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Financial Statement Details (Tables)
3 Months Ended
Mar. 31, 2018
Disclosure of Financial Statement Details [Abstract]  
Financial Statement Details
Financial Statement Details (in millions)
Short-Term Marketable Securities
Short-term marketable securities, consisting of equity and debt securities, were as follows:
 
March 31, 2018
 
Cost or Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Market
Value
 
 
 
 
 
 
 
 
Equity investment in Tandem Diabetes Care, Inc
$
5.0

 
$
7.4

 
$

 
$
12.4

 
 
 
 
 
 
 
 
Debt securities, available for sale
 
 
 
 
 
 
 
U.S. government agencies
$
89.2

 
$

 
$
(0.2
)
 
$
89.0

Commercial paper
5.5

 

 

 
5.5

Corporate debt
6.6

 

 

 
6.6

Total available-for-sale debt securities
$
101.3

 
$

 
$
(0.2
)
 
$
101.1

 
 
 
 
 
 
 
 
Total marketable securities
$
106.3

 
$
7.4

 
$
(0.2
)
 
$
113.5

Gross unrealized gain of $7.4 million on our equity investment in Tandem Diabetes Care, Inc. is included in our Consolidated Statements of Operations under "Income from equity investments."
 
December 31, 2017
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Market
Value
U.S. government agencies
$
87.5

 
$

 
$
(0.2
)
 
$
87.3

Corporate debt
14.7

 

 

 
14.7

Commercial paper
5.1

 

 

 
5.1

Total marketable securities
$
107.3

 
$

 
$
(0.2
)
 
$
107.1


As of March 31, 2018, the estimated market value of available-for-sale marketable securities with contractual maturities of up to one year and up to 13 months were $99.6 million and $1.5 million, respectively. We do not generally intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.
Inventory
 
March 31, 2018
 
December 31, 2017
Raw materials
$
22.9

 
$
20.0

Work-in-process
9.0

 
8.2

Finished goods
19.7

 
17.0

Total
$
51.6

 
$
45.2


During the three months ended March 31, 2018 we recorded excess and obsolete inventory charges of $2.6 million in cost of goods sold associated with our receiver.

Property and Equipment
 
March 31, 2018
 
December 31, 2017
Building (1)
$
6.0

 
$
6.0

Furniture and fixtures
7.8

 
5.7

Computer equipment
26.4

 
25.6

Machinery and equipment
53.3

 
33.8

Leasehold improvements
51.6

 
41.7

Construction in progress
66.2

 
87.6

Total
211.3

 
200.4

Accumulated depreciation and amortization
(58.9
)
 
(54.8
)
Property and equipment, net
$
152.4

 
$
145.6

(1) As described in Footnote 6 “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
 
March 31, 2018
 
December 31, 2017
Accounts payable trade
$
38.9

 
$
46.7

Accrued tax, audit, and legal fees
8.8

 
7.1

Accrued rebates
16.0

 
13.9

Accrued warranty
8.9

 
8.8

Accrued other
15.4

 
10.7

Total
$
88.0

 
$
87.2



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 months ended March 31, 2018 and 2017 were as follows:
 
Three Months Ended 
 March 31,
 
2018
 
2017
Beginning balance
$
8.8

 
$
9.8

Charges to costs and expenses
4.5

 
5.0

Costs incurred
(4.4
)
 
(4.9
)
Ending balance
$
8.9

 
$
9.9



Other Liabilities
 
March 31, 2018
 
December 31, 2017
Financing lease obligations
$
7.4

 
$
6.7

Deferred rent
8.5

 
8.7

Other
2.8

 
2.8

Total
$
18.7

 
$
18.2

Short Term Marketable Securities, Available for Sale
Short-Term Marketable Securities
Short-term marketable securities, consisting of equity and debt securities, were as follows:
 
March 31, 2018
 
Cost or Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Market
Value
 
 
 
 
 
 
 
 
Equity investment in Tandem Diabetes Care, Inc
$
5.0

 
$
7.4

 
$

 
$
12.4

 
 
 
 
 
 
 
 
Debt securities, available for sale
 
 
 
 
 
 
 
U.S. government agencies
$
89.2

 
$

 
$
(0.2
)
 
$
89.0

Commercial paper
5.5

 

 

 
5.5

Corporate debt
6.6

 

 

 
6.6

Total available-for-sale debt securities
$
101.3

 
$

 
$
(0.2
)
 
$
101.1

 
 
 
 
 
 
 
 
Total marketable securities
$
106.3

 
$
7.4

 
$
(0.2
)
 
$
113.5

Gross unrealized gain of $7.4 million on our equity investment in Tandem Diabetes Care, Inc. is included in our Consolidated Statements of Operations under "Income from equity investments."
 
December 31, 2017
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Market
Value
U.S. government agencies
$
87.5

 
$

 
$
(0.2
)
 
$
87.3

Corporate debt
14.7

 

 

 
14.7

Commercial paper
5.1

 

 

 
5.1

Total marketable securities
$
107.3

 
$

 
$
(0.2
)
 
$
107.1


As of March 31, 2018, the estimated market value of available-for-sale marketable securities with contractual maturities of up to one year and up to 13 months were $99.6 million and $1.5 million, respectively. We do not generally intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.
Inventory
Inventory
 
March 31, 2018
 
December 31, 2017
Raw materials
$
22.9

 
$
20.0

Work-in-process
9.0

 
8.2

Finished goods
19.7

 
17.0

Total
$
51.6

 
$
45.2

Property, Plant and Equipment
Property and Equipment
 
March 31, 2018
 
December 31, 2017
Building (1)
$
6.0

 
$
6.0

Furniture and fixtures
7.8

 
5.7

Computer equipment
26.4

 
25.6

Machinery and equipment
53.3

 
33.8

Leasehold improvements
51.6

 
41.7

Construction in progress
66.2

 
87.6

Total
211.3

 
200.4

Accumulated depreciation and amortization
(58.9
)
 
(54.8
)
Property and equipment, net
$
152.4

 
$
145.6

(1) As described in Footnote 6 “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
Accounts Payable and Accrued Liabilities
 
March 31, 2018
 
December 31, 2017
Accounts payable trade
$
38.9

 
$
46.7

Accrued tax, audit, and legal fees
8.8

 
7.1

Accrued rebates
16.0

 
13.9

Accrued warranty
8.9

 
8.8

Accrued other
15.4

 
10.7

Total
$
88.0

 
$
87.2

Accrued Warranty
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 months ended March 31, 2018 and 2017 were as follows:
 
Three Months Ended 
 March 31,
 
2018
 
2017
Beginning balance
$
8.8

 
$
9.8

Charges to costs and expenses
4.5

 
5.0

Costs incurred
(4.4
)
 
(4.9
)
Ending balance
$
8.9

 
$
9.9

Other Liabilities
Other Liabilities
 
March 31, 2018
 
December 31, 2017
Financing lease obligations
$
7.4

 
$
6.7

Deferred rent
8.5

 
8.7

Other
2.8

 
2.8

Total
$
18.7

 
$
18.2