Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 18, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'FORTINET INC | ' | ' |
Entity Central Index Key | '0001262039 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Well Known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 162,853,313,000 | ' |
Entity Public Float | ' | ' | $2,122,539,878 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $115,873 | $122,975 |
Short-term investments | 375,497 | 290,719 |
Accounts receivable, net of allowance for doubtful accounts and sales returns of $4,605 and $2,382 as of December 31, 2013 and 2012, respectively | 130,471 | 107,642 |
Inventory | 48,672 | 21,060 |
Deferred tax assets | 50,980 | 13,663 |
Prepaid expenses and other current assets | 14,053 | 13,215 |
Total current assets | 735,546 | 569,274 |
PROPERTY AND EQUIPMENT—Net | 36,652 | 25,638 |
DEFERRED TAX ASSET—Non-current | 30,058 | 48,525 |
LONG-TERM INVESTMENTS | 351,675 | 325,892 |
GOODWILL | 2,872 | 0 |
OTHER INTANGIBLE ASSETS—Net | 6,841 | 2,117 |
OTHER ASSETS | 4,820 | 4,051 |
TOTAL ASSETS | 1,168,464 | 975,497 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 35,599 | 20,816 |
Accrued liabilities | 27,380 | 18,481 |
Accrued payroll and compensation | 34,997 | 28,957 |
Income taxes payable | 21,421 | 3,782 |
Deferred revenue | 293,664 | 247,268 |
Total current liabilities | 413,061 | 319,304 |
DEFERRED REVENUE—Non-current | 138,964 | 115,917 |
INCOME TAXES PAYABLE—Non-current | 30,208 | 28,778 |
OTHER LIABILITIES | 471 | 564 |
Total liabilities | 582,704 | 464,563 |
COMMITMENTS AND CONTINGENCIES (Note 10) | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Common stock, $0.001 par value — 300,000 shares authorized; 161,535 and 161,757 shares issued and 161,535 and 160,348 shares outstanding as of December 31, 2013 and December 31, 2012, respectively | 161 | 162 |
Additional paid-in capital | 462,644 | 400,075 |
Treasury stock | 0 | -2,995 |
Accumulated other comprehensive income | 1,092 | 3,091 |
Retained earnings | 121,863 | 110,601 |
Total stockholders' equity | 585,760 | 510,934 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,168,464 | $975,497 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets Parenthetical (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Allowance for doubtful accounts and sales returns | $4,605 | $2,382 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock, shares authorized | 300,000 | 300,000 |
Common Stock, shares issued | 161,535 | 161,757 |
Common Stock, shares outstanding | 161,535 | 160,348 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
REVENUE: | ' | ' | ' |
Product | $278,046 | $248,948 | $197,408 |
Services | 329,723 | 274,043 | 220,268 |
Ratable and other revenue | 7,528 | 10,648 | 15,900 |
Total revenue | 615,297 | 533,639 | 433,576 |
COST OF REVENUE: | ' | ' | ' |
Product | 114,611 | 93,971 | 73,201 |
Services | 64,123 | 50,682 | 35,486 |
Ratable and other revenue | 1,909 | 2,767 | 4,911 |
Total cost of revenue | 180,643 | 147,420 | 113,598 |
GROSS PROFIT: | ' | ' | ' |
Product | 163,435 | 154,977 | 124,207 |
Services | 265,600 | 223,361 | 184,782 |
Ratable and other revenue | 5,619 | 7,881 | 10,989 |
Total gross profit | 434,654 | 386,219 | 319,978 |
OPERATING EXPENSES: | ' | ' | ' |
Research and development | 102,660 | 81,078 | 63,577 |
Sales and marketing | 224,991 | 179,155 | 145,532 |
General and administrative | 34,913 | 25,511 | 21,965 |
Total operating expenses | 362,564 | 285,744 | 231,074 |
OPERATING INCOME | 72,090 | 100,475 | 88,904 |
INTEREST INCOME | 5,306 | 5,006 | 3,523 |
OTHER EXPENSE—Net | -1,455 | -485 | -354 |
INCOME BEFORE INCOME TAXES | 75,941 | 104,996 | 92,073 |
PROVISION FOR INCOME TAXES | 31,668 | 38,160 | 29,581 |
NET INCOME | $44,273 | $66,836 | $62,492 |
Net income per share attributable to common stockholders (Note 8): | ' | ' | ' |
Basic (in dollars per share) | $0.27 | $0.42 | $0.41 |
Diluted (in dollars per share) | $0.26 | $0.40 | $0.38 |
Weighted-average shares outstanding: | ' | ' | ' |
Basic (in shares) | 162,435 | 158,074 | 152,581 |
Diluted (in shares) | 168,183 | 166,329 | 163,781 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $44,273 | $66,836 | $62,492 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation (losses) gains | -1,617 | 524 | -553 |
Unrealized (losses) gains on investments | -587 | 3,331 | -1,702 |
Unrealized losses on cash flow hedges | 0 | 0 | -74 |
Tax benefit (provision) related to items of other comprehensive income or loss | 205 | -1,166 | 550 |
Other comprehensive (loss) income, net of tax | -1,999 | 2,689 | -1,779 |
Comprehensive income | $42,274 | $69,525 | $60,713 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | $232,453 | $150 | ($2,995) | $251,844 | $2,181 | ($18,727) |
Balance, shares at Dec. 31, 2010 | ' | 150,172,000 | -1,409,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Exercise of stock options (in shares) | ' | 6,229,000 | ' | ' | ' | ' |
Exercise of stock options | 19,968 | 6 | ' | 19,962 | ' | ' |
Stock-based compensation expense | 19,015 | ' | ' | 19,015 | ' | ' |
Income tax benefit from employee stock option plans | 26,205 | ' | ' | 26,205 | ' | ' |
Net unrealized gain (loss) on investments—net of taxes | -1,153 | ' | ' | ' | -1,153 | ' |
Net unrealized loss on derivatives qualifying as cash flow hedges | -74 | ' | ' | ' | -74 | ' |
Net change in cumulative translation adjustments | -552 | ' | ' | ' | -552 | ' |
Net income | 62,492 | ' | ' | ' | ' | 62,492 |
Balance at Dec. 31, 2011 | 358,354 | 156 | -2,995 | 317,026 | 402 | 43,765 |
Balance, shares at Dec. 31, 2011 | ' | 156,401,000 | -1,409,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Exercise of stock options (in shares) | ' | 4,779,000 | ' | ' | ' | ' |
Exercise of stock options | 27,183 | 5 | ' | 27,178 | ' | ' |
Issuance of common stock in connection with employee stock purchase plan (in shares) | ' | 577,000 | ' | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan | 10,904 | 1 | ' | 10,903 | ' | ' |
Stock-based compensation expense | 30,690 | ' | ' | 30,690 | ' | ' |
Income tax benefit from employee stock option plans | 14,278 | ' | ' | 14,278 | ' | ' |
Net unrealized gain (loss) on investments—net of taxes | 2,165 | ' | ' | ' | 2,165 | ' |
Net change in cumulative translation adjustments | 524 | ' | ' | ' | 524 | ' |
Net income | 66,836 | ' | ' | ' | ' | 66,836 |
Balance at Dec. 31, 2012 | 510,934 | 162 | -2,995 | 400,075 | 3,091 | 110,601 |
Balance, shares at Dec. 31, 2012 | ' | 161,757,000 | -1,409,000 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Exercise of stock options (in shares) | ' | 2,488,000 | ' | ' | ' | ' |
Exercise of stock options | 12,888 | 2 | ' | 12,886 | ' | ' |
Issuance of common stock in connection with employee stock purchase plan (in shares) | ' | 672,000 | ' | ' | ' | ' |
Issuance of common stock in connection with employee stock purchase plan | 12,696 | 1 | ' | 12,695 | ' | ' |
Issuance of common stock upon vesting of restricted stock units | ' | 228,000 | ' | ' | ' | ' |
Tax withholding upon vesting of restricted stock awards (in shares) | ' | -70,000 | ' | ' | ' | ' |
Tax withholding upon vesting of restricted stock awards | -1,452 | ' | ' | -1,452 | ' | ' |
Repurchase and retirement of common stock (in shares) | 2,100,000 | -3,540,000 | 1,409,000 | ' | ' | ' |
Repurchase and retirement of common stock | -38,949 | -4 | 2,995 | -8,929 | ' | -33,011 |
Stock-based compensation expense | 43,909 | ' | ' | 43,909 | ' | ' |
Income tax benefit from employee stock option plans | 3,460 | ' | ' | 3,460 | ' | ' |
Net unrealized gain (loss) on investments—net of taxes | -382 | ' | ' | ' | -382 | ' |
Net change in cumulative translation adjustments | -1,617 | ' | ' | ' | -1,617 | ' |
Net income | 44,273 | ' | ' | ' | ' | 44,273 |
Balance at Dec. 31, 2013 | $585,760 | $161 | $0 | $462,644 | $1,092 | $121,863 |
Balance, shares at Dec. 31, 2013 | ' | 161,535,000 | 0 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $44,273 | $66,836 | $62,492 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 15,623 | 11,564 | 6,989 |
Amortization of investment premiums | 11,634 | 12,962 | 12,515 |
Stock-based compensation expense | 43,909 | 30,690 | 19,015 |
Excess tax benefit from employee stock option plans | -2,974 | -12,069 | -19,829 |
Other non-cash items, net | 961 | 881 | 22 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable—net | -22,080 | -12,120 | -23,246 |
Inventory | -35,093 | -11,303 | -6,034 |
Deferred tax assets | -18,750 | -9,254 | -7,874 |
Prepaid expenses and other current assets | -907 | 791 | -2,915 |
Other assets | 1,243 | 2,470 | 227 |
Accounts payable | 10,485 | 961 | 6,801 |
Accrued liabilities | 1,654 | 301 | 1,765 |
Accrued payroll and compensation | 6,013 | 4,599 | 4,773 |
Deferred revenue | 68,871 | 68,292 | 42,177 |
Income taxes payable | 22,522 | 28,265 | 35,964 |
Net cash provided by operating activities | 147,384 | 183,866 | 132,842 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchase of investments | -552,778 | -601,087 | -516,906 |
Sales of investments | 57,897 | 26,268 | 44,503 |
Maturities of investments | 369,659 | 415,440 | 311,824 |
Purchases of property and equipment | -13,877 | -22,083 | -3,624 |
Payments made in connection with acquisitions, net of cash acquired | -7,635 | -1,249 | -2,623 |
Net cash used in investing activities | -146,734 | -182,711 | -166,826 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from issuance of common stock | 25,584 | 38,087 | 19,968 |
Taxes paid related to net share settlement of equity awards | -1,452 | 0 | 0 |
Excess tax benefit from stock-based compensation | 2,974 | 12,069 | 19,829 |
Repurchase and retirement of common stock | -33,529 | 0 | 0 |
Net cash (used in) provided by financing activities | -6,423 | 50,156 | 39,797 |
EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | -1,329 | -326 | -682 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -7,102 | 50,985 | 5,131 |
CASH AND CASH EQUIVALENTS—Beginning of year | 122,975 | 71,990 | 66,859 |
CASH AND CASH EQUIVALENTS—End of year | 115,873 | 122,975 | 71,990 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ' | ' | ' |
Cash paid (refunded) for income taxes, net | 25,445 | 17,088 | -305 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' | ' |
Purchase of property and equipment not yet paid | 4,253 | 398 | 440 |
Liability incurred in connection with business acquisition | 100 | 201 | 0 |
Liability incurred for repurchase of common stock | $5,420 | $0 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||
Business—Fortinet, Inc. (“Fortinet”) was incorporated in Delaware in November 2000 and is a leading provider of network security appliances and UTM network security solutions to enterprises, service providers and governmental entities worldwide. Fortinet’s solutions are designed to integrate multiple levels of security protection, including firewall, virtual private networking, application control, anti-malware, intrusion prevention, web filtering, vulnerability management, anti-spam and WAN acceleration. | |||||||||
Basis of Presentation and Preparation—The consolidated financial statements of Fortinet and its wholly owned subsidiaries (collectively, the “Company,” “we,” “us” or “our”) have been prepared in accordance with GAAP. All intercompany transactions and balances have been eliminated in consolidation. | |||||||||
During the third quarter of fiscal 2013, we recorded an out-of-period adjustment of $3.0 million to correct the presentation on our consolidated balance sheets relating to our repurchase of 1,409,264 shares during fiscal 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 correction is not material to the current or prior fiscal periods. The shares that we repurchased in fiscal 2009 were retired immediately after repurchase. There was no outstanding treasury stock balance as of December 31, 2013. | |||||||||
Use of Estimates—The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates include implicit service periods for revenue recognition, litigation and settlement costs and other loss contingencies, sales returns and allowances, reserve for bad debt, inventory valuation, warranty reserve, goodwill and other long-lived assets, investments, stock-based compensation, the accounting for income taxes related to deferred tax asset balances and reserves, and the accounting for business combinations. We base our estimates on historical experience and also on assumptions that we believe are reasonable. Actual results could differ from those estimates. | |||||||||
Certain Significant Risks and Uncertainties—We are subject to certain risks and uncertainties that could have a material adverse effect on our future financial position or results of operations, such as the following: changes in level of demand for our products and services, the timing and success of new product and service introductions by us or our competitors, price and sales competition and our ability to adapt to changing market conditions and dynamics such as changes in end-customer, distributor or reseller requirements or market needs, changes in expenses caused, for example, by fluctuations in foreign currency exchange rates, management of inventory, internal control over financial reporting, market acceptance of our new products and services, demand for UTM products and services in general, seasonality, failure of our channel partners to perform or other disruption in our channel, the quality of our products and services and the market perception of our response to new viruses or security breaches, general economic conditions, challenges in doing business outside of the United States, changes in customer relationships, litigation, or claims against us based on intellectual property, patent, product regulatory or other factors, product obsolescence, and our ability to attract and retain qualified employees. | |||||||||
We rely solely on suppliers and independent contract manufacturers for certain of our components and one third-party logistics company for distribution of certain of our products, which is located outside of U.S. The inability of any of these parties to fulfill our supply and logistics requirements could negatively impact our future operating results. | |||||||||
Concentration of Credit Risk—Financial instruments that subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term and long-term investments, and accounts receivable. We maintain our cash, cash equivalents, and investments in fixed income securities with major financial institutions, which our management assesses to be of high credit quality, in order to limit the exposure of each investment. Deposits held with banks may exceed the amount of insurance provided on such deposits. | |||||||||
Credit risk with respect to accounts receivable in general is diversified due to the number of different entities comprising our customer base and their location throughout the world. We perform ongoing credit evaluations of our customers and generally do not require collateral on accounts receivable. We maintain reserves for estimated potential credit losses. | |||||||||
As of December 31, 2013, one distributor, Exclusive Networks Group accounted for 13% of total accounts receivable. As of December 31, 2012, no single customer accounted for more than 10% of total accounts receivable. | |||||||||
During fiscal 2013 and fiscal 2012, one distributor, Exclusive Networks Group accounted for 12% and 11% of total revenue, respectively. During fiscal 2011, no single customer or distributor accounted for more than 10% of total revenue. | |||||||||
Financial Instruments and Fair Value—We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Due to their short-term nature, the carrying amounts reported in the consolidated financial statements approximate the fair value for accounts receivable, accounts payable, accrued liabilities, and accrued payroll and compensation. | |||||||||
Comprehensive Income—Comprehensive income includes certain changes in equity from non-owner sources that are excluded from net income. Specifically, cumulative foreign currency translation adjustments, unrealized gains and losses on available-for-sale investments, and unrealized gains and losses on cash flow hedges are included in comprehensive income. | |||||||||
Foreign Currency Translation and Transaction Gains and Losses—Assets and liabilities of foreign subsidiaries with non-U.S. dollar functional currency are translated into U.S. dollars using the exchange rates in effect at the balance sheet dates and expenses are translated using average exchange rates during the period. The resulting foreign translation adjustments are included in the consolidated balance sheets in the stockholders' equity section as a component of accumulated other comprehensive income (loss) and are included in the consolidated statements of comprehensive income. Foreign currency transaction losses of $1.5 million, $0.5 million and $0.4 million, are included in other expense, net for fiscal 2013, 2012 and 2011, respectively. | |||||||||
Cash, Cash Equivalents and Available-for-sale Investments—We consider all highly liquid investments, purchased with original maturities of three months or less, to be cash equivalents. Cash and cash equivalents consist of balances with banks, and highly liquid investments in money market funds, commercial paper, and certificates of deposit and term deposits. | |||||||||
We classify our investments as available-for-sale at the time of purchase since it is our intent that these investments are available for current operations, and include these investments on our balance sheet as either short-term or long-term investments depending on their maturity at the time of purchase. Investments with original maturities greater than three months that mature less than one year from the consolidated balance sheet date are classified as short-term investments. Investments with maturities greater than one year from the consolidated balance sheet date are classified as long-term investments. | |||||||||
Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. We consult with our investment managers and consider available quantitative and qualitative evidence in evaluating potential impairment of our investments on a quarterly basis. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. | |||||||||
For debt securities in an unrealized loss position which is deemed to be other-than-temporary, the difference between the security’s then-current amortized cost basis and fair value is separated into (i) the amount of the impairment related to the credit loss (i.e., the credit loss component) and (ii) the amount of the impairment related to all other factors (i.e., the non-credit loss component). The credit loss component is recognized in earnings. The non-credit loss component is recognized in accumulated other comprehensive loss. | |||||||||
Other 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 Other assets 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. | |||||||||
Inventory—Inventory is recorded at the lower of average cost or market, after we give appropriate consideration to obsolescence and inventory in excess of anticipated future demand. Certain inventories are held at consignment locations. This consigned inventory was $4.3 million as of December 31, 2013, of which $4.1 million is raw materials and $0.2 million is finished goods and $2.3 million as of December 31, 2012, of which $2.1 million is raw materials and $0.2 million is finished goods. In assessing the ultimate recoverability of inventory, we are required to make estimates regarding future customer demand, the timing of new product introductions, economic trends and market conditions. If the actual product demand is significantly lower than forecasted, we could be required to record additional inventory write-downs, which could have an adverse impact on our gross margins and profitability. | |||||||||
Property and Equipment—Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: | |||||||||
Estimated Useful Lives | |||||||||
Building and building improvements | 2 years | ||||||||
Evaluation units | 1 year | ||||||||
Computer software | 1 year | ||||||||
Computer equipment and tooling | 2 years | ||||||||
Furniture and fixtures | 3 years | ||||||||
Leasehold improvements | Shorter of useful life or lease term | ||||||||
Impairment of Long-Lived Assets—We evaluate events and changes in circumstances that could indicate carrying amounts of long-lived assets, including intangible assets, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future undiscounted cash flows is less than the carrying amount of those assets, we record an impairment charge in the period in which we make the determination. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Certain purchased intangible assets were measured at fair value resulting in an impairment charge of $0.5 million, which is recorded as Cost of sales in the consolidated statements of operations during fiscal 2013. | |||||||||
Goodwill —Goodwill represents the excess of purchase consideration over the estimated fair value of net assets of businesses acquired in a business combination. Goodwill 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 December 31, 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 is less than 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. We have not been required to perform this second step of the process because the fair value of our reporting unit exceeded the net book value as of December 31, 2013. | |||||||||
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 for impairment between annual tests in the presence of impairment indicators. | |||||||||
Other Intangible Assets—Intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed using the straight-line method over the estimated economic lives of the assets, which range from one to six years. | |||||||||
Deferred Revenue—Deferred revenue consists of amounts that have been invoiced but that have not yet been recognized as revenue. This generally includes subscription and support services which are invoiced upfront and delivered over twelve months or longer. | |||||||||
Income Taxes—We record income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, generally all expected future events other than enactments or changes in the tax law or rates are considered. We assess the likelihood that some portion or all of our deferred tax assets will be recovered from future taxable income within the respective jurisdictions, and to the extent we believe that recovery does not meet the “more-likely-than-not” standard, based solely on its technical merits as of the reporting date, we establish a valuation allowance. | |||||||||
