Other Financial Information (Tables)

12 Months Ended

Dec. 31, 2019

Other Financial Information [Abstract]

Inventories

Total inventory consisted of the following (in millions):

	As of December 31,
	2019		2018
Production and service materials	$	69.0	$	60.6
Finished goods	25.2		21.4
Inventory	$	94.2	$	82.0
Reported as:
Prepaid expenses and other current assets	$	90.6	$	80.6
Other long-term assets	3.6		1.4
Total	$	94.2	$	82.0

Property and equipment

Property and equipment, net, consisted of the following (in millions):

	As of December 31,
	2019			2018
Computers and equipment	$	1,041.4		$	1,100.0
Software	228.6			223.3
Leasehold improvements	216.9			235.2
Furniture and fixtures	48.3			48.6
Building and building improvements	255.0			254.3
Land and land improvements	243.5			243.2
Construction-in-process	12.9			19.5
Property and equipment, gross	2,046.6			2,124.1
Accumulated depreciation	(1,215.7		)	(1,172.4		)
Property and equipment, net	$	830.9		$	951.7

Outstanding notes receivable and deposit

Total outstanding notes receivable and deposit, net of issuance costs, reported within other long-term assets in the Consolidated Balance Sheets were as follows (in millions):

	As of December 31,
	2019		2018
Pulse Note (including accumulated interest paid in kind)	$	78.9	$	69.0
Contract manufacturer deposit (non-interest bearing)	46.0		23.9
Total	$	124.9	$	92.9

Warranties

Changes in the Company’s warranty reserve were as follows (in millions):

	As of December 31,
	2019			2018
Beginning balance	$	28.0		$	27.4
Provisions made during the period, net	39.0			30.7
Actual costs incurred during the period	(35.6		)	(30.1		)
Ending balance	$	31.4		$	28.0

Deferred revenue

The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of December 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	$	141.7	$	118.6	$	19.9	$	3.2
Service(*)	1,103.6		706.7		328.3		68.6
Total	$	1,245.3	$	825.3	$	348.2	$	71.8

________________________________

^(*)

Represents unearned service revenue allocated to the performance obligations not delivered or partially delivered as of December 31, 2019. The unearned service revenue are comprised of deferred revenue and unbilled revenue.

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

	As of December 31,
	2019			2018
Deferred revenue:
Undelivered product commitments and other product deferrals	$	141.7		$	163.3
Deferred gross product revenue	141.7			163.3
Deferred cost of product revenue	(9.1		)	(18.9		)
Deferred product revenue, net	132.6			144.4
Deferred gross service revenue	1,090.8			1,071.8
Deferred cost of service revenue	—			(2.6		)
Deferred service revenue, net	1,090.8			1,069.2
Total	$	1,223.4		$	1,213.6
Reported as:
Current	$	812.9		$	829.3
Long-term	410.5			384.3
Total	$	1,223.4		$	1,213.6

Other (expense) income, net

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

	Years Ended December 31,
	2019			2018			2017
Interest income	$	79.1		$	72.7		$	53.0
Interest expense	(88.7		)	(103.2		)	(101.2		)
Loss on extinguishment of debt	(15.3		)	—			—
(Loss) gain on investments, net	(3.8		)	(7.4		)	14.6
Other	0.9			(1.6		)	(2.7		)
Other expense, net	$	(27.8	)	$	(39.5	)	$	(36.3	)