Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-33462 | |
Entity Registrant Name | INSULET CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3523891 | |
Entity Address, Address Line One | 100 Nagog Park | |
Entity Address, City or Town | Acton | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01720 | |
City Area Code | 978 | |
Local Phone Number | 600-7000 | |
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 | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.001 Par Value Per Share | |
Trading Symbol | PODD | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 68,873,869 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001145197 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 854.6 | $ 907.2 |
Short-term investments | 17.5 | 40.4 |
Accounts receivable trade, less allowance for credit losses of $3.7 and $2.9 (Note 16) | 100.3 | 83.8 |
Inventories | 197.8 | 154.3 |
Prepaid expenses and other current assets | 82.7 | 63 |
Total current assets | 1,252.9 | 1,248.7 |
Property, plant and equipment, net | 505.5 | 478.7 |
Other intangible assets, net | 33.4 | 28.7 |
Goodwill | 39.9 | 39.8 |
Other assets | 92 | 77 |
Total assets | 1,923.7 | 1,872.9 |
Current Liabilities | ||
Accounts payable | 49.3 | 54.1 |
Accrued expenses and other current liabilities | 143.1 | 138.1 |
Current portion of long-term debt | 20.9 | 15.6 |
Total current liabilities | 213.3 | 207.8 |
Total long-term debt | 1,235.2 | 1,043.7 |
Other liabilities | 16.1 | 17.8 |
Total liabilities | 1,464.6 | 1,269.3 |
Commitments and contingencies (Note 10) | ||
Stockholders’ Equity | ||
Preferred stock, $.001 par value, 5,000,000 authorized; none issued and outstanding | 0 | 0 |
Common stock, $.001 par value, 100,000,000 authorized; 68,610,078 and 66,017,444 issued and outstanding | 0.1 | 0.1 |
Additional paid-in capital | 1,149.6 | 1,264.3 |
Accumulated deficit | (691.3) | (666.3) |
Accumulated other comprehensive income | 0.7 | 5.5 |
Total stockholders’ equity | 459.1 | 603.6 |
Total liabilities and stockholders’ equity | $ 1,923.7 | $ 1,872.9 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3.7 | $ 2.9 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 68,610,078 | 66,017,444 |
Common stock, outstanding (in shares) | 68,610,078 | 66,017,444 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue (Related Party Transactions Note 16) | $ 263.2 | $ 226.3 | $ 515.5 | $ 424.3 |
Cost of Goods and Services Sold | 80.5 | 83.8 | 165.3 | 154.9 |
Gross profit | 182.7 | 142.5 | 350.2 | 269.4 |
Operating expenses: | ||||
Research and development expenses | 40.1 | 34.2 | 80.8 | 69.7 |
Selling, general and administrative expenses | 116.3 | 80.8 | 226.8 | 164.7 |
Operating income | 26.3 | 27.5 | 42.6 | 35 |
Interest expense, net | (16.4) | (11.1) | (29.8) | (21.2) |
Loss on extinguishment of debt | (40.1) | 0 | (40.1) | 0 |
Other income (expense), net | 1.8 | 1 | (0.8) | 1 |
(Loss) income before income taxes | (28.4) | 17.4 | (28.1) | 14.8 |
Income tax benefit (expense) | 3.4 | (3) | 3.1 | (2.5) |
Net (loss) income | $ (25) | $ 14.4 | $ (25) | $ 12.3 |
Net (loss) income per share: | ||||
Basic (in dollars per share) | $ (0.37) | $ 0.22 | $ (0.38) | $ 0.19 |
Diluted (in dollars per share) | $ (0.37) | $ 0.22 | $ (0.38) | $ 0.19 |
Weighted-average number of common shares outstanding (in thousands): | ||||
Basic (in shares) | 66,696 | 64,371 | 66,406 | 63,627 |
Diluted (in shares) | 66,696 | 65,579 | 66,406 | 64,970 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (25) | $ 14.4 | $ (25) | $ 12.3 |
Other comprehensive (Loss) income, net of tax: | ||||
Foreign currency translation adjustment | (1.8) | 0.6 | (3.9) | (2.8) |
Unrealized loss on cash flow hedges | (0.6) | 0 | (0.6) | 0 |
Unrealized gain (loss) on available-for-sale debt securities, net of tax | (0.1) | (0.4) | (0.3) | 0.4 |
Other comprehensive loss | (2.5) | 0.2 | (4.8) | (2.4) |
Comprehensive (loss) income | $ (27.5) | $ 14.6 | $ (29.8) | $ 9.9 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Millions | Total | Convertible Senior Notes, 1.375% | Cumulative Effect, Period of Adoption, Adjustment | [1] | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | [1] | Accumulated Other Comprehensive Income |
Beginning balance (in shares) at Dec. 31, 2019 | 62,685,000 | |||||||||
Beginning balance at Dec. 31, 2019 | $ 75.9 | $ (1.1) | $ 0.1 | $ 749 | $ (672) | $ (1.1) | $ (1.2) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock (in shares) | 2,370,000 | |||||||||
Issuance of common stock | 477.5 | 477.5 | ||||||||
Exercise of options to purchase common stock (in shares) | 304,000 | |||||||||
Exercise of options to purchase common stock | 11.3 | 11.3 | ||||||||
Issuance of shares for employee stock purchase plan (in shares) | 19,000 | |||||||||
Issuance of shares for employee stock purchase plan | 2.9 | 2.9 | ||||||||
Stock-based compensation expense | 13.7 | 13.7 | ||||||||
Restricted stock units vested, net of shares withheld for taxes (in shares) | 226,000 | |||||||||
Restricted stock units vested, net of shares withheld for taxes | (26.8) | (26.8) | ||||||||
Net (loss) income | 12.3 | 12.3 | ||||||||
Other comprehensive income (loss) | (2.4) | (2.4) | ||||||||
Ending balance (in shares) at Jun. 30, 2020 | 65,604,000 | |||||||||
Ending balance at Jun. 30, 2020 | 563.3 | $ 0.1 | 1,227.6 | (660.8) | (3.6) | |||||
Beginning balance (in shares) at Mar. 31, 2020 | 63,058,000 | |||||||||
Beginning balance at Mar. 31, 2020 | 59 | $ 0.1 | 737.9 | (675.2) | (3.8) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock (in shares) | 2,370,000 | |||||||||
Issuance of common stock | 477.5 | 477.5 | ||||||||
Exercise of options to purchase common stock (in shares) | 131,000 | |||||||||
Exercise of options to purchase common stock | 5.1 | 5.1 | ||||||||
Issuance of shares for employee stock purchase plan (in shares) | 19,000 | |||||||||
Issuance of shares for employee stock purchase plan | 2.9 | 2.9 | ||||||||
Stock-based compensation expense | 5.8 | 5.8 | ||||||||
Restricted stock units vested, net of shares withheld for taxes (in shares) | 26,000 | |||||||||
Restricted stock units vested, net of shares withheld for taxes | (1.6) | (1.6) | ||||||||
Net (loss) income | 14.4 | 14.4 | ||||||||
Other comprehensive income (loss) | 0.2 | 0.2 | ||||||||
Ending balance (in shares) at Jun. 30, 2020 | 65,604,000 | |||||||||
Ending balance at Jun. 30, 2020 | $ 563.3 | $ 0.1 | 1,227.6 | (660.8) | (3.6) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Debt, interest rate | 1.375% | |||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 66,017,444 | 66,017,000 | ||||||||
Beginning balance at Dec. 31, 2020 | $ 603.6 | $ 0.1 | 1,264.3 | (666.3) | 5.5 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exercise of options to purchase common stock (in shares) | 164,000 | |||||||||
Exercise of options to purchase common stock | 6.2 | 6.2 | ||||||||
Issuance of shares for employee stock purchase plan (in shares) | 17,000 | |||||||||
Issuance of shares for employee stock purchase plan | 3.8 | 3.8 | ||||||||
Stock-based compensation expense | 17.6 | 17.6 | ||||||||
Restricted stock units vested, net of shares withheld for taxes (in shares) | 170,000 | |||||||||
Restricted stock units vested, net of shares withheld for taxes | (27.3) | (27.3) | ||||||||
Extinguishment of conversion feature, net of issuance costs | (737.7) | (737.7) | ||||||||
Issuance of shares for debt repayment (in shares) | 2,242,000 | |||||||||
Issuance of shares for debt repayment | 622.7 | 622.7 | ||||||||
Net (loss) income | (25) | (25) | ||||||||
Other comprehensive income (loss) | $ (4.8) | (4.8) | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 68,610,078 | 68,610,000 | ||||||||
Ending balance at Jun. 30, 2021 | $ 459.1 | $ 0.1 | 1,149.6 | (691.3) | 0.7 | |||||
Beginning balance (in shares) at Mar. 31, 2021 | 66,213,000 | |||||||||
Beginning balance at Mar. 31, 2021 | 585.3 | $ 0.1 | 1,248.3 | (666.3) | 3.2 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exercise of options to purchase common stock (in shares) | 121,000 | |||||||||
Exercise of options to purchase common stock | 4.7 | 4.7 | ||||||||
Issuance of shares for employee stock purchase plan (in shares) | 17,000 | |||||||||
Issuance of shares for employee stock purchase plan | 3.8 | 3.8 | ||||||||
Stock-based compensation expense | 9 | 9 | ||||||||
Restricted stock units vested, net of shares withheld for taxes (in shares) | 17,000 | |||||||||
Restricted stock units vested, net of shares withheld for taxes | (1.2) | (1.2) | ||||||||
Extinguishment of conversion feature, net of issuance costs | (737.7) | (737.7) | ||||||||
