Fortinet (FTNT) 10-Q 3 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
DEI [Abstract]
Entity Registrant Name	FORTINET INC
Entity Central Index Key	1,262,039
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
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		175,760,937

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 823,249	$ 709,003
Short-term investments	375,423	376,522
Accounts receivable—Net of reserves for sales returns and doubtful accounts of $11,685 and $11,235 at March 31, 2017 and December 31, 2016, respectively	270,111	312,998
Inventory	104,978	106,887
Prepaid expenses and other current assets	42,321	33,306
Total current assets	1,616,082	1,538,716
LONG-TERM INVESTMENTS	242,333	224,983
DEFERRED TAX ASSETS	199,186	182,745
PROPERTY AND EQUIPMENT—NET	155,476	137,249
OTHER INTANGIBLE ASSETS—NET	22,535	24,828
GOODWILL	14,553	14,553
OTHER ASSETS	17,218	16,867
TOTAL ASSETS	2,267,383	2,139,941
CURRENT LIABILITIES:
Accounts payable	48,689	56,732
Accrued liabilities	43,449	35,640
Accrued payroll and compensation	73,204	78,138
Income taxes payable	14,129	13,588
Deferred revenue	677,114	645,342
Total current liabilities	856,585	829,440
DEFERRED REVENUE	420,937	390,007
INCOME TAX LIABILITIES	72,993	68,551
OTHER LIABILITIES	18,619	14,262
Total liabilities	1,369,134	1,302,260
COMMITMENTS AND CONTINGENCIES (Note 9)
STOCKHOLDERS’ EQUITY:
Common stock, $0.001 par value—300,000 shares authorized; 175,443 and 173,078 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively	175	173
Additional paid-in capital	850,226	800,653
Accumulated other comprehensive loss	(489)	(765)
Retained earnings	48,337	37,620
Total stockholders’ equity	898,249	837,681
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 2,267,383	$ 2,139,941

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets Parenthetical - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Reserves for sales returns and doubtful accounts	$ 11,685	$ 11,235
Common Stock, par value (dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	300,000	300,000
Common Stock, shares issued	175,443	173,078
Common Stock, shares outstanding	175,443	173,078

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
REVENUE:
Product	$ 135,253	$ 124,572
Service	205,323	160,004
Total revenue	340,576	284,576
COST OF REVENUE:
Product	55,297	49,313
Service	35,267	28,331
Total cost of revenue	90,564	77,644
GROSS PROFIT:
Product	79,956	75,259
Service	170,056	131,673
Total gross profit	250,012	206,932
OPERATING EXPENSES:
Research and development	51,195	44,754
Sales and marketing	170,400	146,103
General and administrative	22,577	19,439
Restructuring charges	430	328
Total operating expenses	244,602	210,624
OPERATING INCOME (LOSS)	5,410	(3,692)
INTEREST INCOME	2,392	1,746
OTHER INCOME (EXPENSE)—NET	302	(1,312)
INCOME (LOSS) BEFORE INCOME TAXES	8,104	(3,258)
BENEFIT FROM INCOME TAXES	(2,613)	(5,376)
NET INCOME	$ 10,717	$ 2,118
Net income per share (Note 7):
Basic (in dollars per share)	$ 0.06	$ 0.01
Diluted (in dollars per share)	$ 0.06	$ 0.01
Weighted-average shares outstanding:
Basic (in shares)	174,489	171,745
Diluted (in shares)	178,278	174,421

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net income	$ 10,717	$ 2,118
Other comprehensive income:
Change in unrealized loss on investments	425	1,888
Tax provision related to change in unrealized loss on investments	149	661
Other comprehensive income—net of taxes	276	1,227
Comprehensive income	$ 10,993	$ 3,345

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 10,717	$ 2,118
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,493	10,550
Amortization of investment premiums	973	1,497
Stock-based compensation	33,331	28,902
Other non-cash items—net	1,469	(372)
Changes in operating assets and liabilities:
Accounts receivable—net	42,437	38,920
Inventory	(3,545)	(527)
Deferred tax assets	(16,589)	(16,709)
Prepaid expenses and other current assets	(8,261)	1,029
Other assets	653	(911)
Accounts payable	(8,287)	(11,426)
Accrued liabilities	2,923	300
Accrued payroll and compensation	(5,267)	(2,945)
Other liabilities	(1,057)	(1,332)
Deferred revenue	61,776	46,106
Income taxes payable	4,983	5,391
Net cash provided by operating activities	129,749	100,591
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments	(133,006)	(115,672)
Sales of investments	6,000	2,867
Maturities of investments	109,207	108,557
Purchases of property and equipment	(13,526)	(29,956)
Net cash used in investing activities	(31,325)	(34,204)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	29,515	17,785
Taxes paid related to net share settlement of equity awards	(13,693)	(9,441)
Repurchase and retirement of common stock	0	(50,000)
Net cash provided by (used in) financing activities	15,822	(41,656)
NET INCREASE IN CASH AND CASH EQUIVALENTS	114,246	24,731
CASH AND CASH EQUIVALENTS—Beginning of period	709,003	543,277
CASH AND CASH EQUIVALENTS—End of period	823,249	568,008
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Liability for purchase of property and equipment	18,704	7,843
Transfers of evaluation units from inventory to property and equipment	$ 5,681	$ 6,671

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Preparation —The unaudited condensed consolidated financial statements of Fortinet, Inc. and its wholly owned subsidiaries (collectively, “we,” “us” or “our”) have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information, as well as the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the year ended December 31, 2016, contained in our Annual Report on Form 10-K filed with the SEC on March 1, 2017. In the opinion of management, all adjustments, which includes normal recurring adjustments, considered necessary for a fair presentation have been included. All intercompany balances, transactions and cash flows have been eliminated. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results for the full year or for any future periods. The condensed consolidated balance sheet as of December 31, 2016 is derived from the audited consolidated financial statements for the year ended December 31, 2016 . The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. There have been no material changes to our significant accounting policies as of and for the three months ended March 31, 2017, except for changes to our policies related to inventory and business combinations. For more information, refer to the “Recently Adopted Accounting Standards.” Recently Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2017-01—Business Combinations: Clarifying the Definition of a Business, which clarifies the definition of a business to assist organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. We elected to early adopt ASU 2017-01 on a prospective basis beginning on January 1, 2017. The adoption of ASU 2017-01 did not have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11—Inventory: Simplifying the Measurement of Inventory, which requires entities to measure most inventory at the lower of cost and net realizable value, replacing the former methodology of measuring inventory at the lower of cost or market. We adopted ASU 2015-11 on a prospective basis beginning on January 1, 2017. The adoption of ASU 2015-11 did not have a significant impact on our consolidated financial statements. Recent Accounting Standards Not Yet Effective In January 2017, the FASB issued ASU 2017-04—Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 from the goodwill impairment test which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under ASU 2017-04, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount, and should recognize an impairment loss for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss not exceeding the total amount of goodwill allocated to that reporting unit. ASU 2016-06 will be effective for us beginning on January 1, 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. At adoption, this update will require a prospective approach. We intend to adopt ASU 2017-04 in the fourth quarter of 2017. We do not believe that ASU 2017-04 will have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16—Income Taxes: —Intra-Entity Transfer of Assets Other Than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-06 will be effective for us beginning on January 1, 2018. We are currently evaluating the impact of adopting ASU 2016-16 on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13—Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for us beginning on January 1, 2020, with the option to adopt early on January 1, 2019. We are currently evaluating the impact of adopting ASU 2016-13 on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02—Leases, which requires the recognition of right-of-use assets and lease liabilities on the consolidated balance sheet for substantially all leases. The new guidance includes a number of optional practical expedients that entities may elect to apply. The new guidance will also require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. This new guidance will be effective for us beginning on January 1, 2019, using a modified retrospective approach. We currently anticipate to early adopt ASU 2016-02 on January 1, 2018. Our ability to early adopt is dependent on system readiness, including software procured from third-party providers, if any, and the completion of our analysis of information necessary to quantify the impact on the prior period financial statements. Based on our current lease portfolio, we estimate the value of leased assets and liabilities that may be recognized could be at least $50.0 million . We are continuing to evaluate the impact of ASU 2016-02 and our estimate is subject to change. We do not believe that ASU 2016-02 will have a material impact on our consolidated statements of operations. In May 2014, the FASB issued ASU 2014-09—Revenue from Contracts with Customers, which outlines a single, comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of ASU 2014-09 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, accordingly, it is possible more judgment and estimates may be required within the revenue recognition process than is required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The FASB has recently issued several amendments to ASU 2014-09, including clarification on accounting for licenses of intellectual property and identifying performance obligations. ASU 2014-09 will be effective for us beginning January 1, 2018. The two permitted transition methods under ASU 2014-09 are the full retrospective method, in which case ASU 2014-09 would be applied to each prior reporting period presented and the cumulative effect of applying ASU 2014-09 would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying ASU 2014-09 would be recognized at the date of initial application. Currently, we are in the process of reviewing our historical contracts to quantify the impact on our consolidated financial statements. Depending on the results of our review, there could be changes to the timing of revenue recognition and certain sales commission and related costs associated with obtaining and fulfilling our customer contracts. These changes may include the acceleration of revenue and associated costs on sales to certain channel partners that are currently accounted for only once the product is sold through to the end-customer. We will be required to capitalize and amortize incremental costs related to obtaining customer contracts, such as sales commission costs. We are also in the process of assessing the appropriate changes to our business processes and upgrading our systems and controls to support recognition and disclosure under ASU 2014-09. We otherwise expect to complete our assessment process, including selecting a transition method for adoption, in the next two quarters of 2017.

