What changed in this filing

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Item 1. Financial Statements

2021-10-28 compared with 2021-07-29 · 106 added, 84 removed, 585 unchanged (25% of the section changed)

1 unchanged sentence

Consolidated Balance Sheets

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

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

Current assets:

9 unchanged sentences

Deferred tax assets 216.3 216.4

Other assets 23.3 21.4

Intangibles and other assets, net 46.0 21.4

Total assets $ 4,775.9 $ 4,290.5

13 unchanged sentences

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

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

no shares issued and outstanding at September 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 June 30, 2021;

97.8 million and 96.9 million shares issued and outstanding, respectively, at September 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 June 30, 2021 and December 31, 2020

0.9 million shares at September 30, 2021 and 0.8 million shares at December 31, 2020

( 159.5 ) ( 100.0 )

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

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

9 unchanged sentences

Loss on extinguishment of debt ( 0.8 ) ( 0.5 ) ( 0.8 ) ( 5.9 )

Interest and other income, net 0.9 4.1 1.0 8.3

Interest and other income (expense), net ( 1.7 ) 5.9 ( 0.7 ) 14.2

Income before income taxes 90.7 75.1 188.6 143.7

Income tax expense (benefit) 13.8 ( 0.1 ) ( 5.3 ) 2.4

Income tax expense 19.8 2.9 14.5 5.3

Net income $ 70.9 $ 72.2 $ 174.1 $ 138.4

6 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(In millions) 2021 2020 2021 2020

7 unchanged sentences

Consolidated Statements of Stockholders’ Equity

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

(In millions) Common Stock Additional

5 unchanged sentences

Shares Amount

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

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

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

Issuance of common stock for Employee Stock Purchase Plan — — 11.6 — — — 11.6

Conversions of 2023 Notes 0.2 — 24.3 — — 5.6 29.9

Benefit of note hedge upon conversions of 2023 Notes ( 0.1 ) — 65.1 — — ( 65.1 ) —

Share-based compensation expense — — 27.5 — — — 27.5

1 unchanged sentence

Other comprehensive loss, net of tax — — — ( 1.4 ) — — ( 1.4 )

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

Balance at September 30, 2021 96.9 $ 0.1 $ 2,322.1 $ 1.4 $ ( 28.0 ) $ ( 159.5 ) $ 2,136.1

Three Months Ended September 30, 2020

(In millions) Common Stock Additional

5 unchanged sentences

Shares Amount

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

Issuance of common stock under equity incentive plans 0.2 — — — — — —

Issuance of common stock for Employee Stock Purchase Plan — — 8.6 — — — 8.6

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

Repurchase and conversions of 2022 Notes 0.4 — 34.6 — — — 34.6

2 unchanged sentences

Other comprehensive loss, net of tax — — — ( 0.7 ) — — ( 0.7 )

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

Balance at September 30, 2020 96.0 $ 0.1 $ 2,153.7 $ 2.8 $ ( 557.3 ) $ ( 100.0 ) $ 1,499.3

See accompanying notes

Consolidated Statements of Stockholders’ Equity

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

(In millions) Common Stock Additional

8 unchanged sentences

Issuance of common stock for Employee Stock Purchase Plan — — 20.3 — — — 20.3

Conversions of 2023 Notes 0.2 — 24.3 — — 5.6 29.9

Benefit of note hedge upon conversions of 2023 Notes ( 0.1 ) — 65.1 — — ( 65.1 ) —

Share-based compensation expense — — 87.1 — — — 87.1

1 unchanged sentence

Other comprehensive loss, net of tax — — — ( 1.8 ) — — ( 1.8 )

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

Balance at September 30, 2021 96.9 $ 0.1 $ 2,322.1 $ 1.4 $ ( 28.0 ) $ ( 159.5 ) $ 2,136.1

Nine Months Ended September 30, 2020

(In millions) Common Stock Additional

13 unchanged sentences

Other comprehensive income, net of tax — — — 0.5 — — 0.5

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

Balance at September 30, 2020 96.0 $ 0.1 $ 2,153.7 $ 2.8 $ ( 557.3 ) $ ( 100.0 ) $ 1,499.3

See accompanying notes

Consolidated Statements of Cash Flows

Six Months Ended

Nine Months Ended

September 30,

(In millions) 2021 2020

21 unchanged sentences

Purchases of property and equipment ( 309.0 ) ( 138.8 )

Acquisitions, net of cash acquired ( 31.6 ) —

Other investing activities ( 4.5 ) ( 10.6 )

15 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

Shares issued for repurchase and conversions of senior convertible notes $ 94.5 $ 1,350.9

Shares received under note hedge upon conversions of 2023 Notes $ ( 65.1 ) $ —

Acquisition of property and equipment included in accounts payable and accrued liabilities $ 30.2 $ 27.8

13 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 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.

