What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-07-29 compared with 2021-04-29 · 142 added, 57 removed, 527 unchanged (27% of the section changed)

1 unchanged sentence

Consolidated Balance Sheets

(In millions, except par value data) March 31, 2021 December 31, 2020

(In millions, except par value data) June 30, 2021 December 31, 2020

Current assets:

25 unchanged sentences

Preferred stock, $ 0.001 par value, 5.0 million shares authorized;

no shares issued and outstanding at March 31, 2021 and December 31, 2020

no shares issued and outstanding at June 30, 2021 and December 31, 2020

Common stock, $ 0.001 par value, 200.0 million shares authorized;

97.5 million and 96.7 million shares issued and outstanding, respectively, at March 31, 2021;

97.5 million and 96.7 million shares issued and outstanding, respectively, at June 30, 2021;

and 96.9 million and 96.1 million shares issued and outstanding, respectively, at December 31, 2020

3 unchanged sentences

Treasury stock, at cost;

0.8 million shares at March 31, 2021 and December 31, 2020

0.8 million shares at June 30, 2021 and December 31, 2020

( 100.0 ) ( 100.0 )

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(In millions, except per share data) 2021 2020 2021 2020

8 unchanged sentences

Interest expense ( 25.2 ) ( 20.3 ) ( 50.0 ) ( 35.7 )

Loss on extinguishment of debt — ( 5.4 ) — ( 5.4 )

Interest and other income, net 0.9 4.1 1.0 8.3

9 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(In millions) 2021 2020 2021 2020

2 unchanged sentences

Translation adjustments and other 0.2 0.5 ( 0.1 ) ( 0.2 )

Unrealized gain on marketable debt securities — 2.1

Unrealized gain (loss) on marketable debt securities ( 0.3 ) ( 0.7 ) ( 0.3 ) 1.4

Total other comprehensive income (loss), net of tax ( 0.1 ) ( 0.2 ) ( 0.4 ) 1.2

2 unchanged sentences

Consolidated Statements of Stockholders’ Equity

Three Months Ended March 31, 2021

Three Months Ended June 30, 2021

(In millions) Common Stock Additional

5 unchanged sentences

Shares Amount

Balance at December 31, 2020 96.1 $ 0.1 $ 2,125.3 $ 3.2 $ ( 202.1 ) $ ( 100.0 ) $ 1,826.5

Balance at March 31, 2021 96.7 $ 0.1 $ 2,162.0 $ 2.9 $ ( 161.8 ) $ ( 100.0 ) $ 1,903.2

Issuance of common stock under equity incentive plans — — — — — — —

3 unchanged sentences

Other comprehensive loss, net of tax — — — ( 0.1 ) — — ( 0.1 )

Balance at June 30, 2021 96.7 $ 0.1 $ 2,193.6 $ 2.8 $ ( 98.9 ) $ ( 100.0 ) $ 1,997.6

Three Months Ended June 30, 2020

(In millions) Common Stock Additional

Capital Accumulated

Comprehensive

Income Accumulated

Deficit Treasury Stock Total

Stockholders’

Shares Amount

Balance at March 31, 2020 92.3 $ 0.1 $ 1,706.5 $ 3.7 $ ( 675.8 ) $ ( 100.0 ) $ 934.5

Three Months Ended March 31, 2020

Issuance of common stock under equity incentive plans 0.1 — — — — — —

Issuance of common stock for Employee Stock Purchase Plan — — — — — — —

Equity component of 2025 Notes issuance, net of issuance costs — — 289.4 — — — 289.4

Repurchase and conversions of 2022 Notes 3.0 — 53.2 — — — 53.2

Share-based compensation expense — — 30.7 — — — 30.7

Net income — — — — 46.3 — 46.3

Other comprehensive loss, net of tax — — — ( 0.2 ) — — ( 0.2 )

Balance at June 30, 2020 95.4 $ 0.1 $ 2,079.8 $ 3.5 $ ( 629.5 ) $ ( 100.0 ) $ 1,353.9