Issuance of shares for debt repayment (in shares) | 2,242,000 | |||||||||
Issuance of shares for debt repayment | 622.7 | 622.7 | 0 | |||||||
Net (loss) income | (25) | (25) | ||||||||
Other comprehensive income (loss) | $ (2.5) | (2.5) | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 68,610,078 | 68,610,000 | ||||||||
Ending balance at Jun. 30, 2021 | $ 459.1 | $ 0.1 | $ 1,149.6 | $ (691.3) | $ 0.7 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Debt, interest rate | 1.375% | |||||||||
[1] | The Company recorded a cumulative effect adjustment to retained earnings to reflect the adoption of Accounting Standards Update 2016-13, Credit Losses (Topic 326) . Refer to Note 2 of Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2020. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net (loss) income | $ (25) | $ 12.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 28 | 18.8 |
Non-cash interest expense | 23.5 | 22.3 |
Stock-based compensation expense | 17.6 | 13.7 |
Loss on extinguishment of debt | 40.1 | 0 |
Provision for credit losses | 2.1 | 2.6 |
Other | 1.1 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (19.5) | (13.8) |
Inventories | (45) | (2.8) |
Prepaid expenses and other assets | (30) | (14) |
Accounts payable | (4.4) | (9.8) |
Accrued expenses and other liabilities | (5.3) | (6.5) |
Net cash (used in) provided by operating activities | (16.8) | 22.8 |
Cash flows from investing activities | ||
Capital expenditures | (52.8) | (51.7) |
Acquisition of intangible assets | (3.8) | (0.5) |
Purchases of investments | 0 | (37.9) |
Receipts from the maturity or sale of investments | 22.5 | 170.7 |
Net cash provided by (used in) investing activities | (34.1) | 80.6 |
Cash flows from financing activities | ||
Proceeds from issuance of debt, net | 489.5 | 0 |
Payment of debt issuance costs | (4) | 0 |
Repayment of convertible debt | (460.8) | 0 |
Repayment of equipment financings | (6.4) | 0 |
Repayment of mortgage | (1) | 0 |
Proceeds from issuance of common stock, net of issuance costs | 0 | 477.5 |
Proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan | 10 | 14.2 |
Payment of withholding taxes in connection with vesting of restricted stock units | (27.3) | (26.8) |
Net cash (used in) provided by financing activities | 0 | 464.9 |
Effect of exchange rate changes on cash | (1.7) | (2.9) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (52.6) | 565.4 |
Cash, cash equivalents and restricted cash at beginning of period (Note 3) | 922 | 213.7 |
Cash, cash equivalents and restricted cash at end of period (Note 3) | 869.4 | 779.1 |
Supplemental noncash information: | ||
Purchases of property and equipment included in accounts payable and accrued expenses | 5.6 | 4.5 |
Purchases of intangible assets included in accounts payable and accrued expenses | $ 3.5 | $ 0 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying financial statements reflect the consolidated operations of Insulet Corporation and its subsidiaries (“Insulet” or the “Company”). The unaudited consolidated financial statements have been prepared in United States dollars, in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results may differ from those estimates. In management’s opinion, the unaudited consolidated financial statements contain all normal recurring adjustments necessary for a fair statement of the interim results reported. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021, or for any other subsequent interim period. The year-end balance sheet data was derived from audited consolidated financial statements. These unaudited consolidated financial statements do not include all of the annual disclosures required by GAAP; accordingly, they should be read in conjunction with the Company’s audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Cloud Computing Arrangements As of June 30, 2021 and December 31, 2020, the Company had net capitalized implementation costs of $44.5 million and $24.2 million, respectively. Amortization expense recorded for the three months ended June 30, 2021 and 2020 was $0.8 million and $0.2 million, respectively, and $1.3 million and $0.5 million for the six months ended June 30, 2021 and 2020, respectively. Shipping and Handling Costs Shipping and handling costs are included in selling, general and administrative expenses and were $2.6 million and $1.9 million for the three months ended June 30, 2021 and 2020, respectively, and were $4.7 million and $3.8 million for the six months ended June 30, 2021 and 2020, respectively. Derivative Instruments The Company is exposed to certain risks relating to its business operations. Risks that relate to interest rate exposure are managed by using interest rate swaps. The Company recognizes derivative instruments as either assets or liabilities at fair value on the consolidated balance sheet. Changes in a derivative financial instrument’s fair value are recognized in earnings unless specific hedge criteria are met, in which case changes in fair value are recognized as adjustments to other comprehensive income. The Company has designated its interest rate swap contracts as cash flow hedges. Fair Value Measurements Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. To measure fair value of assets and liabilities, the Company uses the following fair value hierarchy based on three levels of inputs: Level 1—observable inputs, such as quoted prices in active markets for identical assets or liabilities; Level 2—significant other observable inputs that are observable either directly or indirectly; and Level 3—significant unobservable inputs for which there are little or no market data, which require the Company to develop its own assumptions. Certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other liabilities are carried at cost, which approximates their fair value because of their short-term maturity. See Notes 3 and 8 for financial assets and liabilities held at carrying amount on the consolidated balance sheet and Note 4 for investments measured at fair value on a recurring basis. Advertising Costs The Company expenses advertising costs as they are incurred. Advertising expenses were $12.0 million and $2.9 million for the three months ended June 30, 2021 and 2020, respectively, and were $21.4 million and $5.6 million for the six months ended June 30, 2021 and 2020, respectively. Recently Adopted Accounting Standards Effective January 1, 2021, the Company adopted Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 eliminates certain exceptions in the current guidance regarding the approach for intraperiod tax allocations, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The adoption of this guidance did not have a significant impact on our consolidated financial statements. |
Revenue and Contract Acquisitio
Revenue and Contract Acquisition Costs | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Contract Acquisition Costs | Revenue and Contract Acquisition Costs The following table summarizes the Company’s disaggregated revenue: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 U.S. Omnipod $ 150.5 $ 128.8 $ 293.8 $ 245.4 International Omnipod 91.6 73.2 181.5 146.3 Total Omnipod 242.1 202.0 475.3 391.7 Drug Delivery 21.1 24.3 40.2 32.6 Total revenue $ 263.2 $ 226.3 $ 515.5 $ 424.3 During the three and six months ended June 30, 2021 , the Company had two customers that in aggregate represented 26% and 25% of total revenue, respectively. During both the three and six months ended June 30, 2020 , the Company had two customers that in aggregate represented 21% of total revenue. At June 30, 2021, the Company had two customers that in aggregate accounted for 26% of consolidated net accounts receivable, compared with one customer that accounted for 15% of consolidated net accounts receivable at December 31, 2020. Deferred revenue related to unsatisfied performance obligations was included in the following consolidated balance sheet accounts in the amounts shown: (in millions) June 30, 2021 December 31, 2020 Accrued expenses and other current liabilities $ 3.2 $ 5.4 Other liabilities 1.4 1.0 Total deferred revenue $ 4.6 $ 6.4 During the three months ended June 30, 2021 and 2020, the Company recognized $0.2 million and $0.1 million of revenue, respectively, that was included in deferred revenue at the beginning of each period. During the six months ended June 30, 2021 and 2020, the Company recognized $3.9 million and $1.6 million of revenue, respectively, that was included in deferred revenue at the beginning of each period. Contract acquisition costs, representing capitalized commission costs related to new customers, net of amortization, were included in the following consolidated balance sheet captions in the amounts shown: (in millions) June 30, 2021 December 31, 2020 Prepaid expenses and other current assets $ 12.3 $ 11.0 Other assets 24.4 21.9 Total capitalized contract acquisition costs, net $ 36.7 $ 32.9 The Company recognized $3.0 million and $2.6 million of amortization of capitalized contract acquisition costs during the three months ended June 30, 2021 and 2020, respectively. The Company recognized $6.0 million and $5.1 million of amortization of capitalized contract acquisition costs during the six months ended June 30, 2021 and 2020, respectively. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents The following table provides a summary of cash and cash equivalents: (in millions) June 30, 2021 December 31, 2020 Cash $ 238.9 $ 164.6 Money market mutual funds 612.9 739.8 Restricted cash 2.8 2.8 Total cash and cash equivalents 854.6 907.2 Restricted cash included in other assets 14.8 14.8 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 869.4 $ 922.0 The restricted cash included in other assets on the consolidated balance sheet is held as a compensating balance against long-term borrowings. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The Company’s investments in debt securities had maturity dates that range from one month to six months at June 30, 2021 . Realized gains or losses for both the three and six months ended June 30, 2021 and 2020 were insignificant. The following table provides amortized costs, gross unrealized gains and losses, fair values and the level in the fair value hierarchy for the Company’s investments: (in millions) Amortized Cost Gross Unrealized Gains Fair Value Level 1 Level 2 (1) June 30, 2021 U.S. government and agency bonds $ 15.0 $ — $ 15.0 $ 15.0 $ — Corporate bonds 2.0 — 2.0 — 2.0 Certificates of deposit 0.5 — 0.5 — 0.5 Total short-term investments $ 17.5 $ — $ 17.5 $ 15.0 $ 2.5 December 31, 2020 U.S. government and agency bonds $ 35.1 $ 0.2 $ 35.3 $ 35.3 $ — Corporate bonds 2.8 0.1 2.9 — 2.9 Certificates of deposit 2.2 — 2.2 — 2.2 Total short-term investments $ 40.1 $ 0.3 $ 40.4 $ 35.3 $ 5.1 (1) Fair value was determined using market prices obtained from third-party pricing sources. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories At the end of each period, inventories were comprised of the following: (in millions) June 30, 2021 December 31, 2020 Raw materials $ 45.7 $ 30.7 Work-in-process 40.1 59.6 Finished goods 112.0 64.0 Total inventories $ 197.8 $ 154.3 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net The change in the carrying amount of goodwill for the six months ended June 30, 2021 was as follows: (in millions) Goodwill at December 31, 2020 $ 39.8 Foreign currency translation 0.1 Goodwill at June 30, 2021 $ 39.9 The gross carrying amount, accumulated amortization and net book value of intangible assets at the end of each period were as follows: June 30, 2021 December 31, 2020 (in millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 43.4 $ (20.9) $ 22.5 $ 43.3 $ (18.3) $ 25.0 Internal-use software 19.0 (9.5) 9.5 11.4 (8.6) 2.8 Intellectual property 1.6 (0.2) 1.4 1.1 (0.2) 0.9 Total intangible assets $ 64.0 $ (30.6) $ 33.4 $ 55.8 $ (27.1) $ 28.7 Amortization expense for intangible assets was $1.8 million and $0.7 million for the three months ended June 30, 2021 and 2020, respectively. Amortization expense for intangible assets was $3.5 million and $1.5 million for the six months ended June 30, 2021 and 2020, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities The components of accrued expenses and other current liabilities were as follows: (in millions) June 30, 2021 December 31, 2020 Employee compensation and related costs $ 49.3 $ 53.1 Professional and consulting services 22.9 19.1 Accrued rebates 20.6 13.1 Supplier purchases 4.5 7.1 Value added taxes payable 2.9 5.0 Income taxes payable 2.1 5.0 Accrued interest 1.2 1.8 Other 39.6 33.9 Accrued expenses and other current liabilities $ 143.1 $ 138.1 Product Warranty Costs The Company provides a four-year warranty on Personal Diabetes Managers (“PDMs”) sold in the United States and Europe and a five-year warranty on PDMs sold in Canada and may replace Pods that do not function in accordance with product specifications. The Company estimates its warranty obligation at the time the product is shipped based on historical experience and the estimated cost to service the claims. Since the Company continues to introduce new products and versions, the anticipated performance of the product over the warranty period is also considered in estimating warranty reserves. Warranty expense is recorded in cost of revenue in the consolidated statements of operations. Cost to service the claims reflects the current product cost. Reconciliations of the changes in the Company’s product warranty liability were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Product warranty liability at beginning of period $ 6.7 $ 8.3 $ 6.7 $ 8.5 Warranty expense 2.3 2.7 4.9 5.2 Warranty claims settled (2.5) (2.9) (5.1) (5.6) Product warranty liability at the end of period $ 6.5 $ 8.1 $ 6.5 $ 8.1 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The components of debt consisted of the following: (in millions) June 30, 2021 December 31, 2020 1.375% Convertible Senior Notes due November 2024 $ 32.1 $ 402.5 0.375% Convertible Senior Notes due September 2026 800.0 800.0 Term loan due May 2028 500.0 — Equipment financing due May 2024 19.2 22.2 Equipment financing due November 2025 33.0 36.4 5.15% Mortgage due November 2025 68.7 69.7 Unamortized debt discount (179.9) (252.5) Debt issuance costs (17.0) (19.0) Total debt 1,256.1 1,059.3 Less: current portion 20.9 15.6 Total long-term debt $ 1,235.2 $ 1,043.7 1.375% Convertible Senior Notes During the three months ended June 30, 2021, the Company repurchased $370.4 million in principal ($305.7 million net of discount and issuance costs) of its 1.375% Convertible Senior Notes due November 2024 (“1.375% Notes”) for $460.8 million in cash and the issuance of 2.2 million shares with a fair value of $622.7 million. The debt repurchase resulted in a $40.1 million loss on extinguishment, including cash paid to the note holders as an inducement to convert and transaction costs. Senior Secured Credit Agreement In May 2021, the Company entered into a senior secured credit agreement (the “Credit Agreement”), which includes a $500 million seven year senior secured term loan B (the “Term Loan”) for net proceeds of $489.5 million, which was used to fund the cash portion of the repurchase of the 1.375% Notes discussed above. The Term Loan bears interest at a rate of LIBOR plus 3.25%, with a 0.50% LIBOR floor, and contains leverage and fixed charge coverage ratio covenants, both of which are measured upon the occurrence of future debt. In addition, the Term Loan contains other customary covenants, none of which are considered restrictive to the Company’s operations. Under the same agreement, the Company obtained a $60 million three year senior secured revolving credit facility (the “Revolving Credit Facility”), which bears interest at a rate of LIBOR plus an applicable margin of 2.75% to 3.25% based on the Company’s net leverage ratio. The Revolving Credit Facility contains a covenant to maintain a certain leverage ratio when there are amounts outstanding, in addition to other customary covenants, none of which are considered restrictive to the Company’s operations. No amount was outstanding under the Revolving Credit Facility at June 30, 2021. Borrowings under the Credit Agreement are guaranteed by the Company’s wholly owned domestic subsidiaries, and are secured by substantially all assets of the Company and of each subsidiary guarantor, subject to certain exceptions. Additionally, borrowings under the Credit Agreement are senior to all of the Company’s unsecured indebtedness, including the convertible notes. Fair Value of Debt The carrying amount and the estimated fair value of the Company’s debt were as follows: June 30, 2021 December 31, 2020 (in millions) Carrying Estimated Carrying Estimated Fair Value (1) 1.375% Convertible Senior Notes due November 2024 (1) $ 26.6 $ 95.8 $ 323.9 $ 1,104.2 0.375% Convertible Senior Notes due September 2026 (1) 623.8 980.9 609.2 902.0 Term loan due May 2028 (2) 486.7 $ 500.6 $ — $ — Total $ 1,137.1 $ 1,577.3 $ 933.1 $ 2,006.2 (1) Convertible debt is classified as Level 2 in the fair value hierarchy. Fair value was determined using the Company’s quoted stock price and the contractual conversion rate. (2) Term debt is classified as Level 1 in the fair value hierarchy. Fair value was determined using quoted market prices. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company manages interest rate exposure through the use of interest rate swap transactions with financial institutions acting as principal counterparties. In May 2021, the Company entered into two interest rate swap agreements that expire on April 30, 2025. Under the interest rate swap agreements, the Company receives variable rate interest payments and pays fixed interest rates on a total notional value of $480 million of its Term Loan. As a result of the interest rate swaps 96% of the Term Loan exposed to interest rate risk from changes in LIBOR is fixed at a rate of 4.20%. The Company has designated the interest rate swaps as cash flow hedges. The fair value of interest rate swaps, which are classified as Level 2 in the fair value hierarchy, represent the estimated amounts the Company would receive or pay to terminate the contracts and is determined using industry standard valuation models and market-based observable inputs, including credit risk and interest rate yield curves. At June 30, 2021, the fair value of the interest rate swaps was a liability of $0.7 million. |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings Between May 5, 2015 and June 16, 2015, three class action lawsuits were filed by shareholders in the U.S. District Court, for the District of Massachusetts, against the Company and certain then current and former executives of the Company. Two suits subsequently were voluntarily dismissed. Arkansas Teacher Retirement System v. Insulet, et al., 1:15-cv-12345, alleged that the Company (and certain then current and former executives) committed violations of Sections 10(b) and 20(a) and Rule 10b-5 of the Securities Exchange Act of 1934 by making allegedly false and misleading statements about the Company’s business, operations and prospects. On February 8, 2018, the parties executed a binding stipulation of settlement, under which all claims were released, and a payment was made into an escrow account for the plaintiffs and the class they purport to represent. On August 6, 2018, the Court issued an order approving the settlement. On June 25, 2021, the Court issued an order on the plaintiffs’ motion for fees and expenses, a final judgement approving the settlement, and an order of dismissal with prejudice. The Company had previously accrued fees and expenses in connection with this matter for the amount of the final settlement liability that was not covered by insurance, the amount of which was not material to the Company’s consolidated financial statements. In addition, on April 26, 2017, a derivative action (Walker v. DeSisto, et al., 1:17-cv-10738) was filed, and on October 13, 2017, a second derivative action (Carnazza v. DeSisto, et al., 1:17-cv-11977) was filed, both on behalf of the Company, each by a shareholder in the U.S. District Court for the District of Massachusetts against the Company (as a nominal defendant) and certain individual then current and former officers and directors of the Company. The allegations in the actions are substantially similar to those alleged in the securities class action. The actions seek, among other things, damages, disgorgement of certain types of compensation or profits, and attorneys’ fees and costs. On July 11, 2018, the parties executed a binding stipulation of settlement, under which all claims were released, and a payment of attorneys’ fees and reimbursement of expenses will be paid to plaintiffs’ counsel, subject to the Court’s approval. On July 13, 2018, the plaintiffs filed a motion for preliminary approval of the settlement. On June 28, 2021, the Court issued an order preliminarily approving the proposed settlement and scheduling a hearing to decide whether the proposed settlement should be finally approved for September 9, 2021. The Company expects that such fees and expenses payable to plaintiff’s counsel will be covered by the Company’s insurance. In June 2020, Roche Diabetes Care, Inc. (“Roche”) filed a patent infringement lawsuit against the Company in the United States District Court for the District of Delaware alleging that the Company’s manufacture and sale of its Omnipod Insulin Management System, including OmniPods, Personal Diabetes Managers, and other components of the system, and kits in the United States infringed Roche’s now-expired U.S. Patent 7,931,613. Roche is seeking monetary damages and attorneys’ fees and costs. Since the patent expired in 2019, Roche is not seeking injunctive relief and the lawsuit will have no impact on ongoing sales of the Company’s products. The Company believes that it has meritorious defenses to Roche’s claims and intends to vigorously defend against them. The court has set a trial date of July 25, 2022 . At this time, based on available information regarding this litigation, the Company is unable to reasonably assess the ultimate outcome of this case or determine an estimate, or range of estimates, of potential losses, which could be material. In July 2020, the Company filed a patent infringement claim against Roche Diabetes Care Limited (“Roche Ltd.”) in the United Kingdom alleging that Roche Ltd.’s manufacture and sale of the Accu-Chek ® Solo insulin pump and its consumable components infringes European Patent No. 1 335 764 in the United Kingdom. The Company was seeking an injunction to last until expiry of the patent and monetary damages. A trial was held in May 2021 and the judge ultimately sided with Roche Ltd. on non-infringement and invalidity of the patent, which was slated to expire in August 2021. Accordingly, no injunction was issued and no monetary damages were awarded. The Company is, from time to time, involved in the normal course of business in various legal proceedings, including intellectual property, contract, employment and product liability suits. Other than as described above, the Company does not expect the outcome of these proceedings, either individually or in the aggregate, to have a material adverse effect on its results of operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in the components of accumulated other comprehensive income (loss), net of tax, were as follows: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 (in millions) Foreign Currency Translation Adjustment Unrealized Gain on Available-for-sale Securities Unrealized Loss on Cash Flow Hedges Accumulated Other Comprehensive Income Foreign Currency Translation Adjustment Unrealized Gain on Available-for-sale Securities Unrealized Loss on Cash Flow Hedges Accumulated Other Comprehensive Income Balance at beginning of period $ 3.1 $ 0.1 $ — $ 3.2 $ 5.2 $ 0.3 $ — $ 5.5 Other comprehensive loss before reclassifications (1.8) (0.1) (1.0) (2.9) (3.9) (0.3) (1.0) (5.2) Amounts reclassified to net loss $ — $ — $ 0.4 $ 0.4 $ — $ — $ 0.4 $ 0.4 Balance at the end of period $ 1.3 $ — $ (0.6) $ 0.7 $ 1.3 $ — $ (0.6) $ 0.7 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in millions) Foreign Currency Translation Adjustment Unrealized Gain on Available-for-sale Securities Accumulated Other Comprehensive Loss Foreign Currency Translation Adjustment Unrealized Gain on Available-for-sale Securities Accumulated Other Comprehensive Loss Balance at beginning of period $ (5.0) $ 1.2 $ (3.8) $ (1.6) $ 0.4 $ (1.2) Other comprehensive income (loss) 0.6 (0.4) 0.2 (2.8) 0.4 (2.4) Balance at the end of period $ (4.4) $ 0.8 $ (3.6) $ (4.4) $ 0.8 $ (3.6) |
Interest Expense, Net
