Balance Sheet Details and Other Financial Information

12 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Details and Other Financial Information

4. Balance Sheet Details and Other Financial Information

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, 2023
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
Debt securities, available-for-sale:
U.S. government agencies (1)	$	1,611.8	$	1.2	$	(0.5)	$	1,612.5
Commercial paper	184.8		—		(0.1)		184.7
Corporate debt	360.8		0.1		(0.3)		360.6

Total debt securities, available-for-sale	$	2,157.4	$	1.3	$	(0.9)	$	2,157.8


	December 31, 2022
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
Debt securities, available-for-sale:
U.S. government agencies (1)	$	1,535.1	$	0.2	$	(4.6)	$	1,530.7
Commercial paper	119.6		—		(0.2)		119.4
Corporate debt	164.3		—		(0.5)		163.8

Total debt securities, available-for-sale	$	1,819.0	$	0.2	$	(5.3)	$	1,813.9

(1) Includes debt obligations issued by U.S. government-sponsored enterprises or U.S. government agencies.

As of December 31, 2023, the estimated market value of our short-term debt securities with contractual maturities up to 12 months was $2.16 billion. As of December 31, 2022, the estimated market value of our short-term debt securities with contractual maturities up to 12 months was $1.81 billion. Gross realized gains and losses on sales of our short-term debt securities for the twelve months ended December 31, 2023, 2022 and 2021 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, 2023 were primarily due to increases 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, 2023, 2022 and 2021, 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 not significant for the twelve months ended December 31, 2023, 2022 and 2021.

Accounts Receivable


	December 31,
(In millions)	2023		2022
Accounts receivable	$	983.2	$	720.6
Less: allowance for doubtful accounts	(9.3)		(7.3)
Total accounts receivable, net	$	973.9	$	713.3

Reserve for prompt payment cash discounts recorded against accounts receivable, excluding allowance for doubtful accounts, was $13.7 million, $8.3 million, $13.7 million as of December 31, 2023, 2022, and 2021, respectively.

Inventory


	December 31,
(In millions)	2023		2022
Raw materials	$	319.5	$	159.0
Work-in-process	30.0		17.2
Finished goods	210.1		130.5
Total inventory	$	559.6	$	306.7

During the twelve months ended December 31, 2023, 2022 and 2021, we recorded excess and obsolete inventory charges of $16.6 million, $13.9 million and $28.1 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.

Prepaid and Other Current Assets


	December 31,
(In millions)	2023		2022
Prepaid expenses	$	58.7	$	48.9
Prepaid inventory	31.5		67.8
Deferred compensation plan assets	15.2		10.2
Income tax receivables	13.6		38.9
Other current assets	49.3		26.8
Total prepaid and other current assets	$	168.3	$	192.6

Property and Equipment


	December 31,
(In millions)	2023		2022
Land and land improvements	$	34.5	$	26.9
Building	190.5		54.3
Furniture and fixtures	36.9		32.6
Computer software and hardware	65.8		48.8
Machinery and equipment	683.3		449.2
Leasehold improvements	283.4		264.4
Construction in progress	328.1		542.6
Total cost	1,622.5		1,418.8
Less: accumulated depreciation and amortization	(509.4)		(363.2)
Total property and equipment, net	$	1,113.1	$	1,055.6

Depreciation expense related to property and equipment for the twelve months ended December 31, 2023, 2022 and 2021 was $147.4 million, $144.1 million and $96.3 million, respectively.

Loss on disposal of property and equipment during the twelve months ended December 31, 2023, 2022 and 2021 recorded in operating expenses was $0.7 million, $2.2 million and $24.5 million, respectively.

