Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 29, 2013 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'FORTINET INC | ' |
Entity Central Index Key | '0001262039 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 163,460,178 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $144,546 | $122,975 |
Short-term investments | 368,472 | 290,719 |
Accounts receivable—Net | 107,802 | 107,642 |
Inventory | 46,876 | 21,060 |
Prepaid expenses and other current assets | 38,271 | 26,878 |
Total current assets | 705,967 | 569,274 |
PROPERTY AND EQUIPMENT—Net | 28,380 | 25,638 |
LONG-TERM INVESTMENTS | 327,987 | 325,892 |
GOODWILL AND OTHER INTANGIBLE ASSETS—Net | 10,612 | 2,117 |
DEFERRED TAX ASSETS—Non-current | 51,996 | 48,525 |
OTHER ASSETS | 3,200 | 4,051 |
TOTAL ASSETS | 1,128,142 | 975,497 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 33,257 | 20,816 |
Accrued liabilities | 32,317 | 22,263 |
Accrued payroll and compensation | 30,450 | 28,957 |
Deferred revenue | 271,302 | 247,268 |
Total current liabilities | 367,326 | 319,304 |
DEFERRED REVENUE—Non-current | 128,871 | 115,917 |
INCOME TAXES PAYABLE—Non-current | 30,568 | 28,778 |
OTHER LIABILITIES | 1,424 | 564 |
Total liabilities | 528,189 | 464,563 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Common stock, $0.001 par value — 300,000 shares authorized; 163,329 and 161,757 shares issued and 163,329 and 160,348 shares outstanding as of September 30, 2013 and December 31, 2012, respectively | 163 | 162 |
Additional paid-in capital | 455,279 | 400,075 |
Treasury stock | 0 | -2,995 |
Accumulated other comprehensive income | 1,653 | 3,091 |
Retained earnings | 142,858 | 110,601 |
Total stockholders' equity | 599,953 | 510,934 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,128,142 | $975,497 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parenthetical (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 300,000,000 | 300,000,000 |
Common Stock, shares issued | 163,329,000 | 161,757,000 |
Common Stock, shares outstanding | 163,329,000 | 160,348,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
REVENUE: | ' | ' | ' | ' |
Product | $69,687 | $63,027 | $194,162 | $177,923 |
Services | 83,883 | 69,782 | 239,447 | 197,332 |
Ratable and other revenue | 1,129 | 3,459 | 4,338 | 7,222 |
Total revenue | 154,699 | 136,268 | 437,947 | 382,477 |
COST OF REVENUE: | ' | ' | ' | ' |
Product | 27,126 | 23,995 | 77,032 | 66,997 |
Services | 16,374 | 13,166 | 48,207 | 36,846 |
Ratable and other revenue | 430 | 647 | 1,527 | 2,135 |
Total cost of revenue | 43,930 | 37,808 | 126,766 | 105,978 |
GROSS PROFIT: | ' | ' | ' | ' |
Product | 42,561 | 39,032 | 117,130 | 110,926 |
Services | 67,509 | 56,616 | 191,240 | 160,486 |
Ratable and other revenue | 699 | 2,812 | 2,811 | 5,087 |
Total gross profit | 110,769 | 98,460 | 311,181 | 276,499 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Research and development | 26,421 | 20,498 | 74,913 | 60,553 |
Sales and marketing | 56,687 | 44,743 | 162,660 | 131,038 |
General and administrative | 9,382 | 7,449 | 26,161 | 19,473 |
Total operating expenses | 92,490 | 72,690 | 263,734 | 211,064 |
OPERATING INCOME | 18,279 | 25,770 | 47,447 | 65,435 |
INTEREST INCOME | 1,282 | 1,318 | 3,988 | 3,606 |
OTHER EXPENSE—Net | -1,151 | -317 | -1,036 | -315 |
INCOME BEFORE INCOME TAXES | 18,410 | 26,771 | 50,399 | 68,726 |
PROVISION FOR INCOME TAXES | 7,381 | 9,565 | 18,142 | 23,397 |
NET INCOME | $11,029 | $17,206 | $32,257 | $45,329 |
Net income per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.07 | $0.11 | $0.20 | $0.29 |
Diluted (in dollars per share) | $0.07 | $0.10 | $0.19 | $0.27 |
Weighted-average shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 162,906 | 158,751 | 162,150 | 157,416 |
Diluted (in shares) | 168,666 | 166,791 | 168,054 | 166,127 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $11,029 | $17,206 | $32,257 | $45,329 |
Other comprehensive income (loss), net of reclassification adjustments: | ' | ' | ' | ' |
Foreign currency translation gains (losses) | 912 | 1,092 | -901 | 867 |
Unrealized gains (losses) on investments | 600 | 1,968 | -826 | 3,441 |
Unrealized losses on cash flow hedges | 0 | -19 | 0 | 0 |
Tax (provision) benefit related to items of other comprehensive income or loss | -209 | -618 | 289 | -1,133 |
Other comprehensive income (loss), net of tax | 1,303 | 2,423 | -1,438 | 3,175 |
Comprehensive income | $12,332 | $19,629 | $30,819 | $48,504 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $32,257 | $45,329 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 11,511 | 8,076 |
Amortization of investment premiums | 8,900 | 10,002 |
Stock-based compensation expense | 31,784 | 23,928 |
Excess tax benefit from employee stock option plans | -2,504 | -9,611 |
Other non-cash items, net | 520 | 893 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable—net | 589 | 5,680 |
Inventory | -31,344 | -14,977 |
Prepaid expenses and other current assets | 219 | -71 |
Other assets | -13,928 | -2,630 |
Accounts payable | 11,054 | 3,049 |
Accrued payroll and compensation | 1,400 | 1,563 |
Accrued and other liabilities | 2,631 | 1,301 |
Deferred revenue | 36,425 | 45,192 |
Income taxes payable | 11,202 | 15,849 |
Net cash provided by operating activities | 100,716 | 133,573 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of investments | -419,124 | -523,389 |
Sales of investments | 25,488 | 25,768 |
Maturities of investments | 303,852 | 343,174 |
Purchases of property and equipment | -6,729 | -20,283 |
Payments made in connection with acquisitions, net of cash acquired | -7,635 | -749 |
Net cash used in investing activities | -104,148 | -175,479 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from issuance of common stock | 24,470 | 36,006 |
Taxes paid related to net share settlement of equity awards | -966 | 0 |
Excess tax benefit from employee stock option plans | 2,504 | 9,611 |
Net cash provided by financing activities | 26,008 | 45,617 |
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | -1,005 | -235 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 21,571 | 3,476 |
CASH AND CASH EQUIVALENTS—Beginning of year | 122,975 | 71,990 |
CASH AND CASH EQUIVALENTS—End of year | 144,546 | 75,466 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ' | ' |
Cash paid for income taxes | 19,721 | 10,335 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Purchase of property and equipment not yet paid | 1,349 | 722 |
Liability incurred in connection with business acquisition | $100 | $201 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation and Preparation | |
The unaudited condensed consolidated financial statements of Fortinet, Inc. and its wholly owned subsidiaries (collectively, “we,” “us,” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the fiscal year ended December 31, 2012, contained in our Annual Report on Form 10-K (“Form 10-K”) filed with the SEC on February 27, 2013. In the opinion of management, all adjustments, which only includes normal recurring adjustments, considered necessary for a fair presentation have been included. All intercompany balances, transactions and cash flows have been eliminated. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the operating results for any subsequent quarter, for the full year or for any future periods. The condensed consolidated balance sheets as of December 31, 2012 are derived from the audited consolidated financial statements for the year ended December 31, 2012. | |
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. | |
During the three and nine months ended September 30, 2013, we recorded a non-recurring out-of-period adjustment of $3.0 million to correct the presentation on our condensed consolidated balance sheets relating to our repurchase of 1,409,264 shares during the fiscal year ended December 31, 2009. This reclassification adjustment resulted in a decrease to the outstanding treasury stock balance and a corresponding decrease to additional paid-in capital. We believe the impact of the adjustment is not material to the current or prior fiscal periods. The shares that we repurchased in 2009 were retired immediately after repurchase. There was no outstanding treasury stock balance at September 30, 2013. | |
There have been no material changes in our significant accounting policies as of and for the three and nine months ended September 30, 2013, as compared to the significant accounting policies described in the Form 10-K, except for the inclusion of policies related to goodwill and other indefinite-lived assets, long-term investments, and stock-based compensation expense pertaining to performance stock units (“PSUs”). | |
Goodwill and other indefinite-lived intangible assets | |
Goodwill represents the excess of purchase consideration over the estimated fair value of net assets of businesses acquired in a business combination. Goodwill and other indefinite-lived intangible assets such as in-process research and development acquired in a business combination are not amortized, but instead tested for impairment at least annually during the fourth quarter. We perform our annual goodwill impairment analysis at the reporting unit level. As of September 30, 2013, we had one reporting unit. | |
In reviewing goodwill for impairment we have the option to (i) assess qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount or (ii) bypass the qualitative assessment and proceed directly to a quantitative assessment. If we opt to perform a qualitative assessment, the factors we may review include, but are not limited to (a) macroeconomic conditions; (b) industry and market considerations; (c) cost factors; (d) overall financial performance; (e) other relevant entity-specific events such as changes in management, strategy, customers, or litigation; (f) events affecting the reporting unit; or (g) or sustained decrease in share price. If we believe, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. A quantitative assessment utilizes a two-step process. In the first step, the fair value of the reporting unit is determined, and is compared against its carrying amount, including goodwill. We consider a combination of an income-based approach using projected discounted cash flows and a market-based approach using multiples of comparable companies to determine the fair value. The fair value of the reporting unit is estimated using significant judgment based on a combination of the income and the market approaches. Under the income approach, we estimate fair value of the reporting unit based on the present value of forecasted future cash flows that the reporting unit is expected to generate over its remaining life. Under the market approach, we estimate fair value of our reporting unit based on an analysis that compares the value of the reporting unit to values of other companies in similar lines of business. If the fair value of the reporting unit does not exceed its carrying value, then we perform the second step to measure the amount of impairment loss. The amount of impairment is determined by comparing the implied fair value of reporting unit goodwill to the carrying value of the goodwill. When the carrying value of the reporting unit's goodwill exceeds its implied fair value, we record an impairment loss equal to the difference. | |
Determining the fair value of the reporting unit requires us to make judgments and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, operating trends, risk-adjusted discount rates, future economic and market conditions and determination of appropriate market comparables. We base our fair value estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. We may also test goodwill and other intangible assets for impairment between annual tests in the presence of impairment indicators. Acquired in-process research and development assets are classified as indefinite-lived intangible assets until the successful completion or abandonment of the associated research and development efforts. Upon successful completion of the associated research and development efforts, the useful life of the asset is determined and the asset is amortized over its useful life. If the associated research and development efforts are abandoned, an impairment loss is recognized for the carrying value of the related asset. | |
Long-term investments | |
Investments in privately held companies where we own less than 20% of the voting stock and have no indicators of significant influence over operating and financial policies of those companies are included in Long-term investments in the consolidated balance sheets and are accounted for under the cost method. For these non-quoted investments, we regularly review the assumptions underlying the operating performance and cash flow forecasts based on information provided by these privately held companies. If it is determined that an other-than-temporary decline exists in an equity security, we write down the investment to its fair value and record the related impairment as an investment loss in our consolidated statements of operations. As of September 30, 2013, we only have one investment of $2.0 million in a privately-held company accounted for under the cost method. | |
Stock-Based Compensation Expense - Performance Stock Units | |
PSUs are restricted stock units (“RSUs”) that contain both service-based and market-based vesting conditions. PSUs vest over a specified service period upon the satisfaction of certain market-based vesting conditions, and settle into shares of our common stock upon vesting over a two- or three-year period. The fair value of a PSU is calculated using the Monte Carlo simulation model on the grant date and is based on the market price of our common stock on the grant date modified to reflect the impact of the market-based vesting condition, including the estimated payout level based on that condition. We do not adjust compensation cost for subsequent changes in the expected outcome of the market-based vesting conditions. | |
Certain prior period amounts have been combined on the condensed consolidated balance sheets and statements of cash flows to conform to the current period presentation. | |
Recent Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220)—Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. We adopted ASU 2013-02 on January 1, 2013, and presented the effects within Note 16, Accumulated Other Comprehensive Income. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740)-Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. This new standard requires the netting of unrecognized tax benefits (“UTBs”) against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. ASU 2013-11 will be effective for us beginning in the first quarter of fiscal 2014. Early adoption is permitted. Since ASU 2013-11 only impacts financial statement disclosure requirements for unrecognized tax benefits, we do not expect its adoption to have an impact on our financial position or results of operations. |
Investment_in_a_PrivatelyHeld_
Investment in a Privately-Held Company | 9 Months Ended |
Sep. 30, 2013 | |
Investments, All Other Investments [Abstract] | ' |
INVESTMENT IN A PRIVATELY-HELD COMPANY | ' |