See accompanying notes

Consolidated Statements of Stockholders’ Equity

Six Months Ended June 30, 2021

(In millions) Common Stock Additional

10 unchanged sentences

Net income — — — — 103.2 — 103.2

Other comprehensive loss, net of tax — — — ( 0.4 ) — — ( 0.4 )

Balance at June 30, 2021 96.7 $ 0.1 $ 2,193.6 $ 2.8 $ ( 98.9 ) $ ( 100.0 ) $ 1,997.6

Six Months Ended June 30, 2020

(In millions) Common Stock Additional

Capital Accumulated

Comprehensive

Income Accumulated

Deficit Treasury Stock Total

Stockholders’

Shares Amount

Balance at December 31, 2019 91.6 $ 0.1 $ 1,675.9 $ 2.3 $ ( 695.7 ) $ ( 100.0 ) $ 882.6

Issuance of common stock under equity incentive plans 0.8 — 0.3 — — — 0.3

Issuance of common stock for Employee Stock Purchase Plan — — 6.4 — — — 6.4

Equity component of 2025 Notes issuance, net of issuance costs — — 289.4 — — — 289.4

Repurchase and conversions of 2022 Notes 3.0 — 53.2 — — — 53.2

Share-based compensation expense — — 54.6 — — — 54.6

Net income — — — — 66.2 — 66.2

Other comprehensive income, net of tax — — — 1.2 — — 1.2

Balance at March 31, 2020 92.3 $ 0.1 $ 1,706.5 $ 3.7 $ ( 675.8 ) $ ( 100.0 ) $ 934.5

Balance at June 30, 2020 95.4 $ 0.1 $ 2,079.8 $ 3.5 $ ( 629.5 ) $ ( 100.0 ) $ 1,353.9

See accompanying notes

Consolidated Statements of Cash Flows

Three Months Ended

Six Months Ended

(In millions) 2021 2020

4 unchanged sentences

Share-based compensation 59.6 54.6

Loss on extinguishment of debt — 5.4

Non-cash interest expense 44.7 30.3

17 unchanged sentences

Financing activities

Proceeds from issuance of convertible notes, net of issuance costs — 1,188.8

Repurchase of convertible notes — ( 282.6 )

Net proceeds from issuance of common stock 8.7 6.7

2 unchanged sentences

Effect of exchange rate changes on cash, cash equivalents and restricted cash 0.1 ( 0.2 )

Increase (decrease) in cash, cash equivalents and restricted cash ( 84.0 ) 138.5

Increase in cash, cash equivalents and restricted cash 340.9 83.6

Cash, cash equivalents and restricted cash, beginning of period 818.2 446.4

5 unchanged sentences

Supplemental disclosure of non-cash investing and financing transactions:

Common stock issued for repurchase and conversions of senior convertible notes $ — $ 1,190.0

Acquisition of property and equipment included in accounts payable and accrued liabilities $ 43.2 $ 17.0

Right-of-use assets obtained in exchange for operating lease liabilities $ 10.4 $ 5.3

Right-of-use assets obtained in exchange for finance lease liabilities $ 4.6 $ —

See accompanying notes

10 unchanged sentences

In the opinion of management, all adjustments, which include only normal recurring adjustments considered necessary for a fair presentation, have been included.

Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.

Operating results for the three and six months ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021.

We expect that revenues we generate from the sales of our products will fluctuate from quarter to quarter.

19 unchanged sentences

We maintain an allowance for doubtful accounts for potential credit losses.

Uncollectable accounts are written off against the allowance after appropriate collection efforts have been exhausted and when it is deemed that a customer account is uncollectable.

Generally, receivable balances greater than one year past due are deemed uncollectable.

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 greater than one year past due are deemed uncollectible.

Concentration of Credit Risk

53 unchanged sentences

Payment terms vary by contract type and type of customer and generally range from 30 to 90 days.

