Document and Company Informatio
Document and Company Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Feb. 22, 2010
| Jun. 30, 2009
| |
Document and Company Information [Abstract] | |||
Entity Registrant Name | JUNIPER NETWORKS INC | ||
Entity Central Index Key | 0001043604 | ||
Document Type | 10-K | ||
Document Period End Date | 2009-12-31 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $8,114,000,000 | ||
Entity Common Stock, Shares Outstanding | 521,197,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (USD $) | |||
In Thousands, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Net revenues: | |||
Product | $2,567,992 | $2,910,960 | $2,326,983 |
Service | 747,920 | 661,416 | 509,105 |
Total net revenues | 3,315,912 | 3,572,376 | 2,836,088 |
Cost of revenues: | |||
Product | 841,722 | 867,595 | 676,258 |
Service | 316,080 | 298,371 | 251,380 |
Total cost of revenues | 1,157,802 | 1,165,966 | 927,638 |
Gross margin | 2,158,110 | 2,406,410 | 1,908,450 |
Operating expenses: | |||
Research and development | 741,708 | 731,151 | 622,961 |
Sales and marketing | 734,038 | 782,940 | 666,688 |
General and administrative | 159,459 | 144,837 | 116,489 |
Amortization of purchased intangible assets | 10,416 | 43,508 | 85,896 |
Litigation settlement charges (gain) | 182,331 | 9,000 | (5,278) |
Restructuring charges | 19,463 | 0 | 691 |
Other charges | 0 | 0 | 13,941 |
Total operating expenses | 1,847,415 | 1,711,436 | 1,501,388 |
Operating income | 310,695 | 694,974 | 407,062 |
Interest and other income, net | 6,928 | 48,749 | 96,776 |
(Loss) gain on equity investments | (5,562) | (14,832) | 6,745 |
Income before income taxes and noncontrolling interest | 312,061 | 728,891 | 510,583 |
Provision for income taxes | 196,833 | 217,142 | 149,753 |
Consolidated net income | 115,228 | 511,749 | 360,830 |
Plus: Net loss attributable to noncontrolling interest | 1,771 | 0 | 0 |
Net income attributable to Juniper Networks | $116,999 | $511,749 | $360,830 |
Net income per share attributable to Juniper Networks common stockholders: | |||
Basic | 0.22 | 0.96 | 0.67 |
Diluted | 0.22 | 0.93 | 0.62 |
Shares used in computing net income per share: | |||
Basic | 523,603 | 530,337 | 537,767 |
Diluted | 534,015 | 551,433 | 579,145 |
Consolidated Balance Sheets
Consolidated Balance Sheets (USD $) | ||
In Thousands | Dec. 31, 2009
| Dec. 31, 2008
|
Current assets: | ||
Cash and cash equivalents | $1,604,723 | $2,019,084 |
Short-term investments | 570,522 | 172,896 |
Accounts receivable, net of allowance for doubtful accounts of $9,116 for 2009 and $9,738 for 2008 | 458,652 | 429,970 |
Deferred tax assets, net | 196,318 | 145,230 |
Prepaid expenses and other current assets | 48,744 | 49,026 |
Total current assets | 2,878,959 | 2,816,206 |
Property and equipment, net | 455,651 | 436,433 |
Long-term investments | 483,505 | 101,415 |
Restricted cash | 53,732 | 43,442 |
Purchased intangible assets, net | 13,834 | 28,861 |
Goodwill | 3,658,602 | 3,658,602 |
Long-term deferred tax assets, net | 10,555 | 71,079 |
Other long-term assets | 35,425 | 31,303 |
Total assets | 7,590,263 | 7,187,341 |
Current liabilities: | ||
Accounts payable | 242,591 | 249,854 |
Accrued compensation | 176,551 | 160,471 |
Accrued warranty | 38,199 | 40,090 |
Deferred revenue | 571,652 | 459,749 |
Income taxes payable | 34,936 | 33,047 |
Accrued litigation settlements | 169,330 | 0 |
Other accrued liabilities | 142,526 | 113,399 |
Total current liabilities | 1,375,785 | 1,056,610 |
Long-term deferred revenue | 181,937 | 130,514 |
Long-term income tax payable | 170,245 | 78,164 |
Other long-term liabilities | 37,531 | 20,648 |
Juniper Networks stockholders' equity: | ||
Convertible preferred stock, $0.00001 par value; 10,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.00001 par value, 1,000,000 shares authorized; 519,341 and 526,752 shares issued and outstanding at December 31, 2009, and 2008, respectively | 5 | 5 |
Additional paid-in capital | 9,060,089 | 8,811,497 |
Accumulated other comprehensive loss | (1,433) | (4,245) |
Accumulated deficit | (3,236,525) | (2,905,852) |
Total Juniper Networks stockholders' equity | 5,822,136 | 5,901,405 |
Noncontrolling interest | 2,629 | 0 |
Total equity | 5,824,765 | 5,901,405 |
Total liabilities and stockholders' equity | $7,590,263 | $7,187,341 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | ||
In Thousands | Dec. 31, 2009
| Dec. 31, 2008
|
Current assets: | ||
Accounts receivable, doubtful accounts | $9,116 | $9,738 |
Juniper Networks stockholders' equity: | ||
Convertible preferred stock, par value | 0.00001 | 0.00001 |
Convertible preferred stock, shares authorized | 10,000 | 10,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | 0.00001 | 0.00001 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 519,341 | 526,752 |
Common stock, shares outstanding | 519,341 | 526,752 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (USD $) | |||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Cash flows from operating activities: | |||
Consolidated net income | $115,228 | $511,749 | $360,830 |
Adjustments to reconcile consolidated net income to net cash from operating activities: | |||
Depreciation and amortization | 148,373 | 172,453 | 193,166 |
Stock-based compensation | 139,659 | 108,133 | 87,990 |
Loss (gain) on equity investments | 5,562 | 14,832 | (6,745) |
Excess tax benefits from share-based compensation | (3,510) | (40,182) | (19,686) |
Deferred income taxes | 9,436 | 14,314 | 865 |
Other non-cash charges | 0 | 613 | 2,765 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (28,682) | (50,211) | (120,904) |
Prepaid expenses and other assets | (8,520) | (539) | (3,934) |
Accounts payable | (2,422) | 19,770 | 34,938 |
Accrued compensation | 16,079 | 1,761 | 48,259 |
Accrued warranty | (1,891) | 2,640 | 2,622 |
Income taxes payable | 43,672 | 49,554 | 85,191 |