INVESTMENT IN PRIVATELY-HELD COMPANY | |
In August 2013, we invested $2.0 million in equity securities in HyTrust, a privately-held company. This investment is accounted for as a cost-basis investment, as we own less than 20% of the voting securities and do not have the ability to exercise significant influence over operating and financial policies of the entity. As of September 30, 2013, no events have occurred that would adversely affect the carrying value of this investment. We did not record any impairment charges for this investment during the three and nine months ended September 30, 2013. |
Financial_Instruments_and_Fair
Financial Instruments and Fair Value | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Financial Instruments and Fair Value [Abstract] | ' | ||||||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE | ' | ||||||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE | |||||||||||||||||||
The following table summarizes our investments ($ amounts in 000’s): | |||||||||||||||||||
September 30, 2013 | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||
U.S. government and agency securities | 2,000 | — | — | 2,000 | |||||||||||||||
Corporate debt securities | 566,962 | 1,336 | (441 | ) | 567,857 | ||||||||||||||
Commercial paper | 81,955 | 13 | (6 | ) | 81,962 | ||||||||||||||
Municipal bonds | 34,554 | 44 | (14 | ) | 34,584 | ||||||||||||||
Certificates of deposit and term deposits | 8,053 | 3 | — | 8,056 | |||||||||||||||
Total available-for-sale securities | 693,524 | 1,396 | (461 | ) | 694,459 | ||||||||||||||
December 31, 2012 | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||
Corporate debt securities | 529,738 | 1,814 | (161 | ) | 531,391 | ||||||||||||||
Commercial paper | 39,229 | 22 | (6 | ) | 39,245 | ||||||||||||||
Municipal bonds | 36,787 | 83 | — | 36,870 | |||||||||||||||
Certificates of deposit and term deposits | 9,099 | 6 | — | 9,105 | |||||||||||||||
Total available-for-sale securities | 614,853 | 1,925 | (167 | ) | 616,611 | ||||||||||||||
The following table shows the gross unrealized losses and the related fair values of our investments that have been in a continuous unrealized loss position, as of September 30, 2013 ($ amounts in 000’s): | |||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Corporate debt securities | 232,721 | (434 | ) | 5,309 | (7 | ) | 238,030 | (441 | ) | ||||||||||
Commercial paper | 20,076 | (6 | ) | — | — | 20,076 | (6 | ) | |||||||||||
Municipal bonds | 12,941 | (14 | ) | — | — | 12,941 | (14 | ) | |||||||||||
Total available-for-sale securities | 265,738 | (454 | ) | 5,309 | (7 | ) | 271,047 | (461 | ) | ||||||||||
The following table shows the gross unrealized losses and the related fair values of our investments that have been in a continuous unrealized loss position, as of December 31, 2012 ($ amounts in 000’s): | |||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Corporate debt securities | 133,006 | (156 | ) | 5,010 | (5 | ) | 138,016 | (161 | ) | ||||||||||
Commercial paper | 8,464 | (6 | ) | — | — | 8,464 | (6 | ) | |||||||||||
Total available-for-sale securities | 141,470 | (162 | ) | 5,010 | (5 | ) | 146,480 | (167 | ) | ||||||||||
The contractual maturities of our investments were as follows ($ amounts in 000’s) | |||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Due within one year | 368,472 | 290,719 | |||||||||||||||||
Due within one to three years | 325,987 | 325,892 | |||||||||||||||||
Total available-for-sale securities | 694,459 | 616,611 | |||||||||||||||||
Realized gains or losses from the sale of available-for-sale securities were not significant for any of the periods presented. | |||||||||||||||||||
The following table presents the fair value of our financial assets measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 ($ amounts in 000’s): | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Aggregate | Quoted | Significant | Aggregate | Quoted | Significant | ||||||||||||||
Fair | Prices in | Other | Fair | Prices in | Other | ||||||||||||||
Value | Active | Observable | Value | Active | Observable | ||||||||||||||
Markets For | Remaining | Markets For | Remaining | ||||||||||||||||
Identical | Inputs | Identical | Inputs | ||||||||||||||||
Assets | Assets | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 1) | (Level 2) | ||||||||||||||||
U.S. government and agency securities | 2,000 | — | 2,000 | — | — | — | |||||||||||||
Corporate debt securities | 574,578 | — | 574,578 | 531,391 | — | 531,391 | |||||||||||||
Commercial paper | 83,262 | — | 83,262 | 41,994 | — | 41,994 | |||||||||||||
Municipal bonds | 34,584 | — | 34,584 | 36,870 | — | 36,870 | |||||||||||||
Certificates of deposit and term deposits | 8,056 | — | 8,056 | 9,105 | — | 9,105 | |||||||||||||
Money market funds | 45,897 | 45,897 | — | 39,871 | 39,871 | — | |||||||||||||
748,377 | 45,897 | 702,480 | 659,231 | 39,871 | 619,360 | ||||||||||||||
Reported as: | |||||||||||||||||||
Cash equivalents | 53,918 | 42,620 | |||||||||||||||||
Short-term investments | 368,472 | 290,719 | |||||||||||||||||
Long-term investments | 325,987 | 325,892 | |||||||||||||||||
Total | 748,377 | 659,231 | |||||||||||||||||
There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the three and nine months ended September 30, 2013. |
Inventory
Inventory | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Inventory Disclosure [Abstract] | ' | |||||
INVENTORY | ' | |||||
INVENTORY | ||||||
Inventory consisted of the following ($ amounts in 000’s): | ||||||
September 30, | December 31, | |||||
2013 | 2012 | |||||
Raw materials | 7,765 | 4,958 | ||||
Finished goods | 39,111 | 16,102 | ||||
Inventory | 46,876 | 21,060 | ||||
Property_and_EquipmentNet
Property and Equipment—Net | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Property, Plant and Equipment [Abstract] | ' | |||||
PROPERTY AND EQUIPMENT—NET | ' | |||||
PROPERTY AND EQUIPMENT—Net | ||||||
Property and equipment consisted of the following ($ amounts in 000’s): | ||||||
September 30, | December 31, | |||||
2013 | 2012 | |||||
Land | 13,895 | 13,895 | ||||
Building and building improvements | 610 | 610 | ||||
Evaluation units | 21,986 | 18,322 | ||||
Computer equipment and software | 22,785 | 17,176 | ||||
Furniture and fixtures | 1,709 | 1,501 | ||||
Construction-in-process | 1,295 | — | ||||
Leasehold improvements and tooling | 5,532 | 5,354 | ||||
Total property and equipment | 67,812 | 56,858 | ||||
Less: accumulated depreciation | (39,432 | ) | (31,220 | ) | ||
Property and equipment—net | 28,380 | 25,638 | ||||
Depreciation expense was $3.8 million and $2.7 million for the three months ended September 30, 2013 and September 30, 2012, respectively. Depreciation expense was $10.4 million and $7.2 million for the nine months ended September 30, 2013 and September 30, 2012, respectively. |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
NET INCOME PER SHARE | ' | |||||||||||
NET INCOME PER SHARE | ||||||||||||
Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding, plus the dilutive effects of stock options, RSUs, and the employee stock purchase plan (“ESPP”). Potentially dilutive shares of common stock are determined by applying the treasury stock method. | ||||||||||||
A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows ($ and share amounts in 000’s, except per share amounts): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Numerator: | ||||||||||||
Net income | 11,029 | 17,206 | 32,257 | 45,329 | ||||||||
Denominator: | ||||||||||||
Basic shares: | ||||||||||||
Weighted-average common stock outstanding-basic | 162,906 | 158,751 | 162,150 | 157,416 | ||||||||
Diluted shares: | ||||||||||||
Weighted-average common stock outstanding-basic | 162,906 | 158,751 | 162,150 | 157,416 | ||||||||
Effect of potentially dilutive securities: | ||||||||||||
Stock options | 5,525 | 8,019 | 5,844 | 8,694 | ||||||||
RSUs | 213 | — | 50 | — | ||||||||
ESPP | 22 | 21 | 10 | 17 | ||||||||
Weighted-average shares used to compute diluted net income per share | 168,666 | 166,791 | 168,054 | 166,127 | ||||||||
Net income per share: | ||||||||||||
Basic | 0.07 | 0.11 | 0.2 | 0.29 | ||||||||
Diluted | 0.07 | 0.1 | 0.19 | 0.27 | ||||||||
The following weighted-average shares of common stock were excluded from the computation of diluted net income per share for the periods presented, as their effect would have been antidilutive (in 000’s): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Stock options | 6,640 | 5,686 | 7,364 | 6,847 | ||||||||
RSUs | 1,416 | 388 | 2,383 | 130 | ||||||||
ESPP | 407 | 303 | 399 | 300 | ||||||||
8,463 | 6,377 | 10,146 | 7,277 | |||||||||
Deferred_Revenue
Deferred Revenue | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Deferred Revenue Disclosure [Abstract] | ' | |||||
DEFERRED REVENUE | ' | |||||
DEFERRED REVENUE | ||||||
Deferred revenue consisted of the following ($ amounts in 000’s): | ||||||
September 30, | December 31, | |||||
2013 | 2012 | |||||
Product | 5,114 | 5,411 | ||||
Services | 389,571 | 348,548 | ||||
Ratable and other revenue | 5,488 | 9,226 | ||||
Total deferred revenue | 400,173 | 363,185 | ||||
Reported As: | ||||||
Current | 271,302 | 247,268 | ||||
Non-current | 128,871 | 115,917 | ||||
Total deferred revenue | 400,173 | 363,185 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||
COMMITMENTS AND CONTINGENCIES | ' | |||||
COMMITMENTS AND CONTINGENCIES | ||||||
Leases—We lease certain facilities under various non-cancelable operating leases, which expire through 2020. Rent expense was $2.4 million and $2.1 million for the three months ended September 30, 2013 and September 30, 2012, respectively. Rent expense was $7.1 million and $6.5 million for the nine months ended September 30, 2013 and September 30, 2012, respectively. Rent expense is recognized using the straight-line method over the term of the lease. The aggregate future non-cancelable minimum rental payments on operating leases as of September 30, 2013 are as follows ($ amounts in 000’s): | ||||||
Rental | ||||||
Payment | ||||||
Fiscal Years: | ||||||
2013 (remainder) | 2,675 | |||||
2014 | 7,715 | |||||
2015 | 5,342 | |||||
2016 | 4,279 | |||||
2017 | 3,738 | |||||
Thereafter | 7,779 | |||||
Total | 31,528 | |||||
Contract Manufacturer and Other Commitments—Our independent contract manufacturers procure components and build our products based on our forecasts. These forecasts are based on estimates of future demand for our products, which are in turn based on historical trends and an analysis from our sales and marketing organizations, adjusted for overall market conditions. In order to reduce manufacturing lead times and plan for adequate component supply, we issue non-cancelable purchase orders to some of our independent contract manufacturers. As of September 30, 2013, we had $46.6 million of open purchase orders with our independent contract manufacturers that may not be cancelable. | ||||||
In addition to commitments with contract manufacturers, we have open purchase orders and contractual obligations in the ordinary course of business for which we have not received goods or services. As of September 30, 2013, we had $10.2 million in other purchase commitments. | ||||||
Warranties—We generally provide a 1-year warranty on hardware products and a 90-day warranty on software. | ||||||
Accrued warranty activities are summarized as follows ($ amounts in 000’s): | ||||||
For The Nine Months Ended | ||||||
September 30, | September 30, | |||||
2013 | 2012 | |||||
Accrued warranty balance—beginning of the period | 2,309 | 2,582 | ||||
Warranty costs incurred | (2,670 | ) | (1,843 | ) | ||
Provision for warranty, including warranty assumed from Xtera | 3,134 | 1,604 | ||||
Changes in prior period estimates | 274 | (307 | ) | |||
Accrued warranty balance—end of the period | 3,047 | 2,036 | ||||
Litigation—We are involved in disputes, litigation, and other legal actions, including, but not limited to, the matters described below. We are defending these litigation matters, and while there can be no assurances and the outcome of these matters is currently not determinable, we currently believe that there are no existing claims or proceedings that are likely to have a material adverse effect on our financial position. There are many uncertainties associated with any litigation and these actions or other third-party claims against us may cause us to incur costly litigation or substantial settlement charges. In addition, the resolution of any intellectual property litigation may require us to make royalty payments, which could adversely affect our gross margins in future periods. If any of those events were to occur, our 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 our estimates, if any, which could result in the need to adjust the liability and record additional expenses. Unless otherwise noted below, during the period presented, we have not: recorded any material accrual for loss contingencies associated with such legal proceedings; determined that an unfavorable outcome is probable or reasonably possible; or determined that the amount or range of any possible loss is reasonably estimable. | ||||||
In July 2010, Network Protection Sciences, LLC (“NPS”), a non-practicing entity, filed a complaint in the United States District Court for the Eastern District of Texas alleging patent infringement by us and other defendants. In December 2011, the United States District Court for the Eastern District of Texas ordered the case to be transferred to the Northern District of California. In June 2012, the United States District Court for the Northern District of California dismissed the other defendants for misjoinder, and the case thereafter proceeded with Fortinet as the sole defendant. Between June and August 2013, we filed a number of pretrial motions with the Court. As a result of those motions, the Court found that NPS had engaged in litigation misconduct. The Court also granted our motion to strike NPS’s expert report on the issue of damages. Shortly thereafter, in September 2013, NPS agreed to abandon the case and we did not make any payments related to this case. NPS and its principals furthermore agreed not to sue us on related patents. The litigation related to NPS is no longer material to us. | ||||||
In June 2012, we received a letter from SRI International, (“SRI”) claiming that we infringed certain SRI patents. Subsequently, we filed a complaint in the United States District Court for the Northern District of California seeking declaratory relief and a judgment that the SRI patents were invalid, unenforceable and not infringed by any of our products or services. The case is proceeding in the United States District Court for the Northern District of California. The case is currently in the early stages, and we have determined that, as of this time, there is not a reasonable possibility that a material loss has been incurred. | ||||||
