AVAILABLE-FOR-SALE DEBT SECURITIES AND EQUITY SECURITIES (Tables)
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6 Months Ended |
Jun. 30, 2023 |
Debt Securities, Available-for-Sale [Abstract] |
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Summary of Reconciliation of Available-for-Sale Debt Securities from Cost Basis to Fair Value |
The following table summarizes our available-for-sale debt securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2023 | | December 31, 2022 | (in millions) | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Estimated Fair Value | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Estimated Fair Value | U.S. treasury securities | | $ | 378 | | | $ | — | | | $ | (3) | | | $ | 375 | | | $ | 415 | | | $ | — | | | $ | (5) | | | $ | 410 | | U.S. government agencies securities | | 162 | | | — | | | (1) | | | 161 | | | 36 | | | — | | | — | | | 35 | | Non-U.S. government securities | | 16 | | | — | | | — | | | 15 | | | 34 | | | — | | | — | | | 34 | | Certificates of deposit | | 104 | | | — | | | — | | | 104 | | | 54 | | | — | | | — | | | 54 | | Corporate debt securities | | 1,358 | | | — | | | (20) | | | 1,338 | | | 1,452 | | | — | | | (26) | | | 1,427 | | Residential mortgage and asset-backed securities | | 348 | | | — | | | (2) | | | 346 | | | 335 | | | — | | | (3) | | | 333 | | Total | | $ | 2,367 | | | $ | — | | | $ | (26) | | | $ | 2,341 | | | $ | 2,325 | | | $ | 1 | | | $ | (34) | | | $ | 2,293 | |
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Summary of Available-for-Sale Debt Securities in a Continuous Loss Position |
The following table summarizes information related to available-for-sale debt securities that have been in a continuous unrealized loss position, classified by length of time: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2023 | | | Less Than 12 Months | | 12 Months or Longer | | Total | (in millions) | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | U.S. treasury securities | | $ | (2) | | | $ | 299 | | | $ | (1) | | | $ | 46 | | | $ | (3) | | | $ | 345 | | U.S. government agencies securities | | (1) | | | 149 | | | — | | | — | | | (1) | | | 149 | | Non-U.S. government securities | | — | | | 11 | | | — | | | 5 | | | — | | | 15 | | Corporate debt securities | | (6) | | | 522 | | | (14) | | | 647 | | | (20) | | | 1,168 | | Residential mortgage and asset-backed securities | | (1) | | | 266 | | | — | | | 42 | | | (2) | | | 308 | | Total | | $ | (10) | | | $ | 1,246 | | | $ | (16) | | | $ | 739 | | | $ | (26) | | | $ | 1,985 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | | Less Than 12 Months | | 12 Months or Longer | | Total | (in millions) | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | U.S. treasury securities | | $ | (2) | | | $ | 174 | | | $ | (3) | | | $ | 206 | | | $ | (5) | | | $ | 379 | | U.S. government agencies securities | | — | | | 21 | | | — | | | — | | | — | | | 21 | | Non-U.S. government securities | | — | | | 31 | | | — | | | 3 | | | — | | | 34 | | Corporate debt securities | | (17) | | | 774 | | | (8) | | | 439 | | | (26) | | | 1,213 | | Residential mortgage and asset-backed securities | | (2) | | | 205 | | | (1) | | | 56 | | | (3) | | | 261 | | Total | | $ | (22) | | | $ | 1,204 | | | $ | (12) | | | $ | 705 | | | $ | (34) | | | $ | 1,908 | |
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Summary of Classification of Available-for-Sale Debt Securities |
The following table summarizes the classification of our available-for-sale debt securities in our Condensed Consolidated Balance Sheets: | | | | | | | | | | | | | | | (in millions) | | June 30, 2023 | | December 31, 2022 | Cash and cash equivalents | | $ | 44 | | | $ | 75 | | Short-term marketable debt securities | | 963 | | | 973 | | Long-term marketable debt securities | | 1,334 | | | 1,245 | | Total | | $ | 2,341 | | | $ | 2,293 | |
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Summary of Available-for-Sale Debt Securities by Contractual Maturity |
The following table summarizes our available-for-sale debt securities by contractual maturity: | | | | | | | | | | | | | | | | | June 30, 2023 | (in millions) | | Amortized Cost | | Fair Value | Within one year | | $ | 1,014 | | | $ | 1,007 | | After one year through five years | | 1,332 | | | 1,313 | | After five years through ten years | | 17 | | | 16 | | After ten years | | 4 | | | 4 | | Total | | $ | 2,367 | | | $ | 2,341 | |
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Summary of Equity Securities |
The following table summarizes the classification of our equity securities measured at fair value on a recurring basis, on our Condensed Consolidated Balance Sheets: | | | | | | | | | | | | | | | (in millions) | | June 30, 2023 | | December 31, 2022 | Cash and cash equivalents | | $ | 4,253 | | | $ | 3,831 | | Prepaid and other current assets(1) | | 431 | | | 473 | | Other long-term assets(1) | | 1,046 | | | 943 | | Total | | $ | 5,730 | | | $ | 5,248 | | ________________________________ (1) Prepaid and other current assets and Other long-term assets include our equity method investments in Arcus and Galapagos, respectively, for which we elected and applied the fair value option as we believe it best reflects the underlying economics of these investments. Our investment in Galapagos is classified in Other long-term assets due to certain lock-up provisions in our amended subscription agreement with them, which extend to August 2024.
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