Interest Expense, Net | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Interest Expense, Net | Interest Expense, Net Interest expense, net was as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Contractual interest, net of interest rate swaps $ 6.8 $ 2.2 $ 10.5 $ 4.3 Accretion of debt discount 10.7 10.5 21.7 20.9 Amortization of debt issuance costs 1.0 0.7 1.8 1.4 Capitalized interest (1.9) (1.6) (3.8) (3.2) Interest expense, net of portion capitalized 16.6 11.8 30.2 23.4 Interest income (0.2) (0.7) (0.4) (2.2) Interest expense, net $ 16.4 $ 11.1 $ 29.8 $ 21.2 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense | Stock-Based Compensation Expense Compensation expense related to stock-based awards was recorded as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Cost of revenue $ 0.1 $ 0.1 $ 0.2 $ 0.2 Research and development expenses 2.0 2.3 3.9 5.0 Selling, general and administrative expenses 6.9 3.4 13.5 8.5 Total $ 9.0 $ 5.8 $ 17.6 $ 13.7 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Company’s effective tax rate for the three and six months ended June 30, 2021 was 12.1% and 11.2%, compared with 17.2% and 17.0% for the three and six months ended June 30, 2020, respectively. Income tax benefits have not been recorded for losses in jurisdictions where valuation allowances exist against net deferred tax assets. The Company had a full valuation allowance against its net deferred tax assets in the United Kingdom and the United States at June 30, 2021, and a full valuation allowance against its net deferred tax assets in the United States at December 31, 2020. The Company had no uncertain tax positions at both June 30, 2021 and December 31, 2020. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Net (Loss) Income Per Share Basic net (loss) income per share is computed by dividing net (loss) income by the weighted average number of common shares outstanding for the period. Diluted net (loss) income per share is computed using the weighted average number of common shares outstanding and, when dilutive, common share equivalents from outstanding stock options and restricted stock units (using the treasury-stock method), and potential common shares from the Company’s convertible notes (using the if-converted method). The weighted-average number of common shares used in the computation of basic and diluted net income per share were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Weighted average number of common shares outstanding, basic 66,696 64,371 66,406 63,627 Stock options — 1,087 — 1,130 Restricted stock units — 121 — 213 Weighted average number of common shares outstanding, diluted 66,696 65,579 66,406 64,970 The number of common share equivalents excluded from the computation of diluted net (loss) income per share because either the effect would have been anti-dilutive, or the performance criteria related to the units had not yet been met, were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 1.375% Convertible Senior Notes due November 2024 3,657 4,319 3,988 4,319 0.375% Convertible Senior Notes due September 2026 3,528 3,528 3,528 3,528 Restricted stock units 283 299 364 357 Stock options 788 67 809 52 Total 8,256 8,213 8,689 8,256 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsIn February 2021, the Company entered into a distribution agreement, the terms of which are consistent with those prevailing at arm's-length. The spouse of one of the members of the Company’s Board of Directors is an executive officer of the distributor. During the three and six months ended June 30, 2021, the Company recorded $3.3 million and $5.5 million, respectively, of net revenues from the distributor. At June 30, 2021, the Company had $1.3 million of net accounts receivable due from the distributor on its condensed consolidated balance sheet. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In July 2021, $20.0 million in principal of 1.375% Notes were converted into approximately 215,000 shares. In July 2021, the Company entered into a $43.1 million equipment financing transaction secured by machinery and equipment associated with one of its highly automated manufacturing lines located in Acton, Massachusetts. The equipment financing has a term of 7 years and an interest rate of approximately 4.25%. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements reflect the consolidated operations of Insulet Corporation and its subsidiaries (“Insulet” or the “Company”). The unaudited consolidated financial statements have been prepared in United States dollars, in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of the consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results may differ from those estimates. In management’s opinion, the unaudited consolidated financial statements contain all normal recurring adjustments necessary for a fair statement of the interim results reported. Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021, or for any other subsequent interim period. The year-end balance sheet data was derived from audited consolidated financial statements. These unaudited consolidated financial statements do not include all of the annual disclosures required by GAAP; accordingly, they should be read in conjunction with the Company’s audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Shipping and Handling costs | Shipping and Handling Costs Shipping and handling costs are included in selling, general and administrative expenses and were $2.6 million and $1.9 million for the three months ended June 30, 2021 and 2020, respectively, and were $4.7 million and $3.8 million for the six months ended June 30, 2021 and 2020, respectively. |
Derivative Instruments | Derivative Instruments The Company is exposed to certain risks relating to its business operations. Risks that relate to interest rate exposure are managed by using interest rate swaps. The Company recognizes derivative instruments as either assets or liabilities at fair value on the consolidated balance sheet. Changes in a derivative financial instrument’s fair value are recognized in earnings unless specific hedge criteria are met, in which case changes in fair value are recognized as adjustments to other comprehensive income. The Company has designated its interest rate swap contracts as cash flow hedges. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. To measure fair value of assets and liabilities, the Company uses the following fair value hierarchy based on three levels of inputs: Level 1—observable inputs, such as quoted prices in active markets for identical assets or liabilities; Level 2—significant other observable inputs that are observable either directly or indirectly; and Level 3—significant unobservable inputs for which there are little or no market data, which require the Company to develop its own assumptions. |
Advertising Costs | Advertising CostsThe Company expenses advertising costs as they are incurred. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards Effective January 1, 2021, the Company adopted Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 eliminates certain exceptions in the current guidance regarding the approach for intraperiod tax allocations, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The adoption of this guidance did not have a significant impact on our consolidated financial statements. |
Product Warranty Costs | Product Warranty Costs The Company provides a four-year warranty on Personal Diabetes Managers (“PDMs”) sold in the United States and Europe and a five-year warranty |
Revenue and Contract Acquisit_2
Revenue and Contract Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue from Contracts with Customers | The following table summarizes the Company’s disaggregated revenue: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 U.S. Omnipod $ 150.5 $ 128.8 $ 293.8 $ 245.4 International Omnipod 91.6 73.2 181.5 146.3 Total Omnipod 242.1 202.0 475.3 391.7 Drug Delivery 21.1 24.3 40.2 32.6 Total revenue $ 263.2 $ 226.3 $ 515.5 $ 424.3 |
Summary of Deferred Revenue | Deferred revenue related to unsatisfied performance obligations was included in the following consolidated balance sheet accounts in the amounts shown: (in millions) June 30, 2021 December 31, 2020 Accrued expenses and other current liabilities $ 3.2 $ 5.4 Other liabilities 1.4 1.0 Total deferred revenue $ 4.6 $ 6.4 |
Summary of Contract Acquisition Costs | Contract acquisition costs, representing capitalized commission costs related to new customers, net of amortization, were included in the following consolidated balance sheet captions in the amounts shown: (in millions) June 30, 2021 December 31, 2020 Prepaid expenses and other current assets $ 12.3 $ 11.0 Other assets 24.4 21.9 Total capitalized contract acquisition costs, net $ 36.7 $ 32.9 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a summary of cash and cash equivalents: (in millions) June 30, 2021 December 31, 2020 Cash $ 238.9 $ 164.6 Money market mutual funds 612.9 739.8 Restricted cash 2.8 2.8 Total cash and cash equivalents 854.6 907.2 Restricted cash included in other assets 14.8 14.8 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 869.4 $ 922.0 |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a summary of cash and cash equivalents: (in millions) June 30, 2021 December 31, 2020 Cash $ 238.9 $ 164.6 Money market mutual funds 612.9 739.8 Restricted cash 2.8 2.8 Total cash and cash equivalents 854.6 907.2 Restricted cash included in other assets 14.8 14.8 Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows $ 869.4 $ 922.0 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments | The following table provides amortized costs, gross unrealized gains and losses, fair values and the level in the fair value hierarchy for the Company’s investments: (in millions) Amortized Cost Gross Unrealized Gains Fair Value Level 1 Level 2 (1) June 30, 2021 U.S. government and agency bonds $ 15.0 $ — $ 15.0 $ 15.0 $ — Corporate bonds 2.0 — 2.0 — 2.0 Certificates of deposit 0.5 — 0.5 — 0.5 Total short-term investments $ 17.5 $ — $ 17.5 $ 15.0 $ 2.5 December 31, 2020 U.S. government and agency bonds $ 35.1 $ 0.2 $ 35.3 $ 35.3 $ — Corporate bonds 2.8 0.1 2.9 — 2.9 Certificates of deposit 2.2 — 2.2 — 2.2 Total short-term investments $ 40.1 $ 0.3 $ 40.4 $ 35.3 $ 5.1 (1) Fair value was determined using market prices obtained from third-party pricing sources. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories | At the end of each period, inventories were comprised of the following: (in millions) June 30, 2021 December 31, 2020 Raw materials $ 45.7 $ 30.7 Work-in-process 40.1 59.6 Finished goods 112.0 64.0 Total inventories $ 197.8 $ 154.3 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | The change in the carrying amount of goodwill for the six months ended June 30, 2021 was as follows: (in millions) Goodwill at December 31, 2020 $ 39.8 Foreign currency translation 0.1 Goodwill at June 30, 2021 $ 39.9 |
