Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 04, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 000-51222 | ||
Entity Registrant Name | DEXCOM, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 33-0857544 | ||
Entity Address, Address Line One | 6340 Sequence Drive | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92121 | ||
City Area Code | 858 | ||
Local Phone Number | 200-0200 | ||
Title of 12(b) Security | Common Stock, $0.001 Par Value Per Share | ||
Trading Symbol | DXCM | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 38.5 | ||
Entity Common Stock, Shares Outstanding | 96,177,363 | ||
Documents incorporated by reference | Portions of the registrant’s definitive proxy statement relating to its 2021 Annual Meeting of Stockholders (the “Proxy Statement”) are incorporated by reference in Part III, Items 10 through 14 of this Annual Report on Form 10-K, as specified in the responses to those item numbers. Except with respect to information specifically incorporated by reference in the Form 10-K, the Proxy Statement is not deemed to be filed as part hereof. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001093557 | ||
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 817.6 | $ 446.2 |
Short-term marketable securities | 1,890.1 | 1,087.1 |
Accounts receivable, net | 428.5 | 286.3 |
Inventory | 234.7 | 119.8 |
Prepaid and other current assets | 53.9 | 30 |
Total current assets | 3,424.8 | 1,969.4 |
Property and equipment, net | 515.3 | 321.3 |
Operating lease right-of-use assets | 93.3 | 71.5 |
Goodwill | 19.3 | 18.6 |
Deferred tax assets | 216.4 | 0 |
Other assets | 21.4 | 14.2 |
Total assets | 4,290.5 | 2,395 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 481.1 | 256.4 |
Accrued payroll and related expenses | 114.3 | 88.5 |
Short-term operating lease liabilities | 16.5 | 13.6 |
Deferred revenue | 2.2 | 1.7 |
Total current liabilities | 614.1 | 360.2 |
Long-term senior convertible notes | 1,667.2 | 1,059.7 |
Long-term operating lease liabilities | 101.8 | 72.4 |
Other long-term liabilities | 80.9 | 20.1 |
Total liabilities | 2,464 | 1,512.4 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 5.0 million shares authorized; no shares issued and outstanding at December 31, 2020 and December 31, 2019 | 0 | 0 |
Common stock, $0.001 par value, 200.0 million shares authorized; 96.9 million and 96.1 million shares issued and outstanding, respectively, at December 31, 2020; and 92.4 million and 91.6 million shares issued and outstanding, respectively, at December 31, 2019 | 0.1 | 0.1 |
Additional paid-in capital | 2,125.3 | 1,675.9 |
Accumulated other comprehensive income | 3.2 | 2.3 |
Accumulated deficit | (202.1) | (695.7) |
Treasury stock, at cost; 0.8 million shares at December 31, 2020 and December 31, 2019 | (100) | (100) |
Total stockholders’ equity | 1,826.5 | 882.6 |
Total liabilities and stockholders’ equity | $ 4,290.5 | $ 2,395 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.001 | $ 0.001 |
Common stock authorized (shares) | 200,000,000 | 200,000,000 |
Common stock issued (shares) | 96,900,000 | 92,400,000 |
Common stock outstanding (shares) | 96,100,000 | 91,600,000 |
Treasury stock, at cost (shares) | 800,000 | 800,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 1,926.7 | $ 1,476 | $ 1,031.6 |
Cost of sales | 646.6 | 544.5 | 367.7 |
Gross profit | 1,280.1 | 931.5 | 663.9 |
Operating expenses | |||
Research and development | 359.9 | 273.5 | 199.7 |
Collaborative research and development fee | 0 | 0 | 217.7 |
Selling, general and administrative | 620.7 | 515.7 | 432.8 |
Total operating expenses | 980.6 | 789.2 | 850.2 |
Operating income (loss) | 299.5 | 142.3 | (186.3) |
Interest expense | (84.7) | (60.3) | (22.7) |
Loss on extinguishment of debt | (5.9) | 0 | 0 |
Income (loss) from equity investments | 0 | (4.2) | 80.1 |
Interest and other income, net | 16.1 | 26.4 | 2.4 |
Income (loss) before income taxes | 225 | 104.2 | (126.5) |
Income tax expense (benefit) | (268.6) | 3.1 | 0.6 |
Net income (loss) | $ 493.6 | $ 101.1 | $ (127.1) |
Basic net income (loss) per share (USD per share) | $ 5.23 | $ 1.11 | $ (1.44) |
Shares used to compute basic net income (loss) per share (shares) | 94.4 | 91.1 | 88.2 |
Diluted net income (loss) per share (USD per share) | $ 5.06 | $ 1.10 | $ (1.44) |
Shares used to compute diluted net income (loss) per share (shares) | 97.5 | 92.3 | 88.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 493.6 | $ 101.1 | $ (127.1) |
Other comprehensive income, net of tax: | |||
Foreign currency translation gain | 1.1 | 0.4 | 4 |
Unrealized gain (loss) on marketable debt securities | (0.2) | 0.4 | 0.1 |
Total other comprehensive income, net of tax | 0.9 | 0.8 | 4.1 |
Comprehensive income (loss) | $ 494.5 | $ 101.9 | $ (123) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Treasury Stock |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||||
Balance at beginning of period (shares) at Dec. 31, 2017 | 87,000,000 | |||||||
Balance at beginning of period at Dec. 31, 2017 | $ 419.4 | $ 0.1 | $ 1,093.7 | $ (2.6) | $ (671.8) | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock under equity incentive plans (shares) | 1,800,000 | |||||||
Issuance of common stock under equity incentive plans | 1.9 | 1.9 | ||||||
Issuance of common stock for Employee Stock Purchase Plan (shares) | 200,000 | |||||||
Issuance of common stock for Employee Stock Purchase Plan | 8.9 | 8.9 | ||||||
Issuance of common stock for collaborative research and development fee (shares) | 1,800,000 | |||||||
Issuance of common stock for collaborative research and development fee | 217.7 | 217.7 | ||||||
Convertible note hedge | (218.9) | (218.9) | ||||||
Equity component of convertible note issuance, net of issuance costs | $ 171.6 | 171.6 | ||||||
Purchases of treasury stock (shares) | (800,000) | (800,000) | ||||||
Purchases of treasury stock | $ (100) | (100) | ||||||
Sale of warrants | 183.8 | 183.8 | ||||||
Share-based compensation expense | 101.9 | 101.9 | ||||||
Net income (loss) | (127.1) | (127.1) | ||||||
Other comprehensive income, net of tax | 4.1 | 4.1 | ||||||
Balance at end of period (shares) at Dec. 31, 2018 | 90,000,000 | |||||||
Balance at end of period at Dec. 31, 2018 | 663.3 | $ 2.1 | $ 0.1 | 1,560.6 | 1.5 | (798.9) | $ 2.1 | (100) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock under equity incentive plans (shares) | 1,400,000 | |||||||
Issuance of common stock under equity incentive plans | 0.3 | 0.3 | ||||||
Issuance of common stock for Employee Stock Purchase Plan (shares) | 200,000 | |||||||
Issuance of common stock for Employee Stock Purchase Plan | 11.6 | 11.6 | ||||||
Tax benefit from Notes | $ 0.7 | 0.7 | ||||||
Purchases of treasury stock (shares) | 0 | |||||||
Share-based compensation expense | $ 102.7 | 102.7 | ||||||
Net income (loss) | 101.1 | 101.1 | ||||||
Other comprehensive income, net of tax | 0.8 | 0.8 | ||||||
Balance at end of period (shares) at Dec. 31, 2019 | 91,600,000 | |||||||
Balance at end of period at Dec. 31, 2019 | 882.6 | $ 0.1 | 1,675.9 | 2.3 | (695.7) | (100) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock under equity incentive plans (shares) | 1,100,000 | |||||||
Issuance of common stock under equity incentive plans | 0.3 | 0.3 | ||||||
Issuance of common stock for Employee Stock Purchase Plan | 15 | 15 | ||||||
Equity component of convertible note issuance, net of issuance costs | 289.4 | 289.4 | ||||||
Tax benefit from Notes | (62.5) | (62.5) | ||||||
Repurchase and conversions of 2022 notes (in shares) | 3,400,000 | |||||||
Repurchase and conversions of 2022 Notes | $ 87.8 | 87.8 | ||||||
Purchases of treasury stock (shares) | 0 | |||||||
Share-based compensation expense | $ 119.4 | 119.4 | ||||||
Net income (loss) | 493.6 | 493.6 | ||||||
Other comprehensive income, net of tax | 0.9 | 0.9 | ||||||
Balance at end of period (shares) at Dec. 31, 2020 | 96,100,000 | |||||||
Balance at end of period at Dec. 31, 2020 | $ 1,826.5 | $ 0.1 | $ 2,125.3 | $ 3.2 | $ (202.1) | $ (100) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Net income (loss) | $ 493.6 | $ 101.1 | $ (127.1) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||
Depreciation and amortization | 67.1 | 48.7 | 29.1 |
Share-based compensation | 119.4 | 102.7 | 101.9 |
Loss on extinguishment of debt | 5.9 | 0 | 0 |
Non-cash interest expense | 74 | 49.6 | 17.9 |
Non-cash collaborative research and development fee through issuance of common stock | 0 | 0 | 217.7 |
Unrealized gain on equity investment | 0 | 0 | (36) |
Realized (gain) loss on equity investment | 0 | 4.2 | (44.1) |
Deferred income taxes (including benefit from valuation allowance release) | (277.3) | 0.2 | (2.2) |
Other non-cash income and expenses | 13.7 | 1.9 | 6.9 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (142.3) | (60) | (93.2) |
Inventory | (114.5) | (49.1) | (25.5) |
Prepaid and other assets | (2.4) | (7.2) | (3) |
Operating lease right-of-use assets and liabilities, net | (0.8) | (2.4) | 0 |
Accounts payable and accrued liabilities | 194.5 | 109 | 56.2 |
Accrued payroll and related expenses | 26.1 | 16 | 23.8 |
Deferred revenue and other liabilities | 18.6 | (0.2) | 0.8 |
Net cash provided by operating activities | 475.6 | 314.5 | 123.2 |
Investing activities | |||
Purchase of marketable securities | (3,058.2) | (2,030.4) | (452.5) |
Proceeds from sale and maturity of marketable securities | 2,250.5 | 1,196.4 | 392.1 |
Purchases of property and equipment | (199) | (180) | (67.1) |
Acquisitions, net of cash acquired | 0 | 0 | (11.3) |
Other investing activities | (11.3) | (1.2) | (1) |
Net cash used in investing activities | (1,018) | (1,015.2) | (139.8) |
Financing activities | |||
Net proceeds from issuance of common stock | 15.3 | 11.9 | 10.8 |
Purchases of treasury stock | 0 | 0 | (100) |
Proceeds from issuance of convertible notes, net of issuance costs | 1,188.8 | 0 | 836.6 |
Repurchase of convertible notes | (282.6) | 0 | 0 |
Proceeds from sale of warrants | 0 | 0 | 183.8 |
Purchase of convertible note hedge | 0 | 0 | (218.9) |
Other financing activities | (9.4) | (1.2) | (1.9) |
Net cash provided by financing activities | 912.1 | 10.7 | 710.4 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 2.1 | (0.7) | 1.8 |
Increase (decrease) in cash, cash equivalents and restricted cash | 371.8 | (690.7) | 695.6 |
Cash, cash equivalents and restricted cash, beginning of period | 446.4 | 1,137.1 | 441.5 |
Cash, cash equivalents and restricted cash, end of period | 818.2 | 446.4 | 1,137.1 |
Reconciliation of cash, cash equivalents and restricted cash, end of period: | |||
Total cash, cash equivalents and restricted cash | 818.2 | 1,137.1 | 1,137.1 |
Supplemental disclosure of non-cash investing and financing transactions: | |||
Common stock issued for repurchase and conversions of senior convertible notes | 1,350.9 | 0 | 0 |
Acquisition of property and equipment included in accounts payable and accrued liabilities | 35.3 | 14.2 | 10.8 |
Supplemental cash flow information: | |||
Cash paid during the year for interest | 10.6 | 10.4 | 3.6 |
Cash paid during the year for income taxes | $ 3.6 | $ 4.8 | $ 2.3 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Significant Accounting Policies | 1. Organization and Significant Accounting Policies Organization and Business DexCom, Inc. is a medical device company that develops and markets continuous glucose monitoring, or CGM, systems for the management of diabetes by patients, caregivers, and clinicians around the world. Unless the context requires otherwise, the terms “we,” “us,” “our,” the “company,” or “Dexcom” refer to DexCom, Inc. and its subsidiaries. Basis of Presentation and Principles of Consolidation These consolidated financial statements include the accounts of DexCom, Inc. and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation. The functional currencies of our international subsidiaries are generally the local currencies. We translate the financial statements of our foreign subsidiaries into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for each period for revenue, costs and expenses. We include translation-related adjustments in comprehensive income (loss) and in accumulated other comprehensive income in the equity section of our consolidated balance sheets. Gains and losses resulting from certain intercompany transactions as well as transactions with customers and vendors that are denominated in currencies other than the functional currency of each entity give rise to foreign exchange gains or losses that we record in interest and other income, net in our consolidated statements of operations. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires us to make certain estimates and assumptions that affect the amounts reported in our consolidated financial statements and the disclosures made in the accompanying notes. Areas requiring significant estimates include pharmacy rebates, transaction price, net accounts receivable, excess or obsolete inventories and the valuation of inventory, and accruals for litigation contingencies. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates. Fair Value Measurements The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows: Level 1—Unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2—Inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly, through correlation with market data. These include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the determination of fair value. Level 3 assets and liabilities include those whose fair values are determined using pricing models, discounted cash flow methodologies, or similar valuation techniques and significant judgment or estimation. We carry our marketable securities at fair value. We carry our other financial instruments, such as cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities, at cost, which approximates the related fair values due to the short-term maturities of these instruments. For more information see Note 3, “Fair Value Measurements.” Cash and Cash Equivalents We consider highly liquid investments with a maturity of 90 days or less at the time of purchase to be cash equivalents. Marketable Securities We have classified our marketable securities with remaining maturity at purchase of more than three months and remaining maturities of one year or less as short-term marketable securities. We have also classified marketable securities with remaining maturities of greater than one year as short-term marketable securities based upon our ability and intent to use any and all of those marketable securities to satisfy the liquidity needs of our current operations. We calculate realized gains or losses on our marketable securities using the specific identification method. We carry our marketable debt securities at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity in our consolidated balance sheets and included in comprehensive income (loss). Realized gains and losses on marketable debt securities are included in interest and other income, net in our consolidated statements of operations. We carry our marketable equity securities at fair value with realized and unrealized gains and losses reported in income on equity investments in our consolidated statements of operations. We invest in various types of debt securities, including debt securities in government-sponsored entities, corporate debt securities, U.S. Treasury securities and commercial paper. We do not generally intend to sell these investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. See Note 3, “Fair Value Measurements” and Note 4, “Balance Sheet Details – Short-Term Marketable Securities ” for more information on our marketable debt securities and our marketable equity securities. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are generally recorded at the invoiced amount for distributors and at net realizable value for direct customers, which is determined using estimates of claim denials and historical reimbursement experience without regard to aging category. Accounts receivable are not interest bearing. We evaluate the creditworthiness of significant customers based on historical trends, the financial condition of our customers, and external market factors. We generally do not require collateral from our customers. We maintain an allowance for doubtful accounts for potential credit losses. Uncollectable accounts are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a customer account is uncollectable. Generally, receivable balances greater than one year past due are deemed uncollectable. Concentration of Credit Risk and Significant Customers Financial instruments which potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term marketable securities, and accounts receivable. We limit our exposure to credit risk by placing our cash and investments with high credit quality financial institutions. We have also established guidelines regarding diversification of our investments and their maturities that are designed to maintain principal and maximize liquidity. We review these guidelines periodically and modify them to take advantage of trends in yields and interest rates and changes in our operations and financial position. The following table sets forth the percentages of total revenue or gross accounts receivable for customers that represent 10% or more of the respective amounts for the periods shown: Revenue Gross Accounts Receivable Twelve Months Ended As of December 31, 2020 2019 2018 2020 2019 Distributor A 23 % 17 % 15 % 19 % 21 % Distributor B 11 % 12 % 12 % 10 % * Distributor C 18 % 10 % * 12 % * Distributor D 11 % * * * * * Less than 10% Inventory Inventory is valued at the lower of cost or net realizable value on a part-by-part basis that approximates first in, first out. We record adjustments to inventory for potentially excess, obsolete or scrapped goods in order to state inventory at net realizable value. Factors influencing these adjustments include inventories on hand and on order compared to estimated future usage and sales for existing and new products, as well as judgments regarding quality control testing data and assumptions about the likelihood of scrap and obsolescence. Once written down the adjustments are considered permanent and are not reversed until the related inventory is sold or disposed of. Our products require customized products and components that currently are available from a limited number of sources. We purchase certain components and materials from single sources due to quality considerations, costs or constraints resulting from regulatory requirements. Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. We capitalize additions and improvements and expense maintenance and repairs as incurred. We calculate depreciation using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are generally three years for computer software and hardware, four We review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We estimate the recoverability of the asset by comparing the carrying amount to the future undiscounted cash flows that we expect the asset to generate. We estimate the fair value of the asset based on the present value of future cash flows for those assets. If the carrying value of an asset exceeds its estimated fair value, we would record an impairment loss equal to the difference. Goodwill We record goodwill when the fair value of consideration transferred in a business combination exceeds the fair value of the identifiable assets acquired and liabilities assumed. Goodwill and other intangible assets that have indefinite useful lives are not amortized, but we test them annually for impairment in the fourth quarter of our fiscal year and whenever events or changes in circumstances indicate that it is more likely than not that the fair value is less than the carrying value. Events that would indicate impairment and trigger an interim impairment assessment include, but are not limited to, current economic and market conditions, including a decline in market capitalization, a significant adverse change in legal factors, business climate or operational performance of the business, and an adverse action or assessment by a regulator. We perform our goodwill impairment analysis at the reporting unit level, which aligns with Dexcom’s reporting structure and the availability of discrete financial information. We perform the first step of our annual impairment analysis by either comparing a reporting unit’s estimated fair value to its carrying amount or doing a qualitative assessment of a reporting unit’s fair value from the last quantitative assessment to determine if there is potential impairment. We may do a qualitative assessment when the results of the previous quantitative test indicated the reporting unit’s estimated fair value was significantly in excess of the carrying value of its net assets and we do not believe there have been significant changes in the reporting unit’s operations that would significantly decrease its estimated fair value or significantly increase its net assets. If a quantitative assessment is performed the evaluation includes management estimates of cash flow projections based on internal future projections and/or use of a market approach by looking at market values of comparable companies. Key assumptions for these projections include revenue growth, future gross margin and operating margin growth, and weighted cost of capital and terminal growth rates. The revenue and margin growth are based on increased sales of new and existing products as we maintain investments in research and development. Additional assumed value creators may include increased efficiencies from capital spending. The resulting cash flows are discounted using a weighted average cost of capital. Operating mechanisms and requirements to ensure that growth and efficiency assumptions will ultimately be realized are also considered in the evaluation, including the timing and probability of regulatory approvals for our products to be commercialized. We also consider Dexcom’s market capitalization as a part of our analysis. If the estimated fair value of a reporting unit exceeds the carrying amount of the net assets assigned to that unit, goodwill is not impaired and no further analysis is required. If the carrying value of the net assets assigned to a reporting unit exceeds the estimated fair value of the unit, we perform the second step of the impairment test. In this step we allocate the fair value of the reporting unit calculated in step one to all of the assets and liabilities of that unit, as if we had just acquired the reporting unit in a business combination. The excess of the fair value of the reporting unit over the total amount allocated to the assets and liabilities represents the implied fair value of goodwill. If the carrying amount of a reporting unit’s goodwill exceeds its implied fair value, we would record an impairment loss equal to the difference. We recorded no goodwill impairment charges for the twelve months ended December 31, 2020, 2019 or 2018. The change in goodwill for the twelve months ended December 31, 2020 and December 31, 2019 consisted of translation adjustments on our foreign currency denominated goodwill. The change in goodwill for the twelve months ended December 31, 2018 consisted of goodwill we recorded for acquisitions that were not significant, individually or in the aggregate, and translation adjustments on our foreign currency denominated goodwill. Intangible Assets and Other Long-Lived Assets Intangible assets are included in other assets in our consolidated balance sheets. We amortize intangible assets with a finite life, such as acquired technology, customer relationships, trade names and trademarks, on a straight-line basis over their estimated useful lives, which range from two Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Significant judgment is required to evaluate the need for a valuation allowance against deferred tax assets. We review all available positive and negative evidence, including projections of pre-tax book income, earnings history, reliability of forecasting, and reversal of temporary differences. A valuation allowance is established when it is more likely than not that some or all of the deferred tax assets will not be realized. Realization of deferred tax assets is dependent upon future earnings in applicable tax jurisdictions. Prior to 2020, due to our US operating losses and earnings volatility in previous years, which did not allow sustainable profitability, we had established and maintained a full valuation allowance on our deferred tax assets. In 2020, we achieved three years cumulative income and expect to continue that profitability in future years. We analyzed both positive and negative evidence, and as a result released our valuation allowance on our deferred tax assets. We maintain the valuation allowance on our California research and development tax credits and certain foreign intangible assets, as it is more likely than not that those deferred tax assets will not be realized. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We file federal and state income tax returns in the United States and income tax returns in various other foreign jurisdictions with varying statutes of limitations. Due to net operating losses incurred, our income tax returns from inception to date are subject to examination by taxing authorities. We recognize interest expense and penalties related to income tax matters, including unrecognized tax benefits, as a component of income tax expense. Warranty Accrual Estimated warranty costs associated with a product are recorded at the time revenue is recognized. We estimate future warranty costs by analyzing historical warranty experience for the timing and amount of returned product, and expectations for future warranty activity based on changes and improvements to the product or process that are in place or will be in place in the future. We evaluate these estimates on at least a quarterly basis to determine the continued appropriateness of our assumptions. Loss Contingencies If the potential loss from a claim or legal proceeding is considered probable and the amount can be reasonably estimated, we record a liability and an expense for the estimated loss and disclose it in our financial statements if it is significant. If we determine that a loss is possible and the range of the loss can be reasonably determined, then we disclose the range of the possible loss. Significant judgment is required in the determination of whether a potential loss is probable, reasonably possible, or remote as well as in the determination of whether a potential exposure is reasonably estimable. Comprehensive Income (Loss) Comprehensive income (loss) consists of two elements, net income (loss) and other comprehensive income. We report all components of comprehensive income (loss), including net income (loss), in our financial statements in the period in which they are recognized. Total comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. We report net income (loss) and the components of other comprehensive income, including foreign currency translation adjustments and unrealized gains and losses on marketable securities, net of their related tax effect to arrive at total comprehensive income (loss). Revenue Recognition We generate our revenue from the sale of our reusable transmitter and receiver, collectively referred to as Reusable Hardware, and disposable sensors. We refer to Reusable Hardware and disposable sensors in this section as Components. We generally recognize revenue when control is transferred to our customers in an amount that reflects the net consideration to which we expect to be entitled. In determining how revenue should be recognized, a five-step process is used which includes identifying performance obligations in the contract, determining whether the performance obligations are separate, allocating the transaction price to each separate performance obligation, estimating the amount of variable consideration to include in the transaction price and determining the timing of revenue recognition for separate performance obligations. Policy Elections and Practical Expedients Taken • We report revenue net of taxes collected from customers, which are subsequently remitted to governmental authorities; • We account for shipping and handling activities that are performed after a customer has obtained control of a good as fulfillment costs rather than as separate performance obligations; • We do not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer; and • If we expect, at contract inception, that the period between the transfer of control and corresponding payment from the customer will be one year or less, we do not adjust the amount of consideration for the effects of a significant financing component. Contracts and Performance Obligations We consider customer purchase orders, which in most cases are governed by agreements with distributors or third-party payors, to be contracts with a customer. For each contract, we consider the obligation to transfer Components to the customer, each of which are distinct, to be separate performance obligations. We also provide free-of-charge software, mobile applications and updates for our Dexcom Share ® remote monitoring system. The standalone selling prices of our free-of-charge software, mobile applications and updates are estimated based on an expected cost plus a margin approach. Transaction Price Transaction price for the Components reflects the net consideration to which we expect to be entitled. Transaction price is typically based on the contracted rates less an estimate of claim denials and historical reimbursement experience by payor, which include current and future expectations regarding reimbursement rates and payor mix. Variable Consideration We include an estimate of variable consideration in the calculation of the transaction price at the time of sale, when control of the Components transfers to the customer. Variable consideration includes but is not limited to rebates, chargebacks, consideration payable to customers such as specialty distributor and wholesaler fees, product returns provision, prompt payment discounts, and various other promotional or incentive arrangements. We classify our provisions related to variable consideration as a reduction of accounts receivable when we are not required to make a payment or as a liability when we are required to make a payment. Rebates We are subject to rebates on pricing programs with managed care organizations, such as pharmacy benefit managers, governmental and third-party commercial payors, primarily in the U.S. We estimate provisions for rebates based on contractual arrangements, estimates of products sold subject to rebate, known events or trends and channel inventory data. Chargebacks We participate in chargeback programs, primarily with government entities in the U.S., under which pricing on products below negotiated list prices is provided to participating entities and equal to the difference between their acquisition cost and the lower negotiated price. We estimate provisions for chargebacks primarily based on historical experience on a product and program basis, current contract prices under the chargeback programs and channel inventory data. Consideration Payable to the Customer We pay administrative and service fees to certain of our distributors based on a fixed percentage of the product price. These fees are not in exchange for a distinct good or service and therefore are recognized as a reduction of the transaction price. We accrue for these fees based on actual net sales and contractual fee rates negotiated with the customer. Product Returns In accordance with the terms of their distribution agreements, most distributors do not have rights of return outside of our limited warranty. The distributors typically have a limited time frame to notify us of any missing, damaged, defective or non-conforming products. We generally provide a “30-day money back guarantee” program whereby first-time end-user customers may return Reusable Hardware. We estimate our product returns provision principally based on historical experience by applying a historical return rate to the amounts of revenue estimated to be subject to returns. Additionally, we consider other specific factors such as estimated shelf life of inventory in the distribution channel and changes to customer terms. Prompt Payment Discounts We provide customers with prompt payment discounts which may result in adjustments to the price that is invoiced for the product transferred, in the case that payments are made within a defined period. We estimate prompt payment discount accruals based on actual net sales and contractual discount rates. Various Other Promotional or Incentive Arrangements Other promotional or incentive arrangements are periodically offered to customers, including but not limited to co-payment assistance we provide to patients with commercial insurance, promotional programs related to the launch of products or other targeted promotions. We record a provision for the incentive earned based on the number of estimated claims and our estimate of the cost per claim related to product sales that we have recognized as revenue. Revenue Recognition The timing of revenue recognition is based on the satisfaction of performance obligations. Substantially all of the performance obligations associated with our Components are satisfied at a point in time, which typically occurs at shipment of our products. Terms of direct and distributor orders are generally Freight on Board (FOB) shipping point for U.S. orders or Free Carrier (FCA) shipping point for international orders. For certain sales transactions, control transfers at delivery of the product to the customer. In cases where our free-of-charge software, mobile applications and updates are deemed to be separate performance obligations, revenue is recognized over time on a ratable basis over the estimated life of the related Reusable Hardware component. Our sales of Components include an assurance-type warranty. Contract Balances Contract balances represent amounts presented in our consolidated balance sheets when either we have transferred goods or services to the customer or the customer has paid consideration to us under the contract. These contract balances include accounts receivable and deferred revenue. Payment terms vary by contract type and type of customer and generally range from 30 to 90 days. Accounts receivable as of December 31, 2020 included unbilled accounts receivable of $10.4 million. Unbilled accounts receivable consists of revenue recognized for Components we have delivered but not yet invoiced to customers. We expect to invoice and collect all unbilled accounts receivable within twelve months. We record deferred revenue when we have entered into a contract with a customer and cash payments are received or due prior to transfer of control or satisfaction of the related performance obligation. Our performance obligations are generally satisfied within 12 months of the initial contract date. The deferred revenue balances related to performance obligations that will be satisfied after 12 months was $8.2 million as of December 31, 2020 and $2.1 million as of December 31, 2019. These balances are included in other long-term liabilities in our consolidated balance sheets. Revenue recognized in the period from performance obligations satisfied in previous periods was not material for the periods presented. Deferred Cost of Sales Deferred cost of sales are associated with sales for which revenue recognition criteria are not met but product has shipped and released from inventory. Deferred cost of sales are included in prepaid and other current assets in our consolidated balance sheets. Incentive Compensation Costs We generally expense incentive compensation associated with our internal sales force when incurred because the amortization period for such costs, if capitalized, would have been one Product Shipment Costs We record the amounts we charge our customers for the shipping and handling of our products in revenue and we record the related costs as cost of sales in our statements of operations. Research and Development We expense costs of research and development as we incur them. Our research and development expenses primarily consist of engineering and research expenses related to our continuous glucose monitoring technology, clinical trials, regulatory expenses, quality assurance programs, materials and products for clinical trials. Research and development expenses primarily consist of employee compensation, including salary, fringe benefits, share-based compensation, and temporary employee expenses. We also incur significant expenses to operate our clinical trials that include clinical site reimbursement, clinical trial product, and associated travel expenses. Our research and development expenses also include fees for design services, contractors, and development materials. Our CGM systems include certain software that we develop. We expense software development costs as we incur them until technological feasibility has been established, at which time we capitalize development costs until the product is available for general release to customers. To date, our software has been available for general release concurrent with the establishment of technological feasibility and, accordingly, we have not capitalized any development costs. Advertising Costs We expense costs to produce advertising as we incur them whereas costs to communicate advertising are expensed when the advertising is first run. Advertising costs are included in selling, general and administrative expenses. Advertising expense was $76.5 million, $33.1 million and $24.0 million for the twelve months ended December 31, 2020, 2019 and 2018, respectively. Leases We determine if an arrangement is a lease at inception. Lease right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in most of our leases is not readily determinable. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in similar economic environments. The operating lease right-of-use asset also includes any lease payments made and excludes lease incentives. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease payments that do not depend on a rate or index, payments associated with non-lease components, and costs related to leases with terms of less than 12 months are expensed as incurred. Share-Based Compensation Share-based compensation expense is measured at the grant date based on the estimated fair value of the award and is recognized straight-line over the requisite service period of the individual grants, which typically equals the vesting period. We value time-based Restricted Stock Units or RSUs at the date of grant using the intrinsic value method. Certain RSUs granted to senior management vest based on the achievement of pre-established performance or market goals. We estimate the fair value of performance/market-based RSUs at the date of grant using the intrinsic value method and the probability that the specified performance criteria will be met. We update our assessment of the probability that the specified performance criteria will be achieved each quarter and adjust our estimate of the fair value of the performance-based RSUs if necessary. The Monte Carlo methodology that we use to estimate the fair value of market-based RSUs at the date of grant incorporates into the valuation the possibility that the market condition may not be satisfied. Provided that the requisite service is rendered, the total fair value of the market-based RSUs at the date of grant must be recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the performance |
Development and Other Agreement
Development and Other Agreements | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Development and Other Agreements | 2. Development and Other Agreements Collaboration with Verily Life Sciences On November 20, 2018, we entered into an Amended and Restated Collaboration and License Agreement with Verily Life Sciences LLC (an Alphabet Company) and Verily Ireland Limited (collectively, Verily), which we refer to as the Restated Collaboration Agreement. This replaced our original Collaboration and License Agreement with Verily dated August 10, 2015, as amended in October 2016, including the royalty obligations provisions under that original agreement. Pursuant to the Restated Collaboration Agreement, we and Verily have agreed to continue to jointly develop a certain next-generation CGM product, and potentially one or more additional CGM products, for which we will have exclusive commercialization rights. The Restated Collaboration Agreement also provides us with an exclusive license to use intellectual property of Verily resulting from the collaboration, and certain Verily patents, in the development, manufacture and commercialization of blood-based or interstitial glucose monitoring products more generally (subject to certain exclusions, which are outside of the CGM field as it is commonly understood). It also provides us with non-exclusive license rights under Verily’s other intellectual property rights to develop, manufacture and commercialize those kinds of glucose monitoring products and certain CGM-product companion software functionalities. The Restated Collaboration Agreement requires us to use commercially reasonable efforts to develop, launch and commercialize the CGM product(s) that are the subject of the collaboration according to certain timing and other objectives, and provides for one executive sponsor from each of Dexcom and Verily to meet periodically and make decisions related to the collaboration (within a limited scope of authority) by consensus. In consideration of Verily’s performance of its obligations under the joint development plan of the Restated Collaboration Agreement, the licenses granted to us and the amendment of the original agreement, we have made upfront and incentive payments and we will make potential future milestone payments upon the achievement of certain goals. In the fourth quarter of 2018, we made an initial payment of $250.0 million through the issuance of 1,840,943 shares of our common stock. We recorded a $217.7 million charge in our consolidated statements of operations during 2018 relating to the issuance of this common stock because this milestone payment did not meet the capitalization criteria. The amount of the charge was based on our closing stock price of $118.28 per share on December 28, 2018, the date on which we obtained the necessary regulatory approvals and the transaction closed. During 2020 we made no incentive payments, while in 2019 we made incentive payments of $3.2 million due to the completion of certain development obligations and we recorded these payments as research and development expense in our consolidated statements of operations. Additional milestone payments of up to a total of $275.0 million may become due and payable by us upon the achievement of future development, product regulatory approval and revenue milestones. These payments may be paid in cash or shares of our common stock, at our election. If we elect to make all $275.0 million of these payments in shares, we will issue a total of 2,025,036 shares of our common stock, based on the volume weighted average trading price during the 15 consecutive days ending on the date of the Restated Collaboration Agreement. Alternatively, if we elect to make all $275.0 million of these payments in cash, any such cash payment would be equal to the number of shares that would otherwise be issued for the given milestone payment multiplied by the value of our stock on the date the relevant milestone is achieved, adjusted for stock splits, dividends, and the like. The Restated Collaboration Agreement will continue until December 31, 2028, unless terminated by either party upon uncured material breach of the Restated Collaboration Agreement by the other party. Upon achievement of the first revenue milestone event and payment of the corresponding milestone fee by us, the term of the Restated Collaboration Agreement will be extended until December 31, 2033. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis We estimate the fair value of our Level 1 financial instruments, which are in active markets, using unadjusted quoted market prices for identical instruments. We obtain the fair values for our Level 2 financial instruments, which are not in active markets, from a primary professional pricing source that uses quoted market prices for identical or comparable instruments, rather than direct observations of quoted prices in active markets. Fair values obtained from this professional pricing source can also be based on pricing models whereby all significant observable inputs, including maturity dates, issue dates, settlement dates, benchmark yields, reported trades, broker-dealer quotes, issue spreads, benchmark securities, bids, offers or other market related data, are observable or can be derived from, or corroborated by, observable market data for substantially the full term of the asset. We validate the quoted market prices provided by our primary pricing service by comparing the fair values of our Level 2 marketable securities portfolio balance provided by our primary pricing service against the fair values of our Level 2 marketable securities portfolio balance provided by our investment managers. The following table summarizes financial assets that we measured at fair value on a recurring basis as of December 31, 2020, classified in accordance with the fair value hierarchy: Fair Value Measurements Using (In millions) Level 1 Level 2 Level 3 Total Cash equivalents $ 491.5 $ 150.0 $ — $ 641.5 Debt securities, available for sale: U.S. government agencies — 1,570.4 — 1,570.4 Commercial paper — 258.8 — 258.8 Corporate debt — 60.9 — 60.9 Total debt securities, available for sale — 1,890.1 — 1,890.1 Other assets (1) 3.4 — — 3.4 Total assets measured at fair value on a recurring basis $ 494.9 $ 2,040.1 $ — $ 2,535.0 (1) Includes assets which are held pursuant to a deferred compensation plan for senior management, which consist mainly of mutual funds. The following table summarizes financial assets that we measured at fair value on a recurring basis as of December 31, 2019, classified in accordance with the fair value hierarchy: Fair Value Measurements Using (In millions) Level 1 Level 2 Level 3 Total Cash equivalents $ 110.1 $ 144.9 $ — $ 255.0 Debt securities, available for sale: U.S. government agencies — 676.0 — 676.0 Commercial paper — 248.2 — 248.2 Corporate debt — 162.9 — 162.9 Total debt securities, available for sale — 1,087.1 — 1,087.1 Other assets (1) 0.7 — — 0.7 Total assets measured at fair value on a recurring basis $ 110.8 $ 1,232.0 $ — $ 1,342.8 (1) Includes assets which are held pursuant to a deferred compensation plan for our executives, which consist mainly of mutual funds. There were no transfers between Level 1 and Level 2 securities during the years ended December 31, 2020 and 2019. There were no transfers into or out of Level 3 securities during the years ended December 31, 2020 and 2019. We hold certain other investments that we do not measure at fair value on a recurring basis. The carrying values of these investments are not significant and we include them in other assets in our consolidated balance sheets. It is impracticable for us to estimate the fair value of these investments on a recurring basis due to the fact that these entities are often privately held and limited information is available. We monitor the information that becomes available from time to time and adjust the carrying values of these investments if there are identified events or changes in circumstances that have a significant adverse effect on the fair values. Fair Value of Senior Convertible Notes The fair value, based on trading prices (Level 1), of our senior convertible notes were as follows as of the dates indicated: Fair Value Measurements Using Level 1 (In millions) December 31, 2020 December 31, 2019 Senior Convertible Notes due 2022 * * $ 890.8 Senior Convertible Notes due 2023 $ 1,936.4 1,260.0 Senior Convertible Notes due 2025 1,219.2 * Total fair value of outstanding senior convertible notes $ 3,155.6 $ 2,150.8 *Not applicable as no notes were outstanding at this date. For more information on the carrying values of our senior convertible notes, see Note 5, “Debt.” Foreign Currency and Derivative Financial Instruments From time to time we engage in hedging transactions to reduce foreign currency risks. The fair values of these derivatives are based on quoted market prices, which are Level 1 inputs, and the derivative instruments are recorded in current assets or current liabilities in our consolidated balance sheets consistent with the nature of the instrument at period end. Derivative gains and losses are included in interest and other income, net in our consolidated statements of operations. As of December 31, 2020 and December 31, 2019, notional amounts of $48.0 million and $8.0 million, respectively, were outstanding to hedge certain foreign currency risk. The resulting impact on our consolidated financial statements from currency hedging activities was not significant for the twelve months ended December 31, 2020, 2019 and 2018. Our foreign currency exposures vary but are primarily concentrated in the British Pound, the Euro, and the Canadian Dollar. We monitor the costs and the impact of foreign currency risks upon our financial results as part of our risk management program. We do not use derivative financial instruments for speculation or trading purposes or for activities other than risk management. We do not require and are not required to pledge collateral for these financial instruments and we do not carry any master netting arrangements to mitigate the credit risk. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheet Details | 4. Balance Sheet Details Short-Term Marketable Securities Short-term marketable securities, consisting of debt securities, were as follows as of the dates indicated: December 31, 2020 (In millions) Amortized Gross Gross Estimated Debt securities, available for sale: U.S. government agencies $ 1,570.4 $ 0.1 $ (0.1) $ 1,570.4 Commercial paper 258.7 0.1 — 258.8 Corporate debt 60.9 — — 60.9 Total debt securities, available for sale $ 1,890.0 $ 0.2 $ (0.1) $ 1,890.1 December 31, 2019 (In millions) Amortized Gross Gross Estimated Debt securities, available for sale: U.S. government agencies $ 675.6 $ 0.4 $ — $ 676.0 Commercial paper 248.1 0.1 — 248.2 Corporate debt 163.0 — (0.1) 162.9 Total debt securities, available for sale $ 1,086.7 $ 0.5 $ (0.1) $ 1,087.1 As of December 31, 2020 and 2019, all of our debt securities had contractual maturities of less than twelve months. Gross realized gains and losses on sales of our debt securities for the twelve months ended December 31, 2020, 2019 and 2018 were not significant. We periodically review our portfolio of debt securities to determine if any investment is impaired due to credit loss or other potential valuation concerns. For debt securities where the fair value of the investment is less than the amortized cost basis, we have assessed at the individual security level for various quantitative factors including, but not limited to, the nature of the investments, changes in credit ratings, interest rate fluctuations, industry analyst reports, and the severity of impairment. Unrealized losses on available-for-sale debt securities at December 31, 2020 were not significant and were primarily due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities. Accordingly, we have not recorded an allowance for credit losses. We do not intend to sell these investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. The following table reconciles the net gain recognized on marketable equity securities during the twelve months ended December 31, 2020, 2019 and 2018 to the unrealized gain recognized during those periods on equity securities still held at the reporting dates. Twelve Months Ended (In millions) 2020 2019 2018 Net gains and losses recognized during the period on equity securities $ — $ (4.2) $ 80.1 Less: Net gains and losses recognized during the period on equity securities sold during the period — 4.2 (44.1) Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ — $ — $ 36.0 Accounts Receivable December 31, (In millions) 2020 2019 Accounts receivable $ 435.7 $ 292.1 Less allowance for doubtful accounts (7.2) (5.8) Total accounts receivable, net $ 428.5 $ 286.3 Inventory December 31, (In millions) 2020 2019 Raw materials $ 69.9 $ 64.9 Work-in-process 14.2 11.1 Finished goods 150.6 43.8 Total inventory $ 234.7 $ 119.8 During the twelve months ended December 31, 2020 and 2019, we recorded excess and obsolete inventory charges of $24.4 million and $14.1 million, respectively, in cost of sales as a result of our ongoing assessment of sales demand, inventory on hand for each product and the continuous improvement and innovation of our products. During the twelve months ended December 31, 2018, we recorded excess and obsolete inventory charges of $7.3 million in cost of sales primarily as a result of the approval and launch of our G6 system and our ongoing assessment of sales demand and the continuous improvement and innovation of our products. Property and Equipment December 31, (In millions) 2020 2019 Land (1) $ 15.6 $ — Building (1) 49.2 15.5 Furniture and fixtures 15.3 12.8 Computer software and hardware 35.7 32.7 Machinery and equipment 198.9 130.2 Leasehold improvements 135.8 102.5 Construction in progress 219.0 132.6 Total cost 669.5 426.3 Less accumulated depreciation and amortization (154.2) (105.0) Total property and equipment, net $ 515.3 $ 321.3 (1) Represents our finance lease right-of-use assets. Depreciation expense related to property and equipment for the twelve months ended December 31, 2020, 2019 and 2018 was $64.0 million, $46.9 million, and $28.6 million, respectively. Loss on disposal of property and equipment during the twelve months ended December 31, 2020, 2019 and 2018 recorded in operating expenses was $13.6 million, $10.5 million and $5.4 million, respectively. Accounts Payable and Accrued Liabilities December 31, (In millions) 2020 2019 Accounts payable trade $ 163.3 $ 102.3 Accrued tax, audit, and legal fees 15.3 14.0 Accrued rebates 247.0 93.3 Accrued warranty 11.7 7.4 Other accrued liabilities 43.8 39.4 Total accounts payable and accrued liabilities $ 481.1 $ 256.4 Accrued Warranty Warranty costs are reflected in our statements of operations as cost of sales. Reconciliations of our accrued warranty costs for the twelve months ended December 31, 2020 and 2019 were as follows: Twelve Months Ended (In millions) 2020 2019 Beginning balance $ 7.4 $ 6.8 Charges to costs and expenses 41.3 32.7 Costs incurred (37.0) (32.1) Ending balance $ 11.7 $ 7.4 Other Long-Term Liabilities December 31, (In millions) 2020 2019 Finance lease obligations $ 54.0 $ 14.4 Contractual obligations 12.6 — Other liabilities 14.3 5.7 Total other liabilities $ 80.9 $ 20.1 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt Senior Convertible Notes The carrying amounts of our senior convertible notes were as follows as of the dates indicated: December 31, (Dollars in millions) 2020 2019 Principal amount: Senior Convertible Notes due 2022 $ — $ 400.0 Senior Convertible Notes due 2023 850.0 850.0 Senior Convertible Notes due 2025 1,207.5 — Total principal amount 2,057.5 1,250.0 Unamortized debt discount (371.1) (177.2) Unamortized debt issuance costs (19.2) (13.1) Carrying amount of liability component $ 1,667.2 $ 1,059.7 Carrying value of equity component $ 461.0 $ 242.2 Remaining amortization period of debt discount on the liability component: Senior Convertible Notes due 2022 * 2.5 years Senior Convertible Notes due 2023 2.9 years 4.0 years Senior Convertible Notes due 2025 4.9 years * * Not applicable as no notes were outstanding at this date. For our senior convertible notes for which the if-converted value exceeded the principal amount, the amount in excess of principal is as follows as of the dates indicated: December 31, (In millions) 2020 2019 Senior Convertible Notes due 2022 * $ 486.2 Senior Convertible Notes due 2023 1,077.5 372.4 Total by which the notes’ if-converted value exceeds their principal amount $ 1,077.5 $ 858.6 * Not applicable as no notes were outstanding at this date. The following table summarizes the components of interest expense and the effective interest rates for each of our senior convertible notes for the periods shown. (Dollars in millions) Twelve Months Ended 2020 2019 2018 Cash interest expense: Contractual coupon interest (1) $ 9.3 $ 9.3 $ 3.5 Non-cash interest expense: Accretion of debt discount 68.6 45.8 16.0 Amortization of debt issuance costs 4.0 3.7 1.8 Total interest expense recognized on senior notes $ 81.9 $ 58.8 $ 21.3 Effective interest rates: Senior Convertible Notes due 2022 (2) 5.1 % 5.1 % 5.1 % Senior Convertible Notes due 2023 5.6 % 5.6 % 5.6 % Senior Convertible Notes due 2025 5.5 % * * (1) Interest on the 2022 Notes began accruing upon issuance and was payable semi-annually on May 15 and November 15 of each year. Interest on the 2023 Notes began accruing upon issuance and is payable semi-annually on June 1 and December 1 of each year. Interest on the 2025 Notes began accruing upon issuance and is payable semi-annually on May 15 and November 15 of each year. (2) The effective interest rate presented represents the rate applicable for the period outstanding. The Senior Convertible Notes due 2022 were fully redeemed by July 31, 2020, as described below. * Not applicable as no notes were outstanding at this date. 0.75% Senior Convertible Notes due 2022 In June 2017, we completed an offering of $400.0 million aggregate principal amount of unsecured senior convertible notes with a stated interest rate of 0.75% and a maturity date of May 15, 2022 (the 2022 Notes). The net proceeds from the offering, after deducting initial purchasers’ discounts and costs directly related to the offering, were approximately $389.0 million. The initial conversion rate of the 2022 Notes was 10.0918 shares per $1,000 principal amount of notes, which was equivalent to a conversion price of approximately $99.09 per share, subject to adjustments. The 2022 Notes could be settled in cash, stock, or a combination thereof, solely at our discretion. We used the if-converted method for assumed conversion of the 2022 Notes to compute the weighted average shares of common stock outstanding for diluted earnings per share. Since upon conversion by the holders we could elect to settle such conversion in shares of our common stock, cash, or a combination thereof, we accounted for the cash conversion option as an equity instrument classified to stockholders’ equity. As a result, we recognized $70.6 million in additional paid-in-capital, net of debt issuance costs, during 2017. No principal payments were due on the 2022 Notes prior to maturity. Other than restrictions relating to certain fundamental changes and consolidations, mergers or asset sales and customary anti-dilution adjustments, the indenture relating to the 2022 Notes included customary terms and covenants, including certain events of default after which the 2022 Notes could be due and payable immediately. Conversion Rights at the Option of the Holders In the event of a fundamental change (as defined in the indenture related to the 2022 Notes), holders of the 2022 Notes had the right to require us to repurchase for cash all or a portion of their notes at a price equal to 100% of the principal amount of the 2022 Notes, plus any accrued and unpaid interest. Holders of the 2022 Notes who would convert their notes in connection with a make-whole fundamental change (as defined in the indenture) or following the delivery by Dexcom of a notice of redemption were, under certain circumstances, entitled to an increase in the conversion rate. Prior to 5:00 p.m., New York City time, on the business day immediately preceding February 15, 2022, holders of the 2022 Notes could convert all or a portion of their notes, in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2017 (and only during such calendar quarter), if the last reported sale price of Dexcom’s common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price of the 2022 Notes on each such trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2022 Notes for each day of that five day consecutive trading day period was less than 98% of the product of the last reported sale price of Dexcom’s common stock and the applicable conversion rate of the Notes on such trading day; (3) if we called any or all of the Notes for redemption, at any time prior to the close on business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate transactions. On or after February 15, 2022, until 5:00 p.m., New York City time, on the business day immediately preceding the maturity date, holders of the 2022 Notes could convert all or a portion of their notes regardless of the foregoing circumstances. Circumstance (1) listed above occurred during the quarters ended December 31, 2019 and March 31, 2020. As a result, the 2022 Notes became convertible at the option of the holder from January 1, 2020 through June 30, 2020. On June 29, 2020, Dexcom issued a notice of redemption to the holders of its outstanding 2022 Notes which is described below. Conversion Rights at Our Option On or after May 15, 2020, Dexcom could redeem for cash all or part of the 2022 Notes, at its option, if the last reported sale price of our common stock had been at least 140% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which Dexcom provided notice of redemption. The redemption price would be equal to 100% of the principal amount of the 2022 Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. Repurchase, Conversion, and Redemption of 2022 Notes In May 2020, we used approximately $282.6 million of the net proceeds from the 2025 Notes offering described below and issued 1,953,067 shares of Dexcom common stock to repurchase $260.0 million principal amount outstanding of the 2022 Notes and the associated conversion feature of the repurchased notes (which was recorded in additional paid-in capital). In addition, holders of 2022 Notes with a principal amount of $140.0 million exercised their option to convert their 2022 Notes during the twelve months ended December 31, 2020. We settled these conversions by issuing 1,412,497 shares of our common stock. As a result of the repurchase and conversions of the 2022 Notes, we recorded a loss on extinguishment of debt of $5.9 million for the twelve months ended December 31, 2020. The loss on extinguishment of debt included the unamortized debt issuance costs for the 2022 Notes. On June 29, 2020, we issued a notice of redemption to the holders of our outstanding 2022 Notes pursuant to which we would redeem the outstanding 2022 Notes for cash at a price of 100% of the principal amount of the 2022 Notes plus accrued and unpaid interest, if any, on July 31, 2020, unless earlier converted. The principal amount of 2022 Notes actually redeemed for cash was not significant. 0.75% Senior Convertible Notes due 2023 In November 2018, we completed an offering of $850.0 million aggregate principal amount of unsecured senior convertible notes with a stated interest rate of 0.75% and a maturity date of December 1, 2023 (the 2023 Notes). The net proceeds from the offering, after deducting initial purchasers’ discounts and costs directly related to the offering, were approximately $836.6 million. The initial conversion rate of the 2023 Notes is 6.0869 shares per $1,000 principal amount of notes, which is equivalent to a conversion price of approximately $164.29 per share, subject to adjustments. We entered into transactions for a convertible note hedge (the 2023 Note Hedge) and warrants (the 2023 Warrants) concurrently with the issuance of the 2023 Notes. The 2023 Notes may be settled in cash, stock, or a combination thereof, solely at our discretion. We use the if-converted method for assumed conversion of the 2023 Notes to compute the weighted average shares of common stock outstanding for diluted earnings per share. Since upon conversion by the holders we may elect to settle such conversion in shares of our common stock, cash, or a combination thereof, we accounted for the cash conversion option as an equity instrument classified to stockholders’ equity. As a result, we recognized $171.6 million in additional paid-in capital, net of debt issuance costs, during 2018. No principal payments are due on the 2023 Notes prior to maturity. Other than restrictions relating to certain fundamental changes and consolidations, mergers or asset sales and customary anti-dilution adjustments, the indenture relating to the 2023 Notes includes customary terms and covenants, including certain events of default after which the 2023 Notes may be due and payable immediately. Conversion Rights at the Option of the Holders Holders of the 2023 Notes have the right to require us to repurchase for cash all or a portion of their notes at 100% of their principal amount, plus any accrued and unpaid interest, upon the occurrence of a fundamental change (as defined in the indenture relating to the notes). We will also be required to increase the conversion rate for holders who convert their 2023 Notes in connection with certain fundamental changes occurring prior to the maturity date or following the delivery by Dexcom of a notice of redemption. Holders of the 2023 Notes may convert all or a portion of their notes at their option prior to 5:00 p.m., New York City time, on the business day immediately preceding September 1, 2023, in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after March 31, 2019 (and only during such calendar quarter), if the last reported sale price of Dexcom’s common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price of the 2023 Notes on each such trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2023 Notes for each day of that five-day consecutive trading day period was less than 98% of the product of the last reported sale price of Dexcom’s common stock and the applicable conversion rate of the 2023 Notes on such trading day; (3) if we call any or all of the 2023 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate transactions. On or after September 1, 2023, until 5:00 p.m., New York City time, on the second scheduled trading day immediately preceding the maturity date, holders of the 2023 Notes may convert all or a portion of their notes regardless of the foregoing circumstances. Circumstance (1) listed above occurred during the quarters ended December 31, 2019, March 1, 2020, June 30, 2020, and September 30, 2020. As a result, the 2023 Notes were convertible at the option of the holder from January 1, 2020 through December 31, 2020; actual conversions during that period were not significant. Circumstance (1) listed above also occurred during the quarter ended December 31, 2020 and as a result, the 2023 Notes will be convertible at the option of the holder from January 1, 2021 through March 31, 2021. Conversion Rights at Our Option Dexcom may not redeem the 2023 Notes prior to December 1, 2021. On or after December 1, 2021 and prior to September 1, 2023, Dexcom may redeem for cash all or part of the 2023 Notes, at its option, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which Dexcom provides notice of redemption. The redemption price will be equal to 100% of the principal amount of the 2023 Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. 2023 Note Hedge In connection with the offering of the 2023 Notes, in November 2018 we entered into convertible note hedge transactions with two of the initial purchasers of the 2023 Notes (the 2023 Counterparties) entitling us to purchase up to 5.2 million shares of our common stock at an initial price of $164.29 per share, each of which is subject to adjustment. The cost of the 2023 Note Hedge was $218.9 million and we accounted for it as an equity instrument by recognizing $218.9 million in additional paid-in capital during 2018. The 2023 Note Hedge will expire on December 1, 2023. The 2023 Note Hedge is expected to reduce the potential equity dilution upon any conversion of the 2023 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2023 Notes if the daily volume-weighted average price per share of our common stock exceeds the strike price of the 2023 Note Hedge. The strike price of the 2023 Note Hedge initially corresponds to the conversion price of the 2023 Notes and is subject to certain adjustments under the terms of the 2023 Note Hedge. An assumed exercise of the 2023 Note Hedge by us is considered anti-dilutive since the effect of the inclusion would always be anti-dilutive with respect to the calculation of diluted earnings per share. 2023 Warrants In November 2018, we also sold warrants to the 2023 Counterparties to acquire up to 5.2 million shares of our common stock. The 2023 Warrants require net share settlement and a pro rated number of warrants will expire on each of the 60 scheduled trading days starting on March 1, 2024. We received $183.8 million in cash proceeds from the sale of the 2023 Warrants, which we recorded in additional paid-in capital during 2018. The 2023 Warrants could have a dilutive effect on our earnings per share to the extent that the price of our common stock during a given measurement period exceeds the strike price of the 2023 Warrants. The strike price of the 2023 Warrants is initially $198.38 per share and is subject to certain adjustments under the terms of the warrant agreements. We use the treasury share method for assumed conversion of the 2023 Warrants when computing the weighted average common shares outstanding for diluted earnings per share. 