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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
  
Commission File Number: 000-19034
REGENERON PHARMACEUTICALS, INC.
(Exact name of registrant as specified in its charter)
New York13-3444607
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
777 Old Saw Mill River Road, Tarrytown, New York 10591-6707
(Address of principal executive offices, including zip code)
(914) 847-7000
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock - par value $.001 per shareREGNNASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.YesNo
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).YesNo
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).YesNo
The number of shares outstanding of each of the registrant's classes of common stock as of April 11, 2023:
Class of Common StockNumber of Shares
Class A Stock, $.001 par value1,818,146
Common Stock, $.001 par value107,892,108



REGENERON PHARMACEUTICALS, INC.
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
Page Numbers







"Altibodies," "ARCALYST®," "Evkeeza®," "EYLEA®," "Inmazeb®," "Libtayo®," "Praluent®" (in the United States), "REGEN-COV®," "Regeneron®," "Regeneron Genetics Center®," "RGC®," "Veloci-Bi®," "VelociGene®," "VelociHum®," "VelociMab®," "VelocImmune®," "VelociMouse®," "VelociSuite®," "VelociT®," and "ZALTRAP®" are trademarks of Regeneron Pharmaceuticals, Inc. Trademarks and trade names of other companies appearing in this report are, to the knowledge of Regeneron Pharmaceuticals, Inc., the property of their respective owners. This report refers to products of Regeneron Pharmaceuticals, Inc., its collaborators, and other parties. Consult the product label in each territory for specific information about such products.



Table of Contents

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
REGENERON PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In millions, except per share data)
March 31,December 31,
20232022
ASSETS
Current assets:
Cash and cash equivalents$3,916.3 $3,105.9 
Marketable securities5,043.4 4,636.4 
Accounts receivable, net5,118.6 5,328.7 
Inventories2,424.7 2,401.9 
Prepaid expenses and other current assets406.2 411.2 
Total current assets16,909.2 15,884.1 
Marketable securities6,066.6 6,591.8 
Property, plant, and equipment, net3,880.9 3,763.0 
Intangible assets, net928.7 915.5 
Deferred tax assets1,924.9 1,723.7 
Other noncurrent assets349.6 336.4 
Total assets$30,059.9 $29,214.5 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$599.5 $589.2 
Accrued expenses and other current liabilities2,074.3 2,074.2 
Deferred revenue426.3 477.9 
Total current liabilities3,100.1 3,141.3 
Long-term debt1,981.8 1,981.4 
Finance lease liabilities720.0 720.0 
Deferred revenue85.5 69.8 
Other noncurrent liabilities677.3 638.0 
Total liabilities6,564.7 6,550.5 
Stockholders' equity:
Preferred Stock, par value $.01 per share; 30.0 shares authorized; issued and outstanding - none
  
Class A Stock, convertible, par value $.001 per share; 40.0 shares authorized; shares issued and outstanding - 1.8 in 2023 and 2022
  
Common Stock, par value $.001 per share; 320.0 shares authorized; shares issued - 131.4 in 2023 and 130.4 in 2022
0.1 0.1 
Additional paid-in capital10,597.7 9,949.3 
Retained earnings 24,124.5 23,306.7 
Accumulated other comprehensive loss(181.6)(238.8)
Treasury Stock, at cost; 23.5 shares in 2023 and 22.6 shares in 2022
(11,045.5)(10,353.3)
Total stockholders' equity23,495.2 22,664.0 
Total liabilities and stockholders' equity$30,059.9 $29,214.5 
The accompanying notes are an integral part of the financial statements.
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REGENERON PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)
(In millions, except per share data)
Three Months Ended
March 31,
20232022
Statements of Operations
Revenues:
Net product sales$1,668.0 $1,638.6 
Collaboration revenue1,378.1 1,232.5 
Other revenue116.0 94.0 
3,162.1 2,965.1 
Expenses:
Research and development1,101.2 843.8 
Acquired in-process research and development56.1 28.1 
Selling, general, and administrative601.1 450.0 
Cost of goods sold208.4 207.3 
Cost of collaboration and contract manufacturing249.1 197.6 
Other operating (income) expense, net(0.5)(20.2)
2,215.4 1,706.6 
Income from operations946.7 1,258.5 
Other income (expense):
Other (expense) income, net(70.7)(183.8)
Interest expense(18.0)(13.6)
(88.7)(197.4)
Income before income taxes858.0 1,061.1 
Income tax expense40.2 87.6 
Net income$817.8 $973.5 
Net income per share - basic$7.64 $9.12 
Net income per share - diluted$7.17 $8.61 
Weighted average shares outstanding - basic107.1 106.8 
Weighted average shares outstanding - diluted114.0 113.1 
Statements of Comprehensive Income
Net income$817.8 $973.5 
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on debt securities57.2 (144.9)
Unrealized gain on cash flow hedges 1.0 
Comprehensive income $875.0 $829.6 
The accompanying notes are an integral part of the financial statements.