We account for uncertain tax positions in accordance with GAAP, which defines the confidence level that a tax position must meet in order to be recognized in the financial statements. The tax effects of a position are recognized only if it is “more likely than not” to be sustained based solely on its technical merits as of the reporting date. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. | |||||||||
We operate in various tax jurisdictions and are subject to audit by various tax authorities. We provide for tax contingencies whenever it is deemed more likely than not that a tax asset has been impaired or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, relevant tax law and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies. | |||||||||
Stock-Based Compensation Expense—We have elected to use the Black-Scholes option pricing model to determine the fair value of our employee stock options and ESPP. The fair value of RSUs is based on the closing market price of our common stock on the date of grant. Stock-based compensation expense is amortized on a straight-line basis, net of estimated forfeitures. PSUs are 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 date of grant and is based on the market price of our common stock on the date of grant 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. | |||||||||
Advertising Expense—Advertising costs are expensed when incurred and are included in operating expenses in the accompanying consolidated statements of operations. Our advertising expenses were not significant for any periods presented. | |||||||||
Research and Development Costs—Research and development costs are expensed as incurred. | |||||||||
Software Development Costs—The costs to develop software have not been capitalized as we believe our current software development process is essentially completed concurrent with the establishment of technological feasibility. | |||||||||
Revenue Recognition—We derive revenue from sales of products, including appliances and software, and services, including subscription, support and other services. The majority of our products are hardware appliances containing software components that function together to provide the essential functionality of the product.We record revenue from our hardware appliances in accordance with general revenue recognition accounting guidance. | |||||||||
Our product revenue also includes software products that may operate on the hardware appliances, but are not considered essential to the functionality of the hardware and are subject to industry-specific software revenue recognition guidance. Certain of our software, when sold with our appliances, are considered essential to their functionality and as a result are accounted for as non-software deliverables. However, this same software, if sold separately, is accounted for under industry-specific software revenue recognition guidance. | |||||||||
When a sales arrangement contains multiple elements, such as hardware appliances, software, customer support services, and/or professional services, we allocate revenue to each element based on a selling price hierarchy. In multiple element arrangements where software is more-than-incidental, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the selling price hierarchy. When applying the relative selling price method, we determine the selling price for each deliverable using vendor-specific objective evidence (“VSOE”) of selling price, if it exists, or third-party evidence (“TPE”) of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, we use our best estimate of selling (“BESP”) price for that deliverable. Revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for each element. | |||||||||
VSOE of fair value for elements of an arrangement is based upon the normal pricing practices for those services when sold separately. In establishing VSOE, we require that a substantial majority of the selling prices for a service fall within a reasonably narrow pricing range, generally evidenced by a substantial majority of such historical stand-alone transactions falling within a reasonably narrow range of the median rates. | |||||||||
We are typically not able to determine TPE for our products or services. TPE is determined based on competitor prices for similar deliverables when sold separately which is generally unavailable. | |||||||||
For our hardware appliances, we use BESP as our selling price. For our support and other services, we generally use VSOE as our selling price estimate. When we are unable to establish a selling price using VSOE for our support and other services, we use BESP in our allocation of arrangement consideration. The objective of BESP is to determine the price at which we would transact a sale if the product or service were sold on a stand-alone basis. We determine BESP for a product or service by considering multiple factors including, but not limited to, cost of products, gross margin objectives, pricing practices, geographies, customer classes and distribution channels. | |||||||||
We recognize revenue for our software sales based on industry-specific software revenue recognition guidance. Under industry-specific software revenue recognition guidance, we use the residual method to recognize revenue when a product agreement includes one or more elements to be delivered and VSOE of fair value for all undelivered elements exists. If evidence of the fair value of one or more undelivered elements does not exist, all revenue is generally deferred and recognized when delivery of those elements occurs or when fair value can be established. When the undelivered element for which we do not have VSOE of fair value is support, revenue for the entire arrangement is recognized ratably over the support period. | |||||||||
Revenue is recognized when all of the following criteria have been met: | |||||||||
• | Persuasive evidence of an arrangement exists. Binding contracts or purchase orders are generally used to determine the existence of an arrangement. | ||||||||
• | Delivery has occurred or services have been rendered. Delivery occurs when we fulfill an order and title and risk of loss has been transferred. Services revenue is deferred and recognized ratably over the period during which the services are to be performed, which is typically from one to three years. Professional service revenue is recognized upon delivery or completion of performance. | ||||||||
• | Sales price is fixed or determinable. We assess whether the sales price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. In the event payment terms differ from our standard business practices, the sales price is deemed to be not fixed or determinable and revenue is recognized when the payments become due, provided the remaining criteria for revenue recognition have been met. In the event the sales price is subject to refund or adjustment, the sales price is deemed to be not fixed or determinable and revenue is recognized when the refund or adjustment privileges expire provided the remaining criteria for revenue recognition have been met. | ||||||||
• | Collectibility is probable. We assess collectibility based primarily on creditworthiness as determined by credit checks and analysis, as well as payment history. | ||||||||
For arrangements which include end-customer acceptance criteria, revenue is recognized upon acceptance. We recognize product revenue on sales to distributors that have no general right of return and direct sales to end-customers upon shipment, once all other revenue recognition criteria have been met. Certain distributors that stock our products are granted stock rotation rights,limited rights of return as well as rebates for sales of our products. The arrangement fee for this group of distributors is not fixed and determinable when products are shipped and revenue is therefore deferred and recognized upon sell-through. Substantially all of our products have been sold in combination with services, which consist of subscriptions and/or support. Subscription services provide access to our antivirus, intrusion prevention, web filtering, and anti-spam functionality. Support services include rights to unspecified software upgrades, maintenance releases and patches, telephone and Internet access to technical support personnel, and hardware support. | |||||||||
The subscription and support services start on the date the customer registers the appliance. The customer is then entitled to service for the stated contractual period beginning on the registration date. | |||||||||
We offer certain sales incentives to channel partners. We reduce revenue for estimates of sales returns and allowances. Additionally, in limited circumstances we may permit end-customers, distributors and resellers to return our products, subject to varying limitations, for a refund within a reasonably short period from the date of purchase. We estimate and record reserves for sales incentives and sales returns based on historical experience. | |||||||||
Shipping charges billed to customers are included in revenues and related costs are included in cost of revenue. Sales commissions and other incremental costs to acquire contracts are expensed as incurred. | |||||||||
Accounts Receivable—Trade accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts and reserves for sales returns and allowances. The allowance for doubtful accounts is based on our assessment of the collectibility of customer accounts. The allowance for doubtful accounts was not significant as of December 31, 2013 and 2012. The reserve for sales returns and allowances is based on specific criteria including agreements to provide rebates and other factors known at the time, as well as estimates of the amount of goods shipped that will be returned. To determine the adequacy of the reserves for sales returns and allowances, we analyze historical experience of actual rebates and returns as well as current product return information. The reserve for sales returns was $4.6 million and $2.3 million as of December 31, 2013 and 2012, respectively. | |||||||||
Warranties—We generally provide a 1-year warranty on hardware products and a 90-day warranty on software. A provision for estimated future costs related to warranty activities is recorded as a component of cost of product revenues when the product revenues are recognized, based upon historical product failure rates and historical costs incurred in correcting product failures. In the event we change our warranty reserve estimates, the resulting charge against future cost of sales or reversal of previously recorded charges may materially affect our gross margins and operating results. | |||||||||
Accrued warranty activities are summarized as follows ($ amounts in 000’s): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Accrued warranty balance—beginning of the period | 2,309 | 2,582 | 1,878 | ||||||
Warranty costs incurred | (3,444 | ) | (2,669 | ) | (1,778 | ) | |||
Provision for warranty for the year, including warranty liabilities assumed in connection with an acquisition | 3,965 | 2,639 | 2,103 | ||||||
Changes in prior period estimates | 207 | (243 | ) | 379 | |||||
Accrued warranty balance—end of the period | 3,037 | 2,309 | 2,582 | ||||||
Foreign Currency Derivatives—Our sales contracts are primarily denominated in U.S. dollars and therefore substantially all of our revenue is not subject to foreign currency translation risk. However, a substantial portion of our operating expenses incurred outside the U.S. are denominated in foreign currencies and are subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Canadian dollar ("CAD"). To help protect against significant fluctuations in value and the volatility of future cash flows caused by changes in currency exchange rates, we engage in foreign currency risk management activities to hedge balance sheet items denominated in CAD. We do not use these contracts for speculative or trading purposes. All of the derivative instruments are with high quality financial institutions and we monitor the creditworthiness of these parties. These contracts typically have maturities between one and three months. We record changes in the fair value of forward exchange contracts related to balance sheet accounts as other expense, net in the consolidated statement of operations. | |||||||||
Additionally, independent of any hedging activities, fluctuations in foreign currency exchange rates may cause us to recognize transaction gains and losses in our consolidated statements of operations. Our hedging activities are intended to reduce, but not eliminate, the impact of currency exchange rate movements. As our hedging activities are relatively short-term in nature and are focused on CAD, long-term material changes in the value of the U.S. dollar against other foreign currencies, such as the EUR, GBP and JPY could adversely impact our operating expenses in the future. | |||||||||
The notional amount of forward exchange contracts to hedge balance sheet accounts as of December 31, 2013 was (amounts in 000’s): | |||||||||
Buy/Sell | Notional | ||||||||
Balance Sheet Contracts: | |||||||||
Currency—As of December 31, 2013 | |||||||||
CAD | Buy | 21,867 | |||||||
Currency—As of December 31, 2012 | |||||||||
CAD | Buy | 17,968 | |||||||
Recently Adopted 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 15, 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_PrivatelyHeld_Co
Investment in Privately-Held Company | 12 Months Ended |
Dec. 31, 2013 | |
Investments, All Other Investments [Abstract] | ' |
INVESTMENT IN PRIVATELY-HELD COMPANY | ' |
INVESTMENT IN PRIVATELY-HELD COMPANY | |
In August 2013, we invested $2.0 million in equity securities in HyTrust, a privately-held company. This investment is accounted for as a cost-basis investment, as we own less than 20% of the voting securities and do not have the ability to exercise significant influence over operating and financial policies of the entity. This investment is carried at historical cost and is within Other assets on our consolidated balance sheet and measured at fair value on a nonrecurring basis when indicators of impairment exist. As of December 31, 2013, no events have occurred that would adversely affect the carrying value of this investment. |
Financial_Instruments_and_Fair
Financial Instruments and Fair Value | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Financial Instruments and Fair Value [Abstract] | ' | |||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE | ' | |||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE | ||||||||||||||||||||||||
The following table summarizes our investments ($ amounts in 000’s): | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||||||
Corporate debt securities | 603,185 | 1,506 | (374 | ) | 604,317 | |||||||||||||||||||
Commercial paper | 69,356 | 7 | — | 69,363 | ||||||||||||||||||||
Municipal bonds | 38,815 | 48 | (20 | ) | 38,843 | |||||||||||||||||||
Certificates of deposit and term deposits | 12,645 | 3 | — | 12,648 | ||||||||||||||||||||
U.S. government and agency securities | 2,000 | 1 | — | 2,001 | ||||||||||||||||||||
Total available-for-sale securities | 726,001 | 1,565 | (394 | ) | 727,172 | |||||||||||||||||||
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 ($ amounts in 000’s): | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||
Corporate debt securities | 182,795 | (374 | ) | 500 | — | 183,295 | (374 | ) | ||||||||||||||||
Commercial paper | 7,897 | — | — | — | 7,897 | — | ||||||||||||||||||
Municipal bonds | 14,736 | (20 | ) | — | — | 14,736 | (20 | ) | ||||||||||||||||
Total available-for-sale securities | 205,428 | (394 | ) | 500 | — | 205,928 | (394 | ) | ||||||||||||||||
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 ($ amounts in 000’s): | ||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
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 are as follows ($ amounts in 000’s) | ||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Due within one year | 375,497 | 290,719 | ||||||||||||||||||||||
Due within one to three years | 351,675 | 325,892 | ||||||||||||||||||||||
Total | 727,172 | 616,611 | ||||||||||||||||||||||
Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of tax, included as a separate component of stockholders’ equity and in total comprehensive income. Realized gains and losses on available-for-sale securities are included in other expense, net in our consolidated statements of operations. | ||||||||||||||||||||||||
The unrealized losses on our available-for-sale securities were caused by fluctuations in market value and interest rates as a result of the economic environment. As the decline in market value are attributable to changes in market conditions and not credit quality, and because we have concluded currently that we neither intend to sell nor is it more likely than not that we will be required to sell these investments prior to a recovery of par value, we do not consider these investments to be other-than temporarily impaired as of December 31, 2013. | ||||||||||||||||||||||||
Realized gains and losses from the sale of available-for-sale securities were not significant in any period presented. | ||||||||||||||||||||||||
Fair Value Accounting—We apply the following fair value hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: | ||||||||||||||||||||||||
Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||||||
Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. | ||||||||||||||||||||||||
Level 3—Unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. | ||||||||||||||||||||||||
We measure the fair value of money market funds using quoted prices in active markets for identical assets. The fair value of all other financial instruments was based on quoted prices for similar asserts in active markets, or model driven valuations using significant inputs derived from or corroborated by observable market data. | ||||||||||||||||||||||||
We classify investments within Level 1 if quoted prices are available in active markets for identical securities. | ||||||||||||||||||||||||
We classify items within Level 2 if the investments are valued using model driven valuations using observable inputs such as quoted market prices, benchmark yields, reported trades, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Investments are held by custodians who obtain investment prices from a third-party pricing provider that incorporates standard inputs in various asset price models. | ||||||||||||||||||||||||
The following table presents the fair value of our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and December 31, 2012 ($ amounts in 000’s): | ||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||
Aggregate | Quoted | Significant | Significant | Aggregate | Quoted | Significant | Significant | |||||||||||||||||
Fair | Prices in | Other | Other | Fair | Prices in | Other | Other | |||||||||||||||||
Value | Active | Observable | Unobservable | Value | Active | Observable | Unobservable | |||||||||||||||||
Markets For | Remaining | Remaining | Markets For | Remaining | Remaining | |||||||||||||||||||
Identical | Inputs | Inputs | Identical | Inputs | Inputs | |||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Corporate debt securities | 604,317 | — | 604,317 | — | 531,391 | — | 531,391 | — | ||||||||||||||||
Commercial paper | 71,363 | — | 71,363 | — | 41,994 | — | 41,994 | — | ||||||||||||||||
Municipal bonds | 38,843 | — | 38,843 | — | 36,870 | — | 36,870 | — | ||||||||||||||||
Certificates of deposit and term deposits | 12,648 | — | 12,648 | — | 9,105 | — | 9,105 | — | ||||||||||||||||
Money market funds | 5,724 | 5,724 | — | — | 39,871 | 39,871 | — | — | ||||||||||||||||
U.S. government and agency securities | 2,001 | — | 2,001 | — | — | — | — | — | ||||||||||||||||
Total | 734,896 | 5,724 | 729,172 | — | 659,231 | 39,871 | 619,360 | — | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Contingent consideration | 1,850 | — | — | 1,850 | — | — | — | — | ||||||||||||||||
Total | 1,850 | — | — | — | — | — | — | — | ||||||||||||||||
Reported as: | ||||||||||||||||||||||||
Cash equivalents | 7,724 | 42,620 | ||||||||||||||||||||||
Short-term investments | 375,497 | 290,719 | ||||||||||||||||||||||
Long-term investments | 351,675 | 325,892 | ||||||||||||||||||||||
Total | 734,896 | 659,231 | ||||||||||||||||||||||
The fair value of contingent consideration arising from the acquisition of Coyote Point Systems (see Note 6), is classified within Level 3 of the fair value hierarchy since it is based on a probability-based approach that includes significant unobservable inputs. The significant unobservable inputs include projected revenues and the percentage probability of occurrence to value the payment. A significant increase (decrease) in the projected revenue in isolation could result in a significantly higher (lower) fair value measurement and significant increase (decrease) in the probability of occurrence between the outcomes in isolation could result in a significantly higher (lower) fair value measurement. The fair value of the contingent consideration is calculated on a quarterly basis by management based on a collaborative effort of our operations and finance and accounting groups. Potential valuation adjustments are made as additional information becomes available, including the progress toward achieving revenue targets as compared to initial projections, the impact of market competition, and changes in actual and projected product mix and average selling price, with the impact of such adjustments being recorded in the earnings of that period. | ||||||||||||||||||||||||
There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the year ended December 31, 2013 or December 31, 2012. | ||||||||||||||||||||||||
The following table presents quantitative information about the inputs and valuation methodologies used for our fair value measurements classified in Level 3 of the fair value hierarchy as of December 31, 2013 ($ amounts in 000’s): | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Fair | Valuation Technique | Significant Unobservable Input | Range | |||||||||||||||||||||
Value | ||||||||||||||||||||||||
Contingent consideration | $1,850 | Probability Weighted Income Approach | Revenue (in 000's) | $7,000 - $12,000 | ||||||||||||||||||||
Probability of occurrence (%) | 40%-80% |
