Accrued Expenses and Other Current Liabilities

12 Months Ended

Dec. 31, 2023

Accrued Expenses and Other Current Liabilities

The components of accrued expenses and other current liabilities were as follows:


	As of December 31,
(in millions)	2023		2022
Accrued rebates	$	144.0	$	69.6
Employee compensation and related costs	122.0		95.9
Professional and consulting services	34.1		27.5
Warranty liability - current portion	4.8		57.3
Other	68.8		50.7
Accrued expenses and other current liabilities	$	373.7	$	301.0

Product Warranty Costs

Reconciliations of the changes in the Company’s product warranty liability were as follows:


	Years Ended December 31,
(in millions)	2023		2022
Product warranty liability at beginning of year	$	62.1	$	6.8
Warranty expense	18.6		87.0
Change in estimate	(11.5)		(14.0)
Warranty fulfillment	(58.9)		(17.7)
Product warranty liability at end of year	$	10.3	$	62.1

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 year ended December 31, 2022, the Company initially recorded an estimated liability of $68.9 million related to these MDCs, which was subsequent revised by $11.0 million, resulting in a net charge of $57.9 million for the year ended December 31, 2022. The $11.0 million change in estimate primarily resulted from significantly fewer customers requesting a replacement Omnipod DASH PDM prior to the Company’s updated PDM being available. During the year ended December 31, 2023, the Company revised the estimated liability for these MDCs by an additional $11.5 million. This change in estimate primarily resulted from lower distribution costs. The Company had a liability of $0.7 million and $54.6 million related to the MDCs included in its product warranty liability at December 31, 2023, and 2022, respectively.