Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-34511 | |
Entity Registrant Name | FORTINET, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 77-0560389 | |
Entity Address, Address Line One | 899 Kifer Road | |
Entity Address, City or Town | Sunnyvale | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94086 | |
City Area Code | 408 | |
Local Phone Number | 235-7700 | |
Title of 12(b) Security | Common Stock, $0.001 Par Value | |
Trading Symbol | FTNT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 785,336,937 | |
Entity Central Index Key | 0001262039 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 2,376.3 | $ 1,682.9 |
Short-term investments | 915.1 | 502.6 |
Marketable equity securities | 22.1 | 25.5 |
Accounts receivable—net | 1,078.8 | 1,261.7 |
Inventory | 376.3 | 264.6 |
Prepaid expenses and other current assets | 109.5 | 73.1 |
Total current assets | 4,878.1 | 3,810.4 |
LONG-TERM INVESTMENTS | 4.2 | 45.5 |
PROPERTY AND EQUIPMENT—NET | 981.9 | 898.5 |
DEFERRED CONTRACT COSTS | 558.8 | 518.2 |
DEFERRED TAX ASSETS | 729.2 | 569.4 |
GOODWILL | 126 | 128 |
OTHER INTANGIBLE ASSETS—NET | 44.6 | 56 |
OTHER ASSETS | 163.3 | 202 |
TOTAL ASSETS | 7,486.1 | 6,228 |
CURRENT LIABILITIES: | ||
Accounts payable | 238.3 | 243.4 |
Accrued liabilities | 266.8 | 248.7 |
Accrued payroll and compensation | 224.8 | 219.4 |
Income taxes payable | 183 | 17.6 |
Deferred revenue | 2,587.7 | 2,349.3 |
Total current liabilities | 3,500.6 | 3,078.4 |
DEFERRED REVENUE | 2,540.9 | 2,291 |
INCOME TAX LIABILITIES | 59.1 | 67.8 |
LONG-TERM DEBT | 991.3 | 990.4 |
OTHER LIABILITIES | 73 | 82 |
Total liabilities | 7,164.9 | 6,509.6 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
STOCKHOLDERS’ EQUITY (DEFICIT): | ||
Common stock, $0.001 par value—1,500.0 shares authorized; 785.6 and 781.5 shares issued and outstanding on June 30, 2023 and December 31, 2022, respectively | 0.8 | 0.8 |
Additional paid-in capital | 1,375.9 | 1,284.2 |
Accumulated other comprehensive loss | (23.1) | (20.2) |
Accumulated deficit | (1,032.4) | (1,546.4) |
Total stockholders’ equity (deficit) | 321.2 | (281.6) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ 7,486.1 | $ 6,228 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Parenthetical - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common Stock, par value (dollars per share) | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common Stock, shares issued | 785,600,000 | 781,500,000 |
Common Stock, shares outstanding | 785,600,000 | 781,500,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
REVENUE: | ||||
Total revenue | $ 1,292.8 | $ 1,030.1 | $ 2,555.1 | $ 1,984.9 |
COST OF REVENUE: | ||||
Total cost of revenue | 295.8 | 250.8 | 603.6 | 504.6 |
GROSS PROFIT: | ||||
Total gross profit | 997 | 779.3 | 1,951.5 | 1,480.3 |
OPERATING EXPENSES: | ||||
Research and development | 153.3 | 124.3 | 304.4 | 249.2 |
Sales and marketing | 515.9 | 415.5 | 994.2 | 803.1 |
General and administrative | 49.9 | 45.4 | 102.7 | 84 |
Gain on intellectual property matter | (1.1) | (1.2) | (2.3) | (2.3) |
Total operating expenses | 718 | 584 | 1,399 | 1,134 |
OPERATING INCOME | 279 | 195.3 | 552.5 | 346.3 |
INTEREST INCOME | 31.6 | 2.4 | 52.2 | 3.7 |
INTEREST EXPENSE | (5.2) | (4.5) | (10.2) | (9) |
OTHER EXPENSE—NET | (6.2) | (9.3) | (4.2) | (18.4) |
INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENT | 299.2 | 183.9 | 590.3 | 322.6 |
PROVISION FOR (BENEFIT FROM) INCOME TAXES | 27.6 | 2.4 | 48.9 | (5.7) |
LOSS FROM EQUITY METHOD INVESTMENT | (5.3) | (8.1) | (27.4) | (16.6) |
NET INCOME INCLUDING NON-CONTROLLING INTERESTS | 266.3 | 173.4 | 514 | 311.7 |
LESS: NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTS, NET OF TAX | 0 | (0.1) | 0 | (0.2) |
NET INCOME ATTRIBUTABLE TO FORTINET, INC. | $ 266.3 | $ 173.5 | $ 514 | $ 311.9 |
Net income per share attributable to Fortinet, Inc. (Note 9): | ||||
Basic (in dollars per share) | $ 0.34 | $ 0.22 | $ 0.66 | $ 0.39 |
Diluted (in dollars per share) | $ 0.33 | $ 0.21 | $ 0.65 | $ 0.38 |
Weighted-average shares used to compute net income per share attributable to Fortinet, Inc.: | ||||
Basic (in shares) | 785 | 795.4 | 784.1 | 799.4 |
Diluted (in shares) | 795.9 | 810.1 | 794.7 | 815.4 |
Product | ||||
REVENUE: | ||||
Total revenue | $ 472.6 | $ 400.7 | $ 973.3 | $ 771.7 |
COST OF REVENUE: | ||||
Total cost of revenue | 174.5 | 155.2 | 368.1 | 316.2 |
GROSS PROFIT: | ||||
Total gross profit | 298.1 | 245.5 | 605.2 | 455.5 |
Service | ||||
REVENUE: | ||||
Total revenue | 820.2 | 629.4 | 1,581.8 | 1,213.2 |
COST OF REVENUE: | ||||
Total cost of revenue | 121.3 | 95.6 | 235.5 | 188.4 |
GROSS PROFIT: | ||||
Total gross profit | $ 698.9 | $ 533.8 | $ 1,346.3 | $ 1,024.8 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income including non-controlling interests | $ 266.3 | $ 173.4 | $ 514 | $ 311.7 |
Other comprehensive loss: | ||||
Change in foreign currency translation | (6.7) | (8.3) | (7.5) | (12.8) |
Change in unrealized gains (losses) on investments | 2.1 | (2.4) | 5.9 | (11.7) |
Less: tax provision (benefit) related to items of other comprehensive income or loss | 0.4 | (0.6) | 1.3 | (2.7) |
Other comprehensive loss | (5) | (10.1) | (2.9) | (21.8) |
Comprehensive income including non-controlling interests | 261.3 | 163.3 | 511.1 | 289.9 |
Less: comprehensive loss attributable to non-controlling interests | 0 | (2.2) | 0 | (3.4) |
Comprehensive income attributable to Fortinet, Inc. | $ 261.3 | $ 165.5 | $ 511.1 | $ 293.3 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Non-Controlling Interests |
Balance, shares at Dec. 31, 2021 | 810 | |||||
Balance, beginning of period at Dec. 31, 2021 | $ 798.4 | $ 0.8 | $ 1,253.6 | $ (4.8) | $ (467.9) | $ 16.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock in connection with equity incentive plans - net of tax withholding (in shares) | 4.2 | |||||
Issuance of common stock in connection with equity incentive plans - net of tax withholding | (84.6) | (84.6) | ||||
Repurchase and retirement of common stock (in shares) | (25.8) | |||||
Repurchase and retirement of common stock | (1,491.2) | (39.6) | (1,451.6) | |||
Stock-based compensation expense | 107.9 | 107.9 | ||||
Net unrealized gain on investments - net of tax | (9) | (9) | ||||
Foreign currency translation adjustment | (12.8) | (9.6) | (3.2) | |||
Net income including non-controlling interests | 311.7 | 311.9 | (0.2) | |||
Balance, shares at Jun. 30, 2022 | 788.4 | |||||
Balance, end of period at Jun. 30, 2022 | (379.6) | $ 0.8 | 1,237.3 | (23.4) | (1,607.6) | 13.3 |
Balance, shares at Mar. 31, 2022 | 801.3 | |||||
Balance, beginning of period at Mar. 31, 2022 | 233.2 | $ 0.8 | 1,235.7 | (15.4) | (1,003.4) | 15.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock in connection with equity incentive plans - net of tax withholding (in shares) | 1.5 | |||||
Issuance of common stock in connection with equity incentive plans - net of tax withholding | (30.8) | (30.8) | ||||
Repurchase and retirement of common stock (in shares) | (14.4) | |||||
Repurchase and retirement of common stock | (800) | (22.3) | (777.7) | |||
Stock-based compensation expense | 54.7 | 54.7 | ||||
Net unrealized gain on investments - net of tax | (1.8) | (1.8) | ||||
Foreign currency translation adjustment | (8.3) | (6.2) | (2.1) | |||
Net income including non-controlling interests | 173.4 | 173.5 | (0.1) | |||
Balance, shares at Jun. 30, 2022 | 788.4 | |||||
Balance, end of period at Jun. 30, 2022 | (379.6) | $ 0.8 | 1,237.3 | (23.4) | (1,607.6) | 13.3 |
Balance, shares at Dec. 31, 2022 | 781.5 | |||||
Balance, beginning of period at Dec. 31, 2022 | (281.6) | $ 0.8 | 1,284.2 | (20.2) | (1,546.4) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock in connection with equity incentive plans - net of tax withholding (in shares) | 4.1 | |||||
Issuance of common stock in connection with equity incentive plans - net of tax withholding | (29.6) | (29.6) | ||||
Stock-based compensation expense | 121.3 | 121.3 | ||||
Net unrealized gain on investments - net of tax | 4.6 | 4.6 | ||||
Foreign currency translation adjustment | (7.5) | (7.5) | 0 | |||
Net income including non-controlling interests | 514 | 514 | 0 | |||
Balance, shares at Jun. 30, 2023 | 785.6 | |||||
Balance, end of period at Jun. 30, 2023 | 321.2 | $ 0.8 | 1,375.9 | (23.1) | (1,032.4) | 0 |
Balance, shares at Mar. 31, 2023 | 784.4 | |||||
Balance, beginning of period at Mar. 31, 2023 | 11.4 | $ 0.8 | 1,327.4 | (18.1) | (1,298.7) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock in connection with equity incentive plans - net of tax withholding (in shares) | 1.2 | |||||
Issuance of common stock in connection with equity incentive plans - net of tax withholding | (16.5) | (16.5) | ||||
Stock-based compensation expense | 65 | 65 | ||||
Net unrealized gain on investments - net of tax | 1.7 | 1.7 | ||||
Foreign currency translation adjustment | (6.7) | (6.7) | 0 | |||
Net income including non-controlling interests | 266.3 | 266.3 | 0 | |||
Balance, shares at Jun. 30, 2023 | 785.6 | |||||
Balance, end of period at Jun. 30, 2023 | $ 321.2 | $ 0.8 | $ 1,375.9 | $ (23.1) | $ (1,032.4) | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income including non-controlling interests | $ 514 | $ 311.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 121.3 | 107.9 |
Amortization of deferred contract costs | 127.9 | 107.1 |
Depreciation and amortization | 54.9 | 50.6 |
Amortization of investment premiums (discounts) | (5.9) | 2.8 |
Loss from equity method investment | 27.4 | 16.6 |
Other | 8.8 | 22.8 |
Changes in operating assets and liabilities, net of impact of business combinations: | ||
Accounts receivable—net | 179 | (119.3) |
Inventory | (130.2) | (31.2) |
Prepaid expenses and other current assets | (35.4) | (18.2) |
Deferred contract costs | (168.5) | (140.6) |
Deferred tax assets | (161.8) | (136.3) |
Other assets | 10.8 | (16.7) |
Accounts payable | (3.6) | 52.7 |
Accrued liabilities | 11.4 | 32 |
Accrued payroll and compensation | 6 | (6.8) |
Income taxes payable | 156.9 | (1.9) |
Other liabilities | (9.7) | 5.7 |
Deferred revenue | 489.3 | 480.6 |
Net cash provided by operating activities | 1,192.6 | 719.5 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of investments | (804.6) | (389.1) |
Sales of investments | 0 | 3 |
Maturities of investments | 445.1 | 797.3 |
Purchases of property and equipment | (107.1) | (162.5) |
Other | 0.1 | 0 |
Net cash provided by (used in) investing activities | (466.5) | 248.7 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase and retirement of common stock | 0 | (1,491.2) |
Proceeds from issuance of common stock | 29.3 | 15.9 |
Taxes paid related to net share settlement of equity awards | (59.7) | (99.9) |
Other | (1) | (1.1) |
Net cash used in financing activities | (31.4) | (1,576.3) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (1.3) | (1) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 693.4 | (609.1) |
CASH AND CASH EQUIVALENTS—Beginning of period | 1,682.9 | 1,319.1 |
CASH AND CASH EQUIVALENTS—End of period | 2,376.3 | 710 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes—net | 58.6 | 129.1 |
Operating lease liabilities arising from obtaining right-of-use assets | 7.3 | 30.8 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Transfers of evaluation units from inventory to property and equipment | 15.8 | 6.9 |
Liability for purchase of property and equipment | $ 22 | $ 21.4 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