Indemnification—Under the indemnification provisions of our standard sales contracts, we agree to defend our customers against third-party claims asserting infringement of certain intellectual property rights, which may include patents, copyrights, trademarks, or trade secrets, and to pay judgments entered on such claims. Our exposure under these indemnification provisions is generally limited by the terms of our contracts to the total amount paid by our customer under the agreement. However, certain agreements include indemnification provisions that could potentially expose us to losses in excess of the amount received under the agreement. To date, there have been no claims under such indemnification provisions. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||
STOCK PLANS | ' | |||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||
Our 2009 Equity Incentive Plan (the “Plan”) permits us to grant awards of stock options, stock appreciation rights, restricted stock, restricted stock units, and performance units or performance shares. | ||||||||||||
Employee Stock Options | ||||||||||||
In August 2012, we began to primarily grant RSUs instead of stock options to employees, non-employees and members of the board of directors. | ||||||||||||
The following table summarizes the weighted-average assumptions relating to our employee stock options: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | ||||||||||
2013 | 2013 | 2012 | ||||||||||
Expected term in years | 4.6 | 4.6 | 4.6 | |||||||||
Volatility (%) | 47.8 | 47.8 | 46.4 - 51.9 | |||||||||
Risk-free interest rate (%) | 1.2 | 1.2 | 0.7 - 0.9 | |||||||||
Dividend rate (%) | — | — | — | |||||||||
There were no stock options granted during the three months ended September 30, 2012. | ||||||||||||
The following table summarizes the stock option activity and related information for the periods presented below (in 000’s, except per share amounts, exercise prices and contractual life): | ||||||||||||
Options Outstanding | ||||||||||||
Number | Weighted- | Weighted- | Aggregate | |||||||||
of Shares | Average | Average | Intrinsic | |||||||||
Exercise | Remaining | Value ($) | ||||||||||
Price ($) | Contractual | |||||||||||
Life (Years) | ||||||||||||
Balance—December 31, 2012 | 18,571 | 12.4 | ||||||||||
Granted | 209 | 21.11 | ||||||||||
Forfeited | (631 | ) | 21.82 | |||||||||
Exercised | (2,210 | ) | 5.33 | |||||||||
Balance—September 30, 2013 | 15,939 | 13.12 | 3.5 | 134,415 | ||||||||
Options vested and expected to vest—September 30, 2013 | 15,914 | 13.11 | 3.5 | 134,407 | ||||||||
Options exercisable—September 30, 2013 | 11,781 | 9.98 | 3.1 | 129,937 | ||||||||
The aggregate intrinsic value represents the pre-tax difference between the exercise price of stock options and the quoted market price of our common stock on September 30, 2013, for all in-the-money options. As of September 30, 2013, total compensation expense related to unvested stock options granted to employees but not yet recognized was $46.0 million, net of estimated forfeitures. This expense is expected to be amortized on a straight-line basis over a weighted-average period of 2.0 years. | ||||||||||||
Additional information related to our stock options is summarized below ($ amounts in 000’s, except per share amounts): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
30-Sep-13 | 30-Sep-12 | 30-Sep-13 | 30-Sep-12 | |||||||||
Weighted-average fair value per share granted | 8.61 | — | 8.61 | 11.13 | ||||||||
Intrinsic value of options exercised | 7,880 | 32,623 | 36,997 | 83,313 | ||||||||
Fair value of options vested | 5,063 | 6,823 | 21,553 | 19,897 | ||||||||
Restricted Stock Units | ||||||||||||
The following table summarizes the activity and related information for RSUs for the period presented below (in 000’s, except per share amounts): | ||||||||||||
Restricted Stock Units Outstanding | ||||||||||||
Number of Shares | Weighted-Average Grant-Date Fair Value per Share ($) | |||||||||||
Balance—December 31, 2012 | 830 | 23.73 | ||||||||||
Granted | 3,871 | 21.86 | ||||||||||
Forfeited | (251 | ) | 22.97 | |||||||||
Vested | (144 | ) | 24.86 | |||||||||
Balance—September 30, 2013 | 4,306 | 21.98 | ||||||||||
RSUs expected to vest—September 30, 2013 | 3,988 | 22.01 | ||||||||||
As of September 30, 2013, total compensation expense related to unvested RSUs that were granted to employees and non-employees, but not yet recognized, was $86.3 million, net of estimated forfeitures. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 3.4 years. | ||||||||||||
RSUs settle into shares of common stock upon vesting. RSUs that were previously granted began vesting in August 2013. Upon the vesting of the RSUs, we net-settled the RSUs and withheld a portion of the shares to satisfy minimum statutory employee withholding taxes. Total payment for the employees’ tax obligations to the taxing authorities is reflected as a financing activity within the condensed consolidated statements of cash flows. These net settlements had the effect of share repurchases by us as they reduced and retired the number of shares that would have otherwise been issued as a result of the vesting and did not represent an expense to us. | ||||||||||||
The following summarizes the number and value of the shares withheld for employee taxes for the three and nine months ended September 30, 2013 ($ amount in 000’s, except share amount): | ||||||||||||
Shares withheld for taxes | 45 | |||||||||||
Amount withheld for taxes | 966 | |||||||||||
Performance Stock Units | ||||||||||||
During the three and nine months ended September 30, 2013, we granted PSUs under the Plan to certain of our executive officers. Based on the achievement of the market-based vesting conditions during the performance period, the final settlement of the PSUs will range between 0% and 150% of the target shares underlying the PSUs based on a specified objective formula approved by our Compensation Committee. The PSUs entitle our executive officers to receive a number of shares of our common stock based on the performance of our stock price over a two- or three-year period as compared to the NASDAQ Composite index for the same periods. | ||||||||||||
The following table summarizes the weighted-average assumptions relating to our PSUs for the three and nine months ended September 30, 2013: | ||||||||||||
Expected term in years | 2.97 | |||||||||||
Volatility (%) | 50.11 | |||||||||||
Risk-free interest rate (%) | 0.67 | |||||||||||
Dividend rate (%) | — | |||||||||||
The target number of shares underlying the PSUs that were granted to certain of our executive officers during the three months ended September 30, 2013, totaled 180,000 shares that had a grant date fair value of $22.06 per share. | ||||||||||||
As of September 30, 2013, total compensation expense related to unvested PSUs that were granted to certain of our executive officers, but not yet recognized, was $3.8 million, net of estimated forfeitures. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 2.8 years. | ||||||||||||
Employee Stock Purchase Plan | ||||||||||||
In determining the fair value of the shares subject to our ESPP, we use the Black-Scholes option pricing model that employs the following weighted-average assumptions: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, 2013 | September 30, 2012 | 30-Sep-13 | 30-Sep-12 | |||||||||
Expected term in years | 0.5 | 0.5 | 0.5 | 0.5 | ||||||||
Volatility (%) | 35.1 | 43.1 | 44 | 53.7 | ||||||||
Risk-free interest rate (%) | 0.1 | 0.2 | 0.1 | 0.1 | ||||||||
Dividend rate (%) | — | — | — | — | ||||||||
Additional information related to our ESPP is provided below (in 000’s, except per share amounts): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, 2013 | September 30, 2012 | 30-Sep-13 | 30-Sep-12 | |||||||||
Weighted-average fair value per share granted ($) | 5.04 | 6.63 | 6.11 | 7.06 | ||||||||
Shares issued under the ESPP | 343,761 | 288,884 | 672,397 | 576,833 | ||||||||
Weighted-average price per share issued ($) | 17.9 | 20.29 | 18.88 | 18.9 | ||||||||
Stock-based Compensation Expense | ||||||||||||
Stock-based compensation expense is included in costs and expenses as follows ($ amounts in 000’s): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Cost of product revenue | 91 | 85 | 277 | 237 | ||||||||
Cost of services revenue | 1,297 | 1,018 | 3,543 | 2,704 | ||||||||
Research and development | 3,548 | 2,525 | 9,605 | 6,774 | ||||||||
Sales and marketing | 5,215 | 3,879 | 13,927 | 10,797 | ||||||||
General and administrative | 1,627 | 1,323 | 4,432 | 3,416 | ||||||||
Total stock-based compensation expense | 11,778 | 8,830 | 31,784 | 23,928 | ||||||||
The following table summarizes stock-based compensation expense by award type ($ amounts in 000’s) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Stock options | 5,180 | 6,985 | 15,801 | 19,982 | ||||||||
RSUs | 5,408 | 576 | 12,439 | 576 | ||||||||
ESPP | 1,190 | 1,269 | 3,544 | 3,370 | ||||||||
Total stock-based compensation expense | 11,778 | 8,830 | 31,784 | 23,928 | ||||||||
Total income tax benefit from employee stock option plans that is recognized in the consolidated statements of operations is as follows ($ amounts in 000’s): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Income tax benefit from employee stock option plans | 3,176 | 6,685 | 9,557 | 17,073 | ||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The effective tax rate was 40% for the three months ended September 30, 2013, compared to an effective tax rate of 36% for the three months ended September 30, 2012. The effective tax rate was 36% for the nine months ended September 30, 2013, compared to an effective tax rate of 34% for the nine months ended September 30, 2012. The provision for income taxes for the periods presented is comprised of foreign income taxes, U.S. federal and state taxes, and withholding tax. | |
As of September 30, 2013 and December 31, 2012, unrecognized tax benefits were $28.7 million and $27.8 million, respectively. The total amount of $28.3 million in unrecognized tax benefits, if recognized, would favorably impact the effective tax rate. | |
It is our policy to classify accrued interest and penalties related to unrecognized tax benefits in the provision for income taxes. As of September 30, 2013, we had accrued approximately $2.3 million for estimated interest related to uncertain tax provisions. | |
The State of California has been conducting an audit of our state income tax returns for fiscal 2010 and fiscal 2011. We do not expect this audit to have a significant detrimental effect on our income tax liability nor have a material impact on our results of operations. |
Employee_Benefit_Plan
Employee Benefit Plan | 9 Months Ended |
Sep. 30, 2013 | |
Employee Benefit Plan [Abstract] | ' |
EMPLOYEE BENEFIT PLAN | ' |
EMPLOYEE BENEFIT PLAN | |
The 401(k) tax-deferred savings plan (the “401(k) Plan”) permits participants to make contributions by salary deduction pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended. Under the 401(k) Plan, participating employees may defer a portion of their pre-tax earnings, up to the annual contribution limit specified by the Internal Revenue Service (“IRS”). In Canada, we have a Group Registered Retirement Savings Plan program (the “RRSP”) which permits participants to make tax deductible contributions up to the maximum contribution limits under the Income Tax Act. Our matching contributions to the 401(k) Plan and RRSP were $0.6 million and $0.4 million for the three months ended September 30, 2013 and September 30, 2012, respectively. Our matching contributions to the 401(k) Plan and RRSP were $1.6 million and $1.4 million for the nine months ended September 30, 2013 and September 30, 2012, respectively. |
Segment_and_Significant_Custom
Segment and Significant Customer Information | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
SEGMENT AND SIGNIFICANT CUSTOMER INFORMATION | ' | |||||||||||
SEGMENT AND SIGNIFICANT CUSTOMER INFORMATION | ||||||||||||
The following tables set forth revenue and property and equipment by geographic region ($ amounts in 000’s): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
Revenue | September 30, | September 30, | September 30, | September 30, | ||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Americas: | ||||||||||||
United States | 40,654 | 38,674 | 114,257 | 103,983 | ||||||||
Other Americas | 24,794 | 18,543 | 63,844 | 51,587 | ||||||||
Total Americas | 65,448 | 57,217 | 178,101 | 155,570 | ||||||||
Europe, Middle East and Africa (“EMEA”) | 51,373 | 45,566 | 149,500 | 130,116 | ||||||||
Asia Pacific and Japan (“APAC”) | 37,878 | 33,485 | 110,346 | 96,791 | ||||||||
Total revenue | 154,699 | 136,268 | 437,947 | 382,477 | ||||||||
During each of the three and nine months ended September 30, 2013, Exclusive Networks Group accounted for 11% of total revenue. During the three and nine months ended September 30, 2012, Exclusive Networks Group accounted for 10% and 11% of total revenue, respectively. No other customers accounted for more than 10% of our total revenue during the three and nine months ended September 30, 2013 and 2012. | ||||||||||||
Property and Equipment —Net | September 30, | December 31, | ||||||||||
2013 | 2012 | |||||||||||
Americas: | ||||||||||||
United States | 21,288 | 18,764 | ||||||||||
Canada | 3,924 | 4,376 | ||||||||||
Other Americas | 61 | 87 | ||||||||||
Total Americas | 25,273 | 23,227 | ||||||||||
EMEA | 1,459 | 1,213 | ||||||||||
APAC | 1,648 | 1,198 | ||||||||||
Total property and equipment—net | 28,380 | 25,638 | ||||||||||
Foreign_Currency_Derivatives
Foreign Currency Derivatives | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||
FOREIGN CURRENCY DERIVATIVES | ' | ||||
FOREIGN CURRENCY DERIVATIVES | |||||
The notional amounts of forward exchange contracts to hedge balance sheet accounts as of September 30, 2013 and December 31, 2012 were ($ amounts in 000’s): | |||||
Buy/Sell | Notional | ||||
Balance Sheet Contracts: | |||||
Currency - As of September 30, 2013 | |||||
Canadian dollar | Buy | 25,367 | |||
Currency - As of December 31, 2012 | |||||
Canadian dollar | Buy | 17,968 | |||
Business_Combinations
Business Combinations | 9 Months Ended | ||
Sep. 30, 2013 | |||
Business Combinations [Abstract] | ' | ||
BUSINESS COMBINATIONS | ' | ||
BUSINESS COMBINATIONS | |||
Xtera | |||
On September 13, 2013, we acquired certain assets of Xtera Communications, Inc. (“Xtera”), including certain load balancing products and certain patents, for a total consideration of $1.8 million, of which $1.7 million was paid in cash on the acquisition date and $0.1 million payment in cash is contingent upon attainment of revenue milestones. This acquisition will enable us to enhance our load balancing solutions in our product portfolio. | |||
We accounted for this acquisition as a purchase of a business and, accordingly, the total purchase price was allocated to the identifiable tangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair value assigned to the intangible assets acquired was determined using the income approach which discounts expected cash flows to present value using our estimates and assumptions. | |||
In connection with this acquisition, we acquired net tangible assets of $0.2 million, intangible assets of $1.5 million, and recognized an estimated contingent obligation of $0.1 million payable upon attainment of revenue milestones. | |||
The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date ($ amounts in 000’s): | |||