Schedule of Components of Other Intangible Assets | The gross carrying amount, accumulated amortization and net book value of intangible assets at the end of each period were as follows: June 30, 2021 December 31, 2020 (in millions) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $ 43.4 $ (20.9) $ 22.5 $ 43.3 $ (18.3) $ 25.0 Internal-use software 19.0 (9.5) 9.5 11.4 (8.6) 2.8 Intellectual property 1.6 (0.2) 1.4 1.1 (0.2) 0.9 Total intangible assets $ 64.0 $ (30.6) $ 33.4 $ 55.8 $ (27.1) $ 28.7 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Components of Accrued Expenses and Other Current Liabilities | The components of accrued expenses and other current liabilities were as follows: (in millions) June 30, 2021 December 31, 2020 Employee compensation and related costs $ 49.3 $ 53.1 Professional and consulting services 22.9 19.1 Accrued rebates 20.6 13.1 Supplier purchases 4.5 7.1 Value added taxes payable 2.9 5.0 Income taxes payable 2.1 5.0 Accrued interest 1.2 1.8 Other 39.6 33.9 Accrued expenses and other current liabilities $ 143.1 $ 138.1 |
Schedule of Reconciliation of Changes in Product Warranty Liability | Reconciliations of the changes in the Company’s product warranty liability were as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Product warranty liability at beginning of period $ 6.7 $ 8.3 $ 6.7 $ 8.5 Warranty expense 2.3 2.7 4.9 5.2 Warranty claims settled (2.5) (2.9) (5.1) (5.6) Product warranty liability at the end of period $ 6.5 $ 8.1 $ 6.5 $ 8.1 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Convertible Debt and Related Debt Issuance Costs | The components of debt consisted of the following: (in millions) June 30, 2021 December 31, 2020 1.375% Convertible Senior Notes due November 2024 $ 32.1 $ 402.5 0.375% Convertible Senior Notes due September 2026 800.0 800.0 Term loan due May 2028 500.0 — Equipment financing due May 2024 19.2 22.2 Equipment financing due November 2025 33.0 36.4 5.15% Mortgage due November 2025 68.7 69.7 Unamortized debt discount (179.9) (252.5) Debt issuance costs (17.0) (19.0) Total debt 1,256.1 1,059.3 Less: current portion 20.9 15.6 Total long-term debt $ 1,235.2 $ 1,043.7 |
Schedule of Carrying Amount and Estimated Fair Value of Convertible Debt | The carrying amount and the estimated fair value of the Company’s debt were as follows: June 30, 2021 December 31, 2020 (in millions) Carrying Estimated Carrying Estimated Fair Value (1) 1.375% Convertible Senior Notes due November 2024 (1) $ 26.6 $ 95.8 $ 323.9 $ 1,104.2 0.375% Convertible Senior Notes due September 2026 (1) 623.8 980.9 609.2 902.0 Term loan due May 2028 (2) 486.7 $ 500.6 $ — $ — Total $ 1,137.1 $ 1,577.3 $ 933.1 $ 2,006.2 (1) Convertible debt is classified as Level 2 in the fair value hierarchy. Fair value was determined using the Company’s quoted stock price and the contractual conversion rate. (2) Term debt is classified as Level 1 in the fair value hierarchy. Fair value was determined using quoted market prices. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (loss), net of tax | Changes in the components of accumulated other comprehensive income (loss), net of tax, were as follows: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 (in millions) Foreign Currency Translation Adjustment Unrealized Gain on Available-for-sale Securities Unrealized Loss on Cash Flow Hedges Accumulated Other Comprehensive Income Foreign Currency Translation Adjustment Unrealized Gain on Available-for-sale Securities Unrealized Loss on Cash Flow Hedges Accumulated Other Comprehensive Income Balance at beginning of period $ 3.1 $ 0.1 $ — $ 3.2 $ 5.2 $ 0.3 $ — $ 5.5 Other comprehensive loss before reclassifications (1.8) (0.1) (1.0) (2.9) (3.9) (0.3) (1.0) (5.2) Amounts reclassified to net loss $ — $ — $ 0.4 $ 0.4 $ — $ — $ 0.4 $ 0.4 Balance at the end of period $ 1.3 $ — $ (0.6) $ 0.7 $ 1.3 $ — $ (0.6) $ 0.7 Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 (in millions) Foreign Currency Translation Adjustment Unrealized Gain on Available-for-sale Securities Accumulated Other Comprehensive Loss Foreign Currency Translation Adjustment Unrealized Gain on Available-for-sale Securities Accumulated Other Comprehensive Loss Balance at beginning of period $ (5.0) $ 1.2 $ (3.8) $ (1.6) $ 0.4 $ (1.2) Other comprehensive income (loss) 0.6 (0.4) 0.2 (2.8) 0.4 (2.4) Balance at the end of period $ (4.4) $ 0.8 $ (3.6) $ (4.4) $ 0.8 $ (3.6) |
Interest Expense, Net (Tables)
Interest Expense, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Interest Expense | Interest expense, net was as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Contractual interest, net of interest rate swaps $ 6.8 $ 2.2 $ 10.5 $ 4.3 Accretion of debt discount 10.7 10.5 21.7 20.9 Amortization of debt issuance costs 1.0 0.7 1.8 1.4 Capitalized interest (1.9) (1.6) (3.8) (3.2) Interest expense, net of portion capitalized 16.6 11.8 30.2 23.4 Interest income (0.2) (0.7) (0.4) (2.2) Interest expense, net $ 16.4 $ 11.1 $ 29.8 $ 21.2 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-Based Compensation Expense | Compensation expense related to stock-based awards was recorded as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2021 2020 2021 2020 Cost of revenue $ 0.1 $ 0.1 $ 0.2 $ 0.2 Research and development expenses 2.0 2.3 3.9 5.0 Selling, general and administrative expenses 6.9 3.4 13.5 8.5 Total $ 9.0 $ 5.8 $ 17.6 $ 13.7 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The weighted-average number of common shares used in the computation of basic and diluted net income per share were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 Weighted average number of common shares outstanding, basic 66,696 64,371 66,406 63,627 Stock options — 1,087 — 1,130 Restricted stock units — 121 — 213 Weighted average number of common shares outstanding, diluted 66,696 65,579 66,406 64,970 |
Schedule of Antidilutive Securities | The number of common share equivalents excluded from the computation of diluted net (loss) income per share because either the effect would have been anti-dilutive, or the performance criteria related to the units had not yet been met, were as follows: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2021 2020 2021 2020 1.375% Convertible Senior Notes due November 2024 3,657 4,319 3,988 4,319 0.375% Convertible Senior Notes due September 2026 3,528 3,528 3,528 3,528 Restricted stock units 283 299 364 357 Stock options 788 67 809 52 Total 8,256 8,213 8,689 8,256 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Reclassification [Line Items] | |||||
Capitalized implementation costs of cloud computing arrangements | $ 44.5 | $ 44.5 | $ 24.2 | ||
Amortization expense | 0.8 | $ 0.2 | 1.3 | $ 0.5 | |
Cost of Goods and Services Sold | 80.5 | 83.8 | 165.3 | 154.9 | |
Advertising expense | 12 | 2.9 | 21.4 | 5.6 | |
Shipping and Handling | |||||
Reclassification [Line Items] | |||||
Cost of Goods and Services Sold | $ 2.6 | $ 1.9 | $ 4.7 | $ 3.8 |
Revenue and Contract Acquisit_3
Revenue and Contract Acquisition Costs - Summary of Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue (Related Party Transactions Note 16) | $ 263.2 | $ 226.3 | $ 515.5 | $ 424.3 |
U.S. Omnipod | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (Related Party Transactions Note 16) | 150.5 | 128.8 | 293.8 | 245.4 |
International Omnipod | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (Related Party Transactions Note 16) | 91.6 | 73.2 | 181.5 | 146.3 |
Total Omnipod | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (Related Party Transactions Note 16) | 242.1 | 202 | 475.3 | 391.7 |
