Accrued Expenses and Other Current Liabilities

3 Months Ended

Mar. 31, 2025

Accrued Expenses and Other Current Liabilities

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


(in millions)	March 31, 2025		December 31, 2024
Accrued rebates	$	162.7	$	148.3
Employee compensation and related costs	89.5		142.8
Professional and consulting services	42.1		51.6
Other	84.3		81.1
Accrued expenses and other current liabilities	$	378.6	$	423.8

Product Warranty Costs

The Company provides a four-year warranty on its Controllers and Personal Diabetes Managers (“PDMs”) 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 income.

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


	Three Months Ended March 31,
(in millions)	2025		2024
Product warranty liability at beginning of period	$	13.9	$	10.3
Warranty expense	7.6		5.5
Warranty fulfillment	(5.4)		(4.5)
Product warranty liability at the end of period	$	16.1	$	11.3