|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended September 30, 2015
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from_________ to_________
|
Delaware
|
|
77-0422528
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
1133 Innovation Way
|
|
|
Sunnyvale, California
|
|
94089
|
(Address of principal executive offices)
|
|
(Zip code)
|
(408) 745-2000
|
||
(
Registrant's telephone number, including area code)
|
Large accelerated filer
x
|
Accelerated filer
o
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
|
|
(Do not check if a smaller reporting company)
|
|
|
Table of Contents
|
|
|
|
|
Page
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net revenues:
|
|
|
|
|
|
|
|
||||||||
Product
|
$
|
925.4
|
|
|
$
|
809.5
|
|
|
$
|
2,589.2
|
|
|
$
|
2,614.7
|
|
Service
|
323.2
|
|
|
316.4
|
|
|
949.0
|
|
|
910.8
|
|
||||
Total net revenues
|
1,248.6
|
|
|
1,125.9
|
|
|
3,538.2
|
|
|
3,525.5
|
|
||||
Cost of revenues:
|
|
|
|
|
|
|
|
||||||||
Product
|
322.6
|
|
|
290.0
|
|
|
923.1
|
|
|
975.9
|
|
||||
Service
|
128.6
|
|
|
121.1
|
|
|
378.9
|
|
|
366.5
|
|
||||
Total cost of revenues
|
451.2
|
|
|
411.1
|
|
|
1,302.0
|
|
|
1,342.4
|
|
||||
Gross margin
|
797.4
|
|
|
714.8
|
|
|
2,236.2
|
|
|
2,183.1
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Research and development
|
247.0
|
|
|
253.2
|
|
|
747.3
|
|
|
772.7
|
|
||||
Sales and marketing
|
235.3
|
|
|
249.2
|
|
|
687.9
|
|
|
780.6
|
|
||||
General and administrative
|
57.1
|
|
|
55.0
|
|
|
168.6
|
|
|
190.5
|
|
||||
Restructuring and other (benefits) charges
|
—
|
|
|
(15.0
|
)
|
|
(0.5
|
)
|
|
157.2
|
|
||||
Total operating expenses
|
539.4
|
|
|
542.4
|
|
|
1,603.3
|
|
|
1,901.0
|
|
||||
Operating income
|
258.0
|
|
|
172.4
|
|
|
632.9
|
|
|
282.1
|
|
||||
Other (expense) income, net
|
(8.4
|
)
|
|
(6.8
|
)
|
|
(41.3
|
)
|
|
326.0
|
|
||||
Income before income taxes
|
249.6
|
|
|
165.6
|
|
|
591.6
|
|
|
608.1
|
|
||||
Income tax provision
|
51.9
|
|
|
62.0
|
|
|
155.7
|
|
|
172.8
|
|
||||
Net income
|
$
|
197.7
|
|
|
$
|
103.6
|
|
|
$
|
435.9
|
|
|
$
|
435.3
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.52
|
|
|
$
|
0.23
|
|
|
$
|
1.11
|
|
|
$
|
0.93
|
|
Diluted
|
$
|
0.51
|
|
|
$
|
0.23
|
|
|
$
|
1.09
|
|
|
$
|
0.91
|
|
Shares used in computing net income per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
382.8
|
|
|
448.4
|
|
|
393.2
|
|
|
468.1
|
|
||||
Diluted
|
389.2
|
|
|
454.8
|
|
|
401.2
|
|
|
477.0
|
|
||||
Cash dividends declared per common stock
|
$
|
0.10
|
|
|
$
|
0.10
|
|
|
$
|
0.30
|
|
|
$
|
0.10
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Net income
|
$
|
197.7
|
|
|
$
|
103.6
|
|
|
$
|
435.9
|
|
|
$
|
435.3
|
|
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Unrealized (losses) gains on available-for-sale
securities, net of tax (provisions) benefit of
($3.7) and ($2.1) during the three and nine
months ended September 30, 2015, respectively,
and $2.0 and ($26.2) for the corresponding
periods of the fiscal year ended December 31,
2014 ("fiscal 2014"), respectively
|
(3.6
|
)
|
|
(4.4
|
)
|
|
4.6
|
|
|
44.0
|
|
||||
Reclassification adjustment for realized net
gains on available-for-sale securities included
in net income, net of tax provisions of zero
during the three and nine months ended
September 30, 2015, respectively, and $0.1 and
$60.5 for the corresponding periods of fiscal
2014, respectively
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.6
|
)
|
|
(104.0
|
)
|
||||
Net change on available-for-sale securities, net
of taxes
|
(3.7
|
)
|
|
(4.6
|
)
|
|
4.0
|
|
|
(60.0
|
)
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
||||||||
Unrealized (losses) gain on cash flow hedges, net
of tax benefit (provisions) of $0.5 and ($0.2)
during the three and nine months ended
September 30, 2015, respectively, and zero and
($1.3) for the corresponding periods of fiscal
2014, respectively
|
(1.4
|
)
|
|
(2.8
|
)
|
|
(5.4
|
)
|
|
0.4
|
|
||||
Reclassification adjustment for realized net losses
(gains) on cash flow hedges included in net
income, net of tax (benefit) provisions of ($0.1)
and zero during the three and nine months
ended September 30, 2015, respectively, and
$0.5 and $0.8 for the corresponding periods of
fiscal 2014, respectively
|
1.8
|
|
|
(1.0
|
)
|
|
8.7
|
|
|
(4.2
|
)
|
||||
Net change on cash flow hedges, net of taxes
|
0.4
|
|
|
(3.8
|
)
|
|
3.3
|
|
|
(3.8
|
)
|
||||
Change in foreign currency translation adjustments
|
(8.8
|
)
|
|
(7.7
|
)
|
|
(12.9
|
)
|
|
(3.8
|
)
|
||||
Other comprehensive loss, net of tax
|
(12.1
|
)
|
|
(16.1
|
)
|
|
(5.6
|
)
|
|
(67.6
|
)
|
||||
Comprehensive income
|
$
|
185.6
|
|
|
$
|
87.5
|
|
|
$
|
430.3
|
|
|
$
|
367.7
|
|
|
September 30,
2015 |
|
December 31,
2014 |
||||
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,453.5
|
|
|
$
|
1,639.6
|
|
Short-term investments
|
529.9
|
|
|
332.2
|
|
||
Accounts receivable, net of allowances
|
577.5
|
|
|
598.9
|
|
||
Deferred tax assets, net
|
198.4
|
|
|
147.0
|
|
||
Prepaid expenses and other current assets
|
138.8
|
|
|
239.9
|
|
||
Total current assets
|
2,898.1
|
|
|
2,957.6
|
|
||
Property and equipment, net
|
959.9
|
|
|
904.3
|
|
||
Long-term investments
|
1,263.6
|
|
|
1,133.1
|
|
||
Restricted cash and investments
|
33.9
|
|
|
46.0
|
|
||
Purchased intangible assets, net
|
39.2
|
|
|
62.4
|
|
||
Goodwill
|
2,981.3
|
|
|
2,981.5
|
|
||
Other long-term assets
|
329.9
|
|
|
303.9
|
|
||
Total assets
|
$
|
8,505.9
|
|
|
$
|
8,388.8
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term debt
|
$
|
299.9
|
|
|
$
|
—
|
|
Accounts payable
|
209.1
|
|
|
234.6
|
|
||
Accrued compensation
|
193.7
|
|
|
225.0
|
|
||
Deferred revenue
|
814.4
|
|
|
780.8
|
|
||
Other accrued liabilities
|
217.8
|
|
|
273.0
|
|
||
Total current liabilities
|
1,734.9
|
|
|
1,513.4
|
|
||
Long-term debt
|
1,648.7
|
|
|
1,349.0
|
|
||
Long-term deferred revenue
|
310.5
|
|
|
294.9
|
|
||
Long-term income taxes payable
|
185.0
|
|
|
177.5
|
|
||
Other long-term liabilities
|
198.7
|
|
|
134.9
|
|
||
Total liabilities
|
4,077.8
|
|
|
3,469.7
|
|
||
Commitments and contingencies (Note 15)
|
|
|
|
|
|
||
Stockholders' equity:
|
|
|
|
||||
Convertible preferred stock, $0.00001 par value; 10.0 shares authorized; none
issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock, $0.00001 par value; 1,000.0 shares authorized; 384.8 shares and
416.2 shares issued and outstanding as of September 30, 2015 and December 31,
2014, respectively
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
8,334.3
|
|
|
8,794.0
|
|
||
Accumulated other comprehensive loss
|
(19.4
|
)
|
|
(13.8
|
)
|
||
Accumulated deficit
|
(3,886.8
|
)
|
|
(3,861.1
|
)
|
||
Total stockholders' equity
|
4,428.1
|
|
|
4,919.1
|
|
||
Total liabilities and stockholders' equity
|
$
|
8,505.9
|
|
|
$
|
8,388.8
|
|
|
Nine Months Ended September 30,
|
||||||
|
2015
|
|
2014
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
435.9
|
|
|
$
|
435.3
|
|
Adjustments to reconcile net income to net cash provided by operating
activities:
|
|
|
|
||||
Share-based compensation expense
|
161.3
|
|
|
185.4
|
|
||
Depreciation, amortization, and accretion
|
131.5
|
|
|
141.9
|
|
||
Restructuring and other (benefits) charges
|
(4.0
|
)
|
|
179.4
|
|
||
Deferred income taxes
|
10.0
|
|
|
(85.4
|
)
|
||
Gain on investments, net
|
(6.8
|
)
|
|
(165.1
|
)
|
||
Gain on legal settlement, net
|
—
|
|
|
(121.1
|
)
|
||
Excess tax benefits from share-based compensation
|
(7.4
|
)
|
|
(8.8
|
)
|
||
Loss on disposal of fixed assets
|
0.4
|
|
|
1.9
|
|
||
Changes in operating assets and liabilities, net of effects from acquisitions:
|
|
|
|
||||
Accounts receivable, net
|
(15.7
|
)
|
|
(33.2
|
)
|
||
Prepaid expenses and other assets
|
8.8
|
|
|
(19.9
|
)
|
||
Accounts payable
|
(21.8
|
)
|
|
49.9
|
|
||
Accrued compensation
|
(29.0
|
)
|
|
(78.3
|
)
|
||
Income taxes payable
|
108.2
|
|
|
86.1
|
|
||
Other accrued liabilities
|
(45.0
|
)
|
|
(130.5
|
)
|
||
Deferred revenue
|
49.1
|
|
|
40.9
|
|
||
Net cash provided by operating activities
|
775.5
|
|
|
478.5
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of property and equipment
|
(154.9
|
)
|
|
