Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 02, 2018 | |
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, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 345,154,400 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Total net revenues | $ 1,179.8 | $ 1,257.8 | $ 3,466.5 | $ 3,787.7 |
Cost of revenues: | ||||
Total cost of revenues | 468.8 | 485.4 | 1,436.2 | 1,466.8 |
Gross margin | 711 | 772.4 | 2,030.3 | 2,320.9 |
Operating expenses: | ||||
Research and development | 253.8 | 236.4 | 772 | 752.8 |
Sales and marketing | 224.8 | 232.5 | 702.5 | 716.6 |
General and administrative | 67.9 | 70.6 | 178.1 | 176.7 |
Restructuring charges | 4.4 | 2 | 2.3 | 29.4 |
Total operating expenses | 550.9 | 541.5 | 1,654.9 | 1,675.5 |
Operating income | 160.1 | 230.9 | 375.4 | 645.4 |
Other expense, net | (8.1) | (5.1) | (31.1) | (33.8) |
Income before income taxes | 152 | 225.8 | 344.3 | 611.6 |
Income tax (benefit) provision | (71.8) | 60.1 | (30.4) | 157.3 |
Net income | $ 223.8 | $ 165.7 | $ 374.7 | $ 454.3 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.65 | $ 0.44 | $ 1.07 | $ 1.20 |
Diluted, (in dollars per share) | $ 0.64 | $ 0.43 | $ 1.05 | $ 1.18 |
Shares used in computing net income per share: | ||||
Basic (in shares) | 346.2 | 378.3 | 350.1 | 380 |
Diluted (in shares) | 350.5 | 382.7 | 355.2 | 386.5 |
Product | ||||
Total net revenues | $ 794.7 | $ 869.7 | $ 2,330.4 | $ 2,615.8 |
Cost of revenues: | ||||
Total cost of revenues | 312.5 | 336 | 955.5 | 1,026.4 |
Service | ||||
Total net revenues | 385.1 | 388.1 | 1,136.1 | 1,171.9 |
Cost of revenues: | ||||
Total cost of revenues | $ 156.3 | $ 149.4 | $ 480.7 | $ 440.4 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 223.8 | $ 165.7 | $ 374.7 | $ 454.3 |
Available-for-sale debt securities: | ||||
Unrealized gains (losses) net of tax provision of $0.3 and benefit of $0.9 during the three and nine months ended September 30, 2018, respectively, and tax benefits of $0.5 and $0.2 for the corresponding periods of the fiscal year ended December 31, 2017 (fiscal 2017), respectively | 0.9 | (0.2) | (0.6) | 1.4 |
Reclassification adjustment for realized net (losses) gains included in net income, net of tax provisions of zero for the three and nine months ended September 30, 2018, respectively, and net of tax provisions of $0.9 for each of the corresponding periods of fiscal 2017 | 0 | (1.9) | 0.9 | (2) |
Net change on available-for-sale debt securities, net of tax | 0.9 | (2.1) | 0.3 | (0.6) |
Cash flow hedges: | ||||
Unrealized (losses) gains net of tax benefits of $1.5 and $2.7 during the three and nine months ended September 30, 2018, respectively, and net of tax provisions of $0.5 and $3.0 for the corresponding periods of fiscal 2017, respectively | (4.6) | 6.3 | (5.9) | 14.6 |
Reclassification adjustment for realized net losses (gains) included in net income, net of tax benefit of $0.5 and provision of $0.3 during the three and nine months ended September 30, 2018, respectively, and net of tax provisions of $0.8 and $1.7 for the corresponding periods of fiscal 2017, respectively | 2.6 | (2.5) | (5.5) | (2.4) |
Net change on cash flow hedges, net of tax | (2) | 3.8 | (11.4) | 12.2 |
Change in foreign currency translation adjustments | (7) | 8.4 | (13.7) | 19.3 |
Other comprehensive (loss) income, net of tax | (8.1) | 10.1 | (24.8) | 30.9 |
Comprehensive income | $ 215.7 | $ 175.8 | $ 349.9 | $ 485.2 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain (loss) on available-for-sale securities, tax (provision) benefit | $ (0.3) | $ 0.5 | $ 0.9 | $ 0.2 |
Reclassification adjustment for realized net loss (gain) on available-for-sale securities included in net income, tax provisions | 0 | 0.9 | 0 | 0.9 |
Unrealized (loss) gain on cash flow hedges, tax (provision) benefit | 1.5 | (0.5) | 2.7 | (3) |
Reclassification adjustment for realized net loss (gain) on cash flow hedges included in net income, tax provisions (benefit) | $ (0.5) | $ 0.8 | $ 0.3 | $ 1.7 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 2,501.7 | $ 2,006.5 |
Short-term investments | 887.3 | 1,026.1 |
Accounts receivable, net of allowances | 648.3 | 852 |
Prepaid expenses and other current assets | 253.4 | 299.9 |
Total current assets | 4,290.7 | 4,184.5 |
Property and equipment, net | 967.6 | 1,021.1 |
Long-term investments | 259 | 988.4 |
Purchased intangible assets, net | 115 | 128.1 |
Goodwill | 3,094.3 | 3,096.2 |
Other long-term assets | 373.7 | 415.5 |
Total assets | 9,100.3 | 9,833.8 |
Current liabilities: | ||
Accounts payable | 184.7 | 217.6 |
Accrued compensation | 177.2 | 186 |
Deferred revenue | 814.1 | 1,030.3 |
Short-term debt | 349.7 | 0 |
Other accrued liabilities | 214.8 | 304.3 |
Total current liabilities | 1,740.5 | 1,738.2 |
Long-term debt | 1,788.6 | 2,136.3 |
Long-term deferred revenue | 351.2 | 509 |
Long-term income taxes payable | 436.7 | 650.6 |
Other long-term liabilities | 132.4 | 118.8 |
Total liabilities | 4,449.4 | 5,152.9 |
Commitments and contingencies (Note 13) | ||
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; 345.1 shares and 365.5 shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively | 0 | 0 |
Additional paid-in capital | 7,698.4 | 8,042.1 |
Accumulated other comprehensive loss | (24.5) | (5.4) |
Accumulated deficit | (3,023) | (3,355.8) |
Total stockholders' equity | 4,650.9 | 4,680.9 |
Total liabilities and stockholders' equity | $ 9,100.3 | $ 9,833.8 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
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) | 345,100,000 | 365,500,000 |
Common stock - outstanding (shares) | 345,100,000 | 365,500,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 374.7 | $ 454.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Share-based compensation expense | 180.2 | 151.1 |
Depreciation, amortization, and accretion | 159.2 | 169.7 |
Other | 3.5 | (6.7) |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable, net | 200.9 | 331.9 |
Prepaid expenses and other assets | 43.9 | 51.2 |
Accounts payable | (27.6) | (11.5) |
Accrued compensation | (4.2) | (60.6) |
Income taxes payable | (244) | 8.8 |
Other accrued liabilities | (14.5) | (20.3) |
Deferred revenue | (23.4) | (21.2) |
Net cash provided by operating activities | 648.7 | 1,046.7 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (110.9) | (97.6) |
Purchases of available-for-sale debt securities | (608.1) | (1,298.6) |
Proceeds from sales of available-for-sale debt securities | 1,012.2 | 761.2 |
Proceeds from maturities and redemptions of available-for-sale debt securities | 446.6 | 521.3 |
Purchases of equity securities | (8.1) | (13.7) |
Proceeds from sales of equity securities | 29.8 | 1.3 |
Proceeds from Pulse note receivable | 0 | 75 |
Payment of escrow balance related to prior year acquisitions | (31.5) | 0 |
Payments for business acquisitions, net of cash and cash equivalents acquired | 0 | (27) |
Net cash provided by (used in) investing activities | 730 | (78.1) |
Cash flows from financing activities: | ||
Repurchase and retirement of common stock | (755.5) | (395.5) |
Proceeds from issuance of common stock | 56.8 | 64.4 |
Payment of dividends | (187) | (113.5) |
Change in customer financing arrangement | (16.9) | 0 |
Other | (1.5) | 0 |
Net cash used in financing activities | (904.1) | (444.6) |
Effect of foreign currency exchange rates on cash, cash equivalents, and restricted cash | (10.9) | 13.3 |
Net increase in cash, cash equivalents, and restricted cash | 463.7 | 537.3 |
Cash, cash equivalents, and restricted cash at beginning of period | 2,059.1 | 1,880.6 |
Cash, cash equivalents, and restricted cash at end of period | $ 2,522.8 | $ 2,417.9 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
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, 2017 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, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 , 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, 2017 (the "Form 10-K"). The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-18 (Topic 230) Statement of Cash Flow: Restricted Cash, effective January 1, 2018, using the retrospective transition method . Restricted cash of $47.4 million and $54.2 million has been included within cash, cash equivalents, and restricted cash when reconciling the beginning and ending total amounts, respectively, on the statement of cash flows for the nine months ended September 30, 2017, to conform to the current period presentation. The adoption did not have a material impact on the cash flow activity presented on the Company's Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2017. See Note 3, Cash Equivalents and Investments , for a reconciliation of the cash balances within the Condensed Consolidated Statements of Cash Flows to the Condensed Consolidated Balance Sheets. 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, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Except for the change in certain policies upon adoption of the accounting standards 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 Standards Comprehensive Income: Effective January 1, 2018, the Company early adopted FASB ASU No. 2018-02 (Topic 220), Income Statement - Reporting Comprehensive Income , issued in February 2018, with an election to reclassify stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (the "Tax Act"), from accumulated other comprehensive income to retained earnings. The adoption resulted in a reclassification of $5.7 million in income from accumulated other comprehensive loss to accumulated deficit as of the adoption date. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Financial Instruments: On January 1, 2018, the Company adopted FASB ASU No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities and FASB ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall , which changes how entities classify and 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. The Company adopted ASU 2016-01 as of January 1, 2018 using the modified retrospective method for its equity securities with readily determinable fair values and the prospective method for its equity securities without readily determinable fair values, resulting in no impact to the opening accumulated deficit balance. The Company has elected to use the measurement alternative for its equity investments without readily determinable fair value, defined as cost adjusted for changes from observable transactions for identical or similar investments of the same issuer, less impairment. See Note 3, Cash Equivalents and Investments for additional disclosures required upon adopting the standard. Revenue Recognition: On January 1, 2018, the Company adopted FASB ASU No. 2014-09 (Topic 606) - Revenue from Contracts with Customers (“ASU 2014-09” or "Topic 606"), which provides guidance for revenue recognition that superseded the revenue recognition requirements in Accounting Standards Codification ("ASC") Topic 605, Revenue Recognition ("Topic 605") and most industry specific guidance. Under ASU 2014-09, 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. The Company adopted ASU 2014-09 under the modified retrospective approach, applying the amendments to prospective reporting periods. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under Topic 605. The cumulative effect of the changes made to the Company's Condensed Consolidated Balance Sheet as of January 1, 2018 for the adoption of Topic 606 to all contracts with customers that were not completed as of December 31, 2017 was recorded as an adjustment to accumulated deficit as of the adoption date as follows: December 31, 2017 January 1, 2018 As reported Adjustments As adjusted Assets: Accounts receivable, net of allowances $ 852.0 $ (1.9 ) $ 850.1 Prepaid expenses and other current assets 299.9 31.5 331.4 Other long-term assets 415.5 (21.1 ) 394.4 Total assets $ 9,833.8 $ 8.5 $ 9,842.3 Liabilities: Deferred revenue $ 1,030.3 $ (225.4 ) $ 804.9 Other accrued liabilities 304.3 33.8 338.1 Long-term deferred revenue 509.0 (124.6 ) 384.4 Total liabilities $ 5,152.9 $ (316.2 ) $ 4,836.7 Stockholders' Equity: Accumulated deficit $ (3,355.8 ) $ 324.7 $ (3,031.1 ) Upon adoption, the Company recorded a cumulative effect adjustment of $324.7 million , net of tax adjustment of $63.9 million , which decreased the January 1, 2018 opening accumulated deficit balance on the Condensed Consolidated Balance Sheet, primarily as a result of the following items: • Distributor Sales: Under Topic 606, the Company recognizes revenue from sales to distributors upon delivery of the product to the distributor, rather than upon delivery of the product to the end customer. Rebates and incentives offered to distributors, which are earned when sales to end customers are completed, are estimated at the point of revenue recognition. • Software Revenue: Under Topic 605, the Company deferred revenue for software licenses where vendor-specific objective evidence of fair value had not been established for undelivered items (primarily services). Under Topic 606, revenue for software licenses is recognized at the time of delivery unless the ongoing services provide frequent, critical updates to the software, without which the software functionality would be rapidly diminished. • Variable Consideration: Some of the Company's contracts include penalties, extended payment terms, acceptance provisions or other price variability that precluded revenue recognition under Topic 605 because of the requirement for amounts to be fixed or determinable. Topic 606 requires the Company to estimate and account for variable consideration as a reduction of the transaction price. • Revenue Allocation: Similar to Topic 605, Topic 606 requires an allocation of revenue between deliverables, or performance obligations, within an arrangement. Topic 605 restricted the allocation of revenue that is contingent on future deliverables to current deliverables; however, Topic 606 removes this restriction. In addition, the nature of the performance obligations identified within a contract under Topic 606 as compared to Topic 605 will impact the allocation of the transaction price between product and services. • Contract Acquisition Costs: Topic 606 requires the deferral and amortization of “incremental” costs incurred to obtain a contract where the associated contract duration is greater than one year. The primary contract acquisition cost for the Company are sales commissions. Prior to January 1, 2018, the Company expensed sales commissions. The change required by Topic 606 resulted in the creation of an asset on January 1, 2018. The impact of adoption of Topic 606 on the Company's Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheet was as follows (in millions): Three Months Ended September 30, 2018* Nine Months Ended September 30, 2018* As Reported Without Adoption of Topic 606 Topic 606 Impact As Reported Without Adoption of Topic 606 Topic 606 Impact Net revenues: Product $ 794.7 $ 771.9 $ 22.8 $ 2,330.4 $ 2,249.7 $ 80.7 Service 385.1 412.5 (27.4 ) 1,136.1 1,236.3 (100.2 ) Total net revenues $ 1,179.8 $ 1,184.4 $ (4.6 ) $ 3,466.5 $ 3,486.0 $ (19.5 ) Operating expenses: Sales and marketing $ 224.8 $ 225.4 $ (0.6 ) $ 702.5 $ 697.6 $ 4.9 ________________________________ * Except as disclosed, the adoption of Topic 606 did not have a material impact on the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018. As of September 30, 2018 As reported Without Adoption of Topic 606 Topic 606 Impact Assets: Accounts receivable, net of allowances $ 648.3 $ 635.3 $ 13.0 Prepaid expenses and other current assets 253.4 232.6 20.8 Other long-term assets 373.7 371.8 1.9 Total assets $ 9,100.3 $ 9,064.6 $ 35.7 Liabilities: Deferred revenue $ 814.1 $ 1,044.7 $ (230.6 ) Other accrued liabilities 214.8 161.2 53.6 Long-term deferred revenue 351.2 445.5 (94.3 ) Total liabilities $ 4,449.4 $ 4,720.7 $ (271.3 ) Stockholders' Equity: Accumulated deficit $ (3,023.0 ) $ (3,330.2 ) $ 307.2 Revenue Recognition 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 by following a five-step process, (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price, and (5) recognize revenue when or as the Company satisfies a performance obligation, as further described below. Identify the contract with a customer . The Company generally considers a sales contract or agreement with an approved purchase order as a customer contract provided that collection is considered probable, which is assessed based on the creditworthiness of the customer as determined by credit checks, payment histories, and/or other circumstances. The Company combines contracts with a customer if contracts are negotiated with a single commercial substance or contain price dependencies. Identify the performance obligations in the contract . Product performance obligations include hardware and software licenses and service performance obligations include maintenance, software post-contract support, training, and professional services. Certain software licenses and related post-contract support are combined into a single performance obligation when the maintenance updates are critical to the continued functionality of the software. Determine the transaction price . The transaction price for the Company’s contracts with its customers consists of both fixed and variable consideration provided it is probable that a significant reversal of revenue will not occur when the uncertainty related to variable consideration is resolved. Fixed consideration includes amounts to be contractually billed to the customer while variable consideration includes estimates for rights of return, rebates, and price protection, which are based on historical sales returns and price protection credits, specific criteria outlined in