Operating results for the three and nine months ended September 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.

8 unchanged sentences

We include translation-related adjustments in comprehensive income and in accumulated other comprehensive income 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 interest and other income, net in our consolidated statements of operations.

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 interest and other income (expense), net in our consolidated statements of operations.

Use of Estimates

65 unchanged sentences

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

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

Accounts receivable as of September 30, 2021 included unbilled accounts receivable of $ 9.2 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 $ 11.6 million as of June 30, 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 $ 13.8 million as of September 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

September 30, Nine Months Ended

September 30,

(In millions) 2021 2020 2021 2020

11 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(In millions) 2021 2020 2021 2020

18 unchanged sentences

Early adoption is permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years.

We are currently evaluating the impact that this guidance will have on our consolidated financial statements.

We will adopt ASU 2020-06 in the first quarter of 2022, and expect to use the full retrospective method, reflecting the application of the new standard in each prior reporting period.

We have started the process of evaluating the impact of the full retrospective adoption of ASU 2020-06 on our consolidated financial statements.

We expect the adoption of ASU 2020-06 will lead to an increase in the carrying value of the senior convertible notes on our Consolidated Balance Sheets.

Fair Value Measurements

4 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 June 30, 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 September 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 and six months ended June 30, 2021.

There were no transfers into or out of Level 3 securities during the three and nine months ended September 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) June 30, 2021 December 31, 2020

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

Senior Convertible Notes due 2023 $ 2,719.0 $ 1,936.4

5 unchanged sentences

The fair values of these derivatives are based on quoted market prices, which are Level 1 inputs, and the derivative instruments are recorded in current assets or current liabilities in our consolidated balance sheets consistent with the nature of the instrument at period end.

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

As of 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.

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

As of September 30, 2021 and December 31, 2020, notional amounts of $ 48.0 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 nine months ended September 30, 2021 or 2020.

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

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 and six months ended June 30, 2021 and 2020.

We recorded no significant impairment losses during the three and nine months ended September 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:

June 30, 2021

September 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 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.

As of September 30, 2021, the estimated market value of available-for-sale securities with contractual maturities up to 12 months and up to 18 months were $ 1,083.7 million and $ 169.9 million, respectively.

As of 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 nine months ended September 30, 2021 and September 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 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.

Unrealized losses on available-for-sale debt securities at September 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) June 30, 2021 December 31, 2020

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

Raw materials $ 129.1 $ 69.9

3 unchanged sentences

Property and Equipment

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

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

$ 15.6 $ 15.6

8 unchanged sentences

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

Intangibles and Other Assets, Net

We recorded net intangible assets of $ 23.4 million, consisting primarily of customer-related relationship, as result of an acquisition in the third quarter of 2021.

Accounts Payable and Accrued Liabilities

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

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

Accounts payable trade $ 210.0 $ 163.3

5 unchanged sentences

Accrued Payroll and Related Expenses

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

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

Accrued wages, bonus and taxes $ 88.4 $ 87.7

2 unchanged sentences

Other Long-Term Liabilities

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

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

Finance lease obligations

5 unchanged sentences

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

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

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

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

Senior Convertible Notes due 2023 $ 1,903.6 $ 1,077.5

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(Dollars in millions) 2021 2020 2021 2020

17 unchanged sentences

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.

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

Holders of $ 37.2 million in aggregate principal amount of the 2022 Notes elected conversion at their option during the three months ended September 30, 2020, for a total of $ 140.0 million aggregate principal amount of the 2022 Notes converted at the holders’ option during the nine months ended September 30, 2020.

We settled these conversions by issuing 375,178 and 1,412,497 shares of our common stock during the three and nine months ended September 30, 2020, respectively.

As a result of the repurchase and conversions of the 2022 Notes, we recorded losses on extinguishment of debt of $ 0.5 million and $ 5.9 million for the three and nine months ended September 30, 2020, respectively.

The losses on extinguishment of debt included the unamortized debt issuance costs for the 2022 Notes.

0.75% Senior Convertible Notes due 2023

5 unchanged sentences

We use the if-converted method for assumed conversion of the 2023 Notes to compute the weighted average shares of common stock outstanding for diluted earnings per share.

Since upon conversion by the holders we may elect to settle such conversion in shares of our common stock, cash, or a combination thereof, we accounted for the cash conversion option as an equity instrument classified to stockholders’ equity.

As a result, we recognized $ 171.6 million in additional paid-in capital, net of debt issuance costs, during 2018.

No principal payments are due on the 2023 Notes prior to maturity.

Other than restrictions relating to certain fundamental changes and consolidations, mergers or asset sales and customary anti-dilution adjustments, the indenture relating to the 2023 Notes includes customary terms and covenants, including certain events of default after which the 2023 Notes may be due and payable immediately.