(141.0
|
)
|
||
Purchases of available-for-sale investments
|
(1,147.6
|
)
|
|
(1,970.5
|
)
|
||
Proceeds from sales of available-for-sale investments
|
625.9
|
|
|
1,918.7
|
|
||
Proceeds from maturities of available-for-sale investments
|
197.4
|
|
|
339.0
|
|
||
Purchases of trading investments
|
(3.8
|
)
|
|
(3.5
|
)
|
||
Proceeds from sales of privately-held investments
|
10.3
|
|
|
2.5
|
|
||
Purchases of privately-held investments
|
(5.4
|
)
|
|
(12.3
|
)
|
||
Payments for business acquisitions, net of cash and cash equivalents acquired
|
(3.5
|
)
|
|
(27.1
|
)
|
||
Changes in restricted cash
|
11.6
|
|
|
45.0
|
|
||
Net cash (used in) provided by investing activities
|
(470.0
|
)
|
|
150.8
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from issuance of common stock
|
97.0
|
|
|
157.6
|
|
||
Purchases and retirement of common stock
|
(1,057.6
|
)
|
|
(1,761.0
|
)
|
||
Issuance of long-term debt, net
|
594.6
|
|
|
346.5
|
|
||
Payment for capital lease obligation
|
0.4
|
|
|
(0.4
|
)
|
||
Customer financing arrangements
|
—
|
|
|
0.8
|
|
||
Excess tax benefits from share-based compensation
|
7.4
|
|
|
8.8
|
|
||
Payment of cash dividends
|
(118.0
|
)
|
|
(43.8
|
)
|
||
Net cash used in financing activities
|
(476.2
|
)
|
|
(1,291.5
|
)
|
||
Effect of foreign currency exchange rates on cash and cash equivalents
|
(15.4
|
)
|
|
(5.9
|
)
|
||
Net decrease in cash and cash equivalents
|
(186.1
|
)
|
|
(668.1
|
)
|
||
Cash and cash equivalents at beginning of period
|
1,639.6
|
|
|
2,284.0
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,453.5
|
|
|
$
|
1,615.9
|
|
|
Amortized
Cost
|
|
Gross Unrealized
Gains
|
|
Gross Unrealized
Losses
|
|
Estimated Fair
Value
|
||||||||
As of September 30, 2015
|
|
|
|
|
|
|
|
||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
||||||||
Asset-backed securities
|
$
|
324.2
|
|
|
$
|
0.1
|
|
|
$
|
(0.2
|
)
|
|
$
|
324.1
|
|
Certificates of deposit
|
3.8
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
||||
Commercial paper
|
9.4
|
|
|
—
|
|
|
—
|
|
|
9.4
|
|
||||
Corporate debt securities
|
935.8
|
|
|
0.7
|
|
|
(1.9
|
)
|
|
934.6
|
|
||||
Foreign government debt securities
|
16.5
|
|
|
—
|
|
|
—
|
|
|
16.5
|
|
||||
Government-sponsored enterprise obligations
|
214.1
|
|
|
0.1
|
|
|
—
|
|
|
214.2
|
|
||||
U.S. government securities
|
265.3
|
|
|
0.2
|
|
|
(0.1
|
)
|
|
265.4
|
|
||||
Total fixed income securities
|
1,769.1
|
|
|
1.1
|
|
|
(2.2
|
)
|
|
1,768.0
|
|
||||
Money market funds
|
196.0
|
|
|
—
|
|
|
—
|
|
|
196.0
|
|
||||
Mutual funds
|
3.7
|
|
|
0.1
|
|
|
—
|
|
|
3.8
|
|
||||
Publicly-traded equity securities
|
8.0
|
|
|
0.7
|
|
|
—
|
|
|
8.7
|
|
||||
Total available-for-sale securities
|
1,976.8
|
|
|
1.9
|
|
|
(2.2
|
)
|
|
1,976.5
|
|
||||
Trading securities in mutual funds
(1)
|
16.8
|
|
|
—
|
|
|
—
|
|
|
16.8
|
|
||||
Total
|
$
|
1,993.6
|
|
|
$
|
1.9
|
|
|
$
|
(2.2
|
)
|
|
$
|
1,993.3
|
|
|
|
|
|
|
|
|
|
||||||||
Reported as:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
166.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
166.3
|
|
Restricted investments
|
33.4
|
|
|
0.1
|
|
|
—
|
|
|
33.5
|
|
||||
Short-term investments
|
529.1
|
|
|
0.9
|
|
|
(0.1
|
)
|
|
529.9
|
|
||||
Long-term investments
|
1,264.8
|
|
|
0.9
|
|
|
(2.1
|
)
|
|
1,263.6
|
|
||||
Total
|
$
|
1,993.6
|
|
|
$
|
1.9
|
|
|
$
|
(2.2
|
)
|
|
$
|
1,993.3
|
|
(1)
|
Balance consists of the Company's non-qualified deferred compensation plan assets.
|
|
Amortized
Cost
|
|
Gross Unrealized
Gains
|
|
Gross Unrealized
Losses
|
|
Estimated Fair
Value
|
||||||||
As of December 31, 2014
|
|
|
|
|
|
|
|
||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
||||||||
Asset-backed securities
|
$
|
269.3
|
|
|
$
|
—
|
|
|
$
|
(0.3
|
)
|
|
$
|
269.0
|
|
Certificates of deposit
|
10.6
|
|
|
—
|
|
|
—
|
|
|
10.6
|
|
||||
Commercial paper
|
20.3
|
|
|
—
|
|
|
—
|
|
|
20.3
|
|
||||
Corporate debt securities
|
738.6
|
|
|
0.5
|
|
|
(1.1
|
)
|
|
738.0
|
|
||||
Foreign government debt securities
|
24.6
|
|
|
—
|
|
|
—
|
|
|
24.6
|
|
||||
Government-sponsored enterprise obligations
|
162.2
|
|
|
—
|
|
|
(0.1
|
)
|
|
162.1
|
|
||||
U.S. government securities
|
246.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
246.0
|
|
||||
Total fixed income securities
|
1,471.7
|
|
|
0.5
|
|
|
(1.6
|
)
|
|
1,470.6
|
|
||||
Money market funds
|
594.2
|
|
|
—
|
|
|
—
|
|
|
594.2
|
|
||||
Mutual funds
|
3.9
|
|
|
0.1
|
|
|
—
|
|
|
4.0
|
|
||||
Publicly-traded equity securities
|
2.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
2.0
|
|
||||
Total available-for-sale securities
|
2,071.9
|
|
|
0.6
|
|
|
(1.7
|
)
|
|
2,070.8
|
|
||||
Trading securities in mutual funds
(1)
|
16.3
|
|
|
—
|
|
|
—
|
|
|
16.3
|
|
||||
Total
|
$
|
2,088.2
|
|
|
$
|
0.6
|
|
|
$
|
(1.7
|
)
|
|
$
|
2,087.1
|
|
|
|
|
|
|
|
|
|
||||||||
Reported as:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
576.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
576.6
|
|
Restricted investments
|
45.2
|
|
|
—
|
|
|
—
|
|
|
45.2
|
|
||||
Short-term investments
|
332.2
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
332.2
|
|
||||
Long-term investments
|
1,134.2
|
|
|
0.4
|
|
|
(1.5
|
)
|
|
1,133.1
|
|
||||
Total
|
$
|
2,088.2
|
|
|
$
|
0.6
|
|
|
$
|
(1.7
|
)
|
|
$
|
2,087.1
|
|
(1)
|
Balance consists of the Company's non-qualified deferred compensation plan assets.
|
|
Amortized
Cost
|
|
Gross Unrealized
Gains
|
|
Gross Unrealized
Losses
|
|
Estimated Fair
Value
|
||||||||
Due in less than one year
|
$
|
504.2
|
|
|
$
|
0.3
|
|
|
$
|
(0.1
|
)
|
|
$
|
504.4
|
|
Due between one and five years
|
1,264.9
|
|
|
0.8
|
|
|
(2.1
|
)
|
|
1,263.6
|
|
||||
Total
|
$
|
1,769.1
|
|
|
$
|
1.1
|
|
|
$
|
(2.2
|
)
|
|
$
|
1,768.0
|
|
|
Less than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
||||||||||||
As of September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-backed securities
(1)
|
$
|
188.5
|
|
|
$
|
(0.2
|
)
|
|
$
|
34.2
|
|
|
$
|
—
|
|
|
$
|
222.7
|
|
|
$
|
(0.2
|
)
|
Corporate debt securities
|
522.0
|
|
|
(1.8
|
)
|
|
17.5
|
|
|
(0.1
|
)
|
|
539.5
|
|
|
(1.9
|
)
|
||||||
Foreign government debt securities
(1)(2)
|
13.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13.5
|
|
|
—
|
|
||||||
Government-sponsored enterprise obligations
(1)(2)
|
41.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41.8
|
|
|
—
|
|
||||||
U.S. government securities
(1)
|
119.5
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
119.5
|
|
|
(0.1
|
)
|
||||||
Total fixed income securities
|
885.3
|
|
|
(2.1
|
)
|
|
51.7
|
|
|
(0.1
|
)
|
|
937.0
|
|
|
(2.2
|
)
|
||||||
Total available-for-sale securities
|
$
|
885.3
|
|
|
$
|
(2.1
|
)
|
|
$
|
51.7
|
|
|
$
|
(0.1
|
)
|
|
$
|
937.0
|
|
|
$
|
(2.2
|
)
|
|
Less than 12 Months
|
|
12 Months or Greater
|
|
Total
|
||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
|
Fair
Value
|
|
Unrealized
Loss
|
||||||||||||
As of December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed income securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asset-backed securities
|
$
|
221.9
|
|
|
$
|
(0.3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
221.9
|
|
|
$
|
(0.3
|
)
|
Corporate debt securities
|
515.9
|
|
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|
515.9
|
|
|
(1.1
|
)
|
||||||
Foreign government debt securities
(1)
|
24.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24.6
|
|
|
—
|
|
||||||
Government-sponsored enterprise obligations
|
113.8
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
113.8
|
|
|
(0.1
|
)
|
||||||
U.S. government securities
|
189.0
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
189.0
|
|
|
(0.1
|
)
|
||||||
Total fixed income securities
|
1,065.2
|
|
|
(1.6
|
)
|
|
—
|
|
|
—
|
|
|
1,065.2
|
|
|
(1.6
|
)
|
||||||
Publicly-traded equity securities
|
2.0
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
2.0
|
|
|
(0.1
|
)
|
||||||
Total available-for-sale securities
|
$
|
1,067.2
|
|
|
$
|
(1.7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,067.2
|
|
|
$
|
(1.7
|
)
|
(1)
|
Balances less than 12 months include investments that were in an immaterial unrealized loss position as of
December 31, 2014
.