Accrued litigation settlements | 169,330 | 0 | 0 |
Other accrued liabilities | 30,457 | (6,702) | (6,524) |
Deferred revenue | 163,326 | 76,994 | 127,690 |
Net cash provided by operating activities | 796,097 | 875,179 | 786,523 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (153,101) | (164,604) | (146,858) |
Purchases of available-for-sale investments | (1,461,532) | (474,007) | (298,615) |
Proceeds from sales of available-for-sale investments | 285,379 | 130,237 | 684,666 |
Proceeds from maturities of available-for-sale investments | 398,435 | 369,114 | 344,415 |
Changes in restricted cash | (11,276) | (8,094) | (7,407) |
Purchases of privately-held equity investments, net | (6,205) | (2,458) | (4,075) |
Payments made in connection with business acquisitions, net | 0 | 0 | (375) |
Net cash (used in) provided by investing activities | (948,300) | (149,812) | 571,751 |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock | 164,207 | 119,450 | 355,007 |
Purchases and retirement of common stock | (453,888) | (604,700) | (1,623,190) |
Net proceeds from customer financing arrangements | 19,613 | 22,963 | 10,000 |
Redemption of convertible debt | 0 | (288) | 0 |
Excess tax benefits from share-based compensation | 3,510 | 40,182 | 19,686 |
Proceeds from noncontrolling interest | 4,400 | 0 | 0 |
Net cash used in financing activities | (262,158) | (422,393) | (1,238,497) |
Net (decrease) increase in cash and cash equivalents | (414,361) | 302,974 | 119,777 |
Cash and cash equivalents at beginning of period | 2,019,084 | 1,716,110 | 1,596,333 |
Cash and cash equivalents at end of period | 1,604,723 | 2,019,084 | 1,716,110 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 5,417 | 5,224 | 1,495 |
Cash paid for taxes | 139,969 | 147,999 | 57,856 |
Supplemental disclosure of non-cash financing activities: | |||
Common stock issued in connection with conversion of the senior notes | $0 | $399,208 | $448 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders Equity (USD $) | ||||||
In Thousands | Common Stock
| Additional Paid-in Capital
| Accumulated Other Comprehensive (Loss) Income
| Accumulated Deficit
| Noncontrolling Interest
| Total
|
Balance at Dec. 31, 2006 | $6 | $7,646,047 | $1,266 | ($1,532,235) | $6,115,084 | |
Balance, shares at Dec. 31, 2006 | 569,234 | |||||
Cumulative effect from the adoption of ASC Topic 740-10 (formerly FIN 48) | (19,195) | (19,195) | ||||
Issuance of shares in connection with Employee Stock Purchase Plan | 10,502 | 10,502 | ||||
Issuance of shares in connection with Employee Stock Purchase Plan, shares | 615 | |||||
Exercise of stock options by employees, net of repurchases | 345,585 | 345,585 | ||||
Exercise of stock options by employees, net of repurchases, shares | 22,399 | |||||
Release of escrow related to an acquisition, net of cancelled escrow shares | 14,840 | 14,840 | ||||
Release of escrow related to an acquisition, net of cancelled escrow shares, shares | (15) | |||||
Issuance of shares in connection with vesting of restricted share units | 3 | |||||
Issuance of shares in connection with conversion of the convertible senior notes | 448 | 448 | ||||
Issuance of shares in connection with conversion of the convertible senior notes, shares | 22 | |||||
Repurchase and retirement of common stock | (1) | (461) | (1,622,728) | (1,623,190) | ||
Repurchase and retirement of common stock, shares | (69,443) | |||||
Stock-based compensation expense | 94,453 | 94,453 | ||||
Adjustment related to tax benefit from employee stock option plans | 43,518 | 43,518 | ||||
Net income (loss) | 360,830 | 360,830 | ||||
Other comprehensive income (loss): | ||||||
Change in unrealized gain (loss) on investments, net tax of nil | 3,169 | 3,169 | ||||
Foreign currency translation gains (loss), net tax of nil | 7,816 | 7,816 | ||||
Balance at Dec. 31, 2007 | 5 | 8,154,932 | 12,251 | (2,813,328) | 5,353,860 | |
Balance, shares at Dec. 31, 2007 | 522,815 | |||||
Issuance of shares in connection with Employee Stock Purchase Plan | 35,879 | 35,879 | ||||
Issuance of shares in connection with Employee Stock Purchase Plan, shares | 1,590 | |||||
Exercise of stock options by employees, net of repurchases | 82,608 | 82,608 | ||||
Exercise of stock options by employees, net of repurchases, shares | 5,701 | |||||
Exercise of warrants in connection with acquisitions | 8 | |||||
Issuance of shares in connection with vesting of restricted share units | 1,904 | |||||
Issuance of shares in connection with conversion of the convertible senior notes | 399,208 | 399,208 | ||||
Issuance of shares in connection with conversion of the convertible senior notes, shares | 19,822 | |||||
Repurchase and retirement of common stock | (427) | (604,273) | (604,700) | |||
Repurchase and retirement of common stock, shares | (25,088) | |||||
Stock-based compensation expense | 108,133 | 108,133 | ||||
Adjustment related to tax benefit from employee stock option plans | 31,164 | 31,164 | ||||
Net income (loss) | 511,749 | 511,749 | ||||
Other comprehensive income (loss): | ||||||
Change in unrealized gain (loss) on investments, net tax of nil | 2,547 | 2,547 | ||||
Foreign currency translation gains (loss), net tax of nil | (19,043) | (19,043) | ||||
Balance at Dec. 31, 2008 | 5 | 8,811,497 | (4,245) | (2,905,852) | 5,901,405 | |
Balance, shares at Dec. 31, 2008 | 526,752 | |||||
Issuance of shares in connection with Employee Stock Purchase Plan | 39,164 | 39,164 | ||||
Issuance of shares in connection with Employee Stock Purchase Plan, shares | 3,221 | |||||
Exercise of stock options by employees, net of repurchases | 126,284 | 126,284 | ||||
Exercise of stock options by employees, net of repurchases, shares | 8,651 | |||||
Issuance of shares in connection with vesting of restricted share units | 1,432 | |||||
Purchase of subsidiary shares by noncontrolling interest | 4,400 | 4,400 | ||||