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REGENERON PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)
(In millions)
Class A StockCommon StockAdditional Paid-in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury StockTotal Stockholders' Equity
SharesAmountSharesAmountSharesAmount
Balance, December 31, 20221.8$ 130.4$0.1 $9,949.3 $23,306.7 $(238.8)(22.6)$(10,353.3)$22,664.0 
Issuance of Common Stock for equity awards granted under long-term incentive plans
— — 1.1 — 491.3 — — — — 491.3 
Common Stock tendered upon exercise of stock options and vesting of restricted stock for employee tax obligations
— — (0.1)— (99.2)— — — — (99.2)
Issuance/distribution of Common Stock for 401(k) Savings Plan
— — — — 18.9 — — — 1.7 20.6 
Repurchases of Common Stock
— — — — — — — (0.9)(693.9)(693.9)
Stock-based compensation charges— — — — 237.4 — — — — 237.4 
Net income— — — — — 817.8 — — — 817.8 
Other comprehensive income, net of tax— — — — — — 57.2 — — 57.2 
Balance, March 31, 20231.8 $ 131.4 $0.1 $10,597.7 $24,124.5 $(181.6)(23.5)$(11,045.5)$23,495.2 
Balance, December 31, 20211.8 $ 126.2 $0.1 $8,087.5 $18,968.3 $(26.2)(19.4)$(8,260.9)$18,768.8 
Issuance of Common Stock for equity awards granted under long-term incentive plans— — 1.6 — 593.7 — — — — 593.7 
Common Stock tendered upon exercise of stock options and vesting of restricted stock for employee tax obligations— — (0.2)— (105.8)— — — — (105.8)
Issuance/distribution of Common Stock for 401(k) Savings Plan— — — — 12.8 — — — 1.7 14.5 
Repurchases of Common Stock— — — — — — — (0.5)(352.0)(352.0)
Stock-based compensation charges— — — — 165.9 — — — — 165.9 
Net income— — — — — 973.5 — — — 973.5 
Other comprehensive loss, net of tax— — — — — — (143.9)— — (143.9)
Balance, March 31, 20221.8$ 127.6 $0.1 $8,754.1 $19,941.8 $(170.1)(19.9)$(8,611.2)$19,914.7 
The accompanying notes are an integral part of the financial statements.
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REGENERON PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In millions)
Three Months Ended
March 31,
20232022
Cash flows from operating activities:
Net income $817.8 $973.5 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization99.5 74.3 
Stock-based compensation expense238.7 166.9 
Losses on marketable and other securities, net166.6 204.5 
Other non-cash items, net20.6 84.3 
Deferred income taxes(216.5)(225.0)
Changes in assets and liabilities:
Decrease in accounts receivable210.1 1,197.5 
Increase in inventories(46.8)(88.6)
Increase in prepaid expenses and other assets(5.5)(44.8)
(Decrease) increase in deferred revenue(35.9)9.5 
Increase (decrease) in accounts payable, accrued expenses, and other liabilities119.0 (250.4)
Total adjustments549.8 1,128.2 
Net cash provided by operating activities1,367.6 2,101.7 
Cash flows from investing activities:
Purchases of marketable and other securities(1,749.4)(2,309.8)
Sales or maturities of marketable and other securities1,792.8 746.3 
Capital expenditures(178.2)(141.8)
Payments for Libtayo intangible asset(100.9) 
Net cash used in investing activities(235.7)(1,705.3)
Cash flows from financing activities:
Proceeds from issuance of Common Stock485.2 521.6 
Payments in connection with Common Stock tendered for employee tax obligations(97.0)(98.8)
Repurchases of Common Stock(710.7)(358.1)
Net cash (used in) provided by financing activities(322.5)64.7 
Net increase in cash, cash equivalents, and restricted cash809.4 461.1 
Cash, cash equivalents, and restricted cash at beginning of period3,119.4 2,898.1 
Cash, cash equivalents, and restricted cash at end of period$3,928.8 $3,359.2 
The accompanying notes are an integral part of the financial statements.
