Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 30, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'CTXS | ' |
Entity Registrant Name | 'CITRIX SYSTEMS INC | ' |
Entity Central Index Key | '0000877890 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 160,970,724 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $242,787 | $280,740 |
Short-term investments, available-for-sale | 504,436 | 453,976 |
Accounts receivable, net of allowances of $4,954 and $5,354 at September 30, 2014 and December 31, 2013, respectively | 465,558 | 654,821 |
Inventories, net | 16,483 | 14,107 |
Prepaid expenses and other current assets | 164,877 | 110,981 |
Current portion of deferred tax assets, net | 50,569 | 48,470 |
Total current assets | 1,444,710 | 1,563,095 |
Long-term investments, available-for-sale | 1,073,232 | 855,700 |
Property and equipment, net | 353,720 | 338,996 |
Goodwill | 1,782,645 | 1,768,949 |
Other intangible assets, net | 414,751 | 509,595 |
Long-term portion of deferred tax assets, net | 94,021 | 115,418 |
Other assets | 68,398 | 60,496 |
Total assets | 5,231,477 | 5,212,249 |
Current liabilities: | ' | ' |
Accounts payable | 85,802 | 78,452 |
Accrued expenses and other current liabilities | 286,689 | 257,606 |
Income taxes payable | 2,497 | 29,322 |
Current portion of deferred revenues | 1,087,459 | 1,098,681 |
Total current liabilities | 1,462,447 | 1,464,061 |
Long-term portion of deferred revenues | 316,097 | 313,059 |
Convertible notes | 1,285,092 | 0 |
Other liabilities | 71,503 | 115,322 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock at $.01 par value: 5,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock at $.001 par value: 1,000,000 shares authorized; 294,141 and 291,078 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 294 | 291 |
Additional paid-in capital | 3,968,544 | 3,974,297 |
Retained earnings | 3,060,036 | 2,903,541 |
Accumulated other comprehensive (loss) income | -20,499 | 4,951 |
Stockholders' equity before treasury stock | 7,008,375 | 6,883,080 |
Less - common stock in treasury, at cost (130,566 and 107,789 shares at September 30, 2014 and December 31, 2013, respectively) | -4,912,037 | -3,563,273 |
Total stockholders' equity | 2,096,338 | 3,319,807 |
Total liabilities and equity | $5,231,477 | $5,212,249 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance | $4,954 | $5,354 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 294,141,000 | 291,078,000 |
Common stock, shares outstanding | 294,141,000 | 291,078,000 |
Common stock in treasury, shares | 130,566,000 | 107,789,000 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Revenues: | ' | ' | ' | ' | ||||
Product and licenses | $193,153 | $201,443 | $632,369 | $621,741 | ||||
Software as a service | 165,253 | 148,179 | 483,164 | 429,603 | ||||
License updates and maintenance | 358,266 | 329,384 | 1,049,065 | 968,017 | ||||
Professional services | 42,322 | 33,725 | 126,775 | 96,653 | ||||
Total net revenues | 758,994 | 712,731 | 2,291,373 | 2,116,014 | ||||
Cost of net revenues: | ' | ' | ' | ' | ||||
Cost of product and license revenues | 24,045 | 26,971 | 88,144 | 84,465 | ||||
Cost of services and maintenance revenues | 87,981 | 72,632 | 254,763 | 208,241 | ||||
Amortization of product related intangible assets | 23,959 | 24,330 | 102,660 | 73,381 | ||||
Total cost of net revenues | 135,985 | 123,933 | 445,567 | 366,087 | ||||
Gross margin | 623,009 | 588,798 | 1,845,806 | 1,749,927 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Research and development | 137,877 | 127,049 | 411,870 | 389,840 | ||||
Sales, marketing and services | 318,252 | 300,416 | 956,287 | 915,194 | ||||
General and administrative | 95,203 | 63,580 | 242,606 | 193,708 | ||||
Amortization of other intangible assets | 9,956 | 10,386 | 32,855 | 31,322 | ||||
Restructuring | 3,124 | [1] | 0 | [1] | 17,285 | [1] | 0 | [1] |
Total operating expenses | 564,412 | 501,431 | 1,660,903 | 1,530,064 | ||||
Income from operations | 58,597 | 87,367 | 184,903 | 219,863 | ||||
Interest income | 2,411 | 2,079 | 6,705 | 6,062 | ||||
Interest expense | 10,551 | 41 | 17,601 | 102 | ||||
Other (expense) income, net | -2,235 | 1,400 | -6,002 | 49 | ||||
Income before income taxes | 48,222 | 90,805 | 168,005 | 225,872 | ||||
Income tax expense | 690 | 14,075 | 11,510 | 24,993 | ||||
Net income | $47,532 | $76,730 | $156,495 | $200,879 | ||||
Earnings per share: | ' | ' | ' | ' | ||||
Basic (in dollars per share) | $0.29 | $0.41 | $0.91 | $1.07 | ||||
Diluted (in dollars per share) | $0.29 | $0.41 | $0.90 | $1.06 | ||||
Weighted average shares outstanding: | ' | ' | ' | ' | ||||
Basic (in shares) | 164,229 | 187,459 | 172,622 | 187,120 | ||||
Diluted (in shares) | 165,713 | 188,980 | 174,023 | 188,830 | ||||
[1] | Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $47,532 | $76,730 | $156,495 | $200,879 |
Other comprehensive (loss) income: | ' | ' | ' | ' |
Change in foreign currency translation adjustment | -12,890 | 6,928 | -15,617 | 4,099 |
Available for sale securities: | ' | ' | ' | ' |
Change in net unrealized gains | -911 | 1,623 | -182 | -1,470 |
Less: reclassification adjustment for net (gains) losses included in net income | -96 | 44 | -961 | 13 |
Net change (net of tax effect) | -1,007 | 1,667 | -1,143 | -1,457 |
Loss on pension liability | -45 | 0 | -45 | -334 |
Cash flow hedges: | ' | ' | ' | ' |
Change in unrealized gains | -6,809 | 3,896 | -4,197 | -1,399 |
Less: reclassification adjustment for net (gains) losses included in net income | -1,500 | 1,262 | -4,448 | 3,574 |
Net change (net of tax effect) | -8,309 | 5,158 | -8,645 | 2,175 |
Other comprehensive (loss) income | -22,251 | 13,753 | -25,450 | 4,483 |
Comprehensive income | $25,281 | $90,483 | $131,045 | $205,362 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | ||
Statement of Cash Flows [Abstract] | ' | ' | ||
Net income | $156,495 | $200,879 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ||
Amortization of intangible assets | 135,515 | [1] | 104,703 | [1] |
Depreciation and amortization of property and equipment | 101,301 | 93,939 | ||
Amortization of debt discount and transaction costs | 14,504 | 0 | ||
Stock-based compensation expense | 128,440 | 137,306 | ||
Loss (gain) on investments | 2,688 | -2,298 | ||
Provision for doubtful accounts | 2,087 | 1,267 | ||
Provision for product returns | 2,603 | 3,471 | ||
Provision for inventory | 1,966 | 1,529 | ||
Excess tax benefit from stock-based compensation | -5,122 | -16,285 | ||
Deferred income tax benefit | -25,114 | -43,203 | ||
Effects of exchange rate changes on monetary assets and liabilities denominated in foreign currencies | 825 | 3,181 | ||
Other non-cash items | 378 | 374 | ||
Total adjustments to reconcile net income to net cash provided by operating activities | 360,071 | 283,984 | ||
Changes in operating assets and liabilities, net of the effects of acquisitions: | ' | ' | ||
Accounts receivable | 182,542 | 182,039 | ||
Inventories | -4,342 | -3,088 | ||
Prepaid expenses and other current assets | -5,763 | -7,510 | ||
Other assets | 1,651 | 4,841 | ||
Income taxes, net | -87,180 | -29,688 | ||
Accounts payable | 7,526 | -4,949 | ||
Accrued expenses and other current liabilities | 53,846 | 10,783 | ||
Deferred revenues | -8,183 | 59,891 | ||
Other liabilities | -1,113 | 1,467 | ||
Total changes in operating assets and liabilities, net of the effects of acquisitions | 138,984 | 213,786 | ||
Net cash provided by operating activities | 655,550 | 698,649 | ||
Investing Activities | ' | ' | ||
Purchases of available-for-sale investments | -1,891,045 | -1,427,698 | ||
Proceeds from sales of available-for-sale investments | 1,342,500 | 486,822 | ||
Proceeds from maturities of available-for-sale investments | 282,711 | 409,556 | ||
Purchases of property and equipment | -115,442 | -126,610 | ||
Proceeds related to cost method investments | 3,907 | 2,811 | ||
Purchases of cost method investments | -2,823 | -5,095 | ||
Cash paid for acquisitions, net of cash acquired | -43,342 | -329,343 | ||
Cash paid for licensing agreements and product related intangible assets | -12,712 | -7,202 | ||
Net cash used in investing activities | -436,246 | -996,759 | ||
Financing Activities | ' | ' | ||
Proceeds from issuance of common stock under stock-based compensation plans | 38,674 | 68,570 | ||
Proceeds from issuance of convertible notes, net of issuance costs | 1,415,717 | 0 | ||
Purchase of convertible note hedges | -184,288 | 0 | ||
Proceeds from issuance of warrants | 101,775 | 0 | ||
Repayment of acquired debt | -3,766 | 0 | ||
Excess tax benefit from stock-based compensation | 5,122 | 16,285 | ||
Stock repurchases, net | -1,600,986 | -156,334 | ||
Cash paid for tax withholding on vested stock awards | -27,777 | -27,708 | ||
Other | 0 | 912 | ||
Net cash used in financing activities | -255,529 | -98,275 | ||
Effect of exchange rate changes on cash and cash equivalents | -1,728 | -751 | ||
Change in cash and cash equivalents | -37,953 | -397,136 | ||
Cash and cash equivalents at beginning of period | 280,740 | 643,609 | ||
Cash and cash equivalents at end of period | $242,787 | $246,473 | ||
[1] | Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments. |
Basis_Of_Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
The accompanying unaudited condensed consolidated financial statements of Citrix Systems, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. All adjustments, which, in the opinion of management, are considered necessary for a fair presentation of the results of operations for the periods shown, are of a normal recurring nature and have been reflected in the condensed consolidated financial statements and accompanying notes. The results of operations for the periods presented are not necessarily indicative of the results expected for the full year or for any future period partially because of the seasonality of the Company’s business. Historically, the Company’s revenue for the fourth quarter of any year is typically higher than the revenue for the first quarter of the subsequent year. The information included in these condensed consolidated financial statements should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in this report and the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. The Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2013 reflects an adjustment that was previously reported of approximately $17.3 million made to net cash provided by operating activities and net cash used in financing activities. | |
The condensed consolidated financial statements of the Company include the accounts of its wholly-owned subsidiaries in the Americas, Europe, the Middle East and Africa (“EMEA”), and Asia-Pacific. All significant transactions and balances between the Company and its subsidiaries have been eliminated in consolidation. | |
The Company’s revenues are derived from its Enterprise and Service Provider products, which primarily include its Mobile and Desktop products, Networking and Cloud products and related license updates and maintenance and professional services and from its Software as a Service ("SaaS") products, which primarily include Communications and Documents Cloud, Remote Access and Remote IT Support products. The Enterprise and Service Provider and SaaS divisions constitute the Company's two reportable segments. See Note 9 for more information on the Company's segments. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
SIGNIFICANT ACCOUNTING POLICIES | ' |
SIGNIFICANT ACCOUNTING POLICIES | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates made by management include the provision for doubtful accounts receivable, the provision to reduce obsolete or excess inventory to market, the provision for estimated returns, as well as sales allowances, the assumptions used in the valuation of stock-based awards, the assumptions used in the discounted cash flows to mark certain of its investments to market, the valuation of the Company’s goodwill, net realizable value of product related and other intangible assets, the fair value of convertible senior notes, the provision for income taxes and the amortization and depreciation periods for intangible and long-lived assets. While the Company believes that such estimates are fair when considered in conjunction with the condensed consolidated financial position and results of operations taken as a whole, the actual amounts of such items, when known, will vary from these estimates. | |
Investments | |
Short-term and long-term investments as of September 30, 2014 and December 31, 2013 primarily consist of agency securities, corporate securities, municipal securities and government securities. Investments classified as available-for-sale are stated at fair value with unrealized gains and losses, net of taxes, reported in Accumulated other comprehensive (loss) income. The Company classifies its available-for-sale investments as current and non-current based on their actual remaining time to maturity. The Company does not recognize changes in the fair value of its available-for-sale investments in income unless a decline in value is considered other-than-temporary in accordance with the authoritative guidance. | |
The Company’s investment policy is designed to limit exposure to any one issuer depending on credit quality. The Company uses information provided by third parties to adjust the carrying value of certain of its investments to fair value at the end of each period. Fair values are based on a variety of inputs and may include interest rates, known historical trades, yield curve information, benchmark data, prepayment speeds, credit quality and broker/dealer quotes. | |
Revenue Recognition | |
Net revenues include the following categories: Product and licenses, SaaS, License updates and maintenance and Professional services. Product and licenses revenues primarily represent fees related to the licensing of the Company’s software and hardware appliance products. These revenues are reflected net of sales allowances, cooperative advertising agreements, partner incentive programs and provisions for returns. Shipping charges billed to customers are included in Product and license revenue and the related shipping costs are included in Cost of product and license revenue. SaaS revenues consist primarily of fees related to online service agreements, which are recognized ratably over the contract term, which is typically 12 months. In addition, SaaS revenues may also include set-up fees, which are recognized ratably over the contract term or the expected customer life, whichever is longer. License updates and maintenance revenues consist of fees related to the Subscription Advantage program and maintenance fees, which include technical support and hardware and software maintenance. The Company licenses many of its virtualization products bundled with a one-year contract for its Subscription Advantage program. Subscription Advantage is a renewable program that provides subscribers with immediate access to software upgrades, enhancements and maintenance releases when and if they become available during the term of the contract. Subscription Advantage and maintenance fees are recognized ratably over the term of the contract, which is typically 12 to 24 months. The Company capitalizes certain third-party commissions related to Subscription Advantage renewals. The capitalized commissions are amortized to Sales, marketing and services expense at the time the related deferred revenue is recognized as revenue. Hardware and software maintenance and support contracts are typically sold separately. Hardware maintenance includes technical support, the latest software upgrades and replacement of malfunctioning appliances. Dedicated account management is available as an add-on to the program for a higher level of service. Software maintenance includes unlimited support with product version upgrades. Professional services revenues are comprised of fees from consulting services related to the implementation of the Company’s products and fees from product training and certification, which are recognized as the services are provided. | |
The Company recognizes revenue when it is earned and when all of the following criteria are met: persuasive evidence of the arrangement exists; delivery has occurred or the service has been provided and the Company has no remaining obligations; the fee is fixed or determinable; and collectability is probable. | |
The majority of the Company’s product and license revenue consists of revenue from the sale of stand-alone software products. Stand-alone software sales generally include a perpetual license to the Company’s software and is subject to the industry specific software revenue recognition guidance. In accordance with this guidance, the Company allocates revenue to license updates related to its stand-alone software and any other undelivered elements of the arrangement based on vendor specific objective evidence (“VSOE”) of fair value of each element and such amounts are deferred until the applicable delivery criteria and other revenue recognition criteria described above have been met. The balance of the revenues, net of any discounts inherent in the arrangement, is recognized at the outset of the arrangement using the residual method as the product licenses are delivered. If management cannot objectively determine the fair value of each undelivered element based on VSOE of fair value, revenue recognition is deferred until all elements are delivered, all services have been performed, or until fair value can be objectively determined. | |
For hardware appliance transactions, the arrangement consideration is allocated to stand-alone software deliverables as a group and the non-software deliverables based on the relative selling prices using the selling price hierarchy in the amended revenue recognition guidance. The selling price hierarchy for a deliverable is based on its VSOE if available, third-party evidence of selling price ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. The Company then recognizes revenue on each deliverable in accordance with its policies for product and service revenue recognition. VSOE of selling price is based on the price charged when the element is sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices fall within a reasonable range based on historical discounting trends for specific products and services. TPE of selling price is established by evaluating competitor products or services in stand-alone sales to similarly situated customers. However, as the Company’s products contain a significant element of proprietary technology and its solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as the Company is unable to reliably determine what competitors products’ selling prices are on a stand-alone basis, the Company is not typically able to determine TPE. The estimate of selling price is established considering multiple factors including, but not limited to, pricing practices in different geographies and through different sales channels and competitor pricing strategies. | |
For the Company’s non-software deliverables, it allocates the arrangement consideration based on the relative selling price of the deliverables. For the Company’s hardware appliances, it uses ESP as its selling price. For the Company’s support and services, it generally uses VSOE as its selling price. When the Company is unable to establish selling price using VSOE for its support and services, the Company uses ESP in its allocation of arrangement consideration. | |
The Company’s SaaS products are considered service arrangements per the authoritative guidance; accordingly, the Company follows the provisions of Securities and Exchange Commission Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition, when accounting for these service arrangements. Generally, the Company’s SaaS products are sold separately and not bundled with the Company's Enterprise and Service Provider products and services. | |
In the normal course of business, the Company is not obligated to accept product returns from its distributors under any conditions, unless the product item is defective in manufacture. The Company establishes provisions for estimated returns, as well as other sales allowances, concurrently with the recognition of revenue. The provisions are established based upon consideration of a variety of factors, including, among other things, recent and historical return rates for both specific products and distributors and the impact of any new product releases and projected economic conditions. Product returns are provided for in the condensed consolidated financial statements and have historically been within management’s expectations. Allowances for estimated product returns amounted to approximately $1.2 million and $2.1 million at September 30, 2014 and December 31, 2013, respectively. The Company also records estimated reductions to revenue for customer programs and incentive offerings, including volume-based incentives. The Company could take actions to increase its customer incentive offerings, which could result in an incremental reduction to revenue at the time the incentive is offered. | |
Foreign Currency | |
The functional currency for all of the Company’s wholly-owned foreign subsidiaries in its Enterprise and Service Provider segment is the U.S. dollar. Monetary assets and liabilities of such subsidiaries are remeasured into U.S. dollars at exchange rates in effect at the balance sheet date, and revenues and expenses are remeasured at average rates prevailing during the year. The functional currency of the Company’s wholly-owned foreign subsidiaries of its SaaS segment is the currency of the country in which each subsidiary is located. The Company translates assets and liabilities of these foreign subsidiaries at exchange rates in effect at the balance sheet date. The Company includes accumulated net translation adjustments in equity as a component of Accumulated other comprehensive (loss) income. Foreign currency transaction gains and losses are the result of exchange rate changes on transactions denominated in currencies other than the functional currency, including U.S. dollars. The remeasurement of those foreign currency transactions is included in determining net income or loss for the period of exchange. See Note 9 for information on the Company's Enterprise and Service Provider and SaaS segments. | |
Accounting for Stock-Based Compensation Plans | |
The Company has various stock-based compensation plans for its employees and outside directors and accounts for stock-based compensation arrangements in accordance with the authoritative guidance, which requires the Company to measure and record compensation expense in its condensed consolidated financial statements using a fair value method. See Note 7 for further information regarding the Company’s stock-based compensation plans. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||
Basic earnings per share is calculated by dividing income available to stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is computed using the weighted-average number of common and dilutive common share equivalents outstanding during the period. Dilutive common share equivalents consist of shares issuable upon the exercise or settlement of stock awards (calculated using the treasury stock method) during the period they were outstanding. | ||||||||||||||||
The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share information): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 47,532 | $ | 76,730 | $ | 156,495 | $ | 200,879 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per share - weighted-average shares outstanding | 164,229 | 187,459 | 172,622 | 187,120 | ||||||||||||
Effect of dilutive employee stock awards | 1,484 | 1,521 | 1,401 | 1,710 | ||||||||||||
Denominator for diluted earnings per share - weighted-average shares outstanding | 165,713 | 188,980 | 174,023 | 188,830 | ||||||||||||
Basic earnings per share | $ | 0.29 | $ | 0.41 | $ | 0.91 | $ | 1.07 | ||||||||
Diluted earnings per share | $ | 0.29 | $ | 0.41 | $ | 0.9 | $ | 1.06 | ||||||||
Anti-dilutive weighted-average shares from stock awards | 2,807 | 3,286 | 3,287 | 3,851 | ||||||||||||