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 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, 2022, contained in our Annual Report on Form 10-K filed with the SEC on February 24, 2023. In the opinion of management, all adjustments, which include normal recurring adjustments, considered necessary for a fair presentation, have been included. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year or for any future periods. The condensed consolidated balance sheet as of December 31, 2022 is derived from the audited consolidated financial statements for the year ended December 31, 2022. Amounts related to income taxes payable have been reclassified in prior periods to conform with current period presentation. The condensed consolidated financial statements include the accounts of Fortinet, Inc. and its subsidiaries. We consolidate all legal entities in which we have an absolute controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. The preparation of the condensed consolidated 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 and six months ended June 30, 2023, as compared to the significant accounting policies described in the Form 10-K. Recently Adopted and Recently Issued Accounting Standards There were no recently adopted accounting standards which would have a material effect on our condensed consolidated financial statements and accompanying disclosures, and no recently issued accounting standards that are expected to have a material impact on our condensed consolidated financial statements and accompanying disclosures. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregation of Revenue The following table presents our revenue disaggregated by major product and service lines (in millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Product $ 472.6 $ 400.7 $ 973.3 $ 771.7 Service: Security subscription 457.3 340.4 879.0 653.3 Technical support and other 362.9 289.0 702.8 559.9 Total service revenue 820.2 629.4 1,581.8 1,213.2 Total revenue $ 1,292.8 $ 1,030.1 $ 2,555.1 $ 1,984.9 Deferred Revenue During the three and six months ended June 30, 2023, we recognized $609.8 million and $1.29 billion in service revenue that was included in the deferred revenue balance as of December 31, 2022, respectively. During the three and six months ended June 30, 2022, we recognized $457.6 million and $964.9 million in service revenue that was included in the deferred revenue balance as of December 31, 2021, respectively. Transaction Price Allocated to the Remaining Performance Obligations As of June 30, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was $5.15 billion, which was substantially comprised of deferred security subscription, technical support services revenue and unbilled contract revenue from non-cancellable contracts that will be recognized in future periods. We expect to recognize approximately $2.60 billion as revenue over the next 12 months and the remainder thereafter. Accounts receivable Trade accounts receivable are recorded at the invoiced amount, net of an allowance for expected credit losses. We measure expected credit losses of accounts receivable on a collective (pooled) basis, aggregating accounts receivable that are either current or no more than 60 days past due, and aggregating accounts receivable that are more than 60 days past due. We apply a credit-loss percentage to each of the pools that is based on our historical credit losses. We review whether each of our significant accounts receivable that is more than 60 days past due continues to exhibit similar risk characteristics with the other accounts receivable in the pool. If we determine that it does not, we evaluate it for expected credit losses on an individual basis. Expected credit losses are recorded as general and administrative expenses on our consolidated statements of income. The allowance for credit losses was $5.3 million and $3.6 million as of June 30, 2023 and December 31, 2022, respectively. Provisions, write-offs and recoveries were not material during the six months ended June 30, 2023 and 2022. Deferred Contract Costs Amortization of deferred contract costs during the three months ended June 30, 2023 and 2022 were $65.4 million and $54.6 million, respectively. Amortization of deferred contract costs during the six months ended June 30, 2023 and 2022 were $127.9 million and $107.1 million, respectively. |
Financial Instruments and Fair
Financial Instruments and Fair Value | 6 Months Ended |
Jun. 30, 2023 | |
Financial Instruments and Fair Value [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE | FINANCIAL INSTRUMENTS AND FAIR VALUE Available-for-sale Securities The following tables summarize our available-for-sale securities (in millions): June 30, 2023 Amortized Unrealized Unrealized Fair U.S. government and agency securities $ 404.4 $ 0.1 $ (1.3) $ 403.2 Commercial paper 368.0 — (0.3) 367.7 Corporate debt securities 109.5 — (1.3) 108.2 Certificates of deposit and term deposits 35.2 — — 35.2 Municipal bonds 5.0 — — 5.0 Total available-for-sale securities $ 922.1 $ 0.1 $ (2.9) $ 919.3 December 31, 2022 Amortized Unrealized Unrealized Fair U.S. government and agency securities $ 198.0 $ — $ (4.4) $ 193.6 Commercial paper 26.5 — (0.1) 26.4 Corporate debt securities 293.0 — (4.1) 288.9 Certificates of deposit and term deposits 34.2 — — 34.2 Municipal bonds 5.1 — (0.1) 5.0 Total available-for-sale securities $ 556.8 $ — $ (8.7) $ 548.1 The following tables show the gross unrealized losses and the related fair values of our available-for-sale securities that have been in a continuous unrealized loss position (in millions): June 30, 2023 Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. government and agency securities $ 125.9 $ (0.1) $ 83.8 $ (1.2) $ 209.7 $ (1.3) Commercial paper 349.6 (0.3) — — 349.6 (0.3) Corporate debt securities 12.7 (0.1) 83.1 (1.2) 95.8 (1.3) Total available-for-sale securities $ 488.2 $ (0.5) $ 166.9 $ (2.4) $ 655.1 $ (2.9) December 31, 2022 Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. government and agency securities $ 3.9 $ (0.1) $ 189.8 $ (4.3) $ 193.7 $ (4.4) Commercial paper 26.4 (0.1) — — 26.4 (0.1) Corporate debt securities 90.5 (0.8) 190.0 (3.3) 280.5 (4.1) Municipal bonds 5.0 (0.1) — — 5.0 (0.1) Total available-for-sale securities $ 125.8 $ (1.1) $ 379.8 $ (7.6) $ 505.6 $ (8.7) The contractual maturities of our investments were (in millions): June 30, December 31, Due within one year $ 915.1 $ 502.6 Due within one to three years 4.2 45.5 Total $ 919.3 $ 548.1 Available-for-sale securities are reported at fair value, with unrealized gains and losses and the related tax impact included as a separate component of equity (deficit) and in comprehensive income. We do not intend to sell any of the securities in an unrealized loss position and it is not more likely than not that we would be required to sell these securities before recovery of their amortized cost basis, which may be at maturity. Realized gains and losses on available-for-sale securities were insignificant in the periods presented. Marketable Equity Securities Our marketable equity securities were $22.1 million and $25.5 million as of June 30, 2023 and December 31, 2022. The changes in fair value of our marketable equity securities are recorded in other expense—net on the condensed consolidated statements of income. We recognized a $4.0 million and $3.4 million loss during the three and six months ended June 30, 2023, respectively. We recognized a $8.1 million and $14.3 million loss during the three and six months ended June 30, 2022, respectively. Fair Value of Financial Instruments 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: 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, certain U.S. government and agency securities and marketable equity 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. 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 (in millions): June 30, 2023 December 31, 2022 Aggregate Quoted Significant Significant Aggregate Quoted Significant Significant (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Assets: U.S. government and agency securities $ 490.8 $ 415.9 $ 74.9 $ — $ 268.6 $ 259.3 $ 9.3 $ — Commercial paper 490.8 — 490.8 — 115.8 — 115.8 — Corporate debt securities 108.2 — 108.2 — 288.9 — 288.9 — Certificates of deposit and term deposits 61.6 — 61.6 — 50.4 — 50.4 — Money market funds 241.4 241.4 — — 593.9 593.9 — — Municipal bonds 5.0 — 5.0 — 5.0 — 5.0 — Marketable equity securities 22.1 22.1 — — 25.5 25.5 — — Total $ 1,419.9 $ 679.4 $ 740.5 $ — $ 1,348.1 $ 878.7 $ 469.4 $ — Reported as: Cash equivalents $ 478.5 $ 774.5 Marketable equity securities 22.1 25.5 Short-term investments 915.1 502.6 Long-term investments 4.2 45.5 Total $ 1,419.9 $ 1,348.1 There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2023 and year ended December 31, 2022. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventory consisted of (in millions): June 30, December 31, Raw materials $ 74.3 $ 46.3 Work in process 10.2 12.0 Finished goods 291.8 206.3 Inventory $ 376.3 $ 264.6 |
Property and Equipment_Net
Property and Equipment—Net | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT—Net | PROPERTY AND EQUIPMENT—Net Property and equipment—net consisted of (in millions): June 30, December 31, Land $ 330.1 $ 310.0 Buildings and improvements 553.9 490.3 Computer equipment and software 237.8 222.7 Leasehold improvements 55.6 53.5 Evaluation units 25.7 19.2 Furniture and fixtures 32.5 31.3 Construction-in-progress 64.7 51.7 Total property and equipment 1,300.3 1,178.7 Less: accumulated depreciation (318.4) (280.2) Property and equipment—net $ 981.9 $ 898.5 For the three months ended June 30, 2023, we purchased certain real estate in Spain and the United States totaling $51.9 million (“the Aggregate Purchase Price”). The purchases were accounted for under the asset acquisition method. The cost of the assets acquired was allocated to land and buildings and improvements based on their relative fair values. Of the Aggregate Purchase Price, $6.5 million was allocated to land and $45.4 million was allocated to buildings and improvements. Depreciation expense was $22.9 million and $19.1 million during the three months ended June 30, 2023 and 2022, respectively. Depreciation expense was $45.7 million and $38.2 million during the six months ended June 30, 2023 and 2022, respectively. |
Investments in Privately Held C
Investments in Privately Held Companies | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS IN PRIVATELY HELD COMPANIES | INVESTMENTS IN PRIVATELY HELD COMPANIES Linksys Holdings, Inc. During 2021, we invested $160 million in cash for shares of the Series A Preferred Stock of privately held Linksys Holdings, Inc. (“Linksys”), representing a 50.8% ownership interest in the outstanding common stock (on an as-converted basis). Linksys provides router connectivity solutions to the consumer and small business markets. We have concluded that our investment in Linksys is an in-substance common stock investment and that we do not hold an absolute controlling financial interest in Linksys, but that we have the ability to exercise significant influence over the operating and financial policies of Linksys. Determining that we have significant influence but not control over the operating and financial policies of Linksys required significant judgement of many factors, including but not limited to the ownership interest in Linksys, board representation, participation in policy-making processes and participation rights in certain significant financial and operating decisions of Linksys in the ordinary course of business. Therefore, we determined to account for this investment using the equity method of accounting. We record our share of Linksys’ financial results on a three-month lag basis. We determined that there was a basis difference between the cost of our investment in Linksys and the amount of underlying equity in net assets of Linksys. Our share of loss of Linksys’ financial results, as well as our share of the amortization of the basis differences, in total was $5.3 million and $8.1 million for the three months ended June 30, 2023 and 2022, respectively, and has been recorded in loss from equity method investment on the condensed consolidated statements of income. Our share of loss of Linksys’ financial results, as well as our share of the amortization of the basis differences, in total was $27.4 million and $16.6 million for the six months ended June 30, 2023 and 