Inventory
Inventory | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Inventory Disclosure [Abstract] | ' | |||||
INVENTORY | ' | |||||
INVENTORY | ||||||
Inventory consisted of the following ($ amounts in 000’s): | ||||||
December 31, | December 31, | |||||
2013 | 2012 | |||||
Raw materials | 4,319 | 2,811 | ||||
Finished goods | 40,093 | 15,905 | ||||
Consigned inventory | 4,260 | 2,344 | ||||
Inventory | 48,672 | 21,060 | ||||
Property_and_EquipmentNet
Property and Equipment—Net | 12 Months Ended | |||||
Dec. 31, 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): | ||||||
December 31, | December 31, | |||||
2013 | 2012 | |||||
Land | 13,895 | 13,895 | ||||
Building and building improvements | 610 | 610 | ||||
Evaluation units | 23,442 | 18,322 | ||||
Computer equipment and software | 22,442 | 17,176 | ||||
Furniture and fixtures | 1,697 | 1,501 | ||||
Construction-in-progress | 10,947 | — | ||||
Leasehold improvements and tooling | 5,417 | 5,354 | ||||
Total property and equipment | 78,450 | 56,858 | ||||
Less: accumulated depreciation | (41,798 | ) | (31,220 | ) | ||
Property and equipment—net | 36,652 | 25,638 | ||||
Depreciation expense was $13.9 million, $10.5 million and $7.0 million in fiscal 2013, 2012 and 2011, respectively. In fiscal 2012, we purchased certain real property, including land and buildings in Sunnyvale, California, for cash of $14.5 million, to support the growth in our business operations. Of the total cost, we allocated $13.9 million to land and $0.6 million to building and building improvements. In fiscal 2013, construction-in-progress relates to enhancements to the land and building for our new corporate headquarters. |
Business_Combinations
Business Combinations | 12 Months Ended | ||
Dec. 31, 2013 | |||
Business Combinations [Abstract] | ' | ||
BUSINESS COMBINATIONS | ' | ||
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 $2.0 million will be payable after two years from the acquisition date. As the future earn-out payments are also contingent upon one of Coyote's former stockholder's employment during the earn-out period, the estimated fair value of these contingent obligations is being recorded as compensation expense ratably over the earn-out periods. This acquisition complements our network security strategy and allows us and our channel partners to accelerate and further deliver on our vision of providing broad security and networking functionality to customers. Furthermore, the acquisition is expected to generate synergy among certain of our existing products. | |||
We accounted for this acquisition as a purchase of a business and, accordingly, the total purchase price was allocated to Coyote’s identifiable tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The fair value assigned to the intangible assets acquired was determined using the income approach which discounts expected cash flows to present value using our estimates and assumptions. | |||
The following table summarizes the fair value of assets acquired and liabilities assumed ($ 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 | 2,872 | ||
Other assets | 88 | ||
Total assets acquired | 9,067 | ||
Current liabilities | 1,078 | ||
Long-term liabilities | 2,004 | ||
Total liabilities assumed | 3,082 | ||
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 six 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 $2.9 million represents the premium we paid over the fair value of the net tangible liabilities assumed and identified intangible assets acquired, due primarily to acquire 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. | |||
Other Fiscal 2013 Acquisition | |||
In September 2013, we acquired certain assets of Xtera Communications, Inc. (“Xtera”), including certain load balancing solutions 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. 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 results of operations of our fiscal 2013 acquisitions have been included in our consolidated statements of operations from their respective acquisition dates. | |||
Fiscal 2012 Acquisitions | |||
During fiscal 2012, we completed the acquisitions of two privately-held companies, XDN, Inc. (“XDN”) and IntruGuard Devices, Inc. (“IntruGuard”), together referred to as our fiscal 2012 acquisitions. Our fiscal 2012 acquisitions were completed for total cash consideration of $1.5 million which was allocated to developed technology. In fiscal 2013, we determined the net carrying value of certain developed technology was impaired and recorded an impairment charge of $0.5 million within Cost of product revenue in our consolidated statements of operations. The results of operations of our fiscal 2012 acquisitions have been included in our consolidated statements of operations from their respective acquisition dates. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets - Net | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS - NET | ' | ||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS—Net | |||||||||||
We recorded $2.9 million of goodwill based on the purchase price allocation of the acquisition of Coyote during fiscal 2013. There were no impairments to goodwill during fiscal 2013. | |||||||||||
The following tables present other intangible assets ($ amounts in 000’s): | |||||||||||
December 31, | |||||||||||
2013 | |||||||||||
Weighted-Average Useful Life (in Years) | Gross | Accumulated Amortization | Net | ||||||||
Finite-lived other intangible assets-net: | |||||||||||
Developed technology | 4.6 | 8,971 | 2,568 | 6,403 | |||||||
Customer relationships | 6 | 500 | 62 | 438 | |||||||
Total other intangible assets—net | 9,471 | 2,630 | 6,841 | ||||||||
December 31, | |||||||||||
2012 | |||||||||||
Weighted-Average Useful Life (in Years) | Gross | Accumulated Amortization | Net | ||||||||
Finite-lived other intangible assets-net: | |||||||||||
Developed technology | 3 | 3,541 | 1,424 | 2,117 | |||||||
Total other intangible assets—net | 3,541 | 1,424 | 2,117 | ||||||||
Amortization expense was $1.7 million, $1.0 million, and $0.4 million in fiscal 2013, 2012 and 2011, respectively. The following table summarizes estimated future amortization expense of other intangible assets with finite lives for future fiscal years ($ amounts in 000’s): | |||||||||||
Amount | |||||||||||
Fiscal Years: | |||||||||||
2014 | 1,782 | ||||||||||
2015 | 1,601 | ||||||||||
2016 | 1,287 | ||||||||||
2017 | 901 | ||||||||||
2018 | 900 | ||||||||||
Thereafter | 370 | ||||||||||
Total | 6,841 | ||||||||||
Net_Income_Per_Share
Net Income Per Share | 12 Months Ended | ||||||||
Dec. 31, 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 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): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Numerator: | |||||||||
Net income | 44,273 | 66,836 | 62,492 | ||||||
Denominator: | |||||||||
Basic shares: | |||||||||
Weighted-average common stock outstanding-basic | 162,435 | 158,074 | 152,581 | ||||||
Diluted shares: | |||||||||
Weighted-average common stock outstanding-basic | 162,435 | 158,074 | 152,581 | ||||||
Effect of potentially dilutive securities: | |||||||||
Stock options | 5,685 | 8,214 | 11,200 | ||||||
RSUs | 35 | — | — | ||||||
ESPP | 28 | 41 | — | ||||||
Weighted-average shares used to compute diluted net income per share | 168,183 | 166,329 | 163,781 | ||||||
Net income per share: | |||||||||
Basic | 0.27 | 0.42 | 0.41 | ||||||
Diluted | 0.26 | 0.4 | 0.38 | ||||||
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): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Stock options | 7,397 | 7,183 | 3,893 | ||||||
RSUs | 2,774 | 291 | — | ||||||
ESPP | 419 | 321 | 122 | ||||||
10,590 | 7,795 | 4,015 | |||||||
Deferred_Revenue
Deferred Revenue | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Deferred Revenue Disclosure [Abstract] | ' | |||||
DEFERRED REVENUE | ' | |||||
DEFERRED REVENUE | ||||||
Deferred revenue consisted of the following ($ amounts in 000’s): | ||||||
December 31, | December 31, | |||||
2013 | 2012 | |||||
Product | 2,915 | 5,411 | ||||
Services | 425,266 | 348,548 | ||||
Ratable and other revenue | 4,447 | 9,226 | ||||
Total deferred revenue | 432,628 | 363,185 | ||||
Reported As: | ||||||
Current | 293,664 | 247,268 | ||||
Non-current | 138,964 | 115,917 | ||||
Total deferred revenue | 432,628 | 363,185 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||
The following table summarizes our future principal contractual obligations as of December 31, 2013 ($ amounts in 000's): | |||||||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||
Operating lease commitments | 31,905 | 8,759 | 6,006 | 4,938 | 4,347 | 3,383 | 4,472 | ||||||||||||||
Less: Sublease rental income | 1,140 | 720 | 420 | — | — | — | — | ||||||||||||||
Operating lease commitments, net | 30,765 | 8,039 | 5,586 | 4,938 | 4,347 | 3,383 | 4,472 | ||||||||||||||
Purchase commitments | 37,794 | 37,794 | — | — | — | — | — | ||||||||||||||
Other contract commitments | 9,946 | 9,632 | 173 | 50 | 41 | 50 | — | ||||||||||||||
Total | 78,505 | 55,465 | 5,759 | 4,988 | 4,388 | 3,433 | 4,472 | ||||||||||||||
Operating Leases—We lease certain facilities under various non-cancelable operating leases, which expire through 2020. The terms of certain operating leases provide for renewal options. Future minimum payments under the non-cancelable operating leases totaled $31.9 million as of December 31, 2013. Rent expense was $9.8 million, $8.7 million and $8.2 million for fiscal 2013, 2012, and 2011, respectively. Rent expense and sublease rental income are recognized using the straight-line method over the term of the lease. Sublease rental income was $0.7 million, $0.8 million, and $0.7 million in fiscal 2013, 2012, and 2011, respectively. | |||||||||||||||||||||
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 may issue purchase orders to some of our independent contract manufacturers which may not be cancelable. As of December 31, 2013, we had $37.8 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 December 31, 2013, we had $9.9 million in other purchase commitments. | |||||||||||||||||||||
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. 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 August 2009, Enhanced Security Research, LLC and Security Research Holdings LLC (collectively “ESR”), a non-practicing entity, filed a complaint against us in the United States District Court for the District of Delaware alleging infringement by us and other defendants of two patents. The plaintiffs were claiming unspecified damages and were requesting an injunction against the alleged infringement. In June 2010, the Court granted our motion to stay pending the outcome of reexamination proceedings in the U.S. Patent and Trademark Office (“PTO”) on both asserted patents. The PTO rejected all of the claims of the patents in the suit and ESR appealed this result to the Board of Patent Appeals and Interferences (“BPAI”). In August 2012, the BPAI completed its review of both reexamination proceedings, and, after the BPAI’s review, all claims of the asserted ESR patents remain rejected. In October 2012, ESR filed an additional appeal of the BPAI decision with the United States Court of Appeal for the Federal Circuit. That appeal is still pending. The litigation related to ESR is no longer estimated to be material to us. | |||||||||||||||||||||
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. We settled this matter in December 2013. | |||||||||||||||||||||
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 | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||
STOCKHOLDERS' EQUITY | ' | ||||||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||||||
Stock-Based Compensation Plans | |||||||||||||||
Our stock-based compensation plans include the 2000 Stock Option Plan (the “2000 Plan”), the 2008 Stock Plan (the “2008 Plan”), the 2009 Equity Incentive Plan (the “2009 Plan”), and the ESPP. | |||||||||||||||
2000 Stock Plan—During 2000, we adopted the 2000 Plan, which includes both incentive and non-statutory stock options. Under the 2000 Plan, we may grant options to purchase up to 21,500,000 shares of common stock to employees, directors and other service providers at prices not less than the fair market value at date of grant for incentive stock options and not less than 85% of fair market value for non-statutory options. Options granted to a person who, at the time of the grant, owns more than 10% of the voting power of all classes of stock shall be at no less than 110% of the fair market value and expire five years from the date of grant. All other options generally have a contractual term of 10 years. Options generally vest over four years. | |||||||||||||||
2008 Stock Plan—On January 28, 2008, our board of directors approved the 2008 Plan and French Sub-Plan, which includes both incentive and non-statutory stock options. The maximum aggregate number of shares which may be subject to options and sold under the 2008 Plan and the French Sub-Plan is 5,000,000 shares, plus any shares that, as of the date of stockholder approval of the 2008 Plan, have been reserved but not issued under the 2000 Plan or shares subject to stock options or similar awards granted under the 2000 Plan that expire or otherwise terminate without having been exercised in full or that are forfeited to or repurchased by us. | |||||||||||||||
Under the 2008 Plan and the French Sub-Plan, we may grant options to employees, directors and other service providers. In the case of an incentive stock option granted to an employee, who at the time of grant, owns stock representing more than 10% of the total combined voting power of all classes of stock, the exercise price shall be no less than 110% of the fair market value per share on the date of grant and expire five years from the date of grant, and options granted to any other employee, the per share exercise price shall be no less than 100% of the fair market value per share on the date of grant. In the case of a nonstatutory stock option and options granted to other service providers, the per share exercise price shall be no less than 100% of the fair market value per share on the date of grant. | |||||||||||||||
2009 Equity Incentive Plan—On November 17, 2009, our board of directors approved the 2009 Plan and French Sub-Plan, which includes awards of stock options, stock appreciation rights, restricted stock, RSUs, and PSUs or performance shares. The maximum aggregate number of shares that may be issued under the 2009 Plan is 9,000,000 shares, plus any shares subject to stock options or similar awards granted under the 2008 Plan and the 2000 Plan that expire or otherwise terminate without having been exercised in full and shares issued pursuant to awards granted under the 2008 Plan and the 2000 Plan that are forfeited to or repurchased by us, with the maximum number of shares to be added to the 2009 Plan pursuant to such terminations, forfeitures and repurchases not to exceed 21,000,000 shares. The shares may be authorized, but unissued or reacquired common stock. The number of shares available for issuance under the 2009 Plan will be increased on the first day of each fiscal year beginning with fiscal 2011, in an amount equal to the lesser of (i) 7,000,000 shares, (ii) five percent (5%) of the outstanding shares on the last day of the immediately preceding fiscal year, or (iii) such number of shares determined by our board of directors. Under the 2009 Plan and the French Sub-Plan, we may grant awards to employees, directors and other service providers. In the case of an incentive stock option granted to an employee who, at the time of the grant, owns stock representing more than 10% of the voting power of all classes of stock, the exercise price shall be no less than 110% of the fair market value per share on the date of grant and expire five years from the date of grant, and options granted to any other employee, the per share exercise price shall be no less than 100% of the fair market value per share on the date of grant. In the case of a non statutory stock option and options granted to other service providers, the per share exercise price shall be no less than 100% of the fair market value per share on the date of grant. Options granted to individuals owning less than 10% of the total combined voting power of all classes of stock generally have a contractual term of seven years and options generally vest over four years. | |||||||||||||||
As of December 31, 2013, a total of 47,131,910 shares were authorized and available for issuance under the 2000 Plan, 2008 Plan and 2009 Plan. | |||||||||||||||
Employee Stock Purchase Plan—In June 2011, our stockholders approved the ESPP. The purpose of the ESPP is to provide eligible employees with the opportunity to purchase common stock through regular, systematic payroll deductions, up to a maximum of 15% of employees’ compensation for each purchase period at purchase prices equal to 85% of the lesser of the fair market value of our common stock at the first trading date of the applicable offering period or the purchase date. As of December 31, 2013, 6,750,770 shares were authorized and available for issuance under the ESPP. | |||||||||||||||
Employee Stock Options | |||||||||||||||
In determining the fair value of our employee stock options, we use the Black-Scholes option pricing model, which employs the following assumptions. | |||||||||||||||
Valuation method—We estimate the fair value of stock options granted. | |||||||||||||||
Expected Term—The expected term represents the period that our stock-based awards are expected to be outstanding. As we do not have sufficient historical experience for determining the expected term of the stock option awards granted, we have based our expected term on the simplified method, which is calculated as the average weighted vesting period and contractual life. | |||||||||||||||
Expected Volatility—The computation of expected volatility for the periods presented includes the historical and implied stock volatility of comparable companies from a representative peer group selected based on industry and market capitalization data and our weighted historical volatility following our initial public offering in November 2009. | |||||||||||||||
Fair Value of Common Stock—The fair value of our common stock is the closing sales price of the common stock (or the closing bid, if no sales were reported) on the effective on the date of grant. | |||||||||||||||
Risk-Free Interest Rate—We base the risk-free interest rate used in the Black-Scholes valuation model on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term. | |||||||||||||||
Expected Dividend—The expected dividend weighted-average assumption is zero. | |||||||||||||||
The following table summarizes the weighted-average assumptions relating to our employee stock options: | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Expected term in years | 4.6 | 4.6 | 4.1 – 4.6 | ||||||||||||
Volatility (%) | 45 – 48 | 46 – 52 | 40 – 57 | ||||||||||||
Risk-free interest rate (%) | 1.2 | 0.7 – 0.9 | 0.6 – 2.0 | ||||||||||||
Dividend rate (%) | — | — | — | ||||||||||||
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, 2010 | 22,489 | 4.21 | |||||||||||||
Granted | 6,526 | 21.05 | |||||||||||||
Forfeited | (1,397 | ) | 11.79 | ||||||||||||
Exercised | (6,229 | ) | 3.21 | ||||||||||||
Balance—December 31, 2011 | 21,389 | 9.14 | |||||||||||||
Granted | 3,401 | 26.38 | |||||||||||||
Forfeited | (1,441 | ) | 19.31 | ||||||||||||
Exercised | (4,778 | ) | 5.69 | ||||||||||||
Balance—December 31, 2012 | 18,571 | 12.4 | |||||||||||||
Granted | 258 | 20.89 | |||||||||||||
Forfeited | (820 | ) | 22.14 | ||||||||||||
Exercised | (2,488 | ) | 5.18 | ||||||||||||
Balance—December 31, 2013 | 15,521 | 13.18 | |||||||||||||
Options vested and expected to vest—December 31, 2013 | 15,496 | 13.17 | 3.24 | 120,178 | |||||||||||
Options exercisable—December 31, 2013 | 12,084 | 10.52 | 2.82 | 118,226 | |||||||||||
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 December 31, 2013, for all in-the-money options. As of December 31, 2013, total compensation expense related to unvested stock options granted to employees but not yet recognized was $39.5 million, net of estimated forfeitures. This expense is expected to be amortized on a straight-line basis over a weighted-average period of 1.8 years. | |||||||||||||||
Additional information related to our stock options is summarized below ($ amounts in 000's, except per share amounts): | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Weighted-average fair value per share granted | 8.42 | 11.13 | 8.1 | ||||||||||||
Intrinsic value of options exercised | 41,484 | 92,323 | 113,590 | ||||||||||||
Fair value of options vested | 26,411 | 25,350 | 11,800 | ||||||||||||
The following table summarizes information about outstanding and exercisable stock options as of December 31, 2013, as follows (in 000’s, except per share amounts, exercise prices and contractual life): | |||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||
Range of Exercise Prices ($) | Number | Weighted- | Weighted- | Number | Weighted- | ||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||
Remaining | Exercise | Exercise | |||||||||||||
Contractual | Price ($) | Price ($) | |||||||||||||
Life (Years) | |||||||||||||||
0.48–1.20 | 1,331 | 1.75 | 0.97 | 1,331 | 0.97 | ||||||||||
3.74–4.65 | 4,902 | 1.66 | 3.75 | 4,902 | 3.75 | ||||||||||
5.50–6.25 | 152 | 2.71 | 5.64 | 152 | 5.64 | ||||||||||
8.43–8.99 | 1,636 | 3.16 | 8.55 | 1,486 | 8.53 | ||||||||||
15.28–19.94 | 382 | 4.15 | 15.88 | 231 | 15.28 | ||||||||||
20.13–24.92 | 4,835 | 4.41 | 21.32 | 2,902 | 21.2 | ||||||||||
26.70–26.70 | 2,283 | 5.01 | 26.7 | 1,080 | 26.7 | ||||||||||
15,521 | 12,084 | ||||||||||||||
Restricted Stock Units | |||||||||||||||
The following table summarizes the activity and related information for RSUs for the periods presented below (in 000’s, except per share amounts): | |||||||||||||||
Restricted Stock Units Outstanding | |||||||||||||||
Number of Shares | Weighted-Average Grant-Date-Fair Value per Share ($) | ||||||||||||||
Balance—December 31, 2011 | — | — | |||||||||||||
Granted | 873 | 23.79 | |||||||||||||
Forfeited | (43 | ) | 24.76 | ||||||||||||
Vested | — | — | |||||||||||||
Balance—December 31, 2012 | 830 | 23.73 | |||||||||||||
Granted | 4,104 | 21.75 | |||||||||||||
Forfeited | (507 | ) | 21.48 | ||||||||||||
Vested | (228 | ) | 23.89 | ||||||||||||
Balance—December 31, 2013 | 4,199 | 22 | |||||||||||||
