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Balance Sheet Details | 12 Months Ended
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Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract] |
Balance Sheet Details |
4. Balance Sheet Details
Short-Term Marketable Securities
Short-term marketable securities, consisting of debt securities, were as follows as of the dates indicated:
| December 31, 2020
(In millions) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Market Value
Debt securities, available for sale: |  |  |  |  |  |  |
U.S. government agencies | $ | 1,570.4 |  |  | $ | 0.1 |  |  | $ | (0.1) |  |  | $ | 1,570.4 |
Commercial paper | 258.7 |  |  | 0.1 |  |  | — |  |  | 258.8 |
Corporate debt | 60.9 |  |  | — |  |  | — |  |  | 60.9 |
Total debt securities, available for sale | $ | 1,890.0 |  |  | $ | 0.2 |  |  | $ | (0.1) |  |  | $ | 1,890.1 |
| 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 December 31, 2020 and 2019, all of our debt securities had contractual maturities of less than twelve months. Gross realized gains and losses on sales of our debt securities for the twelve months ended December 31, 2020, 2019 and 2018 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 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 at December 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. 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. The following table reconciles the net gain recognized on marketable equity securities during the twelve months ended December 31, 2020, 2019 and 2018 to the unrealized gain recognized during those periods on equity securities still held at the reporting dates.
| Twelve Months Ended December 31,
(In millions) | 2020 |  | 2019 |  | 2018
Net gains and losses recognized during the period on equity securities | $ | — |  |  | $ | (4.2) |  |  | $ | 80.1 |
Less: Net gains and losses recognized during the period on equity securities sold during the period | — |  |  | 4.2 |  |  | (44.1) |
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date | $ | — |  |  | $ | — |  |  | $ | 36.0 |
Accounts Receivable
| December 31,
(In millions) | 2020 |  | 2019
Accounts receivable | $ | 435.7 |  |  | $ | 292.1 |
Less allowance for doubtful accounts | (7.2) |  |  | (5.8) |
Total accounts receivable, net | $ | 428.5 |  |  | $ | 286.3 |
Inventory
| December 31,
(In millions) | 2020 |  | 2019
Raw materials | $ | 69.9 |  |  | $ | 64.9 |
Work-in-process | 14.2 |  |  | 11.1 |
Finished goods | 150.6 |  |  | 43.8 |
Total inventory | $ | 234.7 |  |  | $ | 119.8 |
During the twelve months ended December 31, 2020 and 2019, we recorded excess and obsolete inventory charges of $24.4 million and $14.1 million, respectively, 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 twelve months ended December 31, 2018, we recorded excess and obsolete inventory charges of $7.3 million in cost of sales primarily as a result of the approval and launch of our G6 system and our ongoing assessment of sales demand and the continuous improvement and innovation of our products.
Property and Equipment
| December 31,
(In millions) | 2020 |  | 2019
Land (1) | $ | 15.6 |  |  | $ | — |
Building (1) | 49.2 |  |  | 15.5 |
Furniture and fixtures | 15.3 |  |  | 12.8 |
Computer software and hardware | 35.7 |  |  | 32.7 |
Machinery and equipment | 198.9 |  |  | 130.2 |
Leasehold improvements | 135.8 |  |  | 102.5 |
Construction in progress | 219.0 |  |  | 132.6 |
Total cost | 669.5 |  |  | 426.3 |
Less accumulated depreciation and amortization | (154.2) |  |  | (105.0) |
Total property and equipment, net | $ | 515.3 |  |  | $ | 321.3 |
(1) Represents our finance lease right-of-use assets. Depreciation expense related to property and equipment for the twelve months ended December 31, 2020, 2019 and 2018 was $64.0 million, $46.9 million, and $28.6 million, respectively. Loss on disposal of property and equipment during the twelve months ended December 31, 2020, 2019 and 2018 recorded in operating expenses was $13.6 million, $10.5 million and $5.4 million, respectively.
Accounts Payable and Accrued Liabilities
| December 31,
(In millions) | 2020 |  | 2019
Accounts payable trade | $ | 163.3 |  |  | $ | 102.3 |
Accrued tax, audit, and legal fees | 15.3 |  |  | 14.0 |
Accrued rebates | 247.0 |  |  | 93.3 |
Accrued warranty | 11.7 |  |  | 7.4 |
Other accrued liabilities | 43.8 |  |  | 39.4 |
Total accounts payable and accrued liabilities | $ | 481.1 |  |  | $ | 256.4 |
Accrued Warranty
Warranty costs are reflected in our statements of operations as cost of sales. Reconciliations of our accrued warranty costs for the twelve months ended December 31, 2020 and 2019 were as follows:
| Twelve Months Ended December 31, |  |
(In millions) | 2020 |  | 2019 |  |  |  |
Beginning balance | $ | 7.4 |  |  | $ | 6.8 |  |  |  |  |
Charges to costs and expenses | 41.3 |  |  | 32.7 |  |  |  |  |
Costs incurred | (37.0) |  |  | (32.1) |  |  |  |  |
Ending balance | $ | 11.7 |  |  | $ | 7.4 |  |  |  |  |
Other Long-Term Liabilities
| December 31,
(In millions) | 2020 |  | 2019
Finance lease obligations | $ | 54.0 |  |  | $ | 14.4 |
Contractual obligations | 12.6 |  |  | — |
Other liabilities | 14.3 |  |  | 5.7 |
Total other liabilities | $ | 80.9 |  |  | $ | 20.1 |

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