Certain financial assets and liabilities are recorded at fair value. The carrying amount of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. The carrying amounts of liabilities for the sales of future royalties also approximate their fair value. Assets and liabilities recorded at fair value on a recurring basis in the balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows:

Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2—Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level 3—Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

The Company determines the fair value of its equity investment in Solid Biosciences Inc., or Solid, by using the quoted market prices, which are Level 1 fair value measurements.

The following tables set forth the fair value of the Company’s financial assets and liabilities remeasured on a recurring basis based on the three-tier fair value hierarchy (in millions):


	June 30, 2026
	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	60	$	—	$	—	$	60
Corporate bonds		—		275		—		275
Commercial paper		—		4		—		4
U.S. Government Treasury and agency securities		—		32		—		32
Investment in Solid common stock		5		—		—		5
Deferred compensation assets		—		21		—		21
Total financial assets	$	65	$	332	$	—	$	397

Financial Liabilities:
Deferred compensation liabilities	$	—	$	21	$	—	$	21


	December 31, 2025
	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	320	$	—	$	—	$	320
Time deposits		—		10		—		10
Corporate bonds		—		263		—		263
Commercial paper		—		37		—		37
U.S. Government Treasury and agency securities		12		23		—		35
Investment in Solid common stock		3		—		—		3
Deferred compensation assets		—		19		—		19
Total financial assets	$	335	$	352	$	—	$	687

Financial Liabilities:
Deferred compensation liabilities	$	—	$	19	$	—	$	19