|
|
Fair Value Measurements at September 30, 2015 Using:
|
|
|
||||||||||||
|
Quoted Prices in
Active Markets For
Identical Assets
|
|
Significant Other
Observable
Remaining Inputs
|
|
Significant Other
Unobservable
Remaining Inputs
|
|
|
||||||||
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Total
|
||||||||
Assets measured at fair value:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Asset-backed securities
|
$
|
—
|
|
|
$
|
324.1
|
|
|
$
|
—
|
|
|
$
|
324.1
|
|
Certificates of deposit
|
—
|
|
|
3.8
|
|
|
—
|
|
|
3.8
|
|
||||
Commercial paper
|
—
|
|
|
9.4
|
|
|
—
|
|
|
9.4
|
|
||||
Corporate debt securities
|
—
|
|
|
934.6
|
|
|
—
|
|
|
934.6
|
|
||||
Foreign government debt securities
|
—
|
|
|
16.5
|
|
|
—
|
|
|
16.5
|
|
||||
Government-sponsored enterprise obligations
|
—
|
|
|
214.2
|
|
|
—
|
|
|
214.2
|
|
||||
Money market funds
(1)
|
196.0
|
|
|
—
|
|
|
—
|
|
|
196.0
|
|
||||
Mutual funds
(2)
|
3.8
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
||||
Publicly-traded equity securities
|
8.7
|
|
|
—
|
|
|
—
|
|
|
8.7
|
|
||||
U.S. government securities
|
265.4
|
|
|
—
|
|
|
—
|
|
|
265.4
|
|
||||
Total available-for-sale securities
|
473.9
|
|
|
1,502.6
|
|
|
—
|
|
|
1,976.5
|
|
||||
Trading securities in mutual funds
(3)
|
16.8
|
|
|
—
|
|
|
—
|
|
|
16.8
|
|
||||
Privately-held debt and redeemable preferred stock
securities
|
—
|
|
|
—
|
|
|
48.9
|
|
|
48.9
|
|
||||
Derivative assets:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
||||
Total assets measured at fair value
|
$
|
490.7
|
|
|
$
|
1,503.2
|
|
|
$
|
48.9
|
|
|
$
|
2,042.8
|
|
Liabilities measured at fair value:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
(1.3
|
)
|
|
$
|
—
|
|
|
$
|
(1.3
|
)
|
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
(1.3
|
)
|
|
$
|
—
|
|
|
$
|
(1.3
|
)
|
|
|
|
|
|
|
|
|
||||||||
Total assets measured at fair value, reported as:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
166.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
166.3
|
|
Restricted investments
|
33.5
|
|
|
—
|
|
|
—
|
|
|
33.5
|
|
||||
Short-term investments
|
135.1
|
|
|
394.8
|
|
|
—
|
|
|
529.9
|
|
||||
Long-term investments
|
155.8
|
|
|
1,107.8
|
|
|
—
|
|
|
1,263.6
|
|
||||
Prepaid expenses and other current assets
|
—
|
|
|
0.6
|
|
|
—
|
|
|
0.6
|
|
||||
Other long-term assets
|
—
|
|
|
—
|
|
|
48.9
|
|
|
48.9
|
|
||||
Total assets measured at fair value
|
$
|
490.7
|
|
|
$
|
1,503.2
|
|
|
$
|
48.9
|
|
|
$
|
2,042.8
|
|
|
|
|
|
|
|
|
|
||||||||
Total liabilities measured at fair value, reported as:
|
|
|
|
|
|
|
|
||||||||
Other accrued liabilities
|
$
|
—
|
|
|
$
|
(1.3
|
)
|
|
$
|
—
|
|
|
$
|
(1.3
|
)
|
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
(1.3
|
)
|
|
$
|
—
|
|
|
$
|
(1.3
|
)
|
(1)
|
Balance includes
$29.7 million
of restricted investments measured at fair market value related to the Company's D&O Trust and acquisition-related escrows.
|
(2)
|
Balance relates to restricted investments measured at fair market value related to the Company's India Gratuity Trust.
|
(3)
|
Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets.
|
|
Fair Value Measurements at December 31, 2014 Using:
|
|
|
||||||||||||
|
Quoted Prices in
Active Markets For
Identical Assets
|
|
Significant Other
Observable
Remaining Inputs
|
|
Significant Other
Unobservable
Remaining Inputs
|
|
|
||||||||
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
|
Total
|
||||||||
Assets measured at fair value:
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
||||||||
Asset-backed securities
|
$
|
—
|
|
|
$
|
269.0
|
|
|
$
|
—
|
|
|
$
|
269.0
|
|
Certificates of deposit
|
—
|
|
|
10.6
|
|
|
—
|
|
|
10.6
|
|
||||
Commercial paper
|
—
|
|
|
20.3
|
|
|
—
|
|
|
20.3
|
|
||||
Corporate debt securities
|
—
|
|
|
738.0
|
|
|
—
|
|
|
738.0
|
|
||||
Foreign government debt securities
|
—
|
|
|
24.6
|
|
|
—
|
|
|
24.6
|
|
||||
Government-sponsored enterprise obligations
|
—
|
|
|
162.1
|
|
|
—
|
|
|
162.1
|
|
||||
Money market funds
(1)
|
594.2
|
|
|
—
|
|
|
—
|
|
|
594.2
|
|
||||
Mutual funds
(2)
|
4.0
|
|
|
—
|
|
|
—
|
|
|
4.0
|
|
||||
Publicly-traded equity securities
|
2.0
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
||||
U.S. government securities
|
246.0
|
|
|
—
|
|
|
—
|
|
|
246.0
|
|
||||
Total available-for-sale securities
|
846.2
|
|
|
1,224.6
|
|
|
—
|
|
|
2,070.8
|
|
||||
Trading securities in mutual funds
(3)
|
16.3
|
|
|
—
|
|
|
—
|
|
|
16.3
|
|
||||
Privately-held debt and redeemable preferred stock
securities
|
—
|
|
|
—
|
|
|
47.5
|
|
|
47.5
|
|
||||
Derivative assets:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
||||
Total assets measured at fair value
|
$
|
862.5
|
|
|
$
|
1,224.7
|
|
|
$
|
47.5
|
|
|
$
|
2,134.7
|
|
Liabilities measured at fair value:
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
$
|
—
|
|
|
$
|
(3.9
|
)
|
|
$
|
—
|
|
|
$
|
(3.9
|
)
|
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
(3.9
|
)
|
|
$
|
—
|
|
|
$
|
(3.9
|
)
|
|
|
|
|
|
|
|
|
||||||||
Total assets measured at fair value, reported as:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents
|
$
|
552.9
|
|
|
$
|
23.7
|
|
|
$
|
—
|
|
|
$
|
576.6
|
|
Restricted investments
|
45.2
|
|
|
—
|
|
|
—
|
|
|
45.2
|
|
||||
Short-term investments
|
87.0
|
|
|
245.2
|
|
|
—
|
|
|
332.2
|
|
||||
Long-term investments
|
177.4
|
|
|
955.7
|
|
|
—
|
|
|
1,133.1
|
|
||||
Prepaid expenses and other current assets
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
||||
Other long-term assets
|
—
|
|
|
—
|
|
|
47.5
|
|
|
47.5
|
|
||||
Total assets measured at fair value
|
$
|
862.5
|
|
|
$
|
1,224.7
|
|
|
$
|
47.5
|
|
|
$
|
2,134.7
|
|
|
|
|
|
|
|
|
|
||||||||
Total liabilities measured at fair value, reported as:
|
|
|
|
|
|
|
|
||||||||
Other accrued liabilities
|
$
|
—
|
|
|
$
|
(3.9
|
)
|
|
$
|
—
|
|
|
$
|
(3.9
|
)
|
Total liabilities measured at fair value
|
$
|
—
|
|
|
$
|
(3.9
|
)
|
|
$
|
—
|
|
|
$
|
(3.9
|
)
|
(1)
|
Balance includes
$41.3 million
of restricted investments measured at fair market value related to the Company's D&O Trust and acquisition-related escrows.
|
(2)
|
Balance relates to restricted investments measured at fair market value related to the Company's India Gratuity Trust.
|
(3)
|
Balance relates to investments measured at fair value related to the Company's non-qualified deferred compensation plan assets.
|
|
As of
|
||||||
|
September 30,
2015 |
|
December 31,
2014 |
||||
Cash flow hedges
|
$
|
116.3
|
|
|
$
|
160.7
|
|
Non-designated derivatives
|
55.9
|
|
|
78.0
|
|
||
Total
|
$
|
172.2
|
|
|
$
|
238.7
|
|
Balance as of December 31, 2014
|
$
|
2,981.5
|
|
Other
|
(0.2
|
)
|
|
Balance as of September 30, 2015
|
$
|
2,981.3
|
|
|
Gross
|
|
Accumulated
Amortization
|
|
Accumulated Impairments and
Other Charges
|
|
Net
|
||||||||
As of September 30, 2015
|
|
|
|
|
|
|
|
||||||||
Intangible assets with finite lives:
|
|
|
|
|
|
|
|
||||||||
Technologies and patents
|
$
|
567.7
|
|
|
$
|
(487.2
|
)
|
|
$
|
(49.9
|
)
|
|
$
|
30.6
|
|
Customer contracts, support agreements, and
related relationships
|
78.1
|
|
|
(67.2
|
)
|
|
(2.8
|
)
|
|
8.1
|
|
||||
Other
|
1.1
|
|
|
(0.6
|
)
|
|
—
|
|
|
0.5
|
|
||||
Total purchased intangible assets
|
$
|
646.9
|
|
|
$
|
(555.0
|
)
|
|
$
|
(52.7
|
)
|
|
$
|
39.2
|
|
|
|
|
|
|
|
|
|
||||||||
As of December 31, 2014
|
|
|
|
|
|
|
|
||||||||
Intangible assets with finite lives:
|
|
|
|
|
|
|
|
||||||||
Technologies and patents
|
$
|
567.7
|
|
|
$
|
(466.1
|
)
|
|
$
|
(49.9
|
)
|
|
$
|
51.7
|
|
Customer contracts, support agreements, and
related relationships
|
78.1
|
|
|
(65.2
|
)
|
|
(2.8
|
)
|
|
10.1
|
|
||||
Other
|
1.1
|
|
|
(0.5
|
)
|
|
—
|
|
|
0.6
|
|
||||
Total purchased intangible assets
|
$
|
646.9
|
|
|
$
|
(531.8
|
)
|
|
$
|
(52.7
|
)
|
|
$
|
62.4
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Cost of revenues
|
$
|
4.7
|
|
|
$
|
7.1
|
|
|
$