Current assets | 459 | ||
Finite-lived intangible assets | 1,525 | ||
Total assets acquired | 1,984 | ||
Current liabilities | 234 | ||
Total liabilities assumed | 234 | ||
Total purchase price | 1,750 | ||
Identified finite-lived intangible assets consist of developed technology that will be amortized as cost of revenue, ratably on a straight-line basis over an estimated useful life of 3 years. Pro-forma results of operations have not been presented because the acquisitions, individually and collectively, were not material to our results of operations. | |||
Coyote Point Systems | |||
On March 21, 2013, we acquired all of the outstanding equity securities of Coyote Point Systems, Inc. (“Coyote”), a provider of application delivery, load balancing and acceleration solutions, for $6.0 million in cash. The acquisition also includes a contingent obligation for up to $5.5 million in future earn-out payments to former stockholders of Coyote, if specified future operational objectives, service conditions and financial results are met within two years of the acquisition date. Of the maximum $5.5 million in contingent earn-out payments, up to $3.5 million will be payable after eighteen months from the acquisition date, and up to $2.0 million will be payable after two years from the acquisition date. As the future earn-out payments are also contingent upon one of Coyote's former stockholder's employment during the earn-out period, these contingent obligations are being recorded as compensation expense ratably over the earn-out periods. | |||
We accounted for this acquisition as a purchase of a business and, accordingly, the total purchase price was allocated to Coyote’s identifiable tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair value assigned to the intangible assets acquired was determined using the income approach which discounts expected cash flows to present value using our estimates and assumptions. | |||
The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date ($ amounts in 000’s): | |||
Cash and cash equivalents | 206 | ||
Other current assets | 501 | ||
Finite-lived intangible assets | 2,800 | ||
Indefinite-lived intangible assets | 2,600 | ||
Goodwill | 2,766 | ||
Other assets | 88 | ||
Total assets acquired | 8,961 | ||
Current liabilities | 1,078 | ||
Long-term liabilities | 1,898 | ||
Total liabilities assumed | 2,976 | ||
Total purchase price | 5,985 | ||
Of the total acquired identified intangible assets, we allocated $2.3 million to developed technology, $0.5 million to customer relationships, and $2.6 million to in-process research and development (“IPR&D”) as of the acquisition date. Identified finite-lived intangible assets consist of developed technology and customer relationships that are being amortized as cost of revenue and sales and marketing expense, respectively, ratably on a straight-line basis, each over an estimated useful life of 6 years. Identified indefinite-lived intangible assets consisted of acquired IPR&D relating to existing research and development projects at the time of acquisition. The goodwill of $2.8 million represents the premium we paid over the fair value of the net tangible liabilities assumed and identified intangible assets acquired. We paid this premium for a number of reasons, primarily for acquiring developed and in-process technology. None of the goodwill recognized as a result of the acquisition is deductible for income tax purposes. The financial results of this acquisition were considered immaterial for purposes of pro-forma financial disclosures. During the three months ended September 30, 2013, we completed the development of technology associated with the IPR&D projects, and started amortizing this developed technology as cost of revenue ratably on a straight-line basis over an estimated useful life of 6 years. | |||
XDN | |||
On December 7, 2012, we completed the acquisition of XDN, Inc., a provider of cloud-based content delivery solutions, for a total consideration of $0.5 million. We accounted for this acquisition as a purchase of a business and, accordingly, the total purchase price was allocated to identifiable intangible assets acquired based on their estimated fair market value as of the acquisition date. The purchase price allocation resulted in purchased identifiable intangible assets of $0.5 million. Identifiable intangible assets consist of developed technology. The fair value assigned to identifiable intangible assets acquired was determined using the market approach, which compares the value of the purchased assets to similar assets in similar lines of business. These purchased identifiable intangible assets are being amortized as cost of revenue ratably over three years. The financial results of this acquisition were considered immaterial for purposes of pro forma financial disclosures. | |||
IntruGuard | |||
On March 8, 2012, we completed the acquisition of IntruGuard Devices, Inc. (“IntruGuard”), a supplier of Distributed Denial of Services ("DDoS"), prevention products, for a total consideration of $1.0 million. Of the total consideration, $0.4 million was withheld in escrow as security for IntruGuard’s indemnification obligations. We accounted for this acquisition as a purchase of a business and, accordingly, the total purchase price was allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair market values as of the acquisition date. The purchase price allocation resulted in purchased tangible assets of $53,000 and liabilities of $43,000, and purchased identifiable intangible assets of $0.9 million. Identifiable intangible assets consist of purchased technology. The fair value assigned to identifiable intangible assets acquired was determined using the income approach, which discounts expected future cash flows to present value using estimates and assumptions determined by us. Purchased identifiable intangible assets are being amortized as cost of revenue ratably over three years. Of the $0.4 million previously withheld in escrow, $0.2 million and $0.2 million were released to the selling stockholders during the three months ended September 30, 2012 and the three months ended March 31, 2013, respectively. The financial results of this acquisition were considered immaterial for purposes of pro forma financial disclosures. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets—Net | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS—NET | ' | ||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS—NET | |||||||||
Goodwill | |||||||||
We recorded $2.8 million of goodwill based on the purchase price allocation of the acquisition of Coyote during the nine months ended September 30, 2013. There were no impairments to goodwill during the three and nine months ended September 30, 2013. | |||||||||
Other Intangible Assets—Net | |||||||||
The following tables present other intangible assets ($ amounts in 000’s): | |||||||||
September 30, 2013 | |||||||||
Gross | Accumulated Amortization | Net | |||||||
Finite-lived other intangible assets: | |||||||||
Developed technology (1) | 9,909 | 2,520 | 7,389 | ||||||
Customer relationships | 500 | 43 | 457 | ||||||
Total other intangible assets | 10,409 | 2,563 | 7,846 | ||||||
(1) This amount includes the completed IPR&D acquired from Coyote of $2.6 million. During the three months ended September 30, 2013, we completed the associated IPR&D projects and transferred the IPR&D to developed technology. We started amortizing this developed technology as cost of revenue ratably on a straight-line basis over an estimated useful life of 6 years. | |||||||||
December 31, 2012 | |||||||||
Gross | Accumulated Amortization | Net | |||||||
Finite-lived other intangible assets: | |||||||||
Developed technology | 3,541 | 1,424 | 2,117 | ||||||
Total other intangible assets | 3,541 | 1,424 | 2,117 | ||||||
Amortization expense was $0.4 million and $0.3 million for the three months ended September 30, 2013 and September 30, 2012, respectively. Amortization expense was $1.1 million and $0.7 million for the nine months ended September 30, 2013 and September 30, 2012, respectively. The following table summarizes estimated future amortization expense of other intangible assets with finite lives for future fiscal years ($ amounts in 000’s): | |||||||||
Amount | |||||||||
Fiscal Years: | |||||||||
2013 (remainder) | 615 | ||||||||
2014 | 2,095 | ||||||||
2015 | 1,679 | ||||||||
2016 | 1,287 | ||||||||
2017 | 900 | ||||||||
Thereafter | 1,270 | ||||||||
Total | 7,846 | ||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income for the nine months ended September 30, 2013 ($ amounts in 000's): | ||||||||||||
Foreign Currency Translation Gains and Losses | Unrealized Gains and Losses on Investments | Tax benefit or provision related to items of other comprehensive income or loss | Total | |||||||||
Beginning balance | 1,948 | 1,758 | (615 | ) | 3,091 | |||||||
Other comprehensive income before reclassifications | (901 | ) | (819 | ) | 287 | (1,433 | ) | |||||
Amounts reclassified from accumulated other comprehensive income | — | (8 | ) | 3 | (5 | ) | ||||||
Net current-period other comprehensive income | (901 | ) | (827 | ) | 290 | (1,438 | ) | |||||
Ending balance | 1,047 | 931 | (325 | ) | 1,653 | |||||||
The following table provides details about the reclassification out of accumulated other comprehensive income for the nine months ended September 30, 2013 ($ amounts in 000s): | ||||||||||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||
Unrealized gains on investments | (8 | ) | Other expense, net | |||||||||
Tax provision related to items of other comprehensive income or loss | 3 | Provision for income taxes | ||||||||||
Total reclassification for the period | (5 | ) |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Presentation and Preparation of Consolidated Financial Statements [Policy Text Block] | ' |
Basis of Presentation and Preparation | |
The unaudited condensed consolidated financial statements of Fortinet, Inc. and its wholly owned subsidiaries (collectively, “we,” “us,” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the fiscal year ended December 31, 2012, contained in our Annual Report on Form 10-K (“Form 10-K”) filed with the SEC on February 27, 2013. In the opinion of management, all adjustments, which only includes normal recurring adjustments, considered necessary for a fair presentation have been included. All intercompany balances, transactions and cash flows have been eliminated. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the operating results for any subsequent quarter, for the full year or for any future periods. The condensed consolidated balance sheets as of December 31, 2012 are derived from the audited consolidated financial statements for the year ended December 31, 2012. | |
The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. | |
During the three and nine months ended September 30, 2013, we recorded a non-recurring out-of-period adjustment of $3.0 million to correct the presentation on our condensed consolidated balance sheets relating to our repurchase of 1,409,264 shares during the fiscal year ended December 31, 2009. This reclassification adjustment resulted in a decrease to the outstanding treasury stock balance and a corresponding decrease to additional paid-in capital. We believe the impact of the adjustment is not material to the current or prior fiscal periods. The shares that we repurchased in 2009 were retired immediately after repurchase. There was no outstanding treasury stock balance at September 30, 2013. | |
There have been no material changes in our significant accounting policies as of and for the three and nine months ended September 30, 2013, as compared to the significant accounting policies described in the Form 10-K, except for the inclusion of policies related to goodwill and other indefinite-lived assets, long-term investments, and stock-based compensation expense pertaining to performance stock units (“PSUs”). | |
Goodwill and other indefinite-lived intangible assets | |
Goodwill represents the excess of purchase consideration over the estimated fair value of net assets of businesses acquired in a business combination. Goodwill and other indefinite-lived intangible assets such as in-process research and development acquired in a business combination are not amortized, but instead tested for impairment at least annually during the fourth quarter. We perform our annual goodwill impairment analysis at the reporting unit level. As of September 30, 2013, we had one reporting unit. | |
In reviewing goodwill for impairment we have the option to (i) assess qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount or (ii) bypass the qualitative assessment and proceed directly to a quantitative assessment. If we opt to perform a qualitative assessment, the factors we may review include, but are not limited to (a) macroeconomic conditions; (b) industry and market considerations; (c) cost factors; (d) overall financial performance; (e) other relevant entity-specific events such as changes in management, strategy, customers, or litigation; (f) events affecting the reporting unit; or (g) or sustained decrease in share price. If we believe, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. A quantitative assessment utilizes a two-step process. In the first step, the fair value of the reporting unit is determined, and is compared against its carrying amount, including goodwill. We consider a combination of an income-based approach using projected discounted cash flows and a market-based approach using multiples of comparable companies to determine the fair value. The fair value of the reporting unit is estimated using significant judgment based on a combination of the income and the market approaches. Under the income approach, we estimate fair value of the reporting unit based on the present value of forecasted future cash flows that the reporting unit is expected to generate over its remaining life. Under the market approach, we estimate fair value of our reporting unit based on an analysis that compares the value of the reporting unit to values of other companies in similar lines of business. If the fair value of the reporting unit does not exceed its carrying value, then we perform the second step to measure the amount of impairment loss. The amount of impairment is determined by comparing the implied fair value of reporting unit goodwill to the carrying value of the goodwill. When the carrying value of the reporting unit's goodwill exceeds its implied fair value, we record an impairment loss equal to the difference. | |
Determining the fair value of the reporting unit requires us to make judgments and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, operating trends, risk-adjusted discount rates, future economic and market conditions and determination of appropriate market comparables. We base our fair value estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. We may also test goodwill and other intangible assets for impairment between annual tests in the presence of impairment indicators. Acquired in-process research and development assets are classified as indefinite-lived intangible assets until the successful completion or abandonment of the associated research and development efforts. Upon successful completion of the associated research and development efforts, the useful life of the asset is determined and the asset is amortized over its useful life. If the associated research and development efforts are abandoned, an impairment loss is recognized for the carrying value of the related asset. | |