Accounts receivable as of March 31, 2021 included unbilled accounts receivable of $ 12.2 million.

Accounts receivable as of June 30, 2021 included unbilled accounts receivable of $ 11.1 million.

We expect to invoice and collect all unbilled accounts receivable within 12 months.

1 unchanged sentence

Our performance obligations are generally satisfied within 12 months of the initial contract date.

The deferred revenue balance related to performance obligations that will be satisfied after 12 months was $ 9.5 million as of March 31, 2021 and $ 8.2 million as of December 31, 2020.

The deferred revenue balance related to performance obligations that will be satisfied after 12 months was $ 11.6 million as of June 30, 2021 and $ 8.2 million as of December 31, 2020.

These balances are included in other long-term liabilities in our consolidated balance sheets.

15 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(In millions) 2021 2020 2021 2020

11 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(In millions) 2021 2020 2021 2020

Restricted stock units — — — 0.1

Warrants — — — —

Senior convertible notes 7.2 8.7 7.2 9.5

9 unchanged sentences

2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40) .

This new guidance is intended to reduce the complexity of accounting for convertible instruments.

The guidance also addresses how convertible instruments are

accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible instruments.

This new guidance is intended to reduce

the complexity of accounting for convertible instruments.

The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible instruments.

Entities may adopt ASU 2020-06 using either a partial retrospective or fully retrospective method of transition.

8 unchanged sentences

We validate the quoted market prices provided by our primary pricing service by comparing the fair values of our Level 2 marketable securities portfolio balance provided by our primary pricing service against the fair values of our Level 2 marketable securities portfolio balance provided by our investment managers.

The following table summarizes financial assets that we measured at fair value on a recurring basis as of March 31, 2021, classified in accordance with the fair value hierarchy:

The following table summarizes financial assets that we measured at fair value on a recurring basis as of June 30, 2021, classified in accordance with the fair value hierarchy:

Fair Value Measurements Using

21 unchanged sentences

(1) 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 three months ended March 31, 2021.

There were no transfers into or out of Level 3 securities during the three and six months ended June 30, 2021.

We hold certain other investments that we do not measure at fair value on a recurring basis.

5 unchanged sentences

Fair Value Measurements Using Level 1

(In millions) March 31, 2021 December 31, 2020

(In millions) June 30, 2021 December 31, 2020

Senior Convertible Notes due 2023 $ 2,210.9 $ 1,936.4

6 unchanged sentences

Derivative gains and losses are included in interest and other income, net in our consolidated statements of operations.

As of March 31, 2021 and December 31, 2020, notional amounts of $ 54.0 million and $ 48.0 million, respectively, were outstanding to hedge certain foreign currency risk.

The resulting impact on our consolidated financial statements from currency hedging activities was not significant for the three months ended March 31, 2021 or 2020.

Our foreign currency exposures vary but are primarily concentrated primarily in the British Pound and the Euro.

As of June 30, 2021 and December 31, 2020, notional amounts of $ 52.0 million and $ 48.0 million, respectively, were outstanding to hedge certain foreign currency risk.

The resulting impact on our consolidated financial statements from currency hedging activities was not significant for the three and six months ended June 30, 2021 or 2020.

Our foreign currency exposures vary but are primarily concentrated primarily in the British Pound, the Euro, and the Canadian Dollar.

We monitor the costs and the impact of foreign currency risks upon our financial results as part of our risk management program.

6 unchanged sentences

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 any impairment is recognized.

We recorded no significant impairment losses during the three months ended March 31, 2021 and 2020.

We recorded no significant impairment losses during the three and six months ended June 30, 2021 and 2020.

Balance Sheet Details

1 unchanged sentence

Short-term marketable securities, consisting of debt securities, were as follows as of the dates indicated:

March 31, 2021

June 30, 2021

(In millions) Amortized

13 unchanged sentences

Total debt securities, available for sale $ 1,890.0 $ 0.2 $ ( 0.1 ) $ 1,890.1

As of March 31, 2021 and December 31, 2020, all of our debt securities had contractual maturities of less than 12 months.

