Arista Networks (ANET) 10-Q 6 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2020	May 01, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
Document Transition Report	false
Entity File Number	001-36468
Entity Registrant Name	Arista Networks, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-1751121
Entity Address, Address Line One	5453 Great America Parkway
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95054
City Area Code	(408)
Local Phone Number	547-5500
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	ANET
Security Exchange Name	NYSE
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		75,704,516
Entity Central Index Key	0001596532
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 761,333	$ 1,111,286
Marketable securities	1,875,660	1,613,082
Accounts receivable, net of rebates and allowances of $6,061 and $6,160, respectively	352,159	391,987
Inventories	261,798	243,825
Prepaid expenses and other current assets	85,949	111,456
Total current assets	3,336,899	3,471,636
Property and equipment, net	37,806	39,273
Acquisition-related intangible assets, net	89,373	45,235
Goodwill	84,781	54,855
Investments	4,150	4,150
Operating lease right-of-use assets	83,377	87,770
Deferred tax assets	448,432	452,025
Other assets	27,027	30,346
TOTAL ASSETS	4,111,845	4,185,290
CURRENT LIABILITIES:
Accounts payable	84,815	92,105
Accrued liabilities	100,443	140,249
Deferred revenue	332,175	312,668
Other current liabilities	55,574	52,052
Total current liabilities	573,007	597,074
Income taxes payable	58,507	55,485
Operating lease liabilities, non-current	78,502	83,022
Deferred revenue, non-current	264,600	262,620
Deferred tax liabilities, non-current	250,304	254,710
Other long-term liabilities	38,099	37,693
TOTAL LIABILITIES	1,263,019	1,290,604
Commitments and contingencies (Note 6)
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.0001 par value—100,000 shares authorized and no shares issued and outstanding as of March 31, 2020 and December 31, 2019	0	0
Common stock, $0.0001 par value—1,000,000 shares authorized as of March 31, 2020 and December 31, 2019; 75,655 and 76,389 shares issued and outstanding as of March 31, 2020 and December 31, 2019	8	8
Additional paid-in capital	1,149,224	1,106,305
Retained earnings	1,698,766	1,788,230
Accumulated other comprehensive income (loss)	828	143
TOTAL STOCKHOLDERS’ EQUITY	2,848,826	2,894,686
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 4,111,845	$ 4,185,290

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Rebates and allowances	$ 6,061	$ 6,160
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	75,655,000	76,389,000
Common stock, shares outstanding (in shares)	75,655,000	76,389,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue:
Total revenue	$ 523,029	$ 595,424
Cost of revenue:
Total cost of revenue	184,778	214,854
Gross profit	338,251	380,570
Operating expenses:
Research and development	113,154	119,669
Sales and marketing	57,086	51,053
General and administrative	18,349	15,506
Total operating expenses	188,589	186,228
Income from operations	149,662	194,342
Other income (expense), net	12,157	12,333
Income before income taxes	161,819	206,675
Provision for (benefit from) income taxes	23,388	5,646
Net income	138,431	201,029
Net income attributable to common stockholders:
Basic	138,431	200,911
Diluted	$ 138,431	$ 200,918
Net income per share attributable to common stockholders:
Basic (in dollars per share)	$ 1.82	$ 2.65
Diluted (in dollars per share)	$ 1.73	$ 2.47
Weighted-average shares used in computing net income per share attributable to common stockholders:
Basic (in shares)	76,264	75,920
Diluted (in shares)	79,939	81,201
Product
Revenue:
Total revenue	$ 410,906	$ 505,415
Cost of revenue:
Total cost of revenue	163,629	198,152
Service
Revenue:
Total revenue	112,123	90,009
Cost of revenue:
Total cost of revenue	$ 21,149	$ 16,702

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 138,431	$ 201,029
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(2,739)	235
Net change in unrealized gains (losses) on available-for-sale securities	3,424	3,179
Other comprehensive income (loss)	685	3,414
Comprehensive income	$ 139,116	$ 204,443

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands		Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2018			75,668
Beginning balance at Dec. 31, 2018		$ 2,143,389	$ 8	$ 956,572	$ 1,190,803	$ (3,994)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment to beginning balance	[1]	3,702			3,702
Net income		201,029			201,029
Other comprehensive income (loss), net of tax		3,414				3,414
Stock-based compensation		24,291		24,291
Issuance of common stock in connection with employee equity incentive plans (in shares)			791
Issuance of common stock in connection with employee equity incentive plans		26,323	$ 0	26,323
Tax withholding paid for net share settlement of equity awards (in shares)			(6)
Tax withholding paid for net share settlement of equity awards		(1,850)		(1,850)
Vesting of early-exercised stock options		69		69
Ending balance (in shares) at Mar. 31, 2019			76,453
Ending balance at Mar. 31, 2019		2,400,367	$ 8	1,005,405	1,395,534	(580)
Beginning balance (in shares) at Dec. 31, 2019			76,389
Beginning balance at Dec. 31, 2019		2,894,686	$ 8	1,106,305	1,788,230	143
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		138,431			138,431
Other comprehensive income (loss), net of tax		685				685
Stock-based compensation		27,556		27,556
Issuance of common stock in connection with employee equity incentive plans (in shares)			482
Issuance of common stock in connection with employee equity incentive plans		17,082		17,082
Tax withholding paid for net share settlement of equity awards (in shares)			(7)
Tax withholding paid for net share settlement of equity awards		(1,740)		(1,740)
Vesting of early-exercised stock options		21		21
Repurchase of common stock (in shares)			(1,209)
Repurchase of common stock		(227,895)	$ (227,895)		(227,895)
Ending balance (in shares) at Mar. 31, 2020			75,655
Ending balance at Mar. 31, 2020		$ 2,848,826	$ 8	$ 1,149,224	$ 1,698,766	$ 828
[1]	On January 1, 2019, we adopted Accounting Standard Codification Topic 842 - Leases ("ASC 842"), which resulted in a cumulative-effect adjustment to the beginning balance of Retained Earnings for 2019. See Note 1 of the accompanying notes for further details.

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$ 138,431	$ 201,029
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other		10,208	8,362
Stock-based compensation		27,556	24,291
Noncash lease expense		4,073	3,689
Deferred income taxes		457	(718)
(Gain) loss on investments in privately-held companies		0	(1,150)
Amortization (accretion) of investment premiums (discounts)		1,042	(2,069)
Changes in operating assets and liabilities:
Accounts receivable, net		46,329	60,531
Inventories		(17,691)	(82,596)
Prepaid expenses and other current assets		25,751	30,664
Other assets		3,946	(2,475)
Accounts payable		(6,386)	(2,391)
Accrued liabilities		(39,450)	(19,014)
Deferred revenue		21	(50,756)
Income taxes payable		3,982	2,040
Other liabilities		(3,422)	660
Net cash provided by operating activities		194,847	170,097
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities		414,503	302,264
Purchases of marketable securities		(674,649)	(332,247)
Business acquisitions, net of cash acquired		(66,225)	0
Purchases of property and equipment		(3,107)	(5,237)
Net cash used in investing activities		(329,478)	(35,220)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under equity plans		17,082	26,323
Tax withholding paid on behalf of employees for net share settlement		(1,740)	(1,850)
Repurchase of common stock		(227,895)	0
Net cash provided by (used in) financing activities		(212,553)	24,473
Effect of exchange rate changes		(2,691)	195
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(349,875)	159,545
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period		1,115,515	654,164
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period	[1]	765,640	813,709
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:
Right-of-use assets recognized upon the adoption of ASC 842		0	93,207
Right-of-use assets obtained in exchange for new operating lease liabilities		0	9,034
Property and equipment included in accounts payable and accrued liabilities		$ 524	$ 1,055
[1]	See Note 4 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash as shown in this condensed consolidated statements of cash flows.

