.6
Commercial paper	113.8		—		113.8
Certificates of deposit	60.0		—		60.0
Equity securities (unrestricted)	43.6		$	43.6	—
Equity securities (restricted)	44.4		—		44.4
	$	3,097.2	$	43.6	$	3,053.6

Marketable securities included in Level 2 are valued using quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model-based valuations in which significant inputs used are observable. The Company considers market liquidity in determining the fair value for these securities.

The Company held certain restricted equity securities as of September 30, 2019, including its investment in Alnylam (see Note 3), which are subject to transfer restrictions that expire at various dates through 2023.

During the three and nine months ended September 30, 2019, we recorded $15.7 million of net unrealized gains and $58.4 million of net unrealized losses, respectively, on equity securities in Other income (expense), net. During the three and nine months ended September 30, 2018, we recorded $4.9 million of net unrealized losses and $21.0 million of net unrealized gains, respectively, on equity securities in Other income (expense), net.

As of September 30, 2019 and December 31, 2018, the Company had $43.1 million and $45.5 million, respectively, in equity investments that do not have a readily determinable fair value. These investments are recorded within Other noncurrent assets.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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