Intangibles, Net

The following table summarizes the components of gross intangible assets, accumulated amortization, and net intangible asset balances as of December 31, 2023 and December 31, 2022


		December 31, 2023
(Dollars in millions)	Weighted Average Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Verily intangible asset (1)	4.3	$	152.4	$	(31.0)	$	121.4
Customer relationships	2.4	24.1		(15.0)		9.1
Acquired technology and intellectual property (2)	0.8	14.6		(12.6)		2.0
Trademarks and trade name	2.6	4.2		(2.2)		2.0
Intangibles, other	0.0	0.2		(0.2)		—
Total	4.1	$	195.5	$	(61.0)	$	134.5


		December 31, 2022
(Dollars in millions)	Weighted Average Useful Life (in years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Verily intangible (1)	5.3		$	152.4	$	(2.4)	$	150.0
Customer relationships	3.3		24.1		(8.7)		15.4
Acquired technology and intellectual property (2)	1.7		14.6		(9.6)		5.0
Trademarks and trade name	3.5		4.2		(1.3)		2.9
Intangibles, other	0.0		0.2		(0.2)		—
Total	4.9		$	195.5	$	(22.2)	$	173.3

(1) See Note 2 “Development and Other Agreements” to the consolidated financial statements in Part II, Item 8 of this Annual Report for more information.
(2) Excludes Verily intangible asset.

The following table presents the total amortization expense of finite-lived intangible assets for the twelve months ended December 31, 2023, 2022 and 2021:


	Twelve Months Ended December 31,
(In millions)	2023		2022		2021
Amortization expense included in cost of sales	$	30.5	$	4.3	$	1.9
Amortization expense included in operating expenses	8.1		7.5		3.7
Total amortization of intangible assets	$	38.6	$	11.8	$	5.6

The following table presents estimated future amortization of the Company’s finite-lived intangible assets as of December 31, 2023:


(In millions)

2024	35.2
2025	32.6
2026	30.9
2027	28.6
2028	7.2
Thereafter	—
Total	$	134.5

Other Assets


	December 31,
(In millions)	2023		2022
Long-term investments	$	38.5	$	19.0
Long-term deposits	14.4		16.2
Other assets	22.1		11.9
Total other assets	$	75.0	$	47.1

Accounts Payable and Accrued Liabilities


	December 31,
(In millions)	2023		2022
Accounts payable trade	$	276.4	$	237.9
Accrued tax, audit, and legal fees	42.6		31.9
Accrued rebates	950.7		556.4
Accrued warranty	12.6		12.8
Income tax payable	7.5		12.9
Deferred compensation plan liabilities	15.2		10.2

Other accrued liabilities	40.5		39.7
Total accounts payable and accrued liabilities	$	1,345.5	$	901.8

Accrued Payroll and Related Expenses


	December 31,
(In millions)	2023		2022
Accrued wages, bonus and taxes	$	139.8	$	96.8
Other accrued employee benefits	31.2		37.5
Total accrued payroll and related expenses	$	171.0	$	134.3

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, 2023, 2022 and 2021 were as follows:


	Twelve Months Ended December 31,
(In millions)	2023		2022		2021
Beginning balance	$	12.8	$	12.9	$	11.7
Charges to costs and expenses	51.5		43.0		41.5
Costs incurred	(51.7)		(43.1)		(40.3)
Ending balance	$	12.6	$	12.8	$	12.9

Other Long-Term Liabilities


	December 31,
(In millions)	2023		2022
Finance lease obligations	$	58.6	$	59.6

Deferred revenue, long-term	7.4		19.0
Asset retirement obligation	15.7		11.1

Other tax liabilities	38.7		32.7
Other liabilities	5.2		5.9
Total other long-term liabilities	$	125.6	$	128.3

Other Income (Expense), Net


	Twelve Months Ended December 31,
(In millions)	2023		2022		2021
Interest and dividend income	$	135.0	$	23.8	$	1.7
Interest expense	(20.3)		(18.6)		(18.8)
Income from equity investments	1.9		0.2		11.6
Loss on extinguishment of debt	—		—		(0.1)
Other expense, net	(3.9)		(5.8)		(3.4)
Total other income (expense), net	$	112.7	$	(0.4)	$	(9.0)