The weighted-average number of shares outstanding used in the computation of basic and diluted earnings per share does not include the effect of the potential outstanding common stock from the Company's convertible senior notes and warrants. The effects of these potentially outstanding shares were not included in the calculation of diluted earnings per share because the effect would have been anti-dilutive. | ||||||||||||||||
The Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on its Convertible Senior Notes (the "Convertible Notes") on diluted earnings per share, if applicable, as upon conversion, the Company will pay cash up to the aggregate principal amount of the Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. The conversion spread will have a dilutive impact on diluted earnings per share when the average market price of the Company’s common shares for a given period exceeds the conversion price of $90.00 per share. For the three and nine months ended September 30, 2014, the Convertible Notes have been excluded from the computation of diluted earnings per share as the effect would be anti-dilutive since the conversion price of the Convertible Notes exceeded the average market price of the Company’s common stock. In addition, the Company uses the treasury stock method for calculating any potential dilutive effect related to the warrants. See Note 10 to the Company's condensed consolidated financial statements for detailed information on the Convertible Notes offering. |
Acquisitions
Acquisitions | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
ACQUISITIONS | ' | |||||||||||
ACQUISITIONS | ||||||||||||
2014 Acquisitions | ||||||||||||
Framehawk | ||||||||||||
In January 2014, the Company acquired all of the issued and outstanding securities of Framehawk, Inc. ("Framehawk"). The Framehawk solution, which optimizes the delivery of virtual desktops and applications to mobile devices, was combined with HDX technology in the Citrix XenApp and XenDesktop products to deliver an improved user experience under adverse network conditions. The total consideration for this transaction was approximately $24.2 million, net of $0.2 million of cash acquired, and was paid in cash. This business became part of the Company's Enterprise and Service Provider division. The Company continues to evaluate certain income tax assets and liabilities related to this acquisition. Transaction costs associated with the acquisition were not significant. | ||||||||||||
2014 Other Acquisition | ||||||||||||
During the second quarter of 2014, the Company acquired all of the issued and outstanding securities of a privately-held company. The total cash consideration for this transaction was approximately $17.2 million, net of $0.8 million of cash acquired. This business became part of the Company's Enterprise and Service Provider division. Transaction costs associated with the acquisition were approximately $0.2 million, all of which the Company expensed during the nine months ended September 30, 2014 and are included in General and administrative expense in the accompanying consolidated statements of income. | ||||||||||||
Purchase Accounting for the Acquisitions in 2014 | ||||||||||||
The purchase prices for companies acquired during the nine months ended September 30, 2014, which include Framehawk and the 2014 Other Acquisition (collectively, the "2014 Acquisitions"), were allocated to the acquired net tangible and intangible assets based on estimated fair values as of the date of the acquisition. The allocation of the total purchase prices are summarized below (in thousands): | ||||||||||||
Framehawk | 2014 Other Acquisition | |||||||||||
Purchase Price Allocation | Asset Life | Purchase Price Allocation | Asset Life | |||||||||
Current assets | $ | 569 | $ | 1,196 | ||||||||
Other assets | — | 9 | ||||||||||
Property and equipment | 36 | Various | 10 | Various | ||||||||
Intangible assets | 14,000 | 7 years | 14,200 | 5 years | ||||||||
Goodwill | 14,575 | Indefinite | 7,109 | Indefinite | ||||||||
Assets acquired | 29,180 | 22,524 | ||||||||||
Current liabilities assumed | (748 | ) | (1,781 | ) | ||||||||
Long-term liabilities assumed | (3,766 | ) | — | |||||||||
Deferred tax liabilities, non-current | (259 | ) | (2,743 | ) | ||||||||
Net assets acquired | $ | 24,407 | $ | 18,000 | ||||||||
Current assets acquired in connection with the 2014 Acquisitions consisted primarily of cash, accounts receivable and other short-term assets. Current liabilities assumed in connection with the 2014 Acquisitions consisted primarily of short-term payables and other accrued expenses. Long-term liabilities assumed in connection with the 2014 Acquisitions consisted of long-term debt, which was paid in full subsequent to the respective acquisition date. | ||||||||||||
Goodwill from the 2014 Acquisitions was assigned to the Enterprise and Service Provider division segment. The goodwill related to the 2014 Acquisitions is not deductible for tax purposes. See Note 9 for segment information. The goodwill amounts are comprised primarily of expected synergies from combining operations and other intangible assets that do not qualify for separate recognition. | ||||||||||||
Revenues from the 2014 Acquisitions are included in the revenues of each business's respective segment. The Company has included the effect of the 2014 Acquisitions in its results of operations prospectively from the date of acquisition. The effect of the 2014 Acquisitions was not material to the Company's consolidated results for the periods presented, accordingly, proforma financial disclosures have not been presented. | ||||||||||||
Identifiable intangible assets acquired in connection with the 2014 Acquisitions (in thousands) and the weighted-average lives are as follows: | ||||||||||||
Framehawk | Asset Life | 2014 Other Acquisition | Asset Life | |||||||||
Core and product technologies | $14,000 | 7.0 years | $14,200 | 5.0 years | ||||||||
Subsequent Events | ||||||||||||
In October 2014, the Company acquired all of the membership interests of RightSignature, LLC. ("RightSignature”). RightSignature will become a part of the Company's SaaS division and provides technology which allows users to e-sign documents within the Documents Cloud. The RightSignature technology will expand the Documents Cloud beyond storage and file transfer to supporting e-signature and approval workflows. The total preliminary consideration for this transaction was approximately $37.5 million, net of $1.5 million of cash acquired, and was paid in cash. Transaction costs associated with the acquisition were not significant. | ||||||||||||
2013 Acquisitions | ||||||||||||
Zenprise | ||||||||||||
In January 2013, the Company acquired all of the issued and outstanding securities of Zenprise, Inc. ("Zenprise"), a | ||||||||||||
privately-held leader in mobile device management. Zenprise became part of the Company's Enterprise and Service Provider segment, in which Citrix has integrated the Zenprise offering for mobile device management into its XenMobile Enterprise edition. The total consideration for this transaction was approximately $324.0 million, net of $2.9 million of cash acquired, and was paid in cash. Transaction costs associated with the acquisition were approximately $0.6 million, of which the Company expensed approximately $0.1 million during the nine months ended September 30, 2013 and are included in General and administrative expense in the accompanying condensed consolidated statements of income. In addition, in connection with the acquisition, the Company assumed certain stock options, which are exercisable for 285,817 shares of the Company's common stock, for which the vesting period reset fully upon the closing of the transaction. | ||||||||||||
2013 Other Acquisitions | ||||||||||||
During the third quarter of 2013, the Company acquired all of the issued and outstanding securities of a privately-held company. The total consideration for this transaction was approximately $5.3 million, net of $2.8 million of cash acquired, and was paid in cash. In addition, the Company was obligated to pay contingent consideration of up to $3.0 million in cash upon the satisfaction of certain milestone achievements, as defined pursuant to the share purchase agreement. This business became part of the Company's SaaS division. In September 2014, the Company paid $2.0 million of the contingent consideration balance based on milestones achieved. The Company is expected to pay the remaining balance of up to $1.0 million if the final milestone is achieved pursuant to the share purchase agreement. | ||||||||||||
Transaction costs associated with the acquisition were approximately $0.2 million, all of which the Company expensed during the three and nine months ended September 30, 2013 and are included in General and administrative expense in the accompanying condensed consolidated statements of income. | ||||||||||||
During the fourth quarter of 2013, the Company acquired all of the issued and outstanding securities of a privately-held company. The total cash consideration for this transaction was approximately $5.5 million. This business became part of the Company's Enterprise and Service Provider division. Transaction costs associated with the acquisition were approximately $0.2 million, and are included in General and administrative expense in the accompanying condensed consolidated statements of income. No transaction costs were recorded during the three and nine months ended September 30, 2013. |
Investments
Investments | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Investments [Abstract] | ' | |||||||||||||||||||||||||||||||
INVESTMENTS | ' | |||||||||||||||||||||||||||||||
INVESTMENTS | ||||||||||||||||||||||||||||||||
Available-for-sale Investments | ||||||||||||||||||||||||||||||||
Investments in available-for-sale securities at fair value were as follows for the periods ended (in thousands): | ||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Description of the | Amortized | Gross | Gross | Fair Value | Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||||
Securities | Cost | Unrealized | Unrealized | Cost | Unrealized | Unrealized | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | |||||||||||||||||||||||||||||
Agency securities | $ | 644,491 | $ | 1,392 | $ | (539 | ) | $ | 645,344 | $ | 453,922 | $ | 1,177 | $ | (349 | ) | $ | 454,750 | ||||||||||||||
Corporate securities | 768,474 | 540 | (822 | ) | 768,192 | 643,360 | 947 | (216 | ) | 644,091 | ||||||||||||||||||||||
Municipal securities | 41,263 | 23 | (13 | ) | 41,273 | 53,698 | 81 | (23 | ) | 53,756 | ||||||||||||||||||||||
Government securities | 122,851 | 36 | (28 | ) | 122,859 | 156,930 | 196 | (47 | ) | 157,079 | ||||||||||||||||||||||
Total | $ | 1,577,079 | $ | 1,991 | $ | (1,402 | ) | $ | 1,577,668 | $ | 1,307,910 | $ | 2,401 | $ | (635 | ) | $ | 1,309,676 | ||||||||||||||
The change in net unrealized gains (losses) on available-for-sale securities recorded in Other comprehensive income (loss) includes unrealized gains (losses) that arose from changes in market value of specifically identified securities that were held during the period, gains (losses) that were previously unrealized, but have been recognized in current period net income due to sales, as well as prepayments of available-for-sale investments purchased at a premium. This reclassification has no effect on total comprehensive income or equity and was not material for all periods presented. See Note 12 for more information related to comprehensive income. | ||||||||||||||||||||||||||||||||
The average remaining maturities of the Company’s short-term and long-term available-for-sale investments at September 30, 2014 were approximately six months and three years, respectively. | ||||||||||||||||||||||||||||||||
Realized Gains and Losses on Available-for-sale Investments | ||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2014, the Company received proceeds from the sales of available-for-sale investments of $469.6 million and $1.34 billion, respectively, and for the three and nine months ended September 30, 2013, it received proceeds from the sales of available-for-sale investments of $111.5 million and $486.8 million, respectively. | ||||||||||||||||||||||||||||||||
The Company had realized gains on the sales of available-for-sale investments during the three and nine months ended September 30, 2014 of $0.2 million and $1.4 million, respectively, and for the three and nine months ended September 30, 2013, it had realized gains on the sales of available-for-sale investments of $0.1 million and $0.5 million, respectively. | ||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2014, the Company had realized losses on available-for-sale investments of $0.1 million and $0.4 million, respectively, and for the three and nine months ended September 30, 2013, it had realized losses on available-for-sale investments of $0.1 million and $0.4 million, respectively, primarily related to prepayments at par of securities purchased at a premium. | ||||||||||||||||||||||||||||||||
All realized gains and losses related to the sales of available-for-sale investments are included in other (expense) income, net, in the accompanying condensed consolidated statements of income. | ||||||||||||||||||||||||||||||||
Unrealized Losses on Available-for-Sale Investments | ||||||||||||||||||||||||||||||||
The gross unrealized losses on the Company’s available-for-sale investments that are not deemed to be other-than-temporarily impaired as of September 30, 2014 and December 31, 2013 were $1.4 million and $0.6 million, respectively. Because the Company does not intend to sell any of its investments in an unrealized loss position and it is more likely than not that it will not be required to sell the securities before the recovery of its amortized cost basis, which may not occur until maturity, it does not consider the securities to be other-than-temporarily impaired. | ||||||||||||||||||||||||||||||||
Cost Method Investments | ||||||||||||||||||||||||||||||||
The Company held direct investments in privately-held companies of approximately $16.2 million and $24.3 million as of September 30, 2014 and December 31, 2013, respectively, which are accounted for based on the cost method and are included in Other assets in the accompanying condensed consolidated balance sheets. The Company periodically reviews these investments for impairment. If the Company determines that an other-than-temporary impairment has occurred, it will write-down the investment to its fair value. For the three and nine months ended September 30, 2014, certain early-stage entities in which the Company held direct investments were acquired by third parties and as a result of such sale transactions, the Company recorded gains of $1.2 million and $2.7 million, respectively, which were included in Other (expense) income, net in the accompanying condensed consolidated statements of income. | ||||||||||||||||||||||||||||||||
For the three months ended September 30, 2014, no cost method investments were determined to be impaired. For the nine months ended September 30, 2014, the Company determined that certain cost method investments were impaired and recorded a charge of $3.2 million, which was included in Other (expense) income, net in the accompanying condensed consolidated statements of income. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
The authoritative guidance defines fair value as an exit price, representing the amount that would either be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: | ||||||||||||||||
• | Level 1. Observable inputs such as quoted prices in active markets for identical assets or liabilities; | |||||||||||||||
• | Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | |||||||||||||||
• | Level 3. Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | |||||||||||||||
Available-for-sale securities included in Level 2 are valued utilizing inputs obtained from an independent pricing service (the “Service”) which uses quoted market prices for identical or comparable instruments rather than direct observations of quoted prices in active markets. The Service applies a four level hierarchical pricing methodology to all of the Company’s fixed income securities based on the circumstances. The hierarchy starts with the highest priority pricing source, then subsequently uses inputs obtained from other third-party sources and large custodial institutions. The Service’s providers utilize a variety of inputs to determine their quoted prices. These inputs may include interest rates, known historical trades, yield curve information, benchmark data, prepayment speeds, credit quality and broker/dealer quotes. Substantially all of the Company’s available-for-sale investments are valued utilizing inputs obtained from the Service and accordingly are categorized as Level 2 in the table below. The Company periodically independently assesses the pricing obtained from the Service and historically has not adjusted the Service's pricing as a result of this assessment. Available-for-sale securities are included in Level 3 when relevant observable inputs for a security are not available. | ||||||||||||||||
The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy. In certain instances, the inputs used to measure fair value may meet the definition of more than one level of the fair value hierarchy. The input with the lowest level priority is used to determine the applicable level in the fair value hierarchy. | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||
As of September 30, 2014 | Quoted | Significant | Significant | |||||||||||||
Prices In | Other | Unobservable | ||||||||||||||
Active Markets | Observable | Inputs (Level 3) | ||||||||||||||
for Identical | Inputs (Level 2) | |||||||||||||||
Assets (Level 1) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 230,329 | $ | 230,329 | $ | — | $ | — | ||||||||
Money market funds | 11,794 | 11,794 | — | — | ||||||||||||
Corporate securities | 664 | — | 664 | — | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Agency securities | 645,344 | — | 645,344 | — | ||||||||||||
Corporate securities | 768,192 | — | 762,101 | 6,091 | ||||||||||||
Municipal securities | 41,273 | — | 41,273 | — | ||||||||||||
Government securities | 122,859 | — | 122,859 | — | ||||||||||||
Prepaid expenses and other current assets: | ||||||||||||||||
Foreign currency derivatives | 2,053 | — | 2,053 | — | ||||||||||||
Total assets | $ | 1,822,508 | $ | 242,123 | $ | 1,574,294 | $ | 6,091 | ||||||||
Accrued expenses and other current liabilities: | ||||||||||||||||
Foreign currency derivatives | 7,064 | — | 7,064 | — | ||||||||||||
Total liabilities | $ | 7,064 | $ | — | $ | 7,064 | $ | — | ||||||||
As of December 31, 2013 | Quoted | Significant | Significant | |||||||||||||
Prices In | Other | Unobservable | ||||||||||||||
Active Markets | Observable | Inputs (Level 3) | ||||||||||||||
for Identical | Inputs (Level 2) | |||||||||||||||
Assets (Level 1) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 227,528 | $ | 227,528 | $ | — | $ | — | ||||||||
Money market funds | 52,823 | 52,823 | — | — | ||||||||||||
Corporate securities | 389 | — | 389 | — | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Agency securities | 454,750 | — | 454,750 | — | ||||||||||||
Corporate securities | 644,091 | — | 633,800 | 10,291 | ||||||||||||
Municipal securities | 53,756 | — | 53,756 | — | ||||||||||||
Government securities | 157,079 | — | 157,079 | — | ||||||||||||
Prepaid expenses and other current assets: | ||||||||||||||||
Foreign currency derivatives | 4,952 | — | 4,952 | — | ||||||||||||
Total assets | $ | 1,595,368 | $ | 280,351 | $ | 1,304,726 | $ | 10,291 | ||||||||
Accrued expenses and other current liabilities: | ||||||||||||||||
Foreign currency derivatives | 1,743 | — | 1,743 | — | ||||||||||||
Total liabilities | $ | 1,743 | $ | — | $ | 1,743 | $ | — | ||||||||
The Company’s fixed income available-for-sale security portfolio generally consists of investment grade securities from diverse issuers with a minimum credit rating of A-/A3 and a weighted-average credit rating of AA-/Aa3. The Company values these securities based on pricing from the Service, whose sources may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value, and accordingly, the Company classifies all of its fixed income available-for-sale securities as Level 2. | ||||||||||||||||
The Company measures its cash flow hedges, which are classified as Prepaid expenses and other current assets and Accrued expenses and other current liabilities, at fair value based on indicative prices in active markets (Level 2 inputs). | ||||||||||||||||
Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||
The Company has invested in convertible debt securities of certain early-stage entities that are classified as available-for-sale investments. As quoted prices in active markets or other observable inputs were not available for these investments, in order to measure them at fair value, the Company utilized a discounted cash flow model using a discount rate reflecting the market risk inherent in holding securities of an early-stage enterprise, adjusted by the probability-weighted exit possibilities associated with the convertible debt securities. This methodology required the Company to make assumptions that were not directly or indirectly observable regarding the fair value of the convertible debt securities; accordingly they are a Level 3 valuation and are included in the table below. | ||||||||||||||||
Corporate Securities | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance at December 31, 2013 | $ | 10,291 | ||||||||||||||
Purchases of Level 3 securities | 1,300 | |||||||||||||||
Proceeds received on Level 3 securities | (7,875 | ) | ||||||||||||||
Total net realized gains included in earnings | 2,375 | |||||||||||||||
Balance at September 30, 2014 | $ | 6,091 | ||||||||||||||
During the nine months ended September 30, 2014, one of the early-stage entities in which the Company held convertible debt securities was acquired by a third party and as a result of such sale transaction the Company recorded a gain of $2.9 million, which was included in Other (expense) income, net in the accompanying condensed consolidated statements of income. | ||||||||||||||||
Assets Measured at Fair Value on a Non-recurring Basis Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||
During the nine months ended September 30, 2014, certain cost method investments with a combined carrying value of $3.2 million were determined to be impaired and were written down to zero. The impairment charge is included in Other (expense) income, net in the accompanying condensed consolidated financial statements. In determining the fair value of cost method investments, the Company considers many factors including but not limited to operating performance of the investee, the amount of cash that the investee has on-hand, the ability to obtain additional financing and the overall market conditions in which the investee operates. The fair value of the cost method investments represent a Level 3 valuation as the assumptions used in valuing these investments were not directly or indirectly observable. | ||||||||||||||||
For certain intangible assets where the unamortized balances exceeded the undiscounted future net cash flows, the Company measures the amount of the impairment by calculating the amount by which the carrying values exceed the estimated fair values, which are based on projected discounted future net cash flows. These non-recurring fair value measurements are categorized as Level 3 significant unobservable inputs. See Note 8 to the Company's condensed consolidated financial statements for detailed information related to Goodwill and Other Intangible Assets. | ||||||||||||||||
Additional Disclosures Regarding Fair Value Measurements | ||||||||||||||||
The carrying value of accounts receivable, accounts payable and accrued expenses approximate their fair value due to the short maturity of these items. | ||||||||||||||||
As of September 30, 2014, the fair value of the Convertible Notes, which was determined based on inputs that are observable in the market (Level 2) based on the closing trading price per $100 as of the last day of trading for the quarter ended September 30, 2014, and carrying value of debt instruments (carrying value excludes the equity component of the Company’s Convertible Notes classified in equity) was as follows: | ||||||||||||||||