0.25% Senior Convertible Notes due 2025 In May 2020, we completed an offering of $1.21 billion aggregate principal amount of unsecured senior convertible notes with a stated interest rate of 0.25% and a maturity date of November 15, 2025 (the 2025 Notes). The net proceeds from the offering, after deducting initial purchasers’ discounts and estimated costs directly related to the offering, were approximately $1.19 billion. The initial conversion rate of the 2025 Notes is 1.6655 shares per $1,000 principal amount of notes, which is equivalent to a conversion price of approximately $600.42 per share, subject to adjustments, with a maximum conversion rate of 2.3732. The 2025 Notes may be settled in cash, stock, or a combination thereof, solely at our discretion. We use the if-converted method for assumed conversion of the 2025 Notes to compute the weighted average shares of common stock outstanding for diluted earnings per share. Since upon conversion by the holders we may elect to settle such conversion in shares of our common stock, cash, or a combination thereof, we accounted for the cash conversion option as an equity instrument classified to stockholders’ equity. As a result, we recognized $289.4 million in additional paid-in-capital, net of debt issuance costs, during 2020. No principal payments are due on the 2025 Notes prior to maturity. Other than restrictions relating to certain fundamental changes and consolidations, mergers or asset sales and customary anti-dilution adjustments, the indenture relating to the 2025 Notes includes customary terms and covenants, including certain events of default after which the 2025 Notes may be due and payable immediately. Conversion Rights at the Option of the Holders In the event of a fundamental change (as defined in the indenture related to the 2025 Notes), holders of the 2025 Notes have the right to require us to repurchase for cash all or a portion of their notes at a price equal to 100% of the principal amount of the 2025 Notes, plus any accrued and unpaid interest. Holders of the 2025 Notes who convert their notes in connection with a make-whole fundamental change (as defined in the indenture) or following the delivery by Dexcom of a notice of redemption are, under certain circumstances, entitled to an increase in the conversion rate. Prior to 5:00 p.m., New York City time, on the business day immediately preceding August 15, 2025, holders of the 2025 Notes may convert all or a portion of their notes, in multiples of $1,000 principal amount, only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2020 (and only during such calendar quarter), if the last reported sale price of Dexcom’s common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price of the Notes on each such trading day; (2) during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the Notes for each day of that five day consecutive trading day period was less than 98% of the product of the last reported sale price of Dexcom’s common stock and the applicable conversion rate of the Notes on such trading day; (3) if we call any or all of the Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate transactions. On or after August 15, 2025, until 5:00 p.m., New York City time, on the business day immediately preceding the maturity date, holders of the 2025 Notes may convert all or a portion of their notes regardless of the foregoing circumstances. Conversion Rights at Our Option Dexcom may not redeem the 2025 Notes prior to May 20, 2023. On or after May 20, 2023 and prior to August 15, 2025, Dexcom may redeem for cash all or part of the 2025 Notes, at its option, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which Dexcom provides notice of redemption. The redemption price will be equal to 100% of the principal amount of the 2025 Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. Revolving Credit Agreement Terms of the Revolving Credit Agreement On December 19, 2018, we entered into an amended and restated revolving credit agreement which was subsequently amended on May 11, 2020 (as amended, the Credit Agreement). The Credit Agreement provides for available principal amount of $200.0 million which can be increased up to $500.0 million at our option subject to customary conditions and approval of our lenders. Borrowings under the Credit Agreement are available for general corporate purposes, including working capital and capital expenditures. Information related to availability and outstanding borrowings on our Credit Agreement is as follows as of the date indicated: December 31, (In millions) 2020 Available principal amount $ 200.0 Letters of credit sub-facility 10.0 Outstanding borrowings — Outstanding letters of credit 6.3 Total available balance $ 193.7 Revolving loans under the Credit Agreement bear interest at our choice of one of two base rates plus a range of applicable margin rates that are based on our leverage ratio. The first base rate is the highest of (a) the publicly announced JPMorgan Chase prime rate, (b) the federal funds rate, or (c) the overnight bank funding rate, and the applicable margin rate ranges from 0.375% to 1.000%. The second base rate is a LIBOR-based rate, and the applicable margin rate ranges from 1.375% to 2.000%. We will also pay a commitment fee of between 0.2% and 0.3%, payable quarterly in arrears, on the average daily unused amount of the revolving facility based on our leverage ratio. The Credit Agreement will mature on the earlier to occur of (i) December 19, 2023 or (ii) 91 days prior to the maturity date of the 2022 Notes or (iii) 91 days prior to the maturity date of the 2023 Notes if both (a) the aggregate outstanding principal amount of the 2022 Notes or the 2023 Notes, as applicable, is greater than EBITDA for the period of four consecutive fiscal quarters ending prior to such date and (b) unrestricted domestic cash on hand is less than the aggregate outstanding principal amount of the 2022 Notes or the 2023 Notes, as applicable, plus $100.0 million. Our obligations under the Credit Agreement are guaranteed by our existing and future wholly-owned domestic subsidiaries, and are secured by a first-priority security interest in substantially all of the assets of Dexcom and the guarantors, including all or a portion of the equity interests of our domestic subsidiaries and first-tier foreign subsidiaries but excluding real property and intellectual property (which is subject to a negative pledge). The Credit Agreement contains covenants that limit certain indebtedness, liens, investments, transactions with affiliates, dividends and other restricted payments, subordinated indebtedness and amendments to subordinated indebtedness documents, and sale and leaseback transactions of Dexcom or any of its domestic subsidiaries. The Credit Agreement also requires us to maintain a maximum leverage ratio and a minimum fixed charge coverage ratio. We were in compliance with these covenants as of December 31, 2020. |
Leases And Other Commitments
Leases And Other Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases And Other Commitments | 6. Leases And Other Commitments Leases We lease office, manufacturing and warehouse space facilities under various domestic and international non-cancellable operating lease arrangements that expire at various times through December 2030. We also have one land lease that expires in 2080. Certain of our leases have renewal options which allow us to extend the lease term typically between three We adopted ASC 842 utilizing the modified retrospective transition method through a $2.1 million cumulative-effect adjustment to accumulated deficit at the beginning of the first quarter of 2019. We will continue to report financial information for fiscal years prior to 2019 under the previous lease accounting standards and as such prior comparative periods have not been recast. We elected the package of practical expedients permitted under the transition guidance in the new standard, which allowed us to carry forward the historical classification of leases that were in place as of January 1, 2019. Under the previous lease accounting standards we were deemed the owner of our Mesa, Arizona building during the construction period. As a result of our adoption of ASC 842, we have de-recognized the estimated fair value of the building shell and the related lease liability as of December 31, 2018 and recorded the difference between the asset and liability as an adjustment to retained earnings at the beginning of the first quarter of 2019. In addition, as a result of our adoption of ASC 842 we recorded operating lease right-of-use assets of $26.7 million, finance lease right-of-use assets of $15.3 million, operating lease liabilities of $40.4 million and finance lease liabilities of $15.9 million in our consolidated balance sheets at the beginning of the first quarter of 2019, with no material impact to our consolidated statements of operations. Operating lease right-of-use assets and lease liabilities are presented separately in our consolidated balance sheets. Finance lease right-of-use assets are included in property and equipment and finance lease liabilities are included in accounts payable and accrued liabilities and in other long-term liabilities in our consolidated balance sheets. As of December 31, 2020, the maturities of our operating and finance lease liabilities were as shown in the table below: (In millions) Operating Leases Finance Leases 2020 $ 21.2 $ 10.7 2021 22.1 4.2 2022 22.4 4.3 2023 20.8 4.5 2024 20.0 4.6 Thereafter 32.0 68.7 Total future lease cost (1) 138.5 97.0 Less: Imputed interest (20.2) (34.2) Present value of future payments 118.3 62.8 Less: Current portion (16.5) (8.8) Long-term portion $ 101.8 $ 54.0 (1) Total future lease cost excludes $16.3 million of legally binding minimum lease payments for leases signed but not yet commenced . Certain lease agreements require us to return designated areas of leased space to its original condition upon termination of the lease agreement, for which we record an asset retirement obligation and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. In subsequent periods, the asset retirement obligation is accreted for the change in its present value and the capitalized asset is depreciated, both over the term of the associated lease agreement. Asset retirement obligations of $4.5 million and $2.6 million as of December 31, 2020 and 2019, respectively, are included under “Other long-term liabilities” in our consolidated balance sheets. The components of lease expense for the twelve months ended December 31, 2020 and 2019 were as follows: Twelve Months Ended (In millions) 2020 2019 Finance lease cost: Amortization of right-of-use assets $ 2.0 $ 1.1 Interest on lease liabilities 1.9 0.8 Operating lease cost 18.4 12.2 Short-term lease cost (1) 1.3 3.5 Variable lease cost (2) 4.2 3.9 Total lease cost $ 27.8 $ 21.5 (1) Short-term lease cost is primarily related to temporary office space associated with the transition of certain operations to the Philippines. (2) Variable lease costs are primarily related to common area maintenance charges and property taxes . Prior to January 1, 2019, we recorded operating lease rent expense under ASC 840 on a straight-line basis over the non-cancellable lease term. Rent expense for the twelve months ended December 31, 2018 was $12.5 million . Other information related to leases was as shown in the table below. All figures include the leases recorded at the beginning of the first quarter of 2019 as a result of our adoption of ASC 842. Twelve Months Ended (Dollars in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 18.3 $ 14.3 Operating cash flows from finance leases 0.7 0.8 Financing cash flows from finance leases 8.5 0.5 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 33.5 80.6 Finance leases $ 41.7 $ 15.5 Weighted average remaining lease term: Operating leases 6.1 years 6.2 years Finance leases 23.3 years 13.3 years Weighted average discount rate: Operating leases 5.0% 5.0% Finance leases 5.2% 5.0% Amortization of operating lease right-of-use asset included in cash flows from operating activities in our consolidated statements of cash flows was $12.4 million for the twelve months ended December 31, 2020 and $9.1 million for the twelve months ended December 31, 2019. Purchase Commitments We are party to various purchase arrangements related to our manufacturing and research and development activities. As of December 31, 2020, we had approximately $335.6 million of open purchase orders and contractual obligations in the ordinary course of business, the majority of which are due within one year. |
Leases And Other Commitments | 6. Leases And Other Commitments Leases We lease office, manufacturing and warehouse space facilities under various domestic and international non-cancellable operating lease arrangements that expire at various times through December 2030. We also have one land lease that expires in 2080. Certain of our leases have renewal options which allow us to extend the lease term typically between three We adopted ASC 842 utilizing the modified retrospective transition method through a $2.1 million cumulative-effect adjustment to accumulated deficit at the beginning of the first quarter of 2019. We will continue to report financial information for fiscal years prior to 2019 under the previous lease accounting standards and as such prior comparative periods have not been recast. We elected the package of practical expedients permitted under the transition guidance in the new standard, which allowed us to carry forward the historical classification of leases that were in place as of January 1, 2019. Under the previous lease accounting standards we were deemed the owner of our Mesa, Arizona building during the construction period. As a result of our adoption of ASC 842, we have de-recognized the estimated fair value of the building shell and the related lease liability as of December 31, 2018 and recorded the difference between the asset and liability as an adjustment to retained earnings at the beginning of the first quarter of 2019. In addition, as a result of our adoption of ASC 842 we recorded operating lease right-of-use assets of $26.7 million, finance lease right-of-use assets of $15.3 million, operating lease liabilities of $40.4 million and finance lease liabilities of $15.9 million in our consolidated balance sheets at the beginning of the first quarter of 2019, with no material impact to our consolidated statements of operations. Operating lease right-of-use assets and lease liabilities are presented separately in our consolidated balance sheets. Finance lease right-of-use assets are included in property and equipment and finance lease liabilities are included in accounts payable and accrued liabilities and in other long-term liabilities in our consolidated balance sheets. As of December 31, 2020, the maturities of our operating and finance lease liabilities were as shown in the table below: (In millions) Operating Leases Finance Leases 2020 $ 21.2 $ 10.7 2021 22.1 4.2 2022 22.4 4.3 2023 20.8 4.5 2024 20.0 4.6 Thereafter 32.0 68.7 Total future lease cost (1) 138.5 97.0 Less: Imputed interest (20.2) (34.2) Present value of future payments 118.3 62.8 Less: Current portion (16.5) (8.8) Long-term portion $ 101.8 $ 54.0 (1) Total future lease cost excludes $16.3 million of legally binding minimum lease payments for leases signed but not yet commenced . Certain lease agreements require us to return designated areas of leased space to its original condition upon termination of the lease agreement, for which we record an asset retirement obligation and a corresponding capital asset in an amount equal to the estimated fair value of the obligation. In subsequent periods, the asset retirement obligation is accreted for the change in its present value and the capitalized asset is depreciated, both over the term of the associated lease agreement. Asset retirement obligations of $4.5 million and $2.6 million as of December 31, 2020 and 2019, respectively, are included under “Other long-term liabilities” in our consolidated balance sheets. The components of lease expense for the twelve months ended December 31, 2020 and 2019 were as follows: Twelve Months Ended (In millions) 2020 2019 Finance lease cost: Amortization of right-of-use assets $ 2.0 $ 1.1 Interest on lease liabilities 1.9 0.8 Operating lease cost 18.4 12.2 Short-term lease cost (1) 1.3 3.5 Variable lease cost (2) 4.2 3.9 Total lease cost $ 27.8 $ 21.5 (1) Short-term lease cost is primarily related to temporary office space associated with the transition of certain operations to the Philippines. (2) Variable lease costs are primarily related to common area maintenance charges and property taxes . Prior to January 1, 2019, we recorded operating lease rent expense under ASC 840 on a straight-line basis over the non-cancellable lease term. Rent expense for the twelve months ended December 31, 2018 was $12.5 million . Other information related to leases was as shown in the table below. All figures include the leases recorded at the beginning of the first quarter of 2019 as a result of our adoption of ASC 842. Twelve Months Ended (Dollars in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 18.3 $ 14.3 Operating cash flows from finance leases 0.7 0.8 Financing cash flows from finance leases 8.5 0.5 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 33.5 80.6 Finance leases $ 41.7 $ 15.5 Weighted average remaining lease term: Operating leases 6.1 years 6.2 years Finance leases 23.3 years 13.3 years Weighted average discount rate: Operating leases 5.0% 5.0% Finance leases 5.2% 5.0% Amortization of operating lease right-of-use asset included in cash flows from operating activities in our consolidated statements of cash flows was $12.4 million for the twelve months ended December 31, 2020 and $9.1 million for the twelve months ended December 31, 2019. Purchase Commitments We are party to various purchase arrangements related to our manufacturing and research and development activities. As of December 31, 2020, we had approximately $335.6 million of open purchase orders and contractual obligations in the ordinary course of business, the majority of which are due within one year. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | 7. Contingencies Litigation We are subject to various claims, complaints and legal actions that arise from time to time in the normal course of business, including commercial insurance, product liability, intellectual property and employment related matters. In addition, from time to time we may bring claims or initiate lawsuits against various third parties with respect to matters arising out of the ordinary course of our business, including commercial and employment related matters. We do not believe we are party to any currently pending legal proceedings, the outcome of which could have a material adverse effect on our business, financial condition or results of operations. There can be no assurance that existing or future legal proceedings arising in the ordinary course of business or otherwise will not have a material adverse effect on our business, financial condition or results of operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Income (loss) before income taxes subject to taxes in the following jurisdictions is as follows: Twelve Months Ended (In millions) 2020 2019 2018 United States $ 270.7 $ 119.1 $ (28.3) Outside of the United States (45.7) (14.9) (98.2) Total $ 225.0 $ 104.2 $ (126.5) Significant components of the provision for income taxes are as follows: Twelve Months Ended (In millions) 2020 2019 2018 Current: Federal $ — $ — $ — State 6.1 1.0 2.7 Foreign 2.6 1.9 0.1 Total current income taxes 8.7 2.9 2.8 Deferred: Federal (198.8) — (1.7) State (51.4) — (0.5) Foreign (27.1) 0.2 — Total deferred income taxes (277.3) 0.2 (2.2) Total $ (268.6) $ 3.1 $ 0.6 Significant loss and tax credit carryforwards and years of expiration are as follows: December 31, Year of Expiration (In millions) 2020 2019 Net Operating Loss: Federal $ 169.1 $ 438.8 2027 California 236.3 235.3 2029 Other States 36.1 88.8 2030 UK 113.2 124.1 Indefinite Tax Credits: Federal 73.1 54.4 2026 California $ 66.2 $ 52.7 Indefinite On June 29, 2020, California’s Governor Newsom signed AB 85 into law, suspending California net operating loss utilization and imposing a $5.0 million cap on the amount of business incentive tax credits companies can utilize, effective for tax years 2020 through 2022. As a result of the legislation, we are utilizing $2.4 million of California research and development credits for the tax year ended December 31, 2020. Utilization of net operating losses and credit carryforwards is subject to an annual limitation due to ownership change limitations provided by Section 382 and 383 of the Internal Revenue Code of 1986, as amended, and similar state provisions. An ownership change limitation occurred as a result of the stock offering completed in February 2009. The limitation will result in approximately $1.9 million of U.S. research and development tax credits that will expire unused. The related deferred tax assets have been removed from the components of our deferred tax assets as summarized in the table below. The tax benefits related to the remaining federal and state net operating losses and tax credit carryforwards may be further limited or lost if future cumulative changes in ownership exceed 50% within any three-year period. Significant components of our deferred tax assets and liabilities as of December 31, 2020 and 2019 are shown below. Significant judgment is required to evaluate the need for a valuation allowance against deferred tax assets. We review all available positive and negative evidence, including projections of pre-tax book income, earnings history, reliability of forecasting, and reversal of temporary differences. A valuation allowance is established when it is more likely than not that some or all of the deferred tax assets will not be realized. Realization of deferred tax assets is dependent upon future earnings in applicable tax jurisdictions. Prior to 2020, due to our U.S. operating losses and earnings volatility in previous years, which did not allow sustainable profitability, we had established and maintained a full valuation allowance on our deferred tax assets. In 2020, we achieved three years of cumulative income. We analyzed both positive and negative evidence, and as a result, we released our valuation allowance on our deferred tax assets, with the exception of our California research and development tax credits and certain foreign intangible assets, as it is more likely than not that those deferred tax assets will not be realized. December 31, (In millions) 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 69.2 $ 127.4 Capitalized research and development expenses 53.6 57.1 Tax credits 101.1 78.6 Share-based compensation 13.0 10.9 Fixed and intangible assets 16.9 14.0 Accrued liabilities and reserves 110.3 62.0 Convertible debt — 1.7 Total gross deferred tax assets 364.1 351.7 Less: valuation allowance (55.5) (332.2) Total net deferred tax assets 308.6 19.5 Deferred tax liabilities: Fixed assets and acquired intangibles assets (36.3) (19.6) Convertible debt discount (55.9) — Total deferred tax liabilities (92.2) (19.6) Net deferred tax assets (liabilities) $ 216.4 $ (0.1) We released $287.2 million of valuation allowance related to our deferred tax assets, of which $285.5 million was recorded to income tax benefit and $1.7 million was recorded to additional paid-in capital. We maintain a valuation allowance of $55.5 million against our California research and development tax credits and certain foreign intangible assets. The reconciliation between our effective tax rate on income (loss) from continuing operations and the statutory rate is as follows: Twelve Months Ended (In millions) 2020 2019 2018 U.S. federal statutory tax rate $ 47.3 $ 21.9 $ (26.6) State income tax, net of federal benefit 3.2 (2.3) (5.5) Permanent items 13.1 1.0 1.3 Research and development credits (24.4) (10.8) (11.7) Foreign rate differential (0.1) 5.6 3.7 Stock and officers compensation (28.7) (14.7) (5.1) Change in statutory tax rates (4.1) — — Impact of adoption of ASU 2016-16 — — (13.3) Impact of Tax Cuts and Jobs Act of 2017 — — (0.4) Other 0.1 (1.0) 1.3 Change in valuation allowance (275.0) 3.4 56.9 Income taxes at effective rates $ (268.6) $ 3.1 $ 0.6 On June 22, 2020, the Supreme Court effectively resolved the Altera Corp. v. Commissioner case when it denied its petition to hear the case. Altera Corp. argued that the Treasury Department’s regulation requiring related companies to share the cost of stock-based employee compensation is arbitrary, and thus invalid. The denial to hear the case supports that related companies should share in the cost of stock-based employee compensation. Pursuant to an Altera clause in our cost-sharing agreement, we recalculated and retroactively billed stock-based compensation for years 2016-2020, resulting in an additional $32.0 million cost-share payment. The 2017 Tax Cuts and Jobs Act included provisions for tax on Global Intangible Low-taxed Income (“GILTI”) effective for tax years of foreign corporations beginning after December 31, 2017. We have elected to account for GILTI in the period the tax is incurred. The following table summarizes the activity related to our gross unrecognized tax benefits: (In millions) Balance at January 1, 2018 $ 22.8 Decreases related to prior year tax positions (0.3) Increases related to current year tax positions 3.4 Decrease related to Tax Cuts and Jobs Act of 2017 — Balance at December 31, 2018 25.9 Decreases related to prior year tax positions (0.9) Increases related to current year tax positions 4.5 Balance at December 31, 2019 29.5 Decreases related to prior year tax positions (0.9) Increases related to current year tax positions 8.0 Balance at December 31, 2020 $ 36.6 Of the total unrecognized tax benefits at December 31, 2020, 2019, and 2018, $23.5 million, $0, and $0, respectively, would reduce our annual effective tax rate if recognized. Interest and penalties are classified as a component of income tax expense and were not material for any period presented. We conduct business globally and consequently file income tax returns and are subject to routine compliance audits in numerous jurisdictions including those material jurisdictions listed in the following table. We are currently under a routine examination by the Federal Central Office in Germany for fiscal years 2016-2018. We do not expect any material adjustments as a result of this audit. The U.S. net operating losses generated since 1999 and utilized in recent years are open for examination. The years remaining subject to audit, by major jurisdiction, are as follows: Jurisdiction Fiscal Year United States (Federal and state) 1999 - 2020 Germany 2016 - 2020 United Kingdom 2017 - 2020 Canada 2015 - 2020 We operate under a tax holiday in the Philippines, which is effective through December 31, 2023, and may be extended for another three years if certain additional requirements are satisfied. The tax holiday is conditional upon remaining in good standing, committing no violation of PEZA Rules and Regulations, pertinent circulars and directives. The impact of this tax holiday decreased foreign taxes by $0.1 million in 2020. We have been granted an investment tax allowance incentive by the Malaysian Investment Development Authority (MIDA) in Malaysia, which is effective through December 31, 2025. The tax incentive had no effect on foreign taxes during 2020. We have approximately $1.4 million of undistributed earnings attributable to operations in our controlled foreign corporations as of December 31, 2020. We assert that any foreign earnings will be indefinitely reinvested. Accordingly, we have not recorded a liability for taxes associated with any future distributions of these undistributed earnings as any distribution would be immaterial. |