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Organization and Summary of Significant Accounting Policies	1. Organization and Summary of Significant Accounting Policies Organization Arista Networks, Inc. (together with our subsidiaries, “we,” “our,” "Arista," "Company" or “us”) is a supplier of cloud networking solutions that use software innovations to address the needs of large-scale internet companies, cloud service providers and next-generation enterprise. Our cloud networking solutions consist of our Extensible Operating System ("EOS"), a set of network applications and our 1/2.5/5/10/25/40/50/100/400 Gigabit Ethernet switching and routing platforms. We are incorporated in the state of Delaware. Our corporate headquarters are located in Santa Clara, California, and we have wholly-owned subsidiaries throughout the world, including North America, Europe, Asia and Australia. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly owned subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information. The results for the three months ended March 31, 2020 , are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. All significant inter-company accounts and transactions have been eliminated. Our condensed consolidated financial statements and related financial information in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 , filed with the SEC on February 14, 2020 . Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, but are not limited to, revenue recognition and deferred revenue; allowance for doubtful accounts, sales rebates and return reserves; valuation of goodwill and acquisition-related intangible assets, accounting for income taxes, including the valuation allowance on deferred tax assets and reserves for uncertain tax positions; estimate of useful lives of long-lived assets including intangible assets; valuation of inventory and contract manufacturer/supplier liabilities; and the recognition and measurement of contingent liabilities. We evaluate our estimates and assumptions based on historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates. Risks and Uncertainties In March 2020, the World Health Organization declared COVID-19 a pandemic. Consequently, in an effort to contain COVID-19 or slow its spread, countries around the world, including the U.S., have issued orders to quarantine residents to their homes, practice social distancing when engaging in activities deemed “essential,” close all business temporarily deemed not "essential" and place restrictions on travel and mass gatherings. COVID-19 has negatively impacted the global economy, disrupted business, sales activities, global supply chains and workforce participation, including our own, and created significant volatility and disruption of financial markets, and it is possible that it could cause a local or global economic recession. Our contract manufacturers and suppliers are experiencing delays in the production and export of their products, which has negatively impacted our supply chain, and any continued disruption in manufacturing and supply would negatively impact our business in the future. In addition, we expect that COVID-19 related disruptions may have a negative impact on demand from our customers in future periods, which could result in a year-over-year decline in revenues in the second quarter of 2020, and this may continue into the third quarter or beyond. However, the extent of the impact of COVID-19 on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, and the impact of any initiatives and programs we may undertake to address financial and operational challenges, will depend on future developments, including the duration and spread of the pandemic and related restrictions on travel and transport, all of which are uncertain and cannot be predicted. Management is actively monitoring the impact of the global situation on the Company's financial condition, liquidity, operations, suppliers, industry, and workforce. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. Recently Adopted Accounting Pronouncements Credit Losses of Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The standard requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. For trade receivables, we are required to estimate lifetime expected credit losses. For available-for-sale debt securities, we are required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. We adopted the new guidance in our first quarter of 2020 under a modified retrospective basis, and there was no material impact to our financial statements upon adoption. In addition, we do not anticipate that it will have a material impact on our consolidated statement of operations or consolidated statements of cash flows going forward.

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
Business Combinations	2. Business Combinations On February 5, 2020, the Company completed its acquisition of Big Switch Networks, Inc. (“Big Switch”) a network monitoring and software-defined networking pioneer headquartered in Santa Clara, California. With the acquisition of Big Switch, we expect to expand our data center networking solutions and further strengthen our network monitoring and observability suite delivered through Arista’s software platform CloudVision and DANZ (DataANalyZer) capabilities. We paid an aggregate of $73.3 million in cash for the acquisition, of which $5.3 million in severance and other costs was accounted for as post-combination expense and was excluded from the purchase consideration. We also incurred certain acquisition-related expenses and restructuring costs of $6.6 million, which primarily consisted of retention bonuses to continuing employees, professional and consulting fees, and facilities restructuring costs. The following table summarizes the purchase consideration of $68.0 million , and the preliminary purchase price allocation based on the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): Preliminary Purchase Price Allocation Tangible assets 13,376 Liabilities (24,346 ) Intangible assets 49,040 Goodwill 29,926 Net assets acquired $ 67,996 The acquired intangible assets are amortized on a straight-line basis over their estimated useful lives as we believe this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. The following table shows the valuation of the intangible assets acquired (in thousands) along with their estimated useful lives. Acquisition Date Fair Value Estimated Useful Life Developed technology $ 31,040 5 years Customer relationships 13,150 7 years Non-compete agreements 4,060 2 years Trade name 790 1 year Total intangible assets acquired $ 49,040 Goodwill of $29.9 million is primarily attributable to the expected synergies created by incorporating the solutions of the acquired businesses into our technology platform, and the value of the assembled workforce. Goodwill is not deductible for income taxes purposes. In addition, the acquisition of Big Switch did not have a material impact on our revenue and net income for the current period, and therefore pro forma financial information has not been presented.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair Value Measurements Assets and liabilities recorded at fair value on a recurring basis in the accompanying condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. We use a fair value hierarchy to measure fair value, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The three-tiers of the fair value hierarchy are as follows: Level I - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level II - Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level III - Unobservable inputs that are supported by little or no market data for the related assets or liabilities and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. We measure and report our cash equivalents, restricted cash, and available-for-sale marketable securities at fair value on a recurring basis. The following tables summarize the amortized costs, unrealized gains and losses and fair value of these financial assets by significant investment category and their level within the fair value hierarchy (in thousands): March 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 351,469 $ — $ — $ 351,469 $ 351,469 $ — $ — Marketable Securities: Commercial paper 83,261 — — 83,261 — 83,261 — Certificate of deposits (1) 3,000 — — 3,000 — 3,000 — U.S. government notes 576,488 7,114 — 583,602 583,602 — — Corporate bonds 923,194 1,753 (3,116 ) 921,831 — 921,831 — Agency securities 283,044 939 (17 ) 283,966 — 283,966 — 1,868,987 9,806 (3,133 ) 1,875,660 583,602 1,292,058 — Other Assets: Money market funds - restricted 4,307 — — 4,307 4,307 — — Total Financial Assets $ 2,224,763 $ 9,806 $ (3,133 ) $ 2,231,436 $ 939,378 $ 1,292,058 $ — December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 562,580 $ — $ — $ 562,580 $ 562,580 $ — $ — Certificate of deposits (1) $ 4,001 4,001 4,001 566,581 — — 566,581 562,580 4,001 — Marketable Securities: Commercial paper 66,717 — — 66,717 — 66,717 — Certificate of deposits (1) 3,000 — — 3,000 — 3,000 — U.S. government notes 518,884 414 (20 ) 519,278 519,278 — — Corporate bonds 787,741 2,392 (73 ) 790,060 — 790,060 — Agency securities 233,491 577 (41 ) 234,027 — 234,027 — 1,609,833 3,383 (134 ) 1,613,082 519,278 1,093,804 — Other Assets: Money market funds - restricted 4,229 — — 4,229 4,229 — — Total Financial Assets $ 2,180,643 $ 3,383 $ (134 ) $ 2,183,892 $ 1,086,087 $ 1,097,805 $ — ______________________ (1) As of March 31, 2020 and December 31, 2019 , all of our certificates of deposits were domestic deposits. We did no t realize any other-than-temporary losses on our marketable securities for the three months ended March 31, 2020 and December 31, 2019 . As of March 31, 2020 and December 31, 2019, we did not have any marketable securities that have been in a continuous unrealized loss position for more than twelve months. We invest in marketable securities that have maximum maturities of up to two years and are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these marketable securities, the more susceptible they are to changes in market interest rates and bond yields. As interest rates increase, those marketable securities purchased at a time with lower interest rates show a mark-to-market unrealized loss. We expect to realize the full value of these investments upon maturity or sale and therefore, we do no t consider any of our marketable securities to be other-than-temporarily impaired as of March 31, 2020 . As of March 31, 2020 , the contractual maturities of our investments did not exceed 24 months. The fair values of available-for-sale marketable securities, by remaining contractual maturity, are as follows (in thousands): March 31, 2020 Due in 1 year or less $ 1,173,934 Due in 1 year through 2 years 701,726 Total marketable securities $ 1,875,660 The weighted-average remaining duration of our current marketable securities is approximately 0.9 years as of March 31, 2020 . As we view these securities as available to support current operations, we classify securities with maturities beyond 12 months as current assets under the caption marketable securities in the accompanying unaudited condensed consolidated balance sheets.

