Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The fair value hierarchy consists of the following three levels:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 – Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Level 3 – Unobservable inputs that reflect our own assumptions about the assumptions that market participants would use in pricing the asset or liability when there is little, if any, market activity for the asset or liability at the measurement date.

The following table presents a summary of investments, which were measured at fair value on a recurring basis.

	September 30, 2022								December 31, 2021
	Fair Value		Leveling						Fair Value		Leveling
(in millions)			Level 1		Level 2		Level 3				Level 1		Level 2		Level 3
Cash and cash equivalents:
Cash and money market funds	$	212.2	$	212.2	$	—	$	—	$	340.8	$	340.8	$	—	$	—
Restricted cash:
Certificates of deposit	7.8		7.8		—		—		3.2		3.2		—		—
Debt securities available-for-sale:
Commercial paper	97.5		—		97.5		—		204.8		—		204.8		—
Corporate debt securities	521.9		—		521.9		—		485.5		—		485.5		—
Securities of government-sponsored entities	330.4		—		330.4		—		240.9		—		240.9		—
Equity securities:
Equity securities–biotechnology industry	94.9		94.9		—		—		63.7		52.7		—		11.0
	$	1,264.7	$	314.9	$	949.8	$	—	$	1,338.9	$	396.7	$	931.2	$	11.0

The following table presents a reconciliation of equity security investments which were measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2022		2021		2022		2021
Balance at beginning of period	$	—	$	38.9	$	11.0	$	38.2
Purchases	—		4.6		—		4.6
Unrealized gain (loss) included in earnings (1)	—		(8.2)		20.8		(7.5)
Transfers out of Level 3 (2)	—		—		(31.8)		—
Balance at end of period	$	—	$	35.3	$	—	$	35.3

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(1) Unrealized gains and losses on restricted equity security investments were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) and are included in other income (expense), net.

(2) In the first quarter of 2022, our equity security investment in Voyager was transferred from Level 3 to Level 1 as the associated holding period restriction expired.