Gross realized gains and losses on sales of our debt securities for the three months ended March 31, 2021 and March 31, 2020 were not significant.

As of June 30, 2021 and December 31, 2020, all of our debt securities had contractual maturities of less than 12 months.

Gross realized gains and losses on sales of our debt securities for the three and six months ended June 30, 2021 and June 30, 2020 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 March 31, 2021 were not significant and were primarily due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities.

Unrealized losses on available-for-sale debt securities at June 30, 2021 were not significant and were primarily due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities.

Accordingly, we have not recorded an allowance for credit losses.

We do not intend to sell these investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.

(In millions) March 31, 2021 December 31, 2020

(In millions) June 30, 2021 December 31, 2020

Raw materials $ 104.6 $ 69.9

3 unchanged sentences

Property and Equipment

(In millions) March 31, 2021 December 31, 2020

(In millions) June 30, 2021 December 31, 2020

$ 15.6 $ 15.6

7 unchanged sentences

Total property and equipment, net $ 676.0 $ 515.3

(1 ) Represents our finance lease right-of-use assets.

(1 ) Represents finance lease right-of-use assets.

Accounts Payable and Accrued Liabilities

(In millions) March 31, 2021 December 31, 2020

(In millions) June 30, 2021 December 31, 2020

Accounts payable trade $ 165.9 $ 163.3

4 unchanged sentences

Total accounts payable and accrued liabilities $ 482.0 $ 481.1

Accrued Payroll and Related Expenses

(In millions) June 30, 2021 December 31, 2020

Accrued wages, bonus and taxes $ 64.6 $ 87.7

Other accrued employee benefits 33.5 26.6

Total accrued payroll and related expenses $ 98.1 $ 114.3

Other Long-Term Liabilities

(In millions) March 31, 2021 December 31, 2020

(In millions) June 30, 2021 December 31, 2020

Finance lease obligations

2 unchanged sentences

Other liabilities 17.7 14.3

Total other liabilities $ 82.4 $ 80.9

Total other long-term liabilities $ 87.7 $ 80.9

Senior Convertible Notes

The carrying amounts of our senior convertible notes were as follows as of the dates indicated:

(Dollars in millions) March 31, 2021 December 31, 2020

(Dollars in millions) June 30, 2021 December 31, 2020

Principal amount:

10 unchanged sentences

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:

(In millions) March 31, 2021 December 31, 2020

(In millions) June 30, 2021 December 31, 2020

Senior Convertible Notes due 2023 $ 1,364.0 $ 1,077.5

Senior Convertible Notes due 2025 8.8 —

Total by which the notes ’ if-converted value exceeds their principal amount

$ 1,372.8 $ 1,077.5

The following table summarizes the components of interest expense and the effective interest rates for each of our senior convertible notes for the periods shown.

Three Months Ended

June 30, Six Months Ended

(Dollars in millions) 2021 2020 2021 2020

1 unchanged sentence

Contractual coupon interest (1),(2)

$ 2.2 $ 2.4 $ 4.6 $ 4.7

Non-cash interest expense:

4 unchanged sentences

Senior Convertible Notes due 2022 (2)

* 5.1 % * 5.1 %

Senior Convertible Notes due 2023 5.6 % 5.6 % 5.6 % 5.6 %

5 unchanged sentences

* Not applicable as no notes were outstanding at this date.

Repurchase, Conversion, and Redemption of 2022 Notes

In May 2020, we used approximately $ 282.6 million of the net proceeds from the 2025 Notes offering described below and issued 1,953,067 shares of Dexcom common stock to repurchase $ 260.0 million principal amount outstanding of the 2022 Notes and the associated conversion feature of the repurchased noted (which was recorded in additional paid-in capital).

In addition, holders of 2022 Notes with a principal amount of $ 102.8 million exercised their option to convert their 2022 Notes during the three months ended June 30, 2020.