Repurchase and retirement of common stock | (6,216) | (447,672) | (453,888) | |||
Repurchase and retirement of common stock, shares | (20,715) | |||||
Stock-based compensation expense | 139,659 | 139,659 | ||||
Adjustment related to tax benefit from employee stock option plans | (50,299) | (50,299) | ||||
Net income (loss) | 116,999 | (1,771) | 115,228 | |||
Other comprehensive income (loss): | ||||||
Change in unrealized gain (loss) on investments, net tax of nil | (2,757) | (2,757) | ||||
Foreign currency translation gains (loss), net tax of nil | 5,569 | 5,569 | ||||
Balance at Dec. 31, 2009 | $5 | $9,060,089 | ($1,433) | ($3,236,525) | $2,629 | $5,824,765 |
Balance, shares at Dec. 31, 2009 | 519,341 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note1. Summary of Significant Accounting Policies Description of Business Juniper Networks, Inc. (Juniper Networks or the Company) designs, develops, and sells innovative products and services that together provide its customers with high-performance network infrastructure that creates responsive and trusted environments for accelerating the deployment of services and applications over a single network. The Company has the following two segments: Infrastructure and Service Layer Technologies (SLT). The Infrastructure segment primarily offers scalable Internet Protocol (IP)-router and Ethernet switching products that are used to control and direct network traffic. The SLT segment offers networking solutions that meet a broad array of its customers priorities, from securing the network and the data on the network, to maximizing existing bandwidth and acceleration of applications across a distributed network. Both segments offer worldwide services, including technical support and professional services, as well as educational and training programs to their customers. Basis of Presentation The consolidated financial statements, which include the Company and its wholly-owned subsidiaries are prepared in accordance with U.S.generally accepted accounting principles (U.S.GAAP). All inter-company balances and transactions have been eliminated. The information included in this Annual Report on Form10-K should be read in conjunction with Managements Discussion and Analysis of Financial Condition and Results of Operations, Risk Factors, and Quantitative and Qualitative Disclosures About Market Risk. In 2009, the Company held a majority interest in a joint venture with Nokia Siemens Networks B.V. (NSN). As of December31, 2009, the Company owned a 60percent interest in the joint venture. Given the Companys majority ownership interest in the joint venture, the accounts of the joint venture have been consolidated with the accounts of the Company, and a noncontrolling interest has been recorded for the noncontrolling investors interests in the net assets and operations of the joint venture. Use of Estimates The preparation of the financial statements and related disclosures in conformity with U.S.GAAP requires the Company to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and the accompanying notes. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. The critical accounting policies described below are significantly affected by critical accounting estimates. Such accounting policies require significant judgments, assumptions, and estimates used in the preparation of the consolidated financial statements and actual results could differ materially from the amounts reported based on these policies. To the extent there are material differences between our estimates and the actual results, our future consolidated results of o |
Net Income Per Share
Net Income Per Share | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Net Income Per Share [Abstract] | |
Net Income Per Share | Note2. Net Income Per Share Basic net income per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for that period. Diluted net income per share is computed giving effect to all dilutive potential common shares that were outstanding during the period on a weighted average basis. Dilutive potential common shares consist of shares issuable upon conversion of senior notes, if any, and various employee stock awards, including common shares issuable upon exercise of stock options, vesting of RSUs, and vesting of performance shares. The following table presents the calculation of basic and diluted net income per share attributable to Juniper Networks (in millions, except per share amounts): Years Ended December31, 2009 2008 2007 Numerator: Net income attributable to Juniper Networks: $ 117.0 $ 511.7 $ 360.8 Denominator: Weighted-average shares used to compute basic net income per share 523.6 530.3 537.8 Effect of dilutive securities: Shares issuable upon conversion of the Senior Notes 8.8 19.8 Employee stock awards 10.4 12.3 21.5 Weighted-average shares used to compute diluted net income per share 534.0 551.4 579.1 Net income per share attributable to Juniper Networks common stockholders: Basic $ 0.22 $ 0.96 $ 0.67 Diluted $ 0.22 $ 0.93 $ 0.62 Employee stock awards of approximately 38.9million shares and 33.0million shares of the Companys common stock were not included in the computation of diluted earnings per share for the years ended December31, 2009, and December31, 2008, respectively, because their effect would have been anti-dilutive. |
Cash, Cash Equivalents, and Inv
Cash, Cash Equivalents, and Investments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Cash, Cash Equivalents, and Investments [Abstract] | |