|
20.2
|
|
|
$
|
23.7
|
|
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Sales and marketing
|
0.7
|
|
|
1.1
|
|
|
2.1
|
|
|
3.2
|
|
||||
General and administrative
|
0.2
|
|
|
0.3
|
|
|
0.9
|
|
|
0.9
|
|
||||
Total operating expenses
|
0.9
|
|
|
1.4
|
|
|
3.0
|
|
|
4.1
|
|
||||
Total
|
$
|
5.6
|
|
|
$
|
8.5
|
|
|
$
|
23.2
|
|
|
$
|
27.8
|
|
|
As of
|
||||||
|
September 30,
2015 |
|
December 31,
2014 |
||||
Production materials
|
$
|
45.2
|
|
|
$
|
38.3
|
|
Finished goods
|
27.1
|
|
|
24.2
|
|
||
Inventories
|
$
|
72.3
|
|
|
$
|
62.5
|
|
|
As of
|
||||||
|
September 30,
2015 |
|
December 31,
2014 |
||||
Privately-held investments
|
$
|
91.3
|
|
|
$
|
89.9
|
|
Licensed software
|
7.7
|
|
|
8.6
|
|
||
Federal income tax receivable
|
28.9
|
|
|
20.0
|
|
||
Customer financing receivable
|
1.5
|
|
|
16.9
|
|
||
Inventory
|
8.7
|
|
|
8.0
|
|
||
Prepaid costs, deposits, and other
|
60.5
|
|
|
35.5
|
|
||
Promissory note in connection with the sale of Junos Pulse
|
125.0
|
|
|
125.0
|
|
||
Interest receivable in connection with Promissory note
|
6.3
|
|
|
—
|
|
||
Other long-term assets
|
$
|
329.9
|
|
|
$
|
303.9
|
|
Balance as of December 31, 2014
|
$
|
28.7
|
|
Provisions made during the period
|
20.8
|
|
|
Actual costs incurred during the period
|
(21.2
|
)
|
|
Balance as of September 30, 2015
|
$
|
28.3
|
|
|
As of
|
||||||
|
September 30,
2015 |
|
December 31,
2014 |
||||
Deferred product revenue:
|
|
|
|
||||
Undelivered product commitments and other product deferrals
|
$
|
221.7
|
|
|
$
|
180.3
|
|
Distributor inventory and other sell-through items
|
63.1
|
|
|
103.7
|
|
||
Deferred gross product revenue
|
284.8
|
|
|
284.0
|
|
||
Deferred cost of product revenue
|
(43.7
|
)
|
|
(58.4
|
)
|
||
Deferred product revenue, net
|
241.1
|
|
|
225.6
|
|
||
Deferred service revenue
|
883.8
|
|
|
850.1
|
|
||
Total
|
$
|
1,124.9
|
|
|
$
|
1,075.7
|
|
Reported as:
|
|
|
|
||||
Current
|
$
|
814.4
|
|
|
$
|
780.8
|
|
Long-term
|
310.5
|
|
|
294.9
|
|
||
Total
|
$
|
1,124.9
|
|
|
$
|
1,075.7
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Interest income
|
$
|
5.7
|
|
|
$
|
2.7
|
|
|
$
|
16.3
|
|
|
$
|
6.9
|
|
Interest expense
|
(21.6
|
)
|
|
(16.9
|
)
|
|
(61.9
|
)
|
|
(50.2
|
)
|
||||
Net gain on legal settlement
|
—
|
|
|
0.8
|
|
|
—
|
|
|
196.1
|
|
||||
Gain (loss) on investments
|
6.0
|
|
|
(1.9
|
)
|
|
6.8
|
|
|
165.1
|
|
||||
Other
|
1.5
|
|
|
8.5
|
|
|
(2.5
|
)
|
|
8.1
|
|
||||
Other (expense) income, net
|
$
|
(8.4
|
)
|
|
$
|
(6.8
|
)
|
|
$
|
(41.3
|
)
|
|
$
|
326.0
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Severance
|
$
|
—
|
|
|
$
|
7.1
|
|
|
$
|
0.4
|
|
|
$
|
45.6
|
|
Facilities
|
—
|
|
|
(25.0
|
)
|
|
(0.9
|
)
|
|
12.8
|
|
||||
Contract terminations
|
—
|
|
|
—
|
|
|
—
|
|
|
2.3
|
|
||||
Asset impairment and write-downs
|
(3.5
|
)
|
|
2.9
|
|
|
(3.5
|
)
|
|
118.7
|
|
||||
Total
|
$
|
(3.5
|
)
|
|
$
|
(15.0
|
)
|
|
$
|
(4.0
|
)
|
|
$
|
179.4
|
|
|
|
|
|
|
|
|
|
||||||||
Reported as:
|
|
|
|
|
|
|
|
||||||||
Cost of revenues
|
$
|
(3.5
|
)
|
|
$
|
—
|
|
|
$
|
(3.5
|
)
|
|
$
|
22.2
|
|
Restructuring and other (benefits) charges
|
—
|
|
|
(15.0
|
)
|
|
(0.5
|
)
|
|
157.2
|
|
||||
Total
|
$
|
(3.5
|
)
|
|
$
|
(15.0
|
)
|
|
$
|
(4.0
|
)
|
|
$
|
179.4
|
|
|
December 31,
2014 |
|
Charges
|
|
Cash
Payments
|
|
Non-cash
Settlements and
Other
|
|
September 30,
2015 |
||||||||||
Severance
|
$
|
9.4
|
|
|
$
|
0.4
|
|
|
$
|
(8.0
|
)
|
|
$
|
(1.8
|
)
|
|
$
|
—
|
|
Facilities
|
7.4
|
|
|
(0.9
|
)
|
|
(2.3
|
)
|
|
(0.7
|
)
|
|
3.5
|
|
|||||
Contract terminations and other
|
0.2
|
|
|
(3.5
|
)
|
|
—
|
|
|
3.3
|
|
|
—
|
|
|||||
Total
|
$
|
17.0
|
|
|
$
|
(4.0
|
)
|
|
$
|
(10.3
|
)
|
|
$
|
0.8
|
|
|
$
|
3.5
|
|
|
As of September 30, 2015
|
|||||
|
Amount
|
|
Effective Interest
Rates
|
|||
Senior Notes:
|
|
|
|
|||
3.10% fixed-rate notes, due March 2016
|
$
|
300.0
|
|
|
3.25
|
%
|
3.30% fixed-rate notes, due June 2020
|
300.0
|
|
|
3.47
|
%
|
|
4.60% fixed-rate notes, due March 2021
|
300.0
|
|
|
4.69
|
%
|
|
4.50% fixed-rate notes, due March 2024
|
350.0
|
|
|
4.63
|
%
|
|
4.35% fixed-rate notes, due June 2025
|
300.0
|
|
|
4.47
|
%
|
|
5.95% fixed-rate notes, due March 2041
|
400.0
|
|
|
6.03
|
%
|
|
Total senior notes
|
1,950.0
|
|
|
|
||
Unaccreted discount
|
(1.4
|
)
|
|
|
||
Total
|
$
|
1,948.6
|
|
|
|
|
|
|
|
|
|||
Reported as:
|
|
|
|
|||
Short-term debt
|
$
|
299.9
|
|
|
|
|
Long-term debt
|
1,648.7
|
|
|
|
||
Total
|
$
|
1,948.6
|
|
|
|
|
Unrealized
Gains (Losses)
on Available-for-
Sale Securities
(1)
|
|
Unrealized
Gains (Losses)
on Cash Flow
Hedges
(2)
|
|
Foreign
Currency
Translation
Adjustments
|
|
Total
|
||||||||
Balance as of December 31, 2014
|
$
|
8.4
|
|
|
$
|
(4.2
|
)
|
|
$
|
(18.0
|
)
|
|
$
|
(13.8
|
)
|
Other comprehensive gain (loss) before reclassifications
|
4.6
|
|
|
(5.4
|
)
|
|
(12.9
|
)
|
|
(13.7
|
)
|
||||
Amount reclassified from accumulated other
comprehensive income
|
(0.6
|
)
|
|
8.7
|
|
|
—
|
|
|
8.1
|
|
||||
Other comprehensive gains (losses), net
|
4.0
|
|
|
3.3
|
|
|
(12.9
|
)
|
|
(5.6
|
)
|
||||
Balance as of September 30, 2015
|
$
|
12.4
|
|
|
$
|
(0.9
|
)
|
|
$
|
(30.9
|
)
|
|
$
|
(19.4
|
)
|
(1)
|
The reclassifications out of accumulated other comprehensive loss during the
nine months ended
September 30, 2015
for realized gains on available-for-sale securities of
$0.6 million
are included in other (expense) income, net, in the Condensed Consolidated Statements of Operations.
|
(2)
|
The reclassifications out of accumulated other comprehensive loss during the
nine months ended
September 30, 2015
for realized losses on cash flow hedges are included within cost of revenues of
$2.6 million
, sales and marketing of
$5.5 million
, general and administrative of
$0.5 million
, and research and development of
$0.1 million
for which the hedged transactions relate in the Condensed Consolidated Statements of Operations.
|
|
Outstanding Options
|
|||||||||||
|
Number of Shares
|
|
Weighted Average
Exercise Price
per Share
|
|
Weighted Average
Remaining
Contractual Term
(In Years)
|
|
Aggregate
Intrinsic
Value
|
|||||
Balance as of December 31, 2014
|
9.9
|
|
|
$
|
24.87
|
|
|
|
|
|
||
Canceled
|
(0.1
|
)
|
|
23.65
|
|
|
|
|
|
|||
Exercised
|
(2.4
|
)
|
|
19.10
|
|
|
|
|
|
|||
Expired
|
(2.6
|
)
|
|
27.91
|
|
|
|
|
|
|||
Balance as of September 30, 2015
|
4.8
|
|
|
$
|
26.07
|
|
|
2.1
|
|
$
|
20.3
|
|
|
|
|
|
|
|
|
|
|||||
As of September 30, 2015:
|
|
|
|
|
|
|
|
|||||
Vested and expected-to-vest options
|
4.8
|
|
|
$
|
26.16
|
|
|
2.0
|
|
$
|
19.9
|
|
Exercisable options
|
4.5
|
|
|
$
|
27.35
|
|
|
1.8
|
|
$
|
14.6
|
|
|
Outstanding RSUs, RSAs, and PSAs
|
|||||||||||
|
Number of Shares
|
|
Weighted Average
Grant-Date Fair
Value per Share
|
|
Weighted Average
Remaining
Contractual Term
(In Years)
|
|
Aggregate
Intrinsic
Value
|
|||||
Balance as of December 31, 2014
|
21.3
|
|
|
$
|
22.05
|
|
|
|
|
|
||
RSUs granted
(1)(3)
|
8.1
|
|
|
22.90
|
|
|
|
|
|
|||
PSAs granted
(2)(3)
|
0.8
|
|
|
22.44
|
|
|
|
|
|
|||
RSUs vested
|
(6.0
|
)
|
|
23.19
|
|
|
|
|
|
|||
RSAs vested
|
(1.4
|
)
|
|
20.28
|
|
|
|
|
|
|||
PSAs vested
|
(0.3
|
)
|
|
22.52
|
|
|
|
|
|
|||
RSUs canceled
|
(1.9
|
)
|
|
22.09
|
|
|
|
|
|
|||
PSAs canceled
|
(1.0
|
)
|
|
22.28
|
|
|
|
|
|
|||
Balance as of September 30, 2015
|
19.6
|
|
|
$
|
22.15
|
|
|
1.2
|
|
$
|
504.4
|
|
(1)
|
Includes service-based and market-based RSUs granted under the 2015 Plan and the 2006 Plan according to its terms.
|
(2)
|
The number of shares subject to PSAs granted represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The aggregate number of shares subject to these PSAs that would be issued if performance goals determined by the Compensation Committee are achieved at target is
0.5 million
shares. Depending on achievement of such performance goals, the range of shares that could be issued under these awards is
0
to
0.8 million
shares.