We settled these conversions by issuing 1,037,319 shares of our common stock.

As a result of the repurchase and conversions of the 2022 Notes, we recorded a loss on extinguishment of debt of $ 5.4 million for the three and six months ended June 30, 2020.

The loss on extinguishment of debt includes the unamortized debt issuance costs for the 2022 Notes.

0.75% Senior Convertible Notes due 2023

13 unchanged sentences

Holders of the 2023 Notes may convert all or a portion of their notes at their option prior to 5:00 p.m., New York City time, on the business day immediately preceding September 1, 2023, in multiples of $ 1,000 principal amount, only under the following circumstances:

period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130 % of the applicable conversion price of the 2023 Notes on each such trading day;

(1) during any calendar quarter commencing after March 31, 2019 (and only during such calendar quarter), if the last reported sale price of Dexcom’s common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130 % of the applicable conversion price of the 2023 Notes on each such trading day;

(2) during the five business day period after any five consecutive trading day period in which the trading price per $ 1,000 principal amount of the 2023 Notes for each day of that five -day consecutive trading day period was less than 98 % of the product of the last reported sale price of Dexcom’s common stock and the applicable conversion rate of the 2023 Notes on such trading day;

2 unchanged sentences

On or after September 1, 2023, until 5:00 p.m., New York City time, on the second scheduled trading day immediately preceding the maturity date, holders of the 2023 Notes may convert all or a portion of their notes regardless of the foregoing circumstances.

Circumstance (1) listed above occurred during the quarter ended December 31, 2020.

As a result, the 2023 Notes were convertible at the option of the holder from January 1, 2021 through March 31, 2021;

Circumstance (1) listed above occurred during the quarters ended December 31, 2020 and March 31, 2021.

As a result, the 2023 Notes were convertible at the option of the holder from January 1, 2021 through June 30, 2021;

actual conversions during that period were not significant.

Circumstance (1) listed above also occurred during the quarter ended March 31, 2021 and as a result, the 2023 Notes will remain convertible at the option of the holder from April 1, 2021 through June 30, 2021.

Circumstance (1) listed above also occurred during the quarter ended June 30, 2021 and as a result, the 2023 Notes will remain convertible at the option of the holder from July 1, 2021 through September 30, 2021.

Conversion Rights at Our Option

13 unchanged sentences

We received $ 183.8 million in cash proceeds from the sale of the 2023 Warrants, which we recorded in additional paid-in capital during 2018.

The 2023 Warrants could have a dilutive effect on our earnings per share to the extent that the price of our common stock during a given measurement period exceeds the strike price of the 2023 Warrants.

The 2023 Warrants could have a dilutive effect on our earnings per share to the extent that the price of our common stock during a given measurement period exceeds the strike price

of the 2023 Warrants.

The strike price of the 2023 Warrants is initially $ 198.38 per share and is subject to certain adjustments under the terms of the warrant agreements.

29 unchanged sentences

Information related to availability and outstanding borrowings on our Credit Agreement is as follows as of the date indicated:

(In millions) March 31, 2021

(In millions) June 30, 2021

Available principal amount $ 200.0

11 unchanged sentences

The Credit Agreement also requires us to maintain a maximum leverage ratio and a minimum fixed charge coverage ratio.

We were in compliance with these covenants as of March 31, 2021.

We were in compliance with these covenants as of June 30, 2021.

Contingencies

1 unchanged sentence

In addition, from time to time we may bring claims or initiate lawsuits against various third parties with respect to matters arising out of the ordinary course of our business, including commercial and employment related matters.

We do not believe we are party to any currently pending legal proceedings, the outcome of which could have a material adverse effect on our business, financial condition or results of operations.

During the quarter ended June 30, 2021 and the third quarter of 2021, we and certain Abbott entities served complaints for patent infringement against each other in multiple jurisdictions, inside and outside the United States.