Fair Value | Carrying Value | |||||||||||||||
Convertible Senior Notes | $ | 1,566,875 | $ | 1,285,092 | ||||||||||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||||
The Company’s stock-based compensation program is a long-term retention program that is intended to attract and reward talented employees and align stockholder and employee interests. As of September 30, 2014, the Company had two stock-based compensation plans under which it was granting stock options and non-vested stock units. The Company is currently granting stock-based awards from its 2014 Equity Incentive Plan (the "2014 Plan") and its Amended and Restated 2005 Employee Stock Purchase Plan (as amended, the “2005 ESPP”). In connection with certain of the Company’s acquisitions, the Company has assumed certain plans from acquired companies. The Company’s Board of Directors has provided that no new awards will be granted under the Company’s acquired stock plans. Awards previously granted under the Company's superseded and expired stock plans that are still outstanding typically expire between five and ten years from the date of grant and will continue to be subject to all the terms and conditions of such plans, as applicable. The Company’s superseded and expired stock plans include the Amended and Restated 1995 Stock Plan and the Amended and Restated 2005 Equity Incentive Plan. | ||||||||||||||||
Under the terms of the 2014 Plan, the Company is authorized to grant incentive stock options (“ISOs”), non-qualified stock options (“NSOs”), non-vested stock, non-vested stock units, stock appreciation rights (“SARs”), and performance units and to make stock-based awards to full and part-time employees of the Company and its subsidiaries or affiliates, where legally eligible to participate, as well as to consultants and non-employee directors of the Company. SARs and ISOs are not currently being granted. Currently, the 2014 Plan provides for the issuance of 29,000,000 shares of common stock, which includes the shares of common stock underlying any awards granted under the Registrant’s Amended and Restated 2005 Equity Incentive Plan, as amended, that are forfeited, canceled or otherwise terminated (other than by exercise). Under the 2014 Plan, NSOs must be granted at exercise prices no less than fair market value on the date of grant. Non-vested stock awards may be granted for such consideration in cash, other property or services, or a combination thereof, as determined by the Company’s Compensation Committee of its Board of Directors. Stock-based awards are generally exercisable or issuable upon vesting. The Company’s policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. As of September 30, 2014, there were 37,658,450 shares of common stock reserved for issuance pursuant to the Company’s stock-based compensation plans and the Company had authorization under its 2014 Plan to grant 28,392,457 additional stock-based awards. | ||||||||||||||||
Under the 2005 ESPP, all full-time and certain part-time employees of the Company are eligible to purchase common stock of the Company twice per year at the end of a six-month payment period (a “Payment Period”). During each Payment Period, eligible employees who so elect may authorize payroll deductions in an amount no less than 1% nor greater than 10% of his or her base pay for each payroll period in the Payment Period. At the end of each Payment Period, the accumulated deductions are used to purchase shares of common stock from the Company up to a maximum of 12,000 shares for any one employee during a Payment Period. Shares are purchased at a price equal to 85% of the fair market value of the Company’s common stock on the last business day of a Payment Period. Employees who, after exercising their rights to purchase shares of common stock in the 2005 ESPP, would own shares representing 5% or more of the voting power of the Company’s common stock, are ineligible to participate under the 2005 ESPP. The 2005 ESPP provides for the issuance of a maximum of 10,000,000 shares of common stock. As of September 30, 2014, 3,556,973 shares had been issued under the 2005 ESPP. The Company recorded stock-based compensation costs related to the 2005 ESPP of $1.3 million and $4.0 million for the three and nine months ended September 30, 2014, respectively, and the Company recorded stock-based compensation costs of $1.1 million and $3.7 million for the three and nine months ended September 30, 2013, respectively. | ||||||||||||||||
Stock-Based Compensation | ||||||||||||||||
The detail of the total stock-based compensation recognized by income statement classification is as follows (in thousands): | ||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||
Income Statement Classifications | September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | ||||||||||||
Cost of services and maintenance revenues | $ | 673 | $ | 617 | $ | 1,854 | $ | 1,876 | ||||||||
Research and development | 13,989 | 15,831 | 42,102 | 47,987 | ||||||||||||
Sales, marketing and services | 15,073 | 16,249 | 46,885 | 48,910 | ||||||||||||
General and administrative | 12,714 | 13,196 | 37,599 | 38,533 | ||||||||||||
Total | $ | 42,449 | $ | 45,893 | $ | 128,440 | $ | 137,306 | ||||||||
Non-vested Stock Units | ||||||||||||||||
Market Performance and Service Condition Stock Units | ||||||||||||||||
In March 2014 and 2013, the Company granted senior level employees non-vested stock unit awards representing, in the aggregate, 378,022 and 399,029 non-vested stock units, respectively, that vest based on certain target market performance and service conditions. The number of non-vested stock units underlying each award will be determined within sixty days of the calendar year following the end of a three-year performance period ending December 31, 2016 for the March 2014 awards and December 31, 2015 for the March 2013 awards. The attainment level under the award will be based on the Company's total return to stockholders over the performance period compared to the return on the Nasdaq Composite Total Return Index (the "XCMP"). If the Company's return is positive and meets or exceeds the indexed return, the number of non-vested stock units issued will be based on interpolation, with the maximum number of non-vested stock units issuable pursuant to the award capped at 200% of the target number of non-vested stock units set forth in the award agreement if the Company's return exceeds the indexed return by 40% or more. If the Company's return over the performance period is positive but underperforms the index, a number of non-vested stock units will be issued, below the target award, based on interpolation; however, no non-vested stock units will be issued if the Company's return underperforms the index by more than 20% over the performance period. In the event the Company's return to stockholders is negative but still meets or exceeds the indexed return, only 75% of the target award shall be issued. If the awardee is not employed by the Company at the end of the performance period; the extent to which the awardee will vest in the award, if at all, is dependent upon the timing and character of the termination as provided in the award agreement. Each non-vested stock unit, upon vesting, represents the right to receive one share of the Company's common stock. | ||||||||||||||||
The market condition requirements are reflected in the grant date fair value of the award, and the compensation expense for the award will be recognized assuming that the requisite service is rendered regardless of whether the market conditions are achieved. The grant date fair value of the non-vested performance stock unit awards was determined through the use of a Monte Carlo simulation model, which utilized multiple input variables that determined the probability of satisfying the market condition requirements applicable to each award as follows: | ||||||||||||||||
March 2014 Grant | March 2013 Grant | |||||||||||||||
Expected volatility factor | 0.19 - 0.38 | 0.16 - 0.42 | ||||||||||||||
Risk free interest rate | 0.81 | % | 0.33 | % | ||||||||||||
Expected dividend yield | 0 | % | 0 | % | ||||||||||||
The range of expected volatilities utilized was based on the historical volatilities of the Company's common stock and the XCMP. The Company chose to use historical volatility to value these awards because historical stock prices were used to develop the correlation coefficients between the Company and the XCMP in order to model the stock price movements. The volatilities used were calculated over a 2.76 year period, which was the remaining term of the performance period at the date of grant. The risk free interest rate was based on the implied yield available on U.S. Treasury zero-coupon issues with remaining terms equivalent to the remaining performance period. The Company does not intend to pay dividends on its common stock in the foreseeable future. Accordingly, the Company used a dividend yield of zero in its model. The estimated fair value of each award as of the date of grant was $56.94 for the March 2014 grant and $89.93 for the March 2013 grant. | ||||||||||||||||
Service Based Stock Units | ||||||||||||||||
The Company also awards senior level and certain other employees non-vested stock units granted under the 2014 Plan that vest based on service. The majority of these non-vested stock unit awards vest 33.33% on each anniversary subsequent to the date of the award. The remaining awards vest 100% on the third anniversary of the grant date. Each non-vested stock unit, upon vesting, represents the right to receive one share of the Company’s common stock. In addition, the Company awards non-vested stock units to all of its non-employee directors. These awards vest monthly in 12 equal installments based on service and, upon vesting, each stock unit represents the right to receive one share of the Company's common stock. | ||||||||||||||||
Unrecognized Compensation Related to Stock Units | ||||||||||||||||
As of September 30, 2014, the number of all non-vested stock units outstanding, including market performance and service condition awards and service-based awards, and including awards assumed in connection with acquisitions, were 5,144,412. As of September 30, 2014, there was $232.2 million of total unrecognized compensation cost related to non-vested stock units. The unrecognized cost is expected to be recognized over a weighted-average period of 1.94 years. See Note 4 for more information regarding the Company's acquisitions. | ||||||||||||||||
Stock Options | ||||||||||||||||
Stock options granted under the 2014 Plan typically have a five-year life and vest over three years, with 33.3% of the shares underlying the option vesting on the first anniversary of the date of grant and the remainder of the underlying shares vesting in equal monthly installments at a rate of 2.78% thereafter (the "Standard Vesting Rate"). There were no stock options granted during the three and nine months ended September 30, 2014. The Company also assumes stock options from certain of its acquisitions for which the vesting period is typically reset to vest over three years at the Standard Vesting Rate. During the first quarter of 2013, the Company assumed in-the-money options from the Zenprise acquisition. See Note 4 for more information related to acquisitions. The Company used the Black-Scholes option pricing model to determine the fair value of these stock options. The Company determined the expected volatility factor of 0.39 by considering the implied volatility in two-year market-traded options of the Company’s common stock based on third party volatility quotes in accordance with the provisions of SAB No. 107, Share Based Payment. The approximate risk free interest rate of 0.44% was based on the implied yield available on U.S. Treasury zero-coupon issues with remaining terms equivalent to the Company’s expected terms on stock options. The expected term of 3.35 years was based on the historical employee exercise patterns. The Company does not intend to pay dividends on its common stock in the foreseeable future. Accordingly, the Company used a dividend yield of zero in its option pricing model. | ||||||||||||||||
The total intrinsic value of options exercised during the three and nine months ended September 30, 2014 was $11.3 million and $31.3 million, respectively, and the total intrinsic value of options exercised during the three and nine months ended September 30, 2013 was $28.7 million and $70.2 million, respectively. The intrinsic value is calculated as the difference between the market value on the date of exercise and the exercise price of the shares. As of September 30, 2014, there was $4.6 million of total unrecognized compensation cost related to stock options. That cost is expected to be recognized over a weighted-average period of 1.03 years. |
Goodwill_And_Other_Intangible_
Goodwill And Other Intangible Assets | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||||||||
Goodwill | ||||||||||||||||||
The Company accounts for goodwill in accordance with the authoritative guidance, which requires that goodwill and certain intangible assets are not amortized, but are subject to an annual impairment test. There was no impairment of goodwill or indefinite lived intangible assets as a result of the annual impairment test analysis completed during the fourth quarter of 2013. There were no indicators of impairment during the three months ended September 30, 2014. In-process R&D acquired in connection with the Company's acquisitions was not material. See Note 4 for more information regarding the Company's acquisitions and Note 9 for more information regarding the Company's segments. | ||||||||||||||||||
The following table presents the change in goodwill allocated to the Company’s reportable segments during the nine months ended September 30, 2014 (in thousands): | ||||||||||||||||||
Balance at January 1, 2014 | Additions | Other | Balance at September 30, 2014 | |||||||||||||||
Enterprise and Service Provider | $ | 1,402,156 | $ | 21,740 | $ | 1,896 | -2 | $ | 1,425,792 | |||||||||
SaaS | 366,793 | — | (9,940 | ) | -3 | 356,853 | ||||||||||||
Consolidated | $ | 1,768,949 | $ | 21,740 | -1 | $ | (8,044 | ) | $ | 1,782,645 | ||||||||
-1 | Amounts relate to 2014 acquisitions. See Note 4 for more information regarding the Company’s acquisitions. | |||||||||||||||||
-2 | Amount relates to adjustments to the preliminary purchase price allocation associated with 2013 acquisitions. | |||||||||||||||||
-3 | Amount primarily relates to foreign currency translation. | |||||||||||||||||
Intangible Assets | ||||||||||||||||||
The Company has intangible assets which were primarily acquired in conjunction with business combinations and technology purchases. Intangible assets with finite lives are recorded at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, generally three to seven years, except for patents, which are amortized over the lesser of their remaining life or ten years. In-process R&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When in-process R&D projects are completed, the corresponding amount is reclassified as an amortizable purchased intangible asset and is amortized over the asset's estimated useful life. | ||||||||||||||||||
Intangible assets consist of the following (in thousands): | ||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||
Product related intangible assets | $ | 654,387 | $ | 471,191 | $ | 677,509 | $ | 428,418 | ||||||||||
Other | 488,026 | 256,471 | 482,918 | 222,414 | ||||||||||||||
Total | $ | 1,142,413 | $ | 727,662 | $ | 1,160,427 | $ | 650,832 | ||||||||||
Amortization of product related intangible assets, which consists primarily of product-related technologies and patents, was $24.0 million and $24.3 million for the three months ended September 30, 2014 and 2013, respectively, and $102.7 million and $73.4 million for the nine months ended September 30, 2014 and 2013, respectively, and is classified as a component of Cost of net revenues in the accompanying condensed consolidated statements of income. Amortization of other intangible assets, which consist primarily of customer relationships, trade names and covenants not to compete was $10.0 million and $10.4 million for the three months ended September 30, 2014 and 2013, respectively, and $32.9 million and $31.3 million for the nine months ended September 30, 2014 and 2013, respectively, and is classified as a component of Operating expenses in the accompanying condensed consolidated statements of income. | ||||||||||||||||||
The Company monitors its intangible assets for indicators of impairment. If the Company determines that an impairment has occurred, it will write-down the intangible asset to its fair value. For certain intangible assets where the unamortized balances exceeded the undiscounted future net cash flows, the Company measures the amount of the impairment by calculating the amount by which the carrying values exceed the estimated fair values, which are based on projected discounted future net cash flows. During the nine months ended September 30, 2014, the Company identified certain definite-lived intangible assets that were impaired within our Enterprise and Service Provider division and recorded non-cash impairment charges of $29.6 million. This non-recurring fair value measurement was categorized as Level 3, as significant unobservable inputs were used in the valuation analysis. The impairment charge is included in Amortization of product related intangible assets in the accompanying condensed consolidated statements of income. | ||||||||||||||||||
Estimated future amortization expense of intangible assets with finite lives as of September 30, 2014 is as follows (in thousands): | ||||||||||||||||||
Year ending December 31, | Amount | |||||||||||||||||
2014 (remaining three months) | $ | 29,689 | ||||||||||||||||
2015 | 108,854 | |||||||||||||||||
2016 | 86,725 | |||||||||||||||||
2017 | 59,864 | |||||||||||||||||
2018 | 49,944 | |||||||||||||||||
Thereafter | 79,675 | |||||||||||||||||
Total | 414,751 | |||||||||||||||||
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||
The Enterprise and Service Provider division and SaaS division constitute the Company’s two reportable segments. The Company does not engage in intercompany revenue transfers between segments. The Company’s chief operating decision maker (“CODM”) evaluates the Company’s performance based primarily on profitability from its Enterprise and Service Provider and SaaS division products. Segment profit for each segment includes certain research and development, sales, marketing and services and general and administrative expenses directly attributable to the segment as well as other corporate costs allocated to the segment and excludes certain expenses that are managed outside of the reportable segments. Costs excluded from segment profit primarily consist of certain restructuring charges, stock-based compensation costs, charges or benefits related to significant litigation that are not anticipated to be ongoing costs, amortization of product related intangible assets, amortization of other intangible assets, net interest and other (expense) income, net. Accounting policies of the Company’s segments are the same as its consolidated accounting policies. | ||||||||||||||||
Net revenues and segment profit, classified by the Company’s two reportable segments were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenues: | ||||||||||||||||
Enterprise and Service Provider division | $ | 593,741 | $ | 564,552 | $ | 1,808,209 | $ | 1,686,411 | ||||||||
SaaS division | 165,253 | 148,179 | 483,164 | 429,603 | ||||||||||||
Consolidated | $ | 758,994 | $ | 712,731 | $ | 2,291,373 | $ | 2,116,014 | ||||||||
Segment profit: | ||||||||||||||||
Enterprise and Service Provider division | $ | 131,409 | $ | 134,598 | $ | 394,536 | $ | 380,445 | ||||||||
SaaS division | 27,402 | 33,378 | 92,333 | 81,427 | ||||||||||||
Unallocated expenses(1): | ||||||||||||||||
Amortization of intangible assets | (33,915 | ) | (34,716 | ) | (135,515 | ) | (104,703 | ) | ||||||||
Patent litigation charge | (20,727 | ) | — | (20,727 | ) | — | ||||||||||
Restructuring | (3,124 | ) | — | (17,285 | ) | — | ||||||||||
Net interest and other (expense) income, net | (10,374 | ) | 3,438 | (16,897 | ) | 6,009 | ||||||||||
Stock-based compensation | (42,449 | ) | (45,893 | ) | (128,440 | ) | (137,306 | ) | ||||||||
Consolidated income before income taxes | $ | 48,222 | $ | 90,805 | $ | 168,005 | $ | 225,872 | ||||||||
-1 | Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments. | |||||||||||||||
Revenues by Product Grouping | ||||||||||||||||
Revenues by product grouping for the Company’s Enterprise and Service Provider division and SaaS division were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenues: | ||||||||||||||||
Enterprise and Service Provider division | ||||||||||||||||
Mobile and Desktop revenues(1) | $ | 392,875 | $ | 380,878 | $ | 1,170,103 | $ | 1,121,102 | ||||||||
Networking and Cloud revenues(2) | 155,388 | 146,474 | 501,231 | 458,753 | ||||||||||||
Professional services(3) | 42,322 | 33,725 | 126,775 | 96,653 | ||||||||||||
Other | 3,156 | 3,475 | 10,100 | 9,903 | ||||||||||||
Total Enterprise and Service Provider division revenues | 593,741 | 564,552 | 1,808,209 | 1,686,411 | ||||||||||||
SaaS division revenues | 165,253 | 148,179 | 483,164 | 429,603 | ||||||||||||
Total net revenues | $ | 758,994 | $ | 712,731 | $ | 2,291,373 | $ | 2,116,014 | ||||||||
-1 | Mobile and Desktop revenues are primarily comprised of sales from the Company’s desktop and application virtualization products, XenDesktop and XenApp, and the Company's Mobility products, which include XenMobile and related license updates and maintenance and support. | |||||||||||||||
-2 | Networking and Cloud revenues are primarily comprised of sales from the Company’s cloud networking products, which include NetScaler, CloudBridge and Bytemobile Smart Capacity, and the Company’s cloud platform products which include XenServer, CloudPlatform and CloudPortal and related license updates and maintenance and support. | |||||||||||||||
-3 | Professional services revenues are primarily comprised of revenues from consulting services and product training and certification services. | |||||||||||||||
Revenues by Geographic Location | ||||||||||||||||
The following table presents revenues by segment and geographic location, for the following periods (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenues: | ||||||||||||||||
Enterprise and Service Provider division | ||||||||||||||||
Americas | $ | 318,180 | $ | 306,050 | $ | 977,166 | $ | 925,395 | ||||||||
EMEA | 202,557 | 188,220 | 610,254 | 553,637 | ||||||||||||
Asia-Pacific | 73,004 | 70,282 | 220,789 | 207,379 | ||||||||||||
Total Enterprise and Service Provider division revenues | 593,741 | 564,552 | 1,808,209 | 1,686,411 | ||||||||||||
SaaS division | ||||||||||||||||
Americas | 137,031 | 124,044 | 400,580 | 360,954 | ||||||||||||
EMEA | 22,407 | 18,522 | 65,780 | 53,266 | ||||||||||||
Asia-Pacific | 5,815 | 5,613 | 16,804 | 15,383 | ||||||||||||
Total SaaS division revenues | 165,253 | 148,179 | 483,164 | 429,603 | ||||||||||||
Total net revenues | $ | 758,994 | $ | 712,731 | $ | 2,291,373 | $ | 2,116,014 | ||||||||
Convertible_Senior_Notes
Convertible Senior Notes | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
CONVERTIBLE SENIOR NOTES | ' | ||||||
CONVERTIBLE SENIOR NOTES | |||||||
Convertible Notes Offering | |||||||
On April 30, 2014, the Company completed a private placement of $1.25 billion principal amount of 0.500% Convertible Notes due 2019. The net proceeds from this offering were approximately $1.23 billion, after deducting the initial purchasers’ discounts and commissions and the estimated offering expenses payable by the Company. The Company used approximately $71.8 million of the net proceeds to pay the cost of the Initial Bond Hedges described below (after such cost was partially offset by the proceeds to the Company from the Initial Warrant Transactions described below). The Company used the remainder of the net proceeds from the offering and a portion of its existing cash and investments to purchase an aggregate of approximately $1.5 billion of its common stock, as authorized under its share repurchase program. The Company used approximately $101.0 million to purchase shares of common stock from certain purchasers of the Convertible Notes in privately negotiated transactions concurrently with the closing of the offering, and the remaining $1.4 billion to purchase additional shares of common stock through an Accelerated Share Repurchase ("ASR") which the Company entered into with Citibank, N.A. (the “ASR Counterparty”) on April 25, 2014 (the “ASR Agreement”). | |||||||