2022, respectively, and has been recorded in loss from equity method investment on the condensed consolidated statements of income. As of June 30, 2023 and December 31, 2022, the investment was included in other assets on our condensed consolidated balance sheets. In the fourth quarter of 2022, we recorded a non-cash charge of $22.2 million related to other-than-temporary impairment (“OTTI”) recognized on our equity method investment in Linksys and our proportionate share of Linksys' financial results included a $17.5 million charge in connection with a valuation allowance established on deferred tax assets at Linksys. Due to the presence of impairment indicators, such as a series of operating losses, we evaluated our equity method investment |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS Alaxala Networks Corporation On August 31, 2021, we closed an acquisition of 75% of equity interests as controlling interests |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets - Net | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS - Net | GOODWILL AND OTHER INTANGIBLE ASSETS—Net Goodwill The following table presents the changes in the carrying amount of goodwill (in millions): Amount Balance—December 31, 2022 $ 128.0 Foreign currency translation adjustments (2.0) Balance—June 30, 2023 $ 126.0 There were no impairments to goodwill during the six months ended June 30, 2023 or during prior periods. Other Intangible Assets—Net The following tables present other intangible assets—net (in millions, except years): June 30, 2023 Weighted-Average Useful Life (in Years) Gross Accumulated Amortization Net Other intangible assets—net: Finite-lived intangible assets: Developed technologies 4.3 $ 83.0 $ 56.5 $ 26.5 Customer relationships 7.1 30.2 16.0 14.2 Trade name 10.0 4.8 0.9 3.9 Backlog 1.0 3.8 3.8 — Total other intangible assets—net $ 121.8 $ 77.2 $ 44.6 December 31, 2022 Weighted-Average Useful Life (in Years) Gross Accumulated Amortization Net Other intangible assets—net: Finite-lived intangible assets: Developed technologies 4.1 $ 85.1 $ 50.3 $ 34.8 Customer relationships 7.1 31.0 14.4 16.6 Trade name 10.0 5.3 0.7 4.6 Backlog 1.0 4.2 4.2 — Total other intangible assets—net $ 125.6 $ 69.6 $ 56.0 Amortization expense was $4.5 million and $6.0 million during the three months ended June 30, 2023 and 2022, respectively. Amortization expense was $9.2 million and $12.4 million during the six months ended June 30, 2023 and 2022, respectively. The following table summarizes estimated future amortization expense of finite-lived intangible assets—net (in millions): Amount Years: 2023 (the remainder of 2023) $ 8.5 2024 12.8 2025 8.3 2026 4.2 2027 3.9 Thereafter 6.9 Total $ 44.6 |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHAREBasic net income per share is computed by dividing net income attributable to Fortinet, Inc., 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 attributable to Fortinet, Inc. by the weighted-average number of shares of common stock outstanding during the period, plus the dilutive effects of restricted stock units (“RSUs”), stock options and performance stock units (“PSUs”). 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 attributable to Fortinet, Inc. is (in millions, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Numerator: Net income including non-controlling interests $ 266.3 $ 173.4 $ 514.0 $ 311.7 Net loss attributable to non-controlling interests — (0.1) — (0.2) Net income attributable to Fortinet, Inc. $ 266.3 $ 173.5 $ 514.0 $ 311.9 Denominator: Basic shares: Weighted-average common stock outstanding-basic 785.0 795.4 784.1 799.4 Diluted shares: Weighted-average common stock outstanding-basic 785.0 795.4 784.1 799.4 Effect of potentially dilutive securities: RSUs 4.1 6.4 3.9 7.5 Stock options 6.6 8.3 6.6 8.5 PSUs 0.2 — 0.1 — Weighted-average shares used to compute diluted net income per share attributable to Fortinet, Inc. 795.9 810.1 794.7 815.4 Net income per share attributable to Fortinet, Inc.: Basic $ 0.34 $ 0.22 $ 0.66 $ 0.39 Diluted $ 0.33 $ 0.21 $ 0.65 $ 0.38 The following weighted-average shares of common stock were excluded from the computation of diluted net income per share attributable to Fortinet, Inc. for the periods presented, as their effect would have been antidilutive (in millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, RSUs — 0.4 0.9 0.4 Stock options 3.0 1.6 2.6 1.2 Total 3.0 2.0 3.5 1.6 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT 2026 and 2031 Senior Notes On March 5, 2021, we issued $1.0 billion aggregate principal amount of senior notes (collectively, the “Senior Notes”), consisting of $500.0 million aggregate principal amount of 1.0% notes due March 15, 2026 (the “2026 Senior Notes”) and $500.0 million aggregate principal amount of 2.2% notes due March 15, 2031 (the “2031 Senior Notes”), in an underwritten registered public offering. The Senior Notes are senior unsecured obligations and rank equally with each other in right of payment and with our other outstanding obligations. We may redeem the Senior Notes at any time in whole or in part for cash, at specified redemption prices that include accrued and unpaid interest, if any, and a make-whole premium. However, no make-whole premium will be paid for redemptions of the 2026 Senior Notes on or after February 15, 2026, or the 2031 Senior Notes on or after December 15, 2030. Interest on the Senior Notes is payable on March 15 and September 15 of each year, beginning on September 15, 2021. As of June 30, 2023 and December 31, 2022, the Senior Notes were recorded as long-term debt, net of discount and issuance costs, which are amortized to interest expense over the respective contractual terms of these notes using the effective interest method. The total outstanding debt is summarized below (in millions, except percentages): Maturity Coupon Rate Effective Interest Rate June 30, December 31, Debt 2026 Senior Notes March 2026 1.0% 1.3% $ 500.0 $ 500.0 2031 Senior Notes March 2031 2.2% 2.3% 500.0 500.0 Total debt 1,000.0 1,000.0 Less: Unamortized discount and debt issuance costs 8.7 9.6 Total long-term debt $ 991.3 $ 990.4 As of June 30, 2023 and December 31, 2022, we accrued interest payable of $4.7 million, and there are no financial covenants with which we must comply. During the three months ended June 30, 2023 and 2022, we recorded $4.5 million of total interest expense in relation to these Senior Notes in each quarter. During the six months ended June 30, 2023 and 2022, we recorded $9.0 million of total interest expense in relation to the Senior Notes in each period. No interest costs were capitalized for the six months ended June 30, 2023 and 2022, as the costs that qualified for capitalization were not material. The total estimated fair value of the outstanding Senior Notes was approximately $856.3 million, including accrued and unpaid interest, as of June 30, 2023. The fair value was determined based on observable market prices of identical instruments in less active markets. The estimated fair values are based on Level 2 inputs. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The following table summarizes our inventory purchase commitments as of June 30, 2023 (in millions): Total 2023 Thereafter Inventory purchase commitments $ 1,010.2 $ 813.2 $ 197.0 Inventory Purchase Commitments —Our independent contract manufacturers and certain component suppliers procure components and build our products based on our forecasts, the availability of various components and their capacity. 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 extended lead times, changes in supplier delivery commitments and other supply chain matters and market conditions. In order to manage manufacturing lead times, plan for adequate component supply and incentivize suppliers to deliver, we may issue purchase orders to some of our independent contract manufacturers, which are non-cancelable. As of June 30, 2023, we had $1.01 billion of open purchase orders with our independent contract manufacturers that consist of non-cancelable commitments. In certain instances, these agreements allow us the option to reschedule and adjust our requirements based on our business needs prior to firm orders being placed. 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. A significant portion of our reported purchase commitments consist of non-cancelable commitments. In certain instances, contractual commitments allow us the option to cancel, reschedule and adjust our requirements based on our business needs prior to firm orders being placed. As of June 30, 2023, we had $84.6 million in other contractual commitments having a remaining term in excess of one year that are non-cancelable. As of June 30, 2023, we had $93.9 million in contractual commitments related to payments for operating leases. 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 certain of these matters is currently not determinable and not predictable, we currently are unaware of any existing claims or proceedings that we believe 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, costs and substantial settlement charges, and possibly subject us to damages and other penalties. In addition, the resolution of any intellectual property (“IP”) 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. Litigation is unpredictable and the actual liability in any such matters may be materially different from our current estimates, which could result in the need to adjust any accrued liability and record additional expenses. We accrue for contingencies when we believe that a loss is probable and that we can reasonably estimate the amount of any such loss. These accruals are generally based on a range of possible outcomes that require significant management judgement. If no amount within a range is a better estimate than any other, we accrue the minimum amount. Litigation loss contingency accruals associated with outstanding cases were not material as of June 30, 2023, and December 31, 2022. On March 21, 2019, we were sued by Alorica Inc. (“Alorica”) in Santa Clara County Superior Court in California. Alorica has alleged breach of warranty and misrepresentation claims, which we deny. We have counter-claimed and are seeking monetary damages. Fact discovery closed during the quarter ended June 30, 2023, and the trial is scheduled to commence in October 2023. Although we believe that the ultimate outcome of this matter will not materially impact our financial position, results of operations or cash flows, legal proceedings are subject to inherent uncertainties, and an unfavorable ruling could occur, which may result in a material adverse impact on our business, financial position, results of operations and cash flows. No loss accrual had been recorded as of June 30, 2023 or December 31, 2022 related to this litigation. Indemnification and Other Matters —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 IP 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 IP infringement 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. Although from time to time there are indemnification claims asserted against us and currently there are pending indemnification claims, to date there have been no material awards under such indemnification provisions. Similar to other security companies and companies in other industries, we have experienced and may experience in the future, cybersecurity threats, malicious activity directed against our information technology infrastructure or unauthorized attempts to gain access to our and our customers’ sensitive information and systems. We currently are unaware of any existing claims or proceedings related to these types of matters, including any that we believe are likely to have a material adverse effect on our financial position. |
Equity Plans and Share Repurcha
Equity Plans and Share Repurchase Program | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
