| FINANCIAL INSTRUMENTS AND FAIR VALUE Short-Term and Long-Term Investments
Our short-term and long-term investments consisted of available-for-sale investments and marketable equity securities. The following tables summarize our short-term and long-term investments (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | Amortized
Cost | | Unrealized
Gains | | Unrealized
Losses | | Fair
Value | | U.S. government and agency securities | $ | 563.0 | | | $ | — | | | $ | (1.3) | | | $ | 561.7 | | | Corporate debt securities | 518.0 | | | — | | | (1.3) | | | 516.7 | | | Commercial paper | 314.9 | | | — | | | (0.2) | | | 314.7 | | | Certificates of deposit and term deposits | 106.3 | | | — | | | (0.1) | | | 106.2 | | | | | | | | | | Total available-for-sale investments | 1,502.2 | | | — | | | (2.9) | | | 1,499.3 | | Marketable equity securities | | | | | | | 34.5 | | Total short-term and long-term investments | $ | 1,502.2 | | | $ | — | | | $ | (2.9) | | | $ | 1,533.8 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | Amortized
Cost | | Unrealized
Gains | | Unrealized
Losses | | Fair
Value | | U.S. government and agency securities | $ | 513.7 | | | $ | 0.9 | | | $ | — | | | $ | 514.6 | | | Corporate debt securities | 368.5 | | | 0.4 | | | (0.1) | | | 368.8 | | | Commercial paper | 354.8 | | | 0.1 | | | — | | | 354.9 | | | Certificates of deposit and term deposits | 90.3 | | | 0.1 | | | — | | | 90.4 | | Total available-for-sale investments | 1,327.3 | | | 1.5 | | | (0.1) | | | 1,328.7 | | Marketable equity securities | | | | | | | 98.2 | | Total short-term and long-term investments | $ | 1,327.3 | | | $ | 1.5 | | | $ | (0.1) | | | $ | 1,426.9 | | | | | | | | | |
The following tables show the gross unrealized losses and the related fair values of our available-for-sale investments that have been in a continuous unrealized loss position (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | Less Than 12 Months | | 12 Months or Greater | | Total | | Fair
Value | | Unrealized
Losses | | Fair
Value | | Unrealized
Losses | | Fair
Value | | Unrealized
Losses | | U.S. government and agency securities | $ | 561.7 | | | $ | (1.3) | | | $ | — | | | $ | — | | | $ | 561.7 | | | $ | (1.3) | | | Corporate debt securities | 516.7 | | | (1.3) | | | — | | | — | | | 516.7 | | | (1.3) | | | Commercial paper | 314.7 | | | (0.2) | | | — | | | — | | | 314.7 | | | (0.2) | | | Certificates of deposit and term deposits | 106.2 | | | (0.1) | | | — | | | — | | | 106.2 | | | (0.1) | | Total available-for-sale investments | $ | 1,499.3 | | | $ | (2.9) | | | $ | — | | | $ | — | | | $ | 1,499.3 | | | $ | (2.9) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | Less Than 12 Months | | 12 Months or Greater | | Total | | | Fair
Value | | Unrealized
Losses | | Fair
Value | | Unrealized
Losses | | Fair
Value | | Unrealized
Losses | | U.S. government and agency securities | $ | 514.5 | | | $ | — | | | $ | — | | | $ | — | | | $ | 514.5 | | | $ | — | | | Corporate debt securities | 368.9 | | | (0.1) | | | — | | | — | | | 368.9 | | | (0.1) | | | Commercial paper | 354.9 | | | — | | | — | | | — | | | 354.9 | | | — | | | Certificates of deposit and term deposits | 90.4 | | | — | | | — | | | — | | | 90.4 | | | — | | Total available-for-sale investments | $ | 1,328.7 | | | $ | (0.1) | | | $ | — | | | $ | — | | | $ | 1,328.7 | | | $ | (0.1) | |
The contractual maturities of our available-for-sale investments were (in millions): | | | | | | | | | | | | | | June 30,
2026 | | December 31,
2025 | | Due within one year | $ | 1,100.2 | | | $ | 989.0 | | | Due within one to three years | 399.1 | | | 339.7 | | | Total | $ | 1,499.3 | | | $ | 1,328.7 | |
Available-for-sale investments are reported at fair value, with unrealized gains and losses and the related tax impact included as a separate component of stockholders’ equity and in comprehensive income. We do not intend to sell any of the securities in an unrealized loss position and it is not more likely than not that we would be required to sell these securities before recovery of their amortized cost basis, which may be at maturity.