Financial Statements Details

Financial Statements Details	3 Months Ended
	Mar. 31, 2020
Balance Sheet Components [Abstract]
Financial Statements Details	4. Financial Statements Details Cash, Cash Equivalents and Restricted Cash The following table is a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed consolidated balance sheets that sum to the total of the same such amounts shown in the accompanying condensed consolidated statements of cash flows (in thousands): March 31, 2020 March 31, 2019 Cash and cash equivalents $ 761,333 $ 809,491 Restricted cash included in other assets 4,307 4,218 Total cash, cash equivalents and restricted cash $ 765,640 $ 813,709 Restricted cash included in other assets as of March 31, 2020 and March 31, 2019 primarily included $4.0 million pledged as collateral representing a security deposit required for a facility lease. Accounts Receivable, Net Accounts receivable, net consists of the following (in thousands): March 31, 2020 December 31, 2019 Accounts receivable $ 358,220 $ 398,147 Allowance for doubtful accounts (424 ) (638 ) Product sales rebate and returns reserve (5,637 ) (5,522 ) Accounts receivable, net $ 352,159 $ 391,987 Inventories Inventories consist of the following (in thousands): March 31, 2020 December 31, 2019 Raw materials $ 130,357 $ 96,712 Finished goods 131,441 147,113 Total inventories $ 261,798 $ 243,825 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): March 31, 2020 December 31, 2019 Prepaid income taxes $ 8,706 $ 20,153 Inventory deposit 12,802 13,716 Other current assets 50,373 64,464 Other prepaid expenses and deposits 14,068 13,123 Total prepaid expenses and other current assets $ 85,949 $ 111,456 Property and Equipment, Net Property and equipment, net consists of the following (in thousands): March 31, 2020 December 31, 2019 Equipment and machinery $ 63,461 $ 64,748 Computer hardware and software 39,061 36,627 Leasehold improvements 31,150 31,235 Furniture and fixtures 3,713 3,774 Construction-in-process 405 265 Property and equipment, gross 137,790 136,649 Less: accumulated depreciation (99,984 ) (97,376 ) Property and equipment, net $ 37,806 $ 39,273 Depreciation expense was $5.2 million and $4.7 million for the three months ended March 31, 2020 and 2019 , respectively. Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, 2020 December 31, 2019 Accrued payroll related costs $ 43,842 $ 80,133 Accrued manufacturing costs 30,998 31,920 Accrued product development costs 7,162 11,410 Accrued professional fees 5,160 6,335 Accrued warranty costs 6,341 6,742 Accrued taxes 1,843 1,716 Other 5,097 1,993 Total accrued liabilities $ 100,443 $ 140,249 Warranty Accrual The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands): Three Months Ended March 31, 2020 2019 Warranty accrual, beginning of period $ 6,742 $ 5,362 Liabilities accrued for warranties issued during the period 1,070 932 Warranty costs incurred during the period (1,471 ) (1,168 ) Warranty accrual, end of period $ 6,341 $ 5,126 Contract Balances The following table summarizes the activity related to our contract assets (in thousands): Three Months Ended March 31, 2020 2019 Contract assets, beginning balance $ 25,565 $ 6,341 Contract assets, ending balance 9,636 5,699 The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended March 31, 2020 2019 Contract liabilities, beginning balance $ 61,050 $ 32,595 Less: Revenue recognized from beginning balance (4,847 ) (2,826 ) Less: Beginning balance reclassified to deferred revenue (2,433 ) (1,259 ) Add: Contract liabilities recognized 10,555 8,804 Contract liabilities, ending balance $ 64,325 $ 37,314 As of March 31, 2020 and December 31, 2019 , $26.3 million and $23.4 million of our contract liabilities, respectively, was included in “Other current liabilities” with the remaining balances included in “Other long-term liabilities”. Deferred Revenue and Performance Obligations Deferred revenue is comprised mainly of unearned revenue related to multi-year PCS contracts, services and product deferrals related to acceptance clauses. The following table summarizes the activity related to our deferred revenue (in thousands): Three Months Ended March 31, 2020 2019 Deferred revenue, beginning balance $ 575,288 $ 587,227 Less: Revenue recognized from beginning balance (100,377 ) (190,597 ) Add: Deferral of revenue in current period, excluding amounts recognized during the period 121,864 139,841 Deferred revenue, ending balance $ 596,775 $ 536,471 Revenue from Remaining Performance Obligations Revenue from remaining performance obligations represents contracted revenue that has not yet been recognized, which includes contract liabilities and deferred revenue that will be recognized as revenue in future periods. As of March 31, 2020 , approximately $716.5 million of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 80% of these remaining performance obligations over the next two years and 20% during the third to the fifth year. Other Income (Expense), Net Other income (expense), net consists of the following (in thousands): Three Months Ended March 31, 2020 2019 Interest income $ 11,662 $ 11,898 Gain (loss) on investment in privately-held companies — 1,150 Other income (expense), net 495 (715 ) Total $ 12,157 $ 12,333

Investments

Investments	3 Months Ended
	Mar. 31, 2020
Investments in privately-held companies [Abstract]
Investments	5. Investments Investments in Privately-Held Companies Our investments are in the equity of privately-held companies, which do not have readily determinable fair values. These non-marketable equity securities are initially recorded at cost, and subsequently remeasured to fair value on a non-recurring basis based on observable price changes in orderly transactions for similar investments of the same issuer, or for impairment. These investments are classified within Level III of the fair value hierarchy as we estimate the value based on valuation methods using the observable transaction price at the transaction date and other significant unobservable inputs, such as volatility, rights, and obligations related to those investments. In addition, the valuation requires management judgment due to the absence of market price and inherent lack of liquidity. The following table summarizes the activity related to our investments in privately-held companies held as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Cost of investment $ 3,000 $ 3,000 Cumulative impairment — — Cumulative upward adjustment 1,150 1,150 Carrying amount of investment $ 4,150 $ 4,150 During the current quarter, there were no realized or unrealized gains or losses recorded on our remaining investment. During the three months ended March 31, 2019 , we recorded $1.2 million