rebate agreements, and other factors known at the time. The Company generally invoices customers for hardware, software licenses and related maintenance arrangements at time of delivery, and professional services either upfront or upon meeting certain milestones. Customer invoices are generally due within 30 to 90 days after issuance. The Company’s contracts with customers typically do not include significant financing components as the period between the transfer of performance obligations and timing of payment are generally within one year. Allocate the transaction price to the performance obligations in the contract . For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. Standalone selling prices are based on multiple factors including, but not limited to historical discounting trends for products and services, pricing practices in different geographies and through different sales channels, gross margin objectives, internal costs, competitor pricing strategies, and industry technology lifecycles. Recognize revenue when or as the Company satisfies a performance obligation . Revenue for hardware and certain software licenses, are recognized at a point in time, which is generally upon shipment or delivery. Certain software licenses combined with post-contract support are recognized over time on a ratable basis over the term of the license. Revenue for maintenance and software post-contract support is recognized over time on a ratable basis over the contract term. Revenue from training and professional services is recognized over time as services are completed or ratably over the contractual period of generally one year or less. Deferred Commissions Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit which is typically over the term of the customer contracts as initial commission rates and renewal rates are the same. Amortization expense is included in sales and marketing expenses in the accompanying Condensed Consolidated Statements of Operations. Recent Accounting Standards Not Yet Adopted Cloud Computing Arrangement: In August 2018, the FASB issued ASU No. 2018-15 (Subtopic 350-40) Intangibles-Goodwill and Other-Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which provides guidance on a customer's accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by a service contract. The new standard is to be applied on either a retrospective or prospective basis to all implementation costs incurred after the date of adoption. The standard is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements. Fair Value Measurement: In August 2018, the FASB issued ASU No. 2018-13 (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds, and modifies certain disclosure requirements for fair value measurements under ASC 820. This ASU is to be applied on a prospective basis for certain modified or new disclosure requirements, and all other amendments in the standard are to be applied on a retrospective basis. The new standard is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements. Derivatives and Hedging: 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 presentation and disclosure requirements will be applied on a prospective basis. This standard 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. Amortization on Purchased Callable Debt Securities: 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 adoption of this standard will not have an impact on the Consolidated Financial Statements. Simplifying the Test for Goodwill Impairment: 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. Credit Losses on Financial Instruments: 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 of adoption on the Consolidated Financial Statements. Leases: In February 2016, the FASB issued ASU No. 2016-02 (Topic 842), Leases , and several amendments thereafter, which requires recognition of lease assets and lease liabilities on the balance sheet by lessees for leases classified as operating leases under current GAAP. This ASU must 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 intends to adopt this standard effective January 1, 2019. The Company is on schedule to complete its evaluation of the impact to the financial statements, disclosures, processes, systems, and controls. The Company currently anticipates a material impact related to the recognition of lease assets and lease liabilities for previously unrecognized leases on its Consolidated Balance Sheets, and does not expect this standard will have a material impact on the Consolidated Statements of Operations. |
Cash Equivalents and Investment
Cash Equivalents and Investments | 9 Months Ended |
Sep. 30, 2018 | |
Cash Equivalents and Investments [Abstract] | |
Cash Equivalents and Investments | Cash Equivalents and Investments Investments in Available-for-Sale Debt Securities The following table summarizes the Company's unrealized gains and losses and fair value of investments designated as available-for-sale debt securities as of September 30, 2018 and December 31, 2017 (in millions): As of September 30, 2018 As of December 31, 2017 Amortized Gross Unrealized Gross Unrealized Estimated Fair Amortized Gross Unrealized Gross Unrealized Estimated Fair Fixed income securities: Asset-backed securities $ 71.9 $ — $ (0.4 ) $ 71.5 $ 287.1 $ — $ (0.6 ) $ 286.5 Certificates of deposit 96.7 — — 96.7 83.8 — — 83.8 Commercial paper 334.7 — — 334.7 217.1 — — 217.1 Corporate debt securities 450.4 — (3.7 ) 446.7 929.6 0.4 (3.0 ) 927.0 Foreign government debt securities 23.0 — (0.2 ) 22.8 62.9 — (0.2 ) 62.7 Time deposits 309.3 — — 309.3 239.2 — — 239.2 U.S. government agency securities 101.8 — (0.3 ) 101.5 143.9 — (0.7 ) 143.2 U.S. government securities 731.1 — (0.8 ) 730.3 406.8 0.1 (0.9 ) 406.0 Total fixed income securities 2,118.9 — (5.4 ) 2,113.5 2,370.4 0.5 (5.4 ) 2,365.5 Privately-held debt and redeemable preferred stock securities 16.6 37.4 — 54.0 15.9 37.4 — 53.3 Total available-for-sale debt securities $ 2,135.5 $ 37.4 $ (5.4 ) $ 2,167.5 $ 2,386.3 $ 37.9 $ (5.4 ) $ 2,418.8 Reported as: Cash equivalents $ 967.2 $ — $ — $ 967.2 $ 351.0 $ — $ — $ 351.0 Short-term investments 889.5 — (2.2 ) 887.3 1,027.2 0.1 (1.2 ) 1,026.1 Long-term investments 262.2 — (3.2 ) 259.0 992.2 0.4 (4.2 ) 988.4 Other long-term assets 16.6 37.4 — 54.0 15.9 37.4 — 53.3 Total $ 2,135.5 $ 37.4 $ (5.4 ) $ 2,167.5 $ 2,386.3 $ 37.9 $ (5.4 ) $ 2,418.8 The following table presents the contractual maturities of the Company's total fixed income securities as of September 30, 2018 (in millions): Amortized Cost Estimated Fair Value Due in less than one year $ 1,856.7 $ 1,854.5 Due between one and five years 262.2 259.0 Total $ 2,118.9 $ 2,113.5 The following tables present the Company's total fixed income securities that were in an unrealized loss position as of September 30, 2018 and December 31, 2017 (in millions): As of September 30, 2018 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 $ 16.9 $ (0.1 ) $ 46.5 $ (0.3 ) $ 63.4 $ (0.4 ) Commercial paper 0.8 — — — 0.8 — Corporate debt securities 279.0 (2.3 ) 136.9 (1.4 ) 415.9 (3.7 ) Foreign government debt securities 8.0 — 13.4 (0.2 ) 21.4 (0.2 ) U.S. government agency securities 67.8 (0.1 ) 33.6 (0.2 ) 101.4 (0.3 ) U.S. government securities 616.9 (0.3 ) 62.4 (0.5 ) 679.3 (0.8 ) Total fixed income securities $ 989.4 $ (2.8 ) $ 292.8 $ (2.6 ) $ 1,282.2 $ (5.4 ) As of December 31, 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 $ 215.2 $ (0.4 ) $ 38.4 $ (0.2 ) $ 253.6 $ (0.6 ) Corporate debt securities 646.7 (2.1 ) 108.6 (0.9 ) 755.3 (3.0 ) Foreign government debt securities 47.3 (0.2 ) 6.6 — 53.9 (0.2 ) U.S. government agency securities 68.3 (0.2 ) 67.9 (0.5 ) 136.2 (0.7 ) U.S. government securities 260.8 (0.7 ) 51.8 (0.2 ) 312.6 (0.9 ) Total fixed income securities $ 1,238.3 $ (3.6 ) $ 273.3 $ (1.8 ) $ 1,511.6 $ (5.4 ) For available-for-sale debt securities that have unrealized losses, the Company assesses impairment by evaluating various factors, including 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, 2018 , the Company had 539 investments in unrealized loss positions. The gross unrealized losses related to these investments were primarily due to changes in market interest rates. 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, 2018 and September 30, 2017 . During the three and nine months ended September 30, 2018 and September 30, 2017 , there were no material gross realized gains or losses from available-for-sale debt securities. Investments in Equity Securities The following table presents the Company's investments in equity securities as of September 30, 2018 and December 31, 2017 (in millions): As of September 30, December 31, Equity investments with readily determinable fair value Money market funds (1) $ 1,126.2 $ 969.8 Mutual funds (2) 28.0 27.6 Equity investments without readily determinable fair value (3) 32.6 29.7 Total equity securities $ 1,186.8 $ 1,027.1 Reported as: Cash equivalents $ 1,114.6 $ 928.0 Prepaid expenses and other current assets 11.5 36.3 Other long-term assets 60.7 62.8 Total $ 1,186.8 $ 1,027.1 ________________________________ (1) Prior to January 1, 2018, money market funds were classified as available-for-sale securities and accounted for at fair value with unrealized gains and losses recognized in accumulated other comprehensive income (loss). Realized gains or losses from sales or impairments were recognized in the Condensed Consolidated Statements of Operations. (2) Prior to January 1, 2018, mutual funds related to the Company's non-qualified deferred compensation ("NQDC") plan were classified as trading securities. Unrealized gains or losses were recognized in the Condensed Consolidated Statements of Operations. (3) Prior to January 1, 2018, certain investments in privately-held companies were accounted for at cost less impairment. Realized gains or losses from sales or impairments were recognized in the Condensed Consolidated Statements of Operations. For the three and nine months ended September 30, 2018 and September 30, 2017 , there were no material unrealized gains or losses recognized for equity investments. Restricted Cash and Investments The Company has restricted cash and investments for: (i) amounts held in escrow accounts, as required in connection with certain acquisitions completed primarily between 2014 and 2017; (ii) amounts held under the Company's short-term disability plan in California; and (iii) amounts under the NQDC plan for senior-level employees. Restricted investments are now designated as equity investments as described in Note 2, Summary of Significant Accounting Policies . As of September 30, 2018 , the carrying value of restricted cash and investments was $60.7 million , of which $26.6 million was included in prepaid expenses and other current assets and $34.1 million was included in other long-term assets on the Condensed Consolidated Balance Sheet. The following table provides a reconciliation of cash, cash equivalents, and restricted cash included in the Condensed Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 (in millions): As of September 30, December 31, Cash and cash equivalents $ 2,501.7 $ 2,006.5 Restricted cash included in Prepaid expenses and other current assets 15.1 49.6 Restricted cash included in Other long-term assets 6.0 3.0 Total cash, cash equivalents, and restricted cash $ 2,522.8 $ 2,059.1 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
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 debt securities: Asset-backed securities $ — $ 71.5 $ — $ 71.5 $ — $ 286.5 $ — $ 286.5 Certificates of deposit — 96.7 — 96.7 — 83.8 — 83.8 Commercial paper — 334.7 — 334.7 — 217.1 — 217.1 Corporate debt securities — 446.7 — 446.7 — 927.0 — 927.0 Foreign government debt securities — 22.8 — 22.8 — 62.7 — 62.7 Time deposits — 309.3 — 309.3 — 239.2 — 239.2 U.S. government agency securities — 101.5 — 101.5 — 143.2 — 143.2 U.S. government securities 313.5 416.8 — 730.3 322.4 83.6 — 406.0 Privately-held debt and redeemable preferred stock securities — — 54.0 54.0 — — 53.3 53.3 Total available-for-sale debt securities 313.5 1,800.0 54.0 2,167.5 322.4 2,043.1 53.3 2,418.8 Equity securities: Money market funds (1) 1,126.2 — — 1,126.2 969.8 — — 969.8 Mutual funds (2) 28.0 — — 28.0 27.6 — — 27.6 Total equity securities 1,154.2 — — 1,154.2 997.4 — — 997.4 Derivative assets: Foreign exchange contracts — 3.6 — 3.6 — 9.2 — 9.2 Total assets measured at fair value $ 1,467.7 $ 1,803.6 $ 54.0 $ 3,325.3 $ 1,319.8 $ 2,052.3 $ 53.3 $ 3,425.4 Liabilities: Derivative liabilities: Foreign exchange contracts $ — $ (9.6 ) $ — $ (9.6 ) $ — $ (1.8 ) $ — $ (1.8 ) Total liabilities measured at fair value $ — $ (9.6 ) $ — $ (9.6 ) $ — $ (1.8 ) $ — $ (1.8 ) Total assets, reported as: Cash equivalents $ 1,176.2 $ 905.6 $ — $ 2,081.8 $ 928.1 $ 350.9 $ — $ 1,279.0 Short-term investments 229.4 657.9 — 887.3 247.5 778.6 — 1,026.1 Long-term investments 22.5 236.5 — 259.0 74.8 913.6 — 988.4 Prepaid expenses and other current assets 11.5 3.6 — 15.1 36.3 9.2 — 45.5 Other long-term assets 28.1 — 54.0 82.1 33.1 — 53.3 86.4 Total assets measured at fair value $ 1,467.7 $ 1,803.6 $ 54.0 $ 3,325.3 $ 1,319.8 $ 2,052.3 $ 53.3 $ 3,425.4 Total liabilities, reported as: Other accrued liabilities $ — $ (9.6 ) $ — $ (9.6 ) $ — $ (1.8 ) $ — $ (1.8 ) Total liabilities measured at fair value $ — $ (9.6 ) $ — $ (9.6 ) $ — $ (1.8 ) $ — $ (1.8 ) ________________________________ (1) Balance includes $11.6 million and $16.8 million in restricted investments measured at fair value, related to the Company's acquisition-related escrows as of September 30, 2018 and December 31, 2017, respectively. The December 31, 2017 balance also includes $25.0 million related to the Company's Directors and Officers indemnification trust, which was subsequently terminated. (2) Balance relates to restricted investments measured at fair value related to the Company's NQDC plan. The Company's Level 2 available-for-sale debt 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, 2018 , 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, 2018 , there were no significant activities related to privately-held debt and redeemable preferred stocks securities. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain of the Company's assets, including intangible assets and goodwill, are measured at fair value on a nonrecurring basis, when they are deemed to be other-than temporarily impaired. There were no impairment charges recognized during the three and nine months ended September 30, 2018 . Equity investments without readily determinable fair value are measured at fair value, when they are deemed to be impaired or when there is an adjustment from observable price changes. For the three and nine months ended September 30, 2018 , there were no impairment charges or adjustments resulting from observable price changes for equity investments without readily determinable fair value. As of September 30, 2018 and December 31, 2017 , 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, 2018 and December 31, 2017 , the estimated fair value of the Company's short-term and long-term debt in the Condensed Consolidated Balance Sheets was $2,168.4 million and $2,252.9 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”), along with the accumulated interest paid in kind, of $64.6 million and $61.2 million approximates its fair value as of September 30, 2018 and December 31, 2017 , respectively. The Pulse Note is classified as a Level 3 asset due to the lack of observable inputs to determine fair value. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2018 | |
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 $ 609.5 $ 521.1 Non-designated derivatives 141.4 108.3 Total $ 750.9 $ 629.4 Cash Flow Hedges The Company uses foreign currency forward contracts 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, 2018 , an estimated $5.8 million of unrealized net loss within accumulated other comprehensive loss is expected to be reclassified into earnings within the next 12 months. The Company recognized an unrealized loss of $6.1 million and $8.6 million in accumulated other comprehensive loss for the effective portion of its derivative instruments for the three and nine months ended September 30, 2018 , respectively; and an unrealized gain of $6.8 million and $17.6 million for the comparable periods in fiscal 2017, respectively. The Company reclassified a loss of $3.1 million and a gain of $5.8 million out of accumulated other comprehensive loss to cost of revenues and operating expenses in the Condensed Consolidated Statements of Operations during the three and nine months ended September 30, 2018 , respectively. The amounts reclassified out of accumulated other comprehensive loss to cost of revenues and operating expenses in the Condensed Consolidated Statements of Operations were not material during the three and nine months ended September 30, 2017 . 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, 2018 and September 30, 2017 . See Note 4, 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 to three months . 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, 2018 and September 30, 2017 . |
Other Financial Information
Other Financial Information | 9 Months Ended |
Sep. 30, 2018 | |
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 $ 56.3 $ 71.2 Finished goods 19.3 26.6 Inventory $ 75.6 $ 97.8 Reported as: Prepaid expenses and other current assets $ 74.1 $ 93.8 Other long-term assets 1.5 4.0 Total $ 75.6 $ 97.8 Warranties Changes during the nine months ended September 30, 2018 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, 2017 $ 27.4 Provisions made during the period 22.0 Actual costs incurred during the period (23.0 ) Balance as of September 30, 2018 $ 26.4 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 $ 144.5 $ 312.6 Distributor inventory and other sell-through items — 68.1 Deferred gross product revenue 144.5 380.7 Deferred cost of product revenue (10.9 ) (46.5 ) Deferred product revenue, net 133.6 334.2 Deferred service revenue 1,031.7 1,205.1 Total $ 1,165.3 $ 1,539.3 Reported as: Current $ 814.1 $ 1,030.3 Long-term 351.2 509.0 Total $ 1,165.3 $ 1,539.3 Revenue See Note 10, Segments, for disaggregated revenue by product and service, customer vertical, and geographic region. Product revenue of $21.1 million and $77.6 million included in deferred revenue at January 1, 2018 was recognized during the three and nine months ended September 30, 2018 , respectively. Service revenue of $150.0 million and $581.3 million included in deferred revenue at January 1, 2018 was recognized during the three and nine months ended September 30, 2018 , respectively. The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 30, 2018 and when the Company expects to recognize the amounts as revenue (in millions): Revenue Recognition Expected by Period Total Less than 1 year 1-3 years More than 3 years Product $ 144.5 $ 119.5 $ 22.1 $ 2.9 Service 1,031.7 705.5 292.2 34.0 Total $ 1,176.2 $ 825.0 $ 314.3 $ 36.9 Deferred Commissions Deferred commissions were $26.9 million as of September 30, 2018 . For the three and nine months ended September 30, 2018 , amortization expense for the deferred commissions was $31.2 million and $109.4 million , respectively. There were no impairment charges recognized during the three and nine months ended September 30, 2018 . Other Expense, Net Other expense, net, consisted of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Interest income $ 18.9 $ 14.7 $ 49.8 $ 37.1 Interest expense (25.8 ) (25.3 ) (77.7 ) (75.6 ) (Loss) gain on investments, net (1.9 ) 4.7 (1.8 ) 6.7 Other 0.7 0.8 (1.4 ) (2.0 ) Other expense, net $ (8.1 ) $ (5.1 ) $ (31.1 ) $ (33.8 ) |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges 2018 Restructuring Plan During the third quarter of 2018, the Company initiated a restructuring plan (the "2018 Restructuring Plan") to realign its workforce as a result of organizational and leadership changes. In connection with the 2018 Restructuring Plan, the Company recorded $4.9 million of severance costs to restructuring charges in the Condensed Consolidated Statements of Operations during the three and nine months ended September 30, 2018 . Subsequent to September 30, 2018 , the Company amended the 2018 Restructuring Plan to further implement certain organizational changes resulting in a realignment of its workforce. As a result, the Company expects to record severance charges of approximately $5.0 million related to headcount reductions in the fourth quarter of 2018 and the Company does not anticipate future charges under the 2018 Restructuring Plan. 2017 Restructuring Plan During 2017, the Company initiated a restructuring plan (the “2017 Restructuring Plan”) to realign its workforce and increase operational efficiencies. The 2017 Restructuring Plan consisted of severance and contract termination costs that were recorded to restructuring charges in the Condensed Consolidated Statements of Operations. During the three and nine months ended September 30, 2018, the Company recorded insignificant favorable adjustments for changes in previous estimates. The 2017 Restructuring Plan is substantially complete. 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 for the Company's 2018 and 2017 restructuring plans (in millions): December 31, Charges/ (Benefits) Cash Payments Other September 30, Severance $ 17.7 $ 3.3 $ (19.3 ) $ 0.1 $ 1.8 Contract terminations and other 2.3 (1.0 ) (1.3 ) — — Total $ 20.0 $ 2.3 $ (20.6 ) $ 0.1 $ 1.8 The Company expects to pay the remaining restructuring liabilities by the end of the first quarter of 2019, at which time the Company would consider the 2018 Restructuring Plan to be substantially complete. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Cash Dividends on Shares of Common Stock The following table summarizes the Company’s cash dividends declared per common stock: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cash dividends declared per common stock $ 0.18 $ 0.10 $ 0.54 $ 0.30 The Company paid cash dividends of $0.18 and $0.10 per share each quarter, totaling $187.0 million and $113.5 million , during the nine months ended September 30, 2018 and September 30, 2017 , respectively. Any future dividends, and the establishment of record and payment dates, are subject to approval by the Board of Directors (the “Board”) of Juniper Networks or an authorized committee thereof. See Note 14, Subsequent Event, for discussion of the Company's dividend declaration subsequent to September 30, 2018 . Stock Repurchase Activities In January 2018, the Board approved a $2.0 billion share repurchase program ("2018 Stock Repurchase Program"), including $750.0 million to be used pursuant to an accelerated share repurchase program. The 2018 Stock Repurchase Program replaces the previous authorization approved by the Board in 2014 ("2014 Stock Repurchase Program"). As part of the 2018 Stock Repurchase Program, in February 2018, the Company entered into an accelerated share repurchase program (the "ASR") with two financial institutions to repurchase $750.0 million of the Company's common stock. During the three months ended March 31, 2018, the Company made an up-front payment of $750.0 million pursuant to the ASR and received an initial 23.3 million shares of the Company's common stock, based on the market value of the Company's common stock on the date of the transaction. During the three months ended September 30, 2018 , the ASR was completed and an additional 6.0 million shares were received from the financial institutions for a total repurchase of 29.3 million shares of the Company's common stock at a volume weighted average repurchase price, less an agreed upon discount, of $25.62 per share. The shares received with respect to the ASR were retired and accounted for as a reduction to stockholders' equity in the Condensed Consolidated Balance Sheets. The following table summarizes the Company's stock repurchases and retirements under its stock repurchase programs (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 (1) 2017 (2) 2018 (1) 2017 (2) Shares repurchased 6.0 5.0 29.3 13.5 Average price per share $ 25.62 $ 28.16 $ 25.62 $ 28.85 Amount repurchased $ — $ 140.0 $ 750.0 $ 390.0 ________________________________ (1) Shares repurchased under the 2018 Stock Repurchase Program. $750.0 million represents the full amount of the ASR for which 23.3 million shares were received initially during the first quarter of 2018, and an additional 6.0 million shares were received at final settlement during the third quarter of 2018. (2) Shares repurchased under the 2014 Stock Repurchase Program. As of September 30, 2018 , there were $1.3 billion of authorized funds remaining under the 2018 Stock Repurchase Program. Future share repurchases under the 2018 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 Company's 2018 Stock Repurchase Program may be discontinued at any time. 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, 2018 were as follows (in millions): Unrealized Gains/Losses on Available-for- Sale Debt Securities (1) Unrealized Gains/Losses on Cash Flow Hedges (2) Foreign Currency Translation Adjustments Total Balance as of December 31, 2017 $ 19.0 $ 6.0 $ (30.4 ) $ (5.4 ) Other comprehensive loss before reclassifications (0.6 ) (5.9 ) (13.7 ) (20.2 ) Amount reclassified from accumulated other comprehensive loss 0.9 (5.5 ) — (4.6 ) Other comprehensive income (loss), net 0.3 (11.4 ) (13.7 ) (24.8 ) Reclassification of tax effects upon adoption of ASU 2018-02 5.0 0.7 — 5.7 Balance as of September 30, 2018 $ 24.3 $ (4.7 ) $ (44.1 ) $ (24.5 ) ________________________________ (1) The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2018 for realized gains/losses on available-for-sale debt securities were included in other expense, net, in the Condensed Consolidated Statements of Operations and were not material. (2) The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2018 for realized gains/losses on cash flow hedges were included within cost of revenues, research and development, sales and marketing, and general and administrative in the Condensed Consolidated Statements of Operations and were not material individually. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2018 | |
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 its 2008 Employee Stock Purchase Plan (the “ESPP”) for all eligible employees. As of September 30, 2018 , 23.3 million and 8.7 million shares were available for future issuance under the Company's 2015 Equity Incentive Plan (the "2015 Plan") and the ESPP, respectively. 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, 2018 (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, 2017 0.9 $ 34.41 Exercised (0.1 ) 4.20 Expired/Canceled (0.7 ) 40.34 Balance as of September 30, 2018 0.1 $ 19.80 1.9 $ 1.2 As of September 30, 2018: Vested and expected-to-vest options 0.1 $ 19.80 1.9 $ 1.2 Exercisable options 0.1 $ 22.24 1.0 $ 0.8 Restricted Stock Unit and Performance Share Award Activities The Company’s RSU and PSA activity and related information as of and for the nine months ended September 30, 2018 were as follows (in millions, except per share amounts and years): Outstanding RSUs and PSAs (4) 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, 2017 19.5 $ 25.39 RSUs granted (1)(3) 6.5 25.36 PSAs granted (2)(3) 0.7 24.43 RSUs vested (5.4 ) 25.43 PSAs vested (1.1 ) 24.14 RSUs canceled (1.5 ) 26.34 PSAs canceled (0.7 ) 24.39 Balance as of September 30, 2018 18.0 $ 25.37 1.1 $ 538.8 ________________________________ (1) Includes service-based and market-based RSUs. The number of shares subject to market-based condition 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 market-based condition that would be issued if market criteria determined by the Compensation Committee of the Board are achieved at target is 0.1 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is zero to 0.3 million shares. (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 zero to 0.7 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, 2018 , the Company declared a quarterly cash dividend of $0.18 per share of common stock on January 30, 2018, May 2, 2018, and July 26, 2018. (4) 2.0 million shares of PSAs were modified during the nine months ended September 30, 2018 , which relate primarily to PSAs assumed by the Company in connection with acquisitions consummated in 2016. These awards are contingent upon the achievement of certain performance milestones. Compensation cost resulting from the modifications totaled $6.3 million to be recognized over the remaining terms of the modified awards. Employee Stock Purchase Plan The following table summarizes employee stock purchases through the ESPP (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Shares purchased 1.2 1.2 2.5 2.7 Average exercise price per share $ 22.39 $ 22.79 $ 22.31 $ 20.83 On November 6, 2017, the Company’s Compensation Committee amended and restated the ESPP to provide that the offering period that began on February 1, 2018 would be for 24 months with four 6 -month purchase periods. A new 24-month offering period will commence every six months thereafter. The purchase price for the Company’s common stock under the ESPP is 85% of the lower of the fair market value of the shares at (1) the beginning of the applicable offering period or (2) the end of each 6 -month purchase period during such offering period. The ESPP will continue in effect until February 25, 2028, unless terminated earlier under the provisions of the ESPP. Share-Based Compensation Expense Share-based compensation expense associated with stock options, RSUs, restricted stock awards ("RSAs"), PSAs, and the 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, 2018 2017 2018 2017 Cost of revenues - Product $ 1.5 $ 1.5 $ 5.1 $ 3.8 Cost of revenues - Service 4.5 3.9 14.2 13.5 Research and development 28.1 18.5 101.8 67.4 Sales and marketing 12.9 13.7 40.4 45.3 General and administrative 6.2 7.4 18.7 21.1 Total $ 53.2 $ 45.0 $ 180.2 $ 151.1 The following table summarizes share-based compensation expense by award type (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Stock options $ 0.1 $ 0.2 $ 0.3 $ 0.5 RSUs, RSAs, and PSAs 48.2 41.0 165.8 138.9 ESPP 4.9 3.8 14.1 11.7 Total $ 53.2 $ 45.0 $ 180.2 $ 151.1 As of September 30, 2018 , the total unrecognized compensation cost related to unvested share-based awards was $320.2 million to be recognized over a weighted-average period of 1.6 years. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments | Segments The Company operates in one reportable segment. The Company's chief executive officer, who is the 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, 2018 2017 2018 2017 Routing $ 496.4 $ 585.8 $ 1,395.1 $ 1,679.9 Switching 221.1 212.6 705.9 730.2 Security 77.2 71.3 229.4 205.7 Total product 794.7 869.7 2,330.4 2,615.8 Total service 385.1 388.1 1,136.1 1,171.9 Total $ 1,179.8 $ 1,257.8 $ 3,466.5 $ 3,787.7 The following table presents net revenues by customer vertical (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cloud $ 250.0 $ 344.9 $ 798.1 $ 1,056.1 Service Provider 543.6 576.9 1,546.8 1,707.8 Enterprise 386.2 336.0 1,121.6 1,023.8 Total $ 1,179.8 $ 1,257.8 $ 3,466.5 $ 3,787.7 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, 2018 2017 2018 2017 Americas: United States $ 597.1 $ 668.8 $ 1,754.2 $ 2,076.0 Other 46.0 60.4 152.2 165.6 Total Americas 643.1 729.2 1,906.4 2,241.6 Europe, Middle East, and Africa 329.9 298.6 946.8 871.3 Asia Pacific 206.8 230.0 613.3 674.8 Total $ 1,179.8 $ 1,257.8 $ 3,466.5 $ 3,787.7 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2018 2017 Income before income taxes $ 152.0 $ 225.8 $ 344.3 $ 611.6 Income tax (benefit) provision $ (71.8 ) $ 60.1 $ (30.4 ) $ 157.3 Effective tax (benefit) rate (47.2 )% 26.6 % (8.8 )% 25.7 % The Company's effective tax rate during the three and nine months ended September 30, 2018 differs from the federal statutory rate of 21% , primarily due to the recognition of certain previously unrecognized tax benefits of $67.6 million , which includes interest of $8.4 million , a reduction of expected tax liabilities of $33.2 million , federal research and development credits and a favorable change in the forecasted geographic mix of earnings. The recognition of $67.6 million in previously unrecognized tax benefits is due to a lapse in the federal statute of limitations relative to fiscal years 2010 through 2014. The reduction of expected tax liabilities of $33.2 million is a result of filing a change in accounting method for the tax recognition of deferred product revenue in the U.S. to better align with the financial statement recognition of such revenue. The Tax Act enacted on December 22, 2017 introduced significant changes to U.S. income tax law. Effective January 1, 2018, the Tax Act reduced the U.S. federal corporate income tax rate from 35% to 21% and created a minimum tax on foreign earnings. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, the Company made reasonable estimates of the effects and recorded provisional amounts in the financial statements as of December 31, 2017. While the Company believes it has largely completed its analysis and related impacts of the Tax Act, the Company expects further guidance from revenue and taxation authorities in the fourth quarter of 2018, particularly from state authorities, which may impact the tax effects. As a result, the Company may make adjustments to the provisional amounts which may materially impact its provision for income taxes from continuing operations in the period in which the adjustments are made. The Company will complete the accounting for the tax effects of the Tax Act in the fourth quarter of 2018. The Tax Act also includes provisions to tax Global Intangible Low-Taxed Income (“GILTI”) of foreign subsidiaries in excess of a deemed return on their tangible assets. The Company anticipates further guidance in the form of tax regulations to be issued by the U.S. Treasury in the fourth quarter of 2018, regarding the utilization of foreign tax credits relative to GILTI. Due to the complexities of the new provisions and the anticipated regulations referenced above, the Company is continuing to evaluate how the provisions will be accounted for under U.S. GAAP. Pursuant to the Tax Act, corporations are allowed to make an accounting policy election to either (i) account for GILTI as a component of income tax expense in the period in which the corporation is subject to the rules (the “period cost method”), or (ii) account for GILTI in the corporation's measurement of deferred taxes (the “deferred method”). The Company has not currently elected a method and will do so after completing its analysis of the GILTI provisions of the Tax Act depending on the analysis of the Company’s global income. Therefore, the Company has not recorded any potential deferred tax effects related to GILTI in its financial statements and has not yet made an accounting policy election regarding whether to record deferred taxes on GILTI or use the period cost method. The Company has, however, included an estimate of the current GILTI impact in its annual effective tax rate for 2018. The Company expects to complete the accounting during the measurement period. As of September 30, 2018 , the total amount of gross unrecognized tax benefits was $205.0 million , of which $183.3 million , if recognized, would affect the 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 $7.9 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. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2018 2017 Numerator: Net income $ 223.8 $ 165.7 $ 374.7 $ 454.3 Denominator: Weighted-average shares used to compute basic net income per share 346.2 378.3 350.1 380.0 Dilutive effect of employee stock awards 4.3 4.4 5.1 6.5 Weighted-average shares used to compute diluted net income per share 350.5 382.7 355.2 386.5 Net income per share Basic $ 0.65 $ 0.44 $ 1.07 $ 1.20 Diluted $ 0.64 $ 0.43 $ 1.05 $ 1.18 Anti-dilutive shares 4.2 1.0 5.0 1.2 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
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. Purchase Commitments with Contract Manufacturers and Suppliers In order to reduce manufacturing lead times and in the interest of having access to adequate component supply, the Company enters into agreements with contract manufacturers and certain suppliers to procure inventory based on the Company's requirements. A significant portion of the Company's purchase commitments arising from these agreements consists of firm and non-cancelable commitments. These purchase commitments totaled $610.9 million as of September 30, 2018 . The Company establishes a liability in connection with purchase commitments related to quantities in excess of its demand forecasts or obsolete materials charges for components purchased by the contract manufacturers based on the Company’s demand forecast or customer orders. As of September 30, 2018 , the Company had accrued $23.6 million based on its estimate of such charges. 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, 2018 and December 31, 2017 , the Company recorded $12.0 million and $20.4 million , respectively, for such indemnification obligations in other accrued liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. Legal Proceedings Investigations The Company previously disclosed that it has been the subject of investigations by the U.S. Securities and Exchange Commission ("SEC") and the U.S. Department of Justice ("DOJ") into possible violations by the Company of the U.S. Foreign Corrupt Practices Act ("FCPA"). In cooperation with these investigations, the Company and the Audit Committee of the Board of Directors, with the assistance of outside counsel and other independent advisors, conducted a thorough internal investigation. As a result of its internal investigation, the Company made significant improvements in its internal controls and carried out a number of disciplinary actions. In the fourth quarter of 2017, the DOJ notified the Company that the DOJ has closed its investigation related to these matters without taking any action against the Company. The Company is continuing to fully cooperate with the SEC’s ongoing investigation, and based on the Company’s recent communications with the Staff of the SEC, the Company believes that it is likely that the Staff of the SEC will seek to bring an enforcement action against the Company. The Company believes it is probable that it could incur a loss and has established an estimated legal reserve of $12.0 million related to the ongoing SEC investigation; however, as discussions are continuing, there can be no assurance as to the timing or the terms of any final resolution of this matter. 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 Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Dividend Declaration On October 23, 2018 , the Company announced that it had declared a cash dividend of $0.18 per share of common stock payable on December 26, 2018 to stockholders of record as of the close of business on December 5, 2018 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2017 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, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 , 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, 2017 (the "Form 10-K"). The Company adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2016-18 (Topic 230) Statement of Cash Flow: Restricted Cash, effective January 1, 2018, using the retrospective transition method . Restricted cash of $47.4 million and $54.2 million has been included within cash, cash equivalents, and restricted cash when reconciling the beginning and ending total amounts, respectively, on the statement of cash flows for the nine months ended September 30, 2017, to conform to the current period presentation. The adoption did not have a material impact on the cash flow activity presented on the Company's Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2017. See Note 3, Cash Equivalents and Investments , for a reconciliation of the cash balances within the Condensed Consolidated Statements of Cash Flows to the Condensed Consolidated Balance Sheets. 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. |
Recently Adopted Accounting Standards and Recent Accounting Standards Not Yet Adopted | Recently Adopted Accounting Standards Comprehensive Income: Effective January 1, 2018, the Company early adopted FASB ASU No. 2018-02 (Topic 220), Income Statement - Reporting Comprehensive Income , issued in February 2018, with an election to reclassify stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act (the "Tax Act"), from accumulated other comprehensive income to retained earnings. The adoption resulted in a reclassification of $5.7 million in income from accumulated other comprehensive loss to accumulated deficit as of the adoption date. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Financial Instruments: On January 1, 2018, the Company adopted FASB ASU No. 2016-01, Financial Instruments—Overall: Recognition and Measurement of Financial Assets and Financial Liabilities and FASB ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall , which changes how entities classify and 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. The Company adopted ASU 2016-01 as of January 1, 2018 using the modified retrospective method for its equity securities with readily determinable fair values and the prospective method for its equity securities without readily determinable fair values, resulting in no impact to the opening accumulated deficit balance. The Company has elected to use the measurement alternative for its equity investments without readily determinable fair value, defined as cost adjusted for changes from observable transactions for identical or similar investments of the same issuer, less impairment. See Note 3, Cash Equivalents and Investments for additional disclosures required upon adopting the standard. Revenue Recognition: On January 1, 2018, the Company adopted FASB ASU No. 2014-09 (Topic 606) - Revenue from Contracts with Customers (“ASU 2014-09” or "Topic 606"), which provides guidance for revenue recognition that superseded the revenue recognition requirements in Accounting Standards Codification ("ASC") Topic 605, Revenue Recognition ("Topic 605") and most industry specific guidance. Under ASU 2014-09, 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. The Company adopted ASU 2014-09 under the modified retrospective approach, applying the amendments to prospective reporting periods. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under Topic 605. The cumulative effect of the changes made to the Company's Condensed Consolidated Balance Sheet as of January 1, 2018 for the adoption of Topic 606 to all contracts with customers that were not completed as of December 31, 2017 was recorded as an adjustment to accumulated deficit as of the adoption date as follows: December 31, 2017 January 1, 2018 As reported Adjustments As adjusted Assets: Accounts receivable, net of allowances $ 852.0 $ (1.9 ) $ 850.1 Prepaid expenses and other current assets 299.9 31.5 331.4 Other long-term assets 415.5 (21.1 ) 394.4 Total assets $ 9,833.8 $ 8.5 $ 9,842.3 Liabilities: Deferred revenue $ 1,030.3 $ (225.4 ) $ 804.9 Other accrued liabilities 304.3 33.8 338.1 Long-term deferred revenue 509.0 (124.6 ) 384.4 Total liabilities $ 5,152.9 $ (316.2 ) $ 4,836.7 Stockholders' Equity: Accumulated deficit $ (3,355.8 ) $ 324.7 $ (3,031.1 ) Upon adoption, the Company recorded a cumulative effect adjustment of $324.7 million , net of tax adjustment of $63.9 million , which decreased the January 1, 2018 opening accumulated deficit balance on the Condensed Consolidated Balance Sheet, primarily as a result of the following items: • Distributor Sales: Under Topic 606, the Company recognizes revenue from sales to distributors upon delivery of the product to the distributor, rather than upon delivery of the product to the end customer. Rebates and incentives offered to distributors, which are earned when sales to end customers are completed, are estimated at the point of revenue recognition. • Software Revenue: Under Topic 605, the Company deferred revenue for software licenses where vendor-specific objective evidence of fair value had not been established for undelivered items (primarily services). Under Topic 606, revenue for software licenses is recognized at the time of delivery unless the ongoing services provide frequent, critical updates to the software, without which the software functionality would be rapidly diminished. • Variable Consideration: Some of the Company's contracts include penalties, extended payment terms, acceptance provisions or other price variability that precluded revenue recognition under Topic 605 because of the requirement for amounts to be fixed or determinable. Topic 606 requires the Company to estimate and account for variable consideration as a reduction of the transaction price. • Revenue Allocation: Similar to Topic 605, Topic 606 requires an allocation of revenue between deliverables, or performance obligations, within an arrangement. Topic 605 restricted the allocation of revenue that is contingent on future deliverables to current deliverables; however, Topic 606 removes this restriction. In addition, the nature of the performance obligations identified within a contract under Topic 606 as compared to Topic 605 will impact the allocation of the transaction price between product and services. • Contract Acquisition Costs: Topic 606 requires the deferral and amortization of “incremental” costs incurred to obtain a contract where the associated contract duration is greater than one year. The primary contract acquisition cost for the Company are sales commissions. Prior to January 1, 2018, the Company expensed sales commissions. The change required by Topic 606 resulted in the creation of an asset on January 1, 2018. The impact of adoption of Topic 606 on the Company's Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheet was as follows (in millions): Three Months Ended September 30, 2018* Nine Months Ended September 30, 2018* As Reported Without Adoption of Topic 606 Topic 606 Impact As Reported Without Adoption of Topic 606 Topic 606 Impact Net revenues: Product $ 794.7 $ 771.9 $ 22.8 $ 2,330.4 $ 2,249.7 $ 80.7 Service 385.1 412.5 (27.4 ) 1,136.1 1,236.3 (100.2 ) Total net revenues $ 1,179.8 $ 1,184.4 $ (4.6 ) $ 3,466.5 $ 3,486.0 $ (19.5 ) Operating expenses: Sales and marketing $ 224.8 $ 225.4 $ (0.6 ) $ 702.5 $ 697.6 $ 4.9 ________________________________ * Except as disclosed, the adoption of Topic 606 did not have a material impact on the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018. As of September 30, 2018 As reported Without Adoption of Topic 606 Topic 606 Impact Assets: Accounts receivable, net of allowances $ 648.3 $ 635.3 $ 13.0 Prepaid expenses and other current assets 253.4 232.6 20.8 Other long-term assets 373.7 371.8 1.9 Total assets $ 9,100.3 $ 9,064.6 $ 35.7 Liabilities: Deferred revenue $ 814.1 $ 1,044.7 $ (230.6 ) Other accrued liabilities 214.8 161.2 53.6 Long-term deferred revenue 351.2 445.5 (94.3 ) Total liabilities $ 4,449.4 $ 4,720.7 $ (271.3 ) Stockholders' Equity: Accumulated deficit $ (3,023.0 ) $ (3,330.2 ) $ 307.2 Revenue Recognition 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 by following a five-step process, (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price, and (5) recognize revenue when or as the Company satisfies a performance obligation, as further described below. Identify the contract with a customer . The Company generally considers a sales contract or agreement with an approved purchase order as a customer contract provided that collection is considered probable, which is assessed based on the creditworthiness of the customer as determined by credit checks, payment histories, and/or other circumstances. The Company combines contracts with a customer if contracts are negotiated with a single commercial substance or contain price dependencies. Identify the performance obligations in the contract . Product performance obligations include hardware and software licenses and service performance obligations include maintenance, software post-contract support, training, and professional services. Certain software licenses and related post-contract support are combined into a single performance obligation when the maintenance updates are critical to the continued functionality of the software. Determine the transaction price . The transaction price for the Company’s contracts with its customers consists of both fixed and variable consideration provided it is probable that a significant reversal of revenue will not occur when the uncertainty related to variable consideration is resolved. Fixed consideration includes amounts to be contractually billed to the customer while variable consideration includes estimates for rights of return, rebates, and price protection, which are based on historical sales returns and price protection credits, specific criteria outlined in rebate agreements, and other factors known at the time. The Company generally invoices customers for hardware, software licenses and related maintenance arrangements at time of delivery, and professional services either upfront or upon meeting certain milestones. Customer invoices are generally due within 30 to 90 days after issuance. The Company’s contracts with customers typically do not include significant financing components as the period between the transfer of performance obligations and timing of payment are generally within one year. Allocate the transaction price to the performance obligations in the contract . For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. Standalone selling prices are based on multiple factors including, but not limited to historical discounting trends for products and services, pricing practices in different geographies and through different sales channels, gross margin objectives, internal costs, competitor pricing strategies, and industry technology lifecycles. Recognize revenue when or as the Company satisfies a performance obligation . Revenue for hardware and certain software licenses, are recognized at a point in time, which is generally upon shipment or delivery. Certain software licenses combined with post-contract support are recognized over time on a ratable basis over the term of the license. Revenue for maintenance and software post-contract support is recognized over time on a ratable basis over the contract term. Revenue from training and professional services is recognized over time as services are completed or ratably over the contractual period of generally one year or less. Deferred Commissions Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit which is typically over the term of the customer contracts as initial commission rates and renewal rates are the same. Amortization expense is included in sales and marketing expenses in the accompanying Condensed Consolidated Statements of Operations. Recent Accounting Standards Not Yet Adopted Cloud Computing Arrangement: In August 2018, the FASB issued ASU No. 2018-15 (Subtopic 350-40) Intangibles-Goodwill and Other-Internal-Use Software: Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which provides guidance on a customer's accounting for implementation, set-up, and other upfront costs incurred in a cloud computing arrangement that is hosted by a service contract. The new standard is to be applied on either a retrospective or prospective basis to all implementation costs incurred after the date of adoption. The standard is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements. Fair Value Measurement: In August 2018, the FASB issued ASU No. 2018-13 (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which eliminates, adds, and modifies certain disclosure requirements for fair value measurements under ASC 820. This ASU is to be applied on a prospective basis for certain modified or new disclosure requirements, and all other amendments in the standard are to be applied on a retrospective basis. The new standard is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact of adoption on the Consolidated Financial Statements. Derivatives and Hedging: 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 presentation and disclosure requirements will be applied on a prospective basis. This standard 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. Amortization on Purchased Callable Debt Securities: 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 adoption of this standard will not have an impact on the Consolidated Financial Statements. Simplifying the Test for Goodwill Impairment: 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. Credit Losses on Financial Instruments: 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 of adoption on the Consolidated Financial Statements. Leases: In February 2016, the FASB issued ASU No. 2016-02 (Topic 842), Leases , and several amendments thereafter, which requires recognition of lease assets and lease liabilities on the balance sheet by lessees for leases classified as operating leases under current GAAP. This ASU must 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 intends to adopt this standard effective January 1, 2019. The Company is on schedule to complete its evaluation of the impact to the financial statements, disclosures, processes, systems, and controls. The Company currently anticipates a material impact related to the recognition of lease assets and lease liabilities for previously unrecognized leases on its Consolidated Balance Sheets, and does not expect this standard will have a material impact on the Consolidated Statements of Operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of new accounting pronouncements and changes in accounting principles | The impact of adoption of Topic 606 on the Company's Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheet was as follows (in millions): Three Months Ended September 30, 2018* Nine Months Ended September 30, 2018* As Reported Without Adoption of Topic 606 Topic 606 Impact As Reported Without Adoption of Topic 606 Topic 606 Impact Net revenues: Product $ 794.7 $ 771.9 $ 22.8 $ 2,330.4 $ 2,249.7 $ 80.7 Service 385.1 412.5 (27.4 ) 1,136.1 1,236.3 (100.2 ) Total net revenues $ 1,179.8 $ 1,184.4 $ (4.6 ) $ 3,466.5 $ 3,486.0 $ (19.5 ) Operating expenses: Sales and marketing $ 224.8 $ 225.4 $ (0.6 ) $ 702.5 $ 697.6 $ 4.9 ________________________________ * Except as disclosed, the adoption of Topic 606 did not have a material impact on the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2018. As of September 30, 2018 As reported Without Adoption of Topic 606 Topic 606 Impact Assets: Accounts receivable, net of allowances $ 648.3 $ 635.3 $ 13.0 Prepaid expenses and other current assets 253.4 232.6 20.8 Other long-term assets 373.7 371.8 1.9 Total assets $ 9,100.3 $ 9,064.6 $ 35.7 Liabilities: Deferred revenue $ 814.1 $ 1,044.7 $ (230.6 ) Other accrued liabilities 214.8 161.2 53.6 Long-term deferred revenue 351.2 445.5 (94.3 ) Total liabilities $ 4,449.4 $ 4,720.7 $ (271.3 ) Stockholders' Equity: Accumulated deficit $ (3,023.0 ) $ (3,330.2 ) $ 307.2 The cumulative effect of the changes made to the Company's Condensed Consolidated Balance Sheet as of January 1, 2018 for the adoption of Topic 606 to all contracts with customers that were not completed as of December 31, 2017 was recorded as an adjustment to accumulated deficit as of the adoption date as follows: December 31, 2017 January 1, 2018 As reported Adjustments As adjusted Assets: Accounts receivable, net of allowances $ 852.0 $ (1.9 ) $ 850.1 Prepaid expenses and other current assets 299.9 31.5 331.4 Other long-term assets 415.5 (21.1 ) 394.4 Total assets $ 9,833.8 $ 8.5 $ 9,842.3 Liabilities: Deferred revenue $ 1,030.3 $ (225.4 ) $ 804.9 Other accrued liabilities 304.3 33.8 338.1 Long-term deferred revenue 509.0 (124.6 ) 384.4 Total liabilities $ 5,152.9 $ (316.2 ) $ 4,836.7 Stockholders' Equity: Accumulated deficit $ (3,355.8 ) $ 324.7 $ (3,031.1 ) |
Cash Equivalents and Investme_2
Cash Equivalents and Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Cash Equivalents and Investments [Abstract] | |
Unrealized gains and losses and fair value of available-for-sale debt securities | The following table summarizes the Company's unrealized gains and losses and fair value of investments designated as available-for-sale debt securities as of September 30, 2018 and December 31, 2017 (in millions): As of September 30, 2018 As of December 31, 2017 Amortized Gross Unrealized Gross Unrealized Estimated Fair Amortized Gross Unrealized Gross Unrealized Estimated Fair Fixed income securities: Asset-backed securities $ 71.9 $ — $ (0.4 ) $ 71.5 $ 287.1 $ — $ (0.6 ) $ 286.5 Certificates of deposit 96.7 — — 96.7 83.8 — — 83.8 Commercial paper 334.7 — — 334.7 217.1 — — 217.1 Corporate debt securities 450.4 — (3.7 ) 446.7 929.6 0.4 (3.0 ) 927.0 Foreign government debt securities 23.0 — (0.2 ) 22.8 62.9 — (0.2 ) 62.7 Time deposits 309.3 — — 309.3 239.2 — — 239.2 U.S. government agency securities 101.8 — (0.3 ) 101.5 143.9 — (0.7 ) 143.2 U.S. government securities 731.1 — (0.8 ) 730.3 406.8 0.1 (0.9 ) 406.0 Total fixed income securities 2,118.9 — (5.4 ) 2,113.5 2,370.4 0.5 (5.4 ) 2,365.5 Privately-held debt and redeemable preferred stock securities 16.6 37.4 — 54.0 15.9 37.4 — 53.3 Total available-for-sale debt securities $ 2,135.5 $ 37.4 $ (5.4 ) $ 2,167.5 $ 2,386.3 $ 37.9 $ (5.4 ) $ 2,418.8 Reported as: Cash equivalents $ 967.2 $ — $ — $ 967.2 $ 351.0 $ — $ — $ 351.0 Short-term investments 889.5 — (2.2 ) 887.3 1,027.2 0.1 (1.2 ) 1,026.1 Long-term investments 262.2 — (3.2 ) 259.0 992.2 0.4 (4.2 ) 988.4 Other long-term assets 16.6 37.4 — 54.0 15.9 37.4 — 53.3 Total $ 2,135.5 $ 37.4 $ (5.4 ) $ 2,167.5 $ 2,386.3 $ 37.9 $ (5.4 ) $ 2,418.8 |
Maturities of fixed income securities | The following table presents the contractual maturities of the Company's total fixed income securities as of September 30, 2018 (in millions): Amortized Cost Estimated Fair Value Due in less than one year $ 1,856.7 $ 1,854.5 Due between one and five years 262.2 259.0 Total $ 2,118.9 $ 2,113.5 |
Available-for-sale securities in unrealized loss position | The following tables present the Company's total fixed income securities that were in an unrealized loss position as of September 30, 2018 and December 31, 2017 (in millions): As of September 30, 2018 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 $ 16.9 $ (0.1 ) $ 46.5 $ (0.3 ) $ 63.4 $ (0.4 ) Commercial paper 0.8 — — — 0.8 — Corporate debt securities 279.0 (2.3 ) 136.9 (1.4 ) 415.9 (3.7 ) Foreign government debt securities 8.0 — 13.4 (0.2 ) 21.4 (0.2 ) U.S. government agency securities 67.8 (0.1 ) 33.6 (0.2 ) 101.4 (0.3 ) U.S. government securities 616.9 (0.3 ) 62.4 (0.5 ) 679.3 (0.8 ) Total fixed income securities $ 989.4 $ (2.8 ) $ 292.8 $ (2.6 ) $ 1,282.2 $ (5.4 ) As of December 31, 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 $ 215.2 $ (0.4 ) $ 38.4 $ (0.2 ) $ 253.6 $ (0.6 ) Corporate debt securities 646.7 (2.1 ) 108.6 (0.9 ) 755.3 (3.0 ) Foreign government debt securities 47.3 (0.2 ) 6.6 — 53.9 (0.2 ) U.S. government agency securities 68.3 (0.2 ) 67.9 (0.5 ) 136.2 (0.7 ) U.S. government securities 260.8 (0.7 ) 51.8 (0.2 ) 312.6 (0.9 ) Total fixed income securities $ 1,238.3 $ (3.6 ) $ 273.3 $ (1.8 ) $ 1,511.6 $ (5.4 ) |
Schedule of investments in equity securities | The following table presents the Company's investments in equity securities as of September 30, 2018 and December 31, 2017 (in millions): As of September 30, December 31, Equity investments with readily determinable fair value Money market funds (1) $ 1,126.2 $ 969.8 Mutual funds (2) 28.0 27.6 Equity investments without readily determinable fair value (3) 32.6 29.7 Total equity securities $ 1,186.8 $ 1,027.1 Reported as: Cash equivalents $ 1,114.6 $ 928.0 Prepaid expenses and other current assets 11.5 36.3 Other long-term assets 60.7 62.8 Total $ 1,186.8 $ 1,027.1 ________________________________ (1) Prior to January 1, 2018, money market funds were classified as available-for-sale securities and accounted for at fair value with unrealized gains and losses recognized in accumulated other comprehensive income (loss). Realized gains or losses from sales or impairments were recognized in the Condensed Consolidated Statements of Operations. (2) Prior to January 1, 2018, mutual funds related to the Company's non-qualified deferred compensation ("NQDC") plan were classified as trading securities. Unrealized gains or losses were recognized in the Condensed Consolidated Statements of Operations. (3) Prior to January 1, 2018, certain investments in privately-held companies were accounted for at cost less impairment. Realized gains or losses from sales or impairments were recognized in the Condensed Consolidated Statements of Operations. |
Schedule of reconciliation of cash, cash equivalents and restricted cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash included in the Condensed Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 (in millions): As of September 30, December 31, Cash and cash equivalents $ 2,501.7 $ 2,006.5 Restricted cash included in Prepaid expenses and other current assets 15.1 49.6 Restricted cash included in Other long-term assets 6.0 3.0 Total cash, cash equivalents, and restricted cash $ 2,522.8 $ 2,059.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 debt securities: Asset-backed securities $ — $ 71.5 $ — $ 71.5 $ — $ 286.5 $ — $ 286.5 Certificates of deposit — 96.7 — 96.7 — 83.8 — 83.8 Commercial paper — 334.7 — 334.7 — 217.1 — 217.1 Corporate debt securities — 446.7 — 446.7 — 927.0 — 927.0 Foreign government debt securities — 22.8 — 22.8 — 62.7 — 62.7 Time deposits — 309.3 — 309.3 — 239.2 — 239.2 U.S. government agency securities — 101.5 — 101.5 — 143.2 — 143.2 U.S. government securities 313.5 416.8 — 730.3 322.4 83.6 — 406.0 Privately-held debt and redeemable preferred stock securities — — 54.0 54.0 — — 53.3 53.3 Total available-for-sale debt securities 313.5 1,800.0 54.0 2,167.5 322.4 2,043.1 53.3 2,418.8 Equity securities: Money market funds (1) 1,126.2 — — 1,126.2 969.8 — — 969.8 Mutual funds (2) 28.0 — — 28.0 27.6 — — 27.6 Total equity securities 1,154.2 — — 1,154.2 997.4 — — 997.4 Derivative assets: Foreign exchange contracts — 3.6 — 3.6 — 9.2 — 9.2 Total assets measured at fair value $ 1,467.7 $ 1,803.6 $ 54.0 $ 3,325.3 $ 1,319.8 $ 2,052.3 $ 53.3 $ 3,425.4 Liabilities: Derivative liabilities: Foreign exchange contracts $ — $ (9.6 ) $ — $ (9.6 ) $ — $ (1.8 ) $ — $ (1.8 ) Total liabilities measured at fair value $ — $ (9.6 ) $ — $ (9.6 ) $ — $ (1.8 ) $ — $ (1.8 ) Total assets, reported as: Cash equivalents $ 1,176.2 $ 905.6 $ — $ 2,081.8 $ 928.1 $ 350.9 $ — $ 1,279.0 Short-term investments 229.4 657.9 — 887.3 247.5 778.6 — 1,026.1 Long-term investments 22.5 236.5 — 259.0 74.8 913.6 — 988.4 Prepaid expenses and other current assets 11.5 3.6 — 15.1 36.3 9.2 — 45.5 Other long-term assets 28.1 — 54.0 82.1 33.1 — 53.3 86.4 Total assets measured at fair value $ 1,467.7 $ 1,803.6 $ 54.0 $ 3,325.3 $ 1,319.8 $ 2,052.3 $ 53.3 $ 3,425.4 Total liabilities, reported as: Other accrued liabilities $ — $ (9.6 ) $ — $ (9.6 ) $ — $ (1.8 ) $ — $ (1.8 ) Total liabilities measured at fair value $ — $ (9.6 ) $ — $ (9.6 ) $ — $ (1.8 ) $ — $ (1.8 ) ________________________________ (1) Balance includes $11.6 million and $16.8 million in restricted investments measured at fair value, related to the Company's acquisition-related escrows as of September 30, 2018 and December 31, 2017, respectively. The December 31, 2017 balance also includes $25.0 million related to the Company's Directors and Officers indemnification trust, which was subsequently terminated. (2) Balance relates to restricted investments measured at fair value related to the Company's NQDC plan. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 $ 609.5 $ 521.1 Non-designated derivatives 141.4 108.3 Total $ 750.9 $ 629.4 |
Other Financial Information (Ta
Other Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Financial Information [Abstract] | |
Inventories | Total inventory consisted of the following (in millions): As of September 30, December 31, Production and service materials $ 56.3 $ 71.2 Finished goods 19.3 26.6 Inventory $ 75.6 $ 97.8 Reported as: Prepaid expenses and other current assets $ 74.1 $ 93.8 Other long-term assets 1.5 4.0 Total $ 75.6 $ 97.8 |
Warranties | Changes during the nine months ended September 30, 2018 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, 2017 $ 27.4 Provisions made during the period 22.0 Actual costs incurred during the period (23.0 ) Balance as of September 30, 2018 $ 26.4 |
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 $ 144.5 $ 312.6 Distributor inventory and other sell-through items — 68.1 Deferred gross product revenue 144.5 380.7 Deferred cost of product revenue (10.9 ) (46.5 ) Deferred product revenue, net 133.6 334.2 Deferred service revenue 1,031.7 1,205.1 Total $ 1,165.3 $ 1,539.3 Reported as: Current $ 814.1 $ 1,030.3 Long-term 351.2 509.0 Total $ 1,165.3 $ 1,539.3 |
Performance obligation | The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 30, 2018 and when the Company expects to recognize the amounts as revenue (in millions): Revenue Recognition Expected by Period Total Less than 1 year 1-3 years More than 3 years Product $ 144.5 $ 119.5 $ 22.1 $ 2.9 Service 1,031.7 705.5 292.2 34.0 Total $ 1,176.2 $ 825.0 $ 314.3 $ 36.9 |
Other expense, net | Other expense, net, consisted of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Interest income $ 18.9 $ 14.7 $ 49.8 $ 37.1 Interest expense (25.8 ) (25.3 ) (77.7 ) (75.6 ) (Loss) gain on investments, net (1.9 ) 4.7 (1.8 ) 6.7 Other 0.7 0.8 (1.4 ) (2.0 ) Other expense, net $ (8.1 ) $ (5.1 ) $ (31.1 ) $ (33.8 ) |
Restructuring (Benefits) Charge
Restructuring (Benefits) Charges (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring liabilities | The following table provides a summary of changes in the restructuring liabilities for the Company's 2018 and 2017 restructuring plans (in millions): December 31, Charges/ (Benefits) Cash Payments Other September 30, Severance $ 17.7 $ 3.3 $ (19.3 ) $ 0.1 $ 1.8 Contract terminations and other 2.3 (1.0 ) (1.3 ) — — Total $ 20.0 $ 2.3 $ (20.6 ) $ 0.1 $ 1.8 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Cash Dividends Declared | The following table summarizes the Company’s cash dividends declared per common stock: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cash dividends declared per common stock $ 0.18 $ 0.10 $ 0.54 $ 0.30 |
Schedule of repurchase agreements | The following table summarizes the Company's stock repurchases and retirements under its stock repurchase programs (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 (1) 2017 (2) 2018 (1) 2017 (2) Shares repurchased 6.0 5.0 29.3 13.5 Average price per share $ 25.62 $ 28.16 $ 25.62 $ 28.85 Amount repurchased $ — $ 140.0 $ 750.0 $ 390.0 ________________________________ (1) Shares repurchased under the 2018 Stock Repurchase Program. $750.0 million represents the full amount of the ASR for which 23.3 million shares were received initially during the first quarter of 2018, and an additional 6.0 million shares were received at final settlement during the third quarter of 2018. (2) Shares repurchased under the 2014 Stock Repurchase Program. |
Components of accumulated other comprehensive loss, net of taxes | The components of accumulated other comprehensive loss, net of related taxes, for the nine months ended September 30, 2018 were as follows (in millions): Unrealized Gains/Losses on Available-for- Sale Debt Securities (1) Unrealized Gains/Losses on Cash Flow Hedges (2) Foreign Currency Translation Adjustments Total Balance as of December 31, 2017 $ 19.0 $ 6.0 $ (30.4 ) $ (5.4 ) Other comprehensive loss before reclassifications (0.6 ) (5.9 ) (13.7 ) (20.2 ) Amount reclassified from accumulated other comprehensive loss 0.9 (5.5 ) — (4.6 ) Other comprehensive income (loss), net 0.3 (11.4 ) (13.7 ) (24.8 ) Reclassification of tax effects upon adoption of ASU 2018-02 5.0 0.7 — 5.7 Balance as of September 30, 2018 $ 24.3 $ (4.7 ) $ (44.1 ) $ (24.5 ) ________________________________ (1) The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2018 for realized gains/losses on available-for-sale debt securities were included in other expense, net, in the Condensed Consolidated Statements of Operations and were not material. (2) The reclassifications out of accumulated other comprehensive loss during the nine months ended September 30, 2018 for realized gains/losses on cash flow hedges were included within cost of revenues, research and development, sales and marketing, and general and administrative in the Condensed Consolidated Statements of Operations and were not material individually. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 (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, 2017 0.9 $ 34.41 Exercised (0.1 ) 4.20 Expired/Canceled (0.7 ) 40.34 Balance as of September 30, 2018 0.1 $ 19.80 1.9 $ 1.2 As of September 30, 2018: Vested and expected-to-vest options 0.1 $ 19.80 1.9 $ 1.2 Exercisable options 0.1 $ 22.24 1.0 $ 0.8 |
Schedule of nonvested share activity | The Company’s RSU and PSA activity and related information as of and for the nine months ended September 30, 2018 were as follows (in millions, except per share amounts and years): Outstanding RSUs and PSAs (4) 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, 2017 19.5 $ 25.39 RSUs granted (1)(3) 6.5 25.36 PSAs granted (2)(3) 0.7 24.43 RSUs vested (5.4 ) 25.43 PSAs vested (1.1 ) 24.14 RSUs canceled (1.5 ) 26.34 PSAs canceled (0.7 ) 24.39 Balance as of September 30, 2018 18.0 $ 25.37 1.1 $ 538.8 ________________________________ (1) Includes service-based and market-based RSUs. The number of shares subject to market-based condition 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 market-based condition that would be issued if market criteria determined by the Compensation Committee of the Board are achieved at target is 0.1 million shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is zero to 0.3 million shares. (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 zero to 0.7 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, 2018 , the Company declared a quarterly cash dividend of $0.18 per share of common stock on January 30, 2018, May 2, 2018, and July 26, 2018. (4) 2.0 million shares of PSAs were modified during the nine months ended September 30, 2018 , which relate primarily to PSAs assumed by the Company in connection with acquisitions consummated in 2016. These awards are contingent upon the achievement of certain performance milestones. Compensation cost resulting from the modifications totaled $6.3 million to be recognized over the remaining terms of the modified awards. |
Summary of employee stock purchases through the ESPP | The following table summarizes employee stock purchases through the ESPP (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Shares purchased 1.2 1.2 2.5 2.7 Average exercise price per share $ 22.39 $ 22.79 $ 22.31 $ 20.83 |
Schedule of employee service share-based compensation, allocation of recognized period costs | Share-based compensation expense associated with stock options, RSUs, restricted stock awards ("RSAs"), PSAs, and the 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, 2018 2017 2018 2017 Cost of revenues - Product $ 1.5 $ 1.5 $ 5.1 $ 3.8 Cost of revenues - Service 4.5 3.9 14.2 13.5 Research and development 28.1 18.5 101.8 67.4 Sales and marketing 12.9 13.7 40.4 45.3 General and administrative 6.2 7.4 18.7 21.1 Total $ 53.2 $ 45.0 $ 180.2 $ 151.1 |
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, 2018 2017 2018 2017 Stock options $ 0.1 $ 0.2 $ 0.3 $ 0.5 RSUs, RSAs, and PSAs 48.2 41.0 165.8 138.9 ESPP 4.9 3.8 14.1 11.7 Total $ 53.2 $ 45.0 $ 180.2 $ 151.1 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Financial information for each segment | The following table presents net revenues by product and service (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Routing $ 496.4 $ 585.8 $ 1,395.1 $ 1,679.9 Switching 221.1 212.6 705.9 730.2 Security 77.2 71.3 229.4 205.7 Total product 794.7 869.7 2,330.4 2,615.8 Total service 385.1 388.1 1,136.1 1,171.9 Total $ 1,179.8 $ 1,257.8 $ 3,466.5 $ 3,787.7 The following table presents net revenues by customer vertical (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cloud $ 250.0 $ 344.9 $ 798.1 $ 1,056.1 Service Provider 543.6 576.9 1,546.8 1,707.8 Enterprise 386.2 336.0 1,121.6 1,023.8 Total $ 1,179.8 $ 1,257.8 $ 3,466.5 $ 3,787.7 |
Disaggregation of revenue | The following table presents net revenues by product and service (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Routing $ 496.4 $ 585.8 $ 1,395.1 $ 1,679.9 Switching 221.1 212.6 705.9 730.2 Security 77.2 71.3 229.4 205.7 Total product 794.7 869.7 2,330.4 2,615.8 Total service 385.1 388.1 1,136.1 1,171.9 Total $ 1,179.8 $ 1,257.8 $ 3,466.5 $ 3,787.7 The following table presents net revenues by customer vertical (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Cloud $ 250.0 $ 344.9 $ 798.1 $ 1,056.1 Service Provider 543.6 576.9 1,546.8 1,707.8 Enterprise 386.2 336.0 1,121.6 1,023.8 Total $ 1,179.8 $ 1,257.8 $ 3,466.5 $ 3,787.7 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, 2018 2017 2018 2017 Americas: United States $ 597.1 $ 668.8 $ 1,754.2 $ 2,076.0 Other 46.0 60.4 152.2 165.6 Total Americas 643.1 729.2 1,906.4 2,241.6 Europe, Middle East, and Africa 329.9 298.6 946.8 871.3 Asia Pacific 206.8 230.0 613.3 674.8 Total $ 1,179.8 $ 1,257.8 $ 3,466.5 $ 3,787.7 |
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, 2018 2017 2018 2017 Americas: United States $ 597.1 $ 668.8 $ 1,754.2 $ 2,076.0 Other 46.0 60.4 152.2 165.6 Total Americas 643.1 729.2 1,906.4 2,241.6 Europe, Middle East, and Africa 329.9 298.6 946.8 871.3 Asia Pacific 206.8 230.0 613.3 674.8 Total $ 1,179.8 $ 1,257.8 $ 3,466.5 $ 3,787.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2018 2017 Income before income taxes $ 152.0 $ 225.8 $ 344.3 $ 611.6 Income tax (benefit) provision $ (71.8 ) $ 60.1 $ (30.4 ) $ 157.3 Effective tax (benefit) rate (47.2 )% 26.6 % (8.8 )% 25.7 % |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted 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, 2018 2017 2018 2017 Numerator: Net income $ 223.8 $ 165.7 $ 374.7 $ 454.3 Denominator: Weighted-average shares used to compute basic net income per share 346.2 378.3 350.1 380.0 Dilutive effect of employee stock awards 4.3 4.4 5.1 6.5 Weighted-average shares used to compute diluted net income per share 350.5 382.7 355.2 386.5 Net income per share Basic $ 0.65 $ 0.44 $ 1.07 $ 1.20 Diluted $ 0.64 $ 0.43 $ 1.05 $ 1.18 Anti-dilutive shares 4.2 1.0 5.0 1.2 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Restricted cash | $ 54.2 | $ 47.4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Sep. 30, 2018 |
Accumulated Deficit | Accounting Standards Update 2014-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect on retained earnings, net of tax | $ 324.7 | |
Cumulative effect on retained earnings, tax | 63.9 | |
Minimum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Revenue from contract with customers, terms of payment (in days) | 30 days | |
Maximum | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Revenue from contract with customers, terms of payment (in days) | 90 days | |
Accumulated Other Comprehensive Loss | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of taxes effects upon adoption of ASU 2018-02, net | $ 5.7 | |
Accumulated Other Comprehensive Loss | Accounting Standards Update 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of taxes effects upon adoption of ASU 2018-02, net | 5.7 | |
Accumulated Deficit | Accounting Standards Update 2018-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of taxes effects upon adoption of ASU 2018-02, net | $ (5.7) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Contract Revenue Adjustments on Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets: | |||
Accounts receivable, net of allowances | $ 648.3 | $ 850.1 | $ 852 |
Prepaid expenses and other current assets | 253.4 | 331.4 | 299.9 |
Other long-term assets | 373.7 | 394.4 | 415.5 |
Total assets | 9,100.3 | 9,842.3 | 9,833.8 |
Liabilities: | |||
Deferred revenue | 814.1 | 804.9 | 1,030.3 |
Other accrued liabilities | 214.8 | 338.1 | 304.3 |
Long-term deferred revenue | 351.2 | 384.4 | 509 |
Total liabilities | 4,449.4 | 4,836.7 | 5,152.9 |
Stockholders' Equity: | |||
Accumulated deficit | (3,023) | (3,031.1) | (3,355.8) |
As reported/Without Adoption of Topic 606 | |||
Assets: | |||
Accounts receivable, net of allowances | 635.3 | 852 | |
Prepaid expenses and other current assets | 232.6 | 299.9 | |
Other long-term assets | 371.8 | 415.5 | |
Total assets | 9,064.6 | 9,833.8 | |
Liabilities: | |||
Deferred revenue | 1,044.7 | 1,030.3 | |
Other accrued liabilities | 161.2 | 304.3 | |
Long-term deferred revenue | 445.5 | 509 | |
Total liabilities | 4,720.7 | 5,152.9 | |
Stockholders' Equity: | |||
Accumulated deficit | (3,330.2) | $ (3,355.8) | |
Adjustments/ Topic 606 Impact | Accounting Standards Update 2014-09 | |||
Assets: | |||
Accounts receivable, net of allowances | 13 | (1.9) | |
Prepaid expenses and other current assets | 20.8 | 31.5 | |
Other long-term assets | 1.9 | (21.1) | |
Total assets | 35.7 | 8.5 | |
Liabilities: | |||
Deferred revenue | (230.6) | (225.4) | |
Other accrued liabilities | 53.6 | 33.8 | |
Long-term deferred revenue | (94.3) | (124.6) | |
Total liabilities | (271.3) | (316.2) | |
Stockholders' Equity: | |||
Accumulated deficit | $ 307.2 | $ 324.7 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Contract Revenue Adjustments on Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net revenues: | ||||
Total net revenues | $ 1,179.8 | $ 1,257.8 | $ 3,466.5 | $ 3,787.7 |
Operating expenses: | ||||
Sales and marketing | 224.8 | 232.5 | 702.5 | 716.6 |
Without Adoption of Topic 606 | ||||
Net revenues: | ||||
Total net revenues | 1,184.4 | 3,486 | ||
Operating expenses: | ||||
Sales and marketing | 225.4 | 697.6 | ||
Topic 606 Impact | Accounting Standards Update 2014-09 | ||||
Net revenues: | ||||
Total net revenues | (4.6) | (19.5) | ||
Operating expenses: | ||||
Sales and marketing | (0.6) | 4.9 | ||
Product | ||||
Net revenues: | ||||
Total net revenues | 794.7 | 869.7 | 2,330.4 | 2,615.8 |
Product | Without Adoption of Topic 606 | ||||
Net revenues: | ||||
Total net revenues | 771.9 | 2,249.7 | ||
Product | Topic 606 Impact | Accounting Standards Update 2014-09 | ||||
Net revenues: | ||||
Total net revenues | 22.8 | 80.7 | ||
Service | ||||
Net revenues: | ||||
Total net revenues | 385.1 | $ 388.1 | 1,136.1 | $ 1,171.9 |
Service | Without Adoption of Topic 606 | ||||
Net revenues: | ||||
Total net revenues | 412.5 | 1,236.3 | ||
Service | Topic 606 Impact | Accounting Standards Update 2014-09 | ||||
Net revenues: | ||||
Total net revenues | $ (27.4) | $ (100.2) |
Cash Equivalents and Investme_3
Cash Equivalents and Investments - Available-For-Sale (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-sale debt securities: | ||
Amortized Cost | $ 2,135.5 | $ 2,386.3 |
Gross Unrealized Gains | 37.4 | 37.9 |
Gross Unrealized Losses | (5.4) | (5.4) |
Estimated Fair Value | 2,167.5 | 2,418.8 |
Asset-backed securities | ||
Available-for-sale debt securities: | ||
Amortized Cost | 71.9 | 287.1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.4) | (0.6) |
Estimated Fair Value | 71.5 | 286.5 |
Certificates of deposit | ||
Available-for-sale debt securities: | ||
Amortized Cost | 96.7 | 83.8 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 96.7 | 83.8 |
Commercial paper | ||
Available-for-sale debt securities: | ||
Amortized Cost | 334.7 | 217.1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 334.7 | 217.1 |
Corporate debt securities | ||
Available-for-sale debt securities: | ||
Amortized Cost | 450.4 | 929.6 |
Gross Unrealized Gains | 0 | 0.4 |
Gross Unrealized Losses | (3.7) | (3) |
Estimated Fair Value | 446.7 | 927 |
Foreign government debt securities | ||
Available-for-sale debt securities: | ||
Amortized Cost | 23 | 62.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.2) | (0.2) |
Estimated Fair Value | 22.8 | 62.7 |
Time deposits | ||
Available-for-sale debt securities: | ||
Amortized Cost | 309.3 | 239.2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 309.3 | 239.2 |
U.S. government agency securities | ||
Available-for-sale debt securities: | ||
Amortized Cost | 101.8 | 143.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.3) | (0.7) |
Estimated Fair Value | 101.5 | 143.2 |
U.S. government securities | ||
Available-for-sale debt securities: | ||
Amortized Cost | 731.1 | 406.8 |
Gross Unrealized Gains | 0 | 0.1 |
Gross Unrealized Losses | (0.8) | (0.9) |
Estimated Fair Value | 730.3 | 406 |
Fixed Income securities | ||
Available-for-sale debt securities: | ||
Amortized Cost | 2,118.9 | 2,370.4 |
Gross Unrealized Gains | 0 | 0.5 |
Gross Unrealized Losses | (5.4) | (5.4) |
Estimated Fair Value | 2,113.5 | 2,365.5 |
Privately-held debt and redeemable preferred stock securities | ||
Available-for-sale debt securities: | ||
Amortized Cost | 16.6 | 15.9 |
Gross Unrealized Gains | 37.4 | 37.4 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 54 | 53.3 |
Cash equivalents | ||
Available-for-sale debt securities: | ||
Amortized Cost | 967.2 | 351 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 967.2 | 351 |
Short-term investments | ||
Available-for-sale debt securities: | ||
Amortized Cost | 889.5 | 1,027.2 |
Gross Unrealized Gains | 0 | 0.1 |
Gross Unrealized Losses | (2.2) | (1.2) |
Estimated Fair Value | 887.3 | 1,026.1 |
Long-term investments | ||
Available-for-sale debt securities: | ||
Amortized Cost | 262.2 | 992.2 |
Gross Unrealized Gains | 0 | 0.4 |
Gross Unrealized Losses | (3.2) | (4.2) |
Estimated Fair Value | 259 | 988.4 |
Other long-term assets | ||
Available-for-sale debt securities: | ||
Amortized Cost | 16.6 | 15.9 |
Gross Unrealized Gains | 37.4 | 37.4 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 54 | $ 53.3 |
Cash Equivalents and Investme_4
Cash Equivalents and Investments - Maturities of Fixed Income Securities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Amortized Cost | $ 2,135.5 | $ 2,386.3 |
Estimated Fair Value | ||
Total | 2,167.5 | 2,418.8 |
Fixed Income Securities | ||
Amortized Cost | ||
Due in less than one year | 1,856.7 | |
Due between one and five years | 262.2 | |
Amortized Cost | 2,118.9 | 2,370.4 |
Estimated Fair Value | ||
Due in less than one year | 1,854.5 | |
Due between one and five years | 259 | |
Total | $ 2,113.5 | $ 2,365.5 |
Cash Equivalents and Investme_5
Cash Equivalents and Investments - Unrealized Loss Position on Fixed Income Securities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fixed Income Securities | ||
Fair Value | ||
Less than 12 Months | $ 989.4 | $ 1,238.3 |
12 Months or Greater | 292.8 | 273.3 |
Total | 1,282.2 | 1,511.6 |
Unrealized Loss | ||
Less than 12 Months | (2.8) | (3.6) |
12 Months or Greater | (2.6) | (1.8) |
Total | (5.4) | (5.4) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 Months | 16.9 | 215.2 |
12 Months or Greater | 46.5 | 38.4 |
Total | 63.4 | 253.6 |
Unrealized Loss | ||
Less than 12 Months | (0.1) | (0.4) |
12 Months or Greater | (0.3) | (0.2) |
Total | (0.4) | (0.6) |
Commercial paper | ||
Fair Value | ||
Less than 12 Months | 0.8 | |
12 Months or Greater | 0 | |
Total | 0.8 | |
Unrealized Loss | ||
Less than 12 Months | 0 | |
12 Months or Greater | 0 | |
Total | 0 | |
Corporate debt securities | ||
Fair Value | ||
Less than 12 Months | 279 | 646.7 |
12 Months or Greater | 136.9 | 108.6 |
Total | 415.9 | 755.3 |
Unrealized Loss | ||
Less than 12 Months | (2.3) | (2.1) |
12 Months or Greater | (1.4) | (0.9) |
Total | (3.7) | (3) |
Foreign government debt securities | ||
Fair Value | ||
Less than 12 Months | 8 | 47.3 |
12 Months or Greater | 13.4 | 6.6 |
Total | 21.4 | 53.9 |
Unrealized Loss | ||
Less than 12 Months | 0 | (0.2) |
12 Months or Greater | (0.2) | 0 |
Total | (0.2) | (0.2) |
U.S. government agency securities | ||
Fair Value | ||
Less than 12 Months | 67.8 | 68.3 |
12 Months or Greater | 33.6 | 67.9 |
Total | 101.4 | 136.2 |
Unrealized Loss | ||
Less than 12 Months | (0.1) | (0.2) |
12 Months or Greater | (0.2) | (0.5) |
Total | (0.3) | (0.7) |
U.S. government securities | ||
Fair Value | ||
Less than 12 Months | 616.9 | 260.8 |
12 Months or Greater | 62.4 | 51.8 |
Total | 679.3 | 312.6 |
Unrealized Loss | ||
Less than 12 Months | (0.3) | (0.7) |
12 Months or Greater | (0.5) | (0.2) |
Total | $ (0.8) | $ (0.9) |
Cash Equivalents and Investme_6
Cash Equivalents and Investments - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)Investment | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Investment | Sep. 30, 2017USD ($) | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total investments in unrealized loss position | Investment | 539 | 539 | ||
Available-for-sale debt securities, gross realized gain | $ 0 | $ 0 | $ 0 | $ 0 |
Available-for-sale debt securities, gross realized loss | 0 | 0 | 0 | 0 |
Equity investments, unrealized gains | 0 | 0 | 0 | 0 |
Equity investments, unrealized losses | 0 | 0 | 0 | 0 |
Restricted cash and investments | 60,700,000 | 60,700,000 | ||
Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and investments | 26,600,000 | 26,600,000 | ||
Other long-term assets | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash and investments | 34,100,000 | 34,100,000 | ||
Debt Securities | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
OTTI, associated with credit losses | $ 0 | $ 0 | $ 0 | $ 0 |
Cash Equivalents and Investme_7
Cash Equivalents and Investments - Equity securities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Trading, and Equity Securities, FV-NI [Line Items] | ||
Equity investments without readily determinable fair value | $ 32.6 | |
Total equity securities | 1,186.8 | |
Equity investments without readily determinable fair value | $ 29.7 | |
Total equity securities | 1,027.1 | |
Money market funds | ||
Debt Securities, Trading, and Equity Securities, FV-NI [Line Items] | ||
Equity investments with readily determinable fair value | 1,126.2 | |
Equity investments with readily determinable fair value | 969.8 | |
Mutual funds | ||
Debt Securities, Trading, and Equity Securities, FV-NI [Line Items] | ||
Equity investments with readily determinable fair value | 28 | |
Equity investments with readily determinable fair value | 27.6 | |
Cash equivalents | ||
Debt Securities, Trading, and Equity Securities, FV-NI [Line Items] | ||
Total equity securities | 1,114.6 | |
Total equity securities | 928 | |
Prepaid expenses and other current assets | ||
Debt Securities, Trading, and Equity Securities, FV-NI [Line Items] | ||
Total equity securities | 11.5 | |
Total equity securities | 36.3 | |
Other long-term assets | ||
Debt Securities, Trading, and Equity Securities, FV-NI [Line Items] | ||
Total equity securities | $ 60.7 | |
Total equity securities | $ 62.8 |
Cash Equivalents and Investme_8
Cash Equivalents and Investments - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 2,501.7 | $ 2,006.5 | ||
Restricted cash | $ 54.2 | $ 47.4 | ||
Total cash, cash equivalents, and restricted cash | 2,522.8 | 2,059.1 | $ 2,417.9 | $ 1,880.6 |
Prepaid expenses and other current assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | 15.1 | 49.6 | ||
Other long-term assets | ||||
Cash and Cash Equivalents [Line Items] | ||||
Restricted cash | $ 6 | $ 3 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-sale securities: | ||
Available-for-sale debt securities | $ 2,167.5 | $ 2,418.8 |
Asset-backed securities | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 71.5 | 286.5 |
Certificates of deposit | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 96.7 | 83.8 |
Commercial paper | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 334.7 | 217.1 |
Corporate debt securities | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 446.7 | 927 |
Foreign government debt securities | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 22.8 | 62.7 |
Time deposits | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 309.3 | 239.2 |
U.S. government agency securities | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 101.5 | 143.2 |
U.S. government securities | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 730.3 | 406 |
Privately-held debt and redeemable preferred stock securities | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 54 | 53.3 |
