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Balance Sheet Details | 12 Months Ended
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Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Balance Sheet Details |
4. Balance Sheet Details
Short-Term Marketable Securities
Short-term marketable securities, consisting of available-for-sale debt securities, were as follows as of the dates indicated:
| December 31, 2021
(In millions) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Market Value
Debt securities, available-for-sale: |  |  |  |  |  |  |
U.S. government agencies | $ | 1,212.1 |  |  | $ | — |  |  | $ | (1.5) |  |  | $ | 1,210.6 |
Commercial paper | 189.8 |  |  | — |  |  | (0.1) |  |  | 189.7 |
Corporate debt | 224.6 |  |  | — |  |  | (0.3) |  |  | 224.3 |
Supranationals | 54.1 |  |  | — |  |  | (0.1) |  |  | 54.0 |
Total debt securities, available-for-sale | $ | 1,680.6 |  |  | $ | — |  |  | $ | (2.0) |  |  | $ | 1,678.6 |
| 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 |
As of December 31, 2021, the estimated market value of our debt securities with contractual maturities up to 12 months and up to 18 months were $1.36 billion and $320.7 million, respectively. As of December 31, 2020, all of our debt securities had contractual maturities of less than 12 months. Gross realized gains and losses on sales of our debt securities for the twelve months ended December 31, 2021, 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 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, 2021 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.
Equity Investments
During the twelve months ended December 31, 2021, 2020 and 2019, we had no unrealized gains or losses recognized during the reporting period on equity investments. Realized gains from the sale of an equity investment were $11.6 million for the twelve months ended December 31, 2021.
Accounts Receivable
| December 31,
(In millions) | 2021 |  | 2020
Accounts receivable | $ | 519.7 |  |  | $ | 435.7 |
Less allowance for doubtful accounts | (5.4) |  |  | (7.2) |
Total accounts receivable, net | $ | 514.3 |  |  | $ | 428.5 |
Reserve for prompt payment cash discounts recorded against accounts receivable, excluding allowance for doubtful accounts, was $13.7 million, $15.9 million, $4.6 million as of December 31, 2021, 2020, and 2019, respectively.
Inventory
| December 31,
(In millions) | 2021 |  | 2020
Raw materials | $ | 145.2 |  |  | $ | 69.9 |
Work-in-process | 16.2 |  |  | 14.2 |
Finished goods | 195.9 |  |  | 150.6 |
Total inventory | $ | 357.3 |  |  | $ | 234.7 |
During the twelve months ended December 31, 2021, 2020 and 2019, we recorded excess and obsolete inventory charges of $28.1 million, $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. The raw materials inventory balance of $145.2 million as of December 31, 2021 includes $5.5 million of pre-launch inventory related to our next CGM product.
Prepaid and Other Current Assets
Prepaid and other current assets were $81.6 million and $53.9 million as of December 31, 2021 and 2020, respectively. The increase in prepaid assets is driven primarily due to an increase in software and inventory related prepaid expenses.
Property and Equipment
| December 31,
(In millions) | 2021 |  | 2020
Land (1) | $ | 15.6 |  |  | $ | 15.6 |
Building (1) | 49.1 |  |  | 49.2 |
Furniture and fixtures | 30.7 |  |  | 15.3 |
Computer software and hardware | 52.7 |  |  | 35.7 |
Machinery and equipment | 272.9 |  |  | 198.9 |
Leasehold improvements | 251.6 |  |  | 135.8 |
Construction in progress | 360.7 |  |  | 219.0 |
Total cost | 1,033.3 |  |  | 669.5 |
Less accumulated depreciation and amortization | (231.5) |  |  | (154.2) |
Total property and equipment, net | $ | 801.8 |  |  | $ | 515.3 |
(1) Represents finance lease right-of-use assets. Depreciation expense related to property and equipment for the twelve months ended December 31, 2021, 2020 and 2019 was $96.3 million, $64.0 million and $46.9 million, respectively. Loss on disposal of property and equipment during the twelve months ended December 31, 2021, 2020 and 2019 recorded in operating expenses was $24.5 million, $13.6 million and $10.5 million, respectively.
Intangibles and Other Assets, Net
We recorded net intangible assets of $22.6 million, consisting primarily of customer-related relationships, as result of an acquisition in the third quarter of 2021.
Accounts Payable and Accrued Liabilities
| December 31,
(In millions) | 2021 |  | 2020
Accounts payable trade | $ | 196.0 |  |  | $ | 163.3 |
Accrued tax, audit, and legal fees | 40.7 |  |  | 15.3 |
Accrued rebates | 260.5 |  |  | 247.0 |
Accrued warranty | 12.9 |  |  | 11.7 |
Contractual obligations | 15.0 |  |  | — |
Other accrued liabilities | 47.9 |  |  | 43.8 |
Total accounts payable and accrued liabilities | $ | 573.0 |  |  | $ | 481.1 |
Accrued Payroll and Related Expenses
| December 31,
(In millions) | 2021 |  | 2020
Accrued wages, bonus and taxes | $ | 91.8 |  |  | $ | 87.7 |
Other accrued employee benefits | 33.4 |  |  | 26.6 |
Total accrued payroll and related expenses | $ | 125.2 |  |  | $ | 114.3 |
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, 2021, 2020 and 2019 were as follows:
| Twelve Months Ended December 31, |  |
(In millions) | 2021 |  | 2020 |  | 2019 |  |  |  |
Beginning balance | $ | 11.7 |  |  | $ | 7.4 |  |  | $ | 6.8 |  |  |  |  |
Charges to costs and expenses | 41.5 |  |  | 41.3 |  |  | 32.7 |  |  |  |  |
Costs incurred | (40.3) |  |  | (37.0) |  |  | (32.1) |  |  |  |  |
Ending balance | $ | 12.9 |  |  | $ | 11.7 |  |  | $ | 7.4 |  |  |  |  |
Other Long-Term Liabilities
| December 31,
(In millions) | 2021 |  | 2020
Finance lease obligations | $ | 57.0 |  |  | $ | 54.0 |
Contractual obligations | — |  |  | 12.6 |
Deferred tax liabilities | 5.9 |  |  | — |
Other liabilities | 27.1 |  |  | 14.3 |
Total other long-term liabilities | $ | 90.0 |  |  | $ | 80.9 |

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