Financial Instruments and Fair

Financial Instruments and Fair Value	3 Months Ended
	Mar. 31, 2017
Financial Instruments and Fair Value [Abstract]
FINANCIAL INSTRUMENTS AND FAIR VALUE	FINANCIAL INSTRUMENTS AND FAIR VALUE The following tables summarize our investments (in thousands): March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate debt securities $ 405,681 $ 80 $ (754 ) $ 405,007 Commercial paper 110,434 68 (26 ) 110,476 U.S. government and agency securities 55,764 2 (89 ) 55,677 Municipal bonds 46,227 24 (59 ) 46,192 Certificates of deposit and term deposits (1) 404 — — 404 Total available-for-sale securities $ 618,510 $ 174 $ (928 ) $ 617,756 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate debt securities $ 379,494 $ 43 $ (925 ) $ 378,612 Commercial paper 95,110 23 (25 ) 95,108 U.S. government and agency securities 64,604 16 (79 ) 64,541 Municipal bonds 59,257 3 (235 ) 59,025 Certificates of deposit and term deposits (1) 4,219 — — 4,219 Total available-for-sale securities $ 602,684 $ 85 $ (1,264 ) $ 601,505 (1) The majority of our certificates of deposit and term deposits are foreign deposits. The following tables show the gross unrealized losses and the related fair values of our investments that have been in a continuous unrealized loss position (in thousands): March 31, 2017 Less Than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate debt securities $ 325,615 $ (751 ) $ 11,751 $ (3 ) $ 337,366 $ (754 ) U.S. government and agency securities 46,388 (89 ) — — 46,388 (89 ) Municipal bonds 26,833 (59 ) — — 26,833 (59 ) Commercial paper 31,172 (26 ) — — 31,172 (26 ) Total available-for-sale securities $ 430,008 $ (925 ) $ 11,751 $ (3 ) $ 441,759 $ (928 ) December 31, 2016 Less Than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate debt securities $ 311,980 $ (910 ) $ 13,541 $ (15 ) $ 325,521 $ (925 ) Municipal bonds 52,200 (235 ) — — 52,200 (235 ) U.S. government and agency securities 33,430 (79 ) — — 33,430 (79 ) Commercial paper 17,394 (25 ) — — 17,394 (25 ) Total available-for-sale securities $ 415,004 $ (1,249 ) $ 13,541 $ (15 ) $ 428,545 $ (1,264 ) The contractual maturities of our investments were as follows (in thousands): March 31, December 31, Due within one year $ 375,423 $ 376,522 Due within one to three years 242,333 224,983 Total $ 617,756 $ 601,505 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 comprehensive income. Realized gains and losses on available-for-sale securities are insignificant in the periods presented and are included in Other income (expense)—net in our condensed consolidated statements of operations. We use the specific identification method to determine the cost basis of investments sold. 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 March 31, 2017 . 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 and certain U.S. government and agency securities using quoted prices in active markets for identical assets. The fair value of all other financial instruments was based on quoted prices for similar assets 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. Fair Value of Financial Instruments Assets Measured at Fair Value on a Recurring Basis The following tables present the fair value of our financial assets measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Aggregate Fair Value Quoted Prices in Active Markets For Identical Assets Significant Other Observable Remaining Inputs Significant Other Unobservable Remaining Inputs Aggregate Fair Value Quoted Prices in Active Markets For Identical Assets Significant Other Observable Remaining Inputs Significant Other Unobservable Remaining Inputs (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Assets: Corporate debt securities $ 405,007 $ — $ 405,007 $ — $ 378,612 $ — $ 378,612 $ — Commercial paper 119,965 — 119,965 — 105,097 — 105,097 — U.S. government and agency securities 55,677 45,222 10,455 — 64,541 52,082 12,459 — Municipal bonds 46,192 — 46,192 — 59,025 — 59,025 — Money market funds 21,069 21,069 — — 38,649 38,649 — — Certificates of deposit and term deposits 404 — 404 — 4,219 — 4,219 — Total $ 648,314 $ 66,291 $ 582,023 $ — $ 650,143 $ 90,731 $ 559,412 $ — Reported as: Cash equivalents $ 30,558 $ 48,638 Short-term investments 375,423 376,522 Long-term investments 242,333 224,983 Total $ 648,314 $ 650,143 There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2017 .

Inventory

Inventory	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Inventory consisted of the following (in thousands): March 31, December 31, Raw materials $ 16,540 $ 18,924 Finished goods 88,438 87,963 Inventory $ 104,978 $ 106,887

Property and Equipment_Net

Property and Equipment—Net	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT—Net	PROPERTY AND EQUIPMENT—NET Property and equipment—net consisted of the following (in thousands): March 31, December 31, Computer equipment and software $ 70,048 $ 65,323 Building and building improvements 56,373 49,783 Land 44,198 35,079 Leasehold improvements 20,542 18,699 Evaluation units 19,701 20,173 Furniture and fixtures 14,153 13,995 Construction-in-progress 6,201 4,669 Total property and equipment 231,216 207,721 Less: accumulated depreciation (75,740 ) (70,472 ) Property and equipment—net $ 155,476 $ 137,249 Depreciation expense was $11.2 million and $9.4 million for the three months ended March 31, 2017 and March 31, 2016 , respectively.

Investments in Privately-Held C

Investments in Privately-Held Companies	3 Months Ended
	Mar. 31, 2017
Investments, All Other Investments [Abstract]
INVESTMENTS IN PRIVATELY-HELD COMPANIES	INVESTMENTS IN PRIVATELY HELD COMPANIES Our investments in the equity securities of privately held companies totaled $11.3 million and $10.3 million as of March 31, 2017 and December 31, 2016 , respectively. These investments are accounted for as cost-basis investments, as we own less than 20% of the voting securities in each these investments and do not have the ability to exercise significant influence over operating and financial policies of the respective entities. These investments are carried at historical cost and are recorded as other assets on our condensed consolidated balance sheets and would be measured at fair value if indicators of impairment existed. As of March 31, 2017 , no events have occurred that would adversely affect the carrying value of these investments. As of March 31, 2017, we determined that we had a variable interest in these privately held companies. However, we determined that we were not the primary beneficiary as we did not have the power to direct their activities that most significantly affect their economic performance. The variable interest entities are not required to be consolidated in our condensed consolidated financial statements.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets - Net	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS - Net	GOODWILL AND OTHER INTANGIBLE ASSETS—NET Goodwill As of March 31, 2017 , we had goodwill of $14.6 million . There were no impairments to goodwill during the three months ended March 31, 2017 or during previous periods. Other Intangible Assets—net The following tables present other intangible assets—net as of March 31, 2017 and December 31, 2016 (in thousands, except years): March 31, 2017 Weighted-Average Useful Life (in Years) Gross Accumulated Amortization Net Other intangible assets—net: Finite-lived intangible assets: Developed technologies and other 3.8 $ 23,984 $ 10,000 $ 13,984 Customer relationships 4.7 14,500 7,549 6,951 38,484 17,549 20,935 Indefinite-lived intangible assets: In-process research and development 1,600 — 1,600 Total other intangible assets—net $ 40,084 $ 17,549 $ 22,535 December 31, 2016 Weighted-Average Useful Life (in Years) Gross Accumulated Amortization Net Other intangible assets—net: Finite-lived intangible assets: Developed technologies and other 3.8 $ 23,984 $ 8,750 $ 15,234 Customer relationships 4.7 14,500 6,506 7,994 38,484 15,256 23,228 Indefinite-lived intangible assets: In-process research and development 1,600 — 1,600 Total other intangible assets—net $ 40,084 $ 15,256 $ 24,828 Amortization expense was $2.3 million and $1.2 million during the three months ended March 31, 2017 and March 31, 2016 , respectively. The following table summarizes estimated future amortization expense of finite-lived intangible assets—net (in thousands): Amount Years: 2017 (remainder) $ 6,280 2018 6,885 2019 5,406 2020 2,364 Total $ 20,935