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies Purchase Commitments We outsource most of our manufacturing and supply chain management operations to third-party contract manufacturers, who procure components and assemble products on our behalf based on our forecasts in order to reduce manufacturing lead times and ensure adequate component supply. We issue purchase orders to our contract manufacturers for finished products and a significant portion of these orders consist of firm non-cancellable commitments. In addition, we purchase strategic component inventory from certain suppliers under purchase commitments that in some cases are non-cancellable, including integrated circuits, which are consigned to our contract manufacturers. As of March 31, 2020 , we had non-cancellable purchase commitments of $352.4 million , of which $337.6 million was to our contract manufacturers and suppliers. In addition, we have provided suppliers with inventory deposits to secure our obligations to purchase inventory and the amount of these deposits may increase in future periods as we work to reduce product lead times and ensure adequate component supply to meet future demand. We had $15.6 million and $16.5 million in deposits as of March 31, 2020 and December 31, 2019 , respectively. These deposits are classified in “Prepaid expenses and other current assets” and “Other assets” in our accompanying unaudited condensed consolidated balance sheets. Guarantees We have entered into agreements with some of our direct customers and channel partners that contain indemnification provisions relating to potential situations where claims could be alleged that our products infringe the intellectual property rights of a third party. We have, at our option and expense, the ability to repair any infringement, replace product with a non-infringing equivalent-in-function product or refund our customers all or a portion of the value of the product. Other guarantees or indemnification agreements include guarantees of product and service performance and standby letters of credit for leased facilities and corporate credit cards. We have not recorded a liability related to these indemnification and guarantee provisions and our guarantee and indemnification arrangements have not had a significant impact on our consolidated financial statements to date. Legal Proceedings In the ordinary course of business, we are a party to other claims and legal proceedings including matters relating to commercial, employee relations, business practices and intellectual property. We record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of March 31, 2020 , provisions recorded for contingent losses related to other claims and matters have not been significant. Based on currently available information, management does not believe that any additional liabilities relating to other unresolved matters are probable or that the amount of any resulting loss is estimable, and believes these other matters are not likely, individually and in the aggregate, to have a material adverse effect on our financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and our view of these matters may change in the future. Were an unfavorable outcome to occur, there exists the possibility of a material adverse impact on our financial position, results of operations or cash flows for the period in which the unfavorable outcome occurs, and potentially in future periods.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Stockholders' Equity	7. Stockholders’ Equity Stock Repurchase Program In April 2019, our board of directors authorized a $1.0 billion stock repurchase program (the “Repurchase Program”). This authorization allows us to repurchase shares of our common stock opportunistically and will be funded from working capital. Repurchases may be made at management’s discretion from time to time on the open market, through privately negotiated transactions, transactions structured through investment banking institutions, block purchases, trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or a combination of the foregoing. The Repurchase Program, which expires in April 2022 , does not obligate us to acquire any of our common stock, and may be suspended or discontinued by us at any time without prior notice. As of March 31, 2020 , the remaining authorized amount for stock repurchases under this program was approximately $506.0 million . A summary of the stock repurchase activity under the Repurchase Program for the three months ended March 31, 2020 is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2020 Aggregate purchase price $ 227,895 Shares repurchased 1,209 Average price paid per share $ 188.61 The aggregate purchase price of repurchased shares of our common stock is recorded as a reduction to retained earnings. All shares repurchased under the Repurchase Program have been retired. Equity Award Plan Activities 2014 Equity Incentive Plan Effective January 1, 2020 , the Company's board of directors authorized an increase of 2,291,660 shares to the shares available for issuance under the 2014 Equity Incentive Plan (the “2014 Plan”). Pursuant to the 2014 Plan, the 2020 share increase is determined based on the lesser of 3% of total shares of common stock outstanding as of December 31, 2019 , which was, 12,500,000 shares, or such amount as determined by our board of directors. As of March 31, 2020 , there remained approximately 22.6 million shares available for issuance under the 2014 Plan. 2014 Employee Stock Purchase Plan Effective January 1, 2020 , our board of directors authorized an increase of 763,886 shares to the shares available for issuance under our 2014 Employee Stock Purchase Plan (the “ESPP”). Pursuant to the ESPP, the 2020 share increase was determined based on the lesser of 1% of the total shares of common stock outstanding on December 31, 2019 , 2,500,000 shares, or such amount as determined by our board of directors. During the three months ended March 31, 2020 , we issued 51,292 shares at a weighted-average purchase price of $184.19 per share under the ESPP. As of March 31, 2020 , there remained 3,905,368 shares available for issuance under the ESPP. Stock Option Activities The following table summarizes the option activity under our stock plans and related information (in thousands, except years and per share amounts): Options Outstanding Number of Outstanding Options Weighted- Weighted- Aggregate Balance—December 31, 2019 4,564 $ 42.50 4.4 $ 740,387 Options granted — — Options exercised (309 ) 24.72 Options canceled (16 ) 199.60 Balance—March 31, 2020 4,239 $ 43.23 4.2 $ 681,292 Vested and exercisable—March 31, 2020 2,626 $ 29.64 3.7 $ 454,105 Restricted Stock Unit (RSU) Activities A summary of the RSU activity under the 2014 Plan and related information are presented below (in thousands, except years and per share amounts): Number of Weighted- Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Unvested balance—December 31, 2019 1,070 $ 190.35 1.5 $ 217,701 RSUs granted 350 207.22 RSUs vested (122 ) 146.47 RSUs forfeited/canceled (42 ) 229.04 Unvested balance—March 31, 2020 1,256 $ 198.00 1.6 $ 254,386 Shares Available for Grant The following table presents the stock activity and the total number of shares available for grant under the 2014 Plan as of March 31, 2020 (in thousands): Number of Shares Balance—December 31, 2019 15,146 Authorized 2,292 Options granted — RSUs granted (350 ) Options canceled 16 RSUs forfeited 42 Shares traded for taxes 7 Balance—March 31, 2020 17,153 Stock-Based Compensation Expense Total stock-based compensation expense related to options, restricted stock units, restricted stock, and employee stock purchase rights granted were allocated as follows (in thousands): Three Months Ended March 31, 2020 2019 Cost of revenue $ 1,327 $ 1,098 Research and development 15,928 13,131 Sales and marketing 6,396 6,534 General and administrative 3,905 3,528 Total stock-based compensation $ 27,556 $ 24,291 As of March 31, 2020 , unrecognized stock-based compensation expenses by award type and their expected weighted-average recognition periods are summarized in the following table (in thousands, except years). March 31, 2020 Stock Option RSU ESPP Restricted Stock Unrecognized stock-based compensation expense $ 38,896 $ 222,371 $ 8,560 $ 3,569 Weighted-average amortization period 3.0 years 3.2 years 1.0 years 2.5 years

Net Income Per Share Available

Net Income Per Share Available to Common Stock	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Net Income Per Share Available to Common Stock	8. Net Income Per Share Available to Common Stock The following table sets forth the computation of our basic and diluted net income per share available to common stock (in thousands, except per share amounts): Three Months Ended March 31, 2020 2019 Numerator: Basic: Net income $ 138,431 $ 201,029 Less: undistributed earnings allocated to participating securities — (118 ) Net income available to common stockholders, basic $ 138,431 $ 200,911 Diluted: Net income attributable to common stockholders, basic $ 138,431 $ 200,911 Add: undistributed earnings allocated to participating securities — 7 Net income attributable to common stockholders, diluted $ 138,431 $ 200,918 Denominator: Basic: Weighted-average shares used in computing net income per share available to common stockholders, basic 76,264 75,920 Diluted: Weighted-average shares used in computing net income per share available to common stockholders, basic 76,264 75,920 Add weighted-average effect of dilutive securities: Stock options and RSUs 3,675 5,279 Employee stock purchase plan — 2 Weighted-average shares used in computing net income per share available to common stockholders, diluted 79,939 81,201 Net income per share attributable to common stockholders: Basic $ 1.82 $ 2.65 Diluted $ 1.73 $ 2.47 The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share available to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands): Three Months Ended March 31, 2020 2019 Stock options and RSUs to purchase common stock 601 162 Employee stock purchase plan — 105 Total 601 267