|
(3)
|
The grant date fair value of RSUs and PSAs were reduced by the present value of dividends expected to be paid on the underlying shares of common stock during the requisite and derived service period as these awards are not entitled to receive dividends until vested. On July 23, 2015, the Company declared a cash dividend of
$0.10
per share of common stock, or
$38.5 million
in the aggregate, to stockholders of record on September 1, 2015, which was paid on September 22, 2015.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
ESPP
(1)
:
|
|
|
|
|
|
|
|
Volatility
|
26%
|
|
27%
|
|
29%
|
|
30%
|
Risk-free interest rate
|
0.2%
|
|
0.1%
|
|
0.1%
|
|
0.1%
|
Expected life (years)
|
0.5
|
|
0.5
|
|
0.5
|
|
0.5
|
Dividend yield
|
1.4%
|
|
1.8%
|
|
1.7%
|
|
1.0%
|
Weighted-average fair value per share
|
$6.20
|
|
$5.13
|
|
$5.63
|
|
$5.72
|
|
|
|
|
|
|
|
|
Market-based RSUs
(2)
:
|
|
|
|
|
|
|
|
Volatility
|
—
|
|
—
|
|
34%
|
|
36%
|
Risk-free interest rate
|
—
|
|
—
|
|
1.4%
|
|
1.6%
|
Dividend yield
|
—
|
|
—
|
|
1.8%
|
|
0% - 1.5%
|
Weighted-average fair value per share
|
—
|
|
—
|
|
$14.97
|
|
$18.28
|
(1)
|
The Black-Scholes-Merton option-pricing model is utilized to estimate the fair value of shares issuable under the ESPP.
|
(2)
|
The fair value of market-based RSUs utilizes a Monte Carlo valuation methodology. The Company amortizes the fair value of these awards over the derived service period adjusted for estimated forfeitures for each separately vesting tranche of the award. Provided that the derived service is rendered, the total fair value of the market-based RSUs at the date of grant is recognized as compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary significantly with the performance of the specified market criteria.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Cost of revenues - Product
|
$
|
1.3
|
|
|
$
|
1.3
|
|
|
$
|
4.5
|
|
|
$
|
3.9
|
|
Cost of revenues - Service
|
3.2
|
|
|
3.6
|
|
|
10.4
|
|
|
10.7
|
|
||||
Research and development
|
31.0
|
|
|
37.1
|
|
|
94.1
|
|
|
100.8
|
|
||||
Sales and marketing
|
13.0
|
|
|
15.9
|
|
|
32.2
|
|
|
44.9
|
|
||||
General and administrative
|
8.0
|
|
|
7.4
|
|
|
20.1
|
|
|
25.1
|
|
||||
Total
|
$
|
56.5
|
|
|
$
|
65.3
|
|
|
$
|
161.3
|
|
|
$
|
185.4
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Stock options
|
$
|
1.5
|
|
|
$
|
3.2
|
|
|
$
|
5.2
|
|
|
$
|
12.0
|
|
RSUs, RSAs, and PSAs
|
52.4
|
|
|
58.2
|
|
|
146.3
|
|
|
161.9
|
|
||||
ESPP
|
2.6
|
|
|
3.9
|
|
|
9.8
|
|
|
11.5
|
|
||||
Total
|
$
|
56.5
|
|
|
$
|
65.3
|
|
|
$
|
161.3
|
|
|
$
|
185.4
|
|
|
Unrecognized
Compensation Cost
|
|
Weighted Average
Period
(In Years)
|
||
Stock options
|
$
|
3.8
|
|
|
0.8
|
RSUs, RSAs, and PSAs
|
$
|
241.9
|
|
|
1.8
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Routing
|
$
|
604.4
|
|
|
$
|
533.2
|
|
|
$
|
1,711.6
|
|
|
$
|
1,700.8
|
|
Switching
|
201.4
|
|
|
155.0
|
|
|
558.1
|
|
|
546.8
|
|
||||
Security
|
119.6
|
|
|
121.3
|
|
|
319.5
|
|
|
367.1
|
|
||||
Total product
|
925.4
|
|
|
809.5
|
|
|
2,589.2
|
|
|
2,614.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total service
|
323.2
|
|
|
316.4
|
|
|
949.0
|
|
|
910.8
|
|
||||
Total
|
$
|
1,248.6
|
|
|
$
|
1,125.9
|
|
|
$
|
3,538.2
|
|
|
$
|
3,525.5
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Americas:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
665.6
|
|
|
$
|
621.3
|
|
|
$
|
1,869.7
|
|
|
$
|
1,905.7
|
|
Other
|
47.2
|
|
|
57.0
|
|
|
167.9
|
|
|
165.1
|
|
||||
Total Americas
|
712.8
|
|
|
678.3
|
|
|
2,037.6
|
|
|
2,070.8
|
|
||||
Europe, Middle East, and Africa
|
355.0
|
|
|
290.5
|
|
|
975.1
|
|
|
911.0
|
|
||||
Asia Pacific
|
180.8
|
|
|
157.1
|
|
|
525.5
|
|
|
543.7
|
|
||||
Total
|
$
|
1,248.6
|
|
|
$
|
1,125.9
|
|
|
$
|
3,538.2
|
|
|
$
|
3,525.5
|
|
|
As of
|
||||||
|
September 30,
2015 |
|
December 31,
2014 |
||||
United States
|
$
|
879.1
|
|
|
$
|
871.7
|
|
International
|
120.0
|
|
|
95.0
|
|
||
Property and equipment, net and purchased intangible assets, net
|
$
|
999.1
|
|
|
$
|
966.7
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Cost-sharing adjustment
(1)
|
$
|
(13.2
|
)
|
|
$
|
—
|
|
|
$
|
(13.2
|
)
|
|
$
|
—
|
|
Tax on equity investments
(2)
|
$
|
—
|
|
|
$
|
0.7
|
|
|
$
|
—
|
|
|
$
|
36.3
|
|
Restructuring
|
$
|
—
|
|
|
$
|
9.2
|
|
|
$
|
—
|
|
|
$
|
(46.7
|
)
|
Legal settlement
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44.7
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
197.7
|
|
|
$
|
103.6
|
|
|
$
|
435.9
|
|
|
$
|
435.3
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used to compute
basic net income per share
|
382.8
|
|
|
448.4
|
|
|
393.2
|
|
|
468.1
|
|
||||
Dilutive effect of employee stock awards
|
6.4
|
|
|
6.4
|
|
|
8.0
|
|
|
8.9
|
|
||||
Weighted-average shares used to compute
diluted net income per share
|
389.2
|
|
|
454.8
|
|
|
401.2
|
|
|
477.0
|
|
||||
Net income per share attributable to Juniper
Networks common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.52
|
|
|
$
|
0.23
|
|
|
$
|
1.11
|
|
|
$
|
0.93
|
|
Diluted
|
$
|
0.51
|
|
|
$
|
0.23
|
|
|
$
|
1.09
|
|
|
$
|
0.91
|
|
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive:
|
|
|
|
|
|
|
|
||||||||
Potential anti-dilutive shares
|
3.1
|
|
|
10.2
|
|
|
3.7
|
|
|
10.8
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||||||||||
Net revenues
|
$
|
1,248.6
|
|
|
$
|
1,125.9
|
|
|
$
|
122.7
|
|
|
11
|
%
|
|
$
|
3,538.2
|
|
|
$
|
3,525.5
|
|
|
$
|
12.7
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gross margin
|
$
|
797.4
|
|
|
$
|
714.8
|
|
|
$
|
82.6
|
|
|
12
|
%
|
|
$
|
2,236.2
|
|
|
$
|
2,183.1
|
|
|
$
|
53.1
|
|
|
2
|
%
|
Percentage of net
revenues
|
63.9
|
%
|
|
63.5
|
%
|
|
|
|
|
|
63.2
|
%
|
|
61.9
|
%
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating income
|
$
|
258.0
|
|
|
$
|
172.4
|
|
|
$
|
85.6
|
|
|
50
|
%
|
|
$
|
632.9
|
|
|
$
|
282.1
|
|
|
$
|
350.8
|
|
|
124
|
%
|
Percentage of net
revenues
|
20.7
|
%
|
|
15.3
|
%
|
|
|
|
|
|
17.9
|
%
|
|
8.0
|
%
|
|
|
|
|
||||||||||
Net income
|
$
|
197.7
|
|
|
$
|
103.6
|
|
|
$
|
94.1
|
|
|
91
|
%
|
|
$
|
435.9
|
|
|
$
|
435.3
|
|
|
$
|
0.6
|
|
|
—
|
%
|
Percentage of net
revenues
|
15.8
|
%
|
|
9.2
|
%
|
|
|
|
|
|
12.3
|
%
|
|
12.3
|
%
|
|
|
|
|
||||||||||
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Basic
|
$
|
0.52
|
|
|
$
|
0.23
|
|
|
$
|
0.29
|
|
|
126
|
%
|
|
$
|
1.11
|
|
|
$
|
0.93
|
|
|
$
|
0.18
|
|
|
19
|
%
|
Diluted
|
$
|
0.51
|
|
|
$
|
0.23
|
|
|
$
|
0.28
|
|
|
122
|
%
|
|
$
|
1.09
|
|
|
$
|
0.91
|
|
|
$
|
0.18
|
|
|
20
|
%
|
Cash dividends declared
per common stock
|
$
|
0.10
|
|
|
$
|
0.10
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
0.30
|
|
|
$
|
0.10
|
|
|
$
|
0.20
|
|
|
200
|
%
|
Stock repurchase plan
activity
|
$
|
50.0
|
|
|
$
|
850.0
|
|
|
$
|
(800.0
|
)
|
|
(94
|
)%
|
|
$
|
1,050.0
|
|
|
$
|
1,750.0
|
|
|
$
|
(700.0
|
)
|
|
(40
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating cash flows
|
|
|
|
|
|
|
|
|
$
|
775.5
|
|
|
$
|
478.5
|
|
|
$
|
297.0
|
|
|
62
|
%
|
|||||||
DSO
|
42
|
|
|
49
|
|
|
(7
|
)
|
|
(14
|
)%
|
|
|
|
|
|
|
|
|
||||||||||
Product book-to-bill
|
>1
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
September 30, 2015
|
|
December 31,
2014
|
|
$ Change
|
|
% Change
|
||||||||||||||
Deferred revenue
|
|
|
|
|
|
|
|
|
$
|
1,124.9
|
|
|
$
|
1,075.7
|
|
|
$
|
49.2
|
|
|
5
|
%
|
•
|
Net Revenues:
During the three months ended
September 30, 2015
, compared to the same period in 2014, we experienced
an increase
in net revenues primarily due to an increase in Service Provider net revenues in both EMEA and APAC, as well as growth in Enterprise net revenues across all geographies. Our revenue growth in the third quarter of 2015 compared to 2014 was driven by higher net revenues in our routing, switching, high-end SRX security products and an increase in service net revenues.
|
•
|
Gross Margin:
Our gross margin as a percentage of net revenues slightly
increased
during the three months ended
September 30, 2015
, compared to the same period in 2014, primarily due to cost reduction efforts and strong growth in product revenues in the quarter, which improved product gross margin.
|
•
|
Operating Income:
Our operating income as a percentage of net revenues
increased
during the three months ended
September 30, 2015
, compared to the same period in 2014, as a result of a strong increase in product revenues, partially offset by an increase in product cost of sales. Operating expenses remained relatively flat compared to the same period in 2014, while service revenue and service cost of sales both increased slightly.
|
•
|
Cash Dividends Declared per Common Stock:
During the
nine months ended
September 30, 2015
, we declared a quarterly cash dividend of
$0.10
per share of common stock on January 27, 2015, April 23, 2015, and July 23, 2015 which were paid on March 24, 2015, June 23, 2015, and September 22, 2015, respectively, to stockholders of record on March 3, 2015, June 2, 2015, and September 1, respectively, in the aggregate amount of
$118.0 million
.
|
•
|
Stock Repurchase Plan Activity:
During the
three and nine
months ended
September 30, 2015
, we repurchased approximately
1.8 million
and
42.4 million
shares of our common stock in the open market, at an average price of
$28.01
and
$24.78
per share, for an aggregate purchase price of
$50.0 million
and
$1.1 billion
, respectively. Pursuant to the $1.2 billion accelerated share repurchase, or ASR, that we announced in the first quarter of 2014, during the
nine months ended
September 30, 2014
, we received and retired 49.3 million shares, which resulted in a volume weighted average repurchase price, less an agreed upon discount, of $24.35 per share. Subsequent to the completion of the ASR, during the three months ended September 30, 2014, we repurchased an additional 23.5 million shares of our common stock in the open market at an average price of $23.44 per share for an aggregate purchase price of $550.0 million.
|
•
|
Operating Cash Flows:
Operating cash flows
increased
during the
nine months ended
September 30, 2015
, compared to the same period in 2014, primarily due to higher operating income and an increase in working capital changes for the
nine months ended
September 30, 2015.
|
•
|
DSO:
DSO is calculated as the ratio of ending accounts receivable, net of allowances, divided by average daily net revenues for the preceding 90 days. DSO for the
third quarter
of 2015
decreased
by
7
days, or
14%
, compared to the same period in
2014
, primarily due to improved shipment and invoice linearity.
|
•
|
Product book-to-bill:
Product book-to-bill represents the ratio of product orders booked divided by product revenues during the respective period. Product book-to-bill was greater than one for the three months ended
September 30, 2015
and one for the three months ended
September 30, 2014
.
|
•
|
Deferred Revenue:
Total deferred revenue
increased
by
$49.2 million
to
$1,124.9 million
as of
September 30, 2015
, compared to
$1,075.7 million
as of
December 31, 2014
, primarily due to an increase in deferred service revenue of
$33.7 million
driven by an increase in annual renewals of support agreements, which are billed in advance, as well as product deferred revenue being marginally higher in the current period.
|
•
|
Goodwill;
|
•
|
Inventory Valuation and Contract Manufacturer Liabilities;
|
•
|
Revenue Recognition;
|
•
|
Income Taxes; and
|
•
|
Loss Contingencies.
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||||||||||
Routing
|
$
|
604.4
|
|
|
$
|
533.2
|
|
|
$
|
71.2
|
|
|
13
|
%
|
|
$
|
1,711.6
|
|
|
$
|
1,700.8
|
|
|
$
|
10.8
|
|
|
1
|
%
|
Switching
|
201.4
|
|
|
155.0
|
|
|
46.4
|
|
|
30
|
%
|
|
558.1
|
|
|
546.8
|
|
|
11.3
|
|
|
2
|
%
|
||||||
Security
|
119.6
|
|
|
121.3
|
|
|
(1.7
|
)
|
|
(1
|
)%
|
|
319.5
|
|
|
367.1
|
|
|
(47.6
|
)
|
|
(13
|
)%
|
||||||
Total Product
|
925.4
|
|
|
809.5
|
|
|
115.9
|
|
|
14
|
%
|
|
2,589.2
|
|
|
2,614.7
|
|
|
(25.5
|
)
|
|
(1
|
)%
|
||||||
Percentage of net revenues
|
74.1
|
%
|
|
71.9
|
%
|
|
|
|
|
|
73.2
|
%
|
|
74.2
|
%
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Service
|
323.2
|
|
|
316.4
|
|
|
6.8
|
|
|
2
|
%
|
|
949.0
|
|
|
910.8
|
|
|
38.2
|
|
|
4
|
%
|
||||||
Percentage of net revenues
|
25.9
|
%
|
|
28.1
|
%
|
|
|
|
|
|
26.8
|
%
|
|
25.8
|
%
|
|
|
|
|
||||||||||
Total net revenues
|
$
|
1,248.6
|
|
|
$
|
1,125.9
|
|
|
$
|
122.7
|
|
|
11
|
%
|
|
$
|
3,538.2
|
|
|
$
|
3,525.5
|
|
|
$
|
12.7
|
|
|
—
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||||||||||
Americas:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
United States
|
$
|
665.6
|
|
|
$
|
621.3
|
|
|
$
|
44.3
|
|
|
7
|
%
|
|
$
|
1,869.7
|
|
|
$
|
1,905.7
|
|
|
$
|
(36.0
|
)
|
|
(2
|
)%
|
Other
|
47.2
|
|
|
57.0
|
|
|
(9.8
|
)
|
|
(17
|
)%
|
|
167.9
|
|
|
165.1
|
|
|
2.8
|
|
|
2
|
%
|
||||||
Total Americas
|
712.8
|
|
|
678.3
|
|
|
34.5
|
|
|
5
|
%
|
|
2,037.6
|
|
|
2,070.8
|
|
|
(33.2
|
)
|
|
(2
|
)%
|
||||||
Percentage of net revenues
|
57.1
|
%
|
|
60.2
|
%
|
|
|
|
|
|
57.6
|
%
|
|
58.7
|
%
|
|
|
|
|
||||||||||
EMEA
|
355.0
|
|
|
290.5
|
|
|
64.5
|
|
|
22
|
%
|
|
975.1
|
|
|
911.0
|
|
|
64.1
|
|
|
7
|
%
|
||||||
Percentage of net revenues
|
28.4
|
%
|
|
25.8
|
%
|
|
|
|
|
|
27.6
|
%
|
|
25.8
|
%
|
|
|
|
|
||||||||||
APAC
|
180.8
|
|
|
157.1
|
|
|
23.7
|
|
|
15
|
%
|
|
525.5
|
|
|
543.7
|
|
|
(18.2
|
)
|
|
(3
|
)%
|
||||||
Percentage of net revenues
|
14.5
|
%
|
|
14.0
|
%
|
|
|
|
|
|
14.8
|
%
|
|
15.4
|
%
|
|
|
|
|
||||||||||
Total net revenues
|
$
|
1,248.6
|
|
|
$
|
1,125.9
|
|
|
$
|
122.7
|
|
|
11
|
%
|
|
$
|
3,538.2
|
|
|
$
|
3,525.5
|
|
|
$
|
12.7
|
|
|
—
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||||||||||
Service Provider
|
$
|
804.3
|
|
|
$
|
741.5
|
|
|
$
|
62.8
|
|
|
8
|
%
|
|
$
|
2,356.6
|
|
|
$
|
2,356.0
|
|
|
$
|
0.6
|
|
|
—
|
%
|
Percentage of net revenues
|
64.4
|
%
|
|
65.9
|
%
|
|
|
|
|
|
66.6
|
%
|
|
66.8
|
%
|
|
|
|
|
||||||||||
Enterprise
|
444.3
|
|
|
384.4
|
|
|
59.9
|
|
|
16
|
%
|
|
1,181.6
|
|
|
1,169.5
|
|
|
12.1
|
|
|
1
|
%
|
||||||
Percentage of net revenues
|
35.6
|
%
|
|
34.1
|
%
|
|
|
|
|
|
33.4
|
%
|
|
33.2
|
%
|
|
|
|
|
||||||||||
Total net revenues
|
$
|
1,248.6
|
|
|
$
|
1,125.9
|
|
|
$
|
122.7
|
|
|
11
|
%
|
|
$
|
3,538.2
|
|
|
$
|
3,525.5
|
|
|
$
|
12.7
|
|
|
—
|
%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||||||||||
Product gross margin
|
$
|
602.8
|
|
|
$
|
519.5
|
|
|
$
|
83.3
|
|
|
16
|
%
|
|
$
|
1,666.1
|
|
|
$
|
1,638.8
|
|
|
$
|
27.3
|
|
|
2
|
%
|
Percentage of product
revenues
|
65.1
|
%
|
|
64.2
|
%
|
|
|
|
|
|
64.3
|
%
|
|
62.7
|
%
|
|
|
|
|
||||||||||
Service gross margin
|
194.6
|
|
|
195.3
|
|
|
(0.7
|
)
|
|
—
|
%
|
|
570.1
|
|
|
544.3
|
|
|
25.8
|
|
|
5
|
%
|
||||||
Percentage of service revenues
|
60.2
|
%
|
|
61.7
|
%
|
|
|
|
|
|
60.1
|
%
|
|
59.8
|
%
|
|
|
|
|
||||||||||
Total gross margin
|
$
|
797.4
|
|
|
$
|
714.8
|
|
|
$
|
82.6
|
|
|
12
|
%
|
|
$
|
2,236.2
|
|
|
$
|
2,183.1
|
|
|
$
|
53.1
|
|
|
2
|
%
|
Percentage of net revenues
|
63.9
|
%
|
|
63.5
|
%
|
|
|
|
|
|
63.2
|
%
|
|
61.9
|
%
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||||||||||
Research and development
|
$
|
247.0
|
|
|
$
|
253.2
|
|
|
$
|
(6.2
|
)
|
|
(2
|
)%
|
|
$
|
747.3
|
|
|
$
|
772.7
|
|
|
$
|
(25.4
|
)
|
|
(3
|
)%
|
Percentage of net revenues
|
19.8
|
%
|
|
22.5
|
%
|
|
|
|
|
|
21.1
|
%
|
|
21.9
|
%
|
|
|
|
|
||||||||||
Sales and marketing
|
235.3
|
|
|
249.2
|
|
|
(13.9
|
)
|
|
(6
|
)%
|
|
687.9
|
|
|
780.6
|
|
|
(92.7
|
)
|
|
(12
|
)%
|
||||||
Percentage of net revenues
|
18.8
|
%
|
|
22.1
|
%
|
|
|
|
|
|
19.4
|
%
|
|
22.1
|
%
|
|
|
|
|
||||||||||
General and administrative
|
57.1
|
|
|
55.0
|
|
|
2.1
|
|
|
4
|
%
|
|
168.6
|
|
|
190.5
|
|
|
(21.9
|
)
|
|
(11
|
)%
|
||||||
Percentage of net revenues
|
4.6
|
%
|
|
4.9
|
%
|
|
|
|
|
|
4.8
|
%
|
|
5.4
|
%
|
|
|
|
|
||||||||||
Restructuring and other
(benefits) charges
|
—
|
|
|
(15.0
|
)
|
|
15.0
|
|
|
(100
|
)%
|
|
(0.5
|
)
|
|
157.2
|
|
|
(157.7
|
)
|
|
(100
|
)%
|
||||||
Percentage of net revenues
|
—
|
%
|
|
(1.3
|
)%
|
|
|
|
|
|
—
|
%
|
|
4.5
|
%
|
|
|
|
|
||||||||||
Total operating expenses
|
$
|
539.4
|
|
|
$
|
542.4
|
|
|
$
|
(3.0
|
)
|
|
(1
|
)%
|
|
$
|
1,603.3
|
|
|
$
|
1,901.0
|
|
|
$
|
(297.7
|
)
|
|
(16
|
)%
|
Percentage of net revenues
|
43.2
|
%
|
|
48.2
|
%
|
|
|
|
|
|
45.3
|
%
|
|
53.9
|
%
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||||||||||
Cost of revenues - Product
|
$
|
1.3
|
|
|
$
|
1.3
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
4.5
|
|
|
$
|
3.9
|
|
|
$
|
0.6
|
|
|
15
|
%
|
Cost of revenues - Service
|
3.2
|
|
|
3.6
|
|
|
(0.4
|
)
|
|
(11
|
)%
|
|
10.4
|
|
|
10.7
|
|
|
(0.3
|