EQUITY PLANS AND SHARE REPURCHASE PROGRAM | EQUITY PLANS AND SHARE REPURCHASE PROGRAM Stock-Based Compensation Plans We maintain the Amended and Restated Fortinet, Inc. 2009 Equity Incentive Plan (the “Amended Plan”) pursuant to which we have granted RSUs, stock options and PSUs. As of June 30, 2023, there were a total of 53.0 million shares of common stock available for grant under the Amended Plan. Restricted Stock Units The following table summarizes the activity and related information for RSUs for the periods presented below (in millions, except per share amounts): Restricted Stock Units Outstanding Number of Shares Weighted-Average Grant Date Fair Value per Share Balance—December 31, 2022 10.5 $ 40.94 Granted 4.1 61.17 Forfeited (0.2) 45.47 Vested (3.1) 34.47 Balance—June 30, 2023 11.3 $ 49.97 Stock compensation expense is recognized on a straight-line basis over the vesting period of each RSU. As of June 30, 2023, total compensation expense related to unvested RSUs granted to employees and non-employees under the Amended Plan, but not yet recognized, was $509.9 million, with a weighted-average remaining 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 employee withholding tax requirements. The payment of the withheld taxes to the tax 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 millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Shares withheld for taxes 0.4 0.6 1.1 1.7 Amount withheld for taxes $ 25.1 $ 35.3 $ 59.7 $ 100.1 Employee Stock Options The following table summarizes the weighted-average assumptions relating to our employee stock options: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Expected term in years 4.4 4.4 4.4 4.4 Volatility 41.0 % 43.6 % 41.9 % 41.1 % Risk-free interest rate 3.8 % 2.9 % 4.2 % 1.9 % Dividend rate — % — % — % — % The following table summarizes the stock option activity and related information for the periods presented below (in millions, except exercise prices and contractual life): Options Outstanding Number Weighted- Weighted- Aggregate Balance—December 31, 2022 13.2 $ 24.37 3.5 $ 344.8 Granted 1.2 60.80 Forfeited (0.1) 44.99 Exercised (2.1) 14.13 Balance—June 30, 2023 12.2 $ 29.64 Options vested and expected to vest—June 30, 2023 12.2 $ 29.64 3.6 $ 559.8 Options exercisable—June 30, 2023 8.2 $ 20.26 2.8 $ 456.3 The aggregate intrinsic value represents the difference between the exercise price of stock options and the quoted market price of our common stock for all in-the-money stock options. Stock compensation expense is recognized on a straight-line basis over the vesting period of each stock option. As of June 30, 2023, total compensation expense related to unvested stock options granted to employees but not yet recognized was $68.0 million, with a weighted-average remaining vesting period of 2.8 years. Additional information related to our stock options is summarized below (in millions, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Weighted-average fair value per share granted $ 26.55 $ 21.33 $ 24.41 $ 22.28 Intrinsic value of options exercised $ 24.3 $ 13.8 $ 97.0 $ 43.7 Fair value of options vested $ 5.7 $ 4.8 $ 17.4 $ 15.0 Market/Performance-Based PSUs We granted market/performance-based PSUs under the Amended Plan to certain of our executives. Based on the achievement of the market/performance-based vesting conditions during the performance period, the final settlement of the PSUs will range between 0% and 200% of the target shares underlying the PSUs based on the percentile ranking of our total stockholder return over one two three one two three The following table summarizes the weighted-average assumptions relating to our PSUs for the three months ended March 31, 2023: Three Months Ended March 31, Expected term in years 2.7 Volatility 47.5 % Risk-free interest rate 4.6 % Dividend rate — % We granted approximately 0.3 million shares of PSU awards with a grant date fair value of $90.96 per share to certain of our executives during the first quarter of 2023. The grant date fair value of these awards was determined using a Monte Carlo simulation pricing model. None of these PSU awards were vested or forfeited during the six months ended June 30, 2023. As of June 30, 2023, total compensation expense related to unvested PSUs that were granted to certain of our executives, but not yet recognized, was $23.2 million. This expense is expected to be amortized on a graded vesting method over a weighted-average vesting period of 2.6 years. Stock-Based Compensation Expense Stock-based compensation expense, including stock-based compensation expense related to awards classified as liabilities, is included in costs and expenses (in millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Cost of product revenue $ 0.5 $ 0.4 $ 0.9 $ 0.8 Cost of service revenue 6.0 4.7 11.1 9.2 Research and development 20.0 16.1 37.0 31.2 Sales and marketing 29.3 26.4 55.6 53.1 General and administrative 9.9 7.7 18.1 14.9 Total stock-based compensation expense $ 65.7 $ 55.3 $ 122.7 $ 109.2 The following table summarizes stock-based compensation expense, including stock-based compensation expense related to awards classified as liabilities, by award type (in millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, RSUs $ 55.1 $ 49.0 $ 104.2 $ 97.3 Stock options 7.3 6.3 14.0 11.9 PSUs 3.3 — 4.5 — Total stock-based compensation expense $ 65.7 $ 55.3 $ 122.7 $ 109.2 Total income tax benefit associated with stock-based compensation that is recognized in the condensed consolidated statements of income is as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Income tax benefit associated with stock-based compensation $ 14.5 $ 12.2 $ 27.1 $ 24.0 Share Repurchase Program In February 2023, our board of directors approved an extension of the Repurchase Program originally approved by our board of directors in January 2016 to February 29, 2024. In April 2023, our board of directors approved a $1.0 billion increase in the authorized amount under the Repurchase Program, bringing the aggregate amount authorized to be repurchased to $6.25 billion of our outstanding common stock through February 29, 2024. Share repurchases may be made by us from time to time in privately negotiated transactions or in open-market transactions. The 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. Refer to Note 16, Subsequent Events, for information regarding the approved $500.0 million increase in the authorized stock repurchase amount under the Repurchase Program in July 2023. There were no shares repurchased under the Repurchase Program during the six months ended June 30, 2023. As of June 30, 2023, $1.53 billion remained available for future share repurchases under the Repurchase Program. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our effective tax rate was 9% for the three months ended June 30, 2023, compared to an effective tax rate of 1% for the same period last year. Our effective tax rate was 8% for the six months ended June 30, 2023, compared to an effective tax rate of negative 2% for the same period last year. The tax rates for the three months ended June 30, 2023 and 2022 were composed of U.S. federal and state taxes, withholding taxes and foreign taxes that amounted to $84.8 million and $54.5 million , respectively. The tax rate for the three months ended June 30, 2023 was impacted by a tax benefit of $25.8 million from the FDII deduction, excess tax benefits from stock-based compensation expense of $13.3 million, and the release of reserves of $18.1 million on uncertain tax positions and the accrued interest thereon due to the expiration of statutes of limitations . The tax rate for the three months ended June 30, 2022 was impacted by a tax benefit of $18.6 million from the FDII deduction, excess tax benefits from stock-based compensation expense of $17.3 million, and the release of reserves of $16.2 million on uncertain tax positions and the accrued interest thereon due to the expiration of statutes of limitations. The tax rates for the six months ended June 30, 2023 and 2022 were composed of U.S. federal and state taxes, withholding taxes and foreign taxes that amounted to $170.6 million and $93.3 million, respectively. The tax rate for the six months ended June 30, 2023 was impacted by a tax benefit of $64.0 million from the FDII deduction, excess tax benefits from stock-based compensation expense of $39.6 million, and the release of reserves of $18.1 million on uncertain tax positions and the accrued interest thereon due to the expiration of statutes of limitations. The tax rate for the six months ended June 30, 2022 was impacted by a tax benefit of $33.3 million from the FDII deduction, excess tax benefits from stock-based compensation expense of $49.5 million, and the release of reserves of $16.2 million on uncertain tax positions and the accrued interest thereon due to the expiration of statutes of limitations. As of June 30, 2023 and December 31, 2022, unrecognized tax benefits were $63.4 million and $67.4 million , respectively. If recognized, $53.8 million of the unrecognized tax benefits as of June 30, 2023 would favorably affect our effective tax rate. It is our policy to include accrued interest and penalties related to unrecognized tax benefits in income tax expense. As of June 30, 2023 and December 31, 2022, accrued interest and penalties were $5.3 million and $9.3 million, respectively. It is reasonably possible that our gross unrecognized tax benefits will decrease by up to $1.9 million in the next 12 months, due to the lapse of statutes of limitation in various jurisdictions. This decrease, if recognized, would favorably impact our effective tax rate, and would be recognized as an additional tax benefit. 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 examination by U.S federal income tax authorities for tax years prior to 2015. We are no longer subject to U.S. state and foreign income tax examinations by tax authorities for tax years prior to 2010. We currently have ongoing tax audits in the United Kingdom, Canada, Germany and several other foreign jurisdictions. The focus of these audits is the inter-company profit allocation. Effective January 1, 2022, research and development expenses are required to be capitalized and amortized for U.S. tax purposes, which delays the deductibility of these expenses, and increases our current provision. On January 4, 2022, the U.S. Treasury published another tranche of final regulations regarding the foreign tax credit. These final regulations impose new requirements that a foreign tax must meet in order to be creditable against U.S. income taxes, and generally apply to tax years beginning on or after December 28, 2021. On July 26, 2022, the U.S. Treasury released corrections to the final regulations. These final regulations adversely impact our ability to claim foreign tax credits in the United States for certain taxes imposed by certain foreign jurisdictions. On August 16, 2022, the United States enacted the Inflation Reduction Act of 2022 that provides for certain changes to the U.S. corporate income tax system, including a 15% minimum tax based on financial statement income for companies with three-year average annual adjusted financial statement income exceeding $1 billion, and a 1% excise tax on net repurchases of stock after December 31, 2022, if any. The applicable tax law changes have had no impact to our tax provision for the six months ended June 30, 2023. We will continue to monitor the impact, if any, of these tax law changes on future periods. |
Defined Contribution Plans
Defined Contribution Plans | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