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes Three Months Ended March 31, 2020 2019 (in thousands, except percentages) Income before income taxes $ 161,819 $ 206,675 Provision for (benefit from) income taxes 23,388 5,646 Effective tax rate 14.5 % 2.7 % The effective tax rates above reflect tax expense recorded on pre-tax income in the three months ended March 31, 2020 and March 31, 2019. The change in effective tax rate in the three months ended March 31, 2020, as compared to the same period in 2019, was primarily due to a decrease in tax benefits attributable to equity compensation settlements.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Segment Information	10. Segment Information We have determined that we operate as one reportable segment. The following table represents revenue based on the customer’s location, as determined by the customer’s shipping address (in thousands): Three Months Ended March 31, 2020 2019 Americas $ 400,660 $ 439,638 Europe, Middle East and Africa 72,624 111,269 Asia-Pacific 49,745 44,517 Total revenue $ 523,029 $ 595,424 Long-lived assets, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, net by location are summarized as follows (in thousands): March 31, 2020 December 31, 2019 United States $ 30,489 $ 32,565 International 7,317 6,708 Total $ 37,806 $ 39,273

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly owned subsidiaries and have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information. The results for the three months ended March 31, 2020 , are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. All significant inter-company accounts and transactions have been eliminated. Our condensed consolidated financial statements and related financial information in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 , filed with the SEC on February 14, 2020 .
Use of Estimates	Use of Estimates The preparation of the accompanying condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. Those estimates and assumptions include, but are not limited to, revenue recognition and deferred revenue; allowance for doubtful accounts, sales rebates and return reserves; valuation of goodwill and acquisition-related intangible assets, accounting for income taxes, including the valuation allowance on deferred tax assets and reserves for uncertain tax positions; estimate of useful lives of long-lived assets including intangible assets; valuation of inventory and contract manufacturer/supplier liabilities; and the recognition and measurement of contingent liabilities. We evaluate our estimates and assumptions based on historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates.
Recently Adopted Accounting Pronouncements and Recent Accounting Pronouncements Not Yet Effective	Recently Adopted Accounting Pronouncements Credit Losses of Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The standard requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. For trade receivables, we are required to estimate lifetime expected credit losses. For available-for-sale debt securities, we are required to recognize an allowance for credit losses rather than a reduction to the carrying value of the asset. We adopted the new guidance in our first quarter of 2020 under a modified retrospective basis, and there was no material impact to our financial statements upon adoption. In addition, we do not anticipate that it will have a material impact on our consolidated statement of operations or consolidated statements of cash flows going forward.

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the purchase consideration of $68.0 million , and the preliminary purchase price allocation based on the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): Preliminary Purchase Price Allocation Tangible assets 13,376 Liabilities (24,346 ) Intangible assets 49,040 Goodwill 29,926 Net assets acquired $ 67,996
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	The following table shows the valuation of the intangible assets acquired (in thousands) along with their estimated useful lives. Acquisition Date Fair Value Estimated Useful Life Developed technology $ 31,040 5 years Customer relationships 13,150 7 years Non-compete agreements 4,060 2 years Trade name 790 1 year Total intangible assets acquired $ 49,040

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Disclosures [Abstract]
Summary of Fair Value of Financial Assets by Level	The following tables summarize the amortized costs, unrealized gains and losses and fair value of these financial assets by significant investment category and their level within the fair value hierarchy (in thousands): March 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 351,469 $ — $ — $ 351,469 $ 351,469 $ — $ — Marketable Securities: Commercial paper 83,261 — — 83,261 — 83,261 — Certificate of deposits (1) 3,000 — — 3,000 — 3,000 — U.S. government notes 576,488 7,114 — 583,602 583,602 — — Corporate bonds 923,194 1,753 (3,116 ) 921,831 — 921,831 — Agency securities 283,044 939 (17 ) 283,966 — 283,966 — 1,868,987 9,806 (3,133 ) 1,875,660 583,602 1,292,058 — Other Assets: Money market funds - restricted 4,307 — — 4,307 4,307 — — Total Financial Assets $ 2,224,763 $ 9,806 $ (3,133 ) $ 2,231,436 $ 939,378 $ 1,292,058 $ — December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 562,580 $ — $ — $ 562,580 $ 562,580 $ — $ — Certificate of deposits (1) $ 4,001 4,001 4,001 566,581 — — 566,581 562,580 4,001 — Marketable Securities: Commercial paper 66,717 — — 66,717 — 66,717 — Certificate of deposits (1) 3,000 — — 3,000 — 3,000 — U.S. government notes 518,884 414 (20 ) 519,278 519,278 — — Corporate bonds 787,741 2,392 (73 ) 790,060 — 790,060 — Agency securities 233,491 577 (41 ) 234,027 — 234,027 — 1,609,833 3,383 (134 ) 1,613,082 519,278 1,093,804 — Other Assets: Money market funds - restricted 4,229 — — 4,229 4,229 — — Total Financial Assets $ 2,180,643 $ 3,383 $ (134 ) $ 2,183,892 $ 1,086,087 $ 1,097,805 $ — ______________________ (1) As of March 31, 2020 and December 31, 2019 , all of our certificates of deposits were domestic deposits.
Fair Value of Available-For-Sale Investments By Contractual Maturity	The fair values of available-for-sale marketable securities, by remaining contractual maturity, are as follows (in thousands): March 31, 2020 Due in 1 year or less $ 1,173,934 Due in 1 year through 2 years 701,726 Total marketable securities $ 1,875,660

Financial Statements Details (T

Financial Statements Details (Tables)	3 Months Ended
	Mar. 31, 2020
Balance Sheet Components [Abstract]
Schedule of Cash, Cash Equivalents and Restricted Cash	The following table is a reconciliation of cash, cash equivalents and restricted cash reported within the accompanying condensed consolidated balance sheets that sum to the total of the same such amounts shown in the accompanying condensed consolidated statements of cash flows (in thousands): March 31, 2020 March 31, 2019 Cash and cash equivalents $ 761,333 $ 809,491 Restricted cash included in other assets 4,307 4,218 Total cash, cash equivalents and restricted cash $ 765,640 $ 813,709
Schedule of Accounts Receivable, Net	Accounts receivable, net consists of the following (in thousands): March 31, 2020 December 31, 2019 Accounts receivable $ 358,220 $ 398,147 Allowance for doubtful accounts (424 ) (638 ) Product sales rebate and returns reserve (5,637 ) (5,522 ) Accounts receivable, net $ 352,159 $ 391,987
Schedule of Inventories	Inventories consist of the following (in thousands): March 31, 2020 December 31, 2019 Raw materials $ 130,357 $ 96,712 Finished goods 131,441 147,113 Total inventories $ 261,798 $ 243,825
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following (in thousands): March 31, 2020 December 31, 2019 Prepaid income taxes $ 8,706 $ 20,153 Inventory deposit 12,802 13,716 Other current assets 50,373 64,464 Other prepaid expenses and deposits 14,068 13,123 Total prepaid expenses and other current assets $ 85,949 $ 111,456
Schedule of Property and Equipment, Net	Property and equipment, net consists of the following (in thousands): March 31, 2020 December 31, 2019 Equipment and machinery $ 63,461 $ 64,748 Computer hardware and software 39,061 36,627 Leasehold improvements 31,150 31,235 Furniture and fixtures 3,713 3,774 Construction-in-process 405 265 Property and equipment, gross 137,790 136,649 Less: accumulated depreciation (99,984 ) (97,376 ) Property and equipment, net $ 37,806 $ 39,273
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): March 31, 2020 December 31, 2019 Accrued payroll related costs $ 43,842 $ 80,133 Accrued manufacturing costs 30,998 31,920 Accrued product development costs 7,162 11,410 Accrued professional fees 5,160 6,335 Accrued warranty costs 6,341 6,742 Accrued taxes 1,843 1,716 Other 5,097 1,993 Total accrued liabilities $ 100,443 $ 140,249
Schedule of Warranty Accrual	The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands): Three Months Ended March 31, 2020 2019 Warranty accrual, beginning of period $ 6,742 $ 5,362 Liabilities accrued for warranties issued during the period 1,070 932 Warranty costs incurred during the period (1,471 ) (1,168 ) Warranty accrual, end of period $ 6,341 $ 5,126
Schedule of Contract Balances	The following table summarizes the activity related to our contract assets (in thousands): Three Months Ended March 31, 2020 2019 Contract assets, beginning balance $ 25,565 $ 6,341 Contract assets, ending balance 9,636 5,699 The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended March 31, 2020 2019 Contract liabilities, beginning balance $ 61,050 $ 32,595 Less: Revenue recognized from beginning balance (4,847 ) (2,826 ) Less: Beginning balance reclassified to deferred revenue (2,433 ) (1,259 ) Add: Contract liabilities recognized 10,555 8,804 Contract liabilities, ending balance $ 64,325 $ 37,314
Schedule of Deferred Revenue	Deferred revenue is comprised mainly of unearned revenue related to multi-year PCS contracts, services and product deferrals related to acceptance clauses. The following table summarizes the activity related to our deferred revenue (in thousands): Three Months Ended March 31, 2020 2019 Deferred revenue, beginning balance $ 575,288 $ 587,227 Less: Revenue recognized from beginning balance (100,377 ) (190,597 ) Add: Deferral of revenue in current period, excluding amounts recognized during the period 121,864 139,841 Deferred revenue, ending balance $ 596,775 $ 536,471
Schedule of Other Income (Expense), Net	Other income (expense), net consists of the following (in thousands): Three Months Ended March 31, 2020 2019 Interest income $ 11,662 $ 11,898 Gain (loss) on investment in privately-held companies — 1,150 Other income (expense), net 495 (715 ) Total $ 12,157 $ 12,333