)
|
|
(3
|
)%
|
||||||
Research and development
|
31.0
|
|
|
37.1
|
|
|
(6.1
|
)
|
|
(16
|
)%
|
|
94.1
|
|
|
100.8
|
|
|
(6.7
|
)
|
|
(7
|
)%
|
||||||
Sales and marketing
|
13.0
|
|
|
15.9
|
|
|
(2.9
|
)
|
|
(18
|
)%
|
|
32.2
|
|
|
44.9
|
|
|
(12.7
|
)
|
|
(28
|
)%
|
||||||
General and administrative
|
8.0
|
|
|
7.4
|
|
|
0.6
|
|
|
8
|
%
|
|
20.1
|
|
|
25.1
|
|
|
(5.0
|
)
|
|
(20
|
)%
|
||||||
Total
|
$
|
56.5
|
|
|
$
|
65.3
|
|
|
$
|
(8.8
|
)
|
|
(13
|
)%
|
|
$
|
161.3
|
|
|
$
|
185.4
|
|
|
$
|
(24.1
|
)
|
|
(13
|
)%
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||||
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
||||||||||||||
Interest income
|
$
|
5.7
|
|
|
$
|
2.7
|
|
|
$
|
3.0
|
|
|
111
|
%
|
|
$
|
16.3
|
|
|
$
|
6.9
|
|
|
$
|
9.4
|
|
|
136
|
%
|
Interest expense
|
(21.6
|
)
|
|
(16.9
|
)
|
|
(4.7
|
)
|
|
28
|
%
|
|
(61.9
|
)
|
|
(50.2
|
)
|
|
(11.7
|
)
|
|
23
|
%
|
||||||
Net gain on legal settlement
|
—
|
|
|
0.8
|
|
|
(0.8
|
)
|
|
(100
|
)%
|
|
—
|
|
|
196.1
|
|
|
(196.1
|
)
|
|
(100
|
)%
|
||||||
Gain (loss) on investments
|
6.0
|
|
|
(1.9
|
)
|
|
7.9
|
|
|
(416
|
)%
|
|
6.8
|
|
|
165.1
|
|
|
(158.3
|
)
|
|
(96
|
)%
|
||||||
Other
|
1.5
|
|
|
8.5
|
|
|
(7.0
|
)
|
|
(82
|
)%
|
|
(2.5
|
)
|
|
8.1
|
|
|
(10.6
|
)
|
|
(131
|
)%
|
||||||
Total other (expense)
income, net
|
$
|
(8.4
|
)
|
|
$
|
(6.8
|
)
|
|
$
|
(1.6
|
)
|
|
(24
|
)%
|
|
$
|
(41.3
|
)
|
|
$
|
326.0
|
|
|
$
|
(367.3
|
)
|
|
(113
|
)%
|
Percentage of net revenues
|
(0.7
|
)%
|
|
(0.6
|
)%
|
|
|
|
|
|
(1.2
|
)%
|
|
9.2
|
%
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income tax provision
|
$
|
51.9
|
|
|
$
|
62.0
|
|
|
$
|
(10.1
|
)
|
|
(16
|
)%
|
|
$
|
155.7
|
|
|
$
|
172.8
|
|
|
$
|
(17.1
|
)
|
|
(10
|
)%
|
Effective tax rate
|
20.8
|
%
|
|
37.4
|
%
|
|
|
|
|
|
26.3
|
%
|
|
28.4
|
%
|
|
|
|
|
|
As of
|
|
|
|
|
|||||||||
|
September 30,
2015 |
|
December 31,
2014 |
|
$ Change
|
|
% Change
|
|||||||
Working capital
|
$
|
1,163.2
|
|
|
$
|
1,444.2
|
|
|
$
|
(281.0
|
)
|
|
(19
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Cash and cash equivalents
|
$
|
1,453.5
|
|
|
$
|
1,639.6
|
|
|
$
|
(186.1
|
)
|
|
(11
|
)%
|
Short-term investments
|
529.9
|
|
|
332.2
|
|
|
197.7
|
|
|
60
|
%
|
|||
Long-term investments
|
1,263.6
|
|
|
1,133.1
|
|
|
130.5
|
|
|
12
|
%
|
|||
Total cash, cash equivalents, and investments
|
3,247.0
|
|
|
3,104.9
|
|
|
142.1
|
|
|
5
|
%
|
|||
Short-term and Long-term debt
|
1,948.6
|
|
|
1,349.0
|
|
|
599.6
|
|
|
44
|
%
|
|||
Net cash, cash equivalents, and investments
|
$
|
1,298.4
|
|
|
$
|
1,755.9
|
|
|
$
|
(457.5
|
)
|
|
(26
|
)%
|
|
Nine Months Ended September 30,
|
|||||||||||||
|
2015
|
|
2014
|
|
$ Change
|
|
% Change
|
|||||||
Net cash provided by operating activities
|
$
|
775.5
|
|
|
$
|
478.5
|
|
|
$
|
297.0
|
|
|
62
|
%
|
Net cash (used in) provided by investing activities
|
$
|
(470.0
|
)
|
|
$
|
150.8
|
|
|
$
|
(620.8
|
)
|
|
(412
|
)%
|
Net cash used in financing activities
|
$
|
(476.2
|
)
|
|
$
|
(1,291.5
|
)
|
|
$
|
815.3
|
|
|
(63
|
)%
|
|
As of
|
||||||
|
September 30,
2015 |
|
December 31,
2014 |
||||
Deferred product revenue:
|
|
|
|
||||
Undelivered product commitments and other product deferrals
|
$
|
221.7
|
|
|
$
|
180.3
|
|
Distributor inventory and other sell-through items
|
63.1
|
|
|
103.7
|
|
||
Deferred gross product revenue
|
284.8
|
|
|
284.0
|
|
||
Deferred cost of product revenue
|
(43.7
|
)
|
|
(58.4
|
)
|
||
Deferred product revenue, net
|
241.1
|
|
|
225.6
|
|
||
Deferred service revenue
|
883.8
|
|
|
850.1
|
|
||
Total
|
$
|
1,124.9
|
|
|
$
|
1,075.7
|
|
|
Payments Due by Period
|
||||||||||||||||||
|
Total
|
|
Less than 1
year
|
|
1-3 years
|
|
3-5 years
|
|
More than
5 years
|
||||||||||
Short-term debt
(1)
|
$
|
300.0
|
|
|
$
|
300.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
2020 Notes
(1)
|
$
|
300.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
300.0
|
|
|
$
|
—
|
|
2025 Notes
(1)
|
$
|
300.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
300.0
|
|
Interest payment on the 2020 Notes and 2025 Notes
(1)
|
$
|
179.1
|
|
|
$
|
23.0
|
|
|
$
|
45.9
|
|
|
$
|
45.5
|
|
|
$
|
64.7
|
|
Future minimum lease payment
(2)
|
$
|
118.1
|
|
|
$
|
1.7
|
|
|
$
|
10.9
|
|
|
$
|
26.5
|
|
|
$
|
79.0
|
|
•
|
level and mix of our product, sales, and gross profit margins;
|
•
|
our business, product, capital expenditures and R&D plans;
|
•
|
repurchases of our common stock;
|
•
|
payment of dividends;
|
•
|
incurrence and repayment of debt and related interest obligations;
|
•
|
litigation expenses, settlements, and judgments, or similar items related to resolution of tax audits;
|
•
|
volume price discounts and customer rebates;
|
•
|
accounts receivable levels that we maintain;
|
•
|
acquisitions and/or funding of other businesses, assets, products, or technologies;
|
•
|
changes in our compensation policies;
|
•
|
capital improvements for new and existing facilities;
|
•
|
technological advances;
|
•
|
our competitors' responses to our products and/or pricing;
|
•
|
our relationships with suppliers, partners, and customers;
|
•
|
possible future investments in raw material and finished goods inventories;
|
•
|
expenses related to future restructuring plans;
|
•
|
tax expense associated with share-based awards;
|
•
|
issuance of share-based awards and the related payment in cash for withholding taxes in the current year and possibly during future years;
|
•
|
level of exercises of stock options and stock purchases under our equity incentive plans; and
|
•
|
general economic conditions and specific conditions in our industry and markets, including the effects of disruptions in global credit and financial markets, international conflicts, and related uncertainties.
|
•
|
the additional development efforts and costs required to create new software products and/or to make our disaggregated products compatible with multiple technologies;
|
•
|
the possibility that our new software products or disaggregated products may not achieve widespread customer adoption;
|
•
|
the potential that our strategy could erode our gross margins;
|
•
|
the impact on our financial results of longer periods of revenue recognition and changes in tax treatment associated with software sales;
|
•
|
the additional costs associated with regulatory compliance and changes we need to make to our distribution chain in connection with increased software sales;
|
•
|
the ability of our disaggregated hardware and software products to operate independently and/or to integrate with third party products; and
|
•
|
the risk that issues with third party technologies used with our disaggregated products will be attributed to us.
|
•
|
changes in general IT spending,
|
•
|
the imposition of government controls, inclusive of critical infrastructure protection;
|
•
|
changes or limitations in trade protection laws or other regulatory requirements, which may affect our ability to import or export our products from various countries;
|
•
|
varying and potentially conflicting laws and regulations;
|
•
|
fluctuations in local economies;
|
•
|
wage inflation or a tightening of the labor market; and
|
•
|
the impact of the following on service provider and government spending patterns: political considerations, unfavorable changes in tax treaties or laws, natural disasters, epidemic disease, labor unrest, earnings expatriation restrictions,
|
•
|
incur liens;
|
•
|
incur sale and leaseback transactions; and
|
•
|
consolidate or merge with or into, or sell substantially all of our assets to, another person.
|
•
|
maintenance of a leverage ratio no greater than 3.0x and an interest coverage ratio no less than 3.0x
|
•
|
covenants that limit or restrict the ability of the Company and its subsidiaries to, among other things, grant liens, merge or consolidate, dispose of all or substantially all of its assets, change their accounting or reporting policies, change their business and incur subsidiary indebtedness, in each case subject to customary exceptions for a credit facility of this size and type.