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2017
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 restricted stock units (“RSUs”), stock options and the employee stock purchase plan (“ESPP”). 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 (in thousands, except per share amounts): Three Months Ended March 31, March 31, Numerator: Net income $ 10,717 $ 2,118 Denominator: Basic shares: Weighted-average common stock outstanding-basic 174,489 171,745 Diluted shares: Weighted-average common stock outstanding-basic 174,489 171,745 Effect of potentially dilutive securities: RSUs 2,216 1,020 Stock options 1,523 1,632 ESPP 50 24 Weighted-average shares used to compute diluted net income per share 178,278 174,421 Net income per share: Basic $ 0.06 $ 0.01 Diluted $ 0.06 $ 0.01 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 thousands): Three Months Ended March 31, March 31, RSUs 2,505 6,351 Stock options 1,118 1,559 ESPP 262 282 3,885 8,192

Restructuring Charges

Restructuring Charges	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
RESTRUCTURING CHARGES	RESTRUCTURING CHARGES In 2016 and 2015, we implemented plans to restructure and further improve efficiencies in our operations due primarily to acquisitions. The remaining restructuring reserve as of March 31, 2017 is included in accrued liabilities on the condensed consolidated balance sheets and is expected to be paid in 2017. Restructuring charges related to these plans consisted primarily of employee severance and other one-time benefits paid in cash and are included in operating expense in the condensed consolidated statements of operations. Activities related to the restructuring actions are summarized as follows (in thousands): Three Months Ended March 31, March 31, Balance at beginning of period $ 1,151 $ 3,918 Costs incurred 430 328 Cash payments (567 ) (1,407 ) Non-cash items — (89 ) Balance at end of period $ 1,014 $ 2,750

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The following table summarizes our future principal contractual obligations as of March 31, 2017 (in thousands): Total 2017 (remainder) 2018 2019 2020 2021 Thereafter Operating lease commitments $ 61,354 $ 13,083 $ 14,401 $ 11,972 $ 9,497 $ 4,088 $ 8,313 Inventory purchase commitments 68,846 68,846 — — — — — Other contractual commitments and open purchase orders 71,534 60,959 8,402 1,522 560 91 — Total $ 201,734 $ 142,888 $ 22,803 $ 13,494 $ 10,057 $ 4,179 $ 8,313 Operating Leases —We lease certain facilities under various non-cancelable operating leases, which expire through 2024. Certain leases require us to pay variable costs such as taxes, maintenance, and insurance. The terms of certain operating leases also provide for renewal options and escalation clauses. Rent expense was $4.5 million and $4.6 million during the three months ended March 31, 2017 and March 31, 2016 , respectively. Rent expense is recognized using the straight-line method over the term of the lease. Inventory Purchase 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 March 31, 2017 , we had $68.8 million of open purchase orders with our independent contract manufacturers that may not be cancelable. Other Contractual Commitments and Open Purchase Orders —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 March 31, 2017 , we had $71.5 million in other contractual commitments that may not be cancelable. We also had other contractual commitments for the purchase of certain real estate properties adjacent to our corporate headquarters amounting to $12.8 million , which we capitalized as part of property and equipment. Litigation —We are involved in disputes, litigation, and other legal actions. For lawsuits where we are the defendant, we are in the process of 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 fees, including contingent legal fees with related parties, costs and substantial settlement charges, and possibly subject us to damages and other penalties. 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. As required under ASC 450, Contingencies , issued by the FASB, we accrue for contingencies when we believe that a loss is probable and that we can reasonably estimate the amount of any such loss. In October 2016, we received a letter from the United States Attorney’s Office for the Northern District of California requesting information relating to our compliance with the Trade Agreements Act. This inquiry is ongoing and we are fully cooperating with this inquiry. Indemnification —Under the indemnification provisions of our standard sales contracts, we agree to defend our customers against third-party claims asserting various allegations such as product defects and infringement of certain intellectual property rights, which may include patents, copyrights, trademarks or trade secrets, and to pay judgments entered on such claims. In some contracts, our exposure under these indemnification provisions is limited by the terms of the contracts to certain defined limits, such as the total amount paid by our customer under the agreement. However, certain agreements include covenants, penalties and indemnification provisions including and beyond indemnification for third-party claims of intellectual property infringement and that could potentially expose us to losses in excess of the amount received under the agreement, and in some instances to potential liability that is not contractually limited. To date, there have been no material awards under such indemnification provisions.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS’ EQUITY Stock-Based Compensation Plans We have stock-based compensation plans pursuant to which we have granted stock options and RSUs. We also have an ESPP for all eligible employees. As of March 31, 2017, there were a total of 50,087,833 shares of common stock available for grant under our stock-based compensation plans. Restricted Stock Units The following table summarizes the activity and related information for RSUs for the periods presented below (in thousands, except per share amounts): Restricted Stock Units Outstanding Number of Shares Weighted-Average Grant Date Fair Value per Share Balance—December 31, 2016 9,509 $ 31.01 Granted 2,582 37.21 Forfeited (301 ) 33.80 Vested (1,299 ) 27.43 Balance—March 31, 2017 10,491 $ 33.04 As of March 31, 2017 , total compensation expense related to unvested RSUs that were granted to employees and non-employees under the 2009 Plan, but not yet recognized, was $310.3 million . This expense is expected to be amortized on a straight-line basis over a weighted-average vesting period of 2.9 years. RSUs settle into shares of common stock upon vesting. Upon the vesting of the RSUs, we net-settle the RSUs and withhold a portion of the shares to satisfy minimum statutory employee withholding taxes. Total payment for the employees’ tax obligations to the taxing authorities is reflected as a financing activity within the condensed consolidated statements of cash flows. The following summarizes the number and value of the shares withheld for employee taxes (in thousands): Three Months Ended March 31, March 31, Shares withheld for taxes 413 343 Amount withheld for taxes $ 13,693 $ 9,441 Employee Stock Options The following table summarizes the weighted-average assumptions relating to our employee stock options: Three months Ended March 31, March 31, Expected term in years 4.4 4.3 Volatility 36 % 43 % Risk-free interest rate 1.9 % 1.1 % Dividend rate — % — % The following table summarizes the stock option activity and related information for the periods presented below (in thousands, except exercise prices and contractual life): Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance—December 31, 2016 6,187 $ 23.79 Granted 498 37.24 Forfeited (46 ) 27.24 Exercised (855 ) 14.67 Balance—March 31, 2017 5,784 $ 26.27 Options vested and expected to vest—March 31, 2017 5,784 $ 26.27 3.4 $ 71,951 Options exercisable—March 31, 2017 3,820 $ 23.91 2.2 $ 56,071 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 March 31, 2017 , for all in-the-money stock options. As of March 31, 2017 , total compensation expense related to unvested stock options granted to employees but not yet recognized was $19.5 million . This expense is expected to be amortized on a straight-line basis over a weighted-average period of 3.0 years. Additional information related to our stock options is summarized below (in thousands, except per share amounts): Three Months Ended March 31, March 31, Weighted-average fair value per share granted $ 12.22 $ 8.68 Intrinsic value of options exercised 17,898 19,424 Fair value of options vested 3,395 2,084 Employee Stock Purchase Plan In determining the fair value of the ESPP, we use the Black-Scholes option pricing model that employs the following weighted-average assumptions: Three Months Ended March 31, March 31, Expected term in years 0.5 0.5 Volatility 33 % 48 % Risk-free interest rate 0.7 % 0.4 % Dividend rate — % — % Additional information related to the ESPP is provided below (in thousands, except per share amounts): Three Months Ended March 31, March 31, Weighted-average fair value per share granted $ 9.28 $ 7.19 Shares issued under the ESPP 634 614 Weighted-average price per share issued $ 27.97 $ 20.49 Stock-based Compensation Expense Stock-based compensation expense is included in costs and expenses as follows (in thousands): Three Months Ended March 31, March 31, Cost of product revenue $ 342 $ 280 Cost of service revenue 2,310 2,134 Research and development 7,898 7,143 Sales and marketing 19,026 15,815 General and administrative 3,755 3,530 Total stock-based compensation expense $ 33,331 $ 28,902 The following table summarizes stock-based compensation expense by award type (in thousands): Three Months Ended March 31, March 31, RSUs $ 29,041 $ 25,103 Stock options 1,845 1,954 ESPP 2,445 1,845 Total stock-based compensation expense $ 33,331 $ 28,902 Total income tax benefit associated with stock-based compensation that is recognized in the condensed consolidated statements of operations is as follows (in thousands): Three Months Ended March 31, March 31, Income tax benefit associated with stock-based compensation $ 6,645 $ 7,321 Share Repurchase Program In January 2016, our board of directors approved the 2016 Share Repurchase Program (the “2016 Repurchase Program”), which authorizes the repurchase of up to $200.0 million of our outstanding common stock through December 31, 2017. In October 2016, our board of directors authorized the purchase of an additional $100.0 million of shares of our common stock under the 2016 Repurchase Program, increasing our current authorization to $300.0 million through December 31, 2017. Under the 2016 Repurchase Program, share repurchases may be made by us from time to time in privately negotiated transactions or in open market transactions. The 2016 Repurchase 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. There were no shares repurchased under the 2016 Repurchase Program during the three months ended March 31, 2017. As of March 31, 2017, $189.2 million remained available for future share repurchases under the 2016 Repurchase Program.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES Our effective tax rate was a benefit of (32)% for the three months ended March 31, 2017, compared to an effective tax rate of 165% for the same period last year. The effective tax rates for the periods presented are comprised of U.S. federal and state taxes, withholding taxes and foreign income taxes. The tax rate for the three months ended March 31, 2017 was impacted by the excess tax benefits of $5.5 million on stock options, which was a significant benefit on our income before income taxes. The tax rate for the three months ended March 31, 2016 was also impacted by significant excess tax benefits of $3.6 million on stock options on our loss before income taxes. As of March 31, 2017 and December 31, 2016, unrecognized tax benefits were $69.4 million and $65.5 million , respectively. The total amount of $67.7 million in unrecognized tax benefits, if recognized, would favorably affect our effective tax rate. It is our policy to classify accrued interest and penalties related to uncertain tax benefits in the provision for income taxes. As of March 31, 2017 and December 31, 2016, accrued interest and penalties were $10.5 million and $9.5 million , respectively. As of March 31, 2017 , 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 in various U.S. state and foreign jurisdictions. Generally, we are no longer subject to U.S. state and non-U.S. income tax examinations by tax authorities for tax years prior to 2009. We are no longer subject to examination by U.S federal income tax authorities for tax years prior to 2012. We are currently under examination by U.S federal income tax authorities for tax years 2012, 2013 and 2014. We have filed a waiver extending the statute of limitations to September 15, 2018 for U.S. federal income tax returns for tax years 2012 and 2013. In addition, the tax authorities in France are examining the inter-company relationship between Fortinet, Inc., Fortinet France and Fortinet Singapore. Subsequent to the three months ended March 31, 2017, we received a notice from the French tax authorities that an audit was officially opened for tax years from 2007 to 2015. Our Japan tax audit for tax years 2013, 2014 and 2015 was closed with no material adjustment.

