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Financial Statements Details
 12 Months Ended
Dec. 31, 2025
Balance Sheet Components [Abstract]  
Financial Statements Details Financial Statements Details
Inventories
Inventories consist of the following (in millions):
December 31,
20252024
Raw materials $611.2 $565.4 
Finished goods(1)
1,635.9 1,269.2 
Total inventories $2,247.1 $1,834.6 
(1) The balance includes evaluation inventory totaling $403.7 million and $422.1 million as of December 31, 2025 and December 31, 2024, respectively.

Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in millions):
December 31,
20252024
Deferred cost of goods sold(1)
$1,197.0 $291.3 
Other prepaid expenses and deposits313.0 341.0 
Total prepaid expenses and other current assets$1,510.0 $632.3 
(1) The increase in 2025 was driven by a corresponding increase in deferred product revenue.
Property and Equipment, net
Property and equipment, net consists of the following (in millions):
 December 31,
20252024
Land$47.3 $47.2 
Equipment and machinery 188.3 160.7 
Computer hardware and software 66.2 63.9 
Furniture and fixtures 3.7 3.5 
Leasehold improvements 38.4 34.7 
Construction-in-process 107.9 8.2 
Property and equipment, gross 451.8 318.2 
Less: accumulated depreciation (248.7)(219.4)
Property and equipment, net $203.1 $98.8 
Depreciation expense was $30.9 million, $34.0 million and $31.7 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Contract Liabilities, Deferred Revenue and Other Performance Obligations
Contract Liabilities
A contract liability is recognized when we have received customer payments in advance of our satisfaction of a performance obligation under a cancellable contract. The following table summarizes the activity related to our contract liabilities (in millions):
Year Ended December 31,
20252024
Contract liabilities, beginning balance$160.8 $133.2 
Less: Revenue recognized from beginning balance(63.1)(58.3)
Add: Contract liabilities recognized152.4 85.9 
Contract liabilities, ending balance$250.1 $160.8 
As of December 31, 2025 and 2024, $114.0 million and $65.7 million, respectively, of our contract liabilities were recorded within other current liabilities with the remaining balance recorded within other long-term liabilities in the accompanying consolidated balance sheets.
Deferred Revenue
Deferred revenue is comprised mainly of unearned revenue related to product deferrals from contracts with acceptance clauses and, annual and multi-year PCS contracts. The following table summarizes the activity related to our deferred revenue (in millions):
Year Ended December 31,
20252024
Deferred revenue, beginning balance$2,791.4 $1,506.2 
Less: Revenue recognized from beginning balance(1,691.5)(860.2)
Add: Deferral of revenue in current period, excluding amounts recognized during the period4,272.5 2,145.4 
Deferred revenue, ending balance$5,372.4 $2,791.4 
Other Performance Obligations
Other performance obligations totaling $503.1 million as of December 31, 2025 include unbilled multi-year PCS and service contract amounts of $275.5 million and $227.6 million of binding contractual agreements with certain customers that are primarily related to future product shipments.
Revenue from Total Remaining Performance Obligations
Total revenue from our contract liabilities, deferred revenue and other performance obligations that is expected to be recognized in future periods was $6.1 billion as of December 31, 2025. Approximately 90% of this future revenue is expected to be recognized over the next two years and the remaining 10% is expected to be recognized during the third to the fifth year.
Other Income, Net
Other income, net consists of the following (in millions):
Year Ended December 31,
202520242023
Other income (expense), net:
Interest income$383.4 $311.0 $152.4 
Other income (expense)10.2 9.5 12.3 
Total other income, net$393.6 $320.5 $164.7