Drug Delivery | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue (Related Party Transactions Note 16) | $ 21.1 | $ 24.3 | $ 40.2 | $ 32.6 |
Revenue and Contract Acquisit_4
Revenue and Contract Acquisition Costs - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Disaggregation of Revenue [Line Items] | ||||||
Revenue recognized | $ 0.2 | $ 0.1 | $ 3.9 | $ 1.6 | ||
Amortization of capitalized commission costs | 3 | $ 2.6 | 6 | $ 5.1 | ||
Unbilled receivable | $ 18 | $ 11.6 | $ 18 | $ 18 | ||
Sales Revenue | Customer Concentration Risk | Largest Two Customers | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Concentration risk, percentage | 26.00% | 21.00% | 25.00% | 21.00% | ||
Accounts Receivable | Customer Concentration Risk | Largest Two Customers | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Concentration risk, percentage | 26.00% | |||||
Accounts Receivable | Customer Concentration Risk | Largest Customer | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Concentration risk, percentage | 15.00% |
Revenue and Contract Acquisit_5
Revenue and Contract Acquisition Costs - Summary of Deferred Revenue (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Accrued expenses and other current liabilities | $ 3.2 | $ 5.4 |
Other liabilities | 1.4 | 1 |
Total deferred revenue | $ 4.6 | $ 6.4 |
Revenue and Contract Acquisit_6
Revenue and Contract Acquisition Costs - Summary of Contract Acquisition Costs (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Prepaid expenses and other current assets | $ 12.3 | $ 11 |
Other assets | 24.4 | 21.9 |
Total capitalized contract acquisition costs, net | $ 36.7 | $ 32.9 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 2.8 | $ 2.8 | ||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | 869.4 | 922 | $ 779.1 | $ 213.7 |
Restricted cash included in other assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | 14.8 | 14.8 | ||
Cash | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash and cash equivalents | 238.9 | 164.6 | ||
Money market mutual funds | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash and cash equivalents | 612.9 | 739.8 | ||
Cash and Cash Equivalents | ||||
Cash and Cash Equivalents [Line Items] | ||||
Total cash, cash equivalents, and restricted cash shown in the consolidated statements of cash flows | $ 854.6 | $ 907.2 |
Investments - Narrative (Detail
Investments - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Minimum | |
Debt Securities, Available-for-sale [Line Items] | |
Derivative maturity date range | 1 month |
Maximum | |
Debt Securities, Available-for-sale [Line Items] | |
Derivative maturity date range | 6 months |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and Level in Fair Value Hierarchy for Investments (Details) - Short-term investments - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 17.5 | $ 40.1 |
Gross Unrealized Gains | 0 | 0.3 |
Fair Value | 17.5 | 40.4 |
Level 1 | Recurring fair value measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 15 | 35.3 |
Level 2 | Recurring fair value measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2.5 | 5.1 |
U.S. government and agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 15 | 35.1 |
Gross Unrealized Gains | 0 | 0.2 |
Fair Value | 15 | 35.3 |
U.S. government and agency bonds | Level 1 | Recurring fair value measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 15 | 35.3 |
U.S. government and agency bonds | Level 2 | Recurring fair value measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 2 | 2.8 |
Gross Unrealized Gains | 0 | 0.1 |
Fair Value | 2 | 2.9 |
Corporate bonds | Level 1 | Recurring fair value measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Corporate bonds | Level 2 | Recurring fair value measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2 | 2.9 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 0.5 | 2.2 |
Gross Unrealized Gains | 0 | 0 |
Fair Value | 0.5 | 2.2 |
Certificates of deposit | Level 1 | Recurring fair value measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Certificates of deposit | Level 2 | Recurring fair value measurements | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0.5 | $ 2.2 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 45.7 | $ 30.7 |
Work-in-process | 40.1 | 59.6 |
Finished goods | 112 | 64 |
Total inventories | $ 197.8 | $ 154.3 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Summary of Changes in Carrying Amounts of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill at December 31, 2020 | $ 39.8 |
Foreign currency translation | 0.1 |
Goodwill at June 30, 2021 | $ 39.9 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Components of Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 64 | $ 55.8 |
Accumulated Amortization | (30.6) | (27.1) |
Net Book Value | 33.4 | 28.7 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 43.4 | 43.3 |
Accumulated Amortization | (20.9) | (18.3) |
Net Book Value | 22.5 | 25 |
Internal-use software | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 19 | 11.4 |
Accumulated Amortization | (9.5) | (8.6) |
Net Book Value | 9.5 | 2.8 |
Intellectual property | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1.6 | 1.1 |
Accumulated Amortization | (0.2) | (0.2) |
Net Book Value | $ 1.4 | $ 0.9 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 1.8 | $ 0.7 | $ 3.5 | $ 1.5 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Payables and Accruals [Abstract] | ||
Employee compensation and related costs | $ 49.3 | $ 53.1 |
Professional and consulting services | 22.9 | 19.1 |
Accrued rebates | 20.6 | 13.1 |
Supplier purchases | 4.5 | 7.1 |
Value added taxes payable | 2.9 | 5 |
Income taxes payable | 2.1 | 5 |
Accrued interest | 1.2 | 1.8 |
Other | 39.6 | 33.9 |
Accrued expenses and other current liabilities | $ 143.1 | $ 138.1 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021 | |
United States | |
Product Warranty Liability [Line Items] | |
Product warranty term for PDMs | 4 years |
CANADA | |
Product Warranty Liability [Line Items] | |
Product warranty term for PDMs | 5 years |
Accrued Expenses and Other Cu_5
Accrued Expenses and Other Current Liabilities - Product Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Product warranty liability at beginning of period | $ 6.7 | $ 8.3 | $ 6.7 | $ 8.5 |
Warranty expense | 2.3 | 2.7 | 4.9 | 5.2 |
Warranty claims settled | (2.5) | (2.9) | (5.1) | (5.6) |
Product warranty liability at the end of period | $ 6.5 | $ 8.1 | $ 6.5 | $ 8.1 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||
Unamortized debt discount | $ (179.9) | $ (252.5) | |
Debt issuance costs | (17) | (19) | |
Total debt | 1,256.1 | 1,059.3 | |
Less: current portion | 20.9 | 15.6 | |
Total long-term debt | $ 1,235.2 | $ 1,043.7 | |
Convertible Senior Notes, 1.375% | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 1.375% | 1.375% | |
Convertible Senior Notes .375% | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 0.375% | 0.375% | |
Convertible Debt | Convertible Senior Notes, 1.375% | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 1.375% | 1.375% | |
Long-term debt, gross | $ 32.1 | $ 402.5 | |
Convertible Debt | Convertible Senior Notes .375% | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 0.375% | 0.375% | |
Long-term debt, gross | $ 800 | $ 800 | |
Secured Debt | Term loan due May 2028 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 500 | 0 | |
Secured Debt | Equipment financing due May 2024 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 19.2 | 22.2 | |
Secured Debt | Equipment financing due November 2025 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 33 | $ 36.4 | |
Secured Debt | 5.15% Mortgage due November 2025 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 5.15% | 5.15% | |
Long-term debt, gross | $ 68.7 | $ 69.7 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) shares in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | May 01, 2021 | |
Debt Instrument [Line Items] | ||||||
Repayment of convertible debt | $ 460,800,000 | $ 0 | ||||
Issuance of shares for debt repayment | $ 622,700,000 | 622,700,000 | ||||
Loss on extinguishment of debt | $ 40,100,000 | $ 0 | 40,100,000 | 0 | ||
Proceeds from issuance of debt, net | $ 489,500,000 | $ 0 | ||||
Common Stock | ||||||
Debt Instrument [Line Items] | ||||||
Issuance of shares for debt repayment (in shares) | 2,242 | 2,242 | ||||
Convertible Senior Notes, 1.375% | ||||||
Debt Instrument [Line Items] | ||||||
Debt, interest rate | 1.375% | 1.375% | 1.375% | 1.375% | ||
Senior Notes | Convertible Senior Notes, 1.375% | ||||||