We intend to vigorously pursue our claims and defenses in these cases to protect our intellectual property and to defend against Abbott’s infringement allegations.

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.

1 unchanged sentence

federal statutory rate due to state and foreign income taxes, nondeductible executive compensation, and increases to unrecognized tax benefits offset by federal research tax credits generated.

Our negative effective tax rate of 90.1 % for the three months ended March 31, 2021 was due to excess tax benefits recognized for employee share-based compensation.

Our negative effective tax rate of 5.4 % for the six months ended June 30, 2021 was due to excess tax benefits recognized for employee share-based compensation and a one-time tax benefit related to the revaluation of our U.K.

net operating loss deferred tax asset resulting from the increase in the U.K.

corporate tax rate from 19% to 25% effective April 2023.

We operate in various jurisdictions outside of the U.S., many of which are enacting Anti-Tax Avoidance Directive (ATAD) laws that may impact our ability to deduct certain costs, which could potentially affect our estimated annual effective tax rate.

We have made certain estimations and assumptions in determining the estimated annual effective tax rate, including the impact of these laws, the final application of which may differ from our estimates.

Stockholders’ Equity

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

(In millions) 2021 2020 2021 2020

3 unchanged sentences

Total share-based compensation expense $ 31.6 $ 30.7 $ 59.6 $ 54.6

At March 31, 2021, unrecognized estimated compensation costs related to RSUs, PSUs and ESPP totaled $ 240.9 million and is expected to be recognized through 2024.

At June 30, 2021, unrecognized estimated compensation costs related to RSUs, PSUs and ESPP totaled $ 210.9 million and is expected to be recognized through 2024.

Equity Award Activity

The total vest date fair value of RSUs and PSUs that vested during the three months ended March 31, 2021 was $ 183.2 million and $ 29.5 million, respectively.

The total vest date fair value of RSUs and PSUs that vested during the six months ended June 30, 2021 was $ 198.6 million and $ 29.5 million, respectively.

Business Segment and Geographic Information

10 unchanged sentences

Revenues by geographic region

During the three months ended March 31, 2021 and 2020, no individual country outside the United States generated revenue that represented more than 10% of our total revenue.

During the three and six months ended June 30, 2021 and 2020, no individual country outside the United States generated revenue that represented more than 10% of our total revenue.

The table below sets forth revenues by our two primary geographical markets, the United States and outside of the United States, based on the geographic location to which we deliver the components.

1 unchanged sentence

Three Months Ended

March 31, 2021 Three Months Ended

March 31, 2020

June 30, 2021 Three Months Ended

June 30, 2020

(Dollars in millions) Amount % of Total Amount % of Total

1 unchanged sentence

Outside of the United States 133.6 22 % 84.7 19 %

Total $ 505.0 100 % $ 405.1 100 %

Total revenues $ 595.1 100 % $ 451.8 100 %

Six Months Ended

June 30, 2021 Six Months Ended

June 30, 2020

(Dollars in millions) Amount % of Total Amount % of Total

United States $ 842.7 77 % $ 659.4 77 %

Outside of the United States 257.4 23 % 197.5 23 %

Total revenues $ 1,100.1 100 % $ 856.9 100 %

Revenues by customer sales channel

1 unchanged sentence

Three Months Ended

March 31, 2021 Three Months Ended

March 31, 2020

June 30, 2021 Three Months Ended

June 30, 2020

(Dollars in millions) Amount % of Total Amount % of Total

1 unchanged sentence

Direct 99.2 17 % 120.1 27 %

Total $ 505.0 100 % $ 405.1 100 %

Total revenues $ 595.1 100 % $ 451.8 100 %

Six Months Ended

June 30, 2021 Six Months Ended

June 30, 2020

(Dollars in millions) Amount % of Total Amount % of Total

Distributor $ 886.6 81 % $ 617.8 72 %

Direct 213.5 19 % 239.1 28 %

Total revenues $ 1,100.1 100 % $ 856.9 100 %

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements