Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | JUNIPER NETWORKS INC | |
Entity Central Index Key | 1,043,604 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 374,928,303 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net revenues: | ||||
Product | $ 869.7 | $ 928.2 | $ 2,615.8 | $ 2,543.3 |
Service | 388.1 | 357.1 | 1,171.9 | 1,061.2 |
Total net revenues | 1,257.8 | 1,285.3 | 3,787.7 | 3,604.5 |
Cost of revenues: | ||||
Product | 336 | 349.6 | 1,026.4 | 955.8 |
Service | 149.4 | 136.2 | 440.4 | 401.9 |
Total cost of revenues | 485.4 | 485.8 | 1,466.8 | 1,357.7 |
Gross margin | 772.4 | 799.5 | 2,320.9 | 2,246.8 |
Operating expenses: | ||||
Research and development | 236.4 | 251.8 | 752.8 | 750.7 |
Sales and marketing | 232.5 | 242.9 | 716.6 | 718.4 |
General and administrative | 70.6 | 54 | 176.7 | 172 |
Restructuring charges | 2 | 0.8 | 29.4 | 3.2 |
Total operating expenses | 541.5 | 549.5 | 1,675.5 | 1,644.3 |
Operating income | 230.9 | 250 | 645.4 | 602.5 |
Other expense, net | (5.1) | (13.4) | (33.8) | (47.2) |
Income before income taxes | 225.8 | 236.6 | 611.6 | 555.3 |
Income tax provision | 60.1 | 64.2 | 157.3 | 151.5 |
Net income | $ 165.7 | $ 172.4 | $ 454.3 | $ 403.8 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.44 | $ 0.45 | $ 1.20 | $ 1.06 |
Diluted, (in dollars per share) | $ 0.43 | $ 0.45 | $ 1.18 | $ 1.04 |
Shares used in computing net income per share: | ||||
Basic (in shares) | 378.3 | 381 | 380 | 382.3 |
Diluted (in shares) | 382.7 | 384.5 | 386.5 | 387.9 |
Cash dividends declared per common stock (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.30 | $ 0.30 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 165.7 | $ 172.4 | $ 454.3 | $ 403.8 |
Available-for-sale securities: | ||||
Unrealized (losses) gains net of tax benefits of $0.5 and $0.2 during the three and nine months ended September 30, 2017, respectively, and tax provision of $0.3 and benefit of $0.4 for the corresponding periods of the fiscal year ended December 31, 2016 (fiscal 2016), respectively | (0.2) | (0.6) | 1.4 | 5.4 |
Reclassification adjustment for realized net gains included in net income, net of tax provision of $0.9 during both the three and nine months ended September 2017, respectively, and net of tax provisions of zero and $0.5 for the corresponding periods of fiscal 2016, respectively | (1.9) | (0.3) | (2) | (1.1) |
Net change on available-for-sale securities, net of taxes | (2.1) | (0.9) | (0.6) | 4.3 |
Cash flow hedges: | ||||
Unrealized gains (loss) net of tax provisions of $0.5 and $3.0, for the three and nine months ended September 30, 2017, respectively, and tax provisions of $0.6 and $1.2 for the corresponding periods of fiscal 2016, respectively | 6.3 | (0.3) | 14.6 | 3.6 |
Reclassification adjustment for realized net gains included in net income, net of tax provisions of $0.8 and $1.7 during the three and nine months ended September 30, 2017, respectively, and tax provisions of $0.3 and $0.4 for the corresponding periods of fiscal 2016, respectively | (2.5) | (0.9) | (2.4) | (1) |
Net change on cash flow hedges, net of taxes | 3.8 | (1.2) | 12.2 | 2.6 |
Change in foreign currency translation adjustments | 8.4 | (6.9) | 19.3 | (1.1) |
Other comprehensive income (loss), net of taxes | 10.1 | (9) | 30.9 | 5.8 |
Comprehensive income | $ 175.8 | $ 163.4 | $ 485.2 | $ 409.6 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized (losses) gains net of tax benefits of $0.5 and $0.2 during the three and nine months ended September 30, 2017, respectively, and tax provision of $0.3 and benefit of $0.4 for the corresponding periods of the fiscal year ended December 31, 2016 (fiscal 2016), respectively | $ 0.5 | $ (0.3) | $ 0.2 | $ 0.4 |
Reclassification adjustment for realized net gains included in net income, net of tax provision of $0.9 during both the three and nine months ended September 2017, respectively, and net of tax provisions of zero and $0.5 for the corresponding periods of fiscal 2016, respectively | 0.9 | 0 | 0.9 | 0.5 |
Unrealized gains (loss) net of tax provisions of $0.5 and $3.0, for the three and nine months ended September 30, 2017, respectively, and tax provisions of $0.6 and $1.2 for the corresponding periods of fiscal 2016, respectively | (0.5) | (0.6) | (3) | (1.2) |
Reclassification adjustment for realized net gains included in net income, net of tax provisions of $0.8 and $1.7 during the three and nine months ended September 30, 2017, respectively, and tax provisions of $0.3 and $0.4 for the corresponding periods of fiscal 2016, respectively | $ 0.8 | $ 0.3 | $ 1.7 | $ 0.4 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,363.7 | $ 1,833.2 |
Short-term investments | 922 | 752.3 |
Accounts receivable, net of allowances | 724.3 | 1,054.1 |
Prepaid expenses and other current assets | 273.3 | 332.3 |
Total current assets | 4,283.3 | 3,971.9 |
Property and equipment, net | 1,007.5 | 1,063.8 |
Long-term investments | 913.6 | 1,071.8 |
Restricted cash and investments | 64.9 | 99.9 |
Purchased intangible assets, net | 133 | 130.2 |
Goodwill | 3,096.2 | 3,081.7 |
Other long-term assets | 245.8 | 237.2 |
Total assets | 9,744.3 | 9,656.5 |
Current liabilities: | ||
Accounts payable | 205.4 | 221 |
Accrued compensation | 166.2 | 233.6 |
Deferred revenue | 977.4 | 1,032 |
Other accrued liabilities | 236.3 | 249.3 |
Total current liabilities | 1,585.3 | 1,735.9 |
Long-term debt | 2,135.7 | 2,133.7 |
Long-term deferred revenue | 485.5 | 449.1 |
Long-term income taxes payable | 224 | 209.2 |
Other long-term liabilities | 155.7 | 166.1 |
Total liabilities | 4,586.2 | 4,694 |
Commitments and contingencies (Note 16) | ||
Stockholders' equity: | ||
Convertible preferred stock, $0.00001 par value; 10.0 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.00001 par value; 1,000.0 shares authorized; 377.2 shares and 381.1 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 0 | 0 |
Additional paid-in capital | 8,211 | 8,281.6 |
Accumulated other comprehensive loss | (6.4) | (37.3) |
Accumulated deficit | (3,046.5) | (3,281.8) |
Total stockholders' equity | 5,158.1 | 4,962.5 |
Total liabilities and stockholders' equity | $ 9,744.3 | $ 9,656.5 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parentheticals) (Unaudited) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Convertible preferred stock - par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Convertible preferred stock - shares authorized (shares) | 10,000,000 | 10,000,000 |
Convertible preferred stock - issued (shares) | 0 | 0 |
Convertible preferred stock - outstanding (shares) | 0 | 0 |
Common stock - par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock - shares authorized (shares) | 1,000,000,000 | 1,000,000,000 |
Common stock - issued (shares) | 377,200,000 | 381,100,000 |
Common stock - outstanding (shares) | 377,200,000 | 381,100,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 454.3 | $ 403.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Share-based compensation expense | 151.1 | 162.1 |
Depreciation, amortization, and accretion | 169.7 | 151.9 |
(Gain) loss on investments and disposal of fixed assets, net | (6.7) | 1.6 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable, net | 331.9 | 36.6 |
Prepaid expenses and other assets | 51.2 | (22.2) |
Accounts payable | (11.5) | 52.1 |
Accrued compensation | (60.6) | (77) |
Income taxes payable | 8.8 | (7.5) |
Other accrued liabilities | (21.1) | (49.8) |
Deferred revenue | (21.2) | 124.7 |
Net cash provided by operating activities | 1,045.9 | 776.3 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (97.6) | (162.9) |
Purchases of available-for-sale investments | (1,298.6) | (1,251.9) |
Proceeds from sales of available-for-sale investments | 761.2 | 985.1 |
Proceeds from maturities and redemptions of available-for-sale investments | 521.3 | 232.4 |
Proceeds from Pulse note receivable | 75 | 0 |
Purchases of privately-held investments | (9.8) | (17.1) |
Proceeds from sales of privately-held investments | 1.3 | 9.5 |
Purchases of trading investments | (3.9) | (4.3) |
Payments for business acquisitions, net of cash and cash equivalents acquired | (33) | (96.7) |
Changes in restricted cash | 0 | (2.4) |
Net cash used in investing activities | (84.1) | (308.3) |
Cash flows from financing activities: | ||
Purchases and retirement of common stock | (395.5) | (323.9) |
Proceeds from issuance of common stock | 64.4 | 59.7 |
Payment of cash dividends | (113.5) | (114.4) |
Payment of debt | 0 | (300) |
Issuance of debt, net | 0 | 494 |
Payment of financing obligations | 0 | 15.5 |
Net cash used in financing activities | (444.6) | (200.1) |
Effect of foreign currency exchange rates on cash and cash equivalents | 13.3 | 0.2 |
Net increase in cash and cash equivalents | 530.5 | 268.1 |
Cash and cash equivalents at beginning of period | 1,833.2 | 1,420.9 |
Cash and cash equivalents at end of period | $ 2,363.7 | $ 1,689 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation The unaudited Condensed Consolidated Financial Statements of Juniper Networks, Inc. (the “Company” or “Juniper”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Condensed Consolidated Balance Sheet as of December 31, 2016 , has been derived from the audited Consolidated Financial Statements at that date. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. The results of operations for the three and nine months ended September 30, 2017 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 , or any future period. The information included in this Quarterly Report on Form 10-Q (“Report”) should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors,” “Quantitative and Qualitative Disclosures About Market Risk,” and the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 (the "Form 10-K"). Excess tax benefits from share-based compensation in prior periods have been reclassified to conform to the current-period presentation in the Condensed Consolidated Statements of Cash Flows upon adoption of the accounting standard described in Note 2, Summary of Significant Accounting Policies . In addition, certain other amounts in the Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current-period presentation. The preparation of the financial statements and related disclosures in accordance with U.S. GAAP requires the Company to make judgments, assumptions, and estimates that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying notes. Actual results could differ materially from those estimates under different assumptions or conditions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Except for the change in certain policies related to share-based compensation upon adoption of the accounting standard described below, there have been no material changes to the Company's significant accounting policies, compared to the accounting policies described in Note 2, Significant Accounting Policies , in Notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K. Recently Adopted Accounting Standard On January 1, 2017, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-09 (Topic 718) Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeiture, statutory tax withholding requirements, and classification on the statement of cash flows. The impact of the adoption on the Company's Condensed Consolidated Financial Statements was as follows: • Forfeitures: The Company elected to account for forfeitures as they occur using a modified retrospective transition method, rather than estimating forfeitures, resulting in a cumulative-effect adjustment of $9.0 million , which increased the January 1, 2017 opening accumulated deficit balance on the Condensed Consolidated Balance Sheets. • Income tax accounting: The Company is also required to record excess tax benefits and tax deficiencies related to stock- based compensation as income tax benefit or expense in the statement of operations prospectively when share-based awards vest or are settled. Upon adoption, the Company recognized the previously unrecognized excess tax benefits using the modified retrospective transition method, which resulted in no impact to the January 1, 2017 opening accumulated deficit balance as previously unrecognized excess tax effects were fully offset by a valuation allowance. • Cash flow presentation of excess tax benefits: The Company is required to classify excess tax benefits along with other income tax cash flows as an operating activity either prospectively or retrospectively. The Company elected to apply the change in presentation to the statements of cash flows retrospectively and no longer classify the excess tax benefits from share-based compensation as a financing activity. For the nine months ended September 30, 2016, the Company reclassified $5.8 million of excess tax benefits from share-based compensation to operating activities from financing activities. Recent Accounting Standards Not Yet Effective In August 2017, the FASB issued ASU No. 2017-12 (Topic 815) Derivatives and Hedging — Targeted Improvements to Accounting for Hedging Activities, which expands an entity's ability to hedge financial and nonfinancial risk components and amends how companies assess effectiveness as well as changes the presentation and disclosure requirements. The new standard is to be applied on a modified retrospective basis and is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements. In May 2017, the FASB issued ASU No. 2017-09 (Topic 718) Compensation—Stock Compensation: Scope of Modification Accounting, which provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. The new standard is effective on a prospective basis for interim and annual periods beginning after December 15, 2017, with early adoption permitted. In March 2017, the FASB issued ASU No. 2017-08 Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities which shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. The ASU will not impact debt securities held at a discount. This standard is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods, and is to be applied on a modified retrospective basis with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements. In February 2017, the FASB issued ASU No. 2017-05 Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which amends guidance on how entities account for the derecognition of a nonfinancial asset or an in substance nonfinancial asset that is not a business. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, and is to be applied on either a retrospective or modified retrospective basis with early adoption permitted. The adoption of this standard will not have a material impact on the Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04 (Topic 350) Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairmen t, which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. This ASU will be applied on a prospective basis and is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017. In January 2017, the FASB issued ASU No. 2017-01 (Topic 805) Business Combinations: Clarifying the Definition of a Business , which clarifies the definition of a business and assists entities with evaluating when a set of transferred assets and activities is a business. This ASU is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted and will be applied on a prospective basis. In November 2016, the FASB issued ASU No. 2016-18 (Topic 230) Statement of Cash Flow: Restricted Cash, which provides guidance on the classification of restricted cash to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows. The amendments of this ASU are effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The standard must be applied retrospectively to all periods presented. The adoption of this standard will not have a material impact on the cash flow activity presented on the Company's Consolidated Statements of Cash Flows. In October 2016, the FASB issued ASU No. 2016-16 (Topic 740) Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This ASU will be effective for annual and interim reporting periods beginning after December 15, 2017 and is to be applied on a modified retrospective basis. Early adoption is permitted. The adoption of this standard will not have a material impact on the Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15 (Topic 230) Statement of Cash Flow: Classification of Certain Cash Receipts and Cash Payments, which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. This pronouncement is effective for interim and annual reporting periods beginning after December 15, 2017 and will be applied on a retrospective basis. Early adoption is permitted. The adoption of this standard will not have a material impact on the Company's Consolidated Statements of Cash Flows. In June 2016, the FASB issued ASU No. 2016-13 (Topic 326) Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments , which provides more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. This pronouncement is effective for reporting periods beginning after December 15, 2019, and interim periods within those fiscal years, using a modified retrospective adoption method. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures. In February 2016, the FASB issued ASU No. 2016-02 (Topic 842), Leases , which requires recognition of lease assets and lease liabilities on the balance sheet by lessees for leases classified as operating leases with a lease term of more than twelve months. This ASU should be applied on a modified retrospective basis and is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this standard and has commenced the assessment phase to determine the approach for implementing this standard. The adoption of this standard is expected to have a material impact on the Company's Consolidated Balance Sheets and disclosures. The Company is still evaluating the impact this standard will have on the Consolidated Statements of Operations. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities , which changes how entities measure equity investments and present changes in the fair value of financial liabilities measured under the fair value option. The guidance also updates certain presentation and disclosure requirements. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This ASU is to be applied on a prospective basis for amendments related to equity securities without readily determinable fair values, and all other amendments in this standard will be applied on a modified retrospective basis. For equity securities without readily determinable fair values, we expect to elect the measurement alternative, defined as cost, less impairments, adjusted by observable price changes. The Company does not anticipate that the adoption of the amendments that will be applied on a modified retrospective basis will have a material impact on the Consolidated Financial Statements. In May 2014, the FASB issued ASU No. 2014-09 (Topic 606) —Revenue from Contracts with Customers and several amendments thereafter (“ASU 2014-09”), which provides guidance for revenue recognition that will supersede the revenue recognition requirements in Topic 605, and most industry specific guidance. The core principle for ASU 2014-09 is that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017. The Company intends to adopt ASU 2014-09 on January 1, 2018 retrospectively, applying the amendments to each prior reporting period presented and currently remains on schedule with its implementation and the preparation of its prior-period financial statements . Upon adoption, the Company expects a material impact to the opening balance sheet as of January 1, 2016 related to the cumulative effect of adopting this standard, primarily due to the application of the new guidance in the areas of distributor sales, software revenue, contract acquisition costs, variable consideration, and revenue allocation. The Company continues to assess the impact of ASU 2014-09 including any changes to systems, processes, and the control environment as it works through the adoption in 2017, and there remain areas still to be fully concluded upon. In addition, there are ongoing interpretive reviews, which may alter the Company's conclusions on key accounting assessments and the financial impact of ASU 2014-09 on the Company's Consolidated Financial Statements. For further information, refer to Note 2, Significant Accounting Policies , in Notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On September 18, 2017 , the Company acquired 100% of Cyphort, Inc. ("Cyphort") for $33.5 million of cash. The acquisition of Cyphort, a software company providing security analytics for advanced threat defense, is expected to strengthen Juniper's security product portfolio. The following table summarizes the estimated fair value of the assets acquired at the acquisition date (in millions, except years): Amount Net tangible assets $ 1.4 Existing technology intangible asset (*) 15.4 Goodwill 16.7 Total $ 33.5 ________________________________ (*) Weighted average estimated useful life of 5 years . Under the terms of the acquisition agreement with Cyphort, the Company assumed certain share-based awards for continuing employees, which were granted in contemplation of future services. The fair value of these share-based awards was $3.8 million , which will be expensed as share-based compensation over the remaining service period. Acquisition-related costs were not material during the three and nine months ended September 30, 2017 and were expensed in the period incurred within general and administrative expense in the Company's Condensed Consolidated Statements of Operations. The operating results of this business combination from the date of acquisition were not material to the Company's consolidated balance sheets and results of operations. Pro forma results of operations for this acquisition have not been presented, as the financial impact to the Company's consolidated results of operations is not material. The primary areas of the preliminary purchase price allocation that are subject to change relate to certain legal and income tax matters. |
Cash Equivalents and Investment
Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2017 | |
Cash Equivalents and Investments [Abstract] | |
Cash Equivalents and Investments | Cash Equivalents and Investments Investments in Available-for-Sale and Trading Securities The following table summarizes the Company's unrealized gains and losses and fair value of investments designated as available-for-sale and trading securities as of September 30, 2017 and December 31, 2016 (in millions): As of September 30, 2017 As of December 31, 2016 Amortized Gross Unrealized Gross Unrealized Estimated Fair Amortized Gross Unrealized Gross Unrealized Estimated Fair Fixed income securities: Asset-backed securities $ 288.1 $ — $ (0.3 ) $ 287.8 $ 303.0 $ 0.2 $ (0.2 ) $ 303.0 Certificates of deposit 50.0 — — 50.0 66.1 — — 66.1 Commercial paper 124.0 — — 124.0 147.7 — — 147.7 Corporate debt securities 834.1 0.8 (0.8 ) 834.1 846.5 0.4 (2.0 ) 844.9 Foreign government debt securities 64.8 — (0.1 ) 64.7 34.0 — (0.1 ) 33.9 Time deposits 411.4 — — 411.4 264.6 — — 264.6 U.S. government agency securities 156.9 — (0.4 ) 156.5 127.0 — (0.3 ) 126.7 U.S. government securities 548.3 0.1 (0.4 ) 548.0 390.7 0.1 (0.4 ) 390.4 Total fixed income securities 2,477.6 0.9 (2.0 ) 2,476.5 2,179.6 0.7 (3.0 ) 2,177.3 Money market funds 990.7 — — 990.7 592.2 — — 592.2 Mutual funds 8.2 — — 8.2 8.0 — — 8.0 Publicly-traded equity securities — — — — 5.3 — (0.7 ) 4.6 Total available-for-sale securities 3,476.5 0.9 (2.0 ) 3,475.4 2,785.1 0.7 (3.7 ) 2,782.1 Trading securities in mutual funds 26.1 — — 26.1 21.0 — — 21.0 Total $ 3,502.6 $ 0.9 $ (2.0 ) $ 3,501.5 $ 2,806.1 $ 0.7 $ (3.7 ) $ 2,803.1 Reported as: Cash equivalents $ 1,588.8 $ — $ — $ 1,588.8 $ 907.1 $ — $ — $ 907.1 Restricted investments 77.1 — — 77.1 71.9 — — 71.9 Short-term investments 922.3 0.1 (0.4 ) 922.0 753.4 0.1 (1.2 ) 752.3 Long-term investments 914.4 0.8 (1.6 ) 913.6 1,073.7 0.6 (2.5 ) 1,071.8 Total $ 3,502.6 $ 0.9 $ (2.0 ) $ 3,501.5 $ 2,806.1 $ 0.7 $ (3.7 ) $ 2,803.1 The following table presents the contractual maturities of the Company's total fixed income securities as of September 30, 2017 (in millions): Amortized Cost Estimated Fair Value Due in less than one year $ 1,563.2 $ 1,562.9 Due between one and five years 914.4 913.6 Total $ 2,477.6 $ 2,476.5 The following tables present the Company's available-for-sale securities that were in an unrealized loss position as of September 30, 2017 and December 31, 2016 (in millions): As of September 30, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed income securities: Asset-backed securities $ 224.2 $ (0.3 ) $ — $ — $ 224.2 $ (0.3 ) Corporate debt securities 361.6 (0.5 ) 59.5 (0.3 ) 421.1 (0.8 ) Foreign government debt securities 36.6 (0.1 ) — — 36.6 (0.1 ) U.S. government agency securities 89.0 (0.2 ) 18.0 (0.2 ) 107.0 (0.4 ) U.S. government securities 256.3 (0.4 ) 1.8 — 258.1 (0.4 ) Total available-for-sale securities $ 967.7 $ (1.5 ) $ 79.3 $ (0.5 ) $ 1,047.0 $ (2.0 ) As of December 31, 2016 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed income securities: Asset-backed securities $ 122.2 $ (0.2 ) $ — $ — $ 122.2 $ (0.2 ) Corporate debt securities 470.8 (1.9 ) 76.7 (0.1 ) 547.5 (2.0 ) Foreign government debt securities 20.3 (0.1 ) — — 20.3 (0.1 ) U.S. government agency securities 106.7 (0.3 ) — — 106.7 (0.3 ) U.S. government securities 254.1 (0.4 ) — — 254.1 (0.4 ) Total fixed income securities 974.1 (2.9 ) 76.7 (0.1 ) 1,050.8 (3.0 ) Publicly-traded equity securities 4.6 (0.7 ) — — 4.6 (0.7 ) Total available-for-sale securities $ 978.7 $ (3.6 ) $ 76.7 $ (0.1 ) $ 1,055.4 $ (3.7 ) The Company had 582 and 494 investments in unrealized loss positions as of September 30, 2017 and December 31, 2016 , respectively. The gross unrealized losses related to these investments were primarily due to changes in market interest rates and stock prices. For available-for-sale debt securities that have unrealized losses, the Company evaluates whether (i) it has the intention to sell any of these investments and (ii) whether it is more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. As of September 30, 2017 , the Company anticipates that it will recover the entire amortized cost basis of such available-for-sale debt securities and has determined that no other-than-temporary impairments associated with credit losses were required to be recognized during the three and nine months ended September 30, 2017 . During the three and nine months ended September 30, 2016 , there were no other-than-temporary impairments associated with these investments. During the three and nine months ended September 30, 2017 and September 30, 2016 , there were no material gross realized gains or losses from either available-for-sale securities or from trading securities. Restricted Cash and Investments There have been no material changes to the composition of the Company's restricted cash and investments as described in Note 4, Cash Equivalents and Investments , in Notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K. The restricted investments are designated as available-for-sale securities except relating to the non-qualified deferred compensation plan which are designated as trading securities. As of September 30, 2017 , total restricted cash and investments was $123.2 million , of which $58.3 million was included in prepaid expenses and other current assets and $64.9 million was included in restricted cash and investments on the Condensed Consolidated Balance Sheets. Investments in Privately-Held Companies As of September 30, 2017 and December 31, 2016 , the carrying values of the Company's investments in privately-held companies of $72.5 million and $62.7 million , respectively, were included in other long-term assets in the Condensed Consolidated Balance Sheets. These investments include debt and redeemable preferred stock securities that are carried at fair value, and non-redeemable preferred stock and common stock securities that are carried at cost. As of September 30, 2017 and December 31, 2016 , the carrying value of the investments accounted for under the cost method were $30.2 million and $19.0 million , respectively. See Note 5, Fair Value Measurements , for the Company's investments in privately-held companies that are carried at fair value. The Company adjusts the carrying value for its investments in privately-held companies that are carried at cost for any impairment if the fair value is less than the carrying value of the respective assets on an other-than-temporary basis. There were no impairment charges for the three and nine months ended September 30, 2017 . During the three and nine months ended September 30, 2016 , the Company determined that certain investments in privately-held companies were other than-temporarily impaired, resulting in impairment charges of $4.5 million and $9.6 million , that were recorded within other expense, net in the Condensed Consolidated Statement of Operations. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table provides a summary of assets and liabilities measured at fair value on a recurring basis and as reported in the Condensed Consolidated Balance Sheets (in millions): Fair Value Measurements at Fair Value Measurements at Quoted Prices in Significant Other Significant Other Total Quoted Prices in Significant Other Significant Other Total Assets: Available-for-sale securities: Asset-backed securities $ — $ 287.8 $ — $ 287.8 $ — $ 303.0 $ — $ 303.0 Certificates of deposit — 50.0 — 50.0 — 66.1 — 66.1 Commercial paper — 124.0 — 124.0 — 147.7 — 147.7 Corporate debt securities — 834.1 — 834.1 — 844.9 — 844.9 Foreign government debt securities — 64.7 — 64.7 — 33.9 — 33.9 Money market funds 990.7 — — 990.7 592.2 — — 592.2 Mutual funds 8.2 — — 8.2 8.0 — — 8.0 Publicly-traded equity securities — — — — 4.6 — — 4.6 Time deposits — 411.4 — 411.4 — 264.6 — 264.6 U.S. government agency securities — 156.5 — 156.5 — 126.7 — 126.7 U.S. government securities 343.7 204.3 — 548.0 345.0 45.4 — 390.4 Total available-for-sale securities 1,342.6 2,132.8 — 3,475.4 949.8 1,832.3 — 2,782.1 Trading securities in mutual funds 26.1 — — 26.1 21.0 — — 21.0 Privately-held debt and redeemable preferred stock securities — — 42.3 42.3 — — 43.7 43.7 Derivative assets: Foreign exchange contracts — 8.5 — 8.5 — 0.9 — 0.9 Total assets measured at fair value $ 1,368.7 $ 2,141.3 $ 42.3 $ 3,552.3 $ 970.8 $ 1,833.2 $ 43.7 $ 2,847.7 Liabilities: Derivative liabilities: Foreign exchange contracts $ — $ (0.6 ) $ — $ (0.6 ) $ — $ (4.9 ) $ — $ (4.9 ) Total liabilities measured at fair value $ — $ (0.6 ) $ — $ (0.6 ) $ — $ (4.9 ) $ — $ (4.9 ) Total assets, reported as: Cash equivalents $ 947.9 $ 640.9 $ — $ 1,588.8 $ 549.4 $ 357.7 $ — $ 907.1 Restricted investments 77.1 — — 77.1 71.9 — — 71.9 Short-term investments 231.9 690.1 — 922.0 178.0 574.3 — 752.3 Long-term investments 111.8 801.8 — 913.6 171.5 900.3 — 1,071.8 Prepaid expenses and other current assets — 8.5 — 8.5 — 0.9 — 0.9 Other long-term assets — — 42.3 42.3 — — 43.7 43.7 Total assets measured at fair value $ 1,368.7 $ 2,141.3 $ 42.3 $ 3,552.3 $ 970.8 $ 1,833.2 $ 43.7 $ 2,847.7 Total liabilities, reported as: Other accrued liabilities $ — $ (0.6 ) $ — $ (0.6 ) $ — $ (4.9 ) $ — $ (4.9 ) Total liabilities measured at fair value $ — $ (0.6 ) $ — $ (0.6 ) $ — $ (4.9 ) $ — $ (4.9 ) The Company's Level 2 available-for-sale fixed income securities are priced using quoted market prices for similar instruments or non-binding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes, or alternative pricing sources with reasonable levels of price transparency which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets. The Company's derivative instruments are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs. The Company's policy is to recognize asset or liability transfers among Level 1, Level 2, and Level 3 at the beginning of the quarter in which a change in circumstances resulted in a transfer. During the three and nine months ended September 30, 2017 , the Company had no transfers between levels of the fair value hierarchy of its assets or liabilities measured at fair value. All of the Company's privately-held debt and redeemable preferred stock securities are classified as Level 3 assets due to the lack of observable inputs to determine fair value. The Company estimates the fair value of its privately-held debt and redeemable preferred stock securities on a recurring basis using an analysis of the financial condition and near-term prospects of the investee, including recent financing activities and the investee's capital structure. During the three and nine months ended September 30, 2017 , there were no purchases, sales, gains, or losses related to privately-held debt and redeemable preferred stocks securities. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis As of September 30, 2017 , the Company had no assets required to be measured at fair value on a nonrecurring basis. Investments in privately-held companies, which are normally carried at cost, are measured at fair value on a nonrecurring basis due to events and circumstances that the Company identifies as materially impacting the carrying value of the investments. As of December 31, 2016 , certain investments in privately-held companies with a carrying value of $1.6 million were impaired and written-down to their fair value of zero and were classified as Level 3 assets due to lack of observable inputs to determine fair value. The Company estimates the fair value of its investments in privately-held companies using an analysis of the financial condition and near-term prospects of the investee, including recent financing activities and the investee's capital structure. The impairment charge was recorded to other expense, net in the Condensed Consolidated Statements of Operations. As of September 30, 2017 and December 31, 2016 , the Company had no liabilities required to be measured at fair value on a nonrecurring basis. Assets and Liabilities Not Measured at Fair Value The carrying amounts of the Company's accounts receivable, accounts payable, and other accrued liabilities approximate fair value due to their short maturities. As of September 30, 2017 and December 31, 2016 , the estimated fair value of the Company's long-term debt in the Condensed Consolidated Balance Sheets was $2,274.8 million and $2,215.7 million , respectively, based on observable market inputs (Level 2). The carrying value of the promissory note issued to the Company in connection with the previously completed sale of Junos Pulse (the “Pulse Note”), of $58.5 million and $132.9 million approximates its fair value as of September 30, 2017 and December 31, 2016 . The Pulse Note is classified as a Level 3 asset due to the lack of observable inputs to determine fair value. See Note 8, Other Financial Information , for further information on the Pulse Note. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company uses derivatives to partially offset its market exposure to fluctuations in certain foreign currencies and does not enter into derivatives for speculative or trading purposes. The notional amount of the Company's foreign currency derivatives are summarized as follows (in millions): As of September 30, December 31, Cash flow hedges $ 231.6 $ 172.0 Non-designated derivatives 147.1 — Total $ 378.7 $ 172.0 Cash Flow Hedges The Company uses foreign currency forwards to hedge the Company's planned cost of revenues and operating expenses denominated in foreign currencies. These derivatives are designated as cash flow hedges. Execution of cash flow hedge derivatives typically occurs every month with maturities of eighteen months or less. As of September 30, 2017 , an estimated $8.8 million of existing gains or losses within accumulated other comprehensive loss is expected to be reclassified into earnings within the next 12 months. The Company recognized an unrealized gain of $6.8 million and $17.6 million in accumulated other comprehensive loss for the effective portion of its derivative instruments for the three and nine months ended September 30, 2017 , respectively; and unrealized gains of $0.3 million and $4.8 million for the corresponding periods of the fiscal year ended December 31, 2016, respectively. The amounts reclassified out of accumulated other comprehensive loss to cost of revenues and operating expense in the Condensed Consolidated Statements of Operations was not material during the three and nine months ended September 30, 2017 and September 30, 2016 . The ineffective portion of the Company's derivative instruments recognized in its Condensed Consolidated Statements of Operations was not material during the three and nine months ended September 30, 2017 and September 30, 2016 . See Note 5, Fair Value Measurements , for the fair values of the Company's derivative instruments in the Condensed Consolidated Balance Sheets. Non-Designated Derivatives The Company also uses foreign currency forward contracts to mitigate variability in gains and losses generated from the remeasurement of certain monetary assets and liabilities denominated in foreign currencies. These foreign exchange forward contracts typically have maturities of approximately one month . The outstanding non-designated derivative instruments are carried at fair value. Changes in the fair value of these derivatives recorded in other expense, net within the Condensed Consolidated Statements of Operations were not material during the three and nine months ended September 30, 2017 and September 30, 2016 . |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets Goodwill The following table presents goodwill activity (in millions): Balance as of December 31, 2016 $ 3,081.7 Additions due to business combination 16.7 Other (*) (2.2 ) Balance as of September 30, 2017 $ 3,096.2 ________________________________ (*) Other primarily consists of certain purchase accounting adjustments related to previously completed business combinations. Purchased Intangible Assets The Company’s purchased intangible assets as of September 30, 2017 and December 31, 2016 , were $133.0 million and $130.2 million , respectively. The balance as of September 30, 2017 includes $15.4 million of purchased intangible assets related to the acquisition of Cyphort. See Note 3 , Business Combinations , for further details. Amortization expense was $4.1 million and $12.6 million during the three and nine months ended September 30, 2017 , respectively, and $4.8 million and $12.9 million during the three and nine months ended September 30, 2016 , respectively. |
Other Financial Information
Other Financial Information | 9 Months Ended |
Sep. 30, 2017 | |
Other Financial Information [Abstract] | |
Other Financial Information | Other Financial Information Inventory Total inventory consisted of the following (in millions): As of September 30, December 31, Production and service materials $ 72.6 $ 75.6 Finished goods 18.3 19.9 Inventory $ 90.9 $ 95.5 Reported as: Prepaid expenses and other current assets $ 84.9 $ 91.4 Other long-term assets 6.0 4.1 Total $ 90.9 $ 95.5 Note Receivable In October 2014, the Company completed the sale of its Junos Pulse product portfolio. The Company received total consideration of $230.7 million , of which $105.7 million was in cash, net of a $19.3 million working capital adjustment, and $125.0 million was in the form of a non-contingent interest-bearing promissory note due to the Company on April 1, 2016. In October 2015, the Company and the issuer of the Pulse Note mutually agreed to amend the original terms of the Pulse Note to, among other things: • extend the maturity date from April 1, 2016 to December 31, 2018; • provide that interest due on the Pulse Note through December 31, 2015 shall be paid in kind by increasing the outstanding principal amount of the note and increase the interest rate on the Pulse Note; and • require a minimum payment of $75.0 million on or prior to April 1, 2017, less any principal amount previously pre-paid to the Company. In May 2017, the Company received payment of $75.0 million and the outstanding interest due. The Company and the issuer of the Pulse Note further mutually agreed to amend the terms of the Pulse Note to, among other things: • extend the maturity date of the remaining outstanding amount of approximately $58.0 million from December 31, 2018 to September 30, 2022; • provide that interest due after April 1, 2017 can be paid in kind by increasing the outstanding principal amount of the note or paid in cash; • require the promissory note to be subordinated to other debt raised by the issuer; and • entitle the Company to additional financial considerations if the issuer of the note and its affiliates meet certain conditions. The Company considers notes receivable to be impaired when, based on current information and events, it is probable that the Company will not be able to collect the scheduled payments of principal or interest when due. No impairment charge was required for the Pulse Note as of September 30, 2017 . The outstanding balance of the Pulse Note, along with the accumulated interest paid in kind, of $58.5 million as of September 30, 2017 is classified as a long-term asset based on expected collection beyond twelve months from the Condensed Consolidated Balance Sheet date. During the three and nine months ended September 30, 2017 , the interest income on the Pulse Note was $1.6 million and $6.5 million , respectively. During the three and nine months ended and September 30, 2016 , the related amount of interest income recognized was $2.7 million and $8.0 million , respectively. Warranties Changes during the nine months ended September 30, 2017 in the Company’s warranty reserve as reported within other accrued liabilities in the Condensed Consolidated Balance Sheets were as follows (in millions): Balance as of December 31, 2016 $ 41.3 Provisions made during the period 29.6 Actual costs incurred during the period (41.5 ) Balance as of September 30, 2017 $ 29.4 Deferred Revenue Details of the Company's deferred revenue, as reported in the Condensed Consolidated Balance Sheets, were as follows (in millions): As of September 30, December 31, Deferred product revenue: Undelivered product commitments and other product deferrals $ 309.3 $ 302.4 Distributor inventory and other sell-through items 61.9 74.2 Deferred gross product revenue 371.2 376.6 Deferred cost of product revenue (47.5 ) (53.7 ) Deferred product revenue, net 323.7 322.9 Deferred service revenue 1,139.2 1,158.2 Total $ 1,462.9 $ 1,481.1 Reported as: Current $ 977.4 $ 1,032.0 Long-term 485.5 449.1 Total $ 1,462.9 $ 1,481.1 Other Expense, Net Other expense, net, consisted of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest income $ 14.7 $ 9.1 $ 37.1 $ 25.5 Interest expense (25.3 ) (25.1 ) (75.6 ) (72.6 ) Gain on investments, net 4.7 1.9 6.7 0.1 Other 0.8 0.7 (2.0 ) (0.2 ) Other expense, net $ (5.1 ) $ (13.4 ) $ (33.8 ) $ (47.2 ) |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges During the first quarter of 2017, the Company initiated a restructuring plan (the “2017 Restructuring Plan”) to realign its workforce and increase operational efficiencies. During the second quarter of 2017, the Company undertook certain further actions under the 2017 Restructuring Plan, resulting in additional severance and contract termination costs that were recorded to restructuring charges in the Condensed Consolidated Statement of Operations. During the three and nine months ended September 30, 2017 , the Company recorded $0.6 million and $26.0 million of severance costs, and $1.4 million and $3.4 million of contract terminations, respectively, that were recorded to restructuring charges in the Condensed Consolidated Statement of Operations. See Note 17, Subsequent Events, for discussion of the Company's restructuring activity subsequent to September 30, 2017 . Restructuring liabilities are reported within other accrued liabilities in the Condensed Consolidated Balance Sheets. The following table provides a summary of changes in the restructuring liabilities primarily related to the 2017 Restructuring Plan initiated in February 2017 (in millions): December 31, 2016 (*) Charges Cash Payments Other September 30, Severance $ 0.7 $ 26.0 $ (25.5 ) $ (0.1 ) $ 1.1 Contract terminations and other 0.5 3.4 (0.4 ) 0.1 3.6 Total $ 1.2 $ 29.4 $ (25.9 ) $ — $ 4.7 ________________________________ (*) Consists of costs in connection with a prior restructuring plan that is substantially complete. |
Debt and Financing
Debt and Financing | 9 Months Ended |
Sep. 30, 2017 | |
Debt Instruments [Abstract] | |
Debt and Financing | Debt and Financing Debt The Company's long-term debt is summarized as follows (in millions, except percentages): As of September 30, 2017 Amount Effective Interest Rates Senior Notes ("Notes"): 3.125% fixed-rate notes, due February 2019 $ 350.0 3.36 % 3.300% fixed-rate notes, due June 2020 300.0 3.47 % 4.600% fixed-rate notes, due March 2021 300.0 4.69 % 4.500% fixed-rate notes, due March 2024, issued March 2014 350.0 4.63 % 4.500% fixed-rate notes, due March 2024, issued February 2016 150.0 4.87 % 4.350% fixed-rate notes, due June 2025 300.0 4.47 % 5.950% fixed-rate notes, due March 2041 400.0 6.03 % Total senior notes 2,150.0 Unaccreted discount and debt issuance costs (14.3 ) Total $ 2,135.7 The Notes above are the Company’s senior unsecured and unsubordinated obligations, ranking equally in right of payment to all of the Company’s existing and future senior unsecured and unsubordinated indebtedness and senior in right of payment to any of the Company’s future indebtedness that is expressly subordinated to the Notes. Interest on the Notes is payable in cash semiannually. The Company may redeem, either in whole or in part, the Senior Notes due 2020 at any time on or after May 15, 2020, the Senior Notes due 2025 at any time on or after March 15, 2025, and the other Notes at any time, in each case, according to the terms of the indentures governing the Notes. In the event of a change of control repurchase event, the holders of the Notes may require the Company to repurchase for cash all or part of the Notes at a purchase price equal to 101% of the aggregate principal amount, plus accrued and unpaid interest, if any. The indentures that govern the Notes also contain various covenants, including limitations on the Company's ability to incur liens or enter into sale-leaseback transactions over certain dollar thresholds. As of September 30, 2017 , the Company was in compliance with all covenants in the indentures governing the Notes. Revolving Credit Facility In June 2014, the Company entered into a Credit Agreement (“Credit Agreement”) with certain institutional lenders that provides for a $500.0 million unsecured revolving credit facility, with an option to increase the amount of the credit facility by up to an additional $200.0 million , subject to certain conditions. Revolving loans may be borrowed, repaid and reborrowed until June 27, 2019, at which time all amounts borrowed must be repaid. Borrowings under the Credit Agreement will bear interest at either i) a floating rate per annum equal to the base rate plus a margin of between 0.00% and 0.50% , depending on the Company's public debt rating or ii) a per annum rate equal to the reserve adjusted Eurocurrency rate , plus a margin of between 0.90% and 1.50% , depending on the Company's public debt rating. As of September 30, 2017 , the Company was in compliance with all covenants in the Credit Agreement, and no amounts were outstanding. Financing Arrangements The Company provides certain customers with access to extended financing arrangements that allow for longer payment terms than those typically provided by the Company by factoring accounts receivable to third-party financing providers (“financing providers”). The program does not and is not intended to affect the timing of the Company's revenue recognition. Under the financing arrangements, proceeds from the financing providers are due to the Company within 1 to 90 days from the sale of the receivable. In these transactions with the financing providers, the Company surrenders control over the transferred assets. Pursuant to the financing arrangements for the sale of receivables, the Company sold net receivables of $77.3 million and $132.6 million during the three and nine months ended September 30, 2017 , respectively, and $59.3 million and $73.4 million during the three and nine months ended September 30, 2016 , respectively. The Company received cash proceeds from financing providers of $57.6 million and $113.3 million during the three and nine months ended September 30, 2017 , respectively, and $30.0 million and $40.8 million during the three and nine months ended September 30, 2016 , respectively. As of September 30, 2017 and December 31, 2016 , the amounts owed by the financing providers were $32.9 million and $13.6 million , respectively, which were recorded in accounts receivable in the Condensed Consolidated Balance Sheets. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Cash Dividends on Shares of Common Stock During the nine months ended September 30, 2017 , the Company declared a quarterly cash dividend of $0.10 per share of common stock on January 26, 2017, April 25, 2017 and July 25, 2017, which was paid on March 22, 2017, June 22, 2017 and September 22, 2017, respectively, to stockholders of record on March 1, 2017, June 1, 2017, and September 1, 2017, respectively, in the aggregate amount of $113.5 million . Any future dividends, and the establishment of record and payment dates, are subject to approval by the Board of Directors (the “Board”) of the Company or an authorized committee thereof. See Note 17, Subsequent Events, for discussion of the Company's dividend declaration subsequent to September 30, 2017 . Stock Repurchase Activities In 2014 and 2015, the Board approved a stock repurchase program that authorized the Company to repurchase up to $2.1 billion of its common stock, including $1.2 billion pursuant to an accelerated share repurchase program, and subsequent increases to the authorization totaling $1.8 billion (“Stock Repurchase Program”). In February 2017, the Board authorized an additional $500.0 million increase to the Stock Repurchase Program for a total of $4.4 billion . The following table summarizes the Company's repurchases and retirements of its common stock under its Stock Repurchase Program (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Shares repurchased 5.0 4.9 13.5 13.5 Average price per share $ 28.16 $ 23.04 $ 28.85 $ 23.25 Amount repurchased $ 140.0 $ 112.4 $ 390.0 $ 312.9 As of September 30, 2017 , there was $329.7 million of authorized funds remaining under the Stock Repurchase Program. Future share repurchases under the Stock Repurchase Program will be subject to a review of the circumstances at that 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. The Stock Repurchase Program may be discontinued at any time. See Note 17, Subsequent Events, for discussion of the Company's stock repurchase activity subsequent to September 30, 2017 . In addition to repurchases under the Stock Repurchase Program, the Company also repurchases common stock from certain employees in connection with the net issuance of shares to satisfy minimum tax withholding obligations upon the vesting of certain stock awards issued to such employees. Repurchases associated with tax withholdings were not material during the three and nine months ended September 30, 2017 . Repurchases associated with tax withholdings were $1.4 million and $11.0 million for the three and nine months ended September 30, 2016 . Accumulated Other Comprehensive Loss, Net of Tax The components of accumulated other comprehensive loss, net of related taxes, for the nine months ended September 30, 2017 were as follows (in millions): Unrealized Gains (Losses) on Available-for- Sale Securities (1) Unrealized (Losses) Gains on Cash Flow Hedges (2) Foreign Currency Translation Adjustments Total Balance as of December 31, 2016 $ 16.6 $ (4.5 ) $ (49.4 ) $ (37.3 ) Other comprehensive gains before reclassifications 1.4 14.6 19.3 35.3 Amount reclassified from accumulated other comprehensive loss (2.0 ) (2.4 ) — (4.4 ) Other comprehensive (loss) gains, net (0.6 ) 12.2 19.3 30.9 Balance as of September 30, 2017 $ 16.0 $ 7.7 $ (30.1 ) $ (6.4 ) ________________________________ (1) The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2017 for realized gains on available-for-sale securities were not material, and were included in other expense, net, in the Condensed Consolidated Statements of Operations. (2) The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2017 for realized gains on cash flow hedges were not material, and were included within cost of revenues, research and development, sales and marketing, and general and administrative in the Condensed Consolidated Statements of Operations. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Equity Incentive Plans The Company has stock-based compensation plans pursuant to which it has granted stock options, restricted stock units (“RSUs”), and performance share awards (“PSAs”). The Company also maintains the Company's 2008 Employee Stock Purchase Plan (the “ESPP”) for all eligible employees. As of September 30, 2017 , 35.3 million and 11.2 million shares were available for future issuance under the Company's 2015 Equity Incentive Plan (the "2015 Plan") and the ESPP, respectively, which includes an additional 23.0 million shares under the 2015 Plan and 9.0 million shares under the ESPP that were approved by the Company's stockholders in May 2017. Stock Option Activities The following table summarizes the Company’s stock option activity and related information as of and for the nine months ended September 30, 2017 (in millions, except for per share amounts and years): Outstanding Options Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Balance as of December 31, 2016 2.4 $ 29.20 Exercised (0.5 ) 14.97 Expired/Canceled (0.8 ) 31.09 Balance as of September 30, 2017 1.1 $ 34.31 1.1 $ 3.1 As of September 30, 2017: Vested and expected-to-vest options 1.1 $ 34.31 1.1 $ 3.1 Exercisable options 1.0 $ 35.56 0.8 $ 2.1 Restricted Stock Unit, Restricted Stock Award, and Performance Share Award Activities The Company’s RSU, restricted stock award ("RSA"), and PSA activity and related information as of and for the nine months ended September 30, 2017 were as follows (in millions, except per share amounts and years): Outstanding RSUs, RSAs, and PSAs Number of Shares Weighted Average Grant-Date Fair Value per Share Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Balance as of December 31, 2016 20.9 $ 24.05 RSUs granted (1)(3) 6.6 27.56 RSUs assumed in acquisitions 0.1 26.91 PSAs granted (2)(3) 0.6 27.37 RSUs vested (6.0 ) 23.81 RSAs vested (0.4 ) 22.80 PSAs vested (0.5 ) 24.29 RSUs canceled (1.5 ) 24.57 PSAs canceled (0.5 ) 25.11 Balance as of September 30, 2017 19.3 $ 25.23 1.1 $ 537.1 ________________________________ (1) Includes service-based and market-based RSUs. (2) The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee of the Board are achieved at target is 0.4 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 0.6 million shares. (3) The grant date fair value of RSUs and PSAs were reduced by the present value of dividends expected to be paid on the underlying shares of common stock during the requisite and derived service period as these awards are not entitled to receive dividends until vested. During the nine months ended September 30, 2017 , the Company declared a quarterly cash dividend of $0.10 per share of common stock on January 26, 2017, April 25, 2017, and July 25, 2017. Employee Stock Purchase Plan The ESPP is implemented in a series of offering periods, each currently six months in duration, or such other period as determined by the Board. Employees purchased approximately 1.2 million and 2.7 million shares of common stock through the ESPP at an average exercise price of $22.79 and $20.83 per share during the three and nine months ended September 30, 2017 , respectively. Employees purchased approximately 1.4 million and 2.7 million shares of common stock through the ESPP at an average exercise price of $19.29 and $19.66 per share during the three and nine months ended September 30, 2016 , respectively. Share-Based Compensation Expense Share-based compensation expense associated with stock options, RSUs, RSAs, PSAs, and ESPP was recorded in the following cost and expense categories in the Condensed Consolidated Statements of Operations (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cost of revenues - Product $ 1.5 $ 1.5 $ 3.8 $ 4.9 Cost of revenues - Service 3.9 3.5 13.5 11.3 Research and development 18.5 27.2 67.4 89.0 Sales and marketing 13.7 17.5 45.3 40.7 General and administrative 7.4 5.9 21.1 17.1 Total $ 45.0 $ 55.6 $ 151.1 $ 163.0 The following table summarizes share-based compensation expense by award type (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Stock options $ 0.2 $ 1.5 $ 0.5 $ 3.7 RSUs, RSAs, and PSAs 41.0 50.3 138.9 147.6 ESPP 3.8 3.8 11.7 11.7 Total $ 45.0 $ 55.6 $ 151.1 $ 163.0 As of September 30, 2017 , the unrecognized compensation cost related to unvested stock options, RSUs, RSAs, and PSAs was $309.8 million to be recognized over a weighted-average period of 1.6 years. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company operates in one reportable segment. Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance, accompanied by disaggregated information about net revenues by product and service, customer vertical, and geographic region as presented below. The following table presents net revenues by product and service (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Routing $ 585.8 $ 620.2 $ 1,679.9 $ 1,699.0 Switching 212.6 222.5 730.2 607.2 Security 71.3 85.5 205.7 237.1 Total product 869.7 928.2 2,615.8 2,543.3 Total service 388.1 357.1 1,171.9 1,061.2 Total $ 1,257.8 $ 1,285.3 $ 3,787.7 $ 3,604.5 In the first quarter of 2017, the Company began reporting revenue on the following key customer verticals: Cloud, Telecom/Cable, and Strategic Enterprise. A summary of the types of customers included in these verticals is as follows: • Cloud: companies that are heavily reliant on the cloud for their business model’s success. As an example, customers in the cloud vertical can include cloud service providers as well as enterprises that provide software-as-a-service, infrastructure-as-a-service, or platform-as-a-service. • Telecom/Cable: includes wireline and wireless carriers and cable operators. • Strategic Enterprise: generally is comprised of financial services; national, federal, state, and local governments; research and educational institutions, and enterprises not represented in the Cloud vertical. The following table presents net revenues by customer vertical (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cloud $ 344.9 $ 359.4 $ 1,056.1 $ 911.5 Telecom/Cable 576.9 599.4 1,707.8 1,688.5 Strategic Enterprise 336.0 326.5 1,023.8 1,004.5 Total $ 1,257.8 $ 1,285.3 $ 3,787.7 $ 3,604.5 The Company attributes revenues to geographic region based on the customer’s shipping address. The following table presents net revenues by geographic region (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Americas: United States $ 668.8 $ 684.6 $ 2,076.0 $ 1,924.9 Other 60.4 60.4 165.6 168.3 Total Americas 729.2 745.0 2,241.6 2,093.2 Europe, Middle East, and Africa 298.6 338.0 871.3 923.5 Asia Pacific 230.0 202.3 674.8 587.8 Total $ 1,257.8 $ 1,285.3 $ 3,787.7 $ 3,604.5 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table provides details of income taxes (in millions, except percentages): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Income before income taxes $ 225.8 $ 236.6 $ 611.6 $ 555.3 Income tax provision $ 60.1 $ 64.2 $ 157.3 $ 151.5 Effective tax rate 26.6 % 27.1 % 25.7 % 27.3 % The Company's effective tax rates during the three and nine months ended September 30, 2017 and September 30, 2016 , differ from the statutory rate primarily due to the benefit of the Section 199 deduction for U.S. production activities, the federal research and development credit, and earnings in foreign jurisdictions, which are subject to lower tax rates. Additionally, the Company's effective tax rates for the three and nine months ended September 30, 2017 were also impacted by the benefit from restructuring charges and excess tax benefits related to share-based compensation. As of September 30, 2017 , the total amount of gross unrecognized tax benefits was $236.7 million , of which $204.2 million , if recognized, would favorably affect the Company's effective tax rate. T he Company engages in continuous discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. It is reasonably possible that the balance of unrecognized tax benefits could decrease up to $67.0 million within the next twelve months due to lapses of applicable statutes of limitations and the completion of tax review cycles in various tax jurisdictions. The balance primarily relates to matters involving U.S and non-U.S taxation of cross-border transactions and the utilization of losses. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income per Share The Company computed basic and diluted net income per share as follows (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net income $ 165.7 $ 172.4 $ 454.3 $ 403.8 Denominator: Weighted-average shares used to compute basic net income per share 378.3 381.0 380.0 382.3 Dilutive effect of employee stock awards 4.4 3.5 6.5 5.6 Weighted-average shares used to compute diluted net income per share 382.7 384.5 386.5 387.9 Net income per share Basic $ 0.44 $ 0.45 $ 1.20 $ 1.06 Diluted $ 0.43 $ 0.45 $ 1.18 $ 1.04 Anti-dilutive shares 1.0 2.7 1.2 2.7 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Except for the items below, there have been no material changes to the Company's commitments compared to the commitments described in Note 16, Commitments and Contingencies , in Notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K. Clock-Signal, Supplier Component Remediation Liability As of September 30, 2017 and December 31, 2016, the Company had approximately $0.8 million and $10.8 million , respectively, in other accrued liabilities on the Condensed Consolidated Balance Sheets for the expected remediation costs for certain products containing a defect in a clock-signal component manufactured by a third-party supplier. The Company has been advised by the component supplier that components may begin to fail after the product has been in operation for 18 months. The Company is in the process of implementing the remediation with its customers. Guarantees The Company enters into agreements with customers that contain indemnification provisions relating to potential situations where claims could be alleged that the Company’s products solely, or in combination with other third party products, infringe the intellectual property rights of a third-party. As of September 30, 2017 and December 31, 2016, the Company recorded $20.1 million and $28.9 million , respectively, for such indemnification obligations in other accrued liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. During the nine months ended September 30, 2017 , $15.0 million of indemnification obligations expired and were therefore released. Legal Proceedings Investigations The U.S. Securities and Exchange Commission ("SEC") and the U.S. Department of Justice ("DOJ") are conducting investigations into possible violations by the Company of the U.S. Foreign Corrupt Practices Act ("FCPA"). The Company is cooperating with these agencies regarding these matters. The Company’s Audit Committee, with the assistance of independent advisors, has been investigating and conducting a thorough review of possible violations of the FCPA, and has made recommendations for remedial measures, including employee disciplinary actions in foreign jurisdictions, which the Company has implemented and continues to implement. The Company is unable to predict the duration, scope or outcome of the SEC and DOJ investigations, but believes that an adverse outcome is reasonably possible. However, the Company is not able to estimate a reasonable range of possible loss. The SEC and/or DOJ could take action against the Company or the Company could agree to settle. In such event, the Company could be required to pay substantial fines and sanctions and/or implement additional remedial measures; in addition, it may be determined that the Company violated the FCPA. Other Litigations and Investigations In addition to the investigations discussed above, the Company is involved in other investigations, disputes, litigations, and legal proceedings. The Company records an accrual for loss contingencies for legal proceedings when it believes that an unfavorable outcome is both (a) probable and (b) the amount or range of any possible loss is reasonably estimable. The Company intends to aggressively defend itself in these matters, and while there can be no assurances and the outcome of these matters is currently not determinable, the Company currently believes that none of these existing claims or proceedings are likely to have a material adverse effect on its financial position. Notwithstanding the foregoing, there are many uncertainties associated with any litigation and these matters or other third-party claims against the Company may cause the Company to incur costly litigation and/or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require the Company to make royalty payments, which could adversely affect gross margins in future periods. If any of those events were to occur, the Company's business, financial condition, results of operations, and cash flows could be adversely affected. The actual liability in any such matters may be materially different from the Company's estimates, if any, which could result in the need to adjust the liability and record additional expenses. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Restructuring Activities Subsequent to September 30, 2017 , the Company amended the 2017 Restructuring Plan to further realign its workforce. The Company expects to record severance charges of approximately $23.0 million to $27.0 million related to headcount reductions in the fourth quarter of 2017. Dividend Declaration On October 24, 2017, the Company announced that it had declared a cash dividend of $0.10 per share of common stock payable on December 22, 2017 to stockholders of record as of the close of business on December 1, 2017. Stock Repurchase Activities Subsequent to September 30, 2017 , through the filing of this Report, the Company repurchased 4.0 million shares of its common stock, for an aggregate purchase price of $100.0 million at an average price of $24.80 per share, under the Stock Repurchase Program. Repurchases of approximately 3.6 million shares were settled prior to the filing of this Report and the remaining shares will be settled after the filing date. The Company has an aggregate of $229.7 million of authorized funds remaining under the Stock Repurchase Program, as of the filing date. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited Condensed Consolidated Financial Statements of Juniper Networks, Inc. (the “Company” or “Juniper”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The Condensed Consolidated Balance Sheet as of December 31, 2016 , has been derived from the audited Consolidated Financial Statements at that date. In the opinion of management, all adjustments, including normal recurring accruals, considered necessary for a fair presentation have been included. The results of operations for the three and nine months ended September 30, 2017 , are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 , or any future period. The information included in this Quarterly Report on Form 10-Q (“Report”) should be read in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations,” “Risk Factors,” “Quantitative and Qualitative Disclosures About Market Risk,” and the Consolidated Financial Statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016 (the "Form 10-K"). Excess tax benefits from share-based compensation in prior periods have been reclassified to conform to the current-period presentation in the Condensed Consolidated Statements of Cash Flows upon adoption of the accounting standard described in Note 2, Summary of Significant Accounting Policies . In addition, certain other amounts in the Condensed Consolidated Statements of Cash Flows have been reclassified to conform to the current-period presentation. The preparation of the financial statements and related disclosures in accordance with U.S. GAAP requires the Company to make judgments, assumptions, and estimates that affect the amounts reported in the Condensed Consolidated Financial Statements and the accompanying notes. Actual results could differ materially from those estimates under different assumptions or conditions. |
Recent accounting pronouncements | Recently Adopted Accounting Standard On January 1, 2017, the Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-09 (Topic 718) Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, forfeiture, statutory tax withholding requirements, and classification on the statement of cash flows. The impact of the adoption on the Company's Condensed Consolidated Financial Statements was as follows: • Forfeitures: The Company elected to account for forfeitures as they occur using a modified retrospective transition method, rather than estimating forfeitures, resulting in a cumulative-effect adjustment of $9.0 million , which increased the January 1, 2017 opening accumulated deficit balance on the Condensed Consolidated Balance Sheets. • Income tax accounting: The Company is also required to record excess tax benefits and tax deficiencies related to stock- based compensation as income tax benefit or expense in the statement of operations prospectively when share-based awards vest or are settled. Upon adoption, the Company recognized the previously unrecognized excess tax benefits using the modified retrospective transition method, which resulted in no impact to the January 1, 2017 opening accumulated deficit balance as previously unrecognized excess tax effects were fully offset by a valuation allowance. • Cash flow presentation of excess tax benefits: The Company is required to classify excess tax benefits along with other income tax cash flows as an operating activity either prospectively or retrospectively. The Company elected to apply the change in presentation to the statements of cash flows retrospectively and no longer classify the excess tax benefits from share-based compensation as a financing activity. For the nine months ended September 30, 2016, the Company reclassified $5.8 million of excess tax benefits from share-based compensation to operating activities from financing activities. Recent Accounting Standards Not Yet Effective In August 2017, the FASB issued ASU No. 2017-12 (Topic 815) Derivatives and Hedging — Targeted Improvements to Accounting for Hedging Activities, which expands an entity's ability to hedge financial and nonfinancial risk components and amends how companies assess effectiveness as well as changes the presentation and disclosure requirements. The new standard is to be applied on a modified retrospective basis and is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements. In May 2017, the FASB issued ASU No. 2017-09 (Topic 718) Compensation—Stock Compensation: Scope of Modification Accounting, which provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. The new standard is effective on a prospective basis for interim and annual periods beginning after December 15, 2017, with early adoption permitted. In March 2017, the FASB issued ASU No. 2017-08 Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities which shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. The ASU will not impact debt securities held at a discount. This standard is effective for annual reporting periods beginning after December 15, 2018, including interim reporting periods within those annual reporting periods, and is to be applied on a modified retrospective basis with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements. In February 2017, the FASB issued ASU No. 2017-05 Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which amends guidance on how entities account for the derecognition of a nonfinancial asset or an in substance nonfinancial asset that is not a business. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, and is to be applied on either a retrospective or modified retrospective basis with early adoption permitted. The adoption of this standard will not have a material impact on the Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04 (Topic 350) Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairmen t, which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Under the amended guidance, a goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. This ASU will be applied on a prospective basis and is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017. In January 2017, the FASB issued ASU No. 2017-01 (Topic 805) Business Combinations: Clarifying the Definition of a Business , which clarifies the definition of a business and assists entities with evaluating when a set of transferred assets and activities is a business. This ASU is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted and will be applied on a prospective basis. In November 2016, the FASB issued ASU No. 2016-18 (Topic 230) Statement of Cash Flow: Restricted Cash, which provides guidance on the classification of restricted cash to be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows. The amendments of this ASU are effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The standard must be applied retrospectively to all periods presented. The adoption of this standard will not have a material impact on the cash flow activity presented on the Company's Consolidated Statements of Cash Flows. In October 2016, the FASB issued ASU No. 2016-16 (Topic 740) Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This ASU will be effective for annual and interim reporting periods beginning after December 15, 2017 and is to be applied on a modified retrospective basis. Early adoption is permitted. The adoption of this standard will not have a material impact on the Consolidated Financial Statements. In August 2016, the FASB issued ASU No. 2016-15 (Topic 230) Statement of Cash Flow: Classification of Certain Cash Receipts and Cash Payments, which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. This pronouncement is effective for interim and annual reporting periods beginning after December 15, 2017 and will be applied on a retrospective basis. Early adoption is permitted. The adoption of this standard will not have a material impact on the Company's Consolidated Statements of Cash Flows. In June 2016, the FASB issued ASU No. 2016-13 (Topic 326) Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments , which provides more decision-useful information about the expected credit losses on financial instruments and changes the loss impairment methodology. This pronouncement is effective for reporting periods beginning after December 15, 2019, and interim periods within those fiscal years, using a modified retrospective adoption method. Early adoption is permitted. The Company is currently evaluating the impact that this standard will have on its Consolidated Financial Statements and disclosures. In February 2016, the FASB issued ASU No. 2016-02 (Topic 842), Leases , which requires recognition of lease assets and lease liabilities on the balance sheet by lessees for leases classified as operating leases with a lease term of more than twelve months. This ASU should be applied on a modified retrospective basis and is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this standard and has commenced the assessment phase to determine the approach for implementing this standard. The adoption of this standard is expected to have a material impact on the Company's Consolidated Balance Sheets and disclosures. The Company is still evaluating the impact this standard will have on the Consolidated Statements of Operations. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities , which changes how entities measure equity investments and present changes in the fair value of financial liabilities measured under the fair value option. The guidance also updates certain presentation and disclosure requirements. This ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This ASU is to be applied on a prospective basis for amendments related to equity securities without readily determinable fair values, and all other amendments in this standard will be applied on a modified retrospective basis. For equity securities without readily determinable fair values, we expect to elect the measurement alternative, defined as cost, less impairments, adjusted by observable price changes. The Company does not anticipate that the adoption of the amendments that will be applied on a modified retrospective basis will have a material impact on the Consolidated Financial Statements. In May 2014, the FASB issued ASU No. 2014-09 (Topic 606) —Revenue from Contracts with Customers and several amendments thereafter (“ASU 2014-09”), which provides guidance for revenue recognition that will supersede the revenue recognition requirements in Topic 605, and most industry specific guidance. The core principle for ASU 2014-09 is that revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017. The Company intends to adopt ASU 2014-09 on January 1, 2018 retrospectively, applying the amendments to each prior reporting period presented and currently remains on schedule with its implementation and the preparation of its prior-period financial statements . Upon adoption, the Company expects a material impact to the opening balance sheet as of January 1, 2016 related to the cumulative effect of adopting this standard, primarily due to the application of the new guidance in the areas of distributor sales, software revenue, contract acquisition costs, variable consideration, and revenue allocation. The Company continues to assess the impact of ASU 2014-09 including any changes to systems, processes, and the control environment as it works through the adoption in 2017, and there remain areas still to be fully concluded upon. In addition, there are ongoing interpretive reviews, which may alter the Company's conclusions on key accounting assessments and the financial impact of ASU 2014-09 on the Company's Consolidated Financial Statements. For further information, refer to Note 2, Significant Accounting Policies , in Notes to Consolidated Financial Statements in Item 8 of Part II of the Form 10-K. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired at the acquisition date (in millions, except years): Amount Net tangible assets $ 1.4 Existing technology intangible asset (*) 15.4 Goodwill 16.7 Total $ 33.5 ________________________________ (*) Weighted average estimated useful life of 5 years . |
Cash Equivalents and Investme27
Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Cash Equivalents and Investments [Abstract] | |
Unrealized gains and losses and fair value of available-for-sale and trading securities | The following table summarizes the Company's unrealized gains and losses and fair value of investments designated as available-for-sale and trading securities as of September 30, 2017 and December 31, 2016 (in millions): As of September 30, 2017 As of December 31, 2016 Amortized Gross Unrealized Gross Unrealized Estimated Fair Amortized Gross Unrealized Gross Unrealized Estimated Fair Fixed income securities: Asset-backed securities $ 288.1 $ — $ (0.3 ) $ 287.8 $ 303.0 $ 0.2 $ (0.2 ) $ 303.0 Certificates of deposit 50.0 — — 50.0 66.1 — — 66.1 Commercial paper 124.0 — — 124.0 147.7 — — 147.7 Corporate debt securities 834.1 0.8 (0.8 ) 834.1 846.5 0.4 (2.0 ) 844.9 Foreign government debt securities 64.8 — (0.1 ) 64.7 34.0 — (0.1 ) 33.9 Time deposits 411.4 — — 411.4 264.6 — — 264.6 U.S. government agency securities 156.9 — (0.4 ) 156.5 127.0 — (0.3 ) 126.7 U.S. government securities 548.3 0.1 (0.4 ) 548.0 390.7 0.1 (0.4 ) 390.4 Total fixed income securities 2,477.6 0.9 (2.0 ) 2,476.5 2,179.6 0.7 (3.0 ) 2,177.3 Money market funds 990.7 — — 990.7 592.2 — — 592.2 Mutual funds 8.2 — — 8.2 8.0 — — 8.0 Publicly-traded equity securities — — — — 5.3 — (0.7 ) 4.6 Total available-for-sale securities 3,476.5 0.9 (2.0 ) 3,475.4 2,785.1 0.7 (3.7 ) 2,782.1 Trading securities in mutual funds 26.1 — — 26.1 21.0 — — 21.0 Total $ 3,502.6 $ 0.9 $ (2.0 ) $ 3,501.5 $ 2,806.1 $ 0.7 $ (3.7 ) $ 2,803.1 Reported as: Cash equivalents $ 1,588.8 $ — $ — $ 1,588.8 $ 907.1 $ — $ — $ 907.1 Restricted investments 77.1 — — 77.1 71.9 — — 71.9 Short-term investments 922.3 0.1 (0.4 ) 922.0 753.4 0.1 (1.2 ) 752.3 Long-term investments 914.4 0.8 (1.6 ) 913.6 1,073.7 0.6 (2.5 ) 1,071.8 Total $ 3,502.6 $ 0.9 $ (2.0 ) $ 3,501.5 $ 2,806.1 $ 0.7 $ (3.7 ) $ 2,803.1 |
Maturities of fixed income securities | The following table presents the contractual maturities of the Company's total fixed income securities as of September 30, 2017 (in millions): Amortized Cost Estimated Fair Value Due in less than one year $ 1,563.2 $ 1,562.9 Due between one and five years 914.4 913.6 Total $ 2,477.6 $ 2,476.5 |
Available-for-sale securities in unrealized loss position | The following tables present the Company's available-for-sale securities that were in an unrealized loss position as of September 30, 2017 and December 31, 2016 (in millions): As of September 30, 2017 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed income securities: Asset-backed securities $ 224.2 $ (0.3 ) $ — $ — $ 224.2 $ (0.3 ) Corporate debt securities 361.6 (0.5 ) 59.5 (0.3 ) 421.1 (0.8 ) Foreign government debt securities 36.6 (0.1 ) — — 36.6 (0.1 ) U.S. government agency securities 89.0 (0.2 ) 18.0 (0.2 ) 107.0 (0.4 ) U.S. government securities 256.3 (0.4 ) 1.8 — 258.1 (0.4 ) Total available-for-sale securities $ 967.7 $ (1.5 ) $ 79.3 $ (0.5 ) $ 1,047.0 $ (2.0 ) As of December 31, 2016 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fixed income securities: Asset-backed securities $ 122.2 $ (0.2 ) $ — $ — $ 122.2 $ (0.2 ) Corporate debt securities 470.8 (1.9 ) 76.7 (0.1 ) 547.5 (2.0 ) Foreign government debt securities 20.3 (0.1 ) — — 20.3 (0.1 ) U.S. government agency securities 106.7 (0.3 ) — — 106.7 (0.3 ) U.S. government securities 254.1 (0.4 ) — — 254.1 (0.4 ) Total fixed income securities 974.1 (2.9 ) 76.7 (0.1 ) 1,050.8 (3.0 ) Publicly-traded equity securities 4.6 (0.7 ) — — 4.6 (0.7 ) Total available-for-sale securities $ 978.7 $ (3.6 ) $ 76.7 $ (0.1 ) $ 1,055.4 $ (3.7 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following table provides a summary of assets and liabilities measured at fair value on a recurring basis and as reported in the Condensed Consolidated Balance Sheets (in millions): Fair Value Measurements at Fair Value Measurements at Quoted Prices in Significant Other Significant Other Total Quoted Prices in Significant Other Significant Other Total Assets: Available-for-sale securities: Asset-backed securities $ — $ 287.8 $ — $ 287.8 $ — $ 303.0 $ — $ 303.0 Certificates of deposit — 50.0 — 50.0 — 66.1 — 66.1 Commercial paper — 124.0 — 124.0 — 147.7 — 147.7 Corporate debt securities — 834.1 — 834.1 — 844.9 — 844.9 Foreign government debt securities — 64.7 — 64.7 — 33.9 — 33.9 Money market funds 990.7 — — 990.7 592.2 — — 592.2 Mutual funds 8.2 — — 8.2 8.0 — — 8.0 Publicly-traded equity securities — — — — 4.6 — — 4.6 Time deposits — 411.4 — 411.4 — 264.6 — 264.6 U.S. government agency securities — 156.5 — 156.5 — 126.7 — 126.7 U.S. government securities 343.7 204.3 — 548.0 345.0 45.4 — 390.4 Total available-for-sale securities 1,342.6 2,132.8 — 3,475.4 949.8 1,832.3 — 2,782.1 Trading securities in mutual funds 26.1 — — 26.1 21.0 — — 21.0 Privately-held debt and redeemable preferred stock securities — — 42.3 42.3 — — 43.7 43.7 Derivative assets: Foreign exchange contracts — 8.5 — 8.5 — 0.9 — 0.9 Total assets measured at fair value $ 1,368.7 $ 2,141.3 $ 42.3 $ 3,552.3 $ 970.8 $ 1,833.2 $ 43.7 $ 2,847.7 Liabilities: Derivative liabilities: Foreign exchange contracts $ — $ (0.6 ) $ — $ (0.6 ) $ — $ (4.9 ) $ — $ (4.9 ) Total liabilities measured at fair value $ — $ (0.6 ) $ — $ (0.6 ) $ — $ (4.9 ) $ — $ (4.9 ) Total assets, reported as: Cash equivalents $ 947.9 $ 640.9 $ — $ 1,588.8 $ 549.4 $ 357.7 $ — $ 907.1 Restricted investments 77.1 — — 77.1 71.9 — — 71.9 Short-term investments 231.9 690.1 — 922.0 178.0 574.3 — 752.3 Long-term investments 111.8 801.8 — 913.6 171.5 900.3 — 1,071.8 Prepaid expenses and other current assets — 8.5 — 8.5 — 0.9 — 0.9 Other long-term assets — — 42.3 42.3 — — 43.7 43.7 Total assets measured at fair value $ 1,368.7 $ 2,141.3 $ 42.3 $ 3,552.3 $ 970.8 $ 1,833.2 $ 43.7 $ 2,847.7 Total liabilities, reported as: Other accrued liabilities $ — $ (0.6 ) $ — $ (0.6 ) $ — $ (4.9 ) $ — $ (4.9 ) Total liabilities measured at fair value $ — $ (0.6 ) $ — $ (0.6 ) $ — $ (4.9 ) $ — $ (4.9 ) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments | The notional amount of the Company's foreign currency derivatives are summarized as follows (in millions): As of September 30, December 31, Cash flow hedges $ 231.6 $ 172.0 Non-designated derivatives 147.1 — Total $ 378.7 $ 172.0 |
Goodwill and Purchased Intang30
Goodwill and Purchased Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The following table presents goodwill activity (in millions): Balance as of December 31, 2016 $ 3,081.7 Additions due to business combination 16.7 Other (*) (2.2 ) Balance as of September 30, 2017 $ 3,096.2 ________________________________ (*) Other primarily consists of certain purchase accounting adjustments related to previously completed business combinations. |
Other Financial Information (Ta
Other Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Financial Information [Abstract] | |
Inventories | Total inventory consisted of the following (in millions): As of September 30, December 31, Production and service materials $ 72.6 $ 75.6 Finished goods 18.3 19.9 Inventory $ 90.9 $ 95.5 Reported as: Prepaid expenses and other current assets $ 84.9 $ 91.4 Other long-term assets 6.0 4.1 Total $ 90.9 $ 95.5 |
Warranties | Changes during the nine months ended September 30, 2017 in the Company’s warranty reserve as reported within other accrued liabilities in the Condensed Consolidated Balance Sheets were as follows (in millions): Balance as of December 31, 2016 $ 41.3 Provisions made during the period 29.6 Actual costs incurred during the period (41.5 ) Balance as of September 30, 2017 $ 29.4 |
Deferred revenue | Details of the Company's deferred revenue, as reported in the Condensed Consolidated Balance Sheets, were as follows (in millions): As of September 30, December 31, Deferred product revenue: Undelivered product commitments and other product deferrals $ 309.3 $ 302.4 Distributor inventory and other sell-through items 61.9 74.2 Deferred gross product revenue 371.2 376.6 Deferred cost of product revenue (47.5 ) (53.7 ) Deferred product revenue, net 323.7 322.9 Deferred service revenue 1,139.2 1,158.2 Total $ 1,462.9 $ 1,481.1 Reported as: Current $ 977.4 $ 1,032.0 Long-term 485.5 449.1 Total $ 1,462.9 $ 1,481.1 |
Other expense, net | Other expense, net, consisted of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Interest income $ 14.7 $ 9.1 $ 37.1 $ 25.5 Interest expense (25.3 ) (25.1 ) (75.6 ) (72.6 ) Gain on investments, net 4.7 1.9 6.7 0.1 Other 0.8 0.7 (2.0 ) (0.2 ) Other expense, net $ (5.1 ) $ (13.4 ) $ (33.8 ) $ (47.2 ) |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring liabilities | Restructuring liabilities are reported within other accrued liabilities in the Condensed Consolidated Balance Sheets. The following table provides a summary of changes in the restructuring liabilities primarily related to the 2017 Restructuring Plan initiated in February 2017 (in millions): December 31, 2016 (*) Charges Cash Payments Other September 30, Severance $ 0.7 $ 26.0 $ (25.5 ) $ (0.1 ) $ 1.1 Contract terminations and other 0.5 3.4 (0.4 ) 0.1 3.6 Total $ 1.2 $ 29.4 $ (25.9 ) $ — $ 4.7 ________________________________ (*) Consists of costs in connection with a prior restructuring plan that is substantially complete. |
Debt and Financing (Tables)
Debt and Financing (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Instruments [Abstract] | |