DEFINED CONTRIBUTION PLANS | DEFINED CONTRIBUTION PLANS Our tax-deferred savings plan under our 401(k) Plan permits participating U.S. employees to contribute a portion of their pre-tax or after-tax earnings. In Canada, we have a Group Registered Retirement Savings Plan Program (the “RRSP”), which permits participants to make pre-tax 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 June 30, 2023 and 2022 were $5.7 million and $3.2 million, respectively. Our matching |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Our chief operating decision maker is our chief executive officer. Our chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region for purposes of allocating resources and evaluating financial performance. We have one business activity, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. Accordingly, we have determined that we have one operating segment, and therefore, one reportable segment. Revenue by geographic region is based on the billing address of our customers. The following tables set forth revenue and property and equipment—net by geographic region (in millions): Three Months Ended Six Months Ended Revenue June 30, June 30, June 30, June 30, Americas: United States $ 404.7 $ 312.9 $ 788.8 $ 598.7 Other Americas 132.3 100.7 271.7 197.5 Total Americas 537.0 413.6 1,060.5 796.2 Europe, Middle East and Africa (“EMEA”) 506.9 391.8 985.1 737.8 Asia Pacific (“APAC”) 248.9 224.7 509.5 450.9 Total revenue $ 1,292.8 $ 1,030.1 $ 2,555.1 $ 1,984.9 Property and Equipment — net June 30, December 31, Americas: United States $ 686.5 $ 638.1 Canada 208.3 204.4 Latin America 0.8 1.1 Total Americas 895.6 843.6 EMEA 69.4 35.9 APAC 16.9 19.0 Total property and equipment—net $ 981.9 $ 898.5 The following distributors accounted for 10% or more of our revenue: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Distributor A 27 % 29 % 28 % 29 % Distributor B 15 % 14 % 14 % 14 % Distributor C 14 % 13 % 14 % 14 % The following distributors accounted for 10% or more of net accounts receivable: June 30, December 31, Distributor A 29 % 32 % Distributor B 12 % 12 % Distributor C 13 % 13 % |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Investment in Privately Held Company On August 1, 2023, we invested $8.5 million in cash in a privately held company. Share Repurchase Program In July 2023, our board of directors approved a $500.0 million increase in the authorized stock repurchase amount under the Repurchase Program, bringing the aggregate amount authorized to be repurchased to $6.75 billion of our outstanding common stock through February 29, 2024. As of August 7, 2023, approximately $1.87 billion remained available for future share repurchases. Subsequent to June 30, 2023 through the filing of this Quarterly Report on Form 10-Q, we repurchased approximately 2.8 million shares of our common stock at an average price of $57.44 per share for an aggregate purchase price of approximately $161.1 million under the Repurchase Program. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 266.3 | $ 173.5 | $ 514 | $ 311.9 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Rule 10b5-1 Trading Plans On June 9, 2023, William Neukom, one of our directors, entered into a pre-arranged written stock purchase plan in accordance with Rule 10b5-1 (the “Rule 10b5-1 Plan”) under the Exchange Act for the purchase of shares of our common stock. The Rule 10b5-1 Plan was entered into during an open trading window in accordance with our insider trading policy and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. Mr. Neukom’s Rule 10b5-1 Plan provides for the potential purchase of up to $35,000 worth of shares per purchase period of our common stock at its market price on six specific dates as specified in the Rule 10b5-1 Plan between September 8, 2023 and December 7, 2024. The Rule 10b5-1 Plan includes a representation from Mr. Neukom to the broker administering the plan that he was not in possession of any material nonpublic information regarding us or the securities subject to the Rule 10b5-1 Plan at the time the Rule 10b5-1 Plan was entered into. A similar representation was made to us in connection with the adoption of the Rule 10b5-1 Plan under our insider trading policy. Those representations were made as of the date of adoption of the Rule 10b5-1 Plan, and speak only as of that date. In making those representations, there is no assurance with respect to any material nonpublic information of which Mr. Neukom was unaware, or with respect to any material nonpublic information acquired by Mr. Neukom or us after the date of the representation. Once executed, transactions under the Rule 10b5-1 Plan will be disclosed publicly through Form 4 and/or Form 144 filings with the SEC in accordance with applicable securities laws, rules, and regulations. Except as may be required by law, we do not undertake any obligation to update or report any modification, termination, or other activity under current or future Rule 10b5-1 plans that may be adopted by Mr. Neukom or our other officers or directors. | |
Name | William Neukom | |
Title | director | |
Rule 10b5-1 Arrangement Adopted | true | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Adoption Date | June 9, 2023 | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Arrangement Duration | 456 days |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Preparation | Basis of Presentation and Preparation —The unaudited condensed consolidated financial statements of Fortinet, Inc. and its 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, 2022, contained in our Annual Report on Form 10-K filed with the SEC on February 24, 2023. In the opinion of management, all adjustments, which include normal recurring adjustments, considered necessary for a fair presentation, have been included. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the full year or for any future periods. The condensed consolidated balance sheet as of December 31, 2022 is derived from the audited consolidated financial statements for the year ended December 31, 2022. Amounts related to income taxes payable have been reclassified in prior periods to conform with current period presentation. The condensed consolidated financial statements include the accounts of Fortinet, Inc. and its subsidiaries. We consolidate all legal entities in which we have an absolute controlling financial interest. All intercompany balances and transactions have been eliminated in consolidation. The preparation of the condensed consolidated 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 and six months ended June 30, 2023, as compared to the significant accounting policies described in the Form 10-K. |
Recently Adopted and Recently Issued Accounting Standards | Recently Adopted and Recently Issued Accounting Standards There were no recently adopted accounting standards which would have a material effect on our condensed consolidated financial statements and accompanying disclosures, and no recently issued accounting standards that are expected to have a material impact on our condensed consolidated financial statements and accompanying disclosures. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents our revenue disaggregated by major product and service lines (in millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Product $ 472.6 $ 400.7 $ 973.3 $ 771.7 Service: Security subscription 457.3 340.4 879.0 653.3 Technical support and other 362.9 289.0 702.8 559.9 Total service revenue 820.2 629.4 1,581.8 1,213.2 Total revenue $ 1,292.8 $ 1,030.1 $ 2,555.1 $ 1,984.9 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Financial Instruments and Fair Value [Abstract] | |
Summary of Investments | The following tables summarize our available-for-sale securities (in millions): June 30, 2023 Amortized Unrealized Unrealized Fair U.S. government and agency securities $ 404.4 $ 0.1 $ (1.3) $ 403.2 Commercial paper 368.0 — (0.3) 367.7 Corporate debt securities 109.5 — (1.3) 108.2 Certificates of deposit and term deposits 35.2 — — 35.2 Municipal bonds 5.0 — — 5.0 Total available-for-sale securities $ 922.1 $ 0.1 $ (2.9) $ 919.3 December 31, 2022 Amortized Unrealized Unrealized Fair U.S. government and agency securities $ 198.0 $ — $ (4.4) $ 193.6 Commercial paper 26.5 — (0.1) 26.4 Corporate debt securities 293.0 — (4.1) 288.9 Certificates of deposit and term deposits 34.2 — — 34.2 Municipal bonds 5.1 — (0.1) 5.0 Total available-for-sale securities $ 556.8 $ — $ (8.7) $ 548.1 |
Schedule of Unrealized Loss on Investments | The following tables show the gross unrealized losses and the related fair values of our available-for-sale securities that have been in a continuous unrealized loss position (in millions): June 30, 2023 Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. government and agency securities $ 125.9 $ (0.1) $ 83.8 $ (1.2) $ 209.7 $ (1.3) Commercial paper 349.6 (0.3) — — 349.6 (0.3) Corporate debt securities 12.7 (0.1) 83.1 (1.2) 95.8 (1.3) Total available-for-sale securities $ 488.2 $ (0.5) $ 166.9 $ (2.4) $ 655.1 $ (2.9) December 31, 2022 Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. government and agency securities $ 3.9 $ (0.1) $ 189.8 $ (4.3) $ 193.7 $ (4.4) Commercial paper 26.4 (0.1) — — 26.4 (0.1) Corporate debt securities 90.5 (0.8) 190.0 (3.3) 280.5 (4.1) Municipal bonds 5.0 (0.1) — — 5.0 (0.1) Total available-for-sale securities $ 125.8 $ (1.1) $ 379.8 $ (7.6) $ 505.6 $ (8.7) |
Investments Classified by Contractual Maturity Date | The contractual maturities of our investments were (in millions): June 30, December 31, Due within one year $ 915.1 $ 502.6 Due within one to three years 4.2 45.5 Total $ 919.3 $ 548.1 |
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 (in millions): June 30, 2023 December 31, 2022 Aggregate Quoted Significant Significant Aggregate Quoted Significant Significant (Level 1) (Level 2) (Level 3) (Level 1) (Level 2) (Level 3) Assets: U.S. government and agency securities $ 490.8 $ 415.9 $ 74.9 $ — $ 268.6 $ 259.3 $ 9.3 $ — Commercial paper 490.8 — 490.8 — 115.8 — 115.8 — Corporate debt securities 108.2 — 108.2 — 288.9 — 288.9 — Certificates of deposit and term deposits 61.6 — 61.6 — 50.4 — 50.4 — Money market funds 241.4 241.4 — — 593.9 593.9 — — Municipal bonds 5.0 — 5.0 — 5.0 — 5.0 — Marketable equity securities 22.1 22.1 — — 25.5 25.5 — — Total $ 1,419.9 $ 679.4 $ 740.5 $ — $ 1,348.1 $ 878.7 $ 469.4 $ — Reported as: Cash equivalents $ 478.5 $ 774.5 Marketable equity securities 22.1 25.5 Short-term investments 915.1 502.6 Long-term investments 4.2 45.5 Total $ 1,419.9 $ 1,348.1 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consisted of (in millions): June 30, December 31, Raw materials $ 74.3 $ 46.3 Work in process 10.2 12.0 Finished goods 291.8 206.3 Inventory $ 376.3 $ 264.6 |
Property and Equipment_Net (Tab
Property and Equipment—Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment - Net | Property and equipment—net consisted of (in millions): June 30, December 31, Land $ 330.1 $ 310.0 Buildings and improvements 553.9 490.3 Computer equipment and software 237.8 222.7 Leasehold improvements 55.6 53.5 Evaluation units 25.7 19.2 Furniture and fixtures 32.5 31.3 Construction-in-progress 64.7 51.7 Total property and equipment 1,300.3 1,178.7 Less: accumulated depreciation (318.4) (280.2) Property and equipment—net $ 981.9 $ 898.5 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets - Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The following table presents the changes in the carrying amount of goodwill (in millions): Amount Balance—December 31, 2022 $ 128.0 Foreign currency translation adjustments (2.0) Balance—June 30, 2023 $ 126.0 |