RSUs expected to vest—December 31, 2013 | 3,898 | 22.02 | |||||||||||||
As of December 31, 2013, total compensation expense related to unvested RSUs that were granted to employees and non-employees under the 2009 Plan, but not yet recognized, was $82.6 million, net of estimated forfeitures. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 2.99 years. | |||||||||||||||
RSUs settle into shares of common stock upon vesting. RSUs that were previously granted began vesting in fiscal 2013. Upon the vesting of the RSUs, we net-settled the RSUs and withheld a portion of the shares to satisfy minimum statutory employee withholding taxes. Total payment for the employees’ tax obligations to the taxing authorities is reflected as a financing activity within the consolidated statements of cash flows. These net settlements had the effect of share repurchases by us as they reduced and retired the number of shares that would have otherwise been issued as a result of the vesting and did not represent an expense to us. | |||||||||||||||
The following summarizes the number and value of the shares withheld for employee taxes for fiscal 2013 (in 000’s): | |||||||||||||||
Shares withheld for taxes | 70 | ||||||||||||||
Amount withheld for taxes ($) | 1,452 | ||||||||||||||
Performance Stock Units | |||||||||||||||
During fiscal 2013, we granted PSUs 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 fiscal 2013: | |||||||||||||||
Expected term in years | 2.97 | ||||||||||||||
Volatility (%) | 50.11 | ||||||||||||||
Risk-free interest rate (%) | 0.67 | ||||||||||||||
Dividend rate (%) | — | ||||||||||||||
We granted 180,000 PSUs during fiscal 2013 to our executive officers, of which 50,000 shares were forfeited during fiscal 2013. The PSUs had a grant date fair value of $22.06 per share, and are included in the aforementioned activity for RSUs. | |||||||||||||||
As of December 31, 2013, total compensation expense related to unvested PSUs that were granted to certain of our executive officers, but not yet recognized, was $2.4 million, net of estimated forfeitures. This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 2.59 years. | |||||||||||||||
Shares Reserved for Future Issuances | |||||||||||||||
The following table presents the common stock reserved for future issuance (in 000’s): | |||||||||||||||
December 31, | |||||||||||||||
2013 | |||||||||||||||
Outstanding stock options and RSUs | 19,720 | ||||||||||||||
Reserved for future stock option, RSU and other equity award grants | 27,412 | ||||||||||||||
Reserved for future ESPP issuances | 6,751 | ||||||||||||||
Total common stock reserved for future issuances | 53,883 | ||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||
In determining the fair value of our ESPP, we use the Black-Scholes option pricing model that employs the following weighted-average assumptions: | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Expected term in years | 0.5 | 0.5 | 0.5 | ||||||||||||
Volatility (%) | 44 | 53.7 | 59.9 | ||||||||||||
Risk-free interest rate (%) | 0.12 | 0.12 | 0.07 | ||||||||||||
Dividend rate (%) | — | — | — | ||||||||||||
Additional information related to the ESPP is provided below (in 000's, except per share amounts): | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Weighted-average fair value per share granted ($) | 6.11 | 7.06 | 6.56 | ||||||||||||
Shares issued under the ESPP | 672 | 577 | — | ||||||||||||
Weighted-average price per share issued ($) | 18.88 | 18.9 | — | ||||||||||||
Stock-based Compensation Expense | |||||||||||||||
Stock-based compensation expense is included in costs and expenses as follows ($ amounts in 000’s): | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Cost of product revenue | 383 | 333 | 183 | ||||||||||||
Cost of services revenue | 4,841 | 3,736 | 1,790 | ||||||||||||
Research and development | 13,271 | 9,226 | 4,691 | ||||||||||||
Sales and marketing | 19,526 | 12,793 | 9,325 | ||||||||||||
General and administrative | 6,450 | 4,602 | 3,026 | ||||||||||||
Total stock-based compensation expense | 44,471 | 30,690 | 19,015 | ||||||||||||
The following table summarizes stock-based compensation expense by award type ($ amounts in 000’s) | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Stock options | 20,806 | 24,506 | 17,416 | ||||||||||||
RSUs | 18,968 | 1,714 | — | ||||||||||||
ESPP | 4,697 | 4,470 | 1,599 | ||||||||||||
Total stock-based compensation expense | 44,471 | 30,690 | 19,015 | ||||||||||||
Total income tax benefit associated with stock-based compensation that is recognized in the consolidated statements of operations is as follows ($ amounts in 000’s): | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Income tax benefit associated with stock-based compensation | 8,331 | 5,870 | 3,822 | ||||||||||||
Share Repurchase Program | |||||||||||||||
On December 6, 2013, our Board of Directors authorized a Share Repurchase Program (“the Program”) to repurchase up to $200.0 million of our outstanding common stock through December 31, 2014. Under the Program, share repurchases may be made by us from time to time in privately negotiated transactions or in open market transactions. The Program does not require us to purchase a minimum number of shares, and may be suspended, modified or discontinued at any time without prior notice. In December 2013, we repurchased 2.1 million shares of common stock under the Program in open market transactions for an aggregate purchase price of $38.9 million. The share repurchases were financed by available cash balances and cash from operations. As of December 31, 2013, $161.1 million remains available for future share repurchases under the Program. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
INCOME TAXES | ' | ||||||||
INCOME TAXES | |||||||||
Income before income taxes consisted of the following ($ amounts in 000’s): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Domestic | 83,076 | 95,730 | 85,411 | ||||||
Foreign | (7,135 | ) | 9,266 | 6,662 | |||||
Total income before income taxes | 75,941 | 104,996 | 92,073 | ||||||
The provision for income taxes consisted of the following ($ amounts in 000’s): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Current: | |||||||||
Federal | 43,384 | 43,765 | 34,856 | ||||||
State | 2,490 | 1,992 | 2,785 | ||||||
Foreign | 4,175 | 2,266 | 1,402 | ||||||
Total current | 50,049 | 48,023 | 39,043 | ||||||
Deferred: | |||||||||
Federal | (17,149 | ) | (9,677 | ) | (9,326 | ) | |||
State | (1,232 | ) | (186 | ) | (136 | ) | |||
Foreign | — | — | — | ||||||
Total deferred | (18,381 | ) | (9,863 | ) | (9,462 | ) | |||
Provision for income taxes | 31,668 | 38,160 | 29,581 | ||||||
The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate as follows ($ amounts in 000’s): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Tax at federal statutory tax rate | 26,579 | 36,749 | 32,225 | ||||||
Stock-based compensation expense | 4,571 | 1,570 | 2,222 | ||||||
State taxes—net of federal benefit | 419 | 1,186 | (2,457 | ) | |||||
Domestic production activities deduction | (3,256 | ) | (1,813 | ) | (547 | ) | |||
Research and development credit | (1,650 | ) | (144 | ) | (887 | ) | |||
Foreign income taxed at different rates | 6,672 | (1,845 | ) | (929 | ) | ||||
Other | (1,667 | ) | 2,457 | (46 | ) | ||||
Total provision for income taxes | 31,668 | 38,160 | 29,581 | ||||||
Significant permanent differences arise from the portion of stock-based compensation expense that is not expected to generate a tax deduction, such as stock-based compensation expense on stock option grants to certain foreign employees, offset by the actual tax benefits in the current periods from disqualifying dispositions of shares held by our U.S. employees. For stock options exercised by our U.S. employees, we receive an income tax benefit calculated as the difference between the fair market value of the stock issued at the time of the exercise and the option price, tax effected. Due to this, our income taxes payable have been reduced by the tax benefits from employee stock plan awards. The income tax benefits for fiscal 2013, 2012, and 2011 associated with dispositions from employee stock transactions of $3.5 million, $14.3 million, and $26.2 million, respectively, were recognized as additional paid-in capital. | |||||||||
As of December 31, 2013, we did not recognize California tax credits relating to excess tax benefits for stock-based compensation expense of $3.5 million. Unrecognized excess tax benefits will be accounted for as a credit to additional paid-in capital when realized through a reduction in income taxes payable. | |||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets as of the years ended are presented below ($ amount in 000’s): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforward | 2,183 | 587 | |||||||
Deferred revenue | 47,341 | 36,438 | |||||||
Nondeductible reserves and accruals | 16,055 | 13,437 | |||||||
Depreciation and amortization | (465 | ) | 920 | ||||||
General business credit carryforward | 439 | 1,381 | |||||||
Stock-based compensation expense | 15,468 | 9,413 | |||||||
Other | 17 | 12 | |||||||
Total deferred tax assets | 81,038 | 62,188 | |||||||
In assessing the realizability of deferred tax assets, we considered whether it is more likely than not that some portion or all of our deferred tax assets will be realized. This realization is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We concluded that it is more likely than not that we would be able to realize the benefits of our deferred tax assets in the future. | |||||||||
As of December 31, 2013, we had foreign net operating loss carryforwards of $21.7 million. The foreign net operating losses carry forward indefinitely. As of December 31, 2013, we had state tax credit carryforwards of $4.2 million available to offset our future state taxes. The state credits carry forward indefinitely. | |||||||||
Our policy with respect to undistributed foreign subsidiaries’ earnings is to consider those earnings to be indefinitely reinvested and, accordingly, no related provision of U.S. federal and state income taxes has been provided on such earnings. Upon distribution of those earnings in the form of dividends or otherwise, we would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes in the various foreign countries. As of December 31, 2013, we have not recorded U.S. income tax on $27.5 million of foreign earnings that are deemed to be permanently reinvested overseas. | |||||||||
We operate under a tax incentive agreement in Singapore, which is effective through December 31, 2023, and may be extended if certain additional requirements are satisfied. The tax incentive agreement is conditional upon our meeting certain employment and investment thresholds. We did not realize any tax savings from the Singapore tax incentives in fiscal 2013 because of net tax losses in that jurisdiction. | |||||||||
As of December 31, 2013, we had $29.6 million of unrecognized tax benefits, of which, if recognized, $29.2 million would favorably affect our effective tax rate. Our policy is to include accrued interest and penalties related to uncertain tax benefits in income tax expense. As of December 31, 2013, 2012 and 2011, accrued interest and penalties were $1.0 million, $1.5 million, and $0.6 million, respectively. | |||||||||
The aggregate changes in the balance of unrecognized tax benefits are as follows ($ amounts in 000’s): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Unrecognized tax benefits, beginning of year | 27,808 | 19,269 | 12,083 | ||||||
Gross increases for tax positions related to the current year | 4,713 | 7,550 | 9,049 | ||||||
Gross increases for tax positions related to the prior year | 405 | 1,479 | — | ||||||
Gross decreases for tax positions related to the prior year | (3,322 | ) | (490 | ) | (1,863 | ) | |||
Unrecognized tax benefits, end of year | 29,604 | 27,808 | 19,269 | ||||||
As of December 31, 2013, 2012 and 2011, $30.2 million, $28.8 million, and $19.1 million, respectively, of the amounts reflected above were recorded as Income taxes payable—non-current in our consolidated balance sheet. | |||||||||
As of December 31, 2013, there was no unrecognized tax benefits that we expect would change significantly over the next 12 months. | |||||||||
We file income tax returns in the U.S. federal jurisdiction, and various U.S. state and foreign jurisdictions. As we have net operating loss carryforwards for the state jurisdictions, the statute of limitations is open for all tax years. Additionally, we have foreign net operating losses that have an indefinite life. Generally, we are no longer subject to non-U.S. income tax examinations by tax authorities for tax years prior to 2007. | |||||||||
During January 2013, the U.S. Federal Research and Development Tax Credit was reinstated retroactively to fiscal 2012. The U.S. Federal Research and Development Tax Credit benefit was recorded in the first quarter of fiscal 2013, the period of enactment. 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. | |||||||||
On September 13, 2013, the U.S. Treasury Department released final income tax regulations on the deduction and capitalization of expenditures related to tangible property. These final regulations apply to tax years beginning on or after January 1, 2014. Several of the provisions within the regulations will require a tax accounting method change to be filed with the IRS, resulting in a cumulative effect adjustment; however, we do not anticipate the impact of these changes to be material to our consolidated financial position, consolidated results of operations, or both. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plan [Abstract] | ' |
EMPLOYEE BENEFIT PLAN | ' |
EMPLOYEE BENEFIT PLAN | |
Tax-deferred savings plan under our 401(k) Plan, participating employees may defer a portion of their pre-tax earnings, up to the IRS annual contribution limit. 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 board of directors approved 50% matching contributions on employee contributions up to 4% of each employee’s eligible earnings. Our matching contributions to the 401(k) Plans and RRSP for fiscal 2013, 2012, and 2011 were $2.1 million, $1.8 million, and $1.5 million, respectively. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
SEGMENT INFORMATION | ' | ||||||||
SEGMENT INFORMATION | |||||||||
Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our chief executive officer. Our chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region for purposes of allocating resources and evaluating financial performance. We have one business activity, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. Accordingly, we have determined that we have one operating segment, and therefore, one reportable segment. | |||||||||
Revenue by geographic region is based on the billing address of the customer. The following tables set forth revenue and property and equipment by geographic region ($ amounts in 000’s): | |||||||||
Fiscal Year | |||||||||
Revenue | 2013 | 2012 | 2011 | ||||||
Americas: | |||||||||
United States | 162,327 | 145,369 | 120,456 | ||||||
Other Americas | 90,459 | 71,687 | 52,038 | ||||||
Total Americas | 252,786 | 217,056 | 172,494 | ||||||
Europe, Middle East, and Africa ("EMEA") | 208,979 | 184,175 | 152,385 | ||||||
Asia Pacific and Japan ("APAC") | 153,532 | 132,408 | 108,697 | ||||||
Total revenue | 615,297 | 533,639 | 433,576 | ||||||
Property and Equipment | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Americas: | |||||||||
United States | 29,334 | 18,764 | |||||||
Canada | 4,372 | 4,376 | |||||||
Other Americas | 45 | 87 | |||||||
Total Americas | 33,751 | 23,227 | |||||||
EMEA | 1,273 | 1,213 | |||||||
APAC | 1,628 | 1,198 | |||||||
Total property and equipment—net | 36,652 | 25,638 | |||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income for fiscal 2013 and 2012 ($ amounts in 000's): | ||||||||||||
31-Dec-13 | ||||||||||||
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 | 1,950 | 1,755 | (614 | ) | 3,091 | |||||||
Other comprehensive income before reclassifications | (1,617 | ) | (573 | ) | 200 | (1,990 | ) | |||||
Amounts reclassified from accumulated other comprehensive income | — | (14 | ) | 5 | (9 | ) | ||||||
Net current-period other comprehensive income | (1,617 | ) | (587 | ) | 205 | (1,999 | ) | |||||
Ending balance | 333 | 1,168 | (409 | ) | 1,092 | |||||||
31-Dec-12 | ||||||||||||
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 | 1,426 | (1,576 | ) | 552 | 402 | |||||||
Other comprehensive income before reclassifications | 524 | 3,380 | (1,183 | ) | 2,721 | |||||||
Amounts reclassified from accumulated other comprehensive income | — | (49 | ) | 17 | (32 | ) | ||||||
Net current-period other comprehensive income | 524 | 3,331 | (1,166 | ) | 2,689 | |||||||
Ending balance | 1,950 | 1,755 | (614 | ) | 3,091 | |||||||
The following table provides details about the reclassification out of accumulated other comprehensive income for fiscal 2013 and 2012 ($ amounts in 000s): | ||||||||||||
31-Dec-13 | ||||||||||||
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 | (14 | ) | Other expense, net | |||||||||
Tax provision related to items of other comprehensive income or loss | 5 | Provision for income taxes | ||||||||||
Total reclassification for the period | (9 | ) | ||||||||||
31-Dec-12 | ||||||||||||
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 | (49 | ) | Other expense, net | |||||||||
Tax provision related to items of other comprehensive income or loss | 17 | Provision for income taxes | ||||||||||
Total reclassification for the period | (32 | ) |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENT | |
In January 2014, we entered into an agreement with Palo Alto Networks, Inc. (“Palo Alto Networks”), whereby Palo Alto Networks paid us a lump sum payment of $20.0 million for a six year mutual covenant-not-to-sue which precludes either party from asserting claims of patent infringement against the other party. The agreement also contained a release of past claims. |
Schedule_II
Schedule II | 3 Months Ended | ||||||||
Mar. 31, 2013 | |||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
($ amounts in 000’s) | |||||||||
Allowance for Doubtful Accounts: | |||||||||
Beginning balance | 115 | 336 | 303 | ||||||
Charged (credited) to costs and expenses, net of write-offs | (83 | ) | (221 | ) | 33 | ||||
Ending balance | 32 | 115 | 336 | ||||||
Sales Returns Reserve: | |||||||||
Beginning balance | 2,267 | 2,351 | 1,979 | ||||||
Charged (credited) to costs and expenses, net of deductions | 2,306 | (84 | ) | 372 | |||||
Ending balance | 4,573 | 2,267 | 2,351 | ||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation and Preparation | ' | |
Basis of Presentation and Preparation—The consolidated financial statements of Fortinet and its wholly owned subsidiaries (collectively, the “Company,” “we,” “us” or “our”) have been prepared in accordance with GAAP. All intercompany transactions and balances have been eliminated in consolidation. | ||
During the third quarter of fiscal 2013, we recorded an out-of-period adjustment of $3.0 million to correct the presentation on our consolidated balance sheets relating to our repurchase of 1,409,264 shares during fiscal 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 correction is not material to the current or prior fiscal periods. The shares that we repurchased in fiscal 2009 were retired immediately after repurchase. There was no outstanding treasury stock balance as of December 31, 2013. | ||
Use of Estimates | ' | |
Use of Estimates—The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates include implicit service periods for revenue recognition, litigation and settlement costs and other loss contingencies, sales returns and allowances, reserve for bad debt, inventory valuation, warranty reserve, goodwill and other long-lived assets, investments, stock-based compensation, the accounting for income taxes related to deferred tax asset balances and reserves, and the accounting for business combinations. We base our estimates on historical experience and also on assumptions that we believe are reasonable. Actual results could differ from those estimates. | ||
Certain Significant Risks and Uncertainties | ' | |
Certain Significant Risks and Uncertainties—We are subject to certain risks and uncertainties that could have a material adverse effect on our future financial position or results of operations, such as the following: changes in level of demand for our products and services, the timing and success of new product and service introductions by us or our competitors, price and sales competition and our ability to adapt to changing market conditions and dynamics such as changes in end-customer, distributor or reseller requirements or market needs, changes in expenses caused, for example, by fluctuations in foreign currency exchange rates, management of inventory, internal control over financial reporting, market acceptance of our new products and services, demand for UTM products and services in general, seasonality, failure of our channel partners to perform or other disruption in our channel, the quality of our products and services and the market perception of our response to new viruses or security breaches, general economic conditions, challenges in doing business outside of the United States, changes in customer relationships, litigation, or claims against us based on intellectual property, patent, product regulatory or other factors, product obsolescence, and our ability to attract and retain qualified employees. | ||
We rely solely on suppliers and independent contract manufacturers for certain of our components and one third-party logistics company for distribution of certain of our products, which is located outside of U.S. The inability of any of these parties to fulfill our supply and logistics requirements could negatively impact our future operating results. | ||
Concentration of Credit Risk | ' | |
Concentration of Credit Risk—Financial instruments that subject us to concentrations of credit risk consist primarily of cash, cash equivalents, short-term and long-term investments, and accounts receivable. We maintain our cash, cash equivalents, and investments in fixed income securities with major financial institutions, which our management assesses to be of high credit quality, in order to limit the exposure of each investment. Deposits held with banks may exceed the amount of insurance provided on such deposits. | ||