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2020
Investments in privately-held companies [Abstract]
Equity Securities without Readily Determinable Fair Value	The following table summarizes the activity related to our investments in privately-held companies held as of March 31, 2020 and December 31, 2019 (in thousands): March 31, 2020 December 31, 2019 Cost of investment $ 3,000 $ 3,000 Cumulative impairment — — Cumulative upward adjustment 1,150 1,150 Carrying amount of investment $ 4,150 $ 4,150

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Shares Repurchased	A summary of the stock repurchase activity under the Repurchase Program for the three months ended March 31, 2020 is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2020 Aggregate purchase price $ 227,895 Shares repurchased 1,209 Average price paid per share $ 188.61
Schedule of Option Activity	The following table summarizes the option activity under our stock plans and related information (in thousands, except years and per share amounts): Options Outstanding Number of Outstanding Options Weighted- Weighted- Aggregate Balance—December 31, 2019 4,564 $ 42.50 4.4 $ 740,387 Options granted — — Options exercised (309 ) 24.72 Options canceled (16 ) 199.60 Balance—March 31, 2020 4,239 $ 43.23 4.2 $ 681,292 Vested and exercisable—March 31, 2020 2,626 $ 29.64 3.7 $ 454,105
Schedule of Restricted Stock Units Activity	A summary of the RSU activity under the 2014 Plan and related information are presented below (in thousands, except years and per share amounts): Number of Weighted- Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Unvested balance—December 31, 2019 1,070 $ 190.35 1.5 $ 217,701 RSUs granted 350 207.22 RSUs vested (122 ) 146.47 RSUs forfeited/canceled (42 ) 229.04 Unvested balance—March 31, 2020 1,256 $ 198.00 1.6 $ 254,386
Schedule of Shares Available for Grant	The following table presents the stock activity and the total number of shares available for grant under the 2014 Plan as of March 31, 2020 (in thousands): Number of Shares Balance—December 31, 2019 15,146 Authorized 2,292 Options granted — RSUs granted (350 ) Options canceled 16 RSUs forfeited 42 Shares traded for taxes 7 Balance—March 31, 2020 17,153
Schedule of Stock-Based Compensation Expense	Total stock-based compensation expense related to options, restricted stock units, restricted stock, and employee stock purchase rights granted were allocated as follows (in thousands): Three Months Ended March 31, 2020 2019 Cost of revenue $ 1,327 $ 1,098 Research and development 15,928 13,131 Sales and marketing 6,396 6,534 General and administrative 3,905 3,528 Total stock-based compensation $ 27,556 $ 24,291
Schedule of Unrecognized Stock-Based Compensation Expense	As of March 31, 2020 , unrecognized stock-based compensation expenses by award type and their expected weighted-average recognition periods are summarized in the following table (in thousands, except years). March 31, 2020 Stock Option RSU ESPP Restricted Stock Unrecognized stock-based compensation expense $ 38,896 $ 222,371 $ 8,560 $ 3,569 Weighted-average amortization period 3.0 years 3.2 years 1.0 years 2.5 years

Net Income Per Share Availabl_2

Net Income Per Share Available to Common Stock (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income Per Share Available to Common Stock	The following table sets forth the computation of our basic and diluted net income per share available to common stock (in thousands, except per share amounts): Three Months Ended March 31, 2020 2019 Numerator: Basic: Net income $ 138,431 $ 201,029 Less: undistributed earnings allocated to participating securities — (118 ) Net income available to common stockholders, basic $ 138,431 $ 200,911 Diluted: Net income attributable to common stockholders, basic $ 138,431 $ 200,911 Add: undistributed earnings allocated to participating securities — 7 Net income attributable to common stockholders, diluted $ 138,431 $ 200,918 Denominator: Basic: Weighted-average shares used in computing net income per share available to common stockholders, basic 76,264 75,920 Diluted: Weighted-average shares used in computing net income per share available to common stockholders, basic 76,264 75,920 Add weighted-average effect of dilutive securities: Stock options and RSUs 3,675 5,279 Employee stock purchase plan — 2 Weighted-average shares used in computing net income per share available to common stockholders, diluted 79,939 81,201 Net income per share attributable to common stockholders: Basic $ 1.82 $ 2.65 Diluted $ 1.73 $ 2.47
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share available to common stockholders for the periods presented because including them would have been anti-dilutive (in thousands): Three Months Ended March 31, 2020 2019 Stock options and RSUs to purchase common stock 601 162 Employee stock purchase plan — 105 Total 601 267

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense (Benefit)	Three Months Ended March 31, 2020 2019 (in thousands, except percentages) Income before income taxes $ 161,819 $ 206,675 Provision for (benefit from) income taxes 23,388 5,646 Effective tax rate 14.5 % 2.7 %

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Schedule of Revenue and Long Lived Assets, by Location	The following table represents revenue based on the customer’s location, as determined by the customer’s shipping address (in thousands): Three Months Ended March 31, 2020 2019 Americas $ 400,660 $ 439,638 Europe, Middle East and Africa 72,624 111,269 Asia-Pacific 49,745 44,517 Total revenue $ 523,029 $ 595,424 Long-lived assets, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, net by location are summarized as follows (in thousands): March 31, 2020 December 31, 2019 United States $ 30,489 $ 32,565 International 7,317 6,708 Total $ 37,806 $ 39,273

Business Combinations (Details)

Business Combinations (Details) - USD ($) $ in Thousands	Feb. 05, 2020	Mar. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill		$ 84,781	$ 54,855
Big Switch
Business Acquisition [Line Items]
Cash paid to acquire business	$ 73,300
Post-combination expense	5,300
Acquisition related costs	6,600
Total fair value of consideration transferred	68,000
Goodwill	$ 29,926