Schedule of Finite-Lived Intangible Assets by Major Class | The following tables present other intangible assets—net (in millions, except years): June 30, 2023 Weighted-Average Useful Life (in Years) Gross Accumulated Amortization Net Other intangible assets—net: Finite-lived intangible assets: Developed technologies 4.3 $ 83.0 $ 56.5 $ 26.5 Customer relationships 7.1 30.2 16.0 14.2 Trade name 10.0 4.8 0.9 3.9 Backlog 1.0 3.8 3.8 — Total other intangible assets—net $ 121.8 $ 77.2 $ 44.6 December 31, 2022 Weighted-Average Useful Life (in Years) Gross Accumulated Amortization Net Other intangible assets—net: Finite-lived intangible assets: Developed technologies 4.1 $ 85.1 $ 50.3 $ 34.8 Customer relationships 7.1 31.0 14.4 16.6 Trade name 10.0 5.3 0.7 4.6 Backlog 1.0 4.2 4.2 — Total other intangible assets—net $ 125.6 $ 69.6 $ 56.0 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes estimated future amortization expense of finite-lived intangible assets—net (in millions): Amount Years: 2023 (the remainder of 2023) $ 8.5 2024 12.8 2025 8.3 2026 4.2 2027 3.9 Thereafter 6.9 Total $ 44.6 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 attributable to Fortinet, Inc. is (in millions, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Numerator: Net income including non-controlling interests $ 266.3 $ 173.4 $ 514.0 $ 311.7 Net loss attributable to non-controlling interests — (0.1) — (0.2) Net income attributable to Fortinet, Inc. $ 266.3 $ 173.5 $ 514.0 $ 311.9 Denominator: Basic shares: Weighted-average common stock outstanding-basic 785.0 795.4 784.1 799.4 Diluted shares: Weighted-average common stock outstanding-basic 785.0 795.4 784.1 799.4 Effect of potentially dilutive securities: RSUs 4.1 6.4 3.9 7.5 Stock options 6.6 8.3 6.6 8.5 PSUs 0.2 — 0.1 — Weighted-average shares used to compute diluted net income per share attributable to Fortinet, Inc. 795.9 810.1 794.7 815.4 Net income per share attributable to Fortinet, Inc.: Basic $ 0.34 $ 0.22 $ 0.66 $ 0.39 Diluted $ 0.33 $ 0.21 $ 0.65 $ 0.38 |
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 attributable to Fortinet, Inc. for the periods presented, as their effect would have been antidilutive (in millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, RSUs — 0.4 0.9 0.4 Stock options 3.0 1.6 2.6 1.2 Total 3.0 2.0 3.5 1.6 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Debt | The total outstanding debt is summarized below (in millions, except percentages): Maturity Coupon Rate Effective Interest Rate June 30, December 31, Debt 2026 Senior Notes March 2026 1.0% 1.3% $ 500.0 $ 500.0 2031 Senior Notes March 2031 2.2% 2.3% 500.0 500.0 Total debt 1,000.0 1,000.0 Less: Unamortized discount and debt issuance costs 8.7 9.6 Total long-term debt $ 991.3 $ 990.4 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Inventory Purchase Commitments, Fiscal Year Maturity Schedule | The following table summarizes our inventory purchase commitments as of June 30, 2023 (in millions): Total 2023 Thereafter Inventory purchase commitments $ 1,010.2 $ 813.2 $ 197.0 |
Equity Plans and Share Repurc_2
Equity Plans and Share Repurchase Program (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [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 millions, except per share amounts): Restricted Stock Units Outstanding Number of Shares Weighted-Average Grant Date Fair Value per Share Balance—December 31, 2022 10.5 $ 40.94 Granted 4.1 61.17 Forfeited (0.2) 45.47 Vested (3.1) 34.47 Balance—June 30, 2023 11.3 $ 49.97 |
Schedule of Share-based Compensation, Shares Withheld for Taxes | The following summarizes the number and value of the shares withheld for employee taxes (in millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Shares withheld for taxes 0.4 0.6 1.1 1.7 Amount withheld for taxes $ 25.1 $ 35.3 $ 59.7 $ 100.1 |
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 Six Months Ended June 30, June 30, June 30, June 30, Expected term in years 4.4 4.4 4.4 4.4 Volatility 41.0 % 43.6 % 41.9 % 41.1 % Risk-free interest rate 3.8 % 2.9 % 4.2 % 1.9 % 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 millions, except exercise prices and contractual life): Options Outstanding Number Weighted- Weighted- Aggregate Balance—December 31, 2022 13.2 $ 24.37 3.5 $ 344.8 Granted 1.2 60.80 Forfeited (0.1) 44.99 Exercised (2.1) 14.13 Balance—June 30, 2023 12.2 $ 29.64 Options vested and expected to vest—June 30, 2023 12.2 $ 29.64 3.6 $ 559.8 Options exercisable—June 30, 2023 8.2 $ 20.26 2.8 $ 456.3 |
Schedule of Share-based Compensation, Stock Options, Activity, Additional Information | Additional information related to our stock options is summarized below (in millions, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Weighted-average fair value per share granted $ 26.55 $ 21.33 $ 24.41 $ 22.28 Intrinsic value of options exercised $ 24.3 $ 13.8 $ 97.0 $ 43.7 Fair value of options vested $ 5.7 $ 4.8 $ 17.4 $ 15.0 |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the weighted-average assumptions relating to our PSUs for the three months ended March 31, 2023: Three Months Ended March 31, Expected term in years 2.7 Volatility 47.5 % Risk-free interest rate 4.6 % Dividend rate — % |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Stock-based compensation expense, including stock-based compensation expense related to awards classified as liabilities, is included in costs and expenses (in millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Cost of product revenue $ 0.5 $ 0.4 $ 0.9 $ 0.8 Cost of service revenue 6.0 4.7 11.1 9.2 Research and development 20.0 16.1 37.0 31.2 Sales and marketing 29.3 26.4 55.6 53.1 General and administrative 9.9 7.7 18.1 14.9 Total stock-based compensation expense $ 65.7 $ 55.3 $ 122.7 $ 109.2 |
Schedule of Employee Service Share based Compensation Allocation of Recognized Period Costs by Award Type | The following table summarizes stock-based compensation expense, including stock-based compensation expense related to awards classified as liabilities, by award type (in millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, RSUs $ 55.1 $ 49.0 $ 104.2 $ 97.3 Stock options 7.3 6.3 14.0 11.9 PSUs 3.3 — 4.5 — Total stock-based compensation expense $ 65.7 $ 55.3 $ 122.7 $ 109.2 |
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 income is as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Income tax benefit associated with stock-based compensation $ 14.5 $ 12.2 $ 27.1 $ 24.0 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Revenue From External Customers by Geographic Region | Revenue by geographic region is based on the billing address of our customers. The following tables set forth revenue and property and equipment—net by geographic region (in millions): Three Months Ended Six Months Ended Revenue June 30, June 30, June 30, June 30, Americas: United States $ 404.7 $ 312.9 $ 788.8 $ 598.7 Other Americas 132.3 100.7 271.7 197.5 Total Americas 537.0 413.6 1,060.5 796.2 Europe, Middle East and Africa (“EMEA”) 506.9 391.8 985.1 737.8 Asia Pacific (“APAC”) 248.9 224.7 509.5 450.9 Total revenue $ 1,292.8 $ 1,030.1 $ 2,555.1 $ 1,984.9 |
Property and Equipment by Geographic Region | Property and Equipment — net June 30, December 31, Americas: United States $ 686.5 $ 638.1 Canada 208.3 204.4 Latin America 0.8 1.1 Total Americas 895.6 843.6 EMEA 69.4 35.9 APAC 16.9 19.0 Total property and equipment—net $ 981.9 $ 898.5 |
Schedule of Distributor Concentration | The following distributors accounted for 10% or more of our revenue: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Distributor A 27 % 29 % 28 % 29 % Distributor B 15 % 14 % 14 % 14 % Distributor C 14 % 13 % 14 % 14 % The following distributors accounted for 10% or more of net accounts receivable: June 30, December 31, Distributor A 29 % 32 % Distributor B 12 % 12 % Distributor C 13 % 13 % |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 1,292.8 | $ 1,030.1 | $ 2,555.1 | $ 1,984.9 |
Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 472.6 | 400.7 | 973.3 | 771.7 |
Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 820.2 | 629.4 | 1,581.8 | 1,213.2 |
Security subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 457.3 | 340.4 | 879 | 653.3 |
Technical support and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 362.9 | $ 289 | $ 702.8 | $ 559.9 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Threshold period past due | 60 days | 60 days | |||
Allowance for credit losses | $ 5.3 | $ 5.3 | $ 3.6 | ||
Amortization of deferred contract costs | 65.4 | $ 54.6 | 127.9 | $ 107.1 | |
Service | |||||
Disaggregation of Revenue [Line Items] | |||||
Deferred revenue recognized in period | $ 609.8 | $ 457.6 | $ 1,290 | $ 964.9 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation Satisfaction Period (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 5,150 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 2,600 |
Performance obligation expected recognition period for three-fourths of remaining obligation | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 2,550 |
Performance obligation expected recognition period for three-fourths of remaining obligation |
Financial Instruments and Fai_3
Financial Instruments and Fair Value , Investments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 922.1 | $ 556.8 |
Unrealized Gains | 0.1 | 0 |
Unrealized Losses | (2.9) | (8.7) |
Fair Value | 919.3 | 548.1 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 488.2 | 125.8 |
Less Than 12 Months, Unrealized Losses | (0.5) | (1.1) |
12 Months or Greater, Fair Value | 166.9 | 379.8 |
12 Months or Greater, Unrealized Losses | (2.4) | (7.6) |
Total, Fair Value | 655.1 | 505.6 |
Total, Unrealized Losses | (2.9) | (8.7) |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||
Due within one year | 915.1 | 502.6 |
Due within one to three years | 4.2 | 45.5 |
Fair Value | 919.3 | 548.1 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 404.4 | 198 |
Unrealized Gains | 0.1 | 0 |
Unrealized Losses | (1.3) | (4.4) |
Fair Value | 403.2 | 193.6 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 125.9 | 3.9 |
Less Than 12 Months, Unrealized Losses | (0.1) | (0.1) |
12 Months or Greater, Fair Value | 83.8 | 189.8 |
12 Months or Greater, Unrealized Losses | (1.2) | (4.3) |
Total, Fair Value | 209.7 | 193.7 |
Total, Unrealized Losses | (1.3) | (4.4) |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||
Fair Value | 403.2 | 193.6 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 368 | 26.5 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (0.3) | (0.1) |
Fair Value | 367.7 | 26.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 349.6 | 26.4 |
Less Than 12 Months, Unrealized Losses | (0.3) | (0.1) |
12 Months or Greater, Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Losses | 0 | 0 |
Total, Fair Value | 349.6 | 26.4 |
Total, Unrealized Losses | (0.3) | (0.1) |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||
Fair Value | 367.7 | 26.4 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 109.5 | 293 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1.3) | (4.1) |
Fair Value | 108.2 | 288.9 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 12.7 | 90.5 |
Less Than 12 Months, Unrealized Losses | (0.1) | (0.8) |
12 Months or Greater, Fair Value | 83.1 | 190 |
12 Months or Greater, Unrealized Losses | (1.2) | (3.3) |
Total, Fair Value | 95.8 | 280.5 |
Total, Unrealized Losses | (1.3) | (4.1) |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||
Fair Value | 108.2 | 288.9 |
Certificates of deposit and term deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 35.2 | 34.2 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 35.2 | 34.2 |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||
Fair Value | 35.2 | 34.2 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5 | 5.1 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | (0.1) |
Fair Value | 5 | 5 |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less Than 12 Months, Fair Value | 5 | |
Less Than 12 Months, Unrealized Losses | (0.1) | |
12 Months or Greater, Fair Value | 0 | |
12 Months or Greater, Unrealized Losses | 0 | |
Total, Fair Value | 5 | |
Total, Unrealized Losses | (0.1) | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||
Fair Value | $ 5 | $ 5 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value , Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value | $ 919.3 | $ 919.3 | $ 548.1 | ||
Recognized gain (loss) on marketable equity securities | (4) | $ (8.1) | (3.4) | $ (14.3) | |
Marketable equity securities | Reported as [Member] | Recurring Basis [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value | $ 22.1 | $ 22.1 | $ 25.5 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value , Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 919.3 | $ 548.1 |