Credit risk with respect to accounts receivable in general is diversified due to the number of different entities comprising our customer base and their location throughout the world. We perform ongoing credit evaluations of our customers and generally do not require collateral on accounts receivable. We maintain reserves for estimated potential credit losses. | ||
Financial Instruments and Fair Value | ' | |
Financial Instruments and Fair Value—We apply fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Due to their short-term nature, the carrying amounts reported in the consolidated financial statements approximate the fair value for accounts receivable, accounts payable, accrued liabilities, and accrued payroll and compensation. | ||
Comprehensive Income | ' | |
Comprehensive Income—Comprehensive income includes certain changes in equity from non-owner sources that are excluded from net income. Specifically, cumulative foreign currency translation adjustments, unrealized gains and losses on available-for-sale investments, and unrealized gains and losses on cash flow hedges are included in comprehensive income. | ||
Foreign Currency Translation and Transaction Gains and Losses | ' | |
Foreign Currency Translation and Transaction Gains and Losses—Assets and liabilities of foreign subsidiaries with non-U.S. dollar functional currency are translated into U.S. dollars using the exchange rates in effect at the balance sheet dates and expenses are translated using average exchange rates during the period. The resulting foreign translation adjustments are included in the consolidated balance sheets in the stockholders' equity section as a component of accumulated other comprehensive income (loss) and are included in the consolidated statements of comprehensive income. | ||
Cash, Cash Equivalents and Available-for-sale Investments | ' | |
Cash, Cash Equivalents and Available-for-sale Investments—We consider all highly liquid investments, purchased with original maturities of three months or less, to be cash equivalents. Cash and cash equivalents consist of balances with banks, and highly liquid investments in money market funds, commercial paper, and certificates of deposit and term deposits. | ||
We classify our investments as available-for-sale at the time of purchase since it is our intent that these investments are available for current operations, and include these investments on our balance sheet as either short-term or long-term investments depending on their maturity at the time of purchase. Investments with original maturities greater than three months that mature less than one year from the consolidated balance sheet date are classified as short-term investments. Investments with maturities greater than one year from the consolidated balance sheet date are classified as long-term investments. | ||
Investments are considered to be impaired when a decline in fair value is judged to be other-than-temporary. We consult with our investment managers and consider available quantitative and qualitative evidence in evaluating potential impairment of our investments on a quarterly basis. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established. | ||
For debt securities in an unrealized loss position which is deemed to be other-than-temporary, the difference between the security’s then-current amortized cost basis and fair value is separated into (i) the amount of the impairment related to the credit loss (i.e., the credit loss component) and (ii) the amount of the impairment related to all other factors (i.e., the non-credit loss component). The credit loss component is recognized in earnings. The non-credit loss component is recognized in accumulated other comprehensive loss. | ||
Other Investments | ' | |
Other 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 Other assets 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. | ||
Inventory | ' | |
Inventory—Inventory is recorded at the lower of average cost or market, after we give appropriate consideration to obsolescence and inventory in excess of anticipated future demand. Certain inventories are held at consignment locations. This consigned inventory was $4.3 million as of December 31, 2013, of which $4.1 million is raw materials and $0.2 million is finished goods and $2.3 million as of December 31, 2012, of which $2.1 million is raw materials and $0.2 million is finished goods. In assessing the ultimate recoverability of inventory, we are required to make estimates regarding future customer demand, the timing of new product introductions, economic trends and market conditions. If the actual product demand is significantly lower than forecasted, we could be required to record additional inventory write-downs, which could have an adverse impact on our gross margins and profitability. | ||
Property and Equipment | ' | |
Property and Equipment—Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: | ||
Estimated Useful Lives | ||
Building and building improvements | 2 years | |
Evaluation units | 1 year | |
Computer software | 1 year | |
Computer equipment and tooling | 2 years | |
Furniture and fixtures | 3 years | |
Leasehold improvements | Shorter of useful life or lease term | |
Impairment of Long-Lived Assets | ' | |
Impairment of Long-Lived Assets—We evaluate events and changes in circumstances that could indicate carrying amounts of long-lived assets, including intangible assets, may not be recoverable. When such events or changes in circumstances occur, we assess the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future undiscounted cash flows is less than the carrying amount of those assets, we record an impairment charge in the period in which we make the determination. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Certain purchased intangible assets were measured at fair value resulting in an impairment charge of $0.5 million, which is recorded as Cost of sales in the consolidated statements of operations during fiscal 2013. | ||
Goodwill | ' | |
Goodwill —Goodwill represents the excess of purchase consideration over the estimated fair value of net assets of businesses acquired in a business combination. Goodwill 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 December 31, 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 is less than 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. We have not been required to perform this second step of the process because the fair value of our reporting unit exceeded the net book value as of December 31, 2013. | ||
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 for impairment between annual tests in the presence of impairment indicators. | ||
Other Intangible Assets | ' | |
Other Intangible Assets—Intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed using the straight-line method over the estimated economic lives of the assets, which range from one to six years. | ||
Deferred Revenue and Revenue Recognition | ' | |
Revenue Recognition—We derive revenue from sales of products, including appliances and software, and services, including subscription, support and other services. The majority of our products are hardware appliances containing software components that function together to provide the essential functionality of the product.We record revenue from our hardware appliances in accordance with general revenue recognition accounting guidance. | ||
Our product revenue also includes software products that may operate on the hardware appliances, but are not considered essential to the functionality of the hardware and are subject to industry-specific software revenue recognition guidance. Certain of our software, when sold with our appliances, are considered essential to their functionality and as a result are accounted for as non-software deliverables. However, this same software, if sold separately, is accounted for under industry-specific software revenue recognition guidance. | ||
When a sales arrangement contains multiple elements, such as hardware appliances, software, customer support services, and/or professional services, we allocate revenue to each element based on a selling price hierarchy. In multiple element arrangements where software is more-than-incidental, revenue is allocated to each separate unit of accounting for each of the non-software deliverables and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement based on the selling price hierarchy. When applying the relative selling price method, we determine the selling price for each deliverable using vendor-specific objective evidence (“VSOE”) of selling price, if it exists, or third-party evidence (“TPE”) of selling price. If neither VSOE nor TPE of selling price exist for a deliverable, we use our best estimate of selling (“BESP”) price for that deliverable. Revenue allocated to each element is then recognized when the basic revenue recognition criteria are met for each element. | ||
VSOE of fair value for elements of an arrangement is based upon the normal pricing practices for those services when sold separately. In establishing VSOE, we require that a substantial majority of the selling prices for a service fall within a reasonably narrow pricing range, generally evidenced by a substantial majority of such historical stand-alone transactions falling within a reasonably narrow range of the median rates. | ||
We are typically not able to determine TPE for our products or services. TPE is determined based on competitor prices for similar deliverables when sold separately which is generally unavailable. | ||
For our hardware appliances, we use BESP as our selling price. For our support and other services, we generally use VSOE as our selling price estimate. When we are unable to establish a selling price using VSOE for our support and other services, we use BESP in our allocation of arrangement consideration. The objective of BESP is to determine the price at which we would transact a sale if the product or service were sold on a stand-alone basis. We determine BESP for a product or service by considering multiple factors including, but not limited to, cost of products, gross margin objectives, pricing practices, geographies, customer classes and distribution channels. | ||
We recognize revenue for our software sales based on industry-specific software revenue recognition guidance. Under industry-specific software revenue recognition guidance, we use the residual method to recognize revenue when a product agreement includes one or more elements to be delivered and VSOE of fair value for all undelivered elements exists. If evidence of the fair value of one or more undelivered elements does not exist, all revenue is generally deferred and recognized when delivery of those elements occurs or when fair value can be established. When the undelivered element for which we do not have VSOE of fair value is support, revenue for the entire arrangement is recognized ratably over the support period. | ||
Revenue is recognized when all of the following criteria have been met: | ||
• | Persuasive evidence of an arrangement exists. Binding contracts or purchase orders are generally used to determine the existence of an arrangement. | |
• | Delivery has occurred or services have been rendered. Delivery occurs when we fulfill an order and title and risk of loss has been transferred. Services revenue is deferred and recognized ratably over the period during which the services are to be performed, which is typically from one to three years. Professional service revenue is recognized upon delivery or completion of performance. | |
• | Sales price is fixed or determinable. We assess whether the sales price is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. In the event payment terms differ from our standard business practices, the sales price is deemed to be not fixed or determinable and revenue is recognized when the payments become due, provided the remaining criteria for revenue recognition have been met. In the event the sales price is subject to refund or adjustment, the sales price is deemed to be not fixed or determinable and revenue is recognized when the refund or adjustment privileges expire provided the remaining criteria for revenue recognition have been met. | |
• | Collectibility is probable. We assess collectibility based primarily on creditworthiness as determined by credit checks and analysis, as well as payment history. | |
For arrangements which include end-customer acceptance criteria, revenue is recognized upon acceptance. We recognize product revenue on sales to distributors that have no general right of return and direct sales to end-customers upon shipment, once all other revenue recognition criteria have been met. Certain distributors that stock our products are granted stock rotation rights,limited rights of return as well as rebates for sales of our products. The arrangement fee for this group of distributors is not fixed and determinable when products are shipped and revenue is therefore deferred and recognized upon sell-through. Substantially all of our products have been sold in combination with services, which consist of subscriptions and/or support. Subscription services provide access to our antivirus, intrusion prevention, web filtering, and anti-spam functionality. Support services include rights to unspecified software upgrades, maintenance releases and patches, telephone and Internet access to technical support personnel, and hardware support. | ||
The subscription and support services start on the date the customer registers the appliance. The customer is then entitled to service for the stated contractual period beginning on the registration date. | ||
We offer certain sales incentives to channel partners. We reduce revenue for estimates of sales returns and allowances. Additionally, in limited circumstances we may permit end-customers, distributors and resellers to return our products, subject to varying limitations, for a refund within a reasonably short period from the date of purchase. We estimate and record reserves for sales incentives and sales returns based on historical experience. | ||
Shipping charges billed to customers are included in revenues and related costs are included in cost of revenue. Sales commissions and other incremental costs to acquire contracts are expensed as incurred. | ||
Deferred Revenue—Deferred revenue consists of amounts that have been invoiced but that have not yet been recognized as revenue. This generally includes subscription and support services which are invoiced upfront and delivered over twelve months or longer. | ||
Income Taxes | ' | |
Income Taxes—We record income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, generally all expected future events other than enactments or changes in the tax law or rates are considered. We assess the likelihood that some portion or all of our deferred tax assets will be recovered from future taxable income within the respective jurisdictions, and to the extent we believe that recovery does not meet the “more-likely-than-not” standard, based solely on its technical merits as of the reporting date, we establish a valuation allowance. | ||
We account for uncertain tax positions in accordance with GAAP, which defines the confidence level that a tax position must meet in order to be recognized in the financial statements. The tax effects of a position are recognized only if it is “more likely than not” to be sustained based solely on its technical merits as of the reporting date. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. | ||
We operate in various tax jurisdictions and are subject to audit by various tax authorities. We provide for tax contingencies whenever it is deemed more likely than not that a tax asset has been impaired or a tax liability has been incurred for events such as tax claims or changes in tax laws. Tax contingencies are based upon their technical merits, relevant tax law and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax contingencies. | ||
Stock-Based Compensation Expense | ' | |
Stock-Based Compensation Expense—We have elected to use the Black-Scholes option pricing model to determine the fair value of our employee stock options and ESPP. The fair value of RSUs is based on the closing market price of our common stock on the date of grant. Stock-based compensation expense is amortized on a straight-line basis, net of estimated forfeitures. PSUs are 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 date of grant and is based on the market price of our common stock on the date of grant 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. | ||
Advertising Expense | ' | |
Advertising Expense—Advertising costs are expensed when incurred and are included in operating expenses in the accompanying consolidated statements of operations. Our advertising expenses were not significant for any periods presented. | ||
Research and Development Costs | ' | |
Research and Development Costs—Research and development costs are expensed as incurred. | ||
Software Development Costs | ' | |
Software Development Costs—The costs to develop software have not been capitalized as we believe our current software development process is essentially completed concurrent with the establishment of technological feasibility. | ||
Accounts Receivable | ' | |
Accounts Receivable—Trade accounts receivable are recorded at the invoiced amount, net of allowances for doubtful accounts and reserves for sales returns and allowances. The allowance for doubtful accounts is based on our assessment of the collectibility of customer accounts. The allowance for doubtful accounts was not significant as of December 31, 2013 and 2012. The reserve for sales returns and allowances is based on specific criteria including agreements to provide rebates and other factors known at the time, as well as estimates of the amount of goods shipped that will be returned. To determine the adequacy of the reserves for sales returns and allowances, we analyze historical experience of actual rebates and returns as well as current product return information. | ||
Warranties | ' | |
Warranties—We generally provide a 1-year warranty on hardware products and a 90-day warranty on software. A provision for estimated future costs related to warranty activities is recorded as a component of cost of product revenues when the product revenues are recognized, based upon historical product failure rates and historical costs incurred in correcting product failures. In the event we change our warranty reserve estimates, the resulting charge against future cost of sales or reversal of previously recorded charges may materially affect our gross margins and operating results. | ||
Foreign Currency Derivatives | ' | |
Foreign Currency Derivatives—Our sales contracts are primarily denominated in U.S. dollars and therefore substantially all of our revenue is not subject to foreign currency translation risk. However, a substantial portion of our operating expenses incurred outside the U.S. are denominated in foreign currencies and are subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Canadian dollar ("CAD"). To help protect against significant fluctuations in value and the volatility of future cash flows caused by changes in currency exchange rates, we engage in foreign currency risk management activities to hedge balance sheet items denominated in CAD. We do not use these contracts for speculative or trading purposes. All of the derivative instruments are with high quality financial institutions and we monitor the creditworthiness of these parties. These contracts typically have maturities between one and three months. We record changes in the fair value of forward exchange contracts related to balance sheet accounts as other expense, net in the consolidated statement of operations. | ||
Additionally, independent of any hedging activities, fluctuations in foreign currency exchange rates may cause us to recognize transaction gains and losses in our consolidated statements of operations. Our hedging activities are intended to reduce, but not eliminate, the impact of currency exchange rate movements. As our hedging activities are relatively short-term in nature and are focused on CAD, long-term material changes in the value of the U.S. dollar against other foreign currencies, such as the EUR, GBP and JPY could adversely impact our operating expenses in the future. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Product Warranty Liability [Table Text Block] | ' | ||||||||
Accrued warranty activities are summarized as follows ($ amounts in 000’s): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Accrued warranty balance—beginning of the period | 2,309 | 2,582 | 1,878 | ||||||
Warranty costs incurred | (3,444 | ) | (2,669 | ) | (1,778 | ) | |||
Provision for warranty for the year, including warranty liabilities assumed in connection with an acquisition | 3,965 | 2,639 | 2,103 | ||||||
Changes in prior period estimates | 207 | (243 | ) | 379 | |||||
Accrued warranty balance—end of the period | 3,037 | 2,309 | 2,582 | ||||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | ' | ||||||||
The notional amount of forward exchange contracts to hedge balance sheet accounts as of December 31, 2013 was (amounts in 000’s): | |||||||||
Buy/Sell | Notional | ||||||||
Balance Sheet Contracts: | |||||||||
Currency—As of December 31, 2013 | |||||||||
CAD | Buy | 21,867 | |||||||
Currency—As of December 31, 2012 | |||||||||
CAD | Buy | 17,968 | |||||||
Financial_Instruments_and_Fair1
Financial Instruments and Fair Value (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Financial Instruments and Fair Value [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||||||
Summary of Investments [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||
The following table summarizes our investments ($ amounts in 000’s): | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 603,185 | 1,506 | (374 | ) | 604,317 | |||||||||||||||||||||||||||||||||||||
Commercial paper | 69,356 | 7 | — | 69,363 | ||||||||||||||||||||||||||||||||||||||
Municipal bonds | 38,815 | 48 | (20 | ) | 38,843 | |||||||||||||||||||||||||||||||||||||
Certificates of deposit and term deposits | 12,645 | 3 | — | 12,648 | ||||||||||||||||||||||||||||||||||||||
U.S. government and agency securities | 2,000 | 1 | — | 2,001 | ||||||||||||||||||||||||||||||||||||||
Total available-for-sale securities | 726,001 | 1,565 | (394 | ) | 727,172 | |||||||||||||||||||||||||||||||||||||
