DEXCOM INC, 10-K filed on 2/18/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2024
Feb. 06, 2025
Jun. 28, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
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    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 45.3
Entity Common Stock, Shares Outstanding   390,772,018  
Documents incorporated by reference
Portions of the registrant’s definitive proxy statement relating to its 2025 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, which proxy statement will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Form 10-K.
    
Amendment Flag false    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001093557    
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Audit Information
 12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Location San Diego, California
Auditor Firm ID 42
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Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 606.1 $ 566.3
Short-term marketable securities 1,973.3 2,157.8
Accounts receivable, net 1,005.7 973.9
Inventory 542.6 559.6
Prepaid and other current assets 173.7 168.3
Total current assets 4,301.4 4,425.9
Property and equipment, net 1,339.9 1,113.1
Operating lease right-of-use assets 62.8 71.4
Goodwill 22.8 25.2
Intangibles, net 103.4 134.5
Deferred tax assets 481.2 419.4
Other assets 173.0 75.0
Total assets 6,484.5 6,264.5
Current liabilities:    
Accounts payable and accrued liabilities 1,585.1 1,345.5
Accrued payroll and related expenses 112.0 171.0
Current portion of long-term senior convertible notes 1,204.4 0.0
Short-term operating lease liabilities 22.5 21.1
Deferred revenue 8.0 18.4
Total current liabilities 2,932.0 1,556.0
Long-term senior convertible notes 1,237.0 2,434.2
Long-term operating lease liabilities 65.0 80.1
Other long-term liabilities 147.9 125.6
Total liabilities 4,381.9 4,195.9
Commitments and contingencies
Stockholders’ equity:    
Preferred stock, $0.001 par value, 5.0 million shares authorized; no shares issued and outstanding at December 31, 2024 and December 31, 2023 0.0 0.0
Common stock, $0.001 par value, 800.0 million shares authorized; 408.9 million and 390.7 million shares issued and outstanding, respectively, at December 31, 2024; and 407.2 million and 385.4 million shares issued and outstanding, respectively, at December 31, 2023 0.4 0.4
Additional paid-in capital 2,093.8 3,514.6
Accumulated other comprehensive loss (8.0) (16.7)
Retained earnings 1,597.6 1,021.4
Treasury stock, at cost; 18.2 million shares at December 31, 2024 and 21.8 million shares at December 31, 2023 (1,581.2) (2,451.1)
Total stockholders’ equity 2,102.6 2,068.6
Total liabilities and stockholders’ equity $ 6,484.5 $ 6,264.5
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Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Preferred stock, par value (in usd per share) $ 0.001 $ 0.001
Preferred stock authorized (in shares) 5,000,000.0 5,000,000.0
Preferred stock issued (in shares) 0 0
Preferred stock outstanding (in shares) 0 0
Common stock, par value (in usd per share) $ 0.001 $ 0.001
Common stock authorized (in shares) 800,000,000.0 800,000,000.0
Common stock issued (in shares) 408,900,000 407,200,000
Common stock outstanding (in shares) 390,700,000 385,400,000
Treasury stock, at cost (in shares) 18,200,000 21,800,000
v3.25.0.1
Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Statement [Abstract]      
Revenue $ 4,033.0 $ 3,622.3 $ 2,909.8
Cost of sales 1,594.8 1,333.4 1,026.7
Gross profit 2,438.2 2,288.9 1,883.1
Operating expenses:      
Research and development 552.4 505.8 484.2
Selling, general and administrative 1,285.8 1,185.4 1,007.7
Total operating expenses 1,838.2 1,691.2 1,491.9
Operating income 600.0 597.7 391.2
Other income (expense), net 109.0 112.7 (0.4)
Income before income taxes 709.0 710.4 390.8
Income tax expense 132.8 168.9 49.6
Net income $ 576.2 $ 541.5 $ 341.2
Basic net income per share (in usd per share) $ 1.46 $ 1.40 $ 0.88
Shares used to compute basic net income per share (in shares) 393.6 386.0 389.4
Diluted net income per share (in usd per share) $ 1.42 $ 1.30 $ 0.82
Shares used to compute diluted net income per share (in shares) 412.7 425.5 427.5
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Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net income $ 576.2 $ 541.5 $ 341.2
Other comprehensive income (loss), net of tax:      
Translation adjustments and other 8.6 (9.2) (9.8)
Unrealized gain (loss) on marketable debt securities 0.1 4.1 (2.3)
Total other comprehensive income (loss), net of tax 8.7 (5.1) (12.1)
Comprehensive income $ 584.9 $ 536.4 $ 329.1
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Consolidated Statements of Stockholders' Equity - USD ($)
shares in Millions, $ in Millions
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Treasury Stock
Balance at beginning of period ( in shares) at Dec. 31, 2021   388.0        
Balance at beginning of period at Dec. 31, 2021 $ 2,042.1 $ 0.4 $ 2,108.7 $ 0.5 $ 138.7 $ (206.2)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity incentive plans (in shares)   1.6        
Issuance of common stock for employee stock purchase plan (in shares)   0.3        
Issuance of common stock for Employee Stock Purchase Plan $ 22.5   22.5      
Issuance of common stock in connection with achievement of regulatory approval milestone, net of issuance costs (in shares) 2.9 2.9        
Issuance of common stock in connection with achievement of sales-based milestone, net of issuance costs $ (0.1)   (189.3)     189.2
Purchases of treasury stock, including excise tax (in shares)   (6.6)        
Purchases of treasury stock, including excise tax (557.7)         (557.7)
Tax benefit related to Senior Convertible Notes $ (0.4)   (0.4)      
Conversions of 2023 Notes (in shares) 0.4 0.4        
Conversions of 2023 Notes $ 17.4   4.2     13.2
Benefit of note hedge upon conversions of 2023 Notes (in shares) (0.3) (0.3)        
Benefit of note hedge upon conversions of 2023 Notes $ 0.0   33.5     (33.5)
Exercise and settlement of warrants (in shares) 0.0          
Share-based compensation expense $ 126.5   126.5      
Capitalization of sales-based milestones 152.4   152.4      
Net income 341.2       341.2  
Other comprehensive income, net of tax (12.1)     (12.1)    
Balance at end of period (in shares) at Dec. 31, 2022   386.3        
Balance at end of period at Dec. 31, 2022 2,131.8 $ 0.4 2,258.1 (11.6) 479.9 (595.0)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity incentive plans (in shares)   1.4        
Issuance of common stock for employee stock purchase plan (in shares)   0.3        
Issuance of common stock for Employee Stock Purchase Plan $ 26.6   26.6      
Issuance of common stock in connection with achievement of regulatory approval milestone, net of issuance costs (in shares) 3.7 3.7        
Issuance of common stock in connection with achievement of sales-based milestone, net of issuance costs $ (0.2)   (323.4)     323.2
Purchases of treasury stock, including excise tax (in shares)   (6.3)        
Purchases of treasury stock, including excise tax (689.2)   (0.2)     (689.0)
Tax benefit related to Senior Convertible Notes $ (4.4)   (4.4)      
Conversions of 2023 Notes (in shares) 0.0 12.2        
Conversions of 2023 Notes $ (13.1)   (13.1)      
Benefit of note hedge upon conversions of 2023 Notes (in shares) (12.2) (12.2)        
Benefit of note hedge upon conversions of 2023 Notes $ 6.2   1,496.5     (1,490.3)
Purchase of capped call transactions, net of tax $ (76.3)   (76.3)      
Exercise and settlement of warrants (in shares) 0.0          
Share-based compensation expense $ 150.8   150.8      
Net income 541.5       541.5  
Other comprehensive income, net of tax $ (5.1)     (5.1)    
Balance at end of period (in shares) at Dec. 31, 2023 385.4 385.4        
Balance at end of period at Dec. 31, 2023 $ 2,068.6 $ 0.4 3,514.6 (16.7) 1,021.4 (2,451.1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock under equity incentive plans (in shares)   1.3        
Issuance of common stock for employee stock purchase plan (in shares)   0.4        
Issuance of common stock for Employee Stock Purchase Plan $ 28.2   28.2      
Issuance of common stock in connection with achievement of regulatory approval milestone, net of issuance costs (in shares) 1.5 1.5        
Issuance of common stock in connection with achievement of sales-based milestone, net of issuance costs $ 0.0   (188.1)     188.1
Purchases of treasury stock, including excise tax (in shares)   (10.4)        
Purchases of treasury stock, including excise tax $ (749.5)         (749.5)
Conversions of 2023 Notes (in shares) 0.0          
Benefit of note hedge upon conversions of 2023 Notes (in shares) 0.0          
Exercise and settlement of warrants (in shares) 12.5 12.5        
Exercise and settlement of warrants $ 0.0   (1,431.3)     1,431.3
Share-based compensation expense 170.4   170.4      
Net income 576.2       576.2  
Other comprehensive income, net of tax $ 8.7     8.7    
Balance at end of period (in shares) at Dec. 31, 2024 390.7 390.7        
Balance at end of period at Dec. 31, 2024 $ 2,102.6 $ 0.4 $ 2,093.8 $ (8.0) $ 1,597.6 $ (1,581.2)
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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating activities      
Net income $ 576.2 $ 541.5 $ 341.2
Adjustments to reconcile net income to cash provided by operating activities:      
Depreciation and amortization 217.7 186.0 155.9
Share-based compensation 170.4 150.8 126.5
Non-cash interest expense 7.5 7.8 6.3
Deferred income taxes (43.8) (55.0) (21.6)
Other non-cash income and expenses (47.3) (85.8) 34.5
Changes in operating assets and liabilities:      
Accounts receivable, net (35.0) (260.1) (199.9)
Inventory 12.4 (252.6) 49.3
Prepaid and other assets (5.8) 19.3 (131.6)
Operating lease right-of-use assets and liabilities, net (6.5) (4.5) (5.8)
Accounts payable and accrued liabilities 211.7 466.5 295.1
Accrued payroll and related expenses (60.0) 37.2 8.5
Deferred revenue and other liabilities (8.0) (2.6) 11.1
Net cash provided by operating activities 989.5 748.5 669.5
Investing activities      
Purchase of marketable securities (2,576.3) (3,200.4) (2,266.3)
Proceeds from sale and maturity of marketable securities 2,824.4 2,947.4 2,127.8
Purchases of property and equipment (358.8) (236.6) (364.8)
Acquisitions, net of cash acquired 0.0 0.0 (3.9)
Purchases of non-marketable equity securities (81.3) (19.5) (14.5)
Other investing activities (15.5) 1.9 0.2
Net cash used in investing activities (207.5) (507.2) (521.5)
Financing activities      
Net proceeds from issuance of common stock 28.2 26.6 22.5
Purchases of treasury stock (750.0) (688.7) (557.7)
Proceeds from issuance of convertible notes, net of issuance costs 0.0 1,230.6 0.0
Purchases of capped call transactions 0.0 (101.3) 0.0
Payments for conversions of senior convertible notes 0.0 (787.3) 0.0
Other financing activities (13.0) 1.5 (17.3)
Net cash used in financing activities (734.8) (318.6) (552.5)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (7.4) 1.5 (5.8)
Increase (decrease) in cash, cash equivalents and restricted cash 39.8 (75.8) (410.3)
Cash, cash equivalents and restricted cash, beginning of period 567.5 643.3 1,053.6
Cash, cash equivalents and restricted cash, end of period 607.3 567.5 643.3
Reconciliation of cash, cash equivalents and restricted cash, end of period:      
Cash and cash equivalents 606.1 566.3 642.3
Restricted cash 1.2 1.2 1.0
Total cash, cash equivalents and restricted cash 607.3 567.5 643.3
Supplemental disclosure of non-cash investing and financing transactions:      
Shares issued for repurchase and conversions of senior convertible notes 0.0 1,501.9 35.9
Shares received under note hedge upon conversion of 2023 Notes 0.0 (1,490.3) (33.5)
Acquisition of property and equipment included in accounts payable and accrued liabilities 75.4 53.2 25.7
Supplemental cash flow information:      
Cash paid during the year for interest 11.4 12.4 12.2
Cash paid during the year for income taxes $ 198.0 $ 212.3 $ 114.2
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Organization and Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Significant Accounting Policies
1. Organization and Significant Accounting Policies
Organization and Business
We are a medical device company primarily focused on the design, development and commercialization of continuous glucose monitoring, or CGM, systems for the management of diabetes and metabolic health 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.
We determine the functional currencies of our international subsidiaries by reviewing the environment where each subsidiary primarily generates and expends cash. For international subsidiaries whose functional currencies are the local currencies, we translate the financial statements 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 and in accumulated other comprehensive loss in the equity section of our consolidated balance sheets. We record gains and losses resulting from transactions with customers and vendors that are denominated in currencies other than the functional currency and from certain intercompany transactions in other income (expense), 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 rebates, excess or obsolete inventories and the valuation of inventory, accruals for litigation contingencies, and the amount of our worldwide tax provision and the realizability of deferred tax assets. 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—Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities.
Level 2—Uses 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—Uses 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 estimate the fair value of most of our cash equivalents using Level 1 inputs. We estimate the fair value of our marketable equity securities using Level 1 inputs and we estimate the fair value of our marketable debt securities using Level 2 inputs. 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. See Note 3 “Fair Value Measurements” to the consolidated financial statements for more information.
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. Interest income and realized gains and losses on marketable debt securities are included in other income (expense), 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 (loss) from 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, supranational 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 and Other Financial Information—Short-Term Marketable Securities” to the consolidated financial statements for more information on our marketable securities.
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are generally recorded at the invoiced amount, net of prompt pay discounts, 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. Uncollectible accounts are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a customer account is uncollectible. Generally, receivable balances that are more than one year past due are deemed uncollectible.
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 a few major 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
December 31,		As of December 31,
20242023202220242023
Customer A40 %35 %32 %18 %20 %
Customer B**11 %**
Customer C35 %30 %26 %21 %23 %
Customer D42 %37 %29 %27 %27 %
Customer E**10 %**
* Less than 10%
** Total revenue for each customer is net of fees, cash discounts, and rebates directly allocable to that customer. Rebates paid to other entities are excluded; therefore, the combined value may exceed 100%.
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 capitalize inventory produced in preparation for commercial launches when it becomes probable that the product will receive regulatory approval and that the related costs will be recoverable through the commercialization of the product. A number of factors are considered, including the status of the regulatory application approval process, management’s judgment of probable future commercial use, and net realizable value.
We record adjustments to inventory for potential excess or obsolete inventory, as well as inventory that does not pass quality control testing, 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 disposed of or sold.
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.
Historically, our inventory reserves have been adequate to cover our actual losses. However, if actual product life cycles, product quality or market conditions differ from our assumptions, additional inventory adjustments that would increase cost of sales could be required.
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 also capitalize certain costs incurred for the development of enterprise-level business and finance software that we use internally in our operations. Costs incurred in the application development phase are capitalized while costs related to planning and other preliminary project activities and to post-implementation activities are expensed as incurred.
We calculate depreciation using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are generally three to five years for computer software and hardware, including internal use software, four to fifteen years for machinery and equipment, and five years for furniture and fixtures. Leasehold and land improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. Buildings are amortized over the shorter of the ownership of the building or forty years. We include the amortization of assets that are recorded under finance leases in depreciation expense. On retirement or disposition, the asset cost and related accumulated depreciation are removed from our consolidated balance sheets and any gain or loss is recognized in our consolidated statements of operations.
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 are tested annually for impairment during the fourth fiscal quarter 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 significant goodwill impairment charges for the twelve months ended December 31, 2024, 2023 or 2022.
The change in goodwill for the twelve months ended December 31, 2024 and 2023 primarily consisted of the divestiture of our non-diabetes distribution business and translation adjustments on our foreign currency denominated goodwill.
Intangible Assets and Other Long-Lived Assets
Intangible assets are included in intangibles and other assets, net in our consolidated balance sheets. We amortize intangible assets with a finite life, such as the customer relationships, acquired technology and intellectual property, trademarks and trade name, and other intangibles, on a straight-line basis over their estimated useful lives, which range from one to fourteen years. We review intangible assets that have finite lives and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. 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.
For transactions other than a business combination, we also capitalize as intangible assets the cost of certain milestones payable by us to collaborative partners and incurred at or after the product has obtained regulatory approval for marketing. The intangible assets associated with these milestones are amortized over the remaining estimated useful life of the underlying asset.
We recorded no significant intangible asset impairment charges for the twelve months ended December 31, 2024, 2023 or 2022.
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 rate on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, carryback potential if permitted under tax law and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.
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.
We recognize income tax expense for basis differences related to global intangible low-taxed income (“GILTI”) as a period cost if and when incurred. GILTI is a category of income that is earned abroad by U.S.-controlled foreign corporations (CFCs) and is subject to special treatment under the U.S. tax code.
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
We are subject to certain legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. We review the status of each significant matter quarterly and assess our potential financial exposure. 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, we do not record a liability or an expense but we disclose the range of the possible loss. We base our judgments on the best information available at the time. As additional information becomes available, we reassess the potential liability related to our pending claims and litigation and may revise our estimates. Any revision of our estimates of potential liability could have a material impact on our financial position and operating results.
Comprehensive Income
Comprehensive income consists of two elements, net income and other comprehensive income (loss). We report all components of comprehensive income, including net income, in our financial statements in the period in which they are recognized. Total comprehensive income 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 and the components of other comprehensive income (loss), 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.
Revenue Recognition
We generate our revenue from the sale of disposable sensors and our reusable transmitter and receiver, collectively referred to as Reusable Hardware. We also 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.
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.
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, product returns provision, and prompt payment discounts. We classify these items as a reduction of accounts receivable when we are not required to make a payment and as a liability when we are required to make a payment.
Estimates
We review the adequacy of our estimates for transaction price adjustments and variable consideration at each reporting date. If the actual amounts of consideration we receive differ from our estimates, we would adjust our estimates and that would affect reported revenue in the period that such variances become known. If any of these judgments were to change, it could cause a material increase or decrease in the amount of revenue we report in a particular period.
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 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 chargebacks primarily based on historical experience on a product and program basis, current contract prices under the chargeback programs and channel inventory data.
Product Returns
In accordance with the terms of their distribution agreements, most distributors do not have rights of return. The distributors typically have a limited time frame to notify us of any missing, damaged, defective or non-conforming products. We estimate our product returns primarily 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 discounts based on eligible sales and contractual discount rates.
Revenue Recognition
We record revenue from sales of Components upon transfer of control of the product to the customer. We typically determine transfer of control based on when the product is shipped or delivered and title passes to the customer.
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, 2024 included unbilled accounts receivable of $15.2 million. We expect to invoice and collect all unbilled accounts receivable within twelve months.
We record deferred revenue when cash payments have been received prior to satisfaction of the related performance obligation.
Our performance obligations are generally satisfied within twelve months of the initial contract date. The deferred revenue balances related to performance obligations that will be satisfied after twelve months were $9.5 million as of December 31, 2024 and $7.4 million as of December 31, 2023. These balances are included in other long-term liabilities in our consolidated balance sheets.
Deferred Cost of Sales
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 year or less. We record these costs in selling, general and administrative expense in our consolidated statements of operations.
Research and Development
We expense costs of research and development as we incur them. Our research and development expenses primarily consists of engineering and research expenses related to our sensing technology, clinical trials, regulatory expenses, quality assurance programs, employee compensation, and business process outsourcers.
Our technology includes 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.
Collaboration Agreements
We may enter into agreements with collaboration partners for the development and commercialization of our products. These arrangements may include payments contingent on the occurrence of certain events such as development, regulatory or sales-based milestones.
When we account for these agreements, we consider the unique nature, terms and facts and circumstances of each transaction. Below are some example activities and how we account for them:
•Payments to collaboration partners through issuance of common stock as consideration in an asset acquisition are considered share-based payment to non-employees in exchange for goods within the scope of ASC Topic 718, “Compensation - Stock Compensation.” The amount and the timing of the cost recognition of such milestones in our financial statements is driven by the accounting for the specific type of equity instrument under ASC 718 that aligns with the terms of the agreement, including any performance conditions.
•The value associated with in-process research and development (“IPR&D”) in an asset acquisition incurred prior to regulatory approval is expensed as it does not have an alternative future use and is recorded as research and development expense.
•The value associated with IPR&D in an asset acquisition incurred at or after regulatory approval is usually capitalized as an intangible asset and amortized over the periods in which the related products are expected to contribute to future cash flows.
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 $194.2 million, $180.8 million and $160.6 million for the twelve months ended December 31, 2024, 2023 and 2022, 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. Lease right-of-use assets and liabilities with terms of more than 12 months are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the present value is our collateralized incremental borrowing rate unless the interest rate implicit in the lease is readily determinable.
For operating leases, lease expense is recognized on a straight-line basis within operating expenses over the lease term. For finance leases, lease expense is recognized as interest and depreciation; interest using the effective interest method and depreciation on a straight-line basis over the shorter of the estimated useful lives of the assets or, in the instance where title does not transfer at the end of the lease term, the lease term. Short-term leases with lease terms of 12 months or less are not recorded on the balance sheet and are recognized on a straight line basis over the lease term.