Employee Benefit Plans and Stoc
Employee Benefit Plans and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employee Benefit Plans and Stockholders' Equity | 9. Employee Benefit Plans and Stockholders’ Equity 401(k) Plan We have a defined contribution 401(k) retirement plan (the 401(k) Plan) covering substantially all employees in the United States that meet certain age requirements. Employees who participate in the 401(k) Plan may contribute up to 75% of their compensation each year, subject to Internal Revenue Service limitations and the terms and conditions of the plan. Under the terms of the 401(k) Plan, we may elect to match a discretionary percentage of contributions. We match 50% of contributions up to 5% of annual compensation. Total matching contributions were $6.7 million and $4.8 million for the twelve months ended December 31, 2020, and 2019, respectively. Employee Stock Purchase Plan, or ESPP Under the 2015 Employee Stock Purchase Plan (the 2015 ESPP), amended in December 2019, eligible employees can purchase shares of our common stock at semi-annual intervals through periodic payroll deductions during defined Offering Periods. A total of up to 1.5 million shares may be issued under the 2015 ESPP and it expires upon the earliest to occur of (a) termination of the 2015 ESPP by our board of directors, (b) issuance of all of the shares of common stock reserved for issuance under the plan, or (c) May 28, 2025. Payroll deductions may not exceed 10% of the participant’s cash compensation subject to certain limitations, and the purchase price will not be less than 85% of the lower of the fair market value of the common stock at either the beginning of the applicable Offering Period or the Purchase Date. We issued 89,194 and 150,408 and 189,904 shares of common stock under the 2015 ESPP during the twelve months ended December 31, 2020, 2019 and 2018, respectively. Equity Incentive Plans In May 2015, we adopted the Amended and Restated 2015 Equity Incentive Plan (the 2015 Plan), which replaced our 2005 Equity Incentive Plan and provides for the grant of incentive and nonstatutory stock options, restricted stock, stock bonuses, stock appreciation rights, and restricted stock units to employees, directors or consultants of the Company. On May 30, 2019 our stockholders approved an increase to the maximum number of shares that may be issued under the 2015 Plan. We are permitted to issue up to 9.8 million shares under the 2015 Plan. Treasury Stock Repurchased shares of our common stock are held as treasury shares until they are reissued or retired. When we reissue treasury stock, if the proceeds from the sale are more than the average price we paid to acquire the shares we record an increase in additional paid-in capital. Conversely, if the proceeds from the sale are less than the average price we paid to acquire the shares, we record a decrease in additional paid-in capital to the extent of increases previously recorded for similar transactions and a decrease in retained earnings for any remaining amount. We issue new shares of common stock to satisfy RSU vesting under our employee equity incentive plans. We have not yet determined the ultimate disposition of the 0.8 million shares that we repurchased in 2018, and consequently we continue to hold them as treasury shares rather than retiring them. No shares of our common stock were repurchased during 2019 or 2020. Stock Options We have not granted any stock options since 2010. As of December 31, 2020, we have no stock options outstanding. The total intrinsic value of stock options exercised as of the date of exercise was as follows: Twelve Months Ended (In millions) 2020 2019 2018 Intrinsic value of options exercised $ 7.9 $ 7.4 $ 30.0 Restricted Stock Units (RSUs) RSU awards typically vest annually over three (In millions except weighted average grant date fair value) Shares Weighted Aggregate Nonvested at December 31, 2017 2.7 $ 70.68 Granted 1.7 66.07 Vested (1.4) 68.44 Forfeited (0.3) 68.56 Nonvested at December 31, 2018 2.7 69.19 $ 319.0 Granted 0.7 144.37 Vested (1.4) 69.45 Forfeited (0.2) 83.45 Nonvested at December 31, 2019 1.8 96.63 392.0 Granted 0.5 300.36 Vested (1.0) 92.07 Forfeited (0.1) 137.44 Nonvested at December 31, 2020 1.2 $ 183.51 $ 430.6 The total vest-date fair value of RSUs vested was $331.8 million, $207.2 million and $120.9 million for the twelve months ended December 31, 2020, 2019 and 2018, respectively. Common Stock Reserved for Future Issuance Shares of common stock reserved for future issuance were as follows as of the dated indicated: December 31, (In millions) 2020 2019 Stock awards under our plans: Unvested restricted stock units 1.2 1.8 Reserved for future grant 4.5 4.9 Employee Stock Purchase Plan 0.8 0.9 Total 6.5 7.6 Share-based Compensation The following table summarizes share-based compensation expense related to restricted stock units and employee stock purchases under the ESPP for the twelve months ended December 31, 2020, 2019 and 2018: Twelve Months Ended (In millions) 2020 2019 2018 Cost of sales $ 14.6 $ 9.0 $ 9.2 Research and development 37.8 33.5 33.0 Selling, general and administrative 67.0 60.2 59.7 Total share-based compensation expense $ 119.4 $ 102.7 $ 101.9 We estimate the fair value of ESPP purchase rights on the date of grant using the Black-Scholes option pricing model and the assumptions below for the specified reporting periods. Twelve Months Ended 2020 2019 2018 Risk free interest rate 0.13 - 0.95 1.72 - 2.55 1.55 - 2.25 Dividend yield — % — % — % Expected volatility of Dexcom common stock 0.51 - 0.63 0.40 - 0.51 0.50 - 0.67 Expected life (in years) 0.5 1 1 |
Business Segment and Geographic
Business Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment and Geographic Information | 10. Business Segment and Geographic Information Reportable Segments An operating segment is identified as a component of a business that has discrete financial information available and for which the chief operating decision maker must decide the level of resource allocation. In addition, the guidance for segment reporting indicates certain quantitative materiality thresholds. None of the components of our business meet the definition of an operating segment. We currently consider our operations to be, and manage our business globally within, one reportable segment, which is consistent with how our President and Chief Executive Officer, who is our chief operating decision maker, reviews our business, makes investment and resource allocation decisions, and assesses operating performance. Disaggregation of Revenue We disaggregate revenue by geographic region and by major sales channel. We have determined that disaggregating revenue into these categories achieves the ASC Topic 606 disclosure objectives of depicting how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Dexcom is domiciled in the United States. We sell our CGM systems through a direct sales force in the United States, Canada and some countries in Europe, and through distribution arrangements in the United States, and certain countries in Africa, Asia, Europe, Latin America, and the Middle East, as well as Australia, Canada, and New Zealand. We disaggregate our revenue from contracts by geography and by major sales channel as we believe they best depict how the nature, amount and timing of revenues and cash flows are affected by economic factors. Revenues by geographic region During the twelve months ended December 31, 2020, 2019 and 2018, no individual country outside the United States generated revenue that represented more than 10% of our total revenue. The table below sets forth revenues by our two primary geographical markets, the United States and outside of the United States, based on the geographic location to which we deliver the product. The majority of our long-lived assets are located in the United States. Twelve Months Ended December 31, 2020 2019 2018 (Dollars in millions) Amount % Amount % Amount % United States $ 1,509.5 78 % $ 1,161.5 79 % $ 818.4 79 % Outside of the United States 417.2 22 % 314.5 21 % 213.2 21 % Total $ 1,926.7 100 % $ 1,476.0 100 % $ 1,031.6 100 % Revenues by customer sales channel The following table sets forth revenues by major sales channel for the twelve months ended December 31, 2020, 2019 and 2018: Twelve Months Ended December 31, 2020 2019 2018 (Dollars in millions) Amount % Amount % Amount % Distributor $ 1,437.6 75 % $ 1,011.6 69 % $ 652.9 63 % Direct 489.1 25 % 464.4 31 % 378.7 37 % Total $ 1,926.7 100 % $ 1,476.0 100 % $ 1,031.6 100 % |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | DexCom, Inc. SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS (In millions) Allowance for doubtful accounts Balance at December 31, 2017 $ 11.4 Provision for doubtful accounts 3.6 Write-offs and adjustments (8.3) Recoveries 0.5 Balance at December 31, 2018 $ 7.2 Allowance for doubtful accounts Balance at December 31, 2018 $ 7.2 Provision for doubtful accounts 0.9 Write-offs and adjustments (3.0) Recoveries 0.7 Balance at December 31, 2019 $ 5.8 Allowance for doubtful accounts Balance at December 31, 2019 $ 5.8 Provision for doubtful accounts 3.2 Write-offs and adjustments (2.1) Recoveries 0.3 Balance at December 31, 2020 $ 7.2 |
Organization and Significant _2
Organization and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation These consolidated financial statements include the accounts of DexCom, Inc. and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation. |
Principles of Consolidation | Basis of Presentation and Principles of Consolidation These consolidated financial statements include the accounts of DexCom, Inc. and our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation. The functional currencies of our international subsidiaries are generally the local currencies. We translate the financial statements of our foreign subsidiaries into U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates for each period for revenue, costs and expenses. We include translation-related adjustments in comprehensive income (loss) and in accumulated other comprehensive income in the equity section of our consolidated balance sheets. Gains and losses resulting from certain intercompany transactions as well as transactions with customers and vendors that are denominated in currencies other than the functional currency of each entity give rise to foreign exchange gains or losses that we record in interest and other income, net in our consolidated statements of operations. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles, or GAAP, requires us to make certain estimates and assumptions that affect the amounts reported in our consolidated financial statements and the disclosures made in the accompanying notes. Areas requiring significant estimates include pharmacy rebates, transaction price, net accounts receivable, excess or obsolete inventories and the valuation of inventory, and accruals for litigation contingencies. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates. |
Fair Value Measurements | Fair Value Measurements The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows: Level 1—Unadjusted quoted prices that are available in active markets for identical assets or liabilities. Level 2—Inputs other than quoted prices included in Level 1 that are observable, either directly or indirectly, through correlation with market data. These include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data for substantially the full term of the assets or liabilities. Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the determination of fair value. Level 3 assets and liabilities include those whose fair values are determined using pricing models, discounted cash flow methodologies, or similar valuation techniques and significant judgment or estimation. We carry our marketable securities at fair value. We carry our other financial instruments, such as cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities, at cost, which approximates the related fair values due to the short-term maturities of these instruments. For more information see Note 3, “Fair Value Measurements.” |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider highly liquid investments with a maturity of 90 days or less at the time of purchase to be cash equivalents. |
Marketable Securities | Marketable Securities We have classified our marketable securities with remaining maturity at purchase of more than three months and remaining maturities of one year or less as short-term marketable securities. We have also classified marketable securities with remaining maturities of greater than one year as short-term marketable securities based upon our ability and intent to use any and all of those marketable securities to satisfy the liquidity needs of our current operations. We calculate realized gains or losses on our marketable securities using the specific identification method. We carry our marketable debt securities at fair value with unrealized gains and losses reported as a separate component of stockholders’ equity in our consolidated balance sheets and included in comprehensive income (loss). Realized gains and losses on marketable debt securities are included in interest and other income, net in our consolidated statements of operations. We carry our marketable equity securities at fair value with realized and unrealized gains and losses reported in income on equity investments in our consolidated statements of operations. |
Accounts Receivables and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are generally recorded at the invoiced amount for distributors and at net realizable value for direct customers, which is determined using estimates of claim denials and historical reimbursement experience without regard to aging category. Accounts receivable are not interest bearing. We evaluate the creditworthiness of significant customers based on historical trends, the financial condition of our customers, and external market factors. We generally do not require collateral from our customers. We maintain an allowance for doubtful accounts for potential credit losses. Uncollectable accounts are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a customer account is uncollectable. Generally, receivable balances greater than one year past due are deemed uncollectable. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers |
Inventory | Inventory Inventory is valued at the lower of cost or net realizable value on a part-by-part basis that approximates first in, first out. We record adjustments to inventory for potentially excess, obsolete or scrapped goods in order to state inventory at net realizable value. Factors influencing these adjustments include inventories on hand and on order compared to estimated future usage and sales for existing and new products, as well as judgments regarding quality control testing data and assumptions about the likelihood of scrap and obsolescence. Once written down the adjustments are considered permanent and are not reversed until the related inventory is sold or disposed of. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. We capitalize additions and improvements and expense maintenance and repairs as incurred. We calculate depreciation using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are generally three years for computer software and hardware, four We review property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We estimate the recoverability of the asset by comparing the carrying amount to the future undiscounted cash flows that we expect the asset to generate. We estimate the fair value of the asset based on the present value of future cash flows for those assets. If the carrying value of an asset exceeds its estimated fair value, we would record an impairment loss equal to the difference. |
Goodwill and Intangible Assets and Other Long-Lived Assets | Goodwill We record goodwill when the fair value of consideration transferred in a business combination exceeds the fair value of the identifiable assets acquired and liabilities assumed. Goodwill and other intangible assets that have indefinite useful lives are not amortized, but we test them annually for impairment in the fourth quarter of our fiscal year and whenever events or changes in circumstances indicate that it is more likely than not that the fair value is less than the carrying value. Events that would indicate impairment and trigger an interim impairment assessment include, but are not limited to, current economic and market conditions, including a decline in market capitalization, a significant adverse change in legal factors, business climate or operational performance of the business, and an adverse action or assessment by a regulator. We perform our goodwill impairment analysis at the reporting unit level, which aligns with Dexcom’s reporting structure and the availability of discrete financial information. We perform the first step of our annual impairment analysis by either comparing a reporting unit’s estimated fair value to its carrying amount or doing a qualitative assessment of a reporting unit’s fair value from the last quantitative assessment to determine if there is potential impairment. We may do a qualitative assessment when the results of the previous quantitative test indicated the reporting unit’s estimated fair value was significantly in excess of the carrying value of its net assets and we do not believe there have been significant changes in the reporting unit’s operations that would significantly decrease its estimated fair value or significantly increase its net assets. If a quantitative assessment is performed the evaluation includes management estimates of cash flow projections based on internal future projections and/or use of a market approach by looking at market values of comparable companies. Key assumptions for these projections include revenue growth, future gross margin and operating margin growth, and weighted cost of capital and terminal growth rates. The revenue and margin growth are based on increased sales of new and existing products as we maintain investments in research and development. Additional assumed value creators may include increased efficiencies from capital spending. The resulting cash flows are discounted using a weighted average cost of capital. Operating mechanisms and requirements to ensure that growth and efficiency assumptions will ultimately be realized are also considered in the evaluation, including the timing and probability of regulatory approvals for our products to be commercialized. We also consider Dexcom’s market capitalization as a part of our analysis. If the estimated fair value of a reporting unit exceeds the carrying amount of the net assets assigned to that unit, goodwill is not impaired and no further analysis is required. If the carrying value of the net assets assigned to a reporting unit exceeds the estimated fair value of the unit, we perform the second step of the impairment test. In this step we allocate the fair value of the reporting unit calculated in step one to all of the assets and liabilities of that unit, as if we had just acquired the reporting unit in a business combination. The excess of the fair value of the reporting unit over the total amount allocated to the assets and liabilities represents the implied fair value of goodwill. If the carrying amount of a reporting unit’s goodwill exceeds its implied fair value, we would record an impairment loss equal to the difference. We recorded no goodwill impairment charges for the twelve months ended December 31, 2020, 2019 or 2018. The change in goodwill for the twelve months ended December 31, 2020 and December 31, 2019 consisted of translation adjustments on our foreign currency denominated goodwill. The change in goodwill for the twelve months ended December 31, 2018 consisted of goodwill we recorded for acquisitions that were not significant, individually or in the aggregate, and translation adjustments on our foreign currency denominated goodwill. Intangible Assets and Other Long-Lived Assets Intangible assets are included in other assets in our consolidated balance sheets. We amortize intangible assets with a finite life, such as acquired technology, customer relationships, trade names and trademarks, on a straight-line basis over their estimated useful lives, which range from two |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. Significant judgment is required to evaluate the need for a valuation allowance against deferred tax assets. We review all available positive and negative evidence, including projections of pre-tax book income, earnings history, reliability of forecasting, and reversal of temporary differences. A valuation allowance is established when it is more likely than not that some or all of the deferred tax assets will not be realized. Realization of deferred tax assets is dependent upon future earnings in applicable tax jurisdictions. Prior to 2020, due to our US operating losses and earnings volatility in previous years, which did not allow sustainable profitability, we had established and maintained a full valuation allowance on our deferred tax assets. In 2020, we achieved three years cumulative income and expect to continue that profitability in future years. We analyzed both positive and negative evidence, and as a result released our valuation allowance on our deferred tax assets. We maintain the valuation allowance on our California research and development tax credits and certain foreign intangible assets, as it is more likely than not that those deferred tax assets will not be realized. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Warranty Accrual | Warranty Accrual Estimated warranty costs associated with a product are recorded at the time revenue is recognized. We estimate future warranty costs by analyzing historical warranty experience for the timing and amount of returned product, and expectations for future warranty activity based on changes and improvements to the product or process that are in place or will be in place in the future. We evaluate these estimates on at least a quarterly basis to determine the continued appropriateness of our assumptions. |
Loss Contingencies | Loss Contingencies |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of two elements, net income (loss) and other comprehensive income. We report all components of comprehensive income (loss), including net income (loss), in our financial statements in the period in which they are recognized. Total comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. We report net income (loss) and the components of other comprehensive income, including foreign currency translation adjustments and unrealized gains and losses on marketable securities, net of their related tax effect to arrive at total comprehensive income (loss). |