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 ($ amounts in 000’s): | 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 ($ amounts in 000’s): | |||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||||||||
Corporate debt securities | 182,795 | (374 | ) | 500 | — | 183,295 | (374 | ) | Corporate debt securities | 133,006 | (156 | ) | 5,010 | (5 | ) | 138,016 | (161 | ) | ||||||||||||||||||||||||
Commercial paper | 7,897 | — | — | — | 7,897 | — | Commercial paper | 8,464 | (6 | ) | — | — | 8,464 | (6 | ) | |||||||||||||||||||||||||||
Municipal bonds | 14,736 | (20 | ) | — | — | 14,736 | (20 | ) | Total available-for-sale securities | 141,470 | (162 | ) | 5,010 | (5 | ) | 146,480 | (167 | ) | ||||||||||||||||||||||||
Total available-for-sale securities | 205,428 | (394 | ) | 500 | — | 205,928 | (394 | ) | ||||||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||
The contractual maturities of our investments are as follows ($ amounts in 000’s) | ||||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||
Due within one year | 375,497 | 290,719 | ||||||||||||||||||||||||||||||||||||||||
Due within one to three years | 351,675 | 325,892 | ||||||||||||||||||||||||||||||||||||||||
Total | 727,172 | 616,611 | ||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||
The following table presents the fair value of our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2013 and December 31, 2012 ($ amounts in 000’s): | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Aggregate | Quoted | Significant | Significant | Aggregate | Quoted | Significant | Significant | |||||||||||||||||||||||||||||||||||
Fair | Prices in | Other | Other | Fair | Prices in | Other | Other | |||||||||||||||||||||||||||||||||||
Value | Active | Observable | Unobservable | Value | Active | Observable | Unobservable | |||||||||||||||||||||||||||||||||||
Markets For | Remaining | Remaining | Markets For | Remaining | Remaining | |||||||||||||||||||||||||||||||||||||
Identical | Inputs | Inputs | Identical | Inputs | Inputs | |||||||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | 604,317 | — | 604,317 | — | 531,391 | — | 531,391 | — | ||||||||||||||||||||||||||||||||||
Commercial paper | 71,363 | — | 71,363 | — | 41,994 | — | 41,994 | — | ||||||||||||||||||||||||||||||||||
Municipal bonds | 38,843 | — | 38,843 | — | 36,870 | — | 36,870 | — | ||||||||||||||||||||||||||||||||||
Certificates of deposit and term deposits | 12,648 | — | 12,648 | — | 9,105 | — | 9,105 | — | ||||||||||||||||||||||||||||||||||
Money market funds | 5,724 | 5,724 | — | — | 39,871 | 39,871 | — | — | ||||||||||||||||||||||||||||||||||
U.S. government and agency securities | 2,001 | — | 2,001 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total | 734,896 | 5,724 | 729,172 | — | 659,231 | 39,871 | 619,360 | — | ||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||
Contingent consideration | 1,850 | — | — | 1,850 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total | 1,850 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Reported as: | ||||||||||||||||||||||||||||||||||||||||||
Cash equivalents | 7,724 | 42,620 | ||||||||||||||||||||||||||||||||||||||||
Short-term investments | 375,497 | 290,719 | ||||||||||||||||||||||||||||||||||||||||
Long-term investments | 351,675 | 325,892 | ||||||||||||||||||||||||||||||||||||||||
Total | 734,896 | 659,231 | ||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||
The following table presents quantitative information about the inputs and valuation methodologies used for our fair value measurements classified in Level 3 of the fair value hierarchy as of December 31, 2013 ($ amounts in 000’s): | ||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||
Fair | Valuation Technique | Significant Unobservable Input | Range | |||||||||||||||||||||||||||||||||||||||
Value | ||||||||||||||||||||||||||||||||||||||||||
Contingent consideration | $1,850 | Probability Weighted Income Approach | Revenue (in 000's) | $7,000 - $12,000 | ||||||||||||||||||||||||||||||||||||||
Probability of occurrence (%) | 40%-80% |
Inventory_Tables
Inventory (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Inventory Disclosure [Abstract] | ' | |||||
Inventory [Table Text Block] | ' | |||||
Inventory consisted of the following ($ amounts in 000’s): | ||||||
December 31, | December 31, | |||||
2013 | 2012 | |||||
Raw materials | 4,319 | 2,811 | ||||
Finished goods | 40,093 | 15,905 | ||||
Consigned inventory | 4,260 | 2,344 | ||||
Inventory | 48,672 | 21,060 | ||||
Property_and_EquipmentNet_Tabl
Property and Equipment—Net (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Property, Plant and Equipment [Abstract] | ' | |||||
Property, Plant and Equipment [Table Text Block] | ' | |||||
Property and equipment consisted of the following ($ amounts in 000’s): | ||||||
December 31, | December 31, | |||||
2013 | 2012 | |||||
Land | 13,895 | 13,895 | ||||
Building and building improvements | 610 | 610 | ||||
Evaluation units | 23,442 | 18,322 | ||||
Computer equipment and software | 22,442 | 17,176 | ||||
Furniture and fixtures | 1,697 | 1,501 | ||||
Construction-in-progress | 10,947 | — | ||||
Leasehold improvements and tooling | 5,417 | 5,354 | ||||
Total property and equipment | 78,450 | 56,858 | ||||
Less: accumulated depreciation | (41,798 | ) | (31,220 | ) | ||
Property and equipment—net | 36,652 | 25,638 | ||||
Business_Combinations_Business
Business Combinations Business Combinations (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Business Combinations [Abstract] | ' | ||
Schedule of Fair Value of Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||
The following table summarizes the fair value of assets acquired and liabilities assumed ($ 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 | 2,872 | ||
Other assets | 88 | ||
Total assets acquired | 9,067 | ||
Current liabilities | 1,078 | ||
Long-term liabilities | 2,004 | ||
Total liabilities assumed | 3,082 | ||
Total purchase price | 5,985 | ||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets - Net (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||
Schedule of Finite-Lived Intangible Assets by Major Class [Table Text Block] | ' | ||||||||||
The following tables present other intangible assets ($ amounts in 000’s): | |||||||||||
December 31, | |||||||||||
2013 | |||||||||||
Weighted-Average Useful Life (in Years) | Gross | Accumulated Amortization | Net | ||||||||
Finite-lived other intangible assets-net: | |||||||||||
Developed technology | 4.6 | 8,971 | 2,568 | 6,403 | |||||||
Customer relationships | 6 | 500 | 62 | 438 | |||||||
Total other intangible assets—net | 9,471 | 2,630 | 6,841 | ||||||||
December 31, | |||||||||||
2012 | |||||||||||
Weighted-Average Useful Life (in Years) | Gross | Accumulated Amortization | Net | ||||||||
Finite-lived other intangible assets-net: | |||||||||||
Developed technology | 3 | 3,541 | 1,424 | 2,117 | |||||||
Total other intangible assets—net | 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: | |||||||||||
2014 | 1,782 | ||||||||||
2015 | 1,601 | ||||||||||
2016 | 1,287 | ||||||||||
2017 | 901 | ||||||||||
2018 | 900 | ||||||||||
Thereafter | 370 | ||||||||||
Total | 6,841 | ||||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 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): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Numerator: | |||||||||
Net income | 44,273 | 66,836 | 62,492 | ||||||
Denominator: | |||||||||
Basic shares: | |||||||||
Weighted-average common stock outstanding-basic | 162,435 | 158,074 | 152,581 | ||||||
Diluted shares: | |||||||||
Weighted-average common stock outstanding-basic | 162,435 | 158,074 | 152,581 | ||||||
Effect of potentially dilutive securities: | |||||||||
Stock options | 5,685 | 8,214 | 11,200 | ||||||
RSUs | 35 | — | — | ||||||
ESPP | 28 | 41 | — | ||||||
Weighted-average shares used to compute diluted net income per share | 168,183 | 166,329 | 163,781 | ||||||
Net income per share: | |||||||||
Basic | 0.27 | 0.42 | 0.41 | ||||||
Diluted | 0.26 | 0.4 | 0.38 | ||||||
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): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Stock options | 7,397 | 7,183 | 3,893 | ||||||
RSUs | 2,774 | 291 | — | ||||||
ESPP | 419 | 321 | 122 | ||||||
10,590 | 7,795 | 4,015 | |||||||
Deferred_Revenue_Tables
Deferred Revenue (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Deferred Revenue Disclosure [Abstract] | ' | |||||
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | ' | |||||
Deferred revenue consisted of the following ($ amounts in 000’s): | ||||||
December 31, | December 31, | |||||
2013 | 2012 | |||||
Product | 2,915 | 5,411 | ||||
Services | 425,266 | 348,548 | ||||
Ratable and other revenue | 4,447 | 9,226 | ||||
Total deferred revenue | 432,628 | 363,185 | ||||
Reported As: | ||||||
Current | 293,664 | 247,268 | ||||
Non-current | 138,964 | 115,917 | ||||
Total deferred revenue | 432,628 | 363,185 | ||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | ' | ||||||||||||||||||||
The following table summarizes our future principal contractual obligations as of December 31, 2013 ($ amounts in 000's): | |||||||||||||||||||||
Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||
Operating lease commitments | 31,905 | 8,759 | 6,006 | 4,938 | 4,347 | 3,383 | 4,472 | ||||||||||||||
Less: Sublease rental income | 1,140 | 720 | 420 | — | — | — | — | ||||||||||||||
Operating lease commitments, net | 30,765 | 8,039 | 5,586 | 4,938 | 4,347 | 3,383 | 4,472 | ||||||||||||||
Purchase commitments | 37,794 | 37,794 | — | — | — | — | — | ||||||||||||||
Other contract commitments | 9,946 | 9,632 | 173 | 50 | 41 | 50 | — | ||||||||||||||
Total | 78,505 | 55,465 | 5,759 | 4,988 | 4,388 | 3,433 | 4,472 | ||||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 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] | ' | ||||||||||||||
: | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Expected term in years | 4.6 | 4.6 | 4.1 – 4.6 | ||||||||||||
Volatility (%) | 45 – 48 | 46 – 52 | 40 – 57 | ||||||||||||
Risk-free interest rate (%) | 1.2 | 0.7 – 0.9 | 0.6 – 2.0 | ||||||||||||
Dividend rate (%) | — | — | — | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||
Additional information related to our stock options is summarized below ($ amounts in 000's, except per share amounts): | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Weighted-average fair value per share granted | 8.42 | 11.13 | 8.1 | ||||||||||||
Intrinsic value of options exercised | 41,484 | 92,323 | 113,590 | ||||||||||||
Fair value of options vested | 26,411 | 25,350 | 11,800 | ||||||||||||
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, 2010 | 22,489 | 4.21 | |||||||||||||
Granted | 6,526 | 21.05 | |||||||||||||
Forfeited | (1,397 | ) | 11.79 | ||||||||||||
Exercised | (6,229 | ) | 3.21 | ||||||||||||
Balance—December 31, 2011 | 21,389 | 9.14 | |||||||||||||
Granted | 3,401 | 26.38 | |||||||||||||
Forfeited | (1,441 | ) | 19.31 | ||||||||||||
Exercised | (4,778 | ) | 5.69 | ||||||||||||
Balance—December 31, 2012 | 18,571 | 12.4 | |||||||||||||
Granted | 258 | 20.89 | |||||||||||||
Forfeited | (820 | ) | 22.14 | ||||||||||||
Exercised | (2,488 | ) | 5.18 | ||||||||||||
Balance—December 31, 2013 | 15,521 | 13.18 | |||||||||||||
Options vested and expected to vest—December 31, 2013 | 15,496 | 13.17 | 3.24 | 120,178 | |||||||||||
Options exercisable—December 31, 2013 | 12,084 | 10.52 | 2.82 | 118,226 | |||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||||
The following table summarizes information about outstanding and exercisable stock options as of December 31, 2013, as follows (in 000’s, except per share amounts, exercise prices and contractual life): | |||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||
Range of Exercise Prices ($) | Number | Weighted- | Weighted- | Number | Weighted- | ||||||||||
Outstanding | Average | Average | Exercisable | Average | |||||||||||
Remaining | Exercise | Exercise | |||||||||||||
Contractual | Price ($) | Price ($) | |||||||||||||
Life (Years) | |||||||||||||||
0.48–1.20 | 1,331 | 1.75 | 0.97 | 1,331 | 0.97 | ||||||||||
3.74–4.65 | 4,902 | 1.66 | 3.75 | 4,902 | 3.75 | ||||||||||
5.50–6.25 | 152 | 2.71 | 5.64 | 152 | 5.64 | ||||||||||
8.43–8.99 | 1,636 | 3.16 | 8.55 | 1,486 | 8.53 | ||||||||||
15.28–19.94 | 382 | 4.15 | 15.88 | 231 | 15.28 | ||||||||||
20.13–24.92 | 4,835 | 4.41 | 21.32 | 2,902 | 21.2 | ||||||||||
26.70–26.70 | 2,283 | 5.01 | 26.7 | 1,080 | 26.7 | ||||||||||
15,521 | 12,084 | ||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | ||||||||||||||
The following table summarizes the activity and related information for RSUs for the periods presented below (in 000’s, except per share amounts): | |||||||||||||||
Restricted Stock Units Outstanding | |||||||||||||||
Number of Shares | Weighted-Average Grant-Date-Fair Value per Share ($) | ||||||||||||||
Balance—December 31, 2011 | — | — | |||||||||||||
Granted | 873 | 23.79 | |||||||||||||
Forfeited | (43 | ) | 24.76 | ||||||||||||
Vested | — | — | |||||||||||||
Balance—December 31, 2012 | 830 | 23.73 | |||||||||||||
Granted | 4,104 | 21.75 | |||||||||||||
Forfeited | (507 | ) | 21.48 | ||||||||||||
Vested | (228 | ) | 23.89 | ||||||||||||
Balance—December 31, 2013 | 4,199 | 22 | |||||||||||||
RSUs expected to vest—December 31, 2013 | 3,898 | 22.02 | |||||||||||||
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 fiscal 2013 (in 000’s): | |||||||||||||||
Shares withheld for taxes | 70 | ||||||||||||||
Amount withheld for taxes ($) | 1,452 | ||||||||||||||
Schedule of Share-based Payment Award, Equity Instruments Other than Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||
The following table summarizes the weighted-average assumptions relating to our PSUs for fiscal 2013: | |||||||||||||||
Expected term in years | 2.97 | ||||||||||||||
Volatility (%) | 50.11 | ||||||||||||||
Risk-free interest rate (%) | 0.67 | ||||||||||||||
Dividend rate (%) | — | ||||||||||||||
Schedule of Shares Reserved for Future Issuance [Table Text Block] | ' | ||||||||||||||
The following table presents the common stock reserved for future issuance (in 000’s): | |||||||||||||||
December 31, | |||||||||||||||
2013 | |||||||||||||||
Outstanding stock options and RSUs | 19,720 | ||||||||||||||
Reserved for future stock option, RSU and other equity award grants | 27,412 | ||||||||||||||
Reserved for future ESPP issuances | 6,751 | ||||||||||||||
Total common stock reserved for future issuances | 53,883 | ||||||||||||||
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||
In determining the fair value of our ESPP, we use the Black-Scholes option pricing model that employs the following weighted-average assumptions: | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Expected term in years | 0.5 | 0.5 | 0.5 | ||||||||||||
Volatility (%) | 44 | 53.7 | 59.9 | ||||||||||||
Risk-free interest rate (%) | 0.12 | 0.12 | 0.07 | ||||||||||||
Dividend rate (%) | — | — | — | ||||||||||||
Additional information related to the ESPP is provided below (in 000's, except per share amounts): | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Weighted-average fair value per share granted ($) | 6.11 | 7.06 | 6.56 | ||||||||||||
Shares issued under the ESPP | 672 | 577 | — | ||||||||||||
Weighted-average price per share issued ($) | 18.88 | 18.9 | — | ||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||||||||
Stock-based compensation expense is included in costs and expenses as follows ($ amounts in 000’s): | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Cost of product revenue | 383 | 333 | 183 | ||||||||||||
Cost of services revenue | 4,841 | 3,736 | 1,790 | ||||||||||||
Research and development | 13,271 | 9,226 | 4,691 | ||||||||||||
Sales and marketing | 19,526 | 12,793 | 9,325 | ||||||||||||
General and administrative | 6,450 | 4,602 | 3,026 | ||||||||||||
Total stock-based compensation expense | 44,471 | 30,690 | 19,015 | ||||||||||||
The following table summarizes stock-based compensation expense by award type ($ amounts in 000’s) | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Stock options | 20,806 | 24,506 | 17,416 | ||||||||||||
RSUs | 18,968 | 1,714 | — | ||||||||||||
ESPP | 4,697 | 4,470 | 1,599 | ||||||||||||
Total stock-based compensation expense | 44,471 | 30,690 | 19,015 | ||||||||||||
Income Tax Benefit from Stock Option Plans [Table Text Block] | ' | ||||||||||||||
Total income tax benefit associated with stock-based compensation that is recognized in the consolidated statements of operations is as follows ($ amounts in 000’s): | |||||||||||||||
Fiscal Year | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Income tax benefit associated with stock-based compensation | 8,331 | 5,870 | 3,822 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | ' | ||||||||
Income before income taxes consisted of the following ($ amounts in 000’s): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Domestic | 83,076 | 95,730 | 85,411 | ||||||
Foreign | (7,135 | ) | 9,266 | 6,662 | |||||
Total income before income taxes | 75,941 | 104,996 | 92,073 | ||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
The provision for income taxes consisted of the following ($ amounts in 000’s): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Current: | |||||||||
Federal | 43,384 | 43,765 | 34,856 | ||||||
State | 2,490 | 1,992 | 2,785 | ||||||
Foreign | 4,175 | 2,266 | 1,402 | ||||||
Total current | 50,049 | 48,023 | 39,043 | ||||||
Deferred: | |||||||||
Federal | (17,149 | ) | (9,677 | ) | (9,326 | ) | |||
State | (1,232 | ) | (186 | ) | (136 | ) | |||
Foreign | — | — | — | ||||||
Total deferred | (18,381 | ) | (9,863 | ) | (9,462 | ) | |||
Provision for income taxes | 31,668 | 38,160 | 29,581 | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate as follows ($ amounts in 000’s): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Tax at federal statutory tax rate | 26,579 | 36,749 | 32,225 | ||||||
Stock-based compensation expense | 4,571 | 1,570 | 2,222 | ||||||
State taxes—net of federal benefit | 419 | 1,186 | (2,457 | ) | |||||
Domestic production activities deduction | (3,256 | ) | (1,813 | ) | (547 | ) | |||
Research and development credit | (1,650 | ) | (144 | ) | (887 | ) | |||
Foreign income taxed at different rates | 6,672 | (1,845 | ) | (929 | ) | ||||
Other | (1,667 | ) | 2,457 | (46 | ) | ||||
Total provision for income taxes | 31,668 | 38,160 | 29,581 | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets as of the years ended are presented below ($ amount in 000’s): | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carryforward | 2,183 | 587 | |||||||
Deferred revenue | 47,341 | 36,438 | |||||||
Nondeductible reserves and accruals | 16,055 | 13,437 | |||||||
Depreciation and amortization | (465 | ) | 920 | ||||||
General business credit carryforward | 439 | 1,381 | |||||||
Stock-based compensation expense | 15,468 | 9,413 | |||||||
Other | 17 | 12 | |||||||
Total deferred tax assets | 81,038 | 62,188 | |||||||
Summary of Income Tax Contingencies [Table Text Block] | ' | ||||||||
The aggregate changes in the balance of unrecognized tax benefits are as follows ($ amounts in 000’s): | |||||||||
Fiscal Year | |||||||||
2013 | 2012 | 2011 | |||||||
Unrecognized tax benefits, beginning of year | 27,808 | 19,269 | 12,083 | ||||||
Gross increases for tax positions related to the current year | 4,713 | 7,550 | 9,049 | ||||||
Gross increases for tax positions related to the prior year | 405 | 1,479 | — | ||||||
Gross decreases for tax positions related to the prior year | (3,322 | ) | (490 | ) | (1,863 | ) | |||
Unrecognized tax benefits, end of year | 29,604 | 27,808 | 19,269 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 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): | |||||||||
Fiscal Year | |||||||||
Revenue | 2013 | 2012 | 2011 | ||||||
Americas: | |||||||||
United States | 162,327 | 145,369 | 120,456 | ||||||
Other Americas | 90,459 | 71,687 | 52,038 | ||||||
Total Americas | 252,786 | 217,056 | 172,494 | ||||||
Europe, Middle East, and Africa ("EMEA") | 208,979 | 184,175 | 152,385 | ||||||
Asia Pacific and Japan ("APAC") | 153,532 | 132,408 | 108,697 | ||||||
Total revenue | 615,297 | 533,639 | 433,576 | ||||||
Property and Equipment | December 31, | December 31, | |||||||
2013 | 2012 | ||||||||
Americas: | |||||||||
United States | 29,334 | 18,764 | |||||||
Canada | 4,372 | 4,376 | |||||||
Other Americas | 45 | 87 | |||||||
Total Americas | 33,751 | 23,227 | |||||||
EMEA | 1,273 | 1,213 | |||||||
APAC | 1,628 | 1,198 | |||||||
Total property and equipment—net | 36,652 | 25,638 | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||
The following table summarizes the changes in accumulated balances of other comprehensive income for fiscal 2013 and 2012 ($ amounts in 000's): | ||||||||||||
31-Dec-13 | ||||||||||||
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 | 1,950 | 1,755 | (614 | ) | 3,091 | |||||||
Other comprehensive income before reclassifications | (1,617 | ) | (573 | ) | 200 | (1,990 | ) | |||||
Amounts reclassified from accumulated other comprehensive income | — | (14 | ) | 5 | (9 | ) | ||||||
Net current-period other comprehensive income | (1,617 | ) | (587 | ) | 205 | (1,999 | ) | |||||
Ending balance | 333 | 1,168 | (409 | ) | 1,092 | |||||||
31-Dec-12 | ||||||||||||
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 | 1,426 | (1,576 | ) | 552 | 402 | |||||||
Other comprehensive income before reclassifications | 524 | 3,380 | (1,183 | ) | 2,721 | |||||||
Amounts reclassified from accumulated other comprehensive income | — | (49 | ) | 17 | (32 | ) | ||||||
Net current-period other comprehensive income | 524 | 3,331 | (1,166 | ) | 2,689 | |||||||
Ending balance | 1,950 | 1,755 | (614 | ) | 3,091 | |||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | |||||||||||
The following table provides details about the reclassification out of accumulated other comprehensive income for fiscal 2013 and 2012 ($ amounts in 000s): | ||||||||||||
31-Dec-13 | ||||||||||||
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 | (14 | ) | Other expense, net | |||||||||
Tax provision related to items of other comprehensive income or loss | 5 | Provision for income taxes | ||||||||||
Total reclassification for the period | (9 | ) | ||||||||||
31-Dec-12 | ||||||||||||
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 | (49 | ) | Other expense, net | |||||||||
Tax provision related to items of other comprehensive income or loss | 17 | Provision for income taxes | ||||||||||