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.
Our lease agreements may contain lease components and non-lease components. For certain asset classes, we have elected to account for both of those components as a single lease component. We use a portfolio approach to account for the right-of-use assets and liabilities associated with certain machinery and equipment leases. Variable lease payments may include payments associated with non-lease components, payments that do not depend on a rate or index, or other costs. Variable lease payments are recognized in the period in which the obligation for those payments are 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 these performance/market-based RSUs, or PSUs, 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 PSUs if necessary. The Monte Carlo methodology that we use to estimate the fair value of PSUs 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 PSUs 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.
We account for forfeitures as they occur by reversing any share-based compensation expense related to awards that will not vest.
Net Income Per Share
Basic net income per share attributable to common stockholders is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income 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 RSUs, PSUs, warrants, our senior convertible notes, and collaborative sales-based milestones. Potentially dilutive common shares issuable upon vesting of RSUs, PSUs, 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.
The following table sets forth the computation of basic and diluted net income per share for the periods shown:
Twelve Months Ended
December 31,
202420232022
(In millions, except per share data)
Net income$576.2 $541.5 $341.2 
Add back interest expense, net of tax attributable to assumed conversion of senior convertible notes11.5 12.6 11.0 
Net income - diluted$587.7 $554.1 $352.2 
Net income per common share
Basic$1.46 $1.40 $0.88 
Diluted$1.42 $1.30 $0.82 
Basic weighted average shares outstanding393.6 386.0 389.4 
Dilutive potential securities:
Collaborative sales-based milestones0.2 0.7 — 
RSUs and PSUs0.7 1.1 1.0 
Senior convertible notes15.7 26.2 26.9 
Warrants2.5 11.5 10.2 
Diluted weighted average shares outstanding412.7 425.5 427.5 
Outstanding anti-dilutive securities not included in the calculations of diluted net income per share attributable to common stockholders were as follows:
Twelve Months Ended
December 31,
(In millions)202420232022
RSUs and PSUs1.3 — 0.4 
Recent Accounting Guidance
Recently Adopted Accounting Pronouncements
In November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker, or CODM, and included within each reported measure of segment profit or loss. We adopted ASU 2023-07 in the fourth quarter of 2024 on a retrospective basis, reflecting the application of the new standard in each prior reporting period.
Recently Issued Accounting Pronouncements Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. The ASU requires greater disaggregation of information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The ASU applies to all entities subject to income taxes and is intended to help investors better understand an entity’s exposure to potential changes in jurisdictional tax legislation and assess income tax information that affects cash flow forecasts and capital allocation decisions. The ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The ASU should be applied on a prospective basis although retrospective application is permitted. We are currently evaluating the impact of this standard on our disclosures.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The ASU requires disaggregated disclosure of certain costs and expenses in the notes of the financial statements. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The ASU should be applied on a prospective basis although retrospective application is permitted. We are currently evaluating the impact of this standard on our disclosures.
Recent Securities and Exchange Commission Final Rules Not Yet Implemented
On March 6, 2024, the SEC adopted SEC Release Nos. 33-11275; 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors, to require the disclosure of certain climate-related information in registration statements and annual reports, including Scope 1 and 2 emissions and information about climate-related risks that have materially impacted, or are reasonably likely to have a material impact on, a company’s business strategy, results of operations, or financial condition. In addition, under the final rules, certain disclosures related to severe weather events and other natural conditions will be required in audited financial statements. The disclosure requirements would have begun phasing in for our reports and registration statements including financial information in the fiscal year ending December 31, 2025, however, in April 2024, the SEC issued an order staying the final rules until the completion of judicial review. The SEC has since indicated that it intends to establish a new implementation period following the stay order. We are currently evaluating the impact of this final rule on our disclosures.
v3.25.0.1
Development and Other Agreements
 12 Months Ended
Dec. 31, 2024
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 agreed to jointly develop a certain next-generation CGM product, and potentially 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. In connection with the Restated Collaboration Agreement, we developed, launched and commercialized a CGM product in connection with the collaboration.
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 made upfront, incentive, and the product regulatory approval payments, and payments for contingent sales-based milestones upon the achievement of certain revenue targets.
We account for the contingent milestones payable in shares of our common stock as equity instruments within the scope of ASC Topic 718. The product regulatory approval and sales-based milestones are accounted for as performance-based awards that vest when the performance conditions have been achieved and are recognized when the achievement of the respective contingent milestone is deemed probable. The value of the contingent milestones is based on our closing stock price on December 28, 2018, which was $29.57 per share.
Upfront and Incentive payments
In the fourth quarter of 2018, we made an initial payment for an upfront fee of $250.0 million through the issuance of 7.4 million 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 value of the charge was based on our closing stock price of $29.57 per share on December 28, 2018, the date on which we obtained the necessary regulatory approvals and represents the date the performance- based awards were issued. In 2019, we made a cash incentive payment 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.
Contingent milestones
In the fourth quarter of 2021, we determined the achievement of the regulatory approval milestone to be probable and recorded an $87.1 million research and development charge in our consolidated statements of operations. This charge is associated with in-process research and development obtained in an asset acquisition prior to regulatory approval and therefore does not have an alternative future use.
In the first quarter of 2022, we received regulatory approval and issued 2.9 million shares of our common stock in connection with our achievement of the related milestone.
In the fourth quarter of 2022, we received approval from the Food and Drug Administration and determined the achievement of the sales-based milestones to be probable. As such, we capitalized the full value of the sales-based milestones, $152.4 million, as an intangible asset. The sales-based milestones are contingent upon the achievement of certain revenue targets. The value of the sales-based milestones is based on: 1) 5.2 million shares of our common stock, as agreed upon in November 2018 and 2) our closing stock price on December 28, 2018 of $29.57 per share. December 28, 2018 is the date on which we obtained the necessary regulatory approvals and represents the date the performance- based awards were issued. The intangible asset will be amortized using the straight-line method over its estimated useful life of 64 months through March 2028. The related amortization expense is recognized in cost of sales in our consolidated statements of operations and disclosed in Note 4 “Balance Sheet Details and Other Financial Information—Intangibles, Net” to the consolidated financial statements in Part II, Item 8 of this Annual Report.
In the fourth quarter of 2023, we issued 3.7 million shares of our common stock in connection with our achievement of the first sales-based milestone. See the effective tax rate reconciliation in Note 8 “Income Taxes” to the consolidated financial statements for more information on the tax benefits related to the collaboration agreement milestone share-based payments for the periods presented.
In the first quarter of 2024, we issued 1.5 million shares of our common stock in connection with our achievement of the second sales-based milestone.
All milestones were paid in cash or shares of our common stock, at our election.
v3.25.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
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 provided by our investment managers.
We estimate the fair values of our Level 3 financial instruments based on unobservable inputs and other estimation techniques due to the absence of quoted market prices and inherent lack of liquidity.
The following table summarizes financial assets that we measured at fair value on a recurring basis as of December 31, 2024, classified in accordance with the fair value hierarchy:
Fair Value Measurements Using
(In millions)Level 1Level 2Level 3Total
Cash equivalents$134.2 $— $— $134.2 
Debt securities, available-for-sale:
U.S. government agencies (1)
— 1,150.1 — 1,150.1 
Commercial paper— 312.1 — 312.1 
Corporate debt— 511.1 — 511.1 
Total debt securities, available-for-sale— 1,973.3 — 1,973.3 
Other long-term assets:
Convertible notes receivable— — 10.5 10.5 
Other assets (2)
20.6 — — 20.6 
Total assets measured at fair value on a recurring basis$154.8 $1,973.3 $10.5 $2,138.6 
(1) Includes debt obligations issued by U.S. government-sponsored enterprises or U.S. government agencies.
(2) Includes assets which are primarily 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, 2023, classified in accordance with the fair value hierarchy:
Fair Value Measurements Using
(In millions)Level 1Level 2Level 3Total
Cash equivalents$315.9 $— $— $315.9 
Debt securities, available-for-sale:
U.S. government agencies (1)
— 1,612.5 — 1,612.5 
Commercial paper— 184.7 — 184.7 
Corporate debt— 360.6 — 360.6 
Total debt securities, available-for-sale— 2,157.8 — 2,157.8 
Other assets (2)
15.2 — — 15.2 
Total assets measured at fair value on a recurring basis$331.1 $2,157.8 $— $2,488.9 
(1) Includes debt obligations issued by U.S. government-sponsored enterprises or U.S. government agencies.
(2) Includes assets which are held pursuant to a deferred compensation plan for senior management, which consist mainly of mutual funds.
There were no transfers into or out of Level 3 securities during the twelve months ended December 31, 2024 and 2023.
Fair Value of Senior Convertible Notes
The fair value, based on trading prices (Level 1 inputs), of our senior convertible notes were as follows as of the dates indicated:
Fair Value Measurements Using Level 1
(In millions)December 31, 2024December 31, 2023
Senior Convertible Notes due 2025$1,163.7 $1,262.8 
Senior Convertible Notes due 20281,122.3 1,281.8 
Total fair value of outstanding senior convertible notes$2,286.0 $2,544.6 
For more information on the carrying values of our senior convertible notes, see Note 5 “Debt—Senior Convertible Notes” to the consolidated financial statements.
Foreign Currency and Derivative Financial Instruments
As we conduct business globally in many currencies, we are exposed to foreign exchange rate changes. To limit this exposure, we enter into foreign currency forward contracts to hedge monetary assets and liabilities denominated in foreign currencies. Our foreign currency forward contracts are not designated as hedging instruments. Therefore, changes in the fair values of these contracts are recognized in earnings, thereby offsetting the current earnings effect of the related foreign currency assets and liabilities. The duration of these contracts is generally one month. The derivative gains and losses are included in other income (expense), net in our consolidated statements of operations.
As of December 31, 2024 and December 31, 2023, the notional amounts of outstanding foreign currency forward contracts were $66.0 million and $71.0 million, respectively. The resulting impact on our consolidated financial statements from currency hedging activities was not significant for the twelve months ended December 31, 2024, 2023 and 2022.
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
In accordance with authoritative guidance, we measure certain non-financial assets and liabilities at fair value on a non-recurring basis. These measurements are usually performed using the discounted cash flow method or cost method and Level 3 inputs. These include items such as non-financial assets and liabilities initially measured at fair value in a business combination and non-financial long-lived assets measured at fair value for an impairment assessment. In general, non-financial assets, including goodwill, intangible assets, and property and equipment, are measured at fair value when there are indicators of impairment and are recorded at fair value only when an impairment is recognized.
We hold certain other investments that we do not measure at fair value on a recurring basis. The carrying values of these investments were $119.3 million as of December 31, 2024 and $38.5 million as of December 31, 2023. We include the carrying values of these investments 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 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 effect on the fair values.
There were no significant impairment losses on assets and liabilities measured at fair value on a non-recurring basis during the twelve months ended December 31, 2024 and December 31, 2023. During the fourth quarter 2022, we vacated a leased building and made it available for sublease, resulting in an impairment of its asset group which consisted primarily of leasehold improvements and right-of-use asset. We recorded $23.0 million in impairment losses during the twelve months ended December 31, 2022. See Note 6 “Leases and Other Commitments” to the consolidated financial statements for more information.
v3.25.0.1
Balance Sheet Details and Other Financial Information
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Details and Other Financial Information
4. Balance Sheet Details and Other Financial Information
Short-Term Marketable Securities
Short-term marketable securities, consisting of available-for-sale debt securities, were as follows as of the dates indicated:
December 31, 2024
(In millions)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Market
Value
Debt securities, available-for-sale:
U.S. government agencies (1)
$1,149.4 $1.3 $(0.6)$1,150.1 
Commercial paper312.2 — (0.1)312.1 
Corporate debt511.1 0.4 (0.4)511.1 
Total debt securities, available-for-sale$1,972.7 $1.7 $(1.1)$1,973.3 
(1) Includes debt obligations issued by U.S. government-sponsored enterprises or U.S. government agencies.
December 31, 2023
(In millions)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Market
Value
Debt securities, available-for-sale:
U.S. government agencies (1)
$1,611.8 $1.2 $(0.5)$1,612.5 
Commercial paper184.8 — (0.1)184.7 
Corporate debt360.8 0.1 (0.3)360.6 
Total debt securities, available-for-sale$2,157.4 $1.3 $(0.9)$2,157.8 
(1) Includes debt obligations issued by U.S. government-sponsored enterprises or U.S. government agencies.
As of December 31, 2024, the estimated market values of our short-term debt securities with contractual maturities up to 12 months and up to 18 months were $1.73 billion and $247.7 million, respectively. As of December 31, 2023, the estimated market value of our short-term debt securities with contractual maturities up to 12 months was $2.16 billion. Gross realized gains and losses on sales of our short-term debt securities for the twelve months ended December 31, 2024, 2023 and 2022 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, 2024 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.
Equity Investments
During the twelve months ended December 31, 2024, unrealized gains or losses on equity investments were not significant. During the twelve months ended December 31, 2023, and 2022, we had no unrealized gains or losses on equity investments. Realized gains from the sale of an equity investment were not significant for the twelve months ended December 31, 2024, 2023 and 2022.
Accounts Receivable
December 31,
(In millions)20242023
Accounts receivable$1,014.9 $983.2 
Less: allowance for doubtful accounts(9.2)(9.3)
Total accounts receivable, net$1,005.7 $973.9 
Reserve for prompt payment cash discounts recorded against accounts receivable, excluding allowance for doubtful accounts, was $17.3 million, $13.7 million, $8.3 million as of December 31, 2024, 2023, and 2022, respectively.
Inventory
December 31,
(In millions)20242023
Raw materials$327.1 $319.5 
Work-in-process28.1 30.0 
Finished goods187.4 210.1 
Total inventory$542.6 $559.6 
During the twelve months ended December 31, 2024, 2023 and 2022, we recorded excess and obsolete inventory charges of $53.5 million, $16.6 million and $13.9 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.
Prepaid and Other Current Assets
December 31,
(In millions)20242023
Prepaid expenses$76.3 $58.7 
Prepaid inventory11.2 31.5 
Deferred compensation plan assets18.6 15.2 
Income tax receivables27.9 13.6 
Other current assets39.7 49.3 
Total prepaid and other current assets$173.7 $168.3 
Property and Equipment
December 31,
(In millions)20242023
Land and land improvements$53.1 $34.5 
Building
291.0 190.5 
Furniture and fixtures40.2 36.9 
Computer software and hardware76.6 65.8 
Machinery and equipment908.9 683.3 
Leasehold improvements293.8 283.4 
Construction in progress 354.6 328.1 
Total cost2,018.2 1,622.5 
Less: accumulated depreciation and amortization(678.3)(509.4)
Total property and equipment, net$1,339.9 $1,113.1 
Depreciation expense related to property and equipment for the twelve months ended December 31, 2024, 2023 and 2022 was $181.2 million, $147.4 million and $144.1 million, respectively.
Loss on disposal of property and equipment during the twelve months ended December 31, 2024, 2023 and 2022 recorded in operating expenses was $5.1 million, $0.7 million and $2.2 million, respectively.
 Intangibles, Net
The following table summarizes the components of gross intangible assets, accumulated amortization, and net intangible asset balances as of December 31, 2024 and December 31, 2023:
December 31, 2024
(Dollars in millions)Weighted Average Useful Life
(in years)		Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Verily intangible asset (1)
3.3$152.4 $(59.5)$92.9 
Customer relationships1.817.5 (13.0)4.5 
Acquired technology and intellectual property (2)
7.219.6 (14.7)4.9 
Trademarks and trade name1.63.8 (2.7)1.1 
Intangibles, other0.00.2 (0.2)— 
Total3.4$193.5 $(90.1)$103.4 
December 31, 2023
(Dollars in millions)Weighted Average Useful Life
(in years)		Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Verily intangible (1)
4.3$152.4 $(31.0)$121.4 
Customer relationships2.424.1 (15.0)9.1 
Acquired technology and intellectual property (2)
0.814.6 (12.6)2.0 
Trademarks and trade name2.64.2 (2.2)2.0 
Intangibles, other0.00.2 (0.2)— 
Total4.1$195.5 $(61.0)$134.5 
(1) See Note 2 “Development and Other Agreements” to the consolidated financial statements in Part II, Item 8 of this Annual Report for more information.
(2) Excludes Verily intangible asset.
The following table presents the total amortization expense of finite-lived intangible assets for the twelve months ended December 31, 2024, 2023 and 2022:
Twelve Months Ended
December 31,
(In millions)202420232022
Amortization expense included in cost of sales$29.8 $30.5 $4.3 
Amortization expense included in operating expenses6.7 8.1 7.5 
Total amortization of intangible assets$36.5 $38.6 $11.8 
The following table presents estimated future amortization of the Company’s finite-lived intangible assets as of December 31, 2024:
(In millions)
2025$32.7 
202631.5 
202729.6 
20287.6 
20290.5 
Thereafter1.5 
Total$103.4 
Other Assets
December 31,
(In millions)20242023
Non-marketable equity securities$119.3 $38.5 
Long-term deposits13.8 14.4 
Other assets39.9 22.1 
Total other assets$173.0 $75.0 
Accounts Payable and Accrued Liabilities
December 31,
(In millions)20242023
Accounts payable trade$345.3 $276.4 
Accrued tax, audit, and legal fees38.4 42.6 
Accrued rebates 1,135.9 950.7 
Accrued warranty5.9 12.6 
Income tax payable3.9 7.5
Deferred compensation plan liabilities18.615.2
Other accrued liabilities 37.1 40.5 
Total accounts payable and accrued liabilities$1,585.1 $1,345.5 
Accrued Payroll and Related Expenses
December 31,
(In millions)20242023
Accrued wages, bonus and taxes$74.5 $139.8 
Other accrued employee benefits37.5 31.2 
Total accrued payroll and related expenses$112.0 $171.0 
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, 2024, 2023 and 2022 were as follows:
Twelve Months Ended
December 31,
(In millions)202420232022
Beginning balance$12.6 $12.8 $12.9 
Charges to costs and expenses47.2 51.5 43.0 
Costs incurred(53.9)(51.7)(43.1)
Ending balance$5.9 $12.6 $12.8 
Other Long-Term Liabilities
December 31,
(In millions)20242023
Finance lease obligations$58.5 $58.6 
Deferred revenue, long-term9.5 7.4 
Asset retirement obligation17.0 15.7 
Other tax liabilities44.8 38.7 
Other liabilities18.1 5.2 
Total other long-term liabilities$147.9 $125.6 
Other Income (Expense), Net
Twelve Months Ended
December 31,
(In millions)202420232022
Interest and dividend income$134.2 $135.0 $23.8 
Interest expense(19.0)(20.3)(18.6)
Other expense, net(6.2)(2.0)(5.6)
Total other income (expense), net$109.0 $112.7 $(0.4)
v3.25.0.1
Debt
 12 Months Ended
Dec. 31, 2024
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,
(In millions)20242023
Principal amount:
Senior Convertible Notes due 2025$1,207.5 $1,207.5 
Senior Convertible Notes due 20281,250.0 1,250.0 
Total principal amount2,457.5 2,457.5 
Unamortized debt issuance costs(16.1)(23.3)
Carrying amount of senior convertible notes$2,441.4 $2,434.2 
For our senior convertible notes for which the if-converted value exceeded the principal amount, the amount in excess of principal was as follows as of the dates indicated:
December 31,
(In millions)20242023
Senior Convertible Notes due 2025$— $56.1 
Senior Convertible Notes due 2028— 33.6 
Total by which the notes’ if-converted value exceeds their principal amount$— $89.7 
The following table summarizes the components of interest expense and the effective interest rates for our senior convertible notes for the periods shown:
Twelve Months Ended
December 31,
(In millions)202420232022
Cash interest expense:
Contractual coupon interest (1)
$7.7 $9.1 $8.8 
Non-cash interest expense:
Amortization of debt issuance costs7.2 7.3 5.9 
Total interest expense recognized on senior notes$14.9 $16.4 $14.7 
Effective interest rate:
Senior Convertible Notes due 2023 (2)
*1.1 %1.1 %
Senior Convertible Notes due 20250.5 %0.5 %0.5 %
Senior Convertible Notes due 20280.7 %0.7 %*
(1) Interest on our unsecured senior convertible notes due 2023, or the 2023 Notes, began accruing upon issuance and was payable semi-annually on June 1 and December 1 of each year until the 2023 Notes matured on December 1, 2023. Interest on our unsecured senior convertible notes due 2025, or the 2025 Notes, began accruing upon issuance and is payable semi-annually on May 15 and November 15 of each year. Interest on our unsecured senior convertible notes due 2028, or the 2028 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 2023 Notes matured on December 1, 2023 and are no longer outstanding.
* Not applicable as no notes were outstanding in the relevant period.
