Other Financial Information (Tables)

12 Months Ended

Dec. 31, 2023

Other Financial Information [Abstract]

Schedule of Total Inventory

Total inventory consisted of the following (in millions):

	As of December 31,
	2023		2022
Production and service materials	$	719.0	$	479.6
Finished goods	299.0		163.3
Total inventory	$	1,018.0	$	642.9
Reported as:
Inventory	$	952.4	$	619.4
Other long-term assets (1)	65.6		23.5
Total inventory	$	1,018.0	$	642.9

__________________

(1) Long-term inventory balance classified as other long-term assets in the Company's Consolidated Balance Sheets consists of last time buy component inventory to be consumed beyond the Company's normal operating cycle.

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in millions):

	As of December 31,
	2023		2022
Contract manufacturer deposits	$	316.4	$	434.7
Prepaid expenses	140.9		104.3
Other current assets	134.2		141.0
Total prepaid expenses and other current assets	$	591.5	$	680.0

Schedule of Property and Equipment, Net

Property and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated using the straight-line method, over the estimated useful lives of the following assets:

	Estimated Useful Life (years)
Computers, equipment, and software (*)	1.5 to 10
Furniture and fixtures	5 to 7
Building and building improvements	7 to 40
Land improvements	10 to 40
Leasehold improvements	Lease term, not to exceed 10 years

________________________________

(*)    Effective January 1, 2024, we increased the expected useful life of certain lab equipment from 3-5 years to 7 years to better reflect the economic value of our assets.

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

	As of December 31,
	2023		2022
Computers and equipment	$	990.0	$	940.0
Software	221.3		220.3
Leasehold improvements	185.9		189.2
Furniture and fixtures	45.3		45.4
Building and building improvements	292.8		271.9
Land and land improvements	243.6		243.6
Construction-in-process	4.1		12.1
Property and equipment, gross	1,983.0		1,922.5
Accumulated depreciation	(1,293.1)		(1,255.7)
Property and equipment, net	$	689.9	$	666.8

Schedule of Warranties

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

	As of December 31,
	2023		2022
Beginning balance	$	29.5	$	33.0
Provisions made during the period, net	31.9		30.1
Actual costs incurred during the period	(32.0)		(33.6)
Ending balance	$	29.4	$	29.5

Schedule of Deferred Revenue

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

	As of December 31,
	2023		2022
Deferred product revenue, net	$	92.1	$	108.8
Deferred service revenue, net	1,932.8		1,554.3
Total	$	2,024.9	$	1,663.1
Reported as:
Current	$	1,130.0	$	1,020.5
Long-term	894.9		642.6
Total	$	2,024.9	$	1,663.1

Schedule of Remaining Performance Obligations

The following table summarizes the breakdown of RPO(1) as of December 31, 2023 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	$	92.9	$	77.3	$	12.9	$	2.7
Service	1,943.9		1,059.2		666.2		218.5
Total	$	2,036.8	$	1,136.5	$	679.1	$	221.2

_______________

(1) The Company's RPO does not include backlog. Backlog consists of purchase orders for product expected to be shipped to the Company's distributors, resellers, or end-customers within the next twelve months. The following amounts are not included in the Company's backlog: (1) deferred revenue, (2) unbilled contract revenue, (3) all service obligations, including software as a service (SaaS), and (4) certain future revenue adjustments for items such as sales return reserves and early payment discounts.

Schedule of Other Expense, Net

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

	Years Ended December 31,
	2023		2022		2021
Interest income	$	50.6	$	19.6	$	14.9
Interest expense	(80.0)		(58.6)		(50.8)
Gain (loss) on other investments, net (1) (2)	6.0		(11.6)		4.9
Other	(0.4)		1.6		1.5
Other expense, net	$	(23.8)	$	(49.0)	$	(29.5)

_______________

(1) Other investments represent fixed income securities and equity investments with readily determinable fair value.

(2) The prior period amounts have been reclassified to conform to the current period presentation.