Realized gains and losses on available-for-sale investments were not material in the periods presented.
Gains and losses on our marketable equity securities are recorded in other income—net on the condensed consolidated statements of income. During the first quarter of 2026, we sold certain marketable equity securities for net proceeds of $115.9 million, for which we recognized net gains of $50.7 million during the period. We had no sales of marketable equity securities during the second quarter of 2026 and the six months ended June 30, 2025. During the three and six months ended June 30, 2026, we recognized a $5.1 million and $1.5 million unrealized gain, respectively, related to the changes in the fair value of our marketable equity securities still held at the reporting date. During the three and six months ended June 30, 2025, we recognized an $11.3 million gain and $3.4 million unrealized loss, respectively. Assets Measured at Fair Value on a Recurring Basis
The following table presents the fair value of our financial assets measured at fair value on a recurring basis (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | | Aggregate
Fair
Value | | Quoted
Prices in
Active
Markets For
Identical
Assets | | Significant
Other
Observable
Remaining
Inputs | | Significant
Other
Unobservable
Remaining
Inputs | | Aggregate
Fair
Value | | Quoted
Prices in
Active
Markets For
Identical
Assets | | Significant
Other
Observable
Remaining
Inputs | | Significant
Other
Unobservable
Remaining
Inputs | | | | | (Level 1) | | (Level 2) | | (Level 3) | | | | (Level 1) | | (Level 2) | | (Level 3) | Cash equivalents: | | | | | | | | | | | | | | | | | Money market funds | $ | 158.5 | | | $ | 158.5 | | | $ | — | | | $ | — | | | $ | 174.4 | | | $ | 174.4 | | | $ | — | | | $ | — | | | U.S. government and agency securities | 1.3 | | | 1.3 | | | — | | | — | | | — | | | — | | | — | | | — | | | Corporate debt securities | — | | | — | | | — | | | — | | | 1.1 | | | — | | | 1.1 | | | — | | | Commercial paper | 19.4 | | | — | | | 19.4 | | | — | | | 38.1 | | | — | | | 38.1 | | | — | | | Certificates of deposit and term deposits | 30.2 | | | — | | | 30.2 | | | — | | | — | | | — | | | — | | | — | | Total cash equivalents | 209.4 | | | 159.8 | | | 49.6 | | | — | | | 213.6 | | | 174.4 | | | 39.2 | | | — | | Short-term investments: | | | | | | | | | | | | | | | | | U.S. government and agency securities | 404.3 | | | 404.3 | | | — | | | — | | | 383.5 | | | 381.5 | | | 2.0 | | | — | | | Corporate debt securities | 275.0 | | | — | | | 275.0 | | | — | | | 160.2 | | | — | | | 160.2 | | | — | | | Commercial paper | 314.7 | | | — | | | 314.7 | | | — | | | 354.9 | | | — | | | 354.9 | | | — | | | Certificates of deposit and term deposits | 106.2 | | | — | | | 106.2 | | | — | | | 90.4 | | | — | | | 90.4 | | | — | | | Marketable equity securities | 34.5 | | | 34.5 | | | — | | | — | | | 98.2 | | | 98.2 | | | — | | | — | | Total short-term investments | 1,134.7 | | | 438.8 | | | 695.9 | | | — | | | 1,087.2 | | | 479.7 | | | 607.5 | | | — | | Long-term investments: | | | | | | | | | | | | | | | | | U.S. government and agency securities | 157.4 | | | 140.7 | | | 16.7 | | | — | | | 131.1 | | | 121.8 | | | 9.3 | | | — | | | Corporate debt securities | 241.7 | | | — | | | 241.7 | | | — | | | 208.6 | | | — | | | 208.6 | | | — | | Total long-term investments | 399.1 | | | 140.7 | | | 258.4 | | | — | | | 339.7 | | | 121.8 | | | 217.9 | | | — | | Total | $ | 1,743.2 | | | $ | 739.3 | | | $ | 1,003.9 | | | $ | — | | | $ | 1,640.5 | | | $ | 775.9 | | | $ | 864.6 | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2026 and year ended December 31, 2025.
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