U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 403.2 | 193.6 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 367.7 | 26.4 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 108.2 | 288.9 |
Certificates of deposit and term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 35.2 | 34.2 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5 | 5 |
Recurring Basis [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets, Fair Value Disclosure | 1,419.9 | 1,348.1 |
Recurring Basis [Member] | Fair Value [Member] | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets, Fair Value Disclosure | 679.4 | 878.7 |
Recurring Basis [Member] | Fair Value [Member] | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets, Fair Value Disclosure | 740.5 | 469.4 |
Recurring Basis [Member] | Fair Value [Member] | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets, Fair Value Disclosure | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 490.8 | 268.6 |
Recurring Basis [Member] | Fair Value [Member] | U.S. government and agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 415.9 | 259.3 |
Recurring Basis [Member] | Fair Value [Member] | U.S. government and agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 74.9 | 9.3 |
Recurring Basis [Member] | Fair Value [Member] | U.S. government and agency securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 490.8 | 115.8 |
Recurring Basis [Member] | Fair Value [Member] | Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 490.8 | 115.8 |
Recurring Basis [Member] | Fair Value [Member] | Commercial paper | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 108.2 | 288.9 |
Recurring Basis [Member] | Fair Value [Member] | Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 108.2 | 288.9 |
Recurring Basis [Member] | Fair Value [Member] | Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | Certificates of deposit and term deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 61.6 | 50.4 |
Recurring Basis [Member] | Fair Value [Member] | Certificates of deposit and term deposits | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | Certificates of deposit and term deposits | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 61.6 | 50.4 |
Recurring Basis [Member] | Fair Value [Member] | Certificates of deposit and term deposits | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 241.4 | 593.9 |
Recurring Basis [Member] | Fair Value [Member] | Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 241.4 | 593.9 |
Recurring Basis [Member] | Fair Value [Member] | Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | Money market funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5 | 5 |
Recurring Basis [Member] | Fair Value [Member] | Municipal bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | Municipal bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5 | 5 |
Recurring Basis [Member] | Fair Value [Member] | Municipal bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 22.1 | 25.5 |
Recurring Basis [Member] | Fair Value [Member] | Marketable equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 22.1 | 25.5 |
Recurring Basis [Member] | Fair Value [Member] | Marketable equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Fair Value [Member] | Marketable equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Recurring Basis [Member] | Reported as [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Assets, Fair Value Disclosure | 1,419.9 | 1,348.1 |
Recurring Basis [Member] | Reported as [Member] | Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 478.5 | 774.5 |
Recurring Basis [Member] | Reported as [Member] | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 22.1 | 25.5 |
Recurring Basis [Member] | Reported as [Member] | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 915.1 | 502.6 |
Recurring Basis [Member] | Reported as [Member] | Long-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 4.2 | $ 45.5 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Raw materials | $ 74.3 | $ 46.3 |
Work in process | 10.2 | 12 |
Finished goods | 291.8 | 206.3 |
Inventory | $ 376.3 | $ 264.6 |
Property and Equipment_Net (Det
Property and Equipment—Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Total property and equipment | $ 1,300.3 | $ 1,300.3 | $ 1,178.7 | ||
Less: accumulated depreciation | (318.4) | (318.4) | (280.2) | ||
Property and equipment—net | 981.9 | 981.9 | 898.5 | ||
Purchase of property and equipment | 107.1 | $ 162.5 | |||
Depreciation expense | 22.9 | $ 19.1 | 45.7 | $ 38.2 | |
Spain and U.S. | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Purchase of property and equipment | 51.9 | ||||
Land | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Total property and equipment | 330.1 | 330.1 | 310 | ||
Land | Spain and U.S. | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Total property and equipment | 6.5 | 6.5 | |||
Buildings and improvements | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Total property and equipment | 553.9 | 553.9 | 490.3 | ||
Buildings and improvements | Spain and U.S. | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Total property and equipment | 45.4 | 45.4 | |||
Computer equipment and software | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Total property and equipment | 237.8 | 237.8 | 222.7 | ||
Leasehold improvements | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Total property and equipment | 55.6 | 55.6 | 53.5 | ||
Evaluation units | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Total property and equipment | 25.7 | 25.7 | 19.2 | ||
Furniture and fixtures | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Total property and equipment | 32.5 | 32.5 | 31.3 | ||
Construction-in-progress | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Total property and equipment | $ 64.7 | $ 64.7 | $ 51.7 |
Investments in Privately Held_2
Investments in Privately Held Companies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Loss from equity method investments | $ (5.3) | $ (8.1) | $ (27.4) | $ (16.6) | ||
Linksys | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Cash investment in privately held company | $ 160 | |||||
Ownership interest percentage | 50.80% | |||||
Other than temporary impairment charge | $ 22.2 | |||||
Valuation allowance on deferred tax assets related to equity method investment | $ 17.5 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - Alaxala - USD ($) $ in Millions | Oct. 03, 2022 | Aug. 31, 2021 |
Business Acquisition [Line Items] | ||
Equity interests acquired | 25% | 75% |
Cash consideration | $ 13.5 | $ 64.2 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Net - Changes in Carrying Amount of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance - beginning of period | $ 128 |
Foreign currency translation adjustments | (2) |
Balance - end of period | $ 126 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Net - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 0 | $ 0 | ||
Amortization expense | $ 4,500,000 | $ 6,000,000 | $ 9,200,000 | $ 12,400,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Net - Other Intangible Assets, Net (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | $ 121.8 | $ 125.6 |
Accumulated Amortization | 77.2 | 69.6 |
Total | $ 44.6 | $ 56 |
Developed technologies | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Life (in Years) | 4 years 3 months 18 days | 4 years 1 month 6 days |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | $ 83 | $ 85.1 |
Accumulated Amortization | 56.5 | 50.3 |
Total | $ 26.5 | $ 34.8 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Life (in Years) | 7 years 1 month 6 days | 7 years 1 month 6 days |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | $ 30.2 | $ 31 |
Accumulated Amortization | 16 | 14.4 |
Total | $ 14.2 | $ 16.6 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Life (in Years) | 10 years | 10 years |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | $ 4.8 | $ 5.3 |
Accumulated Amortization | 0.9 | 0.7 |
Total | $ 3.9 | $ 4.6 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Life (in Years) | 1 year | 1 year |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | $ 3.8 | $ 4.2 |
Accumulated Amortization | 3.8 | 4.2 |
Total | $ 0 | $ 0 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Net - Estimated Future Amortization Expense (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Fiscal Years: | ||
2023 (the remainder of 2023) | $ 8.5 | |
2024 | 12.8 | |
2025 | 8.3 | |
2026 | 4.2 | |
2027 | 3.9 | |
Thereafter | 6.9 | |
Total | $ 44.6 | $ 56 |
Net Income Per Share , Calculat
Net Income Per Share , Calculation of Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Line Items] | ||||
Net income including non-controlling interests | $ 266.3 | $ 173.4 | $ 514 | $ 311.7 |
Net loss attributable to non-controlling interests | 0 | (0.1) | 0 | (0.2) |
Net income | $ 266.3 | $ 173.5 | $ 514 | $ 311.9 |
Basic shares: | ||||
Weighted-average common shares outstanding-basic (in shares) | 785 | 795.4 | 784.1 | 799.4 |
Diluted shares: | ||||
Weighted-average common shares outstanding-basic (in shares) | 785 | 795.4 | 784.1 | 799.4 |
Effect of potentially dilutive securities: | ||||
Weighted-average shares used to compute diluted net income per share (in shares) | 795.9 | 810.1 | 794.7 | 815.4 |
Net income per share attributable to Fortinet, Inc.: | ||||
Basic (in dollars per share) | $ 0.34 | $ 0.22 | $ 0.66 | $ 0.39 |
Diluted (in dollars per share) | $ 0.33 | $ 0.21 | $ 0.65 | $ 0.38 |
RSUs | ||||
Effect of potentially dilutive securities: | ||||
RSUs and stock options (in shares) | 4.1 | 6.4 | 3.9 | 7.5 |
Stock options | ||||
Effect of potentially dilutive securities: | ||||
RSUs and stock options (in shares) | 6.6 | 8.3 | 6.6 | 8.5 |
PSUs | ||||
Effect of potentially dilutive securities: | ||||
RSUs and stock options (in shares) | 0.2 | 0 | 0.1 | 0 |
Net Income Per Share , Anti Dil
Net Income Per Share , Anti Dilutive Securities (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities (in shares) | 3 | 2 | 3.5 | 1.6 |
RSUs | Share-based Payment Arrangement | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities (in shares) | 0 | 0.4 | 0.9 | 0.4 |
Stock options | Share-based Payment Arrangement | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities (in shares) | 3 | 1.6 | 2.6 | 1.2 |
Debt - Narrative (Details)
Debt - Narrative (Details) - Senior Notes - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Mar. 05, 2021 | |
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 1,000,000,000 | |||||
Accrued interest payable | $ 4,700,000 | $ 4,700,000 | $ 4,700,000 | |||
Interest expense | 4,500,000 | $ 4,500,000 | 9,000,000 | $ 9,000,000 | ||
Interest costs capitalized | 0 | $ 0 | ||||
Level 2 | ||||||
Debt Instrument [Line Items] | ||||||
Estimated fair value of outstanding debt | $ 856,300,000 | $ 856,300,000 | ||||
2026 Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 500,000,000 | |||||
Stated interest rate | 1% | 1% | 1% | |||
2031 Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 500,000,000 | |||||
Stated interest rate | 2.20% | 2.20% | 2.20% |
Debt - Summary of Outstanding D
Debt - Summary of Outstanding Debt (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Mar. 05, 2021 |
Debt Instrument [Line Items] | |||
Total debt | $ 1,000 | $ 1,000 | |
Less: Unamortized discount and debt issuance costs | 8.7 | 9.6 | |
LONG-TERM DEBT | $ 991.3 | 990.4 | |
Senior Notes | 2026 Senior Notes | |||
Debt Instrument [Line Items] | |||
Coupon Rate | 1% | 1% | |
Effective Interest Rate | 1.30% | ||
Total debt | $ 500 | 500 | |
Senior Notes | 2031 Senior Notes | |||
Debt Instrument [Line Items] | |||
Coupon Rate | 2.20% | 2.20% | |
Effective Interest Rate | 2.30% | ||
Total debt | $ 500 | $ 500 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Inventory Purchase Commitments (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Inventory purchase commitments | |
