Other Financial Information

Inventory

Total inventory consisted of the following (in millions):



	As of
	March 31, 2019		December 31, 2018
Production and service materials	$	72.6	$	60.6
Finished goods	21.3		21.4
Inventory	$	93.9	$	82.0

Reported as:
Prepaid expenses and other current assets	$	92.4	$	80.6
Other long-term assets	1.5		1.4
Total	$	93.9	$	82.0

Deposit

The Company has a non-interest bearing deposit balance of $47.6 million, net of an unamortized discount balance of $2.3 million, to a contract manufacturer per the terms of the agreement. The discount is calculated based on an imputed interest rate of 4.8% at March 31, 2019. The imputed interest will be amortized over the term of the deposit to interest income along with a corresponding charge to cost of revenues. The deposit is due on demand in the second quarter of 2020 and has been classified as other long-term assets on the Condensed Consolidated Balance Sheets.

Warranties

Changes during the three months ended March 31, 2019 in the Company’s warranty reserve as reported within other accrued liabilities in the Condensed Consolidated Balance Sheets were as follows (in millions):



Balance as of December 31, 2018	$	28.0
Provisions made during the period	8.6
Actual costs incurred during the period	(7.7		)
Balance as of March 31, 2019	$	28.9

Deferred Revenue

Details of the Company's deferred revenue, as reported in the Condensed Consolidated Balance Sheets, were as follows (in millions):



	As of
	March 31, 2019			December 31, 2018
Deferred product revenue:
Undelivered product commitments and other product deferrals	$	152.3		$	163.3
Deferred gross product revenue	152.3			163.3
Deferred cost of product revenue	(12.7		)	(18.9		)
Deferred product revenue, net	139.6			144.4
Deferred service revenue	1,091.3			1,069.2
Total	$	1,230.9		$	1,213.6
Reported as:
Current	$	860.1		$	829.3
Long-term	370.8			384.3
Total	$	1,230.9		$	1,213.6

Revenue

See Note 10, Segments, for disaggregated revenue by product and service, customer vertical, and geographic region.

The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of March 31, 2019 and when the Company expects to recognize the amounts as revenue (in millions):



	Revenue Recognition Expected by Period
	Total		Less than 1 year		1-3 years		More than 3 years
Product	$	152.3	$	122.8	$	26.0	$	3.5
Service	1,091.3		750.0		285.8		55.5
Total	$	1,243.6	$	872.8	$	311.8	$	59.0

Deferred Commissions

Deferred commissions were $26.1 million as of March 31, 2019. For the three months ended March 31, 2019, amortization expense for the deferred commissions was $34.9 million. There were no impairment charges recognized during the three months ended March 31, 2019.

Other Income (Expense), Net

Other income (expense), net, consisted of the following (in millions):



	Three Months Ended March 31,
	2019			2018
Interest income	$	23.5		$	14.9
Interest expense	(24.2		)	(26.0		)
Gain (loss) on investments, net	1.6			(0.5		)
Other	0.9			(2.5		)
Other income (expense), net	$	1.8		$	(14.1	)