Business Combinations - Schedul

Business Combinations - Schedule of Purchase Price Allocation (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Feb. 05, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill	$ 84,781		$ 54,855
Big Switch
Business Acquisition [Line Items]
Tangible assets		$ 13,376
Liabilities		(24,346)
Intangible assets		49,040
Goodwill		29,926
Net assets acquired		$ 67,996

Business Combinations - Sched_2

Business Combinations - Schedule of Intangible Assets Acquired (Details) - Big Switch $ in Thousands	Feb. 05, 2020USD ($)
Business Acquisition [Line Items]
Intangible assets acquired	$ 49,040
Developed technology
Business Acquisition [Line Items]
Intangible assets acquired	$ 31,040
Intangible assets, weighted average useful life	5 years
Customer relationships
Business Acquisition [Line Items]
Intangible assets acquired	$ 13,150
Intangible assets, weighted average useful life	7 years
Non-compete agreements
Business Acquisition [Line Items]
Intangible assets acquired	$ 4,060
Intangible assets, weighted average useful life	2 years
Trade name
Business Acquisition [Line Items]
Intangible assets acquired	$ 790
Intangible assets, weighted average useful life	1 year

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value of Financial Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Amortized Cost		$ 566,581
Cash Equivalents, Fair Value		566,581
Marketable Securities, Amortized Cost	$ 1,868,987	1,609,833
Marketable Securities, Unrealized Gains	9,806	3,383
Marketable Securities, Unrealized Losses	(3,133)	(134)
Marketable Securities, Fair Value	1,875,660	1,613,082
Total Financial Assets, Amortized Cost	2,224,763	2,180,643
Total Financial Assets, Fair Value	2,231,436	2,183,892
Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value		562,580
Marketable Securities, Fair Value	583,602	519,278
Total Financial Assets, Fair Value	939,378	1,086,087
Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value		4,001
Marketable Securities, Fair Value	1,292,058	1,093,804
Total Financial Assets, Fair Value	1,292,058	1,097,805
Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value		0
Marketable Securities, Fair Value	0	0
Total Financial Assets, Fair Value	0	0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Amortized Cost	351,469	562,580
Cash Equivalents, Fair Value	351,469	562,580
Money market funds | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	351,469	562,580
Money market funds | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	0	0
Money market funds | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	83,261	66,717
Marketable Securities, Unrealized Gains	0	0
Marketable Securities, Unrealized Losses	0	0
Marketable Securities, Fair Value	83,261	66,717
Commercial paper | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Commercial paper | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	83,261	66,717
Commercial paper | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Certificate of deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Amortized Cost		4,001
Cash Equivalents, Fair Value		4,001
Marketable Securities, Amortized Cost	3,000	3,000
Marketable Securities, Unrealized Gains		0
Marketable Securities, Unrealized Losses		0
Marketable Securities, Fair Value	3,000	3,000
Certificate of deposits | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value		0
Certificate of deposits | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value		4,001
Marketable Securities, Fair Value	3,000	3,000
Certificate of deposits | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value		0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	923,194	787,741
Marketable Securities, Unrealized Gains	1,753	2,392
Marketable Securities, Unrealized Losses	(3,116)	(73)
Marketable Securities, Fair Value	921,831	790,060
Corporate bonds | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Corporate bonds | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	921,831	790,060
Corporate bonds | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
U.S. government notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	576,488	518,884
Marketable Securities, Unrealized Gains	7,114	414
Marketable Securities, Unrealized Losses	0	(20)
Marketable Securities, Fair Value	583,602	519,278
U.S. government notes | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	583,602	519,278
U.S. government notes | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
U.S. government notes | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	283,044	233,491
Marketable Securities, Unrealized Gains	939	577
Marketable Securities, Unrealized Losses	(17)	(41)
Marketable Securities, Fair Value	283,966	234,027
Agency securities | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Agency securities | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	283,966	234,027
Agency securities | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Money market funds - restricted
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Amortized Cost	4,307	4,229
Other Assets, Fair Value	4,307	4,229
Money market funds - restricted | Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value	4,307	4,229
Money market funds - restricted | Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value	0	0
Money market funds - restricted | Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value	$ 0	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Realized losses on other-than-temporary securities	$ 0	$ 0
Marketable securities, maximum maturity period	24 months
Marketable securities considered to be other-than-temporarily impaired	$ 0
Marketable securities, weighted average remaining duration	10 months 24 days

Fair Value Measurements - Inves

Fair Value Measurements - Investment by Maturity Dates (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Due in 1 year or less	$ 1,173,934
Due in 1 year through 2 years	701,726
Total marketable securities	$ 1,875,660	$ 1,613,082

Financial Statements Details -

Financial Statements Details - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2020		Dec. 31, 2019	Mar. 31, 2019		Dec. 31, 2018
Balance Sheet Components [Abstract]
Cash and cash equivalents	$ 761,333		$ 1,111,286	$ 809,491
Restricted cash included in other assets	4,307			4,218
Total cash, cash equivalents and restricted cash	765,640	[1]	$ 1,115,515	813,709	[1]	$ 654,164
Restricted cash, pledged as collateral	$ 4,000			$ 4,000
[1]	See Note 4 of the accompanying notes for a reconciliation of the ending balance of cash, cash equivalents and restricted cash as shown in this condensed consolidated statements of cash flows.

Financial Statements Details _2

Financial Statements Details - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Accounts receivable	$ 358,220	$ 398,147
Allowance for doubtful accounts	(424)	(638)
Product sales rebate and returns reserve	(5,637)	(5,522)
Accounts receivable, net	$ 352,159	$ 391,987

Financial Statements Details _3

Financial Statements Details - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Raw materials	$ 130,357	$ 96,712
Finished goods	131,441	147,113
Total inventories	$ 261,798	$ 243,825

Financial Statements Details _4

Financial Statements Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Prepaid income taxes	$ 8,706	$ 20,153
Inventory deposit	12,802	13,716
Other current assets	50,373	64,464
Other prepaid expenses and deposits	14,068	13,123
Total prepaid expenses and other current assets	$ 85,949	$ 111,456

Financial Statements Details _5

Financial Statements Details - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 137,790		$ 136,649
Less: accumulated depreciation	(99,984)		(97,376)
Property and equipment, net	37,806		39,273
Depreciation	5,200	$ 4,700
Equipment and machinery
Property, Plant and Equipment [Line Items]
Property and equipment, gross	63,461		64,748
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	39,061		36,627
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	31,150		31,235
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,713		3,774
Construction-in-process
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 405		$ 265

Financial Statements Details _6

Financial Statements Details - Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Balance Sheet Components [Abstract]
Accrued payroll related costs	$ 43,842	$ 80,133
Accrued manufacturing costs	30,998	31,920
Accrued product development costs	7,162	11,410
Accrued professional fees	5,160	6,335
Accrued warranty costs	6,341	6,742	$ 5,126	$ 5,362
Accrued taxes	1,843	1,716
Other	5,097	1,993
Total accrued liabilities	$ 100,443	$ 140,249

Financial Statements Details _7

Financial Statements Details - Warranty Accrual (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Warranty [Roll Forward]
Warranty accrual, beginning of period	$ 6,742	$ 5,362
Liabilities accrued for warranties issued during the period	1,070	932
Warranty costs incurred during the period	(1,471)	(1,168)
Warranty accrual, end of period	$ 6,341	$ 5,126

Financial Statements Details _8

Financial Statements Details - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Change in Contract with Customer, Asset [Roll Forward]
Contract assets, beginning balance	$ 25,565	$ 6,341
Contract assets, ending balance	9,636	5,699
Change in Contract with Customer, Liability [Roll Forward]
Contract liabilities, beginning balance	61,050	32,595
Less: Revenue recognized from beginning balance	(4,847)	(2,826)
Less: Beginning balance reclassified to deferred revenue	(2,433)	(1,259)
Add: Contract liabilities recognized	10,555	8,804
Contract liabilities, ending balance	64,325	$ 37,314
Other Current Liabilities
Change in Contract with Customer, Liability [Roll Forward]
Contract liabilities, beginning balance	23,400
Contract liabilities, ending balance	$ 26,300