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REGENERON PHARMACEUTICALS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Interim Financial Statements
Basis of Presentation
The interim Condensed Consolidated Financial Statements of Regeneron Pharmaceuticals, Inc. and its subsidiaries ("Regeneron," "Company," "we," "us," and "our") have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and disclosures necessary for a presentation of the Company's financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. In the opinion of management, these financial statements reflect all normal recurring adjustments and accruals necessary for a fair statement of the Company's condensed consolidated financial statements for such periods. The results of operations for any interim period are not necessarily indicative of the results for the full year. The December 31, 2022 Condensed Consolidated Balance Sheet data were derived from audited financial statements, but do not include all disclosures required by accounting principles generally accepted in the United States of America. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
Certain reclassifications have been made to prior period amounts to conform with the current period's presentation.
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2. Product Sales
Net product sales consist of the following:
Three Months Ended
March 31,
(In millions)20232022
EYLEA®
U.S.$1,433.8 $1,517.6 
Libtayo®(a)
U.S.109.7 78.9 
ROW(b)
67.2  
Praluent®
U.S.40.2 33.6 
Evkeeza®
U.S.14.9 8.5 
Inmazeb®
U.S.2.2  
$1,668.0 $1,638.6 
(a) Prior to July 1, 2022, Regeneron recorded net product sales of Libtayo in the United States and Sanofi recorded net product sales of Libtayo outside the United States. Effective July 1, 2022, the Company records global net product sales of Libtayo. See Note 3 for further details.
(b) Rest of world ("ROW")
As of March 31, 2023 and December 31, 2022, the Company had $3.578 billion and $3.586 billion, respectively, of trade accounts receivable that were recorded within Accounts receivable, net.
The Company had product sales to certain customers that accounted for more than 10% of total gross product revenue for the three months ended March 31, 2023 and 2022. Sales to each of these customers as a percentage of the Company's total gross product revenue are as follows:
Three Months Ended
March 31,
20232022
Besse Medical, a subsidiary of AmerisourceBergen Corporation
52 %55 %
McKesson Corporation25 %30 %
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3. Collaboration, License, and Other Agreements
a. Sanofi
Amounts recognized in our Statements of Operations in connection with our collaborations with Sanofi are detailed below:
Statement of Operations ClassificationThree Months Ended
March 31,
(In millions)20232022
Antibody:
Regeneron's share of profits in connection with commercialization of antibodiesCollaboration revenue$636.5 $415.3 
Sales-based milestones earnedCollaboration revenue$ $50.0 
Reimbursement for manufacturing of commercial suppliesCollaboration revenue$161.9 $160.8 
Regeneron's obligation for its share of Sanofi R&D expenses, net of reimbursement of R&D expenses(R&D expense)/Reduction of R&D expense$(26.4)$26.8 
Reimbursement of commercialization-related expenses Reduction of SG&A expense$117.6 $91.7 
Immuno-oncology(a):
Regeneron's share of profits in connection with commercialization of Libtayo outside the United StatesCollaboration revenue$ $2.8 
Reimbursement for manufacturing of ex-U.S. commercial suppliesCollaboration revenue$ $2.0 
Reimbursement of R&D expensesReduction of R&D expense$ $21.5 
Reimbursement of commercialization-related expensesReduction of SG&A expense$ $19.0 
Regeneron's obligation for its share of Sanofi commercial expensesSG&A expense$ $(9.2)
Regeneron's obligation for Sanofi's share of Libtayo U.S. gross profitsCost of goods sold$ $(32.3)
Amounts recognized in connection with up-front payments receivedOther operating income$ $18.1 
(a) As described within the "Immuno-Oncology" section below, effective July 1, 2022, the Company obtained the exclusive right to develop, commercialize, and manufacture Libtayo worldwide.
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Antibody
The Company is party to a global, strategic collaboration with Sanofi to research, develop, and commercialize fully human monoclonal antibodies (the "Antibody Collaboration"), which currently consists of Dupixent® (dupilumab), Kevzara® (sarilumab), and itepekimab.