Defined Contribution Plans

Defined Contribution Plans	3 Months Ended
	Mar. 31, 2017
Compensation and Retirement Disclosure [Abstract]
DEFINED CONTRIBUTION PLANS	DEFINED CONTRIBUTION PLANS Our tax-deferred savings plan under our 401(k) Plan, permits participating employees to defer a portion of their pre-tax earnings. In Canada, we have a Group Registered Retirement Savings Plan Program (the “RRSP”), which permits participants to make tax deductible contributions. Our board of directors approved 50% matching contributions on employee contributions up to 4% of each employee’s eligible earnings. Our matching contributions to our 401(k) Plan and the RRSP for the three months ended March 31, 2017 and March 31, 2016 were $1.3 million and $1.0 million , respectively.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT AND SIGNIFICANT CUSTOMER 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—net by geographic region (in thousands): Three Months Ended Revenue March 31, 2017 March 31, 2016 Americas: U.S. $ 90,772 $ 75,558 Canada 37,345 31,305 Latin America (“LATAM”) 18,247 13,183 Total Americas 146,364 120,046 Europe, Middle East and Africa (“EMEA”) 126,149 105,491 Asia Pacific (“APAC”) 68,063 59,039 Total revenue $ 340,576 $ 284,576 Property and Equipment — net March 31, December 31, Americas: U.S. $ 111,464 $ 96,414 Canada 16,274 12,881 LATAM 475 607 Total Americas 128,213 109,902 EMEA: France 12,854 13,241 Other EMEA 6,232 6,391 Total EMEA 19,086 19,632 APAC 8,177 7,715 Total property and equipment—net $ 155,476 $ 137,249 The following customers, each of which is a distributor, accounted for 10% or more of our revenue: Three Months Ended March 31, March 31, Exclusive Networks Group 20 % 19 % Fine Tec Computers 12 % * * Represents less than 10% The following customers, each of which is a distributor, accounted for 10% or more of net accounts receivable: March 31, December 31, Exclusive Networks Group 22 % 26 % Fine Tec Computers 15 % 10 %

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Mar. 31, 2017
Other Comprehensive Income (Loss), Net of Tax [Abstract]
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the changes in accumulated balances of other comprehensive loss (in thousands): March 31, 2017 Unrealized losses on investments Tax provision related to items of other comprehensive income or loss Total Beginning balance $ (1,179 ) $ 414 $ (765 ) Other comprehensive income before reclassifications 424 (149 ) 275 Amounts reclassified from accumulated other comprehensive loss 1 — 1 Net current-period other comprehensive income 425 (149 ) 276 Ending balance $ (754 ) $ 265 $ (489 ) Amounts reclassified from accumulated other comprehensive loss for unrealized losses on investments and tax provision related to items of other comprehensive income or loss are recorded in Other income (expense)—net and in Benefit from income taxes, respectively.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The son of one member of our board of directors is a partner of an outside law firm that we utilize for certain complex litigation matters. Expenses for legal services provided by the law firm were $0.1 million and $0.3 million during the three months ended March 31, 2017 and March 31, 2016, respectively. Of such amounts, $0.2 million was incurred under contingent fee arrangements in the three months ended March 31, 2016. There were no expenses incurred under contingent fee arrangements during the three months ended March 31, 2017. Amounts due and payable to the law firm were $0.1 million as of March 31, 2017 and December 31, 2016 .

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT In April 2017, we purchased real estate property in Vancouver, Canada totaling approximately 282,000 square feet for a total cash payment of approximately $85.0 million .

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation and Preparation	Basis of Presentation and Preparation —The unaudited condensed consolidated financial statements of Fortinet, Inc. and its wholly owned subsidiaries (collectively, “we,” “us” or “our”) have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information, as well as the instructions to Form 10-Q pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the year ended December 31, 2016, contained in our Annual Report on Form 10-K filed with the SEC on March 1, 2017. In the opinion of management, all adjustments, which includes normal recurring adjustments, considered necessary for a fair presentation have been included. All intercompany balances, transactions and cash flows have been eliminated. The results of operations for the three months ended March 31, 2017 are not necessarily indicative of the results for the full year or for any future periods. The condensed consolidated balance sheet as of December 31, 2016 is derived from the audited consolidated financial statements for the year ended December 31, 2016 . The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. There have been no material changes to our significant accounting policies as of and for the three months ended March 31, 2017, except for changes to our policies related to inventory and business combinations. For more information, refer to the “Recently Adopted Accounting Standards.”
Recently Adopted Accounting Standards and Recent Accounting Standards Not Yet Effective	Recently Adopted Accounting Standards In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2017-01—Business Combinations: Clarifying the Definition of a Business, which clarifies the definition of a business to assist organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. We elected to early adopt ASU 2017-01 on a prospective basis beginning on January 1, 2017. The adoption of ASU 2017-01 did not have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11—Inventory: Simplifying the Measurement of Inventory, which requires entities to measure most inventory at the lower of cost and net realizable value, replacing the former methodology of measuring inventory at the lower of cost or market. We adopted ASU 2015-11 on a prospective basis beginning on January 1, 2017. The adoption of ASU 2015-11 did not have a significant impact on our consolidated financial statements. Recent Accounting Standards Not Yet Effective In January 2017, the FASB issued ASU 2017-04—Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 from the goodwill impairment test which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under ASU 2017-04, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount, and should recognize an impairment loss for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss not exceeding the total amount of goodwill allocated to that reporting unit. ASU 2016-06 will be effective for us beginning on January 1, 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. At adoption, this update will require a prospective approach. We intend to adopt ASU 2017-04 in the fourth quarter of 2017. We do not believe that ASU 2017-04 will have a material impact on our consolidated financial statements. In October 2016, the FASB issued ASU 2016-16—Income Taxes: —Intra-Entity Transfer of Assets Other Than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. ASU 2016-06 will be effective for us beginning on January 1, 2018. We are currently evaluating the impact of adopting ASU 2016-16 on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13—Financial Instruments—Credit Losses—Measurement of Credit Losses on Financial Instruments, which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for us beginning on January 1, 2020, with the option to adopt early on January 1, 2019. We are currently evaluating the impact of adopting ASU 2016-13 on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02—Leases, which requires the recognition of right-of-use assets and lease liabilities on the consolidated balance sheet for substantially all leases. The new guidance includes a number of optional practical expedients that entities may elect to apply. The new guidance will also require significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. This new guidance will be effective for us beginning on January 1, 2019, using a modified retrospective approach. We currently anticipate to early adopt ASU 2016-02 on January 1, 2018. Our ability to early adopt is dependent on system readiness, including software procured from third-party providers, if any, and the completion of our analysis of information necessary to quantify the impact on the prior period financial statements. Based on our current lease portfolio, we estimate the value of leased assets and liabilities that may be recognized could be at least $50.0 million . We are continuing to evaluate the impact of ASU 2016-02 and our estimate is subject to change. We do not believe that ASU 2016-02 will have a material impact on our consolidated statements of operations. In May 2014, the FASB issued ASU 2014-09—Revenue from Contracts with Customers, which outlines a single, comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of ASU 2014-09 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, accordingly, it is possible more judgment and estimates may be required within the revenue recognition process than is required under existing U.S. GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The FASB has recently issued several amendments to ASU 2014-09, including clarification on accounting for licenses of intellectual property and identifying performance obligations. ASU 2014-09 will be effective for us beginning January 1, 2018. The two permitted transition methods under ASU 2014-09 are the full retrospective method, in which case ASU 2014-09 would be applied to each prior reporting period presented and the cumulative effect of applying ASU 2014-09 would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying ASU 2014-09 would be recognized at the date of initial application. Currently, we are in the process of reviewing our historical contracts to quantify the impact on our consolidated financial statements. Depending on the results of our review, there could be changes to the timing of revenue recognition and certain sales commission and related costs associated with obtaining and fulfilling our customer contracts. These changes may include the acceleration of revenue and associated costs on sales to certain channel partners that are currently accounted for only once the product is sold through to the end-customer. We will be required to capitalize and amortize incremental costs related to obtaining customer contracts, such as sales commission costs. We are also in the process of assessing the appropriate changes to our business processes and upgrading our systems and controls to support recognition and disclosure under ASU 2014-09. We otherwise expect to complete our assessment process, including selecting a transition method for adoption, in the next two quarters of 2017.