Long-term investments | |
Investments in privately held companies where we own less than 20% of the voting stock and have no indicators of significant influence over operating and financial policies of those companies are included in Long-term investments in the consolidated balance sheets and are accounted for under the cost method. For these non-quoted investments, we regularly review the assumptions underlying the operating performance and cash flow forecasts based on information provided by these privately held companies. If it is determined that an other-than-temporary decline exists in an equity security, we write down the investment to its fair value and record the related impairment as an investment loss in our consolidated statements of operations. As of September 30, 2013, we only have one investment of $2.0 million in a privately-held company accounted for under the cost method. | |
Stock-Based Compensation Expense - Performance Stock Units | |
PSUs are restricted stock units (“RSUs”) that contain both service-based and market-based vesting conditions. PSUs vest over a specified service period upon the satisfaction of certain market-based vesting conditions, and settle into shares of our common stock upon vesting over a two- or three-year period. The fair value of a PSU is calculated using the Monte Carlo simulation model on the grant date and is based on the market price of our common stock on the grant date modified to reflect the impact of the market-based vesting condition, including the estimated payout level based on that condition. We do not adjust compensation cost for subsequent changes in the expected outcome of the market-based vesting conditions. | |
Certain prior period amounts have been combined on the condensed consolidated balance sheets and statements of cash flows to conform to the current period presentation. | |
Goodwill and other indefinite-lived intangible assets | ' |
Goodwill and other indefinite-lived intangible assets | |
Goodwill represents the excess of purchase consideration over the estimated fair value of net assets of businesses acquired in a business combination. Goodwill and other indefinite-lived intangible assets such as in-process research and development acquired in a business combination are not amortized, but instead tested for impairment at least annually during the fourth quarter. We perform our annual goodwill impairment analysis at the reporting unit level. As of September 30, 2013, we had one reporting unit. | |
In reviewing goodwill for impairment we have the option to (i) assess qualitative factors to determine whether it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount or (ii) bypass the qualitative assessment and proceed directly to a quantitative assessment. If we opt to perform a qualitative assessment, the factors we may review include, but are not limited to (a) macroeconomic conditions; (b) industry and market considerations; (c) cost factors; (d) overall financial performance; (e) other relevant entity-specific events such as changes in management, strategy, customers, or litigation; (f) events affecting the reporting unit; or (g) or sustained decrease in share price. If we believe, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. A quantitative assessment utilizes a two-step process. In the first step, the fair value of the reporting unit is determined, and is compared against its carrying amount, including goodwill. We consider a combination of an income-based approach using projected discounted cash flows and a market-based approach using multiples of comparable companies to determine the fair value. The fair value of the reporting unit is estimated using significant judgment based on a combination of the income and the market approaches. Under the income approach, we estimate fair value of the reporting unit based on the present value of forecasted future cash flows that the reporting unit is expected to generate over its remaining life. Under the market approach, we estimate fair value of our reporting unit based on an analysis that compares the value of the reporting unit to values of other companies in similar lines of business. If the fair value of the reporting unit does not exceed its carrying value, then we perform the second step to measure the amount of impairment loss. The amount of impairment is determined by comparing the implied fair value of reporting unit goodwill to the carrying value of the goodwill. When the carrying value of the reporting unit's goodwill exceeds its implied fair value, we record an impairment loss equal to the difference. | |
Determining the fair value of the reporting unit requires us to make judgments and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, operating trends, risk-adjusted discount rates, future economic and market conditions and determination of appropriate market comparables. We base our fair value estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. We may also test goodwill and other intangible assets for impairment between annual tests in the presence of impairment indicators. Acquired in-process research and development assets are classified as indefinite-lived intangible assets until the successful completion or abandonment of the associated research and development efforts. Upon successful completion of the associated research and development efforts, the useful life of the asset is determined and the asset is amortized over its useful life. If the associated research and development efforts are abandoned, an impairment loss is recognized for the carrying value of the related asset. | |
Long-term investments | ' |
Long-term investments | |
Investments in privately held companies where we own less than 20% of the voting stock and have no indicators of significant influence over operating and financial policies of those companies are included in Long-term investments in the consolidated balance sheets and are accounted for under the cost method. For these non-quoted investments, we regularly review the assumptions underlying the operating performance and cash flow forecasts based on information provided by these privately held companies. If it is determined that an other-than-temporary decline exists in an equity security, we write down the investment to its fair value and record the related impairment as an investment loss in our consolidated statements of operations. As of September 30, 2013, we only have one investment of $2.0 million in a privately-held company accounted for under the cost method. | |
Stock-Based Compensation Expense - Performance Stock Units | ' |
Stock-Based Compensation Expense - Performance Stock Units | |
PSUs are restricted stock units (“RSUs”) that contain both service-based and market-based vesting conditions. PSUs vest over a specified service period upon the satisfaction of certain market-based vesting conditions, and settle into shares of our common stock upon vesting over a two- or three-year period. The fair value of a PSU is calculated using the Monte Carlo simulation model on the grant date and is based on the market price of our common stock on the grant date modified to reflect the impact of the market-based vesting condition, including the estimated payout level based on that condition. We do not adjust compensation cost for subsequent changes in the expected outcome of the market-based vesting conditions. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-02, Comprehensive Income (Topic 220)—Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”). ASU 2013-02 requires an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. We adopted ASU 2013-02 on January 1, 2013, and presented the effects within Note 16, Accumulated Other Comprehensive Income. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740)-Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. This new standard requires the netting of unrecognized tax benefits (“UTBs”) against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. UTBs will be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. ASU 2013-11 will be effective for us beginning in the first quarter of fiscal 2014. Early adoption is permitted. Since ASU 2013-11 only impacts financial statement disclosure requirements for unrecognized tax benefits, we do not expect its adoption to have an impact on our financial position or results of operations. |
Financial_Instruments_and_Fair1
Financial Instruments and Fair Value (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Financial Instruments and Fair Value [Abstract] | ' | ||||||||||||||||||
Summary of Investments [Table Text Block] | ' | ||||||||||||||||||
The following table summarizes our investments ($ amounts in 000’s): | |||||||||||||||||||
September 30, 2013 | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||
U.S. government and agency securities | 2,000 | — | — | 2,000 | |||||||||||||||
Corporate debt securities | 566,962 | 1,336 | (441 | ) | 567,857 | ||||||||||||||
Commercial paper | 81,955 | 13 | (6 | ) | 81,962 | ||||||||||||||
Municipal bonds | 34,554 | 44 | (14 | ) | 34,584 | ||||||||||||||
Certificates of deposit and term deposits | 8,053 | 3 | — | 8,056 | |||||||||||||||
Total available-for-sale securities | 693,524 | 1,396 | (461 | ) | 694,459 | ||||||||||||||
December 31, 2012 | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||
Corporate debt securities | 529,738 | 1,814 | (161 | ) | 531,391 | ||||||||||||||
Commercial paper | 39,229 | 22 | (6 | ) | 39,245 | ||||||||||||||
Municipal bonds | 36,787 | 83 | — | 36,870 | |||||||||||||||
Certificates of deposit and term deposits | 9,099 | 6 | — | 9,105 | |||||||||||||||
Total available-for-sale securities | 614,853 | 1,925 | (167 | ) | 616,611 | ||||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] | ' | ||||||||||||||||||
The following table shows the gross unrealized losses and the related fair values of our investments that have been in a continuous unrealized loss position, as of September 30, 2013 ($ amounts in 000’s): | |||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Corporate debt securities | 232,721 | (434 | ) | 5,309 | (7 | ) | 238,030 | (441 | ) | ||||||||||
Commercial paper | 20,076 | (6 | ) | — | — | 20,076 | (6 | ) | |||||||||||
Municipal bonds | 12,941 | (14 | ) | — | — | 12,941 | (14 | ) | |||||||||||
Total available-for-sale securities | 265,738 | (454 | ) | 5,309 | (7 | ) | 271,047 | (461 | ) | ||||||||||
The following table shows the gross unrealized losses and the related fair values of our investments that have been in a continuous unrealized loss position, as of December 31, 2012 ($ amounts in 000’s): | |||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Corporate debt securities | 133,006 | (156 | ) | 5,010 | (5 | ) | 138,016 | (161 | ) | ||||||||||
Commercial paper | 8,464 | (6 | ) | — | — | 8,464 | (6 | ) | |||||||||||
Total available-for-sale securities | 141,470 | (162 | ) | 5,010 | (5 | ) | 146,480 | (167 | ) | ||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | ' | ||||||||||||||||||
The contractual maturities of our investments were as follows ($ amounts in 000’s) | |||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Due within one year | 368,472 | 290,719 | |||||||||||||||||
Due within one to three years | 325,987 | 325,892 | |||||||||||||||||
Total available-for-sale securities | 694,459 | 616,611 | |||||||||||||||||
Fair Value, by Balance Sheet Grouping and Measurement Inputs, Disclosure [Table Text Block] | ' | ||||||||||||||||||
The following table presents the fair value of our financial assets measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012 ($ amounts in 000’s): | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||
Aggregate | Quoted | Significant | Aggregate | Quoted | Significant | ||||||||||||||
Fair | Prices in | Other | Fair | Prices in | Other | ||||||||||||||
Value | Active | Observable | Value | Active | Observable | ||||||||||||||
Markets For | Remaining | Markets For | Remaining | ||||||||||||||||
Identical | Inputs | Identical | Inputs | ||||||||||||||||
Assets | Assets | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 1) | (Level 2) | ||||||||||||||||
U.S. government and agency securities | 2,000 | — | 2,000 | — | — | — | |||||||||||||
Corporate debt securities | 574,578 | — | 574,578 | 531,391 | — | 531,391 | |||||||||||||
Commercial paper | 83,262 | — | 83,262 | 41,994 | — | 41,994 | |||||||||||||
Municipal bonds | 34,584 | — | 34,584 | 36,870 | — | 36,870 | |||||||||||||
Certificates of deposit and term deposits | 8,056 | — | 8,056 | 9,105 | — | 9,105 | |||||||||||||
Money market funds | 45,897 | 45,897 | — | 39,871 | 39,871 | — | |||||||||||||
748,377 | 45,897 | 702,480 | 659,231 | 39,871 | 619,360 | ||||||||||||||
Reported as: | |||||||||||||||||||
Cash equivalents | 53,918 | 42,620 | |||||||||||||||||
Short-term investments | 368,472 | 290,719 | |||||||||||||||||
Long-term investments | 325,987 | 325,892 | |||||||||||||||||
Total | 748,377 | 659,231 | |||||||||||||||||
Inventory_Tables
Inventory (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Inventory Disclosure [Abstract] | ' | |||||
Inventory [Table Text Block] | ' | |||||
Inventory consisted of the following ($ amounts in 000’s): | ||||||
September 30, | December 31, | |||||
2013 | 2012 | |||||
Raw materials | 7,765 | 4,958 | ||||
Finished goods | 39,111 | 16,102 | ||||
Inventory | 46,876 | 21,060 | ||||
Property_and_EquipmentNet_Tabl
Property and Equipment—Net (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Property, Plant and Equipment [Abstract] | ' | |||||
Property, Plant and Equipment [Table Text Block] | ' | |||||
Property and equipment consisted of the following ($ amounts in 000’s): | ||||||
September 30, | December 31, | |||||
2013 | 2012 | |||||
Land | 13,895 | 13,895 | ||||
Building and building improvements | 610 | 610 | ||||
Evaluation units | 21,986 | 18,322 | ||||
Computer equipment and software | 22,785 | 17,176 | ||||
Furniture and fixtures | 1,709 | 1,501 | ||||
Construction-in-process | 1,295 | — | ||||
Leasehold improvements and tooling | 5,532 | 5,354 | ||||
Total property and equipment | 67,812 | 56,858 | ||||
Less: accumulated depreciation | (39,432 | ) | (31,220 | ) | ||
Property and equipment—net | 28,380 | 25,638 | ||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||
A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows ($ and share amounts in 000’s, except per share amounts): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Numerator: | ||||||||||||
Net income | 11,029 | 17,206 | 32,257 | 45,329 | ||||||||
Denominator: | ||||||||||||
Basic shares: | ||||||||||||
Weighted-average common stock outstanding-basic | 162,906 | 158,751 | 162,150 | 157,416 | ||||||||