Revolving Credit Agreement
Terms of the Revolving Credit Agreement
In June 2023, we entered into the First Amendment to the Second Amended and Restated Credit Agreement, as amended, or the Amended Credit Agreement, which we had previously entered into in October 2021. The Amended Credit Agreement is a five-year revolving credit facility, or the Credit Facility, that provides for an 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. The Amended Credit Agreement will mature on October 13, 2026. Borrowings under the Amended Credit Agreement are available for general corporate purposes, including working capital and capital expenditures.
Information related to availability and outstanding borrowings on our Amended Credit Agreement is as follows as of the date indicated:
December 31,
(In millions)2024
Available principal amount $200.0 
Letters of credit sub-facility25.0 
Outstanding borrowings — 
Outstanding letters of credit7.7 
Total available balance$192.3 
Revolving loans under the Amended Credit Agreement bear interest at our choice of one of three base rates plus a range of applicable rates that are based on our leverage ratio. The minimum and maximum range of applicable rates per annum with respect to any ABR Loan, Term Benchmark Revolving Loan, or RFR Revolving Loan, each as defined in the Amended Credit Agreement under the captions “ABR Spread”, “Term Benchmark”, and “RFR Spread”, or “Unused Commitment Fee Rate”, respectively, are outlined in the following table:
RangeABR SpreadTerm Benchmark/RFR SpreadUnused Commitment Fee Rate
Minimum
0.375%
1.375%
0.175%
Maximum
1.000%
2.000%
0.250%
Our obligations under the Amended 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 Amended 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 Amended 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, 2024.
As of December 31, 2024, we have no other material guarantee facilities or lines of credit.
v3.25.0.1
Leases and Other Commitments
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases and Other Commitments
6. Leases and Other Commitments
Leases
We have leases for certain machinery and facilities, including office, manufacturing and warehouse space facilities under various domestic and international operating and finance lease arrangements. We also have land leases in Penang, Malaysia that expire through 2082 and in Athenry, Ireland that expire in 3023 for the build-out of our international manufacturing facilities. Our leases, excluding our land leases in Malaysia and Ireland, have remaining lease terms of up to sixteen years. Some of the leases include one or more options to extend the leases for up to five years per option. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.
As of December 31, 2024, the maturities of our operating and finance lease liabilities were as shown in the table below:
(In millions)Operating LeasesFinance Leases
2025$26.8 $9.7 
202626.1 8.8 
202720.9 6.9 
202815.9 5.4 
20292.9 5.5 
Thereafter6.9 54.6 
Total future lease cost99.5 90.9 
Less: Imputed interest (12.0)(26.0)
Present value of future payments87.5 64.9 
Less: Current portion(22.5)(6.4)
Long-term portion$65.0 $58.5 
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 $17.0 million and $15.7 million as of December 31, 2024 and 2023, respectively, are included in other long-term liabilities in our consolidated balance sheets.
The components of lease expense for the twelve months ended December 31, 2024, 2023 and 2022 were as follows:
Twelve Months Ended
December 31,
(In millions) 202420232022
Finance lease cost:
Amortization of right-of-use assets$7.2 $6.5 $5.6 
Interest on lease liabilities3.4 3.2 3.3 
Operating lease cost22.4 22.9 22.6 
Right-of-use asset impairment— — 6.3 
Short-term lease cost3.8 2.4 3.5 
Variable lease cost9.0 8.3 8.0 
Total lease cost$45.8 $43.3 $49.3 
As the result of the Company’s transition to a flexible working environment, we vacated a building in San Diego during the fourth quarter of 2022 and made it available for sublease. This resulted in an impairment indicator. We tested the asset group as of November 30, 2022 consisting primarily of the leasehold improvements and right-of-use asset for recoverability by comparing its carrying value to an estimate of future undiscounted cash flows. Based on the results of the recoverability test, we determined that the undiscounted cash flows of the asset group were below its carrying value.
We determined the fair value of the asset group by discounting the estimated future cash flows using level 3 fair value inputs under ASC 820 as described in Note 1 “Organization and Significant Accounting Policies—Intangible Assets and Other Long-Lived Assets”. As a result of the impairment test, we recorded a non-cash charge of $23.0 million for the twelve months ended December 31, 2022 in the “Selling, general and administrative” caption of our consolidated statements of operations. The fair value of the asset group immediately subsequent to the impairment was $2.5 million and was categorized as Level 3 within the ASC 820, “Fair Value Measurements” fair value hierarchy.
Other information related to our leases is as follows:
Twelve Months Ended
December 31,
(Dollars in millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$27.5 $28.1 $26.0 
Operating cash flows from finance leases3.4 3.2 3.1 
Financing cash flows from finance leases13.0 4.7 15.5 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases8.8 7.5 15.6 
Finance leases$14.6 $4.2 $16.1 
Weighted average remaining lease term:
Operating leases4.2 years5.0 years5.5 years
Finance leases12.6 years14.1 years15.2 years
Weighted average discount rate:
Operating leases6.1 %6.1 %6.0 %
Finance leases5.4 %5.3 %5.1 %
Amortization of operating lease right-of-use asset included in cash flows from operating activities in our consolidated statements of cash flows was $16.7 million, $16.5 million, and $16.4 million for the twelve months ended December 31, 2024, 2023 and 2022, respectively.
Purchase Commitments
We are party to various purchase arrangements related to our operational, manufacturing, and research and development activities. We had approximately $954.9 million and $793.0 million of open purchase orders and contractual obligations in the ordinary course of business, the majority of which are due within one year, as of December 31, 2024 and December 31, 2023, respectively
Leases and Other Commitments
6. Leases and Other Commitments
Leases
We have leases for certain machinery and facilities, including office, manufacturing and warehouse space facilities under various domestic and international operating and finance lease arrangements. We also have land leases in Penang, Malaysia that expire through 2082 and in Athenry, Ireland that expire in 3023 for the build-out of our international manufacturing facilities. Our leases, excluding our land leases in Malaysia and Ireland, have remaining lease terms of up to sixteen years. Some of the leases include one or more options to extend the leases for up to five years per option. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option.
As of December 31, 2024, the maturities of our operating and finance lease liabilities were as shown in the table below:
(In millions)Operating LeasesFinance Leases
2025$26.8 $9.7 
202626.1 8.8 
202720.9 6.9 
202815.9 5.4 
20292.9 5.5 
Thereafter6.9 54.6 
Total future lease cost99.5 90.9 
Less: Imputed interest (12.0)(26.0)
Present value of future payments87.5 64.9 
Less: Current portion(22.5)(6.4)
Long-term portion$65.0 $58.5 
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 $17.0 million and $15.7 million as of December 31, 2024 and 2023, respectively, are included in other long-term liabilities in our consolidated balance sheets.
The components of lease expense for the twelve months ended December 31, 2024, 2023 and 2022 were as follows:
Twelve Months Ended
December 31,
(In millions) 202420232022
Finance lease cost:
Amortization of right-of-use assets$7.2 $6.5 $5.6 
Interest on lease liabilities3.4 3.2 3.3 
Operating lease cost22.4 22.9 22.6 
Right-of-use asset impairment— — 6.3 
Short-term lease cost3.8 2.4 3.5 
Variable lease cost9.0 8.3 8.0 
Total lease cost$45.8 $43.3 $49.3 
As the result of the Company’s transition to a flexible working environment, we vacated a building in San Diego during the fourth quarter of 2022 and made it available for sublease. This resulted in an impairment indicator. We tested the asset group as of November 30, 2022 consisting primarily of the leasehold improvements and right-of-use asset for recoverability by comparing its carrying value to an estimate of future undiscounted cash flows. Based on the results of the recoverability test, we determined that the undiscounted cash flows of the asset group were below its carrying value.
We determined the fair value of the asset group by discounting the estimated future cash flows using level 3 fair value inputs under ASC 820 as described in Note 1 “Organization and Significant Accounting Policies—Intangible Assets and Other Long-Lived Assets”. As a result of the impairment test, we recorded a non-cash charge of $23.0 million for the twelve months ended December 31, 2022 in the “Selling, general and administrative” caption of our consolidated statements of operations. The fair value of the asset group immediately subsequent to the impairment was $2.5 million and was categorized as Level 3 within the ASC 820, “Fair Value Measurements” fair value hierarchy.
Other information related to our leases is as follows:
Twelve Months Ended
December 31,
(Dollars in millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$27.5 $28.1 $26.0 
Operating cash flows from finance leases3.4 3.2 3.1 
Financing cash flows from finance leases13.0 4.7 15.5 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases8.8 7.5 15.6 
Finance leases$14.6 $4.2 $16.1 
Weighted average remaining lease term:
Operating leases4.2 years5.0 years5.5 years
Finance leases12.6 years14.1 years15.2 years
Weighted average discount rate:
Operating leases6.1 %6.1 %6.0 %
Finance leases5.4 %5.3 %5.1 %
Amortization of operating lease right-of-use asset included in cash flows from operating activities in our consolidated statements of cash flows was $16.7 million, $16.5 million, and $16.4 million for the twelve months ended December 31, 2024, 2023 and 2022, respectively.
Purchase Commitments
We are party to various purchase arrangements related to our operational, manufacturing, and research and development activities. We had approximately $954.9 million and $793.0 million of open purchase orders and contractual obligations in the ordinary course of business, the majority of which are due within one year, as of December 31, 2024 and December 31, 2023, respectively
v3.25.0.1
Contingencies
 12 Months Ended
Dec. 31, 2024
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.
Between June 2021 through the year ended December 31, 2024, we and certain Abbott Diabetes Care, Inc. (“Abbott”) entities served patent infringement complaints against each other in multiple jurisdictions against certain continuous glucose monitoring products of each company. On December 20, 2024, we and Abbott entered into a settlement and patent cross license agreement (the “Settlement Agreement”) to resolve all outstanding patent litigation between the parties (the “Litigation”). Under the terms of the Settlement Agreement, we granted Abbott and its affiliates, and Abbott and its affiliates granted Dexcom and its affiliates, a worldwide, royalty-free, non-exclusive, fully paid-up license to certain patents and patent applications relating to analyte sensing, including to all the patents asserted in the Litigation. The Settlement Agreement does not obligate us or Abbott to pay any royalties or any other form of financial compensation. As part of the Settlement Agreement, each party, on behalf of itself and its affiliates, has also (i) entered into a covenant not to sue until December 20, 2034; and (ii) agreed on behalf of themselves and their affiliates to refrain from challenging the patents and patent applications licensed under the Settlement Agreement for periods of time which vary depending on the relevant patents or patent applications.
Due to uncertainty surrounding the securities class action litigation and the derivative action, we are unable to reasonably estimate the ultimate outcome of any of the litigation matters at this time. We intend to defend against these claims vigorously in all of these actions.
We do not believe we are party to any other 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.
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
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
December 31,
(In millions)202420232022
United States$659.8 $732.4 $463.5 
Outside of the United States49.2 (22.0)(72.7)
Total$709.0 $710.4 $390.8 
Significant components of the provision for income taxes are as follows:
Twelve Months Ended
December 31,
(In millions)202420232022
Current:
Federal$157.4 $149.1 $32.6 
State16.5 18.1 26.1 
Foreign2.7 56.7 12.5 
Total current income taxes176.6 223.9 71.2 
Deferred:
Federal(55.2)(93.7)(4.3)
State(2.0)14.6 (17.6)
Foreign13.4 24.1 0.3 
Total deferred income taxes(43.8)(55.0)(21.6)
Total$132.8 $168.9 $49.6 
Significant loss and tax credit carryforwards and years of expiration are as follows:
December 31,Year of Expiration
(In millions)20242023
Net operating loss:
Federal$12.1 $20.4 2028
California162.0 167.7 2035
Other states5.8 7.8 2028
UK— — Indefinite
Other foreign— 6.0 
2027
Tax credits:
Federal
R&D credits— — 
Foreign tax credits0.1 0.1 2032
California R&D credits124.9 111.9 Indefinite
California AMT Credits$0.5 $0.5 Indefinite
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 $1.1 million of U.S. research and development tax credits that will expire unused, and is therefore, not reflected in the tax credit carryforwards above. In addition, 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, 2024 and 2023 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.
December 31,
(In millions)20242023
Deferred tax assets:
Net operating loss carryforwards$14.4 $18.1 
Capitalized research and development expenses265.0 233.4 
Tax credits79.2 71.4 
Share-based compensation22.5 27.0 
Fixed and intangible assets263.6 279.8 
Accrued liabilities and reserves87.4 91.0 
Convertible debt16.0 20.6 
Total gross deferred tax assets748.1 741.3 
Less: valuation allowance(221.9)(264.3)
Total net deferred tax assets526.2 477.0 
Deferred tax liabilities:
Fixed assets and acquired intangibles assets(59.3)(60.4)
Other(0.3)— 
Total deferred tax liabilities(59.6)(60.4)
Net deferred tax assets (liabilities)$466.6 $416.6 
In 2024, we further analyzed the prior year intra-entity asset transfer of certain intellectual property between two of our wholly owned foreign subsidiaries. As a result, we reclassified the specific intellectual property from a patent to patent rights according to Irish law. This changed the applicable enacted statutory tax rate from capital gains to passive at 25%.There was no impact to the income statement as the change in rate was fully offset by a change in valuation allowance. The total ending deferred tax asset as of December 31, 2024 is $142.4 million, which remains fully offset by a valuation allowance.
We maintain a valuation allowance of $221.9 million against our California research and development tax credits, foreign tax credits, and certain foreign intangible assets. During the year ended December 31, 2024, the valuation allowance decreased by $42.4 million primarily due to the change in tax rate applied to the fair value of certain intellectual property located in Ireland in connection with the intra-entity transfer of this property, partially offset by the generation of California research and development tax credits.
The reconciliation between our effective tax rate on income (loss) from continuing operations and the statutory rate is as follows:
Twelve Months Ended
December 31,
(In millions)202420232022
U.S. federal statutory tax rate$148.9 $149.2 $82.1 
State income tax, net of federal benefit10.2 7.8 5.4 
Permanent items10.5 (2.7)0.6 
Research and development credits(24.6)(28.3)(23.3)
Foreign tax credit(1.2)— — 
Foreign rate differential1.6 15.8 27.7 
Stock and officers compensation3.8 5.6 (1.2)
Collaboration agreement milestone share-based payment(32.2)(72.1)(52.9)
Change in statutory tax rates51.5 19.4 1.0 
Intellectual property transfer— 63.9 — 
Other6.7 0.3 1.3 
Change in valuation allowance(42.4)10.0 8.9 
Income taxes at effective rates$132.8 $168.9 $49.6 
The following table summarizes the activity related to our gross unrecognized tax benefits:
(In millions)
Balance at January 1, 2022
$46.8 
Decreases related to prior year tax positions
(0.9)
Increases related to current year tax positions
6.1 
Balance at December 31, 202252.0 
Increases related to prior year tax positions
0.8 
Increases related to current year tax positions
6.6 
Balance at December 31, 202359.4 
Increases related to prior year tax positions
0.1 
Increases related to current year tax positions
6.7 
Balance at December 31, 2024$66.2 
Of the total unrecognized tax benefits at December 31, 2024, 2023, and 2022, $40.7 million, $37.0 million and $32.5 million, respectively, would affect our annual effective tax rate if recognized. The indirect effect of the unrecognized tax benefits that, if recognized, would affect our annual effective tax rate is not material for all years presented. Also, the amount of unrecognized tax benefits that, if recognized, would result in adjustments to other tax accounts, is not material for all years presented. Interest and penalties are classified as a component of income tax expense and are not material for all years presented. Although the timing and outcome of audit settlements are uncertain, we do not anticipate a significant change to the unrecognized tax benefits in the next twelve months.
Due to our global business activities, we file income tax returns and are subject to routine compliance audits in numerous jurisdictions, including those material jurisdictions listed in the following table. 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:
JurisdictionFiscal Year
United States (Federal and state)1999 - 2024
United Kingdom2021 - 2024
Malaysia2021 - 2024
Ireland2023 - 2024
We currently operate under a Special Corporate Income Tax Preferential rate in the Philippines, which is in effect for the next 10 years. The prior tax holiday ended in 2023. The impact of the both the tax holiday and preferential rate is immaterial for all years presented. We have been granted a tax incentive by the Malaysian Investment Development Authority (MIDA) in Malaysia, which provides for a tax holiday of up to 15 years, which will not be triggered until we meet certain milestones related to the commencement of operations. The tax incentive had no effect on foreign taxes during 2024, 2023, or 2022. As of December 31, 2024, the tax holiday in Malaysia has not yet been triggered, therefore we are subject to the statutory rate and the related tax expense has been included in total tax expense for 2024.
We have approximately $89.3 million of undistributed earnings attributable to operations in our controlled foreign corporations as of December 31, 2024. We assert that any foreign earnings will be indefinitely reinvested. Accordingly, we have not recorded a liability for taxes associated with these undistributed earnings. If we determine that all or a portion of such foreign earnings are no longer indefinitely reinvested, we may be subject to additional foreign withholding taxes and U.S. state income taxes. Determination of the amount of unrecognized deferred tax liability on these unremitted earnings is not practicable.
The Organization for Economic Co-operation and Development has a framework to implement a global minimum corporate tax of 15% for companies with global revenues and profits above certain thresholds (referred to as Pillar 2), with certain aspects of Pillar 2 effective January 1, 2024 and other aspects effective January 1, 2025. While it is uncertain whether the United States will enact legislation to adopt Pillar 2, certain countries in which we operate have adopted legislation, and other countries in which we operate are in the process of introducing legislation to implement Pillar 2. We have assessed the impact of Pillar 2 on our financial statements and the impact is immaterial.
In June 2024, the State of California enacted S.B. 167, which suspends the use of net operating losses (“NOLs”) for the tax period from January 1, 2024 to December 31, 2026 for net business income of $1.0 million or more, as well as limits the utilization of research and development tax credits to $5.0 million each year. The State of California also passed S.B. 175 to provide for a potential early sunset of NOLs in either 2025 or 2026 if necessary. We have analyzed the effect of both these laws on our financial statements. We are estimating $2.8 million utilization of our California research and development tax credits for tax year ending December 31, 2024, resulting in a corresponding valuation allowance release of the same amount.
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Employee Benefit Plans and Stockholders' Equity
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Employee Benefit Plans and Stockholders' Equity
9. Employee Benefit Plans and Stockholders’ Equity
Defined Contribution Plans
We offer various defined contribution plans for U.S. and international employees. The largest defined contribution plan is the 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 90% 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 6% of eligible compensation. Total matching contributions under the 401(k) Plan were $17.6 million, $14.9 million and $11.1 million for the twelve months ended December 31, 2024, 2023 and 2022, respectively. Our contributions for other defined contribution plans are not significant for the twelve months ended December 31, 2024, 2023 and 2022.
Employee Stock Purchase Plan (“ESPP”)
Under the 2015 Employee Stock Purchase Plan (the 2015 ESPP), amended in December 2019, eligible employees may purchase shares of our common stock at semi-annual intervals through periodic payroll deductions during defined Offering Periods. Payroll deductions may not exceed 10% of the participant’s cash compensation subject to certain limitations, and the purchase price will be 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. A total of 6.0 million shares of common stock are reserved for issuance under the 2015 ESPP. The 2015 ESPP shall continue until the earlier 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.
We issued approximately 0.4 million, 0.3 million and 0.3 million shares of common stock under the 2015 ESPP during the twelve months ended December 31, 2024, 2023 and 2022, respectively. As of December 31, 2024, approximately 2.1 million shares remained available for future issuance under the 2015 ESPP.
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, RSUs, and PSUs 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 authorized to issue up to 39.2 million shares of our common stock under the 2015 Plan. As of December 31, 2024, approximately 12.5 million shares remained available for future issuance under the 2015 Plan. We issue new shares of common stock to satisfy RSU and PSU vesting under our employee equity incentive plans.
RSU awards typically vest in annual installments over three or four years and vesting is subject to continued service. PSUs are granted to a group of senior officers and the number of shares of our common stock to be received at vesting will range from 0% to 200% of the target award based on the achievement of pre-established performance and market goals. PSUs vest approximately three years from the date of grant, subject to continued employment through that date and certification by the Compensation Committee
Share Repurchase Program and Treasury Shares
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 have not yet determined the ultimate disposition of repurchased shares and, consequently, we continue to hold them as treasury shares rather than retiring them. Authorization of future stock repurchase programs is subject to the final determination of our Board of Directors.