Financial Instruments and Fai24

Financial Instruments and Fair Value (Tables)	3 Months Ended
	Mar. 31, 2017
Financial Instruments and Fair Value [Abstract]
Summary of Investments	The following tables summarize our investments (in thousands): March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate debt securities $ 405,681 $ 80 $ (754 ) $ 405,007 Commercial paper 110,434 68 (26 ) 110,476 U.S. government and agency securities 55,764 2 (89 ) 55,677 Municipal bonds 46,227 24 (59 ) 46,192 Certificates of deposit and term deposits (1) 404 — — 404 Total available-for-sale securities $ 618,510 $ 174 $ (928 ) $ 617,756 December 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Corporate debt securities $ 379,494 $ 43 $ (925 ) $ 378,612 Commercial paper 95,110 23 (25 ) 95,108 U.S. government and agency securities 64,604 16 (79 ) 64,541 Municipal bonds 59,257 3 (235 ) 59,025 Certificates of deposit and term deposits (1) 4,219 — — 4,219 Total available-for-sale securities $ 602,684 $ 85 $ (1,264 ) $ 601,505 (1) The majority of our certificates of deposit and term deposits are foreign deposits.
Schedule of Unrealized Loss on Investments	The following tables show the gross unrealized losses and the related fair values of our investments that have been in a continuous unrealized loss position (in thousands): March 31, 2017 Less Than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate debt securities $ 325,615 $ (751 ) $ 11,751 $ (3 ) $ 337,366 $ (754 ) U.S. government and agency securities 46,388 (89 ) — — 46,388 (89 ) Municipal bonds 26,833 (59 ) — — 26,833 (59 ) Commercial paper 31,172 (26 ) — — 31,172 (26 ) Total available-for-sale securities $ 430,008 $ (925 ) $ 11,751 $ (3 ) $ 441,759 $ (928 ) December 31, 2016 Less Than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Corporate debt securities $ 311,980 $ (910 ) $ 13,541 $ (15 ) $ 325,521 $ (925 ) Municipal bonds 52,200 (235 ) — — 52,200 (235 ) U.S. government and agency securities 33,430 (79 ) — — 33,430 (79 ) Commercial paper 17,394 (25 ) — — 17,394 (25 ) Total available-for-sale securities $ 415,004 $ (1,249 ) $ 13,541 $ (15 ) $ 428,545 $ (1,264 )
Investments Classified by Contractual Maturity Date	The contractual maturities of our investments were as follows (in thousands): March 31, December 31, Due within one year $ 375,423 $ 376,522 Due within one to three years 242,333 224,983 Total $ 617,756 $ 601,505
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following tables present the fair value of our financial assets measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Aggregate Fair Value Quoted Prices in Active Markets For Identical Assets Significant Other Observable Remaining Inputs Significant Other Unobservable Remaining Inputs Aggregate Fair Value Quoted Prices in Active Markets For Identical Assets Significant Other Observable Remaining Inputs Significant Other Unobservable Remaining Inputs (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Assets: Corporate debt securities $ 405,007 $ — $ 405,007 $ — $ 378,612 $ — $ 378,612 $ — Commercial paper 119,965 — 119,965 — 105,097 — 105,097 — U.S. government and agency securities 55,677 45,222 10,455 — 64,541 52,082 12,459 — Municipal bonds 46,192 — 46,192 — 59,025 — 59,025 — Money market funds 21,069 21,069 — — 38,649 38,649 — — Certificates of deposit and term deposits 404 — 404 — 4,219 — 4,219 — Total $ 648,314 $ 66,291 $ 582,023 $ — $ 650,143 $ 90,731 $ 559,412 $ — Reported as: Cash equivalents $ 30,558 $ 48,638 Short-term investments 375,423 376,522 Long-term investments 242,333 224,983 Total $ 648,314 $ 650,143

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventory	Inventory consisted of the following (in thousands): March 31, December 31, Raw materials $ 16,540 $ 18,924 Finished goods 88,438 87,963 Inventory $ 104,978 $ 106,887

Property and Equipment_Net (Tab

Property and Equipment—Net (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment - Net	Property and equipment—net consisted of the following (in thousands): March 31, December 31, Computer equipment and software $ 70,048 $ 65,323 Building and building improvements 56,373 49,783 Land 44,198 35,079 Leasehold improvements 20,542 18,699 Evaluation units 19,701 20,173 Furniture and fixtures 14,153 13,995 Construction-in-progress 6,201 4,669 Total property and equipment 231,216 207,721 Less: accumulated depreciation (75,740 ) (70,472 ) Property and equipment—net $ 155,476 $ 137,249

Goodwill and Other Intangible27

Goodwill and Other Intangible Assets - Net (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets by Major Class	The following tables present other intangible assets—net as of March 31, 2017 and December 31, 2016 (in thousands, except years): March 31, 2017 Weighted-Average Useful Life (in Years) Gross Accumulated Amortization Net Other intangible assets—net: Finite-lived intangible assets: Developed technologies and other 3.8 $ 23,984 $ 10,000 $ 13,984 Customer relationships 4.7 14,500 7,549 6,951 38,484 17,549 20,935 Indefinite-lived intangible assets: In-process research and development 1,600 — 1,600 Total other intangible assets—net $ 40,084 $ 17,549 $ 22,535 December 31, 2016 Weighted-Average Useful Life (in Years) Gross Accumulated Amortization Net Other intangible assets—net: Finite-lived intangible assets: Developed technologies and other 3.8 $ 23,984 $ 8,750 $ 15,234 Customer relationships 4.7 14,500 6,506 7,994 38,484 15,256 23,228 Indefinite-lived intangible assets: In-process research and development 1,600 — 1,600 Total other intangible assets—net $ 40,084 $ 15,256 $ 24,828
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The following table summarizes estimated future amortization expense of finite-lived intangible assets—net (in thousands): Amount Years: 2017 (remainder) $ 6,280 2018 6,885 2019 5,406 2020 2,364 Total $ 20,935

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows (in thousands, except per share amounts): Three Months Ended March 31, March 31, Numerator: Net income $ 10,717 $ 2,118 Denominator: Basic shares: Weighted-average common stock outstanding-basic 174,489 171,745 Diluted shares: Weighted-average common stock outstanding-basic 174,489 171,745 Effect of potentially dilutive securities: RSUs 2,216 1,020 Stock options 1,523 1,632 ESPP 50 24 Weighted-average shares used to compute diluted net income per share 178,278 174,421 Net income per share: Basic $ 0.06 $ 0.01 Diluted $ 0.06 $ 0.01
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	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 thousands): Three Months Ended March 31, March 31, RSUs 2,505 6,351 Stock options 1,118 1,559 ESPP 262 282 3,885 8,192