Revenue Recognition | Revenue Recognition We generate our revenue from the sale of our reusable transmitter and receiver, collectively referred to as Reusable Hardware, and disposable sensors. We refer to Reusable Hardware and disposable sensors in this section as Components. We generally recognize revenue when control is transferred to our customers in an amount that reflects the net consideration to which we expect to be entitled. In determining how revenue should be recognized, a five-step process is used which includes identifying performance obligations in the contract, determining whether the performance obligations are separate, allocating the transaction price to each separate performance obligation, estimating the amount of variable consideration to include in the transaction price and determining the timing of revenue recognition for separate performance obligations. Policy Elections and Practical Expedients Taken • We report revenue net of taxes collected from customers, which are subsequently remitted to governmental authorities; • We account for shipping and handling activities that are performed after a customer has obtained control of a good as fulfillment costs rather than as separate performance obligations; • We do not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer; and • If we expect, at contract inception, that the period between the transfer of control and corresponding payment from the customer will be one year or less, we do not adjust the amount of consideration for the effects of a significant financing component. Contracts and Performance Obligations We consider customer purchase orders, which in most cases are governed by agreements with distributors or third-party payors, to be contracts with a customer. For each contract, we consider the obligation to transfer Components to the customer, each of which are distinct, to be separate performance obligations. We also provide free-of-charge software, mobile applications and updates for our Dexcom Share ® remote monitoring system. The standalone selling prices of our free-of-charge software, mobile applications and updates are estimated based on an expected cost plus a margin approach. Transaction Price Transaction price for the Components reflects the net consideration to which we expect to be entitled. Transaction price is typically based on the contracted rates less an estimate of claim denials and historical reimbursement experience by payor, which include current and future expectations regarding reimbursement rates and payor mix. Variable Consideration We include an estimate of variable consideration in the calculation of the transaction price at the time of sale, when control of the Components transfers to the customer. Variable consideration includes but is not limited to rebates, chargebacks, consideration payable to customers such as specialty distributor and wholesaler fees, product returns provision, prompt payment discounts, and various other promotional or incentive arrangements. We classify our provisions related to variable consideration as a reduction of accounts receivable when we are not required to make a payment or as a liability when we are required to make a payment. Rebates We are subject to rebates on pricing programs with managed care organizations, such as pharmacy benefit managers, governmental and third-party commercial payors, primarily in the U.S. We estimate provisions for rebates based on contractual arrangements, estimates of products sold subject to rebate, known events or trends and channel inventory data. Chargebacks We participate in chargeback programs, primarily with government entities in the U.S., under which pricing on products below negotiated list prices is provided to participating entities and equal to the difference between their acquisition cost and the lower negotiated price. We estimate provisions for chargebacks primarily based on historical experience on a product and program basis, current contract prices under the chargeback programs and channel inventory data. Consideration Payable to the Customer We pay administrative and service fees to certain of our distributors based on a fixed percentage of the product price. These fees are not in exchange for a distinct good or service and therefore are recognized as a reduction of the transaction price. We accrue for these fees based on actual net sales and contractual fee rates negotiated with the customer. Product Returns In accordance with the terms of their distribution agreements, most distributors do not have rights of return outside of our limited warranty. The distributors typically have a limited time frame to notify us of any missing, damaged, defective or non-conforming products. We generally provide a “30-day money back guarantee” program whereby first-time end-user customers may return Reusable Hardware. We estimate our product returns provision principally based on historical experience by applying a historical return rate to the amounts of revenue estimated to be subject to returns. Additionally, we consider other specific factors such as estimated shelf life of inventory in the distribution channel and changes to customer terms. Prompt Payment Discounts We provide customers with prompt payment discounts which may result in adjustments to the price that is invoiced for the product transferred, in the case that payments are made within a defined period. We estimate prompt payment discount accruals based on actual net sales and contractual discount rates. Various Other Promotional or Incentive Arrangements Other promotional or incentive arrangements are periodically offered to customers, including but not limited to co-payment assistance we provide to patients with commercial insurance, promotional programs related to the launch of products or other targeted promotions. We record a provision for the incentive earned based on the number of estimated claims and our estimate of the cost per claim related to product sales that we have recognized as revenue. Revenue Recognition The timing of revenue recognition is based on the satisfaction of performance obligations. Substantially all of the performance obligations associated with our Components are satisfied at a point in time, which typically occurs at shipment of our products. Terms of direct and distributor orders are generally Freight on Board (FOB) shipping point for U.S. orders or Free Carrier (FCA) shipping point for international orders. For certain sales transactions, control transfers at delivery of the product to the customer. In cases where our free-of-charge software, mobile applications and updates are deemed to be separate performance obligations, revenue is recognized over time on a ratable basis over the estimated life of the related Reusable Hardware component. Our sales of Components include an assurance-type warranty. Contract Balances Contract balances represent amounts presented in our consolidated balance sheets when either we have transferred goods or services to the customer or the customer has paid consideration to us under the contract. These contract balances include accounts receivable and deferred revenue. Payment terms vary by contract type and type of customer and generally range from 30 to 90 days. Accounts receivable as of December 31, 2020 included unbilled accounts receivable of $10.4 million. Unbilled accounts receivable consists of revenue recognized for Components we have delivered but not yet invoiced to customers. We expect to invoice and collect all unbilled accounts receivable within twelve months. We record deferred revenue when we have entered into a contract with a customer and cash payments are received or due prior to transfer of control or satisfaction of the related performance obligation. Our performance obligations are generally satisfied within 12 months of the initial contract date. The deferred revenue balances related to performance obligations that will be satisfied after 12 months was $8.2 million as of December 31, 2020 and $2.1 million as of December 31, 2019. These balances are included in other long-term liabilities in our consolidated balance sheets. Revenue recognized in the period from performance obligations satisfied in previous periods was not material for the periods presented. Deferred Cost of Sales Deferred cost of sales are associated with sales for which revenue recognition criteria are not met but product has shipped and released from inventory. Deferred cost of sales are included in prepaid and other current assets in our consolidated balance sheets. Incentive Compensation Costs one |
Product Shipment Costs | Product Shipment Costs We record the amounts we charge our customers for the shipping and handling of our products in revenue and we record the related costs as cost of sales in our statements of operations. |
Research and Development | Research and Development We expense costs of research and development as we incur them. Our research and development expenses primarily consist of engineering and research expenses related to our continuous glucose monitoring technology, clinical trials, regulatory expenses, quality assurance programs, materials and products for clinical trials. Research and development expenses primarily consist of employee compensation, including salary, fringe benefits, share-based compensation, and temporary employee expenses. We also incur significant expenses to operate our clinical trials that include clinical site reimbursement, clinical trial product, and associated travel expenses. Our research and development expenses also include fees for design services, contractors, and development materials. |
Advertising Costs | Advertising Costs |
Leases | Leases We determine if an arrangement is a lease at inception. Lease right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in most of our leases is not readily determinable. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in similar economic environments. The operating lease right-of-use asset also includes any lease payments made and excludes lease incentives. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Variable lease payments that do not depend on a rate or index, payments associated with non-lease components, and costs related to leases with terms of less than 12 months are expensed as incurred. |
Share-Based Compensation | Share-Based Compensation Share-based compensation expense is measured at the grant date based on the estimated fair value of the award and is recognized straight-line over the requisite service period of the individual grants, which typically equals the vesting period. We value time-based Restricted Stock Units or RSUs at the date of grant using the intrinsic value method. Certain RSUs granted to senior management vest based on the achievement of pre-established performance or market goals. We estimate the fair value of performance/market-based RSUs at the date of grant using the intrinsic value method and the probability that the specified performance criteria will be met. We update our assessment of the probability that the specified performance criteria will be achieved each quarter and adjust our estimate of the fair value of the performance-based RSUs if necessary. The Monte Carlo methodology that we use to estimate the fair value of market-based RSUs at the date of grant incorporates into the valuation the possibility that the market condition may not be satisfied. Provided that the requisite service is rendered, the total fair value of the market-based RSUs at the date of grant must be recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the performance of the specified market criteria. If any of the assumptions used change significantly, share-based compensation expense may differ materially from what we have recorded in the current period. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share attributable to common stockholders is calculated by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of common shares outstanding during the period and, when dilutive, potential common share equivalents. Potentially dilutive common shares consist of shares issuable from stock options, restricted stock units, warrants, and our senior convertible notes. Potentially dilutive common shares issuable upon vesting of stock options and restricted stock units and exercise of warrants are determined using the average share price for each period under the treasury stock method. Potentially dilutive common shares issuable upon conversion of our senior convertible notes are determined using the if-converted method. In periods of net losses, we exclude all potentially dilutive common shares from the computation of the diluted net loss per share for those periods as the effect would be anti-dilutive. |
Recent Accounting Guidance | Recent Accounting Guidance Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments , which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables and available-for-sale debt securities. This update is effective for annual periods beginning after December 15, 2019, and interim periods within those periods, and early adoption is permitted. Our adoption of ASU 2016-13 at the beginning of the first quarter of 2020 did not have a significant impact on our consolidated financial statements. In addition, the outbreak of the novel strain of coronavirus, SARS-CoV-2 (“COVID-19”), has not had a significant impact on our expected credit losses or our consolidated financial statements during 2020. We are continuing to monitor the impact of COVID-19 on expected credit losses. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04) . This new guidance eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. ASU 2017-04 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. Our adoption of ASU 2017-04 at the beginning of the first quarter of 2020 did not have a significant impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (ASU 2018-13 ), which adds and modifies certain disclosure requirements for fair value measurements. Under the new guidance, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, or valuation processes for Level 3 fair value measurements. However, public business entities will be required to disclose the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and related changes in unrealized gains and losses included in other comprehensive income. ASU 2018-13 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. Our adoption of ASU 2018-13 at the beginning of the first quarter of 2020 did not have a significant impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract (ASU 2018-15) . This new guidance requires a customer in a cloud computing arrangement to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. ASU 2018-15 is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. Application of this guidance can be applied either prospectively or retrospectively. We adopted the new standard on January 1, 2020 on a prospective basis. Our adoption of ASU 2018-15 at the beginning of the first quarter of 2020 did not have a significant impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. ASU 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years, and early adoption is permitted. We are currently evaluating the impact that this guidance will have on our consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) . This new guidance is intended to reduce the complexity of accounting for convertible instruments. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible instruments. Entities may adopt ASU 2020-06 using either a partial retrospective or fully retrospective method of transition. This ASU is effective for public business entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the impact that this guidance will have on our consolidated financial statements. |
Organization and Significant _3
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedules of Percentage of Total Revenues and Accounts Receivable by Customer | The following table sets forth the percentages of total revenue or gross accounts receivable for customers that represent 10% or more of the respective amounts for the periods shown: Revenue Gross Accounts Receivable Twelve Months Ended As of December 31, 2020 2019 2018 2020 2019 Distributor A 23 % 17 % 15 % 19 % 21 % Distributor B 11 % 12 % 12 % 10 % * Distributor C 18 % 10 % * 12 % * Distributor D 11 % * * * * * Less than 10% |
Schedule of Basic and Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share for the periods shown. Twelve Months Ended (In millions) 2020 2019 2018 Net income (loss) $ 493.6 $ 101.1 $ (127.1) Net income (loss) per common share Basic $ 5.23 $ 1.11 $ (1.44) Diluted $ 5.06 $ 1.10 $ (1.44) Basic weighted average shares outstanding 94.4 91.1 88.2 Dilutive potential common stock outstanding: Stock options and employee stock purchase plan — — — Restricted stock units 1.0 1.2 — Warrants 2.1 — — Senior convertible notes — — — Diluted weighted average shares outstanding 97.5 92.3 88.2 |
Schedule of Outstanding Anti-Dilutive Securities Excluded in Diluted Net Income (Loss) per Share | Outstanding anti-dilutive securities not included in the diluted net income (loss) per share attributable to common stockholders calculations were as follows: Twelve Months Ended (In millions) 2020 2019 2018 Stock options — — 0.1 Restricted stock units — 0.2 2.7 Warrants — 5.2 5.2 Senior convertible notes 7.2 9.2 9.2 Total 7.2 14.6 17.2 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy for Financial Assets | The following table summarizes financial assets that we measured at fair value on a recurring basis as of December 31, 2020, classified in accordance with the fair value hierarchy: Fair Value Measurements Using (In millions) Level 1 Level 2 Level 3 Total Cash equivalents $ 491.5 $ 150.0 $ — $ 641.5 Debt securities, available for sale: U.S. government agencies — 1,570.4 — 1,570.4 Commercial paper — 258.8 — 258.8 Corporate debt — 60.9 — 60.9 Total debt securities, available for sale — 1,890.1 — 1,890.1 Other assets (1) 3.4 — — 3.4 Total assets measured at fair value on a recurring basis $ 494.9 $ 2,040.1 $ — $ 2,535.0 (1) Includes assets which are held pursuant to a deferred compensation plan for senior management, which consist mainly of mutual funds. The following table summarizes financial assets that we measured at fair value on a recurring basis as of December 31, 2019, classified in accordance with the fair value hierarchy: Fair Value Measurements Using (In millions) Level 1 Level 2 Level 3 Total Cash equivalents $ 110.1 $ 144.9 $ — $ 255.0 Debt securities, available for sale: U.S. government agencies — 676.0 — 676.0 Commercial paper — 248.2 — 248.2 Corporate debt — 162.9 — 162.9 Total debt securities, available for sale — 1,087.1 — 1,087.1 Other assets (1) 0.7 — — 0.7 Total assets measured at fair value on a recurring basis $ 110.8 $ 1,232.0 $ — $ 1,342.8 (1) Includes assets which are held pursuant to a deferred compensation plan for our executives, which consist mainly of mutual funds. |
Schedule of Fair Value of Senior Convertible Notes | The fair value, based on trading prices (Level 1), of our senior convertible notes were as follows as of the dates indicated: Fair Value Measurements Using Level 1 (In millions) December 31, 2020 December 31, 2019 Senior Convertible Notes due 2022 * * $ 890.8 Senior Convertible Notes due 2023 $ 1,936.4 1,260.0 Senior Convertible Notes due 2025 1,219.2 * Total fair value of outstanding senior convertible notes $ 3,155.6 $ 2,150.8 *Not applicable as no notes were outstanding at this date. For more information on the carrying values of our senior convertible notes, see Note 5, “Debt.” |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Short-term Marketable Securities | Short-term marketable securities, consisting of debt securities, were as follows as of the dates indicated: December 31, 2020 (In millions) Amortized Gross Gross Estimated Debt securities, available for sale: U.S. government agencies $ 1,570.4 $ 0.1 $ (0.1) $ 1,570.4 Commercial paper 258.7 0.1 — 258.8 Corporate debt 60.9 — — 60.9 Total debt securities, available for sale $ 1,890.0 $ 0.2 $ (0.1) $ 1,890.1 December 31, 2019 (In millions) Amortized Gross Gross Estimated Debt securities, available for sale: U.S. government agencies $ 675.6 $ 0.4 $ — $ 676.0 Commercial paper 248.1 0.1 — 248.2 Corporate debt 163.0 — (0.1) 162.9 Total debt securities, available for sale $ 1,086.7 $ 0.5 $ (0.1) $ 1,087.1 |
Schedule of Reconciliation of Net Gain (Loss) Recognized on Equity Securities | The following table reconciles the net gain recognized on marketable equity securities during the twelve months ended December 31, 2020, 2019 and 2018 to the unrealized gain recognized during those periods on equity securities still held at the reporting dates. Twelve Months Ended (In millions) 2020 2019 2018 Net gains and losses recognized during the period on equity securities $ — $ (4.2) $ 80.1 Less: Net gains and losses recognized during the period on equity securities sold during the period — 4.2 (44.1) Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ — $ — $ 36.0 |
Schedule of Accounts Receivable | December 31, (In millions) 2020 2019 Accounts receivable $ 435.7 $ 292.1 Less allowance for doubtful accounts (7.2) (5.8) Total accounts receivable, net $ 428.5 $ 286.3 |
Schedule of Inventory | December 31, (In millions) 2020 2019 Raw materials $ 69.9 $ 64.9 Work-in-process 14.2 11.1 Finished goods 150.6 43.8 Total inventory $ 234.7 $ 119.8 |
Schedule of Property and Equipment | December 31, (In millions) 2020 2019 Land (1) $ 15.6 $ — Building (1) 49.2 15.5 Furniture and fixtures 15.3 12.8 Computer software and hardware 35.7 32.7 Machinery and equipment 198.9 130.2 Leasehold improvements 135.8 102.5 Construction in progress 219.0 132.6 Total cost 669.5 426.3 Less accumulated depreciation and amortization (154.2) (105.0) Total property and equipment, net $ 515.3 $ 321.3 (1) Represents our finance lease right-of-use assets. |
Schedule of Accounts Payable and Accrued Liabilities | December 31, (In millions) 2020 2019 Accounts payable trade $ 163.3 $ 102.3 Accrued tax, audit, and legal fees 15.3 14.0 Accrued rebates 247.0 93.3 Accrued warranty 11.7 7.4 Other accrued liabilities 43.8 39.4 Total accounts payable and accrued liabilities $ 481.1 $ 256.4 |
Schedule of Accrued Warranty | Reconciliations of our accrued warranty costs for the twelve months ended December 31, 2020 and 2019 were as follows: Twelve Months Ended (In millions) 2020 2019 Beginning balance $ 7.4 $ 6.8 Charges to costs and expenses 41.3 32.7 Costs incurred (37.0) (32.1) Ending balance $ 11.7 $ 7.4 |
Schedule of Other Long-Term Liabilities | December 31, (In millions) 2020 2019 Finance lease obligations $ 54.0 $ 14.4 Contractual obligations 12.6 — Other liabilities 14.3 5.7 Total other liabilities $ 80.9 $ 20.1 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The carrying amounts of our senior convertible notes were as follows as of the dates indicated: December 31, (Dollars in millions) 2020 2019 Principal amount: Senior Convertible Notes due 2022 $ — $ 400.0 Senior Convertible Notes due 2023 850.0 850.0 Senior Convertible Notes due 2025 1,207.5 — Total principal amount 2,057.5 1,250.0 Unamortized debt discount (371.1) (177.2) Unamortized debt issuance costs (19.2) (13.1) Carrying amount of liability component $ 1,667.2 $ 1,059.7 Carrying value of equity component $ 461.0 $ 242.2 Remaining amortization period of debt discount on the liability component: Senior Convertible Notes due 2022 * 2.5 years Senior Convertible Notes due 2023 2.9 years 4.0 years Senior Convertible Notes due 2025 4.9 years * * Not applicable as no notes were outstanding at this date. |
Schedule of Converted Value of Notes | For our senior convertible notes for which the if-converted value exceeded the principal amount, the amount in excess of principal is as follows as of the dates indicated: December 31, (In millions) 2020 2019 Senior Convertible Notes due 2022 * $ 486.2 Senior Convertible Notes due 2023 1,077.5 372.4 Total by which the notes’ if-converted value exceeds their principal amount $ 1,077.5 $ 858.6 * Not applicable as no notes were outstanding at this date. |
