Other Financial Information (Tables)

9 Months Ended

Sep. 30, 2020

Other Financial Information [Abstract]

Inventories

Total inventory consisted of the following (in millions):

	As of
	September 30, 2020		December 31, 2019
Production and service materials	$	144.6	$	69.0
Finished goods	31.2		25.2
Inventory	$	175.8	$	94.2
Reported as:
Prepaid expenses and other current assets	$	166.4	$	90.6
Other long-term assets	9.4		3.6
Total	$	175.8	$	94.2

Warranties

Changes during the nine months ended September 30, 2020 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, 2019	$	31.4
Provisions made during the period	28.1
Actual costs incurred during the period	(28.9)
Balance as of September 30, 2020	$	30.6

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, 2020		December 31, 2019
Deferred product revenue:
Undelivered product commitments and other product deferrals	$	109.8	$	141.7
Deferred gross product revenue	109.8		141.7
Deferred cost of product revenue	(10.5)		(9.1)
Deferred product revenue, net	99.3		132.6
Deferred service revenue	1,034.7		1,090.8
Total	$	1,134.0	$	1,223.4
Reported as:
Current	$	750.2	$	812.9
Long-term	383.8		410.5
Total	$	1,134.0	$	1,223.4

Performance obligation

The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 30, 2020 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	$	109.8	$	90.4	$	17.3	$	2.1
Service(*)	1,049.0		677.5		308.2		63.3
Total	$	1,158.8	$	767.9	$	325.5	$	65.4

________________________________

(*)     Represents unearned service revenue allocated to the performance obligations not delivered or partially delivered as of September 30, 2020. The unearned service revenue is comprised of deferred revenue and non-cancellable contract revenue for which we have not invoiced.

Other income (expense), net

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Interest income	$	6.1	$	19.7	$	30.4	$	63.0
Interest expense	(19.1)		(22.1)		(58.5)		(68.3)
Loss on extinguishment of debt	—		(15.3)		—		(15.3)
Gain (loss) on investments, net	2.0		(3.4)		2.7		(4.6)
Other	(2.5)		0.7		(3.6)		2.0
Other expense, net	$	(13.5)	$	(20.4)	$	(29.0)	$	(23.2)