Fair Value Measurements
The table below summarizes the Company's assets and liabilities which are measured at fair value on a recurring basis. The following fair value hierarchy is used to classify assets and liabilities, based on inputs to valuation techniques utilized to measure fair value:
Level 1 - Quoted prices in active markets for identical assets or liabilities
Level 2 - Significant other observable inputs, such as quoted market prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model-based valuations in which significant inputs used are observable
Level 3 - Significant other unobservable inputs
(In millions)Fair Value Measurements at Reporting Date
As of December 31, 2025Fair ValueLevel 1Level 2
Level 3
Assets:
Cash equivalents$2,121.6 $1,127.7 $993.9 $— 
Available-for-sale debt securities:
Corporate bonds10,219.5 — 10,219.5 — 
U.S. government and government agency obligations4,367.3 — 4,367.3 — 
Commercial paper541.1 — 541.1 — 
Certificates of deposit265.9 — 265.9 — 
Asset-backed securities242.8 — 242.8 — 
Sovereign bonds76.8 — 76.8 — 
Equity securities(a)
34.3 34.3 — — 
Total assets
$17,869.3 $1,162.0 $16,707.3 $— 
Liabilities:
Contingent consideration
$10.3 $— $— $10.3 
As of December 31, 2024
Assets:
Cash equivalents$1,452.2 $1,264.2 $188.0 $— 
Available-for-sale debt securities:
Corporate bonds8,220.6 — 8,220.6 — 
U.S. government and government agency obligations4,817.0 — 4,817.0 — 
Commercial paper548.7 — 548.7 — 
Certificates of deposit381.1 — 381.1 — 
Asset-backed securities279.3 — 279.3 — 
Sovereign bonds82.4 — 82.4 — 
Equity securities(a)
1,095.3 1,095.3 — — 
Total assets
$16,876.6 $2,359.5 $14,517.1 $— 
Liabilities:
Contingent consideration
$52.3 $— $— $52.3 
(a) Includes equity securities of $33.3 million and $43.2 million as of December 31, 2025 and 2024, respectively, that are subject to transfer restrictions expiring in April 2026
In addition to the investments summarized in the table above, the Company classified the following investments within Other noncurrent assets:
As of December 31, 2025 and 2024, $334.0 million and $159.8 million, respectively, of equity securities that do not have a readily determinable fair value. The change in carrying value of such investments was a result of additional purchases.
As of December 31, 2025 and 2024, equity securities held through ownership interest in an investment fund of $147.5 million and $52.0 million, respectively, which are measured at fair value based on Level 3 inputs. The change in carrying value was primarily the result of additional purchases by the fund.
Amounts recognized in Other income (expense), net, related to the Company's investments in public equity securities consist of the following:
Year Ended December 31,
(In millions)
202520242023
Net gains (losses) recognized during the period
$955.6 $117.7 $(235.6)
Less: Net gains recognized on investments sold during the period966.2 — 6.0 
Net unrealized gains (losses) recognized on investments still held as of period end date
$(10.6)$117.7 $(241.6)
Other Fair Value Disclosures
The fair value of the Company's long-term debt (see Note 10), which was determined based on Level 2 inputs, was estimated to be $1.576 billion and $1.484 billion as of December 31, 2025 and 2024, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 4, 2026Showing above
2024Feb 5, 2025
2023Feb 5, 2024
2022Feb 6, 2023
2021Feb 7, 2022
2020Feb 8, 2021
2019Feb 7, 2020
2018Feb 7, 2019
2017Feb 8, 2018
2016Feb 9, 2017
2015Feb 11, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.