Under the terms of the Antibody License and Collaboration Agreement (the "LCA"), Sanofi is generally responsible for funding 80% to 100% of agreed-upon development costs. The Company is obligated to reimburse Sanofi for 30% to 50% of worldwide development expenses that were funded by Sanofi based on the Company's share of collaboration profits from commercialization of collaboration products. Under the terms of the LCA, the Company was required to apply 10% of its share of the profits from the Antibody Collaboration in any calendar quarter to reimburse Sanofi for these development costs. On July 1, 2022, an amendment to the LCA became effective, pursuant to which the percentage of the Company's share of profits used to reimburse Sanofi for such development costs increased from 10% to 20%. A portion of the value associated with the increase in reimbursement percentage was deemed to be contingent consideration attributable to the Company's acquisition of the Libtayo (cemiplimab) rights described within the "Immuno-Oncology" section below; this portion will be recorded as an increase to the Libtayo intangible asset over time as the Company repays such development costs to Sanofi.
Sanofi leads commercialization activities for products under the Antibody Collaboration, subject to the Company's right to co-commercialize such products. In addition to profit and loss sharing, the Company is entitled to receive sales milestone payments from Sanofi. During the three months ended March 31, 2022, the Company earned a $50.0 million sales-based milestone from Sanofi, upon aggregate annual sales of antibodies outside the United States (including Praluent) exceeding $2.0 billion on a rolling twelve-month basis. The Company is entitled to receive the final sales milestone payment of $50.0 million when such sales outside the United States exceed $3.0 billion on a rolling twelve-month basis.
The following table summarizes contract balances in connection with the Company's Antibody Collaboration with Sanofi:
March 31,December 31,
(In millions)20232022
Accounts receivable, net $731.5 $692.3 
Deferred revenue
$377.5 $415.8 
Immuno-Oncology
The Company was previously a party to a collaboration with Sanofi for antibody-based cancer treatments in the field of immuno-oncology (the "IO Collaboration"). Under the terms of the Immuno-oncology License and Collaboration Agreement, the parties were co-developing and co-commercializing Libtayo. The parties shared equally, on an ongoing basis, development and commercialization expenses for Libtayo. The Company had principal control over the development of Libtayo and led commercialization activities in the United States, while Sanofi led commercialization activities outside of the United States. The parties shared equally in profits and losses in connection with the commercialization of Libtayo.
Effective July 1, 2022, the Company obtained the exclusive right to develop, commercialize, and manufacture Libtayo worldwide under an Amended and Restated Immuno-oncology License and Collaboration Agreement with Sanofi (the "A&R IO LCA"). In connection with the A&R IO LCA, in 2022, the Company made a $900.0 million up-front payment to Sanofi, as well as a $100.0 million regulatory milestone payment. In addition, Sanofi earned a $65.0 million sales-based milestone upon the achievement of a specified amount of worldwide net product sales of Libtayo in 2022 and is eligible to receive an additional $35.0 million sales-based milestone upon the achievement of a specified amount of worldwide net product sales of Libtayo in 2023 (aggregate of $100.0 million in sales-based milestones eligible to be earned under the terms of the A&R IO LCA). The Company also pays Sanofi an 11% royalty on net product sales of Libtayo through March 31, 2034. The transaction was accounted for as an asset acquisition and amounts paid to Sanofi in connection with obtaining the worldwide rights to Libtayo, including the up-front payment and any contingent consideration, are recorded as an intangible asset.
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b. Bayer
The Company is party to a license and collaboration agreement with Bayer for the global development and commercialization of EYLEA (aflibercept) and aflibercept 8 mg outside the United States. Agreed-upon development expenses incurred by the Company and Bayer are generally shared equally. Bayer markets EYLEA outside the United States, and the companies share equally in profits and losses from such sales.
Amounts recognized in the Company's Statements of Operations in connection with its Bayer collaboration are as follows:
Statement of Operations ClassificationThree Months Ended
March 31,
(In millions)20232022
Regeneron's share of profits in connection with commercialization of EYLEA outside the United StatesCollaboration revenue$331.6 $338.4 
Reimbursement for manufacturing of ex-U.S. commercial suppliesCollaboration revenue$25.3 $25.0 
One-time payment in connection with change in Japan arrangement
Collaboration revenue$ $21.9 
Regeneron's obligation for its share of Bayer R&D expenses, net of reimbursement of R&D expenses(R&D expense)/Reduction of R&D expense$(13.4)$0.3 
The following table summarizes contract balances in connection with the Company's Bayer collaboration:
March 31,December 31,
(In millions)20232022
Accounts receivable, net$356.8 $348.2 
Deferred revenue
$134.3 $131.9 
c. Roche
The Company is a party to a collaboration agreement (the "Roche Collaboration Agreement") with Roche to develop, manufacture, and distribute the casirivimab and imdevimab antibody cocktail (known as REGEN-COV® in the United States and Ronapreve in other countries). Under the terms of the collaboration agreement, the parties jointly fund certain studies, and the Company has the right to distribute the product in the United States while Roche has the right to distribute the product outside of the United States. The parties share gross profits from worldwide sales based on a pre-specified formula, depending on the amount of manufactured product supplied by each party to the market.
