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Business Segment and Geographic Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segment and Geographic Information
10. Business Segment and Geographic Information
We manage our business on a global consolidated basis within one reportable segment, which is consistent with how our chief operating decision maker (CODM), our President and Chief Executive Officer, reviews our business, makes investment and resource allocation decisions, and assesses operating performance. The majority of our revenue is generated in the United States. The CGM segment derives revenues from the sale of disposable sensors and our Reusable Hardware.
The measures of segment profit or loss that are most consistent with U.S. GAAP used by the CODM to assess performance and allocate resources are operating income and net income. Our CODM also reviews total assets, as reported on our consolidated balance sheets, and purchases of property and equipment, as reported on our consolidated statements of cash flows.
Our CODM uses operating income and net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the Company, acquire companies, or invest in other companies. Operating income is also used to monitor budget versus actual results.
The following table sets forth our segment information for revenue, measures of segment profit or loss, and significant expenses:
Twelve Months Ended
December 31,
(In millions)202420232022
Revenue$4,033.0 $3,622.3 $2,909.8 
Less:
Cost of sales (1)
1,594.8 1,333.4 1,026.7 
Payroll related expenses767.1 726.9 621.1 
Stock-based compensation expense156.0 136.2 115.4 
Marketing expense298.7 264.6 228.3 
Travel related expenses64.8 55.3 37.6 
Supply expenses and clinical trials64.5 46.5 50.3 
Consulting & professional fees227.8 222.2 196.4 
Equipment, office & facility expenses83.8 84.7 80.3 
IT software and data130.6 106.6 86.5 
Depreciation and amortization39.9 41.9 46.7 
Other segment items (2)
5.0 6.3 29.3 
Operating income600.0 597.7 391.2 
Other income (expense), net109.0 112.7 (0.4)
Income before income taxes709.0 710.4 390.8 
Income tax expense132.8 168.9 49.6 
Net income$576.2 $541.5 $341.2 
(1) Includes amounts stated in other significant expense captions.
(2) Other segment items are primarily composed of impairment of assets and bad debt expense.
Twelve Months Ended
December 31,
(In millions)202420232022
Other segment disclosures
Depreciation and amortization (1)
$217.7 $186.0 $155.9 
Expenditures for long-lived assets$358.8 $236.6 $364.8 
Significant noncash items other than depreciation and amortization expense:
Deferred income taxes$43.8 $55.0 $21.6 
(1) Includes depreciation and amortization recorded in both cost of sales and operating expenses.
See Note 4 “Balance Sheet Details and Other Financial Information—Other Income (Expense), Net” to the consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for information about our interest income and interest expense.
See Note 9 “Employee Benefit Plans and Stockholders’ Equity—Share-Based Compensation” to the consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for information about our share-based compensation expense.
Disaggregation of Revenue
We disaggregate revenue by major sales channel and by geographic region. We have determined that disaggregating revenue into these categories achieves the ASC Topic 606 disclosure objectives of depicting how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
See Note 1 “Organization and Significant Accounting Policies—Concentration of Credit Risk and Significant Customers” to the consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for information about our major customers that represent 10% or more of our total revenue.
Revenue by Customer Sales Channel
We sell our CGM systems through a direct sales organization and through distribution arrangements that allow distributors to sell our products. The following table sets forth revenue by major sales channel for the twelve months ended December 31, 2024, 2023 and 2022:
Twelve Months Ended December 31,
202420232022
(In millions)Amount%
of Total		Amount%
of Total		Amount%
of Total
Distributor$3,430.1 85 %$3,095.6 85 %$2,470.8 85 %
Direct602.9 15 %526.7 15 %439.0 15 %
Total revenue$4,033.0 100 %$3,622.3 100 %$2,909.8 100 %
Revenue by Geographic Region
During the twelve months ended December 31, 2024, 2023 and 2022, no individual country outside the United States generated revenue that represented more than 10% of our total revenue. The following table sets forth revenue by our two primary geographical markets, the United States and International, based on the geographic location to which we deliver the components, for the periods shown:
Twelve Months Ended December 31,
202420232022
(In millions)Amount%
of Total		Amount%
of Total		Amount%
of Total
United States$2,889.8 72 %$2,625.3 72 %$2,142.0 74 %
International1,143.2 28 %997.0 28 %767.8 26 %
Total revenue$4,033.0 100 %$3,622.3 100 %$2,909.8 100 %
Long-Lived Assets by Geographic Region
The following table presents our long-lived assets, which consists of property and equipment, net, and operating lease right-of-use assets by geographic region:
December 31,
(In millions)20242023
United States$464.6 $544.1 
Malaysia632.1 515.4 
Other countries (1)
306.0 125.0 
Total long-lived assets$1,402.7 $1,184.5 
(1) No other individual country represented more than 10% of long-lived assets for the periods presented, except for Ireland with $185.7 million of long-lived assets at December 31, 2024.