Cash, Cash Equivalents, and Investments | Note3. Cash, Cash Equivalents, and Investments Cash and Cash Equivalents The following table summarizes the Companys cash and cash equivalents (in millions): As of December31, 2009 2008 Cash: Demand deposits $ 427.2 $ 285.9 Time deposits 127.9 125.1 Total cash 555.1 411.0 Cash equivalents: U.S. government securities 141.8 Government-sponsored enterprise obligations 94.8 Commercial paper 17.0 90.4 Money market funds 1,032.6 1,281.1 Total cash equivalents 1,049.6 1,608.1 Total cash and cash equivalents $ 1,604.7 $ 2,019.1 Investments in Available-for-Sale and Trading Securities The following table summarizes the Companys unrealized gains and losses, and fair value of investments designated as trading or available-for-sale, as of December31, 2009, and 2008 (in millions): Gross Gross Amortized Unrealized Unrealized Estimated Fair Cost Gains Losses Value As of December31, 2009: Fixed income securities: U.S. government securities $ 245.0 $ 0.1 $ $ 245.1 Government-sponsored enterprise obligations 212.0 0.6 (0.3 ) 212.3 Foreign government debt securities 96.4 0.3 (0.1 ) 96.6 Corporate debt securities 488.2 2.0 (0.3 ) 489.9 Total fixed income securities 1,041.6 3.0 (0.7 ) 1,043.9 Publicly-traded equity securities 10.1 10.1 Total $ 1,051.7 $ 3.0 $ (0.7 ) $ 1,054.0 Reported as: Short-term investments $ 569.5 $ 1.0 $ $ 570.5 Long-term investments 482.2 2.0 (0.7 ) 483.5 Total $ 1,051.7 $ 3.0 $ (0.7 ) $ 1,054.0 Gross Gross Amortized Unrealized Unrealized Estimated Fair Cost Gains Losses Value As of December31, 2008: Fixed income securities: U.S. government securities $ 86.6 $ 0.1 $ $ |
Fair Value Measurements
Fair Value Measurements | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note4. Fair Value Measurements Fair Value Hierarchy The Company determines the fair values of its financial instruments based on the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value assumes that the transaction to sell the asset or transfer the liability occurs in the principal or most advantageous market for the asset or liability and establishes that the fair value of an asset or liability shall be determined based on the assumptions that market participants would use in pricing the asset or liability. The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement. The fair value hierarchy prioritizes the inputs into three levels that may be used to measure fair value: Level1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level2 Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level3 Inputs are unobservable inputs based on the Companys assumptions. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables provide a summary of the assets and liabilities measured at fair value on a recurring basis (in millions): Fair Value Measurements at December31, 2009, Using Quoted Prices in Significant Other Significant Other Active Markets Observable Unobservable for Identical Remaining Remaining Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets measured at fair value: U.S. government securities(1) $ 72.6 $ 192.3 $ $ 264.9 Government-sponsored enterprise obligations 193.3 19.0 212.3 Foreign government debt securities 26.3 70.3 96.6 Corporate debt securities 489.9 489.9 Commercial paper 17.0 17.0 Money market funds(2) 1,062.7 1,062.7 Publicly-traded securities 10.1 10.1 Total assets 1,365.0 788.5 2,153.5 Liabilities measured at fair value: Derivative liability (1.3 ) (1.3 ) |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Goodwill and Purchased Intangible Assets [Abstract] | |
Goodwill and Purchased Intangible Assets | Note5. Goodwill and Purchased Intangible Assets Goodwill The changes in the carrying amount of goodwill during the two years ended December31, 2009, are as follows (in millions): Balance at Adjustments Escrow and Balance at December31, to Existing Other December31, Segments 2008 Acquisitions Goodwill Additions 2009 Infrastructure $ 1,500.5 $ $ $ $ 1,500.5 Service Layer Technologies 2,158.1 2,158.1 Total $ 3,658.6 $ $ $ $ 3,658.6 Balance at Adjustments Escrow and Balance at December31, to Existing Other December31, Segments 2007 Reallocation Goodwill Additions 2008 Infrastructure $ 976.6 $ 523.9 $ $ $ 1,500.5 Service Layer Technologies 1,879.7 278.4 2,158.1 Service 802.3 (802.3 ) Total $ 3,658.6 $ $ $ $ 3,658.6 In 2009 and 2008, there were no additions to goodwill. In the first quarter of 2008, the Company realigned its organizational structure to eliminate its Service segment and to include its service business into the related Infrastructure and SLT segments. As a result, the Company, with the assistance of an external service provider, reallocated goodwill of the former Service segment to the Infrastructure and SLT segments based on a relative fair value approach. Fair value was based on comparative market values and discounted cash flows. There was no indication of impairment when goodwill was reallocated to the new reporting segments. The Company performed goodwill impairment reviews as of November1, 2009 and 2008, and concluded that there was no impairment in the years ended 2009 and 2008. Purchased Intangible Assets The following table presents the Companys purchased intangible assets with definite lives (in millions): Accumulated Gross Amortization Impairment Net As of December31, 2009: Technologies and patents $ 380.0 $ (376.0 ) $ $ 4.0 Other 68.9 (59.1 ) 9.8 Total $ 448.9 $ (435.1 ) $ $ 13.8 As of December31, 2008: |
Other Financial Information
Other Financial Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Other Financial Information [Abstract] | |
