Financial Statement Details (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure of Financial Statement Details [Abstract]

Financial Statement Details (in millions)

Short-Term Marketable Securities, Available-for-Sale

Short-term marketable securities, consisting solely of debt securities, were as follows:



	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
U.S. government agencies	$	96.9	$	—	$	—	$	96.9
Commercial paper	21.5		—		—		21.5
Corporate debt	5.3		—		—		5.3
Total	$	123.7	$	—	$	—	$	123.7



	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
U.S. government agencies	$	22.2	$	—	$	—	$	22.2
Corporate debt	3.8		—		—		3.8
Commercial paper	3.2		—		—		3.2
Total	$	29.2	$	—	$	—	$	29.2

As of September 30, 2017, the estimated market value of available-for-sale marketable securities with contractual maturities of up to one year and up to 18 months were $103.9 million and $19.8 million, respectively.

Inventory



	September 30, 2017		December 31, 2016
Raw materials	$	19.2	$	20.1
Work-in-process	8.3		2.3
Finished goods	15.8		23.0
Total	$	43.3	$	45.4

During 2016, we recorded charges of $3.5 million in cost of goods sold related to excess and obsolete receiver inventory primarily related to the February 23, 2016 customer notification regarding the audible alarms and alerts associated with our receivers which was classified as a voluntary Class 1 recall by the FDA and was closed as of August 11, 2017.

Property and Equipment



	September 30, 2017			December 31, 2016
Building ⁽¹⁾	$	6.0		$	6.0
Furniture and fixtures	4.8			5.8
Computer equipment	24.7			22.7
Machinery and equipment	33.8			31.4
Leasehold improvements	40.2			25.6
Construction in progress	78.9			65.1
Total	188.4			156.6
Accumulated depreciation and amortization	(52.3		)	(47.2		)
Property and equipment, net	$	136.1		$	109.4

(1) As described in Footnote 5 “Commitments and Contingencies,” although we do not legally own these premises, we are deemed the owner of the construction project during the construction period of our new manufacturing facility in Mesa, Arizona under a build-to-suit lease arrangement.

Accounts Payable and Accrued Liabilities



	September 30, 2017		December 31, 2016
Accounts payable trade	$	23.3	$	24.5
Accrued tax, audit, and legal fees	10.6		4.5
Clinical trials	0.4		1.1
Accrued rebates	15.2		8.2
Accrued warranty	8.7		9.8
Accrued other	22.4		20.0
Total	$	80.6	$	68.1

Accrued Warranty

Warranty costs are reflected in the consolidated statements of operations as product cost of sales. A reconciliation of our accrued warranty costs for the three and nine months ended September 30, 2017 and 2016 were as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Beginning balance	$	8.3		$	7.9		$	9.8		$	3.3
Charges to costs and expenses	5.4			5.2			13.9			18.7
Costs incurred	(5.0		)	(4.8		)	(15.0		)	(13.7		)
Ending balance	$	8.7		$	8.3		$	8.7		$	8.3

Other Liabilities



	September 30, 2017		December 31, 2016
Financing lease obligations	$	6.7	$	6.7
Deferred rent	8.8		7.3
Other	1.2		2.6
Total	$	16.7	$	16.6

Short Term Marketable Securities, Available for Sale

Short-Term Marketable Securities, Available-for-Sale

Short-term marketable securities, consisting solely of debt securities, were as follows:



	September 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
U.S. government agencies	$	96.9	$	—	$	—	$	96.9
Commercial paper	21.5		—		—		21.5
Corporate debt	5.3		—		—		5.3
Total	$	123.7	$	—	$	—	$	123.7



	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Market Value
U.S. government agencies	$	22.2	$	—	$	—	$	22.2
Corporate debt	3.8		—		—		3.8
Commercial paper	3.2		—		—		3.2
Total	$	29.2	$	—	$	—	$	29.2

Inventory



	September 30, 2017		December 31, 2016
Raw materials	$	19.2	$	20.1
Work-in-process	8.3		2.3
Finished goods	15.8		23.0
Total	$	43.3	$	45.4

Property, Plant and Equipment

Property and Equipment



	September 30, 2017			December 31, 2016
Building ⁽¹⁾	$	6.0		$	6.0
Furniture and fixtures	4.8			5.8
Computer equipment	24.7			22.7
Machinery and equipment	33.8			31.4
Leasehold improvements	40.2			25.6
Construction in progress	78.9			65.1
Total	188.4			156.6
Accumulated depreciation and amortization	(52.3		)	(47.2		)
Property and equipment, net	$	136.1		$	109.4

Accounts Payable and Accrued Liabilities



	September 30, 2017		December 31, 2016
Accounts payable trade	$	23.3	$	24.5
Accrued tax, audit, and legal fees	10.6		4.5
Clinical trials	0.4		1.1
Accrued rebates	15.2		8.2
Accrued warranty	8.7		9.8
Accrued other	22.4		20.0
Total	$	80.6	$	68.1

Accrued Warranty



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Beginning balance	$	8.3		$	7.9		$	9.8		$	3.3
Charges to costs and expenses	5.4			5.2			13.9			18.7
Costs incurred	(5.0		)	(4.8		)	(15.0		)	(13.7		)
Ending balance	$	8.7		$	8.3		$	8.7		$	8.3

Other Liabilities



	September 30, 2017		December 31, 2016
Financing lease obligations	$	6.7	$	6.7
Deferred rent	8.8		7.3
Other	1.2		2.6
Total	$	16.7	$	16.6

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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