Restructuring Charges (Tables)

Restructuring Charges (Tables)	3 Months Ended
	Mar. 31, 2017
Restructuring and Related Activities [Abstract]
Summary of Restructuring Activity	Activities related to the restructuring actions are summarized as follows (in thousands): Three Months Ended March 31, March 31, Balance at beginning of period $ 1,151 $ 3,918 Costs incurred 430 328 Cash payments (567 ) (1,407 ) Non-cash items — (89 ) Balance at end of period $ 1,014 $ 2,750

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Contractual Obligation, Fiscal Year Maturity Schedule	The following table summarizes our future principal contractual obligations as of March 31, 2017 (in thousands): Total 2017 (remainder) 2018 2019 2020 2021 Thereafter Operating lease commitments $ 61,354 $ 13,083 $ 14,401 $ 11,972 $ 9,497 $ 4,088 $ 8,313 Inventory purchase commitments 68,846 68,846 — — — — — Other contractual commitments and open purchase orders 71,534 60,959 8,402 1,522 560 91 — Total $ 201,734 $ 142,888 $ 22,803 $ 13,494 $ 10,057 $ 4,179 $ 8,313

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Restricted Stock Units Award Activity	The following table summarizes the activity and related information for RSUs for the periods presented below (in thousands, except per share amounts): Restricted Stock Units Outstanding Number of Shares Weighted-Average Grant Date Fair Value per Share Balance—December 31, 2016 9,509 $ 31.01 Granted 2,582 37.21 Forfeited (301 ) 33.80 Vested (1,299 ) 27.43 Balance—March 31, 2017 10,491 $ 33.04
Schedule of Share-based Compensation, Shares Withheld for Taxes	The following summarizes the number and value of the shares withheld for employee taxes (in thousands): Three Months Ended March 31, March 31, Shares withheld for taxes 413 343 Amount withheld for taxes $ 13,693 $ 9,441
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The following table summarizes the weighted-average assumptions relating to our employee stock options: Three months Ended March 31, March 31, Expected term in years 4.4 4.3 Volatility 36 % 43 % Risk-free interest rate 1.9 % 1.1 % Dividend rate — % — %
Schedule of Share-based Compensation, Stock Options, Activity	The following table summarizes the stock option activity and related information for the periods presented below (in thousands, except exercise prices and contractual life): Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance—December 31, 2016 6,187 $ 23.79 Granted 498 37.24 Forfeited (46 ) 27.24 Exercised (855 ) 14.67 Balance—March 31, 2017 5,784 $ 26.27 Options vested and expected to vest—March 31, 2017 5,784 $ 26.27 3.4 $ 71,951 Options exercisable—March 31, 2017 3,820 $ 23.91 2.2 $ 56,071
Schedule of Share-based Compensation, Stock Options, Activity, Additional Information	Additional information related to our stock options is summarized below (in thousands, except per share amounts): Three Months Ended March 31, March 31, Weighted-average fair value per share granted $ 12.22 $ 8.68 Intrinsic value of options exercised 17,898 19,424 Fair value of options vested 3,395 2,084
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions	In determining the fair value of the ESPP, we use the Black-Scholes option pricing model that employs the following weighted-average assumptions: Three Months Ended March 31, March 31, Expected term in years 0.5 0.5 Volatility 33 % 48 % Risk-free interest rate 0.7 % 0.4 % Dividend rate — % — %
Schedule of Share-based Payment Award Employee Stock Purchase Plan Additional Information	Additional information related to the ESPP is provided below (in thousands, except per share amounts): Three Months Ended March 31, March 31, Weighted-average fair value per share granted $ 9.28 $ 7.19 Shares issued under the ESPP 634 614 Weighted-average price per share issued $ 27.97 $ 20.49
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	Stock-based compensation expense is included in costs and expenses as follows (in thousands): Three Months Ended March 31, March 31, Cost of product revenue $ 342 $ 280 Cost of service revenue 2,310 2,134 Research and development 7,898 7,143 Sales and marketing 19,026 15,815 General and administrative 3,755 3,530 Total stock-based compensation expense $ 33,331 $ 28,902
Schedule of Employee Service Share based Compensation Allocation of Recognized Period Costs by Award Type	The following table summarizes stock-based compensation expense by award type (in thousands): Three Months Ended March 31, March 31, RSUs $ 29,041 $ 25,103 Stock options 1,845 1,954 ESPP 2,445 1,845 Total stock-based compensation expense $ 33,331 $ 28,902
Income Tax Benefit from Stock Option Plans	Total income tax benefit associated with stock-based compensation that is recognized in the condensed consolidated statements of operations is as follows (in thousands): Three Months Ended March 31, March 31, Income tax benefit associated with stock-based compensation $ 6,645 $ 7,321

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Revenue and Accounts Receivable from external customers by geographic region	Three Months Ended Revenue March 31, 2017 March 31, 2016 Americas: U.S. $ 90,772 $ 75,558 Canada 37,345 31,305 Latin America (“LATAM”) 18,247 13,183 Total Americas 146,364 120,046 Europe, Middle East and Africa (“EMEA”) 126,149 105,491 Asia Pacific (“APAC”) 68,063 59,039 Total revenue $ 340,576 $ 284,576 The following customers, each of which is a distributor, accounted for 10% or more of our revenue: Three Months Ended March 31, March 31, Exclusive Networks Group 20 % 19 % Fine Tec Computers 12 % * * Represents less than 10% The following customers, each of which is a distributor, accounted for 10% or more of net accounts receivable: March 31, December 31, Exclusive Networks Group 22 % 26 % Fine Tec Computers 15 % 10 %
Property and equipment by geographic region	Property and Equipment — net March 31, December 31, Americas: U.S. $ 111,464 $ 96,414 Canada 16,274 12,881 LATAM 475 607 Total Americas 128,213 109,902 EMEA: France 12,854 13,241 Other EMEA 6,232 6,391 Total EMEA 19,086 19,632 APAC 8,177 7,715 Total property and equipment—net $ 155,476 $ 137,249

Accumulated Other Comprehensi33

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Mar. 31, 2017
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Schedule of Accumulated Other Comprehensive (Loss) Income	The following table summarizes the changes in accumulated balances of other comprehensive loss (in thousands): March 31, 2017 Unrealized losses on investments Tax provision related to items of other comprehensive income or loss Total Beginning balance $ (1,179 ) $ 414 $ (765 ) Other comprehensive income before reclassifications 424 (149 ) 275 Amounts reclassified from accumulated other comprehensive loss 1 — 1 Net current-period other comprehensive income 425 (149 ) 276 Ending balance $ (754 ) $ 265 $ (489 )

Summary of Significant Accoun34

Summary of Significant Accounting Policies , Recent Accounting Pronouncements (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Pro Forma [Member] | Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncement, Early Adoption [Line Items]
Expected increase to assets and liabilities upon adoption of new accounting pronouncement	$ 50

Financial Instruments and Fai35

Financial Instruments and Fair Value , Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 618,510	$ 602,684
Unrealized Gains	174	85
Unrealized Losses	(928)	(1,264)
Fair Value	617,756	601,505
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Fair Value	430,008	415,004
Less Than 12 Months, Unrealized Losses	(925)	(1,249)
12 Months or Greater, Fair Value	11,751	13,541
12 Months or Greater, Unrealized Losses	(3)	(15)
Total, Fair Value	441,759	428,545
Total, Unrealized Losses	(928)	(1,264)
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Due within one year	375,423	376,522
Due within one to three years	242,333	224,983
Fair Value	617,756	601,505
Corporate debt securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	405,681	379,494
Unrealized Gains	80	43
Unrealized Losses	(754)	(925)
Fair Value	405,007	378,612
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Fair Value	325,615	311,980
Less Than 12 Months, Unrealized Losses	(751)	(910)
12 Months or Greater, Fair Value	11,751	13,541
12 Months or Greater, Unrealized Losses	(3)	(15)
Total, Fair Value	337,366	325,521
Total, Unrealized Losses	(754)	(925)
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Fair Value	405,007	378,612
Municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	46,227	59,257
Unrealized Gains	24	3
Unrealized Losses	(59)	(235)
Fair Value	46,192	59,025
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Fair Value	26,833	52,200
Less Than 12 Months, Unrealized Losses	(59)	(235)
12 Months or Greater, Fair Value	0	0
12 Months or Greater, Unrealized Losses	0	0
Total, Fair Value	26,833	52,200
Total, Unrealized Losses	(59)	(235)
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Fair Value	46,192	59,025
Certificates of deposit and term deposits [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	404	4,219
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	404	4,219
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Fair Value	404	4,219
U.S. government and agency securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	55,764	64,604
Unrealized Gains	2	16
Unrealized Losses	(89)	(79)
Fair Value	55,677	64,541
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Fair Value	46,388	33,430
Less Than 12 Months, Unrealized Losses	(89)	(79)
12 Months or Greater, Fair Value	0	0
12 Months or Greater, Unrealized Losses	0	0
Total, Fair Value	46,388	33,430
Total, Unrealized Losses	(89)	(79)
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Fair Value	55,677	64,541
Commercial paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	110,434	95,110
Unrealized Gains	68	23
Unrealized Losses	(26)	(25)
Fair Value	110,476	95,108
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less Than 12 Months, Fair Value	31,172	17,394
Less Than 12 Months, Unrealized Losses	(26)	(25)
12 Months or Greater, Fair Value	0	0
12 Months or Greater, Unrealized Losses	0	0
Total, Fair Value	31,172	17,394
Total, Unrealized Losses	(26)	(25)
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract]
Fair Value	$ 110,476	$ 95,108

