v3.26.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following table sets forth our financial assets and liabilities subject to fair value measurements by level within the
fair value hierarchy, as described in Note A, “Nature of Business and Accounting Policies,” of our 2025 Annual Report on
Form 10-K:
As of March 31, 2026
As of December 31, 2025
Fair Value Hierarchy
Fair Value Hierarchy
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
(in millions)
Financial instruments carried at fair value (asset positions):
Cash equivalents
$2,569.8
$1,312.8
$1,257.0
$—
$2,779.1
$1,770.7
$1,008.4
$—
Marketable securities:
Corporate equity securities
20.4
20.4
—
—
16.6
16.6
—
—
U.S. Treasury securities
1,744.8
1,744.8
—
—
1,864.9
1,864.9
—
—
U.S. government agency securities
208.2
—
208.2
—
262.4
—
262.4
—
Asset-backed securities
1,293.6
—
1,293.6
—
1,357.0
—
1,357.0
—
Certificates of deposit
36.6
—
36.6
—
26.2
—
26.2
—
Corporate debt securities
4,170.5
—
4,170.5
—
3,693.9
—
3,693.9
—
Commercial paper
29.6
—
29.6
—
14.6
—
14.6
—
Prepaid expenses and other current assets:
Foreign currency forward contracts
36.1
—
36.1
—
6.2
—
6.2
—
Other assets:
Foreign currency forward contracts
39.4
—
39.4
—
12.7
—
12.7
—
Total financial assets
$10,149.0
$3,078.0
$7,071.0
$—
$10,033.6
$3,652.2
$6,381.4
$—
Financial instruments carried at fair value (liability positions):
Other current liabilities:
Foreign currency forward contracts
$(50.1)
$—
$(50.1)
$—
$(79.4)
$—
$(79.4)
$—
Other long-term liabilities:
Foreign currency forward contracts
(28.1)
—
(28.1)
—
(51.0)
—
(51.0)
—
Contingent consideration
(79.2)
—
—
(79.2)
(79.0)
—
—
(79.0)
Total financial liabilities
$(157.4)
$—
$(78.2)
$(79.2)
$(209.4)
$—
$(130.4)
$(79.0)
Please refer to Note E, “Marketable Securities and Equity Investments,” for the carrying amount and related unrealized
gains (losses) by type of investment. Our cash equivalents primarily include money market funds, commercial paper, and
time deposits.
Fair Value of Corporate Equity Securities
We classify our investments in publicly traded corporate equity securities as “Marketable securities” on our condensed
consolidated balance sheets. Generally, our investments in the common stock of publicly traded companies are valued based
on Level 1 inputs because they have readily determinable fair values.
Please refer to Note E, “Marketable Securities and Equity Investments,” for further information on these investments.
Fair Value of Contingent Consideration
Our Level 3 contingent consideration liabilities of $79.2 million are related to $678.3 million of development and
regulatory milestones potentially payable to former equity holders of a privately-held company we acquired in 2019. We base
our estimates of the probability of achieving the milestones relevant to the fair value of contingent payments on industry data
attributable to gene therapies and our knowledge of the progress and viability of the associated Duchenne muscular dystrophy
programs. The discount rates used in the valuation model for contingent payments, which were between 4.4% and 4.6% as of
March 31, 2026, represent a measure of credit risk and market risk associated with settling the liabilities. Significant
judgment is used in determining the appropriateness of these assumptions at each reporting period.
The following table represents a rollforward of the fair value of our contingent consideration liabilities:
Three Months Ended
March 31, 2026
(in millions)
Balance at December 31, 2025
$79.0
Increase in fair value of contingent payments
0.2
Balance at March 31, 2026
$79.2