Accrued Expenses and Other Current Liabilities

9 Months Ended

Sep. 30, 2020

Accrued Expenses and Other Current Liabilities

The components of accrued expenses and other current liabilities were as follows:


(in millions)	September 30, 2020		December 31, 2019
Employee compensation and related costs	$	45.9	$	45.8
Accrued rebates	9.8		7.5
Supplier purchases	5.4		2.4
Value added taxes payable	4.9		1.8
Deferred revenue	4.3		3.2
Short-term lease liability	4.6		3.6
Warranty liability	3.2		4.7
Accrued interest	2.3		1.7
Other	37.8		32.5
Accrued expenses and other current liabilities	$	118.2	$	103.2

Product Warranty Costs

The Company provides a four-year warranty on Personal Diabetes Managers (“PDMs”) sold in the United States and Europe and a five-year warranty on PDMs sold in Canada and may replace Pods that do not function in accordance with product specifications. The Company estimates its warranty at the time the product is shipped based on historical experience and the estimated cost to service the claims. Since the Company continues to introduce new products and versions, the anticipated performance of the product over the warranty period is also considered in estimating warranty reserves. Warranty expense is recorded in cost of revenue in the consolidated statements of operations. Cost to service the claims reflects the current product cost.

The following table is a summary of the activity related to the Company’s product warranty liability:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2020		2019		2020		2019
Product warranty liability at beginning of period	$	8.1	$	6.6	$	8.5	$	6.4
Warranty expense	3.1		3.3		8.3		8.6
Warranty claims settled	(4.2)		(3.1)		(9.8)		(8.2)
Product warranty liability at the end of period	$	7.0	$	6.8	$	7.0	$	6.8