Financial Instruments and Fai36

Financial Instruments and Fair Value , Fair Value Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets, Fair Value Disclosure	$ 648,314	$ 650,143
Fair Value [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets, Fair Value Disclosure	66,291	90,731
Fair Value [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets, Fair Value Disclosure	582,023	559,412
Fair Value [Member] | Corporate debt securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	405,007	378,612
Fair Value [Member] | Corporate debt securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	0	0
Fair Value [Member] | Corporate debt securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	405,007	378,612
Fair Value [Member] | Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	119,965	105,097
Fair Value [Member] | Commercial paper [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	0	0
Fair Value [Member] | Commercial paper [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	119,965	105,097
Fair Value [Member] | U.S. government and agency securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	55,677	64,541
Fair Value [Member] | U.S. government and agency securities [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	45,222	52,082
Fair Value [Member] | U.S. government and agency securities [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	10,455	12,459
Fair Value [Member] | Municipal bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	46,192	59,025
Fair Value [Member] | Municipal bonds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	0	0
Fair Value [Member] | Municipal bonds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	46,192	59,025
Fair Value [Member] | Money market funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	21,069	38,649
Fair Value [Member] | Money market funds [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	21,069	38,649
Fair Value [Member] | Money market funds [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	0	0
Fair Value [Member] | Certificates of deposit and term deposits [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	404	4,219
Fair Value [Member] | Certificates of deposit and term deposits [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	0	0
Fair Value [Member] | Certificates of deposit and term deposits [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	404	4,219
Reported as [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Assets, Fair Value Disclosure	648,314	650,143
Reported as [Member] | Cash equivalents [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	30,558	48,638
Reported as [Member] | Short-term investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	375,423	376,522
Reported as [Member] | Long-term investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, Fair Value Disclosure	$ 242,333	$ 224,983

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory, Net [Abstract]
Raw materials	$ 16,540	$ 18,924
Finished goods	88,438	87,963
Inventory	$ 104,978	$ 106,887

Property and Equipment_Net (Det

Property and Equipment—Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	$ 231,216		$ 207,721
Less: accumulated depreciation	(75,740)		(70,472)
Property and equipment - net	155,476		137,249
Depreciation expense	11,200	$ 9,400
Land [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	70,048		65,323
Building and building improvements [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	56,373		49,783
Computer equipment and software [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	44,198		35,079
Leasehold improvements and tooling [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	20,542		18,699
Evaluation units [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	19,701		20,173
Furniture and fixtures [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	14,153		13,995
Construction-in-progress [Member]
Property, Plant and Equipment, Net, by Type [Abstract]
Total property and equipment	$ 6,201		$ 4,669

Investments in Privately-Held39

Investments in Privately-Held Companies (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Investments, All Other Investments [Abstract]
Investments in equity securities of privately-held companies	$ 11.3	$ 10.3

Goodwill and Other Intangible40

Goodwill and Other Intangible Assets - Net , Changes in Carrying Amount of Goodwill (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 14,553,000	$ 14,553,000
Goodwill impairment	$ 0

Goodwill and Other Intangible41

Goodwill and Other Intangible Assets - Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets, Net [Abstract]
Gross	$ 38,484		$ 38,484
Accumulated Amortization	17,549		15,256
Total	20,935		23,228
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Gross	40,084		40,084
Net	22,535		24,828
Amortization expense	$ 2,300	$ 1,200
Developed Technologies and Other [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	3 years 9 months 18 days	3 years 9 months 15 days
Finite-Lived Intangible Assets, Net [Abstract]
Gross	$ 23,984		23,984
Accumulated Amortization	10,000		8,750
Total	$ 13,984		15,234
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life	4 years 8 months 12 days	4 years 8 months 5 days
Finite-Lived Intangible Assets, Net [Abstract]
Gross	$ 14,500		14,500
Accumulated Amortization	7,549		6,506
Total	6,951		7,994
In Process Research and Development [Member]
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
In-process research and development	$ 1,600		$ 1,600

Goodwill and Other Intangible42

Goodwill and Other Intangible Assets - Net - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
2017 (remainder)	$ 6,280
2,018	6,885
2,019	5,406
2,020	2,364
Total	$ 20,935	$ 23,228

Net Income Per Share , Calculat

Net Income Per Share , Calculation of Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Line Items]
Net income	$ 10,717	$ 2,118
Basic shares:
Weighted-average common shares outstanding-basic (in shares)	174,489	171,745
Diluted shares:
Weighted-average common shares outstanding-basic (in shares)	174,489	171,745
Effect of potentially dilutive securities:
Weighted-average shares used to compute diluted net income per share (in shares)	178,278	174,421
Basic (in dollars per share)	$ 0.06	$ 0.01
Diluted (in dollars per share)	$ 0.06	$ 0.01
Restricted Stock Units (RSUs) [Member]
Effect of potentially dilutive securities:
Employee stock options and purchase rights (in shares)	2,216	1,020
Stock Options [Member]
Effect of potentially dilutive securities:
Employee stock options and purchase rights (in shares)	1,523	1,632
ESPP [Member]
Effect of potentially dilutive securities:
Employee stock options and purchase rights (in shares)	50	24

Net Income Per Share , Anti Dil

Net Income Per Share , Anti Dilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	3,885	8,192
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)	2,505	6,351
Stock Options [Member] | Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	1,118	1,559
ESPP [Member] | Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	262	282

Restructuring Charges , Restruc

Restructuring Charges , Restructuring Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Balance, beginning	$ 1,151	$ 3,918
Costs incurred	430	328
Cash payments	(567)	(1,407)
Non-cash items	0	(89)
Balance, ending	$ 1,014	$ 2,750

Commitments and Contingencies M

Commitments and Contingencies Minimum Operating Lease Payments (Details) $ in Thousands	Mar. 31, 2017USD ($)
Operating Lease Commitments:
Operating lease commitments, 2017 (remainder)	$ 13,083
Operating lease commitments, 2018	14,401
Operating lease commitments, 2019	11,972
Operating lease commitments, 2020	9,497
Operating lease commitments, 2021	4,088
Operating lease commitments, Thereafter	8,313
Operating lease commitments	61,354
Inventory purchase commitments:
Inventory purchase commitments, 2017 (remainder)	68,846
Inventory purchase commitments, 2018	0
Inventory purchase commitments, 2019	0
Inventory purchase commitments, 2020	0
Inventory purchase commitments, 2021	0
Inventory purchase commitments, Thereafter	0
Inventory purchase commitments	68,846
Other contractual commitments and open purchase orders:
Other contractual commitments and open purchase orders, 2017 (remainder)	60,959
Other contractual commitments and open purchase orders, 2018	8,402
Other contractual commitments and open purchase orders, 2019	1,522
Other contractual commitments and open purchase orders, 2020	560
Other contractual commitments and open purchase orders, 2021	91
Other contractual commitments and open purchase orders, Thereafter	0
Other contractual commitments and open purchase orders	71,534
Contractual Obligation	201,734
Contractual Obligation, 2017 (remainder)	142,888
Contractual Obligation, 2018	22,803
Contractual Obligation, 2019	13,494
Contractual Obligation, 2020	10,057
Contractual Obligation, 2021	4,179
Contractual Obligation, Thereafter	$ 8,313

Commitments and Contingencies47

Commitments and Contingencies (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Commitment
Rent expense	$ 4,500,000	$ 4,600,000
Inventory purchase commitments	68,846,000
Other contractual commitments and open purchase orders	71,534,000
Indemnification Provisions [Member]
Commitment
Awards under indemnification provisions	0
Commitment to Purchase Certain Real Estate Properties
Commitment
Other contractual commitments and open purchase orders	$ 12,800,000