Total reclassification for the period | (32 | ) |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies , Basis of Presentation (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2009 |
Accounting Policies [Abstract] | ' | ' | ' |
Out-of-period Adjustment Relating to Retired Treasury Stock | $3 | ' | ' |
Repurchase and retirement of common stock (in shares) | ' | 2,100,000 | 1,409,264 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies , Concentration of Credit Risk (Details) (Customer Concentration Risk [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
customers | customers | customers | |
Accounts Receivable [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, benchmark | ' | 10.00% | ' |
Number of customers accounting for 10% or more of concentration risk | 1 | 0 | ' |
Percentage from a single customer | 13.00% | ' | ' |
Sales Revenue [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, benchmark | ' | ' | 10.00% |
Number of customers accounting for 10% or more of concentration risk | 1 | 1 | 0 |
Percentage from a single customer | 12.00% | 11.00% | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies , Foreign Currency Translation (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounting Policies [Abstract] | ' | ' | ' |
Foreign currency transaction gains (losses) | ($1.50) | ($0.50) | ($0.40) |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies , Cash, Cash Equivalents and Available-for-sale Investments (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Short-term investments, minimum original maturity | '3 months |
Short-term investments, maximum original maturity | '1 year |
Long-term investments, minimum original maturity | '1 year |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies , Inventory (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | ' | ' |
Consignment inventory | $4,260,000 | $2,344,000 |
Consignment inventory, raw materials | 4,100,000 | 2,100,000 |
Consignment inventory, finished goods | $200,000 | $200,000 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies , Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Building and building improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '2 years |
Evaluation units [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '1 year |
Computer software [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '1 year |
Computer equipment and tooling [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '2 years |
Furniture and fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, useful life | '3 years |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies , Impairment of Long-Lived Assets (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Accounting Policies [Abstract] | ' |
Impairment of long-lived assets | $0.50 |
Recovered_Sheet1
Summary of Significant Accounting Policies , Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful life of finite-lived intangible assets | '1 year |
Maximum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Useful life of finite-lived intangible assets | '6 years |
Recovered_Sheet2
Summary of Significant Accounting Policies , Revenue Recognition (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum [Member] | ' |
Revenue from External Customer [Line Items] | ' |
Revenue recognition period (in years) | '1 year |
Maximum [Member] | ' |
Revenue from External Customer [Line Items] | ' |
Revenue recognition period (in years) | '3 years |
Recovered_Sheet3
Summary of Significant Accounting Policies , Accounts Receivable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accounting Policies [Abstract] | ' | ' |
Reserve for sales returns | $4.60 | $2.30 |
Recovered_Sheet4
Summary of Significant Accounting Policies , Warranties (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Movement in Standard Product Warranty Accrual [Roll Forward] | ' | ' | ' |
Accrued warranty balance—beginning of the period | $2,309 | $2,582 | $1,878 |
Warranty costs incurred | -3,444 | -2,669 | -1,778 |
Provision for warranty for the year, including warranty liabilities assumed in connection with an acquisition | 3,965 | 2,639 | 2,103 |
Changes in prior period estimates | 207 | -243 | 379 |
Accrued warranty balance—end of the period | $3,037 | $2,309 | $2,582 |
Hardware Products [Member] | ' | ' | ' |
Warranties [Line Items] | ' | ' | ' |
Warranty length | '1 year | ' | ' |
Software Products [Member] | ' | ' | ' |
Warranties [Line Items] | ' | ' | ' |
Warranty length | '90 days | ' | ' |
Recovered_Sheet5
Summary of Significant Accounting Policies , Derivatives (Details) (CAD, CAD) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CAD | ' | ' |
Derivative [Line Items] | ' | ' |
Notional amount of forward exchange contracts | 21,867 | 17,968 |
Investment_in_PrivatelyHeld_Co1
Investment in Privately-Held Company (Details) (USD $) | Aug. 31, 2013 |
In Millions, unless otherwise specified | |
Investments, All Other Investments [Abstract] | ' |
Cost Method Investments, Original Cost | $2 |
Financial_Instruments_and_Fair2
Financial Instruments and Fair Value , Investments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $726,001 | $614,853 |
Unrealized Gains | 1,565 | 1,925 |
Unrealized Losses | -394 | -167 |
Total | 727,172 | 616,611 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' |
Less Than 12 Months, Fair Value | 205,428 | 141,470 |
Less Than 12 Months, Unrealized Losses | -394 | -162 |
12 Months or Greater, Fair Value | 500 | 5,010 |
12 Months or Greater, Unrealized Losses | 0 | -5 |
Total, Fair Value | 205,928 | 146,480 |
Total, Unrealized Losses | -394 | -167 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ' | ' |
Due within one year | 375,497 | 290,719 |
Due within one to three years | 351,675 | 325,892 |
Total | 727,172 | 616,611 |
U.S. government and agency securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 2,000 | ' |
Unrealized Gains | 1 | ' |
Unrealized Losses | 0 | ' |
Total | 2,001 | ' |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ' | ' |
Total | 2,001 | ' |
Corporate debt securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 603,185 | 529,738 |
Unrealized Gains | 1,506 | 1,814 |
Unrealized Losses | -374 | -161 |
Total | 604,317 | 531,391 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' |
Less Than 12 Months, Fair Value | 182,795 | 133,006 |
Less Than 12 Months, Unrealized Losses | -374 | -156 |
12 Months or Greater, Fair Value | 500 | 5,010 |
12 Months or Greater, Unrealized Losses | 0 | -5 |
Total, Fair Value | 183,295 | 138,016 |
Total, Unrealized Losses | -374 | -161 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ' | ' |
Total | 604,317 | 531,391 |
Commercial paper [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 69,356 | 39,229 |
Unrealized Gains | 7 | 22 |
Unrealized Losses | 0 | -6 |
Total | 69,363 | 39,245 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' |
Less Than 12 Months, Fair Value | 7,897 | 8,464 |
Less Than 12 Months, Unrealized Losses | 0 | -6 |
12 Months or Greater, Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Losses | 0 | 0 |
Total, Fair Value | 7,897 | 8,464 |
Total, Unrealized Losses | 0 | -6 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ' | ' |
Total | 69,363 | 39,245 |
Municipal bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 38,815 | 36,787 |
Unrealized Gains | 48 | 83 |
Unrealized Losses | -20 | 0 |
Total | 38,843 | 36,870 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' |
Less Than 12 Months, Fair Value | 14,736 | ' |
Less Than 12 Months, Unrealized Losses | -20 | ' |
12 Months or Greater, Fair Value | 0 | ' |
12 Months or Greater, Unrealized Losses | 0 | ' |
Total, Fair Value | 14,736 | ' |
Total, Unrealized Losses | -20 | ' |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ' | ' |
Total | 38,843 | 36,870 |
Certificates of deposit and term deposits [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 12,645 | 9,099 |
Unrealized Gains | 3 | 6 |
Unrealized Losses | 0 | 0 |
Total | 12,648 | 9,105 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ' | ' |
Total | $12,648 | $9,105 |
Financial_Instruments_and_Fair3
Financial Instruments and Fair Value , Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Estimate of Fair Value [Member] | Reported as [Member] | Reported as [Member] | Reported as [Member] | Reported as [Member] | Reported as [Member] | Reported as [Member] | Reported as [Member] | Reported as [Member] | Income Approach Valuation Technique [Member] | Contingent Liability [Member] | Contingent Liability [Member] |
Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | U.S. government and agency securities [Member] | U.S. government and agency securities [Member] | U.S. government and agency securities [Member] | Corporate debt securities [Member] | Corporate debt securities [Member] | Corporate debt securities [Member] | Corporate debt securities [Member] | Corporate debt securities [Member] | Commercial paper [Member] | Commercial paper [Member] | Commercial paper [Member] | Commercial paper [Member] | Commercial paper [Member] | Municipal bonds [Member] | Municipal bonds [Member] | Municipal bonds [Member] | Municipal bonds [Member] | Municipal bonds [Member] | Certificates of deposit and term deposits [Member] | Certificates of deposit and term deposits [Member] | Certificates of deposit and term deposits [Member] | Certificates of deposit and term deposits [Member] | Certificates of deposit and term deposits [Member] | Money market funds [Member] | Money market funds [Member] | Money market funds [Member] | Money market funds [Member] | Money market funds [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Estimate of Fair Value [Member] | Minimum [Member] | Maximum [Member] | |
Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Cash equivalents [Member] | Cash equivalents [Member] | Short-term investments [Member] | Short-term investments [Member] | Long-term investments [Member] | Long-term investments [Member] | Recurring [Member] | Income Approach Valuation Technique [Member] | Income Approach Valuation Technique [Member] | |||||
Level 1 [Member] | Level 2 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | |||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale securities, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | ' | $2,001 | $0 | $2,001 | $604,317 | $531,391 | $0 | $604,317 | $531,391 | $71,363 | $41,994 | $0 | $71,363 | $41,994 | $38,843 | $36,870 | $0 | $38,843 | $36,870 | $12,648 | $9,105 | $0 | $12,648 | $9,105 | $5,724 | $39,871 | $5,724 | $39,871 | $0 | ' | ' | $7,724 | $42,620 | $375,497 | $290,719 | $351,675 | $325,892 | ' | ' | ' |
Total Assets, Fair Value Disclosure | 734,896 | 659,231 | 5,724 | 39,871 | 729,172 | 619,360 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 734,896 | 659,231 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration | 1,850 | ' | ' | ' | ' | ' | 1,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,850 | ' | ' |
Financial Liabilities Fair Value Disclosure | 1,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs, Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,000 | $12,000 |
Fair Value Inputs, Probability of Occurrence | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 80.00% |
Inventory_Details
Inventory (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ' | ' |
Raw materials | $4,319 | $2,811 |
Finished goods | 40,093 | 15,905 |
Consignment inventory | 4,260 | 2,344 |
Inventory | $48,672 | $21,060 |
Property_and_EquipmentNet_Deta
Property and Equipment—Net (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Total property and equipment | $78,450,000 | $56,858,000 | ' |
Less: accumulated depreciation | -41,798,000 | -31,220,000 | ' |
Property and equipment - net | 36,652,000 | 25,638,000 | ' |
Depreciation expense | 13,900,000 | 10,500,000 | 7,000,000 |
Payments to acquire real estate | ' | 14,500,000 | ' |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Total property and equipment | 13,895,000 | 13,895,000 | ' |
Payments to acquire real estate | ' | 13,900,000 | ' |
Building and building improvements [Member] | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Total property and equipment | 610,000 | 610,000 | ' |
Payments to acquire real estate | ' | 600,000 | ' |
Evaluation units [Member] | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Total property and equipment | 23,442,000 | 18,322,000 | ' |
Computer equipment and software [Member] | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Total property and equipment | 22,442,000 | 17,176,000 | ' |
Furniture and fixtures [Member] | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Total property and equipment | 1,697,000 | 1,501,000 | ' |
Construction-in-progress [Member] | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Total property and equipment | 10,947,000 | 0 | ' |
Leasehold improvements and tooling [Member] | ' | ' | ' |
Property, Plant and Equipment, Net, by Type [Abstract] | ' | ' | ' |
Total property and equipment | $5,417,000 | $5,354,000 | ' |
Business_Combinations_2013_Acq
Business Combinations (2013 Acquisitions) (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 13, 2013 | Mar. 21, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 21, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 21, 2013 | Mar. 21, 2013 | Mar. 21, 2013 | Mar. 21, 2013 |
Xtera Communications, Inc. [Member] | Xtera Communications, Inc. [Member] | Coyote Point Systems, Inc. [Member] | Developed Technology [Member] | Developed Technology [Member] | Developed Technology [Member] | Developed Technology [Member] | Customer Relationships [Member] | Customer Relationships [Member] | Payable after Eighteen Months from Acquisition Date [Member] | Payable after Two Years from Acquisition Date [Member] | In Process Research and Development [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] | ||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid to acquire business | ' | ' | ' | $1,700,000 | ' | $6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration | ' | ' | ' | ' | 100,000 | 5,500,000 | ' | ' | ' | ' | ' | ' | 3,500,000 | 2,000,000 | ' |
Cash and cash equivalents | ' | ' | ' | ' | ' | 206,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other current assets | ' | ' | ' | ' | ' | 501,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived intangible assets | ' | ' | ' | 1,500,000 | ' | 2,800,000 | ' | ' | 2,300,000 | ' | ' | 500,000 | ' | ' | ' |
Indefinite-lived intangible assets | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,600,000 |
Goodwill | 2,872,000 | 2,900,000 | 0 | ' | ' | 2,872,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | ' | ' | 88,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets acquired | ' | ' | ' | ' | ' | 9,067,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current liabilities | ' | ' | ' | ' | ' | 1,078,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term liabilities | ' | ' | ' | ' | ' | 2,004,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | ' | ' | 3,082,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase price | ' | ' | ' | ' | ' | 5,985,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of finite-lived intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | '6 years | ' | ' | ' |
Amortizable life of purchased indentifiable intangible assets | ' | ' | ' | ' | ' | ' | '4 years 7 months 17 days | '2 years 11 months 23 days | ' | '6 years | '6 years | ' | ' | ' | ' |
Total consideration | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchased tangible assets | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated contingent obligation | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Combinations_2012_Acq
Business Combinations (2012 Acquisitions) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 |
business | Fiscal 2012 Acquisitions [Member] | Cost of Sales [Member] | |
Developed Technology [Member] | Fiscal 2012 Acquisitions [Member] | ||
Business Acquisition [Line Items] | ' | ' | ' |
Number of businesses acquired | 2 | ' | ' |
Cash paid to acquire business | ' | $1.50 | ' |
Asset impairment charges | ' | ' | $0.50 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Net (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Goodwill | $2,872,000 | $0 | ' | $2,900,000 |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ' |
Gross | 9,471,000 | 3,541,000 | ' | ' |
Accumulated Amortization | 2,630,000 | 1,424,000 | ' | ' |
Total | 6,841,000 | 2,117,000 | ' | ' |
Amortization expense | 1,700,000 | 1,000,000 | 400,000 | ' |
Fiscal Years: | ' | ' | ' | ' |
2014 | 1,782,000 | ' | ' | ' |
2015 | 1,601,000 | ' | ' | ' |
2016 | 1,287,000 | ' | ' | ' |
2017 | 901,000 | ' | ' | ' |
2018 | 900,000 | ' | ' | ' |
Thereafter | 370,000 | ' | ' | ' |
Total | 6,841,000 | 2,117,000 | ' | ' |
Developed Technology [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortizable life of purchased indentifiable intangible assets | '4 years 7 months 17 days | '2 years 11 months 23 days | ' | ' |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ' |
Gross | 8,971,000 | 3,541,000 | ' | ' |
Accumulated Amortization | 2,568,000 | 1,424,000 | ' | ' |
Total | 6,403,000 | 2,117,000 | ' | ' |
Fiscal Years: | ' | ' | ' | ' |
Total | 6,403,000 | 2,117,000 | ' | ' |
Customer Relationships [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Amortizable life of purchased indentifiable intangible assets | '6 years | ' | ' | ' |
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ' |
Gross | 500,000 | ' | ' | ' |
Accumulated Amortization | 62,000 | ' | ' | ' |
Total | 438,000 | ' | ' | ' |
Fiscal Years: | ' | ' | ' | ' |
Total | $438,000 | ' | ' | ' |
Net_Income_Per_Share_Calculati
Net Income Per Share , Calculation of Basic and Diluted (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Line Items] | ' | ' | ' |
Net income | $44,273 | $66,836 | $62,492 |
Basic shares: | ' | ' | ' |
Weighted-average common shares outstanding-basic (in shares) | 162,435 | 158,074 | 152,581 |
Diluted shares: | ' | ' | ' |
Weighted-average common shares outstanding-basic (in shares) | 162,435 | 158,074 | 152,581 |
Effect of potentially dilutive securities: | ' | ' | ' |
Weighted-average shares used to compute diluted net income per share (in shares) | 168,183 | 166,329 | 163,781 |
Basic (in dollars per share) | $0.27 | $0.42 | $0.41 |
Diluted (in dollars per share) | $0.26 | $0.40 | $0.38 |
Stock Options [Member] | ' | ' | ' |
Effect of potentially dilutive securities: | ' | ' | ' |
Employee stock options and purchase rights (in shares) | 5,685 | 8,214 | 11,200 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Effect of potentially dilutive securities: | ' | ' | ' |
Employee stock options and purchase rights (in shares) | 35 | 0 | 0 |
ESPP [Member] | ' | ' | ' |
Effect of potentially dilutive securities: | ' | ' | ' |
Employee stock options and purchase rights (in shares) | 28 | 41 | 0 |
Net_Income_Per_Share_Anti_Dilu
Net Income Per Share , Anti Dilutive Securities (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities (in shares) | 10,590 | 7,795 | 4,015 |
Stock Options [Member] | Stock Compensation Plan [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities (in shares) | 7,397 | 7,183 | 3,893 |
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) | 2,774 | 291 | 0 |
ESPP [Member] | Stock Compensation Plan [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive securities (in shares) | 419 | 321 | 122 |
Deferred_Revenue_Details
Deferred Revenue (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Revenue Arrangement [Line Items] | ' | ' |
Short-term | $293,664 | $247,268 |
Long-term | 138,964 | 115,917 |
Total deferred revenue | 432,628 | 363,185 |
Product [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | 2,915 | 5,411 |
Services [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | 425,266 | 348,548 |
Ratable and other revenue [Member] | ' | ' |
Deferred Revenue Arrangement [Line Items] | ' | ' |
Total deferred revenue | $4,447 | $9,226 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
patent | |||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Operating lease commitments | $31,905,000 | ' | ' |
Rent expense | 9,800,000 | 8,700,000 | 8,200,000 |
Sublease rental income | 700,000 | 800,000 | 700,000 |
Open purchase orders and other contractual obligations | 37,794,000 | ' | ' |
Other contract commitments | $9,946,000 | ' | ' |
Number of patents involved in litigation | 2 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies Minimum Operating Lease Payments (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Lease Commitments: | ' |
Operating lease commitments, 2014 | $8,759 |
Operating lease commitments, 2015 | 6,006 |
Operating lease commitments, 2016 | 4,938 |
Operating lease commitments, 2017 | 4,347 |
Operating lease commitments, 2018 | 3,383 |
Operating lease commitments, Thereafter | 4,472 |
Operating lease commitments | 31,905 |
Sublease Commitments: | ' |
Sublease rental income, 2014 | 720 |
Sublease rental income, 2015 | 420 |
Sublease rental income, 2016 | 0 |
Sublease rental income, 2017 | 0 |
Sublease rental income, 2018 | 0 |
Sublease rental income, Thereafter | 0 |
Sublease rental income | 1,140 |
Operating commitments, net: | ' |
Operating commitments, net, 2014 | 8,039 |
Operating commitments, net, 2015 | 5,586 |
Operating commitments, net, 2016 | 4,938 |
Operating commitments, net, 2017 | 4,347 |
Operating commitments, net, 2018 | 3,383 |
Operating commitments, net, Thereafter | 4,472 |
Operating commitments, net | 30,765 |
Purchase commitments: | ' |
Purchase commitments, 2014 | 37,794 |
Purchase commitments, 2015 | 0 |
Purchase commitments, 2016 | 0 |
Purchase commitments, 2017 | 0 |
Purchase commitments, 2018 | 0 |
Purchase commitments, Thereafter | 0 |
Purchase commitments | 37,794 |
Other contract commitments: | ' |
Other contract commitments, 2014 | 9,632 |
Other contract commitments, 2015 | 173 |
Other contract commitments, 2016 | 50 |
Other contract commitments, 2017 | 41 |
Other contract commitments, 2018 | 50 |
Other contract commitments, Thereafter | 0 |
Other contract commitments | 9,946 |
Contractual Obligation, Due in Third Year | 4,988 |
Contractual Obligation | 78,505 |
Contractual Obligation, Due in Next Twelve Months | 55,465 |
Contractual Obligation, Due in Second Year | 5,759 |
Contractual Obligation, Due in Fourth Year | 4,388 |
Contractual Obligation, Due in Fifth Year | 3,433 |
Contractual Obligation, Due after Fifth Year | $4,472 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2000 | Dec. 31, 2000 | Jan. 28, 2008 | Nov. 17, 2009 | Dec. 31, 2000 | Dec. 31, 2011 | Jan. 28, 2008 | Nov. 17, 2009 | Jan. 28, 2008 | Nov. 17, 2009 | Jan. 28, 2008 | Nov. 17, 2009 | Dec. 31, 2000 | Nov. 17, 2009 | Jan. 02, 2011 | Jan. 02, 2011 | Dec. 31, 2011 | Dec. 31, 2011 |