Total | $ 1,010.2 |
2023 | 813.2 |
Thereafter | $ 197 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Inventory purchase commitments | $ 1,010.2 |
Other contractual commitments and open purchase orders | $ 84.6 |
Non-cancelable remaining contract term (in excess of) | 1 year |
Operating lease liability | $ 93.9 |
Equity Plans and Share Repurc_3
Equity Plans and Share Repurchase Program (Deficit) , Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Weighted-Average Grant Date Fair Value per Share | ||||
Shares withheld for taxes | 0.4 | 0.6 | 1.1 | 1.7 |
Amount withheld for taxes | $ 25.1 | $ 35.3 | $ 59.7 | $ 100.1 |
Stock-based Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Remaining shares available for grant under the plans | 53 | 53 | ||
RSUs | ||||
Number of Shares | ||||
Balance, beginning (shares) | 10.5 | |||
Granted (shares) | 4.1 | |||
Forfeited (shares) | (0.2) | |||
Vested (shares) | (3.1) | |||
Balance, ending (shares) | 11.3 | 11.3 | ||
Weighted-Average Grant Date Fair Value per Share | ||||
Balance, beginning (in dollars per share) | $ 40.94 | |||
Granted (in dollars per share) | 61.17 | |||
Forfeited (in dollars per share) | 45.47 | |||
Vested (in dollars per share) | 34.47 | |||
Balance, ending (in dollars per share) | $ 49.97 | $ 49.97 | ||
Compensation cost not yet recognized | $ 509.9 | $ 509.9 | ||
Compensation cost not yet recognized period of recognition | 2 years 10 months 24 days |
Equity Plans and Share Repurc_4
Equity Plans and Share Repurchase Program (Deficit) - Employee Stock Options (Details) - Stock options - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
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 4 months 24 days | 4 years 4 months 24 days | 4 years 4 months 24 days | |
Volatility | 41% | 43.60% | 41.90% | 41.10% | |
Risk-free interest rate | 3.80% | 2.90% | 4.20% | 1.90% | |
Dividend rate | 0% | 0% | 0% | 0% | |
Number of Shares | |||||
Balance - Beginning (in shares) | 13.2 | ||||
Granted (in shares) | 1.2 | ||||
Forfeited (in shares) | (0.1) | ||||
Exercised (in shares) | (2.1) | ||||
Balance - Ending (in shares) | 12.2 | 12.2 | 13.2 | ||
Weighted- Average Exercise Price | |||||
Balance - Beginning (in dollars per share) | $ 24.37 | ||||
Granted (in dollars per share) | 60.80 | ||||
Forfeited (in dollars per share) | 44.99 | ||||
Exercised (in dollars per share) | 14.13 | ||||
Balance - Ending (in dollars per share) | $ 29.64 | $ 29.64 | $ 24.37 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||||
Options outstanding, Weighted average remaining contractual life (in years) | 3 years 6 months | ||||
Options outstanding, Aggregate intrinsic value | $ 344.8 | ||||
Options vested and expected to vest, Outstanding (in shares) | 12.2 | 12.2 | |||
Options vested and expected to vest, Weighted average exercise price (in dollars per share) | $ 29.64 | $ 29.64 | |||
Options vested and expected to vest, Weighted average remaining contractual life (in years) | 3 years 7 months 6 days | ||||
Options vested and expected to vest, Aggregate intrinsic value | $ 559.8 | $ 559.8 | |||
Options exercisable, Outstanding (in shares) | 8.2 | 8.2 | |||
Options exercisable, Weighted average exercise price (in dollars per share) | $ 20.26 | $ 20.26 | |||
Options exercisable, Weighted average remaining contractual life (in years) | 2 years 9 months 18 days | ||||
Options exercisable, Aggregate intrinsic value | $ 456.3 | $ 456.3 | |||
Compensation cost not yet recognized | $ 68 | $ 68 | |||
Compensation cost not yet recognized period of recognition | 2 years 9 months 18 days | ||||
Weighted-average fair value per share granted | $ 26.55 | $ 21.33 | $ 24.41 | $ 22.28 | |
Intrinsic value of options exercised | $ 24.3 | $ 13.8 | $ 97 | $ 43.7 | |
Fair value of options vested | $ 5.7 | $ 4.8 | $ 17.4 | $ 15 |
Equity Plans and Share Repurc_5
Equity Plans and Share Repurchase Program (Deficit) , Market Based PSUs (Details) - PSUs - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2023 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term in years | 2 years 8 months 12 days | |
Volatility | 47.50% | |
Risk-free interest rate | 4.60% | |
Dividend rate | 0% | |
Granted (shares) | 0.3 | |
Granted (in dollars per share) | $ 90.96 | |
Forfeited (shares) | 0 | |
Vested (shares) | 0 | |
Compensation cost not yet recognized | $ 23.2 | |
Compensation cost not yet recognized period of recognition | 2 years 7 months 6 days | |
Share-Based Payment Arrangement, Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 1 year | |
Vesting percentage | 20% | |
Award vesting period | 1 year | |
Share-Based Payment Arrangement, Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 2 years | |
Vesting percentage | 20% | |
Award vesting period | 2 years | |
Share-Based Payment Arrangement, Tranche Three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 3 years | |
Vesting percentage | 20% | |
Award vesting period | 3 years | |
Share-Based Payment Arrangement, Tranche Four | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance period | 4 years | |
Vesting percentage | 40% | |
Award vesting period | 4 years | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Market-based vesting percentage range | 0% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Market-based vesting percentage range | 200% |
Equity Plans and Share Repurc_6
Equity Plans and Share Repurchase Program (Deficit) , Allocation of Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 65.7 | $ 55.3 | $ 122.7 | $ 109.2 |
Income tax benefit associated with stock-based compensation | 14.5 | 12.2 | 27.1 | 24 |
RSUs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 55.1 | 49 | 104.2 | 97.3 |
Stock options | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 7.3 | 6.3 | 14 | 11.9 |
PSUs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 3.3 | 0 | 4.5 | 0 |
Cost of product revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 0.5 | 0.4 | 0.9 | 0.8 |
Cost of service revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 6 | 4.7 | 11.1 | 9.2 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 20 | 16.1 | 37 | 31.2 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 29.3 | 26.4 | 55.6 | 53.1 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 9.9 | $ 7.7 | $ 18.1 | $ 14.9 |
Equity Plans and Share Repurc_7
Equity Plans and Share Repurchase Program (Deficit) , Share Repurchase Program (Details) - Repurchase Program - USD ($) | 1 Months Ended | 6 Months Ended | ||
Jul. 31, 2023 | Apr. 30, 2023 | Jun. 30, 2023 | Aug. 07, 2023 | |
Share Repurchase Program [Line Items] | ||||
Increase in authorized stock repurchase amount | $ 1,000,000,000 | |||
Stock repurchase program, authorized amount | $ 6,250,000,000 | |||
Stock repurchased (in shares) | 0 | |||
Stock repurchase program, unused balance | $ 1,530,000,000 | |||
Subsequent Event | ||||
Share Repurchase Program [Line Items] | ||||
Increase in authorized stock repurchase amount | $ 500,000,000 | |||
Stock repurchase program, authorized amount | $ 6,750,000,000 | |||
Stock repurchase program, unused balance | $ 1,870,000,000 |
Income Taxes , Narrative (Detai
Income Taxes , Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate (percent) | 9% | 1% | 8% | (2.00%) | |
U.S. federal and state taxes, withholding taxes and foreign taxes | $ 84.8 | $ 54.5 | $ 170.6 | $ 93.3 | |
Tax benefit from foreign-derived intangible income deduction | 25.8 | 18.6 | 64 | 33.3 | |
Excess tax benefits on stock compensation | 13.3 | 17.3 | 39.6 | 49.5 | |
Release of reserves on uncertain tax positions and interest due | 18.1 | $ 16.2 | 18.1 | $ 16.2 | |
Unrecognized tax benefits | 63.4 | 63.4 | $ 67.4 | ||
Unrecognized tax benefits that would favorably affect effective tax rate | 53.8 | 53.8 | |||
Accrued interest and penalties related to uncertain tax benefits | 5.3 | 5.3 | $ 9.3 | ||
Possible decrease in unrecognized tax benefits | $ 1.9 | $ 1.9 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Retirement Benefits [Abstract] | ||||
Matching contribution on employee contributions, Percent | 50% | |||
Maximum contribution percentage of each employee's eligible earnings, Percent | 4% | |||
Matching contributions to the RRSP and 401(k) Plans | $ 5.7 | $ 3.2 | $ 10.1 | $ 6.6 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) business_activity reportable_segment operating_segment segment_manager | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Business activity (in business activities) | business_activity | 1 | ||||
Segment managers responsible for operations (in segment managers) | segment_manager | 0 | ||||
Number of operating segments (in operating segments) | operating_segment | 1 | ||||
Number of reportable segments (in reportable segments) | reportable_segment | 1 | ||||
Total revenue | $ 1,292.8 | $ 1,030.1 | $ 2,555.1 | $ 1,984.9 | |
Property and equipment - net | $ 981.9 | $ 981.9 | $ 898.5 | ||
Distributor A | Customer Concentration Risk | Revenue | |||||
Segment Reporting Information [Line Items] | |||||
Concentration (percent) | 27% | 29% | 28% | 29% | |
Distributor A | Customer Concentration Risk | Accounts Receivable | |||||
Segment Reporting Information [Line Items] | |||||
Concentration (percent) | 29% | 32% | |||
Distributor B | Customer Concentration Risk | Revenue | |||||
Segment Reporting Information [Line Items] | |||||
Concentration (percent) | 15% | 14% | 14% | 14% | |
Distributor B | Customer Concentration Risk | Accounts Receivable | |||||
Segment Reporting Information [Line Items] | |||||
Concentration (percent) | 12% | 12% | |||
Distributor C | Customer Concentration Risk | Revenue | |||||
Segment Reporting Information [Line Items] | |||||
Concentration (percent) | 14% | 13% | 14% | 14% | |
Distributor C | Customer Concentration Risk | Accounts Receivable | |||||
Segment Reporting Information [Line Items] | |||||
Concentration (percent) | 13% | 13% | |||
Americas | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | $ 537 | $ 413.6 | $ 1,060.5 | $ 796.2 | |
Property and equipment - net | 895.6 | 895.6 | $ 843.6 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 404.7 | 312.9 | 788.8 | 598.7 | |
Property and equipment - net | 686.5 | 686.5 | 638.1 | ||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Property and equipment - net | 208.3 | 208.3 | 204.4 | ||
Other Americas | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 132.3 | 100.7 | 271.7 | 197.5 | |
Latin America | |||||
Segment Reporting Information [Line Items] | |||||
Property and equipment - net | 0.8 | 0.8 | 1.1 | ||
EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 506.9 | 391.8 | 985.1 | 737.8 | |
Property and equipment - net | 69.4 | 69.4 | 35.9 | ||
APAC | |||||
Segment Reporting Information [Line Items] | |||||
Total revenue | 248.9 | $ 224.7 | 509.5 | $ 450.9 | |
Property and equipment - net | $ 16.9 | $ 16.9 | $ 19 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Aug. 01, 2023 | Aug. 07, 2023 | Jul. 31, 2023 | Apr. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | |
Subsequent Event [Line Items] | |||||||
Stock repurchased in the period, aggregate purchase price | $ 800,000,000 | $ 1,491,200,000 | |||||
Repurchase Program | |||||||
Subsequent Event [Line Items] | |||||||
Increase in authorized stock repurchase amount | $ 1,000,000,000 | ||||||
Stock repurchase program, authorized amount | $ 6,250,000,000 | ||||||
Stock repurchase program, unused balance | $ 1,530,000,000 | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Payments to acquire investments | $ 8,500,000 | ||||||
Subsequent Event | Repurchase Program | |||||||
Subsequent Event [Line Items] | |||||||
Increase in authorized stock repurchase amount | $ 500,000,000 | ||||||
Stock repurchase program, authorized amount | $ 6,750,000,000 | ||||||
Stock repurchase program, unused balance | $ 1,870,000,000 | ||||||
Stock repurchased in the period (in shares) | 2.8 | ||||||
Stock repurchased, average price (in dollars per share) | $ 57.44 | ||||||
Stock repurchased in the period, aggregate purchase price | $ 161,100,000 |