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected term in years	4 years 4 months 24 days	4 years 3 months 26 days
Volatility	36.00%	43.00%
Risk-free interest rate	1.90%	1.10%
Dividend rate	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Balance - Beginning (in shares)	6,187,000
Granted (in shares)	498,000
Forfeited (in shares)	(46,000)
Exercised (in shares)	(855,000)
Balance - Ending (in shares)	5,784,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Balance - Beginning (in dollars per share)	$ 23.79
Granted (in dollars per share)	37.24
Forfeited (in dollars per share)	27.24
Exercised (in dollars per share)	14.67
Balance - Ending (in dollars per share)	$ 26.27
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options vested and expected to vest, Outstanding (in shares)	5,784,000
Options vested and expected to vest, Weighted average exercise price (in dollars per share)	$ 26.27
Options vested and expected to vest, Weighted average remaining contractual life (in years)	3 years 5 months 12 days
Options vested and expected to vest, Aggregate intrinsic value	$ 71,951
Options exercisable, Outstanding (in shares)	3,820,000
Options exercisable, Weighted average exercise price (in dollars per share)	$ 23.91
Options exercisable, Weighted average remaining contractual life (in years)	2 years 2 months 1 day
Options exercisable, Aggregate intrinsic value	$ 56,071
Compensation cost not yet recognized	$ 19,500
Compensation cost not yet recognized period of recognition	2 years 11 months 19 days
Weighted-average fair value per share granted	$ 12.22	$ 8.68
Intrinsic value of options exercised	$ 17,898	$ 19,424
Total fair value of awards vested	$ 3,395	$ 2,084
Stock-based Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining shares available for grant under the plans	50,087,833
Share Repurchase Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, remaining repurchase amount	$ 189,200

Stockholders' Equity , Restrict

Stockholders' Equity , Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Shares withheld for taxes	413	343
Tax withholding upon vesting of restricted stock awards	$ 13,693	$ 9,441
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 (shares)	9,509
Granted (shares)	2,582
Forfeited (shares)	(301)
Vested (shares)	(1,299)
Balance, ending (shares)	10,491
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	$ 31.01
Granted, weighted-average grant-date fair value per share (in dollars per share)	37.21
Forfeited, weighted-average grant-date fair value per share (in dollars per share)	33.80
Vested, weighted-average grant-date fair value per share (in dollars per share)	27.43
Balance, weighted-average grant-date fair value per share (in dollars per share)—ending	$ 33.04
Compensation cost not yet recognized	$ 310,300
Compensation cost not yet recognized period of recognition	2 years 11 months 1 day

Stockholders' Equity , ESPP Inf

Stockholders' Equity , ESPP Information (Details) - Employee Stock Purchase Plan [Member]	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term in years	6 months	5 months 27 days
Volatility	33.00%	48.00%
Risk-free interest rate	0.70%	0.40%
Dividend rate	0.00%	0.00%

Stockholders' Equity , Addition

Stockholders' Equity , Additional Information Related To ESPP (Details) - Employee Stock Purchase Plan [Member] - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value per share granted (in dollars per share)	$ 9.28	$ 7.19
Shares issued under the ESPP (in shares)	634	614
Weighted-average price per share issued (in dollars per share)	$ 27.97	$ 20.49

Stockholders' Equity , Allocati

Stockholders' Equity , Allocation of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 33,331	$ 28,902
Income tax benefit from employee stock option plans	6,645	7,321
Cost of product revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	342	280
Cost of service revenue [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	2,310	2,134
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	7,898	7,143
Sales and marketing [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	19,026	15,815
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	3,755	3,530
Restricted Stock Units (RSUs) [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	29,041	25,103
Stock Options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	1,845	1,954
ESPP [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation expense	$ 2,445	$ 1,845

Stockholders' Equity , Share Re

Stockholders' Equity , Share Repurchase Program (Details) - 2016 Share Repurchase Program [Member] - USD ($) $ in Millions	1 Months Ended
	Oct. 31, 2016	Mar. 31, 2017	Jan. 31, 2016
Share Repurchase Program [Line Items]
Stock repurchase program, authorized amount		$ 300	$ 200
Additional shares authorized	$ 100
Stock repurchase program, unused balance		$ 189.2

Income Taxes , Narrative (Detai

Income Taxes , Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Income Tax Contingency [Line Items]
Effective tax rate (percent)	(32.00%)	165.00%
Excess tax benefits from stock options	$ 5,500,000	$ 3,600,000
Unrecognized tax benefits, end of year	69,400,000		$ 65,500,000
Unrecognized tax benefits that would favoraby affect effective tax rate	67,700,000
Accrued interest and penalties related to uncertain tax benefits	10,500,000		$ 9,500,000
Unrecognized tax benefits subject to significant change over next 12 months	$ 0

Defined Contribution Plans (Det

Defined Contribution Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Matching contribution on employee contributions, Percent	50.00%
Maximum contribution percentage of each employee's eligible earnings, Percent	4.00%
Matching contributions to the RRSP and 401(k) Plans	$ 1.3	$ 1

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017USD ($)Segment_Managersreportable_segmentbusiness_activityoperating_segment	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Segment Reporting Information [Line Items]
Business activity (in business activities) | business_activity	1
Segment managers responsible for operations (in segment managers) | Segment_Managers	0
Number of operating segments (in operating segments) | operating_segment	1
Number of reportable segments (in reportable segments) | reportable_segment	1
Revenue	$ 340,576	$ 284,576
Property and equipment - net	155,476		$ 137,249
Total Americas
Segment Reporting Information [Line Items]
Revenue	146,364	120,046
Property and equipment - net	128,213		109,902
U.S.
Segment Reporting Information [Line Items]
Revenue	90,772	75,558
Property and equipment - net	111,464		96,414
CANADA
Segment Reporting Information [Line Items]
Revenue	37,345	31,305
Property and equipment - net	16,274		12,881
Latin America (“LATAM”)
Segment Reporting Information [Line Items]
Revenue	18,247	13,183
Property and equipment - net	475		607
EMEA
Segment Reporting Information [Line Items]
Revenue	126,149	105,491
Property and equipment - net	19,086		19,632
France
Segment Reporting Information [Line Items]
Property and equipment - net	12,854		13,241
Other EMEA
Segment Reporting Information [Line Items]
Property and equipment - net	6,232		6,391
APAC
Segment Reporting Information [Line Items]
Revenue	68,063	$ 59,039
Property and equipment - net	$ 8,177		$ 7,715
Exclusive Networks Group | Customer Concentration Risk | Sales Revenue
Segment Reporting Information [Line Items]
Customer concentration (percent)	20.00%		19.00%
Exclusive Networks Group | Customer Concentration Risk | Accounts Receivable
Segment Reporting Information [Line Items]
Customer concentration (percent)	22.00%		26.00%
Fin Tec Computers | Customer Concentration Risk | Sales Revenue
Segment Reporting Information [Line Items]
Customer concentration (percent)	12.00%
Fin Tec Computers | Customer Concentration Risk | Accounts Receivable
Segment Reporting Information [Line Items]
Customer concentration (percent)	15.00%		10.00%

Accumulated Other Comprehensi57

Accumulated Other Comprehensive Loss (Changes in Accumulated Balances of Other Comprehensive Loss) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Accumulated Other Comprehensive (Loss) Income [Roll Forward]
Beginning balance	$ (765)
Other comprehensive income before reclassifications	275
Amounts reclassified from accumulated other comprehensive loss	1
Net current-period other comprehensive income	276
Ending balance	(489)
Tax Benefit Related To Items of Other Comprehensive Income or Loss [Roll Forward]
Beginning balance, tax	414
Other comprehensive income before reclassifications, tax	(149)
Amounts reclassified from accumulated other comprehensive loss, tax	0
Net current-period other comprehensive income, tax	(149)
Ending balance, tax	265
Unrealized Gains and Losses on Investments [Member]
Accumulated Other Comprehensive (Loss) Income [Roll Forward]
Beginning balance	(1,179)
Other comprehensive income before reclassifications	424
Amounts reclassified from accumulated other comprehensive loss	1
Net current-period other comprehensive income	425
Ending balance	$ (754)

Related Party Transactions (Det

Related Party Transactions (Details) - Law Firm where Board Member's Son is a Partner - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Related Party Transaction [Line Items]
Related-party expenses incurred	$ 100,000	$ 300,000
Amounts due and payable to the law firm	100,000		$ 100,000
Contingency Fee Arrangement
Related Party Transaction [Line Items]
Related-party expenses incurred	$ 0	$ 200,000

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event ft² in Thousands, $ in Millions	1 Months Ended
	Apr. 30, 2017USD ($)ft²
Subsequent Event [Line Items]
Area of real estate purchased (in sq. ft) | ft²	282
Cash payment to acquire real estate | $	$ 85