Amounts recognized in the Company's Statements of Operations in connection with the Roche Collaboration Agreement are as follows:
Statement of Operations ClassificationThree Months Ended
March 31,
(In millions)20232022
Global gross profit payment from Roche in connection with sales of RonapreveCollaboration revenue$222.2 $216.3 
Reimbursement of research and development expenses from Roche was not material for the three months ended March 31, 2023 and 2022.
The following table summarizes contract balances in connection with the Roche Collaboration Agreement:
March 31,December 31,
(In millions)20232022
Accounts receivable, net$220.6 $396.6 
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d. Sonoma Biotherapeutics, Inc.
In March 2023, the Company and Sonoma Biotherapeutics, Inc. entered into a license and collaboration agreement to bring together the Company's VelociSuite® technologies with Sonoma's technology platform for the discovery, development, and commercialization of novel regulatory T cell (Treg) therapies for autoimmune diseases. In connection with the agreement, the Company made a $45.0 million up-front payment (which was recorded to Acquired in-process research and development expense in the first quarter of 2023) and, in April 2023, the Company purchased an aggregate of $30.0 million of Sonoma preferred stock. Sonoma is also eligible to receive a $45.0 million development milestone payment. The Company and Sonoma will co-fund research and development activities and share equally any future commercial expenses and profits. The Company will have the option to lead late-stage development and commercialization on all products globally, with Sonoma retaining rights to co-promote all such products in the United States.
4. Net Income Per Share
Basic net income per share is computed by dividing net income by the weighted average number of shares of Common Stock and Class A Stock outstanding. Net income per share is presented on a combined basis, inclusive of Common Stock and Class A Stock outstanding, as each class of stock has equivalent economic rights. Diluted net income per share includes the potential dilutive effect of other securities as if such securities were converted or exercised during the period, when the effect is dilutive. The calculations of basic and diluted net income per share are as follows:
Three Months Ended
March 31,
(In millions, except per share data)20232022
Net income - basic and diluted$817.8 $973.5 
Weighted average shares - basic107.1 106.8 
Effect of dilutive securities:
Stock options5.0 5.0 
Restricted stock awards and restricted stock units1.9 1.3 
Weighted average shares - diluted114.0 113.1 
Net income per share - basic$7.64 $9.12 
Net income per share - diluted$7.17 $8.61 
Shares which have been excluded from diluted per share amounts because their effect would have been antidilutive include the following:
Three Months Ended
March 31,
(Shares in millions)20232022
Stock options1.7 2.2 
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5. Marketable Securities
Marketable securities as of March 31, 2023 and December 31, 2022 consist of both available-for-sale debt securities of investment grade issuers (see below and Note 6) as well as equity securities of publicly traded companies (see Note 6).
The following tables summarize the Company's investments in available-for-sale debt securities:
(In millions)AmortizedUnrealizedFair
As of March 31, 2023
Cost BasisGainsLossesValue
Corporate bonds$6,819.1 $4.8 $(231.7)$6,592.2 
U.S. government and government agency obligations2,902.2 5.5 (4.3)2,903.4 
Sovereign bonds72.6 0.1 (2.3)70.4 
Commercial paper279.1 0.1 (0.1)279.1 
Certificates of deposit153.9  (0.2)153.7 
Asset-backed securities53.9 0.1 (1.5)52.5 
$10,280.8 $10.6 $(240.1)$10,051.3 
As of December 31, 2022
Corporate bonds$6,975.5 $ $(291.1)$6,684.4 
U.S. government and government agency obligations2,945.4 0.9 (6.9)2,939.4 
Sovereign bonds67.1  (3.0)64.1 
Commercial paper121.1   121.1 
Certificates of deposit182.1  (0.1)182.0 
Asset-backed securities28.9  (1.7)27.2 
$10,320.1 $0.9 $(302.8)$10,018.2 
The Company classifies its investments in available-for-sale debt securities based on their contractual maturity dates. The available-for-sale debt securities as of March 31, 2023 mature at various dates through August 2028. The fair values of available-for-sale debt securities by contractual maturity consist of the following:
March 31,December 31,
(In millions)20232022
Maturities within one year$5,043.4 $4,636.4 
Maturities after one year through five years4,996.6 5,381.4 
Maturities after five years11.3 0.4 
$10,051.3 $10,018.2 

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The following table shows the fair value of the Company's available-for-sale debt securities that have unrealized losses, aggregated by investment category and length of time that the individual securities have been in a continuous loss position.