|
Period
|
|
Total Number
of Shares
Purchased
(1)
|
|
Average
Price Paid
per Share
(1)
|
|
Total Number
of Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs
(2)
|
|
Approximate Dollar
Value of Shares
that May Yet Be
Purchased
Under the Plans or
Programs
(2)
|
||||||
July 1 - July 31, 2015
|
|
0.3
|
|
|
$
|
27.08
|
|
|
0.2
|
|
|
$
|
670.0
|
|
August 1 - August 31, 2015
|
|
1.6
|
|
|
$
|
28.08
|
|
|
1.6
|
|
|
$
|
625.0
|
|
September 1 - September 30, 2015
(3)
|
|
—
|
|
|
$
|
25.09
|
|
|
—
|
|
|
$
|
625.0
|
|
Total
|
|
1.9
|
|
|
|
|
1.8
|
|
|
|
(1)
|
Amounts include repurchases under our stock repurchase programs and repurchases of our common stock for our employees in connection with net issuances of shares to satisfy minimum tax withholding obligations for the vesting of certain stock awards.
|
(2)
|
Shares were repurchased under our stock repurchase program approved by the Board in February 2014, October 2014, and July 2015, which authorized us to purchase an aggregate of up to
$3.9 billion
of our common stock. Future share repurchases under our capital return plan will be subject to a review of the circumstances in place at that time and will be made from time to time in private transactions or open market purchases as permitted by securities laws and other legal requirements. This program may be discontinued at any time.
|
(3)
|
The month ended September 30, 2015 includes an immaterial number of shares repurchased associated with minimum tax withholdings.
|
*Filed herewith.
|
+Indicates management contract or compensatory plan, contract or arrangement.
|
|
|
Juniper Networks, Inc.
|
|
|
|
|
|
November 5, 2015
|
|
By:
|
/s/ Robyn M. Denholm
|
|
|
|
Robyn M. Denholm
|
|
|
|
Executive Vice President, Chief Financial and Operations Officer
(Duly Authorized Officer and Principal Financial Officer)
|
|
|
|
|
November 5, 2015
|
|
By:
|
/s/ Terrance F. Spidell
|
|
|
|
Terrance F. Spidell
|
|
|
|
Vice President, Corporate Controller and Chief Accounting Officer
(Duly Authorized Officer and Principal Accounting Officer)
|
*Filed herewith.
|
+Indicates management contract or compensatory plan, contract or arrangement.
|
1.
|
Under Section 2 of the Agreement, Gaynor had committed to serve as General Counsel through May 19, 2015. Section 2 of the Agreement is hereby amended to read in its entirety as follows:
|
2.
|
All references in the Agreement to “Employment End Date” are hereby amended to read as “Transition Date”. All references in the Agreement to “December 31, 2015” are hereby amended to read as “February 29, 2016”.
|
3.
|
In the third sentence of Section 3 of the Agreement, the word “director” is hereby replaced with the words “part-time employee or director”. The final sentence of Section 3 of the Agreement is hereby amended to read as follows: “For avoidance of doubt, no additional vesting of awards granted under Juniper’s 2006 Equity Incentive Plan shall occur during the Subsidiary Service Period.” In the second sentence of Section 4, the phrase “on or before forty-fifth (45) day following the Employment End Date” is amended to read “in January 2016.” At the end of Section 4, a further proviso is added at the end of such Section to read “provided, further, that no amount specified in (iii) will be paid later than March 15, 2016.”
|
4.
|
Except as noted above, all provisions of the Agreement remain unchanged and in full force and effect.
|
Date:
|
September 4, 2015
|
|
Mitchell Gaynor
|
|
|
|
/s/ Mitchell Gaynor
|
|
|
|
|
Date:
|
September 4, 2015
|
|
JUNIPER NETWORKS, INC.
|
|
|
|
By: /s/ Rami Rahim
|
|
|
|
Name: Rami Rahim
|
Offer Component
|
Offer Amount
|
Currency
|
Frequency
|
Base Compensation
|
450,000.00
|
USD
|
Annual
|
RSU
|
115,000
|
|
Standard Vesting
|
Hiring Bonus
|
150,000.00
|
USD
|
One-Time
|
/s/ Brian Martin
|
|
August 15, 2015
|
Signature
|
|
Date Signed
|
Start Date: Monday,
October 5
, 2015
|
|
|
A.
|
FSP-Sunnyvale Office Park, LLC (“Head Landlord”) (as successor-in-interest to, among others, Sunnyvale Office Park, L.P. and Mathilda Associates LLC), as landlord, and Sublandlord (as successor-in-interest to Subtenant), as tenant, as parties to that certain Lease dated June 18, 1999, as amended by that certain First Amendment to Lease dated February 28, 2000, as further amended by that certain Second Amendment to Lease dated October 14, 2009, and as further amended by that certain Consent to Assignment and Third Amendment to Lease dated for reference purposes August 18, 2014 (collectively, the “Head Lease”) for approximately 144,315 rentable square feet of space (“Leased Premises”) in the building located at 1194 N Mathilda Avenue, Sunnyvale, California (“Building”). The Head Lease term is due to expire on June 30, 2020.
|
B.
|
On or about August 18, 2014, Subtenant and Sublandlord, with the consent of Head Landlord and Head Landlord’s lender entered into that certain Assignment and Assumption of Lease dated as of August 18, 2014 (“Assignment”), pursuant to which Subtenant assigned to Sublandlord all of Subtenant’s right, title and interest in, to and under the Head Lease, the Leased Premises, and that certain subordination, non-disturbance and attornment agreement dated as of August 7, 2013 (the “SNDA”), entered into by Subtenant and Head Landlord’s lender, Bank of America, N.A., a national banking association, as Administrative Agent for the holder of certain liens secured by the Building (“Administrative Agent”).
|
C.
|
On or about August 18, 2014, Subtenant and Sublandlord, with the consent of Head Landlord and Administrative Agent entered into that certain Sublease dated as of August 18, 2014 (“Sublease”), which is subordinated to the Head Lease as described in the Sublease. The Sublease Term is due to expire on June 30, 2016 (“Sublease Expiration Date”).
|
D.
|
On or about August 18, 2014, Head Landlord, Sublandlord and Subtenant, with the consent of Administrative Agent, entered into that certain Consent to Sublease dated as of August 18, 2014 (the “Sublease Consent”).
|
E.
|
On August 21, 2014, Head Landlord, Sublandlord and Subtenant executed the Confirmation of Assignment Date (“Confirmation”) and stipulated the effective date of the Assignment and Sublease as August 21, 2014.
|
F.
|
Subtenant desires and Sublandlord agrees to amend the Sublease as expressed below.
|
SUBTENANT
|
|
Juniper Networks, Inc.
|
|
a Delaware corporation
|
|
By: /s/ Mitchell Gaynor
|
|
Name: Mitchell Gaynor
|
|
Title: Executive Vice President
|
|
|
|
SUBLANDLORD
|
|
Google Inc.,
|
|
a Delaware corporation
|
|
By: /s/ David Radcliffe
|
|
Name: David Radcliffe
|
|
Title: VP. Real Estate
|
|
8/31/15
|
|
LANDLORD
:
|
|
|
FSP-SUNNYVALE OFFICE PARK, LLC
, a
|
|
|
|
|
|
Delaware limited liability company
|
|
|
|
|
|
By: /s/ Joseph A. Corrente
|
|
|
|
|
|
Name: Joseph A. Corrente
|
|
|
|
|
|
Title: Executive Vice President
|
|
|
|
|
|
|
|
|
TENANT:
|
|
|
GOOGLE INC.
, a Delaware corporation
|
|
|
|
|
|
By: /s/ David Radcliffe 8/31/15
|
|
|
|
|
|
Name: David Radcliffe
|
|
|
|
|
|
Title: VP. Real Estate
|
|
|
|
|
|
|
|
|
SUBTENANT
:
|
|
|
JUNIPER NETWORKS, INC.
, a Delaware
|
|
|
|
|
|
corporation
|
|
|
|
|
|
By: /s/ Mitchell Gaynor
|
|
|
|
|
|
Name: Mitchell Gaynor
|
|
|
|
|
|
Title: Executive Vice President
|
|
COMPANY
|
JUNIPER NETWORKS, INC.
|
|
|
By:
|
/s/ Rami Rahim
|
|
Name:
|
Rami Rahim
|
|
Title:
|
CEO
|
|
Date:
|
10/16/2015
|
|
|
|
EMPLOYEE (Brian Martin)
|
Name:
|
/s/ Brian Martin
|
|
Date:
|
10/16/2015
|
|
Nine Months Ended
|
|
Years Ended December 31,
|
||||||||||||||||||||
|
9/30/15
(*)
|
|
2014
(*)
|
|
2013
(*)
|
|
2012
(*)
|
|
2011
(*)
|
|
2010
(*)
|
||||||||||||
Earnings for computation of ratio:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pre-tax income (loss) from continuing operations before adjustment for noncontrolling interests in consolidated subsidiaries or income from equity investees
|
$
|
591.3
|
|
|
$
|
(86.3
|
)
|
|
$
|
518.4
|
|
|
$
|
266.0
|
|
|
$
|
572.0
|
|
|
$
|
769.5
|
|
Fixed charges
|
73.5
|
|
|
83.3
|
|
|
76.1
|
|
|
72.0
|
|
|
69.2
|
|
|
16.8
|
|
||||||
Amortization of capitalized interest
|
0.6
|
|
|
0.5
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Less:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest capitalized
|
(1.5
|
)
|
|
(2.7
|
)
|
|
(1.9
|
)
|
|
(7.1
|
)
|
|
(1.2
|
)
|
|
—
|
|
||||||
Noncontrolling interest in pre-tax income
of subsidiaries that have not incurred
fixed charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
||||||
Total earnings (loss)
|
$
|
663.9
|
|
|
$
|
(5.2
|
)
|
|
$
|
593.0
|
|
|
$
|
330.9
|
|
|
$
|
640.0
|
|
|
$
|
785.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
$
|
60.9
|
|
|
$
|
66.0
|
|
|
$
|
58.1
|
|
|
$
|
52.2
|
|
|
$
|
48.9
|
|
|
$
|
—
|
|
Interest capitalized
|
1.5
|
|
|
2.7
|
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortized premiums, discounts, and
capitalized expenses relating to
indebtedness
|
1.1
|
|
|
0.8
|
|
|
0.3
|
|
|
0.8
|
|
|
0.6
|
|
|
—
|
|
||||||
Estimate of interest within rental expense
|
10.0
|
|
|
13.8
|
|
|
15.8
|
|
|
19.0
|
|
|
19.7
|
|
|
16.8
|
|
||||||
Total fixed charges
|
$
|
73.5
|
|
|
$
|
83.3
|
|
|
$
|
76.1
|
|
|
$
|
72.0
|
|
|
$
|
69.2
|
|
|
$
|
16.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Ratio of earnings (loss) to fixed charges
|
9.0
|
|
|
(0.1
|
)
|
|
7.8
|
|
|
4.6
|
|
|
9.2
|
|
|
46.8
|
|
(*)
|
For these ratios, "earnings" represents income (loss) before taxes before adjustment for noncontrolling interests in equity investments and fixed charges, adjusted for interest capitalized and noncontrolling interest in pre-tax income (loss) of subsidiaries that have not incurred fixed charges.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Juniper Networks, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Juniper Networks, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|