Diluted shares: | ||||||||||||
Weighted-average common stock outstanding-basic | 162,906 | 158,751 | 162,150 | 157,416 | ||||||||
Effect of potentially dilutive securities: | ||||||||||||
Stock options | 5,525 | 8,019 | 5,844 | 8,694 | ||||||||
RSUs | 213 | — | 50 | — | ||||||||
ESPP | 22 | 21 | 10 | 17 | ||||||||
Weighted-average shares used to compute diluted net income per share | 168,666 | 166,791 | 168,054 | 166,127 | ||||||||
Net income per share: | ||||||||||||
Basic | 0.07 | 0.11 | 0.2 | 0.29 | ||||||||
Diluted | 0.07 | 0.1 | 0.19 | 0.27 | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | |||||||||||
The following weighted-average shares of common stock were excluded from the computation of diluted net income per share for the periods presented, as their effect would have been antidilutive (in 000’s): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Stock options | 6,640 | 5,686 | 7,364 | 6,847 | ||||||||
RSUs | 1,416 | 388 | 2,383 | 130 | ||||||||
ESPP | 407 | 303 | 399 | 300 | ||||||||
8,463 | 6,377 | 10,146 | 7,277 | |||||||||
Deferred_Revenue_Tables
Deferred Revenue (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Deferred Revenue Disclosure [Abstract] | ' | |||||
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | ' | |||||
Deferred revenue consisted of the following ($ amounts in 000’s): | ||||||
September 30, | December 31, | |||||
2013 | 2012 | |||||
Product | 5,114 | 5,411 | ||||
Services | 389,571 | 348,548 | ||||
Ratable and other revenue | 5,488 | 9,226 | ||||
Total deferred revenue | 400,173 | 363,185 | ||||
Reported As: | ||||||
Current | 271,302 | 247,268 | ||||
Non-current | 128,871 | 115,917 | ||||
Total deferred revenue | 400,173 | 363,185 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||||
Sep. 30, 2013 | ||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | |||||
The aggregate future non-cancelable minimum rental payments on operating leases as of September 30, 2013 are as follows ($ amounts in 000’s): | ||||||
Rental | ||||||
Payment | ||||||
Fiscal Years: | ||||||
2013 (remainder) | 2,675 | |||||
2014 | 7,715 | |||||
2015 | 5,342 | |||||
2016 | 4,279 | |||||
2017 | 3,738 | |||||
Thereafter | 7,779 | |||||
Total | 31,528 | |||||
Schedule of Product Warranty Liability [Table Text Block] | ' | |||||
Accrued warranty activities are summarized as follows ($ amounts in 000’s): | ||||||
For The Nine Months Ended | ||||||
September 30, | September 30, | |||||
2013 | 2012 | |||||
Accrued warranty balance—beginning of the period | 2,309 | 2,582 | ||||
Warranty costs incurred | (2,670 | ) | (1,843 | ) | ||
Provision for warranty, including warranty assumed from Xtera | 3,134 | 1,604 | ||||
Changes in prior period estimates | 274 | (307 | ) | |||
Accrued warranty balance—end of the period | 3,047 | 2,036 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions And Allocation of Recognized Period Costs [Table Text Block] | ' | |||||||||||
The following table summarizes the weighted-average assumptions relating to our employee stock options: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | ||||||||||
2013 | 2013 | 2012 | ||||||||||
Expected term in years | 4.6 | 4.6 | 4.6 | |||||||||
Volatility (%) | 47.8 | 47.8 | 46.4 - 51.9 | |||||||||
Risk-free interest rate (%) | 1.2 | 1.2 | 0.7 - 0.9 | |||||||||
Dividend rate (%) | — | — | — | |||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | |||||||||||
The following table summarizes the stock option activity and related information for the periods presented below (in 000’s, except per share amounts, exercise prices and contractual life): | ||||||||||||
Options Outstanding | ||||||||||||
Number | Weighted- | Weighted- | Aggregate | |||||||||
of Shares | Average | Average | Intrinsic | |||||||||
Exercise | Remaining | Value ($) | ||||||||||
Price ($) | Contractual | |||||||||||
Life (Years) | ||||||||||||
Balance—December 31, 2012 | 18,571 | 12.4 | ||||||||||
Granted | 209 | 21.11 | ||||||||||
Forfeited | (631 | ) | 21.82 | |||||||||
Exercised | (2,210 | ) | 5.33 | |||||||||
Balance—September 30, 2013 | 15,939 | 13.12 | 3.5 | 134,415 | ||||||||
Options vested and expected to vest—September 30, 2013 | 15,914 | 13.11 | 3.5 | 134,407 | ||||||||
Options exercisable—September 30, 2013 | 11,781 | 9.98 | 3.1 | 129,937 | ||||||||
Additional information related to our stock options is summarized below ($ amounts in 000’s, except per share amounts): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
30-Sep-13 | 30-Sep-12 | 30-Sep-13 | 30-Sep-12 | |||||||||
Weighted-average fair value per share granted | 8.61 | — | 8.61 | 11.13 | ||||||||
Intrinsic value of options exercised | 7,880 | 32,623 | 36,997 | 83,313 | ||||||||
Fair value of options vested | 5,063 | 6,823 | 21,553 | 19,897 | ||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | |||||||||||
The following table summarizes the activity and related information for RSUs for the period presented below (in 000’s, except per share amounts): | ||||||||||||
Restricted Stock Units Outstanding | ||||||||||||
Number of Shares | Weighted-Average Grant-Date Fair Value per Share ($) | |||||||||||
Balance—December 31, 2012 | 830 | 23.73 | ||||||||||
Granted | 3,871 | 21.86 | ||||||||||
Forfeited | (251 | ) | 22.97 | |||||||||
Vested | (144 | ) | 24.86 | |||||||||
Balance—September 30, 2013 | 4,306 | 21.98 | ||||||||||
RSUs expected to vest—September 30, 2013 | 3,988 | 22.01 | ||||||||||
Schedule of Share-based Compensation, Shares Withheld for Taxes [Table Text Block] | ' | |||||||||||
The following summarizes the number and value of the shares withheld for employee taxes for the three and nine months ended September 30, 2013 ($ amount in 000’s, except share amount): | ||||||||||||
Shares withheld for taxes | 45 | |||||||||||
Amount withheld for taxes | 966 | |||||||||||
Schedule of Share-based Payment Award, Equity Instruments Other than Options, Valuation Assumptions [Table Text Block] | ' | |||||||||||
The following table summarizes the weighted-average assumptions relating to our PSUs for the three and nine months ended September 30, 2013: | ||||||||||||
Expected term in years | 2.97 | |||||||||||
Volatility (%) | 50.11 | |||||||||||
Risk-free interest rate (%) | 0.67 | |||||||||||
Dividend rate (%) | — | |||||||||||
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | ' | |||||||||||
In determining the fair value of the shares subject to our ESPP, we use the Black-Scholes option pricing model that employs the following weighted-average assumptions: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, 2013 | September 30, 2012 | 30-Sep-13 | 30-Sep-12 | |||||||||
Expected term in years | 0.5 | 0.5 | 0.5 | 0.5 | ||||||||
Volatility (%) | 35.1 | 43.1 | 44 | 53.7 | ||||||||
Risk-free interest rate (%) | 0.1 | 0.2 | 0.1 | 0.1 | ||||||||
Dividend rate (%) | — | — | — | — | ||||||||
Additional information related to our ESPP is provided below (in 000’s, except per share amounts): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, 2013 | September 30, 2012 | 30-Sep-13 | 30-Sep-12 | |||||||||
Weighted-average fair value per share granted ($) | 5.04 | 6.63 | 6.11 | 7.06 | ||||||||
Shares issued under the ESPP | 343,761 | 288,884 | 672,397 | 576,833 | ||||||||
Weighted-average price per share issued ($) | 17.9 | 20.29 | 18.88 | 18.9 | ||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | |||||||||||
Stock-based compensation expense is included in costs and expenses as follows ($ amounts in 000’s): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Cost of product revenue | 91 | 85 | 277 | 237 | ||||||||
Cost of services revenue | 1,297 | 1,018 | 3,543 | 2,704 | ||||||||
Research and development | 3,548 | 2,525 | 9,605 | 6,774 | ||||||||
Sales and marketing | 5,215 | 3,879 | 13,927 | 10,797 | ||||||||
General and administrative | 1,627 | 1,323 | 4,432 | 3,416 | ||||||||
Total stock-based compensation expense | 11,778 | 8,830 | 31,784 | 23,928 | ||||||||
The following table summarizes stock-based compensation expense by award type ($ amounts in 000’s) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Stock options | 5,180 | 6,985 | 15,801 | 19,982 | ||||||||
RSUs | 5,408 | 576 | 12,439 | 576 | ||||||||
ESPP | 1,190 | 1,269 | 3,544 | 3,370 | ||||||||
Total stock-based compensation expense | 11,778 | 8,830 | 31,784 | 23,928 | ||||||||
Income Tax Benefit from Stock Option Plans [Table Text Block] | ' | |||||||||||
Total income tax benefit from employee stock option plans that is recognized in the consolidated statements of operations is as follows ($ amounts in 000’s): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Income tax benefit from employee stock option plans | 3,176 | 6,685 | 9,557 | 17,073 | ||||||||
Segment_and_Significant_Custom1
Segment and Significant Customer Information (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Revenue and property and equipment by geographic region [Table Text Block] | ' | |||||||||||
The following tables set forth revenue and property and equipment by geographic region ($ amounts in 000’s): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
Revenue | September 30, | September 30, | September 30, | September 30, | ||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Americas: | ||||||||||||
United States | 40,654 | 38,674 | 114,257 | 103,983 | ||||||||
Other Americas | 24,794 | 18,543 | 63,844 | 51,587 | ||||||||
Total Americas | 65,448 | 57,217 | 178,101 | 155,570 | ||||||||
Europe, Middle East and Africa (“EMEA”) | 51,373 | 45,566 | 149,500 | 130,116 | ||||||||
Asia Pacific and Japan (“APAC”) | 37,878 | 33,485 | 110,346 | 96,791 | ||||||||
Total revenue | 154,699 | 136,268 | 437,947 | 382,477 | ||||||||
During each of the three and nine months ended September 30, 2013, Exclusive Networks Group accounted for 11% of total revenue. During the three and nine months ended September 30, 2012, Exclusive Networks Group accounted for 10% and 11% of total revenue, respectively. No other customers accounted for more than 10% of our total revenue during the three and nine months ended September 30, 2013 and 2012. | ||||||||||||
Property and Equipment —Net | September 30, | December 31, | ||||||||||
2013 | 2012 | |||||||||||
Americas: | ||||||||||||
United States | 21,288 | 18,764 | ||||||||||
Canada | 3,924 | 4,376 | ||||||||||
Other Americas | 61 | 87 | ||||||||||
Total Americas | 25,273 | 23,227 | ||||||||||
EMEA | 1,459 | 1,213 | ||||||||||
APAC | 1,648 | 1,198 | ||||||||||
Total property and equipment—net | 28,380 | 25,638 | ||||||||||
Foreign_Currency_Derivatives_T
Foreign Currency Derivatives (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | ' | ||||
The notional amounts of forward exchange contracts to hedge balance sheet accounts as of September 30, 2013 and December 31, 2012 were ($ amounts in 000’s): | |||||
Buy/Sell | Notional | ||||
Balance Sheet Contracts: | |||||
Currency - As of September 30, 2013 | |||||
Canadian dollar | Buy | 25,367 | |||
Currency - As of December 31, 2012 | |||||
Canadian dollar | Buy | 17,968 | |||
Business_Combinations_Purchase
Business Combinations Purchase Price Allocation (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Business Combinations [Abstract] | ' | ||
Schedule of Purchase Price Allocation [Table Text Block] | ' | ||
The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date ($ amounts in 000’s): | |||
Cash and cash equivalents | 206 | ||
Other current assets | 501 | ||
Finite-lived intangible assets | 2,800 | ||
Indefinite-lived intangible assets | 2,600 | ||
Goodwill | 2,766 | ||
Other assets | 88 | ||
Total assets acquired | 8,961 | ||
Current liabilities | 1,078 | ||
Long-term liabilities | 1,898 | ||
Total liabilities assumed | 2,976 | ||
Total purchase price | 5,985 | ||
The following table summarizes the fair value of assets acquired and liabilities assumed as of the acquisition date ($ amounts in 000’s): | |||
Current assets | 459 | ||
Finite-lived intangible assets | 1,525 | ||
Total assets acquired | 1,984 | ||
Current liabilities | 234 | ||
Total liabilities assumed | 234 | ||
Total purchase price | 1,750 | ||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets—Net (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||
Schedule of Other Intangible Assets Major Class [Table Text Block] | ' | ||||||||
The following tables present other intangible assets ($ amounts in 000’s): | |||||||||
September 30, 2013 | |||||||||
Gross | Accumulated Amortization | Net | |||||||
Finite-lived other intangible assets: | |||||||||
Developed technology (1) | 9,909 | 2,520 | 7,389 | ||||||
Customer relationships | 500 | 43 | 457 | ||||||
Total other intangible assets | 10,409 | 2,563 | 7,846 | ||||||
(1) This amount includes the completed IPR&D acquired from Coyote of $2.6 million. During the three months ended September 30, 2013, we completed the associated IPR&D projects and transferred the IPR&D to developed technology. We started amortizing this developed technology as cost of revenue ratably on a straight-line basis over an estimated useful life of 6 years. | |||||||||
December 31, 2012 | |||||||||
Gross | Accumulated Amortization | Net | |||||||
Finite-lived other intangible assets: | |||||||||
Developed technology | 3,541 | 1,424 | 2,117 | ||||||
Total other intangible assets | 3,541 | 1,424 | 2,117 | ||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||
The following table summarizes estimated future amortization expense of other intangible assets with finite lives for future fiscal years ($ amounts in 000’s): | |||||||||
Amount | |||||||||
Fiscal Years: | |||||||||
2013 (remainder) | 615 | ||||||||
2014 | 2,095 | ||||||||
2015 | 1,679 | ||||||||
2016 | 1,287 | ||||||||
2017 | 900 | ||||||||
Thereafter | 1,270 | ||||||||
Total | 7,846 | ||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Schedule of Accumulated Other Comprehensive Income | ' | |||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income for the nine months ended September 30, 2013 ($ amounts in 000's): | ||||||||||||
Foreign Currency Translation Gains and Losses | Unrealized Gains and Losses on Investments | Tax benefit or provision related to items of other comprehensive income or loss | Total | |||||||||
Beginning balance | 1,948 | 1,758 | (615 | ) | 3,091 | |||||||
Other comprehensive income before reclassifications | (901 | ) | (819 | ) | 287 | (1,433 | ) | |||||
Amounts reclassified from accumulated other comprehensive income | — | (8 | ) | 3 | (5 | ) | ||||||
Net current-period other comprehensive income | (901 | ) | (827 | ) | 290 | (1,438 | ) | |||||
Ending balance | 1,047 | 931 | (325 | ) | 1,653 | |||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | |||||||||||
The following table provides details about the reclassification out of accumulated other comprehensive income for the nine months ended September 30, 2013 ($ amounts in 000s): | ||||||||||||
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Statement Where Net Income is Presented | ||||||||||
Unrealized gains on investments | (8 | ) | Other expense, net | |||||||||
Tax provision related to items of other comprehensive income or loss | 3 | Provision for income taxes | ||||||||||
Total reclassification for the period | (5 | ) |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2009 | Aug. 31, 2013 |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Reclassification adjustment, treasury stock to additional paid-in capital | $3 | $3 | ' | ' |
Shares repurchased and retired | ' | ' | 1,409,264 | ' |
Cost method investments, original cost | $2 | $2 | ' | $2 |
Performance Shares [Member] | Minimum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Award vesting period | ' | '2 years | ' | ' |
Performance Shares [Member] | Maximum [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Award vesting period | ' | '3 years | ' | ' |
Investment_in_a_PrivatelyHeld_1
Investment in a Privately-Held Company (Details) (USD $) | Sep. 30, 2013 | Aug. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, All Other Investments [Abstract] | ' | ' |
Cost method investments, original cost | $2 | $2 |
Financial_Instruments_and_Fair2
Financial Instruments and Fair Value , Investments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale, Amortized Cost | $693,524 | $614,853 |
Available-for-Sale, Unrealized Gains | 1,396 | 1,925 |
Available-for-Sale, Unrealized Losses | -461 | -167 |
Fair Value | 694,459 | 616,611 |
U.S. government and agency securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale, Amortized Cost | 2,000 | ' |
Available-for-Sale, Unrealized Gains | 0 | ' |
Available-for-Sale, Unrealized Losses | 0 | ' |
Fair Value | 2,000 | ' |
Corporate debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale, Amortized Cost | 566,962 | 529,738 |
Available-for-Sale, Unrealized Gains | 1,336 | 1,814 |
Available-for-Sale, Unrealized Losses | -441 | -161 |
Fair Value | 567,857 | 531,391 |
Commercial paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale, Amortized Cost | 81,955 | 39,229 |
Available-for-Sale, Unrealized Gains | 13 | 22 |
Available-for-Sale, Unrealized Losses | -6 | -6 |
Fair Value | 81,962 | 39,245 |
Municipal bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale, Amortized Cost | 34,554 | 36,787 |
Available-for-Sale, Unrealized Gains | 44 | 83 |
Available-for-Sale, Unrealized Losses | -14 | 0 |
Fair Value | 34,584 | 36,870 |
Certificates of deposit and term deposits [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-Sale, Amortized Cost | 8,053 | 9,099 |
Available-for-Sale, Unrealized Gains | 3 | 6 |
Available-for-Sale, Unrealized Losses | 0 | 0 |
Fair Value | $8,056 | $9,105 |
Financial_Instruments_and_Fair3
Financial Instruments and Fair Value , Gross Unrealized Losses, Fair Value (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less Than 12 Months, Fair Value | $265,738 | $141,470 |
Less Than 12 Months, Unrealized Losses | -454 | -162 |
12 Months or Greater, Fair Value | 5,309 | 5,010 |
12 Months or Greater, Unrealized Losses | -7 | -5 |
Total, Fair Value | 271,047 | 146,480 |
Total, Unrealized Losses | 461 | 167 |
Corporate debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less Than 12 Months, Fair Value | 232,721 | 133,006 |
Less Than 12 Months, Unrealized Losses | -434 | -156 |
12 Months or Greater, Fair Value | 5,309 | 5,010 |
12 Months or Greater, Unrealized Losses | -7 | -5 |
Total, Fair Value | 238,030 | 138,016 |
Total, Unrealized Losses | 441 | 161 |
Commercial paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less Than 12 Months, Fair Value | 20,076 | 8,464 |
Less Than 12 Months, Unrealized Losses | -6 | -6 |
12 Months or Greater, Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Losses | 0 | 0 |
Total, Fair Value | 20,076 | 8,464 |
Total, Unrealized Losses | 6 | 6 |
Municipal bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less Than 12 Months, Fair Value | 12,941 | ' |
Less Than 12 Months, Unrealized Losses | -14 | ' |
12 Months or Greater, Fair Value | 0 | ' |
12 Months or Greater, Unrealized Losses | 0 | ' |
Total, Fair Value | 12,941 | ' |
Total, Unrealized Losses | $14 | ' |
Financial_Instruments_and_Fair4
Financial Instruments and Fair Value , Contractual Maturities of Investments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Instruments and Fair Value [Abstract] | ' | ' |
Due within one year | $368,472 | $290,719 |
Due within one to three years | 325,987 | 325,892 |
Fair Value | $694,459 | $616,611 |
Financial_Instruments_and_Fair5
Financial Instruments and Fair Value , Fair Value Measurements (Details) (Recurring [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Estimate of Fair Value [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets, Fair Value Disclosure | $748,377 | $659,231 |
Estimate of Fair Value [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets, Fair Value Disclosure | 45,897 | 39,871 |
Estimate of Fair Value [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets, Fair Value Disclosure | 702,480 | 619,360 |
Estimate of Fair Value [Member] | U.S. government and agency securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 2,000 | 0 |
Estimate of Fair Value [Member] | U.S. government and agency securities [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 0 | 0 |
Estimate of Fair Value [Member] | U.S. government and agency securities [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 2,000 | 0 |
Estimate of Fair Value [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 574,578 | 531,391 |
Estimate of Fair Value [Member] | Corporate debt securities [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 0 | 0 |
Estimate of Fair Value [Member] | Corporate debt securities [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 574,578 | 531,391 |
Estimate of Fair Value [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 83,262 | 41,994 |
Estimate of Fair Value [Member] | Commercial paper [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 0 | 0 |
Estimate of Fair Value [Member] | Commercial paper [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 83,262 | 41,994 |
Estimate of Fair Value [Member] | Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 34,584 | 36,870 |
Estimate of Fair Value [Member] | Municipal bonds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 0 | 0 |
Estimate of Fair Value [Member] | Municipal bonds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 34,584 | 36,870 |
Estimate of Fair Value [Member] | Certificates of deposit and term deposits [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 8,056 | 9,105 |
Estimate of Fair Value [Member] | Certificates of deposit and term deposits [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 0 | 0 |
Estimate of Fair Value [Member] | Certificates of deposit and term deposits [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 8,056 | 9,105 |
Estimate of Fair Value [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 45,897 | 39,871 |
Estimate of Fair Value [Member] | Money market funds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 45,897 | 39,871 |
Estimate of Fair Value [Member] | Money market funds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 0 | 0 |
Reported as [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total Assets, Fair Value Disclosure | 748,377 | 659,231 |
Reported as [Member] | Cash equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 53,918 | 42,620 |
Reported as [Member] | Short-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | 368,472 | 290,719 |
Reported as [Member] | Long-term investments [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available-for-sale securities, Fair Value Disclosure | $325,987 | $325,892 |
Inventory_Details
Inventory (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Raw materials | $7,765 | $4,958 |
Finished goods | 39,111 | 16,102 |
Inventory | $46,876 | $21,060 |
Property_and_EquipmentNet_Deta
Property and Equipment—Net (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' | ' | ' |
Total property and equipment | $67,812,000 | ' | $67,812,000 | ' | $56,858,000 |
Less: accumulated depreciation | -39,432,000 | ' | -39,432,000 | ' | -31,220,000 |
Property and equipment - net | 28,380,000 | ' | 28,380,000 | ' | 25,638,000 |
Depreciation expense | 3,800,000 | 2,700,000 | 10,400,000 | 7,200,000 | ' |
Land [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' | ' | ' |
Total property and equipment | 13,895,000 | ' | 13,895,000 | ' | 13,895,000 |
Building and building improvements [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' | ' | ' |
Total property and equipment | 610,000 | ' | 610,000 | ' | 610,000 |
Evaluation units [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' | ' | ' |
Total property and equipment | 21,986,000 | ' | 21,986,000 | ' | 18,322,000 |
Computer equipment and software [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' | ' | ' |
Total property and equipment | 22,785,000 | ' | 22,785,000 | ' | 17,176,000 |
Furniture and fixtures [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' | ' | ' |
Total property and equipment | 1,709,000 | ' | 1,709,000 | ' | 1,501,000 |
Construction in-progress [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' | ' | ' |
Total property and equipment | 1,295,000 | ' | 1,295,000 | ' | 0 |
Leasehold improvements and tooling [Member] | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' | ' | ' |
Total property and equipment | $5,532,000 | ' | $5,532,000 | ' | $5,354,000 |
Net_Income_Per_Share_Calculati
Net Income Per Share , Calculation of Basic and Diluted (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Line Items] | ' | ' | ' | ' |
Net income | $11,029 | $17,206 | $32,257 | $45,329 |
Basic shares: | ' | ' | ' | ' |
Weighted-average common shares outstanding-basic (in shares) | 162,906 | 158,751 | 162,150 | 157,416 |
Diluted shares: | ' | ' | ' | ' |
Weighted-average common shares outstanding-basic (in shares) | 162,906 | 158,751 | 162,150 | 157,416 |
Effect of potentially dilutive securities: | ' | ' | ' | ' |
Weighted-average shares used to compute diluted net income per share (in shares) | 168,666 | 166,791 | 168,054 | 166,127 |
Net income per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.07 | $0.11 | $0.20 | $0.29 |
Diluted (in dollars per share) | $0.07 | $0.10 | $0.19 | $0.27 |
Stock Options [Member] | ' | ' | ' | ' |
Effect of potentially dilutive securities: | ' | ' | ' | ' |
Employee stock options and purchase rights (in shares) | 5,525 | 8,019 | 5,844 | 8,694 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Effect of potentially dilutive securities: | ' | ' | ' | ' |
Employee stock options and purchase rights (in shares) | 213 | 0 | 50 | 0 |
ESPP [Member] | ' | ' | ' | ' |
Effect of potentially dilutive securities: | ' | ' | ' | ' |
Employee stock options and purchase rights (in shares) | 22 | 21 | 10 | 17 |
Net_Income_Per_Share_Anti_Dilu
Net Income Per Share , Anti Dilutive Securities (Details) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities (in shares) | 8,463 | 6,377 | 10,146 | 7,277 |
Stock Options [Member] | Stock Compensation Plan [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities (in shares) | 6,640 | 5,686 | 7,364 | 6,847 |
Restricted Stock Units (RSUs) [Member] | Stock Compensation Plan [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities (in shares) | 1,416 | 388 | 2,383 | 130 |
ESPP [Member] | Stock Compensation Plan [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive securities (in shares) | 407 | 303 | 399 | 300 |
Deferred_Revenue_Details
Deferred Revenue (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Short-term | $271,302 | $247,268 |
Long-term | 128,871 | 115,917 |
Total deferred revenue | 400,173 | 363,185 |
Product [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | 5,114 | 5,411 |
Services [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | 389,571 | 348,548 |
Ratable and other revenue [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | $5,488 | $9,226 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' | ' |
Accrued warranty balance—beginning of the period | ' | ' | $2,309,000 | $2,582,000 |
Warranty costs incurred | ' | ' | 2,670,000 | 1,843,000 |
Provision for warranty, including warranty assumed from Xtera | ' | ' | 3,134,000 | 1,604,000 |
Changes in prior period estimates | ' | ' | 274,000 | -307,000 |
Accrued warranty balance—end of the period | 3,047,000 | 2,036,000 | 3,047,000 | 2,036,000 |
Rent expense | $2,400,000 | $2,100,000 | $7,100,000 | $6,500,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies , Minimum Operating Lease Payments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net | $2,400,000 | $2,100,000 | $7,100,000 | $6,500,000 |
Fiscal Years: | ' | ' | ' | ' |
2013 (remainder) | 2,675,000 | ' | 2,675,000 | ' |
2014 | 7,715,000 | ' | 7,715,000 | ' |
2015 | 5,342,000 | ' | 5,342,000 | ' |
2016 | 4,279,000 | ' | 4,279,000 | ' |
2017 | 3,738,000 | ' | 3,738,000 | ' |
Thereafter | 7,779,000 | ' | 7,779,000 | ' |
Total | $31,528,000 | ' | $31,528,000 | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies , Purchase Obligations (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Independent Contract Manufacturing [Member] | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' |
Open purchase orders and other contractual obligations | $10.20 |
Other Purchase Obligations [Member] | ' |
Unrecorded Unconditional Purchase Obligation [Line Items] | ' |
Open purchase orders and other contractual obligations | $46.60 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 209 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $21.11 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' | ' |
Income tax benefit from employee stock option plans | $3,176,000 | $6,685,000 | $9,557,000 | $17,073,000 |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | ' |
Expected term in years | '4 years 6 months 29 days | ' | '4 years 6 months 29 days | '4 years 7 months 6 days |
Volatility (%) | 47.80% | ' | 47.80% | ' |
Volatility (%), minimum | ' | ' | ' | 46.40% |
Volatility (%), maximum | ' | ' | ' | 51.90% |
Risk-free interest rate (%) | 1.20% | ' | 1.20% | ' |
Risk-free interest rate (%), minimum | ' | ' | ' | 0.70% |
Risk-free interest rate (%), maximum | ' | ' | ' | 0.90% |
Dividend rate (%) | 0.00% | ' | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' |
Balance - Beginning (in shares) | ' | ' | 18,571 | ' |
Forfeited (in shares) | ' | ' | -631 | ' |
Exercised (in shares) | ' | ' | -2,210 | ' |
Balance - End (in shares) | 15,939 | ' | 15,939 | ' |
Options vested and expected to vest (in shares) | 15,914 | ' | 15,914 | ' |
Balance - Ending (in shares) | 11,781 | ' | 11,781 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' |
Balance - Beginning (in dollars per share) | ' | ' | $12.40 | ' |
Forfeited (in dollars per share) | ' | ' | $21.82 | ' |
Exercised (in dollars per share) | ' | ' | $5.33 | ' |
Balance - Ending (in dollars per share) | $13.12 | ' | $13.12 | ' |
Options vested and expected to vest, Weighted average exercise price (in dollars per share) | $13.11 | ' | $13.11 | ' |
Options exercisable, Weighted average exercise price (in dollars per share) | $9.98 | ' | $9.98 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' | ' |
Options outstanding, Weighted average remaining contractual life (in years) | ' | ' | '3 years 6 months 16 days | ' |
Options vested and expected to vest, Weighted average remaining contractual life (in years) | ' | ' | '3 years 6 months 16 days | ' |