Debt Instrument [Line Items] | ||||||
Debt repurchased face amount | $ 370,400,000 | $ 370,400,000 | ||||
Repurchase amount | $ 305,700,000 | $ 305,700,000 | ||||
Debt, interest rate | 1.375% | 1.375% | ||||
Issuance of shares for debt repayment (in shares) | 2,200 | |||||
Issuance of shares for debt repayment | $ 622,700,000 | |||||
Secured Debt | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of senior notes | $ 60,000,000 | |||||
Debt instrument, term | 3 years | |||||
Credit facility outstanding amount | $ 0 | $ 0 | ||||
Secured Debt | LIBOR | Revolving Credit Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Debt, basis spread on variable rate (in percent) | 2.75% | |||||
Secured Debt | LIBOR | Revolving Credit Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Debt, basis spread on variable rate (in percent) | 3.25% | |||||
Secured Debt | Senior Secured Term Loan B | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of senior notes | $ 500,000,000 | |||||
Debt instrument, term | 7 years | |||||
Proceeds from issuance of debt, net | $ 489,500,000 | |||||
Secured Debt | Senior Secured Term Loan B | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Debt, basis spread on variable rate (in percent) | 3.25% | |||||
Debt, floor rate (in percent) | 0.50% |
Debt - Summary of Carrying Amou
Debt - Summary of Carrying Amount and Estimated Fair Value of Convertible Debt (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Convertible Senior Notes, 1.375% | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt, interest rate | 1.375% | 1.375% | |
Convertible Senior Notes .375% | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt, interest rate | 0.375% | 0.375% | |
Level 2 | Estimated Fair Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument fair value | $ 1,577.3 | $ 2,006.2 | |
Level 2 | Estimated Fair Value | Convertible Senior Notes, 1.375% | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument fair value | 95.8 | 1,104.2 | |
Level 2 | Estimated Fair Value | Convertible Senior Notes .375% | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument fair value | 980.9 | 902 | |
Level 2 | Estimated Fair Value | Term loan due May 2028 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument fair value | 500.6 | 0 | |
Level 2 | Carrying Value | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument fair value | 1,137.1 | 933.1 | |
Level 2 | Carrying Value | Convertible Senior Notes, 1.375% | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument fair value | 26.6 | 323.9 | |
Level 2 | Carrying Value | Convertible Senior Notes .375% | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument fair value | 623.8 | 609.2 | |
Level 2 | Carrying Value | Term loan due May 2028 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt instrument fair value | $ 486.7 | $ 0 |
Derivative Instruments (Details
Derivative Instruments (Details) - Interest Rate Swap $ in Millions | 1 Months Ended | |
May 31, 2021agreement | Jun. 30, 2021USD ($) | |
Derivative [Line Items] | ||
Number of instruments entered during period | agreement | 2 | |
Notional amount | $ 480 | |
Percentage of debt hedged by interest rate derivatives | 96.00% | |
Derivative liability | $ 0.7 | |
LIBOR | ||
Derivative [Line Items] | ||
Derivative fixed interest rate | 4.20% |
Commitment and Contingencies (D
Commitment and Contingencies (Details) | 1 Months Ended |
Jun. 16, 2015lawsuit | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of class actions filed (in legal matters) | 3 |
Number of class actions dismissed (in legal matters) | 2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 585.3 | $ 59 | $ 603.6 | $ 75.9 |
Other comprehensive loss before reclassifications | (2.9) | (5.2) | ||
Amounts reclassified to net loss | 0.4 | 0.4 | ||
Other comprehensive income (loss) | (2.5) | 0.2 | (4.8) | (2.4) |
Ending balance | 459.1 | 563.3 | 459.1 | 563.3 |
Foreign Currency Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 3.1 | (5) | 5.2 | (1.6) |
Other comprehensive loss before reclassifications | (1.8) | (3.9) | ||
Amounts reclassified to net loss | 0 | 0 | ||
Other comprehensive income (loss) | 0.6 | (2.8) | ||
Ending balance | 1.3 | (4.4) | 1.3 | (4.4) |
Unrealized Gain on Available-for-sale Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 0.1 | 1.2 | 0.3 | 0.4 |
Other comprehensive loss before reclassifications | (0.1) | (0.3) | ||
Amounts reclassified to net loss | 0 | 0 | ||
Other comprehensive income (loss) | (0.4) | 0.4 | ||
Ending balance | 0 | 0.8 | 0 | 0.8 |
Unrealized Loss on Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 0 | ||
Other comprehensive loss before reclassifications | (1) | (1) | ||
Amounts reclassified to net loss | 0.4 | 0.4 | ||
Ending balance | (0.6) | (0.6) | ||
Accumulated Other Comprehensive Income | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 3.2 | (3.8) | 5.5 | (1.2) |
Other comprehensive income (loss) | (2.5) | 0.2 | (4.8) | (2.4) |
Ending balance | $ 0.7 | $ (3.6) | $ 0.7 | $ (3.6) |
Interest Expense, Net (Details)
Interest Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | ||||
Contractual interest, net of interest rate swaps | $ 6.8 | $ 2.2 | $ 10.5 | $ 4.3 |
Accretion of debt discount | 10.7 | 10.5 | 21.7 | 20.9 |
Amortization of debt issuance costs | 1 | 0.7 | 1.8 | 1.4 |
Capitalized interest | (1.9) | (1.6) | (3.8) | (3.2) |
Interest expense, net of portion capitalized | 16.6 | 11.8 | 30.2 | 23.4 |
Interest income | (0.2) | (0.7) | (0.4) | (2.2) |
Interest expense, net | $ 16.4 | $ 11.1 | $ 29.8 | $ 21.2 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 9 | $ 5.8 | $ 17.6 | $ 13.7 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 0.1 | 0.1 | 0.2 | 0.2 |
Research and development expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 2 | 2.3 | 3.9 | 5 |
Selling, general and administrative expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 6.9 | $ 3.4 | $ 13.5 | $ 8.5 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 12.10% | 17.20% | 11.20% | 17.00% | |
Uncertain tax position | $ 0 | $ 0 | $ 0 |
Net (Loss) Income Per Share - C
Net (Loss) Income Per Share - Computation of Basic and Diluted Net Income per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average number of common shares outstanding, basic (in shares) | 66,696 | 64,371 | 66,406 | 63,627 |
Weighted average number of common shares outstanding, diluted (in shares) | 66,696 | 65,579 | 66,406 | 64,970 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Effect of dilutive securities (in shares) | 0 | 1,087 | 0 | 1,130 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Effect of dilutive securities (in shares) | 0 | 121 | 0 | 213 |
Net (Loss) Income Per Share - S
Net (Loss) Income Per Share - Schedule of Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 8,256 | 8,213 | 8,689 | 8,256 |
1.375% Convertible Senior Notes due November 2024 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,657 | 4,319 | 3,988 | 4,319 |
0.375% Convertible Senior Notes due September 2026 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,528 | 3,528 | 3,528 | 3,528 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 283 | 299 | 364 | 357 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 788 | 67 | 809 | 52 |
1.375% Convertible Senior Notes due November 2024 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Debt, interest rate | 1.375% | 1.375% | 1.375% | 1.375% |
0.375% Convertible Senior Notes due September 2026 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Debt, interest rate | 0.375% | 0.375% | 0.375% | 0.375% |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Related Party Transactions [Abstract] | ||
Revenue from related party | $ 3.3 | $ 5.5 |
Accounts receivable due from related party | $ 1.3 | $ 1.3 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | ||
Jul. 31, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | |
Convertible Senior Notes, 1.375% | |||
Subsequent Event [Line Items] | |||
Debt, interest rate | 1.375% | 1.375% | |
Senior Notes | Convertible Senior Notes, 1.375% | |||
Subsequent Event [Line Items] | |||
Debt, interest rate | 1.375% | ||
Senior Notes | Convertible Senior Notes, 1.375% | Subsequent event | |||
Subsequent Event [Line Items] | |||
Converted debt principal amount | $ 20 | ||
Debt, interest rate | 1.375% | ||
Shares issued (in shares) | 215,000 | ||
Secured Debt | Equipment Financing Transaction | Subsequent event | |||
Subsequent Event [Line Items] | |||
Debt, interest rate | 4.25% | ||
Debt instrument, face amount | $ 43.1 | ||
Debt instrument, term | 7 years |
Uncategorized Items - podd-2021
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |