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Other Financial Information
 9 Months Ended
Sep. 30, 2019
Other Financial Information [Abstract]  
Other Financial Information
Note 7. Other Financial Information

Inventory

Total inventory consisted of the following (in millions):
 
As of

September 30,
2019
 
December 31,
2018
Production and service materials
$
68.1

 
$
60.6

Finished goods
25.3

 
21.4

Inventory
$
93.4

 
$
82.0

 
 
 
 
Reported as:
 
 
 
Prepaid expenses and other current assets
$
90.1

 
$
80.6

Other long-term assets
3.3

 
1.4

Total
$
93.4

 
$
82.0



Deposit

The Company has a non-interest bearing deposit balance of $36.9 million, net of an unamortized discount balance of $1.9 million, to a contract manufacturer per the terms of the agreement. The discount is calculated based on an imputed interest rate of 5.0% at September 30, 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 in the third quarter of 2020 and has been classified as other long-term assets on the Condensed Consolidated Balance Sheets.

Warranties

Changes during the nine months ended September 30, 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
28.5

Actual costs incurred during the period
(25.0
)
Balance as of September 30, 2019
$
31.5



Deferred Revenue

Details of the Company's deferred revenue, as reported in the Condensed Consolidated Balance Sheets, were as follows (in millions):
 
As of
 
September 30,
2019
 
December 31,
2018
Deferred product revenue:
 
 
 
Undelivered product commitments and other product deferrals
$
138.4

 
$
163.3

Deferred gross product revenue
138.4

 
163.3

Deferred cost of product revenue
(9.4
)
 
(18.9
)
Deferred product revenue, net
129.0

 
144.4

Deferred service revenue
989.7

 
1,069.2

Total
$
1,118.7

 
$
1,213.6

Reported as:
 
 
 
Current
$
741.6

 
$
829.3

Long-term
377.1

 
384.3

Total
$
1,118.7

 
$
1,213.6



Revenue

See Note 12, Segments, for disaggregated revenue by product and service, customer vertical, and geographic region.

Product revenue of $13.7 million and $54.3 million included in deferred revenue at January 1, 2019 was recognized during the three and nine months ended September 30, 2019, respectively. Service revenue of $152.3 million and $609.1 million included in deferred revenue at January 1, 2019 was recognized during the three and nine months ended September 30, 2019, respectively.

The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 30, 2019 and when the Company expects to recognize the amounts as gross revenue (in millions):
 
Revenue Recognition Expected by Period
 
Total
 
Less than 1 year
 
1-3 years
 
More than 3 years
Product
$
138.4

 
$
114.5

 
$
21.1

 
$
2.8

Service
998.2

 
645.0

 
297.3

 
55.9

Total
$
1,136.6

 
$
759.5

 
$
318.4

 
$
58.7



Deferred Commissions

Deferred commissions were $20.4 million as of September 30, 2019. For the three and nine months ended September 30, 2019, amortization expense for the deferred commissions was $27.9 million and $94.0 million, respectively. There were no impairment charges recognized during the three and nine months ended September 30, 2019.

Other Expense, Net

Other expense, net, consisted of the following (in millions):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Interest income
$
19.7

 
$
18.9

 
$
63.0

 
$
49.8

Interest expense
(22.1
)
 
(25.8
)
 
(68.3
)
 
(77.7
)
Loss on extinguishment of debt
(15.3
)
 
—

 
(15.3
)
 
—

Loss on investments, net
(3.4
)
 
(1.9
)
 
(4.6
)
 
(1.8
)
Other
0.7

 
0.7

 
2.0

 
(1.4
)
Other expense, net
$
(20.4
)
 
$
(8.1
)
 
$
(23.2
)
 
$
(31.1
)