Options exercisable, Weighted average remaining contractual life (in years) | ' | ' | '3 years 19 days | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 134,415,000 | ' | 134,415,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 134,407,000 | ' | 134,407,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 129,937,000 | ' | 129,937,000 | ' |
Compensation cost not yet recognized | $46,000,000 | ' | $46,000,000 | ' |
Compensation cost not yet recognized period of recognition | ' | ' | '1 year 11 months 25 days | ' |
Stockholders_Equity_Additional
Stockholders' Equity , Additional information related to our stock options (Details) (Stock Options [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Options [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Compensation cost not yet recognized | $46,000,000 | ' | $46,000,000 | ' |
Compensation cost not yet recognized period of recognition | ' | ' | '1 year 11 months 25 days | ' |
Weighted-average fair value per share granted | $8.61 | $0 | $8.61 | $11.13 |
Intrinsic value of options exercised | 7,880,000 | 32,623,000 | 36,997,000 | 83,313,000 |
Fair value of options vested | $5,063,000 | $6,823,000 | $21,553,000 | $19,897,000 |
Stockholders_Equity_Restricted
Stockholders' Equity , Restricted Stock Units Activity (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Balance—December 31, 2012 | 830,000 |
Granted | 3,871,000 |
Forfeited | -251,000 |
Vested | -144,000 |
Balance—September 30, 2013 | 4,306,000 |
RSUs expected to vest—September 30, 2013 | 3,988,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Balance, weighted-average grant-date fair value per share (in dollars per share)—December 31, 2012 | $23.73 |
Granted, weighted-average grant-date fair value per share (in dollars per share) | $21.86 |
Forfeited, weighted-average grant-date fair value per share (in dollars per share) | $22.97 |
Vested, weighted-average grant-date fair value per share (in dollars per share) | $24.86 |
Balance, weighted-average grant-date fair value per share (in dollars per share)—September 30, 2013 | $21.98 |
RSUs expected to vest, weighted-average grant-date fair value per share (in dollars per share)—September 30, 2013 | $22.01 |
Compensation cost not yet recognized | $86.30 |
Compensation cost not yet recognized period of recognition | '3 years 4 months 28 days |
Stockholders_Equity_Shares_Wit
Stockholders' Equity , Shares Withheld for Taxes (Details) (USD $) | 9 Months Ended | 3 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Shares withheld for taxes | 45 | 45 |
Amount withheld for taxes | $966 | $966 |
Stockholders_Equity_Performanc
Stockholders' Equity , Performance Stock Units (Details) (Performance Shares [Member], USD $) | 3 Months Ended | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected term in years | '2 years 11 months 19 days | '2 years 11 months 19 days |
Volatility (%) | 50.11% | 50.11% |
Risk-free interest rate (%) | 0.67% | 0.67% |
Dividend rate (%) | 0.00% | 0.00% |
Granted (in shares) | ' | 180,000 |
Weighted-average fair value per share granted (in dollars per share) | ' | $22.06 |
Compensation cost not yet recognized | $3.80 | $3.80 |
Compensation cost not yet recognized period of recognition | ' | '2 years 10 months 2 days |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Settlement range | ' | 0.00% |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Settlement range | ' | 150.00% |
Stockholders_Equity_ESPP_Infor
Stockholders' Equity , ESPP Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Shares issued under the ESPP (in shares) | 0 | 0 | ' | ' |
Employee Stock Purchase Plan [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Expected term in years | '6 months | '6 months | '6 months | '6 months |
Volatility (%) | 35.10% | 43.10% | 44.00% | 53.70% |
Risk-free interest rate (%) | 0.10% | 0.20% | 0.10% | 0.10% |
Dividend rate (%) | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average fair value per share granted (in dollars per share) | $5.04 | $6.63 | $6.11 | $7.06 |
Shares issued under the ESPP (in shares) | 343,761 | 288,884 | 672,397 | 576,833 |
Weighted-average price per share issued (in dollars per share) | $17.90 | $20.29 | $18.88 | $18.90 |
Stockholders_Equity_Allocation
Stockholders' Equity , Allocation of Stock-Based Compensation Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $11,778 | $8,830 | $31,784 | $23,928 |
Cost of product revenue [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 91 | 85 | 277 | 237 |
Cost of services revenue [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 1,297 | 1,018 | 3,543 | 2,704 |
Research and development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 3,548 | 2,525 | 9,605 | 6,774 |
Selling and marketing [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 5,215 | 3,879 | 13,927 | 10,797 |
General and administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 1,627 | 1,323 | 4,432 | 3,416 |
Stock Options [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 5,180 | 6,985 | 15,801 | 19,982 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | 5,408 | 576 | 12,439 | 576 |
Employee Stock [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Total stock-based compensation expense | $1,190 | $1,269 | $3,544 | $3,370 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | ' | ' | ' | ' | ' |
Effective tax rate | 40.00% | 36.00% | 36.00% | 34.00% | ' |
Unrecognized tax benefits | $28.70 | ' | $28.70 | ' | $27.80 |
Unrecognized tax benefits which, if recognized, would favorably impact the effective tax rate | 28.3 | ' | 28.3 | ' | ' |
Accrued interest and penalties related to uncertain tax provisions | $2.30 | ' | $2.30 | ' | ' |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Benefit Plan [Abstract] | ' | ' | ' | ' |
Matching contributions to the RRSP and 401(k) Plans | $0.60 | $0.40 | $1.60 | $1.40 |
Segment_and_Significant_Custom2
Segment and Significant Customer Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Concentration risk, percentage | 11.00% | 10.00% | 11.00% | 11.00% | ' |
Revenue | $154,699 | $136,268 | $437,947 | $382,477 | ' |
Property and equipment - net | 28,380 | ' | 28,380 | ' | 25,638 |
Americas [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 65,448 | 57,217 | 178,101 | 155,570 | ' |
Property and equipment - net | 25,273 | ' | 25,273 | ' | 23,227 |
United States | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 40,654 | 38,674 | 114,257 | 103,983 | ' |
Property and equipment - net | 21,288 | ' | 21,288 | ' | 18,764 |
Canada [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Property and equipment - net | 3,924 | ' | 3,924 | ' | 4,376 |
Other Americas [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 24,794 | 18,543 | 63,844 | 51,587 | ' |
Property and equipment - net | 61 | ' | 61 | ' | 87 |
EMEA [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 51,373 | 45,566 | 149,500 | 130,116 | ' |
Property and equipment - net | 1,459 | ' | 1,459 | ' | 1,213 |
APAC [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Revenue | 37,878 | 33,485 | 110,346 | 96,791 | ' |
Property and equipment - net | $1,648 | ' | $1,648 | ' | $1,198 |
Foreign_Currency_Derivatives_D
Foreign Currency Derivatives (Details) (Canada, Dollars, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Canada, Dollars | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount of Foreign Currency Derivative Purchase Contracts | $25,367 | $17,968 |
Business_Combinations_Details
Business Combinations (Details) (USD $) | Sep. 30, 2013 | Sep. 13, 2013 | Mar. 21, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 21, 2013 | Sep. 30, 2013 | Mar. 21, 2013 | Dec. 07, 2012 | Mar. 31, 2013 | Sep. 30, 2012 | Mar. 08, 2012 | Mar. 21, 2013 | Mar. 21, 2013 | Mar. 21, 2013 |
Xtera [Member] | Coyote Point Systems Inc [Member] | Coyote Point Systems Inc [Member] | Coyote Point Systems Inc [Member] | Coyote Point Systems Inc [Member] | Coyote Point Systems Inc [Member] | Coyote Point Systems Inc [Member] | XDN, Inc [Member] | IntruGuard Devices, Inc [Member] | IntruGuard Devices, Inc [Member] | IntruGuard Devices, Inc [Member] | Contingent consideration payable after eighteen months [Member] | Contingent consideration payable after two years [Member] | In Process Research and Development [Member] | ||
Customer Relationships [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Developed Technology [Member] | Developed Technology [Member] | Coyote Point Systems Inc [Member] | Coyote Point Systems Inc [Member] | Coyote Point Systems Inc [Member] | ||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payments to acquire business | ' | $1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, contingent consideration, at fair value | ' | 100,000 | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased tangible assets | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53,000 | ' | ' | ' |
Purchased identifiable intangible assets | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' |
Liabilities assumed | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 43,000 | ' | ' | ' |
Acquired finite-lived intangible assets, amount | ' | ' | ' | ' | 500,000 | 500,000 | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' |
In-process research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 |
Finite-lived intangible asset, useful life | ' | ' | ' | '6 years | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 2,800,000 | ' | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total consideration | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | 500,000 | ' | ' | 1,000,000 | ' | ' | ' |
Amount withheld in escrow | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' |
Released amounts previously withheld in escrow | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 200,000 | ' | ' | ' | ' |
Potential cash payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | 2,000,000 | ' |
Current assets | ' | 459,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | ' | ' | 206,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other current assets | ' | ' | 501,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived intangible assets | ' | 1,525,000 | 2,800,000 | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' |
Indefinite-lived intangible assets | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | ' | 2,766,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | 88,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets acquired | ' | 1,984,000 | 8,961,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current liabilities | ' | 234,000 | 1,078,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term liabilities | ' | ' | 1,898,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities assumed | ' | 234,000 | 2,976,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase price | ' | $1,750,000 | $5,985,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets—Net (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 21, 2013 | Mar. 21, 2013 | Sep. 30, 2013 | Mar. 21, 2013 | Mar. 21, 2013 |
Developed Technology [Member] | Developed Technology [Member] | Developed Technology [Member] | Developed Technology [Member] | Developed Technology [Member] | Customer Relationships [Member] | Coyote Point Systems Inc [Member] | Coyote Point Systems Inc [Member] | Coyote Point Systems Inc [Member] | Coyote Point Systems Inc [Member] | Coyote Point Systems Inc [Member] | |||
Developed Technology [Member] | Customer Relationships [Member] | Customer Relationships [Member] | In Process Research and Development [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $2,800,000 | ' | ' | ' | ' | ' | ' | ' | $2,800,000 | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived other intangible assets, gross | 10,409,000 | ' | 9,909,000 | ' | 9,909,000 | ' | 3,541,000 | ' | ' | ' | ' | ' | ' |
Customer relationships, gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | 500,000 | 500,000 | ' |
Accumulated amortization | 2,563,000 | 1,424,000 | 2,520,000 | ' | 2,520,000 | ' | 1,424,000 | 43,000 | ' | ' | ' | ' | ' |
In-process research and development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 |
Total other intangible assets | ' | 3,541,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total other intangible assets, net | ' | 2,117,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | ' | ' | 400,000 | 300,000 | 1,100,000 | 700,000 | ' | ' | ' | ' | ' | ' | ' |
2013 (remainder) | 615,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 2,095,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 1,679,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 1,287,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 1,270,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | $7,846,000 | ' | $7,389,000 | ' | $7,389,000 | ' | $2,117,000 | $457,000 | ' | ' | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Changes in accumulated balances of other comprehensive income) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | ' |
Beginning balance, tax | ($615) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Tax [Abstract] | ' |
Other comprehensive income before relassifications, tax | 287 |
Amounts reclassified from accumulated other comprehensive income, tax | 3 |
Net current-period other comprehensive income, tax | 290 |
Ending balance, tax | -325 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' |
Beginning balance, net of tax | 3,091 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' |
Other comprehensive income before relassifications, net of tax | -1,433 |
Amounts reclassified from accumulated other comprehensive income, net of tax | -5 |
Net current-period other comprehensive income, net of tax | -1,438 |
Ending balance, net of tax | 1,653 |
Foreign Currency Translation Gains and Losses [Member] | ' |
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | ' |
Beginning balance, before tax | 1,948 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax [Abstract] | ' |
Other comprehensive income before relassifications, before tax | -901 |
Amounts reclassified from accumulated other comprehensive income, before tax | 0 |
Net current-period other comprehensive income, before tax | -901 |
Ending balance, before tax | 1,047 |
Unrealized Gains and Losses on Investments [Member] | ' |
Accumulated Other Comprehensive Income (Loss), Before Tax [Roll Forward] | ' |
Beginning balance, before tax | 1,758 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax [Abstract] | ' |
Other comprehensive income before relassifications, before tax | -819 |
Amounts reclassified from accumulated other comprehensive income, before tax | -8 |
Net current-period other comprehensive income, before tax | -827 |
Ending balance, before tax | $931 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Reclassification out of accumulated other comprehensive income) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Provision for income taxes | ($7,381) | ($9,565) | ($18,142) | ($23,397) |
Total reclassification for the period | ' | ' | 5 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Other expense, net | ' | ' | -8 | ' |
Provision for income taxes | ' | ' | 3 | ' |
Total reclassification for the period | ' | ' | $5 | ' |