Other Financial Information | Note6. Other Financial Information Property and Equipment Property and equipment consist of the following (in millions): As of December31, 2009 2008 Computers and equipment $ 492.4 $ 399.7 Software 58.3 58.1 Leasehold improvements 158.0 143.2 Furniture and fixtures 21.5 20.9 Land 192.4 192.4 Property and equipment, gross 922.6 814.3 Accumulated depreciation (466.9 ) (377.9 ) Property and equipment, net $ 455.7 $ 436.4 Depreciation expense was $133.0million, $123.5million, and $101.8million in 2009, 2008, and 2007, respectively. Deferred Revenue Amounts billed in excess of revenue recognized are included as deferred revenue in the accompanying consolidated balance sheets. Product deferred revenue, net of the related deferred cost of revenue, includes shipments to end-users, value-added resellers, and distributors. Below is a breakdown of the Companys deferred revenue (in millions): As of December31, 2009 2008 Product: Deferred gross product revenue $ 391.3 $ 268.0 Deferred cost of product revenue (150.0 ) (110.0 ) Deferred product revenue, net 241.3 158.0 Deferred service revenue 512.3 432.3 Total $ 753.6 $ 590.3 Reported as: Current $ 571.7 $ 459.8 Long-term 181.9 130.5 Total $ 753.6 $ 590.3 Warranties The Company provides for the estimated cost of product warranties at the time revenue is recognized. This provision is reported as accrued warranty within current liabilities on its consolidated balance sheets. Changes in the Companys accrued warranty are as follows (in millions): Years Ended December31, 2009 2008 Beginning balance $ 40.1 $ 37.5 Provisions made during the period, net 46.9 47.8 Change in estimate (5.6 ) Actual costs incurred during the period (43.2 ) (45.2 ) Ending balance $ 38.2 $ 40.1 Restructuring Liabilities During 2009, the Company implemented a restructuring plan (the 2009 Restructuring Plan) in an effort to better align its business operations with the current market and macroeconomic conditions. The restructuring plan included a restructuring of certain business functions that resulted in reductions of workforce and facilities. The Company recorded $19.5million in restructuring charges during the year ended December31, 2009, associated with the 2009 Restr |
Financing Arrangements
Financing Arrangements | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Financing Arrangements [Abstract] | |
Financing Arrangements | Note7. Financing Arrangements The Company has customer financing arrangements to sell its accounts receivable to a major third-party financing provider. The program does not and is not intended to affect the timing of revenue recognition because the Company only recognizes revenue upon sell-through. Under the financing arrangements, proceeds from the financing provider are due to the Company 30days from the sale of the receivable. In these transactions with the financing provider, the Company has surrendered control over the transferred assets. The accounts receivable have been isolated from the Company and put beyond the reach of creditors, even in the event of bankruptcy. The Company does not maintain effective control over the transferred assets through obligations or rights to redeem, transfer, or repurchase the receivables after they have been transferred. Pursuant to the financing arrangements for the sale of receivables, the Company sold net receivables of $449.8million and $427.2million in 2009 and 2008, respectively. In 2009 and 2008, the Company received cash proceeds of $426.3million and $392.7million, respectively. The amounts owed by the financing provider recorded as accounts receivable on the Companys consolidated balance sheets as of December31, 2009, and December31, 2008, were $89.8million and $73.9million, respectively. The portion of the receivable financed that has not been recognized as revenue is accounted for as a financing arrangement and is included in other accrued liabilities in the consolidated balance sheet. As of December31, 2009, and December31, 2008, the estimated amounts of cash received from the financing provider that has not been recognized as revenue from its distributors was $52.6million and $33.0million, respectively. |
Derivative Instruments
Derivative Instruments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Derivative Instruments[Abstract] | |
Derivative Instruments | Note8. Derivative Instruments The Company uses derivatives partially to offset its market exposure to fluctuations in certain foreign currencies and does not enter into derivatives for speculative or trading purposes. Cash Flow Hedges The Company uses foreign currency forward or option contracts to hedge certain forecasted foreign currency transactions relating to cost of services and operating expenses. The derivatives are intended to protect the U.S.Dollar equivalent of the Companys planned cost of services and operating expenses denominated in foreign currencies. These derivatives are designated as cash flow hedges. Execution of these cash flow hedge derivatives typically occurs every month with maturities of less than one year. The effective portion of the derivatives gain or loss is initially reported as a component of accumulated other comprehensive income (loss), and upon occurrence of the forecasted transaction, is subsequently reclassified into the cost of services or operating expense line item to which the hedged transaction relates. The Company records any ineffectiveness of the hedging instruments, which was immaterial during each of the three years ended December31, 2009, in interest and other income, net on its consolidated statements of operations. Cash flows from such hedges are classified as operating activities. All amounts within other comprehensive income (loss) are expected to be reclassified into income within the next 12months. Non-Designated Hedges The Company also uses foreign currency forward contracts to mitigate variability in gains and losses generated from the re-measurement of certain monetary assets and liabilities denominated in foreign currencies. These hedges do not qualify for special hedge accounting treatment. These derivatives are carried at fair value with changes recorded in interest and other income, net. Changes in the fair value of these derivatives are largely offset by re-measurement of the underlying assets and liabilities. Cash flows from such derivatives are classified as operating activities. The derivatives have maturities of approximately two months. The following table summarizes the total fair value of the Companys derivative instruments as of December31, 2009, (in millions): Asset Derivatives Liability Derivatives Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives designated as hedging instruments: Foreign exchange forward contracts Other current assets $ 0.2 Other current liabilities $ 1.5 Total $ 0.2 $ 1.5 The following represents the Companys top three outstanding derivative positions by currency as of December31, 2009, (in millions): Buy Buy Buy EUR GBP INR Foreign currency forward contracts: |