Financial Statements Details _9

Financial Statements Details - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Movement in Deferred Revenue [Roll Forward]
Deferred revenue, beginning balance	$ 575,288	$ 587,227
Less: Revenue recognized from beginning balance	(100,377)	(190,597)
Add: Deferral of revenue in current period, excluding amounts recognized during the period	121,864	139,841
Deferred revenue, ending balance	$ 596,775	$ 536,471

Financial Statements Details_10

Financial Statements Details - Performance Obligations (Details) $ in Millions	Mar. 31, 2020USD ($)
Balance Sheet Components [Abstract]
Revenue, remaining performance obligation, amount	$ 716.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	80.00%
Performance obligation, period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	20.00%
Performance obligation, period	5 years

Financial Statements Details_11

Financial Statements Details - Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Balance Sheet Components [Abstract]
Interest income	$ 11,662	$ 11,898
Gain (loss) on investment in privately-held companies	0	1,150
Other income (expense), net	495	(715)
Total other income (expense), net	$ 12,157	$ 12,333

Investments (Details)

Investments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Equity Securities without Readily Determinable Fair Value
Cost of investment	$ 3,000,000		$ 3,000,000
Cumulative impairment	0		0
Cumulative upward adjustment	1,150,000		1,150,000
Carrying amount of investment	4,150,000		$ 4,150,000
Equity Securities, Gain (Loss)
Realized gain (loss)	0
Unrealized gain (loss)	$ 0	$ 1,200,000

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Long-term Purchase Commitment [Line Items]
Non-cancellable purchase commitments	$ 352.4
Deposits to purchase inventory	15.6	$ 16.5
Contract with manufacturers and suppliers
Long-term Purchase Commitment [Line Items]
Non-cancellable purchase commitments	$ 337.6

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($)	Jan. 01, 2020	Mar. 31, 2020	Apr. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount for stock repurchases			$ 1,000,000,000
Remaining authorized repurchase amount		$ 506,000,000
Number of additional shares authorized for issuance (in shares)		2,292,000
2014 Equity Incentive Plan | Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized for issuance (in shares)	2,291,660
Percent of shares outstanding to increase number of shares available for grant and issuance	3.00%
Maximum increase of number of shares available for issuance (in shares)	12,500,000
Common stock reserved for issuance (in shares)		22,600,000
2014 Employee Stock Purchase Plan | ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized for issuance (in shares)	763,886
Percent of shares outstanding to increase number of shares available for grant and issuance	1.00%
Maximum increase of number of shares available for issuance (in shares)	2,500,000
Shares issued during period (in shares)		51,292
Weighted-average purchase price (in dollars per share)		$ 184.19
Common stock reserved for issuance (in shares)		3,905,368

Stockholders' Equity - Stock Re

Stockholders' Equity - Stock Repurchase Program (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate purchase price	$ 227,895
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate purchase price	$ 227,895
Shares repurchased (in shares) | shares	1,209
Average price paid per share (in dollars per share) | $ / shares	$ 188.61

Stockholders' Equity - Option A

Stockholders' Equity - Option Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Number of Shares Underlying Outstanding Options
Outstanding, beginning balance (in shares)	4,564
Options granted (in shares)	0
Options exercised (in shares)	(309)
Options canceled (in shares)	(16)
Outstanding, ending balance (in shares)	4,239	4,564
Vested and exercisable (in shares)	2,626
Weighted- Average Exercise Price per Share
Outstanding, beginning balance (in dollars per share)	$ 42.50
Options granted (in dollars per share)	0
Options exercised (in dollars per share)	24.72
Options canceled (in dollars per share)	199.60
Outstanding, ending balance (in dollars per share)	43.23	$ 42.50
Vested and exercisable (in dollars per share)	$ 29.64
Weighted- Average Remaining Contractual Term (Years) and Aggregate Intrinsic Value of Stock Options
Weighted-average remaining contractual term of stock options outstanding	4 years 2 months 12 days	4 years 4 months 24 days
Weighted-average remaining contractual term of stock options vested and exercisable	3 years 8 months 12 days
Aggregate intrinsic value of stock options outstanding	$ 681,292	$ 740,387
Aggregate intrinsic value of stock options outstanding, vested and exercisable	$ 454,105

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Unit (RSU) Activities (Details) - RSU - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Number of Shares
Unvested beginning balance (in shares)	1,070
RSUs granted (in shares)	350
RSUs vested (in shares)	(122)
RSUs forfeited/canceled (in shares)	(42)
Unvested ending balance (in shares)	1,256	1,070
Weighted- Average Grant Date Fair Value Per Share
Unvested beginning balance (in dollars per share)	$ 190.35
RSUs granted (in dollars per share)	207.22
RSUs vested (in dollars per share)	146.47
RSUs forfeited/canceled (in dollars per share)	229.04
Unvested ending balance (in dollars per share)	$ 198	$ 190.35
Restricted Stock Unit Activities, Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value
Unvested, weighted average remaining contractual term (in years)	1 year 7 months 6 days	1 year 6 months
Unvested, aggregate intrinsic value	$ 254,386	$ 217,701

Stockholders' Equity - Shares A

Stockholders' Equity - Shares Available for Grant (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2020shares
Number of Shares
Beginning balance	15,146
Authorized	2,292
Options granted	0
Options canceled	16
Shares traded for taxes	7
Ending balance	17,153
RSU
Number of Shares
RSUs granted	(350)
RSUs forfeited	42

Stockholders' Equity - Stock-Ba

Stockholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 27,556	$ 24,291
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 38,896
Weighted-average amortization period	3 years
RSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 222,371
Weighted-average amortization period	3 years 2 months 12 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 8,560
Weighted-average amortization period	1 year
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 3,569
Weighted-average amortization period	2 years 6 months
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 1,327	1,098
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	15,928	13,131
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	6,396	6,534
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 3,905	$ 3,528

Net Income Per Share Availabl_3

Net Income Per Share Available to Common Stock - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator:
Net income	$ 138,431	$ 201,029
Less: undistributed earnings allocated to participating securities	0	(118)
Net income attributable to common stockholders, basic	138,431	200,911
Net income attributable to common stockholders, basic	138,431	200,911
Add: undistributed earnings allocated to participating securities	0	7
Net income attributable to common stockholders, diluted	$ 138,431	$ 200,918
Denominator:
Weighted-average shares used in computing net income per share available to common stockholders, basic (in shares)	76,264	75,920
Add weighted-average effect of dilutive securities:
Stock options and RSUs (in shares)	3,675	5,279
Employee stock purchase plan (in shares)	0	2
Weighted-average shares used in computing net income per share available to common stockholders, diluted (in shares)	79,939	81,201
Net income per share attributable to common stockholders:
Basic (in dollars per share)	$ 1.82	$ 2.65
Diluted (in dollars per share)	$ 1.73	$ 2.47

Net Income Per Share Availabl_4

Net Income Per Share Available to Common Stock - Antidilutive Securities Excluded from Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	601	267
Stock options and RSUs to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	601	162
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	0	105

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income before income taxes	$ 161,819	$ 206,675
Provision for (benefit from) income taxes	$ 23,388	$ 5,646
Effective tax rate	14.50%	2.70%

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)segment	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments | segment	1
Revenue	$ 523,029	$ 595,424
Long-lived assets	37,806		$ 39,273
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	400,660	439,638
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	72,624	111,269
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	49,745	$ 44,517
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	30,489		32,565
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 7,317		$ 6,708