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Employee Stock [Member] | Employee Stock [Member] | Stock Options and Restricted Stock Units, Outstanding [Member] | Reserved for Future Option, Restricted Stock Unit and Other Equity Award Grants [Member] | Reserved for Future ESPP Issuances [Member] | Stock Plans 2000, 2008 and 2009 [Member] | Stock Plan, 2000 [Member] | Stock Plan, 2000 [Member] | Stock Plan, 2008 [Member] | Stock Plan, 2009 [Member] | Individual Owning 10 Percent or More of Stock [Member] | Individual Owning 10 Percent or More of Stock [Member] | Individual Owning 10 Percent or More of Stock [Member] | Individual Owning 10 Percent or More of Stock [Member] | Employee [Member] | Employee [Member] | Directors and Other Service Providers [Member] | Directors and Other Service Providers [Member] | Individual Owning 10 Percent or Less of Stock [Member] | Individual Owning 10 Percent or Less of Stock [Member] | Share-based Compensation Award Authorized Number Changes, Lesser of Fixed Amount of Shares [Member] | Share-based Compensation Award Authorized Number Changes, Lesser of Outstanding Shares on Last Day of Preceeding Year [Member] | Minimum [Member] | Maximum [Member] | ||
Stock Options, Nonqualifying [Member] | Stock Options [Member] | Stock Plan, 2000 [Member] | Stock Plan, 2000 [Member] | Stock Plan, 2008 [Member] | Stock Plan, 2009 [Member] | Stock Plan, 2008 [Member] | Stock Plan, 2009 [Member] | Stock Plan, 2008 [Member] | Stock Plan, 2009 [Member] | Stock Plan, 2000 [Member] | Stock Plan, 2009 [Member] | Stock Plan, 2009 [Member] | Stock Plan, 2009 [Member] | Stock Options [Member] | Stock Options [Member] | |||||||||||||
Stock Options, Nonqualifying [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options, Nonqualifying [Member] | Stock Options, Nonqualifying [Member] | Stock Options, Nonqualifying [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | ' | ' | ' | ' | 6,750,770 | ' | ' | ' | ' | ' | 21,500,000 | ' | 5,000,000 | 21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of market price for non-statutory options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | 110.00% | ' | 110.00% | 110.00% | 100.00% | 100.00% | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' |
Minimum stock ownership percent triggering early award expiration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award expiration period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | '5 years | ' | ' | ' | ' | '10 years | '7 years | ' | ' | ' | ' |
Award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' |
Number of shares authorized before adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized, maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' |
Increase to number of shares authorized, maximum, percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' |
Maximum stock ownership percent triggering early award expiration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Common stock reserved for future issuances | 53,883,000 | ' | ' | ' | ' | ' | 19,720,000 | 27,412,000 | 6,751,000 | 47,131,910 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum employee subscription rate | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of common stock as percentage of lower of fair market value of common stock on first day of offering period or last day of purchase period | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term in years | ' | '4 years 7 months 6 days | '4 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 1 month 6 days | '4 years 7 months 6 days |
Volatility, minimum | ' | 45.00% | 46.00% | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility, maximum | ' | 48.00% | 52.00% | 47.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (%) | ' | 1.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate, minimum | ' | ' | 0.70% | 0.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate, maximum | ' | ' | 0.90% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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) | ' | 18,571,000 | 21,389,000 | 22,489,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | -258,000 | -3,401,000 | -6,526,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | -820,000 | -1,441,000 | -1,397,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | ' | -2,488,000 | -4,778,000 | -6,229,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance - Ending (in shares) | ' | 15,521,000 | 18,571,000 | 21,389,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | $9.14 | $4.21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | $20.89 | $26.38 | $21.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | $22.14 | $19.31 | $11.79 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | ' | $5.18 | $5.69 | $3.21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance - Ending (in dollars per share) | ' | $13.18 | $12.40 | $9.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested and expected to vest, Outstanding (in shares) | ' | 15,496,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested and expected to vest, Weighted average exercise price (in dollars per share) | ' | $13.17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested and expected to vest, Weighted average remaining contractual life (in years) | ' | '3 years 2 months 28 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options vested and expected to vest, Aggregate intrinsic value | ' | 120,178,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable, Outstanding (in shares) | ' | 12,084,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable, Weighted average exercise price (in dollars per share) | ' | $10.52 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable, Weighted average remaining contractual life (in years) | ' | '2 years 9 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options exercisable, Aggregate intrinsic value | ' | 118,226,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost not yet recognized | ' | 39,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost not yet recognized period of recognition | ' | '1 year 9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average fair value per share granted | ' | $8.42 | $11.13 | $8.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised | ' | 41,484,000 | 92,323,000 | 113,590,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of awards vested | ' | $26,411,000 | $25,350,000 | $11,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Range_of_O
Stockholders' Equity , Range of Options (Details) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Options Outstanding, Number Outstanding (in shares) | 15,521 |
Options Exercisable, Number Exercisable (in shares) | 12,084 |
Range, 0.48 to 1.20 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price, minimum (in dollars per share) | $0.48 |
Exercise Price, maximum (in dollars per share) | $1.20 |
Options Outstanding, Number Outstanding (in shares) | 1,331 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | '1 year 9 months |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $0.97 |
Options Exercisable, Number Exercisable (in shares) | 1,331 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $0.97 |
Range, 3.74 to 4.65 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price, minimum (in dollars per share) | $3.74 |
Exercise Price, maximum (in dollars per share) | $4.65 |
Options Outstanding, Number Outstanding (in shares) | 4,902 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | '1 year 7 months 27 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $3.75 |
Options Exercisable, Number Exercisable (in shares) | 4,902 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $3.75 |
Range, 5.50 to 6.25 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price, minimum (in dollars per share) | $5.50 |
Exercise Price, maximum (in dollars per share) | $6.25 |
Options Outstanding, Number Outstanding (in shares) | 152 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | '2 years 8 months 17 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $5.64 |
Options Exercisable, Number Exercisable (in shares) | 152 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $5.64 |
Range, 8.43 to 8.99 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price, minimum (in dollars per share) | $8.43 |
Exercise Price, maximum (in dollars per share) | $8.99 |
Options Outstanding, Number Outstanding (in shares) | 1,636 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | '3 years 1 month 28 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $8.55 |
Options Exercisable, Number Exercisable (in shares) | 1,486 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $8.53 |
Range, 15.28 to 19.94 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price, minimum (in dollars per share) | $15.28 |
Exercise Price, maximum (in dollars per share) | $19.94 |
Options Outstanding, Number Outstanding (in shares) | 382 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | '4 years 1 month 24 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $15.88 |
Options Exercisable, Number Exercisable (in shares) | 231 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $15.28 |
Range, 20.13 to 24.92 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price, minimum (in dollars per share) | $20.13 |
Exercise Price, maximum (in dollars per share) | $24.92 |
Options Outstanding, Number Outstanding (in shares) | 4,835 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | '4 years 4 months 28 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $21.32 |
Options Exercisable, Number Exercisable (in shares) | 2,902 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $21.20 |
Range, 26.70 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Exercise Price, minimum (in dollars per share) | $26.70 |
Exercise Price, maximum (in dollars per share) | $26.70 |
Options Outstanding, Number Outstanding (in shares) | 2,283 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | '5 years 4 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $26.70 |
Options Exercisable, Number Exercisable (in shares) | 1,080 |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $26.70 |
Stockholders_Equity_Restricted
Stockholders' Equity , Restricted Stock Units Activity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Tax withholding upon vesting of restricted stock awards | $1,452,000 | $0 | $0 |
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, beginning | 830,000 | 0 | ' |
Granted | 4,104,000 | 873,000 | ' |
Forfeited | -507,000 | -43,000 | ' |
Vested | -228,000 | 0 | ' |
Balance, ending | 4,199,000 | 830,000 | ' |
RSUs expected to vest—December 31, 2013 | 3,898,000 | ' | ' |
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)—beginning | $23.73 | $0 | ' |
Granted, weighted-average grant-date fair value per share (in dollars per share) | $21.75 | $23.79 | ' |
Forfeited, weighted-average grant-date fair value per share (in dollars per share) | $21.48 | $24.76 | ' |
Vested, weighted-average grant-date fair value per share (in dollars per share) | $23.89 | $0 | ' |
Balance, weighted-average grant-date fair value per share (in dollars per share)—ending | $22 | $23.73 | ' |
RSUs expected to vest, weighted-average grant-date fair value per share (in dollars per share)—December 31, 2012 | $22.02 | ' | ' |
Compensation cost not yet recognized | 82,600,000 | ' | ' |
Compensation cost not yet recognized period of recognition | '2 years 11 months 27 days | ' | ' |
Shares Paid for Tax Withholding for Share Based Compensation | 70,000 | ' | ' |
Tax withholding upon vesting of restricted stock awards | $1,452,000 | ' | ' |
Stockholders_Equity_Performanc
Stockholders' Equity , Performance Stock Units (Details) (Performance Shares [Member], USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Performance Share, Weighted Average Assumptions [Abstract] | ' |
Expected term in years | '2 years 11 months 19 days |
Volatility (%) | 50.11% |
Risk-free interest rate (%) | 0.67% |
Dividend rate (%) | 0.00% |
Granted | 180,000 |
Granted, weighted-average grant-date fair value per share (in dollars per share) | $22.06 |
Forfeited | 50,000 |
Compensation cost not yet recognized | $2.40 |
Compensation cost not yet recognized period of recognition | '2 years 7 months 2 days |
Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Performance share target range, percent | 0.00% |
Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Performance share target range, percent | 150.00% |
Stockholders_Equity_ESPP_Infor
Stockholders' Equity , ESPP Information (Details) (Employee Stock Purchase Plan [Member], USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
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 |
Volatility (%) | 44.00% | 53.70% | 59.90% |
Risk-free interest rate (%) | 0.12% | 0.12% | 0.07% |
Dividend rate (%) | 0.00% | 0.00% | 0.00% |
Weighted-average fair value per share granted (in dollars per share) | $6.11 | $7.06 | $6.56 |
Shares issued under the ESPP (in shares) | 672 | 577 | 0 |
Weighted-average price per share issued (in dollars per share) | $18.88 | $18.90 | $0 |
Stockholders_Equity_Allocation
Stockholders' Equity , Allocation of Stock-Based Compensation Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $44,471 | $30,690 | $19,015 |
Income tax benefit from employee stock option plans | 8,331 | 5,870 | 3,822 |
Cost of Product Revenue [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 383 | 333 | 183 |
Cost of Services Revenue [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 4,841 | 3,736 | 1,790 |
Research and development [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 13,271 | 9,226 | 4,691 |
Selling and marketing [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 19,526 | 12,793 | 9,325 |
General and administrative [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 6,450 | 4,602 | 3,026 |
Stock Options [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 20,806 | 24,506 | 17,416 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 18,968 | 1,714 | 0 |
ESPP [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $4,697 | $4,470 | $1,599 |
Stockholders_Equity_Share_Repu
Stockholders' Equity , Share Repurchase Program (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Dec. 06, 2013 | Dec. 31, 2013 | Dec. 31, 2009 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Stock repurchase program, authorized amount | $200,000,000 | ' | ' |
Stock repurchased in the period, shares | ' | 2,100,000 | 1,409,264 |
Stock repurchased in the period, value | ' | 38,949,000 | ' |
Remaining authorized repurchase amount under the program | ' | $161,100,000 | ' |
Income_Taxes_Reconciliation_of
Income Taxes , Reconciliation of Pre-Tax Income(Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ' | ' | ' |
Domestic | $83,076 | $95,730 | $85,411 |
Foreign | -7,135 | 9,266 | 6,662 |
INCOME BEFORE INCOME TAXES | $75,941 | $104,996 | $92,073 |
Income_Taxes_Provision_for_Inc
Income Taxes , Provision for Income Tax (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $43,384 | $43,765 | $34,856 |
State | 2,490 | 1,992 | 2,785 |
Foreign | 4,175 | 2,266 | 1,402 |
Total current | 50,049 | 48,023 | 39,043 |
Deferred: | ' | ' | ' |
Federal | -17,149 | -9,677 | -9,326 |
State | -1,232 | -186 | -136 |
Foreign | 0 | 0 | 0 |
Total deferred | -18,381 | -9,863 | -9,462 |
Total provision for income taxes | $31,668 | $38,160 | $29,581 |
Income_Taxes_Effective_Tax_Rat
Income Taxes , Effective Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Tax at federal statutory tax rate | $26,579 | $36,749 | $32,225 |
Stock-based compensation expense | 4,571 | 1,570 | 2,222 |
State taxes—net of federal benefit | 419 | 1,186 | -2,457 |
Domestic production activities deduction | -3,256 | -1,813 | -547 |
Research and development credit | -1,650 | -144 | -887 |
Foreign income taxed at different rates | 6,672 | -1,845 | -929 |
Other | -1,667 | 2,457 | -46 |
Total provision for income taxes | $31,668 | $38,160 | $29,581 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes , Deferred Tax Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Deferred Taxes [Line Items] | ' | ' | ' |
Income tax benefit from employee stock option plans | $3,460,000 | $14,278,000 | $26,205,000 |
Deferred tax assets: | ' | ' | ' |
Net operating loss carryforward | 2,183,000 | 587,000 | ' |
Deferred revenue | 47,341,000 | 36,438,000 | ' |
Nondeductible reserves and accruals | 16,055,000 | 13,437,000 | ' |
Depreciation and amortization | -465,000 | 920,000 | ' |
General business credit carryforward | 439,000 | 1,381,000 | ' |
Stock-based compensation | 15,468,000 | 9,413,000 | ' |
Other | 17,000 | 12,000 | ' |
Total deferred tax assets | 81,038,000 | 62,188,000 | ' |
Foreign earnings deemed to be permanently reinvested overseas | 27,500,000 | ' | ' |
State and Local Jurisdiction [Member] | ' | ' | ' |
Deferred tax assets: | ' | ' | ' |
State net operating loss carryforwards | 21,700,000 | ' | ' |
State tax credit carryforwards | 4,200,000 | ' | ' |
California [Member] | ' | ' | ' |
Deferred Taxes [Line Items] | ' | ' | ' |
Amount of unrecognized deferred tax asset relating to tax credits for excess tax benefits for stock-based compensation expense | $3,500,000 | ' | ' |
Income_Taxes_Unrecognized_Tax_
Income Taxes , Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Unrecognized tax benefits that would favoraby affect effective tax rate | $29,200,000 | ' | ' |
Accrued interest and penalties related to uncertain tax benefits | 1,000,000 | 1,500,000 | 600,000 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Unrecognized tax benefits, beginning of year | 27,808,000 | 19,269,000 | 12,083,000 |
Gross increases for tax positions related to the current year | 4,713,000 | 7,550,000 | 9,049,000 |
Gross increases for tax positions related to the prior year | 405,000 | 1,479,000 | 0 |
Gross decreases for tax positions related to the prior year | -3,322,000 | -490,000 | -1,863,000 |
Unrecognized tax benefits, end of year | 29,604,000 | 27,808,000 | 19,269,000 |
Liability for uncertain tax positions | $30,200,000 | $28,800,000 | $19,100,000 |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Benefit Plan [Abstract] | ' | ' | ' |
Matching contribution on employee contributions, Percent | 50.00% | ' | ' |
Maximum contibution percentage of each employee's eligible earnings, Percent | 4.00% | ' | ' |
Matching contributions to the RRSP and 401(k) Plans | $2.10 | $1.80 | $1.50 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
operating_segment | |||
reportable_segment | |||
business_activity | |||
Segment_Managers | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Business activity (in business activities) | 1 | ' | ' |
Segment managers responsible for operations (in segment managers) | 0 | ' | ' |
Number of operating segments (in operating segments) | 1 | ' | ' |
Number of reportable segments (in reportable segments) | 1 | ' | ' |
Revenue | $615,297 | $533,639 | $433,576 |
Property and equipment - net | 36,652 | 25,638 | ' |
Americas [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 252,786 | 217,056 | 172,494 |
Property and equipment - net | 33,751 | 23,227 | ' |
United States | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 162,327 | 145,369 | 120,456 |
Property and equipment - net | 29,334 | 18,764 | ' |
Canada [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment - net | 4,372 | 4,376 | ' |
Other Americas [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 90,459 | 71,687 | 52,038 |
Property and equipment - net | 45 | 87 | ' |
EMEA [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 208,979 | 184,175 | 152,385 |
Property and equipment - net | 1,273 | 1,213 | ' |
APAC [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 153,532 | 132,408 | 108,697 |
Property and equipment - net | $1,628 | $1,198 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Changes in Accumulated Balances of Other Comprehensive Income)(Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' |
Beginning balance | $3,091 | $402 |
Other comprehensive income before reclassifications | -1,990 | 2,721 |
Amounts reclassified from accumulated other comprehensive income | -9 | -32 |
Net current-period other comprehensive income | -1,999 | 2,689 |
Ending balance | 1,092 | 3,091 |
Accumulated Other Comprehensive Income, Tax [Roll Forward] | ' | ' |
Beginning balance, tax | -614 | 552 |
Other comprehensive income before reclassifications, tax | 200 | -1,183 |
Amounts reclassified from accumulated other comprehensive income, tax | 5 | 17 |
Net current-period other comprehensive income, tax | 205 | -1,166 |
Ending balance, tax | -409 | -614 |
Foreign Currency Translation Gains and Losses [Member] | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' |
Beginning balance | 1,950 | 1,426 |
Other comprehensive income before reclassifications | -1,617 | 524 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Net current-period other comprehensive income | -1,617 | 524 |
Ending balance | 333 | 1,950 |
Unrealized Gains and Losses on Investments [Member] | ' | ' |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' |
Beginning balance | 1,755 | -1,576 |
Other comprehensive income before reclassifications | -573 | 3,380 |
Amounts reclassified from accumulated other comprehensive income | -14 | -49 |
Net current-period other comprehensive income | -587 | 3,331 |
Ending balance | $1,168 | $1,755 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Reclassification Out of Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
OTHER EXPENSE—Net | ($1,455) | ($485) | ($354) |
Provision for income taxes | -31,668 | -38,160 | -29,581 |
NET INCOME | 44,273 | 66,836 | 62,492 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
OTHER EXPENSE—Net | -14 | -49 | ' |
Provision for income taxes | 5 | 17 | ' |
NET INCOME | ($9) | ($32) | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2014 |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Covenant-not-to-sue | $20 |
Covenant Not to Sue, Term | '6 years |
Schedule_II_Details
Schedule II (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Beginning balance | $115 | $336 | $303 |
Charged to costs and expenses | -83 | -221 | 33 |
Ending balance | 32 | 115 | 336 |
Sales Returns Reserve [Member] | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Beginning balance | 2,267 | 2,351 | 1,979 |
Charged to costs and expenses | 2,306 | -84 | 372 |
Ending balance | $4,573 | $2,267 | $2,351 |