On May 6, 2014, the Company issued an additional $187.5 million principal amount of Convertible Notes (such additional Convertible Notes, the “Additional Notes”) pursuant to the full exercise of the over-allotment option granted to the initial purchasers in the offering (the “Over-Allotment Option”). The net proceeds from the sale of the Additional Notes were approximately $184.9 million, after deducting the initial purchasers’ discounts and commissions payable by us. The Company used approximately $10.8 million of the net proceeds from the exercise of the Over-Allotment Option to pay the cost of Additional Bond Hedges (after such cost was partially offset by the proceeds to the Company from Additional Warrant Transactions), as defined below. The Company intends to use the remainder of the net proceeds for working capital and general corporate purposes. | |||||||
The Convertible Notes are governed by the terms of an indenture, dated as of April 30, 2014 (the “Indenture”), between the Company and Wilmington Trust, National Association, as trustee (the “Trustee”). The Convertible Notes are the senior unsecured obligations of the Company and bear interest at a rate of 0.500% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, commencing October 15, 2014. The Convertible Notes will mature on April 15, 2019, unless earlier repurchased or converted. At any time prior to the close of business on the business day immediately preceding October 15, 2018, holders may convert their Convertible Notes at their option only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2014 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. On or after October 15, 2018 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances. | |||||||
Upon conversion, the Company will pay cash up to the aggregate principal amount of the Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. Holders will not receive any additional cash payment or additional shares of the Company's common stock representing accrued and unpaid interest, if any, upon conversion of a Convertible Note, except in limited circumstances. Instead, interest will be deemed to be paid by the cash and shares, if any, of the Company’s common stock paid or delivered, as the case may be, to such holder upon conversion of a Convertible Note. | |||||||
The conversion rate for the Convertible Notes will initially be 11.1111 shares of common stock per $1,000 principal amount of Convertible Notes, which corresponds to an initial conversion price of approximately $90.00 per share of common stock. The conversion rate is subject to adjustment from time to time upon the occurrence of certain events, including, but not limited to, the issuance of certain stock dividends on common stock, the issuance of certain rights or warrants, subdivisions, combinations, distributions of capital stock, indebtedness, or assets, the payment of cash dividends and certain issuer tender or exchange offers. | |||||||
The Company may not redeem the Convertible Notes prior to the maturity date and no “sinking fund” is provided for the Convertible Notes, which means that the Company is not required to periodically redeem or retire the Convertible Notes. Upon the occurrence of certain fundamental changes involving the Company, holders of the Convertible Notes may require the Company to repurchase for cash all or part of their Convertible Notes in principal amounts of $1,000 or an integral multiple thereof at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. | |||||||
The Indenture does not contain any financial or maintenance covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. The Indenture contains customary terms and covenants and events of default. If an event of default (other than certain events of bankruptcy, insolvency or reorganization involving the Company) occurs and is continuing, the Trustee by notice to the Company, or the holders of at least 25% in principal amount of the outstanding Convertible Notes by written notice to the Company and the Trustee, may declare 100% of the principal of and accrued and unpaid interest, if any, on all the Convertible Notes to be due and payable. Upon such a declaration of acceleration, such principal and accrued and unpaid interest, if any, will be due and payable immediately. Upon the occurrence of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal of and accrued and unpaid interest, if any, on all of the Convertible Notes will become due and payable automatically. Notwithstanding the foregoing, the Indenture provides that, to the extent the Company elects and for up to 270 days, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the Indenture consists exclusively of the right to receive additional interest on the Convertible Notes. As of September 30, 2014, none of the conditions allowing holders of the Notes to convert had been met. | |||||||
In accounting for the issuance of the Convertible Notes, the Company separated the Convertible Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the estimated fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the face value of the Convertible Notes as a whole. The excess of the principal amount of the liability component over its carrying amount ("debt discount") is amortized to interest expense over the term of the Convertible Notes using the effective interest method with an effective interest rate of 3.0 percent per annum. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. | |||||||
In accounting for the transaction costs related to the Convertible Note issuance, the Company allocated the total amount incurred to the liability and equity components based on their relative values. Issuance costs attributable to the $1.3 billion liability component are being amortized to expense over the term of the Convertible Notes, and issuance costs attributable to the $162.9 million equity component are included along with the equity component in stockholders' equity. Additionally, a deferred tax liability of $8.2 million related to a portion of the equity component transaction costs which are deductible for tax purposes is included in Other liabilities in the accompanying condensed consolidated balance sheets. | |||||||
The Convertible Notes consist of the following (in thousands): | |||||||
30-Sep-14 | |||||||
Liability component | |||||||
Principal | $ | 1,437,500 | |||||
Less: note discount | (152,408 | ) | |||||
Net carrying amount | 1,285,092 | ||||||
Equity component * | $ | 162,872 | |||||
* Recorded in the condensed consolidated balance sheet within additional paid-in capital. | |||||||
The following table includes total interest expense recognized related to the Convertible Notes (in thousands): | |||||||
Three Months Ended | Nine Months Ended | ||||||
30-Sep-14 | 30-Sep-14 | ||||||
Contractual interest expense | $ | 1,797 | $ | 2,995 | |||
Amortization of debt issuance costs | 922 | 1,533 | |||||
Amortization of debt discount | 7,802 | 12,971 | |||||
$ | 10,521 | $ | 17,499 | ||||
See Note 6 to the Company's condensed consolidated financial statements for fair value disclosures related to the Company's Convertible Notes. | |||||||
Convertible Note Hedge and Warrant Transactions | |||||||
In connection with the pricing of the Convertible Notes, on April 24, 2014, the Company entered into convertible note hedge transactions relating to approximately 13.9 million shares of common stock (the "Initial Bond Hedges"), with JPMorgan Chase Bank, National Association, London Branch; Goldman, Sachs & Co.; Bank of America, N.A.; and Royal Bank of Canada (the “Option Counterparties”). | |||||||
On April 24, 2014, the Company also entered into separate warrant transactions (the "Initial Warrant Transactions") with each of the Option Counterparties relating to approximately 13.9 million shares of common stock. | |||||||
In connection with the exercise of the Over-Allotment Option, on May 1, 2014, the Company entered into additional convertible note hedge transactions (the “Additional Bond Hedges”, and together with the Initial Bond Hedges, the “Bond Hedges”) with the Option Counterparties relating to approximately 2.1 million shares of common stock. On May 1, 2014, the Company also entered into separate additional warrant transactions (the “Additional Warrant Transactions”, and together with the Initial Warrant Transactions, the “Warrant Transactions”) with each of the Option Counterparties relating to approximately 2.1 million shares of common stock. | |||||||
The Bond Hedges are generally expected to reduce the potential dilution upon conversion of the Convertible Notes and/or offset any payments in cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, that the Company is required to make in excess of the principal amount of the Convertible Notes upon conversion of any Convertible Notes, as the case may be, in the event that the market price per share of common stock, as measured under the terms of the Bond Hedges, is greater than the strike price of the Bond Hedges, which initially corresponds to the conversion price of the Convertible Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the Convertible Notes. The Warrant Transactions will separately have a dilutive effect to the extent that the market value per share of common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants issued pursuant to the Warrant Transactions (the “Warrants”). The initial strike price of the Warrants is $120.00 per share. The Warrants will expire in ratable portions on a series of expiration dates commencing after the maturity of the Convertible Notes. The Bond Hedges and Warrants are not marked to market. The value of the Bond Hedges and Warrants were initially recorded in stockholders' equity and continue to be classified as stockholders' equity. | |||||||
Aside from the initial payment of a premium to the Option Counterparties under the Bond Hedges, which amount is partially offset by the receipt of a premium under the Warrant Transactions, the Company is not required to make any cash payments to the Option Counterparties under the Bond Hedges and will not receive any proceeds if the Warrants are exercised. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | |||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||
As of September 30, 2014, the Company’s derivative assets and liabilities primarily resulted from cash flow hedges related to its forecasted operating expenses transacted in local currencies. A substantial portion of the Company’s overseas expenses are and will continue to be transacted in local currencies. To protect against fluctuations in operating expenses and the volatility of future cash flows caused by changes in currency exchange rates, the Company has established a program that uses foreign exchange forward contracts to hedge its exposure to these potential changes. The terms of these instruments, and the hedged transactions to which they relate, generally do not exceed 12 months. | ||||||||||||||||||
Generally, when the dollar is weak, foreign currency denominated expenses will be higher, and these higher expenses will be partially offset by the gains realized from the Company’s hedging contracts. Conversely, if the dollar is strong, foreign currency denominated expenses will be lower. These lower expenses will in turn be partially offset by the losses incurred from the Company’s hedging contracts. The change in the derivative component in Accumulated other comprehensive (loss) income includes unrealized gains or losses that arose from changes in market value of the effective portion of derivatives that were held during the period, and gains or losses that were previously unrealized but have been recognized in the same line item as the forecasted transaction in current period net income due to termination or maturities of derivative contracts. This reclassification has no effect on total comprehensive income or equity. | ||||||||||||||||||
The total cumulative unrealized loss on cash flow derivative instruments was $5.8 million at September 30, 2014 and the total cumulative unrealized gain on cash flow derivative instruments was $2.9 million at December 31, 2013, and is included in Accumulated other comprehensive (loss) income in the accompanying condensed consolidated balance sheets. See Note 12 for more information related to comprehensive income. The net unrealized gain as of September 30, 2014 is expected to be recognized in income over the next 12 months at the same time the hedged items are recognized in income. | ||||||||||||||||||
Derivatives not Designated as Hedging Instruments | ||||||||||||||||||
A substantial portion of the Company’s overseas assets and liabilities are and will continue to be denominated in local currencies. To protect against fluctuations in earnings caused by changes in currency exchange rates when remeasuring the Company’s balance sheet, it utilizes foreign exchange forward contracts to hedge its exposure to this potential volatility. | ||||||||||||||||||
These contracts are not designated for hedge accounting treatment under the authoritative guidance. Accordingly, changes in the fair value of these contracts are recorded in Other (expense) income, net. | ||||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(In thousands) | ||||||||||||||||||
September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||||||
Derivatives Designated as | Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||
Hedging Instruments | Location | Value | Location | Value | Location | Value | Location | Value | ||||||||||
Foreign currency forward contracts | Prepaid | $496 | Prepaid | $4,559 | Accrued | $6,675 | Accrued | $1,578 | ||||||||||
expenses | expenses | expenses | expenses | |||||||||||||||
and other | and other | and other | and other | |||||||||||||||
current | current | current | current | |||||||||||||||
assets | assets | liabilities | liabilities | |||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(In thousands) | ||||||||||||||||||
September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||||||
Derivatives Not Designated as | Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||
Hedging Instruments | Location | Value | Location | Value | Location | Value | Location | Value | ||||||||||
Foreign currency forward contracts | Prepaid | $1,557 | Prepaid | $393 | Accrued | $389 | Accrued | $165 | ||||||||||
expenses | expenses | expenses | expenses | |||||||||||||||
and other | and other | and other | and other | |||||||||||||||
current | current | current | current | |||||||||||||||
assets | assets | liabilities | liabilities | |||||||||||||||
The Effect of Derivative Instruments on Financial Performance | ||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives in Cash Flow | Amount of (Loss)/Gain Recognized in Other | Location of Gain/(Loss) Reclassified | Amount of Gain/(Loss) Reclassified from | |||||||||||||||
Hedging Relationships | Comprehensive (Loss) | from Accumulated Other | Accumulated Other | |||||||||||||||
Income (Effective Portion) | Comprehensive (Loss) Income into | Comprehensive (Loss) Income | ||||||||||||||||
Income | (Effective Portion) | |||||||||||||||||
(Effective Portion) | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign currency forward contracts | $ | (8,309 | ) | $ | 5,158 | Operating expenses | $ | 1,500 | $ | (1,262 | ) | |||||||
For the Nine Months Ended September 30, | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives in Cash Flow | Amount of (Loss) Gain Recognized in Other | Location of Gain/(Loss) Reclassified | Amount of Gain/(Loss) Reclassified from | |||||||||||||||
Hedging Relationships | Comprehensive (Loss) | from Accumulated Other | Accumulated Other | |||||||||||||||
Income (Effective Portion) | Comprehensive (Loss) Income into | Comprehensive (Loss) Income | ||||||||||||||||
Income | (Effective Portion) | |||||||||||||||||
(Effective Portion) | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign currency forward contracts | $ | (8,645 | ) | $ | 2,175 | Operating expenses | $ | 4,448 | $ | (3,574 | ) | |||||||
There was no material ineffectiveness in the Company’s foreign currency hedging program in the periods presented. | ||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain Recognized in Income on | Amount of Gain Recognized in Income on Derivative | ||||||||||||||||
Derivative | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Foreign currency forward contracts | Other (expense) income, net | $ | 2,626 | $ | 264 | |||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain Recognized in Income on | Amount of Gain Recognized in Income on Derivative | ||||||||||||||||
Derivative | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Foreign currency forward contracts | Other (expense) income, net | $ | 1,064 | $ | 1,991 | |||||||||||||
Outstanding Foreign Currency Forward Contracts | ||||||||||||||||||
As of September 30, 2014, the Company had the following net notional foreign currency forward contracts outstanding (in thousands): | ||||||||||||||||||
Foreign Currency | Currency | |||||||||||||||||
Denomination | ||||||||||||||||||
Australian Dollar | AUD 8,067 | |||||||||||||||||
Pounds Sterling | GBP 24,700 | |||||||||||||||||
Canadian Dollar | CAD 6,632 | |||||||||||||||||
Chinese Yuan Renminbi | CNY 84,500 | |||||||||||||||||
Danish Krone | DKK 9,900 | |||||||||||||||||
Euro | EUR 24,814 | |||||||||||||||||
Hong Kong Dollar | HKD 49,348 | |||||||||||||||||
Indian Rupee | INR 854,284 | |||||||||||||||||
Japanese Yen | JPY 285,522 | |||||||||||||||||
New Zealand Dollar | NZD 300 | |||||||||||||||||
Singapore Dollar | SGD 12,300 | |||||||||||||||||
Swiss Franc | CHF 21,050 |
Comprehensive_Income
Comprehensive Income | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
COMPREHENSIVE INCOME | ' | |||||||||||||||||||
COMPREHENSIVE INCOME | ||||||||||||||||||||
The changes in Accumulated other comprehensive (loss) income by component, net of tax, are as follows: | ||||||||||||||||||||
Foreign currency | Unrealized gain (loss) on available-for-sale securities | Unrealized gain (loss) on derivative instruments | Other comprehensive loss on pension liability | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 5,458 | $ | 1,238 | $ | 2,852 | $ | (4,597 | ) | $ | 4,951 | |||||||||
Other comprehensive loss before reclassifications | (15,617 | ) | (182 | ) | (4,197 | ) | (45 | ) | (20,041 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | — | (961 | ) | (4,448 | ) | — | (5,409 | ) | ||||||||||||
Net current period other comprehensive loss | (15,617 | ) | (1,143 | ) | (8,645 | ) | (45 | ) | (25,450 | ) | ||||||||||
Balance at September 30, 2014 | $ | (10,159 | ) | $ | 95 | $ | (5,793 | ) | $ | (4,642 | ) | $ | (20,499 | ) | ||||||
Income tax expense or benefit allocated to each component of other comprehensive (loss) income is not material. | ||||||||||||||||||||
Reclassifications out of Accumulated other comprehensive (loss) income are as follows: | ||||||||||||||||||||
For the Three Months Ended September 30, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Details about accumulated other comprehensive (loss) income components | Amount reclassified from accumulated other comprehensive (loss) income, net of tax | Affected line item in the Condensed Consolidated Statements of Income | ||||||||||||||||||
Unrealized net gains on available-for-sale securities | $ | 96 | Other (expense) income, net | |||||||||||||||||
Unrealized net gains on cash flow hedges | 1,500 | Operating expenses * | ||||||||||||||||||
$ | 1,596 | |||||||||||||||||||
For the Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Details about accumulated other comprehensive (loss) income components | Amount reclassified from accumulated other comprehensive (loss) income, net of tax | Affected line item in the Condensed Consolidated Statements of Income | ||||||||||||||||||
Unrealized net gains on available-for-sale securities | $ | 961 | Other (expense) income, net | |||||||||||||||||
Unrealized net gains on cash flow hedges | 4,448 | Operating expenses * | ||||||||||||||||||
$ | 5,409 | |||||||||||||||||||
* Operating expenses amounts allocated to Research and development, Sales, marketing and services, and General and administrative are not individually significant. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The Company’s net unrecognized tax benefits totaled approximately $61.3 million and $63.8 million as of September 30, 2014 and December 31, 2013, respectively. All amounts included in the balance at September 30, 2014 for tax positions would affect the annual effective tax rate. The Company has $0.6 million accrued for the payment of interest and penalties as of September 30, 2014. | |
The Company and one or more of its subsidiaries is subject to federal income taxes in the United States, as well as income taxes of multiple state and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years prior to 2011. | |
During the quarter ended June 30, 2014, the Internal Revenue Service (“IRS”) concluded its field examination of the Company's 2009 and 2010 tax years and issued proposed adjustments primarily related to transfer pricing and the research and development tax credit. In June 2014, the Company finalized its tax deficiency calculations and formally closed the audit with the IRS for the 2009 and 2010 tax years. As a result, the Company recognized a net tax benefit related to the settlement of all tax issues with the IRS for the 2009 and 2010 tax years, the impact on subsequent years and the reduction of the Company’s uncertain tax positions for the closed tax years of $9.3 million during the second quarter of 2014. | |
In the ordinary course of global business, there are transactions for which the ultimate tax outcome is uncertain; thus, judgment is required in determining the worldwide provision for income taxes. The Company provides for income taxes on transactions based on its estimate of the probable liability. The Company adjusts its provision as appropriate for changes that impact its underlying judgments. Changes that impact provision estimates include such items as jurisdictional interpretations on tax filing positions based on the results of tax audits and general tax authority rulings. Due to the evolving nature of tax rules combined with the large number of jurisdictions in which the Company operates, it is possible that the Company’s estimates of its tax liability and the realizability of its deferred tax assets could change in the future, which may result in additional tax liabilities and adversely affect the Company’s results of operations, financial condition and cash flows. | |
The Company is required to estimate its income taxes in each of the jurisdictions in which it operates as part of the process of preparing its condensed consolidated financial statements. At September 30, 2014, the Company had approximately $140.4 million in net deferred tax assets. The authoritative guidance requires a valuation allowance to reduce the deferred tax assets reported if, based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company reviews deferred tax assets periodically for recoverability and makes estimates and judgments regarding the expected geographic sources of taxable income and gains from investments, as well as tax planning strategies in assessing the need for a valuation allowance. | |
The Company maintains certain strategic management and operational activities in overseas subsidiaries and its foreign earnings are taxed at rates that are generally lower than in the United States. The Company does not expect to remit earnings from its foreign subsidiaries. The Company’s effective tax rate was approximately 1.4% and 15.5% for the three months ended September 30, 2014 and 2013, respectively and 6.9% and 11.1% for the nine months ended September 30, 2014 and 2013, respectively. The decrease in the effective tax rate when comparing the three months ended September 30, 2014 to the three months ended September 30, 2013 was primarily due to the change in the combination of income between the Company's U.S. and foreign operations. The decrease in the effective tax rate when comparing the nine months ended September 30, 2014 to the nine months ended September 30, 2013 was primarily due to the impact of the IRS settlement for the tax years 2009 and 2010 that closed during the three months ended June 30, 2014. | |
In July 2013, the FASB issued an accounting standard update that provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. Under the new standard, the Company's unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The Company adopted this standard on January 1, 2014, and as of September 30, 2014 the Company is offsetting unrecognized tax benefits of $1.7 million against short-term deferred tax assets and $28.7 million against long-term deferred tax assets. | |
The Company’s effective tax rate generally differs from the U.S. federal statutory rate of 35% due primarily to lower tax rates on earnings generated by the Company’s foreign operations that are taxed primarily in Switzerland. The Company has not provided for U.S. taxes for those earnings because it plans to reinvest all of those earnings indefinitely outside the United States. |
Treasury_Stock
Treasury Stock | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
TREASURY STOCK | ' |
TREASURY STOCK | |
Stock Repurchase Program | |
The Company’s Board of Directors authorized an ongoing stock repurchase program with a total repurchase authority granted to the Company of $5.4 billion. The Company may use the approved dollar authority to repurchase stock at any time until the approved amount is exhausted. The objective of the Company’s stock repurchase program is to improve stockholders’ returns. At September 30, 2014, approximately $328.3 million was available to repurchase common stock pursuant to the stock repurchase program. All shares repurchased are recorded as treasury stock. A portion of the funds used to repurchase stock over the course of the program was provided by net proceeds from the Convertible Notes offering, as well as proceeds from employee stock option exercises and the related tax benefit. The Company is authorized to make open market purchases of its common stock using general corporate funds through open market purchases, pursuant to a Rule 10b5-1 plan or in privately negotiated transactions. | |
During the second quarter of 2014, the Company used a portion of the net proceeds from the Convertible Notes offering and existing cash and investments to repurchase an aggregate of approximately $1.5 billion of its common stock as authorized under the stock repurchase program. Of this $1.5 billion, the Company used approximately $101.0 million to purchase 1.7 million shares from certain purchasers of the Convertible Notes in privately negotiated transactions concurrently with the closing of the offering, and the remaining $1.4 billion to purchase additional shares of common stock under the ASR Agreement. The Company paid $1.4 billion to the ASR Counterparty under the ASR Agreement and received approximately 19.2 million shares of its common stock from the ASR Counterparty, which represents 80 percent of the shares pursuant to the ASR agreement. The total number of shares of common stock that the Company will repurchase under the ASR Agreement will be based on the average of the daily volume-weighted average prices of the common stock during the term of the ASR Agreement, less a discount. In October 2014, the ASR Counterparty elected to accelerate the ASR Agreement. Accordingly, the Company received delivery of 2,630,333 shares of its common stock in October 2014 in final settlement of the ASR Agreement. | |
During the three and nine months ended September 30, 2014, the Company expended approximately $99.9 million on open market purchases under the stock repurchase program, repurchasing 1,434,400 shares of outstanding common stock at an average price of $69.71. | |
During the three months ended September 30, 2013, the Company expended approximately $55.3 million on open market purchases under the stock repurchase program, repurchasing 764,800 shares of outstanding common stock at an average price of $72.30. During the nine months ended September 30, 2013, the Company expended approximately $156.3 million on open market purchases, repurchasing 2,240,050 shares of outstanding common stock at an average price of $69.79. | |
Shares for Tax Withholding | |
During the three months ended September 30, 2014, the Company withheld 75,797 shares from stock units that vested, totaling $4.9 million, to satisfy minimum tax withholding obligations that arose on the vesting of stock units. During the nine months ended September 30, 2014, the Company withheld 470,567 shares from stock units that vested, totaling $27.8 million, to satisfy minimum tax withholding obligations that arose on the vesting of stock units. These shares are reflected as treasury stock in the Company’s condensed consolidated balance sheets and the related cash outlays do not reduce the Company’s total stock repurchase authority. | |
During the three months ended September 30, 2013, the Company withheld 43,035 shares from stock units that vested, totaling $2.9 million, to satisfy minimum tax withholding obligations that arose on the vesting of stock units. During the nine months ended September 30, 2013, the Company withheld 389,369 shares from stock units that vested, totaling $27.7 million, to satisfy minimum tax withholding obligations that arose on the vesting of stock units. These shares are reflected as treasury stock in the Company’s condensed consolidated balance sheets and the related cash outlays do not reduce the Company’s total stock repurchase authority. |
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
Leases | |
The Company leases certain office space and equipment under various operating leases. In addition to rent, the leases require the Company to pay for taxes, insurance, maintenance and other operating expenses. Certain of these leases contain stated escalation clauses while others contain renewal options. The Company recognizes rent expense on a straight-line basis over the term of the lease, excluding renewal periods, unless renewal of the lease is reasonably assured. | |
Legal Matters | |
The Company accrues a liability for legal contingencies when it believes that it is both probable that a liability has been incurred and that it can reasonably estimate the amount of the loss. The Company reviews these accruals and adjusts them to reflect ongoing negotiations, settlements, rulings, advice of legal counsel and other relevant information. To the extent new information is obtained and the Company's views on the probable outcomes of claims, suits, assessments, investigations or legal proceedings change, changes in the Company's accrued liabilities would be recorded in the period in which such determination is made. For the Other Matters referenced below, the amount of liability is not probable or the amount cannot be reasonably estimated; and, therefore, accruals have not been made. In addition, in accordance with the relevant authoritative guidance, for matters in which the likelihood of material loss is at least reasonably possible, the Company provides disclosure of the possible loss or range of loss. If a reasonable estimate cannot be made, however, the Company will provide disclosure to that effect. | |
In April 2014, John Calma, ostensibly on behalf of the Company, filed a shareholder derivative complaint against certain of the directors of the Company (and the Company as a nominal defendant) in the Court of Chancery of the State of Delaware. The complaint alleges breach of fiduciary duty, waste of corporate assets and unjust enrichment related to stock awards that they received under the Company's director compensation program. The complaint seeks the recovery of monetary damages and other relief for damages allegedly caused to the Company. The Company believes that its directors and the Company have meritorious defenses to these allegations and that it is not reasonably possible that the ultimate outcome of this suit will materially and adversely affect the Company's business, financial condition, results of operations or cash flows. | |
In April 2008, SSL Services, LLC (“SSL Services”) filed a suit for patent infringement against the Company in the United States District Court for the Eastern District of Texas (the “SSL Matter”). SSL Services alleged that the Company infringed U.S. Patent Nos. 6,061,796 (the “'796 patent”) and 6,158,011 (the “'011 patent”). The Company denied infringement and asserted that the patents-in-suit were invalid. A jury trial was held on SSL Services' claims, and in June 2012, the jury found that the Company does not infringe the '796 patent and found that the Company willfully infringes the '011 patent through the sale and use of certain products. The jury awarded SSL Services $10.0 million. In September 2012, the court issued a final judgment confirming the jury award of $10.0 million in damages and added $5.0 million in enhanced damages and approximately $5.0 million in prejudgment interest on the damages award. In October 2014, the Federal Circuit Court of Appeals affirmed the district court’s judgment in all material respects. Accordingly, for the three and nine months ended September 30, 2014, the Company recorded an accrual for estimated damages and related interest of approximately $20.7 million, which is included in Accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets and General and administrative expense in the accompanying condensed consolidated statements of income. | |
In addition to the SSL Matter and due to the nature of the Company's business, the Company is subject to patent infringement claims, including current suits against it or one or more of its wholly-owned subsidiaries alleging infringement by various Company products and services (the "Other Matters"). The Company believes that it has meritorious defenses to the allegations made in its pending cases and intends to vigorously defend these lawsuits; however, it is currently unable to determine the ultimate outcome of these or similar matters. In addition, the Company is a defendant in various litigation matters generally arising out of the normal course of business. Although it is difficult to predict the ultimate outcomes of these cases, the Company believes that it is not reasonably possible that the ultimate outcomes will materially and adversely affect its business, financial position, results of operations or cash flows. | |
Guarantees | |
The authoritative guidance requires certain guarantees to be recorded at fair value and requires a guarantor to make disclosures, even when the likelihood of making any payments under the guarantee is remote. For those guarantees and indemnifications that do not fall within the initial recognition and measurement requirements of the authoritative guidance, the Company must continue to monitor the conditions that are subject to the guarantees and indemnifications, as required under existing generally accepted accounting principles, to identify if a loss has been incurred. If the Company determines that it is probable that a loss has been incurred, any such estimable loss would be recognized. The initial recognition and measurement requirements do not apply to the provisions contained in the majority of the Company’s software license agreements that indemnify licensees of the Company’s software from damages and costs resulting from claims alleging that the Company’s software infringes the intellectual property rights of a third party. The Company has not made payments pursuant to these provisions. The Company has not identified any losses that are probable under these provisions and, accordingly, the Company has not recorded a liability related to these indemnification provisions. |
Restructuring
Restructuring | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Restructuring and Related Activities [Abstract] | ' | ||||||
RESTRUCTURING | ' | ||||||
RESTRUCTURING | |||||||
During the first quarter of 2014, the Company announced the implementation of the 2014 Restructuring Program to better align resources to strategic initiatives. As a result, the Company reduced its headcount by approximately 265 full-time positions. It is anticipated the total severance and related costs of these actions will be in the range of $19.0 million to $22.0 million, which is expected to be completed by the end of 2014. | |||||||
Restructuring charges related to the reduction of the Company's headcount by segment consists of the following (in thousands): | |||||||
Three Months Ended | Nine Months Ended | ||||||
30-Sep-14 | 30-Sep-14 | ||||||
Enterprise and Service Provider division | $ | 3,122 | $ | 11,093 | |||
SaaS division | 2 | 6,192 | |||||
Total restructuring charges | $ | 3,124 | $ | 17,285 | |||
Restructuring accruals | |||||||
The activity in the Company’s restructuring accruals for the nine months ended September 30, 2014 is summarized as follows (in thousands): | |||||||
Total | |||||||
Balance at January 1, 2014 | $ | — | |||||
Employee severance and related costs | 17,285 | ||||||
Payments | (14,317 | ) | |||||
Balance at September 30, 2014 | $ | 2,968 | |||||
As of September 30, 2014, the $3.0 million in outstanding restructuring liability primarily relates to employee severance and related costs. | |||||||
As of September 30, 2014, restructuring accruals by segment consisted of the following (in thousands): | |||||||
Total | |||||||
Enterprise and Service Provider division | $ | 2,968 | |||||
SaaS division | — | ||||||
Total restructuring charges | $ | 2,968 | |||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
In May 2014, the Financial Accounting Standards Board issued an accounting standard update on revenue recognition. The new guidance creates a single, principle-based model for revenue recognition and expands and improves disclosures about revenue. The new guidance is effective for annual reporting periods beginning on or after December 15, 2016, and must be adopted using either a full retrospective approach for all periods presented in the period of adoption or a modified retrospective approach. The Company is currently evaluating the potential impact of this standard on its financial position and results of operations. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates made by management include the provision for doubtful accounts receivable, the provision to reduce obsolete or excess inventory to market, the provision for estimated returns, as well as sales allowances, the assumptions used in the valuation of stock-based awards, the assumptions used in the discounted cash flows to mark certain of its investments to market, the valuation of the Company’s goodwill, net realizable value of product related and other intangible assets, the fair value of convertible senior notes, the provision for income taxes and the amortization and depreciation periods for intangible and long-lived assets. While the Company believes that such estimates are fair when considered in conjunction with the condensed consolidated financial position and results of operations taken as a whole, the actual amounts of such items, when known, will vary from these estimates. | |
Investments | ' |
Investments | |
Short-term and long-term investments as of September 30, 2014 and December 31, 2013 primarily consist of agency securities, corporate securities, municipal securities and government securities. Investments classified as available-for-sale are stated at fair value with unrealized gains and losses, net of taxes, reported in Accumulated other comprehensive (loss) income. The Company classifies its available-for-sale investments as current and non-current based on their actual remaining time to maturity. The Company does not recognize changes in the fair value of its available-for-sale investments in income unless a decline in value is considered other-than-temporary in accordance with the authoritative guidance. | |
The Company’s investment policy is designed to limit exposure to any one issuer depending on credit quality. The Company uses information provided by third parties to adjust the carrying value of certain of its investments to fair value at the end of each period. Fair values are based on a variety of inputs and may include interest rates, known historical trades, yield curve information, benchmark data, prepayment speeds, credit quality and broker/dealer quotes. | |
Revenue Recognition | ' |
Revenue Recognition | |
Net revenues include the following categories: Product and licenses, SaaS, License updates and maintenance and Professional services. Product and licenses revenues primarily represent fees related to the licensing of the Company’s software and hardware appliance products. These revenues are reflected net of sales allowances, cooperative advertising agreements, partner incentive programs and provisions for returns. Shipping charges billed to customers are included in Product and license revenue and the related shipping costs are included in Cost of product and license revenue. SaaS revenues consist primarily of fees related to online service agreements, which are recognized ratably over the contract term, which is typically 12 months. In addition, SaaS revenues may also include set-up fees, which are recognized ratably over the contract term or the expected customer life, whichever is longer. License updates and maintenance revenues consist of fees related to the Subscription Advantage program and maintenance fees, which include technical support and hardware and software maintenance. The Company licenses many of its virtualization products bundled with a one-year contract for its Subscription Advantage program. Subscription Advantage is a renewable program that provides subscribers with immediate access to software upgrades, enhancements and maintenance releases when and if they become available during the term of the contract. Subscription Advantage and maintenance fees are recognized ratably over the term of the contract, which is typically 12 to 24 months. The Company capitalizes certain third-party commissions related to Subscription Advantage renewals. The capitalized commissions are amortized to Sales, marketing and services expense at the time the related deferred revenue is recognized as revenue. Hardware and software maintenance and support contracts are typically sold separately. Hardware maintenance includes technical support, the latest software upgrades and replacement of malfunctioning appliances. Dedicated account management is available as an add-on to the program for a higher level of service. Software maintenance includes unlimited support with product version upgrades. Professional services revenues are comprised of fees from consulting services related to the implementation of the Company’s products and fees from product training and certification, which are recognized as the services are provided. | |
The Company recognizes revenue when it is earned and when all of the following criteria are met: persuasive evidence of the arrangement exists; delivery has occurred or the service has been provided and the Company has no remaining obligations; the fee is fixed or determinable; and collectability is probable. | |
The majority of the Company’s product and license revenue consists of revenue from the sale of stand-alone software products. Stand-alone software sales generally include a perpetual license to the Company’s software and is subject to the industry specific software revenue recognition guidance. In accordance with this guidance, the Company allocates revenue to license updates related to its stand-alone software and any other undelivered elements of the arrangement based on vendor specific objective evidence (“VSOE”) of fair value of each element and such amounts are deferred until the applicable delivery criteria and other revenue recognition criteria described above have been met. The balance of the revenues, net of any discounts inherent in the arrangement, is recognized at the outset of the arrangement using the residual method as the product licenses are delivered. If management cannot objectively determine the fair value of each undelivered element based on VSOE of fair value, revenue recognition is deferred until all elements are delivered, all services have been performed, or until fair value can be objectively determined. | |
For hardware appliance transactions, the arrangement consideration is allocated to stand-alone software deliverables as a group and the non-software deliverables based on the relative selling prices using the selling price hierarchy in the amended revenue recognition guidance. The selling price hierarchy for a deliverable is based on its VSOE if available, third-party evidence of selling price ("TPE") if VSOE is not available, or estimated selling price ("ESP") if neither VSOE nor TPE is available. The Company then recognizes revenue on each deliverable in accordance with its policies for product and service revenue recognition. VSOE of selling price is based on the price charged when the element is sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices fall within a reasonable range based on historical discounting trends for specific products and services. TPE of selling price is established by evaluating competitor products or services in stand-alone sales to similarly situated customers. However, as the Company’s products contain a significant element of proprietary technology and its solutions offer substantially different features and functionality, the comparable pricing of products with similar functionality typically cannot be obtained. Additionally, as the Company is unable to reliably determine what competitors products’ selling prices are on a stand-alone basis, the Company is not typically able to determine TPE. The estimate of selling price is established considering multiple factors including, but not limited to, pricing practices in different geographies and through different sales channels and competitor pricing strategies. | |
For the Company’s non-software deliverables, it allocates the arrangement consideration based on the relative selling price of the deliverables. For the Company’s hardware appliances, it uses ESP as its selling price. For the Company’s support and services, it generally uses VSOE as its selling price. When the Company is unable to establish selling price using VSOE for its support and services, the Company uses ESP in its allocation of arrangement consideration. | |
The Company’s SaaS products are considered service arrangements per the authoritative guidance; accordingly, the Company follows the provisions of Securities and Exchange Commission Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition, when accounting for these service arrangements. Generally, the Company’s SaaS products are sold separately and not bundled with the Company's Enterprise and Service Provider products and services. | |
In the normal course of business, the Company is not obligated to accept product returns from its distributors under any conditions, unless the product item is defective in manufacture. The Company establishes provisions for estimated returns, as well as other sales allowances, concurrently with the recognition of revenue. The provisions are established based upon consideration of a variety of factors, including, among other things, recent and historical return rates for both specific products and distributors and the impact of any new product releases and projected economic conditions. Product returns are provided for in the condensed consolidated financial statements and have historically been within management’s expectations. Allowances for estimated product returns amounted to approximately $1.2 million and $2.1 million at September 30, 2014 and December 31, 2013, respectively. The Company also records estimated reductions to revenue for customer programs and incentive offerings, including volume-based incentives. The Company could take actions to increase its customer incentive offerings, which could result in an incremental reduction to revenue at the time the incentive is offered. | |
Foreign Currency | ' |
Foreign Currency | |
The functional currency for all of the Company’s wholly-owned foreign subsidiaries in its Enterprise and Service Provider segment is the U.S. dollar. Monetary assets and liabilities of such subsidiaries are remeasured into U.S. dollars at exchange rates in effect at the balance sheet date, and revenues and expenses are remeasured at average rates prevailing during the year. The functional currency of the Company’s wholly-owned foreign subsidiaries of its SaaS segment is the currency of the country in which each subsidiary is located. The Company translates assets and liabilities of these foreign subsidiaries at exchange rates in effect at the balance sheet date. The Company includes accumulated net translation adjustments in equity as a component of Accumulated other comprehensive (loss) income. Foreign currency transaction gains and losses are the result of exchange rate changes on transactions denominated in currencies other than the functional currency, including U.S. dollars. The remeasurement of those foreign currency transactions is included in determining net income or loss for the period of exchange. See Note 9 for information on the Company's Enterprise and Service Provider and SaaS segments. | |
Accounting for Stock-Based Compensation Plans | ' |
Accounting for Stock-Based Compensation Plans | |
The Company has various stock-based compensation plans for its employees and outside directors and accounts for stock-based compensation arrangements in accordance with the authoritative guidance, which requires the Company to measure and record compensation expense in its condensed consolidated financial statements using a fair value method. See Note 7 for further information regarding the Company’s stock-based compensation plans. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income Per Share Basic And Diluted | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share information): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 47,532 | $ | 76,730 | $ | 156,495 | $ | 200,879 | ||||||||
Denominator: | ||||||||||||||||
Denominator for basic earnings per share - weighted-average shares outstanding | 164,229 | 187,459 | 172,622 | 187,120 | ||||||||||||
Effect of dilutive employee stock awards | 1,484 | 1,521 | 1,401 | 1,710 | ||||||||||||
Denominator for diluted earnings per share - weighted-average shares outstanding | 165,713 | 188,980 | 174,023 | 188,830 | ||||||||||||
Basic earnings per share | $ | 0.29 | $ | 0.41 | $ | 0.91 | $ | 1.07 | ||||||||
Diluted earnings per share | $ | 0.29 | $ | 0.41 | $ | 0.9 | $ | 1.06 | ||||||||
Anti-dilutive weighted-average shares from stock awards | 2,807 | 3,286 | 3,287 | 3,851 | ||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
Schedule of Allocation of Purchase Price | ' | |||||||||||
The allocation of the total purchase prices are summarized below (in thousands): | ||||||||||||
Framehawk | 2014 Other Acquisition | |||||||||||
Purchase Price Allocation | Asset Life | Purchase Price Allocation | Asset Life | |||||||||
Current assets | $ | 569 | $ | 1,196 | ||||||||
Other assets | — | 9 | ||||||||||
Property and equipment | 36 | Various | 10 | Various | ||||||||
Intangible assets | 14,000 | 7 years | 14,200 | 5 years | ||||||||
Goodwill | 14,575 | Indefinite | 7,109 | Indefinite | ||||||||
Assets acquired | 29,180 | 22,524 | ||||||||||
Current liabilities assumed | (748 | ) | (1,781 | ) | ||||||||
Long-term liabilities assumed | (3,766 | ) | — | |||||||||
Deferred tax liabilities, non-current | (259 | ) | (2,743 | ) | ||||||||
Net assets acquired | $ | 24,407 | $ | 18,000 | ||||||||
Schedule of Finite-Lived Intangible Assets Acquired | ' | |||||||||||
Identifiable intangible assets acquired in connection with the 2014 Acquisitions (in thousands) and the weighted-average lives are as follows: | ||||||||||||
Framehawk | Asset Life | 2014 Other Acquisition | Asset Life | |||||||||
Core and product technologies | $14,000 | 7.0 years | $14,200 | 5.0 years |
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Investments [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of investments in available-for-sale securities at fair values | ' | |||||||||||||||||||||||||||||||
Investments in available-for-sale securities at fair value were as follows for the periods ended (in thousands): | ||||||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Description of the | Amortized | Gross | Gross | Fair Value | Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||||
Securities | Cost | Unrealized | Unrealized | Cost | Unrealized | Unrealized | ||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | |||||||||||||||||||||||||||||
Agency securities | $ | 644,491 | $ | 1,392 | $ | (539 | ) | $ | 645,344 | $ | 453,922 | $ | 1,177 | $ | (349 | ) | $ | 454,750 | ||||||||||||||
Corporate securities | 768,474 | 540 | (822 | ) | 768,192 | 643,360 | 947 | (216 | ) | 644,091 | ||||||||||||||||||||||
Municipal securities | 41,263 | 23 | (13 | ) | 41,273 | 53,698 | 81 | (23 | ) | 53,756 | ||||||||||||||||||||||
Government securities | 122,851 | 36 | (28 | ) | 122,859 | 156,930 | 196 | (47 | ) | 157,079 | ||||||||||||||||||||||
Total | $ | 1,577,079 | $ | 1,991 | $ | (1,402 | ) | $ | 1,577,668 | $ | 1,307,910 | $ | 2,401 | $ | (635 | ) | $ | 1,309,676 | ||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Assets And Liabilities Measured At Fair Value On A Recurring Basis | ' | |||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||
As of September 30, 2014 | Quoted | Significant | Significant | |||||||||||||
Prices In | Other | Unobservable | ||||||||||||||
Active Markets | Observable | Inputs (Level 3) | ||||||||||||||
for Identical | Inputs (Level 2) | |||||||||||||||
Assets (Level 1) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 230,329 | $ | 230,329 | $ | — | $ | — | ||||||||
Money market funds | 11,794 | 11,794 | — | — | ||||||||||||
Corporate securities | 664 | — | 664 | — | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Agency securities | 645,344 | — | 645,344 | — | ||||||||||||
Corporate securities | 768,192 | — | 762,101 | 6,091 | ||||||||||||
Municipal securities | 41,273 | — | 41,273 | — | ||||||||||||
Government securities | 122,859 | — | 122,859 | — | ||||||||||||
Prepaid expenses and other current assets: | ||||||||||||||||
Foreign currency derivatives | 2,053 | — | 2,053 | — | ||||||||||||
Total assets | $ | 1,822,508 | $ | 242,123 | $ | 1,574,294 | $ | 6,091 | ||||||||
Accrued expenses and other current liabilities: | ||||||||||||||||
Foreign currency derivatives | 7,064 | — | 7,064 | — | ||||||||||||
Total liabilities | $ | 7,064 | $ | — | $ | 7,064 | $ | — | ||||||||
As of December 31, 2013 | Quoted | Significant | Significant | |||||||||||||
Prices In | Other | Unobservable | ||||||||||||||
Active Markets | Observable | Inputs (Level 3) | ||||||||||||||
for Identical | Inputs (Level 2) | |||||||||||||||
Assets (Level 1) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||
Cash | $ | 227,528 | $ | 227,528 | $ | — | $ | — | ||||||||
Money market funds | 52,823 | 52,823 | — | — | ||||||||||||
Corporate securities | 389 | — | 389 | — | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Agency securities | 454,750 | — | 454,750 | — | ||||||||||||
Corporate securities | 644,091 | — | 633,800 | 10,291 | ||||||||||||
Municipal securities | 53,756 | — | 53,756 | — | ||||||||||||
Government securities | 157,079 | — | 157,079 | — | ||||||||||||
Prepaid expenses and other current assets: | ||||||||||||||||
Foreign currency derivatives | 4,952 | — | 4,952 | — | ||||||||||||
Total assets | $ | 1,595,368 | $ | 280,351 | $ | 1,304,726 | $ | 10,291 | ||||||||
Accrued expenses and other current liabilities: | ||||||||||||||||
Foreign currency derivatives | 1,743 | — | 1,743 | — | ||||||||||||
Total liabilities | $ | 1,743 | $ | — | $ | 1,743 | $ | — | ||||||||
Assets Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs | ' | |||||||||||||||
Corporate Securities | ||||||||||||||||
(In thousands) | ||||||||||||||||
Balance at December 31, 2013 | $ | 10,291 | ||||||||||||||
Purchases of Level 3 securities | 1,300 | |||||||||||||||
Proceeds received on Level 3 securities | (7,875 | ) | ||||||||||||||
Total net realized gains included in earnings | 2,375 | |||||||||||||||
Balance at September 30, 2014 | $ | 6,091 | ||||||||||||||
Fair Value, by Balance Sheet Grouping | ' | |||||||||||||||
As of September 30, 2014, the fair value of the Convertible Notes, which was determined based on inputs that are observable in the market (Level 2) based on the closing trading price per $100 as of the last day of trading for the quarter ended September 30, 2014, and carrying value of debt instruments (carrying value excludes the equity component of the Company’s Convertible Notes classified in equity) was as follows: | ||||||||||||||||
Fair Value | Carrying Value | |||||||||||||||
Convertible Senior Notes | $ | 1,566,875 | $ | 1,285,092 | ||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Schedule of Total Stock-based Compensation Recognized by Income Statement Classification | ' | |||||||||||||||
The detail of the total stock-based compensation recognized by income statement classification is as follows (in thousands): | ||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||
Income Statement Classifications | September 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | ||||||||||||
Cost of services and maintenance revenues | $ | 673 | $ | 617 | $ | 1,854 | $ | 1,876 | ||||||||
Research and development | 13,989 | 15,831 | 42,102 | 47,987 | ||||||||||||
Sales, marketing and services | 15,073 | 16,249 | 46,885 | 48,910 | ||||||||||||
General and administrative | 12,714 | 13,196 | 37,599 | 38,533 | ||||||||||||
Total | $ | 42,449 | $ | 45,893 | $ | 128,440 | $ | 137,306 | ||||||||
Schedule of Assumptions Used to Value Nonvested Share Grants | ' | |||||||||||||||
The grant date fair value of the non-vested performance stock unit awards was determined through the use of a Monte Carlo simulation model, which utilized multiple input variables that determined the probability of satisfying the market condition requirements applicable to each award as follows: | ||||||||||||||||
March 2014 Grant | March 2013 Grant | |||||||||||||||
Expected volatility factor | 0.19 - 0.38 | 0.16 - 0.42 | ||||||||||||||
Risk free interest rate | 0.81 | % | 0.33 | % | ||||||||||||
Expected dividend yield | 0 | % | 0 | % |
Goodwill_And_Other_Intangible_1
Goodwill And Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||
Schedule Of The Change In Goodwill | ' | |||||||||||||||||
The following table presents the change in goodwill allocated to the Company’s reportable segments during the nine months ended September 30, 2014 (in thousands): | ||||||||||||||||||
Balance at January 1, 2014 | Additions | Other | Balance at September 30, 2014 | |||||||||||||||
Enterprise and Service Provider | $ | 1,402,156 | $ | 21,740 | $ | 1,896 | -2 | $ | 1,425,792 | |||||||||
SaaS | 366,793 | — | (9,940 | ) | -3 | 356,853 | ||||||||||||
Consolidated | $ | 1,768,949 | $ | 21,740 | -1 | $ | (8,044 | ) | $ | 1,782,645 | ||||||||
-1 | Amounts relate to 2014 acquisitions. See Note 4 for more information regarding the Company’s acquisitions. | |||||||||||||||||
-2 | Amount relates to adjustments to the preliminary purchase price allocation associated with 2013 acquisitions. | |||||||||||||||||
-3 | Amount primarily relates to foreign currency translation. | |||||||||||||||||
Schedule Of Intangible Assets | ' | |||||||||||||||||
Intangible assets consist of the following (in thousands): | ||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||
Gross Carrying | Accumulated | Gross Carrying | Accumulated | |||||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||||
Product related intangible assets | $ | 654,387 | $ | 471,191 | $ | 677,509 | $ | 428,418 | ||||||||||
Other | 488,026 | 256,471 | 482,918 | 222,414 | ||||||||||||||
Total | $ | 1,142,413 | $ | 727,662 | $ | 1,160,427 | $ | 650,832 | ||||||||||
Schedule Of Estimated Future Amortization Expense | ' | |||||||||||||||||
Estimated future amortization expense of intangible assets with finite lives as of September 30, 2014 is as follows (in thousands): | ||||||||||||||||||
Year ending December 31, | Amount | |||||||||||||||||
2014 (remaining three months) | $ | 29,689 | ||||||||||||||||
2015 | 108,854 | |||||||||||||||||
2016 | 86,725 | |||||||||||||||||
2017 | 59,864 | |||||||||||||||||
2018 | 49,944 | |||||||||||||||||
Thereafter | 79,675 | |||||||||||||||||
Total | 414,751 | |||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Net Revenues And Profit By Segment | ' | |||||||||||||||
Net revenues and segment profit, classified by the Company’s two reportable segments were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenues: | ||||||||||||||||
Enterprise and Service Provider division | $ | 593,741 | $ | 564,552 | $ | 1,808,209 | $ | 1,686,411 | ||||||||
SaaS division | 165,253 | 148,179 | 483,164 | 429,603 | ||||||||||||
Consolidated | $ | 758,994 | $ | 712,731 | $ | 2,291,373 | $ | 2,116,014 | ||||||||
Segment profit: | ||||||||||||||||
Enterprise and Service Provider division | $ | 131,409 | $ | 134,598 | $ | 394,536 | $ | 380,445 | ||||||||
SaaS division | 27,402 | 33,378 | 92,333 | 81,427 | ||||||||||||
Unallocated expenses(1): | ||||||||||||||||
Amortization of intangible assets | (33,915 | ) | (34,716 | ) | (135,515 | ) | (104,703 | ) | ||||||||
Patent litigation charge | (20,727 | ) | — | (20,727 | ) | — | ||||||||||
Restructuring | (3,124 | ) | — | (17,285 | ) | — | ||||||||||
Net interest and other (expense) income, net | (10,374 | ) | 3,438 | (16,897 | ) | 6,009 | ||||||||||
Stock-based compensation | (42,449 | ) | (45,893 | ) | (128,440 | ) | (137,306 | ) | ||||||||
Consolidated income before income taxes | $ | 48,222 | $ | 90,805 | $ | 168,005 | $ | 225,872 | ||||||||
-1 | Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments. | |||||||||||||||
Revenues by Product Grouping | ' | |||||||||||||||
Revenues by product grouping for the Company’s Enterprise and Service Provider division and SaaS division were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenues: | ||||||||||||||||
Enterprise and Service Provider division | ||||||||||||||||
Mobile and Desktop revenues(1) | $ | 392,875 | $ | 380,878 | $ | 1,170,103 | $ | 1,121,102 | ||||||||
Networking and Cloud revenues(2) | 155,388 | 146,474 | 501,231 | 458,753 | ||||||||||||
Professional services(3) | 42,322 | 33,725 | 126,775 | 96,653 | ||||||||||||
Other | 3,156 | 3,475 | 10,100 | 9,903 | ||||||||||||
Total Enterprise and Service Provider division revenues | 593,741 | 564,552 | 1,808,209 | 1,686,411 | ||||||||||||
SaaS division revenues | 165,253 | 148,179 | 483,164 | 429,603 | ||||||||||||
Total net revenues | $ | 758,994 | $ | 712,731 | $ | 2,291,373 | $ | 2,116,014 | ||||||||
-1 | Mobile and Desktop revenues are primarily comprised of sales from the Company’s desktop and application virtualization products, XenDesktop and XenApp, and the Company's Mobility products, which include XenMobile and related license updates and maintenance and support. | |||||||||||||||
-2 | Networking and Cloud revenues are primarily comprised of sales from the Company’s cloud networking products, which include NetScaler, CloudBridge and Bytemobile Smart Capacity, and the Company’s cloud platform products which include XenServer, CloudPlatform and CloudPortal and related license updates and maintenance and support. | |||||||||||||||
-3 | Professional services revenues are primarily comprised of revenues from consulting services and product training and certification services. | |||||||||||||||
Revenues By Geographic Location | ' | |||||||||||||||
The following table presents revenues by segment and geographic location, for the following periods (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenues: | ||||||||||||||||
Enterprise and Service Provider division | ||||||||||||||||
Americas | $ | 318,180 | $ | 306,050 | $ | 977,166 | $ | 925,395 | ||||||||
EMEA | 202,557 | 188,220 | 610,254 | 553,637 | ||||||||||||
Asia-Pacific | 73,004 | 70,282 | 220,789 | 207,379 | ||||||||||||
Total Enterprise and Service Provider division revenues | 593,741 | 564,552 | 1,808,209 | 1,686,411 | ||||||||||||
SaaS division | ||||||||||||||||
Americas | 137,031 | 124,044 | 400,580 | 360,954 | ||||||||||||
EMEA | 22,407 | 18,522 | 65,780 | 53,266 | ||||||||||||
Asia-Pacific | 5,815 | 5,613 | 16,804 | 15,383 | ||||||||||||
Total SaaS division revenues | 165,253 | 148,179 | 483,164 | 429,603 | ||||||||||||
Total net revenues | $ | 758,994 | $ | 712,731 | $ | 2,291,373 | $ | 2,116,014 | ||||||||
Convertible_Senior_Notes_Table
Convertible Senior Notes (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
Convertible Debt | ' | ||||||
The Convertible Notes consist of the following (in thousands): | |||||||
30-Sep-14 | |||||||
Liability component | |||||||
Principal | $ | 1,437,500 | |||||
Less: note discount | (152,408 | ) | |||||
Net carrying amount | 1,285,092 | ||||||
Equity component * | $ | 162,872 | |||||
* Recorded in the condensed consolidated balance sheet within additional paid-in capital. | |||||||
Schedule of Interest Expense Recognized Related to Convertible Notes | ' | ||||||
The following table includes total interest expense recognized related to the Convertible Notes (in thousands): | |||||||
Three Months Ended | Nine Months Ended | ||||||
30-Sep-14 | 30-Sep-14 | ||||||
Contractual interest expense | $ | 1,797 | $ | 2,995 | |||
Amortization of debt issuance costs | 922 | 1,533 | |||||
Amortization of debt discount | 7,802 | 12,971 | |||||
$ | 10,521 | $ | 17,499 | ||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | |||||||||||||||||
Schedule Of The Fair Values Of Derivative Instruments | ' | |||||||||||||||||
Fair Values of Derivative Instruments | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(In thousands) | ||||||||||||||||||
September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||||||
Derivatives Designated as | Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||
Hedging Instruments | Location | Value | Location | Value | Location | Value | Location | Value | ||||||||||
Foreign currency forward contracts | Prepaid | $496 | Prepaid | $4,559 | Accrued | $6,675 | Accrued | $1,578 | ||||||||||
expenses | expenses | expenses | expenses | |||||||||||||||
and other | and other | and other | and other | |||||||||||||||
current | current | current | current | |||||||||||||||
assets | assets | liabilities | liabilities | |||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||
(In thousands) | ||||||||||||||||||
September 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||||||
Derivatives Not Designated as | Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||
Hedging Instruments | Location | Value | Location | Value | Location | Value | Location | Value | ||||||||||
Foreign currency forward contracts | Prepaid | $1,557 | Prepaid | $393 | Accrued | $389 | Accrued | $165 | ||||||||||
expenses | expenses | expenses | expenses | |||||||||||||||
and other | and other | and other | and other | |||||||||||||||
current | current | current | current | |||||||||||||||
assets | assets | liabilities | liabilities | |||||||||||||||
Schedule Of Effect Of Derivative Instruments On Financial Performance | ' | |||||||||||||||||
There was no material ineffectiveness in the Company’s foreign currency hedging program in the periods presented. | ||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain Recognized in Income on | Amount of Gain Recognized in Income on Derivative | ||||||||||||||||
Derivative | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Foreign currency forward contracts | Other (expense) income, net | $ | 2,626 | $ | 264 | |||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain Recognized in Income on | Amount of Gain Recognized in Income on Derivative | ||||||||||||||||
Derivative | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Foreign currency forward contracts | Other (expense) income, net | $ | 1,064 | $ | 1,991 | |||||||||||||
The Effect of Derivative Instruments on Financial Performance | ||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives in Cash Flow | Amount of (Loss)/Gain Recognized in Other | Location of Gain/(Loss) Reclassified | Amount of Gain/(Loss) Reclassified from | |||||||||||||||
Hedging Relationships | Comprehensive (Loss) | from Accumulated Other | Accumulated Other | |||||||||||||||
Income (Effective Portion) | Comprehensive (Loss) Income into | Comprehensive (Loss) Income | ||||||||||||||||
Income | (Effective Portion) | |||||||||||||||||
(Effective Portion) | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign currency forward contracts | $ | (8,309 | ) | $ | 5,158 | Operating expenses | $ | 1,500 | $ | (1,262 | ) | |||||||
For the Nine Months Ended September 30, | ||||||||||||||||||
(In thousands) | ||||||||||||||||||
Derivatives in Cash Flow | Amount of (Loss) Gain Recognized in Other | Location of Gain/(Loss) Reclassified | Amount of Gain/(Loss) Reclassified from | |||||||||||||||
Hedging Relationships | Comprehensive (Loss) | from Accumulated Other | Accumulated Other | |||||||||||||||
Income (Effective Portion) | Comprehensive (Loss) Income into | Comprehensive (Loss) Income | ||||||||||||||||
Income | (Effective Portion) | |||||||||||||||||
(Effective Portion) | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Foreign currency forward contracts | $ | (8,645 | ) | $ | 2,175 | Operating expenses | $ | 4,448 | $ | (3,574 | ) | |||||||
Schedule Of Net Notional Foreign Currency Forward Contracts Outstanding | ' | |||||||||||||||||
As of September 30, 2014, the Company had the following net notional foreign currency forward contracts outstanding (in thousands): | ||||||||||||||||||
Foreign Currency | Currency | |||||||||||||||||
Denomination | ||||||||||||||||||
Australian Dollar | AUD 8,067 | |||||||||||||||||
Pounds Sterling | GBP 24,700 | |||||||||||||||||
Canadian Dollar | CAD 6,632 | |||||||||||||||||
Chinese Yuan Renminbi | CNY 84,500 | |||||||||||||||||
Danish Krone | DKK 9,900 | |||||||||||||||||
Euro | EUR 24,814 | |||||||||||||||||
Hong Kong Dollar | HKD 49,348 | |||||||||||||||||
Indian Rupee | INR 854,284 | |||||||||||||||||
Japanese Yen | JPY 285,522 | |||||||||||||||||
New Zealand Dollar | NZD 300 | |||||||||||||||||
Singapore Dollar | SGD 12,300 | |||||||||||||||||
Swiss Franc | CHF 21,050 |
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||
Schedule of changes in accumulated other comprehensive income by component | ' | |||||||||||||||||||
The changes in Accumulated other comprehensive (loss) income by component, net of tax, are as follows: | ||||||||||||||||||||
Foreign currency | Unrealized gain (loss) on available-for-sale securities | Unrealized gain (loss) on derivative instruments | Other comprehensive loss on pension liability | Total | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 5,458 | $ | 1,238 | $ | 2,852 | $ | (4,597 | ) | $ | 4,951 | |||||||||
Other comprehensive loss before reclassifications | (15,617 | ) | (182 | ) | (4,197 | ) | (45 | ) | (20,041 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | — | (961 | ) | (4,448 | ) | — | (5,409 | ) | ||||||||||||
Net current period other comprehensive loss | (15,617 | ) | (1,143 | ) | (8,645 | ) | (45 | ) | (25,450 | ) | ||||||||||
Balance at September 30, 2014 | $ | (10,159 | ) | $ | 95 | $ | (5,793 | ) | $ | (4,642 | ) | $ | (20,499 | ) | ||||||
Schedule of reclassification out of accumulated other comprehensive income | ' | |||||||||||||||||||
Reclassifications out of Accumulated other comprehensive (loss) income are as follows: | ||||||||||||||||||||
For the Three Months Ended September 30, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Details about accumulated other comprehensive (loss) income components | Amount reclassified from accumulated other comprehensive (loss) income, net of tax | Affected line item in the Condensed Consolidated Statements of Income | ||||||||||||||||||
Unrealized net gains on available-for-sale securities | $ | 96 | Other (expense) income, net | |||||||||||||||||
Unrealized net gains on cash flow hedges | 1,500 | Operating expenses * | ||||||||||||||||||
$ | 1,596 | |||||||||||||||||||
For the Nine Months Ended September 30, 2014 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Details about accumulated other comprehensive (loss) income components | Amount reclassified from accumulated other comprehensive (loss) income, net of tax | Affected line item in the Condensed Consolidated Statements of Income | ||||||||||||||||||
Unrealized net gains on available-for-sale securities | $ | 961 | Other (expense) income, net | |||||||||||||||||
Unrealized net gains on cash flow hedges | 4,448 | Operating expenses * | ||||||||||||||||||
$ | 5,409 | |||||||||||||||||||
* Operating expenses amounts allocated to Research and development, Sales, marketing and services, and General and administrative are not individually significant. |
Restructuring_Tables
Restructuring (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Restructuring and Related Activities [Abstract] | ' | ||||||
Schedule of Restructuring Charges by Segment | ' | ||||||
Restructuring charges related to the reduction of the Company's headcount by segment consists of the following (in thousands): | |||||||
Three Months Ended | Nine Months Ended | ||||||
30-Sep-14 | 30-Sep-14 | ||||||
Enterprise and Service Provider division | $ | 3,122 | $ | 11,093 | |||
SaaS division | 2 | 6,192 | |||||
Total restructuring charges | $ | 3,124 | $ | 17,285 | |||
Schedule of Restructuring Accruals | ' | ||||||
The activity in the Company’s restructuring accruals for the nine months ended September 30, 2014 is summarized as follows (in thousands): | |||||||
Total | |||||||
Balance at January 1, 2014 | $ | — | |||||
Employee severance and related costs | 17,285 | ||||||
Payments | (14,317 | ) | |||||
Balance at September 30, 2014 | $ | 2,968 | |||||
As of September 30, 2014, restructuring accruals by segment consisted of the following (in thousands): | |||||||
Total | |||||||
Enterprise and Service Provider division | $ | 2,968 | |||||
SaaS division | — | ||||||
Total restructuring charges | $ | 2,968 | |||||
Basis_Of_Presentation_Details
Basis Of Presentation (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
segment | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Adjustment to excess tax benefit from stock-based compensation | ' | $17.30 |
Number of Reportable Segments | 2 | ' |
Significant_Accounting_Policie2
Significant Accounting Policies (Narrative) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' |
Licensing agreement with subscription bundle, term | '1 year | ' |
Allowance for estimated product returns | $1.20 | $2.10 |
Weighted Average [Member] | Online Service Agreements [Member] | ' | ' |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' |
Revenue recognition, period for recognition | '12 months | ' |
Minimum [Member] | License Update [Member] | ' | ' |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' |
Revenue recognition, period for recognition | '12 months | ' |
Maximum [Member] | License Update [Member] | ' | ' |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ' | ' |
Revenue recognition, period for recognition | '24 months | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 30, 2014 |
Senior Notes Due 2019 [Member] | |||||
Numerator: | ' | ' | ' | ' | ' |
Net income | $47,532 | $76,730 | $156,495 | $200,879 | ' |
Denominator: | ' | ' | ' | ' | ' |
Denominator for basic earnings per share - weighted-average shares outstanding | 164,229 | 187,459 | 172,622 | 187,120 | ' |
Effect of dilutive employee stock awards | 1,484 | 1,521 | 1,401 | 1,710 | ' |
Denominator for diluted earnings per share - weighted-average shares outstanding | 165,713 | 188,980 | 174,023 | 188,830 | ' |
Basic earnings per share (in dollars per share) | $0.29 | $0.41 | $0.91 | $1.07 | ' |
Diluted earnings per share (in dollars per share) | $0.29 | $0.41 | $0.90 | $1.06 | ' |
Anti-dilutive weighted-average shares from stock awards | 2,807 | 3,286 | 3,287 | 3,851 | ' |
Convertible debt, conversion price (in dollars per share) | ' | ' | ' | ' | $90 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Jan. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Oct. 31, 2014 |
Framehawk, Inc. [Member] | Zenprise, Inc. [Member] | Other 2014 Acquisition [Member] | Other 2013 Acquisitions [Member] | Other 2013 Acquisitions [Member] | Other 2013 Acquisitions [Member] | Other 2013 Acquisitions [Member] | Other 2013 Acquisitions [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | Subsequent Event [Member] | |
Maximum [Member] | Maximum [Member] | Zenprise, Inc. [Member] | Other 2014 Acquisition [Member] | Other 2014 Acquisition [Member] | Other 2013 Acquisitions [Member] | Other 2013 Acquisitions [Member] | RightSignature, LLC [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preliminary consideration | $24.20 | $324 | $17.20 | ' | $5.50 | $5.30 | ' | ' | ' | ' | ' | ' | ' | $37.50 |
Cash acquired in business combination | 0.2 | 2.9 | 0.8 | ' | ' | 2.8 | ' | ' | ' | ' | ' | ' | ' | 1.5 |
Contingent consideration amount | ' | ' | ' | ' | ' | ' | 1 | 3 | ' | ' | ' | ' | ' | ' |
Contingent consideration paid | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transaction costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | 0.6 | 0.2 | 0.2 | ' |
Transaction costs expensed during period | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | ' | ' |
Stock options converted and assumed | ' | 285,817 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisitions_Allocation_of_Pur
Acquisitions - Allocation of Purchase Price (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Business Acquisition [Line Items] | ' | ' |
Goodwill | $1,782,645 | $1,768,949 |
Framehawk, Inc. [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Current assets | 569 | ' |
Other assets | 0 | ' |
Property and equipment | 36 | ' |
Intangible assets | 14,000 | ' |
Goodwill | 14,575 | ' |
Assets acquired | 29,180 | ' |
Current liabilities assumed | -748 | ' |
Long-term liabilities assumed | -3,766 | ' |
Deferred tax liabilities, non-current | -259 | ' |
Net assets acquired | 24,407 | ' |
Other 2014 Acquisition [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Current assets | 1,196 | ' |
Other assets | 9 | ' |
Property and equipment | 10 | ' |
Intangible assets | 14,200 | ' |
Goodwill | 7,109 | ' |
Assets acquired | 22,524 | ' |
Current liabilities assumed | -1,781 | ' |
Long-term liabilities assumed | 0 | ' |
Deferred tax liabilities, non-current | -2,743 | ' |
Net assets acquired | $18,000 | ' |
Acquisitions_Intangible_Assets
Acquisitions - Intangible Assets Acquired (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Framehawk, Inc. [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Core and product technologies | $14,000 |
Framehawk, Inc. [Member] | Core and Product Technologies [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Core and product technologies | 14,000 |
Useful life of intangible assets acquired | '7 years 0 months |
Other 2014 Acquisition [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Core and product technologies | 14,200 |
Other 2014 Acquisition [Member] | Core and Product Technologies [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Core and product technologies | $14,200 |
Useful life of intangible assets acquired | '5 years 0 months |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Investment [Line Items] | ' | ' | ' | ' | ' |
Average remaining maturities for short-term available for sale investments | ' | ' | '6 months | ' | ' |
Average remaining maturities for long-term available for sale investments | ' | ' | '3 years | ' | ' |
Proceeds from available-for-sale of investments | $469,600,000 | $111,500,000 | $1,342,500,000 | $486,800,000 | ' |
Gross unrealized loss on available-for-sale investments | 1,402,000 | ' | 1,402,000 | ' | 635,000 |
Other Assets [Member] | ' | ' | ' | ' | ' |
Investment [Line Items] | ' | ' | ' | ' | ' |
Cost method investments | 16,200,000 | ' | 16,200,000 | ' | 24,300,000 |
Other Income (Expense) [Member] | ' | ' | ' | ' | ' |
Investment [Line Items] | ' | ' | ' | ' | ' |
Realized gains on the sales of available-for-sale investments | 200,000 | 100,000 | 1,400,000 | 500,000 | ' |
Realized losses on the sales of available-for-sale investments | 100,000 | 100,000 | 400,000 | 400,000 | ' |
Cost-method investment, gains included in other income | 1,200,000 | ' | 2,700,000 | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Income (Expense) [Member] | ' | ' | ' | ' | ' |
Investment [Line Items] | ' | ' | ' | ' | ' |
Cost method investment, impairment charge included other income | ' | ' | $3,200,000 | ' | ' |
Investments_Schedule_of_Availa
Investments (Schedule of Available-for-sale Securities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment [Line Items] | ' | ' |
Amortized Cost | $1,577,079 | $1,307,910 |
Gross Unrealized Gains | 1,991 | 2,401 |
Gross Unrealized Losses | -1,402 | -635 |
Fair Value | 1,577,668 | 1,309,676 |
Agency Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Amortized Cost | 644,491 | 453,922 |
Gross Unrealized Gains | 1,392 | 1,177 |
Gross Unrealized Losses | -539 | -349 |
Fair Value | 645,344 | 454,750 |
Corporate Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Amortized Cost | 768,474 | 643,360 |
Gross Unrealized Gains | 540 | 947 |
Gross Unrealized Losses | -822 | -216 |
Fair Value | 768,192 | 644,091 |
Municipal Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Amortized Cost | 41,263 | 53,698 |
Gross Unrealized Gains | 23 | 81 |
Gross Unrealized Losses | -13 | -23 |
Fair Value | 41,273 | 53,756 |
Government Securities [Member] | ' | ' |
Investment [Line Items] | ' | ' |
Amortized Cost | 122,851 | 156,930 |
Gross Unrealized Gains | 36 | 196 |
Gross Unrealized Losses | -28 | -47 |
Fair Value | $122,859 | $157,079 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Estimate of Fair Value Measurement [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Total assets | $1,822,508 | $1,595,368 |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Total liabilities | 7,064 | 1,743 |
Level 1 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Total assets | 242,123 | 280,351 |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Total liabilities | 0 | 0 |
Level 2 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Total assets | 1,574,294 | 1,304,726 |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Total liabilities | 7,064 | 1,743 |
Level 3 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Total assets | 6,091 | 10,291 |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Total liabilities | 0 | 0 |
Cash and Cash Equivalents [Member] | Cash [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and cash equivalents | 230,329 | 227,528 |
Cash and Cash Equivalents [Member] | Cash [Member] | Level 1 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and cash equivalents | 230,329 | 227,528 |
Cash and Cash Equivalents [Member] | Cash [Member] | Level 2 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash and Cash Equivalents [Member] | Cash [Member] | Level 3 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash and Cash Equivalents [Member] | Money Market Funds [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and cash equivalents | 11,794 | 52,823 |
Cash and Cash Equivalents [Member] | Money Market Funds [Member] | Level 1 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and cash equivalents | 11,794 | 52,823 |
Cash and Cash Equivalents [Member] | Money Market Funds [Member] | Level 2 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash and Cash Equivalents [Member] | Money Market Funds [Member] | Level 3 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash and Cash Equivalents [Member] | Corporate Securities [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and cash equivalents | 664 | 389 |
Cash and Cash Equivalents [Member] | Corporate Securities [Member] | Level 1 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Cash and Cash Equivalents [Member] | Corporate Securities [Member] | Level 2 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and cash equivalents | 664 | 389 |
Cash and Cash Equivalents [Member] | Corporate Securities [Member] | Level 3 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Available-for-sale Securities [Member] | Corporate Securities [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 768,192 | 644,091 |
Available-for-sale Securities [Member] | Corporate Securities [Member] | Level 1 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 0 | 0 |
Available-for-sale Securities [Member] | Corporate Securities [Member] | Level 2 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 762,101 | 633,800 |
Available-for-sale Securities [Member] | Corporate Securities [Member] | Level 3 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 6,091 | 10,291 |
Available-for-sale Securities [Member] | Agency Securities [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 645,344 | 454,750 |
Available-for-sale Securities [Member] | Agency Securities [Member] | Level 1 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 0 | 0 |
Available-for-sale Securities [Member] | Agency Securities [Member] | Level 2 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 645,344 | 454,750 |
Available-for-sale Securities [Member] | Agency Securities [Member] | Level 3 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 0 | 0 |
Available-for-sale Securities [Member] | Municipal Securities [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 41,273 | 53,756 |
Available-for-sale Securities [Member] | Municipal Securities [Member] | Level 1 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 0 | 0 |
Available-for-sale Securities [Member] | Municipal Securities [Member] | Level 2 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 41,273 | 53,756 |
Available-for-sale Securities [Member] | Municipal Securities [Member] | Level 3 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 0 | 0 |
Available-for-sale Securities [Member] | Government Securities [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 122,859 | 157,079 |
Available-for-sale Securities [Member] | Government Securities [Member] | Level 1 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 0 | 0 |
Available-for-sale Securities [Member] | Government Securities [Member] | Level 2 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 122,859 | 157,079 |
Available-for-sale Securities [Member] | Government Securities [Member] | Level 3 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Available-for-sale securities | 0 | 0 |
Prepaid Expenses and Other Current Assets [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Foreign currency derivatives | 2,053 | 4,952 |
Prepaid Expenses and Other Current Assets [Member] | Level 1 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Foreign currency derivatives | 0 | 0 |
Prepaid Expenses and Other Current Assets [Member] | Level 2 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Foreign currency derivatives | 2,053 | 4,952 |
Prepaid Expenses and Other Current Assets [Member] | Level 3 [Member] | ' | ' |
Assets, Fair Value Disclosure [Abstract] | ' | ' |
Foreign currency derivatives | 0 | 0 |
Accrued Expenses and Other Current Liabilities [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Foreign currency derivatives | 7,064 | 1,743 |
Accrued Expenses and Other Current Liabilities [Member] | Level 1 [Member] | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Foreign currency derivatives | 0 | 0 |
Accrued Expenses and Other Current Liabilities [Member] | Level 2 [Member] | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Foreign currency derivatives | 7,064 | 1,743 |
Accrued Expenses and Other Current Liabilities [Member] | Level 3 [Member] | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Foreign currency derivatives | $0 | $0 |
Fair_Value_Measurements_Assets1
Fair Value Measurements (Assets Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs) (Details) (Convertible Debt Securities [Member], Level 3 [Member], USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' |
Balance at December 31, 2013 | $10,291 |
Purchases of Level 3 securities | 1,300 |
Proceeds received on Level 3 securities | -7,875 |
Total net realized gains included in earnings | 2,375 |
Balance at September 30, 2014 | 6,091 |
Other Income (Expense) [Member] | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' |
Total net realized gains included in earnings | $2,900 |
Fair_Value_Measurements_Assets2
Fair Value Measurements (Assets and Liabilities on a Nonrecurring Basis) (Details) (Other Income (Expense) [Member], Nonrecurring [Member], Level 3 [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Other Income (Expense) [Member] | Nonrecurring [Member] | Level 3 [Member] | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Cost method investment, impairment charge included other income | $3.20 |
Fair_Value_Measurements_Additi
Fair Value Measurements (Additional Information Regarding Fair Value Measurements) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Convertible Senior Notes | $1,285,092,000 | $0 |
Level 2 [Member] | Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Closing trading price per $100 as of the last day of trading for the quarter | 100 | ' |
Convertible Senior Notes | 1,566,875,000 | ' |
Senior Notes Due 2019 [Member] | Level 2 [Member] | Carrying Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Convertible Senior Notes | $1,285,092,000 | ' |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |||||
plan | plan | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Market and Service Condition Stock Units [Member] | Market and Service Condition Stock Units [Member] | Market and Service Condition Stock Units [Member] | Non-vested Stock Units [Member] | Non-vested Stock Units [Member] | Non-vested Stock Units [Member] | Non-vested Stock Units [Member] | Vesting on first anniversary of date of grant [Member] | Vesting in equal monthly installments after first anniversary of date of grant [Member] | Annual vesting on each anniversary [Member] | Vesting on third anniversary [Member] | Minimum [Member] | Superseded and Expired Stock Plans [Member] | Superseded and Expired Stock Plans [Member] | 2005 Plan [Member] | 2005 ESPP Plan [Member] | 2005 ESPP Plan [Member] | 2005 ESPP Plan [Member] | 2005 ESPP Plan [Member] | 2005 ESPP Plan [Member] | 2005 ESPP Plan [Member] | |||||||
installment | Stock Options [Member] | Stock Options [Member] | Non-vested Stock Units [Member] | Non-vested Stock Units [Member] | Market and Service Condition Stock Units [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of stock-based compensation plans offered | 2 | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Shares authorized for issuance under 2005 Equity Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,000,000 | 10,000,000 | ' | 10,000,000 | ' | ' | ' | ||||
Shares reserved for issuance under the 2005 Equity Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,658,450 | ' | ' | ' | ' | ' | ' | ||||
Shares available for grant under the 2005 Equity Incentive Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,392,457 | ' | ' | ' | ' | ' | ' | ||||
Employee Stock Purchase Plan, payment period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ||||
Employee Stock Purchase Plan, option to purchase shares through payroll deduction, payroll deduction amount per pay period per employee, as a percentage of base pay | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 10.00% | ||||
Employee Stock Purchase Plan, maximum number of shares per period that employees can purchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000 | ' | ' | ' | ||||
Employee Stock Purchase Plan, purchase price as a percentage of fair market value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ||||
Employee Stock Purchase Plan, employee disqualification, ownership percent of outstanding stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ||||
Employee Stock Purchase Plan, total shares issued under plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,556,973 | ' | 3,556,973 | ' | ' | ' | ||||
stock-based compensation cost | $42,449,000 | [1] | $45,893,000 | [1] | $128,440,000 | [1] | $137,306,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,300,000 | $1,100,000 | $4,000,000 | $3,700,000 | ' | ' |
Stock options vesting life assumed | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ||||
Stock option vesting period | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Award vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.30% | 2.78% | 33.33% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Vesting period of options from acquisitions | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
The total intrinsic value of options exercised | ' | ' | ' | ' | 11,300,000 | 28,700,000 | 31,300,000 | 70,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total unrecognized compensation cost | ' | ' | ' | ' | 4,600,000 | ' | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total unrecognized compensation cost recognition period | ' | ' | ' | ' | ' | ' | '1 year 0 months 11 days | ' | ' | ' | ' | ' | ' | '1 year 11 months 9 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Non-vested stock unit awards granted to senior level employees | ' | ' | ' | ' | ' | ' | ' | ' | 378,022 | 399,029 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Period to determine actual stock grant following end of performance period | ' | ' | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Performance period for grants | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maximum percentage of market and service condition stock units that will ultimately vest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Percentage that Company's return exceeds indexed return | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Percentage that Company's return underperforms index | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Percent of award issued if return is negative but index is met | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Number of shares represented by each non-vested stock unit upon vesting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
The estimated fair value of each award (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $56.94 | $89.93 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Stock-based compensation award vesting period, number of monthly installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Share based awards granted and outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,144,412 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total unrecognized compensation cost related to stock-based compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $232,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments. |
StockBased_Compensation_Detail
Stock-Based Compensation (Detail Of The Total Stock-Based Compensation Recognized By Income Statement Classification) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ||||
Stock-based compensation expense | $42,449 | [1] | $45,893 | [1] | $128,440 | [1] | $137,306 | [1] |
Cost of Services and Maintenance Revenues [Member] | ' | ' | ' | ' | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ||||
Stock-based compensation expense | 673 | 617 | 1,854 | 1,876 | ||||
Research and Development [Member] | ' | ' | ' | ' | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ||||
Stock-based compensation expense | 13,989 | 15,831 | 42,102 | 47,987 | ||||
Sales, Marketing and Services [Member] | ' | ' | ' | ' | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ||||
Stock-based compensation expense | 15,073 | 16,249 | 46,885 | 48,910 | ||||
General and Administrative Expense [Member] | ' | ' | ' | ' | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' | ||||
Stock-based compensation expense | $12,714 | $13,196 | $37,599 | $38,533 | ||||
[1] | Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments. |
StockBased_Compensation_Assump
Stock-Based Compensation (Assumptions Used To Value Option Grants and Stock Awards (Details) | 3 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||||
Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Stock Options [Member] | Non-vested Stock Units [Member] | Non-vested Stock Units [Member] | Non-vested Stock Units [Member] | Non-vested Stock Units [Member] | Non-vested Stock Units [Member] | Non-vested Stock Units [Member] | Non-vested Stock Units [Member] | |
Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility factor | 39.00% | ' | ' | ' | 19.00% | 16.00% | 38.00% | 42.00% |
Approximate risk free interest rate | 0.44% | 0.81% | 0.33% | ' | ' | ' | ' | ' |
Expected term (in years) | '3 years 4 months 6 days | ' | ' | '2 years 9 months 3 days | ' | ' | ' | ' |
Expected dividend yield | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' |
Goodwill_And_Other_Intangible_2
Goodwill And Other Intangible Assets (Schedule Of Change In Goodwill) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | |
Goodwill [Roll Forward] | ' | |
Balance at January 1, 2014 | $1,768,949 | |
Additions | 21,740 | [1] |
Other | -8,044 | |
Balance at September 30, 2014 | 1,782,645 | |
Enterprise and Service Provider [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Balance at January 1, 2014 | 1,402,156 | |
Additions | 21,740 | |
Other | 1,896 | [2] |
Balance at September 30, 2014 | 1,425,792 | |
SaaS [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Balance at January 1, 2014 | 366,793 | |
Additions | 0 | |
Other | -9,940 | [3] |
Balance at September 30, 2014 | $356,853 | |
[1] | Amounts relate to 2014 acquisitions. See Note 4 for more information regarding the Companybs acquisitions. | |
[2] | Amount relates to adjustments to the preliminary purchase price allocation associated with 2013 acquisitions. | |
[3] | Amount primarily relates to foreign currency translation. |
Goodwill_And_Other_Intangible_3
Goodwill And Other Intangible Assets (Schedule Of Intangible Assets) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |||||
Statement [Line Items] | ' | ' | ' | ' | ' | ||||
Gross carrying amount | $1,142,413,000 | ' | $1,142,413,000 | ' | $1,160,427,000 | ||||
Accumulated amortization | 727,662,000 | ' | 727,662,000 | ' | 650,832,000 | ||||
Amortization expense | 33,915,000 | [1] | 34,716,000 | [1] | 135,515,000 | [1] | 104,703,000 | [1] | ' |
Product Related Intangible Assets [Member] | ' | ' | ' | ' | ' | ||||
Statement [Line Items] | ' | ' | ' | ' | ' | ||||
Gross carrying amount | 654,387,000 | ' | 654,387,000 | ' | 677,509,000 | ||||
Accumulated amortization | 471,191,000 | ' | 471,191,000 | ' | 428,418,000 | ||||
Other [Member] | ' | ' | ' | ' | ' | ||||
Statement [Line Items] | ' | ' | ' | ' | ' | ||||
Gross carrying amount | 488,026,000 | ' | 488,026,000 | ' | 482,918,000 | ||||
Accumulated amortization | 256,471,000 | ' | 256,471,000 | ' | 222,414,000 | ||||
Minimum [Member] | ' | ' | ' | ' | ' | ||||
Statement [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset life | ' | ' | '3 years | ' | ' | ||||
Maximum [Member] | ' | ' | ' | ' | ' | ||||
Statement [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset life | ' | ' | '7 years | ' | ' | ||||
Maximum [Member] | Patents [Member] | ' | ' | ' | ' | ' | ||||
Statement [Line Items] | ' | ' | ' | ' | ' | ||||
Intangible asset life | ' | ' | '10 years | ' | ' | ||||
Cost of net revenues [Member] | Product Related Intangible Assets [Member] | ' | ' | ' | ' | ' | ||||
Statement [Line Items] | ' | ' | ' | ' | ' | ||||
Amortization expense | 24,000,000 | 24,300,000 | 102,700,000 | 73,400,000 | ' | ||||
Operating Expense [Member] | Other [Member] | ' | ' | ' | ' | ' | ||||
Statement [Line Items] | ' | ' | ' | ' | ' | ||||
Amortization expense | 10,000,000 | 10,400,000 | 32,900,000 | 31,300,000 | ' | ||||
Amortization of product related intangibles [Member] | Enterprise and Service Provider Division [Member] | ' | ' | ' | ' | ' | ||||
Statement [Line Items] | ' | ' | ' | ' | ' | ||||
Non-cash impairment charges | ' | ' | $29,600,000 | ' | ' | ||||
[1] | Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments. |
Goodwill_And_Other_Intangible_4
Goodwill And Other Intangible Assets (Schedule Of Estimated Future Amortization Expense) (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ' |
2014 (remaining three months) | $29,689 |
2015 | 108,854 |
2016 | 86,725 |
2017 | 59,864 |
2018 | 49,944 |
Thereafter | 79,675 |
Total | $414,751 |
Segment_Information_Net_Revenu
Segment Information (Net Revenues And Profit By Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
segment | ||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Number of Reportable Segments | ' | ' | 2 | ' | ||||
Net revenues | $758,994 | $712,731 | $2,291,373 | $2,116,014 | ||||
Segment profit | 58,597 | 87,367 | 184,903 | 219,863 | ||||
Amortization of intangible assets | -33,915 | [1] | -34,716 | [1] | -135,515 | [1] | -104,703 | [1] |
Patent litigation charge | -20,727 | [1] | 0 | [1] | -20,727 | [1] | 0 | [1] |
Restructuring Charges | -3,124 | [1] | 0 | [1] | -17,285 | [1] | 0 | [1] |
Net interest and other (expense) income, net | -10,374 | [1] | 3,438 | [1] | -16,897 | [1] | 6,009 | [1] |
Stock-based compensation | -42,449 | [1] | -45,893 | [1] | -128,440 | [1] | -137,306 | [1] |
Consolidated income before income taxes | 48,222 | 90,805 | 168,005 | 225,872 | ||||
Enterprise and Service Provider Division [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 593,741 | 564,552 | 1,808,209 | 1,686,411 | ||||
Segment profit | 131,409 | 134,598 | 394,536 | 380,445 | ||||
SaaS Division [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 165,253 | 148,179 | 483,164 | 429,603 | ||||
Segment profit | $27,402 | $33,378 | $92,333 | $81,427 | ||||
[1] | Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments. |
Segment_Information_Revenues_B
Segment Information (Revenues By Product Grouping) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | $758,994 | $712,731 | $2,291,373 | $2,116,014 | ||||
Enterprise and Service Provider Division [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 593,741 | 564,552 | 1,808,209 | 1,686,411 | ||||
Enterprise and Service Provider Division [Member] | Mobile and Desktop Revenues [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 392,875 | [1] | 380,878 | [1] | 1,170,103 | [1] | 1,121,102 | [1] |
Enterprise and Service Provider Division [Member] | Networking and Cloud Revenues [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 155,388 | [2] | 146,474 | [2] | 501,231 | [2] | 458,753 | [2] |
Enterprise and Service Provider Division [Member] | Professional Services [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 42,322 | [3] | 33,725 | [3] | 126,775 | [3] | 96,653 | [3] |
Enterprise and Service Provider Division [Member] | Other [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | 3,156 | 3,475 | 10,100 | 9,903 | ||||
SaaS Division [Member] | ' | ' | ' | ' | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ||||
Net revenues | $165,253 | $148,179 | $483,164 | $429,603 | ||||
[1] | Mobile and Desktop revenues are primarily comprised of sales from the Companybs desktop and application virtualization products, XenDesktop and XenApp, and the Company's Mobility products, which include XenMobile and related license updates and maintenance and support. | |||||||
[2] | Networking and Cloud revenues are primarily comprised of sales from the Companybs cloud networking products, which include NetScaler, CloudBridge and Bytemobile Smart Capacity, and the Companybs cloud platform products which include XenServer, CloudPlatform and CloudPortal and related license updates and maintenance and support. | |||||||
[3] | Professional services revenues are primarily comprised of revenues from consulting services and product training and certification services. |
Segment_Information_Revenues_B1
Segment Information (Revenues By Geographic Location) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net revenues | $758,994 | $712,731 | $2,291,373 | $2,116,014 |
Enterprise and Service Provider Division [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net revenues | 593,741 | 564,552 | 1,808,209 | 1,686,411 |
Enterprise and Service Provider Division [Member] | Americas [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net revenues | 318,180 | 306,050 | 977,166 | 925,395 |
Enterprise and Service Provider Division [Member] | EMEA [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net revenues | 202,557 | 188,220 | 610,254 | 553,637 |
Enterprise and Service Provider Division [Member] | Asia-Pacific [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net revenues | 73,004 | 70,282 | 220,789 | 207,379 |
SaaS Division [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net revenues | 165,253 | 148,179 | 483,164 | 429,603 |
SaaS Division [Member] | Americas [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net revenues | 137,031 | 124,044 | 400,580 | 360,954 |
SaaS Division [Member] | EMEA [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net revenues | 22,407 | 18,522 | 65,780 | 53,266 |
SaaS Division [Member] | Asia-Pacific [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Net revenues | $5,815 | $5,613 | $16,804 | $15,383 |
Convertible_Senior_Notes_Narra
Convertible Senior Notes (Narrative) (Details) (USD $) | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||
Share data in Millions, except Per Share data, unless otherwise specified | Apr. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Apr. 30, 2014 | 6-May-14 | Apr. 30, 2014 | Sep. 30, 2014 | 6-May-14 | Apr. 30, 2014 | Sep. 30, 2014 | |
Purchase From Accelerated Share Repurchase [Member] | Senior Notes Due 2019 [Member] | Senior Notes Due 2019 [Member] | Senior Notes Due 2019 [Member] | Senior Notes Due 2019 [Member] | Privately Negotiated Transaction [Member] | Level 2 [Member] | ||||||
Over Allotment Option [Member] | Carrying Value [Member] | |||||||||||
Senior Notes Due 2019 [Member] | ||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | |
Days Of Additional Interest To Remedy Default | '270 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Convertible debt | ' | ' | ' | ' | ' | ' | 1,250,000,000 | ' | ' | ' | ' | |
Stated interest rate percentage | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | |
Additional amount to cover over-allotment | ' | ' | ' | ' | ' | 187,500,000 | ' | ' | ' | ' | ' | |
Proceeds from convertible debt | ' | 1,415,717,000 | 0 | ' | ' | ' | 1,230,000,000 | ' | 184,900,000 | ' | ' | |
Payments for (proceeds from) hedge, investing activities | ' | ' | ' | ' | ' | 10,800,000 | 71,800,000 | ' | ' | ' | ' | |
Amount used to repurchase stock | ' | 1,600,986,000 | 156,334,000 | ' | ' | ' | ' | ' | ' | 101,000,000 | ' | |
Stock repurchased during period, value | ' | ' | ' | ' | 1,400,000,000 | ' | 1,500,000,000 | ' | ' | ' | ' | |
Number of days out of 30 that common stock price exceeded conversion price | ' | ' | ' | ' | ' | ' | '20 days | ' | ' | ' | ' | |
Convertible debt, threshold consecutive trading days | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | |
Convertible debt, threshold percentage of stock price trigger | ' | ' | ' | ' | ' | ' | 130.00% | ' | ' | ' | ' | |
Percentage of conversion rate | ' | ' | ' | ' | ' | ' | 0.98 | ' | ' | ' | ' | |
Convertible debt, conversion ratio | ' | ' | ' | ' | ' | ' | 0.011111 | ' | ' | ' | ' | |
Convertible debt, conversion price (in dollars per share) | ' | ' | ' | ' | ' | ' | $90 | ' | ' | ' | ' | |
Repurchase price as a percent of principal amount | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | |
Holder of a percent of principal in event of default (at least) | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | |
Percentage Trustee May Declare | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | |
Percent Of Principal And Accrued Interest Due | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | |
Amortization of debt discount, effective interest method, percent | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | |
Convertible notes | ' | 1,285,092,000 | ' | 0 | ' | ' | ' | ' | ' | ' | 1,285,092,000 | |
Equity component | ' | ' | ' | ' | ' | ' | ' | 162,872,000 | [1] | ' | ' | ' |
Deferred tax liability, equity component | ' | ' | ' | ' | ' | ' | ' | $8,200,000 | ' | ' | ' | |
Shares Of Common Stock Covered By Note Hedges | ' | ' | ' | ' | ' | ' | 13.9 | ' | ' | ' | ' | |
Additional warrant transaction | ' | ' | ' | ' | ' | ' | 2.1 | ' | ' | ' | ' | |
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | ' | ' | ' | ' | ' | ' | 120 | ' | ' | ' | ' | |
[1] | Recorded in the condensed consolidated balance sheet within additional paid-in capital. |
Convertible_Senior_Notes_Detai
Convertible Senior Notes (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | |
Net carrying amount | $1,285,092 | $0 | |
Senior Notes Due 2019 [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Principal | 1,437,500 | ' | |
Less: note discount | -152,408 | ' | |
Equity component | 162,872 | [1] | ' |
Level 2 [Member] | Carrying Value [Member] | Senior Notes Due 2019 [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Net carrying amount | $1,285,092 | ' | |
[1] | Recorded in the condensed consolidated balance sheet within additional paid-in capital. |
Convertible_Notes_Schedule_of_
Convertible Notes - Schedule of Interest Expense (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
Senior Notes Due 2019 [Member] | Senior Notes Due 2019 [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' |
Contractual interest expense | ' | ' | $1,797 | $2,995 |
Amortization of debt issuance costs | ' | ' | 922 | 1,533 |
Amortization of debt discount | 14,504 | 0 | 7,802 | 12,971 |
Debt Instrument, Interest Expense, Total | ' | ' | $10,521 | $17,499 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Cash flow hedge instrument term, maximum | '12 months | ' |
Cumulative unrealized loss on cash flow derivative instruments in accumulated other comprehensive loss | ($5.80) | $2.90 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Schedule Of The Fair Values Of Derivative Instruments) (Details) (Cash Flow Hedging [Member], Foreign Exchange Contract [Member], Forward Contracts [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Asset Derivatives | ' | ' |
Asset derivatives | $496 | $4,559 |
Designated as Hedging Instrument [Member] | Accrued Expenses and Other Current Liabilities [Member] | ' | ' |
Liability Derivatives | ' | ' |
Liability derivatives | 6,675 | 1,578 |
Not Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ' | ' |
Asset Derivatives | ' | ' |
Asset derivatives | 1,557 | 393 |
Not Designated as Hedging Instrument [Member] | Accrued Expenses and Other Current Liabilities [Member] | ' | ' |
Liability Derivatives | ' | ' |
Liability derivatives | $389 | $165 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Schedule Of Effect Of Derivative Instruments On Financial Performance) (Details) (Foreign Exchange Contract [Member], Forward Contracts [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Not Designated as Hedging Instrument [Member] | Other Income (Expense) [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain Recognized in Income on Derivative | $2,626 | $264 | $1,064 | $1,991 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of (Loss)/Gain Recognized in Other Comprehensive (Loss) Income (Effective Portion) | -8,309 | 5,158 | -8,645 | 2,175 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Operating Expense [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive (Loss) Income (Effective Portion) | $1,500 | ($1,262) | $4,448 | ($3,574) |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Schedule Of Net Notional Foreign Currency Forward Contracts Outstanding) (Details) | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | AUD | CAD | CHF | CNY | DKK | EUR (€) | GBP (£) | HKD | INR | JPY (¥) | NZD | SGD |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net notional foreign currency forward contracts outstanding | 8,067 | 6,632 | 21,050 | 84,500 | 9,900 | € 24,814 | £ 24,700 | 49,348 | 854,284 | ¥ 285,522 | 300 | 12,300 |
Comprehensive_Income_Changes_i
Comprehensive Income (Changes in Accumulated Other Comprehensive Loss by Component) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | $4,951 | ' |
Other comprehensive (loss) income before reclassifications | ' | ' | -20,041 | ' |
Amounts reclassified from accumulated other comprehensive (loss) income | ' | ' | -5,409 | ' |
Other comprehensive (loss) income | -22,251 | 13,753 | -25,450 | 4,483 |
Balance at September 30, 2014 | -20,499 | ' | -20,499 | ' |
Foreign Currency [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | 5,458 | ' |
Other comprehensive (loss) income before reclassifications | ' | ' | -15,617 | ' |
Amounts reclassified from accumulated other comprehensive (loss) income | ' | ' | 0 | ' |
Other comprehensive (loss) income | ' | ' | -15,617 | ' |
Balance at September 30, 2014 | -10,159 | ' | -10,159 | ' |
Unrealized Gain on Available-for-sale Securities [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | 1,238 | ' |
Other comprehensive (loss) income before reclassifications | ' | ' | -182 | ' |
Amounts reclassified from accumulated other comprehensive (loss) income | ' | ' | -961 | ' |
Other comprehensive (loss) income | ' | ' | -1,143 | ' |
Balance at September 30, 2014 | 95 | ' | 95 | ' |
Unrealized Gain on Derivative Instruments [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | 2,852 | ' |
Other comprehensive (loss) income before reclassifications | ' | ' | -4,197 | ' |
Amounts reclassified from accumulated other comprehensive (loss) income | ' | ' | -4,448 | ' |
Other comprehensive (loss) income | ' | ' | -8,645 | ' |
Balance at September 30, 2014 | -5,793 | ' | -5,793 | ' |
Other Comprehensive Loss on Pension Liability [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance at December 31, 2013 | ' | ' | -4,597 | ' |
Other comprehensive (loss) income before reclassifications | ' | ' | -45 | ' |
Amounts reclassified from accumulated other comprehensive (loss) income | ' | ' | 0 | ' |
Other comprehensive (loss) income | ' | ' | -45 | ' |
Balance at September 30, 2014 | ($4,642) | ' | ($4,642) | ' |
Comprehensive_Income_Reclassif
Comprehensive Income (Reclassifications out of Accumulated Other Comprehensive Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Unrealized net gains on available-for-sale securities | ($2,235) | $1,400 | ($6,002) | $49 | ||
Unrealized net gains on cash flow hedges | -564,412 | -501,431 | -1,660,903 | -1,530,064 | ||
Net income | 47,532 | 76,730 | 156,495 | 200,879 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Net income | 1,596 | ' | 5,409 | ' | ||
Unrealized Gain on Available-for-sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Unrealized net gains on available-for-sale securities | 96 | ' | 961 | ' | ||
Unrealized Gain on Derivative Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Unrealized net gains on cash flow hedges | $1,500 | [1] | ' | $4,448 | [1] | ' |
[1] | * Operating expenses amounts allocated to Research and development, Sales, marketing and services, and General and administrative are not individually significant. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' |
Net unrecognized tax benefit | $61,300,000 | ' | ' | $61,300,000 | ' | $63,800,000 |
Income tax interest and penalties accrued | 600,000 | ' | ' | 600,000 | ' | ' |
Decrease in unrecognized tax benefits during the period | ' | 9,300,000 | ' | ' | ' | ' |
Deferred tax assets | 140,400,000 | ' | ' | 140,400,000 | ' | ' |
Effective tax rate | 1.40% | ' | 15.50% | 6.90% | 11.10% | ' |
Unrecognized tax benefits offsetting against short-term tax assets | 1,700,000 | ' | ' | 1,700,000 | ' | ' |
Unrecognized tax benefits offsetting against long-term deferred tax assets | $28,700,000 | ' | ' | $28,700,000 | ' | ' |
U.S. federal statutory rate | ' | ' | ' | 35.00% | ' | ' |
Treasury_Stock_Details
Treasury Stock (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 30, 2014 | Apr. 30, 2014 | Apr. 30, 2014 | Oct. 31, 2014 | |
Senior Notes Due 2019 [Member] | Privately Negotiated Transaction [Member] | Purchase From Accelerated Share Repurchase [Member] | Subsequent Event [Member] | |||||
Purchase From Accelerated Share Repurchase [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase program, authorized amount | ' | ' | $5,400,000,000 | ' | ' | ' | ' | ' |
Amount used to repurchase stock | ' | ' | 1,600,986,000 | 156,334,000 | ' | 101,000,000 | ' | ' |
Available to repurchase common stock | ' | ' | 328,300,000 | ' | ' | ' | ' | ' |
Amount expended on share repurchases in open market transactions | 99,900,000 | 55,300,000 | 99,900,000 | 156,300,000 | ' | ' | ' | ' |
Stock repurchased during period, value | ' | ' | ' | ' | 1,500,000,000 | ' | 1,400,000,000 | ' |
Stock repurchased during the period, shares | ' | ' | ' | ' | 1,700,000 | ' | 19,200,000 | 2,630,333 |
Stock repurchased during period, percent of all shares included in agreement | ' | ' | ' | ' | ' | ' | 80.00% | ' |
Number of shares repurchased | 1,434,400 | 764,800 | 1,434,400 | 2,240,050 | ' | ' | ' | ' |
Average per share price on share repurchases in open market transactions (in dollars per share) | $69.71 | $72.30 | $69.71 | $69.79 | ' | ' | ' | ' |
Number of shares withheld to satisfy minimum tax withholding obligations | 75,797 | 43,035 | 470,567 | 389,369 | ' | ' | ' | ' |
Payment for tax withholding related to vested stock units | $4,900,000 | $2,900,000 | $27,800,000 | $27,700,000 | ' | ' | ' | ' |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | |||||
SSL Services [Member] | SSL Services [Member] | SSL Services [Member] | |||||||||
Loss Contingency, Information about Litigation Matters [Abstract] | ' | ' | ' | ' | ' | ' | ' | ||||
Final damages awarded, confirmed by court | ' | ' | ' | ' | $10,000,000 | ' | ' | ||||
Enhanced damages awarded | ' | ' | ' | ' | 5,000,000 | ' | ' | ||||
Prejudgment interest on damages award | ' | ' | ' | ' | 5,000,000 | ' | ' | ||||
Accrual for estimated damages and related interest | $20,727,000 | [1] | $0 | [1] | $20,727,000 | [1] | $0 | [1] | ' | $20,727,000 | $20,727,000 |
[1] | Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments. |
Restructuring_Narrative_Detail
Restructuring (Narrative) (Details) (2014 Restructuring Program [Member], USD $) | 9 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
position | Employee Severance and Related Costs [Member] | Employee Severance and Related Costs [Member] | |
Minimum [Member] | Maximum [Member] | ||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Number of full-time positions eliminated | 265 | ' | ' |
Total expected restructuring cost | ' | $19 | $22 |
Restructuring_Restructuring_Ch
Restructuring (Restructuring Charges by Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring | $3,124 | [1] | $0 | [1] | $17,285 | [1] | $0 | [1] |
2014 Restructuring Program [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring | 3,124 | ' | 17,285 | ' | ||||
2014 Restructuring Program [Member] | Enterprise and Service Provider Division [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring | 3,122 | ' | 11,093 | ' | ||||
2014 Restructuring Program [Member] | SaaS Division [Member] | ' | ' | ' | ' | ||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ||||
Restructuring | $2 | ' | $6,192 | ' | ||||
[1] | Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments. |
Restructuring_Activity_in_Rest
Restructuring (Activity in Restructuring Accruals) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ||||
Balance at January 1, 2014 | ' | ' | $0 | ' | ||||
Employee severance and related costs | 3,124 | [1] | 0 | [1] | 17,285 | [1] | 0 | [1] |
Balance at September 30, 2014 | 2,968 | ' | 2,968 | ' | ||||
Employee Severance and Related Costs [Member] | ' | ' | ' | ' | ||||
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ||||
Balance at September 30, 2014 | 2,968 | ' | 2,968 | ' | ||||
2014 Restructuring Program [Member] | Employee Severance and Related Costs [Member] | ' | ' | ' | ' | ||||
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ||||
Employee severance and related costs | ' | ' | 17,285 | ' | ||||
Payments | ' | ' | ($14,317) | ' | ||||
[1] | Represents expenses presented to management on a consolidated basis only and not allocated to the operating segments. |
Restructuring_Restructuring_Ac
Restructuring (Restructuring Accruals by Segment) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restructuring Cost and Reserve [Line Items] | ' | ' |
Total restructuring liability | $2,968 | $0 |
Enterprise and Service Provider Division [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Total restructuring liability | 2,968 | ' |
SaaS Division [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Total restructuring liability | $0 | ' |