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Accrued Expenses and Other Current Liabilities | 9 Months Ended
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Sep. 30, 2023
Payables and Accruals [Abstract] |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities were as follows:
(in millions) | September 30, 2023 |  | December 31, 2022
Accrued rebates | $ | 127.4 |  |  | $ | 69.6 |
Employee compensation and related costs | 98.7 |  |  | 95.9 |
Professional and consulting services | 38.8 |  |  | 27.5 |
Warranty liability - current portion | 7.0 |  |  | 57.3 |
Other | 47.3 |  |  | 50.7 |
Accrued expenses and other current liabilities | $ | 319.2 |  |  | $ | 301.0 |
Product Warranty Costs The Company provides a four-year warranty on Personal Diabetes Managers (“PDMs”) and Controllers sold in the United States and Europe and a five-year warranty on PDMs sold in Canada and may replace Pods that do not function in accordance with product specifications. The Company estimates its warranty obligation at the time the product is shipped based on historical experience and the estimated cost to service the claims. Cost to service the claims reflects the current product cost, reclaim costs, shipping and handling costs and direct and incremental distribution and customer service support costs. Since the Company continues to introduce new products and versions, the anticipated performance of the product over the warranty period is also considered in estimating warranty reserves. Warranty expense is recorded in cost of revenue in the consolidated statements of operations. Reconciliations of the changes in the Company’s product warranty liability were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Product warranty liability at beginning of period | $ | 21.3 |  |  | $ | 11.6 |  |  | $ | 62.1 |  |  | $ | 6.8 |
Warranty expense | 5.1 |  |  | 40.2 |  |  | 13.9 |  |  | 51.3 |
Change in estimate | (1.9) |  |  | (3.1) |  |  | (10.7) |  |  | (3.1) |
Warranty fulfillment | (12.6) |  |  | (3.9) |  |  | (53.4) |  |  | (10.2) |
Product warranty liability at the end of period | $ | 11.9 |  |  | $ | 44.8 |  |  | $ | 11.9 |  |  | $ | 44.8 |
During the fourth quarter of 2022, the Company issued two voluntary medical device correction notices (“MDCs”), one for its Omnipod DASH PDM relating to its battery and the other for its Omnipod 5 Controller relating to its charging port and cable. During the nine months ended September 30, 2023, the Company revised the estimated liability for these MDCs by $10.7 million. This change in estimate primarily relates to lower distribution costs. The Company had a liability of $2.8 million and $54.6 million related to the MDCs included in its product warranty liability at September 30, 2023 and December 31, 2022, respectively.

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- Definition The entire disclosure for accounts payable, accrued expenses, and other liabilities that are classified as current at the end of the reporting period. + References No definition available. + Details
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