Less than 12 Months12 Months or GreaterTotal
(In millions)
As of March 31, 2023
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
Corporate bonds$707.1 $(8.1)$5,293.7 $(223.6)$6,000.8 $(231.7)
U.S. government and government agency obligations228.1 (0.1)79.2 (4.2)307.3 (4.3)
Sovereign bonds  64.0 (2.3)64.0 (2.3)
Commercial paper212.6 (0.1)  212.6 (0.1)
Certificates of deposit74.9 (0.1)2.9 (0.1)77.8 (0.2)
Asset-backed securities  24.7 (1.5)24.7 (1.5)
$1,222.7 $(8.4)$5,464.5 $(231.7)$6,687.2 $(240.1)
As of December 31, 2022
Corporate bonds$2,445.4 $(73.1)$4,200.4 $(218.0)$6,645.8 $(291.1)
U.S. government and government agency obligations785.2 (2.0)71.0 (4.9)856.2 (6.9)
Sovereign bonds18.6 (1.1)45.6 (1.9)64.2 (3.0)
Certificates of deposit40.2 (0.1)  40.2 (0.1)
Asset-backed securities11.5 (0.6)15.2 (1.1)26.7 (1.7)
$3,300.9 $(76.9)$4,332.2 $(225.9)$7,633.1 $(302.8)
The unrealized losses on corporate bonds as of March 31, 2023 were primarily driven by increases in interest rates. The Company has reviewed its portfolio of available-for-sale debt securities and determined that the decline in fair value below cost did not result from credit-related factors. In addition, the Company does not intend to sell, and it is not more likely than not that the Company will be required to sell, such securities before recovery of their amortized cost bases.
With respect to marketable securities, for the three months ended March 31, 2023 and 2022, amounts reclassified from Accumulated other comprehensive loss into Other (expense) income, net were related to realized gains and losses on sales of available-for-sale debt securities.
For the three months ended March 31, 2023 and 2022, realized gains and losses on sales of marketable securities were not material.
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6. Fair Value Measurements
The table below summarizes the Company's assets which are measured at fair value on a recurring basis. The following fair value hierarchy is used to classify assets, based on inputs to valuation techniques utilized to measure fair value:
Level 1 - Quoted prices in active markets for identical assets
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 March 31, 2023
Fair ValueLevel 1Level 2
Cash equivalents$1,422.7 $154.1 $1,268.6 
Available-for-sale debt securities:
Corporate bonds6,592.2  6,592.2 
U.S. government and government agency obligations2,903.4  2,903.4 
Sovereign bonds70.4  70.4 
Commercial paper279.1  279.1 
Certificates of deposit153.7  153.7 
Asset-backed securities52.5  52.5 
Equity securities (unrestricted)20.7 20.7  
Equity securities (restricted)1,038.0 1,028.3 9.7 
$12,532.7 $1,203.1 $11,329.6 
As of December 31, 2022
Cash equivalents$1,662.8 $88.3 $1,574.5 
Available-for-sale debt securities:
Corporate bonds6,684.4  6,684.4 
U.S. government and government agency obligations2,939.4  2,939.4 
Sovereign bonds64.1  64.1 
Commercial paper121.1  121.1 
Certificates of deposit182.0  182.0 
Asset-backed securities27.2  27.2 
Equity securities (unrestricted)24.6 24.6  
Equity securities (restricted)1,185.4 1,185.4  
$12,891.0 $1,298.3 $11,592.7 
The Company held certain restricted equity securities as of March 31, 2023 which are subject to transfer restrictions that expire at various dates through 2024.
During the three months ended March 31, 2023 and 2022, we recorded $164.7 million and $211.2 million of net unrealized losses, respectively, on equity securities in Other (expense) income, net.
In addition to the investments summarized in the table above, as of both March 31, 2023 and December 31, 2022, the Company had $48.3 million in equity investments that do not have a readily determinable fair value. These investments are recorded within Other noncurrent assets.
The fair value of our long-term debt, which was determined based on Level 2 inputs, was estimated to be $1.516 billion and $1.443 billion as of March 31, 2023 and December 31, 2022, respectively.
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Table of Contents
7. Inventories
Inventories consist of the following:
March 31,