Schedule of Components of Interest Expense and Effective Interest Rates of Senior Convertible Notes | The following table summarizes the components of interest expense and the effective interest rates for each of our senior convertible notes for the periods shown. (Dollars in millions) Twelve Months Ended 2020 2019 2018 Cash interest expense: Contractual coupon interest (1) $ 9.3 $ 9.3 $ 3.5 Non-cash interest expense: Accretion of debt discount 68.6 45.8 16.0 Amortization of debt issuance costs 4.0 3.7 1.8 Total interest expense recognized on senior notes $ 81.9 $ 58.8 $ 21.3 Effective interest rates: Senior Convertible Notes due 2022 (2) 5.1 % 5.1 % 5.1 % Senior Convertible Notes due 2023 5.6 % 5.6 % 5.6 % Senior Convertible Notes due 2025 5.5 % * * (1) Interest on the 2022 Notes began accruing upon issuance and was payable semi-annually on May 15 and November 15 of each year. Interest on the 2023 Notes began accruing upon issuance and is payable semi-annually on June 1 and December 1 of each year. Interest on the 2025 Notes began accruing upon issuance and is payable semi-annually on May 15 and November 15 of each year. (2) The effective interest rate presented represents the rate applicable for the period outstanding. The Senior Convertible Notes due 2022 were fully redeemed by July 31, 2020, as described below. * Not applicable as no notes were outstanding at this date. |
Schedule of Availability and Outstanding Borrowings on Credit Agreement | Information related to availability and outstanding borrowings on our Credit Agreement is as follows as of the date indicated: December 31, (In millions) 2020 Available principal amount $ 200.0 Letters of credit sub-facility 10.0 Outstanding borrowings — Outstanding letters of credit 6.3 Total available balance $ 193.7 |
Leases And Other Commitments (T
Leases And Other Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Maturity of Operating Lease Liabilities | As of December 31, 2020, the maturities of our operating and finance lease liabilities were as shown in the table below: (In millions) Operating Leases Finance Leases 2020 $ 21.2 $ 10.7 2021 22.1 4.2 2022 22.4 4.3 2023 20.8 4.5 2024 20.0 4.6 Thereafter 32.0 68.7 Total future lease cost (1) 138.5 97.0 Less: Imputed interest (20.2) (34.2) Present value of future payments 118.3 62.8 Less: Current portion (16.5) (8.8) Long-term portion $ 101.8 $ 54.0 (1) Total future lease cost excludes $16.3 million of legally binding minimum lease payments for leases signed but not yet commenced . |
Schedule of Maturity of Finance Lease Liabilities | As of December 31, 2020, the maturities of our operating and finance lease liabilities were as shown in the table below: (In millions) Operating Leases Finance Leases 2020 $ 21.2 $ 10.7 2021 22.1 4.2 2022 22.4 4.3 2023 20.8 4.5 2024 20.0 4.6 Thereafter 32.0 68.7 Total future lease cost (1) 138.5 97.0 Less: Imputed interest (20.2) (34.2) Present value of future payments 118.3 62.8 Less: Current portion (16.5) (8.8) Long-term portion $ 101.8 $ 54.0 (1) Total future lease cost excludes $16.3 million of legally binding minimum lease payments for leases signed but not yet commenced . |
Schedule of Components of Lease Expense and Other Information | The components of lease expense for the twelve months ended December 31, 2020 and 2019 were as follows: Twelve Months Ended (In millions) 2020 2019 Finance lease cost: Amortization of right-of-use assets $ 2.0 $ 1.1 Interest on lease liabilities 1.9 0.8 Operating lease cost 18.4 12.2 Short-term lease cost (1) 1.3 3.5 Variable lease cost (2) 4.2 3.9 Total lease cost $ 27.8 $ 21.5 (1) Short-term lease cost is primarily related to temporary office space associated with the transition of certain operations to the Philippines. (2) Variable lease costs are primarily related to common area maintenance charges and property taxes . Other information related to leases was as shown in the table below. All figures include the leases recorded at the beginning of the first quarter of 2019 as a result of our adoption of ASC 842. Twelve Months Ended (Dollars in millions) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 18.3 $ 14.3 Operating cash flows from finance leases 0.7 0.8 Financing cash flows from finance leases 8.5 0.5 Right-of-use assets obtained in exchange for lease liabilities: Operating leases 33.5 80.6 Finance leases $ 41.7 $ 15.5 Weighted average remaining lease term: Operating leases 6.1 years 6.2 years Finance leases 23.3 years 13.3 years Weighted average discount rate: Operating leases 5.0% 5.0% Finance leases 5.2% 5.0% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Income Taxes Subject to Taxes | Income (loss) before income taxes subject to taxes in the following jurisdictions is as follows: Twelve Months Ended (In millions) 2020 2019 2018 United States $ 270.7 $ 119.1 $ (28.3) Outside of the United States (45.7) (14.9) (98.2) Total $ 225.0 $ 104.2 $ (126.5) |
Schedule of Components of Income Tax Expense (Benefit) | Significant components of the provision for income taxes are as follows: Twelve Months Ended (In millions) 2020 2019 2018 Current: Federal $ — $ — $ — State 6.1 1.0 2.7 Foreign 2.6 1.9 0.1 Total current income taxes 8.7 2.9 2.8 Deferred: Federal (198.8) — (1.7) State (51.4) — (0.5) Foreign (27.1) 0.2 — Total deferred income taxes (277.3) 0.2 (2.2) Total $ (268.6) $ 3.1 $ 0.6 |
Schedule of Tax Credit Carryforwards | Significant loss and tax credit carryforwards and years of expiration are as follows: December 31, Year of Expiration (In millions) 2020 2019 Net Operating Loss: Federal $ 169.1 $ 438.8 2027 California 236.3 235.3 2029 Other States 36.1 88.8 2030 UK 113.2 124.1 Indefinite Tax Credits: Federal 73.1 54.4 2026 California $ 66.2 $ 52.7 Indefinite |
Schedule of Operating Loss Carryforwards | Significant loss and tax credit carryforwards and years of expiration are as follows: December 31, Year of Expiration (In millions) 2020 2019 Net Operating Loss: Federal $ 169.1 $ 438.8 2027 California 236.3 235.3 2029 Other States 36.1 88.8 2030 UK 113.2 124.1 Indefinite Tax Credits: Federal 73.1 54.4 2026 California $ 66.2 $ 52.7 Indefinite |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities as of December 31, 2020 and 2019 are shown below. Significant judgment is required to evaluate the need for a valuation allowance against deferred tax assets. We review all available positive and negative evidence, including projections of pre-tax book income, earnings history, reliability of forecasting, and reversal of temporary differences. A valuation allowance is established when it is more likely than not that some or all of the deferred tax assets will not be realized. Realization of deferred tax assets is dependent upon future earnings in applicable tax jurisdictions. Prior to 2020, due to our U.S. operating losses and earnings volatility in previous years, which did not allow sustainable profitability, we had established and maintained a full valuation allowance on our deferred tax assets. In 2020, we achieved three years of cumulative income. We analyzed both positive and negative evidence, and as a result, we released our valuation allowance on our deferred tax assets, with the exception of our California research and development tax credits and certain foreign intangible assets, as it is more likely than not that those deferred tax assets will not be realized. December 31, (In millions) 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 69.2 $ 127.4 Capitalized research and development expenses 53.6 57.1 Tax credits 101.1 78.6 Share-based compensation 13.0 10.9 Fixed and intangible assets 16.9 14.0 Accrued liabilities and reserves 110.3 62.0 Convertible debt — 1.7 Total gross deferred tax assets 364.1 351.7 Less: valuation allowance (55.5) (332.2) Total net deferred tax assets 308.6 19.5 Deferred tax liabilities: Fixed assets and acquired intangibles assets (36.3) (19.6) Convertible debt discount (55.9) — Total deferred tax liabilities (92.2) (19.6) Net deferred tax assets (liabilities) $ 216.4 $ (0.1) |
Schedule of Reconciliation between Effective Tax Rate and Statutory Rate | The reconciliation between our effective tax rate on income (loss) from continuing operations and the statutory rate is as follows: Twelve Months Ended (In millions) 2020 2019 2018 U.S. federal statutory tax rate $ 47.3 $ 21.9 $ (26.6) State income tax, net of federal benefit 3.2 (2.3) (5.5) Permanent items 13.1 1.0 1.3 Research and development credits (24.4) (10.8) (11.7) Foreign rate differential (0.1) 5.6 3.7 Stock and officers compensation (28.7) (14.7) (5.1) Change in statutory tax rates (4.1) — — Impact of adoption of ASU 2016-16 — — (13.3) Impact of Tax Cuts and Jobs Act of 2017 — — (0.4) Other 0.1 (1.0) 1.3 Change in valuation allowance (275.0) 3.4 56.9 Income taxes at effective rates $ (268.6) $ 3.1 $ 0.6 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits: (In millions) Balance at January 1, 2018 $ 22.8 Decreases related to prior year tax positions (0.3) Increases related to current year tax positions 3.4 Decrease related to Tax Cuts and Jobs Act of 2017 — Balance at December 31, 2018 25.9 Decreases related to prior year tax positions (0.9) Increases related to current year tax positions 4.5 Balance at December 31, 2019 29.5 Decreases related to prior year tax positions (0.9) Increases related to current year tax positions 8.0 Balance at December 31, 2020 $ 36.6 |
Employee Benefit Plans and St_2
Employee Benefit Plans and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Intrinsic Value of Options Exercised and Fair Value of Options Vested | The total intrinsic value of stock options exercised as of the date of exercise was as follows: Twelve Months Ended (In millions) 2020 2019 2018 Intrinsic value of options exercised $ 7.9 $ 7.4 $ 30.0 |
Schedule of Restricted Stock Units Activity | A summary of our RSU activity for the twelve months ended December 31, 2020, 2019 and 2018 is as follows: (In millions except weighted average grant date fair value) Shares Weighted Aggregate Nonvested at December 31, 2017 2.7 $ 70.68 Granted 1.7 66.07 Vested (1.4) 68.44 Forfeited (0.3) 68.56 Nonvested at December 31, 2018 2.7 69.19 $ 319.0 Granted 0.7 144.37 Vested (1.4) 69.45 Forfeited (0.2) 83.45 Nonvested at December 31, 2019 1.8 96.63 392.0 Granted 0.5 300.36 Vested (1.0) 92.07 Forfeited (0.1) 137.44 Nonvested at December 31, 2020 1.2 $ 183.51 $ 430.6 |
Schedule of Stock Options Reserved for Future Issuance | Shares of common stock reserved for future issuance were as follows as of the dated indicated: December 31, (In millions) 2020 2019 Stock awards under our plans: Unvested restricted stock units 1.2 1.8 Reserved for future grant 4.5 4.9 Employee Stock Purchase Plan 0.8 0.9 Total 6.5 7.6 |
Schedule of Share-Based Compensation Expenses | The following table summarizes share-based compensation expense related to restricted stock units and employee stock purchases under the ESPP for the twelve months ended December 31, 2020, 2019 and 2018: Twelve Months Ended (In millions) 2020 2019 2018 Cost of sales $ 14.6 $ 9.0 $ 9.2 Research and development 37.8 33.5 33.0 Selling, general and administrative 67.0 60.2 59.7 Total share-based compensation expense $ 119.4 $ 102.7 $ 101.9 |
Schedule of Valuation Assumptions for Employee Stock Purchase Plan | We estimate the fair value of ESPP purchase rights on the date of grant using the Black-Scholes option pricing model and the assumptions below for the specified reporting periods. Twelve Months Ended 2020 2019 2018 Risk free interest rate 0.13 - 0.95 1.72 - 2.55 1.55 - 2.25 Dividend yield — % — % — % Expected volatility of Dexcom common stock 0.51 - 0.63 0.40 - 0.51 0.50 - 0.67 Expected life (in years) 0.5 1 1 |
Business Segment and Geograph_2
Business Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers by Geographic Areas | The table below sets forth revenues by our two primary geographical markets, the United States and outside of the United States, based on the geographic location to which we deliver the product. The majority of our long-lived assets are located in the United States. Twelve Months Ended December 31, 2020 2019 2018 (Dollars in millions) Amount % Amount % Amount % United States $ 1,509.5 78 % $ 1,161.5 79 % $ 818.4 79 % Outside of the United States 417.2 22 % 314.5 21 % 213.2 21 % Total $ 1,926.7 100 % $ 1,476.0 100 % $ 1,031.6 100 % |
Schedule of Disaggregation of Revenue | The following table sets forth revenues by major sales channel for the twelve months ended December 31, 2020, 2019 and 2018: Twelve Months Ended December 31, 2020 2019 2018 (Dollars in millions) Amount % Amount % Amount % Distributor $ 1,437.6 75 % $ 1,011.6 69 % $ 652.9 63 % Direct 489.1 25 % 464.4 31 % 378.7 37 % Total $ 1,926.7 100 % $ 1,476.0 100 % $ 1,031.6 100 % |
Organization and Significant _4
Organization and Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Maturity threshold of investments classified to cash equivalents | 90 days | ||
Goodwill and intangible asset impairment | $ 0 | $ 0 | $ 0 |
Sales return period | 30 days | ||
Unbilled accounts receivable | $ 10,400,000 | ||
Deferred revenue that will be satisfied after 12 months | 8,200,000 | 2,100,000 | |
Advertising costs | $ 76,500,000 | $ 33,100,000 | $ 24,000,000 |
Computer software and hardware | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 3 years | ||
Furniture and fixtures | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 5 years | ||
Minimum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Useful life of finite-lived intangible assets | 2 years | ||
Customer contract payment terms | 30 days | ||
Minimum | Machinery and Equipment | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 4 years | ||
Maximum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Useful life of finite-lived intangible assets | 7 years | ||
Customer contract payment terms | 90 days | ||
Amortization period for incentive compensation costs | 1 year | ||
Maximum | Machinery and Equipment | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 15 years | ||
Maximum | Building | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life | 40 years |
Organization and Significant _5
Organization and Significant Accounting Policies - Revenues and Gross Accounts Receivable by Customer (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | Distributor A | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 23.00% | 17.00% | 15.00% |
Revenue | Distributor B | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 11.00% | 12.00% | 12.00% |
Revenue | Distributor C | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 18.00% | 10.00% | |
Revenue | Distributor D | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 11.00% | ||
Gross Accounts Receivable | Distributor A | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 19.00% | 21.00% | |
Gross Accounts Receivable | Distributor B | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 10.00% | ||
Gross Accounts Receivable | Distributor C | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 12.00% |
Organization and Significant _6
Organization and Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Net income (loss) | $ 493.6 | $ 101.1 | $ (127.1) |
Basic net income (loss) per share (USD per share) | $ 5.23 | $ 1.11 | $ (1.44) |
Diluted net income (loss) per share (USD per share) | $ 5.06 | $ 1.10 | $ (1.44) |
Basic weighted average shares outstanding (shares) | 94.4 | 91.1 | 88.2 |
Diluted weighted average shares outstanding (shares) | 97.5 | 92.3 | 88.2 |
Stock options and employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dilutive potential common stock outstanding (shares) | 0 | 0 | 0 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dilutive potential common stock outstanding (shares) | 1 | 1.2 | 0 |
Warrants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dilutive potential common stock outstanding (shares) | 2.1 | 0 | 0 |
Senior convertible notes | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dilutive potential common stock outstanding (shares) | 0 | 0 | 0 |
Organization and Significant _7
Organization and Significant Accounting Policies - Anti-dilutive Securities (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (shares) | 7.2 | 14.6 | 17.2 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (shares) | 0 | 0 | 0.1 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (shares) | 0 | 0.2 | 2.7 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (shares) | 0 | 5.2 | 5.2 |
Senior convertible notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share (shares) | 7.2 | 9.2 | 9.2 |
Development and Other Agreeme_2
Development and Other Agreements - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 20, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 28, 2018 |
Development Agreements [Line Items] | |||||
Collaborative research and development fee | $ 0 | $ 0 | $ 217.7 | ||
Collaborative Arrangement | Verily Life Sciences | Collaborative Arrangement, Initial Payment | |||||
Development Agreements [Line Items] | |||||
Initial payment on collaborative agreement | $ 250 | ||||
Issuance of common stock in connection with acquisition, shares (in shares) | 1,840,943 | ||||
Collaborative research and development fee | $ 217.7 | ||||
Closing stock price (USD per share) | $ 118.28 | ||||
Collaborative Arrangement | Verily Life Sciences | Collaborative Arrangement, Milestone Payments | |||||
Development Agreements [Line Items] | |||||
Collaborative research and development fee | $ 0 | $ 3.2 | |||
Additional milestones and incentive payments | $ 275 | ||||
Milestone payments due upon achievement of future development | $ 275 | ||||
Potential future common stock issuable (shares) | 2,025,036 | ||||
Consecutive days used to calculate volume weighted average trading price | 15 days |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy of Financial Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 641.5 | $ 255 |
Debt securities, available-for-sale | 1,890.1 | 1,087.1 |
Other assets | 3.4 | 0.7 |
Total assets measured at fair value on a recurring basis | 2,535 | 1,342.8 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 491.5 | 110.1 |
Debt securities, available-for-sale | 0 | 0 |
Other assets | 3.4 | 0.7 |
Total assets measured at fair value on a recurring basis | 494.9 | 110.8 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 150 | 144.9 |
Debt securities, available-for-sale | 1,890.1 | 1,087.1 |
Other assets | 0 | 0 |
Total assets measured at fair value on a recurring basis | 2,040.1 | 1,232 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Debt securities, available-for-sale | 0 | 0 |
Other assets | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 1,570.4 | 676 |
U.S. government agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
U.S. government agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 1,570.4 | 676 |
U.S. government agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 258.8 | 248.2 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 258.8 | 248.2 |
Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 60.9 | 162.9 |
Corporate debt | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Corporate debt | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 60.9 | 162.9 |
Corporate debt | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers between Level 1 and Level 2 securities | $ 0 | $ 0 | |
Transfers in or out of Level 3 securities | 0 | 0 | |
Goodwill and intangible asset impairment | 0 | 0 | $ 0 |
Designated as Hedging Instrument | Foreign Exchange Forward | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional amount of outstanding hedge to currency risk | $ 48,000,000 | $ 8,000,000 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value of Senior Convertible Notes (Details) - Senior Notes - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of outstanding senior convertible notes | $ 3,155.6 | $ 2,150.8 |
Convertible Notes due 2022 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of outstanding senior convertible notes | 890.8 | |
Convertible Notes due 2023 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of outstanding senior convertible notes | 1,936.4 | $ 1,260 |
Convertible Notes due 2025 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total fair value of outstanding senior convertible notes | $ 1,219.2 |
Balance Sheet Details - Short-t
Balance Sheet Details - Short-term Marketable Securities, Available-for-Sale (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Statement Details [Line Items] | ||
Amortized Cost | $ 1,890 | $ 1,086.7 |
Gross Unrealized Gains | 0.2 | 0.5 |
Gross Unrealized Losses | (0.1) | (0.1) |
Estimated Market Value | 1,890.1 | 1,087.1 |
U.S. government agencies | ||
Financial Statement Details [Line Items] | ||
Amortized Cost | 1,570.4 | 675.6 |
Gross Unrealized Gains | 0.1 | 0.4 |
Gross Unrealized Losses | (0.1) | 0 |
Estimated Market Value | 1,570.4 | 676 |
Commercial paper | ||
Financial Statement Details [Line Items] | ||
Amortized Cost | 258.7 | 248.1 |
Gross Unrealized Gains | 0.1 | 0.1 |
Gross Unrealized Losses | 0 | 0 |
Estimated Market Value | 258.8 | 248.2 |
Corporate debt | ||
Financial Statement Details [Line Items] | ||
Amortized Cost | 60.9 | 163 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (0.1) |
Estimated Market Value | $ 60.9 | $ 162.9 |
Balance Sheet Details - Narrati
Balance Sheet Details - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||
Maximum contractual maturities of debt securities held | 12 months | ||
Depreciation expense | $ 64 | $ 46.9 | $ 28.6 |
Gain (loss) on disposal of machinery and equipment | (13.6) | (10.5) | (5.4) |
Receiver Product Component | |||
Condensed Financial Statements, Captions [Line Items] | |||
Inventory write-down | $ 24.4 | $ 14.1 | $ 7.3 |
Balance Sheet Details - Net Gai
Balance Sheet Details - Net Gain (Loss) Recognized on Equity Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net gain recognized on equity securities | |||
Net gains and losses recognized during the period on equity securities | $ 0 | $ (4.2) | $ 80.1 |
Less: Net gains and losses recognized during the period on equity securities sold during the period | 0 | 4.2 | (44.1) |
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date | $ 0 | $ 0 | $ 36 |
Balance Sheet Details - Account
Balance Sheet Details - Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Information Disclosure [Abstract] | ||
Accounts receivable | $ 435.7 | $ 292.1 |
Less allowance for doubtful accounts | (7.2) | (5.8) |
Total accounts receivable, net | $ 428.5 | $ 286.3 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 69.9 | $ 64.9 |
Work-in-process | 14.2 | 11.1 |
Finished goods | 150.6 | 43.8 |
Total inventory | $ 234.7 | $ 119.8 |
Balance Sheet Details - Propert
Balance Sheet Details - Property and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 669.5 | $ 426.3 |
Less accumulated depreciation and amortization | (154.2) | (105) |
Total property and equipment, net | 515.3 | 321.3 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 15.6 | 0 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 49.2 | 15.5 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 15.3 | 12.8 |
Computer software and hardware | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 35.7 | 32.7 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 198.9 | 130.2 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 135.8 | 102.5 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 219 | $ 132.6 |
Balance Sheet Details - Accou_2
Balance Sheet Details - Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Financial Information Disclosure [Abstract] | |||
Accounts payable trade | $ 163.3 | $ 102.3 | |
Accrued tax, audit, and legal fees | 15.3 | 14 | |
Accrued rebates | 247 | 93.3 | |
Accrued warranty | 11.7 | 7.4 | $ 6.8 |
Other accrued liabilities | 43.8 | 39.4 | |
Total accounts payable and accrued liabilities | $ 481.1 | $ 256.4 |
Balance Sheet Details - Accrued
Balance Sheet Details - Accrued Warranty (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 7.4 | $ 6.8 |
Charges to costs and expenses | 41.3 | 32.7 |
Costs incurred | (37) | (32.1) |
Ending balance | $ 11.7 | $ 7.4 |
Balance Sheet Details - Other L
Balance Sheet Details - Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Information Disclosure [Abstract] | ||
Finance lease obligations | $ 54 | $ 14.4 |
Contractual Obligation | 12.6 | 0 |
Other liabilities | 14.3 | 5.7 |
Total other liabilities | $ 80.9 | $ 20.1 |
Debt - Senior Convertible Notes
Debt - Senior Convertible Notes (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2020 | Nov. 30, 2018 | Jun. 12, 2017 | |
Senior Convertible Notes | |||||