Stockholders Equity
Stockholders Equity | |
1/1/2009 - 12/31/2009
USD / shares | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | Note9. Stockholders Equity Stock Repurchase Activities In March 2008, the Companys Board of Directors (the Board) approved a $1.0billion stock repurchase program (the 2008 Stock Repurchase Program). Under this program, the Company repurchased approximately 20.7million shares of our common stock at an average price of $21.91 per share for a total purchase price of $453.5million in 2009. As of December31, 2009, the 2008 Stock Repurchase Program had remaining authorized funds of $318.6million. In 2008, the Company repurchased $604.7million, or 25.1million shares of common stock, at an average purchase price of $24.10 per share, under the 2008 Stock Repurchase Program and the $2.0billion stock repurchase program approved in 2006 and 2007 (the 2006 Stock Repurchase Program). As of December31, 2008, the 2006 Stock Repurchase Program had no remaining authorized funds available for future stock repurchases. All shares of common stock purchased under the 2006 and 2008 Stock Repurchase Programs have been retired. Future share repurchases under the Companys 2008 Stock Repurchase Program will be subject to a review of the circumstances in place at the time and will be made from time to time in private transactions or open market purchases as permitted by securities laws and other legal requirements. This program may be discontinued at any time. See Note16, Subsequent Events, for discussion of our stock repurchase activity in 2010. Convertible Preferred Stock There are 10,000,000shares of convertible preferred stock with a par value of $0.00001 per share authorized for issuance. No preferred stock was issued and outstanding as of December31, 2009, and December31, 2008. |
Employee Benefit Plans
Employee Benefit Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note10. Employee Benefit Plans Stock Option Plans 2006 Equity Incentive Plan On May18, 2006, the Companys stockholders adopted the Companys 2006 Equity Incentive Plan (the 2006 Plan) to enable the granting of incentive stock options, nonstatutory stock options, RSUs, restricted stock, stock appreciation rights, performance shares, performance units, deferred stock units, and dividend equivalents to the employees and consultants of the Company. The 2006 Plan also provides for automatic, non-discretionary awards of nonstatutory stock options and RSUs to the Companys non-employee members of the Board. The maximum aggregate number of shares authorized under the 2006 Plan is 64,500,000shares of common stock, plus the addition of any shares subject to outstanding options under the Companys Amended and Restated 1996 Stock Plan (the 1996 Plan) and the Companys 2000 Nonstatutory Stock Option Plan (the 2000 Plan) to the extent that they expire unexercised after May18, 2006, up to a maximum of 75,000,000 additional shares of common stock. Options granted under the 2006 Plan have a maximum term of seven years from the grant date, and generally vest and become exercisable over a four-year period. Subject to the terms of change of control severance agreements, and except for a limited number of shares allowed under the 2006 Plan, restricted stock, performance shares, RSUs, or deferred stock units that vest solely based on continuing employment or provision of services will vest in full no earlier than the three-year anniversary of the grant date, or in the event vesting is based on factors other than continued future provision of services, such awards will vest in full no earlier than the one-year anniversary of the grant date. The 2006 Plan provides each non-employee director an automatic grant of an option to purchase 50,000shares of common stock on the date such individual first becomes a director, whether through election by the stockholders of the Company or appointment by the Board to fill a vacancy (the First Option). In addition, at each of the Companys annual stockholder meetings (i)each non-employee director who was a non-employee director on the date of the prior years annual stockholder meeting shall be automatically granted RSUs for a number of shares equal to the Annual Value (as defined below), and (ii)each non-employee director who was not a non-employee director on the date of the prior years annual stockholder meeting shall receive a RSU award for a number of shares determined by multiplying the Annual Value by a fraction, the numerator of which is the number of days since the non-employee director received their First Option, and the denominator of which is 365, rounded down to the nearest whole share. Each RSU award specified in (i)and (ii)are referred to herein as an Annual Award. The Annual Value means the number of RSUs equal to $125,000 divided by the average daily closing price of the Companys common stock over the six month period ending on the last day of the fiscal year preceding the date of grant. The First Option vests monthly over approximately three years from the grant date subject |
Segments Information
Segments Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Segments Information [Abstract] | |