Money market funds | ||
Available-for-sale securities: | ||
Equity securities | 1,126.2 | |
Equity securities | 969.8 | |
Fair Value, Measurements, Recurring | ||
Available-for-sale securities: | ||
Equity securities | 1,154.2 | |
Equity securities | 997.4 | |
Derivative assets: | ||
Total assets measured at fair value | 3,325.3 | 3,425.4 |
Liabilities measured at fair value: | ||
Total liabilities measured at fair value | (9.6) | (1.8) |
Fair Value, Measurements, Recurring | Foreign exchange contracts | ||
Derivative assets: | ||
Foreign exchange contracts | 3.6 | 9.2 |
Liabilities measured at fair value: | ||
Derivative liabilities | (9.6) | (1.8) |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Equity securities | 1,154.2 | |
Equity securities | 997.4 | |
Derivative assets: | ||
Total assets measured at fair value | 1,467.7 | 1,319.8 |
Liabilities measured at fair value: | ||
Total liabilities measured at fair value | 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) | ||
Available-for-sale securities: | ||
Equity securities | 0 | |
Equity securities | 0 | |
Derivative assets: | ||
Total assets measured at fair value | 1,803.6 | 2,052.3 |
Liabilities measured at fair value: | ||
Total liabilities measured at fair value | (9.6) | (1.8) |
Fair Value, Measurements, Recurring | Significant Other Observable Remaining Inputs (Level 2) | Foreign exchange contracts | ||
Derivative assets: | ||
Foreign exchange contracts | 3.6 | 9.2 |
Liabilities measured at fair value: | ||
Derivative liabilities | (9.6) | (1.8) |
Fair Value, Measurements, Recurring | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Equity securities | 0 | |
Equity securities | 0 | |
Derivative assets: | ||
Total assets measured at fair value | 54 | 53.3 |
Liabilities measured at fair value: | ||
Total liabilities measured at fair value | 0 | 0 |
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 debt securities | 71.5 | 286.5 |
Fair Value, Measurements, Recurring | Asset-backed securities | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Asset-backed securities | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 71.5 | 286.5 |
Fair Value, Measurements, Recurring | Asset-backed securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Certificates of deposit | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 96.7 | 83.8 |
Fair Value, Measurements, Recurring | Certificates of deposit | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Certificates of deposit | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 96.7 | 83.8 |
Fair Value, Measurements, Recurring | Certificates of deposit | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 334.7 | 217.1 |
Fair Value, Measurements, Recurring | Commercial paper | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Commercial paper | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 334.7 | 217.1 |
Fair Value, Measurements, Recurring | Commercial paper | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate debt securities | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 446.7 | 927 |
Fair Value, Measurements, Recurring | Corporate debt securities | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Corporate debt securities | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 446.7 | 927 |
Fair Value, Measurements, Recurring | Corporate debt securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Foreign government debt securities | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 22.8 | 62.7 |
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 debt 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 debt securities | 22.8 | 62.7 |
Fair Value, Measurements, Recurring | Foreign government debt securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Time deposits | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 309.3 | 239.2 |
Fair Value, Measurements, Recurring | Time deposits | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Time deposits | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 309.3 | 239.2 |
Fair Value, Measurements, Recurring | Time deposits | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. government agency securities | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 101.5 | 143.2 |
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 debt 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 debt securities | 101.5 | 143.2 |
Fair Value, Measurements, Recurring | U.S. government agency securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | U.S. government securities | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 730.3 | 406 |
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 debt securities | 313.5 | 322.4 |
Fair Value, Measurements, Recurring | U.S. government securities | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 416.8 | 83.6 |
Fair Value, Measurements, Recurring | U.S. government securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Privately-held debt and redeemable preferred stock securities | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 54 | 53.3 |
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: | ||
Available-for-sale debt 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: | ||
Available-for-sale debt 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: | ||
Available-for-sale debt securities | 54 | 53.3 |
Fair Value, Measurements, Recurring | Total available-for-sale debt securities | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 2,167.5 | 2,418.8 |
Fair Value, Measurements, Recurring | Total available-for-sale debt securities | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 313.5 | 322.4 |
Fair Value, Measurements, Recurring | Total available-for-sale debt securities | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 1,800 | 2,043.1 |
Fair Value, Measurements, Recurring | Total available-for-sale debt securities | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 54 | 53.3 |
Fair Value, Measurements, Recurring | Money market funds | ||
Available-for-sale securities: | ||
Equity securities | 1,126.2 | |
Equity securities | 969.8 | |
Fair Value, Measurements, Recurring | Money market funds | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Equity securities | 1,126.2 | |
Equity securities | 969.8 | |
Fair Value, Measurements, Recurring | Money market funds | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Equity securities | 0 | |
Equity securities | 0 | |
Fair Value, Measurements, Recurring | Money market funds | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Equity securities | 0 | |
Equity securities | 0 | |
Fair Value, Measurements, Recurring | Mutual funds | ||
Available-for-sale securities: | ||
Equity securities | 28 | |
Equity securities | 27.6 | |
Fair Value, Measurements, Recurring | Mutual funds | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Available-for-sale securities: | ||
Equity securities | 28 | |
Equity securities | 27.6 | |
Fair Value, Measurements, Recurring | Mutual funds | Significant Other Observable Remaining Inputs (Level 2) | ||
Available-for-sale securities: | ||
Equity securities | 0 | |
Equity securities | 0 | |
Fair Value, Measurements, Recurring | Mutual funds | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Available-for-sale securities: | ||
Equity securities | 0 | |
Equity securities | 0 | |
Cash equivalents | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 967.2 | 351 |
Cash equivalents | Fair Value, Measurements, Recurring | ||
Derivative assets: | ||
Total assets measured at fair value | 2,081.8 | 1,279 |
Cash equivalents | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Derivative assets: | ||
Total assets measured at fair value | 1,176.2 | 928.1 |
Cash equivalents | Fair Value, Measurements, Recurring | Significant Other Observable Remaining Inputs (Level 2) | ||
Derivative assets: | ||
Total assets measured at fair value | 905.6 | 350.9 |
Cash equivalents | Fair Value, Measurements, Recurring | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Derivative assets: | ||
Total assets measured at fair value | 0 | 0 |
Short-term investments | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 887.3 | 1,026.1 |
Short-term investments | Fair Value, Measurements, Recurring | ||
Derivative assets: | ||
Total assets measured at fair value | 887.3 | 1,026.1 |
Short-term investments | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Derivative assets: | ||
Total assets measured at fair value | 229.4 | 247.5 |
Short-term investments | Fair Value, Measurements, Recurring | Significant Other Observable Remaining Inputs (Level 2) | ||
Derivative assets: | ||
Total assets measured at fair value | 657.9 | 778.6 |
Short-term investments | Fair Value, Measurements, Recurring | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Derivative assets: | ||
Total assets measured at fair value | 0 | 0 |
Long-term investments | ||
Available-for-sale securities: | ||
Available-for-sale debt securities | 259 | 988.4 |
Long-term investments | Fair Value, Measurements, Recurring | ||
Derivative assets: | ||
Total assets measured at fair value | 259 | 988.4 |
Long-term investments | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Derivative assets: | ||
Total assets measured at fair value | 22.5 | 74.8 |
Long-term investments | Fair Value, Measurements, Recurring | Significant Other Observable Remaining Inputs (Level 2) | ||
Derivative assets: | ||
Total assets measured at fair value | 236.5 | 913.6 |
Long-term investments | Fair Value, Measurements, Recurring | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Derivative assets: | ||
Total assets measured at fair value | 0 | 0 |
Prepaid expenses and other current assets | Fair Value, Measurements, Recurring | ||
Derivative assets: | ||
Total assets measured at fair value | 15.1 | 45.5 |
Prepaid expenses and other current assets | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Derivative assets: | ||
Total assets measured at fair value | 11.5 | 36.3 |
Prepaid expenses and other current assets | Fair Value, Measurements, Recurring | Significant Other Observable Remaining Inputs (Level 2) | ||
Derivative assets: | ||
Total assets measured at fair value | 3.6 | 9.2 |
Prepaid expenses and other current assets | Fair Value, Measurements, Recurring | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Derivative assets: | ||
Total assets measured at fair value | 0 | 0 |
Other long-term assets | Fair Value, Measurements, Recurring | ||
Derivative assets: | ||
Total assets measured at fair value | 82.1 | 86.4 |
Other long-term assets | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Derivative assets: | ||
Total assets measured at fair value | 28.1 | 33.1 |
Other long-term assets | Fair Value, Measurements, Recurring | Significant Other Observable Remaining Inputs (Level 2) | ||
Derivative assets: | ||
Total assets measured at fair value | 0 | 0 |
Other long-term assets | Fair Value, Measurements, Recurring | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Derivative assets: | ||
Total assets measured at fair value | 54 | 53.3 |
Other accrued liabilities | Fair Value, Measurements, Recurring | ||
Liabilities measured at fair value: | ||
Total liabilities measured at fair value | (9.6) | (1.8) |
Other accrued liabilities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets For Identical Assets (Level 1) | ||
Liabilities measured at fair value: | ||
Total liabilities measured at fair value | 0 | 0 |
Other accrued liabilities | Fair Value, Measurements, Recurring | Significant Other Observable Remaining Inputs (Level 2) | ||
Liabilities measured at fair value: | ||
Total liabilities measured at fair value | (9.6) | (1.8) |
Other accrued liabilities | Fair Value, Measurements, Recurring | Significant Other Unobservable Remaining Inputs (Level 3) | ||
Liabilities measured at fair value: | ||
Total liabilities measured at fair value | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Acquisition-related escrows | $ 11,600,000 | $ 11,600,000 | $ 16,800,000 | |
Indemnification trust | 25,000,000 | |||
Goodwill and intangible impairment | 0 | 0 | ||
Equity securities without readily determinable fair value, impairment | 0 | 0 | $ 0 | |
Equity securities without readily determinable fair value, upward adjustment | 0 | 0 | ||
Equity securities without readily determinable fair value, downward adjustment | 0 | 0 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial and nonfinancial liabilities, fair value disclosure | 9,600,000 | 9,600,000 | 1,800,000 | |
Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial and nonfinancial liabilities, fair value disclosure | 0 | 0 | 0 | |
Significant Other Unobservable Remaining Inputs (Level 3) | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial and nonfinancial liabilities, fair value disclosure | 0 | 0 | 0 | |
Significant Other Observable Remaining Inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term and long-term debt, fair value | 2,168,400,000 | 2,168,400,000 | 2,252,900,000 | |
Significant Other Observable Remaining Inputs (Level 2) | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Financial and nonfinancial liabilities, fair value disclosure | 9,600,000 | 9,600,000 | 1,800,000 | |
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 | ||
Junos Pulse | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Note receivable | $ 64,600,000 | $ 64,600,000 | $ 61,200,000 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Derivatives, Notional Amount [Line Items] | |||||
Notional amount of foreign currency derivatives | $ 750.9 | $ 750.9 | $ 629.4 | ||
Non-designated derivatives | |||||
Derivatives, Notional Amount [Line Items] | |||||
Notional amount of foreign currency derivatives | 141.4 | 141.4 | 108.3 | ||
Cash flow hedges | Designated as hedge | |||||
Derivatives, Notional Amount [Line Items] | |||||
Notional amount of foreign currency derivatives | 609.5 | $ 609.5 | $ 521.1 | ||
Maturities of cash flow hedge derivatives | 18 months | ||||
Losses expected to be reclassified into earnings within the next 12 months | $ 5.8 | ||||
Foreign exchange contracts | Cash flow hedges | |||||
Derivatives, Notional Amount [Line Items] | |||||
Derivative instruments, gain (loss) recognized in other comprehensive income (loss), Effective portion | (6.1) | $ 6.8 | (8.6) | $ 17.6 | |
Cost of revenues and operating expenses | Foreign exchange contracts | Cash flow hedges | |||||
Derivatives, Notional Amount [Line Items] | |||||
Gain (loss) reclassified | $ (3.1) | $ 0 | $ 5.8 | $ 0 |
Other Financial Information - I
Other Financial Information - Inventories, Net (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Inventory [Line Items] | ||
Production and service materials | $ 56.3 | $ 71.2 |
Finished goods | 19.3 | 26.6 |
Inventory | 75.6 | 97.8 |
Prepaid expenses and other current assets | ||
Schedule Of Inventory [Line Items] | ||
Inventory | 74.1 | 93.8 |
Other long-term assets | ||
Schedule Of Inventory [Line Items] | ||
Inventory | $ 1.5 | $ 4 |
Other Financial Information - W
Other Financial Information - Warranties (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Balance as of December 31, 2017 | $ 27.4 |
Provisions made during the period | 22 |
Actual costs incurred during the period | (23) |
Balance as of September 30, 2018 | $ 26.4 |
Other Financial Information - D
Other Financial Information - Deferred Revenue (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Reported as: | |||
Current | $ 814.1 | $ 804.9 | $ 1,030.3 |
Long-term | 351.2 | $ 384.4 | 509 |
Deferred revenue | 1,165.3 | 1,539.3 | |
Undelivered product commitments and other product deferrals | |||
Deferred product revenue: | |||
Deferred gross product revenue | 144.5 | 312.6 | |
Distributor inventory and other sell-through items | |||
Deferred product revenue: | |||
Deferred gross product revenue | 0 | 68.1 | |
Product | |||
Deferred product revenue: | |||
Deferred gross product revenue | 144.5 | 380.7 | |
Deferred cost of product revenue | (10.9) | (46.5) | |
Reported as: | |||
Deferred revenue | 133.6 | 334.2 | |
Service | |||
Reported as: | |||
Deferred revenue | $ 1,031.7 | $ 1,205.1 |
Other Financial Information - N
Other Financial Information - Narrative (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Deferred commission | $ 26,900,000 | $ 26,900,000 |
Amortization of deferred commission | 31,200,000 | 109,400,000 |
Impairment loss | 0 | 0 |
Product | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, liability, revenue recognized | 21,100,000 | 77,600,000 |
Service | ||
Disaggregation of Revenue [Line Items] | ||
Contract with customer, liability, revenue recognized | $ 150,000,000 | $ 581,300,000 |
Other Financial Information - R
Other Financial Information - Revenue (Details) $ in Millions | Sep. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue recognition expected by period | $ 825 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | Product | |
Disaggregation of Revenue [Line Items] | |
Revenue recognition expected by period | $ 119.5 |
Revenue recognition expected by period, satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | Service | |
Disaggregation of Revenue [Line Items] | |
Revenue recognition expected by period | $ 705.5 |
Revenue recognition expected by period, satisfaction period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue recognition expected by period | $ 314.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | Product | |
Disaggregation of Revenue [Line Items] | |
Revenue recognition expected by period | $ 22.1 |
Revenue recognition expected by period, satisfaction period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | Service | |
Disaggregation of Revenue [Line Items] | |
Revenue recognition expected by period | $ 292.2 |
Revenue recognition expected by period, satisfaction period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Disaggregation of Revenue [Line Items] | |
Revenue recognition expected by period | $ 36.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Product | |
Disaggregation of Revenue [Line Items] | |
Revenue recognition expected by period | $ 2.9 |
Revenue recognition expected by period, satisfaction period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | Service | |
Disaggregation of Revenue [Line Items] | |
Revenue recognition expected by period | $ 34 |
Revenue recognition expected by period, satisfaction period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Disaggregation of Revenue [Line Items] | |
Revenue recognition expected by period | $ 1,176.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Product | |
Disaggregation of Revenue [Line Items] | |
Revenue recognition expected by period | 144.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Service | |
Disaggregation of Revenue [Line Items] | |
Revenue recognition expected by period | $ 1,031.7 |
Other Financial Information - O
Other Financial Information - Other Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Financial Information [Abstract] | ||||
Interest income | $ 18.9 | $ 14.7 | $ 49.8 | $ 37.1 |
Interest expense | (25.8) | (25.3) | (77.7) | (75.6) |
(Loss) gain on investments, net | (1.9) | 4.7 | (1.8) | 6.7 |
Other | 0.7 | 0.8 | (1.4) | (2) |
Other expense, net | $ (8.1) | $ (5.1) | $ (31.1) | $ (33.8) |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) - 2018 Restructuring Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | $ 4.9 | $ 4.9 | |
Forecast | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | $ 5 |
Restructuring Charges - Changes
Restructuring Charges - Changes to Restructuring Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||||
Charges/ (Benefits) | $ 4.4 | $ 2 | $ 2.3 | $ 29.4 |
2017 Restructuring Plan | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring liability, beginning balance | 20 | |||
Charges/ (Benefits) | 2.3 | |||
Cash Payments | (20.6) | |||
Other | 0.1 | |||
Restructuring liability, ending balance | 1.8 | 1.8 | ||
2017 Restructuring Plan | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring liability, beginning balance | 17.7 | |||
Charges/ (Benefits) | 3.3 | |||
Cash Payments | (19.3) | |||
Other | 0.1 | |||
Restructuring liability, ending balance | 1.8 | 1.8 | ||
2017 Restructuring Plan | Contract terminations and other | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring liability, beginning balance | 2.3 | |||
Charges/ (Benefits) | (1) | |||
Cash Payments | (1.3) | |||
Other | 0 | |||
Restructuring liability, ending balance | $ 0 | $ 0 |
Equity - Cash Dividends on Sha
Equity - Cash Dividends on Shares of Common Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 26, 2018 | May 02, 2018 | Jan. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Stockholders' Equity Note [Abstract] | |||||||||||
Cash dividends declared per common stock (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.1 | $ 0.10 | $ 0.10 | $ 0.54 | $ 0.3 |
Cash dividends paid per common stock (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.10 | $ 0.10 | $ 0.10 | |||||
Common stock, dividends paid | $ 187 | $ 113.5 |
Equity - Stock Repurchase Acti
Equity - Stock Repurchase Activities (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Feb. 28, 2018 | Jan. 31, 2018 | |
Accelerated Share Repurchases [Line Items] | |||||||
Payment to repurchase stock | $ 755,500,000 | $ 395,500,000 | |||||
Average price per share (in dollars per share) | $ 25.62 | ||||||
Stock Repurchase Program 2018 | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 2,000,000,000 | ||||||
Stock repurchased and retired (in shares) | 6 | 29.3 | |||||
Average price per share (in dollars per share) | $ 25.62 | $ 25.62 | |||||
Amount repurchased | $ 0 | $ 750,000,000 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 1,300,000,000 | $ 1,300,000,000 | |||||
Accelerated Share Repurchase Program | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 750,000,000 | $ 750,000,000 | |||||
Payment to repurchase stock | $ 750,000,000 | ||||||
Stock repurchased and retired (in shares) | 6 | 23.3 | 29.3 | ||||
Amount repurchased | $ 750,000,000 | ||||||
Stock Repurchase Program 2014 | |||||||
Accelerated Share Repurchases [Line Items] | |||||||
Stock repurchased and retired (in shares) | 5 | 13.5 | |||||
Average price per share (in dollars per share) | $ 28.16 | $ 28.85 | |||||
Amount repurchased | $ 140,000,000 | $ 390,000,000 |
Equity - Components of Accumul
Equity - Components of Accumulated Other Comprehensive (Loss) Income, Net of Tax (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Accumulated Other Comprehensive Loss | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of December 31, 2017 | $ (5.4) |
Other comprehensive loss before reclassifications | (20.2) |
Amount reclassified from accumulated other comprehensive loss | (4.6) |
Other comprehensive income (loss), net | (24.8) |
Reclassification of tax effects upon adoption of ASU No. 2018-02 | 5.7 |
Balance as of September 30, 2018 | (24.5) |
Unrealized Gains on Available-for- Sale Debt Securities | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of December 31, 2017 | 19 |
Other comprehensive loss before reclassifications | (0.6) |
Amount reclassified from accumulated other comprehensive loss | 0.9 |
Other comprehensive income (loss), net | 0.3 |
Reclassification of tax effects upon adoption of ASU No. 2018-02 | 5 |
Balance as of September 30, 2018 | 24.3 |
Unrealized (Losses) Gains on Cash Flow Hedges | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of December 31, 2017 | 6 |
Other comprehensive loss before reclassifications | (5.9) |
Amount reclassified from accumulated other comprehensive loss | (5.5) |
Other comprehensive income (loss), net | (11.4) |
Reclassification of tax effects upon adoption of ASU No. 2018-02 | 0.7 |
Balance as of September 30, 2018 | (4.7) |
Foreign Currency Translation Adjustments | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of December 31, 2017 | (30.4) |
Other comprehensive loss before reclassifications | (13.7) |
Amount reclassified from accumulated other comprehensive loss | 0 |
Other comprehensive income (loss), net | (13.7) |
Reclassification of tax effects upon adoption of ASU No. 2018-02 | 0 |
Balance as of September 30, 2018 | $ (44.1) |
Employee Benefit Plans - Equity
Employee Benefit Plans - Equity Incentive Plan and Stock Option Activity (Details) $ / shares in Units, shares in Millions, $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Number of Shares | |
Balance at beginning of period (in shares) | 0.9 |
Exercised (in shares) | (0.1) |
Expired/canceled (in shares) | (0.7) |
Balance at end of period (in shares) | 0.1 |
Weighted Average Exercise Price per Share | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 34.41 |
Exercised (in dollars per share) | $ / shares | 4.20 |
Expired/canceled (in dollars per share) | $ / shares | 40.34 |
Balance at end of period (in dollars per share) | $ / shares | $ 19.80 |
Weighted average remaining contractual term at end of period | 1 year 10 months 25 days |
Aggregate intrinsic value at end of period | $ | $ 1.2 |
Vested and expected-to-vest options at end of period (in shares) | 0.1 |
Vested and expected-to-vest options, weighted average exercise price at end of period (in dollars per share) | $ / shares | $ 19.80 |
Vested and expected-to-vest options, weighted average remaining contractual term at end of period | 1 year 10 months 25 days |
Vested or expected-to-vest options, aggregate intrinsic value at end of period | $ | $ 1.2 |
Exercisable options at end of period (in shares) | 0.1 |
Exercisable options, weighted average exercise price at end of period (in dollars per share) | $ / shares | $ 22.24 |
Exercisable options, weighted average remaining contractual term at end of period | 1 year |
Exercisable options, aggregate intrinsic value at end of period | $ | $ 0.8 |
Equity incentive plan 2015 | |
Share-Based Compensation Plans | |
Number of shares available for future issuance | 23.3 |
Employee stock purchase plan 2008 | |
Share-Based Compensation Plans | |
Number of shares available for future issuance | 8.7 |
Employee Benefit Plans - Equi_2
Employee Benefit Plans - Equity Instruments Other Than Options (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Jul. 26, 2018 | May 02, 2018 | Jan. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Weighted Average Grant-Date Fair Value per Share | |||||||||||
Cash dividends declared per common stock (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.1 | $ 0.10 | $ 0.10 | $ 0.54 | $ 0.3 |
RSUs, RSAs, and PSAs | |||||||||||
Number of Shares | |||||||||||
Balance at beginning of period (in shares) | 19.5 | 19.5 | |||||||||
Balance at end of period (in shares) | 18 | 18 | |||||||||
Weighted Average Grant-Date Fair Value per Share | |||||||||||
Balance at beginning of period (in dollars per share) | $ 25.39 | $ 25.39 | |||||||||
Balance at end of period (in dollars per share) | $ 25.37 | $ 25.37 | |||||||||
Weighted average remaining contractual term | 1 year 1 month 6 days | ||||||||||
Aggregate intrinsic value | $ 538.8 | $ 538.8 | |||||||||
Restricted Stock Units (RSUs) | |||||||||||
Number of Shares | |||||||||||
Granted (in shares) | 6.5 | ||||||||||
Vested (in shares) | (5.4) | ||||||||||
Canceled (in shares) | (1.5) | ||||||||||
Weighted Average Grant-Date Fair Value per Share | |||||||||||
Granted (in dollars per share) | $ 25.36 | ||||||||||
Vested (in dollars per share) | 25.43 | ||||||||||
Canceled (in dollars per share) | $ 26.34 | ||||||||||
Performance goal, number of shares (in shares) | 0.1 | 0.1 | |||||||||
Performance shares (PSAs) | |||||||||||
Number of Shares | |||||||||||
Granted (in shares) | 0.7 | ||||||||||
Vested (in shares) | (1.1) | ||||||||||
Canceled (in shares) | (0.7) | ||||||||||
Weighted Average Grant-Date Fair Value per Share | |||||||||||
Granted (in dollars per share) | $ 24.43 | ||||||||||
Vested (in dollars per share) | 24.14 | ||||||||||
Canceled (in dollars per share) | $ 24.39 | ||||||||||
Performance goal, number of shares (in shares) | 0.4 | 0.4 | |||||||||
Number of shares modified | 2 | ||||||||||
Incremental compensation cost resulting from the modifications | $ 6.3 | ||||||||||
Minimum | Restricted Stock Units (RSUs) | |||||||||||
Weighted Average Grant-Date Fair Value per Share | |||||||||||
Performance goal, number of shares (in shares) | 0 | 0 | |||||||||
Minimum | Performance shares (PSAs) | |||||||||||
Weighted Average Grant-Date Fair Value per Share | |||||||||||
Performance goal, number of shares (in shares) | 0 | 0 | |||||||||
Maximum | Restricted Stock Units (RSUs) | |||||||||||
Weighted Average Grant-Date Fair Value per Share | |||||||||||
Performance goal, number of shares (in shares) | 0.3 | 0.3 | |||||||||
Maximum | Performance shares (PSAs) | |||||||||||
Weighted Average Grant-Date Fair Value per Share | |||||||||||
Performance goal, number of shares (in shares) | 0.7 | 0.7 |
Employee Benefit Plans - Employ
Employee Benefit Plans - Employee Stock Purchase Plan (Details) shares in Millions | Nov. 06, 2017period | Sep. 30, 2018$ / sharesshares | Sep. 30, 2017$ / sharesshares | Sep. 30, 2018$ / sharesshares | Sep. 30, 2017$ / sharesshares |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
ESPP offering period duration | 24 months | ||||
ESPP, number of purchase period | period | 4 | ||||
ESPP. purchase period | 6 months | ||||
ESPP, purchase price of common stock | 85.00% | ||||
Employee stock purchase plan 2008 | |||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||||
Shares purchased (in shares) | shares | 1.2 | 1.2 | 2.5 | 2.7 | |
Average exercise price per share (in dollars per share) | $ / shares | $ 22.39 | $ 22.79 | $ 22.31 | $ 20.83 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | $ 53.2 | $ 45 | $ 180.2 | $ 151.1 |
Stock options | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 0.1 | 0.2 | 0.3 | 0.5 |
RSUs, RSAs, and PSAs | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 48.2 | 41 | 165.8 | 138.9 |
ESPP | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 4.9 | 3.8 | 14.1 | 11.7 |
Cost of revenues - Product | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 1.5 | 1.5 | 5.1 | 3.8 |
Cost of revenues - Service | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 4.5 | 3.9 | 14.2 | 13.5 |
Research and development | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 28.1 | 18.5 | 101.8 | 67.4 |
Sales and marketing | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | 12.9 | 13.7 | 40.4 | 45.3 |
General and administrative | ||||
Stock Based Compensation Expense Recorded in Cost and Expense Categories | ||||
Share-based compensation expense | $ 6.2 | $ 7.4 | $ 18.7 | $ 21.1 |
Employee Benefit Plans - Shar_2
Employee Benefit Plans - Share Based Compensation by Share Based Payment Award Types (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unrecognized compensation cost | $ 320.2 |
Unrecognized compensation, weighted average recognition period | 1 year 7 months 6 days |
Segments - Revenue by Product (
Segments - Revenue by Product (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Total net revenues | $ 1,179.8 | $ 1,257.8 | $ 3,466.5 | $ 3,787.7 |
Product | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 794.7 | 869.7 | 2,330.4 | 2,615.8 |
Routing | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 496.4 | 585.8 | 1,395.1 | 1,679.9 |
Switching | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 221.1 | 212.6 | 705.9 | 730.2 |
Security | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 77.2 | 71.3 | 229.4 | 205.7 |
Service | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 385.1 | $ 388.1 | $ 1,136.1 | $ 1,171.9 |
Segments - Revenues by Customer
Segments - Revenues by Customer Vertical (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 1,179.8 | $ 1,257.8 | $ 3,466.5 | $ 3,787.7 |
Cloud | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 250 | 344.9 | 798.1 | 1,056.1 |
Service Provider | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 543.6 | 576.9 | 1,546.8 | 1,707.8 |
Enterprise | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 386.2 | $ 336 | $ 1,121.6 | $ 1,023.8 |
Segments - Geographic (Details)
Segments - Geographic (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 1,179.8 | $ 1,257.8 | $ 3,466.5 | $ 3,787.7 |
Total Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 643.1 | 729.2 | 1,906.4 | 2,241.6 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 597.1 | 668.8 | 1,754.2 | 2,076 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 46 | 60.4 | 152.2 | 165.6 |
Europe, Middle East, and Africa | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | 329.9 | 298.6 | 946.8 | 871.3 |
Asia Pacific | ||||
Segment Reporting Information [Line Items] | ||||
Total net revenues | $ 206.8 | $ 230 | $ 613.3 | $ 674.8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 152 | $ 225.8 | $ 344.3 | $ 611.6 |
Income tax (benefit) provision | $ (71.8) | $ 60.1 | $ (30.4) | $ 157.3 |
Effective tax (benefit) rate | (47.20%) | 26.60% | (8.80%) | 25.70% |
Federal statutory rate | 21.00% | 21.00% | ||
Recognition of previously unrecognized tax benefits | $ 67.6 | $ 67.6 | ||
Unrecognized tax benefits, interest | 8.4 | 8.4 | ||
Reduction of expected tax liabilities, change in accounting method for tax recognition of deferred product revenue | 33.2 | 33.2 | ||
Unrecognized tax benefits | 205 | 205 | ||
Unrecognized tax benefits, if recognized would affect the effective tax rate | 183.3 | 183.3 | ||
Unrecognized tax benefits could decrease up to | $ 7.9 | $ 7.9 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Net income | $ 223.8 | $ 165.7 | $ 374.7 | $ 454.3 |
Denominator: | ||||
Weighted-average shares used to compute basic net income per share (in shares) | 346.2 | 378.3 | 350.1 | 380 |
Dilutive effect of employee stock awards (in shares) | 4.3 | 4.4 | 5.1 | 6.5 |
Weighted-average shares used to compute diluted net income per share (in shares) | 350.5 | 382.7 | 355.2 | 386.5 |
Net income per share | ||||
Basic (in dollars per share) | $ 0.65 | $ 0.44 | $ 1.07 | $ 1.20 |
Diluted, (in dollars per share) | $ 0.64 | $ 0.43 | $ 1.05 | $ 1.18 |
Anti-dilutive shares (in shares) | 4.2 | 1 | 5 | 1.2 |
Commitments and Contingencies -
Commitments and Contingencies - Commitments (Details) $ in Millions | Sep. 30, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligation | $ 610.9 |
Excess purchase commitments and obsolete materials liability | $ 23.6 |
Commitments and Contingencies_2
Commitments and Contingencies - Guarantees (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Indemnification Agreement | ||
Guarantor Obligations [Line Items] | ||
Guarantor obligations, current carrying value | $ 12 | $ 20.4 |
Commitments and Contingencies_3
Commitments and Contingencies - Investigations (Details) $ in Millions | Sep. 30, 2018USD ($) |
Investigations by U.S. Securities and Exchange Commission (SEC) and U.S. Department of Justice (DOJ) | Pending Litigation | |
Loss Contingencies [Line Items] | |
Estimated legal reserve | $ 12 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Oct. 23, 2018 | Jul. 26, 2018 | May 02, 2018 | Jan. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Subsequent Event [Line Items] | ||||||||||||
Cash dividends declared per common stock (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.1 | $ 0.10 | $ 0.10 | $ 0.54 | $ 0.3 | |
Subsequent Event | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Cash dividends declared per common stock (in dollars per share) | $ 0.18 |