As a result, we recognized $ 171.6 million in additional paid-in capital, net of debt issuance costs, during 2018.

Holders of $ 32.6 million in aggregate principal amount of the 2023 Notes elected conversion at their option during the three months ended September 30, 2021.

We settled these conversions by issuing a combination of common stock and treasury stock.

We issued 197,816 shares and 197,876 shares to settle the converted 2023 Notes during the three and nine months ended September 30, 2021, respectively, of which 45,745 shares were issued out of treasury stock.

As a result of the elected conversions, we recorded a loss on extinguishment of debt of $ 0.8 million.

We received 122,209 shares of common stock from the exercise of a portion of the 2023 Note Hedge we purchased concurrently with the issuance of the 2023 Notes, as described below.

Conversion Rights at the Option of the Holders

7 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 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 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.

Circumstance (1) listed above occurred during the quarters ended December 31, 2020, March 31, 2021, and June 30, 2021.

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

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

Conversion Rights at Our Option

8 unchanged sentences

The strike price of the 2023 Note Hedge initially corresponds to the conversion price of the 2023 Notes and is subject to certain adjustments under the terms of the 2023 Note Hedge.

An assumed exercise of the 2023 Note Hedge by us is considered anti-dilutive since the effect of the inclusion would always be anti-dilutive with respect to the calculation of diluted earnings per share.

An assumed exercise of the 2023 Note Hedge by us is considered anti-dilutive since the effect of the inclusion would always be anti-dilutive

with respect to the calculation of diluted earnings per share.

See above for conversion activity related to the 2023 Notes and shares received as the result of exercising a portion of the 2023 Note Hedge.

2023 Warrants

2 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.

6 unchanged sentences

We use the if-converted method for assumed conversion of the 2025 Notes to compute the weighted average shares of common stock outstanding for diluted earnings per share.

As a result, we recognized $ 289.4 million in additional paid-in-capital, net of debt issuance costs, during 2020.

No principal payments are due on the 2025 Notes prior to maturity.

Other than restrictions relating to certain fundamental changes and consolidations, mergers or asset sales and customary anti-dilution adjustments, the indenture relating to the 2025 Notes includes customary terms and covenants, including certain events of default after which the 2025 Notes may be due and payable immediately.

As a result, we recognized $ 289.4 million in additional paid-in-capital, net of debt issuance costs, during 2020.

Conversion Rights at the Option of the Holders

17 unchanged sentences

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

(In millions) June 30, 2021

(In millions) September 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 June 30, 2021.

We were in compliance with these covenants as of September 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.

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.

During the quarters ended June 30, 2021 and September 30, 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.

3 unchanged sentences

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 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.

Our positive effective tax rate of 7.7 % for the nine months ended September 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.

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(In millions) 2021 2020 2021 2020

3 unchanged sentences

Total share-based compensation expense $ 27.5 $ 30.7 $ 87.1 $ 85.3

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.

At September 30, 2021, unrecognized estimated compensation costs related to RSUs, PSUs and ESPP totaled $ 178.2 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 six months ended June 30, 2021 was $ 198.6 million and $ 29.5 million, respectively.

The total vest date fair value of RSUs and PSUs that vested during the nine months ended September 30, 2021 was $ 240.4 million and $ 29.5 million, respectively.

Business Segment and Geographic Information

8 unchanged sentences

Dexcom is domiciled in the United States.

We sell our CGM systems through a direct sales force in the United States, Canada and some countries in Europe, and through distribution arrangements in the United States, and certain countries in Africa, Asia, Europe, Latin America, and the Middle East, as well as Australia, Canada, and New Zealand.

We sell our CGM systems through a direct sales force in the United States, Australia, Canada, New Zealand, and some countries in Europe, and through distribution arrangements in the United States, and certain countries in Africa, Asia, Europe, Latin America, and the Middle East, as well as Australia, Canada, and New Zealand.

Revenues by geographic region

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.

During the three and nine months ended September 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

June 30, 2021 Three Months Ended

June 30, 2020

September 30, 2021 Three Months Ended

September 30, 2020

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

2 unchanged sentences

Total revenues $ 650.2 100 % $ 500.9 100 %

Six Months Ended

June 30, 2021 Six Months Ended

June 30, 2020

Nine Months Ended

September 30, 2021 Nine Months Ended

September 30, 2020

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

5 unchanged sentences

Three Months Ended

June 30, 2021 Three Months Ended

June 30, 2020

September 30, 2021 Three Months Ended

September 30, 2020

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

2 unchanged sentences

Total revenues $ 650.2 100 % $ 500.9 100 %

Six Months Ended

June 30, 2021 Six Months Ended

June 30, 2020

Nine Months Ended

September 30, 2021 Nine Months Ended

September 30, 2020

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

3 unchanged sentences

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