The following table summarizes our treasury share activity for the periods shown:
Twelve Months Ended
December 31,
(In millions)202420232022
Shares issued in connection with 2023 Notes conversions——(0.4)
Shares received from Note Hedge—12.20.3
Shares issued in connection with the Restated Collaboration Agreement(1.5)(3.7)(2.9)
Shares repurchased under the 2022 Share Repurchase Program——6.6
Shares repurchased under the 2023 Share Repurchase Program—4.7—
Shares repurchased under the 2024 Share Repurchase Program10.4——
Shares repurchased with 2028 Notes proceeds—1.6—
Shares issued in connection with 2023 Warrants(12.5)——
2024 Share Repurchase Program
In July 2024, our Board of Directors authorized and approved a share repurchase program of up to $750.0 million of our outstanding common stock, with a repurchase period ending no later than June 30, 2025 (the “2024 Share Repurchase Program”). Repurchases of our common stock under the 2024 Share Repurchase Program were permitted to be made from time to time in the open market, in privately negotiated transactions or by other methods, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, at our discretion, and in accordance with the limitations set forth in Rule 10b-18 promulgated under the Exchange Act and other applicable federal and state laws and regulations. The 2024 Share Repurchase Program was completed in August 2024. We repurchased 10.4 million shares of our common stock for $750.0 million under the 2024 Share Repurchase Program.
2023 Share Repurchase Program
In October 2023, our Board of Directors authorized and approved a share repurchase program of up to $500.0 million of our outstanding common stock, with a repurchase period ending no later than October 31, 2024 (the “2023 Share Repurchase Program”). On October 31, 2023, we entered into an accelerated share repurchase agreement (“2023 ASR”) with Bank of America, N.A. to repurchase $500.0 million of our common stock. The final notional amount under the 2023 ASR was $500.0 million or approximately 4.7 million shares of our common stock based on the daily average volume-weighted average price of our common stock during the term of the 2023 ASR, less a discount. The 2023 ASR concluded on December 14, 2023. The 2023 Share Repurchase Program was completed in December 2023.
2022 Share Repurchase Program
In July 2022, a duly authorized committee of our Board of Directors authorized and approved a share repurchase program of up to $700.0 million of our outstanding common stock, with a repurchase period that ended on June 30, 2023 (the “2022 Share Repurchase Program”). On August 1, 2022, we entered into an accelerated share repurchase agreement (“2022 ASR”) with JPMorgan Chase Bank, National Association to repurchase up to $700.0 million of our common stock on an accelerated basis. The final notional amount under the 2022 ASR was $557.7 million or approximately 6.6 million shares of our common stock based on the daily average volume-weighted average price of our common stock during the term of the 2022 ASR, less a discount. The 2022 ASR concluded on September 1, 2022. The 2022 Share Repurchase Program and the remaining authorization of $142.3 million expired on June 30, 2023.
The 2022 ASR and 2023 ASR were forward contracts indexed to our own common stock. The forward contracts met all of the applicable criteria for equity classification, so we did not account for them as a derivative instrument. We have reflected the shares delivered to us by the financial institution as treasury shares as of the dates they were delivered to us in computing weighted average shares outstanding for both basic and diluted net income per share.
Other Treasury Share Activity
During the twelve months ended December 31, 2024, we issued 12.5 million treasury shares to settle the 2023 Warrants. See Note 5 “Debt—Senior Convertible Notes” to the consolidated financial statements for more information.
During the twelve months ended December 31, 2024, we issued 1.5 million treasury shares in connection with our achievement of the second sales-based milestone under the Restated Collaboration Agreement. See Note 2 “Development and Other Agreements—Collaboration with Verily Life Sciences” to the consolidated financial statements for more information.
Equity Award Activity
A summary of RSU and PSU activity under the 2015 Plan for the twelve months ended December 31, 2024, 2023 and 2022 is as follows:
Nonvested RSU and PSU Activity
(In millions, except weighted average grant date fair value)Shares Available for GrantSharesWeighted 
Average
Grant Date
Fair Value		Aggregate
Intrinsic Value
Balance at December 31, 202116.8 3.0 $76.88 
Granted(1.9)1.9 96.79 
Vested— (1.6)63.90 
Forfeited0.4 (0.4)92.54 
Balance at December 31, 202215.3 2.9 94.08 $325.6 
Granted(1.6)1.6 112.01 
Vested— (1.4)88.57 
Forfeited0.2 (0.2)106.34 
Balance at December 31, 202313.9 2.9 105.98 361.2 
Granted(1.7)1.7 131.17 
Vested— (1.3)102.09 
Forfeited0.3 (0.3)115.59 
Balance at December 31, 202412.5 3.0 $121.17 $234.1 
The total vest-date fair value of RSUs and PSUs that vested during the twelve months ended December 31, 2024, 2023 and 2022 was $174.5 million, $157.8 million and $160.1 million, respectively. As of December 31, 2024, 2.7 million unvested RSUs and 0.3 million unvested PSUs were outstanding under the 2015 Plan.
Share-Based Compensation
Our share-based compensation expense is associated with RSUs, PSUs, and ESPP. The following table summarizes our share-based compensation expense included in our consolidated statements of operations for the periods shown:
Twelve Months Ended
December 31,
(In millions)202420232022
Cost of sales$14.4 $14.6 $11.1 
Research and development52.2 45.5 42.7 
Selling, general and administrative103.8 90.7 72.7 
Total share-based compensation expense$170.4 $150.8 $126.5 
Total tax benefit related to share-based compensation expense$43.8 $40.0 $43.2 
As of December 31, 2024, unrecognized estimated compensation costs related to RSUs and PSUs totaled $203.8 million and are expected to be recognized over a weighted-average period of approximately 1.7 years.
We value RSUs at the date of grant using the intrinsic value method. We estimate the fair value of PSUs at the date of grant using the intrinsic value method and the probability that the specified performance criteria will be met. 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
December 31,
202420232022
Risk free interest rate
4.80% - 5.27%
5.20% - 5.47%
0.60% - 3.34%
Dividend yield— %— %— %
Expected volatility of Dexcom common stock
42% - 85%
34% - 48%
45% - 55%
Expected life (in years)0.50.50.5
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Business Segment and Geographic Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Business Segment and Geographic Information
10. Business Segment and Geographic Information
We manage our business on a global consolidated basis within one reportable segment, which is consistent with how our chief operating decision maker (CODM), our President and Chief Executive Officer, reviews our business, makes investment and resource allocation decisions, and assesses operating performance. The majority of our revenue is generated in the United States. The CGM segment derives revenues from the sale of disposable sensors and our Reusable Hardware.
The measures of segment profit or loss that are most consistent with U.S. GAAP used by the CODM to assess performance and allocate resources are operating income and net income. Our CODM also reviews total assets, as reported on our consolidated balance sheets, and purchases of property and equipment, as reported on our consolidated statements of cash flows.
Our CODM uses operating income and net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the Company, acquire companies, or invest in other companies. Operating income is also used to monitor budget versus actual results.
The following table sets forth our segment information for revenue, measures of segment profit or loss, and significant expenses:
Twelve Months Ended
December 31,
(In millions)202420232022
Revenue$4,033.0 $3,622.3 $2,909.8 
Less:
Cost of sales (1)
1,594.8 1,333.4 1,026.7 
Payroll related expenses767.1 726.9 621.1 
Stock-based compensation expense156.0 136.2 115.4 
Marketing expense298.7 264.6 228.3 
Travel related expenses64.8 55.3 37.6 
Supply expenses and clinical trials64.5 46.5 50.3 
Consulting & professional fees227.8 222.2 196.4 
Equipment, office & facility expenses83.8 84.7 80.3 
IT software and data130.6 106.6 86.5 
Depreciation and amortization39.9 41.9 46.7 
Other segment items (2)
5.0 6.3 29.3 
Operating income600.0 597.7 391.2 
Other income (expense), net109.0 112.7 (0.4)
Income before income taxes709.0 710.4 390.8 
Income tax expense132.8 168.9 49.6 
Net income$576.2 $541.5 $341.2 
(1) Includes amounts stated in other significant expense captions.
(2) Other segment items are primarily composed of impairment of assets and bad debt expense.
Twelve Months Ended
December 31,
(In millions)202420232022
Other segment disclosures
Depreciation and amortization (1)
$217.7 $186.0 $155.9 
Expenditures for long-lived assets$358.8 $236.6 $364.8 
Significant noncash items other than depreciation and amortization expense:
Deferred income taxes$43.8 $55.0 $21.6 
(1) Includes depreciation and amortization recorded in both cost of sales and operating expenses.
See Note 4 “Balance Sheet Details and Other Financial Information—Other Income (Expense), Net” to the consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for information about our interest income and interest expense.
See Note 9 “Employee Benefit Plans and Stockholders’ Equity—Share-Based Compensation” to the consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for information about our share-based compensation expense.
Disaggregation of Revenue
We disaggregate revenue by major sales channel and by geographic region. 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.
See Note 1 “Organization and Significant Accounting Policies—Concentration of Credit Risk and Significant Customers” to the consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K for information about our major customers that represent 10% or more of our total revenue.
Revenue by Customer Sales Channel
We sell our CGM systems through a direct sales organization and through distribution arrangements that allow distributors to sell our products. The following table sets forth revenue by major sales channel for the twelve months ended December 31, 2024, 2023 and 2022:
Twelve Months Ended December 31,
202420232022
(In millions)Amount%
of Total		Amount%
of Total		Amount%
of Total
Distributor$3,430.1 85 %$3,095.6 85 %$2,470.8 85 %
Direct602.9 15 %526.7 15 %439.0 15 %
Total revenue$4,033.0 100 %$3,622.3 100 %$2,909.8 100 %
Revenue by Geographic Region
During the twelve months ended December 31, 2024, 2023 and 2022, no individual country outside the United States generated revenue that represented more than 10% of our total revenue. The following table sets forth revenue by our two primary geographical markets, the United States and International, based on the geographic location to which we deliver the components, for the periods shown:
Twelve Months Ended December 31,
202420232022
(In millions)Amount%
of Total		Amount%
of Total		Amount%
of Total
United States$2,889.8 72 %$2,625.3 72 %$2,142.0 74 %
International1,143.2 28 %997.0 28 %767.8 26 %
Total revenue$4,033.0 100 %$3,622.3 100 %$2,909.8 100 %
Long-Lived Assets by Geographic Region
The following table presents our long-lived assets, which consists of property and equipment, net, and operating lease right-of-use assets by geographic region:
December 31,
(In millions)20242023
United States$464.6 $544.1 
Malaysia632.1 515.4 
Other countries (1)
306.0 125.0 
Total long-lived assets$1,402.7 $1,184.5 
(1) No other individual country represented more than 10% of long-lived assets for the periods presented, except for Ireland with $185.7 million of long-lived assets at December 31, 2024.
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SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
 12 Months Ended
Dec. 31, 2024
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)
Twelve Months Ended
December 31,
Allowance for doubtful accounts202420232022
Beginning Balance$9.3 $7.3 $5.4 
Provision for doubtful accounts(0.1)2.0 2.4 
Write-offs and adjustments— — (0.5)
Recoveries— — — 
Ending Balance$9.2 $9.3 $7.3 
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net income $ 576.2 $ 541.5 $ 341.2
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
We have processes in place for assessing, identifying, and managing material risks from cybersecurity threats, which are integrated into our overall enterprise risk management processes. The processes for assessing, identifying and managing material risks from cybersecurity threats, including threats associated with our use of third-party service providers, include identifying the relevant assets that could be affected, determining possible threat sources and threat events, assessing threats based on their potential likelihood and impact, and identifying controls that are in place or necessary to manage and/or mitigate such risks.
We have established cybersecurity and privacy programs to maintain the confidentiality, integrity, availability, and privacy of protected information and ensure compliance with relevant security/privacy regulations, contractual requirements, and industry-standard frameworks. Our cybersecurity program includes annual review and assessment by external, independent third parties, who certify and report on these programs. For example, our Information Security Management System (ISMS) is certified as being in conformity with ISO/IEC 27001 by SRI Quality System Registrar. We maintain cybersecurity and privacy policies and procedures in accordance with industry-standard control frameworks and applicable regulations, laws, and standards. All corporate cybersecurity policies are reviewed and approved by senior leadership at least annually as part of our ISMS.
Our cybersecurity controls, which are the mechanisms in place to prevent, detect and mitigate threats in accordance with our policies and procedures, are based on the regulatory requirements to which we are subject and are monitored and tested both internally and externally by third parties at least annually. These controls include regular system updates and patches, employee training on cybersecurity and privacy requirements, incident reporting, and the use of encryption to secure sensitive information. In addition, we also regularly perform phishing tests of our employees and update our training plan at least annually. We maintain business continuity and disaster recovery capabilities to mitigate interruptions to critical information systems and/or the loss of data and services from the effects of natural or man-made disasters to Dexcom locations. We also provide annual privacy and security training for all employees. Our security training incorporates awareness of cyber threats (including but not limited to malware, ransomware and social engineering attacks), password hygiene, incident reporting process, as well as physical security best practices.
In the last three fiscal years, we have not experienced any material cybersecurity incidents and the expenses we have incurred from security incidents were immaterial. As a result, we do not believe that risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected us, our results of operations and financial condition. However, as discussed under “Risk Factors” in Part I, Item 1A of this Annual Report, cybersecurity threats pose multiple risks to us, including potentially to our results of operations and financial condition. See “Risk Factors — Risks Related to Privacy and Security.” As cybersecurity threats become more frequent, sophisticated and coordinated, it is reasonably likely that we will be required to expend greater resources as we pursue our strategy of continuously modifying and enhancing our protective measures while developing and commercializing products that incorporate our CGM technologies and integrate with the insulin delivery systems or data platforms of our partners. The technology integration and cloud-based depository platforms we continue to focus on can make us more vulnerable to cybersecurity threats, thereby making our pursuit of such strategies more costly.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block]
We have processes in place for assessing, identifying, and managing material risks from cybersecurity threats, which are integrated into our overall enterprise risk management processes. The processes for assessing, identifying and managing material risks from cybersecurity threats, including threats associated with our use of third-party service providers, include identifying the relevant assets that could be affected, determining possible threat sources and threat events, assessing threats based on their potential likelihood and impact, and identifying controls that are in place or necessary to manage and/or mitigate such risks.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
Our Board of Directors is responsible for exercising oversight of management’s identification and management of, and planning for, risks from cybersecurity threats. While the full Board has overall responsibility for risk oversight, the Board has delegated oversight responsibility related to risks from cybersecurity threats to the Board’s Technology Committee. The Technology Committee reports to the Board as necessary with respect to its activities, including making such reports and recommendations to the Board and its other committees as necessary and appropriate and consistent with its purpose, described below.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] Our Board of Directors is responsible for exercising oversight of management’s identification and management of, and planning for, risks from cybersecurity threats. While the full Board has overall responsibility for risk oversight, the Board has delegated oversight responsibility related to risks from cybersecurity threats to the Board’s Technology Committee.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block]
The Technology Committee, comprised of independent Board members, is responsible for reviewing cybersecurity, privacy, data protection and other major technology risk exposures of the Company, the steps management has taken to monitor and control such exposures, and the Company’s compliance with applicable cybersecurity and data privacy laws and industry standards. These reviews are provided at least annually. The Technology Committee receives management updates and reports, primarily through the Company’s Cybersecurity and Privacy Committee, a multidisciplinary team responsible for the overall governance, decision-making, risk management, awareness and compliance for cybersecurity and privacy activities across the Company.
The Cybersecurity and Privacy Committee is co-chaired by our Information Security Officer (ISO), Product Security Officer (PSO), and Chief Privacy Officer (CPO), and its members include executive officers of the Company, including our Chief Technology Officer, Chief Financial Officer, Chief Information Officer, and Chief Legal Officer, as well as representatives from the finance, internal audit, quality, regulatory, and legal teams. Management’s role in assessing and managing the material risks from cybersecurity threats is accomplished primarily through the committee.
Cybersecurity Risk Role of Management [Text Block]
Our Board of Directors is responsible for exercising oversight of management’s identification and management of, and planning for, risks from cybersecurity threats. While the full Board has overall responsibility for risk oversight, the Board has delegated oversight responsibility related to risks from cybersecurity threats to the Board’s Technology Committee. The Technology Committee reports to the Board as necessary with respect to its activities, including making such reports and recommendations to the Board and its other committees as necessary and appropriate and consistent with its purpose, described below.
The Technology Committee, comprised of independent Board members, is responsible for reviewing cybersecurity, privacy, data protection and other major technology risk exposures of the Company, the steps management has taken to monitor and control such exposures, and the Company’s compliance with applicable cybersecurity and data privacy laws and industry standards. These reviews are provided at least annually. The Technology Committee receives management updates and reports, primarily through the Company’s Cybersecurity and Privacy Committee, a multidisciplinary team responsible for the overall governance, decision-making, risk management, awareness and compliance for cybersecurity and privacy activities across the Company.
The Cybersecurity and Privacy Committee is co-chaired by our Information Security Officer (ISO), Product Security Officer (PSO), and Chief Privacy Officer (CPO), and its members include executive officers of the Company, including our Chief Technology Officer, Chief Financial Officer, Chief Information Officer, and Chief Legal Officer, as well as representatives from the finance, internal audit, quality, regulatory, and legal teams. Management’s role in assessing and managing the material risks from cybersecurity threats is accomplished primarily through the committee.
Members of the Cybersecurity and Privacy Committee have broad ranges of expertise and experience in information technology and security. Our ISO, a co-chair of the committee, has over fifteen years of experience in the field of information security management, having previously led security operations and infrastructure and IT functions for a public university campus and a non-profit organization, and holds several licenses and certifications relating to information security, including a Certified Information Systems Security Manager from the Information Systems Audit and Control Association (ISACA), a Certified Information Systems Security Professional (CISSP) from the International Information Security System Security Certification Consortium (ISC2) and several technical cybersecurity certifications from the Global Information Assurance Certification (GIAC). Our PSO, also a co-chair of the committee, has over twenty-five years of previous experience in cyber security architecture and cyber security management for a number of large Fortune 500 technology companies and holds several certifications including CISSP from the International Information Security System Security Certification Consortium, C-CISO from EC-Council, Numerous certifications from Microsoft, CISCO, Juniper, Checkpoint among others and has completed several advanced GIAC security classes from the SANS Institute.
Our ISO reports directly to our Senior Vice President, Chief Information Officer (CIO), who is a member of the committee. She has held this role at Dexcom since 2024 and is responsible for global information technology at Dexcom. Our CIO brings 30 years of diverse strategic and operational experience in IT management, data engineering, AI, digital, ecommerce, infrastructure modernization and supply chain. Prior to Dexcom, our CIO served as Senior Vice President, Chief Information Officer at Bausch + Lomb. Additionally, our CIO has held transformational roles at Johnson & Johnson, Bristol Myers Squibb, American Standard and Price Waterhouse Coopers. She holds a Bachelor of Science degree in Economics and Management Information Systems from the University of Delaware. Our Executive Vice President, Chief Technology Officer (CTO) is also a member of the committee. Our CTO has held this role since 2022 and has 25 years of experience spanning consumer electronics, data storage, IoT and broadband industries. From 2011 to 2022 he worked at Technicolor (now known as Vantiva), most recently serving as Chief Technology Officer and General Manager of the Broadband Business Division. In addition to an MBA, he holds a Master of Science in Mechanical Engineering and a Bachelor of Mechanical Engineering.
The prevention, detection, mitigation and remediation of cybersecurity incidents at Dexcom is accomplished pursuant to various policies, procedures and processes, including incident response plans and the cybersecurity and privacy programs and controls described above under “Risk Management and Strategy.” These measures include escalation protocols through which the Cybersecurity and Privacy Committee is informed about cybersecurity and incidents by our ISO and PSO, who are informed through our business units. As described above, members of the Cybersecurity and Privacy Committee provide updates to the Technology Committee of the Board on a regular basis, and the full Board receives updates from the Technology Committee. In addition, there are protocols in place for immediate escalation in the event of any cybersecurity issues or developments that may require consideration between regularly scheduled Technology Committee or Board meetings.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] While the full Board has overall responsibility for risk oversight, the Board has delegated oversight responsibility related to risks from cybersecurity threats to the Board’s Technology Committee.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block]
Members of the Cybersecurity and Privacy Committee have broad ranges of expertise and experience in information technology and security. Our ISO, a co-chair of the committee, has over fifteen years of experience in the field of information security management, having previously led security operations and infrastructure and IT functions for a public university campus and a non-profit organization, and holds several licenses and certifications relating to information security, including a Certified Information Systems Security Manager from the Information Systems Audit and Control Association (ISACA), a Certified Information Systems Security Professional (CISSP) from the International Information Security System Security Certification Consortium (ISC2) and several technical cybersecurity certifications from the Global Information Assurance Certification (GIAC). Our PSO, also a co-chair of the committee, has over twenty-five years of previous experience in cyber security architecture and cyber security management for a number of large Fortune 500 technology companies and holds several certifications including CISSP from the International Information Security System Security Certification Consortium, C-CISO from EC-Council, Numerous certifications from Microsoft, CISCO, Juniper, Checkpoint among others and has completed several advanced GIAC security classes from the SANS Institute.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
Our ISO reports directly to our Senior Vice President, Chief Information Officer (CIO), who is a member of the committee. She has held this role at Dexcom since 2024 and is responsible for global information technology at Dexcom. Our CIO brings 30 years of diverse strategic and operational experience in IT management, data engineering, AI, digital, ecommerce, infrastructure modernization and supply chain. Prior to Dexcom, our CIO served as Senior Vice President, Chief Information Officer at Bausch + Lomb. Additionally, our CIO has held transformational roles at Johnson & Johnson, Bristol Myers Squibb, American Standard and Price Waterhouse Coopers. She holds a Bachelor of Science degree in Economics and Management Information Systems from the University of Delaware. Our Executive Vice President, Chief Technology Officer (CTO) is also a member of the committee. Our CTO has held this role since 2022 and has 25 years of experience spanning consumer electronics, data storage, IoT and broadband industries. From 2011 to 2022 he worked at Technicolor (now known as Vantiva), most recently serving as Chief Technology Officer and General Manager of the Broadband Business Division. In addition to an MBA, he holds a Master of Science in Mechanical Engineering and a Bachelor of Mechanical Engineering.
The prevention, detection, mitigation and remediation of cybersecurity incidents at Dexcom is accomplished pursuant to various policies, procedures and processes, including incident response plans and the cybersecurity and privacy programs and controls described above under “Risk Management and Strategy.” These measures include escalation protocols through which the Cybersecurity and Privacy Committee is informed about cybersecurity and incidents by our ISO and PSO, who are informed through our business units. As described above, members of the Cybersecurity and Privacy Committee provide updates to the Technology Committee of the Board on a regular basis, and the full Board receives updates from the Technology Committee. In addition, there are protocols in place for immediate escalation in the event of any cybersecurity issues or developments that may require consideration between regularly scheduled Technology Committee or Board meetings.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Organization and Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
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.
We determine the functional currencies of our international subsidiaries by reviewing the environment where each subsidiary primarily generates and expends cash. For international subsidiaries whose functional currencies are the local currencies, we translate the financial statements 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 and in accumulated other comprehensive loss in the equity section of our consolidated balance sheets. We record gains and losses resulting from transactions with customers and vendors that are denominated in currencies other than the functional currency and from certain intercompany transactions in other income (expense), net in our consolidated statements of operations.
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.
We determine the functional currencies of our international subsidiaries by reviewing the environment where each subsidiary primarily generates and expends cash. For international subsidiaries whose functional currencies are the local currencies, we translate the financial statements 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 and in accumulated other comprehensive loss in the equity section of our consolidated balance sheets. We record gains and losses resulting from transactions with customers and vendors that are denominated in currencies other than the functional currency and from certain intercompany transactions in other income (expense), 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 rebates, excess or obsolete inventories and the valuation of inventory, accruals for litigation contingencies, and the amount of our worldwide tax provision and the realizability of deferred tax assets. 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—Uses unadjusted quoted prices that are available in active markets for identical assets or liabilities.
Level 2—Uses 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—Uses 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 estimate the fair value of most of our cash equivalents using Level 1 inputs. We estimate the fair value of our marketable equity securities using Level 1 inputs and we estimate the fair value of our marketable debt securities using Level 2 inputs. 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. See Note 3 “Fair Value Measurements” to the consolidated financial statements for more information.
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. Interest income and realized gains and losses on marketable debt securities are included in other income (expense), 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 (loss) from 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, supranational 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 and Other Financial Information—Short-Term Marketable Securities” to the consolidated financial statements for more information on our marketable securities.
Accounts Receivables and Allowance for Doubtful Accounts
Accounts Receivable and Allowance for Doubtful Accounts
Accounts receivable are generally recorded at the invoiced amount, net of prompt pay discounts, 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. Uncollectible accounts are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a customer account is uncollectible. Generally, receivable balances that are more than one year past due are deemed uncollectible.
Concentration of Credit Risk and Significant Customers
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 a few major 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.
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 capitalize inventory produced in preparation for commercial launches when it becomes probable that the product will receive regulatory approval and that the related costs will be recoverable through the commercialization of the product. A number of factors are considered, including the status of the regulatory application approval process, management’s judgment of probable future commercial use, and net realizable value.
We record adjustments to inventory for potential excess or obsolete inventory, as well as inventory that does not pass quality control testing, 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 disposed of or sold.
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.
Historically, our inventory reserves have been adequate to cover our actual losses. However, if actual product life cycles, product quality or market conditions differ from our assumptions, additional inventory adjustments that would increase cost of sales could be required.
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 also capitalize certain costs incurred for the development of enterprise-level business and finance software that we use internally in our operations. Costs incurred in the application development phase are capitalized while costs related to planning and other preliminary project activities and to post-implementation activities are expensed as incurred.
We calculate depreciation using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are generally three to five years for computer software and hardware, including internal use software, four to fifteen years for machinery and equipment, and five years for furniture and fixtures. Leasehold and land improvements are amortized over the shorter of the estimated useful lives of the assets or the remaining lease term. Buildings are amortized over the shorter of the ownership of the building or forty years. We include the amortization of assets that are recorded under finance leases in depreciation expense. On retirement or disposition, the asset cost and related accumulated depreciation are removed from our consolidated balance sheets and any gain or loss is recognized in our consolidated statements of operations.
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 are tested annually for impairment during the fourth fiscal quarter 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 significant goodwill impairment charges for the twelve months ended December 31, 2024, 2023 or 2022.
The change in goodwill for the twelve months ended December 31, 2024 and 2023 primarily consisted of the divestiture of our non-diabetes distribution business and translation adjustments on our foreign currency denominated goodwill.
Intangible Assets and Other Long-Lived Assets
Intangible assets are included in intangibles and other assets, net in our consolidated balance sheets. We amortize intangible assets with a finite life, such as the customer relationships, acquired technology and intellectual property, trademarks and trade name, and other intangibles, on a straight-line basis over their estimated useful lives, which range from one to fourteen years. We review intangible assets that have finite lives and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. 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.
For transactions other than a business combination, we also capitalize as intangible assets the cost of certain milestones payable by us to collaborative partners and incurred at or after the product has obtained regulatory approval for marketing. The intangible assets associated with these milestones are amortized over the remaining estimated useful life of the underlying asset.
We recorded no significant intangible asset impairment charges for the twelve months ended December 31, 2024, 2023 or 2022.
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 rate on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.
We recognize deferred tax assets to the extent that we believe that these assets are more likely than not to be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, carryback potential if permitted under tax law and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.
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.
We recognize income tax expense for basis differences related to global intangible low-taxed income (“GILTI”) as a period cost if and when incurred. GILTI is a category of income that is earned abroad by U.S.-controlled foreign corporations (CFCs) and is subject to special treatment under the U.S. tax code.
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
We are subject to certain legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business. We review the status of each significant matter quarterly and assess our potential financial exposure. 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, we do not record a liability or an expense but we disclose the range of the possible loss. We base our judgments on the best information available at the time. As additional information becomes available, we reassess the potential liability related to our pending claims and litigation and may revise our estimates. Any revision of our estimates of potential liability could have a material impact on our financial position and operating results.
Comprehensive Income
Comprehensive Income
Comprehensive income consists of two elements, net income and other comprehensive income (loss). We report all components of comprehensive income, including net income, in our financial statements in the period in which they are recognized. Total comprehensive income 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 and the components of other comprehensive income (loss), 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.
Revenue Recognition
Revenue Recognition
We generate our revenue from the sale of disposable sensors and our reusable transmitter and receiver, collectively referred to as Reusable Hardware. We also 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.
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.
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, product returns provision, and prompt payment discounts. We classify these items as a reduction of accounts receivable when we are not required to make a payment and as a liability when we are required to make a payment.
Estimates
We review the adequacy of our estimates for transaction price adjustments and variable consideration at each reporting date. If the actual amounts of consideration we receive differ from our estimates, we would adjust our estimates and that would affect reported revenue in the period that such variances become known. If any of these judgments were to change, it could cause a material increase or decrease in the amount of revenue we report in a particular period.
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 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 chargebacks primarily based on historical experience on a product and program basis, current contract prices under the chargeback programs and channel inventory data.
Product Returns
In accordance with the terms of their distribution agreements, most distributors do not have rights of return. The distributors typically have a limited time frame to notify us of any missing, damaged, defective or non-conforming products. We estimate our product returns primarily 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 discounts based on eligible sales and contractual discount rates.
Revenue Recognition
We record revenue from sales of Components upon transfer of control of the product to the customer. We typically determine transfer of control based on when the product is shipped or delivered and title passes to the customer.
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, 2024 included unbilled accounts receivable of $15.2 million. We expect to invoice and collect all unbilled accounts receivable within twelve months.
We record deferred revenue when cash payments have been received prior to satisfaction of the related performance obligation.
Our performance obligations are generally satisfied within twelve months of the initial contract date. The deferred revenue balances related to performance obligations that will be satisfied after twelve months were $9.5 million as of December 31, 2024 and $7.4 million as of December 31, 2023. These balances are included in other long-term liabilities in our consolidated balance sheets.
Deferred Cost of Sales
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 year or less. We record these costs in selling, general and administrative expense in our consolidated 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 consists of engineering and research expenses related to our sensing technology, clinical trials, regulatory expenses, quality assurance programs, employee compensation, and business process outsourcers.
Our technology includes 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.
Collaboration Agreements
Collaboration Agreements
We may enter into agreements with collaboration partners for the development and commercialization of our products. These arrangements may include payments contingent on the occurrence of certain events such as development, regulatory or sales-based milestones.
When we account for these agreements, we consider the unique nature, terms and facts and circumstances of each transaction. Below are some example activities and how we account for them:
•Payments to collaboration partners through issuance of common stock as consideration in an asset acquisition are considered share-based payment to non-employees in exchange for goods within the scope of ASC Topic 718, “Compensation - Stock Compensation.” The amount and the timing of the cost recognition of such milestones in our financial statements is driven by the accounting for the specific type of equity instrument under ASC 718 that aligns with the terms of the agreement, including any performance conditions.
•The value associated with in-process research and development (“IPR&D”) in an asset acquisition incurred prior to regulatory approval is expensed as it does not have an alternative future use and is recorded as research and development expense.
•The value associated with IPR&D in an asset acquisition incurred at or after regulatory approval is usually capitalized as an intangible asset and amortized over the periods in which the related products are expected to contribute to future cash flows.
Advertising 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.
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. Lease right-of-use assets and liabilities with terms of more than 12 months are recognized at commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the present value is our collateralized incremental borrowing rate unless the interest rate implicit in the lease is readily determinable.
For operating leases, lease expense is recognized on a straight-line basis within operating expenses over the lease term. For finance leases, lease expense is recognized as interest and depreciation; interest using the effective interest method and depreciation on a straight-line basis over the shorter of the estimated useful lives of the assets or, in the instance where title does not transfer at the end of the lease term, the lease term. Short-term leases with lease terms of 12 months or less are not recorded on the balance sheet and are recognized on a straight line basis over the lease term.
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.
Our lease agreements may contain lease components and non-lease components. For certain asset classes, we have elected to account for both of those components as a single lease component. We use a portfolio approach to account for the right-of-use assets and liabilities associated with certain machinery and equipment leases. Variable lease payments may include payments associated with non-lease components, payments that do not depend on a rate or index, or other costs. Variable lease payments are recognized in the period in which the obligation for those payments are 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 these performance/market-based RSUs, or PSUs, 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 PSUs if necessary. The Monte Carlo methodology that we use to estimate the fair value of PSUs 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 PSUs 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.
We account for forfeitures as they occur by reversing any share-based compensation expense related to awards that will not vest.
Net Income Per Share
Net Income Per Share
Basic net income per share attributable to common stockholders is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted net income 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 RSUs, PSUs, warrants, our senior convertible notes, and collaborative sales-based milestones. Potentially dilutive common shares issuable upon vesting of RSUs, PSUs, 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 November 2023, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker, or CODM, and included within each reported measure of segment profit or loss. We adopted ASU 2023-07 in the fourth quarter of 2024 on a retrospective basis, reflecting the application of the new standard in each prior reporting period.
Recently Issued Accounting Pronouncements Not Yet Adopted
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. The ASU requires greater disaggregation of information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The ASU applies to all entities subject to income taxes and is intended to help investors better understand an entity’s exposure to potential changes in jurisdictional tax legislation and assess income tax information that affects cash flow forecasts and capital allocation decisions. The ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The ASU should be applied on a prospective basis although retrospective application is permitted. We are currently evaluating the impact of this standard on our disclosures.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses. The ASU requires disaggregated disclosure of certain costs and expenses in the notes of the financial statements. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The ASU should be applied on a prospective basis although retrospective application is permitted. We are currently evaluating the impact of this standard on our disclosures.
Recent Securities and Exchange Commission Final Rules Not Yet Implemented
On March 6, 2024, the SEC adopted SEC Release Nos. 33-11275; 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors, to require the disclosure of certain climate-related information in registration statements and annual reports, including Scope 1 and 2 emissions and information about climate-related risks that have materially impacted, or are reasonably likely to have a material impact on, a company’s business strategy, results of operations, or financial condition. In addition, under the final rules, certain disclosures related to severe weather events and other natural conditions will be required in audited financial statements. The disclosure requirements would have begun phasing in for our reports and registration statements including financial information in the fiscal year ending December 31, 2025, however, in April 2024, the SEC issued an order staying the final rules until the completion of judicial review. The SEC has since indicated that it intends to establish a new implementation period following the stay order. We are currently evaluating the impact of this final rule on our disclosures.
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Organization and Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule 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
December 31,		As of December 31,
20242023202220242023
Customer A40 %35 %32 %18 %20 %
Customer B**11 %**
Customer C35 %30 %26 %21 %23 %
Customer D42 %37 %29 %27 %27 %
Customer E**10 %**
* Less than 10%
** Total revenue for each customer is net of fees, cash discounts, and rebates directly allocable to that customer. Rebates paid to other entities are excluded; therefore, the combined value may exceed 100%.
Schedule of Basic and Diluted Net Income (Loss) Per Share
The following table sets forth the computation of basic and diluted net income per share for the periods shown:
Twelve Months Ended
December 31,
202420232022
(In millions, except per share data)
Net income$576.2 $541.5 $341.2 
Add back interest expense, net of tax attributable to assumed conversion of senior convertible notes11.5 12.6 11.0 
Net income - diluted$587.7 $554.1 $352.2 
Net income per common share
Basic$1.46 $1.40 $0.88 
Diluted$1.42 $1.30 $0.82 
Basic weighted average shares outstanding393.6 386.0 389.4 
Dilutive potential securities:
Collaborative sales-based milestones0.2 0.7 — 
RSUs and PSUs0.7 1.1 1.0 
Senior convertible notes15.7 26.2 26.9 
Warrants2.5 11.5 10.2 
Diluted weighted average shares outstanding412.7 425.5 427.5 
Schedule of Outstanding Anti-Dilutive Securities Excluded in Diluted Net Income per Share
Outstanding anti-dilutive securities not included in the calculations of diluted net income per share attributable to common stockholders were as follows:
Twelve Months Ended
December 31,
(In millions)202420232022
RSUs and PSUs1.3 — 0.4 
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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2024
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, 2024, classified in accordance with the fair value hierarchy:
Fair Value Measurements Using
(In millions)Level 1Level 2Level 3Total
Cash equivalents$134.2 $— $— $134.2 
Debt securities, available-for-sale:
U.S. government agencies (1)
— 1,150.1 — 1,150.1 
Commercial paper— 312.1 — 312.1 
Corporate debt— 511.1 — 511.1 
Total debt securities, available-for-sale— 1,973.3 — 1,973.3 
Other long-term assets:
Convertible notes receivable— — 10.5 10.5 
Other assets (2)
20.6 — — 20.6 
Total assets measured at fair value on a recurring basis$154.8 $1,973.3 $10.5 $2,138.6 
(1) Includes debt obligations issued by U.S. government-sponsored enterprises or U.S. government agencies.
(2) Includes assets which are primarily 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, 2023, classified in accordance with the fair value hierarchy:
Fair Value Measurements Using
(In millions)Level 1Level 2Level 3Total
Cash equivalents$315.9 $— $— $315.9 
Debt securities, available-for-sale:
U.S. government agencies (1)
— 1,612.5 — 1,612.5 
Commercial paper— 184.7 — 184.7 
Corporate debt— 360.6 — 360.6 
Total debt securities, available-for-sale— 2,157.8 — 2,157.8 
Other assets (2)
15.2 — — 15.2 
Total assets measured at fair value on a recurring basis$331.1 $2,157.8 $— $2,488.9 
(1) Includes debt obligations issued by U.S. government-sponsored enterprises or U.S. government agencies.
(2) Includes assets which are held pursuant to a deferred compensation plan for senior management, which consist mainly of mutual funds.
Schedule of Fair Value of Senior Convertible Notes
The fair value, based on trading prices (Level 1 inputs), of our senior convertible notes were as follows as of the dates indicated:
Fair Value Measurements Using Level 1
(In millions)December 31, 2024December 31, 2023
Senior Convertible Notes due 2025$1,163.7 $1,262.8 
Senior Convertible Notes due 20281,122.3 1,281.8 
Total fair value of outstanding senior convertible notes$2,286.0 $2,544.6 
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Balance Sheet Details and Other Financial Information (Tables)
 12 Months Ended
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Short-Term Marketable Securities
Short-term marketable securities, consisting of available-for-sale debt securities, were as follows as of the dates indicated:
December 31, 2024
(In millions)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Market
Value
Debt securities, available-for-sale:
U.S. government agencies (1)
$1,149.4 $1.3 $(0.6)$1,150.1 
Commercial paper312.2 — (0.1)312.1 
Corporate debt511.1 0.4 (0.4)511.1 
Total debt securities, available-for-sale$1,972.7 $1.7 $(1.1)$1,973.3 
(1) Includes debt obligations issued by U.S. government-sponsored enterprises or U.S. government agencies.
December 31, 2023
(In millions)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Market
Value
Debt securities, available-for-sale:
U.S. government agencies (1)
$1,611.8 $1.2 $(0.5)$1,612.5 
Commercial paper184.8 — (0.1)184.7 
Corporate debt360.8 0.1 (0.3)360.6 
Total debt securities, available-for-sale$2,157.4 $1.3 $(0.9)$2,157.8 
(1) Includes debt obligations issued by U.S. government-sponsored enterprises or U.S. government agencies.
Schedule of Accounts Receivable
December 31,
(In millions)20242023
Accounts receivable$1,014.9 $983.2 
Less: allowance for doubtful accounts(9.2)(9.3)
Total accounts receivable, net$1,005.7 $973.9 
Schedule of Inventory
December 31,
(In millions)20242023
Raw materials$327.1 $319.5 
Work-in-process28.1 30.0 
Finished goods187.4 210.1 
Total inventory$542.6 $559.6 
Schedule of Prepaid and Other Current Assets
December 31,
(In millions)20242023
Prepaid expenses$76.3 $58.7 
Prepaid inventory11.2 31.5 
Deferred compensation plan assets18.6 15.2 
Income tax receivables27.9 13.6 
Other current assets39.7 49.3 
Total prepaid and other current assets$173.7 $168.3 
Schedule of Property and Equipment
December 31,
(In millions)20242023
Land and land improvements$53.1 $34.5 
Building
291.0 190.5 
Furniture and fixtures40.2 36.9 
Computer software and hardware76.6 65.8 
Machinery and equipment908.9 683.3 
Leasehold improvements293.8 283.4 
Construction in progress 354.6 328.1 
Total cost2,018.2 1,622.5 
Less: accumulated depreciation and amortization(678.3)(509.4)
Total property and equipment, net$1,339.9 $1,113.1 
Schedule of Intangible Assets and Weighted Average Amortization Period
The following table summarizes the components of gross intangible assets, accumulated amortization, and net intangible asset balances as of December 31, 2024 and December 31, 2023:
December 31, 2024
(Dollars in millions)Weighted Average Useful Life
(in years)		Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Verily intangible asset (1)
3.3$152.4 $(59.5)$92.9 
Customer relationships1.817.5 (13.0)4.5 
Acquired technology and intellectual property (2)
7.219.6 (14.7)4.9 
Trademarks and trade name1.63.8 (2.7)1.1 
Intangibles, other0.00.2 (0.2)— 
Total3.4$193.5 $(90.1)$103.4 
December 31, 2023
(Dollars in millions)Weighted Average Useful Life
(in years)		Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Verily intangible (1)
4.3$152.4 $(31.0)$121.4 
Customer relationships2.424.1 (15.0)9.1 
Acquired technology and intellectual property (2)
0.814.6 (12.6)2.0 
Trademarks and trade name2.64.2 (2.2)2.0 
Intangibles, other0.00.2 (0.2)— 
Total4.1$195.5 $(61.0)$134.5 
(1) See Note 2 “Development and Other Agreements” to the consolidated financial statements in Part II, Item 8 of this Annual Report for more information.
(2) Excludes Verily intangible asset.
Schedule of Finite-Lived Intangible Assets Amortization Expense
The following table presents the total amortization expense of finite-lived intangible assets for the twelve months ended December 31, 2024, 2023 and 2022:
Twelve Months Ended
December 31,
(In millions)202420232022
Amortization expense included in cost of sales$29.8 $30.5 $4.3 
Amortization expense included in operating expenses6.7 8.1 7.5 
Total amortization of intangible assets$36.5 $38.6 $11.8 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
The following table presents estimated future amortization of the Company’s finite-lived intangible assets as of December 31, 2024:
(In millions)
2025$32.7 
202631.5 
202729.6 
20287.6 
20290.5 
Thereafter1.5 
Total$103.4 
Schedule of Other Assets
December 31,
(In millions)20242023
Non-marketable equity securities$119.3 $38.5 
Long-term deposits13.8 14.4 
Other assets39.9 22.1 
Total other assets$173.0 $75.0 
Schedule of Accounts Payable and Accrued Liabilities
December 31,
(In millions)20242023
Accounts payable trade$345.3 $276.4 
Accrued tax, audit, and legal fees38.4 42.6 
Accrued rebates 1,135.9 950.7 
Accrued warranty5.9 12.6 
Income tax payable3.9 7.5
Deferred compensation plan liabilities18.615.2
Other accrued liabilities 37.1 40.5 
Total accounts payable and accrued liabilities$1,585.1 $1,345.5 
Schedule of Accrued Payroll and Related Expenses
December 31,
(In millions)20242023
Accrued wages, bonus and taxes$74.5 $139.8 
Other accrued employee benefits37.5 31.2 
Total accrued payroll and related expenses$112.0 $171.0 
Schedule of 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, 2024, 2023 and 2022 were as follows:
Twelve Months Ended
December 31,
(In millions)202420232022
Beginning balance$12.6 $12.8 $12.9 
Charges to costs and expenses47.2 51.5 43.0 
Costs incurred(53.9)(51.7)(43.1)
Ending balance$5.9 $12.6 $12.8 
Schedule of Other Long-Term Liabilities
December 31,
(In millions)20242023
Finance lease obligations$58.5 $58.6 
Deferred revenue, long-term9.5 7.4 
Asset retirement obligation17.0 15.7 
Other tax liabilities44.8 38.7 
Other liabilities18.1 5.2 
Total other long-term liabilities$147.9 $125.6 
Schedule of Other Income (Expense), Net
Twelve Months Ended
December 31,
(In millions)202420232022
Interest and dividend income$134.2 $135.0 $23.8 
Interest expense(19.0)(20.3)(18.6)
Other expense, net(6.2)(2.0)(5.6)
Total other income (expense), net$109.0 $112.7 $(0.4)
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Debt (Tables)
 12 Months Ended
Dec. 31, 2024
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,
(In millions)20242023
Principal amount:
Senior Convertible Notes due 2025$1,207.5 $1,207.5 
Senior Convertible Notes due 20281,250.0 1,250.0 
Total principal amount2,457.5 2,457.5 
Unamortized debt issuance costs(16.1)(23.3)
Carrying amount of senior convertible notes$2,441.4 $2,434.2 
Schedule of Converted Value of Notes
For our senior convertible notes for which the if-converted value exceeded the principal amount, the amount in excess of principal was as follows as of the dates indicated:
December 31,
(In millions)20242023
Senior Convertible Notes due 2025$— $56.1 
Senior Convertible Notes due 2028— 33.6 
Total by which the notes’ if-converted value exceeds their principal amount$— $89.7 
The following table summarizes key details of the 2023 Notes, 2025 Notes, and 2028 Notes:
Senior Convertible NotesOffering Completion DateMaturity DateStated Interest RateAggregate Principal Amount
Issued
Net Proceeds(1)
Initial Conversion Rate(2)
(per $1,000 principal amount)
Conversion Price
(per share)
Settlement Methods(3)
2023 Notes(4)
November 2018
December 1, 2023
0.75%
$850.0 million
$836.6 million
24.3476 shares
$41.07
Cash and/or shares
2025 Notes
May 2020
November 15, 2025
0.25%
$1.21 billion
$1.19 billion
6.6620 shares
$150.11
Cash and/or shares
2028 Notes
May 2023
May 15, 2028
0.375%
$1.25 billion
$1.23 billion
6.1571 shares
$162.41
Cash and/or shares
(1) Net proceeds are calculated by deducting the initial purchasers’ discounts and estimated costs directly related to the offering from the aggregate principal amount of the applicable series of notes.
(2) Subject to adjustments as defined in the applicable indentures.
(3) The 2025 Notes and 2028 Notes may be settled in cash, stock, or a combination thereof, solely at our discretion. The 2023 Notes, while outstanding, could be settled in cash, stock, or a combination thereof, solely at our discretion.
(4) The 2023 Notes matured on December 1, 2023 and are no longer outstanding.
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 our senior convertible notes for the periods shown:
Twelve Months Ended
December 31,
(In millions)202420232022
Cash interest expense:
Contractual coupon interest (1)
$7.7 $9.1 $8.8 
Non-cash interest expense:
Amortization of debt issuance costs7.2 7.3 5.9 
Total interest expense recognized on senior notes$14.9 $16.4 $14.7 
Effective interest rate:
Senior Convertible Notes due 2023 (2)
*1.1 %1.1 %
Senior Convertible Notes due 20250.5 %0.5 %0.5 %
Senior Convertible Notes due 20280.7 %0.7 %*
(1) Interest on our unsecured senior convertible notes due 2023, or the 2023 Notes, began accruing upon issuance and was payable semi-annually on June 1 and December 1 of each year until the 2023 Notes matured on December 1, 2023. Interest on our unsecured senior convertible notes due 2025, or the 2025 Notes, began accruing upon issuance and is payable semi-annually on May 15 and November 15 of each year. Interest on our unsecured senior convertible notes due 2028, or the 2028 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 2023 Notes matured on December 1, 2023 and are no longer outstanding.
* Not applicable as no notes were outstanding in the relevant period.
Schedule of Conversion Activity for Senior Convertible Notes See the following table for the details of conversion activity for the 2023 Notes for the fiscal year ended December 31, 2023:
Fiscal PeriodConverted NotesAggregate Principal Amount ConvertedShares Issued for SettlementShares Received from Exercise of 2023 Note Hedge
1/1/2023 - 12/31/2023
2023 Notes
$774.8 million
12.2 million
12.2 million
Schedule of Availability and Outstanding Borrowings on Credit Agreement
Information related to availability and outstanding borrowings on our Amended Credit Agreement is as follows as of the date indicated:
December 31,
(In millions)2024
Available principal amount $200.0 
Letters of credit sub-facility25.0 
Outstanding borrowings — 
Outstanding letters of credit7.7 
Total available balance$192.3 
The minimum and maximum range of applicable rates per annum with respect to any ABR Loan, Term Benchmark Revolving Loan, or RFR Revolving Loan, each as defined in the Amended Credit Agreement under the captions “ABR Spread”, “Term Benchmark”, and “RFR Spread”, or “Unused Commitment Fee Rate”, respectively, are outlined in the following table:
RangeABR SpreadTerm Benchmark/RFR SpreadUnused Commitment Fee Rate
Minimum
0.375%
1.375%
0.175%
Maximum
1.000%
2.000%
0.250%
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Leases and Other Commitments (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Maturity of Operating Lease Liabilities
As of December 31, 2024, the maturities of our operating and finance lease liabilities were as shown in the table below:
(In millions)Operating LeasesFinance Leases
2025$26.8 $9.7 
202626.1 8.8 
202720.9 6.9 
202815.9 5.4 
20292.9 5.5 
Thereafter6.9 54.6 
Total future lease cost99.5 90.9 
Less: Imputed interest (12.0)(26.0)
Present value of future payments87.5 64.9 
Less: Current portion(22.5)(6.4)
Long-term portion$65.0 $58.5 
Schedule of Maturity of Finance Lease Liabilities
As of December 31, 2024, the maturities of our operating and finance lease liabilities were as shown in the table below:
(In millions)Operating LeasesFinance Leases
2025$26.8 $9.7 
202626.1 8.8 
202720.9 6.9 
202815.9 5.4 
20292.9 5.5 
Thereafter6.9 54.6 
Total future lease cost99.5 90.9 
Less: Imputed interest (12.0)(26.0)
Present value of future payments87.5 64.9 
Less: Current portion(22.5)(6.4)
Long-term portion$65.0 $58.5 
Schedule of Components of Lease Expense and Other Information
The components of lease expense for the twelve months ended December 31, 2024, 2023 and 2022 were as follows:
Twelve Months Ended
December 31,
(In millions) 202420232022
Finance lease cost:
Amortization of right-of-use assets$7.2 $6.5 $5.6 
Interest on lease liabilities3.4 3.2 3.3 
Operating lease cost22.4 22.9 22.6 
Right-of-use asset impairment— — 6.3 
Short-term lease cost3.8 2.4 3.5 
Variable lease cost9.0 8.3 8.0 
Total lease cost$45.8 $43.3 $49.3 
Other information related to our leases is as follows:
Twelve Months Ended
December 31,
(Dollars in millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$27.5 $28.1 $26.0 
Operating cash flows from finance leases3.4 3.2 3.1 
Financing cash flows from finance leases13.0 4.7 15.5 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases8.8 7.5 15.6 
Finance leases$14.6 $4.2 $16.1 
Weighted average remaining lease term:
Operating leases4.2 years5.0 years5.5 years
Finance leases12.6 years14.1 years15.2 years
Weighted average discount rate:
Operating leases6.1 %6.1 %6.0 %
Finance leases5.4 %5.3 %5.1 %
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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
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
December 31,
(In millions)202420232022
United States$659.8 $732.4 $463.5 
Outside of the United States49.2 (22.0)(72.7)
Total$709.0 $710.4 $390.8 
Schedule of Components of Income Tax Expense (Benefit)
Significant components of the provision for income taxes are as follows:
Twelve Months Ended
December 31,
(In millions)202420232022
Current:
Federal$157.4 $149.1 $32.6 
State16.5 18.1 26.1 
Foreign2.7 56.7 12.5 
Total current income taxes176.6 223.9 71.2 
Deferred:
Federal(55.2)(93.7)(4.3)
State(2.0)14.6 (17.6)
Foreign13.4 24.1 0.3 
Total deferred income taxes(43.8)(55.0)(21.6)
Total$132.8 $168.9 $49.6 
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)20242023
Net operating loss:
Federal$12.1 $20.4 2028
California162.0 167.7 2035
Other states5.8 7.8 2028
UK— — Indefinite
Other foreign— 6.0 
2027
Tax credits:
Federal
R&D credits— — 
Foreign tax credits0.1 0.1 2032
California R&D credits124.9 111.9 Indefinite
California AMT Credits$0.5 $0.5 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)20242023
Net operating loss:
Federal$12.1 $20.4 2028
California162.0 167.7 2035
Other states5.8 7.8 2028
UK— — Indefinite
Other foreign— 6.0 
2027
Tax credits:
Federal
R&D credits— — 
Foreign tax credits0.1 0.1 2032
California R&D credits124.9 111.9 Indefinite
California AMT Credits$0.5 $0.5 Indefinite
Schedule of Deferred Tax Assets and Liabilities
December 31,
(In millions)20242023
Deferred tax assets:
Net operating loss carryforwards$14.4 $18.1 
Capitalized research and development expenses265.0 233.4 
Tax credits79.2 71.4 
Share-based compensation22.5 27.0 
Fixed and intangible assets263.6 279.8 
Accrued liabilities and reserves87.4 91.0 
Convertible debt16.0 20.6 
Total gross deferred tax assets748.1 741.3 
Less: valuation allowance(221.9)(264.3)
Total net deferred tax assets526.2 477.0 
Deferred tax liabilities:
Fixed assets and acquired intangibles assets(59.3)(60.4)
Other(0.3)— 
Total deferred tax liabilities(59.6)(60.4)
Net deferred tax assets (liabilities)$466.6 $416.6 
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
December 31,
(In millions)202420232022
U.S. federal statutory tax rate$148.9 $149.2 $82.1 
State income tax, net of federal benefit10.2 7.8 5.4 
Permanent items10.5 (2.7)0.6 
Research and development credits(24.6)(28.3)(23.3)
Foreign tax credit(1.2)— — 
Foreign rate differential1.6 15.8 27.7 
Stock and officers compensation3.8 5.6 (1.2)
Collaboration agreement milestone share-based payment(32.2)(72.1)(52.9)
Change in statutory tax rates51.5 19.4 1.0 
Intellectual property transfer— 63.9 — 
Other6.7 0.3 1.3 
Change in valuation allowance(42.4)10.0 8.9 
Income taxes at effective rates$132.8 $168.9 $49.6 
Schedule of Unrecognized Tax Benefits
The following table summarizes the activity related to our gross unrecognized tax benefits:
(In millions)
Balance at January 1, 2022
$46.8 
Decreases related to prior year tax positions
(0.9)
Increases related to current year tax positions
6.1 
Balance at December 31, 202252.0 
Increases related to prior year tax positions
0.8 
Increases related to current year tax positions
6.6 
Balance at December 31, 202359.4 
Increases related to prior year tax positions
0.1 
Increases related to current year tax positions
6.7 
Balance at December 31, 2024$66.2 
Schedule of Years Remaining Subject to Audit by Major Jurisdiction The years remaining subject to audit, by major jurisdiction, are as follows:
JurisdictionFiscal Year
United States (Federal and state)1999 - 2024
United Kingdom2021 - 2024
Malaysia2021 - 2024
Ireland2023 - 2024
v3.25.0.1
Employee Benefit Plans and Stockholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Treasury Share Activity Table Text Block
The following table summarizes our treasury share activity for the periods shown:
Twelve Months Ended
December 31,
(In millions)202420232022
Shares issued in connection with 2023 Notes conversions——(0.4)
Shares received from Note Hedge—12.20.3
Shares issued in connection with the Restated Collaboration Agreement(1.5)(3.7)(2.9)
Shares repurchased under the 2022 Share Repurchase Program——6.6
Shares repurchased under the 2023 Share Repurchase Program—4.7—
Shares repurchased under the 2024 Share Repurchase Program10.4——
Shares repurchased with 2028 Notes proceeds—1.6—
Shares issued in connection with 2023 Warrants(12.5)——
Schedule of RSU and PSU Activity
A summary of RSU and PSU activity under the 2015 Plan for the twelve months ended December 31, 2024, 2023 and 2022 is as follows:
Nonvested RSU and PSU Activity
(In millions, except weighted average grant date fair value)Shares Available for GrantSharesWeighted 
Average
Grant Date
Fair Value		Aggregate
Intrinsic Value
Balance at December 31, 202116.8 3.0 $76.88 
Granted(1.9)1.9 96.79 
Vested— (1.6)63.90 
Forfeited0.4 (0.4)92.54 
Balance at December 31, 202215.3 2.9 94.08 $325.6 
Granted(1.6)1.6 112.01 
Vested— (1.4)88.57 
Forfeited0.2 (0.2)106.34 
Balance at December 31, 202313.9 2.9 105.98 361.2 
Granted(1.7)1.7 131.17 
Vested— (1.3)102.09 
Forfeited0.3 (0.3)115.59 
Balance at December 31, 202412.5 3.0 $121.17 $234.1 
Schedule of Share-Based Compensation Expenses The following table summarizes our share-based compensation expense included in our consolidated statements of operations for the periods shown:
Twelve Months Ended
December 31,
(In millions)202420232022
Cost of sales$14.4 $14.6 $11.1 
Research and development52.2 45.5 42.7 
Selling, general and administrative103.8 90.7 72.7 
Total share-based compensation expense$170.4 $150.8 $126.5 
Total tax benefit related to share-based compensation expense$43.8 $40.0 $43.2 
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
December 31,
202420232022
Risk free interest rate
4.80% - 5.27%
5.20% - 5.47%
0.60% - 3.34%
Dividend yield— %— %— %
Expected volatility of Dexcom common stock
42% - 85%
34% - 48%
45% - 55%
Expected life (in years)0.50.50.5
v3.25.0.1
Business Segment and Geographic Information (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Revenue from External Customers by Geographic Areas The following table sets forth revenue by our two primary geographical markets, the United States and International, based on the geographic location to which we deliver the components, for the periods shown:
Twelve Months Ended December 31,
202420232022
(In millions)Amount%
of Total		Amount%
of Total		Amount%
of Total
United States$2,889.8 72 %$2,625.3 72 %$2,142.0 74 %
International1,143.2 28 %997.0 28 %767.8 26 %
Total revenue$4,033.0 100 %$3,622.3 100 %$2,909.8 100 %
The following table presents our long-lived assets, which consists of property and equipment, net, and operating lease right-of-use assets by geographic region:
December 31,
(In millions)20242023
United States$464.6 $544.1 
Malaysia632.1 515.4 
Other countries (1)
306.0 125.0 
Total long-lived assets$1,402.7 $1,184.5 
(1) No other individual country represented more than 10% of long-lived assets for the periods presented, except for Ireland with $185.7 million of long-lived assets at December 31, 2024.
Schedule of Disaggregation of Revenue The following table sets forth revenue by major sales channel for the twelve months ended December 31, 2024, 2023 and 2022:
Twelve Months Ended December 31,
202420232022
(In millions)Amount%
of Total		Amount%
of Total		Amount%
of Total
Distributor$3,430.1 85 %$3,095.6 85 %$2,470.8 85 %
Direct602.9 15 %526.7 15 %439.0 15 %
Total revenue$4,033.0 100 %$3,622.3 100 %$2,909.8 100 %
Schedule of Segment Revenue, Segment Profit or Loss, and Significant Segment Expenses
The following table sets forth our segment information for revenue, measures of segment profit or loss, and significant expenses:
Twelve Months Ended
December 31,
(In millions)202420232022
Revenue$4,033.0 $3,622.3 $2,909.8 
Less:
Cost of sales (1)
1,594.8 1,333.4 1,026.7 
Payroll related expenses767.1 726.9 621.1 
Stock-based compensation expense156.0 136.2 115.4 
Marketing expense298.7 264.6 228.3 
Travel related expenses64.8 55.3 37.6 
Supply expenses and clinical trials64.5 46.5 50.3 
Consulting & professional fees227.8 222.2 196.4 
Equipment, office & facility expenses83.8 84.7 80.3 
IT software and data130.6 106.6 86.5 
Depreciation and amortization39.9 41.9 46.7 
Other segment items (2)
5.0 6.3 29.3 
Operating income600.0 597.7 391.2 
Other income (expense), net109.0 112.7 (0.4)
Income before income taxes709.0 710.4 390.8 
Income tax expense132.8 168.9 49.6 
Net income$576.2 $541.5 $341.2 
(1) Includes amounts stated in other significant expense captions.
(2) Other segment items are primarily composed of impairment of assets and bad debt expense.
Twelve Months Ended
December 31,
(In millions)202420232022
Other segment disclosures
Depreciation and amortization (1)
$217.7 $186.0 $155.9 
Expenditures for long-lived assets$358.8 $236.6 $364.8 
Significant noncash items other than depreciation and amortization expense:
Deferred income taxes$43.8 $55.0 $21.6 
(1) Includes depreciation and amortization recorded in both cost of sales and operating expenses.
v3.25.0.1
Organization and Significant Accounting Policies - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Organization And Summary Of Significant Accounting Policies [Line Items]      
Maturity threshold of investments classified to cash equivalents 90 days    
Goodwill impairment charges $ 0 $ 0 $ 0
Intangible asset, useful life (in years) 3 years 4 months 24 days 4 years 1 month 6 days  
Intangible asset impairment charges $ 0 $ 0 0
Unbilled accounts receivable 15,200,000    
Deferred revenue, long-term 9,500,000 7,400,000  
Advertising costs $ 194,200,000 $ 180,800,000 $ 160,600,000
Minimum      
Organization And Summary Of Significant Accounting Policies [Line Items]      
Intangible asset, useful life (in years) 1 year    
Customer contract payment terms (in days) 30 days    
Maximum      
Organization And Summary Of Significant Accounting Policies [Line Items]      
Intangible asset, useful life (in years) 14 years    
Customer contract payment terms (in days) 90 days    
Amortization period for incentive compensation costs (in years) 1 year    
Computer software and hardware | Minimum      
Organization And Summary Of Significant Accounting Policies [Line Items]      
Property, Plant and Equipment, Useful Life (in years) 3 years    
Computer software and hardware | Maximum      
Organization And Summary Of Significant Accounting Policies [Line Items]      
Property, Plant and Equipment, Useful Life (in years) 5 years    
Machinery and equipment | Minimum      
Organization And Summary Of Significant Accounting Policies [Line Items]      
Property, Plant and Equipment, Useful Life (in years) 4 years    
Machinery and equipment | Maximum      
Organization And Summary Of Significant Accounting Policies [Line Items]      
Property, Plant and Equipment, Useful Life (in years) 15 years    
Furniture and fixtures      
Organization And Summary Of Significant Accounting Policies [Line Items]      
Property, Plant and Equipment, Useful Life (in years) 5 years    
Building | Maximum      
Organization And Summary Of Significant Accounting Policies [Line Items]      
Property, Plant and Equipment, Useful Life (in years) 40 years    
v3.25.0.1
Organization and Significant Accounting Policies - Schedule of Percentage of Total Revenues and Accounts Receivable by Customer (Details) - Customer concentration risk
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue | Customer A      
Concentration Risk [Line Items]      
Concentration risk (as a percent) 40.00% 35.00% 32.00%
Revenue | Customer B      
Concentration Risk [Line Items]      
Concentration risk (as a percent)     11.00%
Revenue | Customer C      
Concentration Risk [Line Items]      
Concentration risk (as a percent) 35.00% 30.00% 26.00%
Revenue | Customer D      
Concentration Risk [Line Items]      
Concentration risk (as a percent) 42.00% 37.00% 29.00%
Revenue | Customer E      
Concentration Risk [Line Items]      
Concentration risk (as a percent)     10.00%
Gross Accounts Receivable | Customer A      
Concentration Risk [Line Items]      
Concentration risk (as a percent) 18.00% 20.00%  
Gross Accounts Receivable | Customer C      
Concentration Risk [Line Items]      
Concentration risk (as a percent) 21.00% 23.00%  
Gross Accounts Receivable | Customer D      
Concentration Risk [Line Items]      
Concentration risk (as a percent) 27.00% 27.00%  
v3.25.0.1
Organization and Significant Accounting Policies - Schedule of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Net income $ 576.2 $ 541.5 $ 341.2
Add back interest expense, net of tax attributable to assumed conversion of senior convertible notes 11.5 12.6 11.0
Net income - diluted $ 587.7 $ 554.1 $ 352.2
Basic net income per share (in usd per share) $ 1.46 $ 1.40 $ 0.88
Diluted net income per share (in usd per share) $ 1.42 $ 1.30 $ 0.82
Basic weighted average shares outstanding (in shares) 393.6 386.0 389.4
Diluted weighted average shares outstanding (in shares) 412.7 425.5 427.5
Collaborative sales-based milestones      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dilutive potential securities (in shares) 0.2 0.7 0.0
RSUs and PSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dilutive potential securities (in shares) 0.7 1.1 1.0
Senior convertible notes      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dilutive potential securities (in shares) 15.7 26.2 26.9
Warrants      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dilutive potential securities (in shares) 2.5 11.5 10.2
v3.25.0.1
Organization and Significant Accounting Policies - Schedule of Outstanding Anti-Dilutive Securities Excluded in Diluted Net Income (Loss) per Share (Details) - shares
shares in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
RSUs and PSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 1.3 0.0 0.4
v3.25.0.1
Development and Other Agreements (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2022
Dec. 31, 2021
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2024
Dec. 31, 2022
Dec. 28, 2018
Development Agreements [Line Items]                  
Shares Issued In Connection With The Restated Collaboration Agreement     2,900,000            
Gross Carrying Amount   $ 195.5         $ 193.5    
Potential common stock issued shares (in shares) 1,500,000                
Verily Life Sciences | Collaborative Arrangement                  
Development Agreements [Line Items]                  
Amortization period (in months)               64 months  
Collaborative Arrangement, Initial Payment | Verily Life Sciences | Collaborative Arrangement                  
Development Agreements [Line Items]                  
Closing stock price (in usd per share)                 $ 29.57
Initial payment on collaborative agreement         $ 250.0        
Issuance of common stock in connection with acquisition, shares (in shares)         7,400,000        
Collaborative research and development fee       $ 87.1 $ 217.7        
Collaborative Arrangement, Milestone Payments | Verily Life Sciences | Collaborative Arrangement                  
Development Agreements [Line Items]                  
Collaborative research and development fee           $ 3.2      
Gross Carrying Amount               $ 152.4  
Potential future common stock issuable (in shares)                 5,200,000
Potential common stock issued shares (in shares)   3,700,000              
v3.25.0.1
Fair Value Measurements - Schedule of Fair Value Hierarchy for Financial Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 134.2 $ 315.9
Debt securities, available-for-sale 1,973.3 2,157.8
Convertible notes receivable 10.5  
Other assets 20.6 15.2
Total assets measured at fair value on a recurring basis 2,138.6 2,488.9
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 134.2 315.9
Debt securities, available-for-sale 0.0 0.0
Convertible notes receivable 0.0  
Other assets 20.6 15.2
Total assets measured at fair value on a recurring basis 154.8 331.1
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0.0 0.0
Debt securities, available-for-sale 1,973.3 2,157.8
Convertible notes receivable 0.0  
Other assets 0.0 0.0
Total assets measured at fair value on a recurring basis 1,973.3 2,157.8
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0.0 0.0
Debt securities, available-for-sale 0.0 0.0
Convertible notes receivable 10.5  
Other assets 0.0 0.0
Total assets measured at fair value on a recurring basis 10.5 0.0
U.S. government agencies    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities, available-for-sale 1,150.1 1,612.5
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 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 1,150.1 1,612.5
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 0.0
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities, available-for-sale 312.1 184.7
Commercial paper | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities, available-for-sale 0.0 0.0
Commercial paper | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities, available-for-sale 312.1 184.7
Commercial paper | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities, available-for-sale 0.0 0.0
Corporate debt    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities, available-for-sale 511.1 360.6
Corporate debt | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities, available-for-sale 0.0 0.0
Corporate debt | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities, available-for-sale 511.1 360.6
Corporate debt | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt securities, available-for-sale $ 0.0 $ 0.0
v3.25.0.1
Fair Value Measurements - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Transfers in or out of Level 3 securities $ 0 $ 0  
Carrying values of investments 119,300,000 38,500,000  
Impairment losses $ 0 0 $ 23,000,000
Designated as Hedging Instrument | Foreign Exchange Forward      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Term of derivative contract 1 month    
Notional amount of outstanding hedge to currency risk $ 66,000,000.0 $ 71,000,000.0  
v3.25.0.1
Fair Value Measurements - Schedule of Fair Value of Senior Convertible Notes (Details) - Senior Notes - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of outstanding senior convertible notes $ 2,286.0 $ 2,544.6
Senior Convertible Notes due 2025    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of outstanding senior convertible notes 1,163.7 1,262.8
Senior Convertible Notes due 2028    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of outstanding senior convertible notes $ 1,122.3 $ 1,281.8
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Short-Term Marketable Securities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Condensed Financial Statements, Captions [Line Items]    
Amortized Cost $ 1,972.7 $ 2,157.4
Gross Unrealized Gains 1.7 1.3
Gross Unrealized Losses (1.1) (0.9)
Estimated Market Value 1,973.3 2,157.8
U.S. government agencies    
Condensed Financial Statements, Captions [Line Items]    
Amortized Cost 1,149.4 1,611.8
Gross Unrealized Gains 1.3 1.2
Gross Unrealized Losses (0.6) (0.5)
Estimated Market Value 1,150.1 1,612.5
Commercial paper    
Condensed Financial Statements, Captions [Line Items]    
Amortized Cost 312.2 184.8
Gross Unrealized Gains 0.0 0.0
Gross Unrealized Losses (0.1) (0.1)
Estimated Market Value 312.1 184.7
Corporate debt    
Condensed Financial Statements, Captions [Line Items]    
Amortized Cost 511.1 360.8
Gross Unrealized Gains 0.4 0.1
Gross Unrealized Losses (0.4) (0.3)
Estimated Market Value $ 511.1 $ 360.6
v3.25.0.1
Balance Sheet Details and Other Financial Information - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Condensed Financial Statements, Captions [Line Items]      
Term of debt instrument (in months)   12 months  
Current available-for-sale securities $ 1,730,000,000 $ 2,160,000,000  
Noncurrent available-for-sale securities 247,700,000    
Unrealized gains recognized during the reporting period on equity investments still held at the reporting date 0 0 $ 0
Cash discounts reserve 17,300,000 13,700,000 8,300,000
Depreciation expense 181,200,000 147,400,000 144,100,000
Loss on disposal of machinery and equipment $ 5,100,000 700,000 2,200,000
Minimum      
Condensed Financial Statements, Captions [Line Items]      
Term of debt instrument (in months) 12 months    
Maximum      
Condensed Financial Statements, Captions [Line Items]      
Term of debt instrument (in months) 18 months    
Receiver Product Component      
Condensed Financial Statements, Captions [Line Items]      
Inventory write-down $ 53,500,000 $ 16,600,000 $ 13,900,000
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Accounts Receivable (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accounts receivable $ 1,014.9 $ 983.2
Less: allowance for doubtful accounts (9.2) (9.3)
Total accounts receivable, net $ 1,005.7 $ 973.9
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Inventory (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 327.1 $ 319.5
Work-in-process 28.1 30.0
Finished goods 187.4 210.1
Total inventory $ 542.6 $ 559.6
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Prepaid and Other Current Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Prepaid expenses $ 76.3 $ 58.7
Prepaid inventory 11.2 31.5
Deferred compensation plan assets 18.6 15.2
Income tax receivables 27.9 13.6
Other current assets 39.7 49.3
Total prepaid and other current assets $ 173.7 $ 168.3
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Total cost $ 2,018.2 $ 1,622.5
Less: accumulated depreciation and amortization (678.3) (509.4)
Total property and equipment, net 1,339.9 1,113.1
Land and land improvements    
Property, Plant and Equipment [Line Items]    
Total cost 53.1 34.5
Building    
Property, Plant and Equipment [Line Items]    
Total cost 291.0 190.5
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total cost 40.2 36.9
Computer software and hardware    
Property, Plant and Equipment [Line Items]    
Total cost 76.6 65.8
Machinery and equipment    
Property, Plant and Equipment [Line Items]    
Total cost 908.9 683.3
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total cost 293.8 283.4
Construction in progress    
Property, Plant and Equipment [Line Items]    
Total cost $ 354.6 $ 328.1
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Intangible Net (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 3 years 4 months 24 days 4 years 1 month 6 days
Gross Carrying Amount $ 193.5 $ 195.5
Accumulated Amortization (90.1) (61.0)
Net Carrying Amount $ 103.4 $ 134.5
Verily intangible asset    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 3 years 3 months 18 days 4 years 3 months 18 days
Gross Carrying Amount $ 152.4 $ 152.4
Accumulated Amortization (59.5) (31.0)
Net Carrying Amount $ 92.9 $ 121.4
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 1 year 9 months 18 days 2 years 4 months 24 days
Gross Carrying Amount $ 17.5 $ 24.1
Accumulated Amortization (13.0) (15.0)
Net Carrying Amount $ 4.5 $ 9.1
Acquired technology and intellectual property    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 7 years 2 months 12 days 9 months 18 days
Gross Carrying Amount $ 19.6 $ 14.6
Accumulated Amortization (14.7) (12.6)
Net Carrying Amount $ 4.9 $ 2.0
Trademarks and trade name    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 1 year 7 months 6 days 2 years 7 months 6 days
Gross Carrying Amount $ 3.8 $ 4.2
Accumulated Amortization (2.7) (2.2)
Net Carrying Amount $ 1.1 $ 2.0
Intangibles, other    
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Useful Life (in years) 0 years 0 years
Gross Carrying Amount $ 0.2 $ 0.2
Accumulated Amortization (0.2) (0.2)
Net Carrying Amount $ 0.0 $ 0.0
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Amortization Expenses of Intangible Assets, Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Amortization expense included in cost of sales $ 29.8 $ 30.5 $ 4.3
Amortization expense included in operating expenses 6.7 8.1 7.5
Total amortization of intangible assets $ 36.5 $ 38.6 $ 11.8
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
2025 $ 32.7  
2026 31.5  
2027 29.6  
2028 7.6  
2029 0.5  
Thereafter 1.5  
Net Carrying Amount $ 103.4 $ 134.5
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Other Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Non-marketable equity securities $ 119.3 $ 38.5
Long-term deposits 13.8 14.4
Other assets 39.9 22.1
Total other assets $ 173.0 $ 75.0
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Accounts payable trade $ 345.3 $ 276.4    
Accrued tax, audit, and legal fees 38.4 42.6    
Accrued rebates 1,135.9 950.7    
Accrued warranty 5.9 12.6 $ 12.8 $ 12.9
Income tax payable 3.9 7.5    
Deferred compensation plan liabilities 18.6 15.2    
Other accrued liabilities 37.1 40.5    
Total accounts payable and accrued liabilities $ 1,585.1 $ 1,345.5    
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Accrued Payroll and Related Expenses (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued wages, bonus and taxes $ 74.5 $ 139.8
Other accrued employee benefits 37.5 31.2
Total accrued payroll and related expenses $ 112.0 $ 171.0
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Accrued Warranty (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]      
Beginning balance $ 12.6 $ 12.8 $ 12.9
Charges to costs and expenses 47.2 51.5 43.0
Costs incurred (53.9) (51.7) (43.1)
Ending balance $ 5.9 $ 12.6 $ 12.8
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Other Long-Term Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Finance lease obligations $ 58.5 $ 58.6
Deferred revenue, long-term 9.5 7.4
Asset retirement obligation 17.0 15.7
Other tax liabilities 44.8 38.7
Other liabilities 18.1 5.2
Total other long-term liabilities $ 147.9 $ 125.6
v3.25.0.1
Balance Sheet Details and Other Financial Information - Schedule of Other Income (Expense), Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Interest and dividend income $ 134.2 $ 135.0 $ 23.8
Interest expense (19.0) (20.3) (18.6)
Other expense, net (6.2) (2.0) (5.6)
Total other income (expense), net $ 109.0 $ 112.7 $ (0.4)
v3.25.0.1
Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - Senior Notes - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
May 31, 2023
May 31, 2020
Senior Convertible Notes        
Total principal amount $ 2,457.5 $ 2,457.5    
Unamortized debt issuance costs (16.1) (23.3)    
Carrying amount of senior convertible notes 2,441.4 2,434.2    
Senior Convertible Notes due 2025        
Senior Convertible Notes        
Total principal amount 1,207.5 1,207.5   $ 1,210.0
Senior Convertible Notes due 2028        
Senior Convertible Notes        
Total principal amount $ 1,250.0 $ 1,250.0 $ 1,250.0  
v3.25.0.1
Debt - Schedule of Converted Value of Notes (Details) - Senior Notes - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Total by which the notes’ if-converted value exceeds their principal amount $ 0.0 $ 89.7
Senior Convertible Notes due 2025    
Debt Instrument [Line Items]    
Total by which the notes’ if-converted value exceeds their principal amount 0.0 56.1
Senior Convertible Notes due 2028    
Debt Instrument [Line Items]    
Total by which the notes’ if-converted value exceeds their principal amount $ 0.0 $ 33.6
v3.25.0.1
Debt - Schedule of Components of Interest Expense and Effective Interest Rates of Senior Convertible Notes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash interest expense:      
Contractual coupon interest $ 7.7 $ 9.1 $ 8.8
Non-cash interest expense:      
Amortization of debt issuance costs 7.2 7.3 5.9
Total interest expense recognized on senior notes $ 14.9 $ 16.4 $ 14.7
Senior Convertible Notes due 2023      
Non-cash interest expense:      
Effective interest rate (as a percent)   1.10% 1.10%
Senior Convertible Notes due 2025      
Non-cash interest expense:      
Effective interest rate (as a percent) 0.50% 0.50% 0.50%
Senior Convertible Notes due 2028      
Non-cash interest expense:      
Effective interest rate (as a percent) 0.70% 0.70%  
v3.25.0.1
Debt - Schedule of Key Details of Convertible Notes (Details)
 1 Months Ended 12 Months Ended
May 31, 2023
USD ($)
$ / shares
May 31, 2020
USD ($)
$ / shares
Nov. 30, 2018
USD ($)
$ / shares
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Debt Instrument [Line Items]            
Proceeds from issuance of convertible notes, net of issuance costs       $ 0 $ 1,230,600,000 $ 0
Senior Notes            
Debt Instrument [Line Items]            
Total principal amount       2,457,500,000 2,457,500,000  
Senior Convertible Notes due 2023 | Senior Notes            
Debt Instrument [Line Items]            
Interest rate on convertible notes (as a percent)     0.75%      
Total principal amount     $ 850,000,000.0      
Proceeds from issuance of convertible notes, net of issuance costs     $ 836,600,000      
Conversion ratio     0.0243476      
Conversion price of convertible notes (in usd per share) | $ / shares     $ 41.07      
Senior Convertible Notes due 2025 | Senior Notes            
Debt Instrument [Line Items]            
Interest rate on convertible notes (as a percent)   0.25%        
Total principal amount   $ 1,210,000,000   1,207,500,000 1,207,500,000  
Proceeds from issuance of convertible notes, net of issuance costs   $ 1,190,000,000        
Conversion ratio   0.006662        
Conversion price of convertible notes (in usd per share) | $ / shares   $ 150.11        
Senior Convertible Notes due 2028 | Senior Notes            
Debt Instrument [Line Items]            
Interest rate on convertible notes (as a percent) 0.375%          
Total principal amount $ 1,250,000,000     $ 1,250,000,000 $ 1,250,000,000  
Proceeds from issuance of convertible notes, net of issuance costs $ 1,230,000,000          
Conversion ratio 0.0061571          
Conversion price of convertible notes (in usd per share) | $ / shares $ 162.41          
v3.25.0.1
Debt - 2023 Note Hedge (Details)
shares in Millions
Nov. 30, 2018
purchaser
shares
Debt Instrument [Line Items]  
Number of initial purchasers | purchaser 2
Senior Convertible Notes due 2023 | Designated as Hedging Instrument | Senior Notes  
Debt Instrument [Line Items]  
Stock issued upon conversion of senior notes (in shares) | shares 20.7
v3.25.0.1
Debt - 2023 Warrants (Details)
$ / shares in Units, shares in Millions, $ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Feb. 13, 2024
shares
Nov. 30, 2018
USD ($)
d
$ / shares
shares
Jun. 30, 2024
shares
Mar. 31, 2024
shares
Dec. 31, 2024
shares
Dec. 31, 2023
shares
Dec. 31, 2022
shares
Debt Instrument [Line Items]              
Exercise and settlement of warrants (in shares)         12.5 0.0 0.0
Senior Convertible Notes due 2023 | Senior Notes              
Debt Instrument [Line Items]              
Stock counterparties to acquire with warrants purchased (in shares) 10.3 20.7          
Number of trading days | d   60          
Proceeds from sale of warrants | $   $ 183.8          
Exercise price of warrants or rights (in usd per share) | $ / shares   $ 49.60          
Senior Convertible Notes due 2023 | Senior Notes | JPM Warrant Transactions | Common Stock              
Debt Instrument [Line Items]              
Exercise and settlement of warrants (in shares)       1.9      
Stock issued during period, shares, exercise and settlement of remaining warrants (in shares)     4.6        
Senior Convertible Notes due 2023 | Senior Notes | BofA Warrant Transactions | Common Stock              
Debt Instrument [Line Items]              
Exercise and settlement of warrants (in shares)       6.0      
v3.25.0.1
Debt - 2028 Capped Call Transactions (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 12 Months Ended
May 02, 2023
May 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]          
Purchases of capped call transactions     $ 0.0 $ 101.3 $ 0.0
Senior Convertible Notes due 2028 | Senior Notes          
Debt Instrument [Line Items]          
Capped call, cap price (in usd per share) $ 212.62        
Sale of stock premium (as percent) 80.00%        
Closing stock price (in usd per share) $ 118.12        
Purchases of capped call transactions   $ 101.3      
v3.25.0.1
Debt - Conversion Activity for Senior Convertible Notes (Details) - USD ($)
shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]      
Repurchase and conversions of notes (in shares) 0.0 0.0 0.4
Senior Convertible Notes due 2023 | Senior Notes      
Debt Instrument [Line Items]      
Debt instrument, convertible principal amount settled   $ 774.8  
Repurchase and conversions of notes (in shares)   12.2  
Shares received from Note Hedge   12.2  
v3.25.0.1
Debt - Conversion Rights for Seniors Convertible Notes (Details) - Senior Notes
 1 Months Ended 12 Months Ended
Nov. 30, 2018
d
Dec. 31, 2024
trading_day
d
Senior Convertible Notes due 2023    
Debt Instrument [Line Items]    
Holder's repurchase price percentage in event of fundamental change (as a percent)   100.00%
Number of trading days | d 60  
Senior Convertible Notes due 2023 | Debt Instrument Conversion Term One | Minimum    
Debt Instrument [Line Items]    
Number of trading days | d   20
Proportion of applicable conversion price (as a percent)   130.00%
Senior Convertible Notes due 2023 | Debt Instrument Conversion Term One | Maximum    
Debt Instrument [Line Items]    
Number of trading days | d   30
Senior Convertible Notes due 2025    
Debt Instrument [Line Items]    
Proportion of conversion price (as a percent)   130.00%
Redemption price (as a percent)   100.00%
Senior Convertible Notes due 2025 | Debt Instrument Conversion Term One | Minimum    
Debt Instrument [Line Items]    
Number of trading days   20
Senior Convertible Notes due 2025 | Debt Instrument Conversion Term One | Maximum    
Debt Instrument [Line Items]    
Number of trading days   30
Senior Convertible Notes due 2025 | Debt Instrument Conversion Term Two    
Debt Instrument [Line Items]    
Number of trading days   5
Senior Convertible Notes due 2025 | Debt Instrument Conversion Term Two | Maximum    
Debt Instrument [Line Items]    
Number of trading days   5
Proportion of applicable conversion price (as a percent)   98.00%
v3.25.0.1
Debt - Availability and Outstanding Borrowings under Credit Agreement (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Jun. 30, 2023
Line of Credit Facility [Line Items]    
Total available balance $ 192.3  
Line of Credit    
Line of Credit Facility [Line Items]    
Available principal amount and letters of credit sub-facility 200.0 $ 200.0
Outstanding borrowings $ 0.0  
Line of Credit | Minimum    
Line of Credit Facility [Line Items]    
Unused capacity fee (as a percent) 0.175%  
Line of Credit | Minimum | Base Rate    
Line of Credit Facility [Line Items]    
Basis spread on variable rate (as a percent) 0.375%  
Line of Credit | Minimum | London Interbank Offered Rate (LIBOR)    
Line of Credit Facility [Line Items]    
Basis spread on variable rate (as a percent) 1.375%  
Line of Credit | Maximum    
Line of Credit Facility [Line Items]    
Unused capacity fee (as a percent) 0.25%  
Line of Credit | Maximum | Base Rate    
Line of Credit Facility [Line Items]    
Basis spread on variable rate (as a percent) 1.00%  
Line of Credit | Maximum | London Interbank Offered Rate (LIBOR)    
Line of Credit Facility [Line Items]    
Basis spread on variable rate (as a percent) 2.00%  
Line of Credit | Letter of Credit    
Line of Credit Facility [Line Items]    
Available principal amount and letters of credit sub-facility $ 25.0  
Outstanding letters of credit $ 7.7  
v3.25.0.1
Debt - Revolving Credit Agreement (Details) - USD ($)
 1 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2023
Dec. 31, 2024
Line of Credit Facility [Line Items]      
Term of debt instrument (in years)   12 months  
Line of Credit      
Line of Credit Facility [Line Items]      
Term of debt instrument (in years) 5 years    
Available principal amount and letters of credit sub-facility $ 200,000,000.0   $ 200,000,000.0
Option to increase revolving line of credit $ 500,000,000.0    
v3.25.0.1
Leases and Other Commitments - Narrative (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
extensionOption
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Lessee, Lease, Description [Line Items]      
Asset retirement obligation $ 17,000,000 $ 15,700,000  
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other long-term liabilities Other long-term liabilities  
Impairment losses $ 0 $ 0 $ 23,000,000
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] Selling, general and administrative    
Fair value of impaired long-lived asset $ 2,500,000    
Amortization of operating lease right-of-use asset 16,700,000 16,500,000 $ 16,400,000
Purchase obligations $ 954,900,000 $ 793,000,000.0  
Term of purchase obligations (in years) 1 year 1 year  
Maximum      
Lessee, Lease, Description [Line Items]      
Remaining lease terms (in years) 16 years    
Renewal term (in years) 5 years    
Minimum      
Lessee, Lease, Description [Line Items]      
Number of options to extend (in extension options) | extensionOption 1    
v3.25.0.1
Leases and Other Commitments - Schedule of Maturity of Lease and Finance Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Operating Leases    
2025 $ 26.8  
2026 26.1  
2027 20.9  
2028 15.9  
2029 2.9  
Thereafter 6.9  
Total future lease cost 99.5  
Less: Imputed interest (12.0)  
Present value of future payments 87.5  
Less: Current portion (22.5) $ (21.1)
Long-term portion 65.0 80.1
Finance Leases    
2025 9.7  
2026 8.8  
2027 6.9  
2028 5.4  
2029 5.5  
Thereafter 54.6  
Total future lease cost 90.9  
Less: Imputed interest (26.0)  
Present value of future payments 64.9  
Less: Current portion (6.4)  
Long-term portion $ 58.5 $ 58.6
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Property and equipment, net  
v3.25.0.1
Leases and Other Commitments - Schedule of Components of Lease Expense and Other Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Finance lease cost:      
Amortization of right-of-use assets $ 7.2 $ 6.5 $ 5.6
Interest on lease liabilities 3.4 3.2 3.3
Operating lease cost 22.4 22.9 22.6
Right-of-use asset impairment 0.0 0.0 6.3
Short-term lease cost 3.8 2.4 3.5
Variable lease cost 9.0 8.3 8.0
Total lease cost $ 45.8 $ 43.3 $ 49.3
v3.25.0.1
Leases and Other Commitments - Other Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating cash flows from operating leases $ 27.5 $ 28.1 $ 26.0
Operating cash flows from finance leases 3.4 3.2 3.1
Financing cash flows from finance leases 13.0 4.7 15.5
Right-of-use assets obtained in exchange for operating lease liabilities 8.8 7.5 15.6
Right-of-use assets obtained in exchange for finance lease liabilities $ 14.6 $ 4.2 $ 16.1
Weighted average remaining lease term of operating leases (in years) 4 years 2 months 12 days 5 years 5 years 6 months
Weighted average remaining lease term of finance leases (in years) 12 years 7 months 6 days 14 years 1 month 6 days 15 years 2 months 12 days
Weighted average discount rate of operating leases (as a percent) 6.10% 6.10% 6.00%
Weighted average discount rate of finance leases (as a percent) 5.40% 5.30% 5.10%
v3.25.0.1
Income Taxes - Schedule of Income (Loss) before Income Taxes Subject to Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
United States $ 659.8 $ 732.4 $ 463.5
Outside of the United States 49.2 (22.0) (72.7)
Income before income taxes $ 709.0 $ 710.4 $ 390.8
v3.25.0.1
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current:      
Federal $ 157.4 $ 149.1 $ 32.6
State 16.5 18.1 26.1
Foreign 2.7 56.7 12.5
Total current income taxes 176.6 223.9 71.2
Deferred:      
Federal (55.2) (93.7) (4.3)
State (2.0) 14.6 (17.6)
Foreign 13.4 24.1 0.3
Total deferred income taxes (43.8) (55.0) (21.6)
Income taxes at effective rates $ 132.8 $ 168.9 $ 49.6
v3.25.0.1
Income Taxes - Schedule of Tax Credits and Operating Loss Carryforwards (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Federal    
Operating Loss Carryforwards [Line Items]    
Net operating loss $ 12.1 $ 20.4
Federal | R&D credits    
Operating Loss Carryforwards [Line Items]    
Tax credits 0.0 0.0
Federal | Foreign tax credits    
Operating Loss Carryforwards [Line Items]    
Tax credits 0.1 0.1
State | California    
Operating Loss Carryforwards [Line Items]    
Net operating loss 162.0 167.7
State | California | R&D credits    
Operating Loss Carryforwards [Line Items]    
Tax credits 124.9 111.9
State | California | AMT Tax Credits    
Operating Loss Carryforwards [Line Items]    
Tax credits 0.5 0.5
State | Other states    
Operating Loss Carryforwards [Line Items]    
Net operating loss 5.8 7.8
Foreign | UK    
Operating Loss Carryforwards [Line Items]    
Net operating loss 0.0 0.0
Foreign | Other foreign    
Operating Loss Carryforwards [Line Items]    
Net operating loss $ 0.0 $ 6.0
v3.25.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating Loss Carryforwards [Line Items]      
Tax credit carryforwards subject to expiration $ 1.1    
Deferred tax assets 142.4    
Valuation allowance amount 221.9 $ 264.3  
Valuation allowance, deferred tax asset, increase (decrease), amount (42.4)    
Unrecognized tax benefits that would impact effective tax rate $ 40.7 37.0 $ 32.5
Preferential tax rate period (in years) 10 years    
Possible extension period of tax holiday (in years) 15 years    
Undistributed foreign earnings $ 89.3    
Research and development credits 24.6 $ 28.3 $ 23.3
California      
Operating Loss Carryforwards [Line Items]      
Valuation allowance amount 221.9    
Research and development credits $ 2.8    
v3.25.0.1
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Net operating loss carryforwards $ 14.4 $ 18.1
Capitalized research and development expenses 265.0 233.4
Tax credits 79.2 71.4
Share-based compensation 22.5 27.0
Fixed and intangible assets 263.6 279.8
Accrued liabilities and reserves 87.4 91.0
Convertible debt 16.0 20.6
Total gross deferred tax assets 748.1 741.3
Less: valuation allowance (221.9) (264.3)
Total net deferred tax assets 526.2 477.0
Deferred tax liabilities:    
Fixed assets and acquired intangibles assets (59.3) (60.4)
Other (0.3) 0.0
Total deferred tax liabilities (59.6) (60.4)
Net deferred tax assets (liabilities) $ 466.6 $ 416.6
v3.25.0.1
Income Taxes - Schedule of Reconciliation between Effective Tax Rate and Statutory Rate (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
U.S. federal statutory tax rate $ 148.9 $ 149.2 $ 82.1
State income tax, net of federal benefit 10.2 7.8 5.4
Permanent items 10.5 (2.7) 0.6
Research and development credits (24.6) (28.3) (23.3)
Foreign tax credit (1.2) 0.0 0.0
Foreign rate differential 1.6 15.8 27.7
Stock and officers compensation 3.8 5.6 (1.2)
Collaboration agreement milestone share-based payment (32.2) (72.1) (52.9)
Change in statutory tax rates 51.5 19.4 1.0
Intellectual property transfer 0.0 63.9 0.0
Other 6.7 0.3 1.3
Change in valuation allowance (42.4) 10.0 8.9
Income taxes at effective rates $ 132.8 $ 168.9 $ 49.6
v3.25.0.1
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Unrecognized Tax Benefits [Roll Forward]      
Balance at beginning of period $ 59.4 $ 52.0 $ 46.8
Decreases related to prior year tax positions     (0.9)
Increases related to prior year tax positions 0.1 0.8  
Increases related to current year tax positions 6.7 6.6 6.1
Balance at end of period $ 66.2 $ 59.4 $ 52.0
v3.25.0.1
Employee Benefit Plans and Stockholders' Equity - Narrative (Details) - USD ($)
 1 Months Ended 3 Months Ended 12 Months Ended
Oct. 31, 2023
Aug. 31, 2022
Sep. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Jul. 31, 2024
Jun. 30, 2023
Aug. 01, 2022
Jul. 31, 2022
Dec. 31, 2021
May 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Maximum payroll deductions (as a percent)           10.00%                
Employee purchase price floor (as a percent)           85.00%                
Stock authorized in ESPP (in shares)           6,000,000.0                
Purchases of treasury stock           $ 750,000,000.0 $ 688,700,000 $ 557,700,000            
Exercise and settlement of warrants (in shares)           12,500,000 0 0            
Shares issued in connection with the Restated Collaboration Agreement (in shares)           1,500,000 3,700,000 2,900,000            
Potential common stock issued shares (in shares)       1,500,000                    
Collaborative Arrangement, Milestone Payments | Verily Life Sciences | Collaborative Arrangement                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Shares issued in connection with the Restated Collaboration Agreement (in shares)       1,500,000                    
Potential common stock issued shares (in shares)         3,700,000                  
Accelerated Share Repurchase (ASR)                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Purchases of treasury stock (in shares) 4,700,000 6,600,000                        
Purchases of treasury stock $ 500,000,000.0 $ 557,700,000                        
Accelerated share repurchase agreement, authorized amount $ 500,000,000.0                   $ 700,000,000      
Share Repurchase Program                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Stock repurchase program, authorized amount                   $ 142,300,000   $ 700,000,000    
Common Stock                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Issuance of common stock for employee stock purchase plan (in shares)           400,000 300,000 300,000            
Purchases of treasury stock (in shares)           10,400,000 6,300,000 6,600,000            
Exercise and settlement of warrants (in shares)           12,500,000                
Shares issued in connection with the Restated Collaboration Agreement (in shares)           1,500,000 3,700,000 2,900,000            
RSUs and PSUs                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Fair value of vested awards           $ 174,500,000 $ 157,800,000 $ 160,100,000            
Restricted Stock Units (RSUs) | Minimum                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Vesting period (in years)           3 years                
Restricted Stock Units (RSUs) | Maximum                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Vesting period (in years)           4 years                
PSUs                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Vesting period (in years)           3 years                
PSUs | Minimum                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Common received vesting percentage           0.00%                
PSUs | Maximum                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Common received vesting percentage           200.00%                
401(k) Plan                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Maximum employee contribution (as a percent)           90.00%                
Employer matching contribution (as a percent)           50.00%                
Employee contribution (as a percent)           6.00%                
Total matching contributions           $ 17,600,000 $ 14,900,000 $ 11,100,000            
ESPP 2015                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Issuance of common stock for employee stock purchase plan (in shares)           400,000 300,000 300,000            
Stock available for issuance for future awards (in shares)           2,100,000                
EIP 2015                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Stock available for issuance for future awards (in shares)         13,900,000 12,500,000 13,900,000 15,300,000         16,800,000  
Stock reserved for issuance (in shares)                           39,200,000
EIP 2015 | RSUs and PSUs                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Stock available for issuance for future awards (in shares)           12,500,000                
Unvested awards (in shares)         2,900,000 3,000,000.0 2,900,000 2,900,000         3,000,000.0  
Unrecognized compensation costs related to unvested restricted stock units           $ 203,800,000                
Unrecognized compensation costs recognized weighted average period (in years)           1 year 8 months 12 days                
EIP 2015 | Restricted Stock Units (RSUs)                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Unvested awards (in shares)           2,700,000                
EIP 2015 | PSUs                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Unvested awards (in shares)           300,000                
2024 Share Repurchase Program                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Purchases of treasury stock (in shares)     10,400,000     10,400,000 0 0            
Purchases of treasury stock     $ 750,000,000.0                      
2024 Share Repurchase Program | Common Stock                            
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                            
Stock repurchase program, authorized amount                 $ 750,000,000.0          
v3.25.0.1
Employee Benefit Plans and Stockholders' Equity - Schedule of Treasure Share Activity (Details) - shares
shares in Millions
 3 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Increase (Decrease) In Treasury Stock [Roll Forward]        
Shares issued in connection with 2023 Notes conversions (in shares)   0.0 0.0 (0.4)
Shares received from note hedge (in shares)   0.0 12.2 0.3
Shares issued in connection with the Restated Collaboration Agreement (in shares)   (1.5) (3.7) (2.9)
Shares issued in connection with 2023 Warrants (in shares)   (12.5) 0.0 0.0
2022 Share Repurchase Program        
Increase (Decrease) In Treasury Stock [Roll Forward]        
Shares repurchased under the Share Repurchase Program (in shares)   0.0 0.0 6.6
2023 Share Repurchase Program        
Increase (Decrease) In Treasury Stock [Roll Forward]        
Shares repurchased under the Share Repurchase Program (in shares)   0.0 4.7 0.0
2024 Share Repurchase Program        
Increase (Decrease) In Treasury Stock [Roll Forward]        
Shares repurchased under the Share Repurchase Program (in shares) 10.4 10.4 0.0 0.0
2028 Notes        
Increase (Decrease) In Treasury Stock [Roll Forward]        
Shares repurchased under the Share Repurchase Program (in shares)   0.0 1.6 0.0
v3.25.0.1
Employee Benefit Plans and Stockholders' Equity - Schedule of RSU and PSU Activity (Details) - EIP 2015 - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Shares Available for Grant      
Number of shares available for grant at beginning of period (in shares) 13.9 15.3 16.8
Granted (in shares) (1.7) (1.6) (1.9)
Vested (in shares) 0.0 0.0 0.0
Forfeited (in shares) 0.3 0.2 0.4
Number of shares available for grant at end of period (in shares) 12.5 13.9 15.3
RSUs and PSUs      
Shares Available for Grant      
Number of shares available for grant at end of period (in shares) 12.5    
Shares      
Nonvested at beginning of period (in shares) 2.9 2.9 3.0
Granted (in shares) 1.7 1.6 1.9
Vested (in shares) (1.3) (1.4) (1.6)
Forfeited (in shares) (0.3) (0.2) (0.4)
Nonvested at end of period (in shares) 3.0 2.9 2.9
Weighted  Average Grant Date Fair Value      
Nonvested at beginning of period (in usd per share) $ 105.98 $ 94.08 $ 76.88
Granted (in usd per share) 131.17 112.01 96.79
Vested (in usd per share) 102.09 88.57 63.90
Forfeited (in usd per share) 115.59 106.34 92.54
Nonvested at end of period (in usd per share) $ 121.17 $ 105.98 $ 94.08
Aggregate Intrinsic Value $ 234.1 $ 361.2 $ 325.6
v3.25.0.1
Employee Benefit Plans and Stockholders' Equity - Schedule of Share-Based Compensation Expenses (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Share-based compensation expense $ 170.4 $ 150.8 $ 126.5
Total tax benefit related to share-based compensation expense 43.8 40.0 43.2
Cost of sales      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Share-based compensation expense 14.4 14.6 11.1
Research and development      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Share-based compensation expense 52.2 45.5 42.7
Selling, general and administrative      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Share-based compensation expense $ 103.8 $ 90.7 $ 72.7
v3.25.0.1
Employee Benefit Plans and Stockholders' Equity - Schedule of Valuation Assumptions for Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
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) 6 months 6 months 6 months
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk free interest rate (as a percent) 4.80% 5.20% 0.60%
Expected volatility of common stock (as a percent) 42.00% 34.00% 45.00%
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk free interest rate (as a percent) 5.27% 5.47% 3.34%
Expected volatility of common stock (as a percent) 85.00% 48.00% 55.00%
v3.25.0.1
Business Segment and Geographic Information - Narrative (Details)
 12 Months Ended
Dec. 31, 2024
segment
primary_market
Segment Reporting [Abstract]  
Number of reportable segments | segment 1
Number of primary geographic markets | primary_market 2
v3.25.0.1
Business Segment and Geographic Information - Summary (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]      
Total revenue $ 4,033.0 $ 3,622.3 $ 2,909.8
Proportion of revenue (as a percent) 100.00% 100.00% 100.00%
Distributor      
Segment Reporting Information [Line Items]      
Total revenue $ 3,430.1 $ 3,095.6 $ 2,470.8
Proportion of revenue (as a percent) 85.00% 85.00% 85.00%
Direct      
Segment Reporting Information [Line Items]      
Total revenue $ 602.9 $ 526.7 $ 439.0
Proportion of revenue (as a percent) 15.00% 15.00% 15.00%
United States      
Segment Reporting Information [Line Items]      
Total revenue $ 2,889.8 $ 2,625.3 $ 2,142.0
Proportion of revenue (as a percent) 72.00% 72.00% 74.00%
International      
Segment Reporting Information [Line Items]      
Total revenue $ 1,143.2 $ 997.0 $ 767.8
Proportion of revenue (as a percent) 28.00% 28.00% 26.00%
v3.25.0.1
Business Segment and Geographic Information - Segment Revenue, Segment Profit or Loss, and Significant Segment Expenses (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting [Abstract]      
Revenue $ 4,033.0 $ 3,622.3 $ 2,909.8
Cost of sales 1,594.8 1,333.4 1,026.7
Payroll related expenses 767.1 726.9 621.1
Stock-based compensation expense 156.0 136.2 115.4
Marketing expense 298.7 264.6 228.3
Travel related expenses 64.8 55.3 37.6
Supply expenses and clinical trials 64.5 46.5 50.3
Consulting & professional fees 227.8 222.2 196.4
Equipment, office & facility expenses 83.8 84.7 80.3
IT software and data 130.6 106.6 86.5
Depreciation and amortization 39.9 41.9 46.7
Other segment items 5.0 6.3 29.3
Operating income 600.0 597.7 391.2
Other income (expense), net 109.0 112.7 (0.4)
Income before income taxes 709.0 710.4 390.8
Income tax expense 132.8 168.9 49.6
Net income 576.2 541.5 341.2
Depreciation and amortization 217.7 186.0 155.9
Expenditures for long-lived assets 358.8 236.6 364.8
Deferred income taxes $ 43.8 $ 55.0 $ 21.6
v3.25.0.1
Business Segment and Geographic Information - Geographic Information (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Segment Reporting Information [Line Items]    
Total long-lived assets $ 1,402.7 $ 1,184.5
United States    
Segment Reporting Information [Line Items]    
Total long-lived assets 464.6 544.1
Malaysia    
Segment Reporting Information [Line Items]    
Total long-lived assets 632.1 515.4
Other countries    
Segment Reporting Information [Line Items]    
Total long-lived assets 306.0 $ 125.0
Ireland    
Segment Reporting Information [Line Items]    
Total long-lived assets $ 185.7  
v3.25.0.1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning Balance $ 9.3 $ 7.3 $ 5.4
Provision for doubtful accounts (0.1) 2.0 2.4
Write-offs and adjustments 0.0 0.0 (0.5)
Recoveries 0.0 0.0 0.0
Ending Balance $ 9.2 $ 9.3 $ 7.3