Carrying amount of liability component | $ 1,667,200,000 | $ 1,059,700,000 | |||
Senior Notes | |||||
Senior Convertible Notes | |||||
Total principal amount | 2,057,500,000 | 1,250,000,000 | |||
Unamortized debt discount | (371,100,000) | (177,200,000) | |||
Unamortized debt issuance costs | (19,200,000) | (13,100,000) | |||
Carrying amount of liability component | 1,667,200,000 | 1,059,700,000 | |||
Carrying value of equity component | 461,000,000 | 242,200,000 | |||
Senior Notes | Convertible Notes due 2022 | |||||
Senior Convertible Notes | |||||
Total principal amount | 0 | $ 400,000,000 | $ 260,000,000 | $ 400,000,000 | |
Remaining amortization period of debt discount on the liability component: | 2 years 6 months | ||||
Senior Notes | Convertible Notes due 2023 | |||||
Senior Convertible Notes | |||||
Total principal amount | $ 850,000,000 | $ 850,000,000 | $ 850,000,000 | ||
Remaining amortization period of debt discount on the liability component: | 2 years 10 months 24 days | 4 years | |||
Senior Notes | Convertible Notes due 2025 | |||||
Senior Convertible Notes | |||||
Total principal amount | $ 1,207,500,000 | $ 0 | $ 1,210,000,000 | ||
Remaining amortization period of debt discount on the liability component: | 4 years 10 months 24 days |
Debt - Conversion Value of Conv
Debt - Conversion Value of Convertible Notes (Details) - Senior Notes - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Total by which the notes’ if-converted value exceeds their principal amount | $ 1,077.5 | $ 858.6 |
Convertible Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Total by which the notes’ if-converted value exceeds their principal amount | 486.2 | |
Convertible Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Total by which the notes’ if-converted value exceeds their principal amount | $ 1,077.5 | $ 372.4 |
Debt - Components of Interest E
Debt - Components of Interest Expense and Effective Interest Rates of Senior Convertible Notes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash interest expense: | |||
Contractual coupon interest | $ 9.3 | $ 9.3 | $ 3.5 |
Non-cash interest expense: | |||
Accretion of debt discount | (68.6) | (45.8) | (16) |
Amortization of debt issuance costs | 4 | 3.7 | 1.8 |
Total interest expense recognized on senior notes | $ 81.9 | $ 58.8 | $ 21.3 |
Convertible Notes due 2022 | |||
Non-cash interest expense: | |||
Effective interest rate (as a percent) | 5.10% | 5.10% | 5.10% |
Convertible Notes due 2023 | |||
Non-cash interest expense: | |||
Effective interest rate (as a percent) | 5.60% | 5.60% | 5.60% |
Convertible Notes due 2025 | |||
Non-cash interest expense: | |||
Effective interest rate (as a percent) | 5.50% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jun. 29, 2020 | May 31, 2020USD ($)shares | Nov. 30, 2018USD ($)d$ / sharesshares | Jun. 30, 2017USD ($) | Jun. 30, 2017d | Sep. 30, 2020USD ($)shares | Dec. 31, 2020USD ($)trading_daydshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)$ / shares | Dec. 19, 2018USD ($) | Jun. 12, 2017USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Proceeds from issuance of convertible notes, net of issuance costs | $ 1,188,800,000 | $ 0 | $ 836,600,000 | |||||||||
Repurchase of convertible notes | $ 282,600,000 | 282,600,000 | 0 | 0 | ||||||||
Repurchase and conversions of 2022 notes (in shares) | shares | 1,953,067 | |||||||||||
Loss on extinguishment of debt | $ 5,900,000 | (5,900,000) | 0 | 0 | ||||||||
Equity component of convertible note issuance, net of issuance costs | 289,400,000 | 171,600,000 | ||||||||||
Proceeds from sale of warrants | 0 | 0 | 183,800,000 | |||||||||
Senior Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total principal amount | 2,057,500,000 | 1,250,000,000 | ||||||||||
Senior Notes | Convertible Notes due 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total principal amount | $ 850,000,000 | $ 850,000,000 | 850,000,000 | |||||||||
Interest rate on convertible notes (as a percent) | 0.75% | |||||||||||
Proceeds from issuance of convertible notes, net of issuance costs | $ 836,600,000 | |||||||||||
Conversion ratio | 0.0060869000 | 0.0100918000 | ||||||||||
Conversion price of convertible notes (USD per share) | $ / shares | $ 164.29 | |||||||||||
Holder's repurchase price percentage in event of fundamental change (as a percent) | 100.00% | |||||||||||
Number of trading days | d | 60 | |||||||||||
Proportion of conversion price (as a percent) | 130.00% | |||||||||||
Redemption price (as a percent) | 100.00% | |||||||||||
Stock counterparties to acquire with warrants purchased (shares) | shares | 5,200,000 | |||||||||||
Proceeds from sale of warrants | $ 183,800,000 | |||||||||||
Exercise price of warrants or rights (USD per share) | $ / shares | $ 198.38 | |||||||||||
Senior Notes | Convertible Notes due 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total principal amount | $ 260,000,000 | $ 0 | 400,000,000 | $ 400,000,000 | ||||||||
Interest rate on convertible notes (as a percent) | 0.75% | |||||||||||
Proceeds from issuance of convertible notes, net of issuance costs | $ 389,000,000 | |||||||||||
Conversion price of convertible notes (USD per share) | $ / shares | $ 99.09 | |||||||||||
Holder's repurchase price percentage in event of fundamental change (as a percent) | 100.00% | 100.00% | ||||||||||
Proportion of conversion price (as a percent) | 140.00% | |||||||||||
Redemption price (as a percent) | 100.00% | 100.00% | ||||||||||
Debt Instrument Convertible Principal Amount Exercised | $ 140,000,000 | |||||||||||
Senior Notes | Convertible Notes due 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total principal amount | $ 1,210,000,000 | 1,207,500,000 | $ 0 | |||||||||
Interest rate on convertible notes (as a percent) | 0.25% | |||||||||||
Proceeds from issuance of convertible notes, net of issuance costs | $ 1,190,000,000 | |||||||||||
Conversion ratio | 600.42 | 0.0016655000 | ||||||||||
Recognized additional paid-in capital from cash conversion option | $ 289,400,000 | |||||||||||
Holder's repurchase price percentage in event of fundamental change (as a percent) | 100.00% | |||||||||||
Proportion of conversion price (as a percent) | 130.00% | |||||||||||
Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity of revolving credit agreement | $ 200,000,000 | $ 200,000,000 | ||||||||||
Option to increase revolving line of credit | $ 500,000,000 | |||||||||||
Value of unrestricted cash on hand threshold | $ 100,000,000 | |||||||||||
Line of Credit | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on convertible notes (as a percent) | 0.375% | |||||||||||
Unused capacity fee (as a percent) | 0.20% | |||||||||||
Line of Credit | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate on convertible notes (as a percent) | 1.00% | |||||||||||
Unused capacity fee (as a percent) | 0.30% | |||||||||||
Additional Paid-In Capital | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Equity component of convertible note issuance, net of issuance costs | $ 289,400,000 | 171,600,000 | ||||||||||
Additional Paid-In Capital | Senior Notes | Convertible Notes due 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Recognized additional paid-in capital from cash conversion option | $ 171,600,000 | |||||||||||
Additional Paid-In Capital | Senior Notes | Convertible Notes due 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Recognized additional paid-in capital from cash conversion option | $ 70,600,000 | |||||||||||
Common Stock | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repurchase and conversions of 2022 notes (in shares) | shares | 3,400,000 | |||||||||||
Common Stock | Senior Notes | Convertible Notes due 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repurchase and conversions of 2022 notes (in shares) | shares | 1,412,497 | |||||||||||
Debt Instrument Conversion Term One | Senior Notes | Convertible Notes due 2023 | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | d | 20 | |||||||||||
Proportion of applicable conversion price (as a percent) | 130.00% | |||||||||||
Debt Instrument Conversion Term One | Senior Notes | Convertible Notes due 2023 | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | d | 30 | |||||||||||
Debt Instrument Conversion Term One | Senior Notes | Convertible Notes due 2022 | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | d | 20 | |||||||||||
Proportion of applicable conversion price (as a percent) | 130.00% | |||||||||||
Debt Instrument Conversion Term One | Senior Notes | Convertible Notes due 2022 | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | d | 30 | |||||||||||
Debt Instrument Conversion Term One | Senior Notes | Convertible Notes due 2025 | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | trading_day | 20 | |||||||||||
Proportion of applicable conversion price (as a percent) | 130.00% | |||||||||||
Debt Instrument Conversion Term One | Senior Notes | Convertible Notes due 2025 | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | trading_day | 30 | |||||||||||
Debt Instrument Conversion Term Two | Senior Notes | Convertible Notes due 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | d | 5 | |||||||||||
Debt Instrument Conversion Term Two | Senior Notes | Convertible Notes due 2023 | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | d | 5 | |||||||||||
Proportion of applicable conversion price (as a percent) | 98.00% | |||||||||||
Debt Instrument Conversion Term Two | Senior Notes | Convertible Notes due 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | d | 5 | |||||||||||
Debt Instrument Conversion Term Two | Senior Notes | Convertible Notes due 2022 | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | d | 5 | |||||||||||
Proportion of applicable conversion price (as a percent) | 98.00% | |||||||||||
Debt Instrument Conversion Term Two | Senior Notes | Convertible Notes due 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | trading_day | 5 | |||||||||||
Debt Instrument Conversion Term Two | Senior Notes | Convertible Notes due 2025 | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of trading days | trading_day | 5 | |||||||||||
Proportion of applicable conversion price (as a percent) | 98.00% | |||||||||||
Designated as Hedging Instrument | Senior Notes | Convertible Notes due 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Stock issued upon conversion of senior notes (shares) | shares | 5,200,000 | |||||||||||
Equity component of convertible note issuance, net of issuance costs | $ 218,900,000 | |||||||||||
London Interbank Offered Rate (LIBOR) | Line of Credit | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (as a percent) | 1.375% | |||||||||||
London Interbank Offered Rate (LIBOR) | Line of Credit | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (as a percent) | 2.00% |
Debt - Availability and Outstan
Debt - Availability and Outstanding Borrowings under Credit Agreement (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 19, 2018 |
Line of Credit Facility [Line Items] | ||
Total available balance | $ 193.7 | |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit available | 200 | $ 200 |
Outstanding borrowings | 0 | |
Line of Credit | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Line of credit available | 10 | |
Outstanding letters of credit | $ 6.3 |
Leases And Other Commitments -
Leases And Other Commitments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2017 | |
Operating Leased Assets [Line Items] | |||||
Stockholders' equity | $ 1,826.5 | $ 882.6 | $ 663.3 | $ 419.4 | |
Operating lease right-of-use assets | 93.3 | 71.5 | $ 26.7 | ||
Finance lease right-of-use assets | 15.3 | ||||
Operating lease liability | 118.3 | 40.4 | |||
Finance lease liability | 62.8 | $ 15.9 | |||
Asset retirement obligations | 4.5 | 2.6 | |||
Rent expense | 12.5 | ||||
Amortization of operating lease right-of-use asset | 12.4 | 9.1 | |||
Purchase obligations | $ 335.6 | ||||
Term of purchase obligations | 1 year | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Operating Leased Assets [Line Items] | |||||
Stockholders' equity | 2.1 | ||||
Minimum | |||||
Operating Leased Assets [Line Items] | |||||
Renewal term | 3 years | ||||
Remaining lease terms | 1 year | ||||
Maximum | |||||
Operating Leased Assets [Line Items] | |||||
Renewal term | 5 years | ||||
Remaining lease terms | 20 years | ||||
Retained Earnings | |||||
Operating Leased Assets [Line Items] | |||||
Stockholders' equity | $ (202.1) | $ (695.7) | (798.9) | $ (671.8) | |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||
Operating Leased Assets [Line Items] | |||||
Stockholders' equity | 2.1 | ||||
Retained Earnings | Accounting Standards Update 2016-02 | Cumulative Effect, Period of Adoption, Adjustment | |||||
Operating Leased Assets [Line Items] | |||||
Stockholders' equity | $ (2.1) |
Leases And Other Commitments _2
Leases And Other Commitments - Maturity of Lease Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Operating Leases | |||
2020 | $ 21.2 | ||
2021 | 22.1 | ||
2022 | 22.4 | ||
2023 | 20.8 | ||
2024 | 20 | ||
Thereafter | 32 | ||
Total future lease cost | 138.5 | ||
Less: Imputed interest | (20.2) | ||
Present value of future payments | 118.3 | $ 40.4 | |
Less: Current portion | (16.5) | $ (13.6) | |
Long-term portion | 101.8 | $ 72.4 | |
Finance Leases | |||
2020 | 10.7 | ||
2021 | 4.2 | ||
2022 | 4.3 | ||
2023 | 4.5 | ||
2024 | 4.6 | ||
Thereafter | 68.7 | ||
Total future lease cost | 97 | ||
Less: Imputed interest | (34.2) | ||
Present value of future payments | 62.8 | $ 15.9 | |
Less: Current portion | (8.8) | ||
Long-term portion | 54 | ||
Minimum lease payments for leases not yet commenced | $ 16.3 |
Leases And Other Commitments _3
Leases And Other Commitments - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 2 | $ 1.1 |
Interest on lease liabilities | 1.9 | 0.8 |
Operating lease cost | 18.4 | 12.2 |
Short-term lease cost | 1.3 | 3.5 |
Variable lease cost | 4.2 | 3.9 |
Total lease cost | $ 27.8 | $ 21.5 |
Leases And Other Commitments _4
Leases And Other Commitments - Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 18.3 | $ 14.3 |
Operating cash flows from finance leases | 0.7 | 0.8 |
Financing cash flows from finance leases | 8.5 | 0.5 |
Right-of-use assets obtained in exchange for operating lease liabilities | 33.5 | 80.6 |
Right-of-use assets obtained in exchange for finance lease liabilities | $ 41.7 | $ 15.5 |
Weighted average remaining lease term of operating leases | 6 years 1 month 6 days | 6 years 2 months 12 days |
Weighted average remaining lease term of finance leases | 23 years 3 months 18 days | 13 years 3 months 18 days |
Weighted average discount rate of operating leases (as a percent) | 500.00% | 500.00% |
Weighted average discount rate of finance leases (as a percent) | 520.00% | 500.00% |
Income Taxes - Jurisdictions, N
Income Taxes - Jurisdictions, Net Income (Loss) Subject to Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 270.7 | $ 119.1 | $ (28.3) |
Outside of the United States | (45.7) | (14.9) | (98.2) |
Total | $ 225 | $ 104.2 | $ (126.5) |
Income Taxes - Components of Pr
Income Taxes - Components of Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 6.1 | 1 | 2.7 |
Foreign | 2.6 | 1.9 | 0.1 |
Total current income taxes | 8.7 | 2.9 | 2.8 |
Deferred: | |||
Federal | (198.8) | 0 | (1.7) |
State | (51.4) | 0 | (0.5) |
Foreign | (27.1) | 0.2 | 0 |
Total deferred income taxes | (277.3) | 0.2 | (2.2) |
Income taxes at effective rates | $ (268.6) | $ 3.1 | $ 0.6 |
Income Taxes - Significant Loss
Income Taxes - Significant Loss and Tax Credit Carryforwards and Years of Expiration (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Loss | $ 169.1 | $ 438.8 |
Tax Credits | 73.1 | 54.4 |
State | California | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Loss | 236.3 | 235.3 |
Tax Credits | 66.2 | 52.7 |
State | Other States | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Loss | 36.1 | 88.8 |
Foreign | UK | ||
Operating Loss Carryforwards [Line Items] | ||
Net Operating Loss | $ 113.2 | $ 124.1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Jun. 22, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | ||||
Research and development tax credits utilized | $ 2.4 | |||
Tax credit carryforwards subject to expiration | 1.9 | |||
Release of valuation allowance | 287.2 | |||
Valuation allowance amount | 55.5 | $ 332.2 | ||
Additional stock-based compensation expense | $ 32 | |||
Unrecognized tax benefits that would impact effective tax rate | $ 23.5 | $ 0 | $ 0 | |
Possible extension period of tax holiday | 3 years | |||
Undistributed foreign earnings | $ 1.4 | |||
California and Foreign | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance amount | 55.5 | |||
Additional Paid-In Capital | ||||
Operating Loss Carryforwards [Line Items] | ||||
Release of valuation allowance | 1.7 | |||
Income Tax Expense (Benefit) | ||||
Operating Loss Carryforwards [Line Items] | ||||
Release of valuation allowance | 285.5 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Decrease in foreign taxes from tax holiday | $ 0.1 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 69.2 | $ 127.4 |
Capitalized research and development expenses | 53.6 | 57.1 |
Tax credits | 101.1 | 78.6 |
Share-based compensation | 13 | 10.9 |
Fixed and intangible assets | 16.9 | 14 |
Accrued liabilities and reserves | 110.3 | 62 |
Convertible debt | 0 | 1.7 |
Total gross deferred tax assets | 364.1 | 351.7 |
Less: valuation allowance | (55.5) | (332.2) |
Total net deferred tax assets | 308.6 | 19.5 |
Deferred tax liabilities: | ||
Fixed assets and acquired intangibles assets | (36.3) | (19.6) |
Convertible debt discount | (55.9) | 0 |
Total deferred tax liabilities | (92.2) | (19.6) |
Net deferred tax assets (liabilities) | $ 216.4 | |
Net deferred tax assets (liabilities) | $ (0.1) |
Income Taxes - Reconciliation b
Income Taxes - Reconciliation between Effective Tax Rate and Statutory Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
U.S. federal statutory tax rate | $ 47.3 | $ 21.9 | $ (26.6) |
State income tax, net of federal benefit | 3.2 | (2.3) | (5.5) |
Permanent items | 13.1 | 1 | 1.3 |
Research and development credits | (24.4) | (10.8) | (11.7) |
Foreign rate differential | (0.1) | 5.6 | 3.7 |
Stock and officers compensation | (28.7) | (14.7) | (5.1) |
Change in statutory tax rates | (4.1) | 0 | 0 |
Impact of adoption of ASU 2016-16 | 0 | 0 | (13.3) |
Impact of Tax Cuts and Jobs Act of 2017 | 0 | 0 | (0.4) |
Other | 0.1 | (1) | 1.3 |
Change in valuation allowance | (275) | 3.4 | 56.9 |
Income taxes at effective rates | $ (268.6) | $ 3.1 | $ 0.6 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of period | $ 29.5 | $ 25.9 | $ 22.8 |
Decreases related to prior year tax positions | (0.9) | (0.9) | (0.3) |
Increases related to current year tax positions | 8 | 4.5 | 3.4 |
Decrease related to Tax Cuts and Jobs Act of 2017 | 0 | ||
Balance at end of period | $ 36.6 | $ 29.5 | $ 25.9 |
Employee Benefit Plans and St_3
Employee Benefit Plans and Stockholders' Equity - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock authorized in ESPP (shares) | 1,500,000 | |||
Maximum payroll deductions (as a percent) | 10.00% | |||
Employee purchase price floor (as a percent) | 85.00% | |||
Stock reserved for issuance (shares) | 9,800,000 | |||
Purchases of treasury stock (shares) | 0 | 0 | 800,000 | |
Options in-the-money (shares) | 0 | |||
Unrecognized compensation costs related to unvested restricted stock units | $ 147.6 | |||
401(k) Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum employee contribution (as a percent) | 75.00% | |||
Employer matching contribution (as a percent) | 50.00% | |||
Employee contribution (as a percent) | 5.00% | |||
Total matching contributions | $ 6.7 | $ 4.8 | ||
Employee Stock Purchase Plan 2015 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of common stock for Employee Stock Purchase Plan (shares) | 89,194 | 150,408 | 189,904 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of RSUs vested | $ 331.8 | $ 207.2 | $ 120.9 | |
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years |
Employee Benefit Plans and St_4
Employee Benefit Plans and Stockholders' Equity - Intrinsic Value of Options Exercised and Fair Value of Options Vested (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Intrinsic value of options exercised | $ 7.9 | $ 7.4 | $ 30 |
Employee Benefit Plans and St_5
Employee Benefit Plans and Stockholders' Equity - Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares | |||
Nonvested at beginning of period (shares) | 1.8 | ||
Nonvested at end of period (shares) | 1.2 | 1.8 | |
Restricted stock units | |||
Shares | |||
Nonvested at beginning of period (shares) | 1.8 | 2.7 | 2.7 |
Granted (shares) | 0.5 | 0.7 | 1.7 |
Vested (shares) | (1) | (1.4) | (1.4) |
Forfeited (shares) | (0.1) | (0.2) | (0.3) |
Nonvested at end of period (shares) | 1.2 | 1.8 | 2.7 |
Weighted Average Grant Date Fair Value | |||
Nonvested at beginning of period (USD per share) | $ 96.63 | $ 69.19 | $ 70.68 |
Granted (USD per share) | 300.36 | 144.37 | 66.07 |
Vested (USD per share) | 92.07 | 69.45 | 68.44 |
Forfeited (USD per share) | 137.44 | 83.45 | 68.56 |
Nonvested at end of period (USD per share) | $ 183.51 | $ 96.63 | $ 69.19 |
Aggregate Intrinsic Value | $ 430.6 | $ 392 | $ 319 |
Employee Benefit Plans and St_6
Employee Benefit Plans and Stockholders' Equity - Stock Options Reserved for Future Issuance (Details) - shares shares in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Share-based Payment Arrangement [Abstract] | ||
Unvested restricted stock units (shares) | 1.2 | 1.8 |
Reserved for future grant (shares) | 4.5 | 4.9 |
Employee Stock Purchase Plan (shares) | 0.8 | 0.9 |
Total (shares) | 6.5 | 7.6 |
Employee Benefit Plans and St_7
Employee Benefit Plans and Stockholders' Equity - Share-based Compensation Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | $ 119.4 | $ 102.7 | $ 101.9 |
Cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | 14.6 | 9 | 9.2 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | 37.8 | 33.5 | 33 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense included in operating expenses | $ 67 | $ 60.2 | $ 59.7 |
Employee Benefit Plans and St_8
Employee Benefit Plans and Stockholders' Equity - Valuation Assumptions for Each Option Grant and Employee Stock Purchase Plan Purchase Rights (Details) - Employee Stock Purchase Plan | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% | |
Expected life (in years) | 1 year | 6 months | 1 year | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk free interest rate (as a percent) | 13.00% | 172.00% | 155.00% | |
Expected volatility of common stock (as a percent) | 51.00% | 40.00% | 50.00% | |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk free interest rate (as a percent) | 95.00% | 255.00% | 225.00% | |
Expected volatility of common stock (as a percent) | 63.00% | 51.00% | 67.00% |
Business Segment and Geograph_3
Business Segment and Geographic Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
Business Segment and Geograph_4
Business Segment and Geographic Information - Summary (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Amount | $ 1,926.7 | $ 1,476 | $ 1,031.6 |
% of Total | 100.00% | 100.00% | 100.00% |
Distributor | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 1,437.6 | $ 1,011.6 | $ 652.9 |
% of Total | 75.00% | 69.00% | 63.00% |
Direct | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 489.1 | $ 464.4 | $ 378.7 |
% of Total | 25.00% | 31.00% | 37.00% |
United States | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 1,509.5 | $ 1,161.5 | $ 818.4 |
% of Total | 78.00% | 79.00% | 79.00% |
Outside of the United States | |||
Segment Reporting Information [Line Items] | |||
Amount | $ 417.2 | $ 314.5 | $ 213.2 |
% of Total | 22.00% | 21.00% | 21.00% |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 5.8 | $ 7.2 | $ 11.4 |
Provision for doubtful accounts | 3.2 | 0.9 | 3.6 |
Write-offs and adjustments | (2.1) | (3) | (8.3) |
Recoveries | 0.3 | 0.7 | 0.5 |
Balance at end of period | $ 7.2 | $ 5.8 | $ 7.2 |
Uncategorized Items - dxcm-2020
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 100,000 |
Restricted Cash | us-gaap_RestrictedCash | 600,000 |
Restricted Cash | us-gaap_RestrictedCash | $ 200,000 |