Segments Information | Note11. Segment Information The Companys chief operating decision maker (CODM) allocates resources and assesses performance based on financial information by the Companys business groups. The Companys operations are organized into two reportable segments: Infrastructure and SLT. The Infrastructure segment includes products from the E-, M-, MX-, and T-series router product families, EX-series switching products, as well as the circuit-to-packet products. The SLT segment consists primarily of Firewall virtual private network (Firewall) systems and appliances, SRX services gateways, secure socket layer (SSL) virtual private network (VPN) appliances, intrusion detection and prevention (IDP) appliances, the J-series router product family and wide area network (WAN) optimization platforms. The primary financial measure used by the CODM in assessing performance of the segments is segment operating income, which includes certain cost of revenues, RD expenses, sales and marketing expenses, and general and administrative expenses. The CODM does not allocate certain miscellaneous expenses to its segments even though such expenses are included in the Companys management operating income. For arrangements with both Infrastructure and SLT products and services, revenue is attributed to the segment based on the underlying purchase order, contract, or sell-through report. Direct costs and operating expenses, such as standard costs, research and development (RD), and product marketing expenses, are generally applied to each segment. Indirect costs, such as manufacturing overhead and other cost of revenues, are allocated based on standard costs. Indirect operating expenses, such as sales, marketing, business development, and general and administrative expenses are generally allocated to each segment based on factors including headcount, usage, and revenue. The CODM does not allocate stock-based compensation, amortization of purchased intangible assets, restructuring and impairment charges, gains or losses on equity investments, other net income and expense, income taxes, as well as certain other charges to the segments. The following table summarizes financial information for each segment used by the CODM (in millions): Years Ended December31, 2009 2008 2007 Net revenues: Infrastructure: Product $ 1,959.2 $ 2,301.9 $ 1,753.2 Service 482.4 424.0 320.1 Total Infrastructure revenues 2,441.6 2,725.9 2,073.3 Service Layer Technologies: Product 608.8 609.1 573.8 Service 265.5 237.4 189.0 Total Service Layer Technologies revenues 874.3 846.5 762.8 Total net revenues 3,315.9 3,572.4 2,836.1 Operating income: Infrastruc |
Income Taxes
Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Income Taxes [Abstract] | |
Income Taxes | Note12. Income Taxes The components of income (loss) before the provision for income taxes and noncontrolling interest are summarized as follows (in millions): Years Ended December31, 2009 2008 2007 Domestic $ 50.1 $ 363.7 $ 225.9 Foreign 262.0 365.2 284.7 Total income before provision for income taxes and noncontrolling interest $ 312.1 $ 728.9 $ 510.6 The provision for income taxes is summarized as follows (in millions): Years Ended December31, 2009 2008 2007 Current Provision: Federal $ 123.8 $ 96.6 $ 52.9 State 21.4 35.8 15.2 Foreign 43.5 39.3 48.0 Total current provision 188.7 171.7 116.1 Deferred expense/(benefit): Federal (42.7 ) 21.4 (0.5 ) State 55.7 (4.4 ) (5.7 ) Foreign (5.9 ) (2.7 ) (3.6 ) Total deferred expense/(benefit) 7.1 14.3 (9.8 ) Income tax benefits attributable to employee stock plan activity 1.0 31.2 43.5 Total provision for income taxes $ 196.8 $ 217.2 $ 149.8 The provision for income taxes differs from the amount computed by applying the federal statutory rate to income (loss) before provision for income taxes as follows (in millions): Years Ended December31, 2009 2008 2007 Expected provision at 35% rate $ 109.2 $ 255.1 $ 178.7 State taxes, net of federal benefit (1.6 ) 16.6 6.5 Foreign income at different tax rates (33.8 ) (51.2 ) (21.7 ) RD credits (14.4 ) (12.1 ) (18.6 ) Stock-based compensation 62.1 2.4 1.2 Temporary differences not currently benefited 72.8 Other 2.5 6.4 3.7 Total provision for income taxes $ 196.8 $ 217.2 $ 149.8 Deferred income taxes reflect the net tax effects of tax carry-forward items and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Companys deferred tax assets and liabilities are as follows (in millions): As of December31, 2009 2008 Deferred tax assets: |
Commitments and Contingencies
Commitments and Contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note13. Commitments and Contingencies Commitments The following table summarizes the Companys principal contractual obligations as of December31, 2009, (in millions): Total 2010 2011 2012 2013 2014 Thereafter Other Operating leases $ 303.9 $ 51.6 $ 42.3 $ 36.7 $ 27.6 $ 23.8 $ 121.9 $ Sublease rental income (0.6 ) (0.6 ) Purchase commitments 139.5 139.5 Tax liabilities 177.0 1.5 175.5 Other contractual obligations 39.3 18.3 13.5 5.6 1.9 Total $ 659.1 $ 210.3 $ 55.8 $ 42.3 $ 29.5 $ 23.8 $ 121.9 $ 175.5 Operating Leases The Company leases its facilities under operating leases that expire at various times, the longest of which expires in November 2022. Future minimum payments under the non-cancelable operating leases, net of committed sublease income, totaled $303.3million as of December31, 2009. Rent expense for 2009, 2008, and 2007 was approximately $56.6million, $58.0million, and $48.7million, respectively. In October 2009, the Company amended three existing leases for the Companys corporate headquarters facilities in Sunnyvale, California. Each lease was amended to: (i)extend the underlying lease term, and (ii)establish new monthly base rent payments for periods after November1, 2009. The new monthly base rent payments represent a significant reduction in base rent that would have been payable for the previously remaining terms of each of the underlying leases. Purchase Commitments In order to reduce manufacturing lead times and ensure adequate