Long-term debt | The Company's long-term debt is summarized as follows (in millions, except percentages): As of September 30, 2017 Amount Effective Interest Rates Senior Notes ("Notes"): 3.125% fixed-rate notes, due February 2019 $ 350.0 3.36 % 3.300% fixed-rate notes, due June 2020 300.0 3.47 % 4.600% fixed-rate notes, due March 2021 300.0 4.69 % 4.500% fixed-rate notes, due March 2024, issued March 2014 350.0 4.63 % 4.500% fixed-rate notes, due March 2024, issued February 2016 150.0 4.87 % 4.350% fixed-rate notes, due June 2025 300.0 4.47 % 5.950% fixed-rate notes, due March 2041 400.0 6.03 % Total senior notes 2,150.0 Unaccreted discount and debt issuance costs (14.3 ) Total $ 2,135.7 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Repurchase Agreements | The following table summarizes the Company's repurchases and retirements of its common stock under its Stock Repurchase Program (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Shares repurchased 5.0 4.9 13.5 13.5 Average price per share $ 28.16 $ 23.04 $ 28.85 $ 23.25 Amount repurchased $ 140.0 $ 112.4 $ 390.0 $ 312.9 |
Components of accumulated other comprehensive income, net of taxes | The components of accumulated other comprehensive loss, net of related taxes, for the nine months ended September 30, 2017 were as follows (in millions): Unrealized Gains (Losses) on Available-for- Sale Securities (1) Unrealized (Losses) Gains on Cash Flow Hedges (2) Foreign Currency Translation Adjustments Total Balance as of December 31, 2016 $ 16.6 $ (4.5 ) $ (49.4 ) $ (37.3 ) Other comprehensive gains before reclassifications 1.4 14.6 19.3 35.3 Amount reclassified from accumulated other comprehensive loss (2.0 ) (2.4 ) — (4.4 ) Other comprehensive (loss) gains, net (0.6 ) 12.2 19.3 30.9 Balance as of September 30, 2017 $ 16.0 $ 7.7 $ (30.1 ) $ (6.4 ) ________________________________ (1) The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2017 for realized gains on available-for-sale securities were not material, and were included in other expense, net, in the Condensed Consolidated Statements of Operations. (2) The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2017 for realized gains on cash flow hedges were not material, and were included within cost of revenues, research and development, sales and marketing, and general and administrative in the Condensed Consolidated Statements of Operations. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of share-based compensation, stock options, activity | The following table summarizes the Company’s stock option activity and related information as of and for the nine months ended September 30, 2017 (in millions, except for per share amounts and years): Outstanding Options Number of Shares Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Balance as of December 31, 2016 2.4 $ 29.20 Exercised (0.5 ) 14.97 Expired/Canceled (0.8 ) 31.09 Balance as of September 30, 2017 1.1 $ 34.31 1.1 $ 3.1 As of September 30, 2017: Vested and expected-to-vest options 1.1 $ 34.31 1.1 $ 3.1 Exercisable options 1.0 $ 35.56 0.8 $ 2.1 |
Schedule of nonvested share activity | The Company’s RSU, restricted stock award ("RSA"), and PSA activity and related information as of and for the nine months ended September 30, 2017 were as follows (in millions, except per share amounts and years): Outstanding RSUs, RSAs, and PSAs Number of Shares Weighted Average Grant-Date Fair Value per Share Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value Balance as of December 31, 2016 20.9 $ 24.05 RSUs granted (1)(3) 6.6 27.56 RSUs assumed in acquisitions 0.1 26.91 PSAs granted (2)(3) 0.6 27.37 RSUs vested (6.0 ) 23.81 RSAs vested (0.4 ) 22.80 PSAs vested (0.5 ) 24.29 RSUs canceled (1.5 ) 24.57 PSAs canceled (0.5 ) 25.11 Balance as of September 30, 2017 19.3 $ 25.23 1.1 $ 537.1 ________________________________ (1) Includes service-based and market-based RSUs. (2) The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee of the Board are achieved at target is 0.4 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is 0 to 0.6 million shares. (3) The grant date fair value of RSUs and PSAs were reduced by the present value of dividends expected to be paid on the underlying shares of common stock during the requisite and derived service period as these awards are not entitled to receive dividends until vested. During the nine months ended September 30, 2017 , the Company declared a quarterly cash dividend of $0.10 per share of common stock on January 26, 2017, April 25, 2017, and July 25, 2017. |
Schedule of employee service share-based compensation, allocation of recognized period costs | Share-based compensation expense associated with stock options, RSUs, RSAs, PSAs, and ESPP was recorded in the following cost and expense categories in the Condensed Consolidated Statements of Operations (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cost of revenues - Product $ 1.5 $ 1.5 $ 3.8 $ 4.9 Cost of revenues - Service 3.9 3.5 13.5 11.3 Research and development 18.5 27.2 67.4 89.0 Sales and marketing 13.7 17.5 45.3 40.7 General and administrative 7.4 5.9 21.1 17.1 Total $ 45.0 $ 55.6 $ 151.1 $ 163.0 |
Disclosure of share-based compensation arrangements by share-based payment award | The following table summarizes share-based compensation expense by award type (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Stock options $ 0.2 $ 1.5 $ 0.5 $ 3.7 RSUs, RSAs, and PSAs 41.0 50.3 138.9 147.6 ESPP 3.8 3.8 11.7 11.7 Total $ 45.0 $ 55.6 $ 151.1 $ 163.0 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Financial information for each segment | The following table presents net revenues by customer vertical (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Cloud $ 344.9 $ 359.4 $ 1,056.1 $ 911.5 Telecom/Cable 576.9 599.4 1,707.8 1,688.5 Strategic Enterprise 336.0 326.5 1,023.8 1,004.5 Total $ 1,257.8 $ 1,285.3 $ 3,787.7 $ 3,604.5 The following table presents net revenues by product and service (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Routing $ 585.8 $ 620.2 $ 1,679.9 $ 1,699.0 Switching 212.6 222.5 730.2 607.2 Security 71.3 85.5 205.7 237.1 Total product 869.7 928.2 2,615.8 2,543.3 Total service 388.1 357.1 1,171.9 1,061.2 Total $ 1,257.8 $ 1,285.3 $ 3,787.7 $ 3,604.5 |
Net revenues by geographic region | The Company attributes revenues to geographic region based on the customer’s shipping address. The following table presents net revenues by geographic region (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Americas: United States $ 668.8 $ 684.6 $ 2,076.0 $ 1,924.9 Other 60.4 60.4 165.6 168.3 Total Americas 729.2 745.0 2,241.6 2,093.2 Europe, Middle East, and Africa 298.6 338.0 871.3 923.5 Asia Pacific 230.0 202.3 674.8 587.8 Total $ 1,257.8 $ 1,285.3 $ 3,787.7 $ 3,604.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | The following table provides details of income taxes (in millions, except percentages): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Income before income taxes $ 225.8 $ 236.6 $ 611.6 $ 555.3 Income tax provision $ 60.1 $ 64.2 $ 157.3 $ 151.5 Effective tax rate 26.6 % 27.1 % 25.7 % 27.3 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | The Company computed basic and diluted net income per share as follows (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator: Net income $ 165.7 $ 172.4 $ 454.3 $ 403.8 Denominator: Weighted-average shares used to compute basic net income per share 378.3 381.0 380.0 382.3 Dilutive effect of employee stock awards 4.4 3.5 6.5 5.6 Weighted-average shares used to compute diluted net income per share 382.7 384.5 386.5 387.9 Net income per share Basic $ 0.44 $ 0.45 $ 1.20 $ 1.06 Diluted $ 0.43 $ 0.45 $ 1.18 $ 1.04 Anti-dilutive shares 1.0 2.7 1.2 2.7 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Jan. 01, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash provided by operating activities | $ 1,045.9 | $ 776.3 | |
Net cash used in financing activities | $ (444.6) | (200.1) | |
Accounting Standards Update 2016-09, Excess Tax Benefit Component | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash provided by operating activities | 5.8 | ||
Net cash used in financing activities | $ (5.8) | ||
Accounting Standards Update 2016-09, Excess Tax Benefit Component | Additional Paid-in Capital | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment | $ 9 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - Cyphort $ in Millions | Sep. 18, 2017USD ($) |
Business Acquisition [Line Items] | |
Voting interests acquired (percentage) | 100.00% |
Fair value of grants acquired | $ 3.8 |
Payments to acquire businesses | $ 33.5 |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation (Details) - Cyphort $ in Millions | Sep. 18, 2017USD ($) |
Business Acquisition [Line Items] | |
Net tangible assets | $ 1.4 |
Existing technology intangible asset() | 15.4 |
Goodwill, Gross | 16.7 |
Total | $ 33.5 |
Weighted Average Estimated Useful Life (in Years) | 5 years |
Cash Equivalents and Investme42
Cash Equivalents and Investments - Available-For-Sale and Trading Securities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | $ 3,476.5 | $ 2,785.1 |
Available-for-sale securities, gross unrealized gains | 0.9 | 0.7 |
Available-for-sale securities, gross unrealized losses | (2) | (3.7) |
Available-for-sale securities, estimated fair value | 3,475.4 | 2,782.1 |
Available-for-sale and Trading Securities [Abstract] | ||
Total investments, amortized cost | 3,502.6 | 2,806.1 |
Total investments, gross unrealized gains | 0.9 | 0.7 |
Total investments, gross unrealized losses | (2) | (3.7) |
Total investments, estimated fair value | 3,501.5 | 2,803.1 |
Debt Securities | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | 2,477.6 | 2,179.6 |
Available-for-sale securities, gross unrealized gains | 0.9 | 0.7 |
Available-for-sale securities, gross unrealized losses | (2) | (3) |
Available-for-sale securities, estimated fair value | 2,476.5 | 2,177.3 |
Asset-backed securities | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | 288.1 | 303 |
Available-for-sale securities, gross unrealized gains | 0 | 0.2 |
Available-for-sale securities, gross unrealized losses | (0.3) | (0.2) |
Available-for-sale securities, estimated fair value | 287.8 | 303 |
Certificates of deposit | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | 50 | 66.1 |
Available-for-sale securities, gross unrealized gains | 0 | 0 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Available-for-sale securities, estimated fair value | 50 | 66.1 |
Commercial paper | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | 124 | 147.7 |
Available-for-sale securities, gross unrealized gains | 0 | 0 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Available-for-sale securities, estimated fair value | 124 | 147.7 |
Corporate debt securities | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | 834.1 | 846.5 |
Available-for-sale securities, gross unrealized gains | 0.8 | 0.4 |
Available-for-sale securities, gross unrealized losses | (0.8) | (2) |
Available-for-sale securities, estimated fair value | 834.1 | 844.9 |
Foreign government debt securities | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | 64.8 | 34 |
Available-for-sale securities, gross unrealized gains | 0 | 0 |
Available-for-sale securities, gross unrealized losses | (0.1) | (0.1) |
Available-for-sale securities, estimated fair value | 64.7 | 33.9 |
Time deposits | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | 411.4 | 264.6 |
Available-for-sale securities, gross unrealized gains | 0 | 0 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Available-for-sale securities, estimated fair value | 411.4 | 264.6 |
U.S. government agency securities | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | 156.9 | 127 |
Available-for-sale securities, gross unrealized gains | 0 | 0 |
Available-for-sale securities, gross unrealized losses | (0.4) | (0.3) |
Available-for-sale securities, estimated fair value | 156.5 | 126.7 |
U.S. government securities | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | 548.3 | 390.7 |
Available-for-sale securities, gross unrealized gains | 0.1 | 0.1 |
Available-for-sale securities, gross unrealized losses | (0.4) | (0.4) |
Available-for-sale securities, estimated fair value | 548 | 390.4 |
Mutual funds | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | 8.2 | 8 |
Available-for-sale securities, gross unrealized gains | 0 | 0 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Available-for-sale securities, estimated fair value | 8.2 | 8 |
Trading securities: | ||
Trading securities, amortized cost | 26.1 | 21 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Trading securities, estimated fair value | 26.1 | 21 |
Money market funds | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | 990.7 | 592.2 |
Available-for-sale securities, gross unrealized gains | 0 | 0 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Available-for-sale securities, estimated fair value | 990.7 | 592.2 |
Publicly-traded equity securities | ||
Available-for-sale securities: | ||
Available-for-sale securities, amortized cost | 0 | 5.3 |
Available-for-sale securities, gross unrealized gains | 0 | 0 |
Available-for-sale securities, gross unrealized losses | 0 | (0.7) |
Available-for-sale securities, estimated fair value | 0 | 4.6 |
Cash equivalents | ||
Available-for-sale and Trading Securities [Abstract] | ||
Total investments, amortized cost | 1,588.8 | 907.1 |
Total investments, gross unrealized gains | 0 | 0 |
Total investments, gross unrealized losses | 0 | 0 |
Total investments, estimated fair value | 1,588.8 | 907.1 |
Restricted investments | ||
Available-for-sale and Trading Securities [Abstract] | ||
Total investments, amortized cost | 77.1 | 71.9 |
Total investments, gross unrealized gains | 0 | 0 |
Total investments, gross unrealized losses | 0 | 0 |
Total investments, estimated fair value | 77.1 | 71.9 |
Short-term investments | ||
Available-for-sale and Trading Securities [Abstract] | ||
Total investments, amortized cost | 922.3 | 753.4 |
Total investments, gross unrealized gains | 0.1 | 0.1 |
Total investments, gross unrealized losses | (0.4) | (1.2) |
Total investments, estimated fair value | 922 | 752.3 |
Long-term investments | ||
Available-for-sale and Trading Securities [Abstract] | ||
Total investments, amortized cost | 914.4 | 1,073.7 |
Total investments, gross unrealized gains | 0.8 | 0.6 |
Total investments, gross unrealized losses | (1.6) | (2.5) |
Total investments, estimated fair value | $ 913.6 | $ 1,071.8 |
Cash Equivalents and Investme43
Cash Equivalents and Investments - Maturities of Fixed Income Investments (Details) $ in Millions | Sep. 30, 2017USD ($) |
Schedule of Fixed Income Securities Maturities [Abstract] | |
Amortized cost due within one year | $ 1,563.2 |
Amortized cost due between one and five years | 914.4 |
Total investments, amortized cost | 2,477.6 |
Estimated fair value due within one year | 1,562.9 |
Estimated fair value due between one and five year | 913.6 |
Total investments, estimated fair value | $ 2,476.5 |
Cash Equivalents and Investme44
Cash Equivalents and Investments - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)Investment | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Investment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($)Investment | |
Cash Equivalents and Investments [Abstract] | |||||
Total investments in unrealized loss position | Investment | 582 | 582 | 494 | ||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash and investments | $ 123.2 | $ 123.2 | |||
Investments in privately-held companies | 72.5 | 72.5 | $ 62.7 | ||
Cost method investment | 30.2 | 30.2 | $ 19 | ||
Prepaid expenses and other current assets | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash and investments | 58.3 | 58.3 | |||
Restricted Cash and Investments, Noncurrent | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash and investments | 64.9 | 64.9 | |||
Debt Securities | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
OTTI | 0 | $ 0 | 0 | $ 0 | |
Publicly-traded equity securities | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
OTTI | 0 | 0 | 0 | 0 | |
Certain Investments In Privately-Held Companies | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Impairment of privately-held investment | $ 0 | $ 4.5 | $ 0 | $ 9.6 |
Cash Equivalents and Investme45
Cash Equivalents and Investments - Unrealized Loss on Available-for-Sale Securities (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 978.7 | |
Unrealized loss, less than 12 months | (3.6) | |
Fair value, 12 months or greater | 76.7 | |
Unrealized loss, 12 months or greater | (0.1) | |
Total fair value, available-for-sale investments in continuous unrealized loss position | 1,055.4 | |
Total unrealized loss, available-for-sale investments in continuous unrealized loss position | (3.7) | |
Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | $ 967.7 | 974.1 |
Unrealized loss, less than 12 months | (1.5) | (2.9) |
Fair value, 12 months or greater | 79.3 | 76.7 |
Unrealized loss, 12 months or greater | (0.5) | (0.1) |
Total fair value, available-for-sale investments in continuous unrealized loss position | 1,047 | 1,050.8 |
Total unrealized loss, available-for-sale investments in continuous unrealized loss position | (2) | (3) |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | 224.2 | 122.2 |
Unrealized loss, less than 12 months | (0.3) | (0.2) |
Fair value, 12 months or greater | 0 | 0 |
Unrealized loss, 12 months or greater | 0 | 0 |
Total fair value, available-for-sale investments in continuous unrealized loss position | 224.2 | 122.2 |
Total unrealized loss, available-for-sale investments in continuous unrealized loss position | (0.3) | (0.2) |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | 361.6 | 470.8 |
Unrealized loss, less than 12 months | (0.5) | (1.9) |
Fair value, 12 months or greater | 59.5 | 76.7 |
Unrealized loss, 12 months or greater | (0.3) | (0.1) |
Total fair value, available-for-sale investments in continuous unrealized loss position | 421.1 | 547.5 |
Total unrealized loss, available-for-sale investments in continuous unrealized loss position | (0.8) | (2) |
Foreign government debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | 36.6 | 20.3 |
Unrealized loss, less than 12 months | (0.1) | (0.1) |
Fair value, 12 months or greater | 0 | 0 |
Unrealized loss, 12 months or greater | 0 | 0 |
Total fair value, available-for-sale investments in continuous unrealized loss position | 36.6 | 20.3 |
Total unrealized loss, available-for-sale investments in continuous unrealized loss position | (0.1) | (0.1) |
U.S. government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | 89 | 106.7 |
Unrealized loss, less than 12 months | (0.2) | (0.3) |
Fair value, 12 months or greater | 18 | 0 |
Unrealized loss, 12 months or greater | (0.2) | 0 |
Total fair value, available-for-sale investments in continuous unrealized loss position | 107 | 106.7 |
Total unrealized loss, available-for-sale investments in continuous unrealized loss position | (0.4) | (0.3) |
U.S. government securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | 256.3 | 254.1 |
Unrealized loss, less than 12 months | (0.4) | (0.4) |
Fair value, 12 months or greater | 1.8 | 0 |
Unrealized loss, 12 months or greater | 0 | 0 |
Total fair value, available-for-sale investments in continuous unrealized loss position | 258.1 | 254.1 |
Total unrealized loss, available-for-sale investments in continuous unrealized loss position | $ (0.4) | (0.4) |
Publicly-traded equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair value, less than 12 months | 4.6 | |
Unrealized loss, less than 12 months | (0.7) | |
Fair value, 12 months or greater | 0 | |
Unrealized loss, 12 months or greater | 0 | |
Total fair value, available-for-sale investments in continuous unrealized loss position | 4.6 | |
Total unrealized loss, available-for-sale investments in continuous unrealized loss position | $ (0.7) |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Available-for-sale securities: | ||
Available-for-sale securities | $ 3,475.4 | $ 2,782.1 |
Asset-backed securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 287.8 | 303 |
Certificates of deposit | ||
Available-for-sale securities: | ||
Available-for-sale securities | 50 | 66.1 |
Commercial paper | ||
Available-for-sale securities: | ||
Available-for-sale securities | 124 | 147.7 |
Corporate debt securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 834.1 | 844.9 |
Foreign government debt securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 64.7 | 33.9 |
Money market funds | ||
Available-for-sale securities: | ||
Available-for-sale securities | 990.7 | 592.2 |
Publicly-traded equity securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 4.6 |
Time deposits | ||
Available-for-sale securities: | ||
Available-for-sale securities | 411.4 | 264.6 |
U.S. government agency securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 156.5 | 126.7 |
U.S. government securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 548 | 390.4 |
Fair Value, Measurements, Recurring | ||
Derivative assets: | ||
Total assets measured at fair value | 3,552.3 | 2,847.7 |
Liabilities measured at fair value: | ||
Other accrued liabilities | (0.6) | (4.9) |
Total liabilities measured at fair value | (0.6) | (4.9) |
Reported Value [Abstract] | ||
Cash equivalents | 1,588.8 | 907.1 |
Restricted investments | 77.1 | 71.9 |
Short-term investments | 922 | 752.3 |
Long-term investments | 913.6 | 1,071.8 |
Prepaid expenses and other current assets | 8.5 | 0.9 |
Other long-term assets | 42.3 | 43.7 |
Fair Value, Measurements, Recurring | Foreign exchange contracts | ||
Derivative assets: | ||
Foreign exchange contracts | 8.5 | 0.9 |
Liabilities measured at fair value: | ||
Derivative liabilities | (0.6) | (4.9) |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Derivative assets: | ||
Total assets measured at fair value | 1,368.7 | 970.8 |
Liabilities measured at fair value: | ||
Other accrued liabilities | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Reported Value [Abstract] | ||
Cash equivalents | 947.9 | 549.4 |
Restricted investments | 77.1 | 71.9 |
Short-term investments | 231.9 | 178 |
Long-term investments | 111.8 | 171.5 |
Prepaid expenses and other current assets | 0 | 0 |
Other long-term assets | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets For Identical Assets (Level 1) | Foreign exchange contracts | ||
Derivative assets: | ||
Foreign exchange contracts | 0 | 0 |
Liabilities measured at fair value: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Remaining Inputs (Level 2) | ||
Derivative assets: | ||
Total assets measured at fair value | 2,141.3 | 1,833.2 |
Liabilities measured at fair value: | ||
Other accrued liabilities | (0.6) | (4.9) |
Total liabilities measured at fair value | (0.6) | (4.9) |
Reported Value [Abstract] | ||
Cash equivalents | 640.9 | 357.7 |
Restricted investments | 0 | 0 |
Short-term investments | 690.1 | 574.3 |
Long-term investments | 801.8 | 900.3 |
Prepaid expenses and other current assets | 8.5 | 0.9 |
Other long-term assets | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Remaining Inputs (Level 2) | Foreign exchange contracts | ||
Derivative assets: | ||
Foreign exchange contracts | 8.5 | 0.9 |
Liabilities measured at fair value: | ||
Derivative liabilities | (0.6) | (4.9) |
Fair Value, Measurements, Recurring | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Derivative assets: | ||
Total assets measured at fair value | 42.3 | 43.7 |
Liabilities measured at fair value: | ||
Other accrued liabilities | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Reported Value [Abstract] | ||
Cash equivalents | 0 | 0 |
Restricted investments | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 |
Other long-term assets | 42.3 | 43.7 |
Fair Value, Measurements, Recurring | Significant Other Unobservable Remaining Inputs (Level 3) | Foreign exchange contracts | ||
Derivative assets: | ||
Foreign exchange contracts | 0 | 0 |
Liabilities measured at fair value: | ||
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Asset-backed securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 287.8 | 303 |
Fair Value, Measurements, Recurring | Asset-backed securities | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Asset-backed securities | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 287.8 | 303 |
Fair Value, Measurements, Recurring | Asset-backed securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Certificates of deposit | ||
Available-for-sale securities: | ||
Available-for-sale securities | 50 | 66.1 |
Fair Value, Measurements, Recurring | Certificates of deposit | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Certificates of deposit | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 50 | 66.1 |
Fair Value, Measurements, Recurring | Certificates of deposit | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Available-for-sale securities: | ||
Available-for-sale securities | 124 | 147.7 |
Fair Value, Measurements, Recurring | Commercial paper | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 124 | 147.7 |
Fair Value, Measurements, Recurring | Commercial paper | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 834.1 | 844.9 |
Fair Value, Measurements, Recurring | Corporate debt securities | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate debt securities | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 834.1 | 844.9 |
Fair Value, Measurements, Recurring | Corporate debt securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign government debt securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 64.7 | 33.9 |
Fair Value, Measurements, Recurring | Foreign government debt securities | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign government debt securities | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 64.7 | 33.9 |
Fair Value, Measurements, Recurring | Foreign government debt securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Money market funds | ||
Available-for-sale securities: | ||
Available-for-sale securities | 990.7 | 592.2 |
Fair Value, Measurements, Recurring | Money market funds | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 990.7 | 592.2 |
Fair Value, Measurements, Recurring | Money market funds | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Money market funds | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Mutual funds | ||
Available-for-sale securities: | ||
Available-for-sale securities | 8.2 | 8 |
Trading securities in mutual funds | 26.1 | 21 |
Fair Value, Measurements, Recurring | Mutual funds | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 8.2 | 8 |
Trading securities in mutual funds | 26.1 | 21 |
Fair Value, Measurements, Recurring | Mutual funds | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Trading securities in mutual funds | 0 | 0 |
Fair Value, Measurements, Recurring | Mutual funds | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Trading securities in mutual funds | 0 | 0 |
Fair Value, Measurements, Recurring | Publicly-traded equity securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 4.6 |
Fair Value, Measurements, Recurring | Publicly-traded equity securities | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 4.6 |
Fair Value, Measurements, Recurring | Publicly-traded equity securities | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Publicly-traded equity securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Time deposits | ||
Available-for-sale securities: | ||
Available-for-sale securities | 411.4 | 264.6 |
Fair Value, Measurements, Recurring | Time deposits | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Time deposits | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 411.4 | 264.6 |
Fair Value, Measurements, Recurring | Time deposits | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. government agency securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 156.5 | 126.7 |
Fair Value, Measurements, Recurring | U.S. government agency securities | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. government agency securities | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 156.5 | 126.7 |
Fair Value, Measurements, Recurring | U.S. government agency securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. government securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 548 | 390.4 |
Fair Value, Measurements, Recurring | U.S. government securities | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 343.7 | 345 |
Fair Value, Measurements, Recurring | U.S. government securities | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 204.3 | 45.4 |
Fair Value, Measurements, Recurring | U.S. government securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Total available-for-sale securities | ||
Available-for-sale securities: | ||
Available-for-sale securities | 3,475.4 | 2,782.1 |
Fair Value, Measurements, Recurring | Total available-for-sale securities | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 1,342.6 | 949.8 |
Fair Value, Measurements, Recurring | Total available-for-sale securities | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 2,132.8 | 1,832.3 |
Fair Value, Measurements, Recurring | Total available-for-sale securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale securities | 0 | 0 |
Fair Value, Measurements, Recurring | Privately-held debt and redeemable preferred stock securities | ||
Available-for-sale securities: | ||
Privately-held debt and redeemable preferred stock securities | 42.3 | 43.7 |
Fair Value, Measurements, Recurring | Privately-held debt and redeemable preferred stock securities | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Privately-held debt and redeemable preferred stock securities | 0 | 0 |
Fair Value, Measurements, Recurring | Privately-held debt and redeemable preferred stock securities | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Privately-held debt and redeemable preferred stock securities | 0 | 0 |
Fair Value, Measurements, Recurring | Privately-held debt and redeemable preferred stock securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Privately-held debt and redeemable preferred stock securities | $ 42.3 | $ 43.7 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | May 01, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cost method investment | $ 30,200,000 | $ 30,200,000 | $ 19,000,000 | |
Significant Other Observable Remaining Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term Debt, Fair Value | 2,274,800,000 | 2,274,800,000 | 2,215,700,000 | |
Privately-held debt and redeemable preferred stock securities | Significant Other Unobservable Remaining Inputs (Level 3) | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized gain (loss) on investments | 0 | 0 | ||
Certain Investments In Privately-Held Companies | Significant Other Unobservable Remaining Inputs (Level 3) | Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cost method investment | 1,600,000 | |||
Cos method investment, fair value | 0 | |||
Junos Pulse | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Note receivable | $ 58,500,000 | $ 58,500,000 | $ 58,000,000 | $ 132,900,000 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Derivatives, Notional Amount [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 378.7 | $ 378.7 | $ 172 | ||
Non-designated derivatives | |||||
Derivatives, Notional Amount [Line Items] | |||||
Notional amount of foreign currency derivatives | 147.1 | $ 147.1 | 0 | ||
Maturities of cash flow hedge derivatives | 1 month | ||||
Cash flow hedges | Designated as hedge | |||||
Derivatives, Notional Amount [Line Items] | |||||
Notional amount of foreign currency derivatives | 231.6 | $ 231.6 | $ 172 | ||
Maturities of cash flow hedge derivatives | 18 months | ||||
Gains or losses is expected to be reclassified into earnings within the next 12 months | $ 8.8 | ||||
Foreign exchange contracts | Cash flow hedges | |||||
Derivatives, Notional Amount [Line Items] | |||||
Derivative instruments, gain (loss) recognized in other comprehensive income (loss), Effective portion | $ 6.8 | $ 0.3 | $ 17.6 | $ 4.8 |
Goodwill and Purchased Intang49
Goodwill and Purchased Intangible Assets - Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance as of December 31, 2016 | $ 3,081.7 |
Additions due to business combination | 16.7 |
Other | (2.2) |
Balance as of September 30, 2017 | $ 3,096.2 |
Goodwill and Purchased Intang50
Goodwill and Purchased Intangible Assets - Purchased Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 18, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Purchased intangible assets, net | $ 133 | $ 133 | $ 130.2 | |||
Amortization of intangible assets | $ 4.1 | $ 4.8 | $ 12.6 | $ 12.9 | ||
Cyphort | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible acquired | $ 15.4 |
Other Financial Information - I
Other Financial Information - Inventories, Net (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Inventory [Line Items] | ||
Production and service materials | $ 72.6 | $ 75.6 |
Finished goods | 18.3 | 19.9 |
Inventory | 90.9 | 95.5 |
Prepaid expenses and other current assets | ||
Schedule Of Inventory [Line Items] | ||
Inventory | 84.9 | 91.4 |
Other Noncurrent Assets | ||
Schedule Of Inventory [Line Items] | ||
Inventory | $ 6 | $ 4.1 |
Other Financial Information - O
Other Financial Information - Other Long Term Assets (Details) - USD ($) $ in Millions | May 01, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2014 |
Other Financial Information [Line Items] | ||||||||
Proceeds from Pulse note receivable | $ 75 | $ 0 | ||||||
Junos Pulse | ||||||||
Other Financial Information [Line Items] | ||||||||
Consideration | $ 230.7 | |||||||
Cash Consideration | 105.7 | |||||||
Working capital adjustment | 19.3 | |||||||
Note receivable carrying value | $ 125 | |||||||
Proceeds from Pulse note receivable | $ 75 | |||||||
Note receivable | $ 58 | $ 58.5 | 58.5 | $ 132.9 | ||||
Interest income | $ 1.6 | $ 2.7 | $ 6.5 | $ 8 | ||||
Prepaid expenses and other current assets | Junos Pulse | ||||||||
Other Financial Information [Line Items] | ||||||||
Note receivable carrying value | $ 75 |
Other Financial Information - W
Other Financial Information - Warranties (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Balance as of December 31, 2016 | $ 41.3 |
Provisions made during the period | 29.6 |
Actual costs incurred during the period | (41.5) |
Balance as of September 30, 2017 | $ 29.4 |
Other Financial Information - D
Other Financial Information - Deferred Revenue (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Deferred product revenue: | ||
Deferred product revenue, net | $ 1,462.9 | $ 1,481.1 |
Deferred service revenue | ||
Deferred service revenue | 1,462.9 | 1,481.1 |
Deferred revenue | 1,462.9 | 1,481.1 |
Reported as: | ||
Current | 977.4 | 1,032 |
Long-term | 485.5 | 449.1 |
Deferred revenue | 1,462.9 | 1,481.1 |
Deferred product revenue: | ||
Deferred product revenue: | ||
Undelivered product commitments and other product deferrals | 309.3 | 302.4 |
Distributor inventory and other sell-through items | 61.9 | 74.2 |
Deferred gross product revenue | 371.2 | 376.6 |
Deferred cost of product revenue | (47.5) | (53.7) |
Deferred product revenue, net | 323.7 | 322.9 |
Deferred service revenue | ||
Deferred service revenue | 323.7 | 322.9 |
Deferred revenue | 323.7 | 322.9 |
Reported as: | ||
Deferred revenue | 323.7 | 322.9 |
Deferred service revenue | ||
Deferred product revenue: | ||
Deferred product revenue, net | 1,139.2 | 1,158.2 |
Deferred service revenue | ||
Deferred service revenue | 1,139.2 | 1,158.2 |
Deferred revenue | 1,139.2 | 1,158.2 |
Reported as: | ||
Deferred revenue | $ 1,139.2 | $ 1,158.2 |
Other Financial Information -55
Other Financial Information - Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Financial Information [Abstract] | ||||
Interest income | $ 14.7 | $ 9.1 | $ 37.1 | $ 25.5 |
Interest expense | (25.3) | (25.1) | (75.6) | (72.6) |
Gain on investments, net | 4.7 | 1.9 | 6.7 | 0.1 |
Other | 0.8 | 0.7 | (2) | (0.2) |
Other expense, net | $ (5.1) | $ (13.4) | $ (33.8) | $ (47.2) |
Restructuring Charges (Charges
Restructuring Charges (Charges and Changes to Restructuring)(Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring liability, beginning balance | $ 1.2 | |||
Charges | $ 2 | $ 0.8 | 29.4 | $ 3.2 |
Cash Payments | (25.9) | |||
Other | 0 | |||
Restructuring liability, ending balance | 4.7 | 4.7 | ||
Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring liability, beginning balance | 0.7 | |||
Charges | 26 | |||
Cash Payments | (25.5) | |||
Other | (0.1) | |||
Restructuring liability, ending balance | 1.1 | 1.1 | ||
Severance | 2017 Restructuring Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0.6 | 26 | ||
Contract terminations and other | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring liability, beginning balance | 0.5 | |||
Charges | 3.4 | |||
Cash Payments | (0.4) | |||
Other | 0.1 | |||
Restructuring liability, ending balance | 3.6 | 3.6 | ||
Contract terminations and other | 2017 Restructuring Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | $ 1.4 | $ 3.4 |
Debt and Financing (Summary of
Debt and Financing (Summary of Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 2,150 | |
Unaccreted discount and debt issuance costs | (14.3) | |
Long-term debt | $ 2,135.7 | $ 2,133.7 |
Redemption percent due to change in control (percentage) | 101.00% | |
3.125% fixed-rate notes, due February 2019 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 350 | |
Effective Interest Rates | 3.36% | |
Long-term debt, stated interest rate | 3.125% | |
3.300% fixed-rate notes, due June 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 300 | |
Effective Interest Rates | 3.47% | |
Long-term debt, stated interest rate | 3.30% | |
4.600% fixed-rate notes, due March 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 300 | |
Effective Interest Rates | 4.69% | |
Long-term debt, stated interest rate | 4.60% | |
4.500% fixed-rate notes, due March 2024, issued March 2014 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 350 | |
Effective Interest Rates | 4.63% | |
Long-term debt, stated interest rate | 4.50% | |
4.500% fixed-rate notes, due March 2024, issued February 2016 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 150 | |
Effective Interest Rates | 4.87% | |
Long-term debt, stated interest rate | 4.50% | |
4.350% fixed-rate notes, due June 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 300 | |
Effective Interest Rates | 4.47% | |
Long-term debt, stated interest rate | 4.35% | |
5.950% fixed-rate notes, due March 2041 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 400 | |
Effective Interest Rates | 6.03% | |
Long-term debt, stated interest rate | 5.95% |
Debt and Financing - Revolving
Debt and Financing - Revolving Credit Facility (Details) - Revolving Credit Facility - USD ($) | Jun. 27, 2014 | Sep. 30, 2017 |
Line of Credit Facility [Line Items] | ||
Revolving credit facility limit | $ 500,000,000 | |
Revolving credit facility, additional borrowing capacity | $ 200,000,000 | |
Line of credit, outstanding | $ 0 | |
Base Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.00% | |
Base Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Eurodollar | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.90% | |
Eurodollar | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.50% |
Debt and Financing - Customer F
Debt and Financing - Customer Financing Arrangements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||
Sale of receivable | $ 77.3 | $ 59.3 | $ 132.6 | $ 73.4 | |
Proceeds from sale and collection of receivables | 57.6 | $ 30 | 113.3 | $ 40.8 | |
Receivables from sale of receivables | $ 32.9 | $ 32.9 | $ 13.6 | ||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Number of days due from receivable | 1 day | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Number of days due from receivable | 90 days |
Equity - Cash Dividends on Shar
Equity - Cash Dividends on Shares of Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 25, 2017 | Apr. 25, 2017 | Jan. 26, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Stockholders' Equity Note [Abstract] | |||||||
Cash dividends declared per common stock (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.30 | $ 0.30 |
Common stock dividends paid | $ 113.5 |
Equity - Stock Repurchase Activ
Equity - Stock Repurchase Activities (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Feb. 28, 2017 | Oct. 31, 2014 | Feb. 28, 2014 | |
Accelerated Share Repurchases [Line Items] | |||||||
Shares repurchased and retired related to net issuances | $ 1,400,000 | $ 11,000,000 | |||||
2014 Stock Repurchase Program | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 4,400,000,000 | $ 2,100,000,000 | |||||
Additional amount authorized under Stock Repurchase Plan | $ 500,000,000 | $ 1,800,000,000 | |||||
Stock repurchased (in shares) | 5 | 4.9 | 13.5 | 13.5 | |||
Average price per share (in dollars per share) | $ 28.16 | $ 23.04 | $ 28.85 | $ 23.25 | |||
Amount repurchased | $ 140,000,000 | $ 112,400,000 | $ 390,000,000 | $ 312,900,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 329,700,000 | $ 329,700,000 | |||||
Stock Repurchase Program 2014, Accelerated Share Repurchase | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 1,200,000,000 |
Equity - Components of Accumula
Equity - Components of Accumulated Other Comprehensive (Loss) Income, Net of Tax (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Other comprehensive gains before reclassifications | $ 35.3 |
Amount reclassified from accumulated other comprehensive loss | (4.4) |
Other comprehensive (loss) gains, net | 30.9 |
AOCI Attributable to Parent | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of December 31, 2016 | (37.3) |
Balance as of September 30, 2017 | (6.4) |
Unrealized Gains on Available-for- Sale Securities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of December 31, 2016 | 16.6 |
Other comprehensive gains before reclassifications | 1.4 |
Amount reclassified from accumulated other comprehensive loss | (2) |
Other comprehensive (loss) gains, net | (0.6) |
Balance as of September 30, 2017 | 16 |
Unrealized (Losses) Gains on Cash Flow Hedges | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of December 31, 2016 | (4.5) |
Other comprehensive gains before reclassifications | 14.6 |
Amount reclassified from accumulated other comprehensive loss | (2.4) |
Other comprehensive (loss) gains, net | 12.2 |
Balance as of September 30, 2017 | 7.7 |
Foreign Currency Translation Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of December 31, 2016 | (49.4) |
Other comprehensive gains before reclassifications | 19.3 |
Amount reclassified from accumulated other comprehensive loss | 0 |
Other comprehensive (loss) gains, net | 19.3 |
Balance as of September 30, 2017 | $ (30.1) |
Employee Benefit Plans ( Equity
Employee Benefit Plans ( Equity Incentive Plan and Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | May 25, 2017 | Sep. 30, 2017 |
Number of Shares | ||
Balance at beginning of period (in shares) | 2.4 | |
Exercised (in shares) | (0.5) | |
Expired/canceled (in shares) | (0.8) | |
Balance at end of period (in shares) | 1.1 | |
Weighted Average Exercise Price per Share | ||
Balance at beginning of period (in dollars per share) | $ 29.20 | |
Exercised (in dollars per share) | 14.97 | |
Expired/canceled (in dollars per share) | 31.09 | |
Balance at end of period (in dollars per share) | $ 34.31 | |
Weighted average remaining contractual term at end of period | 1 year 1 month 6 days | |
Aggregate intrinsic value at end of period | $ 3.1 | |
Vested or expected-to-vest options at end of period (in shares) | 1.1 | |
Vested or expected-to-vest options, weighted average exercise price at end of period (in dollars per share) | $ 34.31 | |
Vested and expected-to-vest options, weighted average remaining contractual term at end of period | 1 year 1 month 6 days | |
Vested or expected-to-vest options, aggregate intrinsic value at end of period | $ 3.1 | |
Exercisable options at end of period (in shares) | 1 | |
Exercisable options, weighted average exercise price at end of period (in dollars per share) | $ 35.56 | |
Exercisable options, weighted average remaining contractual term at end of period | 9 months 18 days | |
Exercisable options, aggregate intrinsic value at end of period | $ 2.1 | |
Equity incentive plan 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of additional shares authorized (shares) | 23 | |
Share-Based Compensation Plans | ||
Number of shares available for future issuance | 35.3 | |
Employee stock purchase plan 2008 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of additional shares authorized (shares) | 9 | |
Share-Based Compensation Plans | ||
Number of shares available for future issuance | 11.2 |
Employee Benefit Plans - Equity
Employee Benefit Plans - Equity Instruments Other Than Options (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 25, 2017 | Apr. 25, 2017 | Jan. 26, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Weighted Average Grant-Date Fair Value per Share | |||||||
Cash dividends declared per common stock (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.30 | $ 0.30 |
Common stock dividends paid | $ 113.5 | ||||||
Employee stock purchase plan 2008 | |||||||
Employee Stock Purchase Plan | |||||||
Expiration period for ESPP | 6 months | ||||||
Stock issued during period, shares, employee stock purchase plans (in shares) | 1,200,000 | 1,400,000 | 2,700,000 | 2,700,000 | |||
Average price of common stock, per share (in dollars per share) | $ 22.79 | $ 19.29 | $ 20.83 | $ 19.66 | |||
RSUs, RSAs, and PSAs | |||||||
Number of Shares | |||||||
Balance at beginning of period (in shares) | 20,900,000 | ||||||
Balance at end of period (in shares) | 19,300,000 | 19,300,000 | |||||
Weighted Average Grant-Date Fair Value per Share | |||||||
Balance at beginning of period (in dollars per share) | $ 24.05 | ||||||
Balance at end of period (in dollars per share) | $ 25.23 | $ 25.23 | |||||
Weighted Average Remaining Contractual Term (In Years) | 1 year 1 month 20 days | ||||||
Aggregate Intrinsic Value | $ 537.1 | $ 537.1 | |||||
Restricted Stock Units (RSUs) | |||||||
Number of Shares | |||||||
Granted (in shares) | 6,600,000 | ||||||
Assumed in acquisitions (in shares) | 100,000 | ||||||
Vested (in shares) | (6,000,000) | ||||||
Canceled (in shares) | (1,500,000) | ||||||
Weighted Average Grant-Date Fair Value per Share | |||||||
Granted (in dollars per share) | $ 27.56 | ||||||
Assumed in acquisition (in dollars per share) | 26.91 | ||||||
Vested (in dollars per share) | 23.81 | ||||||
Canceled (in dollars per share) | $ 24.57 | ||||||
Performance shares (PSAs) | |||||||
Number of Shares | |||||||
Granted (in shares) | 600,000 | ||||||
Vested (in shares) | (500,000) | ||||||
Canceled (in shares) | (500,000) | ||||||
Weighted Average Grant-Date Fair Value per Share | |||||||
Granted (in dollars per share) | $ 27.37 | ||||||
Vested (in dollars per share) | 24.29 | ||||||
Canceled (in dollars per share) | $ 25.11 | ||||||
Aggregate number of shares subject to PSAs granted | 400,000 | ||||||
Minimum shares to be issued on achievement of performance goals in respect of PSAs (shares) | 0 | ||||||
Maximum shares to be issued on achievement of performance goals in respect of PSAs (shares) | 600,000 | ||||||
Restricted stock awards (RSAs) | |||||||
Number of Shares | |||||||
Vested (in shares) | (400,000) | ||||||
Weighted Average Grant-Date Fair Value per Share | |||||||
Vested (in dollars per share) | $ 22.80 |
Employee Benefit Plans - Share
Employee Benefit Plans - Share Based Compensation by Cost and Expense Categories (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | $ 45 | $ 55.6 | $ 151.1 | $ 163 |
Stock options | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 0.2 | 1.5 | 0.5 | 3.7 |
RSUs, RSAs, and PSAs | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 41 | 50.3 | 138.9 | 147.6 |
ESPP | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 3.8 | 3.8 | 11.7 | 11.7 |
Cost of revenues - Product | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 1.5 | 1.5 | 3.8 | 4.9 |
Cost of revenues - Service | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 3.9 | 3.5 | 13.5 | 11.3 |
Research and development | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 18.5 | 27.2 | 67.4 | 89 |
Sales and marketing | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 13.7 | 17.5 | 45.3 | 40.7 |
General and administrative | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | $ 7.4 | $ 5.9 | $ 21.1 | $ 17.1 |
Employee Benefit Plans - Shar66
Employee Benefit Plans - Share Based Compensation by Share Based Payment Award Types (Details) - Restricted Stock Units, Restricted Stock Award and Performance Share Award $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation Cost | $ 309.8 |
Weighted Average Period (In Years) | 1 year 7 months 18 days |
Segments (Revenue by product) (
Segments (Revenue by product) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Product | $ 869.7 | $ 928.2 | $ 2,615.8 | $ 2,543.3 |
Service | 388.1 | 357.1 | 1,171.9 | 1,061.2 |
Total net revenues | 1,257.8 | 1,285.3 | 3,787.7 | 3,604.5 |
Routing | ||||
Segment Reporting Information [Line Items] | ||||
Product | 585.8 | 620.2 | 1,679.9 | 1,699 |
Switching | ||||
Segment Reporting Information [Line Items] | ||||
Product | 212.6 | 222.5 | 730.2 | 607.2 |
Security | ||||
Segment Reporting Information [Line Items] | ||||
Product | 71.3 | 85.5 | 205.7 | 237.1 |
Total product | ||||
Segment Reporting Information [Line Items] | ||||
Product | 869.7 | 928.2 | 2,615.8 | 2,543.3 |
Total service | ||||
Segment Reporting Information [Line Items] | ||||
Service | $ 388.1 | $ 357.1 | $ 1,171.9 | $ 1,061.2 |
Segments - Revenues by Customer
Segments - Revenues by Customer Vertical (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 1,257.8 | $ 1,285.3 | $ 3,787.7 | $ 3,604.5 |
Cloud | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 344.9 | 359.4 | 1,056.1 | 911.5 |
Telecom/Cable | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 576.9 | 599.4 | 1,707.8 | 1,688.5 |
Strategic Enterprise | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 336 | $ 326.5 | $ 1,023.8 | $ 1,004.5 |
Segments - Geographic (Details)
Segments - Geographic (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 1,257.8 | $ 1,285.3 | $ 3,787.7 | $ 3,604.5 |
Total Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 729.2 | 745 | 2,241.6 | 2,093.2 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 668.8 | 684.6 | 2,076 | 1,924.9 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 60.4 | 60.4 | 165.6 | 168.3 |
Europe, Middle East, and Africa | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 298.6 | 338 | 871.3 | 923.5 |
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 230 | $ 202.3 | $ 674.8 | $ 587.8 |
Income Taxes (Details of Income
Income Taxes (Details of Income Taxes) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 225.8 | $ 236.6 | $ 611.6 | $ 555.3 |
Income tax provision | $ 60.1 | $ 64.2 | $ 157.3 | $ 151.5 |
Effective tax rate | 26.60% | 27.10% | 25.70% | 27.30% |
Unrecognized tax benefits | $ 236.7 | $ 236.7 | ||
Unrecognized tax benefits that would impact effective tax rate | 204.2 | 204.2 | ||
Unrecognized tax benefits could decrease up to | $ 67 | $ 67 |
Net Income Per Share (Basic and
Net Income Per Share (Basic and Diluted Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Net income | $ 165.7 | $ 172.4 | $ 454.3 | $ 403.8 |
Denominator: | ||||
Weighted-average shares used to compute basic net income per share (in shares) | 378.3 | 381 | 380 | 382.3 |
Dilutive effect of employee stock awards (in shares) | 4.4 | 3.5 | 6.5 | 5.6 |
Weighted-average shares used to compute diluted net income per share (in shares) | 382.7 | 384.5 | 386.5 | 387.9 |
Net income per share | ||||
Basic (in dollars per share) | $ 0.44 | $ 0.45 | $ 1.20 | $ 1.06 |
Diluted, (in dollars per share) | $ 0.43 | $ 0.45 | $ 1.18 | $ 1.04 |
Anti-dilutive shares | 1 | 2.7 | 1.2 | 2.7 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) - Damages from Product Defects - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | ||
Supplier component remediation liability | $ 0.8 | $ 10.8 |
Supplier component remediation, estimated period that components may begin to fail | 18 months |
Commitments and Contingencies73
Commitments and Contingencies - Guarantees (Details) - Indemnification Agreement - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Guarantor Obligations [Line Items] | ||
Guarantor obligations, current carrying value | $ 20.1 | $ 28.9 |
Guarantor obligations, reversal of accrual recorded previously | $ 15 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Oct. 24, 2017 | Jul. 25, 2017 | Apr. 25, 2017 | Jan. 26, 2017 | Nov. 07, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Subsequent Event [Line Items] | |||||||||
Cash dividends declared per common stock (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.30 | $ 0.30 | ||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Cash dividends declared per common stock (in dollars per share) | $ 0.10 | ||||||||
Common Stock | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Stock repurchased during period (in shares) | 4 | ||||||||
Shares repurchased during the period | $ 100 | ||||||||
Average price per share (in dollars per share) | $ 24.80 | ||||||||
Shares settled (in shares) | 3.6 | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 229.7 | ||||||||
Minimum | Severance | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Restructuring related expenses, expected | 23 | ||||||||
Maximum | Severance | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Restructuring related expenses, expected | $ 27 |