Balance Sheet Details

3 Months Ended

Mar. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]



3. Balance Sheet Details



Short-Term Marketable Securities

Short-term marketable securities, consisting of equity securities and debt securities, were as follows as of the dates indicated:



	March 31, 2020
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Market Value
Debt securities, available for sale:
U.S. government agencies	$	620.4	$	3.5	$	—		$	623.9
Commercial paper	189.1		0.1		(0.1		)	$	189.1
Corporate debt	113.7		—		(0.8		)	$	112.9
Total debt securities, available for sale	923.2		3.6		(0.9		)	925.9



	December 31, 2019
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Market Value
Debt securities, available for sale:
U.S. government agencies	$	675.6	$	0.4	$	—		$	676.0
Commercial paper	248.1		0.1		—			248.2
Corporate debt	163.0		—		(0.1		)	162.9
Total debt securities, available for sale	$	1,086.7	$	0.5	$	(0.1	)	$	1,087.1

As of March 31, 2020 and December 31, 2019, all of our debt securities had contractual maturities of less than 12 months. Gross realized gains and losses on sales of our debt securities during the three months ended March 31, 2020 and 2019 were not significant.

We periodically review our portfolio of debt securities to determine if any investment is impaired due to credit loss or other potential valuation concerns. For the debt securities where the fair value of the investment is less than the amortized cost basis, we have assessed at the individual security level for various quantitative factors including, but not limited to the nature of the investments, changes in credit ratings, interest rate fluctuations, industry analyst reports, and the severity of impairment. Unrealized losses on available-for-sale debt securities as of March 31, 2020 were not significant and were primarily due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities. Accordingly, we have not recorded an allowance for credit losses associated with these investments. We do not intend to sell these investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.



Inventory

Inventory was as follows as of the dates indicated:



(In millions)	March 31, 2020		December 31, 2019
Raw materials	$	64.4	$	64.9
Work-in-process	17.7		11.1
Finished goods	59.8		43.8
Total inventory	$	141.9	$	119.8

During the three months ended March 31, 2020, we recorded excess and obsolete inventory charges of $5.1 million in cost of sales as a result of our ongoing assessment of sales demand, inventory on hand for each product and the continuous improvement and innovation of our products. During the three months ended March 31, 2019, we recorded excess and obsolete inventory charges of $1.6 million in cost of sales primarily as a result of our ongoing assessment of sales demand and inventory on hand.



Property and Equipment

Property and equipment was as follows as of the dates indicated:



(In millions)	March 31, 2020			December 31, 2019
Building and land ⁽¹⁾	$	15.5		$	15.5
Furniture and fixtures	12.8			12.8
Computer software and hardware	31.7			32.7
Machinery and equipment	129.5			130.2
Leasehold improvements	119.5			102.5
Construction in progress	144.1			132.6
Total cost	453.1			426.3
Less accumulated depreciation and amortization	(107.0		)	(105.0		)
Total property and equipment, net	$	346.1		$	321.3

⁽¹⁾Represents our finance lease right-of-use assets.



Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities were as follows as of the dates indicated:



(In millions)	March 31, 2020		December 31, 2019
Accounts payable trade	$	110.2	$	102.3
Accrued tax, audit, and legal fees	13.8		14.0
Accrued rebates	103.6		93.3
Accrued warranty	7.7		7.4
Other accrued liabilities	32.2		39.4
Total accounts payable and accrued liabilities	$	267.5	$	256.4



Other Long-Term Liabilities

Other long-term liabilities were as follows as of the dates indicated:



(In millions)	March 31, 2020		December 31, 2019
Finance lease obligations	$	14.2	$	14.4
Other liabilities	6.7		5.7
Total other liabilities	$	20.9	$	20.1