component supply, contract manufacturers utilized by the Company place non-cancelable, non-returnable (NCNR) orders for components based on the Companys build forecasts. As of December31, 2009, there were NCNR component orders placed by the contract manufacturers with a value of $139.5million. The contract manufacturers use the components to build products based on the Companys forecasts and on purchase orders that the Company has received from customers. Generally, the Company does not own the components and title to the products transfers from the contract manufacturers to the Company and immediately to the Companys customers upon delivery at a designated shipment location. If the components remain unused or the products remain unsold for specified periods, the Company may incur carrying charges or obsolete materials charges for components that the contract manufacturers purch |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Selected Quarterly Financial Data [Abstract] | |
Selected Quarterly Financial Data | Note14. Selected Quarterly Financial Data (Unaudited) The table below sets forth selected unaudited financial data for each quarter of the two years ended December31, 2009, (in millions, except per share amounts): First Second Third Fourth Year Ended December31, 2009 Quarter Quarter Quarter Quarter Net revenues: Product $ 587.8 $ 607.0 $ 634.1 $ 739.1 Service 176.3 179.4 189.8 202.4 Total net revenues 764.1 786.4 823.9 941.5 Cost of revenues: Cost of revenues Product 193.0 207.6 206.3 234.8 Cost of revenues Service 75.4 78.4 80.4 81.9 Total cost of revenues 268.4 286.0 286.7 316.7 Gross margin 495.7 500.4 537.2 624.8 Operating expenses: Research and development 185.4 183.9 185.2 187.2 Sales and marketing 181.2 170.6 177.3 204.9 General and administrative 39.2 39.2 39.9 41.2 Amortization of purchased intangibles 4.4 3.5 1.3 1.2 Litigation settlement charges 1.0 181.3 Restructuring charges 4.3 7.5 4.5 3.2 Total operating expenses 414.5 404.7 409.2 619.0 Operating income 81.2 95.7 128.0 5.8 Other income and expense, net 0.3 1.3 1.7 (1.9 ) Income before income taxes and noncontrolling interest 81.5 97.0 129.7 3.9 Provision for income taxes 85.9 82.2 45.9 (17.2 ) Consolidated (loss) net income (4.4 ) 14.8 83.8 21.1 Plus: Net loss attributable to noncontrolling interest 1.8 Net (loss) income attributable to Juniper Networks $ (4.4 ) $ 14.8 $ 83.8 $ 22.9 Net (loss) income per share attributable to Juniper Networks common stockholders: Basic (loss) income per share $ (0.01 ) $ 0.03 $ 0.16 $ 0.04 Diluted (loss) income per share $ (0.01 ) $ 0.0 |
Joint Venture
Joint Venture | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Joint Venture [Abstract] | |
Joint Venture | Note15. Joint Venture In 2009, the Company entered into an agreement to form a joint venture to provide a combined carrier Ethernet-based solution with NSN. At inception, the Company contributed $6.6million for a 60percent interest in the joint venture. Both NSN and Juniper Networks are entitled to appoint two board members to the Board of the joint venture. The Board shall consist of four board members at all times. Given the Companys majority ownership interest in the joint venture, the ventures financial results have been consolidated with the accounts of the Company, and a noncontrolling interest has been recorded to reflect the noncontrolling investors interest in the ventures results. All intercompany transactions have been eliminated, with the exception of the noncontrolling interest. |
Subsequent Event
Subsequent Event | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Subsequent Event [Abstract] | |
Subsequent Event | Note16. Subsequent Event Stock Repurchases Subsequent to December31, 2009, through the filing of this report, the Company repurchased 2.1million shares of its common stock, for $55.3million at an average purchase price of $26.28 per share, under its 2008 Stock Repurchase Program. As of the filing of this Annual Report on Form10-K, the Companys 2008 Stock Repurchase Programs had remaining authorized funds of $263.3million. Purchases under this program are subject to a review of the circumstances in place at the time. Acquisitions under the Companys share repurchase program may be made from time to time as permitted by securities laws and other legal requirements. This program may be discontinued at any time. In February 2010, the Companys Board approved a new stock repurchase program which authorized the company to repurchase up to $1.0billion of its common stock. This new authorization is in addition to the Companys 2008 Stock Purchase Program. Share repurchases under the Company's stock repurchase programs will be subject to a review of the circumstances in place at the time and will be made from time to time in private transactions or open market purchases as permitted by securities laws and other legal requirements. These programs may be discontinued at any time. |
Valuation and Qualifying Accoun
Valuation and Qualifying Account | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Valuation and Qualifying Account [Abstract] | |
Valuation and Qualifying Account | US GAAP element Schedule Of Valuation And Qualifying Accounts Disclosure Juniper Networks, Inc. ScheduleII Valuation and Qualifying Account Years Ended December31, 2009, 2008, and 2007 Charged to Balance at (Reversed from) Recoveries Beginning of Costs and (Deductions), Balance at Year Expenses Net End of Year (In millions) Year ended December31, 2009 Allowance for doubtful accounts $ 9.7 $ (0.6 ) $ $ 9.1 Sales returns reserve $ 36.8 $ 84.1 $ (75.3 ) $ 45.6 Year ended December31, 2008 Allowance for doubtful accounts $ 8.3 $ 1.7 $ (0.3 ) $ 9.7 Sales returns reserve $ 25.1 $ 89.0 $ (77.3 ) $ 36.8 Year ended December31, 2007 Allowance for doubtful accounts $ 7.3 $ 0.4 $ 0.6 $ 8.3 Sales returns reserve $ 15.0 $ 56.8 $ (46.7 ) $ 25.1 |